Mr. GLENN, from the Committee on Claims, submitted the following

REPORT

[To accompany S. 2010]

The Committee on Claims, to whom was referred the bill S. 2010, after carefully considering the bill reports the same favorably and recommends that the bill do pass with the following amendments:

In line 10, strike out all after the numerals "1921" down to the period in line 12.

In July, 1900, a board of naval officers initiated the idea of a destroyer and submarine base in the Columbia River by filing a report which contemplated such establishment in the mouth of the river. No definite action was had thereon until a further report was made in 1917 by the navy yard commission of which Rear Admiral J. M. Helm was senior member and chairman. This report recommended the establishment of such a base at Tongue Point, which is a location on the Columbia River about 10 miles from its mouth. The report further recommended that the site be acquired "by purchase or gift"; subsequently, negotiations were had with the people of Astoria, which is the county seat of Clatsop County, in which the proposed site was to be located. In these negotiations the local people were given to understand that a substantial development would be made by the United States and that an active base would be maintained at Tongue Point necessitating the maintenance there of a substantial number of employees and enlisted men of the Navy. The Helm report, above referred to, suggested the immediate development and recommended an immediate appropriation of $1,200,000. Subsequently thereto, on October 8, 1919, the board of inspection of naval bases, composed of high officials of the Navy, reported to the Secretary of the Navy that the project be developed to a capacity sufficient "for the successful maintenance and operation of a minimum of 12 submarines, 6 destroyers, etc." This report recommended the appropriation of $1,500,000 with authorization for the completed

project "not to exceed $5,000,000, to be completed within three years."

At this point the people of Clatsop County were called upon to provide a site for the proposed base. In the belief that the United States would proceed in good faith and would develop and use the base as indicated in the reports and would carry on operations that would in a measure repay them for their expenditure, the people of Clatsop County undertook to furnish the site. They bonded themselves for $100,000 and with the proceeds of the issue purchased the necessary land and on January 31, 1921, deeded the land to the United States.

The

The fair expectation of these people has not been met. Only partial development was made and then entirely abandoned. destroyer base has never been completed; it is not used by the Navy but the site is being held in reserve to be available in case of emergency. The committee has concluded that inasmuch as the Navy has not carried out the plan to complete and use the project, but nevertheless desires to keep the property, the United States should give relief to Clatsop County for the amount of the bonds issued in connection. with this project, and accordingly favorably considered the bill, suggesting, however, that the language providing for interest shall be eliminated.

A statement of the foregoing transaction is exhibited in and adverse report submitted by the Acting Secretary of the Navy to the chairman of the Committee on Claims, dated February 17, 1930. This report follows.

The CHAIRMAN COMMITTEE ON CLAIMS,

NAVY DEPARTMENT, Washington, February 17, 1930.

United States Senate, Washington, D. C.

MY DEAR MR. CHAIRMAN: Replying further to the committee's letter of November 6, 1929, inclosing the bill S. 2010, for the relief of Clatsop County, Oreg., and requesting the views of the Navy Department thereon, I have the honor to advise you as follows:

The purpose of this bill is to authorize and direct the Secretary of the Treasury to pay to Clatsop County, Oreg., the sum of $100,000, together with interest on such sum at the rate of 6 per cent per annum from January 31, 1929, to the date of approval of this act on account of the donation of land made by Clatsop County to the United States as hereinafter indicated.

Under the provisions of the naval appropriation act of June 4, 1920 (41 Stat. 822), the Secretary of the Navy was authorized to accept from the city of Astoria, Oreg., free from encumbrance and conditions and without cost to the United States Government, a certain tract of land at Tongue Point, Columbia River, containing 11.5 acres, more or less, of hard land and 256 acres of submerged land for use as a site for a naval submarine and destroyer base. The land referred to was conveyed to the United States by Clatsop County, Oreg., by deed dated January 30, 1921, for a consideration of $1. The action of the county was later ratified, confirmed, and legalized by the Legislature of the State of Oregon through the adoption of a joint resolution.

Thereafter the Navy Department constructed certain water-front improvements at a total cost of $313,190.11, but the development of the site for a submarine and destroyer base was never completed. The property has remained inactive and is being held in reserve by the Navy Department to be available in case of emergency.

"It is inferred that the donation of this land to the United States for the purpose of a submarine and destroyer base was due largely to anticipation that the base would be active and that the county would benefit from the resulting business to a sufficient extent to compensate it for its expense. However, as the base has been inactive such resulting business has not materialized." The importance of this property to the Navy Department due to its strategic location and other consid

erations is still as great as it was at the time it was conveyed to the United States but existing circumstances demand that it be retained in an inactive status. The Navy Department does not consider it desirable to establish a precedent by reimbursing Clatsop County in any amount on account of the purchase by it of this tract of land.

In view of the foregoing it is recommended that the bill be not enacted.
Sincerely yours,

ERNEST LEE JAHNCKE,
Acting Secretary of the Navy.

It will be observed from the report just quoted that the site is valuable to the Navy, that the Navy desires to keep it but does not desire to develop or to use it at this time. The report substantially admits the purpose actuating the donors in granting a site to the United States in the statement

It is inferred that the donation of this land to the United States for the purpose of a submarine and destroyer base was due largely to anticipation that the base would be active and that the county would benefit from the resulting business to a sufficient extent to compensate it for its expense. However, as the base has been inactive such resulting business has not materialized.

The committee does not, however, agree with the conclusion of the report, which is to the effect that "the Navy does not consider it advisable to establish a precedent by reimbursing Clatsop County, etc." This question should properly be determined by Congress.

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