In explanation of these charges the officer submitted a certificate to the effect that the expenditures were made in accordance with the definite requirements of the Italian State Railway and that the amounts were fixed by its official rate schedule.

The Economy Act of June 30, 1932, 47 Stat. 405, under the subtitle "Permanent Reduction of Travel Allowance ", provides:

SEC. 207. Section 3 of the Subsistence Expense Act of 1926, approved June 3, 1926 (44 Stat. 688, 689), is hereby amended to read as follows:

SEC. 3. Civilian officers and employees of the departments and establishments, while traveling on official business and away from their designated posts of duty, shall be allowed, in lieu of their actual expenses for subsistence and all fees or tips to porters and stewards, a per diem allowance to be prescribed by the head of the department or establishment concerned, not to exceed the rate of $5 within the limits of continental United States, and not to exceed an average of $6 beyond the limits of continental United States.

The record shows that these Foreign Service officers were allowed a per diem of $6 each in lieu of subsistence, which under the plain provisions of the act of June 30, 1932, supra, precludes in addition the allowance of fees or tips to porters.

As to allowing the same as part of the transportation expenses there has been noted the statement that "such charges represent a fixed tariff for the handling of baggage." Even if the matter be considered on that basis it is not apparent why allowance of the charges should be made. It is admitted that they are charges separate and distinct from the cost of railway or steamship tickets, the services of station or pier porters for carrying baggage not being recognized as a part of the service to which the purchase of a railroad or steamship ticket entitles the passenger. (4 Comp. Gen. 410.) The tips or fees which it is contended represent a fixed tariff must be considered in any event on the basis of personal expenses of the traveler to be taken care of under the per diem allowance to which he is entitled, rather than as part of or incident to transportation expenses.

Under such circumstances it must be held that there is no basis for allowing credit for these items. Accordingly, Herbert O. Williams being indebted to the United States in the sum of $2.52, and Coert du Bois, in the sum of $1.24, it is requested these respective sums be required to be deposited without further delay.

(A-56368)

COMPENSATION-FORTY-HOUR WEEK-ALASKA RAILROAD

The employees of the Alaska Railroad are not within the terms of section 23 of the act of March 28, 1934 (48 Stat. 522), establishing a 40-hour week.

Comptroller General McCarl to the Secretary of the Interior, July 13, 1934: There was received June 28, 1934, your letter, without date, as follows:

Certain questions which have arisen under section 23 of the "Independent Offices Appropriation Act, 1935," in the administration of the Alaska Railroad, are presented for your consideration and decision.

It is respectfully requested that I be advised whether employees of the railroad in the following-named classes are subject to the provisions of the said section 23:

1. Trainmen (locomotive engineers and firemen, conductors, brakemen, and baggagemen). These employees are paid monthly on basis of hours credited (or miles, whichever gives the greater amount). The pay schedule and working rules governing these employees were adopted some years ago by the general manager of the railroad after extended conferences with representatives of the men and comparison with rates paid for like services in the States.

2. Maintenance-of way employees (carpenters, section laborers, and others, at hourly rates, engaged in repair and upkeep of buildings, tracks, bridges, and roadway). The rates paid these men have been adjusted from time to time by the general manager of the railroad, with the approval of the Secretary of the Interior, to conform to local wage conditions.

3. Mechanical and shop forces. These employees (machinists, boilermakers, etc.) receive monthly wages at rates fixed by the general manager of the railroad, and approved by the Secretary of the Interior, to conform to rates for similar work in the States, adjusted to local wage conditions.

4. Cooks and waiters paid at monthly rates in employ of the operation of the railroad's hotel at Curry, its base hospital at Anchorage, on river boats, and in sundry mess halls operated by the railroad at points on its line for the accommodation of its operating and maintenance forces. These employees are paid at rates established by the management, with the approval of the Secretary of the Interior, which conform to the requirements of wage conditions in the places where the employees are located.

If further particulars are required by your office in the consideration of the questions presented, the information desired will be furnished gladly by this Department upon request.

Section 23 of the act of March 28, 1934, 48 Stat. 522, provides as follows:

The weekly compensation, minus any general percentage reduction which may be prescribed by act of Congress, for the several trades and occupations, which is set by wage boards or other wage-fixing authorities, shall be reestablished and maintained at rates not lower than necessary to restore the full weekly earnings of such employees in accordance with the full-time weekly earnings under the respective wage schedules in effect on June 1, 1932: Provided, That the regular hours of labor shall not be more than forty per week; and all overtime shall be compensated for at the rate of not less than time and one-half.

In decision of April 6, 1934, 13 Comp. Gen. 265, 268, it was held as follows:

Evidently the words "trades and occupations' appearing in section 23 of the act of March 28, 1934, supra, were intended to embrace not only all positions or employments in the recognized trades and crafts and occupations of a similar character but also supervisory and administrative positions and employments the duties of which are entirely connected with, and dependent upon, the duties performed by the personnel in the trades, crafts, and similar occupations, the compensation of which is subject to adjustment by wage boards or other wage-fixing authorities. See generally section 5 of the original Classification Act of March 4, 1923, 43 Stat. 1489, and 4 Comp. Gen. 900; id. 959.

Railroad employees are regarded generally as a distinct class of personnel and their occupations as not being within "trades and occupations" of mechanics and laborers as employed in section 23 of the act of March 28, 1934, supra. It is not believed, therefore, that the Congress intended to require that the 40-hour week statutory provision be applied to employees of the Alaska Railroad even

though their rates of wages may be fixed administratively pursuant to a procedure somewhat similar to that followed by wage boards. The authority to fix hours of labor and rates of compensation of employees of the Alaska Railroad is vested in the President by the act of March 12, 1914, 38 Stat. 305, and while a 40-hour week for said employees might be established by order of the President, and rates of wages adjusted accordingly, within the limits of available appropriations and subject to the restrictions on administrative promotions (see decision of June 19, 1934, A-56038, 13 Comp. Gen. 451), section 23 of the act of March 28, 1934, supra, is not applicable to require such action.

The question presented is answered in the negative.

(A-56133)

CONTRACTS—PROCESSING TAX

The United States is not required to pay processing tax on the products purchased by it and, where no mention is made of any tax in the specifications or the bid submitted by a contractor for furnishing supplies to the United States, there is no legal liability on the United States for payment to the contractor of an amount equal to processing taxes imposed prior to the opening of the bids, the Government being liable only for the contract price. Decision by Comptroller General McCarl July 16, 1934:

The Rath Packing Co. has requested review of settlement no. 0285876(5), dated May 24, 1934, wherein was disallowed its claim for $6.61 as processing tax on hams and bacon furnished the Veterans' Administration Facility, Excelsior Springs, Mo., under contract VA99h-242, dated October 24, 1933.

It appears that under date of October 14, 1933, the business manager, Veterans' Administration Facility, Excelsior Springs, Mo., advertised for bids to be opened October 23, 1933, for the furnishing of a quantity of packing-house and dairy products, among which were items A-8 and A-9, calling for a quantity of hams and bacon. The claimant delivered the hams and bacon called for in accordance with its contract and paid the United States the sum of $6.61, representing processing tax on pork products, pursuant to the President's proclamation of October 18, 1933, and by reason thereof claimant requests reimbursement.

The claim was disallowed in the settlement, supra, for the reason that claimant's bid was opened on October 23, 1933, while the regulations applying processing tax on hog products were approved by the Secretary of Agriculture and the President of the United States on October 18, 1933, to become effective November 6, 1933. Claimant, in requesting review of the settlement and allowance of its claim,

urges that the tax was not included in its bid; that its bill was mailed from Waterloo, Iowa, on October 20 and—

we certainly did not have the conversion factors on various pork cuts when this bid was mailed out. In fact, we did not have the conversion factors until several days later, even though the Secretary issued his order October 18. Even if we had had the conversion factors, we could not have legally added them into our prices, in view of the fact that the tax did not take effect on shipments until November 6.

The established rule is that the rights and liabilities under a contract are limited by its terms, which are to be interpreted according to the established rules of construction. Where a contract contains an express stipulation as to the amount to be paid, such stipulation is conclusive on the parties and measures the amount of recovery for performance. Simpson v. United States, 172 U.S. 379; International Contracting Company v. Lamont, 155 U.S. 310. The contract price may not be increased by reason of a processing tax unless provided for in the contract.

The United States is not required to pay processing taxes on the products purchased by it. Where no mention is made of any taxes in the specifications or the bid submitted by a contractor for furnishing supplies to the United States, there is no legal liability on the United States for payment to the contractor of an amount equal to processing taxes, the Government being liable only for the contract price. The advertised specifications in this case specifically provided:

Prices bid herein include any Federal tax heretofore imposed by the Congress which is applicable to the material on this bid. If any sales tax, processing tax, adjustment charge, or other taxes or charges are imposed or changed by the Congress after the date set for the opening of this bid and made applicable directly upon the production, manufacture, or sale of the supplies covered by this bid, and are paid by the contractor on the articles or supplies herein contracted for, then the prices named in this bid will be increased or decreased accordingly, and any amount due the contractor as a result of such change will be charged to the Government and entered on vouchers (or invoices) as separate items.

It was for the claimant to compute its bid prices for the delivery of the hams and bacon required under the advertised specifications and to take into consideration all elements of cost which it believed the situation required. A processing tax on hog products, imposed in the regulations approved by the Secretary of Agriculture and the President of the United States on October 18, 1933, had been made applicable on October 23, 1933, when the bids in question were opened, and claimant must be charged with the knowledge that when its bid was submitted a processing tax would be collected on pork products on and after November 6, 1933, the effective date of the tax. There is no legal basis for the allowance of the claim, and the disallowance thereof must be and is affirmed.

(A-56266)

TAXES-LICENSE FEES-REFUNDS

A license fee determined and paid according to law for the privilege of exercising certain callings, professions, or vocations in the District of Columbia may be recovered only upon failure of the privilege due to facts and circumstances beyond the control of the licensee and without his consent. No refund is authorized where the licensee abandons his right to operate or voluntarily fails to exercise the full privilege granted, or, in the absence of a statute, voluntarily surrenders his license, or where the license is legally and properly revoked or withdrawn.

Comptroller General McCarl to the President of the Board of Commissioners of the District of Columbia, July 16, 1934:

By your letter of June 19, 1934, advice is requested as to the legality of refunding license fees or taxes to persons licensed under section 31 (b) of the act of July 1, 1932 (47 Stat. 555), who, during the period for which licenses were issued, operated less miles than was contemplated at the time schedule and estimated total number of miles to be operated were approved by the Public Utilities Commission, the said operators remaining in service at end of license year.

The act of July 1, 1932, cited, makes it unlawful for any person to engage in or carry on any business, trade, profession, or calling in the District of Columbia for which a license fee or tax is imposed without first obtaining a license so to do. It prescribes the procedure for obtaining, designates the authority for granting, and provides for assignment of licenses, and prohibits the issuing of any license until after the fee therefor has been paid. After making general provisions for the granting and use of such licenses, fees are prescribed for carrying on the different vocations. As a rule the fees are fixed at a flat rate per annum, but the amount of the tax in some instances is to be determined by the extent and duration of operations. Provision is made for proportioning the fee when a license is issued after the beginning of the license year, limited to a minimum fee of $5, but no provision is made for refunding the fee, or any part thereof, in case a licensee fails to exercise the right or privilege granted by the license to its fullest extent.

A license is merely a permit or privilege to carry on some business subject to regulation. It is a right granted by authority to do an act which without such grant of authority would be unlawful. A license to carry on a business or trade is an official permit to carry on the same or to perform other acts forbidden by law except to persons obtaining such permits. A license tax is a charge imposed upon the privilege of exercising certain callings, professions, or vocations.

In any case where payment of a fee is required in advance for the privilege of carrying on a certain business otherwise prohibited by law, the licensee buys the right or privilege. When the license is