AUGUST 25, 1923, 3 COMP. GEN. 101

AUGUST 25, 1923, 3 COMP. GEN. 101

EQUALIZATION OF TRANSPORTATION RATES DURING WAR EMERGENCY THE ACT OF OCTOBER 6, 1917, 40 STAT., 361, GRANTING TO FREE LAND-GRANT RAILROADS THE SAME COMPENSATION FOR TRANSPORTATION OF GOVERNMENT PROPERTY AND TROOPS DURING THE WAR EMERGENCY AS PAYABLE TO THE 50 PERCENT LAND- GRANT ROADS, DOES NOT AFFECT RATES ON TRANSPORTATION FURNISHED PRIOR TO THE DATE OF THE ACT UNDER EQUALIZATION AGREEMENTS.

DECISION BY COMPTROLLER GENERAL MCCARL, AUGUST 25, 1923:

THE SAN ANTONIO AND ARKANSAS PASS RAILWAY CO., PER LETTER OF JULY 25, 1923 (FILE R-1733-HJE), REQUESTED RECONSIDERATION OF DECISION OF THIS OFFICE, JULY 10, 1923, BY WHICH WAS AFFIRMED SETTLEMENT TN-W 70823 1/2, APRIL 26, 1923, DISALLOWING ITS SUPPLEMENTAL BILLS 43601-B C-D-E-F FOR $274.55 FOR FREIGHT TRANSPORTATION DURING APRIL, 1917, IN ADDITION TO AMOUNT PAID BY CAPT. P. G. MUMFORD PER VOUCHER 2044, OCTOBER, 1917.

THE REASON FOR THE ACTION OF THIS OFFICE WAS FULLY SET FORTH IN SAID DECISION. THE COMPANY CONTENDS THAT UNDER THE URGENT DEFICIENCY ACT OF OCTOBER 6, 1917, 40 STAT., 361, A LAND-GRANT DEDUCTION OF 50 PERCENT WAS ESTABLISHED OVER THE FORMER FREE LINES OF THE MISSOURI PACIFIC RAILROAD, RETROACTIVE AS OF APRIL 6, 1917.

THE ACT OF OCTOBER 6, 1917, MERELY PROVIDED THAT THE LAND-GRANT RAILROADS THEREIN SPECIFIED, WHICH INCLUDED THE LINES OF THE MISSOURI PACIFIC RAILROAD IN ARKANSAS, SHALL RECEIVE THE SAME COMPENSATION FOR TRANSPORTATION DURING THE EXISTING WAR EMERGENCY OF PROPERTY AND TROOPS OF THE UNITED STATES AS MAY BE PAID TO LAND-GRANT RAILROADS ORGANIZED UNDER THE LAND-GRANT ACTS OF MARCH 3, 1863, 12 STAT., 772, AND OF JULY 27, 1866, 14 STAT., 292. THE ACT OF 1917 PROVIDED THAT IT SHALL NOT BE CONSTRUED AS CHANGING IN ANY OTHER WAY OR FOR ANY OTHER PERIOD OF TIME THE RIGHTS AND DUTIES OF THE LAND-GRANT RAILROADS MENTIONED. THIS ACT, THEREFORE, AUTHORIZED A CHANGE IN THE BASIS OF PAYMENT FOR TRANSPORTATION CHARGES FROM AND AFTER THE DATE OF THE ACT. THE COMPTROLLER OF THE TREASURY CONSTRUED THE ACT AS AUTHORIZING PAYMENT TO THE SPECIFIC ROADS EMBRACED IN THE TERMS OF THE ACT ON THE BASIS INDICATED IN THE ACT, FROM THE BEGINNING OF THE WAR, APRIL 6, 1917, THOUGH---

SAID RAILROADS HAD NO LEGAL RIGHT TO INCREASED COMPENSATION FOR SERVICES THERETOFORE RENDERED. CONGRESS, UNDER ITS POWER TO APPROPRIATE PUBLIC MONEYS FOR THE PAYMENT OF CLAIMS FOUNDED UPON MORAL OR EQUITABLE OBLIGATION, HAS IN THIS CASE AUTHORIZED PAYMENT AT THE INCREASED RATE FOR ALL SERVICE RENDERED FOR THE GOVERNMENT AFTER THE BEGINNING OF THE WAR, EVEN THOUGH PRIOR TO THE DATE OF THE ACT. 24 COMP. DEC., 418.

PAYMENT MADE UNDER AUTHORITY OF THIS CONSTRUCTION IS NOT AUTHORITY FOR PAYMENT TO OTHER ROADS THAN THOSE SPECIFICALLY MENTIONED ON ANY OTHER BASIS THAN THE LEGAL BASIS EFFECTIVE AT THE TIME OF SERVICE, WHICH WAS NOT CHANGED UNTIL OCTOBER 6, 1917. THIS VIEW WAS ALSO HELD BY THE COMPTROLLER OF THE TREASURY, AS SET FORTH IN HIS DECISION OF DECEMBER 8, 1917, 24 COMP. DEC., 333.

THE CLAIMANT COMPANY SECURED THIS BUSINESS UNDER ITS AGREEMENT FOR EQUALIZATION OF RATES LEGALLY EFFECTIVE AT THE TIME OF THE SERVICE AND PAYMENT HAS BEEN MADE IN ACCORDANCE WITH SAID AGREEMENT. THERE HAS BEEN NO AUTHORITY OF LAW TO MAKE ANY PAYMENT TO SAID COMPANY IN EXCESS OF THE LEGAL RATE AS DETERMINED BY THE LAW AND AGREEMENT EFFECTIVE AT DATE OF SERVICE.