A-57892, OCTOBER 22, 1934, 14 COMP. GEN. 326

A-57892: Oct 22, 1934

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THE APPROPRIATIONS TO THAT OFFICE ARE NOT AVAILABLE FOR INSURANCE UPON PUBLIC FUNDS TRANSPORTED TO THE PANAMA CANAL BY ORDER OF THE TREASURY DEPARTMENT OR OTHERWISE. AS FOLLOWS: THIS OFFICE IS IN RECEIPT OF A LETTER DATED AUGUST 21. THE RATE AT WHICH THESE SHIPMENTS ARE INSURED IS $0.02853625 PER $1. 000 AND IT IS STATED THAT THE TREASURY DEPARTMENT WILL BE GLAD TO INSURE THE SHIPMENTS UNDER THIS CONTRACT UPON REQUEST THEREFOR. UNLESS THERE ARE DECISIONS OF THE COMPTROLLER GENERAL IN EFFECT WHICH CLEARLY AUTHORIZE SUCH PAYMENTS. IT IS SUGGESTED THAT THIS MATTER BE SUBMITTED TO THE COMPTROLLER GENERAL FOR DECISION AS TO WHETHER OUR APPROPRIATIONS ARE AVAILABLE FOR THE PAYMENT OF SUCH INSURANCE.

A-57892, OCTOBER 22, 1934, 14 COMP. GEN. 326

PUBLIC FUNDS - INSURANCE THERE BEING NO PROVISION IN THE APPROPRIATIONS FOR THE PANAMA CANAL FOR THE SAFE-KEEPING OR TRANSPORTATION OF PUBLIC MONEYS, THE APPROPRIATIONS TO THAT OFFICE ARE NOT AVAILABLE FOR INSURANCE UPON PUBLIC FUNDS TRANSPORTED TO THE PANAMA CANAL BY ORDER OF THE TREASURY DEPARTMENT OR OTHERWISE.

COMPTROLLER GENERAL MCCARL TO THE CHIEF OF OFFICE, THE PANAMA CANAL, OCTOBER 22, 1934:

THERE HAS BEEN RECEIVED YOUR LETTER OF SEPTEMBER 24, 1934, AS FOLLOWS:

THIS OFFICE IS IN RECEIPT OF A LETTER DATED AUGUST 21, 1934, FROM THE ASSISTANT TREASURER OF THE UNITED STATES IN REFERENCE TO INSURANCE ON SHIPMENTS OF CURRENCY, COIN, AND GOVERNMENT SECURITIES TO THE PAYMASTER, THE PANAMA CANAL, BALBOA HEIGHTS, CANAL ZONE, VIA THE PANAMA RAILROAD STEAMSHIP LINE, FORWARDED BY THE FEDERAL RESERVE BANK OF NEW YORK UNDER INSTRUCTIONS FROM THE TREASURER OF THE UNITED STATES.

THE LETTER STATES THAT THE POLICY FOR INSURANCE ENTERED INTO BETWEEN THE TREASURY DEPARTMENT AND MESSRS. JOHNSON AND HIGGINS, 67 WALL STREET, NEW YORK, N.Y., FOR THE FISCAL YEAR 1935 INCLUDES THE FOLLOWING SHIPMENTS:

"BY THE PANAMA RAILROAD STEAMSHIP LINE, IN CASE OF SHIPMENTS OF CURRENCY AND/OR COIN TO THE PAYMASTER, THE PANAMA CANAL, CANAL ZONE, MADE BY THE FEDERAL RESERVE BANK OF NEW YORK UPON INSTRUCTIONS OF THE TREASURER OF THE UNITED STATES. IN SUCH CASE THIS POLICY INSURES THE PAYMASTER, THE PANAMA CANAL, FOR ACCOUNT OF WHOM IT MAY CONCERN; AND IN CASE OF LOSS, SAID LOSS SHALL BE PAID TO THE PAYMASTER, THE PANAMA CANAL, OR ORDER.'

THE RATE AT WHICH THESE SHIPMENTS ARE INSURED IS $0.02853625 PER $1,000 AND IT IS STATED THAT THE TREASURY DEPARTMENT WILL BE GLAD TO INSURE THE SHIPMENTS UNDER THIS CONTRACT UPON REQUEST THEREFOR.

THE GOVERNOR, THE PANAMA CANAL, IN LETTER DATED SEPTEMBER 14, 1934, TO THIS OFFICE STATES:

"IN VIEW OF THIS LOW RATE, IT WOULD SEEM ADVISABLE TO INSURE ALL MONEY SHIPMENTS TO THE PAYMASTER, PROVIDED SUCH INSURANCE CAN BE PAID FROM THE APPROPRIATION "MAINTENANCE AND OPERATION, PANAMA CANAL.' UNLESS THERE ARE DECISIONS OF THE COMPTROLLER GENERAL IN EFFECT WHICH CLEARLY AUTHORIZE SUCH PAYMENTS, IT IS SUGGESTED THAT THIS MATTER BE SUBMITTED TO THE COMPTROLLER GENERAL FOR DECISION AS TO WHETHER OUR APPROPRIATIONS ARE AVAILABLE FOR THE PAYMENT OF SUCH INSURANCE, OR FOR REIMBURSEMENT OF THE TREASURY FOR EXPENSE THAT THEY MAY INCUR IN INSURING SUCH SHIPMENTS.'

YOUR DECISION IS REQUESTED AS TO WHETHER THE APPROPRIATION "MAINTENANCE AND OPERATION, PANAMA CANAL," IS AVAILABLE FOR THE PAYMENT OF SUCH INSURANCE, OR FOR REIMBURSEMENT OF THE TREASURY FOR EXPENSE THAT THEY MAY INCUR IN INSURING SUCH SHIPMENTS.

IN 21 COMP. DEC. 308, 23 ID. 269, AND DECISION OF OCTOBER 29, 1917, TO THE SECRETARY OF THE NAVY, IT WAS HELD THAT INSURANCE UPON SHIPMENTS OF PUBLIC MONEYS CONSTITUTES A PROPER CHARGE AGAINST THE APPROPRIATION "CONTINGENT, INDEPENDENT TREASURY," WHICH APPROPRIATION PROVIDED FOR THE TRANSPORTATION AND SAFE-KEEPING OF PUBLIC FUNDS, BUT THAT INSURANCE PREMIUMS WERE NOT CHARGEABLE AGAINST ANY OTHER DEPARTMENTAL APPROPRIATION. IN THE ACT OF MARCH 15, 1934, MAKING APPROPRIATIONS FOR THE TREASURY DEPARTMENT FOR 1935, I FIND THE APPROPRIATION "CONTINGENT EXPENSES, PUBLIC MONEYS," WHICH PROVIDES AS FOLLOWS:

CONTINGENT EXPENSES, PUBLIC MONEYS: FOR CONTINGENT EXPENSES UNDER THE REQUIREMENTS OF SECTION 3653 OF THE REVISED STATUTES (U.S.C., TITLE 31, SEC. 545), FOR THE COLLECTION, SAFE-KEEPING, TRANSFER, AND DISBURSEMENT OF THE PUBLIC MONEY, TRANSPORTATION OF NOTES, BONDS, AND OTHER SECURITIES OF THE UNITED STATES, SALARIES OF SPECIAL AGENTS, ACTUAL EXPENSES OF EXAMINERS DETAILED TO EXAMINE THE BOOKS, ACCOUNTS, AND MONEY ON HAND AT THE SEVERAL DEPOSITORIES, INCLUDING NATIONAL BANKS ACTING AS DEPOSITORIES UNDER THE REQUIREMENTS OF SECTION 3649 OF THE REVISED STATUTES (U.S.C., TITLE 31, SEC. 548), ALSO INCLUDING EXAMINATIONS OF CASH ACCOUNTS AT MINTS AND COST OF INSURANCE ON SHIPMENTS OF MONEY BY REGISTERED MAIL WHEN NECESSARY, $150,000.

I DO NOT FIND ANY PROVISION IN THE APPROPRIATIONS FOR THE PANAMA CANAL FOR THE SAFE-KEEPING OR TRANSPORTATION OF PUBLIC MONEYS. ACCORDINGLY, IT MUST BE HELD THAT NO APPROPRIATION FOR THE PANAMA CANAL IS AVAILABLE FOR INSURANCE UPON ANY FUNDS TRANSPORTED TO THE PANAMA CANAL BY ORDER OF THE TREASURY DEPARTMENT OR OTHERWISE.

THERE HAS NOT BEEN OVERLOOKED IN THIS CONNECTION THE DECISION OF 3 COMP. GEN. 242, IN WHICH THE APPROPRIATION "PAY, MISCELLANEOUS, NAVY" WAS HELD AVAILABLE FOR INSURANCE ON SHIPMENTS OF PUBLIC MONEYS, THERE NOW BEING IN THAT APPROPRIATION A SPECIFIC PROVISION FOR THE TRANSPORTATION OF FUNDS.