B-164582, MAR. 12, 1969

B-164582, MAR. 12, 1969

TO PLEASANT WESTERN LUMBER INC.:

REFERENCE IS MADE TO YOUR LETTER OF FEBRUARY 20, 1969, REGARDING YOUR CLAIM FOR LOSSES ALLEGED TO HAVE BEEN SUSTAINED IN PERFORMING TIMBER SALE CONTRACT NO. 12-11-092-29 WITH THE FOREST SERVICE, DEPARTMENT OF AGRICULTURE, IN THE TOWER MOUNTAIN AREA.

IN YOUR ORIGINAL CLAIM SUBMITTED TO US YOU STATED THAT YOUR LOSSES WERE $14,680.02. IN YOUR PRESENT LETTER OF FEBRUARY 20, YOU STATE THAT YOUR LOSSES NOW TOTAL OVER $17,000. AT THE TIME OUR REPRESENTATIVES EXAMINED THE FOREST SERVICE RECORDS ON THE TOWER MOUNTAIN SALE IT WAS DETERMINED THAT AS OF JULY 31, 1968, YOU HAD BEEN CHARGED ABOUT $27,000 FOR THE TIMBER CUT, WHEREAS, HAD YOU PAID THE $4 RATE, THE CHARGE TO YOU WOULD HAVE BEEN $15,000. THUS, AT THAT TIME YOUR CLAIM WAS $12,000.

WE HAVE GIVEN FURTHER CAREFUL AND THOROUGH CONSIDERATION TO THE ENTIRE MATTER, INCLUDING YOUR ADDITIONAL STATEMENTS CONTAINED IN YOUR LETTER OF FEBRUARY 20, 1969. HOWEVER, FOR THE REASONS STATED IN OUR AUDIT REPORT OF OCTOBER 16, 1968, WE SEE NO LEGAL BASIS FOR PAYMENT OF ANY PART OF YOUR CLAIM. HOWEVER, WE THINK THAT YOUR CLAIM DOES CONTAIN SOME ELEMENTS OF EQUITY. IN VIEW THEREOF, WE WOULD BE WILLING TO REPORT THE MATTER TO THE CONGRESS FOR CONSIDERATION UNDER THE ACT OF APRIL 10, 1928, 45 STAT. 413, 31 U.S.C. 236, TOGETHER WITH A PROPOSED BILL TO AUTHORIZE PAYMENT OF YOUR CLAIM AND A FAVORABLE RECOMMENDATION THEREON, UPON RECEIPT OF ADVICE FROM YOU THAT YOU WILL ACCEPT THE SUM OF $12,000 IN FULL AND FINAL SETTLEMENT OF ANY AND ALL CLAIMS ARISING IN CONNECTION WITH THE PERFORMANCE OF CONTRACT NO. 12 11-092-29 WITH THE FOREST SERVICE, DEPARTMENT OF AGRICULTURE.