White House Press Release, Message from President Harry S. Truman to the United States Senate

331 # 770 HOLD FOR RELEASE HOLD FOR RELEASE HOLD FOR RELEASE July 16, 1946 CONFIDENTIAL: To be held in STRICT CONFIDENCE and no portion, synopsis, or intimation to be given out or published until the READING of the President's Message has begun in the Senate. Extreme care must therefore be exercised to avoid premature publication. CHARLES G. ROSS Secretary to the President TO THE SENATE: I return herewith without my approval the bill (s. 884) "Conferring jurisdiction upon the United States District Court for the Middle District of North Carolina to hear, determine, and render judgment upon certain claims of the Patuxent Development Company, Incorporated." It appears that on March 3, 1942, the United States leased the Pine Needles Hotel, at Southern Pines, North Carolina, from the claimant for the use of the Army Air Forces Technical Training Command at a rental of $30,800 per annum. The lease gave the Government the right to make alter- ations, attach fixtures, and erect additions, structures or igns on the premises, and required the Government, if requested to do so by the lessor, to restore the premises at the expiration of the lease to the same condi- tion as that existing at the time of entry under the lease, reasonable and ordinary wear and tear and damages by the elements, or by circumstances over which the Government had no control, excepted. The lease also pro- vided that all maintenance and repair other than such major maintenance and repair as may arise from improper construction or faulty material would be the responsibility of the lessee. On July 2, 1942, the Government entered into a supplemental contract with the claimant whereby the latter, for a consideration of $45,000 per year, agreed, among other things, to operate and keep in repair the build- ing, grounds and related property, including, but not restricted to, repair of furniture, furnishings, fixtures, etc. The supplemental agreement, modi- fied the lease contract by providing for the elimination from that contract of the provision relating to the restoration by the Government of the prop- erty to the same condition as that existing at the time of entry. On August 17, 1943, the Government, desiring to terminate the lease as of August 31, entered into a supplemental termination agreement with the claimant which provided for the transfer of certain designated im- provements to the claimant and for the payment by the Government of the sum of $15,000 plus accrued rentals and maintenance payments to August 31, 1943. The claimant released the Government from any and all liability and claims, except for personal property evidenced by an inventory of August 14, 1943. The premises were released to the claimant on September 1, 1943, and on April 22, 1944, the claimant presented a claim to the War Department in the sum of $39,394,75. The claim represented items for loss of and damage to personal property and cost of repairs, replacements, and alterations, amount- ing to $18,394.75; approximately $24,000 for cash loss sustained under the maintenance contract; and $20,000 for loss to claimant's business as a going concern; or a total of $62,394.75. Credits of $15,000 for cash received and $8,000 for the reasonable value of improvements left on the premises were deducted from the total of $62,394.75, leaving an alleged net loss of $39,394.75. The claim was investigated by the War Department and it was recommended that $400,50, representing the cost of missing items of personal property, as provided in the termination agreement, be paid to the claimant. The Comptroller General concurred in this recommendation. The bill under consideration provides that in the determination of the claim in question, the claimant shall be entitled to receive fair and just compensation from the United States for the use and occupancy of the property, including fair and just compensation for expenses incurred by the company, and for damage done to the property by reason of its use and occupancy by the United States twithstanding any provision of any con- tract, release, or other agreement.'