A-21056, JUNE 25, 1928, 7 COMP. GEN. 806

A-21056: Jun 25, 1928

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ALL RECEIPTS FROM SUCH LEASING ARE PUBLIC FUNDS AND MUST BE DEPOSITED AND COVERED INTO THE TREASURY AS MISCELLANEOUS RECEIPTS. 1928: RECEIPT IS ACKNOWLEDGED OF YOUR LETTER OF JUNE 9. THAT THE ALLEGATIONS CONCERNING ITS OPERATION MADE IN A LETTER RECEIVED BY THIS OFFICE FROM A RESIDENT OF THE STATE OF CONNECTICUT ARE CORRECT AND THAT: (2) THE LAUNDRY IS MAINTAINED AS A SHIP'S SERVICE ACTIVITY. NAVY REGULATIONS. (3) THE EQUIPMENT IS GOVERNMENT OWNED. IT WAS PURCHASED IN MAY AND JUNE. POWER ARE FURNISHED FROM THE REGULAR SERVICE LINES OF THE SUBMARINE BASE AND ARE. THE LETTER REFERRED TO IS AGAIN QUOTED FOR CONSIDERATION AT THIS TIME: THERE HAS BEEN BUILT AND EQUIPPED AT THE U.S. THIS LAUNDRY IS NOW OPERATED BY CIVILIANS NOT IN THE CIVIL SERVICE UNDER A SORT OF A LEASE.

A-21056, JUNE 25, 1928, 7 COMP. GEN. 806

GOVERNMENT CONCESSIONS - SHIP'S SERVICE LAUNDRY THE SHIP'S SERVICE LAUNDRY AT THE SUBMARINE BASE AT NEW LONDON, CONN., BEING OPERATED BY CIVILIANS UNDER A LEASE, THE MACHINERY AND EQUIPMENT HAVING BEEN PURCHASED FROM APPROPRIATED FUNDS, AND HEAT, LIGHT, WATER, AND POWER FURNISHED FROM APPROPRIATED FUNDS, CONSTITUTES A VALUABLE PRIVILEGE WHICH SHOULD BE LET TO THE HIGHEST BIDDER. ALL RECEIPTS FROM SUCH LEASING ARE PUBLIC FUNDS AND MUST BE DEPOSITED AND COVERED INTO THE TREASURY AS MISCELLANEOUS RECEIPTS.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF THE NAVY, JUNE 25, 1928:

RECEIPT IS ACKNOWLEDGED OF YOUR LETTER OF JUNE 9, 1928, REPORTING, WITH RESPECT TO THE SHIP'S SERVICE LAUNDRY MAINTAINED AT THE SUBMARINE BASE AT NEW LONDON, CONN., THAT THE ALLEGATIONS CONCERNING ITS OPERATION MADE IN A LETTER RECEIVED BY THIS OFFICE FROM A RESIDENT OF THE STATE OF CONNECTICUT ARE CORRECT AND THAT:

(2) THE LAUNDRY IS MAINTAINED AS A SHIP'S SERVICE ACTIVITY, UNDER AUTHORITY OF ARTICLE 1442, U.S. NAVY REGULATIONS.

(3) THE EQUIPMENT IS GOVERNMENT OWNED. IT WAS PURCHASED IN MAY AND JUNE, 1918, FROM THE APPROPRIATION "NAVAL TRAINING CAMPS.'

(4) IN ACCORDANCE WITH PARAGRAPH 5, GENERAL ORDER NO. 164, THE OPERATION OF ALL SHIP'S SERVICE ACTIVITIES, INCLUDING LAUNDRY, BARBER, COBBLER, TAILOR, AND SHIP'S SERVICE STORE, PARALLELS AS CLOSELY AS POSSIBLE MOBILE TENDERS. THE HEAT, LIGHT, WATER, AND POWER ARE FURNISHED FROM THE REGULAR SERVICE LINES OF THE SUBMARINE BASE AND ARE, THEREFORE, FURNISHED UNDER THE APPROPRIATION ,FUEL AND TRANSPORTATION," IN THE SAME MANNER AS ON BOARD SHIP. ARTICLE 1442, PARAGRAPH 11, U.S. NAVY REGULATIONS, PROVIDES THAT PROFITS ACCRUING FROM THE OPERATION OF THE SHIP'S SERVICE STORE AND SHIP'S SERVICE ACTIVITIES ASHORE SHALL BE EXPENDED FOR THE WELFARE OF THE PERSONNEL IN SUCH MANNER AS THE COMMANDING OFFICER MAY DIRECT.

THE LETTER REFERRED TO IS AGAIN QUOTED FOR CONSIDERATION AT THIS TIME:

THERE HAS BEEN BUILT AND EQUIPPED AT THE U.S. SUBMARINE BASE, NEW LONDON, CONN., BY THE GOVERNMENT A LAUNDRY. THIS LAUNDRY IS NOW OPERATED BY CIVILIANS NOT IN THE CIVIL SERVICE UNDER A SORT OF A LEASE, I ASSUME, WHEREBY ALL THAT THEY PAY FOR THE PRIVILEGE OF OPERATING THE SAME IS $50.00 PER MONTH TO THE WELFARE FUND AT THIS BASE. THEY RECEIVE FROM THE GOVERNMENT FREE FUEL, LIGHT, POWER, AND WATER, AND THE LAUNDRY AND EQUIPMENT IS MAINTAINED AT THE EXPENSE OF THE GOVERNMENT. THE LAUNDRY WORK OF THE OFFICERS AND ENLISTED MEN, AND THEIR FAMILIES, OF THE NAVY, AND SAME OF THE COAST GUARD, STATIONED AT THIS SAID BASE IS DONE BY THESE LESSEES AT THE LAUNDRY FOR ABOUT 60 PERCENT LESS THAN THE SAME WORK IS DONE ON THE OUTSIDE IN CIVILIAN LAUNDRIES.

THE LAUNDRY WORK FOR THE HOSPITAL AT THIS BASE IS DONE UPON BIDS FROM OUTSIDE CIVILIAN LAUNDRIES, AND THE LAUNDRY ON THE RESERVATION IS NOT PERMITTED TO DO THIS WORK NOR IS IT PERMITTED TO BID FOR THE SAME, NOR IS THE U.S. MARINE CORPS STATIONED AT THE BASE PERMITTED TO HAVE ITS BED LINEN DONE AT THIS LAUNDRY.

IT IS THE UNDERSTANDING OF THIS OFFICE THAT, AS A GENERAL PROPOSITION, SHIP'S SERVICE ACTIVITIES AUTHORIZED UNDER ARTICLE 1442, UNITED STATES NAVY REGULATIONS, ARE OPERATED BY ENLISTED PERSONNEL DURING THEIR FREE HOURS AND THAT THE NECESSARY EQUIPMENT AND EXPENSES OF OPERATION ARE PAID FROM DONATED FUNDS OR PROFITS ARISING FROM THE ACTIVITY. THE SHIP'S SERVICE LAUNDRY NOW UNDER CONSIDERATION, HOWEVER, PRESENTS AN ENTIRELY DIFFERENT SITUATION, AND RESULTS IN APPROPRIATED FUNDS BEING APPLIED TO USES OTHER THAN THOSE FOR WHICH APPROPRIATED, CONTRARY TO SECTION 3678, REVISED STATUTES. STATED BRIEFLY, IT APPEARS THAT THE LAUNDRY IN THIS CASE IS OPERATED BY CIVILIANS USING EQUIPMENT, HEAT, LIGHT, WATER, AND POWER FURNISHED FROM APPROPRIATED FUNDS, FOR WHICH THEY PAY A NOMINAL RENTAL OF $50 PER MONTH, WHICH AMOUNT IS EXPENDED FOR THE WELFARE OF THE PERSONNEL. NO STATUTORY AUTHORITY IS CITED FOR THIS PROCEDURE OR FOR THE USE OF APPROPRIATED FUNDS IN THIS MANNER. IN VIEW OF THE TIME THE LAUNDRY HAS BEEN IN OPERATION AND THE BENEFITS TO THE SERVICE PERSONNEL DERIVED FROM THE REDUCED RATES FOR LAUNDRY WORK, THIS OFFICE IS NOT DISPOSED TO QUESTION THE LEGALITY OF OPERATING THE LAUNDRY AS A GENERAL PROPOSITION. HOWEVER, IF IT IS TO BE CONTINUED ON AND AFTER JULY 1, 1928, THE PRIVILEGE OF OPERATING THE LAUNDRY, WHICH WOULD APPEAR TO BE QUITE VALUABLE TO THE HOLDER OF THE LEASE, SHOULD BE LET TO THE HIGHEST RESPONSIBLE BIDDER AFTER DUE COMPETITION, AND THE RENT ACCRUING THEREFROM SHOULD BE DEPOSITED AND COVERED INTO THE TREASURY AS MISCELLANEOUS RECEIPTS, IN ACCORDANCE WITH SECTION 3617, REVISED STATUTES. NO REASON APPEARS WHY THE LAUNDRY WORK FOR THE HOSPITAL AT THAT PLACE SHOULD NOT BE DONE AT THE SHIP'S SERVICE LAUNDRY IF, AS STATED, IT DOES THE WORK AT SUCH A SAVING OVER OUTSIDE AGENCIES.