A-11168, SEPTEMBER 23, 1925, 5 COMP. GEN. 222

A-11168: Sep 23, 1925

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A NEW LEASE BASED UPON THE INCREASED RATE IS VALID. NOTWITHSTANDING THE OLD LEASE MAY HAVE CONTAINED A PROVISION THAT IT COULD BE RENEWED AT THE OLD RATE AT THE OPTION OF THE GOVERNMENT. 1925: I HAVE YOUR LETTER OF SEPTEMBER 9. REQUESTING DECISION WHETHER YOU ARE AUTHORIZED TO PAY AN ATTACHED VOUCHER IN FAVOR OF MRS. OF CERTAIN PROPERTY WHEREIN WERE STORED PATENT OFFICE MODELS. TO HAVE AND TO HOLD THE SAID PREMISES WITH THEIR APPURTENANCES FOR THE TERM BEGINNING JULY 1. THAT IS. IT APPEARS THAT THE LESSOR HAD EXPRESSED HER INTENTION OF EXERCISING THE OPTION TO TERMINATE THE TENANCY ON OR BEFORE THE END OF THE FISCAL YEAR 1925 AND THAT IT WAS BECAUSE OF THIS SITUATION THAT A DEFICIENCY APPROPRIATION OF $600 FOR THE FISCAL YEAR 1926 WAS REQUESTED AND MADE.

A-11168, SEPTEMBER 23, 1925, 5 COMP. GEN. 222

LEASES - INCREASE OF RENT AT TERMINATION WHERE THE LESSOR OF PROPERTY LEASED TO THE UNITED STATES HAS EXPRESSED AN INTENTION OF TERMINATING THE TENANCY UNDER A PROVISION CONTAINED IN THE LEASE, AND CONGRESS HAS APPROPRIATED FUNDS FOR THE RENTAL OF SAID PROPERTY AT AN INCREASED RENTAL, A NEW LEASE BASED UPON THE INCREASED RATE IS VALID, NOTWITHSTANDING THE OLD LEASE MAY HAVE CONTAINED A PROVISION THAT IT COULD BE RENEWED AT THE OLD RATE AT THE OPTION OF THE GOVERNMENT. COMP. GEN. 66, DISTINGUISHED.

ACTING COMPTROLLER GENERAL GINN TO C. E. MOLSTER, DISBURSING CLERK, DEPARTMENT OF COMMERCE, SEPTEMBER 23, 1925:

I HAVE YOUR LETTER OF SEPTEMBER 9, 1925, REQUESTING DECISION WHETHER YOU ARE AUTHORIZED TO PAY AN ATTACHED VOUCHER IN FAVOR OF MRS. RUTH B. GHEEN, COVERING RENTAL FOR THE MONTH OF AUGUST, 1925, OF CERTAIN PROPERTY WHEREIN WERE STORED PATENT OFFICE MODELS.

WITH YOUR LETTER YOU TRANSMIT COPY OF LEASES ENTERED INTO JUNE 26, 1924, AND JULY 25, 1925, FOR THE FISCAL YEARS ENDING JUNE 30, 1925, AND JUNE 30, 1926, RESPECTIVELY. BY THE TERMS OF THE LEASE, DATED JUNE 26, 1924, THE UNITED STATES ACQUIRED A RIGHT TO OCCUPY THE DESCRIBED PREMISES AT A RENTAL OF $150 A MONTH FOR A TERM BEGINNING JULY 1, 1924, AND CONTINUING FROM MONTH TO MONTH THEREAFTER.

PARAGRAPHS 3 AND 5 OF THE LEASE READ:

3. TO HAVE AND TO HOLD THE SAID PREMISES WITH THEIR APPURTENANCES FOR THE TERM BEGINNING JULY 1, 1924, CONTINUING FROM MONTH TO MONTH THEREAFTER, AND TERMINATING ON THE LAST DAY OF ANY CALENDAR MONTH WITHIN THE FISCAL YEAR ENDING JUNE 30, 1925, AT THE OPTION OF EITHER PARTY TO THIS AGREEMENT; PROVIDED THAT IF EITHER OF THE SAID PARTIES SHALL DESIRE THAT THIS LEASE SHALL TERMINATE AS ABOVE PROVIDED SHE OR THEY SHALL GIVE THIRTY (30) DAYS' NOTICE IN WRITING TO THE OTHER PARTY HERETO.

5. THIS LEASE MAY, AT THE OPTION OF THE GOVERNMENT, BE RENEWED AT A MONTHLY RENTAL OF ONE HUNDRED FIFTY DOLLARS ($150), AND OTHERWISE UPON THE TERMS AND CONDITIONS HEREIN SPECIFIED, PROVIDED NOTICE BE GIVEN IN WRITING TO THE LESSOR AT LEAST ONE MONTH BEFORE THIS LEASE WOULD EXPIRE: PROVIDED, THAT NO RENEWAL THEREOF SHALL EXTEND THE PERIOD OF OCCUPANCY OF THE PREMISES BEYOND THE 30TH DAY OF JUNE, 1926.

THE LEASE OF JUNE 26, 1924, GRANTED THE GOVERNMENT A RIGHT TO RENEW THE LEASE AT A MONTHLY RENTAL OF $150. BUT IT ALSO GAVE TO THE LESSOR THE RIGHT TO TERMINATE THE TENANCY; THAT IS, TO REQUIRE THE GOVERNMENT TO VACATE THE PREMISES AT THE END OF ANY CALENDAR MONTH UPON GIVING 30 DAYS' NOTICE IN WRITING TO THAT EFFECT.

IT APPEARS THAT THE LESSOR HAD EXPRESSED HER INTENTION OF EXERCISING THE OPTION TO TERMINATE THE TENANCY ON OR BEFORE THE END OF THE FISCAL YEAR 1925 AND THAT IT WAS BECAUSE OF THIS SITUATION THAT A DEFICIENCY APPROPRIATION OF $600 FOR THE FISCAL YEAR 1926 WAS REQUESTED AND MADE. SEE HEARING BEFORE SUBCOMMITTEE OF HOUSE COMMITTEE ON APPROPRIATIONS, SECOND DEFICIENCY APPROPRIATION BILL, 1925, PAGES 415, ET SEQ.

THE APPROPRIATION WAS MADE IN THE FOLLOWING TERMS:

FOR ADDITIONAL AMOUNT FOR THE STORAGE OF PATENT OFFICE MODELS AND EXPOSITION EXHIBITS, INCLUDING THE COST OF REMOVAL OF THE MODELS IF NECESSARY, FISCAL YEAR 1926, $600. (ACT OF MARCH 4, 1925, 43 STAT.1330.)

IT WILL BE NOTED THAT THIS APPROPRIATION WAS MADE AVAILABLE TO PAY AN INCREASED AMOUNT OF RENT FOR STORAGE SPACE OR FOR REMOVAL OF THE MODELS IF NECESSARY. AS A RESULT OF THIS SPECIFIC APPROPRIATION AND THE UNDERSTANDING ON THE PART OF THE ADMINISTRATIVE AUTHORITIES AND THE LESSOR THAT SAID APPROPRIATION AUTHORIZED INCREASING THE RENTAL OF THE PREMISES OCCUPIED FOR THE FISCAL YEAR 1926, THE LESSOR REFRAINED FROM EXERCISING THE OPTION TO REQUIRE THE GOVERNMENT TO VACATE THE PREMISES AND THE LEASE FOR THE FISCAL YEAR 1926 WAS ACCORDINGLY MADE AT THE INCREASED RENTAL.

IN VIEW OF ALL THE FACTS AND CIRCUMSTANCES APPEARING, WHICH DISTINGUISHED THIS CASE FROM THE CASE DECIDED IN 2 COMP. GEN. 66, FULL FORCE AND EFFECT MAY BE GIVEN TO THE LEASE FOR THE FISCAL YEAR 1926 AND PAYMENT OF THE VOUCHER IS AUTHORIZED.