Tidewater Charlotte Warehouses, Inc.

B-119724: Apr 25, 1955

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Thomas H. Armstrong
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ArmstrongT@gao.gov

 

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During a period beginning in April 1948 and ending in June 1951, the Government-owned Charlotte Quartermaster Depot was being operated by Tidewater Charlotte Warehouses, Inc., under storage contracts entered into with the the Fine-Cured Tobacco Cooperative Stabilization Cooperation (an association of tobacco growers). The matter presented for consideration involves the question of whether the Government is entitled to the sum of $85,085.35 received by the Cooperative from payments made by tobacco dealers for storing and servicing tobacco in the warehouse following the purchase of the tobacco by the dealers. The contracts contained no provision for storage of the tobacco following its sale to private dealers or for any division of the income from such storage operations.

In view of the contention of the Department of Agriculture that storage of the tobacco after its sale was incidental to the overall program, it is not the fault that any proper legal basis exists for undertaking further collection action against the Cooperative.