Disposition of Charges Collected from Dealers for the Storage of Tobacco

B-119724-O.M.: Apr 25, 1955

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Shirley Jones
(202) 512-8156


Office of Public Affairs
(202) 512-4800

There is returned herewith Report No. I-17938, dated December 17, 1952, together with supporting papers, concerning the disposition of charges collected from dealers for the storage of tobacco in the Government-owned Charlotte Quartermaster Depot, Charlotte, North Carolina, during a period beginning in April 1948 and ending in June 1951. During such period the depot was being operated by Tidewater Charlotte Warehouses, Inc., under storage contracts entered into with FlueCured Tobacco Cooperative Stabilization Corporation. The matter presented for consideration involves the question of whether the Government is entitled to the sum of $85,085.35 received by the Cooperative from payments made by tobacco dealers for storing and servicing tobacco in the warehouse following the purchase of tobacco by the dealers.

Accordingly, and in view of the contention of the Department of Agriculture that storage of the tobacco after its sale was incidental to the overall program, it is not felt that any legal basis exists for undertaking further collection action against the Cooperative.

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