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B-125142, NOV. 17, 1955

B-125142 Nov 17, 1955
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TO THE HONORABLE POSTMASTER GENERAL: REFERENCE IS MADE TO THREE LETTERS DATED JUNE 15. THESE REMITTANCES WERE PREPARED FOR DISPATCH AUGUST 11. WERE DIRECTED TO THE CENTRAL NATIONAL BANK. ARE AS FOLLOWS: "ON THE MORNING OF AUGUST 11. HE WAS TOLD THAT THE REGISTERED MAIL WOULD BE PICKED UP EARLIER THAT DAY AND THAT HE SHOULD HAVE IT READY AT APPROXIMATELY 12:30 P.M. " IN WHICH HE WAS REQUESTED TO DELIVER A MESSAGE TO THE CARRIER WHEN HE CALLED TO PICK UP THE REGISTERED MAIL. THE MESSAGE WAS THAT THE CARRIER SHOULD ALSO PICK UP THE REGISTERED MAIL AT THE STATION LOCATED AT EAST 93RD STREET AND ST. LATER IN THE AFTERNOON THE REGULAR CARRIER CALLED FOR THE REGISTERS AND THE CONTRACTOR DISCOVERED THAT THE FIRST MAN WAS AN OSTER.'.

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B-125142, NOV. 17, 1955

TO THE HONORABLE POSTMASTER GENERAL:

REFERENCE IS MADE TO THREE LETTERS DATED JUNE 15, 1955, FROM ASSISTANT POSTMASTER GENERAL AND CONTROLLER, ALBERT J. ROBERTSON, TRANSMITTING PERTINENT PAPERS RELATING TO DEFICIENCIES IN THE ACCOUNTS OF JOSEPH S. FRANTZ, ACTING POSTMASTER AT CLEVELAND, OHIO, AND REQUESTING THAT CONSIDERATION BE GIVEN BY OUR OFFICE TO THE REMISSION OF THE CHARGES PURSUANT TO 5 U.S.C 383 AND 384.

THE CASES RELATE TO THE LOSS OF REGISTERED ARTICLES NOS. 26222, 26225, AND 26227, WHICH CONTAINED CASH REMITTANCES OF POSTAL FUNDS IN THE AMOUNTS OF $38.57, $34.27, AND $200, RESPECTIVELY. THESE REMITTANCES WERE PREPARED FOR DISPATCH AUGUST 11, 1954, BY MYER SPIRO, CONTRACTOR OF CONTRACT STATION NO. 26, 7226 KINSMANAVENUE, CLEVELAND, OHIO, AND WERE DIRECTED TO THE CENTRAL NATIONAL BANK, CLEVELAND, OHIO, AS AN ADVANCE DEPOSIT OF OFFICIAL FUNDS.

THE FACTS, AS STATED BY THE ASSISTANT POSTMASTER GENERAL, ARE AS FOLLOWS:

"ON THE MORNING OF AUGUST 11, 1954, MYER SPIRO, THE CONTRACTOR AT STATION NO. 26, RECEIVED A TELEPHONE CALL FROM A PERSON WHO IDENTIFIED HIMSELF AS A REPRESENTATIVE OF STATION "C.' HE WAS TOLD THAT THE REGISTERED MAIL WOULD BE PICKED UP EARLIER THAT DAY AND THAT HE SHOULD HAVE IT READY AT APPROXIMATELY 12:30 P.M. AT ABOUT 12:30 P.M. THE CONTRACTOR RECEIVED ANOTHER TELEPHONE CALL, ALSO PURPORTED TO ORIGINATE FROM STATION "C," IN WHICH HE WAS REQUESTED TO DELIVER A MESSAGE TO THE CARRIER WHEN HE CALLED TO PICK UP THE REGISTERED MAIL. THE MESSAGE WAS THAT THE CARRIER SHOULD ALSO PICK UP THE REGISTERED MAIL AT THE STATION LOCATED AT EAST 93RD STREET AND ST. CATHERINE AVENUE. SHORTLY AFTER THE SECOND CALL A MAN WEARING A CARRIER-TYPE CAP ENTERED THE STATION AND ADVISED THE CONTRACTOR THAT HE HAD COME TO PICK UP THE REGISTERED MAIL. THE CONTRACTOR CHECKED THE REGISTERS WITH THE MAN, GAVE THEM TO HIM, AND DELIVERED THE MESSAGE TO COLLECT THE REGISTERS AT THE OTHER STATION. THE MAN SIGNED THE REGISTRY DISPATCH BOOK WITH A NAME THAT APPEARS TO BE "COT," AND LEFT WITH THE REGISTERS. LATER IN THE AFTERNOON THE REGULAR CARRIER CALLED FOR THE REGISTERS AND THE CONTRACTOR DISCOVERED THAT THE FIRST MAN WAS AN OSTER.'

IT IS STATED THAT INVESTIGATION HAS FAILED TO DISCLOSE ANY EVIDENCE WHICH WOULD LEAD TO THE IDENTITY OF THE PERSON WHO REPRESENTED HIMSELF TO BE A POSTAL EMPLOYEE IN ORDER TO OBTAIN THE REGISTERS.

THE STATEMENT IS MADE IN THE REPORT OF THE POST OFFICE INSPECTOR THAT IT APPEARS THE CONTRACTOR, MYER SPIRO, ACTED IN "GOOD FAITH" IN TURNING OVER THE REGISTERED ARTICLES TO THE ALLEGED IMPOSTER, AND THE VIEW IS EXPRESSED BY THE INSPECTOR THAT THE CONTRACTOR SHOULD BE GIVEN CREDIT FOR THE LOSS INVOLVED. THE ASSISTANT POSTMASTER GENERAL CONCURS IN THIS VIEW, AND STATES THAT SINCE THERE IS NO EVIDENCE OF FAULT OR NEGLIGENCE ON THE PART OF ANY POSTAL PERSONNEL, THE POST OFFICE DEPARTMENT SHOULD ASSUME THE LOSS AND THAT JOSEPH S. FRANTZ, ACTING POSTMASTER, SHOULD BE ALLOWED CREDIT FOR THE AMOUNTS INVOLVED.

WHEN THERE IS CONSIDERED THAT THE LOSSES HERE INVOLVED WERE POSTAL FUNDS COLLECTED BY THE CONTRACTOR IN THE OPERATION OF CONTRACT STATION NO. 26, IT IS APPARENT THAT HIS ACTION IN TURNING SUCH FUNDS OVER TO A STRANGER, NOT IN A CARRIER'S UNIFORM, AND WITHOUT REQUIRING ANY KIND OF IDENTIFICATION, WAS NEGLIGENT. HENCE, THE FINDING OF THE POST OFFICE INSPECTOR THAT THE CONTRACTOR ACTED IN "GOOD FAITH" MUST, FROM THE FACTS OF RECORD, BE CONSIDERED AS LIMITED TO A FINDING THAT THE CONTRACTOR ACTED HONESTLY AND WITHOUT INTENT TO DEFRAUD AS DISTINGUISHED FROM A FINDING OF "GOOD FAITH" WITHIN THE MEANING THAT THE CONTRACTOR USED SUCH CAUTION AND DILIGENCE AS AN HONEST MAN OF ORDINARY PRUDENCE IS ACCUSTOMED TO EXERCISE IN CONDUCTING BUSINESS AFFAIRS.

UPON THE PRESENT RECORD INDICATING THE LOSS TO THE GOVERNMENT WAS CAUSED BY THE NEGLIGENCE OF THE CONTRACTOR IN DELIVERING POSTAL FUNDS TO AN IMPOSTER, OUR OFFICE CANNOT AGREE THAT THE POST OFFICE DEPARTMENT SHOULD ASSUME THE LOSS AND THE ACTING POSTMASTER AT CLEVELAND, OHIO, SHOULD BE ALLOWED CREDIT IN THE SETTLEMENT OF HIS ACCOUNTS.

THE FILES ARE RETURNED HEREWITH AND IT IS REQUESTED THAT THE MATTER BE GIVEN FURTHER CONSIDERATION BY YOUR DEPARTMENT WITH THE VIEW TO REQUIRING COLLECTION OF THE LOSSES FROM THE CONTRACTOR.

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