B-145436, MAY 22, 1962

B-145436, MAY 22, 1962

TO MR. ROBERT E. SHARP, CITY MANAGER, CITY OF KETCHIKAN:

REFERENCE IS MADE TO LETTER OF FEBRUARY 26, 1962, FROM THE DIRECTOR OF FINANCE, CITY OF KETCHIKAN, WITH RESPECT TO OUR LETTER OF FEBRUARY 1, 1962, TO SENATOR BARTLETT, WHEREIN WE ADVISED THAT WE HAD ISSUED INSTRUCTIONS TO OUR CLAIMS DIVISION TO ISSUE A SETTLEMENT IN THE AMOUNT OF $7,818.73 TO KETCHIKAN PUBLIC UTILITIES FOR CERTAIN TELEPHONE SERVICES FURNISHED THE ALASKA COMMUNICATION SYSTEM, UNITED STATES ARMY SIGNAL CORPS, DURING THE PERIOD JANUARY 1, 1960, THROUGH MARCH 31, 1961.

UNDER DATE OF FEBRUARY 8, 1962, OUR CLAIMS DIVISION TRANSMITTED TO THE CHIEF OF FINANCE, UNITED STATES ARMY, A VOUCHER FOR $7,818.73 IN FAVOR OF KETCHIKAN PUBLIC UTILITIES FOR THE SERVICES INVOLVED, THE VOUCHER HAVING BEEN CERTIFIED FOR PAYMENT BY THE COMPTROLLER GENERAL. THE VOUCHER WAS DULY FORWARDED TO THE FINANCE AND ACCOUNTING OFFICE, ALASKA COMMUNICATION SYSTEM, SEATTLE, WASHINGTON, FOR PAYMENT. HOWEVER, UNDER DATE OF APRIL 24, 1962, THE VOUCHER WAS RETURNED TO US WITHOUT ANY PAYMENT HAVING BEEN MADE THEREON, WITH THE REQUEST THAT RECONSIDERATION BE GIVEN TO ALLOWANCE OF THE CLAIM.

IN REQUESTING THAT WE RECONSIDER OUR ACTION IN AUTHORIZING ALLOWANCE OF THE CLAIM, THE ALASKA COMMUNICATION SYSTEM (ACS) CONTENDS, AMONG OTHER THINGS, THAT THE AGENCY ALLOWED KETCHIKAN'S TELEPHONE EXCHANGE FACILITIES TO REMAIN CONNECTED WITH THE ACS TOLL FACILITIES WITHOUT A CONTRACT DURING THE PERIOD INVOLVED SOLELY BECAUSE THE MAYOR OF THE CITY OF KETCHIKEN, MR. R. E. HARDCASTLE, SPECIFICALLY REQUESTED THE COMMANDING OFFICER, ACS, COLONEL GEORGE F. ROGERS, TO CONTINUE THE CONNECTION SO THAT THE PEOPLE OF THE CITY WOULD HAVE A MORE ACCESSIBLE AND CONVENIENT MEANS OF CONTACT WITH THE "OUTSIDE WORLD.' ACS ALSO CONTENDS THAT ITS LONG DISTANCE TOLL RATES DO NOT EVEN COVER THE COST OF THE LONG LINES SERVICE WHICH IT PROVIDES, AND, HENCE, THE AGENCY DOES NOT ENCOURAGE INCREASED COMMERCIAL USE OF THE TELEPHONE FOR LONG DISTANCE PURPOSES. IN OTHER WORDS, THE AGENCY'S POSITION IS THAT THE SERVICES HERE INVOLVED WERE OF NO BENEFIT TO THE FEDERAL GOVERNMENT WHATSOEVER.

IN VIEW OF THE ABOVE CONTENTIONS, WE FELT IT NECESSARY TO REFER THE MATTER TO OUR CIVIL ACCOUNTING AND AUDITING DIVISION FOR AN INVESTIGATION AND REPORT. WHEN SUCH REPORT HAS BEEN RECEIVED AND EVALUATED WE SHALL BE IN A POSITION TO GIVE FURTHER CONSIDERATION TO THE CASE AND WILL ADVISE YOU AS PROMPTLY AS POSSIBLE OF OUR CONCLUSION.