B-133905, JUN. 26, 1958

B-133905, JUN. 26, 1958

TO MR. JOSEPH T. CONWELL:

IN YOUR LETTER OF MAY 5, 1958, YOU REQUEST FURTHER CONSIDERATION OF THE CLAIM OF BILLIE AND TAMER TAYLOR FOR THE PROCEEDS OF A CHECK THEY SAY WAS ISSUED TO THEM AS RESTITUTION OF RENTAL OVERCHARGES FOR PREMISES FORMERLY OCCUPIED BY THEM AT 2418 WEST MADISON AVENUE, CHICAGO, ILLINOIS. THIS CLAIM WAS THE SUBJECT OF OUR LETTER TO YOU DATED OCTOBER 15, 1957, WHICH ADVISED YOU THAT OUR OFFICE COULD NOT ALLOW THE CLAIM AND SHOWED WHY FAVORABLE ACTION COULD NOT BE TAKEN.

THE CLAIM WAS BASED UPON THE ASSERTION BY BILLIE AND TAMER TAYLOR THAT THEY HAD NOT RECEIVED A CHECK ALLEGEDLY ISSUED TO THEM BY THE FORMER OFFICE OF RENT STABILIZATION AS A REFUND OF RENTAL OVERCHARGES. UNDATED AND UNADDRESSED PRINTED CARD USED BY THE FORMER OFFICE OF RENT STABILIZATION WAS FURNISHED AS EVIDENCE OF THE ISSUANCE OF THE REFUND CHECK. THE CARD READS AS FOLLOWS:

"THE ENCLOSED CHECK HAS BEEN ISSUED AS A REFUND OF RENTAL OVERCHARGES IN VIOLATION OF THE MAXIMUM RENT REGULATIONS WHICH WAS RECOVERED FROM THE LANDLORD FOR YOUR BENEFIT.

"IF ADDITIONAL INFORMATION CONCERNING THIS PAYMENT IS DESIRED, YOUR INQUIRY SHOULD BE DIRECTED TO YOUR LOCAL AREA RENT OFFICE, AND IN WRITING PLEASE GIVE THE NAME OF THE LANDLORD, THE ADDRESS OF THE HOUSING ACCOMMODATIONS INVOLVED, AND DOCKET NUMBER, IN ORDER THAT THE CASE CAN BE IDENTIFIED WITHOUT UNNECESSARY DELAY.'

WE ADVISED YOU THAT RECORDS OF THE FORMER OFFICE OF RENT STABILIZATION HAD BEEN DESTROYED PURSUANT TO LAW AND THAT UNLESS THE CLAIMANTS COULD FURNISH A DESCRIPTION OF THE CHECK, IT COULD NOT BE TRACED.

YOUR LETTER OF MAY 5, REQUESTS THAT A THOROUGH INVESTIGATION BE MADE TO FIND THE CHECK IN ORDER THAT A PHOTO COPY COULD BE SHOWN TO THE CLAIMANTS TO ASCERTAIN IF IT CONTAINED THEIR GENUINE INDORSEMENTS. YOU STATE THAT YOUR CLIENT HAS NO MONEY TO START A LAW SUIT AND YOU REQUEST THAT OUR OFFICE CONSIDER THE CLAIM IMPARTIALLY IN THE MANNER OF A COURT AND JURY.

SINCE THE RECEIPT OF THE CLAIM IN OUR OFFICE WE HAVE SPENT CONSIDERABLE TIME AND EFFORT TO LOCATE THE PERTINENT RECORDS OF THE FORMER OFFICE OF RENT STABILIZATION WHICH MIGHT PROVIDE US WITH INFORMATION AS TO WHETHER A REFUND CHECK FOR RENTAL OVERCHARGES WAS ACTUALLY AUTHORIZED AND A DESCRIPTION OF THE CHECK. AFTER MANY MONTHS IN THIS ENDEAVOR, THE GENERAL SERVICES ADMINISTRATION FEDERAL RECORD CENTER IN CHICAGO, ILLINOIS, ADVISED THAT THESE RECORDS WERE DESTROYED IN ACCORDANCE WITH LAW. IN THE ABSENCE OF SUCH RECORDS IT IS NOT POSSIBLE TO DETERMINE WHETHER A CHECK WAS ISSUED TO THE CLAIMANTS OR WHAT BECAME OF SUCH CHECK EXCEPT BY EXAMINATION OF THE PAID CHECK FILES AND OTHER CHECK RECORDS OF THE GOVERNMENT. DURING THE YEARS FROM JULY 31, 1951, THROUGH JULY 31, 1953, WHEN THE OFFICE OF RENT STABILIZATION WAS IN EXISTENCE, THE GOVERNMENT ISSUED OVER 600 MILLION CHECKS. I AM SURE YOU WILL AGREE THAT ANY INVESTIGATION BASED UPON THE EXAMINATION OF THAT MANY CHECKS TO DETERMINE WHETHER A CHECK WAS ISSUED TO THE CLAIMANTS AND WHETHER THEY ENDORSED THE CHECK WOULD BE EXTREMELY COSTLY AND MIGHT WELL BE ENTIRELY FRUITLESS.

IF AS THE TAYLORS ALLEGE THEY RECEIVED THE NOTICE QUOTED ABOVE, IT SEEMS CLEAR THAT A CHECK SHOULD HAVE ACCOMPANIED SUCH NOTICE; AND, IF IT DID NOT, THEY REASONABLY SHOULD HAVE MADE IMMEDIATE INQUIRY AS TO ITS WHEREABOUTS. HAD SUCH AN INQUIRY THEN BEEN MADE, AT A TIME WHEN THE OFFICE OF RENT STABILIZATION WAS CURRENTLY DOING BUSINESS, THE RECORDS COULD READILY HAVE BEEN LOCATED AND THE MATTER ADJUSTED. SINCE THEY FAILED TO CONTACT THE OFFICE OF RENT STABILIZATION ANY LOSS THEY MAY HAVE SUFFERED APPEARS TO HAVE RESULTED FROM LACHES ON THEIR PART AND THEY MUST BEAR THE RESULTS THEREOF. WE REGRET THAT, UNDER THE CIRCUMSTANCES, MORE FAVORABLE ACTION CANNOT BE TAKEN ON THE CLAIM BUT WE HAVE TO ADVISE YOU THAT, ON THE PRESENT RECORD, AND IN THE ABSENCE OF A COMPLETE DESCRIPTION OF THE CHECK, THE ACTION TAKEN IN DISALLOWING THE CLAIM MUST BE SUSTAINED.