How did The Residents get their name?

In 1971 the group sent a reel-to-reel tape to Hal Halverstadt at Warner Brothers, since he had worked with Captain Beefheart (one of the group's musical heroes). Halverstadt was not overly impressed with the Warner Bros. Album (He describes it as "okay at best" in Uncle Willie's Cryptic Guide to the Residents), but awarded the tape an "A for Ariginality". Because the band had not included any name in the return address, the rejection slip was simply addressed to "The Residents". The members of the group then decided that this would be the name they would use, first becoming "Residents Unincorporated", then shortening it to the current name.