prepared to commence the construction of Spanish Springs, but would do nothing until the State had eliminated this conflicting right. That he was thereupon assured that the State would proceed with the elimination of the said right, which pact-through the cooperation of the Reclamation Service-was kept by the State of Nevada. EMMET D. BOYLE. Appeared before me, a notary public in and for the county of Washoe, State of Nevada, Emmet D. Boyle, who, under oath, declares that he has read the foregoing and that all of the statements therein contained are true. [SEAL.] ORRIN W. DAVIE, Notary Public in and for the County of Washoe, State of Nevada. ALASKA RAILROAD. (See reference on page 32.) The following is inserted herewith for the information of the committee: The COMPTROLLER GENERAL, DEPARTMENT OF THE INTERIOR, General Accounting Office, Washington, D. C. MY DEAR MR. COMPTROLLER GENERAL: I desire to invite your attention to the following proposed provision of law: "The sums appropriated from time to time for maintenance and operation and other purposes of the Alaska Railroad, including the purchase, maintenance, and operation of river boats, may be merged in one fund with all amounts received in the operation of the railroad and river boats, including refunds and the proceeds of sales, and the fund so created shall be available until expended, in the amounts and for the purposes authorized by law, including the payment of claims for loss and damage arising in the said operations and the payments of amounts due connecting lines under traffic agreements." The change proposed would enable the Alaska Railroad to make disbursements for material and labor without assigning the disbursement voucher to one of a number of appropriations or funds at the time of purchase. Owing to the fact that it is impracticable as a rule to determine at the time of purchase, when or where materials will ultimately be used, the assignment of an appropriation at the time of purchase, where there are a number of appropriations, Involves uncertainties and possibilities of error and misapplication of appropriations and other funds, which will be at once apparent to your office. The control which your office is required to maintain with regard to appropriations, in limiting the use of the same both as to purpose and amount, can be exercised to better effect, in my judgment, by regarding the final use of the funds rather than their primary application through purchase vouchers and pay rolls. Statements or vouchers can be rendered to your office periodically, as desired, connected with the total of disbursement vouchers under the general fund, which will indicate the final use of the amounts available for the purposes of the railroad. These statements or vouchers can be prepared directly from the books of the railroad, giving your office more complete information than is being furnished at present, and will afford a better basis for such examination and verification of the accounts as you may direct from time to time. The appropriations made annually to meet the operating deficit of the railroad should not, I believe, be limited to one fiscal year; it should be allowable to defer expenses without causing the unexpended balance of the appropriation to revert to the Treasury. By permitting unexpended balances to be carried forward, economy in expenditures will be encouraged, and there will be a material saving in clerical work now required, incident to observance of the limitation as to fiscal years. It will be appreciated if you will give this proposal your careful consideration, and suggest any modifications you may deem advisable. I would be glad to present the matter for action by Congress during the present session. Sincerely yours, E. C. FINNEY, First Assistant Secretary. COMPTROLLER GENERAL OF THE UNITED STATES, The SECRETARY OF THE INTERIOR. It is believed that the most practicable method of accomplishing what is desired by you is to substitute for the language now appearing in the Budget and the proposal made in your letter, a provision reading substantially as follows: 66 THE ALASKA RAILROAD. "For every expenditure requisite for and incident to the authorized work of the Alaska Railroad, including the following: Maintenance, operation, equipment, and improvement of railroads in Alaska; maintenance and operation of river steamers and other boats on the Yukon River and its tributaries in Alaska; construction or purchase of one river steamer and necessary barges; purchase and repair of machinery and apparatus and construction or rental of docking facilities for steamboat operation; payment of claims for losses and damages arising from operations and the payment of amounts due connecting lines under traffic agreements; payment upon the approval of the officer designated by the President as the successor of the chairman of the Alaskan Engineering Commission, of compensation and expenses as authorized by section 42 of the injury compensation act approved September 7, 1916, to be reimbursed as therein provided, $in addition to all amounts received by the Alaska Railroad during the fiscal years 1924 and 1925, which, with all balances in existing appropriations and funds for the maintenance and operation of railroads and river steamers in Alaska, shall be consolidated into the 'Alaska Railroad fund,' to be immediately available and to continue available until expended." Such a provision would be acceptable to this office, provided that the accouhts for receipts and expenditures are systematically classified so as to show, under proper heads, the various classes of receipts and expenditures and that reports are submitted in connection with estimates which will clearly indicate in a comparative way the use that has been made and is proposed for all funds which may be available. It is believed that for an operating organization such as the Alaska railroad any limitation which Congress may desire to make upon the use of funds can better be provided by inserting a limiting provision in the regular appropriation act, as for example, by specifying the amount which may be expended for "improvements or otherwise, than by making a separate appropriaion for the purpose. The clause relating to the payment of injury compensation is inserted so that there may be no question as to the authority of the general manager to settle claims under section 42 of the compensation act, approved September 7, 1916. Respectfully, Gen. H. M. Lord, J. R. MCCARL, JANUARY 31, 1924. Director of the Bureau of the Budget. MY DEAR GENERAL LORD: Your attention is invited to the correspondence, copies herewith, between this department and the Comptroller General, relating to a proposal to consolidate the various appropriations and receipts of the Alaska Railroad into one fund, to be immediately available and remain available until expended. The reasons for this proposal are set forth in my letter of January 10, 1924, to the Comptroller General. The provision suggested by the Comptroller General in his letter of the 28th instant will be acceptable to this department, and, if adopted, will undoubtedly serve the purpose intended. It will be appreciated if you will give this matter your consideration and make any amendments that may be required by the policy of the Bureau of the Budget. It is expected that the matter of the Interior Department appropriations for the fiscal year 1925 will be before the Committee on Appropriations of the Senate at an early date, at which time there will be an opportunity to have the proposed provisions considered as an amendment to the appropriation bill. Respectfully, E. C. FINNEY, First Assistant Secretary and Budget Officer. (Thereupon, at 4 o'clock p. m., the subcommittee adjourned, subject to the call of the chairman.) |