A-45473, OCTOBER 17, 1935, 15 COMP. GEN. 304

A-45473: Oct 17, 1935

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GENERAL ACCOUNTING OFFICE - JURISDICTION - CLAIMS IN FAVOR OF THE UNITED STATES CLAIMS IN FAVOR OF THE UNITED STATES ARISING IN THE VARIOUS DEPARTMENTS AND ESTABLISHMENTS OF THE GOVERNMENT ARE FOR REPORTING TO THE GENERAL ACCOUNTING OFFICE AND ARE FOR SETTLEMENT AND ADJUSTMENT BY THAT OFFICE AS REQUIRED BY SECTION 305 OF THE BUDGET AND ACCOUNTING ACT OF JUNE 10. 1935: THIS OFFICE IS IN RECEIPT OF A LETTER DATED AUGUST 21. AS FOLLOWS: WILL YOU KINDLY FURNISH THIS OFFICE FOR USE IN CONNECTION WITH THE REPORTS WHICH IT IS REQUESTED TO MAKE TO THE BUREAU OF INTERNAL REVENUE A STATEMENT AS TO WHETHER ANY INDEBTEDNESS OR CLAIM AROSE ON THE PART OF THE GOVERNMENT AGAINST THE NATIONAL SURETY COMPANY.

A-45473, OCTOBER 17, 1935, 15 COMP. GEN. 304

GENERAL ACCOUNTING OFFICE - JURISDICTION - CLAIMS IN FAVOR OF THE UNITED STATES CLAIMS IN FAVOR OF THE UNITED STATES ARISING IN THE VARIOUS DEPARTMENTS AND ESTABLISHMENTS OF THE GOVERNMENT ARE FOR REPORTING TO THE GENERAL ACCOUNTING OFFICE AND ARE FOR SETTLEMENT AND ADJUSTMENT BY THAT OFFICE AS REQUIRED BY SECTION 305 OF THE BUDGET AND ACCOUNTING ACT OF JUNE 10, 1921, 42 STAT. 24.

ACTING COMPTROLLER GENERAL ELLIOTT TO THE POSTMASTER GENERAL, OCTOBER 17, 1935:

THIS OFFICE IS IN RECEIPT OF A LETTER DATED AUGUST 21, 1935, FROM THE SOLICITOR, POST OFFICE DEPARTMENT, AS FOLLOWS:

WILL YOU KINDLY FURNISH THIS OFFICE FOR USE IN CONNECTION WITH THE REPORTS WHICH IT IS REQUESTED TO MAKE TO THE BUREAU OF INTERNAL REVENUE A STATEMENT AS TO WHETHER ANY INDEBTEDNESS OR CLAIM AROSE ON THE PART OF THE GOVERNMENT AGAINST THE NATIONAL SURETY COMPANY, NEW YORK, N.Y., ON ACCOUNT OF THE BROOKLYN AND QUEENS SCREEN MANUFACTURING COMPANY'S CONTRACT TISA 3050, DATED MARCH 30, 1932, FOR THE CONSTRUCTION OF THE POST OFFICE AT HEMPSTEAD, NEW YORK. THE NATIONAL SURETY COMPANY'S BOND IS NUMBERED 5221005.

IT IS MY UNDERSTANDING THAT A SETTLEMENT WAS MADE FEBRUARY 12, 1934, WHICH RESULTED IN PAYMENTS TO BOTH THE CONTRACTOR AND THE SURETY COMPANY.

PLEASE FURNISH ME FULL DETAILS OF THIS SETTLEMENT, AS WELL AS INFORMATION ABOVE REQUESTED AS TO WHETHER ANY OTHER CLAIMS HAVE ARISEN OR ARE LIKELY TO ARISE OUT OF THE AFORESAID CONTRACT.

AS YOU KNOW, ALL CLAIMS FOR AND AGAINST THE UNITED STATES ARE REQUIRED TO BE SETTLED AND ADJUSTED IN THIS OFFICE. SEE SECTION 305 OF THE BUDGET AND ACCOUNTING ACT OF JUNE 10, 1921, 42 STAT. 24. THERE IS AN ESTABLISHED PROCEDURE FOR THE SETTLEMENT IN THIS OFFICE OF CLAIMS IN FAVOR OF THE UNITED STATES AND FOR THE PREPARATION AND TRANSMITTAL TO THE DEPARTMENT OF JUSTICE OF TRANSCRIPTS FOR JUDICIAL PROCEEDINGS WHERE THE DEBTOR FAILS OR REFUSES TO PAY ANY BALANCE CERTIFIED TO BE DUE THE GOVERNMENT. SEE 7 COMP. GEN. 193, 194, AND LETTER DATED FEBRUARY 7, 1931, FROM THE ATTORNEY GENERAL OF THE UNITED STATES TO THE HEADS OF VARIOUS DEPARTMENTS AND INDEPENDENT ESTABLISHMENTS. ALSO, SUCH PROCEDURE IN REPORTING CLAIMS ARISING IN THE VARIOUS DEPARTMENTS AND ESTABLISHMENTS OF THE GOVERNMENT AGAINST DEBTORS ENABLES THE MAKING OF A CENTRAL DEBT RECORD IN THIS OFFICE AGAINST WHICH ALL CLAIMS AGAINST THE GOVERNMENT ARE CLEARED BEFORE ALLOWANCES ARE MADE, AND IN THAT MANNER MANY DEBTS ARE COLLECTED THROUGH SET-OFF, OR RATHER CONSIDERING DEBITS AS WELL AS CREDITS IN THE SETTLEMENT OF THE ACCOUNT, WITHOUT THE NECESSITY OF INCURRING THE EXPENSE OF JUDICIAL PROCEEDINGS. SEE BARRY V. UNITED STATES, 229 U.S. 47, AND TAGGART V. UNITED STATES, 17 CT.CLS. 322.

IN THE PARTICULAR CASE MENTIONED BY THE SOLICITOR OF THE POST OFFICE DEPARTMENT IN HIS ABOVE-QUOTED LETTER OF AUGUST 21, 1935, THE SAID CONTRACT T1SA-3050, DATED MARCH 30, 1932, BETWEEN THE UNITED STATES AND THE BROOKLYN AND QUEENS SCREEN MANUFACTURING CO., INC., WITH THE NATIONAL SURETY CO. OF NEW YORK AS SURETY, WAS A TREASURY DEPARTMENT CONTRACT FOR THE CONSTRUCTION OF A POST OFFICE BUILDING AT HEMPSTEAD, N.Y. NEITHER THE EXECUTION NOR THE PERFORMANCE OF SAID CONTRACT WAS UNDER THE SUPERVISION OF THE POST OFFICE DEPARTMENT, BUT THE CHIEF CLERK OF THIS OFFICE, IN LETTER OF JULY 1, 1935, FORWARDED TO THE SOLICITOR A COPY OF THE CONTRACT AS REQUESTED IN HIS LETTERS OF MAY 23 AND JUNE 12, 1935.

THIS OFFICE HAS A REGULARLY ESTABLISHED PROCEDURE NOT ONLY FOR THE SETTLEMENT OF CLAIMS FOR AND AGAINST THE UNITED STATES AND THE COLLECTION OF BALANCES CERTIFIED TO BE DUE THE GOVERNMENT BUT IN REPORTING TO THE BUREAU OF INTERNAL REVENUE IN RESPONSE TO ITS REQUEST ANY BALANCES WHICH MAY BE DUE THE GOVERNMENT FROM CORPORATIONS REPORTED BY SAID BUREAU AS HAVING FILED PETITIONS FOR REORGANIZATION UNDER THE PROVISIONS OF THE BANKRUPTCY ACT AS AMENDED. NO BALANCE WAS REPORTED IN THIS CASE FOR THE REASON THAT THE RECORDS INDICATE THAT THERE IS A BALANCE DUE FROM THE GOVERNMENT UNDER THE CONTRACT OF MARCH 30, 1932, WHICH HAS BEEN WITHHELD BECAUSE OF OTHER ITEMS OF INDEBTEDNESS TO THE GOVERNMENT.