B-143782, B-142771, NOV. 23, 1960
Highlights
ESQUIRE: REFERENCE IS MADE TO YOUR LETTER OF JUNE 13. IT IS CONTENDED THAT YOUR CLIENT DID NOT RECEIVE AN EQUIVALENT QUANTITY OF SURPLUS COTTON FROM COMMODITY CREDIT CORPORATION (CCC) INVENTORIES IN EXCHANGE FOR $4. IS BASED ON THE PREMISE THAT THE EXCHANGE VALUE OF THE COTTON ACQUIRED BY ROUGH DIAMOND UNDER THE BARTER AGREEMENT WAS NOT DETERMINED BY CCC ON THE BASIS OF THE COMPETITIVE WORLD PRICES FOR COTTON DURING THE PERIOD APRIL-JULY 1959 AS WAS REQUIRED BY SECTION 203 OF THE AGRICULTURAL ACT OF 1956. YOU FEEL THAT YOUR CLIENT IS ENTITLED TO THE PAYMENT OF ABOUT $1. PAID. "/K) SHALL HAVE AUTHORITY TO MAKE FINAL AND CONCLUSIVE SETTLEMENT AND ADJUSTMENT OF ANY CLAIMS BY OR AGAINST THE CORPORATION OR THE ACCOUNTS OF ITS FISCAL OFFICERS.'.
B-143782, B-142771, NOV. 23, 1960
TO CARL L. SHIPLEY, ESQUIRE:
REFERENCE IS MADE TO YOUR LETTER OF JUNE 13, 1960, AND SUBSEQUENT CORRESPONDENCE, RELATIVE TO THE CLAIM OF THE ROUGH DIAMOND COMPANY, INC., FOR ADDITIONAL COMPENSATION ALLEGED TO BE DUE UNDER COMMODITY EXCHANGE AGREEMENT NO. BSD-SM-59-85 DATED JUNE 1, 1960. IT IS CONTENDED THAT YOUR CLIENT DID NOT RECEIVE AN EQUIVALENT QUANTITY OF SURPLUS COTTON FROM COMMODITY CREDIT CORPORATION (CCC) INVENTORIES IN EXCHANGE FOR $4,751,958.94 OF INDUSTRIAL DIAMONDS DELIVERED TO AND ACCEPTED BY CCC UNDER THE TERMS OF THE CITED BARTER AGREEMENT.
THE CLAIM, AS PRESENTED, IS BASED ON THE PREMISE THAT THE EXCHANGE VALUE OF THE COTTON ACQUIRED BY ROUGH DIAMOND UNDER THE BARTER AGREEMENT WAS NOT DETERMINED BY CCC ON THE BASIS OF THE COMPETITIVE WORLD PRICES FOR COTTON DURING THE PERIOD APRIL-JULY 1959 AS WAS REQUIRED BY SECTION 203 OF THE AGRICULTURAL ACT OF 1956, 7 U.S.C. 1853. FOR THAT REASON, YOU FEEL THAT YOUR CLIENT IS ENTITLED TO THE PAYMENT OF ABOUT $1,250,000, REPRESENTING THE DIFFERENCE BETWEEN THE EXCHANGE VALUE OF THE COTTON DELIVERED BY CCC PRICED IN ACCORDANCE WITH SECTION 5 OF THE BARTER AGREEMENT AND THE VALUE OF THE SAME QUANTITY OF COTTON PRICED AT THE THEN CURRENT WORLD MARKET PRICES.
OUR OFFICE HAS NO AUTHORITY TO CONSIDER THE INSTANT CLAIM ON ITS MERITS. THE COMMODITY CREDIT CORPORATION CHARTER ACT, 15 U.S.C. 714B (J) AND (K), PROVIDES THAT THE CORPORATION---
"/J) SHALL DETERMINE THE CHARACTER OF AND THE NECESSITY FOR ITS OBLIGATIONS AND EXPENDITURES AND THE MANNER IN WHICH THEY SHALL BE INCURRED, ALLOWED, AND PAID.
"/K) SHALL HAVE AUTHORITY TO MAKE FINAL AND CONCLUSIVE SETTLEMENT AND ADJUSTMENT OF ANY CLAIMS BY OR AGAINST THE CORPORATION OR THE ACCOUNTS OF ITS FISCAL OFFICERS.'
IN VIEW OF THE QUOTED STATUTORY PROVISIONS, WE HAVE NO ALTERNATIVE OTHER THAN TO DENY JURISDICTION IN THE MATTER. SEE, ALSO, SKINNER AND EDDY CORPORATION V. MCCARL, 275 U.S. 1; AND PAGES 11 AND 12 OF HOUSE OF REPRESENTATIVES REPORT NO. 1790, 80TH CONGRESS, 2D SESSION, ON H.R. 6263, A COMPANION BILL TO S. 1322 WHICH WAS ENACTED AS THE COMMODITY CREDIT CORPORATION CHARTER ACT.