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OCR Page 1 of 48EXECUTIVE OFFICE OF THE PRESIDENT
BUREAU OF THE BUDGET
WASHINGTON 25, D. C.
OCT 11 1945
My dear Mr. Latta:
On October 5, 1945, you advised this office that S. 136, "For
the relief of the Oregon Caves Resort, " had been received at the White
House and requested reports and recommendations as to the approval of
the bill.
It is the purpose of the bill to relieve the Oregon Caves Resort,
of Grants Pass, Oregon, from its lity for franchise fees for the
years 1934 and 1935, under contract with the Department of Agriculture
in the amount and to the extent that these fees exceed those that would
have been due for the years 1934 and 1935 on the basis of a renegotiated
contract between the National Park Service, Department of Interior, and
the Oregon Caves Resort, dated January 1, 1936.
In 1931, the Forest Service, which then had jurisdiction of the
Oregon Caves National Monument, granted to the Oregon Caves Resort two
permits, one of which authorized the corporation to construct and main-
tain hotel and other facilities for the accommodation of visitors for an
annual payment of $100 to the Government, and the other authorizing the
corporation to furnish guide services in the Caves and payment to the
United States of 50% of the net profit.
By Executive Order 6166, dated June 10, 1933, the administration of
all national monuments, including those situated within national forests,
was transferred to the National Park Service of the Department of the
Interior, and pursuant thereto, the National Park Service assumed admin-
istration of the Oregon Caves National Monument.
Following the transfer, and as a result of representations made by
the corporation that the arrangement with respect to guide services and
payment to the United States of 50% of the net profit of such operations
was unjust and unworkable, the National Park Service undertook a complete
study of this operations arrangement to determine whether changes should
be made in the terms of the arrangement t. As a result of this study, the
prior permi ts were revoked, and a new contract, which was considered by
the National Park Service and the corporation as a more equitable one,
was entered into, effective January 1, 1936, providing for a payment to
the Government of an annual fee of $100 and 30% of the net profits above
6% of the value of the corporation's investment. It has been the conten-
tion of the corporation that the more equitable arrangement should have
TRUMAN NARA
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