B-38066, JUL 21, 1949

B-38066, JUL 21, 1949

PRECIS-UNAVAILABLE

THE HONORABLE, THE SECRETARY OF THE ARMY:

FOLLOWING THE RECEIPT OF A LETTER DATED OCTOBER 30, 1943, FROM THE LATE HONORABLE HENRY L. STIMSON, FORMER SECRETARY OF WAR, IN WHICH WAS PROFFERED THE AID OF THE WAR DEPARTMENT, INCLUDING THE USE OF ALL FACILITIES AT ITS DISPOSAL, FOR THE PROMPT PAYMENT BY THE FINANCE DEPARTMENT, IF OTHERWISE CORRECT, OF THE CLASSES OF CLAIMS THEREIN ENUMERATED, AND RECOGNIZING THE BENEFICIAL RESULTS TO BE ATTAINED BY SUCH PROCEDURE IN DISPOSING OF VAST NUMBERS OF CLAIMS OF FORMER MILITARY PERSONNEL RESULTING FROM THE EXTENSIVE OPERATION OF THE ARMY SINCE DECEMBER 7, 1941, THIS OFFICE IN AGREEMENT WITH THE SUGGESTIONS THEREIN CONTAINED AUTHORIZED THE PROCEDURES SO RECOMMENDED. B-38066, DATED NOVEMBER 16, 1943.

I HAVE BEEN ADVISED THAT THE CONDITION OF THE WORK LOAD COVERING THOSE CLASSES OF CLAIMS NOW HAS REACHED A POINT WHERE REVERSION TO THE SETTLEMENT PROCEDURES IN EFFECT PRIOR TO THE CHANGE AUTHORIZED BY THE DECISION OF NOVEMBER 16, 1943, IS DESIRABLE AND PROPER. IN THIS CONNECTION, ATTENTION IS INVITED TO OFFICE LETTER DATED AUGUST 3, 1948, TO THE SECRETARY OF THE ARMY, PARTICULARLY THE LAST PARAGRAPH THEREOF. ACCORDINGLY, EFFECTIVE JULY 1, 1949, THE UNSETTLED CLAIMS ENCOMPASSED IN THE DECISION OF NOVEMBER 16, 1943, PENDING IN THE ADJUSTMENT DIVISION OF THE FINANCE DEPARTMENT OF THE ARMY, FOLLOWING DEVELOPMENT THEREOF TO THE EXTENT DEEMED ADEQUATE, SHOULD BE TRANSMITTED TO THE CLAIMS DIVISION OF THIS OFFICE FOR SETTLEMENT, INSTEAD OF TO THE ST. LOUIS BRANCH OF THE AUDIT DIVISION OF THIS OFFICE, FOR EXAMINATION AS AUTHORIZED IN OFFICE LETTER DATED JANUARY 23, 1946, B-55273.

WITH THIS TERMINATION OF THE EXISTING SETTLEMENT PROCEDURES, I WISH TO EXPRESS, THROUGH YOU, TO THE OFFICERS AND EMPLOYEES OF THE ADJUSTMENT DIVISION OF THE FINANCE OFFICE AT ST. LOUIS IN PARTICULAR, AND TO THE OTHER OFFICERS AND EMPLOYEES OF YOUR DEPARTMENT ASSOCIATED WITH THE WORK, MY PERSONAL AND SINCERE APPRECIATION FOR THEIR COOPERATION WITH THE EMPLOYEES OF OUR AUDIT DIVISION BRANCH IN OVERCOMING THE MANY OBSTACLES WHICH NECESSARILY MUST HAVE ARISEN IN DISPOSING OF HUNDREDS OF THOUSANDS OF SUCH CLAIMS WITH PROMPTITUDE AND DILIGENCE, THUS REDUCING TO A MINIMUM CRITICISM FOR DELAY, WHETHER JUSTIFIABLE OR NOT, WHICH SOMETIMES EMANATES FROM THOSE NOT ALWAYS FAMILIAR OR CONVERSANT WITH THE INTRICACIES, COMPLEXITIES AND DIFFICULTIES IN ASSEMBLING ADEQUATE RECORDS, ETC., WHICH ARE BOUND TO ARISE IN HANDLING SUCH A TREMENDOUS TASK. ALSO, I BELIEVE IT SAFE TO SAY, THAT THIS SPIRIT AMONG OUR TWO AGENCIES MUST HAVE LEFT AN IMPRESSION OF RESPECT AND GRATITUDE IN THE MINDS OF THE CLAIMANTS WHOSE CLAIMS WERE HANDLED SO EXPEDITIOUSLY. I TRUST THAT THE SAME COOPERATION MAY CONTINUE IN THE FUTURE.

REFERENCE IS MADE TO FORMER SECRETARY JOHNSON'S LETTER OF SEPTEMBER 19, 1950, PROPOSING THAT THE MILITARY SERVICES BE AUTHORIZED TO SETTLE CLAIMS FOR AMOUNTS FOUND TO BE DUE MEMBERS OR FORMER MEMBERS OF SUCH SERVICES WHICH HAD NOT BEEN PAID AT THE TIME OF THEIR DISCHARGE OR RELEASE FROM ACTIVE DUTY WHEN (1) THE APPROPRIATION INVOLVED IS CURRENTLY AVAILABLE FOR EXPENDITURES; (2) ENTITLEMENT BOTH IN LAW AND FACT IS CLEARLY ESTABLISHED; AND (3) SETTLEMENT CAN BE ADEQUATELY SUBSTANTIATED.

THE MATTER HAS BEEN GIVEN CAREFUL AND SYMPATHETIC CONSIDERATION BUT THIS OFFICE IS UNABLE TO CONCLUDE THAT UNDER PRESENT CONDITIONS THE PROPOSED PROCEDURE WOULD BE WARRANTED.

IN THE FIRST PLACE, IT WOULD APPARENTLY INVOLVE A CONSIDERABLE DUPLICATION OF WORK AND INCREASED EXPENSES. THE SERVICES WOULD SET UP AND MAINTAIN FOUR SEPARATE ORGANIZATIONS (ONE FOR THE ARMY IN ST. LOUIS, ONE FOR THE NAVY IN CLEVELAND, ONE FOR THE AIR FORCE-- SUPPOSEDLY IN DENVER-- AND ONE FOR THE MARINE CORPS IN WASHINGTON, D.C.) TO DO IN PART WHAT IS NOW A COMPARATIVELY SMALL PART OF THE WORK DONE BY THE CLAIMS DIVISION OF THIS OFFICE IN WASHINGTON. THE CLAIMS ACTION TAKEN BY SUCH SEVERAL SERVICE ORGANIZATIONS WOULD HAVE NO FINALITY. THOSE CLAIMS WHICH WERE DENIED WOULD BE SUBJECT TO RESETTLEMENT BY THE CLAIMS DIVISION OF THIS OFFICE. THOSE WHICH WERE PAID WOULD HAVE TO BE EXAMINED AFTER PAYMENT AND IN EFFECT APPROVED OR DISAPPROVED BY THE AUDIT DIVISION OF THIS OFFICE IN THE AUDIT OF THE ACCOUNTS OF THE DISBURSING OFFICERS MAKING THE PAYMENTS, WITH TEDIOUS AND OFTEN INEFFECTUAL COLLECTION PROCEEDINGS IN THOSE CASES WHICH COULD NOT BE APPROVED. AND THOSE CLAIMS FOUND TO INVOLVE QUESTIONS OF FACT OR LAW WOULD HAVE TO BE TRANSMITTED TO THE CLAIMS DIVISION OF THIS OFFICE FOR SETTLEMENT IN THE FIRST INSTANCE. IT SEEMS APPARENT THAT SUCH PROCEDURE WOULD NOT DECREASE THE WORK AND EXPENSE OF THIS OFFICE APPRECIABLY, IF ANY, AND POSSIBLY MIGHT INCREASE THEM, WHILE IMPOSING A SUBSTANTIAL AMOUNT OF ADDITIONAL WORK AND UNNECESSARY EXPENSE ON THE DEPARTMENT OF DEFENSE.

IN THE SECOND PLACE, NO COMPENSATING BENEFITS ARE APPARENT. UNDER THE NEW PAY SYSTEMS NOW IN EFFECT IN THE ARMED SERVICES THERE SHOULD ARISE COMPARATIVELY FEW CLAIMS OF THE CHARACTER HERE INVOLVED. OF THOSE WHICH DO ARISE, THE SERVICES WOULD PAY UNDER THE PROPOSAL IN SECRETARY JOHNSON'S LETTER ONLY THOSE IN WHICH "ENTITLEMENT BOTH IN LAW AND FACT IS CLEARLY ESTABLISHED." THE WORK OF THE MILITARY CLAIMS SUBDIVISION OF THIS OFFICE NOW BEING CURRENT, THERE IS NO REASON TO SUPPOSE THAT ON THE WHOLE SUCH CLAIMS WOULD BE DETERMINED AND PAID ANY FASTER BY FOUR DIFFERENT NEWLY ORGANIZED SERVICE UNITS THAN BY THE EXPERIENCED PERSONNEL OF THE CLAIMS DIVISION OF THIS OFFICE UNDER WELL ESTABLISHED PROCEDURES, OR AS UNIFORMLY AS UNDER THE PRESENT PRACTICE.

GRANTING ROOM FOR SOME DIFFERENCES OF OPINION ON THE FOREGOING PROPOSITIONS, I BELIEVE YOU WILL AGREE, VIEWING THE MATTER BROADLY, THAT SUCH DOUBTS AS THERE MAY BE SHOULD BE RESOLVED AGAINST ANY UNNECESSARY DIVERSION OF MILITARY AND DEFENSE PERSONNEL, ESPECIALLY UNDER PRESENT CONDITIONS, TO WORK WHICH USUALLY HAS BEEN PERFORMED BY CIVILIAN AGENCIES.