B-126800, SEPT. 12, 1956

B-126800, SEPT. 12, 1956

TO THE ADMINISTRATOR, MARITIME ADMINISTRATION:

REFERENCE IS MADE TO YOUR LETTER OF JANUARY 25, 1956, WITH ENCLOSURES, INQUIRING AS TO WHETHER WE WOULD HAVE ANY OBJECTION TO YOUR PROPOSED REFUND TO WISCONSIN AND MICHIGAN STEAMSHIP COMPANY OF INTEREST PAID UPON A MORTGAGE NOTE WHICH WAS CANCELLED BY VIRTUE OF THE APPROVED ALLOWANCES FOR THE CONVERSION OF THE S.S. MARINE STAR TO A GREAT LAKES FREIGHT AND PASSENGER VESSEL. ENCLOSED WITH YOUR LETTER WAS A MEMORANDUM OF THE MARITIME ADMINISTRATION'S GENERAL COUNSEL CONCLUDING THAT THE PURCHASER IS ENTITLED TO THE REFUND OF INTEREST.

YOU ARE ADVISED THAT WE CONCUR IN THE CONCLUSION OF YOUR GENERAL COUNSEL. HOWEVER, OUR EXAMINATION OF THE MATTER DISCLOSES THAT THE AMOUNT OF $86,284.33 REPORTED BY THE CLAIMANT AS THE AMOUNT OF INTEREST PAID TO THE GOVERNMENT IS OVERSTATED BY $1,696.90. THE PURCHASER PAID $79.27 WHICH WAS NOT INCLUDED IN THE AMOUNT OF $86,284.33. THIS REPRESENTED INTEREST CHARGED FOR DELAY IN PAYMENT OF MORTGAGE INSTALLMENT DUE JUNE 21, 1952. ALSO, THE TOTAL INCLUDES AN AMOUNT OF $18,909.14 FOR INTEREST DUE DECEMBER 21, 1952. THE AMOUNT PAID WAS $17,132.97, OR $1,776.17 LESS, WHICH WAS THE AMOUNT ACTUALLY DUE. THIS DIFFERENCE AROSE BECAUSE OF A CHANGE IN THE PRINCIPAL BALANCE THROUGH APPLICATION OF A PORTION OF THE FIRST PARTIAL CONVERSION ALLOWANCE TO THE UNPAID BALANCE.

ACCORDINGLY, WE PERCEIVE NO OBJECTION TO A REFUND OF INTEREST TO THE CLAIMANT IN THE AMOUNT OF $84,587.43.