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CLAIMS AGAINST COMMON CARRIERS FOR THE VALUE OF UNUSED PASSENGER TICKETS OR PORTIONS THEREOF

[A-16366]

AUGUST 15, 1942.

To the Heads of Departments, Independent Establishments, Agencies, and Others Concerned:

It has come to the attention of this office that claims against carriers for the value of unused passenger tickets or portions thereof are being adjusted by the various administrative agencies with the carriers concerned without furnishing the General Accounting Office sufficient information to properly audit and settie the accounts involved.

Section 322 of the act of September 18, 1940, 54 Stat. 955, provides:

"Payment for transportation of the United States mail and of persons or property for or on behalf of the United States by any common carrier subject to the Interstate Commerce Act, as amended, or the Civil Aeronautics Act of 1938, shall be made upon presentation of bills therefor, prior to audit or settlement by the General Accounting Office, but the right is hereby reserved to the United States Government to deduct the amount of any overpayment to any such carrier from any amount subsequently found to be due such carrier."

In order that the General Accounting Office may properly audit and settle accounts involving deductions for, or collections received by reason of, unused tickets or portions thereof, the following procedure is prescribed:

1. Deductions of amounts representing value of unused tickets or portions thereof.— (a) Upon deduction of an amount representing the value of an unused ticket or portion thereof from the voucher on which the covering transportation request is billed, a full description of the unused ticket or portion thereof will be noted on the voucher.

(b) Upon deduction of an amount representing the value of an unused ticket or portion thereof from a voucher other than that on which the covering transportation request was billed, a full description of the unused ticket or portion thereof will be noted on the voucher where the deduction is made, together with a reference to the transportation request and disbursing officer's voucher covering payment for such ticket.

2. Billing for refunds of amounts representing value of unused tickets or portions thereof.-If deduction cannot be made administratively, as hereinabove outlined, the department or agency involved should bill the carrier for the amount due and should request that the remittance (drawn to the order of the Treasurer of the United States) be made direct to the indicated office of the billing agency, and upon receipt of such remittance same will be promptly listed on the schedule of collections then current.

3. Disposition of unused tickets.—(a) In cases where deductions are made in accordance with the provisions of paragraph 1 (a) and (b), the unused tickets or portions thereof will be forwarded by the administrative office making the deductions to the carrier, and copies of the letters of transmittal will be attached to the vouchers involved.

(b) In cases where bills are issued to the carrier for refunds of amounts representing the value of unused tickets or portions thereof, in accordance with the provisions of paragraph 2, the unused tickets or portions thereof will likewise be forwarded to the carrier along with the billings.

In the event the carrier declines to remit the value of such unused tickets or portions thereof, the administrative (billing) office should furnish to the Claims Division, General Accounting Office, a copy of such billings, containing references to transportation request numbers and disbursing officers' voucher numbers covering payment therefor, and copies of the correspondence with the carrier, for appropriate action. (Similar to procedure in paragraph 8, General Regulations No. 86-Revised, 16 Comp. Gen. 1130.)

The administrative agency concerned will be advised in due course of any adjustments effected in the audit and settlement of the accounts involved. Your cooperation in the matter will be appreciated.

LINDSAY C. WARREN,

Comptroller General of the United States.

INDEX DIGEST

ABSENCES:

See Leaves of Absence.

ABSTRACTS OF TITLE:

See Real Estate, titles.
ACCOUNTS:

Accounts current-collection and deposit
listing procedure-Gen. Reg. 87 (Amend-
ment), Dec. 29, 1942..

Loss, destruction, etc.:

Settlement of accounts of personnel of
lost vessel:

In settling, pursuant to sec. 287, R. S.,
account of deceased enlisted man who
died when vessel to which he was at-
tached was lost, together with dis-
bursing records, on a known date, it
will be assumed that for period from
last day of quarter for which records
are available to date through which
he was last paid he drew in cash same
percentage of pay accruing over such
period as he had drawn in last quarter
for which records are available; and
that he did not draw balance remain-
ing to his credit as of end of such
quarter, or any part of pay accruing
from date to which he was last paid
to date of his death. 26 C. D. 336,
amplified.....

When last quarterly return of paymaster
of vessel, which has been lost or de-
stroyed together with disbursing
records, does not afford this office a
basis for settling, in accordance with
first sentence of sec. 287, R. 8., ac-
count of a seaman or other person
aboard vessel at time of its loss or
destruction, last quarterly return of
paymaster actually carrying account
of such seaman or person may be used
as basis for settling his account.
Where account of deceased enlisted man
who was serving aboard naval vessel,
and died, at time of its loss or destruc-
tion, together with disbursing records,
on a known date is to be settled by
this office pursuant to sec. 287, R. 8.,
his account should be credited with
pay on basis that he was paid on 5th
or 20th of the month (usual pay days
aboard naval vessels), as case may be,
to include half month ending on pre-
ceding 30th or 15th of month, in ab-
sence of evidence (such as the state-
ments of survivors) to contrary.......

Page | ACCOUNTS—Continued.

1158

1004

1004

1004

Schedule of adjustments copies distribu-
tion-rescission of requirement for fur-
nishing copy to Treasury Dept.-Gen. Reg.
87 (Amendment), Dec. 29, 1942....
Schedule of collections-copies-distribu-
tion-rescission of requirement for fur-
nishing copy to Treasury Dept.-Gen. Reg.
87 (Amendment), Dec. 29, 1942.-
Schedule of retirement and disability fund
credits-copies-distribution-rescission
of requirement for furnishing copy to
Treasury Dept.-Gen. Reg. 87 (Amend-
ment), Dec. 29, 1942..
Schedule of transfers-special deposits—
copies-distribution-rescission of re-
quirement for furnishing copy to Treasury
Dept.-Gen. Reg. 87 (Amendment), Dec.
29, 1942.....

Page

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Schedule of voucher deductions-copies→→
distribution-rescission of requirement
for furnishing copy to Treasury Dept.—
Gen. Reg. 87 (Amendment), Dec. 29, 1942. 1158.
ADMINISTRATIVE OFFICE OF
U. S. COURTS:

Appropriations. See Appropriations, Ad-
ministrative Office of U. S. Courts.

ADVANCE PAYMENTS:

See Payments, advance.

ADVERTISING:

Bid matters other tean solicitation of bids.
See Bids.

Necessity or non-necessity:

Emergencies:

National emergencies as affecting adver-
tising requirements:

It is recognized that by virtue of broad
provisions of E. O. 9001, issued pur
suant to First War Powers Act, 1941,
authorizing Sec. of Navy to enter
into contracts without regard to
provisions of law relating to making,
performance, amendment, or modi-
fication of contracts, Navy Dept.
may disregard advertising require-
ments of sec. 3709, R. 8., in procure-
ment of services, materials and
supplies relating to prosecution of
War...

Where, due to present market condi
tions and resulting reluctance or
inability of vendors to commit them.
selves, it is impractiesble to obtain
written quota
written con-
orders, for

firmations an

862

ADVERTISING-Continued.
Necessity or non-necessity-Continued.
Emergencies-Continued.

National emergencies as affecting ad-
vertising requirements-Continued.
commodities, such as subsistence
supplies, this office will accept pur-
chase orders based upon oral quota-
tions as a sufficient compliance with
contract-filing requirements of sec.
3743, R. 8., provided the purchase
orders be accompanied by Standard
Form 1036 (Statement and Certificate
of Award), or a similar certificate,
setting forth conditions under which
purchase was made, but advertising
should be resorted to except when
not required under sec. 3709, R. S.,
and written quotations should be
obtained, where practicable...------
Personal services-procurement on a non-
personal basis-where it is administra-
tively determined to be to Govt.'s ad-
vantage to have all supplies and equip-
ment, as well as janitor's labor, furnished
by contract, there is no objection to
procuring the services on a nonpersonal
service basis, provided that, when appli-
cable, there is compliance with adver-
tising, etc., requirements of section 3709,
R. S.

Newspapers:

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606

Advance authority requirement-applica-
bility to listings in telephone directo-
ries-telephone directories do not come
within definition of newspapers and are
not covered by term "other publica-
tions" appearing in General Regulations
66 of this office, and, therefore, the
restrictions as to the authority required,
and rates to be paid, for advertising in
newspapers, as contained in sec. 3828,
R. S., and the act of June 20, 1878, respec-
tively, are not applicable, nor do the
advertising or voucher forms prescribed
by said regulations apply, to orders for
listings in classified sections or display
advertising in such directories.....
Rates applicability of legislation con-
cerning rates to listings in telephone
directories-telephone directories do not
come within definition of newspapers
and are not covered by term "other
publications" appearing in General Reg-
úlations 66 of this office, and, therefore,
the restrictions as to the authority re-
quired, and rates to be paid, for advertis-
ing in newspapers, as contained in sec.
3828, R. S., and the act of June 20, 1878,
respectively, are not applicable, nor do
the advertising or voucher forms pre-
scribed by said regulations apply, to
orders for listings in classified sections or
display advertising in such directories.. 606
Restrictions applicable to, in general—
aside from provisions of sec. 3828, R. S.,
and act of June 20, 1878, which are con-

Government:

Authority:

General rule as to contracting for trans-
portation at higher than tariff rates-
Govt. officers may not contract for
transportation services on basis of
higher charges than those available to
public under published and filed
tariffs for like services under like con-
ditions.....
Government liability for acts beyond
scope of:

Limitations on authority to impose
contract obligations upon U. S. are
as applicable to contracts by impli-
cation as they are to those expressly
made....

U. S. is neither bound nor estopped by
acts of officers or agents in entering
into, approving, or purporting to
authorize agreements prohibited by
law, even though Govt. may have
benefited thereby; and equitable
principles will not be applied to
frustrate purpose of such laws or to
thwart public policy.
Surrendering of vested rights rule-in
absence of statute specifically so pro-
viding, Govt. accounting and admin-
istrative officers have no authority to
give away or surrender a right vested
in or acquired by the Govt. under a
contract, and considerations of sym-
pathy for possible misfortune of a con-
tractor do not authorize any exception
to the rule. 15 C. G. 238, and 20 id.
782, distinguished.....

Status of cost-plus contractors—applica-
tion of revenues of plant hospital to
cost of contract work as clothing con-
tractor with Federal status-while in-
volved cost-plus-a-fixed-fee contract for
operations, etc., of ordnance plant and
hospital in connection therewith pro-
vides that "all revenues from operations
of the hospital ・・・ shall be accounted
for by the Contractor and applied in re-

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606

1087

22

784

784

260

AGENTS-Continued.
Government-Continued.

duction of the cost of the work," that
circumstance does not transform con-
tractor into instrumentality of U. S. or
overcome controlling fact that hospital
is operated by contractor and not by
Federal Govt..........

Status of head of department-in perform-
ing official acts, Sec. of Navy acts not as
a principal for himself but rather as
agent for the Govt...
Unauthorized contracts-subsequent rati-
fication-where a statute authorizes
contracts to be entered into "in the dis-
cretion" of a designated public official,
there is no authority for that official, who
is an agent of the Government, to dele-
gate the discretionary power vested in
him to a sub-agent, so that the purported
approval and ratification by that official
of a contract entered into by a subagent
is ineffective to give validity to the con-
tract and to represent a proper exercise
of the discretion vested in the public
official.....

In general:

Ratification of acts:

Page ALLOWANCES:

1000

1083

1083

1083

Limitations on ratifying authority:
An agent who has no power to appoint
subagents cannot ratify acts of sub-
agents so as to bind his principal;
that is, one who lacks authority to
delegate performance of acts which
he himself has power to perform
cannot ratify such acts when done
by another who has no such author-
ity......
General rule is that ratification of
particular act or contract may be
made by anyone in whose behalf
such act or contract has been done
or made only if he could have given
authority to do the act or enter
into the contract in the first in-
stance, and, if he still has power to
do so at time of ratification.............
Manner of operation-A ratification is,
in its effect upon the act of an agent,
equivalent to possession by him of
previous authority, and operates
upon the act ratified in the same man-
ner as though the authority of the
agent to do the act existed originally.. 1083
Of private parties-Fees for procuring Gov-
ernment business. See Fees, brokerage,
procurement of Government business.

AGRICULTURE DEPARTMENT:
Food stamps. See Stamps, food.

ALASKA:

Compensation differential. See Compensa-
tion, differential.

ALLOTMENTS:

Pay. See Pay, allotments.

1083

See, also, specific index headings, such as:
Quarters, rental allowance; Gratuities, en-
listment allowance; Etc.

Admiral's personal money allowance:
Recall to active duty-when officers on
Navy retired list with rank of admiral or
vice admiral-by reason of temporary
service on active list in those grades-and
with retired pay and allowances of rear
admiral (upper half) are on active duty,
the "full pay and allowances" to which
they are entitled under sec. 15, Pay Re-
adjustment Act of 1942, does not include
personal money allowance authorized by
sec. 7 of said act for officers serving in
grade of vice admiral or admiral, unless
they are serving in one of the positions for
which rank of vice admiral or admiral is
authorized for an officer on active list.
(Modified by 22 Comp. Gen. 1071)......
Scope of entitlement-section 7, Pay Re-
adjustment Act of 1942, authorizing pay-
jen of a "personal money allowance" to
Navy officers while serving as vice
admiral or admiral, was not intended to
be restricted to officers serving with such
rank in the particular situations specified
in acts of Aug. 29, 1916, May 22, 1917, and
July 17, 1941, but, rather, was intended
to apply generally to all officers serving
in such ranks from and after June 1, 1942,
effective date of said Pay Readjustment
Act, including, by virtue of section 15 of
that act, retired officers serving on active
duty in such ranks. 22 C. G. 284, modi-
fied....
In general:
Assimilation:

Discussion of practice of fixing by assim.
ilation pay, allowances, etc., of mem-
bers of various branches of armed
forces and of civilian employees as-
sociated therewith..

Rule as to Women's Army Auxiliary

Corps members-since, under sec. 12,
act of May 14, 1942, members of
Women's Army Auxiliary Corps are
not in the Army but are civilians
serving with Army, and as they are
available for noncombatant duties
only, they are precluded from being
paid increased rates provided for Army
personnel for services of a strictly
combatant or military nature...
Words "at the rates" as being words of
assimilation-while words "at the
rates" used in act of Oct. 26, 1942, to
assimilate pay and allowances of mem-
bers of Women's Army Auxiliary
Corps to those of Army personnel
without dependent a deer from words
"the same pay
usually used to.
such di

teria'

allowances"
pengedatutes,

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