1st Session

CHARLES W. MILES

JUNE 23, 1949.-Committed to the Committee of the Whole House and ordered to be printed

Mr. JENNINGS, from the Committee on the Judiciary, submitted the

following

REPORT

To accompany H. R 23441

The Committee on the Judiciary, to whom was referred the bill (H. R. 2344) for the relief of Charles W. Miles, having considered the same, report favorably thereon with amendments and recommend that the bill do pass.

The amendments are as follows:

Page 1, line 4, after the word "to" strike out the remainder of the bill. and insert in lieu thereof:

pay out of any money in the Treasury not otherwise appropriated, the sum of $1,000 to Charles W Miles, of Union City, Tennessee, in full settlement of all claims against the United States as reimbursement of a fine paid by him upon conviction of contempt of court for which offense he subsequently received a full pardon: 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 Charles W. Miles the sum of $1,000 representing the amount of a fine paid by him upon conviction of contempt of court for which offense he subsequently received a full pardon.

STATEMENT OF FACTS

The Department of Justice has no objection to the enactment of this bill, and your committee. after careful consideration. recommend

favorable consideration to this legislation. A complete statement of facts from Mr. Miles is as follows:

STATEMENT OF C. W. MILES

I am informed that the United States attorney is making investigation of disposition of the 284 barrels of dried eggs formerly belonging to Joe Lowe Corp., and which were ordered disposed of by order of the United States district court dated November 2, 1944. I voluntarily make to the United States attorney the following statement of my connection with this transaction:

On the morning of November 2, 1944, when the matter of final disposition of these eggs came before Judge Boyd, I did not previously know the matter was going to be taken up. That morning I was not present in court as is my usual custom. When the session of court was practically over, with the exception of possibly a few minor details, I entered the courtroom and found, among other persons in the courtroom, Mr. Frank Glankler, who represented the Joe Lowe Corp. in the suit with the United States Government. I found that Mr. Glankler's business was to have the court take immediate action in having a final disposition made of the eggs. Mr Glankler seemed very much in earnest about these eggs being disposed of immediately, saying that his client was anxious to get rid of them; that it was tired of paying storage on them; that the storage bill had already amounted to a large sum of money, and he remarked to all persons present, including me, that November 2 would be the last day it would want to pay storage on the eggs, and by all means to do everything possible to make final disposition of the matter on that date.

I inquired of Mr. Glankier and also of the clerk of the court as to whether or not there was a cost bond, the amount of the cost bond, and if the storage had been paid. I ascertained from Mr. Glankler and other sources that the storage on these eggs had not been paid. Mr. Glankler told me that he would immediately wire his client and get authority to pay the storage at once, stating that he himself had no authority to and that he did not want to guarantee in any way that the storage would be paid. He did state to me, however, that the Joe Lowe Corp is a very rich company, and he had no doubt that in due time it would remit a check in payment of the storage.

After ascertaining from members of the district attorney's staff and also from Judge Boyd that it would be my responsibility if these eggs were released without the payment of the storage bill, I decided that the best thing to do was to hold the matter of the delivery of these eggs to anyone in abeyance until the Joe Lowe Corp. remitted for the storage. At that time I did not know what disposition had been ordered by the court, as I was not in courtroom at the time anything was said about these eggs being turned over to the Shelby County penal Farm Later on in the morning, I found out that there would be given me an order directing that these eggs be delivered to the Shelby County Penal Farm. This order was delivered to me, as the records show. on November 2 On Friday afternoon, December 8, for the first time Deputy Marshal Steele told me that, when the order was made by the judge that the eggs should go to the penal farm, he immediately contracted Mr R G. Draper, assistant United States attorney. without my consent or knowledge, and suggested to Mr. Draper to give Mr Charlie' (meaning me) some of these eggs. I presume it was this statement made to him by Mr. Steele that prompted General Draper later on the morning of November 2 to ask me if I wanted any of these eggs, stating that, if so, he was sure Mr. Ellis of the Shelby County Penal Farm would be willing to let me have some, as they had all had a great deal of difficulty in finding anyone who would consent to take delivery of any of the eggs General Draper stated that Mr Ellis himself hesitated to accept the eggs as whether they could be used for hog food was experimental and Mr. Draper suggested that I call Mr. Ellis by telephone

I said to General Draper that I had never heard of anyone's feeding eggs to nogs: that it would be an experiment and might be a disastrous one; but, if I were sure they would make good hog feed, I would not be adverse to having some to feed to my hogs. Mr Draper said to me. "Why don't you call Mr. Ellis?" I replied that I couldn't do that because I did not know him and I would not want to make this request. Mr. Draper said he saw no harm in it and he himself would call Mr. Ellis and talk with him about it. I was standing in his doorway, outside in the hall in the Federal Building, when Mr Draper stated that he would call Mr. Ellis himself and let me know, and I immediately went to my office A short time afterward I passed by General Draper's office again and he told me that he had talked with Mr. Ellis and that it was perfectly agreeable with Mr. Ellis for

me to have any part of, or all of the eggs. Mr. Ellis had told Mr. Draper that it was an experiment. Mr. Draper also told me to verify what Mr. Ellis had said about it by calling Mr. Ellis myself and getting his personal approval.

Before calling Commissioner Ellis, after this conversation, I received a call from some gentlemen, whose name I do not recall but who is connected with one of the stockyards or commission houses in the city of Memphis, and who I understand had previously been asked about the eggs, who stated in substance that he was not interested in these eggs for the reason that it was a dangerous food of highprotein content and that he had rather not fool with them.

After this conversation with this person, knowing that both Mr. Glankler and General Draper had contacted several people desiring to make disposition of these eggs, I decided to call Commissioner Ellis for the purpose of verifying Mr. Draper's statement to the effect that Mr. Ellis was willing for me to have some of the eggs if I decided to take them.

I called Mr. Ellis and found that what General Draper had said about it was absolutely correct, that it was entirely agreeable with Mr. Ellis for me to have any part of the eggs that I wanted. He asked me how many I wanted, and I told him I did not know but would let him know later. I said I had never heard of anyone's feeding them to hogs; that I might be interested and I might not, but would call him and let him know a little later.

I immediately called Mr. Saunders, the manager of the Terminal Storage Corp., and asked him how these eggs were being cared for, and told him that I might be interested in using some of them for hog feed. I was under the impression that the eggs were in cold storage, and I knew that I had no facilities in the event they had to be held in cold storage. Mr. Saunders told me the eggs were not in cold storage and that it was only necessary for them to be kept in a dry place and, so far as possible, away from light.

After obtaining this information, I immediately began to ascertain what it would cost to get the eggs hauled from Memphis to Union City, Tenn. That morning, before finally telling Mr. Ellis that I would accept any part of the eggs, I communicated with various transfer companies in Memphis. It is my recollection that I called some five or six transfer companies in Memphis, the first being Gordon's Transport, Inc. I also called the Eastwood Transfer Co., the Illinois Central Freight agent, and several other transfer companies whose names I do not recall. I found out the rates, both of the railroad and of the transfer companies, on dried eggs in barrels to Jordon, Ky. After talking with these companies, I decided that the most available line to Jordon would be the Eastwood Co., and that the rate by truck and the rate by railway were practically the same, my recollection being that both were around 46 cents per 100 pounds.

After getting this information, I called Mr. Ellis back and told him, if it were perfectly agreeable to him, I might be able to use half of the eggs. He assured me that it was perfectly agreeable with him and I told him that I would take onehalf of them. In the meantime I told him that no disposition would be made of the eggs until I was assured that the storage bill would be paid and that I would talk with him later.

After my talk with Mr. Ellis, and later on the same day, I telephoned and talked with Mr. Bryant, superintendent of the dairy farm at the Shelby County Penal Farm, and told him to make no effort to get the eggs from the warehouse corporation; that the storage had not been paid, and that I would not make any disposition until that matter was handled and that it would be useless to send his trucks to get the eggs until the storage bill had been paid and that I would keep him informed. I asked him if Commissioner Ellis had communicated to him the fact that I would take one-half of the eggs, and he said that he had been so told and that it was agreeable with Mr. Ellis.

I left Memphis on Saturday, November 4, according to my recollection, for the purpose of going to my home in Union City to spend the week end and to remain until after the election on November 7. But, before leaving Memphis, I advised my office deputy, Thomas R. Brown, that the storage on these eggs had not been paid and just as soon as he had got the check to call me immediately in Union City and I would tell him what to do.

On Monday morning, November 6, Mr. Brown called me over the telephone and told me that the money was there for the storage and asked me what to do. I advised him to notify both Mr. Ellis and the warehouse corporation that the storage bill was taken care of and also to tell them to go get the eggs at their convenience. This he did, so I am informed. I ascertained that these eggs were delivered to the Shelby County Penal Farm on Tuesday, November 7, 1944, and I immediately made my return to the court that all of these eggs, 284 barrels, had

been delivered to the Shelby County Pena Farm as by my instructions on Tuesday, November 7, 1944, and that they were carried there by trucks belonging to the Shelby County Penal Farm. and that it had signed a receipt for all these eggs.

Arrangements made for the hauling of these eggs were made by Mr. Robert Cultra of Union City, who was, by agreement, to receive half of them: namely, 71 barrels of these eggs. In accordance with these arrangements, trucks were sent from Obion County to Memphis to pick up 142 barrels of these eggs. These instructions were carried out and on November 9, 1944, as shown by affidavits of the truck drivers, in my possession, and the drivers of these trucks, whose names I did not learn until later (Dec. 10, 1944), picked up these eggs at the Shelby County Penal Farm, being checked in and out by Mr Brvant, according to his statement to me over the telephone several days later.

Mr. Melvin, inspector for the Pure Food Administration, talked with me several times about this egg transaction, the last times on November 30 and on December 1, 1944. He told me that he did not want me to feel like he was "snooping around" but that to do his duty it was necessary for him to see that proper use was made of these eggs; that they were not used for human consumption. He asked me if I had any objections to his going to my farm and taking samples and seeing for himself what use was being made of the eggs. I told him that certainly I had no objection; that it was his duty to do so, and that I did not feel in any way that he was snooping around and trying to find out anything he was not entitled to know and that, so far as I was concerned, he was at liberty to go to my farm and make any inspection he wanted to; and, as evidence of the fact, on the same date, I gave him a letter of introduction addressed to Mr. Hugh Garrigan, Jr., the manager of my farm, and requested Mr. Garrigan to show Mr. Melvin every consideration and courtesy and to cooperate with him and allow him to take samples of these eggs so that he could make a report to his department. Mr. Melvin assured me that, upon my telling him I was willing and glad to return the eggs, he was entirely satisfied with the situation and that they were in good hands, and that he did not want me to return these eggs. He assured me repeatedly that his only concern was to prevent these eggs getting into the trade or being used for other than hog-feeding purposes. With some hesitancy he asked, either on that day or immediately upon his return from inspection of the eggs at my farm, what I thought about his going to the Shelby County Penal Farm and making inspection of the eggs out there. I told him I saw no reason on earth why he should not go out there and make inspection; that it would be in line of duty, and I did not think there would be any criticism on the part of any of the officials there of his doing so.

As evidence of his attitude in this matter and to verify what he first told me, I shall place in the record a letter, which is self-explanatory, being signed by Mr. Melvin and dated November 30, the same date that I gave him a letter to go and make the inspection and take samples of the eggs that were in Fulton County. Ky., on my farm.

Upon Mr. Melvin's return from his inspection trip to my farm, he came into my office and stated to me again that he was perfectly satisfied with the situation and, as far as he was concerned, the matter was closed. I assured him again that I was perfectly willing to have these eggs returned if he were not satisfied. He repeated to me again on this occasion that he did not want me to return the eggs; that he was entirely satisfied, and, my memory being refreshed now, I think it was upon his return from his inspection of my eggs that he asked me my opinion about his going to the Shelby County Penal Farm and making an inspection of the eggs out there.

At no time since the receipt of the order of the district judge of this court on November 2, 1944, has there ever been any attempt on my part to conceal the fact that the 142 barrels of eggs were in my possession, this fact being known by various people both in Memphis and in Union City, Tenn.

In order to be absolutely sure what the proper method in feeding dried eggs to hogs was, I personally contacted T. B. Garth, the county agent of Obion County, Tenn., and had him to write the University of Tennessee agricultural department to ascertain whether or not it was safe to use dried eggs in the feeding of hogs. The original letter that Mr. Garth received from the University of Tennessee in reply to my request is a matter of record that can be seen by any interested parties. In addition to contacting the University of Tennessee, other parties in Union City were talked to about the feeding of these eggs: namely, Mr. Cecil Moss of the Cherry-Moss Grain Co., and Mr. T. E. Parks, a large planter in Obion County, and others whom I do not now recall.