B-147237, APR. 11, 1962

B-147237: Apr 11, 1962

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TO THE MOUNTAIN STATES TELEPHONE AND TELEGRAPH COMPANY: REFERENCE IS MADE TO YOUR LETTERS OF AUGUST 19 AND SEPTEMBER 13. THE LICENSE FEE WAS PAID IN FULL THROUGH JANUARY 24. IT APPEARS THAT THE INITIAL SIX CIRCUITS WERE USED FOR A FIRE ALARM SERVICE TO A PRIVATE OPERATOR OF A WHERRY HOUSING AREA ON HILL AIR FORCE BASE AND THAT THE UNITED STATES ACQUIRED THE ENTIRE INTEREST OF THIS OPERATOR AS OF NOVEMBER 1. ON THE BASIS THAT THE USE OF THESE TWO CIRCUITS WAS DISCONTINUED APRIL 15. IT IS NOTED THAT THE PERIOD INVOLVED IS ACTUALLY 21.3 MONTHS. APPARENTLY THE FIRST NOTICE TO THE GOVERNMENT OF ANY DISCONTINUANCE WAS IN YOUR LETTER OF NOVEMBER 24. THAT "WE HAVE DETERMINED NOW THAT ITEMS (A) AND (B) ABOVE WERE DISCONTINUED 15 APRIL 1957.'.

B-147237, APR. 11, 1962

TO THE MOUNTAIN STATES TELEPHONE AND TELEGRAPH COMPANY:

REFERENCE IS MADE TO YOUR LETTERS OF AUGUST 19 AND SEPTEMBER 13, 1961, REQUESTING RECONSIDERATION OF THAT PORTION OF OUR SETTLEMENT DATED JULY 14, 1961, WHICH DISALLOWED YOUR CLAIM FOR $144.50, REPRESENTING RENTAL PAID FOR THE USE OF GOVERNMENT-OWNED TELEPHONE WIRES AT HILL AIR FORCE BASE, UTAH, UNDER LICENSE AGREEMENT NO. DA-/S/ 04-203-ENG-523, DATED JANUARY 25, 1954, AS AMENDED.

THE ORIGINAL LICENSE AUTHORIZED USE OF SIX CIRCUITS FOR A 5-YEAR PERIOD AT AN ANNUAL FEE OF $162, PAYABLE $40.50 QUARTERLY, IN ADVANCE. AMENDMENT NO. 1, EFFECTIVE JANUARY 25, 1955, AUTHORIZED THE USE OF FOUR ADDITIONAL CIRCUITS AND INCREASED THE ANNUAL FEE TO $423, PAYABLE $105.75 QUARTERLY, IN ADVANCE, WITH ALL OTHER TERMS AND CONDITIONS OF THE LICENSE TO REMAIN IN FULL FORCE AND EFFECT. THE LICENSE FEE WAS PAID IN FULL THROUGH JANUARY 24, 1959.

IT APPEARS THAT THE INITIAL SIX CIRCUITS WERE USED FOR A FIRE ALARM SERVICE TO A PRIVATE OPERATOR OF A WHERRY HOUSING AREA ON HILL AIR FORCE BASE AND THAT THE UNITED STATES ACQUIRED THE ENTIRE INTEREST OF THIS OPERATOR AS OF NOVEMBER 1, 1957, AND TOOK OVER THE FIRE ALARM SYSTEM. REFUND OF $199.80 REPRESENTED THE AMOUNT PAID UNDER THE LICENSE FOR THESE SIX CIRCUITS FOR THE PERIOD NOVEMBER 1, 1957, THROUGH JANUARY 24, 1959.

THE FOUR ADDITIONAL CIRCUITS SERVICED COMMERCIAL CUSTOMERS AND YOU CLAIM $144.50 AS THE FEE PAID FOR 19.3 MONTHS AT $7.50 PER MONTH FOR TWO CIRCUITS USED BY NORTHROP AIRCRAFT, INC. YOUR CLAIM PURPORTS TO COVER THE PERIOD FROM APRIL 15, 1957, THROUGH JANUARY 24, 1959, ON THE BASIS THAT THE USE OF THESE TWO CIRCUITS WAS DISCONTINUED APRIL 15, 1957. IT IS NOTED THAT THE PERIOD INVOLVED IS ACTUALLY 21.3 MONTHS.

PARAGRAPH 8 OF THE LICENSE PROVIDES AS FOLLOWS:

"THAT THIS LICENSE MAY BE TERMINATED BY THE LICENSEE AT ANY TIME BY GIVING TO THE SECRETARY OF THE AIR FORCE, THROUGH THE SAID OFFICER, AT LEAST TEN (10) DAYS' NOTICE IN WRITING; PROVIDED THAT, IN CASE OF SUCH TERMINATION, NO REFUND BY THE UNITED STATES OF ANY RENTAL THERETOFORE PAID SHALL BE MADE.'

APPARENTLY THE FIRST NOTICE TO THE GOVERNMENT OF ANY DISCONTINUANCE WAS IN YOUR LETTER OF NOVEMBER 24, 1958, STATING, WITH REFERENCES TO THE TWO LINES USED BY NORTHROP AIRCRAFT, INC., THAT "WE HAVE DETERMINED NOW THAT ITEMS (A) AND (B) ABOVE WERE DISCONTINUED 15 APRIL 1957.' THIS LETTER WAS ONLY TWO MONTHS PRIOR TO THE EXPIRATION OF THE LICENSE.

THE LICENSE PROVISION QUOTED ABOVE SETS FORTH VERY CLEARLY THE MANNER IN WHICH THE LICENSEE MAY TERMINATE THE AGREEMENT AND SPECIFICALLY PROHIBITS REFUND BY THE UNITED STATES OF ANY RENTAL THERETOFORE PAID. NO EXCEPTIONS ARE STATED AND THERE IS NO OTHER PROVISION OF THE LICENSE WHICH WOULD AUTHORIZE REFUND OF ANY PART OF THE FEE PAID FOR THE USE OF THESE LINES. ACCORDINGLY, THE DISALLOWANCE OF YOUR CLAIM MUST BE SUSTAINED.