File No. 838.51/489

Admiral Caperton to the Secretary of the Navy

[Telegram]

Haitian Law permits salaries of Government employees to be attached thus stopping one-third for benefit of creditors. Attachments are of two kinds, court injunctions and “oppositions”. Latter extremely informal and require practically no proof of indebtedness. They are issued to cover speculators in pay accounts, the practice of buying present and future salaries at heavy discount being very prevalent. It is desired to disregard these oppositions entirely and thus carry out the Department’s instructions to pay each employee individually. Court injunctions should of course be obeyed but these are small percentage of attachments. Under opposition system present and future pay can be attached for discounted arrear of pay and also for discounted rights to future pay. Present method of paying will not prevent this practice as long as it is permitted to set aside one-third of all salaries becoming due. Not necessary to modify system of payments, but it is necessary to issue military order declaring invalid sequestration of one-third of employees [Page 347] salary. Have instructed Bank to temporarily suspend all payments affected by attachments pending advice from Department. Matter has become urgent as Bank has been cited to show cause why two-thirds payment should not be made to individual in one specific case. 00312.

W. B. Caperton