A-58669, DECEMBER 1, 1934, 14 COMP. GEN. 427

A-58669: Dec 1, 1934

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IS WITHIN ADMINISTRATIVE DISCRETION. IF IT IS FOUND THAT THE PURPOSES AND REQUIREMENTS OF THE ACT HAVE BEEN MET. THE GOVERNOR OF THE FARM CREDIT ADMINISTRATION IS REQUIRED AND EXPECTED BY THE ACT TO PROVIDE. IT WOULD APPEAR THAT THIS IS ONE OF THE ADMINISTRATIVE FUNCTIONS IMPOSED UPON THE GOVERNOR EVEN BEFORE ANY FORMAL APPLICATION IN THE FORM OF AN ORGANIZATION CERTIFICATE. IT HAS BEEN FOUND THAT SUCH AN ARRANGEMENT IS NOT SATISFACTORY BECAUSE DUE TO UNFAMILIARITY WITH THE GENERAL SUBJECT MATTER OF CREDIT UNIONS. ARE NOT FULLY UNDERSTOOD. IT IS MY CONCLUSION. BE GIVEN THE INFORMATION TO WHICH THEY ARE ENTITLED BEFORE THEY CAN DETERMINE WHETHER THEY WISH TO FILE AN APPLICATION FOR CHARTER IN THE FORM OF AN ORGANIZATION CERTIFICATE.

A-58669, DECEMBER 1, 1934, 14 COMP. GEN. 427

DISSEMINATION OF INFORMATION REGARDING NEW FEDERAL STATUTE THE DISSEMINATION OF INFORMATION REGARDING THE PURPOSES AND SCOPE OF A NEW FEDERAL STATUTE TO INTERESTED CITIZENS MAY BE REGARDED AS AN EXPENSE OF ADMINISTERING THE ACT, THE REASONABLE COST OF WHICH WOULD CONSTITUTE A PROPER CHARGE AGAINST FUNDS MADE AVAILABLE FOR THE ADMINISTRATION THEREOF, AND WHETHER DISSEMINATION OF THE INFORMATION SHOULD BE BY MEANS OF SENDING OUT PRINTED MATTER AND CIRCULAR LETTERS OR BY MEANS OF SENDING OUT EMPLOYEES, IS WITHIN ADMINISTRATIVE DISCRETION.

COMPTROLLER GENERAL MCCARL TO THE GOVERNOR OF THE FARM CREDIT ADMINISTRATION, DECEMBER 1, 1934:

THERE HAS BEEN RECEIVED YOUR LETTER OF NOVEMBER 7, 1934, AS FOLLOWS: THE ACT OF CONGRESS APPROVED JUNE 26, 1934 (PUBLIC, NO. 467), REQUIRES THE FARM CREDIT ADMINISTRATION TO RECEIVE, IN THE FORM OF ORGANIZATION CERTIFICATES, APPLICATIONS FROM ANY SEVEN OR MORE PERSONS WHO DESIRE TO FORM A FEDERAL CREDIT UNION, TO INVESTIGATE SUCH ORGANIZATION CERTIFICATES AND, IF IT IS FOUND THAT THE PURPOSES AND REQUIREMENTS OF THE ACT HAVE BEEN MET, TO APPROVE SAME, THUS CREATING AND VESTING IN THE CREDIT UNION ALL OF THE POWERS AND CHARGING IT WITH ALL OF THE LIABILITIES CONFERRED AND IMPOSED BY THE ACT UPON CORPORATIONS ORGANIZED THEREUNDER.

SECTIONS 5 AND 6 OF THE ACT PROVIDES FOR THE COLLECTING OF AN APPLICATION FEE OF $20.00, AND IN THE CASE OF CHARTERED CREDIT UNIONS, A CHARTER FEE OF $5.00, AN ANNUAL FEE OF NOT TO EXCEED $10.00, AND EXAMINATION FEES, AND AUTHORIZES THE AMOUNTS THUS COLLECTED TO BE EXPENDED FOR SUCH ADMINISTRATIVE AND OTHER EXPENSES INCURRED IN CARRYING OUT THE PROVISIONS OF THE ACT AS THE GOVERNOR OF THE FARM CREDIT ADMINISTRATION MAY DETERMINE TO BE PROPER,"THE PURPOSE OF SUCH FEES BEING TO DEFRAY, AS FAR AS PRACTICABLE, THE ADMINISTRATIVE AND SUPERVISORY COSTS INCIDENT TO THE CARRYING OUT OF THIS ACT.' SECTION 19 AUTHORIZES THE USE OF NOT TO EXCEED $50,000 OF THE FUND AVAILABLE TO THE GOVERNOR UNDER SECTION 4 OF THE ACT OF MARCH 3, 1932,"FOR ADMINISTRATIVE EXPENSES IN ADMINISTERING THIS ACT.'

THE GOVERNOR OF THE FARM CREDIT ADMINISTRATION IS REQUIRED AND EXPECTED BY THE ACT TO PROVIDE, TO ANY PERSONS DESIRING SAME, ALL ESSENTIAL INFORMATION RELATIVE TO THE NATURE AND SCOPE OF CREDIT UNIONS WHICH MAY BE CHARTERED THEREUNDER, THE POWERS OF SUCH UNIONS AND THE LIABILITIES CONFERRED AND IMPOSED UPON THEM. IT WOULD APPEAR THAT THIS IS ONE OF THE ADMINISTRATIVE FUNCTIONS IMPOSED UPON THE GOVERNOR EVEN BEFORE ANY FORMAL APPLICATION IN THE FORM OF AN ORGANIZATION CERTIFICATE, ACCOMPANIED BY THE STATUTORY FEE OF $20.00, HAS BEEN RECEIVED.

IN ACCORDANCE WITH THE FOREGOING, THE FARM CREDIT ADMINISTRATION HAS TRIED TO FURNISH THIS INFORMATION BY CORRESPONDENCE, AS WELL AS BY PRINTED PAMPHLETS OR FREE PUBLICATIONS IN NEWSPAPERS AND PERIODICALS. IT HAS BEEN FOUND THAT SUCH AN ARRANGEMENT IS NOT SATISFACTORY BECAUSE DUE TO UNFAMILIARITY WITH THE GENERAL SUBJECT MATTER OF CREDIT UNIONS, THEIR PURPOSES AND OPERATIONS, NUMEROUS QUESTIONS ARISE IN THE MINDS OF THE RECIPIENTS WHICH EITHER REMAIN UNEXPLAINED, OR IF EXPLAINED IN WRITING ON RESUBMISSION, ARE NOT FULLY UNDERSTOOD. IT IS MY CONCLUSION, THEREFORE, THAT INTERESTED PERSONS CANNOT, IN THIS WAY, BE GIVEN THE INFORMATION TO WHICH THEY ARE ENTITLED BEFORE THEY CAN DETERMINE WHETHER THEY WISH TO FILE AN APPLICATION FOR CHARTER IN THE FORM OF AN ORGANIZATION CERTIFICATE, AND THAT UNLESS SOME PLAN IS MADE FOR PERSONAL CONTACT WITH INDIVIDUALS WHO CAN EXPLAIN SUCH MATTERS ORALLY, THIS DUTY OF THE FARM CREDIT ADMINISTRATION WILL NOT BE DISCHARGED ADEQUATELY. THIS IS PARTICULARLY TRUE DURING THE FIRST YEAR OR TWO OF THE ACTIVITIES UNDER THE FARM CREDIT UNION ACT.

IT IS MY WISH TO EMPLOY FIVE OR SIX PERSONS TO VISIT, AS OCCASION ARISES, DIFFERENT LOCALITIES THROUGHOUT THE UNITED STATES IN ORDER TO RENDER THIS SERVICE TO INTERESTED PERSONS, AND I WOULD THEREFORE APPRECIATE YOUR ADVICE WHETHER SUCH EXPENSE OF SALARY AND TRAVEL MAY PROPERLY BE INCURRED AND PAID FROM THE SPECIAL APPROPRIATION OF NOT TO EXCEED $50,000, OR FROM THE FEES COLLECTED FROM APPLICANTS AND CHARTERED CREDIT UNIONS, OR FROM THE APPROPRIATION FOR SALARIES AND EXPENSES FARM CREDIT ADMINISTRATION 1935.

SECTIONS 5 AND 19 OF THE ACT OF JUNE 26, 1934, 48 STAT. 1217, 1222, PROVIDE IN PART AS FOLLOWS:

* * * ALL SUCH FEES SHALL BE DEPOSITED WITH THE TREASURER OF THE UNITED STATES FOR THE ACCOUNT OF THE ADMINISTRATION AND MAY BE EXPENDED BY THE GOVERNOR FOR SUCH ADMINISTRATIVE AND OTHER EXPENSES INCURRED IN CARRYING OUT THE PROVISIONS HEREOF AS HE MAY DETERMINE TO BE PROPER, THE PURPOSE OF SUCH FEES BEING TO DEFRAY, AS FAR AS PRACTICABLE, THE ADMINISTRATIVE AND SUPERVISORY COSTS INCIDENT TO THE CARRYING OUT OF THIS ACT.

SEC. 19. NOT TO EXCEED $50,000 OF THE FUND AVAILABLE TO THE GOVERNOR UNDER SECTION 4 OF THE ACT OF MARCH 3, 1932, FOR EXPENSES OF ADMINISTRATION IN CONNECTION WITH LOANS MADE THEREUNDER TO AID IN THE ESTABLISHMENT OF AGRICULTURAL CREDIT CORPORATIONS, IS HEREBY MADE AVAILABLE ALSO FOR ADMINISTRATIVE EXPENSES IN ADMINISTERING THIS ACT.

SECTION 4 OF THE JOINT RESOLUTION OF MARCH 3, 1932, 47 STAT. 60, REFERRED TO IN SAID SECTION 19, WAS ONLY AN AUTHORIZATION FOR AN APPROPRIATION OF $10,000,000 FOR CARRYING OUT THE PURPOSES OF THE JOINT RESOLUTION. THE AMOUNT WAS APPROPRIATED BY THE ACT OF JULY 7, 1932, 47 STAT. 643.

THE DISSEMINATION OF INFORMATION REGARDING THE PURPOSES AND SCOPE OF A NEW FEDERAL STATUTE TO INTERESTED CITIZENS MAY BE REGARDED AS AN EXPENSE OF ADMINISTERING THE ACT, THE REASONABLE COST OF WHICH WOULD CONSTITUTE A PROPER CHARGE AGAINST FUNDS MADE AVAILABLE FOR THE ADMINISTRATION THEREOF.

WHETHER THE DISSEMINATION OF APPROPRIATE INFORMATION CONCERNING THE OPERATION OF THE ACT IN QUESTION SHOULD BE BY MEANS OF SENDING OUT PRINTED MATTER AND CIRCULAR LETTERS, OR BY MEANS OF SENDING OUT EMPLOYEES, IS WITHIN THE ADMINISTRATIVE DISCRETION OF THE GOVERNOR OF THE FARM CREDIT ADMINISTRATION, AND THE PROCEEDS OF FEES AND THE $50,000 FUND REFERRED TO ARE AVAILABLE FOR THE EXPENSES THEREOF IF OTHERWISE LEGAL AND PROPER. IS TO BE UNDERSTOOD, OF COURSE, THAT SUCH INFORMATION WILL BE FURNISHED BY EITHER METHOD ONLY IF AND WHEN NECESSARY TO ACCOMPLISH THE PURPOSES OF THE LAW.