B-125532, OCT. 13, 1956

B-125532: Oct 13, 1956

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DEPARTMENT OF THE TREASURY: THERE IS BEFORE THIS OFFICE FOR CONSIDERATION A CLAIM OF THE CHICAGO. THE FOLLOWING REPORT OF THE FACTS IS PRESENTED TO YOUR FOR FORWARDING. THE CARRIER IS CONTENDING THAT A DEDUCTION IN THE AMOUNT OF $950. WAS NOT JUSTIFIED AND HAS ASKED FOR ADJUSTMENT OF ITS LIABILITY ON THE BASIS OF A REFUND TO IT OF 60 PERCENT OF THE AMOUNT DEDUCTED. BILL OF LADING WW-6067712 WAS ISSUED MAY 17. AT DESTINATION ONE OF THESE MACHINES WAS FOUND TO BE DAMAGED AND A REPORT OF SURVEY WAS PREPARED IN AUGUST 1948. THE MATTER WAS REFERRED TO OUR OFFICE BY THE TRANSPORTATION DIVISION. ARE ATTACHED. WE HAVE NO INFORMATION AS TO THE FACTS AND CIRCUMSTANCES SURROUNDING THE OCCURRENCE OF THE DAMAGE INVOLVED EXCEPT AS REFLECTED IN THE RECORD.

B-125532, OCT. 13, 1956

TO MR. FRED C. SCRIBNER, JR., GENERAL COUNSEL, DEPARTMENT OF THE TREASURY:

THERE IS BEFORE THIS OFFICE FOR CONSIDERATION A CLAIM OF THE CHICAGO, MILWAUKEE, ST. PAUL AND PACIFIC RAILROAD COMPANY INVOLVING AN OFFER OF COMPROMISE GROWING OUT OF DAMAGE TO GOVERNMENT PROPERTY TRANSPORTED BY THAT COMPANY. THE FOLLOWING REPORT OF THE FACTS IS PRESENTED TO YOUR FOR FORWARDING, WITH YOUR RECOMMENDATION, TO THE SECRETARY OF THE TREASURY, AS PROVIDED IN 31 U.S.C. 194 AND TREASURY DEPARTMENT CIRCULAR NO. 39 (REVISED), 31 CFR 240.0-240-5.

THE CARRIER IS CONTENDING THAT A DEDUCTION IN THE AMOUNT OF $950, MADE IN FEBRUARY 1949 BY AN ARMY DISBURSING OFFICER, WAS NOT JUSTIFIED AND HAS ASKED FOR ADJUSTMENT OF ITS LIABILITY ON THE BASIS OF A REFUND TO IT OF 60 PERCENT OF THE AMOUNT DEDUCTED, OR $570.

BILL OF LADING WW-6067712 WAS ISSUED MAY 17, 1948, BY THE TRANSPORTATION OFFICER, DETROIT ORDNANCE DISTRICT, TO COVER A SHIPMENT OF SEVEN USED MACHINES, NOIBN, FROM HIGHLAND PARK, MICHIGAN, TO DANA, INDIANA, THE SHIPMENT BEING CONSIGNED TO THE TRANSPORTATION OFFICER, WABASH RIVER ORDNANCE WORKS. AT DESTINATION ONE OF THESE MACHINES WAS FOUND TO BE DAMAGED AND A REPORT OF SURVEY WAS PREPARED IN AUGUST 1948, SHOWING THE COST OF REPAIRS TO THE DAMAGED MACHINE AT $950, WITH THE CARRIER BEING HELD RESPONSIBLE FOR THE DAMAGE. FOLLOWING THE DEDUCTION IN FEBRUARY 1949 OF THIS AMOUNT FROM CHARGES OTHERWISE DUE THE CARRIER ON A SUBSEQUENT BILL, THE CARRIER UNDERTOOK AN INVESTIGATION WITH THE DEPARTMENT OF THE ARMY AND SUBSEQUENTLY RECLAIMED 60 PERCENT OF THE AMOUNT PREVIOUSLY DEDUCTED. BY LETTER OF JUNE 28, 1955, THE MATTER WAS REFERRED TO OUR OFFICE BY THE TRANSPORTATION DIVISION, FINANCE CENTER, U.S. ARMY, WITH THE RECOMMENDATION THAT THE COMPROMISE OFFER BE FAVORABLY CONSIDERED. PHOTOSTATIC COPIES OF THE LETTER OF TRANSMITTAL OF THE CLAIM, WITH PERTINENT ENCLOSURES, ARE ATTACHED. WE HAVE NO INFORMATION AS TO THE FACTS AND CIRCUMSTANCES SURROUNDING THE OCCURRENCE OF THE DAMAGE INVOLVED EXCEPT AS REFLECTED IN THE RECORD, BUT ON THE BASIS OF THAT RECORD WE FIND NO OCCASION TO DISAGREE WITH THE RECOMMENDATION OF THE DEPARTMENT OF THE ARMY FOR ACCEPTANCE OF THE OFFER.

THE OFFER OF COMPROMISE WAS NOT ACCOMPANIED BY A CHECK, DRAFT, OR MONEY ORDER FOR THE AMOUNT OF THE OFFER--- AS PROVIDED BY TREASURY DEPARTMENT CIRCULAR NO. 39 (REVISED/--- FOR THE OBVIOUS REASON THAT THE GOVERNMENT IS PRESENTLY IN POSSESSION OF MONEY OTHERWISE DUE THE CARRIER IN AN AMOUNT GREATER THAN THE AMOUNT OF THE OFFER. IN THE EVENT THE SECRETARY OF THE TREASURY CONCLUDES TO ACCEPT THE CARRIER'S COMPROMISE OFFER, WE WILL CERTIFY FOR PAYMENT TO THE CARRIER THE EXCESS DEDUCTED BY THE DISBURSING OFFICER BECAUSE OF THE REPORTED DAMAGE. WHILE THE CLAIM OF THE CARRIER WAS BARRED FROM SUIT AT THE TIME IT WAS TRANSMITTED TO US, IT WAS RECEIVED HERE WELL WITHIN THE TEN-YEAR PERIOD AUTHORIZED FOR CONSIDERATION BY CLAIMS BY US, AS PROVIDED IN 31 U.S.C. 71A.

ACTION UPON THE CARRIER'S CLAIM FOR THE EXCESS, DEDUCTED BY THE DISBURSING OFFICER, ABOVE THE AMOUNT OF ITS COMPROMISE OFFER, WILL BE HELD IN ABEYANCE HERE PENDING NOTICE OF THE ACCEPTANCE OR REJECTION OF THE OFFER.