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B-119724-O.M. 1 (1955-04-25)

handle is hein.gao/gaobadahh0001 and id is 1 raw text is: 


              COMPTROLLER GENERAL OF THE UNITED STATES
                            WASHINGTON25

Ew11972haO0.%.                                 April 25, 1955
I-17938





Chief, Office of Invostigations

     There is returne4 herewith Report No.  1-17938, dated December
17, 1954  together with  supporting papers, concerning the disposition
of charges collected fptua deler  for  the storage of tebace in the
Goverzment-awned Cbarlotte Quartermaster Depot, Charlotte,  orth
Carolina, duting. a period beginnthg it April 196 and ending in June
1951.
     During  such period the depot was being operated by Tidewater
Charlotte Warehouset,  Inc., under storage contrats  entered into with
FnuaCured Tobaest Cooperative  $tabilisation Corpfttir   (an association
of  tobacco groWens)*  Who matteO presented for eenaideration involes
the qaestiox of ihethr   the Government is entitled to the aum of
185,085$35  received by the Cooperative frou payments made by tobacco
dealers  for storing and servicing tobaceo in the warehouse follow.
ing  the purchase of the tobaccQ by the dealers.  By pemit  dat$
ovember   4, 194k? the Departent Aof the Army granted the Department
of  Agriealture the use of the warebouse on a rent-free basis eseept
for nalnteanae   and service chargest  *a oral arrangement the Depart-
ment  Of Agfpiq#turtg acting through the Commodity Credit Cogsration,
turnad  ther narehoaes over to the Cooperative. The latter oganisation
did  not operat# the warehouse, but by successive annmal ptqrage con-
tracts  it granted use of the warehouse to Tidewater Charlotte Ware.
house,  Ina.  The storage contracts provided for the p.  nt by the
Cooperative  to Tidwater  of a flat storage rate per hogebbad of
tobacco,  pius handling chartea.  The contracts contained no provision
for  storage of the tobacco following its sale to private dealers or
for  any division of the income from such storage operationtt  Since
the  storage contracts contained no provision for restorags operations
and  the disposition of res4itig  proeedas  QTal   4afgmnfDt* were
entered  into betwen   idenater and the Co6perative (itb  the knowledge
of  XcC) thereby Tidewater Wuld  be allowed 14o% from storage revenue
on  dealer tobacco up to 20,000 hogsheads, and 32% over that amount,
iith  the balance to be paid to the Cooperative.  Such arrangement,
which  in effect constitute4 an amenduent of the storage contracts,
prevailed  from April 1968 until September 1949, when the contracting
parties   greed that all receipts from dealer storage should be turned
usve V'   th  Coper:.ativ.  The record indicate  that altog ther the
;ooperative  receivcd Z7y,301.20 for storage charges from dealer

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