B-141421, FEB. 29, 1960

B-141421, FEB. 29, 1960

TO JONES MOTOR CO., INC.:

REFERENCE IS MADE TO YOUR LETTERS OF JANUARY 22, 1960, AND DECEMBER 1, 1959, WHICH, IN EFFECT, REQUEST OUR REVIEW OF SEVERAL SETTLEMENT CERTIFICATES ISSUED IN 1959, WHEREBY THE AMOUNTS FOUND ALLOWABLE ON CERTAIN OF YOUR SUPPLEMENTAL BILLS WERE WITHHELD AND APPLIED IN PARTIAL SATISFACTION OF YOUR LIABILITY FOR LOSS IN TRANSIT AMOUNTING TO $520. THE SUPPLEMENTAL BILLS YOU NOW SUBMIT ARE NUMBERED 12-1 ($19.85), 12-2 ($56), 12-3 ($16.67) AND 12-4 ($262.53). THESE BILLS, TOTALING $355.05, WERE FILED WITH OUR OFFICE TO RECOVER AMOUNTS WHICH YOU BELIEVE WERE DEDUCTED "BECAUSE OF SOME ALLEGED CLAIMS ON HANDLING OF INCENDIARY BOMBS.' THUS, IT SEEMS TO BE YOUR UNDERSTANDING THAT OUR CLAIM FOR $520 (TK-643851) RELATES TO OVERPAYMENTS IN FREIGHT CHARGES PAID TO THE CARRIER ON SHIPMENTS OF SO-CALLED INCENDIARY BOMBS AND THAT THE AMOUNTS YOU CLAIM BY YOUR SUPPLEMENTAL BILLS WERE COLLECTED BY US TO SATISFY THOSE OVERPAYMENTS. WE HAVE ASSEMBLED THE PAPERS PERTAINING TO THIS TRANSACTION AND FIND THAT NONE OF THEM RELATE IN ANY WAY TO THE SO-CALLED INCENDIARY BOMB QUESTION.

OUR CLAIM FOR $520 REPRESENTS THE VALUE OF ONE CARTON OF SCIENTIFIC INSTRUMENTS, WEIGHING 18 POUNDS, WHICH WAS LOST FROM A SHIPMENT OF MISCELLANEOUS FREIGHT TRANSPORTED FOR THE DEPARTMENT OF THE AIR FORCE, FROM MARIETTA, PENNSYLVANIA, TO BROOKLYN, NEW YORK, UNDER GOVERNMENT BILL OF LADING AF-5735905, IN NOVEMBER 1955. THE DESTINATION OR DELIVERING CARRIER OF THE SHIPMENT, PETERS TRANSPORTATION COMPANY, THEN LOCATED IN YORK, PENNSYLVANIA, WAS FOUND BY THE AIR FORCE TO BE LIABLE FOR THE VALUE OF THE LOSS AND, IN FEBRUARY 1957, THAT CARRIER (PETERS TRANSPORTATION COMPANY) WAS REQUESTED BY THE AIR FORCE TO REFUND THE VALUE OF THE LOSS. IN THE ABSENCE OF A REFUND BY THE CARRIER THE CLAIM WAS REFERRED FOR COLLECTION TO OUR TRANSPORTATION DIVISION, WHERE IT WAS ASSIGNED CLAIM NO. TK-643851.

ALTHOUGH THE PETERS TRANSPORTATION COMPANY IS LIABLE FOR THE LOSS, THIS CLAIM HAS BEEN PRESENTED TO YOU FOR PAYMENT BECAUSE YOU HAD ADVISED OUR TRANSPORTATION DIVISION, IN A LETTER DATED OCTOBER 18, 1957, THAT "JONES MOTOR CO., INC. ASSUMED ALL OF THE ASSETS AND LIABILITIES OF PETERS TRANSPORTATION COMPANY AT THE TIME THAT COMPANY WAS MERGED INTO JONES ON MARCH 8, 1957.'

AFTER EXAMINING THE CLAIM AS PRESENTED TO US BY THE AIR FORCE, OUR TRANSPORTATION DIVISION, IN A LETTER DATED JUNE 18, 1958, TO YOU, REQUESTED PAYMENT OF THE CLAIM. THE REQUEST DID NOT MENTION THAT THE LOSS CLAIM INVOLVED PETERS TRANSPORTATION COMPANY, AND, IN A LETTER DATED JULY 8, 1958, YOU REQUESTED COPIES OF THE PAPERS SUPPORTING THE CLAIM. THESE WERE SENT TO YOU WITH A LETTER DATED SEPTEMBER 25, 1958. IN YOUR LETTER OF JANUARY 30, 1959, SIGNED BY R. R. HOLLENBACH, TRAFFIC DEPARTMENT, TO THE COLLECTIONS SECTION OF OUR TRANSPORTATION DIVISION, YOU STATED THAT YOU HAD NO RECORD OF RECEIVING THOSE PAPERS AND ON FEBRUARY 19, 1959, YOU WERE FURNISHED ANOTHER SET OF COPIES OF PAPERS SUPPORTING THE LOSS CLAIM. THOSE PAPERS WOULD SEEM TO BE SUFFICIENT TO PUT YOU ON NOTICE OF THE NATURE OF THE CLAIM AND OF YOUR LIABILITY FOR ITS PAYMENT.

BEGINNING IN JUNE 1959, SINCE YOU DID NOT VOLUNTARILY DISCHARGE YOUR LIABILITY FOR THE LOSS, WE INITIATED DEDUCTION PROCEDURES FOR THE COLLECTION OF THE AMOUNT CLAIMED. OUR RECORDS INDICATE THAT THE CLAIM FOR $520 WAS COLLECTED BY SETOFF OF THE CHARGES ALLOWED YOU ON SIX OF YOUR SUPPLEMENTAL BILLS, AS FOLLOWS:

CHART

AMOUNT CLAIMED AMOUNT APPLIED TO YOUR BILL NO. OUR CLAIM NO. AND ALLOWED THE LOSS CLAIM

12-34 TK-668643 $ 60.53 $ 60.53

11-11 TK-665912 262.53 262.53

11- 9 TK-667386 56.00 56.00

2-19 TK-669891 16.67 16.67

6-11 TK-67634719.85 19.85

11-37 TK-668189 575.28 104.42

TOTAL $520.00

SIX FORMS ENTITLED "NOTICE OF SETTLEMENT OF CLAIM," WERE SENT TO YOU AS NOTICE OF THE ALLOWANCE OF THE CLAIMS AND OF THE PARTIAL ADJUSTMENT BY SETOFF MADE IN EACH INSTANCE FOR THE INDICATED LOSS. EACH OF THESE FORMS MADE REFERENCE TO OUR CLAIM NO. TK-643851, WHICH, YOU HAD PREVIOUSLY BEEN INFORMED, WAS ASSIGNED TO THE $520 LOSS MATTER.

AS REFLECTED IN THE ABOVE STATEMENT, YOUR PRESENT SUPPLEMENTAL BILLS REPRESENT RECLAIMS OF PREVIOUSLY CLAIMED AMOUNTS WHICH WERE ALLOWED AND USED BY OUR OFFICE IN THE LIQUIDATION OF THE LOSS CLAIM.

THIS EXPLANATION OF THE HANDLING AND COLLECTION OF OUR CLAIM FOR $520 SHOULD ENABLE YOU TO ASSEMBLE AND CORRELATE YOUR RECORDS CONCERNING THE TRANSACTION. IF YOU DESIRE A REVIEW OF THE MERITS OF THE LOSS CLAIM, WE WILL ENTERTAIN YOUR REQUEST FOR SUCH REVIEW WHICH SHOULD SET FORTH AS FULLY AS POSSIBLE YOUR REASONS FOR QUESTIONING THE PROPRIETY OF THE GOVERNMENT'S POSITION.

YOUR SUPPLEMENTAL BILLS WILL BE HELD IN OUR TRANSPORTATION DIVISION FOR THE TIME BEING AS REQUIRING NO FURTHER ACTION. AS INDICATED, THE SUBJECT MATTER HAS NO CONNECTION WITH THE INCENDIARY BOMB QUESTION. IF YOU HAVE ANY CLAIMS CONCERNING THAT QUESTION, THEY MAY BE PRESENTED TO OUR TRANSPORTATION DIVISION WITH PROPER IDENTIFICATION OF THE SHIPMENTS AND THEY WILL BE GIVEN CONSIDERATION.