B-144327, NOV. 21, 1960

B-144327, NOV. 21, 1960

TO MR. THOMAS R. POTTS:

REFERENCE IS MADE TO YOUR LETTER OF OCTOBER 10, 1960, REQUESTING RECONSIDERATION OF THE ACTION TAKEN BY OUR CLAIMS DIVISION IN LETTER DATED OCTOBER 5, 1960, DENYING YOUR CLAIM FOR A SECOND LIBERTY LOAN BOND WHICH YOU BELIEVE WAS PURCHASED THROUGH DEDUCTIONS FROM YOUR ARMY PAY DURING WORLD WAR I. YOU SAY THAT YOU HAVE A LETTER TELLING YOU WHEN YOU STARTED PAYING ON THE BOND, WHEN YOU GOT IT PAID FOR AND WHAT IT COST YOU, AND THAT, THEREFORE, YOU WANT THE BOND OR A CHECK FOR WHAT IT IS WORTH AT THE PRESENT TIME.

IN VIEW OF THE REPRESENTATIONS MADE BY YOU, WE HAVE CAREFULLY REVIEWED ALL THE EVIDENCE IN OUR FILE RELATING TO YOUR CLAIM. IT IS THERE INDICATED THAT WHILE YOU WERE SERVING IN THE ARMY DURING WORLD WAR I, YOU AUTHORIZED AN ALLOTMENT OF YOUR PAY, BEGINNING NOVEMBER 1, 1917, FOR THE PURCHASE OF A $50 SECOND LIBERTY LOAN BOND AND THAT, SINCE THE SUM OF $49.75 WAS REQUIRED FOR THE PURCHASE OF SUCH A BOND, ALLOTMENT DEDUCTIONS WERE TO BE MADE FROM YOUR PAY AT THE RATE OF $5 A MONTH FOR 9 MONTHS AND IN THE AMOUNT OF $4.75 FOR THE 10TH MONTH. AN EXAMINATION OF A TRANSCRIPT OF YOUR PAY ACCOUNT FOR THE PERIOD INVOLVED DISCLOSES THAT BOND ALLOTMENT DEDUCTIONS ACTUALLY WERE MADE FROM YOUR PAY AT THE RATE OF $5 A MONTH FOR THE 8-MONTH PERIOD FROM NOVEMBER 1917 THROUGH JUNE 1918, AMOUNTING TO $40, AND AT THE RATE OF $4.75 A MONTH FOR THE 2-MONTH PERIOD INCLUDING JULY AND AUGUST 1918, AMOUNTING TO $9.50. THUS, THE SUM OF THE AMOUNTS DEDUCTED FROM YOUR PAY TO COVER YOUR ALLOTMENT FOR THE PURCHASE OF THE BOND WAS ONLY $49.50, WHICH WAS LESS THAN THE SUM OF $49.75 REQUIRED FOR THE PURCHASE OF THE BOND.

IT MUST BE CONCLUDED, THEREFORE, THAT INASMUCH AS THE AMOUNT DEDUCTED WAS INSUFFICIENT TO PURCHASE A BOND OF THE DENOMINATION OF $50, NO BOND ACTUALLY WAS PURCHASED AND, HENCE, NO INTEREST ACCRUED ON THE AMOUNT DEDUCTED, IT BEING THE RULE THAT IN THE ABSENCE OF A CONTRACT TO SUCH EFFECT OR A STATUTE SO PROVIDING, INTEREST ON CLAIMS OF THIS CHARACTER IS NOT PAYABLE BY THE UNITED STATES. IN LINE WITH OUR PRIOR DECISIONS CONCERNING SUCH DEDUCTIONS, IT IS FURTHER CONCLUDED THAT THE AMOUNTS DEDUCTED FROM YOUR PAY FOR THE PURCHASE OF THE BOND CONSTITUTE FUNDS HELD IN TRUST BY THE GOVERNMENT AND THAT, AS SUCH, THEY PROPERLY ARE PAYABLE TO YOU. ACCORDINGLY, A SETTLEMENT FOR $49.50 WILL ISSUE IN YOUR FAVOR IN DUE COURSE.

ANY INQUIRY CONCERNING UNITED STATES SAVINGS BONDS WHICH YOU BELIEVE TO HAVE BEEN PURCHASED BY YOUR SON AND YOUR SON-IN-LAW WHILE THEY WERE IN THE MILITARY SERVICE DURING WORLD WAR II SHOULD BE ADDRESSED TO UNITED STATES SAVINGS BONDS DIVISION, TREASURY DEPARTMENT, WASHINGTON 25, D.C. ..END :