B-127532, NOV. 26, 1957

B-127532: Nov 26, 1957

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SUCH PAYMENTS ARE MADE UNDER PROTEST AND WITHOUT PREJUDICE TO YOUR RIGHTS IN CIVIL ACTION NO. 6817 M. SINCE IT APPEARS THAT THE ACCEPTANCE OF YOUR AMENDED PROPOSAL WILL NOT BE DETRIMENTAL TO THE GOVERNMENT'S INTEREST. WE ARE ISSUING INSTRUCTIONS FOR THE NECESSARY ARRANGEMENTS CONSISTENT WITH YOUR AMENDED PROPOSAL. THE BALANCE OF THE FUNDS NOW HELD IN OUR EXPENSE ACCOUNT WILL BE RELEASED. WILL BE HELD IN OUR EXPENSE ACCOUNT. AT WHICH TIME APPROPRIATE DISPOSITION OF THE ACCUMULATED FUNDS WILL BE MADE AS CIRCUMSTANCES WILL REQUIRE. OUR ARRANGEMENT IS SUBJECT TO SUCH FURTHER CONSIDERATION AS MIGHT BE JUSTIFIED IN THE LIGHT OF LATER DEVELOPMENTS AFFECTING THE PRESENT SITUATION.

B-127532, NOV. 26, 1957

TO MR. DOUGLAS T. BELL, PRESIDENT, ASSOCIATED AIR TRANSPORT, INC.:

THIS HAS REFERENCE TO YOUR LETTER DATED NOVEMBER 18, 1957 (DELIVERED BY MESSENGER FOR MR. GORDON A. MOORE, OF AIR TRANSIT SERVICES, INC.), IN WHICH YOU SUBMITTED A PROPOSAL FOR THE LIQUIDATION OF CLAIMS ASSERTED BY THE UNITED STATES AGAINST ASSOCIATED AIR TRANSPORT, INC., ON THE BASIS OF PAYMENTS OF $500 PER MONTH, AND REQUESTED THE RELEASE OF FUNDS PRESENTLY BEING WITHHELD FROM THE CARRIER.

WE NOW UNDERSTAND THROUGH REPRESENTATIONS MADE BY MR. MOORS, WHO HAS PREVIOUSLY ACTED IN YOUR BEHALF, THAT THE PROPOSAL CONTAINED IN YOUR LETTER OF NOVEMBER 18TH HAS BEEN AMENDED AND THAT YOU AGREE TO PAY TO THE GENERAL ACCOUNTING OFFICE THE SUM OF $750 PER MONTH IN PARTIAL LIQUIDATION OF OUTSTANDING CLAIMS. WE FURTHER UNDERSTAND THAT YOU ALSO AGREE THAT THE FIRST PAYMENT OF $750, PLUS $6,706.16, THE AMOUNT DUE FOR GASOLINE AND OIL PURCHASED BY THE CARRIER FROM VARIOUS AIR FORCE INSTALLATIONS DURING THE PERIOD PRIOR TO MAY 1955, SHOULD BE DEDUCTED FROM THE FUNDS NOW ON HAND AND OTHERWISE DUE THE CARRIER, THE BALANCE (ABOUT $16,720) OF SUCH FUNDS TO BE RELEASED PROMPTLY TO THE CARRIER. AS YOU STATED IN YOUR LETTER, SUCH PAYMENTS ARE MADE UNDER PROTEST AND WITHOUT PREJUDICE TO YOUR RIGHTS IN CIVIL ACTION NO. 6817 M, NOW PENDING IN THE UNITED STATES DISTRICT COURT AT MIAMI, FLORIDA.

IN VIEW OF YOUR STATEMENT THAT THE WITHHOLDING OF FUNDS BY OUR OFFICE HAS SERIOUSLY CURTAILED AND JEOPARDIZED THE OPERATIONS OF THE CARRIER, AND SINCE IT APPEARS THAT THE ACCEPTANCE OF YOUR AMENDED PROPOSAL WILL NOT BE DETRIMENTAL TO THE GOVERNMENT'S INTEREST, WE ARE ISSUING INSTRUCTIONS FOR THE NECESSARY ARRANGEMENTS CONSISTENT WITH YOUR AMENDED PROPOSAL. PURSUANT TO SUCH INSTRUCTIONS, THE BALANCE OF THE FUNDS NOW HELD IN OUR EXPENSE ACCOUNT WILL BE RELEASED. THE $750 MONTHLY PAYMENTS CONTEMPLATED IN YOUR AMENDED PROPOSAL, INCLUDING THE FIRST SUCH PAYMENT, WILL BE HELD IN OUR EXPENSE ACCOUNT, PENDING THE FINAL DETERMINATION OF THE LITIGATION IN ASSOCIATED AIR TRANSPORT, INC. V. UNITED STATES, CIVIL NO. 6817-N, AT WHICH TIME APPROPRIATE DISPOSITION OF THE ACCUMULATED FUNDS WILL BE MADE AS CIRCUMSTANCES WILL REQUIRE. OUR ARRANGEMENT IS SUBJECT TO SUCH FURTHER CONSIDERATION AS MIGHT BE JUSTIFIED IN THE LIGHT OF LATER DEVELOPMENTS AFFECTING THE PRESENT SITUATION.

THE MONTHLY CHECKS IN PAYMENT OF THE $750 INSTALLMENTS SHOULD BE DRAWN IN FAVOR OF THE TREASURER OF THE UNITED STATES AND MAILED TO THE DIRECTOR, TRANSPORTATION DIVISION, UNITED STATES GENERAL ACCOUNTING OFFICE, 441 G STREET, W.W., WASHINGTON 25, D.C. ..END :