B-86001/H), B-86001/S), I-17000-2607, DEC 31, 1954

B-86001/H),B-86001/S): Dec 31, 1954

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TO THE SECRETARY OF THE ARMY: REFERENCE IS MADE TO LETTER DATED JUNE 11. WHICH WERE QUESTIONED IN A REPORT OF INVESTIGATION TRANSMITTED TO YOU WITH OUR LETTER OF MARCH 27. DISCLOSED THAT DURING THE PERIOD THE INCREASED ALLOWANCE PAYMENTS WERE MADE THE MOTHER WAS A PATIENT AT THE MASSILLON STATE HOSPITAL. AT THE TIME OF THE INTERVIEW THE MOTHER'S LIVING EXPENSES WERE ESTIMATED TO BE ABOUT $38 A MONTH. - THE AMOUNT OF WHICH IT WAS STATED HAD NOT BEEN PAID. WAS STILL IN THE HANDS OF THE TRUSTEE. WAS BEING FORWARDED TO A TRUSTEE FOR DEPOSIT IN A "GUARDIAN ACCOUNT.'. ANOTHER INVESTIGATION WAS MADE AND THE INFORMATION AND FACTS DEVELOPED BY OUR INVESTIGATORS ARE SET FORTH IN A SUPPLEMENTAL REPORT.

B-86001/H), B-86001/S), I-17000-2607, DEC 31, 1954

TO THE SECRETARY OF THE ARMY:

REFERENCE IS MADE TO LETTER DATED JUNE 11, 1954, WITH ENCLOSURES, FROM THE CHIEF OF FINANCE, CONCERNING INCREASED RENTAL AND SUBSISTENCE ALLOWANCE PAYMENTS MADE TO MISS ANNE HANDLON (THEN CAPTAIN ANNE H. SHAW, L -500800, WAC), AS AN OFFICER WITH A DEPENDENT MOTHER DURING THE PERIOD SEPTEMBER 1, 1953, TO MAY 24, 1948, WHICH WERE QUESTIONED IN A REPORT OF INVESTIGATION TRANSMITTED TO YOU WITH OUR LETTER OF MARCH 27, 1953. THE CHIEF OF FINANCE REQUESTED RECONSIDERATION OF THE MATTER IN VIEW OF THE ADDITIONAL INFORMATION CONTAINED IN THE ENCLOSURES.

OUR ORIGINAL INVESTIGATION IN THIS CASE, INCLUDING A PERSONAL INTERVIEW WITH MISS HANDLON'S BROTHER AND SISTER-IN-LAW, DISCLOSED THAT DURING THE PERIOD THE INCREASED ALLOWANCE PAYMENTS WERE MADE THE MOTHER WAS A PATIENT AT THE MASSILLON STATE HOSPITAL, MASSILLON, OHIO, WHERE SHE HAD BEEN HOSPITALIZED SINCE 1929, AND THAT SHE HAD NO INCOME. AT THE TIME OF THE INTERVIEW THE MOTHER'S LIVING EXPENSES WERE ESTIMATED TO BE ABOUT $38 A MONTH, CONSISTING OF CHARGES OF $24 FOR LODGING, FOOD AND SERVICES FURNISHED BY THE HOSPITAL--- THE AMOUNT OF WHICH IT WAS STATED HAD NOT BEEN PAID, DUES $9, AND CLOTHING AND MISCELLANEOUS INCIDENTALS, $5. THE REPORT ALSO DISCLOSED THAT MISS HANDLON PAID THE AMOUNT OF THE DUES FOR HER MOTHER AND FURNISHED SOME OCCASIONAL INCIDENTALS AND ITEMS OF CLOTHING --- NOT EXCEEDING $2.50 IN VALUE, OR A TOTAL CONTRIBUTION OF ABOUT $11 A MONTH.

MISS HANDLON NOW ALLEGES THAT SHE PERSONALLY HAS PAID FOR ALL CLOTHING AND OUT-OF-POCKET EXPENSES OF HER MOTHER SINCE 1929 AND THAT WHEN IN THE SERVICE SHE DEPOSITED $25 A MONTH WITH A TRUSTEE FOR PAYMENT OF THE HOSPITAL EXPENSES, AND THAT THE TOTAL AMOUNT DEPOSITED, $1,425, WAS STILL IN THE HANDS OF THE TRUSTEE. SHE ALSO ALLEGES THAT IN OCTOBER 1942, AS HER MOTHER'S GUARDIAN, SHE FILED AN ITEMIZED ACCOUNT WITH THE PROBATE COURT OF STARK COUNTY SHOWING THAT SHE PREVIOUSLY HAD EXPENDED $2,300 OF HER PERSONAL FUNDS FOR THE SUPPORT OF HER MOTHER AND THAT A RAILROAD RETIREMENT BOARD WIDOW'S ANNUITY OF $45.04 A MONTH AWARDED TO HER MOTHER IN DECEMBER 1953, EFFECTIVE APRIL 1, 1953, WAS BEING FORWARDED TO A TRUSTEE FOR DEPOSIT IN A "GUARDIAN ACCOUNT.'

AFTER RECEIPT OF THE LETTER OF JUNE 11, 1954, ANOTHER INVESTIGATION WAS MADE AND THE INFORMATION AND FACTS DEVELOPED BY OUR INVESTIGATORS ARE SET FORTH IN A SUPPLEMENTAL REPORT, THREE COPIES OF WHICH ARE ENCLOSED. THE SUPPLEMENTAL REPORT CONFIRMS THE FACTS DISCLOSED BY OUR ORIGINAL INVESTIGATION. IN ADDITION, THE LATEST INVESTIGATION DISCLOSES THAT THE ALLEGED ,GUARDIAN ACCOUNT" IS MERELY THE PROCEEDS OF A SINGLE CHECK FOR $1,425 REMITTED TO AN ATTORNEY IN JANUARY 1954, WITH INSTRUCTIONS TO HOLD THE AMOUNT IN TRUST PENDING DETERMINATION OF MISS HANDLON'S ENTITLEMENT TO THE QUESTIONED INCREASED ALLOWANCE PAYMENTS. THE LATEST INVESTIGATION ALSO DISCLOSES THAT THE PROBATE COURT OF STARK COUNTY, OHIO, HAS NO RECORD OF A TRUST FUND HAVING BEEN ESTABLISHED FOR THE MOTHER AND THAT THE INITIAL AND SUBSEQUENT RAILROAD RETIREMENT ANNUITY CHECKS HAVE NOT BEEN DEPOSITED IN ANY TRUST ACCOUNT AS ALLEGED.

THE PAYMENT OF INCREASED ALLOWANCES TO OFFICERS WITH DEPENDENTS DURING THE PERIOD SEPTEMBER 1, 1943, TO MAY 24, 1948, WAS GOVERNED BY SECTIONS 5 AND 6 OF THE PAY READJUSTMENT ACT OF 1942, 56 STAT. 361. SECTION 4 OF THE ACT DEFINES THE TERM "DEPENDENT," AS USED IN THE ACT, AS INCLUDING ,THE FATHER OR MOTHER OF THE PERSON CONCERNED PROVIDED HE OR SHE IS IN FACT DEPENDENT ON SUCH PERSON FOR HIS OR HER CHIEF SUPPORT.' THE TERM "CHIEF SUPPORT" HAS BEEN DEFINED AS MEANING MAIN" SUPPORT OR "PRINCIPAL" SUPPORT, THAT IS, THE PARENT MUST BE DEPENDENT ON THE OFFICER FOR ,MOST" OR THE "GREATER" PART OF THE FUNDS NECESSARY FOR HIS OR HER SUPPORT. GEER V. UNITED STATES, 76 C.CLS. 259. ALSO, IT HAS BEEN HELD THAT IT MUST BE SHOWN THAT THE OFFICER'S CONTRIBUTION WAS REQUIRED FOR THE ALLEGED DEPENDENT'S NECESSARY AND PROPER SUPPORT AND CONSTITUTED THE CHIEF PART OF SUCH SUPPORT. WHITING V. UNITED STATES, 80 C.CLS. 662; ODLIN V. UNITED STATES, 74 C.CLS. 633, 638.

IT WILL BE NOTED THAT THE QUESTIONED PAYMENTS WERE MADE DURING THE PERIOD SEPTEMBER 1, 1943, TO MAY 24, 1948, BUT THAT THE AMOUNT OF THE ALLEGED TRUST FUND WAS NOT EVEN REMITTED TO MISS HANDLON'S ATTORNEY UNTIL JANUARY 1954. ALSO, IT WILL BE NOTED THAT THE ITEMIZED ACCOUNT FILED BY MISS HANDLON WITH THE PROBATE COURT OF STARK COUNTY ON OCTOBER 16, 1942, WAS HER FIRST AND FINAL ACCOUNT AS THE GUARDIAN OF HER MOTHER'S ESTATE, THUS APPARENTLY TERMINATING HER TRUST RESPECTING THE ESTATE AS OF THAT DATE.

UPON REVIEW OF THE MATTER, THE CONCLUSION IS REQUIRED THAT THE RECORD DOES NOT WARRANT CHANGING OUR DETERMINATION THAT THE MOTHER WAS NOT IN FACT DEPENDENT ON MISS HANDLON FOR THE CHIEF PART OF HER SUPPORT DURING THE PERIOD THE INCREASED ALLOWANCE PAYMENTS WERE MADE. IN FACT THE MOTHER WAS DEPENDENT UPON HER ONLY TO THE EXTENT OF ABOUT $11 A MONTH AS ORIGINALLY REPORTED. IN THE CIRCUMSTANCES, FURTHER CONSIDERATION BY THE DEPARTMENT OF THE ARMY WITH A VIEW TO RECOVERING THE