B-8434, JUNE 29, 1944, 23 COMP. GEN. 986

B-8434, JUNE 29, 1944, 23 COMP. GEN. 986

PUERTO RICO RECONSTRUCTION ADMINISTRATION REVOLVING FUND A REVOLVING FUND MAY BE NOT ONLY A FUND SUSTAINED BY REPAYMENTS OF FUNDS ADVANCED THEREFROM AND ANY INCREMENT ACCRUING FROM EXPENDITURES FROM THE FUND BUT, ALSO, IT MAY BE A FUND WHICH WHEN REDUCED IS REPLENISHED BY NEW FUNDS FROM SPECIFIED SOURCES. THE PUERTO RICO RECONSTRUCTION ADMINISTRATION REVOLVING FUND CREATED BY THE ACT OF FEBRUARY 11, 1936, MAY BE REPLENISHED ONLY FROM THE SOURCES SPECIFIED IN THE ACT, NAMELY, THE "SPECIAL FUND" ALSO CREATED BY THE ACT AND THE PROCEEDS OF THE DISPOSITION OF PROPERTY ACQUIRED THEREWITH, AND, THEREFORE, INCOME DERIVED FROM OPERATIONS FINANCED OUT OF THE REVOLVING FUND, OR PROCEEDS OF THE DISPOSITION OF PROPERTY ACQUIRED THEREWITH, MAY NOT BE CREDITED TO THE FUND BUT MUST BE COVERED INTO THE GENERAL FUND OF THE TREASURY. 20 COMP. GEN. 280, RECONSIDERED AND AFFIRMED.

COMPTROLLER GENERAL WARREN TO THE SECRETARY OF THE INTERIOR, JUNE 29, 1944:

THERE HAS BEEN CONSIDERED A LETTER DATED MAY 27, 1944, FROM THE ADMINISTRATOR, PUERTO RICO RECONSTRUCTION ADMINISTRATION, AS FOLLOWS:

SINCE THE FISCAL YEAR 1942 OPERATIONS OF THE PUERTO RICO RECONSTRUCTION ADMINISTRATION HAVE BEEN FINANCED ONLY OUT OF THE PUERTO RICO REVOLVING FUND CREATED BY THE ACT OF FEBRUARY 11, 1936 (49 STAT. 1135), BY ALLOTMENTS FROM THAT FUND FOR PROJECTS APPROVED BY THE PRESIDENT. EXPENDITURES SO AUTHORIZED FOR THE CURRENT AND PRECEDING FISCAL YEARS HAVE INCLUDED THE MAKING AND SERVICING OF LOANS TO COOPERATIVES, THE CONSTRUCTION OF RURAL HOUSES AND THE OPERATION OF OTHER PROJECTS WHICH HAVE PRODUCED AND ARE PRODUCING INCOME.

YOUR LETTER NO. B-8434 OF NOVEMBER 23, 1940, (20 COMP. GEN. 280) TO THE SECRETARY OF THE INTERIOR HELD IN SUBSTANCE THAT THE PUERTO RICO REVOLVING FUND MAY NOT BE REIMBURSED FOR EXPENDITURES MADE THEREFROM FOR REPAIR AND MAINTENANCE OF HOUSES WHOSE ENTIRE RENTALS ARE COVERED INTO THE TREASURY AS MISCELLANEOUS RECEIPTS, SUCH HOUSES HAVING BEEN CONSTRUCTED WITH FUNDS ALLOTTED FROM APPROPRIATIONS OTHER THAN THE EMERGENCY RELIEF APPROPRIATION ACT OF 1935. IN THAT DECISION IT IS STATED THAT "THE ACT OF FEBRUARY 11, 1936, SUPRA, CONTAINS NO AUTHORITY FOR DEPOSITING INCOME IN THE REVOLVING FUND WHICH IS DERIVED FROM EXPENDITURES OUT OF SAID FUND.'

IT IS RESPECTFULLY REQUESTED THAT THE ITALICIZED STATEMENT BE RECONSIDERED, NOT WITH RESPECT TO THE PARTICULAR QUESTION OF REIMBURSEMENT DECIDED, BUT AS A RULE OF GENERAL APPLICATION TO THE PROPER DEPOSIT OF INCOME AND THE PROCEEDS OF THE DISPOSITION OF PROPERTY DERIVED FROM OPERATIONS FINANCED OUT OF THE REVOLVING FUND.

THE ACT, IT IS TRUE, CREATES THE REVOLVING FUND FROM TWO SOURCES: (1) "ALL INCOME DERIVED FROM OPERATIONS FINANCED OUT OF" THE SPECIAL FUND AND (2) "THE PROCEEDS OF THE DISPOSITION OF THE PROPERTY ACQUIRED THEREWITH.' BUT IF THE LANGUAGE EMPLOYED IS CONSTRUED AS LIMITING DEPOSIT TO THE REVOLVING FUND TO THESE TWO SOURCES, AND AS EXCLUDING INCOME AND THE PROCEEDS OF THE DISPOSITION OF PROPERTY DERIVED FROM OPERATIONS FINANCED OUT OF THE REVOLVING FUND ITSELF, IT WOULD SEEM THAT THE WORD "REVOLVING" EMPLOYED IN THE ACT IS DEPRIVED OF ANY AND ALL MEANING WHATSOEVER.

THE WORD "REVOLVING" IT IS SUBMITTED, SHOULD NOT BE TREATED AS SURPLUSAGE IN THE LIGHT OF THE GENERALLY ACCEPTED PRINCIPLE THAT STATUTES SHOULD BE SO CONSTRUED AS TO ATTRIBUTE MEANING TO ALL OF THE LANGUAGE EMPLOYED. FURTHER THE INTENT OF CONGRESS IN ESTABLISHING THE REVOLVING FUND SEEMS CLEARLY TO HAVE BEEN TO PROVIDE "FOR PERMANENT REHABILITATION.' THIS IS INDICATED NOT MERELY BY THE STATEMENT OF THE PURPOSES OF THE ACT, BUT BY THE DEBATE PRECEDING ITS PASSAGE, IN WHICH THE IMPORTANCE OF A PERMANENT RECONSTRUCTION PROGRAM IN PUERTO RICO WAS STRESSED. WITH THE REVOLVING FUND DEPLETED BY THE ANNUAL ALLOTMENTS THEREFROM, AND REPLENISHED ONLY BY INCOME AND THE PROCEEDS OF THE DISPOSITION OF PROPERTY DERIVED FROM OPERATIONS FINANCED OUT OF THE SPECIAL FUND--- THE SO-CALLED REVOLVING FUND WILL SOON BE ENTIRELY EXHAUSTED. THIS WOULD NOT SEEM TO BE IN ACCORD WITH THE PURPOSE OF CONGRESS TO ESTABLISH A FUND WHICH WOULD TRULY REVOLVE AND REMAIN AVAILABLE FOR THE PERMANENT REHABILITATION OF THE ISLAND UNTIL CONGRESS SHOULD OTHERWISE PROVIDE. MR. JUSTICE HOLMES HAS SAID, " THE MAJOR PREMISE OF THE CONCLUSION IN A STATUTE, THE CHANGE OF POLICY THAT INDUCES THE ENACTMENT, MAY NOT BE SET OUT IN TERMS, BUT IT IS NOT AN ADEQUATE DISCHARGE OF DUTY FOR THE COURTS TO SAY: WE SEE WHAT YOU ARE DRIVING AT, BUT YOU HAVE NOT SAID IT AND THEREFORE WE SHALL GO ON AS BEFORE.' ( JOHNSON V. U.S., 163 FED. 30.)

IT IS CONCEDED THAT CONGRESS DID NOT EXPRESSLY SAY THAT INCOME PRODUCED BY THE REVOLVING FUND SHOULD BE FOR DEPOSIT TO THAT FUND, AND THAT ORDINARILY EXCEPTIONS TO THE STATUTE, REQUIRING DEPOSIT OF MONEYS RECEIVED FOR THE UNITED STATES TO MISCELLANEOUS RECEIPTS ARE STRICTLY CONSTRUED. SUCH STRICT CONSTRUCTION, HOWEVER, WOULD NOT SEEM TO BE PROPER WHERE THE INTENT OF CONGRESS TO INCLUDE IN THE REVOLVING FUND INCOME AND THE PROCEEDS OF THE DISPOSITION OF PROPERTY DERIVED THEREFROM, IS IMPLICIT IN THE ACT.

IN ADDITION TO ITS USE OF THE WORDS,"REVOLVING" AND "PERMANENT REHABILITATION" PREVIOUSLY MENTIONED, CONGRESS HAS SAID THAT THE REVOLVING FUND "SHALL REMAIN AVAILABLE FOR EXPENDITURE FOR THE PURPOSES AND IN MANNER AUTHORIZED HEREIN AND IN THE EMERGENCY RELIEF APPROPRIATION ACT OF 1935 UNTIL CONGRESS SHALL PROVIDE OTHERWISE.' WHAT ARE THE "PURPOSES" SO AUTHORIZED? THE SAME PURPOSES AS AUTHORIZED FOR THE SPECIAL FUND, NAMELY,"TO PROVIDE RELIEF AND WORK RELIEF AND TO INCREASE EMPLOYMENT IN PUERTO RICO," PLUS ANOTHER PURPOSE NOT MATERIAL HERE, THE HURRICANE INSURANCE MENTIONED IN SECTION 2 OF THE ACT. WHAT IS THE "MANNER" IN WHICH THE REVOLVING FUND IS TO REMAIN AVAILABLE? EXCEPT AS TO THE PROVISION IN SECTION 2 (IRRELEVANT TO THE PRESENT QUESTION) AUTHORIZING THE PRESIDENT AT HIS DISCRETION TO TRANSFER SUGAR PROCESSING TAX PROCEEDS TO THE REVOLVING FUND FOR THE PURPOSE OF PROVIDING HURRICANE INSURANCE, THE "MANNER" IS THE SAME AS THAT FOR THE SPECIAL FUND--- THAT IS, BY SEGREGATION OR ALLOTMENT BY THE PRESIDENT FOR PROJECTS TO PROVIDE RELIEF AND WORK RELIEF AND TO INCREASE EMPLOYMENT. THIS WOULD SEEM TO IMPLY THAT INCOME AND THE PROCEEDS OF THE DISPOSITION OF PROPERTY DERIVED FROM THE OPERATION OF PROJECTS APPROVED BY THE PRESIDENT FOR FINANCING OUT OF THE REVOLVING FUND, SHOULD BE NO LESS CONSIDERED A PART OF THAT FUND THAN LIKE SUMS DERIVED FROM THE OPERATION OF PROJECTS FINANCES OUT OF THE SPECIAL FUND.

THIS CONSTRUCTION, IT IS BELIEVED, IS STRENGTHENED BY THE SECOND PARAGRAPH OF SECTION 1 OF THE ACT UNDER CONSIDERATION, PROVIDING:

" PROJECTS FOR RURAL REHABILITATION IN PUERTO RICO MAY INCLUDE THE ACQUISITION, DEVELOPMENT, MAINTENANCE, AND OPERATION OF AGRICULTURAL ENTERPRISES. A REASONABLE CHARGE MAY BE MADE FOR MATERIALS AND SERVICES PRODUCED OR MADE AVAILABLE BY ANY PROJECT: (ITALICS SUPPLIED) PROVIDED, THAT SUCH MATERIALS AND SERVICES MAY ALSO BE SUPPLIED AS COMPENSATION, IN WHOLE OR IN PART, FOR SERVICES RENDERED BY PERSONS EMPLOYED UPON ANY PROJECT.'

THE PROJECTS FOR RURAL REHABILITATION ABOVE MENTIONED ARE NOT MERELY THOSE FINANCED OUT OF THE SPECIAL FUND, BUT OBVIOUSLY, INCLUDE THOSE FINANCED OUT OF THE REVOLVING FUND. CONGRESS MUST HAVE INTENDED THAT THE REASONABLE CHARGE FOR MATERIALS AND SERVICES PRODUCED OR MADE AVAILABLE BY "ANY PROJECT" (WHETHER ONE OF RURAL REHABILITATION OR OTHERWISE) SHOULD GO SOMEWHERE, AND THERE IS NO OTHER LOGICAL PLACE FOR THE PROCEEDS OF THOSE CHARGES TO GO THAN TO THE REVOLVING FUND. AS A MATTER OF FACT RURAL REHABILITATION IS THE FUNDAMENTAL PURPOSE OF MOST OF THE PROJECTS OF THE PUERTO RICO RECONSTRUCTION ADMINISTRATION WHICH ARE FINANCED OUT OF THE REVOLVING FUND, AND THESE PROJECTS PRODUCE INCOME WHICH IS NECESSARY AS AN ACCRETION TO THE FUND IF THE PURPOSE OF CONGRESS TO MAKE THAT FUND AVAILABLE FOR "PERMANENT REHABILITATION OF THE ISLAND" IS TO BE REALIZED.

IT IS MY UNDERSTANDING THAT INCOME AND PROCEEDS DERIVED FROM REVOLVING FUND PROJECTS HAVE BEEN SO EARMARKED OR SPECIALLY DEPOSITED THAT NO ACCOUNTING DIFFICULTIES WOULD BE OCCASIONED IF YOU SHOULD DETERMINE THAT SUCH SUMS MAY PROPERLY BE CREDITED TO THE REVOLVING FUND.

I SHALL GREATLY APPRECIATE YOUR PROMPT ADVICE IN THIS REGARD.

THE ACT OF FEBRUARY 11, 1936, 49 STAT. 1135, PROVIDES, IN PERTINENT PART, AS FOLLOWS:

THAT ALL SUMS WHICH THE PRESIDENT HAS SEGREGATED OR ALLOTTED OR SHALL SEGREGATE OR ALLOT FOR PROJECTS IN PUERTO RICO OUT OF THE MONEY APPROPRIATED BY THE EMERGENCY RELIEF APPROPRIATION ACT OF 1935 SHALL CONSTITUTE A SPECIAL FUND TO PROVIDE RELIEF AND WORK RELIEF AND TO INCREASE EMPLOYMENT IN PUERTO RICO. THE FUND THUS ESTABLISHED SHALL CONTINUE AVAILABLE FOR EXPENDITURE UNTIL JUNE 30, 1940. ALL INCOME DERIVED FROM OPERATIONS FINANCED OUT OF THIS FUND AND THE PROCEEDS OF THE DISPOSITION OF PROPERTY ACQUIRED THEREWITH SHALL CONSTITUTE A REVOLVING FUND, WHICH SHALL REMAIN AVAILABLE FOR EXPENDITURE FOR THE PURPOSES AND IN MANNER AUTHORIZED HEREIN AND IN THE EMERGENCY RELIEF APPROPRIATION ACT OF 1935 UNTIL CONGRESS SHALL PROVIDE OTHERWISE, NOTWITHSTANDING ANY LIMITATION OF TIME CONTAINED IN THE SAID EMERGENCY RELIEF APPROPRIATION ACT OF 1935. ANY AGENCY OR AGENCIES LAWFULLY DESIGNATED OR ESTABLISHED TO ADMINISTER FUNDS ALLOTTED HEREUNDER OR THE REVOLVING FUND HEREIN AUTHORIZED MAY BE CONTINUED SO LONG AS THE SAID FUNDS OR ANY OF THEM REMAIN AVAILABLE FOR EXPENDITURE.

UNDER THE PROVISIONS OF SAID ACT TWO FUNDS ARE ESTABLISHED, NAMELY, (1) A SPECIAL FUND, AVAILABLE FOR EXPENDITURE UNTIL JUNE 30, 1940, AND (2) A REVOLVING FUND. THE CORPUS OF THE LATTER FUND IS FIXED BY THE STATUTE AS CONSISTING OF INCOME DERIVED FROM OPERATIONS FINANCED OUT OF THE SPECIAL FUND AND THE PROCEEDS OF THE DISPOSITION OF PROPERTY ACQUIRED THEREWITH.

THE BALANCE IN THE SPECIAL FUND WHICH REMAINED UNOBLIGATED ON JUNE 30, 1940, WAS APPROPRIATED TO THE PUERTO RICO RECONSTRUCTION ADMINISTRATION FOR THE FISCAL YEAR 1941, BY THE ACT OF JUNE 26, 1940, 54 STAT. 615, FOR THE PURPOSES SET FORTH IN SAID ACT, AND WAS CONTINUED AVAILABLE UNTIL JUNE 30, 1942, BY THE ACT OF JULY 3, 1941, 55 STAT. 554. SINCE JUNE 30, 1942, OPERATIONS OF THE PUERTO RICO RECONSTRUCTION ADMINISTRATION HAVE BEEN FINANCED ONLY OUT OF THE REVOLVING FUND. AND, SINCE THE FUND IS REPLENISHED ONLY BY INCOME AND THE PROCEEDS OF THE DISPOSITION OF PROPERTY DERIVED FROM OPERATIONS FINANCED OUT OF THE SPECIAL FUND, IT IS CONTENDED THAT THE REVOLVING FUND SOON WILL BE EXHAUSTED, CONTRARY TO THE INTENT OF THE CONGRESS IN CREATING THE REVOLVING FUND. MOREOVER, IT IS CONTENDED THAT THE EXCLUSION OF INCOME AND THE PROCEEDS OF THE DISPOSITION OF PROPERTY DERIVED FROM OPERATIONS FINANCED OUT OF THE REVOLVING FUND WOULD SEEM TO DEPRIVE THE WORD "REVOLVING" OF ANY AND ALL MEANING WHATEVER. THIS LATTER CONTENTION APPEARS PREDICATED UPON THE ASSUMPTION THAT A REVOLVING FUND IS SUSTAINED BY REPAYMENTS OF FUNDS ADVANCED THEREFROM AND ANY INCREMENT ACCRUING FROM EXPENDITURES FROM THE FUND. HOWEVER, THAT IS NOT NECESSARILY SO. A REVOLVING FUND MAY MEAN A FUND WHICH WHEN REDUCED IS REPLENISHED BY NEW FUNDS FROM SPECIFIC SOURCES. UNITED STATES V. BUTTERWORTH-1JUDSON CORPORATION, 297, F. 971, 979. THE SPECIFIED SOURCES FROM WHICH THE PUERTO RICO RECONSTRUCTION ADMINISTRATION REVOLVING FUND IS AUTHORIZED TO BE REPLENISHED ARE (1) " ALL INCOME DERIVED FROM OPERATIONS FINANCED OUT OF THIS FUND" (THE "SPECIAL FUND") AND (2) "THE PROCEEDS OF THE DISPOSITION OF PROPERTY ACQUIRED THEREWITH.' THE STATUTE THUS HAVING EXPRESSLY SPECIFIED THE SOURCES OF THE MONEY THAT COMPRISE THE REVOLVING FUND, OTHER SOURCES MAY NOT BE ADDED BY CONSTRUCTION. TO ENLARGE THE SOURCES OF THE FUNDS THAT GO TO MAKE UP THE REVOLVING FUND--- AS THE ABOVE -QUOTED LETTER SUGGEST--- WOULD REQUIRE READING INTO THE STATUTE WORDS THAT ARE NOT THERE. IT IS A GENERAL RULE OF STATUTORY CONSTRUCTION THAT THE EXPRESS MENTION OF ONE PERSON, THING, OR CONSEQUENCE IS TANTAMOUNT TO AN EXPRESS EXCLUSION OF ALL OTHERS. GENERALLY, WHERE REPAYMENTS TO REVOLVING FUNDS OF MONEYS EXPENDED THEREFROM ARE CONTEMPLATED, THE CONGRESS SPECIFICALLY PROVIDES THEREFOR. SEE 1 COMP. GEN. 705; A-96531, OCTOBER 24, 1940. NO SUCH PROVISION IS MADE IN RESPECT OF THE REVOLVING FUND HERE INVOLVED.

THE INCOME, AND THE PROCEEDS OF THE DISPOSITION OF PROPERTY, DERIVED FROM OPERATIONS FINANCED OUT OF THE REVOLVING FUND REPRESENT MONEYS COLLECTED FOR THE USE OF THE UNITED STATES AND CAN BE WITHDRAWN OR EXPENDED ONLY IN CONSEQUENCE OF AN APPROPRIATION MADE BY LAW. HENCE, IN THE ABSENCE OF SPECIFIC PROVISION IN THE ACT OF FEBRUARY 11, 1936, SUPRA, OR OTHER STATUTORY AUTHORITY, SUCH MONEYS MUST BE COVERED INTO THE GENERAL FUND OF THE TREASURY.

WITH REFERENCE TO YOUR CONTENTION THAT THE EXCLUSION OF SUCH FUNDS WILL RESULT IN THE RAPID EXHAUSTION OF THE REVOLVING FUND, SUCH MATTER PROPERLY IS FOR THE CONSIDERATION OF THE CONGRESS.

ACCORDINGLY, I HAVE TO ADVISE THAT, UNDER THE PRESENT LAW, THE PUERTO RICO RECONSTRUCTION ADMINISTRATION REVOLVING FUND MAY BE REPLENISHED ONLY FROM THE SOURCES SPECIFIED IN THE ACT CREATING THE FUND AND THAT THERE IS NO AUTHORITY TO CREDIT TO SAID FUND ANY INCOME DERIVED FROM OPERATIONS FINANCED OUT OF THE REVOLVING FUND, OR ANY PROCEEDS OF THE DISPOSITION OF PROPERTY ACQUIRED THEREWITH.