B-127337, MAY 16, 1956

B-127337: May 16, 1956

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INC.: REFERENCE IS MADE TO LETTER OF MAY 5. 000 WILL BE REMITTED PROMPTLY. THE BALANCE WILL BE PAID IN TWO EQUAL INSTALLMENTS EXTENDING OVER THE NEXT TWO SUCCEEDING YEARS. IS ACCEPTABLE TO US. THE SECRETARY OF THE INTERIOR IS BEING ADVISED TODAY OF THE ACCEPTANCE OF YOUR OFFER. YOUR ATTENTION IS INVITED TO THE PROVISIONS OF THE BUDGET AND ACCOUNTING ACT OF JUNE 21. SINCE THERE WAS NO QUESTION AS TO THE VALIDITY OR THE AMOUNT OF THE UNPAID CLAIM IN THIS CASE. IT IS OUR ESTABLISHED POLICY NOT TO RESORT TO COURT ACTION IN THE SETTLEMENT OF ACCOUNTS DUE THE UNITED STATES IF THE MATTER CAN BE SETTLED SATISFACTORILY UNDER OUR STATUTORY AUTHORITY.

B-127337, MAY 16, 1956

TO BURKE-DIVIDE ELECTRIC COOPERATIVE, INC.:

REFERENCE IS MADE TO LETTER OF MAY 5, 1956, WRITTEN IN YOUR BEHALF BY MR. B. L. WILSON, ATTORNEY, RELATIVE TO YOUR INDEBTEDNESS TO THE UNITED STATES, IN THE SUM OF $5,930.10, REPRESENTING AN ADDITIONAL AMOUNT DUE THE BUREAU OF RECLAMATION FOR ELECTRIC POWER FURNISHED YOU UNDER CONTRACT NO. 179R-1597.

MR. WILSON ADVISES THAT HE HAS BEEN AUTHORIZED BY YOUR BOARD OF DIRECTORS TO OFFER, IN LIEU OF IMMEDIATE PAYMENT IN FULL, A PLAN OF LIQUIDATION WHEREBY THE SUM $3,000 WILL BE REMITTED PROMPTLY, AND THE BALANCE WILL BE PAID IN TWO EQUAL INSTALLMENTS EXTENDING OVER THE NEXT TWO SUCCEEDING YEARS. THE METHOD OF SETTLEMENT OF THE INDEBTEDNESS, AS PROPOSED BY YOUR ATTORNEY, IS ACCEPTABLE TO US, AND THE SECRETARY OF THE INTERIOR IS BEING ADVISED TODAY OF THE ACCEPTANCE OF YOUR OFFER.

WITH RESPECT TO THE REQUEST OF YOUR ATTORNEY FOR AN EXPLANATION AS TO THE ACTION TAKEN BY US IN CONNECTION WITH A CONTEMPLATED CONTRACT BETWEEN YOUR COOPERATIVE AND THE BUREAU OF RECLAMATION, YOUR ATTENTION IS INVITED TO THE PROVISIONS OF THE BUDGET AND ACCOUNTING ACT OF JUNE 21, 1921, 42 STAT. 23, AS AMENDED, WHICH VESTS IN THE GENERAL ACCOUNTING OFFICE THE DUTY AND AUTHORITY TO SETTLE AND ADJUST ALL CLAIMS BY AND AGAINST THE UNITED STATES, NOT OTHERWISE PROVIDED FOR BY LAW. IN ACCORDANCE WITH SECTION 305 OF THE CITED ACT, THIS OFFICE HAS EXERCISED SUCH AUTHORITY TO EFFECT COLLECTION OF ITS DEMANDS IN THE SAME MANNER, AND TO THE SAME EXTENT, AS DO PRIVATE INDIVIDUALS OR CORPORATIONS IN RESORTING TO THEIR RIGHTS AVAILABLE UNDER THE LAW IN THE CONDUCT OF THEIR BUSINESS AFFAIRS. SINCE THERE WAS NO QUESTION AS TO THE VALIDITY OR THE AMOUNT OF THE UNPAID CLAIM IN THIS CASE, WE FELT JUSTIFIED IN EXPECTING PAYMENT IN FULL, AND IN ATTAINING SUCH SETTLEMENT BY LAWFUL AND PROPER MEANS WITHOUT THE NECESSITY OF LITIGATION WHICH WOULD BE COSTLY TO THE UNITED STATES.

IT IS OUR ESTABLISHED POLICY NOT TO RESORT TO COURT ACTION IN THE SETTLEMENT OF ACCOUNTS DUE THE UNITED STATES IF THE MATTER CAN BE SETTLED SATISFACTORILY UNDER OUR STATUTORY AUTHORITY.

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