B-5968, MAY 9, 1940, 19 COMP. GEN. 912

B-5968: May 9, 1940

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1940: REFERENCE IS MADE TO YOUR LETTER OF MARCH 4. AS FOLLOWS: THIS LETTER IS IN RESPONSE TO YOURS OF OCTOBER 17. BEFORE REPLYING TO YOUR LETTER IT WAS NECESSARY TO EXAMINE THE VOUCHERS AND OTHER RECORDS FOR THE PAST NINE YEARS. THE PRINTING PLANTS AT THE ATLANTA AND LEAVENWORTH PENITENTIARIES WERE OPERATED AS FIELD PLANTS AUTHORIZED BY THE REGULATIONS OF THE JOINT COMMITTEE ON PRINTING. IMPOSED THE DUTY UPON THE ATTORNEY GENERAL TO "PROVIDE EMPLOYMENT FOR ALL PHYSICALLY FIT INMATES IN THE UNITED STATES PENAL AND CORRECTIONAL INSTITUTIONS IN SUCH DIVERSIFIED FORMS AS WILL REDUCE TO A MINIMUM COMPETITION WITH PRIVATE INDUSTRY OR FREE LABOR.'. SECTION 3 OF THAT ACT REQUIRED THE ATTORNEY GENERAL IN ESTABLISHING SAID INDUSTRIES TO "PROVIDE SUCH FORMS OF EMPLOYMENT IN THE FEDERAL PENAL AND CORRECTIONAL INSTITUTIONS AS WILL GIVE THE INMATES A MAXIMUM OPPORTUNITY TO ACQUIRE A KNOWLEDGE AND SKILL IN TRADES AND OCCUPATIONS WHICH WILL PROVIDE THEM WITH A MEANS OF EARNING A LIVELIHOOD UPON RELEASE.'.

B-5968, MAY 9, 1940, 19 COMP. GEN. 912

PRINTING PLANTS OF FEDERAL PRISON INDUSTRIES - JURISDICTION OF JOINT COMMITTEE ON PRINTING PURCHASES OF PRINTING MACHINERY, SUPPLIES, OR EQUIPMENT FOR USE IN PRINTING PLANTS OF THE FEDERAL PRISON INDUSTRIES MUST BE APPROVED BY THE JOINT COMMITTEE ON PRINTING.

ACTING COMPTROLLER GENERAL ELLIOTT TO THE ATTORNEY GENERAL, MAY 9, 1940:

REFERENCE IS MADE TO YOUR LETTER OF MARCH 4, 1940, AS FOLLOWS:

THIS LETTER IS IN RESPONSE TO YOURS OF OCTOBER 17, 1939, ADDRESSED TO THE ATTORNEY GENERAL, ASKING FOR CERTAIN INFORMATION WITH RESPECT TO THE PRINTING AND BINDING PLANT OPERATED AT THE UNITED STATES PENITENTIARY, LEAVENWORTH, KANSAS, BY FEDERAL PRISON INDUSTRIES, INC. BEFORE REPLYING TO YOUR LETTER IT WAS NECESSARY TO EXAMINE THE VOUCHERS AND OTHER RECORDS FOR THE PAST NINE YEARS, NOT ONLY OF THE PRINTING INDUSTRY OPERATED AT THE PENITENTIARY AT LEAVENWORTH, BUT OF THE PRINTING INDUSTRY SIMILARLY OPERATED BY FEDERAL PRISON INDUSTRIES, INC., AT THE PENITENTIARY AT ATLANTA, GA.

PRIOR TO THE PASSAGE OF THE ACT OF MAY 27, 1930 ( TITLE 18, U.S.C. 744 A- H), THE PRINTING PLANTS AT THE ATLANTA AND LEAVENWORTH PENITENTIARIES WERE OPERATED AS FIELD PLANTS AUTHORIZED BY THE REGULATIONS OF THE JOINT COMMITTEE ON PRINTING. SECTION 1 OF THE ACT OF MAY 27, 1930, IMPOSED THE DUTY UPON THE ATTORNEY GENERAL TO "PROVIDE EMPLOYMENT FOR ALL PHYSICALLY FIT INMATES IN THE UNITED STATES PENAL AND CORRECTIONAL INSTITUTIONS IN SUCH DIVERSIFIED FORMS AS WILL REDUCE TO A MINIMUM COMPETITION WITH PRIVATE INDUSTRY OR FREE LABOR.' SECTION 3 OF THAT ACT REQUIRED THE ATTORNEY GENERAL IN ESTABLISHING SAID INDUSTRIES TO "PROVIDE SUCH FORMS OF EMPLOYMENT IN THE FEDERAL PENAL AND CORRECTIONAL INSTITUTIONS AS WILL GIVE THE INMATES A MAXIMUM OPPORTUNITY TO ACQUIRE A KNOWLEDGE AND SKILL IN TRADES AND OCCUPATIONS WHICH WILL PROVIDE THEM WITH A MEANS OF EARNING A LIVELIHOOD UPON RELEASE.' THE ONLY LIMITATION EXPRESSED IN THE STATUTE IS THE REQUIREMENT THAT SUCH INDUSTRIES SHALL "BE SO OPERATED AS NOT TO CURTAIL THE PRODUCTION WITHIN ITS PRESENT LIMITS, OF ANY EXISTING ARSENAL, NAVY YARD, OR OTHER GOVERNMENT WORKSHOP.' THE ONLY GOVERNMENT WORKSHOP WHICH COULD BE AFFECTED BY THE OPERATION OF THE PRINTING PLANTS AT LEAVENWORTH AND ATLANTA IS THE GOVERNMENT PRINTING OFFICE. ITS PRODUCTION FOR THE FISCAL YEAR 1930 AS REPRESENTED BY CHARGES FOR WORK DELIVERED WAS $10,879,408.67. THE PRODUCTION FOR THE FISCAL YEAR 1939 WAS $12,773,810.78 (P. 3, ANNUAL REPORT OF PUBLIC PRINTER, 1939). AS THE PRODUCTION HAS NOT BEEN CURTAILED, THE LIMITATION ABOVE QUOTED IS NOT APPLICABLE.

PURSUANT TO THE ACT OF JUNE 23, 1934 ( TITLE 18, U.S.C. 744 I-N), AND EXECUTIVE ORDER NO. 6917 DATED DECEMBER 11, 1934, THE DUTIES IMPOSED UPON THE ATTORNEY GENERAL WITH RESPECT TO PROVIDING EMPLOYMENT FOR PRISONERS WERE TRANSFERRED TO THE CORPORATION KNOWN AS FEDERAL PRISONS INDUSTRIES, INC., TOGETHER WITH ALL THE PROPERTY, ASSETS, ACCOUNTS RECEIVABLE, AND EQUIPMENT OF ALL THE INDUSTRIES IN THE FEDERAL PENAL AND CORRECTIONAL INSTITUTIONS, INCLUDING THE PRINTING PLANTS AT LEAVENWORTH AND ATLANTA.

SINCE THE PASSAGE OF THE ACT OF MAY 27, 1930, THE ATTORNEY GENERAL, AND LATER THE BOARD OF DIRECTORS OF THE CORPORATION, ASSUMED THAT THE JOINT COMMITTEE ON PRINTING HAD NO FURTHER JURISDICTION OVER THE PRINTING PLANTS IN QUESTION. HOWEVER, THE ATTORNEY GENERAL AND THE BOARD OF DIRECTORS OF THE CORPORATION HAVE VOLUNTARILY COOPERATED WITH THE JOINT COMMITTEE ON PRINTING, HAVE BENEFITED FROM THE ADVICE OF THE COMMITTEE AND ITS STAFF, AND HAVE CONFORMED IN ALL RESPECTS TO THE REGULATIONS OF THE COMMITTEE EXCEPT THAT THE APPROVAL OF THE COMMITTEE HAS NOT BEEN SOUGHT FOR THE PURCHASE OR DISPOSITION OF PRINTING EQUIPMENT.

AFTER THE PASSAGE OF THE ACT OF MAY 27, 1930, THE PRINTING PLANTS AT THE PENITENTIARIES AT LEAVENWORTH AND ATLANTA WERE TAKEN OVER AS INDUSTRIES PURSUANT TO THE AUTHORITY OF THAT ACT, AND THE JOINT COMMITTEE ON PRINTING WAS ASKED TO ASSIST IN SELECTION OF EQUIPMENT NECESSARY TO MODERNIZE THESE PLANTS SO THAT THE VOCATIONAL AND JOB TRAINING PROGRAM CARRIED ON IN CONNECTION THEREWITH WOULD BE OF MAXIMUM VALUE TO INMATE TRAINEES UPON THEIR DISCHARGE.

THE FIRST TIME THE QUESTION OF THE JURISDICTION OF THE JOINT COMMITTEE CAME TO A DIRECT ISSUE WAS IN SEPTEMBER 1931, IN CONNECTION WITH THE PURCHASE OF A JOB PRESS FOR THE PRINTING PLANT AT ATLANTA. THE DIRECTOR OF THE BUREAU OF PRISONS AND THE JOINT COMMITTEE, HAVING BEEN UNABLE TO REACH ANY AGREEMENT UPON THE QUESTION OF JURISDICTION, THE VOUCHER FOR THIS JOB PRESS WAS SUBMITTED TO THE GENERAL ACCOUNTING OFFICE FOR PREAUDIT ON SEPTEMBER 23, 1931. NO APPROVAL OF THE JOINT COMMITTEE ON PRINTING WAS SUBMITTED WITH THIS VOUCHER, WHICH WAS NEVERTHELESS APPROVED FOR PAYMENT AND WAS PAID ON OCTOBER 31, 1931, D.O. VOUCHER NO. 1210. THROUGH A MISUNDERSTANDING OF THE OFFICERS IN IMMEDIATE CHARGE OF THE PLANT AT ATLANTA, NO ANNUAL INVENTORY REPORT WAS MADE TO THE JOINT COMMITTEE FOR THE FISCAL YEAR 1932, BUT WHEN THEIR ATTENTION WAS CALLED TO THE OVERSIGHT, THE PURCHASE OF THIS PRESS WITH OTHER EQUIPMENT WAS INCLUDED IN THE REPORT TO THE COMMITTEE FOR THE FISCAL YEAR 1933 ( JCP FORM NO. 5).

SUBSEQUENT TO THE ACQUISITION OF THE ABOVE JOB PRESS VARIOUS OTHER TYPES OF EQUIPMENT AND MACHINERY WERE PURCHASED FOR THE ATLANTA PLANT WITHOUT REQUESTING OR SECURING THE APPROVAL OF THE JOINT COMMITTEE ON PRINTING. AMONG THESE ITEMS WERE A PAPER CUTTER, JOB PRESS PULLEYS, MOTORS FOR PRINTING PRESS, PUNCH, AND TYPE RACKS. THESE ITEMS WERE PURCHASED AT VARIOUS TIMES FROM JANUARY 1932, TO APRIL 1936. THEY WERE SEVERALLY REPORTED TO THE JOINT COMMITTEE UPON SUCCEEDING ANNUAL INVENTORY REPORTS, AND THE VOUCHERS THEREFOR WERE PASSED BY THE GENERAL ACCOUNTING OFFICE WITHOUT EXCEPTION BEING TAKEN TO THE ABSENCE OF APPROVAL OF THE JOINT COMMITTEE ON PRINTING.

AT THE LEAVENWORTH PLANT THE QUESTION OF JURISDICTION AROSE IN DECEMBER 1930. ON DECEMBER 13 OF THAT YEAR THE THEN ATTORNEY GENERAL REQUESTED THE CHAIRMAN OF THE JOINT COMMITTEE ON PRINTING TO AUTHORIZE THE TRANSFER TO THE LEAVENWORTH PLANT FROM THE WAR DEPARTMENT AND THE PROHIBITION BUREAU OF THE DEPARTMENT OF JUSTICE OF THREE PRINTING PRESSES AND ONE PAPER CUTTER. IN THE SAME LETTER THE AUTHORITY OF THE JOINT COMMITTEE ON PRINTING WAS REQUESTED TO PURCHASE A TYPE-SETTING MACHINE, A SAW TRIMMER, A RULING MACHINE, AND A ROTARY PERFORATOR. THE JOINT COMMITTEE ON PRINTING REPLIED TO THIS LETTER UNDER DATE OF MARCH 16, 1931, AUTHORIZING THE TRANSFER OF A PART OF THE EQUIPMENT ABOVE REFERRED TO, BUT WITHHOLDING AUTHORITY FOR THE PURCHASE OF THE TYPE-SETTING MACHINE AND THE OTHER EQUIPMENT. AFTER THE PREAUDIT APPROVAL BY THE GENERAL ACCOUNTING OFFICE OF THE VOUCHER FOR THE JOB PRESS PURCHASED FOR ATLANTA IN OCTOBER 1931, HOWEVER, IT WAS ASSUMED THAT THE AUTHORITY OF THE JOINT COMMITTEE WAS NO LONGER NECESSARY IN CONNECTION WITH THE PURCHASE OF PRINTING EQUIPMENT FOR EITHER THE PLANT AT LEAVENWORTH OR ATLANTA. THE BUREAU OF PRISONS THEREUPON PROCEEDED TO PURCHASE VARIOUS TYPES OF EQUIPMENT WITHOUT REQUESTING THE AUTHORITY OF THE JOINT COMMITTEE. SO FAR AS OUR FILES DISCLOSE, THE ONLY EXCEPTION MADE BY THE COMMITTEE TO SUCH PURCHASES WAS BY LETTER DATED JULY 13, 1932, TO THE CHIEF CLERK OF THE DEPARTMENT CALLING ATTENTION TO ITS LETTER OF MARCH 16, 1931, ABOVE REFERRED TO, IN WHICH APPROVAL OF THE PURCHASE OF THE TYPE-SETTING MACHINE AND SOME OTHER EQUIPMENT WAS WITHHELD. THE CHIEF CLERK OF THE DEPARTMENT REPLIED TO THIS LETTER ON JULY 22, 1932, ADVISING THAT WHILE "THIS OFFICE HAD NOTHING TO DO WITH THE PURCHASE OF THE MACHINERY WHICH WAS PAID FOR FROM THE WORKING CAPITAL FUNDS, IT WAS UNDOUBTEDLY ASSUMED THAT THE PURCHASE WAS WITHIN THE SCOPE OF THE PRISON INDUSTRIES LAW.' TO THIS THE COMMITTEE MADE NO REPLY.

FROM THAT TIME UNTIL THE FALL OF 1938, WHEN THE FIRST OF THE PURCHASES NOW IN QUESTION WAS MADE, VARIOUS ITEMS OF MACHINERY AND EQUIPMENT WERE PURCHASED IN THE REGULAR WAY WITHOUT FIRST SECURING AUTHORITY OF THE JOINT COMMITTEE ON PRINTING. VOUCHERS COVERING ALL THESE PURCHASES WERE PASSED BY THE COMPTROLLER GENERAL WITHOUT EXCEPTION BEING TAKEN TO THE ABSENCE OF SUCH APPROVAL. ALL OF THESE ITEMS OF EQUIPMENT WERE REPORTED TO THE JOINT COMMITTEE EACH QUARTER ON JCP FORM NO. 4. THROUGH THESE QUARTERLY REPORTS THE JOINT COMMITTEE WAS CURRENTLY ADVISED OF THESE PURCHASES, THE FIRST OF WHICH WAS MADE IN DECEMBER 1931. SOME OF THE MORE IMPORTANT ITEMS OF EQUIPMENT SO PURCHASED WERE A PERFORATOR, AN AUTOMATIC FEEDER, A BOOK- SEWING MACHINE, PAGING AND NUMBERING MACHINE, PUNCHES, A CYLINDER PRESS, BACK FORMING MACHINE, RULING MACHINE, TAG-PATCHING MACHINE, LEVER STAMPER, COMPOSING TABLES, FOLDING MACHINE, AND ROTARY PRESS.

IN ADDITION TO THE FOREGOING, A MONOTYPE MACHINE WAS LEASED IN JULY 1933, UPON A CONTRACT WHICH INCLUDED AN OPTION TO PURCHASE, THE RENTAL BEING APPLIED UPON THE PURCHASE PRICE. THE LAST VOUCHER UPON THIS CONTRACT WAS PAID ON JUNE 10, 1937, D.O. VOUCHER NO. 10-95512, AND TITLE TO THE MACHINE WAS THEN ACQUIRED. THESE RENTAL VOUCHERS WERE LIKEWISE PASSED BY THE GENERAL ACCOUNTING OFFICE WITHOUT EXCEPTION BEING TAKEN TO THE ABSENCE OF APPROVAL OF THE JOINT COMMITTEE, ALTHOUGH THE GENERAL ACCOUNTING OFFICE HAD PREVIOUSLY RAISED THE QUESTION IN CONNECTION WITH A PROPOSAL TO MAKE AN OUTRIGHT PURCHASE OF THE MACHINE. THIS MONOTYPE WAS NOT INCLUDED IN THE QUARTERLY REPORTS ON THE ASSUMPTION THAT THE REGULATIONS OF THE COMMITTEE DID NOT REQUIRE THE REPORTING OF LEASED EQUIPMENT. THE PURCHASE OF ACCESSORIES AND EQUIPMENT FOR THE MACHINE, HOWEVER, WERE INCLUDED IN THE REPORTS TO THE COMMITTEE, AND UPON INQUIRY BY THE COMMITTEE RELATIVE TO THE MATTER, THEY WERE ADVISED ON JANUARY 29, 1937, OF THE RENTAL CONTRACT. ON AUGUST 18, 1937, THE COMMITTEE ADVISED THE COMMISSIONER OF INDUSTRIES THAT IN THEIR OPINION THEIR REGULATIONS INCLUDED LEASED EQUIPMENT, WHEREUPON UNDER DATE OF SEPTEMBER 10, 1937, THE DIRECTOR OF THE BUREAU OF PRISONS, WHO WAS ALSO COMMISSIONER OF INDUSTRIES, ADVISED THE COMMITTEE FULLY OF THE REASON FOR LEASING AND THE SUBSEQUENT PURCHASE OF THAT MACHINE. NO FURTHER EXCEPTION TO SUCH PURCHASE WAS TAKEN BY THE JOINT COMMITTEE, AND AS STATED ABOVE, THE VOUCHERS FOR THE RENTAL AND PURCHASE THEREOF WERE PASSED BY THE GENERAL ACCOUNTING OFFICE.

PRIOR TO THE LETTER OF THE JOINT COMMITTEE ON AUGUST 18, 1937, THAT THE COMMITTEE WAS OF THE OPINION THAT LEASED EQUIPMENT CAME WITHIN THEIR REGULATIONS. FEDERAL PRISON INDUSTRIES, INC., IN MARCH 1937, HAD ENTERED INTO A RENTAL AGREEMENT COVERING A LINOTYPE MACHINE, THE FIRST RENTAL VOUCHER BEING PAID ON MAY 6, 1937, D.O. VOUCHER NO. 10 82484. RENTAL VOUCHERS HAVE BEEN PAID EACH MONTH SINCE THAT TIME AND NO EXCEPTION HAS BEEN TAKEN BY THE GENERAL ACCOUNTING OFFICE TO THE ABSENCE OF APPROVAL BY THE JOINT COMMITTEE ON PRINTING.

FROM THE FOREGOING IT APPEARS THAT SINCE THE PASSAGE OF THE ACT OF MAY 27, 1930, THE ATTORNEY GENERAL AND HIS SUCCESSOR, THE BOARD OF DIRECTORS OF FEDERAL PRISON INDUSTRIES, INC., HAVE CONSTRUED THAT STATUTE AS CONFERRING UPON THEM THE SOLE RESPONSIBILITY WITH RESPECT TO THE PRINTING PLANTS AT THE LEAVENWORTH AND ATLANTA PENITENTIARIES. THE CONCURRENCE OF THE JOINT COMMITTEE ON PRINTING IN THIS INTERPRETATION IS EVIDENCED BY ITS FAILURE TO ASSERT JURISDICTION OVER THE PURCHASE OF EQUIPMENT FOR SUCH PLANTS, ALTHOUGH IT WAS PERIODICALLY INFORMED THAT SUCH PURCHASES WERE BEING MADE. THE GENERAL ACCOUNTING OFFICE ALSO APPARENTLY ACQUIESCED IN THIS ADMINISTRATIVE INTERPRETATION OF THE STATUTE OVER A PERIOD OF SOME NINE YEARS BY TAKING NO EXCEPTION TO VOUCHERS NOT ACCOMPANIED BY THE APPROVAL OF THE JOINT COMMITTEE.

I BEG TO REPLY TO YOUR SPECIFIC QUESTION AS FOLLOWS:

(1) THE CORPORATE STATUS OF FEDERAL PRISON INDUSTRIES, INC., IS NOT REGARDED AS THE BASIS OF EXEMPTION FROM THE STATUTES CONFERRING AUTHORITY UPON THE JOINT COMMITTEE ON PRINTING. AS STATED ABOVE, SUCH EXEMPTION, IF IT MAY BE SO CALLED, IS BASED UPON THE ACTS OF MAY 27, 1930, AND JUNE 23, 1934, RELATING TO THE OPERATION OF PRISON INDUSTRIES.

(2) THERE WAS SOME PRINTING AND BINDING MACHINERY AND EQUIPMENT IN OPERATION AT THE LEAVENWORTH PENITENTIARY PRIOR TO MAY 27, 1930. UP UNTIL THE PASSAGE OF THAT ACT, THE PLANT HAD BEEN OPERATED AS A FIELD PLANT UNDER THE REGULATIONS OF THE JOINT COMMITTEE.

(3) A CONSIDERABLE QUANTITY OF PRINTING AND BINDING MACHINERY AND EQUIPMENT HAS BEEN ACQUIRED SINCE MAY 27, 1930. EXCEPT FOR THE PARTICULAR VOUCHERS NOW IN QUESTION IN NO CASE HAS THE APPROVAL OF THE JOINT COMMITTEE ON PRINTING BEEN GIVEN NOR REQUIRED BY THE GENERAL ACCOUNTING OFFICE.

(4) ALL OF THE PRODUCTS OF THE PRINTING PLANTS AT THE LEAVENWORTH AND ATLANTA PENITENTIARIES ARE EITHER USED BY THE INDUSTRIES OPERATED BY FEDERAL PRISON INDUSTRIES, INC., OR ARE DISPOSED OF TO THE DEPARTMENT OF JUSTICE. NO PRODUCTS OF THESE PLANTS ARE DISPOSED OF TO OTHER GOVERNMENT DEPARTMENTS OR AGENCIES, OR UPON THE OPEN MARKET. DURING THE FISCAL YEAR 1939, THE TWO PLANTS PRODUCED BUT 15 PERCENT OF THE TOTAL PRINTING FOR THE DEPARTMENT, MOST OF WHICH WAS FOR THE USE OF THE PENAL AND CORRECTIONAL INSTITUTIONS UNDER THE JURISDICTION OF THE BUREAU OF PRISONS. (5) THE PRINTING AND BINDING WORK OF THE TWO PLANTS IN QUESTION HAS ALWAYS BEEN ADMINISTRATIVELY REGARDED AS THE PRODUCTION OF "ARTICLES AND COMMODITIES FOR CONSUMPTION IN THE UNITED STATES PENAL AND CORRECTIONAL INSTITUTIONS OR FOR SALE TO THE DEPARTMENTS AND INDEPENDENT ESTABLISHMENTS OF THE FEDERAL GOVERNMENT" WITHIN THE PURVIEW OF SECTION 3 OF THE ACT OF MAY 27, 1930. IT HAS ALWAYS BEEN ASSUMED THAT THE PRODUCTS OF THE PLANTS CAME WITHIN THE GENERALLY ACCEPTED MEANING OF THE WORDS "ARTICLES" OR "COMMODITIES" AS USED IN THE ACT IN QUESTION.

SECTION 11 OF THE ACT OF MARCH 1, 1919, 40 STAT. 1270, PROVIDES:

THAT THE JOINT COMMITTEE ON PRINTING SHALL HAVE POWER TO ADOPT AND EMPLOY SUCH MEASURES AS, IN ITS DISCRETION, MAY BE DEEMED NECESSARY TO REMEDY ANY NEGLECT, DELAY, DUPLICATION, OR WASTE IN THE PUBLIC PRINTING AND BINDING AND THE DISTRIBUTION OF GOVERNMENT PUBLICATIONS: PROVIDED, THAT HEREAFTER NO JOURNAL, MAGAZINE, PERIODICAL, OR OTHER SIMILAR PUBLICATION, SHALL BE PRINTED AND ISSUED BY ANY BRANCH OR OFFICER OF THE GOVERNMENT SERVICE UNLESS THE SAME SHALL HAVE BEEN SPECIFICALLY AUTHORIZED BY CONGRESS, BUT SUCH PUBLICATIONS AS ARE NOW BEING PRINTED WITHOUT SPECIFIC AUTHORITY FROM CONGRESS MAY, IN THE DISCRETION OF THE JOINT COMMITTEE ON PRINTING, BE CONTINUED UNTIL THE CLOSE OF THE NEXT REGULAR SESSION OF CONGRESS, WHEN, IF AUTHORITY FOR THEIR CONTINUANCE IS NOT THEN GRANTED BY CONGRESS, THEY SHALL NOT THEREAFTER BE PRINTED: PROVIDED FURTHER, THAT ON AND AFTER JULY 1, 1919, ALL PRINTING, BINDING, AND BLANK-BOOK WORK FOR CONGRESS, THE EXECUTIVE OFFICE, THE JUDICIARY AND EVERY EXECUTIVE DEPARTMENT, INDEPENDENT OFFICE, AND ESTABLISHMENT OF THE GOVERNMENT, SHALL BE DONE AT THE GOVERNMENT PRINTING OFFICE, EXCEPT SUCH CLASSES OF WORK AS SHALL BE DEEMED BY THE JOINT COMMITTEE ON PRINTING TO BE URGENT OR NECESSARY TO HAVE DONE ELSEWHERE THAN IN THE DISTRICT OF COLUMBIA FOR THE EXCLUSIVE USE OF ANY FIELD SERVICE OUTSIDE OF SAID DISTRICT.

PARAGRAPH 50 OF THE REGULATIONS OF THE JOINT COMMITTEE ON PRINTING, EDITION OF JULY 1, 1939, PROVIDES:

PURCHASE, EXCHANGE, OR TRANSFER.--- NO FIELD PRINTING, EVEN THOUGH AUTHORIZED BY THE COMMITTEE, SHALL BE DONE AT ANY FIELD PLANT, AS DEFINED BY PARAGRAPH 7 OF THESE REGULATIONS, HAVING MACHINERY OR EQUIPMENT(INCLUDING MOTORS) WHICH HAS BEEN OR MAY BE PURCHASED, EXCHANGED, OR TRANSFERRED SINCE MAY 1, 1920, WITHOUT SPECIFIC APPROVAL BY THE JOINT COMMITTEE ON PRINTING OF SUCH PURCHASE, EXCHANGE, OR TRANSFER: PROVIDED, THAT THIS REGULATION SHALL NOT BE CONSTRUED AS APPLYING TO MINOR REPLACEMENTS OF TYPE OR MATERIAL OR PARTS NECESSARY IN MAKING REPAIRS TO MACHINERY AND EQUIPMENT.

BY LETTER OF SEPTEMBER 27, 1939, THE JOINT COMMITTEE ON PRINTING INFORMED THIS OFFICE AS OLLOWS:

THE JOINT COMMITTEE ON PRINTING IS IN RECEIPT OF THE LETTER OF THE ACTING COMPTROLLER GENERAL DATED SEPTEMBER 21, 1939, WITH REFERENCE TO ITS LETTER OF MAY 1, 1939, WHEREIN THERE WAS SUBMITTED A COMMUNICATION OF EVEN DATE ADDRESSED TO THE DIRECTOR OF PRISON INDUSTRIES, INC., RELATIVE TO THE PURCHASE AND RENTAL OF PRINTING EQUIPMENT FOR USE IN THE FIELD PRINTING PLANT AT THE UNITED STATES PENITENTIARY, FORT LEAVENWORTH, KANS., WHICH HAD BEEN CONSUMMATED WITHOUT APPROVAL OF THIS COMMITTEE.

UNDER DATE OF AUGUST 1, 1939, THE COMMISSIONER OF PRISON INDUSTRIES REPLIED TO THE LETTER OF THE JOINT COMMITTEE ON PRINTING (A COPY OF WHICH IS HEREWITH ENCLOSED) STATING THAT THE BOARD OF DIRECTORS WAS OF THE OPINION THAT THE REGULATIONS OF THIS COMMITTEE ARE NOT APPLICABLE TO THE CORPORATION, ALTHOUGH THE BOARD WAS DISPOSED TO COOPERATE WITH THE COMMITTEE WITHIN CERTAIN LIMITATIONS. THE COMMITTEE DOES NOT CONCUR IN THIS VIEW.

REFERRING TO THE LAST PARAGRAPH OF YOUR LETTER, YOU ARE ADVISED THAT THE PURCHASE OF THE MACHINERY IN QUESTION HAS NOT BEEN APPROVED, AND THAT, IN VIEW OF THE DIFFERENCE OF OPINION WITH REFERENCE TO AUTHORITY, NO FURTHER ACTION WILL BE TAKEN BY THIS COMMITTEE PENDING A DECISION OF THE COMPTROLLER GENERAL.

SECTIONS 3 AND 7 OF THE ACT OF MAY 27, 1930, 46 STAT. 391, 392, PROVIDE:

SEC. 3. THE ATTORNEY GENERAL SHALL ESTABLISH SUCH INDUSTRIES AS WILL PRODUCE ARTICLES AND COMMODITIES FOR CONSUMPTION IN UNITED STATES PENAL AND CORRECTIONAL INSTITUTIONS OR FOR SALE TO THE DEPARTMENTS AND INDEPENDENT ESTABLISHMENTS OF THE FEDERAL GOVERNMENT AND NOT FOR THE SALE TO THE PUBLIC IN COMPETITION WITH PRIVATE ENTERPRISE: PROVIDED, THAT ANY INDUSTRY ESTABLISHED UNDER AUTHORITY OF THIS ACT BE SO OPERATED AS NOT TO CURTAIL THE PRODUCTION WITHIN ITS PRESENT LIMITS, OF ANY EXISTING ARSENAL, NAVY YARD, OR OTHER GOVERNMENT WORKSHOP. IN ESTABLISHING SAID INDUSTRIES THE ATTORNEY GENERAL SHALL PROVIDE SUCH FORMS OF EMPLOYMENT IN THE FEDERAL PENAL AND CORRECTIONAL INSTITUTIONS AS WILL GIVE THE INMATES A MAXIMUM OPPORTUNITY TO ACQUIRE A KNOWLEDGE AND SKILL IN TRADES AND OCCUPATIONS WHICH WILL PROVIDE THEM WITH A MEANS OF EARNING A LIVELIHOOD UPON RELEASE. THE INDUSTRIES TO BE ESTABLISHED BY THE ATTORNEY GENERAL UNDER AUTHORITY OF THIS SECTION MAY BE EITHER WITHIN THE PRECINCTS OF ANY PENAL OR CORRECTIONAL INSTITUTION OR IN ANY CONVENIENT LOCALITY WHERE AN EXISTING PROPERTY MAY BE OBTAINED BY LEASE, PURCHASE, OR OTHERWISE.

SEC. 7. THE SEVERAL FEDERAL DEPARTMENTS AND INDEPENDENT ESTABLISHMENTS AND ALL OTHER GOVERNMENT INSTITUTIONS OF THE UNITED STATES SHALL PURCHASE AT NOT TO EXCEED CURRENT MARKET PRICES, SUCH PRODUCTS OF THE INDUSTRIES HEREIN AUTHORIZED TO BE CARRIED ON AS MEET THEIR REQUIREMENTS AND AS MAY BE AVAILABLE AND ARE AUTHORIZED BY THE APPROPRIATIONS FROM WHICH SUCH PURCHASES ARE MADE. ANY DISPUTES AS TO THE PRICE, QUALITY, SUITABILITY, OR CHARACTER OF THE PRODUCTS MANUFACTURED IN ANY PRISON INDUSTRY AND OFFERED TO ANY GOVERNMENT DEPARTMENT SHALL BE ARBITRATED BY A BOARD CONSISTING OF THE COMPTROLLER GENERAL OF THE UNITED STATES, THE SUPERINTENDENT OF SUPPLIES OF THE GENERAL SUPPLY COMMITTEE, AND THE CHIEF OF THE UNITED STATES BUREAU OF EFFICIENCY OR THEIR REPRESENTATIVES. THE DECISION OF SAID BOARD SHALL BE FINAL AND BINDING UPON ALL PARTIES.

IT WILL BE NOTED THAT THE ACT OF MAY 27, 1930, SUPRA, AUTHORIZES ONLY SUCH INDUSTRIES AS WILL ,PRODUCE ARTICLES AND COMMODITIES FOR CONSUMPTION * * * OR FOR SALE.' THE PERFORMANCE OF PRINTING SERVICE ON ORDER DOES NOT CONSTITUTE THE PRODUCTION OF ARTICLES AND COMMODITIES CAPABLE OF CONSUMPTION OR SALE BUT IS RATHER THE RENDITION OF SERVICES, THAT IS TO SAY, IRRESPECTIVE OF ITS VALUE AS VOCATIONAL TRAINING, PRINTING IS NOT ONE OF THE INDUSTRIES AUTHORIZED BY THE ACT. THAT THE CONGRESS DID NOT INTEND THAT THIS STATUTE SHOULD EXTEND TO PRINTING IS FURTHER EVIDENCED BY THE PROVISIONS OF SECTION 7 OF THE ABOVE ACT REQUIRING GOVERNMENT DEPARTMENTS AND ESTABLISHMENTS TO PURCHASE THE PRODUCTS OF SUCH INDUSTRIES, WHICH IS INCONSISTENT WITH THE REQUIREMENT OF THE ACT OF 1919, SUPRA, THAT ALL PRINTING BE PROCURED FROM THE GOVERNMENT PRINTING OFFICE. ACCORDINGLY, THE ESTABLISHMENT AND MAINTENANCE OF PRINTING PLANTS BY THE FEDERAL PRISON INDUSTRIES MUST REST, NOT ON THE AUTHORITY OF THE ABOVE ACT OF MAY 27, 1930, BUT UPON THE AUTHORITY FROM THE JOINT COMMITTEE ON PRINTING.

IN VIEW OF THE DOUBT WHICH HAS HERETOFORE EXISTED AS TO THE JURISDICTION OF THE JOINT COMMITTEE ON PRINTING OVER THE PURCHASE OF PRINTING MACHINERY FOR THE FEDERAL PRISON INDUSTRIES, THIS DECISION WILL BE EFFECTIVE AS OF JUNE 1, 1940, AND PURCHASES OF MACHINERY PRIOR TO THAT DATE WILL NOT BE OBJECTED TO BY THIS OFFICE SOLELY FOR FAILURE TO OBTAIN THE APPROVAL OF THE JOINT COMMITTEE ON PRINTING BUT CREDIT WILL NOT BE ALLOWED FOR PAYMENTS MADE FOR PURCHASES AFTER THAT DATE OF PRINTING MACHINERY, SUPPLIES, OR EQUIPMENT UNLESS ACCOMPANIED BY EVIDENCE OF THE APPROVAL OF THE JOINT COMMITTEE ON PRINTING.

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