MARCH 12, 1924, 3 COMP. GEN. 612

MARCH 12, 1924, 3 COMP. GEN. 612

SPECIAL FUND ACCOUNTS - RETURN PASSAGE MONEYS AND FINES OF INADMISSIBLE ALIEN IMMIGRANTS THERE IS AUTHORIZED TO BE SET UP ON THE BOOKS OF THE TREASURY DEPARTMENT A SPECIAL FUND ACCOUNT TO WHICH MAY BE CREDITED RETURN PASSAGE MONEYS WHICH HAVE BEEN HELD IN A SPECIAL DEPOSIT ACCOUNT FOR SIX MONTHS AND WHICH WERE REQUIRED TO BE DEPOSITED BY STEAMSHIP COMPANIES PRIOR TO THEIR CLEARANCE, FOR HAVING BROUGHT TO THE UNITED STATES INADMISSIBLE IMMIGRANTS. THERE IS NOT AUTHORIZED TO BE SET UP ON THE BOOKS OF TREASURY DEPARTMENT A SPECIAL FUND ACCOUNT FOR USE IN REFUNDING IMMIGRATION FINES WHICH HAVE BEEN DEPOSITED AND COVERED INTO MISCELLANEOUS RECEIPTS.

DECISION BY COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF THE TREASURY, MARCH 12, 1924:

I HAVE YOUR LETTER OF FEBRUARY 20, 1924, RELATIVE TO DECISION OF NOVEMBER 12, 1923, 27 MS. COMP. GEN., 510, CONCERNING A SPECIAL FUND ACCOUNT TO BE SET UP ON THE BOOKS OF THE TREASURY TO WHICH MAY BE CREDITED RETURN PASSAGE MONEY REQUIRED TO BE DEPOSITED BY STEAMSHIP COMPANIES, PRIOR TO THEIR CLEARANCE, FOR HAVING BROUGHT TO THE UNITED STATES INADMISSIBLE ALIENS.

THE ESTABLISHMENT OF A SPECIAL FUND ACCOUNT WAS CONSIDERED NECESSARY IN VIEW OF THE MATTERS SUBMITTED IN LETTER OF JULY 3, 1922, OF THE ASSISTANT SECRETARY OF LABOR TO THE SECRETARY OF THE TREASURY, AS FOLLOWS:

UNDER SECTION 9 OF THE IMMIGRATION ACT, AN ADMINISTRATIVE FINE MAY BE IMPOSED ON THE RESPONSIBLE STEAMSHIP LINE OR THE VESSEL BY WHICH AN ALIEN ARRIVES IN THIS COUNTRY IF HE IS FOUND ON ARRIVAL TO BE AFFLICTED WITH MENTAL OR PHYSICAL DISABILITY AFFECTING HIS ABILITY TO EARN A LIVING, OR WITH INSANITY, IDIOCY, IMBECILITY, FEEBLE-MINDEDNESS, TUBERCULOSIS, A LOATHSOME OR DANGEROUS CONTAGIOUS DISEASE, IF ILLITERATE, OR IF FROM A GEOGRAPHICAL AREA IMMIGRATION FROM WHICH IS PROHIBITED. IN THE EVENT AN ADMINISTRATIVE FINE IS RULED TO HAVE BEEN INCURRED, THE AMOUNT OF THE ALIEN'S PASSAGE, DEPOSITED BY THE RESPONSIBLE VESSEL PRIOR TO CLEARANCE, IS RETURNED TO THE ALIEN HIMSELF IF DEPORTATION HAS BEEN EFFECTED, AND TO THE LINE IF THE ALIEN IS PERMANENTLY ADMITTED, WHETHER OR NOT THIS ADMISSION IS CONDITIONAL, SUCH AS UNDER BOND. THE RETURN IS MADE BY THE COLLECTOR UPON RECEIPT OF THE RULING OF THIS DEPARTMENT EITHER DIRECT TO THE STEAMSHIP LINE OR TO THE ALIEN, IN THE LATTER CASE IN COLLABORATION WITH THE CONSULAR REPRESENTATIVES OF THIS COUNTRY. THE AUTHORITY OF THIS DEPARTMENT IS LIMITED TO RULING AS TO WHETHER A FINE HAS BEEN INCURRED AND TO DIRECTING THE DISPOSITION OF THE PASSAGE MONEY EITHER TO THE STEAMSHIP LINE OR THE ALIEN, IN ACCORDANCE WITH OPINIONS WHICH HAVE BEEN RENDERED BY THE SOLICITOR OF THIS DEPARTMENT.

THE DIFFICULTY IN THE CASES SPECIFICALLY MENTIONED BY THE COLLECTOR OF CUSTOMS IS THAT THE ALIENS HAVE ESCAPED FROM CUSTODY AND HAVE ENTERED THE UNITED STATES UNLAWFULLY AND CAN NOT BE LOCATED HEREIN. IF LOCATED, DEPORTATION PROCEEDINGS WILL BE INSTITUTED UNDER THE IMMIGRATION ACT AND THE ALIENS RETURNED TO THE COUNTRIES WHENCE THEY CAME TO THE UNITED STATES. THE LAW PROVIDES THAT IN THE EVENT OF DEPORTATION FOLLOWING AN EXCLUDING DECISION OF A BOARD OF SPECIAL INQUIRY, IF AFFIRMED BY THE SECRETARY OF LABOR ON APPEAL, OR FOLLOWING AN EXCLUDING DECISION OF A BOARD OF SPECIAL INQUIRY IF NO APPEAL HAS BEEN ENTERED, THE AMOUNTS OF PASSAGE IN CASES OF THIS CHARACTER SHALL BE RETURNED TO THE ALIENS. UNDER A DECISION OF THE SOLICITOR OF THIS DEPARTMENT THE AMOUNTS MAY BE RETURNED TO THE LEGAL HEIRS OF THE ALIEN CONCERNED IN THE EVENT OF HIS DEATH. THE LAW MAKES POSSIBLE NO OTHER DISPOSITION THAN THE RETURN OF THIS PASSAGE MONEY TO THE LINE, OR TO THE ALIEN OR HIS HEIRS. THIS DEPARTMENT FEELS THAT SUCH MONEYS ARE, IN REALITY, A TRUST FUND HELD BY THE REPRESENTATIVE OF THE TREASURY AND THAT THEY MUST BE HELD AWAITING LAWFUL CLAIMANTS.

IN DECISION OF NOVEMBER 12, 1923, 27 MS. COMP. GEN., 510, IT WAS SAID:

THE MONEYS ARE STATED AS BEING NOW IN SPECIAL DEPOSIT ACCOUNTS. FROM THE FACTS STATED IN YOUR SUBMISSION THE MONEYS SHOULD BE PLACED IN A SPECIAL FUND AND CLAIMS THERE AGAINST BE SUBMITTED TO THIS OFFICE FOR SETTLEMENT AFTER RECEIVING ADMINISTRATIVE EXAMINATION AS PROVIDED BY LAW. YOUR LETTER INDICATES THAT SUCH PROCEDURE WILL BE ACCEPTABLE TO YOU AND IS AUTHORIZED TO BE FOLLOWED ACCORDINGLY.

IN YOUR LETTER OF FEBRUARY 20, 1924, YOU STATE:

IN ORDER TO SECURE COMPLETE INFORMATION IN CONNECTION WITH THE ESTABLISHMENT OF THE SPECIAL FUND ACCOUNT ABOVE REFERRED TO, A COPY OF YOUR DECISION A.D. 7972 WAS TRANSMITTED TO THE SECRETARY OF LABOR WITH TREASURY LETTER OF DECEMBER 6, 1923, REQUESTING SUGGESTIONS FROM HIS DEPARTMENT AS TO CERTAIN POINTS AS SET FORTH IN SAID LETTER, COPY OF WHICH IS ENCLOSED HEREWITH.

THE LETTER OF FEBRUARY 9, 1924, OF THE SECRETARY OF LABOR READS:

THE DEPARTMENT HAS THE HONOR TO REFER TO YOUR LETTER OF DECEMBER 6, 1923, REGARDING THE ESTABLISHMENT OF A SPECIAL FUND IN THE TREASURY DEPARTMENT, IN WHICH SHALL BE DEPOSITED FUNDS COLLECTED FROM STEAMSHIP COMPANIES UNDER THE PROVISIONS OF SECTION 9 OF THE ACT OF FEBRUARY 5, 1917, AND ANSWERS YOUR SEVERAL INQUIRES IN REGARD TO THE MATTER AS FOLLOWS:

1. Q. HOW LONG SHOULD THE FUND COLLECTED FROM STEAMSHIP COMPANIES UNDER SECTION 9 BE HELD BY THE COLLECTING OFFICERS IN THEIR SPECIAL DEPOSIT ACCOUNTS AVAILABLE FOR PROMPT RETURN TO THE DEPORTED ALIENS BEFORE DEPOSITING THE UNCLAIMED PORTION IN THE TREASURY OF THE UNITED STATES TO THIS SPECIAL FUND?

ANS. SIX MONTHS FROM DATE OF DEPOSIT WOULD APPEAR TO BE AMPLE TIME, PROVIDED A SUFFICIENT AMOUNT IS CARRIED IN THE SPECIAL FUND TO TAKE CARE OF WITHDRAWALS TO MEET THE PAYMENT OF CLAIMS PROPERLY CERTIFIED AS DUE ALIENS WHO HAVE BEEN EXCLUDED OR DEPORTED.

2. Q. IS IT NOT POSSIBLE THAT THERE ARE OTHER IMMIGRATION FUNDS OF A SIMILAR CHARACTER NOW CARRIED IN SPECIAL DEPOSIT ACCOUNTS OF COLLECTORS THAT COULD BE COVERED INTO THE TREASURY TO GOOD ADVANTAGE AND CREDITED TO SPECIAL FUNDS SIMILAR TO THE ONE HEREIN REFERRED TO IF IT IS FOUND SUCH SPECIAL FUNDS ARE AUTHORIZED UNDER THE LAWS PROVIDING FOR THE RETURN OF CERTAIN AMOUNTS FROM COLLECTIONS?

ANS. YES. (A) PASSAGE MONEY COLLECTED UNDER THE PROVISIONS OF SECTION 6 OF THE ACT APPROVED MAY 19, 1921, AS AMENDED BY PUBLIC RESOLUTION NO. 55, APPROVED MAY 11, 1922, WHICH SHOULD BE DISPOSED OF IN THE SAME MANNER AS PASSAGE MONEY COLLECTED UNDER THE PROVISIONS OF SECTION 9 OF THE ACT OF FEBRUARY 5, 1917, AND BE DEPOSITED IN THE SAME SPECIAL FUND. (B) IMMIGRATION FINES COLLECTED UNDER THE PROVISIONS OF SECTIONS 7, 9, 14, 15, 18, 20, 35, 36, AND SECTION 6, ACT OF MAY 19, 1921, AS AMENDED BY PUBLIC RESOLUTION APPROVED MAY 11, 1922.

IT IS RECOMMENDED THAT A SEPARATE SPECIAL FUND ACCOUNT BE ESTABLISHED FOR IMMIGRATION FINES, AND THAT COLLECTORS OF CUSTOMS BE PERMITTED TO HOLD SUCH COLLECTIONS IN THEIR SPECIAL DEPOSIT ACCOUNTS FOR SIX MONTHS AFTER DATE OF DEPOSIT BEFORE DEPOSITING THE UNCLAIMED PORTION IN THE TREASURY TO THIS FUND.

THE DEPARTMENT OF LABOR UNDERSTANDS (1) THAT WITHDRAWALS CAN BE MADE FROM THE SPECIAL FUND ACCOUNTS IN SETTLEMENT OF CLAIMS WITHOUT IDENTIFYING THE PARTICULAR AMOUNTS DEPOSITED WITH COLLECTORS OF CUSTOMS; (2) THAT ALL COLLECTIONS OF PASSAGE MONEY FOR IMMIGRATION FINES DEPOSITED IN THE TREASURY BY COLLECTORS OF CUSTOMS WILL GO INTO THE SPECIAL FUND ACCOUNTS ABOVE REFERRED TO; AND (3) THAT WHENEVER, IN YOUR OPINION, THE BALANCES IN THESE SPECIAL FUNDS EXCEED THE AMOUNTS REQUIRED FOR PAYMENT OF CLAIMS, THE EXCESS AMOUNTS WILL BE CARRIED TO THE SURPLUS FUND UPON RECOMMENDATION OF THIS DEPARTMENT.

THE MATTERS WILL BE CONSIDERED AND DISPOSED OF IN THE ORDER IN WHICH THEY ARE STATED IN THE LETTER NEXT ABOVE QUOTED.

PASSAGE MONEY: THE PASSAGE MONEY COLLECTED FROM STEAMSHIP COMPANIES AND NOW HELD IN SPECIAL DEPOSIT ACCOUNTS--- IN THOSE CASES IN WHICH THE ALIENS HAVE ESCAPED AND THE MONEYS HAVE BEEN HELD FOR MORE THAN SIX MONTHS--- SHOULD BE TRANSFERRED TO THE SPECIAL FUND ACCOUNT AUTHORIZED TO BE ESTABLISHED. THESE TRANSFERS SHOULD BE ACCOMPLISHED BY THE ACCOUNTABLE OFFICERS TAKING UP IN THEIR REGULAR ACCOUNTS THE AMOUNTS THUS TO BE CREDITED TO THE SPECIAL FUND ACCOUNT AND BY DROPPING IN THEIR SPECIAL DEPOSIT ACCOUNTS THE AMOUNTS THUS TAKEN UP. AFTER THAT IS DONE, THEY SHOULD DRAW THEIR DEPOSITORY CHECKS FOR THE AMOUNTS INVOLVED AND DEPOSIT THEM FOR CREDIT TO THE SPECIAL FUND ACCOUNT. IN SUPPORT OF THE ACTION THUS TAKEN, THEY SHOULD ACCOMPANY THEIR ACCOUNTS WITH ABSTRACTS, SHOWING THE SOURCES OF THE COLLECTIONS, NAMING THE TRANSPORTATION COMPANIES AND THE ALIENS FROM WHICH AND ON WHOSE ACCOUNTS THE PENALTIES WERE INFLICTED, SO THAT BEFORE ANY REFUNDS ARE MADE FROM THE SPECIAL FUND ACCOUNT THE COLLECTIONS MAY BE IDENTIFIED AS HAVING BEEN COVERED THEREIN.

IMMIGRATION FINES: IT IS UNDERSTOOD THAT WHAT IS SOUGHT TO BE ACCOMPLISHED IN THIS CONNECTION IS THE ESTABLISHMENT OF A CHARACTER OF REVOLVING FUND; THAT IS, THAT IT IS CONTEMPLATED HOLDING ALL FINES, ETC., COLLECTED, OTHER THAN ON ACCOUNT OF PASSAGE MONEY, IN SPECIAL DEPOSIT ACCOUNTS FOR NOT IN EXCESS OF SIX MONTHS; THEN TO DEPOSIT SUCH FINES, ETC., IN A SPECIAL FUND ACCOUNT; AND WHEN THE AMOUNT IN THE SPECIAL FUND ACCOUNT REACHES A CERTAIN FIGURE--- SAY $25,000--- TO DEPOSIT IT FOR COVERING INTO MISCELLANEOUS RECEIPTS; AND, UPON ANY REFUNDS BEING MADE FROM THE SPECIAL FUND ACCOUNT, TO DEPOSIT SUCH ADDITIONAL FINES, ETC., WHICH HAVE BEEN HELD IN SPECIAL DEPOSIT ACCOUNTS FOR SIX MONTHS FOR CREDIT THERETO SO AS ALWAYS TO KEEP THE BALANCE OF THE SPECIAL FUND ACCOUNT AT A CERTAIN FIGURE.

THE USE OF THE SPECIAL FUND ACCOUNT FOR CLEARING THE SPECIAL DEPOSIT ACCOUNTS OF PASSAGE MONEY PENALTIES WHICH HAVE BEEN RETAINED FOR SIX MONTHS APPEARS DESIRABLE AND NECESSARY; HOWEVER, THERE APPEARS NO NECESSITY FOR THE ESTABLISHMENT OF A SPECIAL FUND ACCOUNT FOR IMMIGRATION FINES, THE ESTABLISHMENT OF THE LATTER MENTIONED ACCOUNT, WHICH IN EFFECT WOULD BE A REVOLVING FUND, BEING OBVIOUSLY IMPROPER AND UNAUTHORIZED.

IT IS FURTHER UNDERSTOOD THAT THE LATTER-MENTIONED SPECIAL FUND ACCOUNT IS CONTEMPLATED FOR USE PRIMARILY FOR REFUNDING FINES COLLECTED, DEPOSITED, AND COVERED INTO MISCELLANEOUS RECEIPTS AFTER HEARINGS AND DETERMINATIONS THAT THOSE CHARGED WITH THE VIOLATIONS WERE GUILTY AS CHARGED, BUT WHO, ON THE BASIS OF NEW AND MATERIAL EVIDENCE AND FURTHER HEARINGS AND DETERMINATIONS, ARE HELD NOT TO HAVE BEEN GUILTY OF SUCH VIOLATIONS, THUS NECESSITATING, UNDER PRESENT CONDITIONS, SUBMITTING ESTIMATES FOR APPROPRIATIONS BY CONGRESS OF THE AMOUNTS FOUND DUE, WHICH AMOUNTS CAN NOT OTHERWISE BE PAID BECAUSE OF HAVING BEEN COVERED WITH MISCELLANEOUS RECEIPTS.

IN THIS CONNECTION SEE THE BUDGET, 1925, PAGE 554, WHERE, UNDER "EXPENSES OF REGULATING IMMIGRATION," IT IS PROVIDED:

FOR ENFORCEMENT OF THE LAWS REGULATING IMMIGRATION OF ALIENS INTO THE UNITED STATES, INCLUDING * * * REFUNDING OF HEAD TAX, MAINTENANCE BILLS, AND IMMIGRATION FINES UPON PRESENTATION OF EVIDENCE SHOWING CONCLUSIVELY THAT COLLECTION WAS MADE THROUGH ERROR OF GOVERNMENT OFFICERS; * * *.

ANSWERING SPECIFICALLY THE QUESTION OF THE SUBMISSION, YOU ARE ADVISED THAT (1) A SPECIAL FUND ACCOUNT IS AUTHORIZED TO BE ESTABLISHED ON THE BOOKS OF THE TREASURY TO WHICH MAY BE CREDITED MONEYS RECEIVED ON ACCOUNT OF RETURN PASSAGE MONEY AFTER BEING HELD IN SPECIAL DEPOSIT ACCOUNTS FOR SIX MONTHS, AND (2) THAT THERE IS NOT AUTHORIZED TO BE ESTABLISHED ON THE BOOKS OF THE TREASURY A SPECIAL FUND ACCOUNT FOR USE IN REFUNDING IMMIGRATION FINES, AS CONTEMPLATED.