AUGUST 25, 1921, 1 COMP. GEN. 92

AUGUST 25, 1921, 1 COMP. GEN. 92

PURCHASE OF NEWSPAPERS AS SECTION 192, REVISED STATUTES, SHOWS AN INTENTION OF CONGRESS TO RESTRICT AND CONFINE EXPENDITURES IN THE EXECUTIVE DEPARTMENTS ON ACCOUNT OF NEWSPAPERS, AUTHORITY TO MAKE SUCH PURCHASES SHOULD APPEAR IN EXPRESS TERMS IN THE APPROPRIATION. IN THE ABSENCE OF EXPRESS AUTHORITY, THE APPROPRIATION "COLLECTING THE WAR REVENUE, 1922," IS NOT AVAILABLE FOR PAYMENT BY COLLECTORS OF INTERNAL REVENUE OF SUBSCRIPTIONS TO NEWSPAPERS PURCHASED FOR THE PURPOSE OF GATHERING THEREFROM ITEMS REPORTING VIOLATIONS OF THE INTERNAL-REVENUE LAWS AND OTHER MATTERS OF INTEREST TO THE INTERNAL REVENUE SERVICE.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF THE TREASURY, AUGUST 25, 1921:

I HAVE YOUR LETTER OF THE 12TH INSTANT TRANSMITTING A LETTER DATED AUGUST 9, 1921, FROM THE COMMISSIONER OF INTERNAL REVENUE TO YOU AS FOLLOWS:

I HAVE THE HONOR TO REQUEST THAT AN OPINION BE OBTAINED FROM THE COMPTROLLER GENERAL OF THE UNITED STATES AS TO WHETHER OR NOT THE APPROPRIATION "COLLECTING THE WAR REVENUE, 1922," IS AVAILABLE FOR PAYMENT BY COLLECTORS OF INTERNAL REVENUE OF SUBSCRIPTIONS TO NEWSPAPERS PURCHASED FOR THE PURPOSE OF GATHERING THEREFROM ITEMS REPORTING VIOLATIONS OF THE INTERNAL-REVENUE LAWS AND OTHER MATTERS OF INTEREST TO THE INTERNAL REVENUE SERVICE. IT IS BELIEVED THAT MUCH GOOD CAN BE ACCOMPLISHED IF AUTHORIZATION IS GIVEN TO SEVERAL COLLECTORS OF INTERNAL REVENUE FOR EACH OF THEM TO SUBSCRIBE TO TWO OR THREE NEWSPAPERS, AND AFTER SECURING ANY VALUABLE INFORMATION THEREFROM FOR THEIR USE, TO FORWARD THE CLIPPINGS TO THIS OFFICE FOR THE BENEFIT OF THE BUREAU.

SECTION 192 OF THE REVISED STATUTES CONTAINS THE FOLLOWING PROVISION:

"THE AMOUNT EXPENDED IN ANY ONE YEAR FOR NEWSPAPERS FOR ANY DEPARTMENT, EXCEPT THE DEPARTMENT OF STATE, INCLUDING ALL THE BUREAUS AND OFFICES CONNECTED THEREWITH, SHALL NOT EXCEED $100.00.'

THE APPROPRIATION ENTITLED "COLLECTING THE WAR REVENUE, 1922," PROVIDES FOR EXPENSES OF ASSESSING AND COLLECTING THE INTERNAL-REVENUE TAXES, INCLUDING THE PURCHASE OF SUCH SUPPLIES, EQUIPMENT, FURNITURE, MECHANICAL DEVICES, PRINTING, STATIONERY, LAW BOOKS, AND BOOKS OF REFERENCE, AND SUCH OTHER ARTICLES AS MAY BE NECESSARY FOR USE IN THE DISTRICT OF COLUMBIA AND THE SEVERAL COLLECTION DISTRICTS; AND FURTHER PROVIDES THAT NOT MORE THAN $500,000 OF THE TOTAL AMOUNT APPROPRIATED ($29,600,000) MAY BE EXPENDED BY THE COMMISSIONER OF INTERNAL REVENUE FOR DETECTING AND BRINGING TO TRIAL PERSONS GUILTY OF VIOLATING THE INTERNAL-REVENUE LAWS OR CONNIVING AT THE SAME, INCLUDING PAYMENTS FOR INFORMATION AND DETECTION OF SUCH VIOLATIONS.

PARTICULAR REFERENCE IS MADE TO THE RULING OF THE COMPTROLLER OF THE TREASURY, VOLUME 10, PAGE 706, IN CONNECTION WITH THE COST OF NEWSPAPERS PURCHASED BY INTERNAL-REVENUE AGENTS FOR THE PURPOSE OF ASCERTAINING THE MARKET PRICE OF STOCKS AND BONDS IN FIXING THE VALUE OF LEGACIES. IT WAS HELD IN THIS OPINION THAT SUCH EXPENDITURE DID NOT COME WITHIN THE PROVISION OF SECTION 192 OF THE REVISED STATUTES, AND THAT THE EXPENSE WAS INCIDENT TO THE AGENT'S DUTY AND WAS THEREFORE AUTHORIZED.

THE ACT OF MARCH 3, 1921, 41 STAT., 1274, UNDER THE HEADING "INTERNAL REVENUE" MAKES TWO APPROPRIATIONS, ONE FOR SALARY AND EXPENSES COLLECTORS, DEPUTY COLLECTORS, ETC., AND THE OTHER FOR EXPENSES ASSESSING AND COLLECTING THE INTERNAL-REVENUE TAXES, AND AS IT APPEARS THAT THIS CONTEMPLATED EXPENDITURE IS APPARENTLY FOR THE USES OF THE COLLECTORS IT MUST, IF PAYABLE AT ALL, BE PAID OUT OF THE FIRST NAMED. THE CONGRESS HAS CLEARLY EVINCED AN INTENTION TO RESTRICT AND CONFINE EXPENDITURES IN THE EXECUTIVE DEPARTMENTS ON ACCOUNT OF NEWSPAPERS, SECTION 192, REVISED STATUTES. THE PROPOSED PURCHASE FOR THE COLLECTORS AND THE SENDING OF CLIPPINGS THEREFROM TO THE COMMISSIONER OF INTERNAL REVENUE AT WASHINGTON INDIRECTLY PROCURES THE PAPERS FOR THAT BUREAU. THE BENEFIT THAT COLLECTORS WOULD DERIVE THROUGH THE USE OF NEWSPAPERS IN REGARD TO VIOLATIONS OF THE INTERNAL REVENUE LAWS AND DETECTING AND BRINGING TO TRIAL OFFENDERS IS NOT DETERMINATIVE OF THE EXPENDITURE. THE PURCHASE OF NEWSPAPERS AT PUBLIC EXPENSE IS ONE SO READILY OPEN TO ABUSE THAT I FEEL JUSTIFIED IN REQUIRING THAT THE AUTHORITY TO MAKE SUCH PURCHASES SHOULD EXPRESSLY APPEAR IN THE APPROPRIATION.