MAY 17 (legislative day, MAY 13), 1954.-Ordered to be printed

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

following

REPORT

[To accompany H. R. 5772]

The Committee on the Judiciary, to which was referred the bill (H. R. 5772) to relieve Robert E. Leibbrand and Rose Leibbrand of all liability to refund $960 to the United States, having considered the same, reports favorably thereon and recommends that the bill without amendment do pass.

PURPOSE

The purpose of this legislation is to relieve Robert E. Leibbrand and Rose Leibbrand, Seattle, Wash., of all liability to refund to the United States the sum of $960, the class E allotments erroneously paid to Rose Leibbrand, sister of Robert E. Leibbrand after he had discontinued said allotment.

STATEMENT

The facts which support this bill are set forth in full in House Report 1239 to accompany H. R. 7460, which is attached in full below and made a part of this report. These facts may be summarized as follows:

On June 23, 1942, Robert E. Leibbrand, while serving overseas in the Army of the United States duly signed and filed with the proper military authorities an authorization for the deduction from his pay of a class E allotment of $30 per month payable to his sister, Rose Leibbrand. Thereafter, claimant executed an appropriate form directing that effective November 1, 1942, his mother, Mrs. William Leibbrand should be substituted for his sister as the recipient of this class E allotment.

Notwithstanding the aforesaid cancellation of allotment to Leibbrand's sister, however, from January 1, 1943, to October 31, 1945, the War Department erroneously paid to her a net total of $960. None of this amount was deducted from Leibbrand's pay. During the major portion of this period, the War Department also paid class E allotments to Leibbrand's mother, according to his previous instructions. These payments were deducted from Leibbrand's pay.

Rose Leibbrand, the sister, joined the Womens' Army Corps before Leibbrand discontinued his payments to her. She had no knowledge her brother had discontinued his allotment to her until he was discharged from the Army and the $960 had been erroneously paid to her. When she received each check she endorsed it and immediately mailed it to her mother to be saved for her brother, Robert E. Leibbrand. Her mother, however, was suffering from a chronic illness and instead of saving the money for her son, applied it to the payment of expenses connected with her illness.

Robert E. Libbrand was honorably discharged as a staff sergeant, August 13, 1945. More than 6 years thereafter, to wit, on April 7, 1952, the Army Finance Center notified Liebbrand of this liability and demanded that refund to the Government be made by him. He had returned from the war in poor health, however, now has a family of his own to support, and is not financially able to refund the $960 or any part thereof.

Sergeant Leibbrand's mother is 74 years of age, and lives with a daugher. She too is financially unable to refund any part of this overpayment.

Neither Robert E. Leibbrand nor his sister, Rose Leibbrand received any financial benefit from these overpayments.

The Chief of Finance advises this overpayment resulted solely from an administrative error in the War Department.

The Department of the Army takes the view that Robert E. Leibbrand should be relieved of all liability for repayment of this $960. The Bureau of the Budget has no objection to the Army's position. In view of the facts just related, and after a study of the other data submitted, the committee is of the opinion that the bill is meritorious. Therefore, the committee recommends that the bill, H. R. 5772, be considered favorably.

STATEMENT OF FACTS

The report from the Department of the Army, made October 2, 1953, gives in detail the history of this proposed legislation. After careful consideration, the committee recommends favorable consideration of the bill.

The report of the Department of the Army is as follows:

Hon. CHAUNCEY W. REED,

DEPARTMENT OF THE ARMY, Washington 25, D. C., October 2, 1953.

Chairman, Committee on the Judiciary,

House of Representatives.

DEAR MR. REED: Reference is made to your letter enclosing a copy of H. R. 5772, 83d Congress, a bill for the relief of Robert E. Leibbrand, and requesting a report on the merits of the bill.

This bill provides as follows:

"That Robert E. Leibbrand, Seattle, Washington, is hereby relieved of all liability to refund to the United States the sum of $960. Such sum represents the amount of the class E allotment payments which were erroneously made to

Rose Leibbrand, the sister of the said Robert E. Leibbrand, during the period beginning November 1, 1942, and ending October 31, 1945, after the said Robert E. Leibbrand had discontinued such allotment. In the audit and settlement of the accounts of any certifying or disbursing officer of the United States full credit shall be given for the amount for which liability is relieved by this Act."

The records of the Department of the Army show that Robert Edward Leibbrand (referred to in H. R. 5772 as "Robert E. Leibbrand") was born at Lisbon, N. Dak., on January 6, 1915, that on January 10, 1940, he enlisted as a private in the National Guard of the United States and of the State of Washington, at Bellingham, Wash., and was assigned Army Serial No. 20,944,171, and that at the time of his enlistment he was unmarried, his occupation was that of college student, and his parents were William B. Leibbrand and Mrs. Iva Leibbrand of Milton, Oreg. Upon his enlistment Private Leibbrand was assigned to Company I, 161st Infantry, Washington National Guard. The 161st Infantry was called into the Federal service effective September 16, 1940, and Private Leibbrand as a member of that organization entered upon active duty in the Army of the United States on that date. He was promoted to private first class on February 4, 1941, to corporal on June 3, 1942, to sergeant on October 3, 1942, and to staff sergeant on December 5, 1942.

On December 16, 1941, this soldier was sent overseas with his organization for service in the Pacific theater of operations. He participated in military campaigns as a combat infantryman in Guadalcanal, the northern Solomons, and the Philippine Islands. He continued to serve in the Pacific until July 7, 1945, when he was returned to the United States. He arrived back in this country on August 9, 1945. He was honorably discharged from the Army in the grade of staff sergeant at Fort Lewis, Wash., on August 13, 1945, by reason of general demobili. zation.

On June 23, 1942, while serving overseas, this soldier duly signed and filed with the proper military authorities an authorization for the deduction from his pay of a class E allotment, in the amount of $30 per month, to be paid to his sister, Rose Leibbrand, of Heppner, Oreg., beginning on July 1, 1942. Thereafter on October 25, 1942, this soldier duly signed and filed with the proper military authorities an appropriate form in which he directed that effective November 1, 1942, his mother, Mrs. William Leibbrand, of Milton, Oreg., be substituted as the allottee of his class E allotment, and that the amount of such allotment be increased from $30 to $50 per month on the same date. Subsequently, on January 1, 1943, Sergeant Leibbrand duly signed and filed with the proper military authorities an appropriate form increasing the amount of his class E allotment to his mother to $70 per month, effective February 1, 1943. On March 31, 1945, he duly signed and filed with the proper military authorities an appropriate form in which he directed that his class E allotment of $70 per month to his mother be discontinued effective that date.

In accordance with the directions of this soldier, a class E allotment in the amount of $30 per month was deducted from his pay and paid to his sister, Rose Leibbrand, for the period from July 1 to October 31, 1942, inclusive. From November 1 to December 31, 1942, there continued to be deducted from the pay of such soldier $30 per month, which was paid to Rose Leibbrand; and in addition to such deduction there was deducted from the pay of said soldier for said 2 months the sum of $20 per month, which was paid to Mrs. William Leibbrand (which made the total deductions from the pay of this soldier for the months of November and December 1942 the sum of $100, or $50 per month, the amount of his class E allotment in favor of his mother during that period of time). For the month of January 1943 there was deducted from the pay of Sergeant Leibbrand the sum of $50, which was paid to his mother as a class E allotment. From February 1, 1943, to March 31, 1945, inclusive, there was deducted from the pay of Sergeant Leibbrand the sum of $70 per month, which was paid to his mother as a class E allotment.

No deduction was made from the pay of Sergeant Leibbrand after December 31, 1942, for the payment of any allotment to Rose Leibbrand. Notwithstanding this fact, as well as the fact that the allotment in her favor had been canceled effective October 31, 1942, the War Department erroneously paid to Rose Leibbrand the sum of $30 per month for the period from January 1, 1943, to October 31, 1945, inclusive, or a total of $1,020. The last 2 allotment checks sent to Rose Leibbrand, in the amount of $30 each and covering the months of September and October 1945, respectively, were returned by her to the War Department inasmuch as Sergeant Leibbrand had been discharged from the Army in August 1945. Deducting the total of these 2 checks ($60) from the aggregate of the

sums paid to Rose Leibbrand from and after January 1, 1943 ($1,020), leaves a balance of $960 (which constitutes the net amount of public funds paid out in this case to Rose Leibbrand as a class E allotment after Sergeant Leibbrand had canceled his allotment to her, and when no funds were being deducted from his pay for the payment of such allotment).

On April 7, 1952, the Army Finance Center, St. Louis, Mo., wrote a letter to Sgt. Robert E. Leibbrand in which he was advised that a review of his account showed that he was indebted to the United States in the amount of $1,080, on account of overpayments of a class E allotment to Rose Leibbrand, and demanded that he refund to the Government that amount Sergeant Leibbrand did not comply with such demand, and the papers in the case were subsequently referred to the General Accounting Office. In a letter, dated April 21, 1953, the General Accounting Office advised that Robert E. Leibbrand, ASN 20944171, will be held legally liable for the refund of $960 to the United States. Since that letter was written no part of such indebtedness has been paid.

It appears that Rose Leibbrand joined the Women's Army Corps prior to the time when Robert E. Leibbrand discontinued his allotment to her; that she had no knowledge of the discontinuance of such allotment until subsequent to the discharge of her brother from the Army and after checks aggregating $960 had been erroneously paid to her by the War Department; that each of said checks when received by Rose Leibbrand was immediately endorsed by her and mailed to her mother, Mrs. William Leibbrand, to be saved for Sergeant Leibbrand; that such money was not saved by Mrs. William Leibbrand, but was used by her to pay expenses incurred by her incident to a chronic illness from which she suffered; that the said Mrs. William Leibbrand is now 74 years of age, lives with a daughter in California, and is unable to refund to the United States the amount of such overpayment, or any part thereof; and that Sergeant Leibbrand returned from the war in poor physical condition, that he now has a family of his own to support, and that he is not financially able to refund to the United States the sum of $960, or any part thereof.

The Chief of Finance has advised that the records of the Department of the Army show that this overpayment of allotment in the aggregate amount of $960 resulted solely from an administrative error in the War Department in failing to discontinue the allotment as directed by Sergeant Leibbrand. Neither Rose Leibbrand nor Sergeant Leibbrand received any financial benefit as the result of the payment of this allotment, and it would be a rather severe hardship to require him to refund the amount of this indebtedness to the United States.

In the light of the facts and circumstances in this case it is the view of the Department of the Army that, in equity and justice, Robert E. Leibbrand should be relieved of all liability to refund to the United States the aforesaid sum of $960. The Department, accordingly, has no objection to the enactment of H. R. 5772. The Bureau of the Budget has advised that there is no objection to the submission of this report.

Sincerely yours,

AFFIDAVIT

ROBERT T. STEVENS,
Secretary of the Army.

Robert E. Leibbrand, ASN 20944171, of 16880 8th Avenue, South, Seattle, Wash., being duly sworn, deposes and says that he in good faith did sign a discontinuance notice re a class E allotment, to be effective October 31, 1942, and that said notice never having been processed by responsible United States Army authorities, payments thereon continuing through aforesaid error unknown to and unintended by said Robert E. Leibbrand, that subsequently he never in any way or at any time benefited in any way from the aforesaid erroneous payments and that he herewith denies any and all allegations of liability or responsibility toward the repayment of said erroneous payments, viz: Army Claim No. Z-794679.

ROBERT E. LEIBBRAND.

Subscribed and sworn to before me this 30th day of April 1953. [SEAL]

My commission expires December 28, 1953.

ESTHER GILbert,
Notary Public

AFFIDAVIT

STATE OF MISSOURI,

County of Pettis, ss:

The affiant, Rose Leibbrand, states that she did receive class E allotments from the United States Government on behalf of her brother, S. Sgt. Robert E. Leibbrand, 20944171 from July 1, 1942, to October 31, 1945, and that such payments were sent to their mother, Mrs. William Leibbrand (Iva), a widow, and that to the best of the affiant's knowledge, such payments were used to defray said mother's living expenses and that the maker of said payments, S. Sgt. Robert E. Leibbrand, did not in any way benefit from these class E allotments either as savings or money paid to him by the donee, Mrs. William Leibbrand.

The allottee did not, as she so states, benefit in any way from these payments, which she transmitted monthly to Mrs. William Leibbrand, and that she knows for a fact that her brother, S. Sgt. Robert E. Leibbrand, did not benefit in any way from these allotments.

Sworn to and subscribed before me this 24th day of March 1953.

[SEAL]

My commission expires 15th day of June 1954.

ROSE LEIBBRAND.

O

58003-55 S. Repts., 83-2, vol. 3——19