A-16710, JANUARY 6, 1927, 6 COMP. GEN. 441

A-16710: Jan 6, 1927

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IS AUTHORIZED. FOR DECISION WHETHER YOU ARE AUTHORIZED TO MAKE PAYMENT ON A VOUCHER STATED IN FAVOR OF THE PIONEER MANUFACTURING SUPPLY CO. OTHERWISE THE GOVERNMENT WILL RETAIN THE DEPOSIT AND RESELL THE PROPERTY (SEE PARAGRAPH 5). THIS DEPOSIT WILL BE USED TO COVER ANY LOSS SUSTAINED BY THE UNITED STATES BY REASON OF DEFAULT OF PURCHASER. OR TO COVER STORAGE CHARGES THAT MAY HAVE ACCRUED. LETTERS OF CREDIT OR BANKERS' ACCEPTANCES ARE NOT APPLICABLE AS PAYMENT FOR SALVAGE MATERIAL. 5. THE UNITED STATES WILL PROCEED TO RESELL THE PROPERTY AT PUBLIC AUCTION. THE ORIGINAL PURCHASER WILL BE NOTIFIED BY MAIL OF THE TIME. THE PROCEEDS OF THE RESALE WILL BE APPLIED TO THE ACCOUNT OF THE ORIGINAL PURCHASER AND TO WHICH ACCOUNT WILL BE APPLIED THE ORIGINAL DEPOSIT.

A-16710, JANUARY 6, 1927, 6 COMP. GEN. 441

SALES - SALVAGE PROPERTY - REFUNDS ON RESALE WHERE THE TERMS AND CONDITIONS OF A SALE OF SALVAGE PROPERTY REQUIRED THE DEPOSIT OF 20 PERCENT OF THE PURCHASE PRICE AT THE TIME AND PLACE OF SALE AND THE BALANCE WITHIN 10 DAYS THEREAFTER, AND PROVIDED THAT UPON DEFAULT OF THE PURCHASER THE PROPERTY WOULD BE RESOLD FOR HIS ACCOUNT, AND THAT SHOULD THE AMOUNT RECEIVED UPON RESALE, TOGETHER WITH THE DEPOSIT AND AFTER DEDUCTING THE EXPENSES OF SUCH RESALE AND THE STORAGE CHARGES, EXCEED THE TOTAL ORIGINAL PURCHASE PRICE, SUCH EXCESS WOULD BE REFUNDED TO THE ORIGINAL PURCHASER, REFUND OF THE DEPOSIT, TOGETHER WITH THE EXCESS OF THE NET PROCEEDS OF THE RESALE OVER THE ORIGINAL SALES PRICE, IS AUTHORIZED.

COMPTROLLER GENERAL MCCARL TO MAJ. S. B. ARMAT, UNITED STATES ARMY, JANUARY 6, 1927:

THERE HAS BEEN RECEIVED BY REFERENCE YOUR REQUEST DATED DECEMBER 10, 1926, FOR DECISION WHETHER YOU ARE AUTHORIZED TO MAKE PAYMENT ON A VOUCHER STATED IN FAVOR OF THE PIONEER MANUFACTURING SUPPLY CO., OF NEW YORK CITY, AS FOLLOWS:

TABLE

SALVAGE AUCTION SALE JUNE 1, 1926

DEPOSIT ON AUCTION SALE, 6/1/26 ---------------------- $145.00

EXCESS RECD. FROM SALE, 8/2/26 ----------------------- 40.00

185.00

COST OF RESALE --------------------------------------- 5.07

179.93

STORAGE 6/10 TO 8/2/26 ------------------------------- 16.50

REFUND DUE PURCHASER --------------------------------- 163.43

THE CATALOGUE OF SALVAGE PROPERTY SOLD AT PUBLIC AUCTION AT THE QUARTERMASTER INTERMEDIATE DEPOT, BOSTON, MASS., JUNE 1, 1926, SET FORTH THE TERMS AND CONDITIONS OF THE SALE. THE TERMS PROVIDE:

1. DEPOSITS.--- TWENTY PERCENT OF THE TOTAL PURCHASES MUST BE PAID IN CASH OR CERTIFIED CHECK AT THE TIME AND PLACE OF SALE; BALANCE WITHIN TEN DAYS FROM DATE OF SALE, OTHERWISE THE GOVERNMENT WILL RETAIN THE DEPOSIT AND RESELL THE PROPERTY (SEE PARAGRAPH 5). THIS DEPOSIT WILL BE USED TO COVER ANY LOSS SUSTAINED BY THE UNITED STATES BY REASON OF DEFAULT OF PURCHASER, OR TO COVER STORAGE CHARGES THAT MAY HAVE ACCRUED. LETTERS OF CREDIT OR BANKERS' ACCEPTANCES ARE NOT APPLICABLE AS PAYMENT FOR SALVAGE MATERIAL.

5. RESALE.--- IF THE PURCHASER FAILS TO COMPLY WITH THE TERMS OF THE SALE WITHIN THE PRESCRIBED TIME LIMIT, OR FAILS TO PAY ACCRUED STORAGE CHARGES, THE UNITED STATES WILL PROCEED TO RESELL THE PROPERTY AT PUBLIC AUCTION. THE ORIGINAL PURCHASER WILL BE NOTIFIED BY MAIL OF THE TIME, DATE, AND PLACE OF RESALE ON WHICH HE HAS DEFAULTED. THE PROCEEDS OF THE RESALE WILL BE APPLIED TO THE ACCOUNT OF THE ORIGINAL PURCHASER AND TO WHICH ACCOUNT WILL BE APPLIED THE ORIGINAL DEPOSIT. SHOULD THE AMOUNT RECEIVED FROM RESALE, TOGETHER WITH THE DEPOSIT, AFTER DEDUCTING THE EXPENSES OF SUCH RESALE AND STORAGE CHARGES, EXCEED THE TOTAL ORIGINAL PURCHASE PRICE, THE EXCESS WILL BE REFUNDED TO THE ORIGINAL PURCHASER.

IT APPEARS THAT THE PIONEER MANUFACTURING SUPPLY CO. WAS THE PURCHASER AT THE AUCTION SALE OF LOT 23, CONSISTING OF 344,000 CORDS, BODY FOR GAS-MASK KNAPSACK, FOR $705 AND THAT A DEPOSIT OF $145 WAS MADE AS 20 PERCENT OF THE PURCHASE PRICE UNDER THE TERMS OF THE SALE. IT FURTHER APPEARS THAT ON ACCOUNT OF THE FAILURE OF THE PURCHASER TO MAKE FINAL PAYMENT WITHIN 10 DAYS FROM DATE OF SALE, THE CORDS WERE RESOLD AT PUBLIC AUCTION HELD ON AUGUST 2, 1926, FOR THE ACCOUNT OF THE CLAIMANT, THE PRICE DERIVED ON RESALE BEING $745.

THE GOVERNMENT SUFFERED NO ACTUAL DAMAGE BY REASON OF THE DEFAULT, THE PROCEEDS OF THE SALE AFTER DEDUCTING EXPENSES (COST OF RESALE AND STORAGE) HAVING NETTED MORE THAN THE PRICE BID BY THE ORIGINAL PURCHASER AND UNDER THE TERMS AND CONDITIONS OF THE SALE, CLAIMANT IS ENTITLED TO REFUND OF ITS DEPOSIT OF $145 AS WELL AS $18.43, REPRESENTING THE EXCESS OF THE NET PROCEEDS OF THE RESALE OVER THE ORIGINAL SALE PRICE.

ACCORDINGLY, YOU ARE ADVISED THAT PAYMENT ON THE VOUCHER SUBMITTED IS AUTHORIZED.