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my chest condition, has caused this curvature of the spine, my experience in driving that old Government model T Ford must have been the cause of it.”

Mrs. Ring was hospitalized at the United States Marine Hospital, San Francisco, Calif., from August 10 to 13, 1938, for a complete medical survey of her case. In a report from that institution dated October 6, 1938, it was stated with respect to her back condition as follows:

*. in our opinion the arthritis of hands, feet, and spine which she complains of and which was found on last examination in this hospital in August 1938, was thought to be of an infectious nature and has only been present during the last 6 months. It is felt that the arthritis is not related in any manner to the disability, namely, pulmonary tuberculosis for which she is drawing compensation."

On July 11, 1941, the Commission received a report from Dr. George J. McChesney, San Francisco, dated February 11, 1941, in which he stated that he examined Mrs. Ring and that she gave him the following history with respect to the alleged back injury:

"In 1927, in automobile, doing work in Government Indian Service, had an accident when car developed mechanical difficulty, went down hill, gained momentum, and was stopped suc enly when hit objects behind. Car did not turn over. She was not thrown out. Was not knocked unconscious, and after several hours wait in very cold weather, help arrived and she was able to get car going and drove 35 miles farther. No medical examination thereafter. Stayed in bed several days. Had no visible evidence of injury, but gradually developed pain between her shoulder blades and that has lasted ever since."

Dr. McChesney's report concludes as follows:

"It would seem that there is here a slowly progressive arthritis of the atrophic type, developing most markedly in the right wrist and to a lesser extent in the dorsal spine. According to her statement, this appears to date definitely from the automobile accident in 1927, which was of a nature that could be supposed to cause a strain upon the muscles and ligaments of the cervical and dorsal spine, more in the former by a jerking back of her head when the car suddenly stopped. The exposure thereafter would be a contributory factor. It would be my opinion that her lateral curvature or scoliosis was not caused by the injury but has existed since adolescence unrecognized by her, and in no way has this curvature interferred with her health and active use of her back at any time or should it become a factor of disability in the future. The arthritis in this region in my opinion was not influenced in any way, therefore, by this curvature but was by her ten dency to tuberculosis as well as the lowered general resistance due to the puimonary disease which tended to cause the arthritis in her wrist to be more severe than it would have been otherwise. The atrophic arthritis at present is most marked in the right wrist where definite X-ray changes are shown and typical subjective and objective symptoms are present. The involvement of her ankles. feet, lumbar spine, and sacroiliac joints are all affected to a mild degree and without marked objective symptoms.

Report of Dr. Luther . Čalahan (undated) received by the Commission November 5, 1940, reads in part as follows:

“I treated Mildred Ring about 3 years for latent pulmonary TB and during her examination including lung X-rays discovered she had a well-marked scoliosis of spine in thoracic region which in my opinion was a direct complication of her pulmonary TB

In a letter dated October 28, 1940, Dr. Calahan elaborated upon the above statement as follows:

“If TB is not the cause of the spinal condition it is still TB in origin and can be the complication of an injury which she sustained in a Government automobile while in Government service in Nevada.”

Dr. James W. Gerow in a letter to Mrs. Ring, dated January 31, 1942, stated in part as follows:

“It was during the winter of 1927-28 while you in an old Ford open car battling blizzards and rain contracted arthritis and even now I can recall that I prescribed antiarthritic treatment for you. In fact from that date on through 1928 you were definitely arthritic. Then after that time and I believe in September 1928 the X-ray showed pulmonary TB. This, of course, could be incidental or I should say coincidental as both conditions could develop during the same time and it did no doubt in your case.

In a letter to the Commission dated October 3, 1941, Mrs. Ring requested that her claim for compensation on account of pulmonary tuberculosis filed in 1928 be amended so as to permit her to obtain compensation and medical treatment as the result of arthritic condition which she alleges resulted from an accident in 1927.


Since it did not appear that Mrs. Ring had filed written notice of the alleged back injury or claim for compensation within 1 year from the date thereof, as required by the mandatory provisions of sections 15 to 20, inclusive, of the Federal Employees' Compensation Act of September 7, 1916, the Commission was without authority of law to consider the merits of any claim she might file for compensation for disability resulting from a 1927 injury, and she was so advised by letter dated October 31, 1941.

The proposed measure is apparently designed to waive in favor of Mrs. Ring the bar of the time limitations contained in sections 15 to 20, inclusive, of the Federal Employees' Compensation Act of September 7, 1916, on account of injuries she is alleged to have sustained to her back during the winter months of 1927-28, and to leave the Commission free to determine the merits of Mrs. Ring's claim, if filed not later than 60 days after the date of the enactment of the bill, and to afford her such measure of relief as the facts when established may show her to be entitled to under the Compensation Act.

In view of the foregoing, the Commission makes no recommendation as to the advisability of the enactment of the bill, H. R. 2846.

This report has been submitted to the Bureau of the Budget pursuant to Budget Circular 390 dated June 1, 1942; and has been returned with the advice that there would be no objection to the submission thereof to the House committee for its consideration. Very truly yours,





FEBRUARY 13, 1945.—Committed to the Committee of the Whole House and

ordered to be printed

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



(To accompany H. R. 952)

The Committee on Claims, to whom was referred the bill (H. R. 952) for the relief of the Morgan Creamery Co., having considered the same, report favorably thereon without amendment and recommend that the bill do pass.

A similar bill was favorably reported by this committee in the Seventy-eighth Congress.

The facts will be found fully set forth in House Report No. 1973, of the Seventy-eight Congress, which is appended hereto and made a part of this report.

(H. Rept. No. 1973, 78th Cong., 2d sess.) The purpose of the proposed legislation is to appropriate the sum of $920.64 to the Morgan Creamery Co., of Fargo, N. Dak., in full settlement of all claims against the United States as part of the excess cost alleged to have been incurred by the United States by reason of the failure of the Morgan Creamery Co. to perform under contract No. VA37r-935, entered into on June 25, 1942, with the United States Veterans Administration to deliver fresh milk, cream, buttermilk, and cottage cheese to the Veterans Administration facility, Fargo, N. Dak., during the fiscal year ended June 30, 1943.


It appears from the records that the Morgan Creamery Co. entered into a contract with the Veterans Administration at Fargo, N. Dak., to furnish milk, cottage cheese, buttermilk, and cream for the fiscal year ended June 30, 1943. It also appears that the Morgan Creamery Co. fulfilled this contract up to and including September 30, 1942, when he notified all his customers, including the manager of the Veterans Administration facility at Fargo that he was closing his creamery plant as of September 30, 1942, because of a labor shortage in the community. However, for a period of 30 days thereafter, or during the month of October 1942, deliveries were made by the contractor through the Fairmont Creamery Co.

H. Repts., 79--1, vol. 1-36


In a statement dated November 30, 1943. Maxwell Morgan, proprietor of the Morgan Creamery Co., states:

"I. Maxwell Morgan, former proprietor of the Morgan Creamery Co., at 301 First Avenue North, Fargo. N. Dak., being first duly sworn, state that before I discontinued delivery of dairy products to my customers, including the facilities of the Veterans' Administration at Fargo, N. Dak., I contacted the facility, and their supply officer assured me that a written notice sent 30 days before deliveries ceased would release me from my contract.

Immediately after the facility had received the written notice, on October 1. 1942, their supply officer contacted me and asked what arrangements had been made for dairy products to be delivered for the Veterans Administration during next 30 days. I advised their supply officer that arrangements had been made by me with the Fairmount Creamery Co. to deliver the dairy products, for which my contract called, for the next 30 days. I was again given to understand that that was satisfactory and that my contract would be canceled without further obligations on my part.

“I state further that if the Veterans Administration had informed me that I would not be released from my contract, I could have, and would have, made arrangements with the Fairmount Creamery Co. or other dairymen to supply these products in accordance with my contract.

"I do not wish to insinuate that the supply officer of the Veterans Administration at Fargo, N. Dak., or Mr. Hoverson, its manager, acted in bad faith. The truth is that neither they nor I were aware that a certain clause, giving the right of cancelation on 30 days' notice, had been removed from the body of the new printed form of contracts. This clause was removed out of the body of the contract without our attention being called to it and without our knowing it.

“I state further that I acted in good faith. That I believed and relied upon the statements made to me by the supply officer of the Veterans Administration at Fargo and I know that the manager acted in good faith and that he also was not aware of the change. I feel that in justice I had a right to rely upon those representations made to me by an officer of the Administration, although he was honestly mistaken.

"In support, showing that I could have, and would have, been able to get others to take over my contract at the same price I was doing, I attach hereto an affidavit, of the Fairmount Creamery Co. of Moorhead, Minn., just across the river from Fargo, and also a letter, from the Gate City Dairy showing that they would have taken over my contract and filled it at the price called for in the contract."

It is the opinion of your committee that Mr. Morgan acted in good faith in terminating his deliveries and that the Fairmount Creamery Co. fulfilled his contract; and that he should be paid the amount of $920.64.

Therefore, your committee recommends favorable consideration to the proposed legislation.

Appended hereto are the reports of the Veterans’ Administration and the Comptroller General, together with other pertinent evidence.


Washington, April 13, 1944. Hon. Dan R. McGEHEE, Chairman, ,

"House of Representatives; mashington, D. C. MY DEAR MR. McGEHEE: This is in further reference to your letter of February 22, 1944, requesting a report on H. R. 4224, Seventy-eighth Congress, a bill for the relief of the Morgan Creamery Co.

Records on file show that the Morgan Creamery Co. of Fargo, N. Dak., entered into a contract with the Veterans Administration, effective as of July 1, 1942, to furnish milk, cottage cheese, buttermilk, and cream for the fiscal year ending June 30, 1943. The contractor fulfilled his obligation under this contract up to and including September 30, 1942, at which time he notified all of his customers, including the Veterans Administration, that he was discontinuing deliveries as of October 1, 1942, due to shortage of labor. From October 1, 1942, to October 31, 1942, the Morgan Creamery Co. made deliveries under the contract with the Veterans Administration through the Fairmont Creamery Co., Moorhead, Minn.

From November 1, 1942, to and including June 3 , 1943, the Veterans Administration purchased its milk, buttermilk, cottage cheese, and cream from other creamery companies at a price in excess of the price contracted for by the Morgan Creamery Co.

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