H. A. DIXON JUNE 27, 1939.-Committed to the Committee of the Whole House and ordered to be printed Mr. COFFEE of Washington, from the Committee on Claims, submitted the following REPORT [To accompany H. R. 5383) The Committee on Claims, to whom was referred the bill (H. R. 5383) for the relief of H. A. Dixon, having considered the same, report favorably thereon with amendments and recommend that the bill as amended do pass. The amendments are as follows: Line 10, strike out the small "t" and "p" in the words "theater project" and insert in lieu thereof a capital "T" and capital "P". Beginning with the word "Provided" in line 11, page 1, strike out the remaining language of the bill and insert in lieu thereof: Provided, That no part of the amount appropriated in this Act in excess of 10 per centum thereof shall be paid or delivered to or received by any agent or attorney on account of services rendered in connection with this claim, and the same shall be unlawful, any contract to the contrary notwithstanding. Any person violating the provisions of this Act shall be deemed guilty of a misdemeanor and upon conviction thereof shall be fined in any sum not exceeding $1,000. The purpose of the proposed legislation is to pay to H. A. Dixon the sum of $115.85, in full settlement of all claims against the United States for costumes and apparel furnished to the Works Progress Administration upon the order and direction of the Director of the Federal Theater Project of Miami, Florida, at Miami, Fla., on September 10, 1936. STATEMENT OF FACTS This claim grows out of the actions of one Thomas Cochran Ashwell, former Director of the Federal Theater Project at Miami, Fla. While acting in this capacity, Ashwell on September 10, 1936, obtained certain theatrical costumes and apparel from Mr. Dixon for use on his project. These costumes and apparel were taken to the project and some photographs taken showing same in use. However, on September 16, 1936, Ashwell absconded with this property, and the claimant has never been paid for his loss. The Works Progress Administration, in reporting on the bill to the committee, states that Ashwell was not authorized to contract for the rental of equipment or supplies on behalf of the Government and, furthermore, that the United States is not responsible for the unlawful acts of its employees, nor liable for property that is stolen while properly in its custody. Their view, therefore, regarding the enactment of the proposed legislation, is that such legislation would change the legal consequences flowing from the original transaction and from Ashwell's criminal act. Your committee, of course, acknowledges that the claimant has no legal redress against the United States for his loss in this transaction, but considers that he has a just claim in equity, Mr. Bishop states that he had furnished costumes and apparel to the project on other occasions and had received proper payment for same. He had no cause to question Ashwell's rights, and knew him to be the appointed Director of the Federal Theater Project at Miami. It was not uncommon for all of these projects to rent costumes for their plays. The Works Progress Administration has examined the itemized statement of loss submitted by the claimant and has found the total value of the items to be the amount of the bill, namely $115.85. Your committee recommends passage of the bill, and appends hereto the report of the Works Progress Administration, together with some other pertinent material. WORKS PROGRESS ADMINISTRATION, The Honorable AMBROSE J. KENNEDY, House of Representatives, Washington, D. C. MY DEAR CONGRESSMAN KENNEDY: Your records will disclose your communication of April 4, 1939, and my reply of April 7, 1939, relative to H. R. 5383, a bill for the relief of H. A. Dixon. The Administration's report is as follows: The bill proposes to appropriate to H. A. Dixon, of Miami, Fla., the sum of $115.85, "in full settlement of all claims against the United States for costumes and apparel furnished to the Works Progress Administration upon the order and direction of the Director of the Federal theater project of Miami, Florida, at Miami, Florida, on September 10, 1936." It appears that, on September 10, 1936, one Thomas Cochran Ashwell, then Director of the Federal Theater Project in Miami, Fla., obtained certain theatrical costumes from claimant for use on the project; that said Ashwell was not authorized to contract for the rental of equipment or supplies on behalf of the Government; that the costumes in question were given to Ashwell at the claimant's place of business on September 10, 1936, and brought by him to the project; and that, on September 16, 1936, Ashwell absconded with these costumes. A claim for the value of the costumes in the sum of $115.85 was presented to the Administration under the act of December 28, 1922 (42 Stat. 1066), and disallowed for the reasons that the criminal act of stealing the equipment could neither be deemed to have been negligence on the part of an employee of the Government nor an act within the scope of his employment, as required by said act. The present bill proposes to reimburse H. A. Dixon in an amount equal to the value of the stolen property. It is the understanding of the Administration that the Government of the United States not only is not responsible for the unlawful acts of its employees but also is not liable for property that is stolen while properly in its custody. In the case under consideration, since Ashwell was not authorized to contract on behalf of the United States, a question arises as to whether the costumes were properly in the custody of the United States. Under either view, the bill proposes to change the legal consequences flowing from the original transaction and from Ashwell's criminal act. It gives rise, therefore, to a question of legislative policy upon which the Administration deems it advisable to refrain from expressing any opinion. For the information of your committee, in the event that the bill receives favorable consideration, the Administration has examined the itemized statement of loss submitted by claimant and has found the total value of the items to be $115.85. DEAR MADAM: Enclosed please find list of costumes, ordered, selected, and taken by Mr. Ashwell, Director Miami Federal Theater, on September 10, 1936. Inasmuch as our instructions from both Mr. Craven and Mr. Ashwell were that the rental of all costumes and items must have their approval and O. K., and inasmuch as we did not allow anything to go out of our shop for this project without their O. K., we, of course, were acting according to instructions in renting the costumes to Mr. Ashwell who at that time was the Director of the Miami Federal Theater and a Government employee. Mr. Ashwell selected some of our very loveliest costumes and items which are not easy to duplicate. I have called the theater many times and have also talked with Mr. Sherwood, but am told none of the costumes can be found. We have witnesses to the fact that Mr. Ashwell took these costumes from our shop, also that he had them at the theater and also that he stated that we should send the bill to Mr. Sherwood, the agent-cashier. These costumes were rented to a Government agency and we therefore hold the Government responsible (preferably for the return of the costumes if in good condition) otherwise for the amount set forth. Very truly yours, (Signed) H. A. DIXON. COSTUMES AND ACCESSORIES RENTED BY MR. THOMAS ASHWELL, DIRECTOR, MIAMI FEDERAL THEATER, SEPT. 10, 1936 (FROM H. A. DIXON, 724 N. E. SECOND AVENUE) 1 pair British Army Officer's Bedford-cord wool breeches with buckskin reinforcement 2 velvet boleros (1 silver braid and spangle trimmed). 4. 00 20. 00 35 18. 00 8. 00 6. 00 1. 50 6. 00 20. 00 2. 00 8. 00 1 gilt sash for waist line and headdress trimmed with gypsy coins.. 1 blue striped silk sash.. . 50 1. 00 Total.... 115. 85 Mr. H. A. Dixon, Miami, Fla. FLORIDA WORKS PROGRESS ADMINISTRATION, DEAR MR. DIXON: Your letter of the 29th addressed to Mrs. Lynch is in my hands. The incident as covered in your letter, of course, has been quite a shock to this office. Not only as far as you are concerned but several other incidents. For your benefit, Mr. Craven had no O. K.'ing power or never had for the purchase of any material chargeable to federally appropriated funds. Neither did Mr. Ashwell. The only purchase orders which can be issued by the Federal Theater Project have to be purchase orders from Charles Sherwood, based on previous O. K. from this office and bearing my signature. It has recently come to light in the various projects in the State that various vendors have been the victims of such plots. In any case where an employee has indebted the Government through improper purchase, same have lost their jobs immediately when anything of a like manner has come to the State office's attention. The fact is that at this very moment the man in question is being wanted on no less than five or six separate charges, both for Federal and local offenses. The first inclination we had regarding Mr. Ashwell's accounts, etc., was recently in the State office when Mr. Ashwell came here for a conference, and at the end of the day it was mentioned that he would be in town the next day and would finish the conference; and to our surprise, the next afternoon we received a telegram from Mr. Ashwell in Somerton, Tex., saying he was resigning. Personally I can tell you nothing regarding this bill other than the Works Progress Administration is not responsible for any personal debt incurred by workers on the project other than through the two existing channels of purchases: Namely, the United States Treasury Procurement Division and the bonded United States Treasury cashier. Recently it has been necessary to issue bulletins to all vendors in the State that both of these departments had any dealings with, instructing same that this was the only way to secure their money through the United States Treasury Department. Of course, I consider it a loss and a great handicap to this project and a direct throwback as to its personnel. Under the circumstances I do not believe same could have been averted since the nature of the involved person have given at no time any inclination of such a procedure, and on the contrary the work accomplished by the said person is above par as to organization and financial arrangements for the good of the project. I will not quote exactly but your bill only represents one-eighth of the unpaid bills and criminal offenses left behind by Mr. Ashwell, together with a similar offense which I do not care to mention. If you care to take the bill up with the Treasury Department direct, I will be glad to forward your letter to them but I assure you I have no intention of instructing you or give you false information since I am in contact with these departments daily and know the proper procedure. Mr. Sherwood lost, himself, through the same person $165 through trust. I instructed Mr. Sherwood when this matter came into my hands, to send each vendor in his locality a full statement as to the proper ways of purchasing material I hope you have a copy of Mr. Sherwood's memorandum, or, if you have not received it, I would appreciate it if you would notify me of the same. Believe me sincerely at your service. WORKS PROGRESS ADMINISTRATION, (Signed) JOSEF LENTZ, State Technical Director, Federal Theater Project. Mr. JOSEF LENTZ, MIAMI, FLA., October 13, 1936. State Technical Director, Works Progress Administration, Federal Theater Project, Jacksonville, Fla. DEAR SIR: I am in receipt of your letter relative to costumes which Mr. Ashwell rented from us and which have never been returned. Regarding the second paragraph of your letter, whether or not Mr. Craven and Mr. Ashwell had O. K.'ing power, the fact remains that they both ordered costumes from us on different occasions, the costumes were used on the Federal Theater Project and paid for by Mr. Sherwood, the agent-cashier. With reference to the sixth paragraph of your letter, I am not concerned about any of Mr. Ashwell's personal debts nor any of his escapades. He came to our shop for costumes for the project, they were at the theater and Mr. Ashwell had his pictures taken in some of the costumes by the photographer on the theatrical project. Had bulletins been issued to venders instructing them that theater directors had no authority to give orders for merchandise (nothing would have pleased us more than to have turned both of these men down) it might place a different light upon the matter, but even then the theater directors are duly authorized Government employees and as such we hold the theater responsible for the return of our costumes in good condition with a rental to cover the length of time they have been out or for payment of our bill as rendered. We have been furnishing costumes on almost all of the productions, and not until this incident have we been instructed that we are not to accept orders from the directors, and indeed not until the past few days have we even heard of the Procurement Livision. Reference to the last paragraph of your letter, at no time have I had written written instructions either in the form of a letter or bulletin, in this regard. However, when Mr. Sherwood returned the costumes used in The Bishop Misbehaves (which was after they had learned of Mr. Ashwell's absconding) he told us not to let anyone have anything without his O. K. Had this been the ruling, or had any such instructions ever been issued previously, it certainly would not have been necessary for Mr. Sherwood to give these instructions which was equivalent to locking the stable door after the horse had been stolen. We very well know that our Government would not allow us to be the losers for goods taken from our shop under false pretenses (Mr. Ashwell told me to send the invoices to Mr. Sherwood, agent-cashier, in the regular way) by one of their directors in any event we do not propose to be the losers. Very truly, [Signed] H. A. DIXON. Mrs. H. A. DIXON, Miami, Fla. FLORIDA WORKS PROGRESS ADMINISTRATION, MY DEAR MRS. DIXON: Sometime ago certain costumes belonging to you were stolen from the Miami Theater project by Thomas C. Ashwell. I am now informed by the Jacksonville office that the Washington office of the Finance Division suggests that you be advised that your only recourse is to present a formal claim for value of the articles, through the Works Progress Administration in Florida, for administrative examination and subsequent transmittal to the General Accounting Office for direct settlement. Please submit this claim as soon as possible. Yours very truly, [Signed] O. A. Sandquist, Field Representative, Zone S. MIAMI, FLA., October 16, 1937. Mr. O. A. Sandquist, Field Representative, Zone 3, Miami, Fla. DEAR SIR: I have your letter of September 28 which was delayed in reaching me owing to the same being incorrectly addressed. In compliance with your request to present a formal claim for costumes "stolen from the Miami Theater Project by Thomas C. Ashwell" I may say that I have previously taken this matter up with Miss Lynch, Mr. Lentz, and have sent to you copies of the entire correspondence. However, I am following your instructions and herewith give you a list of the costumes and accessories with the amount set opposite each item. Very truly yours, (Signed) Mrs. H. A. DIXON. |