B-131358, JUL. 8, 1957

B-131358, JUL. 8, 1957

TO HONORABLE RAYMOND BLATTENBERGER, PUBLIC PRINTER, GOVERNMENT PRINTING OFFICE:

FURTHER REFERENCE IS MADE TO A LETTER DATED APRIL 3, 1957, WITH ENCLOSURES, FROM THE ACTING PUBLIC PRINTER, REQUESTING A DECISION CONCERNING THE ACCEPTANCE OF THE SUM OF $9,246.72, DETERMINED BY YOUR AGENCY TO BE DUE THE UNITED STATES FROM RICHTER MCCALL AND COMPANY AS LIQUIDATED DAMAGES UNDER CERTAIN ORDERS FOR PRINTING PERFORMED BY THAT FIRM DURING THE PAST SEVERAL YEARS.

BY LETTER OF APRIL 23, 1957, WE ADVISED YOU THAT IT SEEMED TO BE IN THE BEST INTERESTS OF THE UNITED STATES TO ACCEPT PAYMENT OF THE AMOUNT OF $9,246.72, WITH THE UNDERSTANDING THAT THE ACCEPTANCE OF THAT AMOUNT WOULD NOT PREJUDICE THE GOVERNMENT'S RIGHT TO COLLECT ANY ADDITIONAL AMOUNTS DETERMINED TO BE DUE. ALSO, WE STATED THAT WE WERE RETAINING THE PAPERS PENDING CONSIDERATION OF THE DESIRABILITY OF ANY FURTHER ACTION.

IT APPEARS FROM THE LETTER OF APRIL 3, 1957, THAT THE INVESTIGATION CONDUCTED BY YOUR AGENCY WAS BASED UPON A LETTER DATED OCTOBER 15, 1956, FROM MR. JOHN KEELEY, 107 BROOK ROAD, PROSPECT HEIGHTS, ILLINOIS, WHO STATED, IN EFFECT, THAT THE CONTRACTOR HAD BACK DATED BILLS OF LADING IN ORDER TO AVOID A PENALTY, AND THAT---

"* * * THE MAIN REASON FOR MY BEING FIRED WAS NONCOOPERATION ON MY PART TO CONTINUE TO CHEAT THE GOV. PRINTING OFFICE IN SEVERAL WAYS IN REGARD TO PRINTING BEING DONE FOR YOU BY RICHTER MCCALL, AND MCGREGOR CARBON FORMS, WHO IS THEIR REPRESENTATIVE IN WASH. D.C.'

SINCE THE QUOTED STATEMENT SEEMED TO SUGGEST POSSIBLE COLLUSION BETWEEN MR. KEELEY AND OTHER EMPLOYEES OR OFFICIALS OF THE CONTRACTOR, AND SINCE MR. KEELEY HAD INDICATED HIS WILLINGNESS TO FULLY DISCLOSE THE FACTS RELATING TO THE MATTER, INVESTIGATORS OF OUR OFFICE WERE DIRECTED TO CONTACT MR. KEELEY FOR FURTHER DETAILS, PARTICULARLY AS TO WHETHER HE WAS REQUESTED OR DIRECTED BY HIGHER OFFICIALS OF THE CONTRACTING COMPANY TO FALSIFY THE BILL OF LADING DATES, OR WHETHER, AS CLAIMED BY THE COMPANY, THE ERRONEOUS DATES WERE DESIGNED TO COVER UP DELAYS IN THE PLANT FOR WHICH MR. KEELEY WAS RESPONSIBLE. ATTENTION WAS ALSO INVITED TO A STATEMENT BY MR. KEELEY TO THE EFFECT THAT HE HAD "PROOF" OF OTHER WAYS IN WHICH THE CONTRACTOR CHEATED THE GOVERNMENT.

THERE IS ENCLOSED FOR YOUR INFORMATION A COPY OF A SWORN STATEMENT BY MR. KEELEY WHICH IS SELF-EXPLANATORY, YOUR ATTENTION BEING INVITED TO THE STATEMENTS ON PAGE SIX IN WHICH IN REPLY TO A QUESTION AS TO WHETHER HE KNEW OF OTHER WAYS IN WHICH RICHTER MCCALL AND COMPANY CHEATED THE GOVERNMENT, MR. KEELEY STATED---

"OTHER WAYS IN WHICH THE GOVERNMENT WOULD BE CHEATED ON PRINTING WOULD BE BY A COMPANY NOT FOLLOWING THE SPECIFICATIONS. ONE IMPORTANT WAY WOULD BE NOT TO WRAP OR PACKAGE THE PRINTING THE WAY IT SHOULD BE OR THE WAY IT IS CALLED FOR. * * *"

MR. KEELEY ALSO MADE CERTAIN STATEMENTS REGARDING SHORTAGE IN SHIPMENTS TO WHICH IT IS DESIRED TO INVITE YOUR ATTENTION, PARTICULARLY THE CHARGE THAT THE SHIPMENTS IN DECEMBER 1955 AND JANUARY 1956 OF A UNITED STATES SAVINGS BOND FORM ENTITLED "FOR THE BIG THINGS IN YOUR LIFE," CONSISTING OF THE REQUIRED NUMBER OF PACKAGES, WERE APPROXIMATELY A MILLION COPIES SHORT DUE TO INCLUDING FEWER FORMS IN THE INDIVIDUAL PACKAGES THAN INDICATED.

INASMUCH AS MR. KEELEY APPARENTLY IS UNABLE TO OFFER ANY PROOF IN SUPPORT OF HIS ALLEGATIONS, WE DO NOT FEEL THAT FURTHER CHARGES AGAINST RICHTER MCCALL WOULD BE JUSTIFIED AT THIS TIME. WE WOULD, HOWEVER, APPRECIATE A REPORT AS TO THE AVAILABLE RECORDS OF THE SAVINGS BOND FORM CONTRACT AND WHETHER ANY CHECK OF THE QUANTITY DELIVERED WOULD NOW BE POSSIBLE.