B-98575, MAR. 6, 1956

B-98575: Mar 6, 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 YOU FOR FORWARDING. WAS ISSUED BY THE WAR DEPARTMENT. THE SHIPMENT WAS REJECTED BY THE ARMY INSPECTION OFFICER BECAUSE OF ITS "INSANITARY AND UNSOUND" CONDITION. 285.11 WAS DISALLOWED. COPIES OF THE LETTER OF TRANSMITTAL OF THE CLAIM AND PERTINENT DOCUMENTS ARE ENCLOSED. THE OFFER OF COMPROMISE WAS NOT ACCOMPANIED BY A CHECK. - 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. WE WILL CERTIFY FOR PAYMENT TO THE CARRIER THE EXCESS DEDUCTED BY THE DISBURSING OFFICER BECAUSE OF THE REPORTED DAMAGE.

B-98575, MAR. 6, 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, ROCK ISLAND AND PACIFIC RAILROAD COMPANY INVOLVING AN OFFER IN COMPROMISE GROWING OUT OF DAMAGE TO GOVERNMENT PROPERTY TRANSPORTED BY THAT COMPANY. THE FOLLOWING REPORT OF THE FACTS IS PRESENTED TO YOU 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 250.0 -240-5.

THE RECORD SHOWS THAT BILL OF LADING NO. WW-3,642,273, DATED MAY 31, 1944, WAS ISSUED BY THE WAR DEPARTMENT, NOW DEPARTMENT OF THE ARMY, TO COVER THE SHIPMENT, IN CAR NO. GARX 67847, OF 29,688 POUNDS OF DRESSED TURKEYS FROM POSTVILLE, IOWA, TO DAVENPORT, IOWA. UPON ARRIVAL AT DAVENPORT, THE SHIPMENT WAS REJECTED BY THE ARMY INSPECTION OFFICER BECAUSE OF ITS "INSANITARY AND UNSOUND" CONDITION. THE ARMY DEDUCTED $12,953.24 FROM AMOUNTS OTHERWISE FOUND DUE THE CARRIER ON OTHER BILLS TO RECOVER THE VALUE OF THE REJECTED SHIPMENT. THE CARRIER, THE RECORD SHOWS, SOLD THE REJECTED SHIPMENT FOR $9,688.13 AND THEREAFTER RECLAIMED FROM THE GOVERNMENT THE SUM OF $3,285.11, BEING THE DIFFERENCE BETWEEN THE DEDUCTED VALUE ($12,953.24) OF THE PROPERTY AND THE NET AMOUNT OF $9,668.13 REALIZED IN THE SALE. AS THE RECORD IN OUR OFFICE AT THAT TIME DID NOT SHOW ANY BASIS FOR RELIEVING THE CARRIER FROM ANY OF THE LIABILITY THE CLAIM FOR $3,285.11 WAS DISALLOWED.

SINCE THE DISALLOWANCE OF ITS CLAIM THE CARRIER HAS OFFERED ADDITIONAL DATA IN SUPPORT THEREOF, AND HAS OFFERED TO COMPROMISE ITS CLAIM FOR 50 PERCENT. THIS WOULD REQUIRE REFUNDING $1,642.55 TO THE CARRIER. THE DEPARTMENT OF THE ARMY, THE ADMINISTRATIVE OFFICE, RECOMMENDS THAT THE COMPROMISE OFFER BE ACCEPTED. IN THE LIGHT OF THE PRESENT RECORD, OUR OFFICE HAS NO OBJECTION TO THE ACCEPTANCE OF THE OFFER. COPIES OF THE LETTER OF TRANSMITTAL OF THE CLAIM AND PERTINENT DOCUMENTS ARE ENCLOSED.

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 OF 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.