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B-128096, AUG. 20, 1956

B-128096 Aug 20, 1956
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TO THE SECRETARY OF THE INTERIOR: REFERENCE IS MADE TO LETTER OF MAY 31. THESE STAMPS ARE REDEEMABLE ON ANY ELECTRIC APPLIANCE. IT IS REPORTED THAT THE BILLS FOR THE SERVICES FURNISHED THE BUREAU BY THE COOPERATIVE AMOUNT TO APPROXIMATELY $500 PER MONTH. IT IS STATED IN THE LETTER THAT THE COOPERATIVE WILL NOT GIVE A CASH DISCOUNT ON THE BUREAU'S BILLS IN LIEU OF THE ISSUANCE OF STAMPS. THE COOPERATIVE STATING THAT THE STAMP PROGRAM "IS NOT A CASH DISCOUNT AS SUCH AND WE WOULD BE UNABLE TO GIVE YOU A CASH DISCOUNT ON YOUR BILLS.'. WE HAVE BEEN INFORMALLY ADVISED BY YOUR DEPARTMENT THAT THE STAMPS ARE NOT REDEEMABLE IN CASH. IN CONNECTION WITH THE FOREGOING THE FOLLOWING QUESTIONS ARE PRESENTED FOR OUR CONSIDERATION: "SINCE THE STAMPS WHEN ISSUED AS STATED ABOVE REPRESENT CERTAIN INTRINSIC VALUES TO THE GOVERNMENT IF THEY CAN BE EXCHANGED FOR ITEMS OF MERCHANDISE THAT WOULD OTHERWISE BE PURCHASED AND PAID FOR FROM APPROPRIATED FUNDS.

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B-128096, AUG. 20, 1956

TO THE SECRETARY OF THE INTERIOR:

REFERENCE IS MADE TO LETTER OF MAY 31, 1956, FROM THE ADMINISTRATIVE ASSISTANT SECRETARY OF THE INTERIOR, CONCERNING CERTAIN TRADING STAMPS RECEIVED BY THE BUREAU OF INDIAN AFFAIRS INCIDENT TO THE PURCHASE OF ELECTRIC SERVICES.

IT APPEARS THAT THE ANADARKO AREA OFFICE AND OTHER FIELD INSTALLATIONS OF THE BUREAU OF INDIAN AFFAIRS IN OKLAHOMA PURCHASES ELECTRIC SERVICES FROM THE CADDO ELECTRIC COOPERATIVE, BINGER, OKLAHOMA, THE BUREAU BEING CONSIDERED A MEMBER OF THE COOPERATIVE AS A RESULT THEREOF. THE COOPERATIVE ISSUES TRADING STAMPS TO MEMBERS AT THE RATE OF TWO STAMPS PER DOLLAR PAID ON ELECTRIC BILLS OR ELECTRICAL APPLIANCES PURCHASED FROM ITS PARTICIPATING STAMP DEALERS. THESE STAMPS ARE REDEEMABLE ON ANY ELECTRIC APPLIANCE, SUCH AS SMALL TRAFFIC APPLIANCES, WHITE GOODS, MOTORS, STARTERS, ETC., BASED ON 40 STAMPS TO THE DOLLAR. IT IS REPORTED THAT THE BILLS FOR THE SERVICES FURNISHED THE BUREAU BY THE COOPERATIVE AMOUNT TO APPROXIMATELY $500 PER MONTH. IT IS STATED IN THE LETTER THAT THE COOPERATIVE WILL NOT GIVE A CASH DISCOUNT ON THE BUREAU'S BILLS IN LIEU OF THE ISSUANCE OF STAMPS, THE COOPERATIVE STATING THAT THE STAMP PROGRAM "IS NOT A CASH DISCOUNT AS SUCH AND WE WOULD BE UNABLE TO GIVE YOU A CASH DISCOUNT ON YOUR BILLS.' ALSO, WE HAVE BEEN INFORMALLY ADVISED BY YOUR DEPARTMENT THAT THE STAMPS ARE NOT REDEEMABLE IN CASH.

IN CONNECTION WITH THE FOREGOING THE FOLLOWING QUESTIONS ARE PRESENTED FOR OUR CONSIDERATION:

"SINCE THE STAMPS WHEN ISSUED AS STATED ABOVE REPRESENT CERTAIN INTRINSIC VALUES TO THE GOVERNMENT IF THEY CAN BE EXCHANGED FOR ITEMS OF MERCHANDISE THAT WOULD OTHERWISE BE PURCHASED AND PAID FOR FROM APPROPRIATED FUNDS, OR THEY COULD BE USED FOR THE PURPOSE OF PROCURING RECREATIONAL EQUIPMENT FOR THE BENEFIT OF THE INDIAN STUDENTS, YOUR ADVICE IS REQUESTED AS TO WHETHER IT WOULD BE PROPER FOR THE BUREAU TO PARTICIPATE IN THE STAMP PROGRAM, REDEEMING SAME FOR GOODS TO BECOME THE PROPERTY OF THE GOVERNMENT.

"IF YOUR ANSWER IS IN THE NEGATIVE, YOUR ADVICE AS TO WHAT DISPOSITION SHOULD BE MADE ON THE STAMPS WILL BE APPRECIATED.'

WHILE THE STAMP PROGRAM MAY NOT INVOLVE A CASH DISCOUNT AS SUCH, THE STAMPS IN QUESTION MAY BE REGARDED AS IN THE NATURE OF A DISCOUNT, REBATE, OR REDUCTION IN THE PRICE PAID FOR ELECTRIC SERVICES. IF THE STAMPS ARE NOT REDEEMED, THE GOVERNMENT WOULD IN EFFECT SUFFER A LOSS, SINCE THE STAMPS--- AS INDICATED IN THE ADMINISTRATIVE ASSISTANT SECRETARY'S LETTER- -- DO HAVE A VALUE. HENCE, IT WOULD APPEAR TO BE IN THE BEST INTERESTS OF THE GOVERNMENT TO REDEEM THE STAMPS. ACCORDINGLY, AND IN VIEW OF THE FACTS AND CIRCUMSTANCES HERE INVOLVED, YOU ARE ADVISED THAT WE WOULD HAVE NO OBJECTION TO YOUR EXCHANGING THE STAMPS FOR ITEMS OF MERCHANDISE--- TO BECOME THE PROPERTY OF THE GOVERNMENT-- OR FOR THE PURPOSE OF PROCURING RECREATIONAL EQUIPMENT FOR THE BENEFIT OF INDIAN STUDENTS.

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