B-51379, OCT. 21, 1963

B-51379: Oct 21, 1963

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TO THE CONTINENTAL INSURANCE COMPANIES: WE HAVE YOUR LETTER OF OCTOBER 1. IT IS STATED THAT THE TOTAL OF THE BANKRUPT ESTATE'S FUNDS HELD BY FIDELITY IS $450. WHO WAS DISCHARGED ON MARCH 11. YOUR OFFER OF PAYMENT IS CONTINGENT UPON THE CONCURRENCE OF THE COLLECTOR OF INTERNAL REVENUE. WHOSE PREFERRED CLAIM IS SHOWN AS $2. SINCE BOTH AMOUNTS WOULD IN ANY CASE BE RETURNED TO THE FEDERAL TREASURY WE BELIEVE THE PROCEDURE WILL BE SIMPLIFIED IF YOU WILL CONSIDER ALL OF THE FEDERAL GOVERNMENT'S CLAIMS AS ONE. WE ARE TAKING THE LIBERTY OF FORWARDING COPIES OF OUR CORRESPONDENCE TO THE COMMISSIONER OF INTERNAL REVENUE.

B-51379, OCT. 21, 1963

TO THE CONTINENTAL INSURANCE COMPANIES:

WE HAVE YOUR LETTER OF OCTOBER 1, 1963, OFFERING TO PAY OVER TO OUR OFFICE $215.55 OUT OF FUNDS HELD BY THE FIDELITY AND CASUALTY COMPANY OF NEW YORK BELONGING TO THE ESTATE OF HONNI SIGNAL MANUFACTURING CORPORATION, ADJUDICATED A BANKRUPT ON DECEMBER 22, 1950.

IT IS STATED THAT THE TOTAL OF THE BANKRUPT ESTATE'S FUNDS HELD BY FIDELITY IS $450; THAT THE TRUSTEE, WHO WAS DISCHARGED ON MARCH 11, 1953, HAS DECLINED TO REOPEN THE BANKRUPTCY PROCEEDINGS; AND THAT THE AMOUNT OFFERED TO OUR OFFICE REPRESENTS THE PROPORTION OF THE TOTAL AMOUNT HELD WHICH OUR PREFERRED CLAIM OF $1,978,273.84 REPRESENTS TO THE TOTAL OF PREFERRED CLAIMS AGAINST THE ESTATE OF $4,130,601. YOUR OFFER OF PAYMENT IS CONTINGENT UPON THE CONCURRENCE OF THE COLLECTOR OF INTERNAL REVENUE, FIFTH DISTRICT, NEW JERSEY, WHOSE PREFERRED CLAIM IS SHOWN AS $2,095,514.

IN KEEPING WITH OUR NORMAL PROCEDURES IN MATTERS OF THIS KIND WE WOULD PREFER THAT THE AMOUNTS YOU PROPOSE TO PAY TO OUR OFFICE BE SENT, TOGETHER WITH SUCH AMOUNTS AS YOU PROPOSE TO PAY HIM, TO THE COLLECTOR OF INTERNAL REVENUE. SINCE BOTH AMOUNTS WOULD IN ANY CASE BE RETURNED TO THE FEDERAL TREASURY WE BELIEVE THE PROCEDURE WILL BE SIMPLIFIED IF YOU WILL CONSIDER ALL OF THE FEDERAL GOVERNMENT'S CLAIMS AS ONE. IN THIS CONNECTION, WE NOTE THAT THE TWO CLAIMS REPRESENT SOME 98.7 PERCENT OF THE TOTAL OF PREFERRED CLAIMS. TO THE EXTENT, THE REMAINDER ALSO REPRESENTS A CLAIM OF THE FEDERAL GOVERNMENT, WE REQUEST THAT AMOUNT ALSO BE INCLUDED IN THE PAYMENT TO THE COLLECTOR.

THANK YOU FOR BRINGING THE MATTER TO OUR ATTENTION. WE ARE TAKING THE LIBERTY OF FORWARDING COPIES OF OUR CORRESPONDENCE TO THE COMMISSIONER OF INTERNAL REVENUE.