A-62441, JUNE 8, 1935, 14 COMP. GEN. 878

A-62441: Jun 8, 1935

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

BOTH OF WHICH ACTIVITIES HAVE BEEN DECLARED UNCONSTITUTIONAL. IS NOT A PART OF OR AMENDMENT TO THE NATIONAL INDUSTRIAL RECOVERY ACT. 000 FOR THE PETROLEUM ADMINISTRATION DURING THE FISCAL YEAR 1935 WILL BE AVAILABLE FOR OBLIGATION AFTER JUNE 30. THE LANGUAGE USED IS AS FOLLOWS: "FOR ADMINISTERING AND ENFORCING THE PROVISIONS OF SECTION 9 (C) OF THE NATIONAL INDUSTRIAL RECOVERY ACT. THIS APPROPRIATION WAS APPORTIONED BY THE PRESIDENT AND UNDER ITS AUTHORITY THE SALARIES. OTHER ADMINISTRATIVE EXPENSES OF THE FOLLOWING ORGANIZATIONS HAVE BEEN PAID: PETROLEUM ADMINISTRATIVE BOARD. THE FIRST THREE-NAMED UNITS WERE ESTABLISHED TO ADMINISTER AND ENFORCE SECTION 9 (C) OF THE NATIONAL INDUSTRIAL RECOVERY ACT AND THE CODE OF FAIR COMPETITION FOR THE PETROLEUM INDUSTRY.

A-62441, JUNE 8, 1935, 14 COMP. GEN. 878

NATIONAL RECOVERY ADMINISTRATION - PETROLEUM ADMINISTRATION APPROPRIATIONS THE PETROLEUM ADMINISTRATIVE BOARD, THE PETROLEUM LABOR POLICY BOARD, AND THE OIL ENFORCEMENT SECTION, DEPARTMENT OF THE INTERIOR, HAVING BEEN ESTABLISHED TO ADMINISTER AND ENFORCE SECTION 9 (C) OF THE NATIONAL INDUSTRIAL RECOVERY ACT AND THE CODE OF FAIR COMPETITION IN THE PETROLEUM INDUSTRY, BOTH OF WHICH ACTIVITIES HAVE BEEN DECLARED UNCONSTITUTIONAL, EXPIRE AND CEASE TO EXIST JUNE 16, 1935, AND NO APPROPRIATION MAY THEREAFTER BE USED FOR THE EXPENSES OF THESE UNITS. AS THE CONNALLY OIL BILL, APPROVED FEBRUARY 22, 1935, IS NOT A PART OF OR AMENDMENT TO THE NATIONAL INDUSTRIAL RECOVERY ACT, NO PART OF THE APPROPRIATION OF $1,500,000 FOR THE PETROLEUM ADMINISTRATION DURING THE FISCAL YEAR 1935 WILL BE AVAILABLE FOR OBLIGATION AFTER JUNE 30, 1935, AS SECTION 12 OF THE EMERGENCY RELIEF APPROPRIATION ACT OF APRIL 8, 1935, EXTENDS THE AVAILABILITY ONLY OF FUNDS APPROPRIATED TO CARRY OUT THE NATIONAL INDUSTRIAL RECOVERY ACT.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF THE INTERIOR, JUNE 8, 1935:

THERE HAS BEEN RECEIVED YOUR LETTER OF MAY 28, 1935, AS FOLLOWS:

THE EMERGENCY APPROPRIATION ACT FOR THE FISCAL YEAR 1935 (48 STAT. 1057) APPROPRIATES $1,500,000 FOR PETROLEUM ADMINISTRATION. THE LANGUAGE USED IS AS FOLLOWS:

"FOR ADMINISTERING AND ENFORCING THE PROVISIONS OF SECTION 9 (C) OF THE NATIONAL INDUSTRIAL RECOVERY ACT, APPROVED JUNE 16, 1933 (48 STAT. 195), AND THE CODE OF FAIR COMPETITION FOR THE PETROLEUM INDUSTRY APPROVED PURSUANT TO THE AUTHORITY OF SAID ACT, AND FOR OTHER PURPOSES RELATING TO THE REGULATION OF COMMERCE IN PETROLEUM, TO BE ALLOCATED BY THE PRESIDENT, AND TO INCLUDE NECESSARY PERSONAL SERVICES IN THE DISTRICT OF COLUMBIA AND ELSEWHERE WITHOUT REGARD TO THE CIVIL SERVICE LAWS AND REGULATIONS, TRAVELING EXPENSES, RENT, AND NOT TO EXCEED $2,750 FOR BOOKS AND PERIODICALS, NOT TO EXCEED $48,000 FOR THE PURCHASE, HIRE, MAINTENANCE, OPERATION, AND REPAIR OF MOTOR-PROPELLED PASSENGER-CARRYING VEHICLES, NOT TO EXCEED $20,000 FOR THE MAINTENANCE, OPERATION, AND REPAIR OF FOUR MOTORBOATS, FISCAL YEAR 1935, $1,500,000.'

THIS APPROPRIATION WAS APPORTIONED BY THE PRESIDENT AND UNDER ITS AUTHORITY THE SALARIES, TRAVEL EXPENSES, AND OTHER ADMINISTRATIVE EXPENSES OF THE FOLLOWING ORGANIZATIONS HAVE BEEN PAID: PETROLEUM ADMINISTRATIVE BOARD, PETROLEUM LABOR POLICY BOARD, OIL ENFORCEMENT SECTION, DIVISION OF INVESTIGATIONS, FEDERAL TENDER BOARD NO. 1, FEDERAL PETROLEUM AGENCY NO. 1.

THE FIRST THREE-NAMED UNITS WERE ESTABLISHED TO ADMINISTER AND ENFORCE SECTION 9 (C) OF THE NATIONAL INDUSTRIAL RECOVERY ACT AND THE CODE OF FAIR COMPETITION FOR THE PETROLEUM INDUSTRY. THE FEDERAL TENDER BOARD AND THE FEDERAL PETROLEUM AGENCY WERE ESTABLISHED UNDER THE CONNALLY OIL BILL, PUBLIC, NO. 14, 74TH CONGRESS, THE PURPOSE OF WHICH IS "TO REGULATE INTERSTATE AND FOREIGN COMMERCE IN PETROLEUM AND ITS PRODUCTS BY PROHIBITING THE SHIPMENT IN SUCH COMMERCE OF PETROLEUM AND ITS PRODUCTS PRODUCED IN VIOLATION OF STATE LAW, AND FOR OTHER PURPOSES.'

SECTION 9 (C) OF THE NATIONAL INDUSTRIAL RECOVERY ACT WAS DECLARED UNCONSTITUTIONAL BY A DECISION OF THE SUPREME COURT OF THE UNITED STATES HANDED DOWN JANUARY 7, 1935. THE CONNALLY OIL BILL WAS PASSED TO CURE THE DEFECTS OF SECTION 9 (C), AND THIS ACT RUNS TO JUNE 16, 1937. THE CODE OF FAIR COMPETITION FOR THE PETROLEUM INDUSTRY EXPIRES JUNE 16, 1935. THE APPROPRIATION ACT ABOVE QUOTED IS FOR THE FISCAL YEAR ENDING JUNE 30, 1935.

AFTER JUNE 16, 1935, THERE WILL BE A LARGE AMOUNT OF WORK TO BE DONE IN TERMINATING THE AFFAIRS OF THE FIRST THREE-MENTIONED AGENCIES, SUCH AS CLEARING UP CORRESPONDENCE, COMPLETION OF RECORDS, PASSING OF VOUCHERS, SETTING UP FILES FOR TRANSFER TO THE INTERIOR DEPARTMENT, AND NUMEROUS TECHNICAL AND ADMINISTRATIVE DUTIES, ALL OF WHICH CAN BEST BE PERFORMED BY THOSE WHO ARE NOW IN THE ORGANIZATION AND FAMILIAR WITH ITS WORK. WOULD MEAN CHAOS TO DISMISS THE ENTIRE FORCE ON JUNE 16, 1935. IT IS THE OPINION OF THIS DEPARTMENT THAT NOTWITHSTANDING THE FACT THAT THE NATIONAL INDUSTRIAL RECOVERY ACT AND THE CODE OF FAIR COMPETITION FOR THE PETROLEUM INDUSTRY EXPIRE JUNE 16, 1935, THAT THE FUNDS APPROPRIATED FOR PETROLEUM ADMINISTRATION ARE AVAILABLE FOR OBLIGATIONS UP TO JUNE 30, 1935, AND YOUR OPINION IS REQUESTED AS TO WHETHER THIS APPROPRIATION CAN BE USED FOR THE PAYMENT OF PERSONAL SERVICES, TRAVEL EXPENSES AND OTHER ADMINISTRATIVE EXPENSES FOR THESE AGENCIES BETWEEN JUNE 16 AND JUNE 30, 1935.

PUBLIC RESOLUTION NO. 11, 74TH CONGRESS, KNOWN AS THE EMERGENCY RELIEF APPROPRIATION ACT OF 1935 IN SECTION 12 THEREOF CONTAINS THE FOLLOWING LANGUAGE:

"THE FEDERAL EMERGENCY ADMINISTRATION OF PUBLIC WORKS ESTABLISHED UNDER TITLE II OF THE NATIONAL INDUSTRIAL RECOVERY ACT IS HEREBY CONTINUED UNTIL JUNE 30, 1937, AND IS AUTHORIZED TO PERFORM SUCH OF ITS FUNCTIONS UNDER SAID ACT AND DENT. ALL SUMS APPROPRIATED TO CARRY OUT THE PURPOSES OF SAID ACT SHALL BE AVAILABLE UNTIL JUNE 30, 1937.'

IT IS THE OPINION OF THIS DEPARTMENT THAT THE LANGUAGE ABOVE ITALICIZED MAKES AVAILABLE UNTIL JUNE 30, 1937, THE UNEXPENDED BALANCE OF THE $1,500,000 ABOVE QUOTED FOR "OTHER PURPOSES RELATING TO THE REGULATION OF COMMERCE IN PETROLEUM" WHICH IS THE DECLARED PURPOSE OF THE CONNALLY OIL BILL. YOUR OPINION IS REQUESTED AS TO WHETHER THE UNEXPENDED BALANCE OF THIS APPROPRIATION IS CONTINUED THROUGH THE FISCAL YEAR 1936 AND IF SO, WHETHER IT IS AVAILABLE FOR EXPENSES OF THE FEDERAL TENDER BOARD AND THE FEDERAL PETROLEUM AGENCY ESTABLISHED UNDER PROVISIONS OF THE CONNALLY OIL BILL.

THE APPROPRIATION OF $1,500,000 FOR THE PETROLEUM ADMINISTRATION IN THE EMERGENCY APPROPRIATION ACT, FISCAL YEAR 1935, 48 STAT. 1057, IS BY ITS TERMS LIMITED TO THE FISCAL YEAR 1935. FURTHERMORE, SECTION 2 (C) OF THE NATIONAL INDUSTRIAL RECOVERY ACT OF JUNE 16, 1933, 48 STAT. 196, PROVIDES:

(C) THIS TITLE SHALL CEASE TO BE IN EFFECT AND ANY AGENCIES ESTABLISHED HEREUNDER SHALL CEASE TO EXIST AT THE EXPIRATION OF TWO YEARS AFTER THE DATE OF ENACTMENT OF THIS ACT, OR SOONER IF THE PRESIDENT SHALL BY PROCLAMATION OR THE CONGRESS SHALL BY JOINT RESOLUTION DECLARE THAT THE EMERGENCY RECOGNIZED BY SECTION 1 HAS ENDED.

THE THREE UNITS ESTABLISHED TO ADMINISTER AND ENFORCE SECTION 9 (C) OF THE NATIONAL INDUSTRIAL RECOVERY ACT AND THE CODE OF FAIR COMPETITION IN THE PETROLEUM INDUSTRY AS WELL AS ALL OTHER AGENCIES ESTABLISHED UNDER TITLE I OF SAID ACT, WILL, THEREFORE, AUTOMATICALLY EXPIRE AND CEASE TO EXIST JUNE 16, 1935, AND NO APPROPRIATION MAY THEREAFTER BE USED FOR PERSONAL SERVICES, TRAVELING, OR ADMINISTRATIVE EXPENSES OF THESE UNITS. SEE A-61940, MAY 14, 1935.

WHILE SECTION 12 OF THE EMERGENCY RELIEF APPROPRIATION ACT APPROVED APRIL 8, 1935, 49 STAT. 119, QUOTED IN YOUR SUBMISSION MAKES ALL SUMS APPROPRIATED TO CARRY OUT THE PURPOSES OF THE NATIONAL INDUSTRIAL RECOVERY ACT AVAILABLE UNTIL JUNE 30, 1937, THE APPROPRIATION HERE IN QUESTION WAS NOT MADE TO CARRY OUT THE PURPOSES OF SAID ACT BUT WAS MADE FOR ADMINISTERING AND ENFORCING THE PROVISIONS OF SECTION 9 (C) OF SAID ACT--- WHICH PROVISIONS WERE DECLARED UNCONSTITUTIONAL BY THE DECISION OF JANUARY 7, 1935--- AND THE CODE OF FAIR COMPETITION FOR THE PETROLEUM INDUSTRY--- WHICH, UNDER THE DECISION OF MAY 27, 1935, IN SCHECHTER POULTRY CORPORATION V. UNITED STATES, LIKEWISE IS UNCONSTITUTIONAL--- AND "FOR OTHER PURPOSES RELATING TO THE REGULATION OF COMMERCE IN PETROLEUM.' WHILE THE ACT OF FEBRUARY 22, 1935, 49 STAT. 30, REFERRED TO AS THE CONNALLY OIL BILL RELATES TO THE REGULATION OF COMMERCE IN PETROLEUM, IT IS NOT A PART OF OR AN AMENDMENT TO THE NATIONAL INDUSTRIAL RECOVERY ACT. ACCORDINGLY, NO PART OF THE APPROPRIATION OF $1,500,000 MADE FOR THE FISCAL YEAR 1935 IN ACT OF JUNE 19, 1934, WILL BE AVAILABLE FOR OBLIGATING FOR ANY PURPOSE AFTER JUNE 30, 1935. YOUR TWO QUESTIONS ARE ANSWERED IN THE NEGATIVE.