B-143738, SEP. 30, 1960

B-143738, SEP. 30, 1960

TO LIEUTENANT COLONEL FREDERICK M. TAYLOR, USAF, RETIRED:

REFERENCE IS MADE TO YOUR LETTER OF AUGUST 8, 1960, REQUESTING REVIEW OF THE SETTLEMENT OF AUGUST 3, 1960, WHICH DISALLOWED YOUR CLAIM FOR $879.25 DEDUCTED FROM YOUR PAY AS CAPTAIN, ARMY OF THE UNITED STATES, FOR THE PERIOD JUNE 1, 1943, TO JULY 31, 1945, FOLLOWING YOUR RETURN FROM A BELEAGUERED STATUS IN THE PHILIPPINE ISLANDS.

IN PRESENTING YOUR CLAIM YOU STATED THAT YOU WERE SERVING ON THE ISLAND OF MINDANAO, PHILIPPINE ISLANDS, AS AN ENLISTED MAN WHEN THAT ISLAND, ON MAY 10, 1942, WAS SURRENDERED TO THE JAPANESE; THAT YOU AND OTHER MILITARY PERSONNEL AVOIDED CAPTURE AND BECAME ACTIVE AS GUERRILLAS UNDER THE COMMAND OF COLONEL WENDELL W. FERTIG, 10TH MILITARY DISTRICT, USFIP; THAT DURING GUERRILLA ACTIVITIES, COLONEL FERTIG WAS AUTHORIZED TO ISSUE EMERGENCY SCRIPT; AND THAT YOU WERE PAID IN SCRIPT HAVING A VALUE OF 1,758.50 PHILIPPINE PESOS OR $879.25.

A TRANSCRIPT OF YOUR PAY ACCOUNT PREPARED ON MAY 25, 1945, BY THE FORCE FINANCE OFFICER, HEADQUARTERS, TENTH MILITARY DISTRICT, APO 343, C/O C-4, SHOWS THAT YOU WERE COMMISSIONED AS SECOND LIEUTENANT ON JUNE 1, 1943, PROMOTED TO FIRST LIEUTENANT ON MARCH 3, 1944, AND TO CAPTAIN ON FEBRUARY 20, 1945, AND THAT THE CASH ALLOWANCE DRAWN BY YOU AS AN OFFICER IN THE U.S. PHILIPPINE ARMY DURING THE PERIOD JUNE 1, 1943, TO DECEMBER 31, 1944, PLUS AN UNLIQUIDATED CASH ADVANCE OF 100 PESOS IN OLD PHILIPPINE CURRENCY, WAS 1,758.50 PHILIPPINE PESOS OR $879.25. THE RECORD SHOWS THAT YOU RETURNED TO REGULAR MILITARY CONTROL ON MAY 28, 1945, AND THAT YOU WERE PAID $1,610.10 FOR THE PERIOD JUNE 1, 1943, TO JULY 31, 1945, ON VOUCHER 14284-1 IN THE SEPTEMBER 1945 ACCOUNTS OF W. A. SARCANDER. IN DETERMINING THE AMOUNT FOR PAYMENT, THERE WAS DEDUCTED THE PRIOR PAYMENT OF $879.25 AND ALSO $1,758.50. SINCE THE LATTER DEDUCTION WAS ERRONEOUS, THE ITEM OF $1,758.50 WAS RECREDITED TO YOUR PAY ACCOUNT FOR THE PERIOD AUGUST 1, 1945, TO SEPTEMBER 30, 1945, ON VOUCHER 8244 IN THE OCTOBER 1945 ACCOUNTS OF E. J. SCHIEBER. YOUR CLAIM FOR THE SUM OF $879.25 WAS DISALLOWED BY THE SETTLEMENT MENTIONED ABOVE, IT BEING STATED THAT UPON YOUR RETURN FROM A BELEAGUERED STATUS YOU WERE PAID THE AMOUNT DETERMINED TO BE DUE BY THE SECRETARY OF THE ARMY OR HIS DESIGNEE UNDER AUTHORITY OF THE MISSING PERSONS ACT OF 1942, AS AMENDED, 50 U.S.C. (APP.) 1001. IN YOUR PRESENT LETTER YOU ACKNOWLEDGE RECEIPT OF THE PAYMENTS MENTIONED ABOVE BUT CONTEND THAT YOU WERE NOT "PAID" THE $879.25 FOR THE REASON THAT THE SCRIPT ISSUED TO YOU WAS NOT LEGAL TENDER; THAT LEGAL TENDER WAS IMPROPERLY WITHHELD FROM YOU AS A CONSEQUENCE OF SUCH ISSUE, AND THAT THERE HAS BEEN NO DETERMINATION MADE IN THE MATTER.

THE ACT OF DECEMBER 23, 1944, AS AMENDED, 31 U.S.C. 492A TO C, EFFECTIVE ON AND AFTER DECEMBER 7, 1941, PROVIDES THAT, SUBJECT TO REGULATIONS, DISBURSING OFFICERS OF THE UNITED STATES ARE AUTHORIZED FOR OFFICIAL PURPOSES, OR FOR THE ACCOMMODATION OF MILITARY, NAVAL, AND CIVILIAN PERSONNEL OF THE UNITED STATES GOVERNMENT, TO CASH AND NEGOTIATE CHECKS, DRAFTS, BILLS OF HANGE,"AND OTHER INSTRUMENTS PAYABLE IN UNITED STATES AND FOREIGN CURRENCIES," AND TO CONDUCT EXCHANGE TRANSACTIONS INVOLVING UNITED STATES AND FOREIGN CURRENCY. THE AUTHORITY CONTAINED IN ADMINISTRATIVE REGULATIONS VALIDATED BY THE PROVISIONS OF THAT ACT, PERMITTING DISBURSING OFFICERS TO CASH AND NEGOTIATE INSTRUMENTS SUCH AS THE SCRIPT ISSUED TO YOU, WAS UNQUESTIONABLY THE STABILIZING FACTOR THAT MADE SUCH SCRIPT ACCEPTABLE AS A MEDIUM OF EXCHANGE AND ENABLED YOU TO SPEND IT. HAD YOU RETAINED THE SCRIPT FOR PRESENTATION TO A DISBURSING OFFICER FOR REDEMPTION AFTER YOU RETURNED TO REGULAR MILITARY CONTROL THERE WOULD HAVE BEEN PROPER AUTHORITY UNDER SUCH REGULATIONS TO HAVE EXCHANGED IT FOR RECOGNIZED CURRENCY. SINCE THE SCRIPT GIVEN TO YOU REPRESENTED A VALID OBLIGATION OF THE GOVERNMENT UNDER THE LAW AND REGULATIONS AND YOU WERE ABLE TO NEGOTIATE IT ON THAT BASIS, IT SEEMS CLEAR THAT THE CREDITING IN YOUR PAY ACCOUNT OF ITS EQUIVALENT DOLLAR VALUE WAS PROPER AND REQUIRED.

DURING THE PERIOD COVERED BY YOUR CLAIM YOU WERE IN A BELEAGUERED STATUS WITHIN THE CONTEMPLATION OF THE MISSING PERSONS ACT OF 1942, AS AMENDED, 50 U.S.C. (APP.) 1001. UNDER THAT ACT THE SECRETARY OF THE ARMY OR HIS DESIGNEE IS AUTHORIZED TO MAKE DETERMINATIONS AS TO YOUR MILITARY STATUS AND YOUR RIGHTS TO PAY INCLUDING CREDITS AND CHARGES IN YOUR PAY ACCOUNT. MORENO V. UNITED STATES, 118 CT.CL. 30. IN MAKING PAYMENT TO YOU ON VOUCHER NO. 14281-1 IT WAS DETERMINED BY THE DEPARTMENT OF THE ARMY THAT YOU HAD RECEIVED A PARTIAL PAYMENT IN THE AMOUNT OF $879.25, AND THAT AMOUNT WAS DEDUCTED FROM THE SUM OTHERWISE FOUND DUE. THERE IS NO BASIS ON WHICH IT MAY BE CONCLUDED THAT A PROPER DETERMINATION WAS NOT MADE IN THE MATTER, NOR THAT YOU WERE NOT FULLY PAID. IN ANY EVENT, IN VIEW OF THE PROVISIONS OF THE SAID MISSING PERSONS ACT, THIS OFFICE IS WITHOUT AUTHORITY TO DETERMINE THAT ANY AMOUNT IS NOW OWING TO YOU. THEREFORE, THE SETTLEMENT OF AUGUST 3, 1960, IS SUSTAINED.