B-68641, AUG. 14, 1957

B-68641, AUG. 14, 1957

TO MRS. EDITH CARMAN HAY:

FURTHER REFERENCE IS MADE TO YOUR LETTER POSTMARKED JULY 2, 1957, CONCERNING YOUR CLAIM FOR ARREARS OF PAY BELIEVED TO BE DUE THE ESTATE OF YOUR LATE HUSBAND, MAJOR GENERAL WILLIAM H. HAY.

THE RECORD SHOWS THAT BY CERTIFICATE OF SETTLEMENT NO. US-23662, DATED JUNE 10, 1947, THE ESTATE OF WILLIAM H. HAY, MADISON SQUARE HOTEL, 37 MADISON AVENUE, NEW YORK, NEW YORK, WAS FOUND TO BE INDEBTED TO THE UNITED STATES IN THE SUM OF $12,370.20, AS A RESULT OF CERTAIN ACTIONS ON HIS PART IN CONNECTION WITH VARIOUS PAYMENTS MADE BY COLONEL WILLIAM A. TAYLOR AND CAPTAIN H. A. LEE, FORMER UNITED STATES PROPERTY AND DISBURSING OFFICERS, NEW YORK NATIONAL GUARD. THE SUM OF $311.67 DUE AS RETIRED PAY FOR THE PERIOD FROM DECEMBER 1 TO DECEMBER 17, 1947, THE DATE OF GENERAL HAY'S DEATH, WAS APPLIED AGAINST THE SUM OF $12,370.20, LEAVING A BALANCE OF $12,058.53 STILL DUE THE UNITED STATES AS OF JUNE 10, 1947.

THE RECORDS ALSO SHOW THAT THE DEPARTMENT OF JUSTICE ACCEPTED FROM THE ROYAL INDEMNITY COMPANY THE AMOUNT OF $22,500 IN COMPROMISE OF THE INDEBTEDNESS TO THE UNITED STATES OF COLONEL WILLIAM A. TAYLOR, COLONEL J. WESTON MYERS, DECEASED, AND CAPTAIN M. A. LEE, FORMER UNITED STATES PROPERTY AND DISBURSING OFFICERS, NEW YORK NATIONAL GUARD, UNDER THEIR BONDS WITH THE ROYAL INDEMNITY COMPANY AS SURETY. THE COMPROMISE AGREEMENT MADE BETWEEN THE GOVERNMENT AND THE SURETY COMPANY IS CONCLUSIVE ONLY AS TO MATTERS BETWEEN THE GOVERNMENT, THE SURETY AND THE THREE DISBURSING OFFICERS, COVERED BY THE SURETY BOND; IT IS NOT BINDING ON OR APPLICABLE TO THOSE WHO ARE NOT PARTIES TO THE AGREEMENT. THORP V. OGLE COAL CO., 153 N.E. 423; RIGOPOULOS V. KERVAN, 140 F.2D 506; SARTOR V. SOUTHERN CARBON CO., 61 F.SUPP. 649. THEREFORE, ALTHOUGH IT APPEARS THAT THE IRREGULAR TRANSACTIONS FORMING THE BASIS OF GENERAL HAY'S INDEBTEDNESS INVOLVED VOUCHERS AND CHECKS IN THE ACCOUNTS OF COLONEL WILLIAM A. TAYLOR AND CAPTAIN H. A. LEE, SUCH COMPROMISE AGREEMENT DID NOT ABSOLVE GENERAL HAY'S ESTATE OF LIABILITY IN THE MATTER. ACCORDINGLY, THERE IS NO AUTHORITY FOR THE PAYMENT TO YOU OF THE RETIRED PAY ITEM OF $311.67 WHICH WAS ACTUALLY APPLIED IN PARTIAL LIQUIDATION OF THE INDEBTEDNESS OF $12,370.20 IN GENERAL ACCOUNTING OFFICE CERTIFICATE OF SETTLEMENT NO. 1567023, DATED JUNE 10, 1947.

IT MAY BE STATED FOR YOUR INFORMATION, HOWEVER, THAT OUR OFFICE DOES NOT CONTEMPLATE AFFIRMATIVE COLLECTION ACTION WITH RESPECT TO THE BALANCE OF THE INDEBTEDNESS.