B-121198, AUG. 1, 1955

B-121198: Aug 1, 1955

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LTD.: REFERENCE IS MADE TO YOUR LETTER OF MAY 12. YOUR CLAIM AS PRESENTED IS BASED UPON THE DIFFERENCE BETWEEN AGGREGATE REVENUES RECEIVED DURING THE PERIOD INVOLVED AND ANTICIPATED REVENUES AS CALCULATED FROM PRIOR RESERVATIONS WHICH WERE CANCELED BY THE HOTEL IN ANTICIPATION OF THE CONFERENCE. REPRESENTATIVES OF THE UNITED STATES MADE A SURVEY OF THE LOCAL SITUATION AS TO ACCOMMODATIONS DURING WHICH TIME TALKS WERE HAD WITH THE MANAGER OF YOUR HOTEL. YOUR MANAGER WAS THEN ORALLY ADVISED THAT THE UNITED STATES WOULD REQUEST THE RESERVATION OF 24 ROOMS FOR ITS USE FOR THE MEETING. THE ARRANGEMENTS FOR THE MEETING WERE FIRM AND THE AMERICAN CONSUL AT HAMILTON WAS THEN DIRECTED TO ENGAGE ROOMS AT YOUR HOTEL AS FOLLOWS: TABLE 4 ROOMS.

B-121198, AUG. 1, 1955

TO BERMUDA DEVELOPMENT COMPANY, LTD.:

REFERENCE IS MADE TO YOUR LETTER OF MAY 12, 1955, REQUESTING REVIEW OF SETTLEMENT DATED FEBRUARY 14, 1955, WHICH ALLOWED $3,789.50 IN FULL AND FINAL SETTLEMENT OF THE CLAIM OF THE CASTLE HARBOUR HOTEL FOR $9,472.52 FOR ALLEGED LOSS OF REVENUES DUE TO CANCELLATION OF ROOM RESERVATIONS BY THE DEPARTMENT OF STATE BY REASON OF THE POSTPONEMENT OF THE THREE POWER TALKS ORIGINALLY SCHEDULED TO BE

HELD IN BERMUDA DURING JUNE AND JULY 1953.

YOUR CLAIM AS PRESENTED IS BASED UPON THE DIFFERENCE BETWEEN AGGREGATE REVENUES RECEIVED DURING THE PERIOD INVOLVED AND ANTICIPATED REVENUES AS CALCULATED FROM PRIOR RESERVATIONS WHICH WERE CANCELED BY THE HOTEL IN ANTICIPATION OF THE CONFERENCE. THE AMOUNT OF THE CHARGE APPEARS TO BE BASED ON A PRORATING AMONG THE GOVERNMENTS OF THE UNITED STATES, UNITED KINGDOM, FRANCE, AND BERMUDA OF TOTAL CHARGES OF $33,575.50 FOR ROOMS AND $6,808.74 FOR LESS OF OTHER REVENUE.

THE REPORT OF THE DEPARTMENT OF STATE CONCERNING YOUR CLAIM SHOWS THAT ON OR ABOUT JUNE 9 AND 19, 1953, REPRESENTATIVES OF THE UNITED STATES MADE A SURVEY OF THE LOCAL SITUATION AS TO ACCOMMODATIONS DURING WHICH TIME TALKS WERE HAD WITH THE MANAGER OF YOUR HOTEL. AS A RESULT, YOUR MANAGER WAS THEN ORALLY ADVISED THAT THE UNITED STATES WOULD REQUEST THE RESERVATION OF 24 ROOMS FOR ITS USE FOR THE MEETING. SEVERAL DAYS THEREAFTER, ON JUNE 24, THE ARRANGEMENTS FOR THE MEETING WERE FIRM AND THE AMERICAN CONSUL AT HAMILTON WAS THEN DIRECTED TO ENGAGE ROOMS AT YOUR HOTEL AS FOLLOWS:

TABLE

4 ROOMS, JUNE 24 THROUGH JULY 13

8 ROOMS, JULY 5 THROUGH 13

3 ROOMS, JULY 5 THROUGH 12

9 ROOMS, JULY 7 THROUGH 12

THE FOUR ROOMS FIRST ABOVE REFERRED TO WERE OCCUPIED DURING THE PERIOD JUNE 24 TO 30--- TWO FOR THE WHOLE PERIOD AND TWO FOR PART OF THE PERIOD-- - AND AN ADDITIONAL ROOM, NO. 350, WAS OCCUPIED FOR THE PERIOD JUNE 26 TO 30. YOU WERE PAID $583 FOR THE PERIOD OF SUCH OCCUPANCY. ON JUNE 27, PUBLIC ANNOUNCEMENT--- WHICH WAS GIVEN WIDE PUBLICITY--- WAS MADE THAT THE MEETING HAD BEEN INDEFINITELY POSTPONED. SUCH POSTPONEMENT RESULTED IN THE CANCELLATION OF THE RESERVATION.

IT APPEARS THAT THE RESERVATIONS MADE FOR THE UNITED STATES FOR THE FOUR ROOMS FOR THE PERIOD JUNE 24 TO 30 PLUS THE ADDITIONAL ROOM OCCUPIED JUNE 26 TO 30 AMOUNTED TO 66 GUEST DAYS, AND THAT THE RESERVATIONS FOR THE REMAINING ROOMS FROM JULY 5 AND 7 TO THE DATES SHOWN AMOUNTED TO 404 GUEST DAYS, OR A TOTAL OF 470 GUEST DAYS. HOWEVER, IT APPEARS FROM YOUR CLAIM THAT, WHERE POSSIBLE, RESERVATIONS BY OTHERS WHICH HAD PREVIOUSLY BEEN CANCELLED BY YOU WERE REINSTATED AND FOR THAT REASON THE PERIOD JULY 1 TO 7 WAS EXCLUDED BY YOU FROM YOUR CLAIM, NO LOSS OF REVENUE HAVING BEEN SUFFERED DURING THAT PERIOD. THE RESERVATIONS MADE BY THE GOVERNMENT OF THE UNITED STATES FOR USE WITHIN THAT PERIOD--- WHICH WERE THE RESERVATIONS FOR JULY 5 THROUGH 7--- AMOUNTED TO 140 GUEST DAYS. SINCE IT APPEARED THAT YOUR BUSINESS WAS NORMAL FOR THOSE DAYS, 140 GUEST DAYS WERE DEDUCTED FROM THE 470 GUEST DAYS REFERRED TO, THUS LEAVING 330 GUEST DAYS LOST BECAUSE OF THE RESERVATIONS MADE BY THE UNITED STATES. IN THE SETTLEMENT OF YOUR CLAIM YOU WERE, THEREFORE, ALLOWED FOR 330 GUEST DAYS AT $13.25 A DAY, AMOUNTING TO $4,372.50, LESS $583 PREVIOUSLY PAID YOU. IT IS THUS APPARENT THAT YOU WERE ALLOWED FOR THE FULL PERIOD OF THE RESERVATIONS MADE BY THE UNITED STATES EXCEPT, FOR THE REASONS STATED, THOSE FROM JULY 5 THROUGH 7.

THE CONTENTION IN YOUR LETTER OF FEBRUARY 17, 1955, THAT THE BASIS UPON WHICH YOUR CHARGE IS PRESENTED, THAT IS, PRORATING AMONG THE SEVERAL GOVERNMENTS CONCERNED, WAS AGREED UPON BY REPRESENTATIVES OF THOSE GOVERNMENTS, IS NOT CONFIRMED BY THE DEPARTMENT OF STATE, NOR IS THERE ANY INDICATION THAT IN MAKING RESERVATIONS FOR ITS REQUIREMENTS THE UNITED STATES UNDERTOOK TO BE RESPONSIBLE FOR OTHER RESERVATIONS, OR REQUIRED THE CANCELLATION OF RESERVATIONS OF ANY OTHER SPACE. WHILE ORDINARILY THE CANCELLATION OF HOTEL RESERVATIONS WITHIN A REASONABLE TIME PRIOR TO THEIR DATES INVOLVES NO LIABILITY FOR PAYMENT THEREFOR, IN VIEW OF THE CHARACTER OF YOUR BUSINESS--- WHICH, IT IS UNDERSTOOD, INVOLVES GENERALLY RESERVATIONS MADE SOME TIME IN ADVANCE AND USUALLY COORDINATED WITH STEAMSHIP OR AIRLINE RESERVATIONS--- YOU WERE, AS ABOVE INDICATED, ALLOWED FOR THE FULL TIME OF THE RESERVATIONS EXCEPT FOR THE PERIOD JULY 5 THROUGH 7 WHEN NO LOSS WAS SUSTAINED.

THAT PART OF YOUR CLAIM--- APPROXIMATELY $1,600--- REPRESENTING LOSS OF ANTICIPATED PROFITS FROM LIQUOR SALES AND MISCELLANEOUS REVENUE DURING THE PERIOD INVOLVED IS NOT SATISFACTORILY ESTABLISHED BY THE RECORD AND IS TOO REMOTE AND SPECULATIVE TO JUSTIFY ALLOWANCE IN ANY EVENT.

IT IS FELT THAT THE ALLOWANCE MADE OF THE FULL PRICE OF ALL ROOMS RESERVED FOR THE ENTIRE PERIOD INVOLVED, WITH THE EXCEPTION NOTED, WAS LIBERAL AND FULLY SATISFIES THE MAXIMUM LEGAL LIABILITY OF THE UNITED STATES. WE TRUST THAT, UPON YOUR FURTHER CONSIDERATION OF THE MATTER IN THE LIGHT OF THIS EXPLANATION, YOU WILL AGREE THAT THERE IS NO BASIS FOR ANY ADDITIONAL ALLOWANCE.

ACCORDINGLY, THE SETTLEMENT ACTION HERETOFORE TAKEN IN THE MATTER MUST BE AND IS SUSTAINED.