B-123785, JAN. 4, 1957

B-123785, JAN. 4, 1957

TO BILLMOR SPRUCE MILLS, LTD.:

REFERENCE IS MADE TO YOUR LETTER OF OCTOBER 27, 1956, RELATIVE TO YOUR CLAIM AGAINST PACIFIC MILLS, LTD., FOR $11,423.15, REPRESENTING THE SALES PRICE OF A QUANTITY OF LOGS DELIVERED TO THE LATTER COMPANY. YOU STATE THAT THE OUTSTANDING BALANCE IS COMPOSED OF TWO ITEMS, NAMELY $8,578.28, FOR GOVERNMENT-OWNED LOGS DELIVERED TO YOU BY THE DEPARTMENT OF THE ARMY, CORPS OF ENGINEERS, ALASKA DEPARTMENT, WHICH YOU SOLD TO PACIFIC MILLS, LTD., AND $2,844.87, BEING THE VALUE OF A BOOM OF PULP LOGS IDENTIFIED AS K.B. 10, WHICH YOU HAD PURCHASED FROM FRED WOODS AND SENT TO PACIFIC MILLS, LTD., IN THE SAME TOW WITH THE GOVERNMENT-OWNED LOGS. IN ORDER TO SETTLE THE INVOLVED ACCOUNTS YOU REQUEST THAT PACIFIC MILLS, LTD., BE AUTHORIZED TO RELEASE TO YOU THE AMOUNT REPRESENTING THE PURCHASE PRICE OF THE LOGS WHICH FORMERLY WERE THE PROPERTY OF THE GOVERNMENT.

IN CERTIFICATE OF SETTLEMENT NO. 2267763, DATED DECEMBER 13, 1955, PAYMENT OF $27,320.87 WAS AUTHORIZED IN FULL AND FINAL SETTLEMENT OF YOUR CLAIM FOR DAMAGES ARISING UNDER LEASE NO. W-2666-ENG-123, COVERING YOUR SAWMILL PROPERTY AND IMPROVEMENTS LOCATED NEAR PRINCE RUPERT, BRITISH COLUMBIA. THE SETTLEMENT TOOK INTO CONSIDERATION THE UNAUTHORIZED TRANSFER OF ALL OF THE GOVERNMENT-OWNED LOGS LOCATED AT YOUR MILL SITE AT THE EXPIRATION OF THE LEASE. THE ALLOWANCE OF $43,996 IN PAYMENT OF THE TOTAL AMOUNT FOUND TO BE LEGALLY DUE UNDER THE CONTRACT, WAS REDUCED ONLY BY THE SUM OF $16,675.13, WHICH REPRESENTS THAT PORTION OF THE SALES PRICE OF THE ENTIRE QUANTITY OF GOVERNMENT-OWNED LOGS WHICH WAS PAID TO YOU BY THE BUYERS AND RETAINED BY YOU.

SINCE THE BALANCE OF $8,578.28, WAS OMITTED FROM THE FOREGOING SETTLEMENT AND TREATED AS AN INDEBTEDNESS DUE THE UNITED STATES, DEMAND FOR THIS BALANCE WAS MADE UPON CROWN ZELLERBACH CANADA, LTD., FORMERLY KNOWN AS PACIFIC MILLS, LTD. IN RESPONSE THE COMPANY CLOSED THAT ACCOUNT WITH THE DELIVERY TO US OF ITS CHECK IN THE FULL AMOUNT DUE, AND THEREFORE WE ARE UNABLE TO COMPLY WITH YOUR REQUEST. OF COURSE, LIQUIDATION OF THE MATTER AS INDICATED IN NO WAY AFFECTS YOUR RIGHT TO DEMAND PAYMENT FROM CROWN ZELLERBACH CANADA, LTD., FOR THE SUM OF $2,844.87, STATED TO BE THE AMOUNT DUE YOU FOR THE PULP LOGS WHICH YOU OBTAINED FROM FRED WOODS AND LATER SOLD TO THE FORMER COMPANY, ALONG WITH THE GOVERNMENT-OWNED LOGS.

THIS REPLY HAS BEEN WITHHELD PURSUANT TO THE INFORMAL REQUEST OF YOUR ATTORNEY, MR. HAROLD LE VANDER, PENDING RECEIPT OF AN APPEAL BY HIM FOR RECONSIDERATION OF THE ACTION TAKEN IN OUR DECISION OF AUGUST 24, 1956, B- 123785. THAT APPEAL AND ENCLOSURES HAVE BEEN RECEIVED WITH HIS COVERING LETTER DATED DECEMBER 14, 1956; HOWEVER, SINCE THE SUBJECT MATTER THEREOF IS UNRELATED TO THE SPECIFIC REQUEST CONTAINED IN YOUR LETTER OF OCTOBER 27, 1956, AND OUR ABOVE REPLY, SUCH APPEAL WILL BE TREATED SEPARATELY. DECISION THEREON WILL BE RENDERED AT THE EARLIEST PRACTICABLE DATE.