A-77982, JULY 13, 1936, 16 COMP. GEN. 19

A-77982: Jul 13, 1936

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IS AVAILABLE FOR NECESSARY EXPENSES INCIDENT TO THE PROCUREMENT OF SUCH INFORMATION AND RECORDS AS MAY BE NECESSARY IN THE ADMINISTRATION OF THE RAILROAD RETIREMENT ACT OF 1935. 1936: I HAVE YOUR LETTER OF JULY 7. ON PAGE 2 OF THE DECREE IT IS PROVIDED. " IT IS RESPECTFULLY REQUESTED THAT YOU INFORM THIS OFFICE OF THE MANNER IN WHICH THE RAILROAD RETIREMENT BOARD MAY REIMBURSE THE RAILROADS FOR ANY EXPENSES INCURRED BY THEM IN MAKING RECORDS AND INFORMATION AVAILABLE FOR THE RAILROAD RETIREMENT BOARD. IT IS ANTICIPATED THAT THIS EXPENSE WILL CONSIST MAINLY OF THE COST OF CLERICAL ASSISTANCE. IT IS NOW. EACH AND EVERY PROVISION THEREOF ARE VOID AND OF NO EFFECT INSOFAR AS THE PLAINTIFFS AND INTERVENERS ARE CONCERNED.

A-77982, JULY 13, 1936, 16 COMP. GEN. 19

APPROPRIATIONS - RAILROAD RETIREMENT BOARD - EXPENSES OF CARRIERS FURNISHING INFORMATION THE APPROPRIATION "FOR SALARIES AND EXPENSES, RAILROAD RETIREMENT BOARD," IN THE ACT OF MARCH 19, 1936, 49 STAT. 1178, IS AVAILABLE FOR NECESSARY EXPENSES INCIDENT TO THE PROCUREMENT OF SUCH INFORMATION AND RECORDS AS MAY BE NECESSARY IN THE ADMINISTRATION OF THE RAILROAD RETIREMENT ACT OF 1935, REIMBURSEMENT TO CARRIERS FOR EXPENSES IN FURNISHING SUCH INFORMATION TO BE UPON VOUCHERS SWORN TO BY A PROPER OFFICIAL OF THE CARRIER, SUPPORTED BY AN ITEMIZED STATEMENT OF EXPENSES INCURRED.

ACTING COMPTROLLER GENERAL ELLIOTT TO THE CHAIRMAN, RAILROAD RETIREMENT BOARD, JULY 13, 1936:

I HAVE YOUR LETTER OF JULY 7, 1936, AS FOLLOWS:

I AM ATTACHING FOR YOUR INFORMATION A COPY OF THE DECREE ISSUED BY JUSTICE JENNINGS BAILEY OF THE DISTRICT COURT OF THE UNITED STATES FOR THE DISTRICT OF COLUMBIA ON JUNE 30, 1936, FOLLOWING THE RECENT HEARING IN THE CASE OF THE ALTON RAILROAD COMPANY AND OTHERS V. RAILROAD RETIREMENT BOARD AND THE COMMISSIONER OF INTERNAL REVENUE.

ON PAGE 2 OF THE DECREE IT IS PROVIDED, WITH REFERENCE TO THE RAILROAD RETIREMENT BOARD OBTAINING RECORDS AND INFORMATION FROM THE RAILROADS,"* * * THAT NOTHING HEREIN SHALL AFFECT OR QUALIFY THE RIGHT OF SAID DEFENDANTS (THE RAILROAD RETIREMENT BOARD) TO EXAMINE THE RECORDS OF PLAINTIFFS (THE RAILROADS) OR ANY OF THEM, AT THE EXPENSE OF SAID DEFENDANTS INCLUDING ALL EXPENSES THAT MAY BE NECESSARILY INCURRED BY THE PLAINTIFFS IN MAKING SAID RECORDS AVAILABLE; "

IT IS RESPECTFULLY REQUESTED THAT YOU INFORM THIS OFFICE OF THE MANNER IN WHICH THE RAILROAD RETIREMENT BOARD MAY REIMBURSE THE RAILROADS FOR ANY EXPENSES INCURRED BY THEM IN MAKING RECORDS AND INFORMATION AVAILABLE FOR THE RAILROAD RETIREMENT BOARD. IT IS ANTICIPATED THAT THIS EXPENSE WILL CONSIST MAINLY OF THE COST OF CLERICAL ASSISTANCE, ALTHOUGH IN SOME CASES OTHER EXPENSES MAY BE INVOLVED.

THE DECREE OF THE COURT PROVIDES AS FOLLOWS:

THIS CAUSE CAME ON FOR FINAL HEARING AT THIS TIME UPON THE BILL, INTERVENING PETITION, ANSWERS OF THE DEFENDANTS, STIPULATIONS ADMITTING OTHER PARTIES PLAINTIFFS, AND UPON THE EVIDENCE OF THE PARTIES HERETO AND THE CASE BEING FULLY ARGUED AND BRIEFS FILED AND CONSIDERED, IT IS NOW, THEREFORE, ORDERED, ADJUDGED, AND DECREED:

1. THAT THE ACT OF CONGRESS ENTITLED "AN ACT TO LEVY AN EXCISE TAX UPON CARRIERS AND AN INCOME TAX UPON THEIR EMPLOYEES, AND FOR OTHER PURPOSES," APPROVED AUGUST 29, 1935, AND EACH AND EVERY PROVISION THEREOF ARE VOID AND OF NO EFFECT INSOFAR AS THE PLAINTIFFS AND INTERVENERS ARE CONCERNED;

2. THAT THE DEFENDANT RAILROAD RETIREMENT BOARD AND DEFENDANTS MURRAY W. LATIMER, JAMES A. DAILEY, AND LEE M. EDDY, INDIVIDUALLY AND AS MEMBERS OF THE RAILROAD RETIREMENT BOARD, AND ALL THOSE ACTING OR CLAIMING TO ACT UNDER THEIR AUTHORITY OR BY THEIR DIRECTION, BE AND THEY ARE PERMANENTLY ENJOINED FROM MAKING ANY ORDER OR FROM INSTITUTING OR TAKING ANY STEP TOWARD THE INSTITUTION OF ANY ACTIONS, PROCEEDINGS OR PROSECUTIONS, DESIGNED TO COMPEL PLAINTIFFS OR THEIR OFFICERS OR ANY OF THEM TO ASSEMBLE, COMPILE OR FURNISH ANY INFORMATION AND RECORDS REQUIRED OR WHICH MAY BE REQUIRED TO BE FURNISHED UNDER SAID RETIREMENT ACT: PROVIDED, HOWEVER, THAT NOTHING HEREIN SHALL AFFECT OR QUALIFY THE RIGHT OF SAID DEFENDANTS TO EXAMINE THE RECORDS OF PLAINTIFFS OR ANY OF THEM, AT THE EXPENSE OF SAID DEFENDANTS INCLUDING ALL EXPENSES THAT MAY BE NECESSARILY INCURRED BY THE PLAINTIFFS IN MAKING SAID RECORDS AVAILABLE;

3. THAT DEFENDANT GUY T. HELVERING, INDIVIDUALLY AND AS COMMISSIONER OF INTERNAL REVENUE, AND ALL THOSE ACTING OR CLAIMING TO ACT UNDER HIS AUTHORITY OR BY HIS DIRECTION, BE AND HE IS PERMANENTLY ENJOINED FROM MAKING ANY ORDER AND FROM INSTITUTING OR TAKING ANY STEPS TOWARD THE INSTITUTION OF ANY ACTIONS, PROCEEDINGS OR PROSECUTIONS DESIGNED TO COMPEL PLAINTIFFS OR THEIR OFFICERS OR ANY OF THEM TO PAY ANY AMOUNT PURSUANT TO SECTIONS 2, 3, AND 4 OF THE TAX ACT, APPROVED AUGUST 29, 1935, AND FROM DEMANDING, COLLECTING, OR ATTEMPTING TO COLLECT ANY SUCH AMOUNT FROM PLAINTIFFS OR INTERVENERS, OR ANY OF THEM;

4. THAT, UNTIL THE FINAL DETERMINATION OF ALL APPEALS IN THIS CAUSE, SUCH SUMS, AS HAVE BEEN OR MAY BE COLLECTED BY ANY PLAINTIFF CARRIERS FROM THEIR EMPLOYEES BY DEDUCTION FROM THE COMPENSATION OF THE EMPLOYEES PURSUANT TO SECTION 3 (A) OF THE TAX ACT, SHALL BE HELD BY SUCH PLAINTIFF CARRIERS IN SPECIAL ACCOUNT OR ACCOUNTS, SUBJECT TO THE ORDER OF THIS COURT; AND THAT SUCH PLAINTIFF CARRIERS SHALL ON JULY 31, 1936, SEPTEMBER 30, 1936, AND QUARTERLY THEREAFTER MAKE REPORTS TO THIS COURT OF THE AMOUNTS SO HELD BY EACH SUCH CARRIER AS OF MAY 31, 1936, AND AS OF THE LAST DAY OF EACH RESPECTIVE QUARTERLY PERIOD THEREAFTER.

THIS THE 30TH DAY OF JUNE, 1936.

PARAGRAPH 2 OF THE DECREE ENJOINS THE RAILROAD RETIREMENT BOARD AND ALL PERSONS ACTING OR CLAIMING TO ACT UNDER ITS AUTHORITY FROM DOING ANYTHING DESIGNED TO COMPEL THE CARRIERS TO FURNISH ANY INFORMATION OR RECORDS REQUIRED TO BE FURNISHED UNDER "SAID RETIREMENT ACT.' THE ONLY ACT OTHERWISE MENTIONED IN THE DECREE IS THE TAXING ACT, 49 STAT. 974, BUT AS THIS ACT DOES NOT PURPORT TO IMPOSE ANY DUTY OR CONFER ANY AUTHORITY ON THE RAILROAD RETIREMENT BOARD OR TO REQUIRE THE CARRIERS TO FURNISH ANY INFORMATION OR RECORDS TO THE BOARD, IT MAY BE ASSUMED THAT SAID PARAGRAPH 2 OF THE DECREE HAS REFERENCE TO SECTION 6 (B) OF THE RAILROAD RETIREMENT ACT OF 1935, 49 STAT. 971, WHICH PROVIDES THAT "THE BOARD SHALL HAVE POWER TO REQUIRE ALL CARRIERS * * * TO FURNISH SUCH INFORMATION AND RECORDS AS SHALL BE NECESSARY FOR THE ADMINISTRATION OF THIS ACT.'

WHILE THE DECREE ENJOINS ANY COMPULSORY PROCESS FOR PROCURING SUCH INFORMATION OR RECORDS, IT DOES NOT PRECLUDE THE BOARD FROM EXAMINING THE RECORDS OF THE CARRIERS AT THE EXPENSE OF THE BOARD. THEREFORE, IF, PENDING FINAL DETERMINATION OF ANY APPEALS FROM THE DECISION OF THE DISTRICT COURT IN THIS MATTER, IT SHOULD BE ADMINISTRATIVELY DETERMINED THAT THE BOARD SHALL PROCEED WITH THE ADMINISTRATION OF THE RAILROAD RETIREMENT ACT (EXCEPT IN THE PARTICULARS WITH RESPECT TO WHICH IT HAS BEEN ENJOINED) AND WITH THE PAYMENT OF ANNUITIES AS PROVIDED FOR THEREIN-- - IT WOULD APPEAR THAT THE APPROPRIATION MADE IN THE ACT OF MARCH 19, 1936, 49 STAT. 1178, IN THE FOLLOWING TERMS:

FOR SALARIES AND EXPENSES, RAILROAD RETIREMENT BOARD:FOR THREE BOARD MEMBERS, AND FOR ALL OTHER AUTHORIZED AND NECESSARY EXPENDITURES OF THE RAILROAD RETIREMENT BOARD IN PERFORMING THE DUTIES IMPOSED BY LAW OR IN PURSUANCE OF LAW, INCLUDING RENT AND PERSONAL SERVICES IN THE DISTRICT OF COLUMBIA AND ELSEWHERE, TRAVELING EXPENSES, REPAIRS AND ALTERATIONS, CONTRACT STENOGRAPHIC REPORTING SERVICES, OFFICE SUPPLIES AND EQUIPMENT, SERVICES, LAW BOOKS, BOOKS OF REFERENCE, NEWSPAPERS AND PERIODICALS, $1,000,000: * * *. IS AVAILABLE FOR THE NECESSARY EXPENSES INCIDENT TO THE PROCUREMENT OF SUCH INFORMATION AND RECORDS AS MAY BE NECESSARY TO ENABLE THE BOARD TO ADMINISTER THE RAILROAD RETIREMENT ACT OF 1935--- AND THIS WOULD NOT APPEAR AFFECTED BY THAT THE DISTRICT COURT HAS ENJOINED THE COLLECTION OF THE TAXES WHICH MAY HAVE BEEN INTENDED TO COVER THE COST OF SUCH ADMINISTRATION AND THE AMOUNT OF SUCH ANNUITY PAYMENTS. REIMBURSEMENT OF A CARRIER FOR EXPENSES INCURRED BY IT IN FURNISHING INFORMATION OR RECORDS REQUIRED BY THE BOARD IN CONNECTION WITH THE ADMINISTRATION OF THE ACT SHOULD BE UPON VOUCHERS SWORN TO BY A PROPER OFFICIAL OF THE CARRIER AND CONTAINING AN ITEMIZED STATEMENT OF THE EXPENSES INCURRED FOR WHICH REIMBURSEMENT IS CLAIMED.