MAY 8, 1923, 2 COMP. GEN. 726
Highlights
STORAGE OF SURPLUS WAR SUPPLIES THE RENTING OF GROUND ON WHICH TO SELL SURPLUS GOVERNMENT PROPERTY OR ON WHICH TO STORE SUCH PROPERTY TEMPORARILY FOR THE EXPRESS PURPOSE OF SALE IS AN EXPENSE OF THE SALE AND PAYABLE FROM THE PROCEEDS OF THE SALE. THE RENTING OF GROUND ON WHICH TO STORE GOVERNMENT PROPERTY INDEFINITELY OR FOR SEVERAL MONTHS FOR THE PURPOSE OF PRESERVING OR PROTECTING SAID PROPERTY OR PREPARING IT FOR SALE AT SOME FUTURE TIME CAN NOT BE REGARDED AS AN EXPENSE OF THE SALE AND IS NOT A PROPER CHARGE AGAINST THE PROCEEDS THEREOF. NOR CAN THE RENT IN SUCH CASE BE PAID FROM THE PROCEEDS OF THE SALE OF OTHER PROPERTY HELD IN SPECIAL DEPOSIT ACCOUNT WHEN SUCH OTHER PROPERTY WAS NEVER STORED UPON THE PREMISES FOR WHICH RENT IS TO BE PAID.
MAY 8, 1923, 2 COMP. GEN. 726
STORAGE OF SURPLUS WAR SUPPLIES THE RENTING OF GROUND ON WHICH TO SELL SURPLUS GOVERNMENT PROPERTY OR ON WHICH TO STORE SUCH PROPERTY TEMPORARILY FOR THE EXPRESS PURPOSE OF SALE IS AN EXPENSE OF THE SALE AND PAYABLE FROM THE PROCEEDS OF THE SALE. THE RENTING OF GROUND ON WHICH TO STORE GOVERNMENT PROPERTY INDEFINITELY OR FOR SEVERAL MONTHS FOR THE PURPOSE OF PRESERVING OR PROTECTING SAID PROPERTY OR PREPARING IT FOR SALE AT SOME FUTURE TIME CAN NOT BE REGARDED AS AN EXPENSE OF THE SALE AND IS NOT A PROPER CHARGE AGAINST THE PROCEEDS THEREOF, NOR CAN THE RENT IN SUCH CASE BE PAID FROM THE PROCEEDS OF THE SALE OF OTHER PROPERTY HELD IN SPECIAL DEPOSIT ACCOUNT WHEN SUCH OTHER PROPERTY WAS NEVER STORED UPON THE PREMISES FOR WHICH RENT IS TO BE PAID.
COMPTROLLER GENERAL MCCARL TO S. B. MCINTYRE, DISBURSING OFFICER, WAR DEPARTMENT, MAY 8, 1923:
I HAVE YOUR LETTER DATED APRIL 16, 1923, FORWARDED THROUGH THE OFFICE OF THE CHIEF OF FINANCE, TRANSMITTING WITH REQUEST FOR DECISION WHETHER PAYMENT THEREON IS AUTHORIZED, A VOUCHER IN FAVOR OF TODD PROTECTOGRAPH CO. FOR $1,500 AS RENT FOR THE MONTHS OF JANUARY, FEBRUARY, AND MARCH, 1923, ON PREMISES OCCUPIED BY THE GOVERNMENT FOR STORAGE OF GOVERNMENT- OWNED PROPERTY IN COURSE OF BEING SALVAGED.
THE VOUCHER IS STATED FOR PAYMENT FROM PROCEEDS OF SALE IN DISBURSING OFFICER'S SPECIAL DEPOSIT ACCOUNT AND THE ONLY QUESTION PRESENTED IS AS TO WHETHER SUCH FUND IS AVAILABLE FOR THE PAYMENT OF RENT OF LAND ON WHICH PROPERTY IS STORED PREVIOUSLY TO ITS SALE.
IF IT SHOULD BECOME NECESSARY TO RENT GROUND ON WHICH TO SELL GOVERNMENT PROPERTY OR ON WHICH TO STORE SAID PROPERTY TEMPORARILY FOR THE EXPRESS PURPOSE OF SALE, THE RENT UNDER SUCH CIRCUMSTANCES WOULD BE AN EXPENSE OF SALE THE SAME AS WOULD AUCTIONEER'S FEES AND WOULD BE A PROPER CHARGE AGAINST THE PROCEEDS OF SALE. BUT WHEN PREMISES ARE LEASED FOR THE PURPOSE OF STORING SALVAGED PROPERTY INDEFINITELY OR FOR SEVERAL MONTHS FOR THE PURPOSE OF PRESERVING OR PROTECTING SAID PROPERTY, OR EVEN FOR THE PURPOSE OF CONVERTING OR OTHERWISE PREPARING SAID PROPERTY WITH A VIEW TO A MORE ADVANTAGEOUS SALE THEREOF AT SOME FUTURE TIME, THE RENT IN SUCH A CASE CAN NOT BE REGARDED AS AN EXPENSE OF SALE AND IS NOT A PROPER CHARGE AGAINST THE PROCEEDS OF SALE; AND IN NO CASE COULD THE RENT OF THE PREMISES LEASED FOR THE STORAGE OF PROPERTY, NO PART OF WHICH HAD BEEN SOLD, BE PAID FROM THE PROCEEDS OF SALE OF OTHER PROPERTY WHICH HAD NOT BEEN STORED ON SAID PREMISES.
IT IS UNDERSTOOD THAT THE CASE HERE PRESENTED COMES WITHIN THE LATTER CLAUSE. ACCORDINGLY, THE QUESTION SUBMITTED IS ANSWERED IN THE NEGATIVE. IT MAY ALSO BE SAID SUCH RENTAL OF LAND WOULD NOT BE AUTHORIZED IF THERE BE NO PROPER APPROPRIATION CHARGEABLE THEREWITH.