B-127642, SEP. 12, 1956

B-127642, SEP. 12, 1956

TO GENERAL MATERIALS COMPANY:

FURTHER REFERENCE IS MADE TO YOUR ATTORNEYS' LETTER OF AUGUST 3, 1956, ACKNOWLEDGED AUGUST 10, RELATIVE TO THE OUTSTANDING INDEBTEDNESS OF THE GENERAL MATERIALS COMPANY TO THE UNITED STATES IN THE AMOUNT OF $1,074.71, AS STATED IN OUR CLAIMS DIVISION LETTER OF FEBRUARY 27, 1956, TO YOU, AND IN OUR DECISION OF AUGUST 2, 1956.

YOUR ATTORNEYS AGAIN EXPRESS THE VIEW THAT THERE IS A COMPLETE DISASSOCIATION BETWEEN YOUR FIRM AND THE EARLIER COMPANY OPERATING UNDER THE SAME NAME AND FOR THIS REASON REQUEST THE REMOVAL OF YOUR FIRM NAME FROM THE LIST OF CONTRACTORS INDEBTED TO THE UNITED STATES, SUBSTITUTING THEREFOR THE NAME OF THE W. AND M. ASSOCIATES, INC., BECAUSE OF ITS ASSUMPTION OF THE OBLIGATIONS AND ASSETS OF THE EARLIER FIRM BEARING THE SAME NAME OF YOUR FIRM. FURTHER, YOUR ATTORNEYS INDICATE THAT WHILE W. AND M. ASSOCIATES, INC., IS IN A FINANCIAL POSITION TO LIQUIDATE THE REPORTED INDEBTEDNESS, THE FIRM DENIES ANY LIABILITY IN THE MATTER. ARGUMENTS IN SUPPORT OF THIS POSITION HAVE BEEN PRESENTED. IN SUPPORT OF THE REQUEST FOR IMMEDIATE REMOVAL OF YOUR FIRM'S NAME FROM THE LIST MENTIONED ABOVE, YOUR ATTORNEYS SUGGEST THE ACCEPTANCE OF A DEPOSIT OF THE AMOUNT OF THE REPORTED INDEBTEDNESS AS SECURITY FOR PAYMENT OF ANY RECOVERY TO WHICH THE GOVERNMENT MAY BE ENTITLED.

A REEXAMINATION OF THE EVIDENCE BEFORE OUR OFFICE SUPPORTS THE CONCLUSION ANNOUNCED IN OUR DECISION OF AUGUST 2, 1956. THE LETTER OF AUGUST 3, 1956, DOES NOT PRESENT ANY NEW OR ADDITIONAL INFORMATION WHICH WOULD JUSTIFY ANY MODIFICATION OF THE PRIOR ACTION. IT IS NOT THE POLICY OR PRACTICE OF OUR OFFICE TO ACCEPT THE CONDITIONAL DEPOSIT SUGGESTED IN CIRCUMSTANCES SUCH AS PRESENTED HERE. IN THE EVENT THAT LIQUIDATION IN FULL OF THE REPORTED INDEBTEDNESS IS NOT MADE WITHIN 30 DAYS FROM THE DATE OF THIS LETTER, THE ENTIRE MATTER WILL BE PRESENTED TO THE DEPARTMENT OF JUSTICE FOR APPROPRIATE ACTION.