B-89446, MARCH 3, 1955, 34 COMP. GEN. 412

B-89446: Mar 3, 1955

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WHICH PROVIDE THAT THE ISLAND TRADING COMPANY OF MICRONESIA SHALL NOT HAVE SUCCESSION AFTER DECEMBER 31. THEIR RETENTION AND USE BY THE OFFICE OF THE TERRITORIES IS IN ACCORDANCE WITH SECTION 202 (C) OF THE FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT OF 1949. 1955: REFERENCE IS MADE TO LETTERS DATED DECEMBER 14. REPLYING TO A REQUEST BY THIS OFFICE FOR AN EXPRESSION OF VIEWS RELATIVE TO SEVERAL QUESTIONS WHICH HAVE ARISEN IN CONNECTION WITH THE TERMINATION OF THE ISLAND TRADING COMPANY OF MICRONESIA ON DECEMBER 31. IT IS STATED TO BE THE VIEW OF YOUR DEPARTMENT THAT BUILDINGS AND OTHER PHYSICAL PROPERTY OF THE COMPANY PROPERLY MAY BE RETAINED BY. THE FURTHER VIEW IS STATED THAT. ITS FUNDS MAY BE WITHHELD FROM DEPOSIT INTO THE TREASURY AS MISCELLANEOUS RECEIPTS UNTIL SUCH TIME AS THE CONGRESS WILL HAVE HAD AN OPPORTUNITY TO CONSIDER LEGISLATION WHICH WOULD AUTHORIZE THE USE OF A PORTION OR ALL OF THE FUNDS TO MAKE LOANS TO PRIVATE ENTERPRISES IN ORDER THAT THEY MAY ENGAGE IN ACTIVITIES SIMILAR TO THOSE HERETOFORE ENGAGED IN BY THE ISLAND TRADING COMPANY.

B-89446, MARCH 3, 1955, 34 COMP. GEN. 412

ISLAND TRADING COMPANY OF MICRONESIA - LIQUIDATION THE PROVISIONS IN THE INTERIOR DEPARTMENT APPROPRIATION ACTS, 1953 AND 1954, WHICH PROVIDE THAT THE ISLAND TRADING COMPANY OF MICRONESIA SHALL NOT HAVE SUCCESSION AFTER DECEMBER 31, 1954, REQUIRE THAT THE UNOBLIGATED FUNDS AVAILABLE TO THE COMPANY ON THAT DATE AS WELL AS ANY RECOVERIES OF ACCOUNTS RECEIVABLE SHOULD BE DEPOSITED IN THE TREASURY AS MISCELLANEOUS RECEIPTS AS SOON AS POSSIBLE; HOWEVER, IN THE ABSENCE OF ANY PROVISIONS OF LAW REQUIRING DISPOSITION OF THE BUILDINGS AND EQUIPMENT, THEIR RETENTION AND USE BY THE OFFICE OF THE TERRITORIES IS IN ACCORDANCE WITH SECTION 202 (C) OF THE FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT OF 1949.

COMPTROLLER GENERAL CAMPBELL TO THE SECRETARY OF THE INTERIOR, MARCH 3, 1955:

REFERENCE IS MADE TO LETTERS DATED DECEMBER 14, 1954, AND JANUARY 12, 1955, FROM THE ADMINISTRATIVE ASSISTANT SECRETARY, REPLYING TO A REQUEST BY THIS OFFICE FOR AN EXPRESSION OF VIEWS RELATIVE TO SEVERAL QUESTIONS WHICH HAVE ARISEN IN CONNECTION WITH THE TERMINATION OF THE ISLAND TRADING COMPANY OF MICRONESIA ON DECEMBER 31, 1954.

IT IS STATED TO BE THE VIEW OF YOUR DEPARTMENT THAT BUILDINGS AND OTHER PHYSICAL PROPERTY OF THE COMPANY PROPERLY MAY BE RETAINED BY, OR TRANSFERRED WITHOUT EXCHANGE OF FUNDS TO, THE OFFICE OF THE TERRITORIES. ALSO, THE FURTHER VIEW IS STATED THAT, UPON TERMINATION OF THE COMPANY, ITS FUNDS MAY BE WITHHELD FROM DEPOSIT INTO THE TREASURY AS MISCELLANEOUS RECEIPTS UNTIL SUCH TIME AS THE CONGRESS WILL HAVE HAD AN OPPORTUNITY TO CONSIDER LEGISLATION WHICH WOULD AUTHORIZE THE USE OF A PORTION OR ALL OF THE FUNDS TO MAKE LOANS TO PRIVATE ENTERPRISES IN ORDER THAT THEY MAY ENGAGE IN ACTIVITIES SIMILAR TO THOSE HERETOFORE ENGAGED IN BY THE ISLAND TRADING COMPANY.

PROVISION FOR TERMINATION OF THE SUCCESSION OF THE ISLAND TRADING COMPANY IS CONTAINED IN THE INTERIOR DEPARTMENT APPROPRIATION ACT, 1953, 66 STAT. 458, UNDER THE HEADING " TRUST TERRITORY OF THE PACIFIC ISLANDS," AND READS IN PART AS FOLLOWS: * * * THE RESERVE FOR NAVY SUBSIDIES IN THE AMOUNT OF $1,801,934 CARRIED IN THE ACCOUNTS OF THE ISLAND TRADING COMPANY OF MICRONESIA ON DECEMBER 31, 1951, AS " PAID IN SURPLUS" SHALL BE PAID INTO THE TREASURY AS MISCELLANEOUS ECEIPTS: * * * PROVIDED FURTHER, THAT THE ISLAND TRADING COMPANY OF MICRONESIA SHALL NOT HAVE SUCCESSION AFTER DECEMBER 31, 1953, AND ANY FUNDS AVAILABLE TO SAID COMPANY ON SAID DATE SHALL, UNLESS OTHERWISE SPECIFICALLY PROVIDED BY LAW, BE DEPOSITED IN THE TREASURY AS MISCELLANEOUS RECEIPTS: PROVIDED FURTHER, THAT THE REFERENCES HEREIN TO THE ISLAND TRADING COMPANY OF MICRONESIA SHALL BE DEEMED TO INCLUDE ANY OTHER OFFICER, AGENCY, OR INSTRUMENTALITY PERFORMING THE SAME OR SIMILAR FUNCTIONS: PROVIDED FURTHER, THAT NO NEW ACTIVITY REQUIRING EXPENDITURES OF FEDERAL FUNDS SHALL BE INITIATED WITHOUT SPECIFIC PRIOR APPROVAL OF CONGRESS. THE SUCCESSION OF THE COMPANY WAS EXTENDED TO DECEMBER 31, 1954, BY A PROVISION CONTAINED IN THE INTERIOR DEPARTMENT APPROPRIATION ACT, 1954, 67 STAT. 273, WHICH PROVIDES " THAT THE SUCCESSION OF THE ISLAND TRADING COMPANY IS HEREBY EXTENDED TO DECEMBER 31, 1954, AND THE TIME WITHIN WHICH THE AMOUNT OF THE RESERVE FOR NAVY SUBSIDIES SHALL BE PAID INTO THE TREASURY AS MISCELLANEOUS RECEIPTS, AS REQUIRED BY THE INTERIOR DEPARTMENT APPROPRIATION ACT, 1953, IS HEREBY EXTENDED TO THE SAID DATE.'

EXCEPT FOR THE AMOUNT OF THE NAVY SUBSIDIES, THE ABOVE PROVISIONS OF LAW DO NOT SPECIFY A DATE ON WHICH THE FUNDS OF THE COMPANY MUST BE DEPOSITED INTO THE TREASURY. HOWEVER, THERE CAN BE NO DOUBT THAT THE CONGRESS INTENDED THAT, IN THE ABSENCE OF LEGISLATION ENACTED PRIOR TO DECEMBER 31, 1954, SPECIFICALLY PROVIDING OTHERWISE, THE UNOBLIGATED FUNDS AVAILABLE TO THE COMPANY ON THAT DATE SHOULD BE DEPOSITED INTO THE TREASURY AS MISCELLANEOUS RECEIPTS AS EARLY THEREAFTER AS PRACTICABLE. FURTHERMORE, THE LEGISLATIVE HISTORIES OF THE INTERIOR DEPARTMENT APPROPRIATION ACT, 1954, AND OF PUBLIC LAW 229, APPROVED AUGUST 8, 1953, 67 STAT. 494, DISCLOSE THAT THE CONGRESS CONSIDERED BUT FAILED TO APPROVE LEGISLATION WHICH WOULD HAVE PERMITTED THE FUNDS HERE IN QUESTION TO BE USED FOR THE PURPOSES OUTLINED IN THE DECEMBER LETTER OF THE ADMINISTRATIVE ASSISTANT SECRETARY. SEE, IN THIS CONNECTION, HOUSE REPORT NO. 716, 83D CONGRESS, ST SESSION, ACCOMPANYING S.J. RES. 6 WHICH WAS SUBSEQUENTLY ENACTED AS PUBLIC LAW 229, AND PAGES 2252 AND 2264 OF THE SENATE HEARINGS ON THE INTERIOR DEPARTMENT APPROPRIATION FOR 1954.

ACCORDINGLY, THIS OFFICE IS OF THE VIEW THAT THE FUNDS OF THE COMPANY PROPERLY MAY NOT BE WITHHELD FROM THE TREASURY FOR THE PURPOSES INDICATED IN YOUR LETTER BUT ARE REQUIRED TO BE DEPOSITED AS MISCELLANEOUS RECEIPTS AT AS EARLY A DATE AS PRACTICABLE. ALSO, ANY RECOVERIES ON ACCOUNT OF ACCOUNTS RECEIVABLE SIMILARLY SHOULD BE SO DEPOSITED.

WHETHER THE BUILDINGS AND OTHER PHYSICAL EQUIPMENT ARE CONSIDERED AS BEING PROPERTY OF THE COMPANY OR OF THE OFFICE OF TERRITORIES, WE AGREE THAT SINCE THE PROVISIONS OF LAW IN QUESTION DO NOT SPECIFICALLY PROVIDE FOR THE DISPOSITION THEREOF, AND SINCE THE DISPOSITION PROPOSED IN YOUR LETTER APPEARS TO BE AUTHORIZED BY SECTION 202 (C) OF THE FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT OF 1949, 63 STAT. 384, AS AMENDED, THE PROPERTY PROPERLY MAY BE RETAINED AND USED BY THE OFFICE OF THE TERRITORIES.