APRIL 26, 1924, 3 COMP. GEN. 808

APRIL 26, 1924, 3 COMP. GEN. 808

RECEIPTS FROM DAMAGES TO PUBLIC PROPERTY THE MONEY RECEIVED IN COMPROMISE AS DAMAGES FOR THE LOSS OF A COAST GUARD VESSEL AND ITS EQUIPMENT IS MONEY RECEIVED FOR THE USE OF THE UNITED STATES WITHIN THE INTENT OF SECTION 3617, REVISED STATUTES, AND SHOULD BE PROMPTLY DEPOSITED AND COVERED INTO THE TREASURY AS MISCELLANEOUS RECEIPTS, INSTEAD OF TO THE CREDIT OF "BUILDING OR PURCHASE OF VESSELS FOR COAST GUARD, PROCEEDS OF SALES, SPECIAL FUND," AS SUCH TRANSACTION IS NOT THE SALE OF AN UNSERVICEABLE REVENUE CUTTER.

DECISION BY COMPTROLLER GENERAL MCCARL, APRIL 26, 1924:

THERE IS FOR DECISION THE MATTER OF THE APPLICATION OF THE AMOUNT OF $167,500, DEPOSITED ON JANUARY 5, 1924, TO THE CREDIT OF "BUILDING OR PURCHASE OF VESSELS FOR COAST GUARD, PROCEEDS OF SALES, SPECIAL FUND," BY THE DISBURSING CLERK, TREASURY DEPARTMENT, THE QUESTION BEING AS TO WHETHER THE AMOUNT SHOULD NOT HAVE BEEN DEPOSITED AND COVERED INTO THE TREASURY AS MISCELLANEOUS RECEIPTS.

THE MATTER OF THE COLLECTION IS EXPLAINED IN LETTER OF NOVEMBER 30, 1923, FROM THE ATTORNEY GENERAL TO THE SECRETARY OF THE TREASURY, AS FOLLOWS:

I REFER TO THE PREVIOUS CORRESPONDENCE HAD WITH YOU AND THE SOLICITOR FOR THE TREASURY RELATIVE TO THE CLAIM OF THE UNITED STATES AS OWNER OF THE STEAMER MCCULLOUGH, AGAINST THE STEAMER GOVERNOR AND THE PACIFIC STEAMSHIP CO., HER OWNER. THIS CLAIM GREW OUT OF A COLLISION BETWEEN THE TWO VESSELS ON JUNE 13, 1917, AS A RESULT OF WHICH THE MCCULLOUGH SANK, AND, WITH HER EQUIPMENT, BECAME A TOTAL LOSS.

THE SECRETARY OF THE NAVY, WHO THEN ADMINISTERED THE COAST GUARD SERVICE, REFERRED THE CLAIM, * * * TO THE DEPARTMENT FOR ATTENTION. THE GOVERNMENT PROMPTLY FILED ITS LIBEL AGAINST THE STEAMER GOVERNOR AND OBTAINED PROPER SECURITY TO PROTECT THE CLAIM WHEN FINALLY CONCLUDED. * * * FOLLOWING CONSIDERABLE NEGOTIATION, * * * SETTLEMENT WAS CONCLUDED UPON THE BASIS OF $167,500. THE TERMS OF THE ADJUSTMENT PROVIDE FOR THE DISCONTINUANCE OF THE ADMIRALTY PROCEEDINGS AT SAN FRANCISCO, PROPER FORM OF RECEIPT, WHICH STATES A SETTLEMENT OF ALL CLAIMS GROWING OUT OF THE LIBEL AND ANSWER, WHICH INCLUDES CROSS CLAIMS FOR DAMAGES BY THE OWNERS OF THE GOVERNOR, AND A RELEASE FROM THE PACIFIC STEAMSHIP CO., OWNER OF THE GOVERNOR, IN FAVOR OF THE GOVERNMENT.

AS MY CORRESPONDENCE WITH YOU HERETOFORE HAS INDICATED, PART OF THE GOVERNMENT'S CLAIM CONSISTED OF MONIES WHICH WERE PAID BY THE GOVERNMENT TO THE OFFICERS AND CREW OF THE MCCULLOUGH, FOR LOST EFFECTS. THE LIBEL FILED IN THE PROCEEDINGS, AS THE DEPARTMENT READS IT, LIMITS THE CLAIM TO JUST THE MONIES WHICH THE UNITED STATES HAS PAID SUCH OFFICERS AND SEAMEN, AND CAN NOT BE READ TO INCLUDE THE DIFFERENCE BETWEEN THE ACTUAL VALUE OF THE EFFECTS LOST AND THE PAYMENTS MADE BY THE GOVERNMENT. COUNSEL FOR THE GOVERNOR BELIEVED IT MIGHT BE READ TO INCLUDE THE EXCESS AND THEREFORE INSISTED AT THE TIME SETTLEMENT WAS PROPOSED, AND SINCE HAS INSISTED, THAT THE RECEIPTS AND RELEASES GIVEN SHOULD BE WITHOUT PREJUDICE TO REIMBURSEMENT BY THE GOVERNMENT FOR ANY EXCESS WHICH IT MIGHT BE CALLED UPON TO PAY TO THE OFFICERS AND CREW UNDER THE PRESENT LIBEL PROCEEDINGS. THIS WAS CONSIDERED PROPER AND THE RELEASES AS DRAWN PROTECT THIS FEATURE.

I NOW ENCLOSE CHECK TO THE ORDER OF THE UNITED STATES OF AMERICA FOR $167,500, BEING THE MONIES ACCEPTED IN FULL SETTLEMENT OF THE CLAIM, * * *. MAY I ASK THAT THE MONIES BE DEPOSITED IN THE TREASURY TO THE CREDIT OF THE PROPER ACCOUNT. * * *

THE FUND "BUILDING OR PURCHASE OF VESSELS FOR COAST GUARD, PROCEEDS OF SALES, SPECIAL FUND," IS EXPLAINED AND THE SEVERAL PROVISIONS OF LAW APPLICABLE TO SALES OF EQUIPMENT, ETC., OF THE COAST GUARD ARE SET OUT IN DECISION OF MARCH 5, 1924, AS FOLLOWS:

RECEIPTS FROM SALES OF WHAT CONSTITUTES REVENUE-CUTTER EQUIPMENT ARE DEPOSITED IN PROPER CASES INTO THE TREASURY TO A FUND NOW DESIGNATED UPON THE BOOKS OF THE TREASURY, IN ACCORDANCE WITH THE ACT OF JANUARY 28, 1915, SUPRA, AS "BUILDING OR PURCHASE OF VESSELS FOR THE COAST GUARD, PROCEEDS OF SALES," THEIR USE UNDER CERTAIN CONDITIONS BEING AUTHORIZED BY THE REVISED STATUTES AS FOLLOWS:

"SEC. 2748. THE PRESIDENT MAY FROM TIME TO TIME CAUSE SUCH OF THE REVENUE-CUTTERS AS HAVE BECOME UNFIT FOR FURTHER SERVICE TO BE SOLD; AND THE PROCEEDS SHALL BE PAID INTO THE TREASURY: PROVIDED, THAT THE SECRETARY OF THE TREASURY MAY APPLY, IN THE PURCHASE OR CONSTRUCTION OF REVENUE- CUTTERS, ANY UNEXPENDED BALANCE OF THE PROCEEDS OF REVENUE CUTTERS SOLD BY HIM UNDER THE AUTHORITY OF SECTION TWO OF THE ACT OF TWENTIETH APRIL, EIGHTEEN HUNDRED AND SIXTY-SIX, CHAPTER SIXTY THREE.'

THE ACT OF APRIL 20, 1866, 14 STAT., 40, CITED SUPRA, PROVIDES:

"SEC. 2. AND BE IT FURTHER ENACTED, THAT THE SECRETARY OF THE TREASURY BE, AND HE IS HEREBY, AUTHORIZED, IN HIS DISCRETION, TO SELL AT PUBLIC AUCTION, TO THE HIGHEST AND BEST BIDDER FOR CASH, AFTER DUE NOTICE IN THE PUBLIC NEWSPAPERS, SUCH OF THE REVENUE CUTTERS AS HE SHALL FIND TO BE ILL ADAPTED TO THE PURPOSES OF THE REVENUE SERVICE, AND TO EXPEND THE PROCEEDS OF SAID SALES IN THE PURCHASE OR CONSTRUCTION OF OTHER VESSELS BETTER SUITED TO THE WANTS OF SAID SERVICE.'

THESE ACTS WERE FOLLOWED BY THE ACT OF MAY 8, 1872, 17 STAT., 83, PROVIDING:

"SEC. 5. THAT ALL PROCEEDS OF SALES OF OLD MATERIAL, CONDEMNED STORES, SUPPLIES, OR OTHER PUBLIC PROPERTY OF ANY KIND, SHALL HEREAFTER BE DEPOSITED AND COVERED INTO THE TREASURY AS MISCELLANEOUS RECEIPTS, ON ACCOUNT OF "PROCEEDS OF GOVERNMENT PROPERTY," AND SHALL NOT BE WITHDRAWN OR APPLIED EXCEPT IN CONSEQUENCE OF A SUBSEQUENT APPROPRIATION MADE BY LAW; * * *. BUT THIS SECTION SHALL NOT BE HELD TO REPEAL THE EXISTING AUTHORITY OF LAW IN RELATION TO MARINE HOSPITALS, REVENUE-CUTTERS, THE CLOTHING FUND OF THE NAVY, OR THE SALE OF COMMISSARY STORES TO THE OFFICERS OF THE ARMY.'

THESE PROVISIONS ARE CARRIED INTO THE REVISED STATUTES * * * AS SECTIONS 3618 AND 3692, THE LATTER OF WHICH PROVIDES:

"SEC. 3692. ALL MONEYS RECEIVED FROM THE LEASING OR SALE OF MARINE HOSPITALS, OR THE SALE OF REVENUE-CUTTERS, OR FROM THE SALE OF COMMISSARY STORES TO THE OFFICERS AND ENLISTED MEN OF THE ARMY, (* * *) OR FROM SALES OF CONDEMNED CLOTHING OF THE NAVY, OR FROM SALES OF MATERIALS, STORES, OR SUPPLIES TO ANY EXPLORING OR SURVEYING EXPEDITION AUTHORIZED BY LAW, SHALL RESPECTIVELY REVERT TO THAT APPROPRIATION OUT OF WHICH THEY WERE ORIGINALLY EXPENDED, AND SHALL BE APPLIED TO THE PURPOSES FOR WHICH THEY ARE APPROPRIATED BY LAW.'

SECTION 3617, REVISED STATUTES, PROVIDES:

THE GROSS AMOUNT OF ALL MONEYS RECEIVED FROM WHATEVER SOURCE FOR THE USE OF THE UNITED STATES, EXCEPT AS OTHERWISE PROVIDED IN THE NEXT SECTION, SHALL BE PAID BY THE OFFICER OR AGENT RECEIVING THE SAME INTO THE TREASURY, AT AS EARLY A DAY AS PRACTICABLE, WITHOUT ANY ABATEMENT OR DEDUCTION ON ACCOUNT OF SALARY, FEES, COSTS, CHARGES, EXPENSES, OR CLAIM OF ANY DESCRIPTION WHATEVER. * * *

THE DEPOSIT OF THE AMOUNT TO THE SPECIAL FUND HERE IN QUESTION WAS CLEARLY IMPROPER. THE MONEYS WERE RECEIVED FOR USE OF THE UNITED STATES WITHIN THE INTENT OF SECTION 3617, REVISED STATUTES, AND PROMPTLY SHOULD HAVE BEEN DEPOSITED AND COVERED INTO THE TREASURY AS MISCELLANEOUS RECEIPTS, THERE APPEARING NO STATUTORY EXCEPTIONS OTHER THAN AS TO SALES OF VESSELS, EQUIPMENT, ETC., AND, OBVIOUSLY, THE AMOUNT RECOVERED ACCOUNT OF THE DESTRUCTION OF THE VESSEL, ITS EQUIPMENT, AND THE EQUIPMENT, ETC., OF ITS COMPLEMENT, WAS NOT THE PROCEEDS OF A SALE. 14 COMP. DEC., 87; 20 ID., 349; 22 ID., 379; 2 COMP. GEN., 677.

TO ADJUST THE MATTER, A SETTLEMENT WILL BE STATED IN FAVOR OF THE TREASURY DEPARTMENT CHARGING $167,500 TO "BUILDING OR PURCHASE OF VESSELS FOR COAST GUARD, PROCEEDS OF SALES, SPECIAL FUND," WITH DIRECTIONS ON THE CERTIFICATE THAT WARRANT BE DRAWN IN FAVOR OF THE TREASURER OF THE UNITED STATES FOR DEPOSIT, THE AMOUNT TO BE COVERED INTO THE TREASURY AS MISCELLANEOUS RECEIPTS.