B-86001 (A), I-17000-2374, OCT. 2, 1956

B-86001 (A), I-17000-2374, OCT. 2, 1956

TO MAJOR HAROLD M. ARNOLD, USAF:

REFERENCE IS MADE TO YOUR LETTER OF AUGUST 16, 1956, WITH ENCLOSURE, AND TO YOUR COMMUNICATION SUBMITTED AUGUST 13, 1956, REQUESTING A RECONSIDERATION OF THE DETERMINATION BY OUR OFFICE THAT YOU WERE ERRONEOUSLY PAID INCREASED RENTAL AND SUBSISTENCE ALLOWANCES AS A COMMISSIONED OFFICER WITH DEPENDENT PARENTS FOR THE PERIOD JULY 1, 1943, THROUGH SEPTEMBER 30, 1949, INCIDENT TO YOUR SERVICE AS A COMMISSIONED OFFICER IN THE UNITED STATES ARMY AND AIR FORCE.

THE ENTIRE MATTER WAS CONSIDERED CAREFULLY AND THOROUGHLY AT THE REQUEST OF THE LATE HONORABLE ALBEN W. BARKLEY AND IT WAS DETERMINED THAT NEITHER OF YOUR PARENTS WERE DEPENDENT ON YOU FOR THEIR CHIEF SUPPORT FOR THE PERIOD JULY 1, 1943, THROUGH SEPTEMBER 30, 1949, SINCE IT APPEARED THAT YOUR PARENTS HAD INCOME TOGETHER WITH THE VALUE OF HOUSING AND FOOD PROVIDED BY THEIR FARM OPERATIONS WHICH PROVIDED THEM WITH MORE THAN HALF OF THEIR REQUIREMENTS FOR SUPPORT AND IN FACT EXCEEDED YOUR CONTRIBUTIONS TO THEIR SUPPORT.

YOU STATE THAT YOU ARE UNABLE TO DISCOVER ANY OTHER SOURCE OF INCOME TO YOUR PARENTS OTHER THAN FROM THE FARM OPERATIONS, AND THAT THE MAIN SOURCE OF FARM INCOME TO YOUR PARENTS WAS DERIVED FROM A FARM OWNED BY YOU WHICH ADJOINED THE FARM UPON WHICH THEY LIVED. YOU ALSO CONTEND THAT THE FIGURE --- $162 A MONTH--- USED AS AN AVERAGE AMOUNT FOR LIVING EXPENSES OF YOUR PARENTS IS CONSIDERABLY UNDERSTATED; THAT THE AMOUNT OF $89 A MONTH IS REASONABLE AND PROPER AND IS SUPPORTED BY THE INVESTIGATION MADE BY THE AIR FORCE; AND THAT YOUR CASH CONTRIBUTIONS CONSTITUTED THE GREATER PORTION OF YOUR PARENTS INCOME FROM 1943 TO 1949 AND WAS MORE THAN HALF OF THE AMOUNTS REQUIRED FOR NORMAL LIVING EXPENSES.

THE AVERAGE MONTHLY LIVING EXPENSES INVOLVING A CASH OUTLAY OF $162 WERE ESTIMATED BY YOUR MOTHER AND INCLUDED $20 FOR FOOD. IN YOUR ESTIMATE OF AVERAGE LIVING EXPENSES OF $289 A MONTH YOU INCLUDE $120 FOR FOOD. SINCE YOUR PARENTS' FOOD WAS DERIVED PRIMARILY FROM THEIR FARM OPERATIONS, SUCH ESTIMATED INCREASE IN THEIR LIVING EXPENSES WOULD IN NO WAY REFLECT ANY INCREASE IN YOUR CONTRIBUTIONS, BUT RATHER, WOULD REFLECT AN INCREASE IN THE PERCENTAGE OF THEIR LIVING EXPENSES DERIVED FROM THEIR OWN EFFORTS.

IT APPEARS THAT FOR THE PERIOD WITH WHICH WE ARE CONCERNED, YOUR PARENTS LIVED ON AN 185-ACRE FARM, TITLE TO WHICH WAS IN THEIR CHILDREN, BUT OPERATED BY YOUR PARENTS AS THEIR OWN. THE TILLABLE AREA OF THIS FARM DOES NOT DEFINITELY APPEAR IN THE RECORD--- OUR INVESTIGATOR ESTIMATES 150 ACRES, WHEREAS YOU STATE THAT ONLY 50 ACRES COULD BE PROFITABLY CULTIVATED. HOWEVER, THE AREA THAT WAS NOT CULTIVATED APPEARS TO HAVE BEEN USED FOR GRAZING PURPOSES AND, HENCE, CONTRIBUTED TO THE PRODUCTIVITY OF THE FARM. IN ADDITION, IT APPEARS THAT YOU OWNED AN ADJOINING FARM OF 96 ACRES WITH 85 TILLABLE ACRES, WHICH WAS OPERATED BY YOUR PARENTS IN CONJUNCTION WITH THE FARM ON WHICH THEY LIVED, UNDER AN ARRANGEMENT WHEREBY THEY WOULD RECEIVE A PERCENTAGE OF THE INCOME OF YOUR FARM. FURTHER APPEARS FROM OUR FILES THAT FOR THE YEARS 1943 THROUGH 1948, THE FARMS MAY HAVE BEEN OPERATED AT ONLY A NOMINAL NET PROFIT, YET YOUR PARENTS WERE ABLE TO LIVE OFF THE FRUITS OF THEIR LABORS, AND THAT YOUR CONTRIBUTIONS TO YOUR MOTHER, OTHER THAN AN ALLOTMENT TO HER WHICH WAS DEPOSITED TO YOUR BANK ACCOUNT, WERE USED PRIMARILY FOR CAPITAL INVESTMENT PURPOSES--- IMPROVING THE VALUE OF YOUR HOLDINGS AND INDIRECTLY THEIR OWN FARM AS WELL--- RATHER THAN FOR SUPPORT PURPOSES.

IT AGAIN MAY BE POINTED OUT TO YOU THAT WHILE AN OFFICER MAY CLAIM INCREASED ALLOWANCES ON ACCOUNT OF EITHER OR BOTH PARENTS, NEITHER MAY BE CONSIDERED AS IN FACT DEPENDENT ON THE CLAIMING OFFICER FOR CHIEF SUPPORT WHERE THEIR OTHER INCOME COVERS MORE THAN HALF OF THEIR ACTUAL LIVING EXPENSES, OR STATING IT IN ANOTHER WAY, WHERE MORE THAN HALF OF THEIR ACTUAL COST OF LIVING IS OBTAINED IN KIND BY THEIR OWN EFFORTS OR FROM SOURCES OTHER THAN THE CLAIMING OFFICER.

IT HAS BEEN HELD THAT THE FACT THAT AN OFFICER'S AVERAGE MONTHLY CONTRIBUTION IS IN EXCESS OF THE PARENTS' INDEPENDENT INCOME DOES NOT OF ITSELF ESTABLISH THAT THE PARENT IS ACTUALLY DEPENDENT ON THE OFFICER FOR CHIEF SUPPORT; IT MUST BE SHOWN THAT THE OFFICER'S CONTRIBUTION WAS REQUIRED FOR THE PARENTS NECESSARY AND PROPER SUPPORT AND ACTUALLY CONSTITUTED THE PARENTS' CHIEF SUPPORT. WHITING V. UNITED STATES, 80C.CLS. 662; ODLIN V. UNITED STATES, 74 C.CLS. 633, 638.

UPON REVIEW OF THE MATTER, IT DOES NOT APPEAR THAT ANY CHANGE IS WARRANTED IN OUR DETERMINATION THAT NEITHER OF YOUR PARENTS WAS IN FACT DEPENDENT UPON YOU FOR THEIR CHIEF SUPPORT. ACCORDINGLY, A DEBT SETTLEMENT WILL BE ISSUED BY OUR CLAIMS DIVISION CERTIFYING THE AMOUNT OF YOUR INDEBTEDNESS TO THE UNITED STATES ON ACCOUNT OF THE INCREASED ALLOWANCES PAID TO YOU DURING THE PERIOD JULY 1, 1943, THROUGH SEPTEMBER 30, 1949. IN THIS CONNECTION, CONSIDERATION WILL BE GIVEN TO THE CERTIFICATE SUBMITTED CERTIFYING THE NONAVAILABILITY OF QUARTERS TO YOU DURING THE PERIOD JANUARY 23, 1947, TO NOVEMBER 20, 1949.