A-60743, APRIL 11, 1935, 14 COMP. GEN. 758

A-60743: Apr 11, 1935

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BONDS - DISPOSITION OF PROCEEDS WHEN FORFEITED - IMMIGRATION AND NATURALIZATION SERVICE WHEN LIBERTY BONDS DEPOSITED AS SECURITY BY ALIENS ADMITTED TO THIS COUNTRY UNDER BOND ARE FORFEITED. WAS ADMITTED TO THE UNITED STATES UPON THE FILING OF A PUBLIC CHARGE BOND IN THE SUM OF $500. A NEW PUBLIC CHARGE BOND WAS EXECUTED ON JUNE 30. THE CONDITIONS OF THIS OBLIGATION ARE SUCH THAT (1) IF THE ABOVE-BOUNDEN OBLIGORS SHALL. IN CASE THE SAID ALIEN IS ADMITTED INTO THE UNITED STATES. A COPY OF THE PUBLIC CHARGE BOND AND POWER OF ATTORNEY ARE INCLOSED FOR YOUR INFORMATION. WAS COMMITTED TO THE BROOKLYN STATE HOSPITAL. EXPENSES IN THE AMOUNT OF $250 WERE INCURRED BY THE STATE OF NEW YORK ON ACCOUNT OF THE ALIEN'S HOSPITALIZATION IN THE BROOKLYN STATE HOSPITAL.

A-60743, APRIL 11, 1935, 14 COMP. GEN. 758

BONDS - DISPOSITION OF PROCEEDS WHEN FORFEITED - IMMIGRATION AND NATURALIZATION SERVICE WHEN LIBERTY BONDS DEPOSITED AS SECURITY BY ALIENS ADMITTED TO THIS COUNTRY UNDER BOND ARE FORFEITED, THEY SHOULD BE CONVERTED INTO CASH AND DEPOSITED TO THE CREDIT OF A SPECIAL FUND AND ANY CLAIMS AGAINST THE SAME, SUCH AS A CLAIM BY THE STATE FOR HOSPITALIZATION OF THE ALIEN, SHOULD BE SUBMITTED TO THE GENERAL ACCOUNTING OFFICE FOR DIRECT SETTLEMENT.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF LABOR, APRIL 11, 1935:

THERE HAS BEEN RECEIVED YOUR LETTER OF MARCH 4, 1935, AS FOLLOWS:

ON JULY 8, 1930, MICHAEL STYLIANOU, AN ALIEN, WAS ADMITTED TO THE UNITED STATES UPON THE FILING OF A PUBLIC CHARGE BOND IN THE SUM OF $500, AS AUTHORIZED BY SECTION 21 OF THE IMMIGRATION ACT OF FEBRUARY 5, 1917 (39 STAT. 874). BECAUSE OF THE DESIRE OF THE ALIEN TO SUBSTITUTE LIBERTY BONDS FOR TREASURY NOTES AS COLLATERAL, A NEW PUBLIC CHARGE BOND WAS EXECUTED ON JUNE 30, 1933. THE BOND PROVIDES, IN PART, AS FOLLOWS:

"NOW, THEREFORE, THE CONDITIONS OF THIS OBLIGATION ARE SUCH THAT (1) IF THE ABOVE-BOUNDEN OBLIGORS SHALL, IN CASE THE SAID ALIEN IS ADMITTED INTO THE UNITED STATES, JOINTLY AND SEVERALLY, WELL AND TRULY, AS LONG AS THE SAID ALIEN REMAINS IN THE UNITED STATES, SAVE HARMLESS THE UNITED STATES, AND EVERY STATE, TERRITORY, COUNTY, TOWN, MUNICIPALITY, AND DISTRICT THEREOF, AND EVERY INSTITUTION SUPPORTED IN WHOLE OR IN PART BY PUBLIC FUNDS (FEDERAL, STATE, TERRITORIAL, COUNTY, TOWN, OR MUNICIPAL) AGAINST SAID ALIEN BECOMING A PUBLIC CHARGE, AND FROM ANY AND ALL CHARGES OR EXPENSES ARISING THEREFROM WHATSOEVER, THE CAUSE MAY BE AND WHETHER IT ARISES PRIOR TO OR SUBSEQUENT TO ARRIVAL IN THE UNITED STATES; * * *.'

THE ALIEN DEPOSITED FOURTH LIBERTY LOAN BONDS IN THE SUM OF $500 AS SECURITY ON THE PUBLIC CHARGE BOND, GIVING THE SECRETARY OF LABOR A POWER OF ATTORNEY TO SELL, ASSIGN, OR TRANSFER SAID BONDS OR ANY PART THEREOF WITHOUT NOTICE AT PUBLIC OR PRIVATE SALE IN CASE OF ANY DEFAULT IN THE PERFORMANCE OF ANY OF THE CONDITIONS OR STIPULATIONS IN THE PUBLIC CHARGE BOND. A COPY OF THE PUBLIC CHARGE BOND AND POWER OF ATTORNEY ARE INCLOSED FOR YOUR INFORMATION.

THE ALIEN BECAME INSANE AND ON OCTOBER 14, 1933, WAS COMMITTED TO THE BROOKLYN STATE HOSPITAL, BROOKLYN, NEW YORK, AN INSTITUTION SUPPORTED WHOLLY BY STATE FUNDS, WHERE HE REMAINED UNTIL HIS DEPORTATION ON FEBRUARY 17, 1934. EXPENSES IN THE AMOUNT OF $250 WERE INCURRED BY THE STATE OF NEW YORK ON ACCOUNT OF THE ALIEN'S HOSPITALIZATION IN THE BROOKLYN STATE HOSPITAL. THE ALIEN WAS DEPORTED AT THE EXPENSE OF THE STEAMSHIP COMPANY BRINGING HIM TO THE UNITED STATES AND THE ONLY EXPENSES INCURRED BY THE IMMIGRATION AND NATURALIZATION SERVICE IN CONNECTION WITH HIS DEPORTATION WERE TAXI AND STREET CAR FARES IN THE AMOUNT OF $5.40.

ON APRIL 11, 1934, THIS DEPARTMENT DECLARED THE PUBLIC CHARGE BOND BREACHED AND THE PENALTY FORFEITED. THE FOURTH LIBERTY LOAN BONDS IN THE SUM OF $500 WHICH WERE POSTED AS COLLATERAL ARE ON DEPOSIT IN THIS DEPARTMENT.

YOUR DECISION IS REQUESTED AS TO THE PROPER PROCEDURE TO BE FOLLOWED IN REIMBURSING THE STATE OF NEW YORK FOR THE EXPENSES INCURRED ON BEHALF OF THE ALIEN WHILE HE WAS A PATIENT IN THE BROOKLYN STATE HOSPITAL.

SECTION 21 OF THE ACT OF FEBRUARY 5, 1917, 39 STAT. 891, PROVIDES:

THAT ANY ALIEN LIABLE TO BE EXCLUDED BECAUSE LIKELY TO BECOME A PUBLIC CHARGE OR BECAUSE OF PHYSICAL DISABILITY OTHER THAN TUBERCULOSIS IN ANY FORM OR A LOATHSOME OR DANGEROUS CONTAGIOUS DISEASE MAY, IF OTHERWISE ADMISSIBLE, NEVERTHELESS BE ADMITTED IN THE DISCRETION OF THE SECRETARY OF LABOR UPON THE GIVING OF A SUITABLE AND PROPER BOND OR UNDERTAKING, APPROVED BY SAID SECRETARY IN SUCH AMOUNT AND CONTAINING SUCH CONDITIONS AS HE MAY PRESCRIBE TO THE UNITED STATES AND TO ALL STATES, TERRITORIES, COUNTIES, TOWNS, MUNICIPALITIES, AND DISTRICTS THEREOF, HOLDING THE UNITED STATES AND ALL STATES, TERRITORIES, COUNTIES, TOWNS, MUNICIPALITIES, AND DISTRICTS THERETO HARMLESS AGAINST SUCH ALIEN BECOMING A PUBLIC CHARGE. IN LIEU OF SUCH BOND, SUCH ALIEN MAY DEPOSIT IN CASH WITH THE SECRETARY OF LABOR SUCH AMOUNT AS THE SECRETARY OF LABOR MAY REQUIRE, WHICH AMOUNT SHALL BE DEPOSITED BY SAID SECRETARY IN THE UNITED STATES POSTAL SAVINGS BANK, A RECEIPT THEREFOR TO BE GIVEN THE PERSON FURNISHING SAID SUM, SHOWING THE FACT AND OBJECT OF ITS RECEIPT AND SUCH OTHER INFORMATION AS SAID SECRETARY MAY DEEM ADVISABLE. ALL ACCRUING INTEREST ON SAID DEPOSIT DURING THE TIME SAME SHALL BE HELD IN THE UNITED STATES POSTAL SAVINGS BANK SHALL BE PAID TO THE PERSON FURNISHING THE SUM FOR DEPOSIT. IN THE EVENT OF SUCH ALIEN BECOMING A PUBLIC CHARGE, THE SECRETARY OF LABOR SHALL DISPOSE OF SAID DEPOSIT IN THE SAME MANNER AS IF SAME HAD BEEN COLLECTED UNDER A BOND AS PROVIDED IN THIS SECTION. IN THE EVENT OF THE PERMANENT DEPARTURE FROM THE UNITED STATES, THE NATURALIZATION, OR DEATH OF SUCH ALIEN, THE SAID SUM SHALL BE RETURNED TO THE PERSON BY WHOM FURNISHED, OR HIS LEGAL REPRESENTATIVES. THE ADMISSION OF SUCH ALIEN SHALL BE A CONSIDERATION FOR THE GIVING OF SUCH BOND, UNDERTAKING, OR CASH DEPOSIT. SUIT MAY BE BROUGHT THEREON IN THE NAME AND BY THE PROPER LAW OFFICERS EITHER OF THE UNITED STATES GOVERNMENT OR OF ANY STATE, TERRITORY, DISTRICT, COUNTY, TOWN, OR MUNICIPALITY IN WHICH SUCH ALIEN BECOMES A PUBLIC CHARGE.

THE $500 IN LIBERTY BONDS WERE DEPOSITED AS A BOND PURSUANT TO THE ABOVE QUOTED STATUTE, TO ,SAVE HARMLESS THE UNITED STATES, AND EVERY STATE, TERRITORY, COUNTY, TOWN, MUNICIPALITY, AND DISTRICT THEREOF, AND EVERY INSTITUTION SUPPORTED IN WHOLE OR IN PART BY PUBLIC FUNDS (FEDERAL, STATE, TERRITORIAL, COUNTY, TOWN, OR MUNICIPAL) AGAINST SAID ALIEN BECOMING A PUBLIC CHARGE AND FROM ANY AND ALL CHARGES OR EXPENSES ARISING THEREFROM.' THE BOND IS ACCOMPANIED BY A POWER OF ATTORNEY AUTHORIZING THE SECRETARY OF LABOR TO SELL THE LIBERTY BONDS "AND TO APPLY THE PROCEEDS OF SUCH SALE OR COLLECTION, IN WHOLE OR IN PART, TO THE SATISFACTION OF ANY DAMAGES, DEMANDS, OR DEFICIENCY ARISING BY REASON OF SUCH DEFAULT.'

UNDER THE CIRCUMSTANCES THE FORFEITED LIBERTY BONDS SHOULD BE CONVERTED INTO CASH AND THE PROCEEDS DEPOSITED TO THE CREDIT OF A SPECIAL FUND. THE CLAIM OF THE STATE OF NEW YORK AND ANY OTHER CLAIMS AGAINST THE FUND SHOULD BE SUBMITTED TO THIS OFFICE FOR SETTLEMENT, TOGETHER WITH ADMINISTRATIVE RECOMMENDATION FOR DISPOSITION OF THE BALANCE OF THE FUND, IF ANY.