Extracted text

OCR Page 1 of 29
for the EXECUTIVE OFFICE OF THE PRESIDENT BUREAU OF THE BUDGET WASHINGTON, 25, D.C. TUMAN APR 1 9 1945 ARCHIVES AND My dear Mr. Latta: On April 12, 1945, you advised this office that H. R. 1676 "For the relief of the Daniel Baker Company, of Manchester, Kentucky," had been received at the White House, and requested reports and recom- mendations as to the approval of the bill. The bill, H. R. 1676, directs the Secretary of the Treasury to pay to the Daniel Baker Company, Manchester, Clay County, Kentucky, the sum of $525.10, which represents an amount that is due the Company under a contract for furnishing gasoline to the Government, but is being wi thheld by the Government as a part of the excess cost to the Government of procuring gasoline from other companies at a price in excess of the price that would be paid under the contract to the Daniel Baker Company. The bill would further relieve the Company from paying to the Government $101.21, which represents the remaining part of the added cost to the Government of meeting its gasoline needs under the contract by pro curing such gasoline from companies other than the Baker Company. It appears that in May, 1941, the Daniel Baker Company entered into a contract vi th the Procurement Division of the Treasury Depart- ment to furnish gasoline to certain governmental agencies. The in- vitation issued by the Procurement Division, which formed the basis of the contract, requested bids for gasoline to be delivered in the Counties of Bell, Clay, Knox and Whitley, in the State of Kentucky. The clai mant, intending to offer to supply gasoline only in Clay County, checked the words "Clay County" in the printed invitation, assuming that this action on its part sufficiently indicated this intention. The Procurement Division, however, accepted the of fer as being respon- sive to the invitation. Subsequently the claimant requested to be re- lieved of any obligation to supply gasoline outside of Clay County. The Treasury Department replied that it was without authority to grant such relief. The purpose of the bill under consideration is to release the clai mant from the obligations arising out of the contract. Facsimiles of the enrolled enactment have been referred to the Treasury Department, the Attorney Gene ral, and the Comptroller General, and their replies are attached. The Treasury Department and the Attorney General interpose no objection to the approval of the bill. The Comptroller General recommends that the bill be disapproved, and has presented the attached draft of a veto message. RAUNA NARA