A-64243, AUGUST 9, 1935, 15 COMP. GEN. 116

A-64243, AUGUST 9, 1935, 15 COMP. GEN. 116

AGRICULTURAL ADJUSTMENT ADMINISTRATION - ECONOMIC STUDIES THE AGRICULTURAL ADJUSTMENT ACT, THE JONES-CONNALLY CATTLE ACT, AND THE APPROPRIATION FOR CARRYING OUT THE PROVISIONS OF THE RESPECTIVE ACTS HAVE FOR THEIR PURPOSE THE REMOVAL OF SURPLUS PRODUCTS FROM THE MARKET AND THEIR DISTRIBUTION. A STUDY OF THE ECONOMICAL EFFECTS OF THE ACTION TAKEN PURSUANT TO SUCH ACTS GOES BEYOND THE SCOPE OF THE APPROPRIATION SO MADE, AND ACCORDINGLY THE APPROPRIATION IS NOT AVAILABLE THEREFOR. (MODIFIED BY 15 COMP. GEN. 264.)

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF AGRICULTURE, AUGUST 9, 1935:

THERE HAS BEEN RECEIVED YOUR LETTER OF JULY 29, 1935, AS FOLLOWS:

SECTION 2 OF THE JONES-CONNALLY CATTLE ACT, PUBLIC, NO. 142, 73D CONGRESS, APPROVED APRIL 7, 1934 (48 STAT. 528), AMENDED SUBSECTION (A) OF SECTION 12 OF THE AGRICULTURAL ADJUSTMENT ACT, PUBLIC, NUMBER 10, 73D CONGRESS, APPROVED MAY 12, 1933, AND AUTHORIZED THE APPROPRIATION OF $200,000,000.00 AS FOLLOWS:

"2. TO ENABLE THE SECRETARY OF AGRICULTURE TO FINANCE UNDER SUCH TERMS AND CONDITIONS AS HE MAY PRESCRIBE, SURPLUS REDUCTIONS AND PRODUCTION ADJUSTMENTS WITH RESPECT TO THE DAIRY- AND BEEF-CATTLE INDUSTRIES, AND TO CARRY OUT ANY OF THE PURPOSES DESCRIBED IN SUBSECTIONS (A) AND (B) OF THIS SECTION (12), AND TO SUPPORT AND BALANCE THE MARKETS FOR THE DAIRY- AND BEEF-CATTLE INDUSTRIES THERE IS AUTHORIZED TO BE APPROPRIATED THE SUM OF $200,000,000: PROVIDED, THAT NOT MORE THAN 60 PERCENTUM OF SUCH AMOUNT SHALL BE USED FOR EITHER OF SUCH INDUSTRIES.'

THE SECTIONS OF THE ORIGINAL ACT REFERRED TO IN THE FOREGOING QUOTATION SET OUT THE ORIGINAL APPROPRIATIONS, AND THE PURPOSES FOR WHICH THEY WERE MADE. EXCERPTS FROM SECTION 12 (A) AND 12 (B) ARE:

"SEC. 12 (A). THERE IS HEREBY APPROPRIATED, OUT OF ANY MONEY IN THE TREASURY NOT OTHERWISE APPROPRIATED, THE SUM OF $100,000,000 TO BE AVAILABLE TO THE SECRETARY OF AGRICULTURE FOR ADMINISTRATIVE EXPENSES UNDER THIS TITLE AND FOR RENTAL AND BENEFIT PAYMENTS MADE WITH RESPECT TO REDUCTION IN ACREAGE OR REDUCTION IN PRODUCTION FOR MARKET UNDER PART 2 OF THIS TITLE. SUCH SUM SHALL REMAIN AVAILABLE UNTIL EXPENDED.

"SEC. 12 (B). IN ADDITION TO THE FOREGOING, THE PROCEEDS DERIVED FROM ALL TAXES IMPOSED UNDER THIS TITLE ARE HEREBY APPROPRIATED TO BE AVAILABLE TO THE SECRETARY OF AGRICULTURE FOR EXPANSION OF MARKETS AND REMOVAL OF SURPLUS AGRICULTURAL PRODUCTS AND THE FOLLOWING PURPOSES UNDER PART 2 OF THIS TITLE: ADMINISTRATIVE EXPENSES, RENTAL AND BENEFIT PAYMENTS, AND REFUNDS ON TAXES * * *.'

SECTION 6 OF THE JONES-CONNALLY ACT AUTHORIZED THE APPROPRIATION OF AN ADDITIONAL $50,000,000 AS FOLLOWS:

"SEC. 6. THERE IS AUTHORIZED TO BE APPROPRIATED THE SUM OF $50,000,000 TO ENABLE THE SECRETARY OF AGRICULTURE TO MAKE ADVANCES TO THE FEDERAL SURPLUS RELIEF CORPORATION FOR THE PURCHASE OF DAIRY AND BEEF PRODUCTS FOR DISTRIBUTION FOR RELIEF PURPOSES, AND TO ENABLE THE SECRETARY OF AGRICULTURE, UNDER RULES AND REGULATIONS TO BE PROMULGATED BY HIM AND UPON SUCH TERMS AS HE MAY PRESCRIBE, TO ELIMINATE DISEASED DAIRY AND BEEF CATTLE, INCLUDING CATTLE SUFFERING FROM TUBERCULOSIS OR BANGS' DISEASE, AND TO MAKE PAYMENTS TO OWNERS WITH RESPECT THERETO.'

BY THE TERMS OF PUBLIC RESOLUTION NO. 27, 73D CONGRESS, APPROVED MAY 25, 1934 (48 STAT. 805), CONGRESS, PURSUANT TO THE AUTHORITY IN THE ABOVE- QUOTED SECTIONS, APPROPRIATED $100,000,000 TO CARRY OUT THE PURPOSES OF SECTIONS 2 AND 6, AND AN ADDITIONAL $50,000,000 TO CARRY OUT THE PROVISIONS OF SECTION 6.

IT IS CONTEMPLATED THAT OF THE MONEY SO APPROPRIATED, $25,000 WILL BE MADE AVAILABLE TO THE BUREAU OF HOME ECONOMICS OF THE DEPARTMENT OF AGRICULTURE TO BE USED IN A STUDY OF THE DISTRIBUTION OF DAIRY PRODUCTS PURCHASED BY THE ADMINISTRATION AND DELIVERED TO THE FEDERAL SURPLUS RELIEF CORPORATION, FOR DISTRIBUTION THROUGH THE CORPORATION'S RELIEF AGENCIES. THIS STUDY WOULD ASSIST IN DETERMINING---

1. THE CHANGES IN FOOD PURCHASES AND FOOD CONSUMPTION RESULTING FROM THE DISTRIBUTION OF DAIRY PRODUCTS.

2. THE CONDITION IN WHICH THESE PRODUCTS REACH THE HOME, AND CONSUMER ACCEPTANCE OF THE SAME.

3. THE HOME USES FOR WHICH DRIED SKIM MILK IS MOST SATISFACTORY.

4. IN CERTAIN SELECTED AREAS, THE INFLUENCE ON GENERAL NUTRITION OF A MORE EXTENDED USE OF MILK PRODUCTS.

5. THE COST OF PACKAGING AND DISTRIBUTING THESE PRODUCTS.

IT IS ESTIMATED THAT, IF MADE AVAILABLE, THIS $25,000 WOULD BE EXPENDED IN THE FOLLOWING ANNER:

TABLE

1 PERSON IN CHARGE -------------------------- $3,800

2 ASSISTANTS AT $3,200 ---------------------- 6,400

1 EDITOR ------------------------------------ 2,600

2 CLERKS ------------------------------------ 2,880

TRAVEL -------------------------------------- 2,500

PRINTING ------------------------------------ 2,500

FOR FIELD WORKERS FOR SHORT PERIODS --------- 4,320

TOTAL ------------------------------- 25,000

YOUR OPINION IS REQUESTED AS TO WHETHER OR NOT SUCH EXPENDITURE WOULD BE PROPER IN THE LIGHT OF THE PROVISION OF THE ACTS AUTHORIZING THE APPROPRIATION.

THE QUOTED PROVISIONS OF THE JONES-CONNALLY CATTLE ACT, THE AGRICULTURAL ADJUSTMENT ACT, AND THE APPROPRIATION TO CARRY OUT THE RESPECTIVE PROVISIONS OF SAID ACTS HAVE FOR THEIR PURPOSE THE REMOVAL OF SURPLUS PRODUCTS FROM THE MARKET AND THEIR DISTRIBUTION.

THE PROPOSED ALLOTMENT TO THE BUREAU OF HOME ECONOMICS PROPOSES TO SUPPLEMENT BY OTHER WORK THAT UNDER THE JONES-CONNALLY CATTLE ACT AND THE AGRICULTURAL ADJUSTMENT ACT AND TO DETERMINE THE EFFECT OF THE ACTION UNDER THE TWO ACTS MENTIONED. WHILE SUCH AN INVESTIGATION MAY HAVE A BENEFICIAL RELATION TO HOME ECONOMICS IT GOES BEYOND THE SCOPE OF THE STATUTES IN QUESTION. IT MUST BE HELD, THEREFORE, THAT THE DESIRED INVESTIGATION MAY NOT BE PAID FOR FROM THE FUNDS APPROPRIATED TO CARRY OUT THE JONES-CONNALLY CATTLE ACT AND THE AGRICULTURAL ADJUSTMENT ACT.