A-5195, NOVEMBER 17, 1924, 4 COMP. GEN. 456

A-5195, NOVEMBER 17, 1924, 4 COMP. GEN. 456

CLASSIFICATION OF CIVILIAN EMPLOYEES - UNIT OF APPROPRIATION - DEPARTMENT OF COMMERCE THE APPROPRIATION ITEM "ENFORCEMENT OF CHINA TRADE ACT" UNDER THE MAJOR OR GENERAL HEADING ,BUREAU OF FOREIGN AND DOMESTIC COMMERCE," DEPARTMENT OF COMMERCE, ACT OF MAY 28, 1924, 43 STAT. 226, CONSTITUTES A SEPARATE AND DISTINCT APPROPRIATION UNIT WITHIN THE MEANING OF THE AVERAGE PROVISION RESTRICTING PAYMENTS FOR PERSONAL SERVICES UNDER THE DEPARTMENT OF COMMERCE IN ACCORDANCE WITH THE CLASSIFICATION ACT OF MARCH 4, 1923, 42 STAT. 1488. 4 COMP. GEN. 342 MODIFIED.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF COMMERCE NOVEMBER 17, 1924:

I HAVE YOUR LETTER OF OCTOBER 16, 1924, REQUESTING RECONSIDERATION OF A PORTION OF THE DECISION OF OCTOBER 1, 1924, 4 COMP. GEN. 342, HOLDING THAT THE BUREAUS UNDER THE DEPARTMENT OF COMMERCE CONSTITUTE THE UNITS WITHIN THE MEANING OF THE AVERAGE PROVISION RESTRICTING PAYMENTS FOR PERSONAL SERVICES IN THE DISTRICT OF COLUMBIA FOR THE FISCAL YEAR 1925 IN ACCORDANCE WITH THE CLASSIFICATION ACT OF 1923.

YOU STATE IN PART AS FOLLOWS:

UNDER THE MAJOR HEADING "FOREIGN AND DOMESTIC COMMERCE," APPEARS THE FOLLOWING ITEM:

"ENFORCEMENT OF CHINA TRADE ACT. TO CARRY OUT THE PROVISIONS OF THE ACT ENTITLED "CHINA TRADE ACT, 1922," INCLUDING $23,520 FOR PERSONAL SERVICES IN THE DISTRICT OF COLUMBIA AND ELSEWHERE, TRAVELING AND SUBSISTENCE EXPENSES OF OFFICERS AND EMPLOYEES, PURCHASE OF FURNITURE AND EQUIPMENT, STATIONERY AND SUPPLIES, TYPEWRITING, ADDING AND COMPUTING MACHINES, ACCESSORIES AND REPAIRS, PURCHASE OF BOOKS OF REFERENCE AND PERIODICALS, REPORTS, DOCUMENTS, PLANS, SPECIFICATIONS, MANUSCRIPTS, AND ALL OTHER PUBLICATIONS; RENT OUTSIDE THE DISTRICT OF COLUMBIA, AND ALL NECESSARY EXPENSES NOT INCLUDED IN THE FOREGOING, $31,020.'

THE AMOUNT ABOVE APPROPRIATED IS FOR THE PURPOSE OF ENFORCING THE ACT OF SEPTEMBER 19, 1922, OTHERWISE KNOWN AS THE CHINA TRADE ACT OF 1922. THE PURPOSE OF THIS ACT IS TO PROVIDE A MEANS FOR COMPANIES OPERATING IN CHINA TO INCORPORATE UNDER A FEDERAL LAW. IT AUTHORIZES THE SECRETARY OF COMMERCE TO DESIGNATE AN OFFICER OF THIS DEPARTMENT AS REGISTRAR AND SETS UP A CODE OF LAW TO BE FOLLOWED FOR THOSE DESIRING TO AVAIL THEMSELVES OF ITS PROVISIONS. ARTICLES OF INCORPORATION, WHEN ADOPTED UNDER THIS LAW, MUST BE SUBMITTED TO THE SECRETARY OF COMMERCE FOR HIS APPROVAL OR DISAPPROVAL, AS THE CASE MAY BE. THESE ARTICLES MUST BE CAREFULLY CONSIDERED IN ORDER TO ASCERTAIN WHETHER THEY MEET THE REQUIREMENTS OF THE LAW, WHEREUPON A CERTIFICATE OF INCORPORATION IS ISSUED.

THE LAW, AMONG OTHER THINGS, PROVIDES THAT 25 PERCENT OF THE AUTHORIZED CAPITAL STOCK MUST BE PAID FOR IN CASH OR IN REAL OR PERSONAL PROPERTY AND IN THE LATTER EVENT A CERTIFICATE IS REQUIRED DESCRIBING SUCH PROPERTY. THIS CERTIFICATE MUST BE EXAMINED IN ORDER TO DETERMINE WHETHER A FAIR MARKET VALUE HAS BEEN GIVEN TO IT. OTHER REPORTS MUST BE SUBMITTED FROM TIME TO TIME FOR EXAMINATION.

IT WOULD SEEM THAT THE DUTIES ABOVE REFERRED TO ARE ENTIRELY UNRELATED TO ANY OF THE OTHER ACTIVITIES CONTEMPLATED UNDER THE GENERAL HEADING "FOREIGN AND DOMESTIC COMMERCE," AND I THEREFORE ASK THAT YOU RECONSIDER YOUR DECISION OF OCTOBER 1, 1924, IN SO FAR AS IT AFFECTS THE AMOUNT APPROPRIATED BY CONGRESS FOR THE ENFORCEMENT OF THIS ACT.

UPON FURTHER EXAMINATION OF THE QUOTED STATUTE IN THE LIGHT OF YOUR EXPLANATION AS TO SERVICES PERFORMED THEREUNDER IT WOULD APPEAR THE PURPOSES PROVIDED UNDER THE APPROPRIATION ITEM ,ENFORCEMENT OF CHINA TRADE ACT" ARE SUFFICIENTLY DISSIMILAR AND UNRELATED TO THE PURPOSES PROVIDED FOR UNDER THE REMAINDER OF THE APPROPRIATION ITEMS UNDER THE MAJOR OR GENERAL HEADING OF ,BUREAU OF FOREIGN AND DOMESTIC COMMERCE" AS TO CONSTITUTE THE ITEM "ENFORCEMENT OF CHINA TRADE ACT" A SEPARATE AND DISTINCT UNIT WITHIN THE MEANING OF THE AVERAGE PROVISION. DECISION OF OCTOBER 1, 1924, IS MODIFIED ACCORDINGLY.