B-128824, OCT. 23, 1957

B-128824, OCT. 23, 1957

TO MR. SIDNEY COHEN:

WE HAVE YOUR LETTER OF AUGUST 6, 1957, WHICH IN EFFECT REQUESTS RECONSIDERATION OF OUR LETTER OF JUNE 25, 1957, B-128824, ADDRESSED TO YOUR REPRESENTATIVE, MR. MERCER M. RICE.

YOUR LETTER RAISES TWO POINTS: (1) YOU STATE THAT YOU HAVE ALWAYS QUESTIONED THE VALIDITY OF THE OVERPAYMENTS, AND YOU NOW WISH TO HAVE THEM RECONSIDERED, AND (2) YOU ASK OF THE GOVERNMENT WOULD JOINT WITH YOU IN A SUIT AGAINST KAPLAN TRUCKING COMPANY, WITH THE OBJECT OF RECOVERING FOR YOU THE AMOUNT OF THE INDEBTEDNESS WHICH ALREADY HAS BEEN LIQUIDATED. OUR RECORDS SHOW THAT THE CORRECTNESS OF THE OVERPAYMENTS STATED AGAINST THE BROWN DECAMP EXPRESS COMPANY, INC., WAS CONSIDERED AT FOUR SEPARATE CONFERENCES HELD IN OUR TRANSPORTATION DIVISION EARLY IN 1952. ON JANUARY 5 AND 17, 1952, YOUR TRAFFIC REPRESENTATIVE, MR. E. F. MACMILLAN, SURVEYED THE OVERPAYMENTS STATED AGAINST THE BROWN DECAMP EXPRESS COMPANY WITH A REPRESENTATIVE OF OUR TRANSPORTATION DIVISION. AS A RESULT OF THIS SURVEY, MR. MACMILLAN CONCEDED THE CORRECTNESS OF THE OVERPAYMENTS AND ADVISED YOU THAT THEIR TOTAL SHOULD BE REFUNDED TO THE GOVERNMENT. JANUARY 25 AND MAY 1, 1952, ACCOMPANIED BY MR. MACMILLAN, YOU CONFERRED WITH REPRESENTATIVES OF OUR TRANSPORTATION DIVISION. THE RECORD OF THESE CONFERENCES REFLECTS THAT YOU ALSO ADMITTED THE VALIDITY OF THE OVERPAYMENTS AND WERE CONCERNED ONLY WITH ARRANGEMENTS FOR LIQUIDATION OF THE DEBT. IN VIEW OF THESE FACTS RE-EXAMINATION OF THE RECORDS OF THE OVERPAYMENTS IS NOT JUSTIFIED.

AS TO YOUR SECOND POINT, WE HAVE NO STATUTORY AUTHORITY TO VOLUNTEER OUR LEGAL SERVICES TO ASSIST A PRIVATE PARTY IN THE PROSECUTION OF A PRIVATE SUIT. THE CONTRACT OF SALE BETWEEN BROWN DECAMP EXPRESS COMPANY AND THE KAPLAN TRUCKING COMPANY WAS DISCUSSED FULLY IN OUR LETTER OF JUNE 27, 1957. WE DID NOT INDICATE, AS YOU SUGGEST THAT THE KAPLAN TRUCKING COMPANY WAS LIABLE FOR THE OVERPAYMENTS. ON THE CONTRARY, UNDER THE CONTRACT THE SELLERS, SIDNEY COHEN AND DORIS COHEN, OWNERS OF THE BROWN DECAMP EXPRESS COMPANY, AGREED TO SATISFY ALL OBLIGATIONS OF THE CORPORATION AND TURN OVER THE OUTSTANDING STOCK TO THE PURCHASER, KAPLAN TRUCKING COMPANY, FREE AND CLEAR OF ALL OBLIGATIONS AND LIABILITIES. SINCE THE UNITED STATES WAS A STRANGER TO THIS CONTRACT AND SINCE THE LIABILITY OF THE BROWN DECAMP EXPRESS COMPANY TO THE GOVERNMENT HAS BEEN SATISFIED, THE GOVERNMENT HAS NO FURTHER INTEREST IN THIS MATTER. ACCORDINGLY, THERE IS NO BASIS FOR ANY FURTHER ACTION BY THE GOVERNMENT.

A COPY OF THIS LETTER IS BEING SENT, AT HIS REQUEST, TO YOUR LOCAL REPRESENTATIVE, MR. MERCER M. RICE.