A-45108, JANUARY 4, 1937, 16 COMP. GEN. 629

A-45108: Jan 4, 1937

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VETERANS' ADMINISTRATION - ADJUSTED COMPENSATION - LOANS - COURT JUDGMENTS A JUDGMENT RENDERED AGAINST A VETERAN FOR THE AMOUNT OF A BANK LOAN ON THE SECURITY OF HIS ADJUSTED SERVICE CERTIFICATE DOES NOT CONSTITUTE A BINDING OBLIGATION ON THE UNITED STATES WHERE THE GOVERNMENT IS NOT A PARTY TO THE LOCAL COURT ACTION. CERTIFYING THAT THE COPIES OF COMPLAINT AND ANSWER REFERRED TO ABOVE ARE TRUE AND CORRECT COPIES. THAT THE JUDGMENT OF THE JURY FOR THE PLAINTIFF IN SAID CAUSE OF ACTION WAS ENTERED ON SEPTEMBER 25. IT IS STATED IN SUBSTANCE THAT DURING THE MONTH OF JANUARY 1931 THE SUBJECT VETERAN WAS EMPLOYED BY THE AFFIANT AS A BARBER. THAT SOMETIME DURING THAT MONTH THE VETERAN INFORMED AFFIANT THAT HE WAS BORROWING $295 ON HIS ADJUSTED SERVICE CERTIFICATE FROM THE CHEYENNE COUNTY STATE BANK OF CHEYENNE WELLS.

A-45108, JANUARY 4, 1937, 16 COMP. GEN. 629

VETERANS' ADMINISTRATION - ADJUSTED COMPENSATION - LOANS - COURT JUDGMENTS A JUDGMENT RENDERED AGAINST A VETERAN FOR THE AMOUNT OF A BANK LOAN ON THE SECURITY OF HIS ADJUSTED SERVICE CERTIFICATE DOES NOT CONSTITUTE A BINDING OBLIGATION ON THE UNITED STATES WHERE THE GOVERNMENT IS NOT A PARTY TO THE LOCAL COURT ACTION, BUT, BEING EVIDENCE OF A LOAN AUTHORIZED BY LAW, A VOUCHER MAY BE DRAWN IN FAVOR OF THE BANK IN THE AMOUNT AUTHORIZED BY LAW, THE BALANCE DUE UNDER THE INVOLVED ADJUSTED SERVICE CERTIFICATE TO BE PAID THE VETERAN AS PROVIDED BY THE ADJUSTED COMPENSATION ACT, 1936.

ACTING COMPTROLLER GENERAL ELLIOTT TO THE ADMINISTRATOR OF VETERANS' AFFAIRS, JANUARY 4, 1937:

THERE HAS BEEN RECEIVED YOUR LETTER OF DECEMBER 18, 1936, WITH ENCLOSURES REFERRING TO OFFICE LETTER OF SEPTEMBER 17, 1936, RELATIVE TO THE CASE OF CARVIN C. MASSEY, A-1110215, AND REQUESTING TO BE ADVISED WHETHER IN VIEW OF THE EVIDENCE NOW SUBMITTED THE SUM OF $401.20,"THE AMOUNT OF THE JUDGMENT, MAY BE CONSIDERED A VALID LIEN AGAINST THE VETERAN'S ADJUSTED SERVICE CERTIFICATE AND WHETHER, THEREFORE, A VOUCHER FOR THAT AMOUNT MAY BE DRAWN IN FAVOR OF THE BANK AND SETTLEMENT MADE WITH THE VETERAN FOR THE BALANCE OF THE CERTIFICATE AS PROVIDED BY THE ADJUSTED COMPENSATION PAYMENT ACT, 1936.'

THE EVIDENCE SUBMITTED WITH YOUR LETTER OF SEPTEMBER 17, 1936, INCLUDES (1) AN AFFIDAVIT EXECUTED ON DECEMBER 20, 1933, BY R. E. GOODNIGHT; (2) COPY OF THE BILL OF COMPLAINT FILED ON NOVEMBER 23, 1933, WITH THE CLERK OF THE DISTRICT COURT OF CHEYENNE COUNTY, COLO., IN THE CASE (NO. 1387) OF CHEYENNE STATE BANK AND GRANT MCFERSON, AS STATE BANK COMMISSIONER AND LIQUIDATOR OF SAID BANK, PLAINTIFF, V. CARVIN C. MASSEY, DEFENDANT; (3) THE ANSWER FILED BY THE DEFENDANT ON APRIL 24, 1934, IN THE ABOVE-ENTITLED CAUSE OF ACTION, AND (4) CERTIFICATE OF THE CLERK OF THE DISTRICT COURT OF CHEYENNE COUNTY, COLO., CERTIFYING THAT THE COPIES OF COMPLAINT AND ANSWER REFERRED TO ABOVE ARE TRUE AND CORRECT COPIES, AND THAT THE JUDGMENT OF THE JURY FOR THE PLAINTIFF IN SAID CAUSE OF ACTION WAS ENTERED ON SEPTEMBER 25, 1935.

IN THE AFFIDAVIT OF DECEMBER 20, 1933, IT IS STATED IN SUBSTANCE THAT DURING THE MONTH OF JANUARY 1931 THE SUBJECT VETERAN WAS EMPLOYED BY THE AFFIANT AS A BARBER; THAT SOMETIME DURING THAT MONTH THE VETERAN INFORMED AFFIANT THAT HE WAS BORROWING $295 ON HIS ADJUSTED SERVICE CERTIFICATE FROM THE CHEYENNE COUNTY STATE BANK OF CHEYENNE WELLS, COLO.; THAT A FEW DAYS LATER THE VETERAN RECEIVED FROM THE VETERANS' BUREAU THE NOTE FOR $295 HE EXECUTED IN FAVOR OF THE BANK; THAT HE SHOWED THE NOTE TO THE AFFIANT AND STATED THAT IT HAD BEEN SENT TO HIM INSTEAD OF THE BANK AND THAT HE WAS GOING TO "BEAT" THE BANK OUT OF $295; THAT ON THE SAME DAY THE NOTE WAS RECEIVED THE VETERAN DREW A CHECK FOR APPROXIMATELY $300 WHICH HE STATED WOULD CLOSE HIS ACCOUNT WITH SUBJECT BANK, AND THAT UPON REQUEST BY THE VETERAN THE AFFIANT CASHED SAID CHECK AND TURNED THE PROCEEDS OVER TO THE VETERAN. IT IS STATED FURTHER IN THE AFFIDAVIT THAT THEREAFTER WHEN OFFICERS OF THE BANK CALLED ON THE VETERAN TO COLLECT THE $295, THE VETERAN INFORMED THEM THAT WHEN HE RECEIVED THE NOTE FROM WASHINGTON HE WOULD PAY THEM; THAT HE DENIED HAVING RECEIVED THE NOTE AND STATED HE WAS AFRAID OF BEING REQUIRED TO PAY THE AMOUNT OF THE LOAN TWICE IF HE PAID THE BANK WITHOUT RECEIVING THE NOTE; AND THAT AFTER THE OFFICERS OF THE BANK LEFT THE BARBER SHOP THE VETERAN WOULD SAY "THEY THINK THEY ARE SO DAMN SMART, JUST WATCH THEM COLLECT IT," AND THAT THE VETERAN WOULD THEN LAUGH ABOUT IT AND SAY "I HAVE THE NOTE.'

IN THE BILL OF COMPLAINT REFERRED TO ABOVE, IT IS STATED AS FOLLOWS:

COMES NOW THE PLAINTIFF ABOVE NAMED AND FOR CAUSE OF ACTION AGAINST THE DEFENDANT, ALLEGES:

1. THAT GRANT MCFERSON IS THE DULY APPOINTED, QUALIFIED, AND ACTING STATE BANK COMMISSIONER OF COLORADO.

2. THAT W. B. SPRINGER IS THE DULY APPOINTED, QUALIFIED, AND ACTING SPECIAL DEPUTY STATE BANK COMMISSIONER IN IMMEDIATE CHARGE OF THE LIQUIDATION OF THE CHEYENNE COUNTY STATE BANK.

3. THAT THE CHEYENNE COUNTY STATE BANK IS A CORPORATION ORGANIZED AND EXISTING UNDER AND BY VIRTUE OF THE LAWS OF THE STATE OF COLORADO AND ON OR ABOUT THE 9TH DAY OF JANUARY 1933, PLACED ITS ASSETS AND AFFAIRS IN THE HANDS OF THE STATE BANK COMMISSIONER OF COLORADO FOR THE LIQUIDATION THEREOF, AND SINCE SAID DATE THE SAID BANK COMMISSIONER HAS BEEN AND NOW IS IN CHARGE OF THE ASSETS AND AFFAIRS OF SAID BANK FOR THE PURPOSE OF LIQUIDATING THE SAME.

4. THAT ON JANUARY 9TH A.D. 1931 THE DEFENDANT CARVIN C. MASSEY REQUESTED OF PLAINTIFF THAT IT ASSIST HIM IN OBTAINING A LOAN ON HIS ADJUSTED SERVICE CERTIFICATE NO. 640334 WHEREUPON THE CASHIER OF PLAINTIFF BANK PREPARED A NOTE FOR DEFENDANT'S SIGNATURE FOR SAID AMOUNT OF $295.00, MADE PAYABLE TO THE VETERANS' BUREAU, DRAWN ON THEIR USUAL FORM NOTE. THAT DEFENDANT THEREUPON REQUESTED OF PLAINTIFF THAT IT ADVANCE AND LOAN HIM SAID SUM OF $295.00 PENDING THE CLEARING OF HIS SAID NOTE THROUGH THE USUAL CHANNELS.

5.THAT ON SAID, THE 9TH DAY OF JANUARY A.D. 1931, AT CHEYENNE WELLS, COLORADO, THE PLAINTIFF, SAID CHEYENNE COUNTY STATE BANK, FOR DEFENDANT'S ACCOMMODATION, AS AFORESAID, AND AT HIS REQUEST, LOANED AND ADVANCED TO SAID DEFENDANT, CARVIN C. MASSEY, THE SUM OF TWO HUNDRED NINETY FIVE ($295.00) DOLLARS.

6. THAT PLAINTIFF ON OR ABOUT FEBRUARY 1ST, 1931, AND ON NUMEROUS OCCASIONS SINCE SAID TIME HAS DEMANDED PAYMENT OF SAID AMOUNT, BUT THE DEFENDANT HAS NOT PAID THE SAME NOR ANY PART THEREOF.

WHEREFORE PLAINTIFF DEMANDS JUDGMENT AGAINST DEFENDANT FOR THE SUM OF $295.00 WITH INTEREST THEREON FROM JANUARY 9TH, 1931, TO DATE OF JUDGMENT AND FOR THE COSTS OF THIS ACTION.

IN THE ANSWER FILED TO THE BILL OF COMPLAINT, IT IS RECITED AS FOLLOWS:

COMES NOW THE ABOVE NAMED DEFENDANT AND IN ANSWER TO THE COMPLAINT ALLEGES AS FOLLOWS, TO-WIT:

1. DEFENDANT ADMITS THE ALLEGATIONS CONTAINED IN PARAGRAPHS ONE, TWO, AND THREE OF SAID COMPLAINT.

2. DEFENDANT DENIES EACH AND EVERY ALLEGATION IN PARAGRAPH FOUR OF SAID COMPLAINT CONTAINED.

3. DEFENDANT DENIES EACH AND EVERY ALLEGATION IN PARAGRAPH FIVE OF SAID COMPLAINT CONTAINED.

4. DEFENDANT DENIES EACH AND EVERY ALLEGATION IN PARAGRAPH SIX OF SAID COMPLAINT CONTAINED.

5. DEFENDANT DENIES EACH AND EVERY ALLEGATION HEREIN NOT HERETOFORE EXPRESSLY ADMITTED, DENIED, OR QUALIFIED.

6. DEFENDANT STATES THAT SAID COMPLAINT DOES NOT STATE FACTS SUFFICIENT TO CONSTITUTE A CAUSE OF ACTION AGAINST THIS DEFENDANT.

FROM THE EVIDENCE PREVIOUSLY SUBMITTED IN THIS CASE, IT APPEARS THAT ON SEPTEMBER 20, 1935, THE JURY IN THE SUBJECT CAUSE OF ACTION RENDERED A JUDGMENT AS FOLLOWS:

WE THE JURY, DULY EMPANELLED AND SWORN IN THE ABOVE ENTITLED CAUSE, DO UPON OUR OATHS, FIND THE ISSUES HEREIN JOINED IN FAVOR OF THE PLAINTIFF AND AGAINST THE DEFENDANT AND ASSESS THE DAMAGE IN THE SUM OF $401.20.

(SIGNED) E. L. HARKER, FOREMAN.

AND THEREUPON IT IS ORDERED BY THE COURT THAT JUDGMENT BE ENTERED HEREIN IN FAVOR OF SAID PLAINTIFF IN THE SUM OF $401.20 AND LET THE SAME BE RECORDED IN THE JUDGMENT BOOK.

SINCE THE JUDGMENT RENDERED IN THIS CASE WAS AGAINST THE VETERAN, IT DOES NOT CONSTITUTE A BINDING OBLIGATION ON THE UNITED STATES, THE GOVERNMENT NOT BEING A PARTY TO THE LOCAL COURT ACTION. HOWEVER, SAID JUDGMENT IS EVIDENCE OF THE LOAN BY THE BANK TO VETERAN SECURED BY THE VETERAN'S ADJUSTED-SERVICE CERTIFICATE AS AUTHORIZED BY LAW, AND, WITH THE EVIDENCE NOW OF RECORD AND IN THE CIRCUMSTANCES APPEARING, THIS OFFICE WILL INTERPOSE NO OBJECTION TO THE EXECUTION OF A VOUCHER IN THE AMOUNT AUTHORIZED BY LAW IN FAVOR OF THE BANK, IN CARE OF ITS AUTHORIZED REPRESENTATIVE, AND SETTLEMENT WITH THE VETERAN FOR THE BALANCE DUE UNDER HIS ADJUSTED-SERVICE CERTIFICATE AS PROVIDED BY THE ADJUSTED COMPENSATION ACT, 1936.