Memorandum of Disapproval of Bill for the Relief of the Knox Corporation.
I HAVE WITHHELD my approval from H. R. 2904, "For the relief of the Knox Corporation of Thomson, Georgia," for the reason that it provides for a return by the Government of fees to a private corporation which had been properly paid pursuant to a valid contract. In this case, there were fees of $7,809 paid by the Knox Corporation in connection with commitments by the Federal National Mortgage Association to purchase mortgages on housing to be constructed in the future. The housing was not constructed. However, the Government was not responsible in any way for the failure to construct such housing. Accordingly, the commitments were terminated and the commitment fees were retained by the Federal National Mortgage Association. This action was in accordance with the express terms of the contract and with established procedure. There is no proper basis upon which an exception can be made in this case. Approval of this special relief bill would establish a highly undesirable precedent and result in unwarranted costs to the Government.
DWIGHT D. EISENHOWER
Dwight D. Eisenhower, Memorandum of Disapproval of Bill for the Relief of the Knox Corporation. Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/233554