A-64992, NOVEMBER 18, 1935, 15 COMP. GEN. 419

A-64992: Nov 18, 1935

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HAVE BEEN PAID THE CONTRACTORS. THE CONTRACTS ARE REGULAR AS TO FORM AND EXECUTION. ARE IN CONFORMITY WITH THE REGULATIONS. THERE IS NO AUTHORITY FOR THE PAYMENT OF ADDITIONAL AMOUNTS TO PERSONS ALLEGING TO HAVE BEEN ENTITLED TO A PORTION OF SAID PAYMENTS AS TENANTS OR SHARECROPPERS. AS FOLLOWS: YOUR OPINION AS TO THE PROPRIETY OF THE PROPOSED ACTION UPON THE FOLLOWING STATE OF FACTS IS RESPECTFULLY REQUESTED: UNDER 1933 COTTON-ACREAGE ADJUSTMENT CONTRACT 74-128-32. NOR WAS THE CONSENT PROVISION UNDER PARAGRAPH 12 SIGNED. THIS OFFER WAS APPROVED ON JUNE 30. THE CERTIFICATE OF PERFORMANCE WAS SIGNED BY THE PRODUCER ON AUGUST 16. IN THE AMOUNT OF $440.00 WAS ISSUED TO FANNIE L. WAS ISSUED TO THE PRODUCER.

A-64992, NOVEMBER 18, 1935, 15 COMP. GEN. 419

COTTON ACREAGE ADJUSTMENT CONTRACTS - AGRICULTURAL ADJUSTMENT ADMINISTRATION WHERE ALL PAYMENTS ACCRUING UNDER COTTON ACREAGE ADJUSTMENT CONTRACTS AUTHORIZED BY SECTION 8 (1) OF THE AGRICULTURAL ADJUSTMENT ACT OF MAY 12, 1933 (48 STAT. 34), HAVE BEEN PAID THE CONTRACTORS, AND THE CONTRACTS ARE REGULAR AS TO FORM AND EXECUTION, AND ARE IN CONFORMITY WITH THE REGULATIONS, THERE IS NO AUTHORITY FOR THE PAYMENT OF ADDITIONAL AMOUNTS TO PERSONS ALLEGING TO HAVE BEEN ENTITLED TO A PORTION OF SAID PAYMENTS AS TENANTS OR SHARECROPPERS.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF AGRICULTURE, NOVEMBER 18, 1935:

THERE HAS BEEN CONSIDERED YOUR LETTER OF AUGUST 24, 1935, WITH ENCLOSURES, AS FOLLOWS:

YOUR OPINION AS TO THE PROPRIETY OF THE PROPOSED ACTION UPON THE FOLLOWING STATE OF FACTS IS RESPECTFULLY REQUESTED:

UNDER 1933 COTTON-ACREAGE ADJUSTMENT CONTRACT 74-128-32, FANNIE L. KETCHUM, R.F.D. 2, BOX 106, FALLS CITY, TEX., ENTERED INTO A CONTRACT WITH THE SECRETARY OF AGRICULTURE WHEREIN SHE AGREED TO PLOW UP 40 ACRES OF COTTON, HAVING AN ESTIMATED YIELD OF 225 POUNDS OF LINT COTTON PER ACRE.

UNDER PARAGRAPH 3 OF THE OFFER, SHE DID NOT INDICATE ANY LIENORS OR INTERESTED PARTIES, NOR WAS THE CONSENT PROVISION UNDER PARAGRAPH 12 SIGNED. THIS OFFER WAS APPROVED ON JUNE 30, 1933, FOR A CASH PAYMENT OF $440.00 AND AN OPTION ON 18,000 BALES. THE CERTIFICATE OF PERFORMANCE WAS SIGNED BY THE PRODUCER ON AUGUST 16, 1933, AND APPROVED BY THE LOCAL AND COUNTY COMMITTEES ON AUGUST 23, 1933. THE CASH PAYMENT CHECK NO. 782523, DATED SEPTEMBER 21, 1933, IN THE AMOUNT OF $440.00 WAS ISSUED TO FANNIE L. KETCHUM SOLELY. THE PRODUCER ELECTED TO ENTER THE COTTON POOL, AND A CHECK FOR $360.00, REPRESENTING THE INITIAL 4 CENTS ADVANCE TOGETHER WITH THE PARTICIPATION TRUST CERTIFICATE, WAS ISSUED TO THE PRODUCER. SUBSEQUENTLY, CHECK IN THE SUM OF $136.80, REPRESENTING THE 2 CENTS PER POUND ADDITIONAL ADVANCE, WAS ISSUED TO THE PRODUCER.

UNDER CONTRACT 74-128-194, THE PRODUCER, B. F. GARNER, R.F.D. NO. 2, BOX 106, FALLS CITY, TEX., ENTERED INTO A CONTRACT WITH THE SECRETARY OF AGRICULTURE WHEREIN HE AGREED TO PLOW UP 70 ACRES OF COTTON HAVING AN ESTIMATED YIELD OF 225 POUNDS OF LINT COTTON PER ACRE.

UNDER PARAGRAPH 3 OF THE OFFER HE INDICATED FLORESVILLE NATIONAL FARM LOAN ASSOCIATION AS LIENOR. UNDER PARAGRAPH 12, THE FLORESVILLE NATIONAL FARM LOAN ASSOCIATION BY ITS SECRETARY-TREASURER, WAIVED ITS INTEREST UNDER THIS CONTRACT AND AUTHORIZED THE SECRETARY TO DEAL WITH THE PRODUCER AS IF HE WERE THE SOLE PARTY HAVING ANY INTEREST IN SAID LAND OR COTTON CROP, PROVIDED "CHECKS FOR CASH BENEFITS TO BE PAID JOINTLY TO PRODUCER AND UNDERSIGNED LIENHOLDERS.' NO OTHER INTERESTED PARTIES WERE SHOWN. THE OFFER WAS APPROVED ON JUNE 27, 1933, FOR A CASH PAYMENT OF $770.00 AND AN OPTION ON 31,500 BALES. THE CERTIFICATE OF PERFORMANCE WAS SIGNED BY THE PRODUCER ON AUGUST 26, 1933, AND THE LOCAL COMMITTEE ON THE SAME DATE AND THE COUNTY COMMITTEE ON SEPTEMBER 7, 1933. THE CASH PAYMENT CHECK NO. 1,387,820 DATED OCTOBER 13, 1933, FOR $770.00 WAS ISSUED JOINTLY TO B. F. GARNER AND FLORESVILLE NATIONAL FARM LOAN ASSOCIATION. THE PRODUCER ELECTED TO ENTER THE COTTON POOL, AND A CHECK IN THE SUM OF $630.00 REPRESENTING THE 4 CENTS ADVANCE WAS ISSUED TO THE PRODUCER SOLELY, AS WAS THE PARTICIPATION TRUST CERTIFICATE. SUBSEQUENTLY, THE CHECK FOR $239.40, REPRESENTING THE 2 CENTS ADDITIONAL ADVANCE WAS ISSUED TO THE PRODUCER SOLELY.

THESE TWO CONTRACTS WILL BE CONSIDERED TOGETHER, SINCE IT IS DISCLOSED BY THE FILES THAT GARNER WAS MRS. KETCHUM'S SON, AND THAT HE HAD HANDLED HER CONTRACT FOR HIM.

OUR ATTENTION WAS FIRST CALLED TO AN ALLEGED VIOLATION OF THE ABOVE TWO CONTRACTS BY A LETTER DATED NOVEMBER 17, 1933, FROM A. W. DENMARK, AN ATTORNEY OF STOCKDALE, TEX., REPRESENTING SIMON SANCHEZ AND FRANCISCO NARANJO, WHO WERE SHOWN TO BE SHARE-TENANTS ON THE FARMS OF ABOVE PRODUCERS. THE COMPLAINANTS' ATTORNEY ADVISED US THAT HE HAD INTERVIEWED THE PRODUCER, MR. GARNER, WHO ADMITTED THAT THE COMPLAINANT SIMON SANCHEZ HAD A ONE-HALF INTEREST IN THE 70 ACRES PLOWED UP UNDER HIS CONTRACT, BUT CONTENDED THAT THE LANDLORD HAD BOUGHT OUT THIS INTEREST AT $11.00 AN ACRE; THAT HE HAD ALREADY PAID $35.00 TO THE COMPLAINANT AND WAS CHARGING AN ADDITIONAL SUM OF $128.00 FOR "PICKING THE DESTROYED COTTON," THUS LEAVING A BALANCE OF $222.00, WHICH AMOUNT WAS STILL BEING TENDERED TO THE COMPLAINANT IN THE FORM OF A PERSONAL CHECK LEFT WITH THE CLERK OF THE COUNTY COURT. THE ATTORNEY ADVISED HIS CLIENT NOT TO ACCEPT THE CHECK, BECAUSE THE ACCEPTANCE THEREOF, BY VIRTUE OF THE RECEIPT DEPOSITED WITH THE CHECK, WOULD COMPLETELY RELEASE GARNER FROM ANY FURTHER PAYMENTS UNDER HIS CONTRACT. THE LETTER FURTHER INDICATED THAT FRANCISCO NARANJO HAD ENDEAVORED TO COLLECT FROM GARNER, CLAIMING THAT HE RENTED FROM GARNER'S MOTHER (FANNIE L. KETCHUM), BUT B. F. GARNER ATTENDED TO EVERYTHING AND HE LOOKED TO HIM FOR PAYMENT. NARANJO CLAIMED THAT HE PLOWED UP 40 ACRES AT THE INSTRUCTION OF GARNER AND THAT GARNER HAD PAID OUT $180.00 TO HIM AND INSTRUCTED HIM THAT THAT WAS ALL THAT WAS COMING AND THE BALANCE WAS FOR PICKING AND OTHER CHARGES, WHICH ARE NOT SUBSTANTIATED BY THE FACTS SHOWN TO THIS OFFICE.

A FIELD INVESTIGATION WAS RECOMMENDED IN THIS CASE AND ON APRIL 26, 1934, A REPORT WAS MADE, IN WHICH IT WAS SHOWN THAT THE COMPLAINANTS IN THIS CASE HAD BEEN PERSONALLY INTERVIEWED. SUBMITTED WITH THE REPORT WERE AFFIDAVITS OF BOTH SIMON SANCHEZ AND FRANCISCO NARANJO IN WHICH THEY SET FORTH THEIR COMPLAINT AGAINST THE ABOVE PRODUCER. THERE WAS ALSO SUBMITTED IN CONNECTION WITH THIS REPORT, AFFIDAVITS OF B. F. GARNER, F. L. KETCHUM, AND OTTO GARNER, DATED MARCH 20, 1934, WHICH STATE IN BRIEF:

"REGARDING CONTRACT NO. 74-128-32, IN WHICH FRANCISCO NARANJO IS TENANT; THAT THE SAID FRANCISCO NARANJO WAS A SHARE-CROPPER OF THEIRS ON THE HALF- AND-HALF BASIS; THAT HE AGREED WITH MRS. FANNIE L. KETCHUM TO TAKE ONE- HALF OF THE RENTAL BENEFITS FROM 40 ACRES OF COTTON THAT WAS PLOWED UP AS FULL SETTLEMENT OF HIS CLAIM AND ALLOW ALL OF THE OPTION MONEY TO BE PAID TO MRS. KETCHUM. THE AFFIANTS FURTHER STATE THAT BEFORE THE RENTAL CHECK WAS RECEIVED, THE SAID NARANJO MADE ANOTHER TRADE WITH MRS. KETCHUM, WHEREBY ITEMS OF $140.00, $15.00, $26.00, AND $5.00 WERE TO BE ASSIGNED AND PAID BY THE SAID MRS. KETCHUM IN FULL SETTLEMENT OF HIS CLAIM AND THAT THESE SEVERAL ITEMS HAVE BEEN PAID BY MRS. KETCHUM AND THAT THEREFORE NO BALANCE IS LEFT OWING TO THE SAID NARANJO.'

THE AFFIDAVIT OF FRANCISCO NARANJO ALSO SUBMITTED IN CONNECTION WITH THIS REPORT, AND DATED MARCH 28, 1934, IN BRIEF, IS TO THE EFFECT THAT HE HAD A ONE-HALF INTEREST IN 40 ACRES OF COTTON THAT WAS RETURNED TO THE GOVERNMENT UNDER THE CONTRACT IN QUESTION. HE STATES THAT MRS. KETCHUM ADVISED HIM THAT SHE WAS SELLING TO THE GOVERNMENT AND WOULD RECEIVE $11.00 PER ACRE FOR COTTON DESTROYED, BUT NOTHING WAS SAID ABOUT THE OPTION BY HER, AND AFFIANT DID NOT LEARN OF SUCH OPTION PRIVILEGE UNTIL HE WAS SO ADVISED LATER BY THE COUNTY AGENT. NARANJO ACKNOWLEDGED THE DEDUCTION AS SET FORTH IN THE AFFIDAVIT, SUPRA, BUT CLAIMS THAT SINCE HE WAS TENANT ON THE KETCHUM FARM, HE WAS ENTITLED TO SHARE EQUALLY WITH THE LANDLORD IN ALL COTTON PLOW-UP MONEYS.

REGARDING CONTRACT 74-128-194, THE AFFIDAVIT AS SUBMITTED BY B. F. GARNER AND FANNIE L. KETCHUM, IN BRIEF, IS TO THE EFFECT THAT 185 ACRES OF COTTON WERE RENTED TO SANCHEZ AND AFTER THE SAID SANCHEZ IN JUNE 1933 SOLD 70 ACRES TO B. F. GARNER FOR $257.00, SAID 70 ACRES WERE SUBSEQUENTLY RENTED TO THE GOVERNMENT BY THE SAID GARNER UNDER THE REDUCTION CONTRACT IN QUESTION. THE AFFIDAVIT FURTHER SHOWS THAT $35.00 OF THE ABOVE SUM HAS BEEN PAID TO THE SAID SANCHEZ, THUS LEAVING $222.00 AS A BALANCE DUE AND THAT A PERSONAL CHECK (REFER TO A. W. DENMARK'S LETTER OF NOVEMBER 17, 1933), IN THE SUM OF $222.00, PAYABLE TO SANCHEZ, HAD BEEN LEFT WITH THE CLERK OF A LOCAL COUNTY COURT.

THE AFFIDAVIT OF SIMON SANCHEZ, DATED MARCH 28, 1934, STATES THAT HE DID NOT SELL OUT HIS INTEREST IN COTTON TO MR. B. F. GARNER, BUT INSTEAD DESTROYED THE 70 ACRES AS INSTRUCTED BY MR. GARNER AND IT WAS HIS UNDERSTANDING THAT HE WOULD RECEIVE ONE-HALF OF THE BENEFITS THEREFROM. THE AFFIANT FURTHER CLAIMS HE WAS ENTITLED TO ONE-HALF OF THE $770.00 CASH BENEFITS OR THE SUM OF $385.00 AND ONE-HALF OF THE 31,500 BALES OPTION COTTON, FOR THE REASON OF HIS BEING A TENANT ON THE SAID FARM AND HAVING PLOWED UP THE COTTON AS INSTRUCTED. HE REFUSED TO ACCEPT THE CHECK FOR $222.00 AS FULL AND FINAL PAYMENT OF HIS CLAIM AGAINST THE SAID GARNER. HE DID ACKNOWLEDGE THE ADVANCE OF $35.00 AS SHOWN IN THE AFFIDAVITS, SUPRA.

SEVERAL LETTERS HAVE BEEN WRITTEN REGARDING THE SETTLEMENT OF THESE CONTRACTS BUT PROVED OF NO AVAIL IN REACHING ANY EQUITABLE SETTLEMENT. EXAMINATION OF THE FILES INDICATES THAT A STOP ORDER WAS REQUESTED REGARDING THE FURTHER PAYMENTS UNDER THESE CONTRACTS BUT APPARENTLY THESE STOP ORDERS WERE NOT BROUGHT TO THE PROPER ATTENTION, BECAUSE CHECKS FOR THE ORIGINAL 4 CENTS COTTON POOL PAYMENT AND THE 2 CENTS ADDITIONAL ADVANCE ON THE PARTICIPATION TRUST CERTIFICATE HAVE BEEN MADE IN FAVOR OF BOTH PRODUCERS.

IT APPEARS THAT THE FOLLOWING BENEFITS HAVE BEEN MADE TO THE PRODUCERS:

TABLE

74-128-194--- GARNER, B. F., SIMON SANCHEZ (TENANT)

CASH CHECK NO. 1387820 ----------------------- $770.00

4 CENT ADVANCE, COTTON POOL ------------------ 630.00

2 CENT ADDITIONAL ADVANCE -------------------- 239.40

TOTAL ---------------------------------- $1,639.40

DUE SANCHEZ ( 1/2 ( -------------------------- 819.70

LESS PAYMENT --------------------------------- 35.00

BALANCE DUE ---------------------------- 784.70

74-128-32--- KETCHUM, F. L., FRANCISCO NARANJO (TENANT) CASH

CHECK NO. 782523 ------------------------ $440.00 4 CENT

ADVANCE, COTTON POOL ------------------ 360.00 2 CENT

ADDITIONAL ADVANCE -------------------- 136.80

TOTAL ---------------------------------- 936.80

DUE NARANJO ( 1/2 ( -------------------------- 468.40

LESS PAYMENT --------------------------------- 181.00 ($180.00?)

BALANCE DUE ---------------------------- 287.40

($287.40?)

$288.40

UPON THE FOREGOING STATE OF FACTS, IT IS THE OPINION OF THE SECRETARY THAT BOTH GARNER AND MRS. KETCHUM WERE GUILTY OF FALSE REPRESENTATIONS IN THEIR CONTRACTS, THAT SUCH MISREPRESENTATIONS WERE MATERIAL, AND JUSTIFY THE SECRETARY IN RESCINDING THE CONTRACTS. ACCORDINGLY, THE COMMITTEE ON VIOLATIONS HAS RECOMMENDED:

1. THAT THE SECRETARY RESCIND 1933 COTTON-ACREAGE ADJUSTMENT CONTRACT NO. 74-128-32, EXECUTED BY FANNIE L. KETCHUM, AND 1933 COTTON ACREAGE ADJUSTMENT CONTRACT 74-128-194, EXECUTED BY B. F. GARNER, ON THE GROUND THAT THESE PRODUCERS VIOLATED THE TERMS OF THEIR RESPECTIVE CONTRACTS BY NOT SECURING THE VALID CONSENT IN WRITING OF THEIR TENANTS TO THE PLOWING UP OF COTTON IN WHICH THE TENANTS HAD AN INTEREST.

2. THAT THE SECRETARY MAKE PAYMENTS TO THE TENANTS ON THE FARMS FOR VOLUNTARY REDUCTION, PURSUANT TO SECTION 8 (1) OF THE ACT IN THE AMOUNT THEY SHOULD HAVE RECEIVED UNDER THE CONTRACTS, HAD THE PROPER DISTRIBUTION BEEN MADE. AT THE SAME TIME ANY VOLUNTARY PAYMENTS MADE PURSUANT HERETO SHALL BE CREDITED WITH THE AMOUNTS ALREADY RECEIVED BY THE TENANTS FROM THE CONTRACTING PRODUCERS.

3. THAT THE SECRETARY INSTITUTE SUCH PROCEEDINGS AS MAY BE NECESSARY TO RECOVER FROM THE CONTRACTING PRODUCERS THE AMOUNTS HERETOFORE PAID TO THEM. WHEN THIS RECOVERY IS HAD, HOWEVER, THE CONTRACTING PRODUCERS SHOULD BE CREDITED WITH THE AMOUNTS WHICH THEY ALREADY HAVE PAID TO THE TENANTS.

ENCLOSED HEREWITH IS A COMPLETE COPY OF THE RECOMMENDATIONS OF THE COMMITTEE, AS APPROVED BY THE SECRETARY.

YOUR OPINION IS REQUESTED, THEREFORE, AS TO THE PROPRIETY OF THE FOREGOING RECOMMENDATIONS WITH PARTICULAR REFERENCE TO WHETHER OR NOT PAYMENT MAY BE MADE TO THE TENANTS BEFORE RECOVERY IS HAD FROM THE LANDLORDS. IN THIS CONNECTION IT SHOULD BE NOTED THAT THE ORIGINAL COMPLAINTS WERE MADE IN NOVEMBER 1933, AT WHICH TIME THERE WAS STILL SUFFICIENT FUNDS IN THE HANDS OF THE SECRETARY TO MAKE PAYMENTS IN THE PROPER AMOUNTS TO THE TENANTS, BUT NO STOP ORDER WAS PLACED ON THE PAYMENTS, AND THEY WERE THEREFORE MADE TO THE LANDLORDS. FURTHER, BOTH MRS. KETCHUM AND GARNER HAVE SIGNED 1934-1935 COTTON-ACREAGE REDUCTION CONTRACTS, UPON WHICH PAYMENTS HAVE BEEN STOPPED. HOWEVER, THE AMOUNTS DUE UNDER THESE CONTRACTS ARE NOT SUFFICIENT TO REIMBURSE THE SECRETARY IN FULL FOR THE AMOUNTS PAID UNDER THE 1933 CONTRACTS.

IT IS UNDERSTOOD THAT THE CONTRACTS WITH MRS. KETCHUM AND B. F. GARNER WERE REGULAR IN FORM, PROPERLY EXECUTED AND IN CONFORMITY WITH THE REGULATIONS RELATIVE TO COTTON-ACREAGE REDUCTION; THAT THE SAID REDUCTION WAS MADE AS REQUIRED BY THE CONTRACTS, AND ALL PAYMENTS ACCRUING TO THE COTTON PRODUCERS HAVE BEEN PAID; THAT SUBSEQUENT TO PAYMENT TO THE CONTRACTORS YOUR DEPARTMENT WAS INFORMED OF CLAIMS ASSERTED BY TWO TENANTS OR SHARE-CROPPERS, SIMON SANCHEZ AND FRANCISCO NARANJO, THAT THEY WERE ENTITLED TO SHARE IN PAYMENTS TO MRS. KETCHUM AND GARNER FOR THE COTTON- ACREAGE REDUCTION. IT APPEARS, ALSO, THAT THESE TWO TENANTS HAVE EMPLOYED AN ATTORNEY TO REPRESENT THEM, AND FROM THE FACT STATED IN YOUR LETTER THAT GARNER HAS DEPOSITED HIS CHECK IN THE AMOUNT OF $222 WITH THE CLERK OF A LOCAL COURT TO COVER THE BALANCE HE CLAIMS HE OWES SANCHEZ, IT IS ASSUMED THAT LEGAL ACTION HAS BEEN INSTITUTED AND IS PENDING AGAINST KETCHUM AND GARNER BY THIS TENANT.

THE CONDITIONS OUTLINED IN YOUR SUBMISSION DISCLOSE AN ISSUE OF FACT BETWEEN THE LANDLORDS, OR CONTRACTORS WITH THE GOVERNMENT, ON THE ONE SIDE, AND THE TENANTS OR SHARECROPPERS, WHO ARE NOT IN CONTRACTUAL PRIVITY WITH THE GOVERNMENT, ON THE OTHER SIDE. IF THE STATEMENTS OF THE LANDLORDS ARE TO BE ACCEPTED, IT WOULD APPEAR THE TENANTS HAVE BEEN PAID ALL THEY ARE ENTITLED TO RECEIVE, WITH THE INCLUSION OF THE CHECK OF GARNER FOR $222 IN FAVOR OF SANCHEZ, REPORTED TO BE NOW WITH THE CLERK OF THE LOCAL COURT. IF, ON THE CONTRARY, THE CONTENTIONS OF THE TENANTS SHOULD BE SUBSTANTIATED, THEY WOULD BE ENTITLED TO CERTAIN ADDITIONAL AMOUNTS. THERE APPEARS NOTHING TO INDICATE THAT THE UNITED STATES IS LEGALLY LIABLE TO THESE TENANTS IN ANY AMOUNT.

AS IT IS CLEAR THAT ALL PAYMENTS HAVE BEEN MADE UNDER THE CONTRACTS WITH KETCHUM AND GARNER, AN UNDERTAKING TO PAY AN ADDITIONAL AMOUNT TO THE TENANTS FOR REDUCTION OF THE SAME ACREAGE OR ANY PART THEREOF WOULD BE DOUBLE PAYMENT FOR THE SAME ACREAGE REDUCTION, AND MANIFESTLY IS NOT AUTHORIZED. SECTION 8 (1) OF THE AGRICULTURAL ADJUSTMENT ACT, MENTIONED IN YOUR LETTER, GIVES NO SANCTION TO SUCH AN UNDERTAKING. AGENTS AND OFFICERS OF THE GOVERNMENT HAVE NO AUTHORITY TO GIVE AWAY THE MONEY OR PROPERTY OF THE UNITED STATES EITHER DIRECTLY OR IN THE GUISE OF A CONTRACT THAT OBLIGATES THE GOVERNMENT TO PAY A CLAIM NOT OTHERWISE ENFORCEABLE AGAINST IT. (BAUSCH AND LOMB OPTICAL COMPANY V. UNITED STATES, 78 CT.CLS. 584, AT PAGE 607.) ACCORDINGLY, YOU ARE ADVISED THAT ON THE PRESENT RECORD, APPROPRIATED MONEYS WOULD NOT BE AVAILABLE FOR THE PROPOSED ,VOLUNTARY PAYMENTS" TO THE TWO TENANTS, SANCHEZ AND NARANJO, BEFORE RECOVERY OF THE AMOUNTS INVOLVED FROM KETCHUM AND GARNER.

RELATIVE TO THE RECOMMENDATION OF THE COMMITTEE ON VIOLATIONS THAT THE 1933 COTTON-ACREAGE REDUCTION CONTRACTS WITH KETCHUM AND GARNER BE RESCINDED FOR VIOLATION OF THEIR TERMS, AND THAT THE SECRETARY INSTITUTE PROCEEDINGS TO RECOVER FROM THE CONTRACTORS THE AMOUNTS HERETOFORE PAID, THE MATTER WOULD APPEAR ONE FOR ADMINISTRATIVE DETERMINATION UPON A FULL DISCLOSURE OF THE FACTS; AND IN THIS CONNECTION THERE WOULD APPEAR FOR CONSIDERATION WHETHER EITHER KETCHUM OR GARNER HAS ANY INTEREST IN THE REMAINING ASSETS OF THE POOL WHICH MIGHT BE WITHHELD FROM THEM--- IN ADDITION TO ANY AMOUNTS WHICH OTHERWISE MIGHT BE DUE THEM UNDER THE 1934- 1935 CONTRACTS--- AND APPLIED AGAINST ANY AMOUNTS FOUND DUE FROM THEM BECAUSE OF THESE PAYMENTS UNDER THE 1933 CONTRACTS.