B-15996, APRIL 15, 1941, 20 COMP. GEN. 651

B-15996: Apr 15, 1941

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1941: I HAVE YOUR LETTER OF APRIL 4. WHEN PAYMENT WAS MADE. WAS RECEIVED. INFORMATION WAS FURNISHED BY THE EXCHANGE THAT CERTIFICATES OF THIS CLASS MIGHT NOT BE REDEEMED UNTIL CERTAIN RESERVES HAVE BEEN SUFFICIENTLY ESTABLISHED BUT THEY DO DRAW A SIX-PERCENT DIVIDEND. SINCE THIS IS THE FIRST INSTANCE OF RECORD WHERE A COMMERCIAL FIRM OR CORPORATION HAS ISSUED A STOCK CERTIFICATE TO THE VETERANS' ADMINISTRATION AND IT MAY BE ASSUMED THAT ADDITIONAL CERTIFICATES MAY BE ACQUIRED IN A SIMILAR MANNER IF FURTHER PURCHASES ARE MADE FROM THE DOUGLAS COUNTY FARM BUREAU COOPERATIVE EXCHANGE. THE MATTER IS REFERRED TO YOU FOR ADVICE AS TO THE DISPOSITION TO BE MADE OF THEM. IN REPLY I HAVE TO ADVISE THAT THE STOCK CERTIFICATE SHOULD BE RETAINED IN THE FILES OF THE VETERANS' ADMINISTRATION FACILITY AT ROSEBURG.

B-15996, APRIL 15, 1941, 20 COMP. GEN. 651

COOPERATIVE EXCHANGE STOCK ISSUED TO GOVERNMENT AS DISTRIBUTION OF PROFITS - CUSTODY AND DISPOSITION OF PROCEEDS WHERE A VETERANS' ADMINISTRATION FACILITY RECEIVED A STOCK CERTIFICATE AS A DISTRIBUTION OF PROFITS IN CONNECTION WITH CERTAIN PURCHASES FROM A COOPERATIVE EXCHANGE, THE STOCK CERTIFICATE SHOULD BE RETAINED IN THE FILES OF THE PARTICULAR FACILITY INVOLVED, AND ANY AMOUNTS RECEIVED AS DIVIDENDS OR IN REDEMPTION OF THE STOCK CERTIFICATE SHOULD BE COVERED INTO THE TREASURY AS MISCELLANEOUS RECEIPTS.

COMPTROLLER GENERAL WARREN TO THE ADMINISTRATOR OF VETERANS' AFFAIRS, APRIL 15, 1941:

I HAVE YOUR LETTER OF APRIL 4, 1941, AS FOLLOWS:

THE VETERAN'S ADMINISTRATION FACILITY, ROSEBURG, OREGON, PURCHASED FORAGE, SEEDS, AND FERTILIZER FROM THE DOUGLAS COUNTY FARM BUREAU COOPERATIVE EXCHANGE OF ROSEBURG, AFTER SECURING COMPETITIVE BIDS FROM OTHER LOCAL FIRMS ON THE SAME COMMODITIES.

WHEN PAYMENT WAS MADE, THE ATTACHED SIX-PERCENT PREFERRED STOCK CERTIFICATE, HAVING A PAR VALUE OF TEN DOLLARS, WAS RECEIVED, THE CERTIFICATE HAVING BEEN ISSUED AS A DISTRIBUTION OF PROFITS ACCUMULATED BY THE EXCHANGE ON ACCOUNT OF CERTAIN PURCHASES MADE BY THE FACILITY. INFORMATION WAS FURNISHED BY THE EXCHANGE THAT CERTIFICATES OF THIS CLASS MIGHT NOT BE REDEEMED UNTIL CERTAIN RESERVES HAVE BEEN SUFFICIENTLY ESTABLISHED BUT THEY DO DRAW A SIX-PERCENT DIVIDEND.

SINCE THIS IS THE FIRST INSTANCE OF RECORD WHERE A COMMERCIAL FIRM OR CORPORATION HAS ISSUED A STOCK CERTIFICATE TO THE VETERANS' ADMINISTRATION AND IT MAY BE ASSUMED THAT ADDITIONAL CERTIFICATES MAY BE ACQUIRED IN A SIMILAR MANNER IF FURTHER PURCHASES ARE MADE FROM THE DOUGLAS COUNTY FARM BUREAU COOPERATIVE EXCHANGE, THE MATTER IS REFERRED TO YOU FOR ADVICE AS TO THE DISPOSITION TO BE MADE OF THEM.

IN REPLY I HAVE TO ADVISE THAT THE STOCK CERTIFICATE SHOULD BE RETAINED IN THE FILES OF THE VETERANS' ADMINISTRATION FACILITY AT ROSEBURG, OREG., AND THAT IN THE EVENT ANY AMOUNTS ARE RECEIVED AS DIVIDENDS ON OR IN REDEMPTION OF THE STOCK CERTIFICATE SUCH COLLECTIONS SHOULD BE COVERED INTO THE TREASURY OF THE UNITED STATES AS MISCELLANEOUS RECEIPTS.