B-159553, JUN. 6, 1967

B-159553: Jun 6, 1967

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WAS UNSWORN AND WAS UNACCOMPANIED BY EXTRACTS FROM YOUR DRIVERS' LOGS. WE HAVE HEARD NOTHING FURTHER FROM YOU. WE HAVE POSTPONED COLLECTION SEVERAL TIMES TO ACCOMMODATE YOUR REQUESTS FOR FURTHER TIME TO OBTAIN EVIDENCE IN SUPPORT OF YOUR POSITION AND TO PREPARE SETTLEMENT PROPOSALS. THE GOVERNMENT'S CLAIM IS OVER TWO YEARS OLD. EVEN IF YOU ARE CORRECT AS TO NONLIABILITY. YOU HAVE BEEN HOLDING $1. 678.27 (THE AMOUNT YOU SAY THE GOVERNMENT IS DUE) OF THE GOVERNMENT'S MONEY FOR THAT PERIOD OF TIME. WE WILL BE COMPELLED TO INSTITUTE COLLECTION PROCEDURES 30 DAYS FROM THE DATE OF THIS LETTER.

B-159553, JUN. 6, 1967

TO MR. DON MCADEN, PRESIDENT:

ON APRIL 19, 1967, ACCOMPANIED BY YOUR ATTORNEY, CHARLES ROBINSON, AND KENNETH BARRON, ADMINISTRATIVE ASSISTANT TO HONORABLE RAY ROBERTS, MEMBER OF CONGRESS, YOU MET WITH EDWIN W. CIMOKOWSKI AND GERALDINE M. RUBAR OF MY STAFF TO DISCUSS THE GOVERNMENT'S CLAIM FOR $7,642.80 AGAINST THE DON MCADEN COMPANY.

THIS CLAIM REPRESENTS THE INVOICE VALUE OF TWO TRUCKLOADS OF LETTUCE REJECTED TO THE CARRIER AT DESTINATION IN MAY 1965 BECAUSE OF DETERIORATION IN TRANSIT. THE CLAIM FIRST CAME TO OUR ATTENTION IN JUNE 1966, WHEN HONORABLE LINDLEY BECKWORTH, FORMER MEMBER OF CONGRESS, ASKED US TO INQUIRE INTO IT BECAUSE OF YOUR APPREHENSION THAT COLLECTION ACTION- -- THEN CONTEMPLATED BY THE UNITED STATES ARMY FINANCE CENTER--- MIGHT JEOPARDIZE YOUR CREDIT STANDING PRIOR TO YOUR HAVING THE OPPORTUNITY TO SUBMIT INFORMATION SUPPORTING YOUR CONTENTION OF NONLIABILITY.

IN OUR LETTER TO YOU OF DECEMBER 20, 1966, B-159553, WE POINTED OUT THAT THE STATEMENT ABOUT THE DAMAGED LETTUCE WHICH YOU FURNISHED WITH YOUR LETTER OF AUGUST 26, 1966, WAS UNSWORN AND WAS UNACCOMPANIED BY EXTRACTS FROM YOUR DRIVERS' LOGS, BY AFFIDAVITS FROM YOUR DRIVERS OR OTHER PARTIES HAVING KNOWLEDGE OF THE MATTER, OR BY ANY OTHER SUPPORTING EVIDENCE. REJECTED AS UNREALISTIC YOUR OFFER TO SETTLE THE CLAIM BY PAYMENT OF $1,678.27, THE BALANCE OF THE AMOUNT YOU REALIZED FROM THE SALE OF THE LETTUCE AS SALVAGE, LESS UNPAID FREIGHT, TRUCK DEMURRAGE AND EXPENSES INCURRED IN MAKING THE SALE.

WE POSTPONED COLLECTION ACTION LAST SUMMER TO PERMIT YOU TO SUBMIT WHATEVER EVIDENCE YOU HAD AVAILABLE TO SUPPORT YOUR POSITION; IN OUR LETTER OF DECEMBER 20, 1966, WE ALLOWED AN ADDITIONAL 60 DAYS FOR THAT PURPOSE; WHEN THAT TIME ELAPSED, AT YOUR REQUEST WE ALLOWED THE ADDITIONAL TIME NECESSARY TO PERMIT THE APRIL 19 MEETING. AT THAT TIME WE UNDERSTOOD THAT YOU PLANNED TO SUBMIT, IN WRITING, ANOTHER PROPOSAL FOR SETTLEMENT, BUT WE HAVE HEARD NOTHING FURTHER FROM YOU.

THE GOVERNMENT'S CLAIM AROSE TWO YEARS AGO, IN MAY 1965; IT FIRST CAME TO OUR ATTENTION IN JUNE 1966; SINCE THAT TIME, AS WE SAID, WE HAVE POSTPONED COLLECTION SEVERAL TIMES TO ACCOMMODATE YOUR REQUESTS FOR FURTHER TIME TO OBTAIN EVIDENCE IN SUPPORT OF YOUR POSITION AND TO PREPARE SETTLEMENT PROPOSALS. IN FACT, NO EVIDENCE HAS BEEN SUBMITTED AND ONLY ONE UNACCEPTABLE OFFER OF SETTLEMENT HAS BEEN MADE. IN THIS SITUATION PROPER REGARD FOR THE GOVERNMENT'S INTEREST REQUIRES THAT WE TAKE COLLECTION ACTION PROMPTLY. AS INDICATED, THE GOVERNMENT'S CLAIM IS OVER TWO YEARS OLD, AND, EVEN IF YOU ARE CORRECT AS TO NONLIABILITY, YOU HAVE BEEN HOLDING $1,678.27 (THE AMOUNT YOU SAY THE GOVERNMENT IS DUE) OF THE GOVERNMENT'S MONEY FOR THAT PERIOD OF TIME.

ACCORDINGLY, UNLESS WE RECEIVE PAYMENT OF THIS CLAIM FOR $7,642.80 IN FULL OR A REASONABLE SETTLEMENT OFFER, PREFERABLY ACCOMPANIED BY SUPPORTING EVIDENCE OF THE KIND DESCRIBED IN OUR LETTER OF DECEMBER 20, 1966, WE WILL BE COMPELLED TO INSTITUTE COLLECTION PROCEDURES 30 DAYS FROM THE DATE OF THIS LETTER.

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