A-96853, NOVEMBER 23, 1938, 18 COMP. GEN. 471

A-96853: Nov 23, 1938

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THE ENGINES AND PARTS CONTEMPLATED BY THE ACT HAVE REFERENCE TO SUCH AS USED IN MOTOR-PROPELLED VEHICLES AND AEROPLANES AND NOT PARTS OF MARINE ENGINES ON ARMY TRANSPORTS. THE TRADE-IN VALUE OF REPLACED CONDENSER TUBES OF SUCH MARINE ENGINES IS FOR COVERING IN AS MISCELLANEOUS RECEIPTS IN THE ABSENCE OF STATUTORY AUTHORITY OTHERWISE. IT APPEARS FROM CORRESPONDENCE TRANSMITTED BY THE CHIEF OF FINANCE THAT A CHANGE ORDER WAS ISSUED IN THE AMOUNT OF $15. THE REASONS FOR THE ADJUSTMENT NOW REQUESTED ARE STATED IN FIRST ENDORSEMENT. IT IS THE OPINION OF THIS OFFICE THAT THE TRADE-IN ALLOWANCE OF $2. 600.00 FOR THE OLD MAIN CONDENSER TUBES REMOVED FROM THE TRANSPORT REPUBLIC SHOULD BE CREDITED TO THE PROCUREMENT AUTHORITY UNDER WHICH THE RETUBING WORK WAS PERFORMED.

A-96853, NOVEMBER 23, 1938, 18 COMP. GEN. 471

CONTRACTS - EXCHANGES - USED FOR NEW MARINE ENGINE CONDENSER TUBES - DISPOSITION OF TRADE-IN VALUE THE PROVISO TO THE APPROPRIATION FOR THE SIGNAL SERVICE OF THE ARMY IN THE ARMY APPROPRIATION ACT FOR THE FISCAL YEAR 1918, 40 STAT. 43,"THAT HEREAFTER MOTOR-PROPELLED VEHICLES, AEROPLANES, ENGINES, AND PARTS THEREOF MAY BE EXCHANGED IN PART PAYMENT FOR NEW EQUIPMENT OF THE SAME OR SIMILAR CHARACTER, * * *" BEING FOR CONSTRUCTION ON THE BASIS OF THE WELL- ESTABLISHED RULE THAT SINGLE WORDS MUST BE TAKEN WITH THE CONTEXT AND GENERAL SCOPE AND OBJECT OF THE PROVISION IN ORDER TO ASCERTAIN THE LEGISLATIVE INTENTION, THE ENGINES AND PARTS CONTEMPLATED BY THE ACT HAVE REFERENCE TO SUCH AS USED IN MOTOR-PROPELLED VEHICLES AND AEROPLANES AND NOT PARTS OF MARINE ENGINES ON ARMY TRANSPORTS, AND THE TRADE-IN VALUE OF REPLACED CONDENSER TUBES OF SUCH MARINE ENGINES IS FOR COVERING IN AS MISCELLANEOUS RECEIPTS IN THE ABSENCE OF STATUTORY AUTHORITY OTHERWISE.

ACTING COMPTROLLER GENERAL ELLIOTT TO THE SECRETARY OF WAR, NOVEMBER 23, 1938:

THE CHIEF OF FINANCE BY SIXTH ENDORSEMENT OF DECEMBER 22, 1937, FILE FAR- 3 574/246608 (U.S.A.T. REPUBLIC), REQUESTED THAT THE AMOUNT OF $2,600, REPRESENTING TRADE-IN ALLOWANCE FOR THE OLD MAIN CONDENSER TUBES REMOVED FROM THE TRANSPORT REPUBLIC, DEPOSITED ON CERTIFICATE OF DEPOSIT NO. 5- M.R., NOVEMBER 30, 1937, BY LT.COL. M. T. LEGG, FINANCE DEPARTMENT, AS MISCELLANEOUS CEIPTS,"SALE OF EQUIPMENT," BE TRANSFERRED THEREFROM AND CREDITED TO "ARMY TRANSPORTATION, 1937.'

IT APPEARS FROM CORRESPONDENCE TRANSMITTED BY THE CHIEF OF FINANCE THAT A CHANGE ORDER WAS ISSUED IN THE AMOUNT OF $15,019 TO COVER THE COST OF RETUBING THE MAIN CONDENSERS OF THE TRANSPORT REPUBLIC, AMOUNTING TO $17,619 LESS TRADE-IN ALLOWANCE OF $2,600 FOR THE OLD TUBES, BUT THAT IN MAKING SETTLEMENT OF THE ACCOUNT THE LOCAL FINANCE OFFICER CREDITED THE ALLOWANCE FOR THE OLD TUBES TO MISCELLANEOUS RECEIPTS LEAVING A CHARGE OF $17,619 AGAINST PROCUREMENT AUTHORITY QM 1311 P 15-1291 A 0525-8. THE REASONS FOR THE ADJUSTMENT NOW REQUESTED ARE STATED IN FIRST ENDORSEMENT, OFFICE OF THE QUARTERMASTER GENERAL, DATED NOVEMBER 24, 1937, AS FOLLOWS:

1. IT IS THE OPINION OF THIS OFFICE THAT THE TRADE-IN ALLOWANCE OF $2,600.00 FOR THE OLD MAIN CONDENSER TUBES REMOVED FROM THE TRANSPORT REPUBLIC SHOULD BE CREDITED TO THE PROCUREMENT AUTHORITY UNDER WHICH THE RETUBING WORK WAS PERFORMED, AS PROVIDED FOR IN THE SPECIFICATIONS AND CONTRACT, AND AUTHORIZED UNDER EXISTING LAW. THESE TUBES ARE CONSIDERED A PART OF THE MAIN ENGINE, THE CONDENSER BEING BUILT INTO THE ENGINE CYLINDER SUPPORTS, AND AS SUCH IT IS BELIEVED THAT THEY MAY BE EXCHANGED IN PART PAYMENT FOR NEW EQUIPMENT OF THE SAME CHARACTER USED FOR THE SAME PURPOSE UNDER THE PROVISIONS OF THE ACT OF MAY 12, 1917 (40 STAT. 43; U.S.C. 10: 1272; SECS. 2044, 2077, M.L. 1929), PROVIDING FOR SUCH EXCHANGE OF ENGINES AND PARTS THEREOF.

2. BIDS WERE OBTAINED FOR THE SALE OF THESE TUBES, INDEPENDENT OF THE TRADE-IN ALLOWANCE OFFERED BY CONTRACTORS BIDDING ON THE CONDENSER REPAIRS, AND THE TRADE-IN ALLOWANCE OFFERED BY THE SUCCESSFUL BIDDER WAS MUCH IN EXCESS OF THE AMOUNT THAT COULD BE OBTAINED IF THE OLD TUBES WERE SOLD SEPARATELY.

3. IT IS RECOMMENDED THAT THE AMOUNT RECEIVED AS A CREDIT IN THE TRADE-IN ALLOWANCE BE ALLOWED AS PART PAYMENT FOR THE REPAIRS TO THE CONDENSER.

THE PROVISIONS OF LAW REFERRED TO BY THE QUARTERMASTER GENERAL WERE ORIGINALLY ENACTED AS A PROVISO TO THE APPROPRIATION FOR THE SIGNAL SERVICE OF THE ARMY IN THE ARMY APPROPRIATION ACT FOR THE FISCAL YEAR 1918, APPROVED MAY 12, 1917, 40 STAT. 43, AND ARE IN FULL AS FOLLOWS:

PROVIDED FURTHER, THAT HEREAFTER MOTOR-PROPELLED VEHICLES, AEROPLANES, ENGINES, AND PARTS THEREOF MAY BE EXCHANGED IN PART PAYMENT FOR NEW EQUIPMENT OF THE SAME OR SIMILAR CHARACTER, TO BE USED FOR THE SAME PURPOSE AS THOSE PROPOSED TO BE EXCHANGED.

IT IS A WELL-ESTABLISHED RULE OF STATUTORY CONSTRUCTION THAT SINGLE WORDS USED IN A STATUTE MUST BE TAKEN WITH THE CONTEXT AND GENERAL SCOPE AND OBJECT OF THE PROVISION IN ORDER TO ASCERTAIN THE INTENTION OF THE LEGISLATURE. BINNEY V. C. AND O. CANAL CO., 8 PET. 201, 8 L.ED. 917. WHILE THE ACT OF MAY 12, 1917, PROVIDES FOR THE EXCHANGE OF ENGINES AND PARTS THEREOF IN PART PAYMENT FOR NEW EQUIPMENT, IT IS EVIDENT THAT THE ENGINES AND PARTS CONTEMPLATED BY THE ACT ARE SUCH AS USED IN MOTOR- PROPELLED VEHICLES AND AEROPLANES, AND THERE IS NOTHING IN THE STATUTE SHOWING ANY INTENTION TO AUTHORIZE THE EXCHANGE OF PARTS OF MARINE ENGINES ON ARMY TRANSPORTS UNDER THE CONTROL OF A DIFFERENT BRANCH OF THE SERVICE IN PART PAYMENT FOR NEW EQUIPMENT.

THERE IS NO AUTHORITY IN THE APPROPRIATION "ARMY TRANSPORTATION, 1937," FOR EXCHANGE OF USED EQUIPMENT SUCH AS HERE IN QUESTION IN PART PAYMENT FOR NEW EQUIPMENT PURCHASED THEREUNDER, AND IN THE ABSENCE OF SPECIFIC AUTHORITY OF LAW FOR SUCH EXCHANGE IT MUST BE HELD, FOLLOWING THE LONG- ACCEPTED RULE OF THE ACCOUNTING OFFICERS, THAT THE AMOUNT OF $2,600, REPRESENTING THE TRADE-IN VALUE OF THE OLD CONDENSER TUBES, WAS PROPERLY CREDITED TO MISCELLANEOUS RECEIPTS. 26 COMP. DEC. 534; 3 COMP. GEN. 304; 5 ID. 798; 7 ID. 230; 17 ID. 569.