A-81031, OCTOBER 27, 1936, 16 COMP. GEN. 446

A-81031: Oct 27, 1936

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ADJUSTED SERVICE CERTIFICATE NO. 1842604 WAS ISSUED TO THE VETERAN EFFECTIVE JANUARY 1. A COMMUNICATION WAS RECEIVED FROM THE COMMANDER OF THE EDWARD H. IN WHICH IT WAS ATED. GLATSTEIN WAS FURNISHED. THIS AFFIDAVIT WAS EXECUTED BY THE VETERAN AND RETURNED TO THE VETERANS' ADMINISTRATION IN MARCH 1931. THE AFFIDAVIT BEING SATISFACTORY EVIDENCE THAT THE ORIGINAL ADJUSTED-SERVICE CERTIFICATE WAS NEVER RECEIVED BY THE VETERAN. WAS ISSUED AND MAILED TO HIM ON MAY 4. UPON MAKING THE ADMINISTRATIVE AUDIT OF THIS SETTLEMENT IN CENTRAL OFFICE IT WAS DISCLOSED THAT THE VETERAN HAD OBTAINED SETTLEMENT ON HIS ORIGINAL CERTIFICATE RATHER THAN THE DUPLICATE. THE MANAGER OF THE OFFICE AT DES MOINES WAS REQUESTED ON AUGUST 26.

A-81031, OCTOBER 27, 1936, 16 COMP. GEN. 446

VETERANS' ADMINISTRATION - ADJUSTED COMPENSATION - PAYMENT UPON ORIGINAL CERTIFICATE AFTER ISSUANCE OF A DUPLICATE PAYMENT MADE TO A VETERAN ON HIS ORIGINAL ADJUSTED-SERVICE CERTIFICATE AFTER THE ISSUANCE TO HIM OF A DUPLICATE ON THE BASIS OF HIS AFFIDAVIT DISCLAIMING RECEIPT OF THE ORIGINAL, NEED NOT BE DISTURBED, THE VETERAN HAVING MADE AFFIDAVIT THAT UPON HIS FINDING THE ORIGINAL CERTIFICATE, HE HAD DESTROYED THE DUPLICATE. 14 COMP. GEN. 770, DISTINGUISHED.

ACTING COMPTROLLER GENERAL ELLIOTT TO THE ADMINISTRATOR OF VETERANS' AFFAIRS, OCTOBER 27, 1936:

CONSIDERATION HAS BEEN GIVEN THE MATTER PRESENTED IN YOUR LETTER OF OCTOBER 10, 1936, AS FOLLOWS:

PURSUANT TO APPLICATION FILED BY HARRY GLATSTEIN, A-3073343, FOR ADJUSTED COMPENSATION BENEFITS, AND CERTIFICATION OF ADJUSTED SERVICE CREDIT TO THE VETERANS' ADMINISTRATION, ADJUSTED SERVICE CERTIFICATE NO. 1842604 WAS ISSUED TO THE VETERAN EFFECTIVE JANUARY 1, 1925, IN THE AMOUNT OF $323.00.

ON MARCH 22, 1930, A COMMUNICATION WAS RECEIVED FROM THE COMMANDER OF THE EDWARD H. BITZER, POST NO. 27, IOWA DEPARTMENT OF THE AMERICAN LEGION, DATED MARCH 19, 1930, IN WHICH IT WAS ATED,"AT THE PRESENT WRITING MR. GLATSTEIN HAS NOT RECEIVED HIS CERTIFICATE NOR ANY INFORMATION PERTAINING TO SAME.' MR. GLATSTEIN WAS FURNISHED, THROUGH THE AMERICAN LEGION, FORM 6920, AFFIDAVIT SUBMITTED AS EVIDENCE OF LOSS, DESTRUCTION, OR DEFACEMENT OF ADJUSTED SERVICE CERTIFICATE. THIS AFFIDAVIT WAS EXECUTED BY THE VETERAN AND RETURNED TO THE VETERANS' ADMINISTRATION IN MARCH 1931. THE AFFIDAVIT BEING SATISFACTORY EVIDENCE THAT THE ORIGINAL ADJUSTED-SERVICE CERTIFICATE WAS NEVER RECEIVED BY THE VETERAN, A DUPLICATE CERTIFICATE, NO. 3621752, WAS ISSUED AND MAILED TO HIM ON MAY 4, 1931, WITHOUT THE REQUIREMENT OF AN INDEMNITY BOND. THE LETTER OF TRANSMITTAL INFORMED THE VETERAN THAT SHOULD THE ORIGINAL CERTIFICATE COME INTO HIS POSSESSION IT SHOULD BE FORWARDED WITHOUT DELAY TO THE VETERANS' ADMINISTRATION.

ON JUNE 15, 1936, THE VETERAN COMPLETED APPLICATION (FORM 1701) AND ATTACHED THERETO HIS ORIGINAL ADJUSTED-SERVICE CERTIFICATE NO. 1842604, FORWARDING THEM TO THE OFFICE OF THIS ADMINISTRATION AT DES MOINES, IOWA, FOR SETTLEMENT UNDER THE ADJUSTED COMPENSATION PAYMENT ACT, 1936. THAT OFFICE, NOT BEING ON NOTICE THAT A DUPLICATE ADJUSTED SERVICE CERTIFICATE HAD BEEN ISSUED, MADE CERTIFICATION OF SETTLEMENT ON JUNE 18, 1936, FOR THE FULL FACE VALUE OF THE CERTIFICATE, $323.00.

UPON MAKING THE ADMINISTRATIVE AUDIT OF THIS SETTLEMENT IN CENTRAL OFFICE IT WAS DISCLOSED THAT THE VETERAN HAD OBTAINED SETTLEMENT ON HIS ORIGINAL CERTIFICATE RATHER THAN THE DUPLICATE, AND THE MANAGER OF THE OFFICE AT DES MOINES WAS REQUESTED ON AUGUST 26, 1936, TO PLACE A CAVEAT ON THE BONDS AND STOP PAYMENT ON THE CHECK ISSUED TO THE VETERAN AND THAT OFFICE WAS ALSO INFORMED THAT IF THE BONDS AND CHECK WERE NOT RECOVERED BY THE TREASURY DEPARTMENT ACTION SHOULD BE INITIATED IMMEDIATELY TO RECOVER THE AMOUNT OF THE PAYMENT MADE TO THE VETERAN.

ON SEPTEMBER 14, 1936, HARRY GLATSTEIN SUBMITTED THE FOLLOWING AFFIDAVIT: "STATE OF IOWA,

"MUSCATINE COUNTY, SS:

"I, HARRY GLATSTEIN, BEING FIRST DULY SWORN, ON OATH DEPOSE AND STATE THAT ADJUSTED-SERVICE CERTIFICATE NO. 1,842,604 WAS ORIGINALLY ISSUED TO ME; THAT SAME BECAME MISPLACED AND AFTER MAKING A DILIGENT SEARCH FOR SAME AND BEING UNABLE TO FIND SAME, I DID, ON OR ABOUT THE 11TH DAY OF MARCH 1931, SUBMIT TO VETERANS' ADMINISTRATION AN AFFIDAVIT STATING THE LOSS OF SAME; THAT ON OR ABOUT MAY 4, 1931, I WAS ISSUED A DUPLICATE ADJUSTED- SERVICE CERTIFICATE, THE NUMBER OF WHICH I BELIEVE TO HAVE BEEN NO. 3,621,752; THAT SOME TIME LATER, ABOUT A YEAR AS I REMEMBER, I FOUND THE ORIGINAL ADJUSTED-SERVICE CERTIFICATE; THAT, BELIEVING THE ABOVE-NUMBERED DUPLICATE WAS OF NO VALUE, AS I HAD FOUND THE ORIGINAL, I DESTROYED SAME; THAT WHEN IT BECAME POSSIBLE TO "CASH" ADJUSTED-SERVICE CERTIFICATES I SENT IN MY ORIGINAL CERTIFICATE IN GOOD FAITH AND IN DUE COURSE RECEIVED BONDS NOS. 27,505,191-27,505,196, INCLUSIVE, WHICH IN DUE COURSE WERE IN TURN TURNED IN FOR CASH, I RECEIVING THE CASH FOR SAME; THAT I CANNOT RETURN THE DUPLICATE ADJUSTED-SERVICE CERTIFICATE ABOVE NUMBERED FOR THE REASONS ABOVE STATED.

"FURTHER DEPONENT SAYETH NOT.

(S) "HARRY R. GLATSTEIN.

"SUBSCRIBED AND SWORN TO BEFORE ME THIS 14TH DAY OF SEPTEMBER 1936, BY HARRY GLATSTEIN, TO ME PERSONALLY KNOWN.

(S) "JOHN H. DEVITT,

"NOTARY PUBLIC IN AND FOR MUSCATINE COUNTY, IOWA.

"MY COMMISSION EXPIRES JULY 4, 1939.'

THE COMPTROLLER GENERAL, IN DECISION DATED MAY 26, 1934, A-55478, HELD IN PART THAT:

"WHEN A DUPLICATE ADJUSTED-SERVICE CERTIFICATE IS ISSUED PURSUANT TO THE PROVISIONS OF SECTION 705 OF THE WORLD WAR ADJUSTED COMPENSATION ACT, AS AMENDED, 44 STAT. 830; ID. 1390, SUCH DUPLICATE CERTIFICATE SUPERSEDES THE ORIGINAL AND THUS BECOMES, IN FACT, THE LEGAL CERTIFICATE--- THE ORIGINAL THEREOF THEREBY CEASING TO BE THE LEGAL ONE. BONDS OF INDEMNITY, WHEN REQUIRED, IN CERTAIN CASES OF LOST OR DESTROYED CERTIFICATES, ARE FURNISHED FOR THE PURPOSE OF INDEMNIFYING THE UNITED STATES FOR ANY LOSS ARISING OUT OF THE ISSUANCE OF THE ORIGINAL CERTIFICATE.'

THIS CASE IS REFERRED FOR YOUR CONSIDERATION AND DECISION AS TO WHETHER OR NOT, UNDER ALL OF THE CIRCUMSTANCES, THE SETTLEMENT WHICH HAS BEEN MADE ON THE ORIGINAL ADJUSTED-SERVICE CERTIFICATE MAY BE ALLOWED TO STAND.

THE DECISION QUOTED IN PART IN YOUR LETTER INVOLVED A QUESTION REGARDING THE LIABILITY OF A BONDING COMPANY IN A CASE WHERE BOTH THE ORIGINAL AND DUPLICATE CERTIFICATES HAD BEEN HYPOTHECATED FOR LOANS--- THE LIABILITY UNDER THE BOND BEING TO INDEMNIFY THE GOVERNMENT FOR A LOSS ARISING BY VIRTUE OF THE ISSUANCE OF THE ORIGINAL CERTIFICATE. 14 COMP. GEN. 770. WHAT WAS STATED IN SAID DECISION, THEREFORE, HAS NO APPLICATION TO THE FACTS AS REPORTED HERE.

ACCORDINGLY, UNDER THE REPORTED FACTS AND CIRCUMSTANCES IN THIS PARTICULAR CASE, YOU ARE ADVISED THAT THE SETTLEMENT WHICH HAS BEEN MADE ON THE ORIGINAL ADJUSTED-SERVICE CERTIFICATE NEED NOT BE DISTURBED.