A-60242, MARCH 2, 1935, 14 COMP. GEN. 681

A-60242: Mar 2, 1935

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ARE REQUIRED TO BE PERFORMED BY THE PERSONNEL OF THE SECURITIES AND EXCHANGE COMMISSION UNDER ITS ADMINISTRATIVE SUPERVISION. 1935: THERE WAS RECEIVED IN THIS OFFICE FOR PREAUDIT ADMINISTRATIVELY APPROVED VOUCHER NO. 746. IN THE AMOUNT OF $225.46 IN FAVOR OF THE STATE OF CALIFORNIA AS REIMBURSEMENT OF EXPENSES ALLEGED TO HAVE BEEN INCURRED IN CONNECTION WITH AN EXAMINATION OF CERTAIN MINING PROPERTY BY L. THE ITEMIZATION OF THE AMOUNT CLAIMED ON THE VOUCHER IS AS FOLLOWS: CHART CHARGES OF THE DEPARTMENT OF INVESTMENT. 225.46 THE VOUCHER WAS RETURNED WITHOUT CERTIFICATION JANUARY 14. FOR THE REASON THERE WAS NO SHOWING OF AUTHORITY IN THE COMMISSION TO HAVE SUCH EXAMINATION MADE BY AN EMPLOYEE OF THE STATE OF CALIFORNIA.

A-60242, MARCH 2, 1935, 14 COMP. GEN. 681

PERSONAL SERVICES - INVESTIGATORS - SECURITIES AND EXCHANGE COMMISSION ALL INVESTIGATIONS AUTHORIZED BY THE SECURITIES EXCHANGE ACT OF 1934, DATED JUNE 6, 1934, 48 STAT. 892, ARE REQUIRED TO BE PERFORMED BY THE PERSONNEL OF THE SECURITIES AND EXCHANGE COMMISSION UNDER ITS ADMINISTRATIVE SUPERVISION, AND THE SERVICES OF ENGINEERS OR INVESTIGATORS MAY NOT BE OBTAINED BY THE COMMISSION THROUGH AGREEMENT, CONTRACT, OR OTHER ARRANGEMENT WITH A STATE OR OTHER AGENCY FOR THE LOAN OR USE OF ITS PERSONNEL ON A REIMBURSEMENT BASIS.

ACTING COMPTROLLER GENERAL ELLIOTT TO THE CHAIRMAN, SECURITIES AND EXCHANGE COMMISSION, MARCH 2, 1935:

THERE WAS RECEIVED IN THIS OFFICE FOR PREAUDIT ADMINISTRATIVELY APPROVED VOUCHER NO. 746, IN THE AMOUNT OF $225.46 IN FAVOR OF THE STATE OF CALIFORNIA AS REIMBURSEMENT OF EXPENSES ALLEGED TO HAVE BEEN INCURRED IN CONNECTION WITH AN EXAMINATION OF CERTAIN MINING PROPERTY BY L. C. WYMAN, ENGINEER, DEPARTMENT OF INVESTIGATIONS, STATE OF CALIFORNIA, DURING THE PERIOD OCTOBER 31, 1934, TO NOVEMBER 9, 1934.

THE ITEMIZATION OF THE AMOUNT CLAIMED ON THE VOUCHER IS AS FOLLOWS:

CHART

CHARGES OF THE DEPARTMENT OF INVESTMENT, DIVISION OF CORPORATIONS, STATE

OF CALIFORNIA, IN CONNECTION WITH THE EXAMINATION OF PROPERTY OF BIG

WEDGE GOLD MINING COMPANY, AND ATTENDANCE AT THE HEARING HELD AT THE

FEDERAL BUILDING, LOS ANGELES, NOVEMBER 5TH, 6TH, 7TH, AND 8TH, 1934 10- 31-34 -- CARFARE SAN FRANCISCO --------------------------------- $0.05 10- 31-34 -- RAILROAD FARE, ROUND TRIP, SAN FRANCISCO TO LOS

ANGELES AND PULLMAN --------------------------------- 21.75 10-31-34 -- DINNER ON TRAIN ------------------------------------ -- 1.50 11- 1-34 -- CARFARE LOS ANGELES ---------------------------- ------.25 11- 1-34 -- 2 POUNDS CARBIDE ------------------------------- ------ .41 11- 1-34 -- THREE MEALS -------------------------------- ---------- 3.00 11- 2-34 -- THREE MEALS, LONE PINE ----------------- -------------- 3.00 11- 3-34 -- THREE MEALS, LONE PINE ------------- ------------------ 3.00 11- 4-34 -- HOTEL ROOM --------------------- ---------------------- 7.50 11- 4-34 -- THREE MEALS ------------------ ------------------------ 3.00 11- 4-34 -- GARAGE ------------------- ---------------------------- .30 11- 5-34 -- THREE MEALS, LOS ANGELES ------------------------------ 3.00 11- 5-34 -- CARFARE ---- ------------------------------------------ .25 11- 6-34 -- THREE MEALS AND CARFARE, LOS ANGELES ------------------ 3.25 11- 7-34 -- THREE MEALS AND CARFARE, LOS ANGELES ------------------ 3.25 11- 8 34 -- THREE MEALS AND CARFARE, LOS ANGELES ------------------ 3.25 11- 8-34 -- HOTEL ROOM -------------------------------------------- 12.00 11- 8-34 -- PULLMAN ----------------------------------------------- 3.00 11- 9-34 -- BREAKFAST ON TRAIN AND CARFARE, SAN FRANCISCO ------- - 1.55

TOTAL -------------------------------------------- 73.31

CHARGES TELEPHONE CALL E. FORREST TANCER -------------- .15

544 MILES LOS ANGELES TO UNION MINE AND RETURN AT 6 CENTS

PER MILE ------------------------------------ 32.64

JOHN HERMAN, BILL FOR ASSAYING ------------------------ 30.00

8 DAYS' TIME, L. C. WYMAN, AT $11.17 PER DAY ----------

89.36

------TOTAL

-------------------------------------------- 225.46

THE VOUCHER WAS RETURNED WITHOUT CERTIFICATION JANUARY 14, 1935, FOR THE REASON THERE WAS NO SHOWING OF AUTHORITY IN THE COMMISSION TO HAVE SUCH EXAMINATION MADE BY AN EMPLOYEE OF THE STATE OF CALIFORNIA.

UNDER DATE OF JANUARY 28 THE VOUCHER WAS RESUBMITTED WITH A MEMORANDUM OF EXPLANATION AS FOLLOWS:

THE FOLLOWING EXPLANATION IS SUBMITTED IN CONNECTION WITH THE CLAIM OF THE STATE OF CALIFORNIA FOR SERVICES RENDERED DURING THE MONTHS OF OCTOBER AND NOVEMBER 1934.

IT WAS ESSENTIAL THAT CERTAIN TECHNICAL INFORMATION CONTAINED IN THE REGISTRATION STATEMENT SUBMITTED TO THE COMMISSION BY THE BIG WEDGE GOLD MINING COMPANY BE INVESTIGATED FOR THE REASON THAT A HEARING THEREON HAD BEEN SET FOR AN EARLY DATE. THE COMMISSION SOUGHT THE ISSUANCE OF A STOP ORDER SUSPENDING THE EFFECTIVENESS OF THIS REGULATION STATEMENT.

UPON DETERMINING THAT A PHYSICAL EXAMINATION OF THE PROPERTY WAS NECESSARY, AND AS NO EMPLOYEE OF THE COMMISSION WAS IMMEDIATELY AVAILABLE FOR THIS WORK, MR. WRIGHT, DIRECTOR OF THE BUREAU OF MINES, WAS REQUESTED BY WIRE TO DESIGNATE AN EMPLOYEE OF THE BERKELEY, CALIFORNIA OFFICE OF THE BUREAU OF MINES TO DESIGNATE AN EMPLOYEE OF THE BERKELEY, CALIFORNIA OFFICE OF THE BUREAU OF MINES TO MAKE THIS INVESTIGATION. HE NOTIFIED MR. MONTGOMERY, CHIEF, EXAMINATION DIVISION OF THIS COMMISSION, THAT THERE WAS NO EMPLOYEE OF THE BUREAU OF MINES AVAILABLE FOR THIS INVESTIGATION.

DUE TO THE LIMITED TIME AVAILABLE IT WAS THOUGHT TO BE IMPRACTICABLE TO HIRE A TEMPORARY EMPLOYEE FROM THE CIVIL SERVICE REGISTER TO DO THIS WORK.

INFORMATION WAS RECEIVED THAT A CERTAIN EMPLOYEE OF THE STATE OF CALIFORNIA WAS EXCEPTIONALLY WELL QUALIFIED TO INVESTIGATE THIS PROPERTY, BECAUSE HE HAD PREVIOUSLY STUDIED THE PROPERTIES IN HIS CAPACITY AS AN OFFICIAL OF THE STATE OF CALIFORNIA. THEREFORE, ARRANGEMENTS WERE MADE TO OBTAIN HIS SERVICES, WHICH PROVED TO BE MOST SATISFACTORY. IT IS ALSO THOUGHT THAT, CONSIDERING THE TIME ELEMENT INVOLVED, THESE ARRANGEMENTS WERE THE MOST PRACTICABLE AND ECONOMICAL THAT COULD BE MADE. IT PROBABLY WOULD HAVE TAKEN A PERSON UNFAMILIAR WITH THIS PARTICULAR PROPERTY A MUCH LONGER TIME TO MAKE THE INVESTIGATION, WHICH, IN TURN, WOULD HAVE JEOPARDIZED THE INTERESTS OF THE GOVERNMENT.

THE ASSAYING COULD NOT HAVE BEEN ACCOMPLISHED BY THE GOVERNMENT MINT BECAUSE THE NECESSITY OF THE ASSAY WOULD NOT ADMIT DELAY. SAMPLES FROM THE MINE WERE AVAILABLE ON NOVEMBER 3, AND WITH THE HEARING SET FOR NOVEMBER 5TH, THERE WAS NO CHOICE BUT TO ARRANGE FOR THE ASSAYING LOCALLY. PROMPT AND DEFINITE DECISION IN THESE MATTERS WERE IMPERATIVE.

SECTION 12 (A) OF THE SECURITIES EXCHANGE ACT OF 1934, DATED JUNE 6, 1934, 48 STAT. 892, MAKES CERTAIN REQUIREMENT FOR THE REGISTRATION OF SECURITIES. SECTION 21 (A) OF THE ACT AUTHORIZES THE SECURITIES AND EXCHANGE COMMISSION TO "MAKE SUCH INVESTIGATIONS AS IT DEEMS NECESSARY TO DETERMINE WHETHER ANY PERSON HAS VIOLATED OR IS ABOUT TO VIOLATE ANY PROVISION OF THIS TITLE OR ANY RULE OR REGULATION THEREUNDER, AND MAY REQUIRE OR PERMIT ANY PERSON TO FILE WITH IT A STATEMENT IN WRITING UNDER OATH, OR OTHERWISE AS THE COMMISSION SHALL DETERMINE, AS TO ALL THE FACTS AND CIRCUMSTANCES CONCERNING THE MATTER TO BE INVESTIGATED.'

SECTIONS 21 AND 22 AUTHORIZE THE COMMISSION TO CONDUCT PUBLIC HEARINGS OR TO INSTITUTE SUIT IN CERTAIN CASES.

THUS THE INVESTIGATION AS TO THE ACCURACY OF STATEMENTS MADE IN CONNECTION WITH THE REGISTRATION OF A SECURITY IS A DUTY IMPOSED BY LAW ON THE SECURITIES AND EXCHANGE COMMISSION. SUCH AN INVESTIGATION, AND IN FACT ALL INVESTIGATIONS AUTHORIZED BY THE STATUTE, ARE REQUIRED TO BE PERFORMED BY THE PERSONNEL OF THE COMMISSION AUTHORIZED TO BE EMPLOYED BY SECTION 4 (B) OF THE ACT, AND UNDER ITS GENERAL ADMINISTRATIVE SUPERVISION. PAYMENT FOR SUCH SERVICES IS AUTHORIZED ONLY IN ACCORDANCE WITH THE APPLICABLE FEDERAL STATUTES CONTROLLING PAYMENT OF SALARIES AND TRAVEL EXPENSES. SEE 14 COMP. GEN. 70. IN THE ABSENCE OF SPECIFIC STATUTORY AUTHORITY THEREFOR, THE SERVICES OF ENGINEERS OR INVESTIGATORS MAY NOT BE OBTAINED BY THE COMMISSION THROUGH AGREEMENT, CONTRACT, OR OTHER ARRANGEMENT WITH A STATE OR OTHER AGENCY FOR THE LOAN OR USE OF ITS PERSONNEL ON A REIMBURSEMENT BASIS. 4 COMP. GEN. 557; 6 ID. 820; 11 ID. 252; 14 ID. 404. ACCORDINGLY, THE VOUCHER IN QUESTION WILL NOT BE CERTIFIED FOR PAYMENT.