A-51881, NOVEMBER 8, 1933, 13 COMP. GEN. 120

A-51881: Nov 8, 1933

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CONTRACTS - CODES OF FAIR COMPETITION - MONOPOLIES WHERE THERE IS A MONOPOLY FOR THE RENDITION OF SERVICES. THE COMPANIES HAVING THE MONOPOLY ARE NOT SIGNERS OF THE PRESIDENT'S REEMPLOYMENT AGREEMENT OR AN APPLICABLE CODE OF FAIR COMPETITION. A COPY OF WHICH IS ENCLOSED. THE CUSTOMARY VOUCHER WAS MAILED WITH THE ORDER. THE ORDER WAS NOT FILLED AND THE VOUCHER WAS RETURNED UNSIGNED FOR THE REASON THAT THAT COMPANY IS NOT AS YET OPERATING UNDER THE PROVISION OF THE N.R.A. THE CAPITAL TRACTION COMPANY IS UNABLE TO SIGN THE VOUCHER FOR A LIKE REASON. AS THE DEPARTMENT IS IN URGENT NEED OF CAR TOKENS. IT WILL BE APPRECIATED IF YOU WILL FURNISH AN ADVANCE DECISION AS TO THE LEGALITY OF A PURCHASE OF THIS NATURE FROM A CONCERN NOT OPERATING UNDER A CODE.

A-51881, NOVEMBER 8, 1933, 13 COMP. GEN. 120

CONTRACTS - CODES OF FAIR COMPETITION - MONOPOLIES WHERE THERE IS A MONOPOLY FOR THE RENDITION OF SERVICES, SUCH AS STREET- CAR COMPANIES, AND THE COMPANIES HAVING THE MONOPOLY ARE NOT SIGNERS OF THE PRESIDENT'S REEMPLOYMENT AGREEMENT OR AN APPLICABLE CODE OF FAIR COMPETITION, SUCH FACT NEED NOT PRECLUDE THE UNITED STATES UNDER THE EXECUTIVE ORDER OF AUGUST 10, 1933, FROM PURCHASING SUCH STREET-CAR TOKENS AS MAY BE REQUIRED IN THE PUBLIC SERVICE FOR TRANSPORTATION FROM SUCH COMPANIES.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF STATE, NOVEMBER 8, 1933:

THERE HAS BEEN RECEIVED YOUR LETTER OF NOVEMBER 3, 1933, AS FOLLOWS:

UNDER DATE OF OCTOBER 31, 1933, THE DEPARTMENT PLACED AN ORDER, A COPY OF WHICH IS ENCLOSED, FOR 134 CAR TOKENS WITH THE WASHINGTON RAILWAY AND ELECTRIC COMPANY OF THIS CITY. THE CUSTOMARY VOUCHER WAS MAILED WITH THE ORDER. THE ORDER WAS NOT FILLED AND THE VOUCHER WAS RETURNED UNSIGNED FOR THE REASON THAT THAT COMPANY IS NOT AS YET OPERATING UNDER THE PROVISION OF THE N.R.A. CODE. THE CAPITAL TRACTION COMPANY IS UNABLE TO SIGN THE VOUCHER FOR A LIKE REASON. AS THE DEPARTMENT IS IN URGENT NEED OF CAR TOKENS, IT WILL BE APPRECIATED IF YOU WILL FURNISH AN ADVANCE DECISION AS TO THE LEGALITY OF A PURCHASE OF THIS NATURE FROM A CONCERN NOT OPERATING UNDER A CODE.

THE EXECUTIVE ORDER OF AUGUST 10, 1933, WHICH IS QUOTED IN 13 COMP. GEN. 65, 67, AND NEED NOT BE QUOTED HEREIN, REQUIRES EVERY CONTRACT FOR SUPPLIES TO CONTAIN A PROVISION THAT THE CONTRACTOR SHALL COMPLY WITH THE APPLICABLE APPROVED CODE OF FAIR COMPETITION OR THE PRESIDENT'S REEMPLOYMENT AGREEMENT. CAR TOKENS WOULD NOT APPEAR TO BE MATERIALS OR SUPPLIES WITHIN THE TERMS OF SAID EXECUTIVE ORDER, AND YOU ARE ADVISED THAT SINCE THE TOKENS REPRESENT SERVICE TO BE RENDERED AND THERE IS NO COMPETING SERVICE IN WASHINGTON, THE TOKENS MAY BE PROCURED FROM THE STREET-CAR COMPANIES IN WASHINGTON, IN THE ABSENCE OF OTHER OBJECTION, EVEN THOUGH SUCH COMPANIES MAY NOT BE OPERATING UNDER ANY APPROVED CODE OR PRESIDENT'S REEMPLOYMENT AGREEMENT.