vided in section 5b, Act June 28, 1940 (54 Stat. 679; 50 U. S. C. App. 1155), that the provisions of the 8-hour law should be suspended for work covered by Army, Navy and Coast Guard contracts. Section 303, Act September 9, 1940 (54 Stat. 884; 40 U. S. C. 325a), provided that work in excess of 8 hours a day is now permitted upon compensation for all hours worked in excess of 8 hours per day at not less than one and one-half times the basic rate of pay. The effect of this latest statute is to reinstate the provisions of the act of 1912, and to provide a statutory waiver thereof where time and one-half is paid, Hence, if the contractor fails to pay such extra compensation, he still violates the 1912 statute and is subject to its penalties. (See 20 Comp. Gen. 233; id. 890; 21 id. 1110.)

(e) Adjustments after final payment. (1) Supplemental payments to a contractor may be made after the final settlement voucher has been paid where it is clear from the facts in the case, in which both the contractor and the contracting officer concur, that the voucher previously marked "Final Payment" was so marked through error. The supplemental voucher will be marked "Final Payment," with appropriate citation to the previous so-called final payment voucher, and will have attached thereto, in addition to other required supporting papers, the complete file of correspondence or other papers substantiating the facts. The supplemental final voucher will also contain the certificate "No release has been had from the contractor."

(2) Requests by contractors for relief under the provisions of the First War Powers Act, 1941, as amended, and Executive Order 10210, February 2, 1951, which authorize administrative agencies concerned with national defense to amend or modify contracts "heretofore or hereafter made" without regard to other provisions of law in order to facilitate national defense, may be considered and granted after full performance of the contract and after final payment, provided such requests are filed during performance of the contract and before final payment has been made under the contract. See 31 Comp. Gen. 685.

[17 F. R. 8360, Sept. 17, 1952, as amended at 18 F. R. 751, Feb. 5, 1953]

PAYMENT UNDER LEASES

§ 535.10 Who entitled to rental. (a) The United States, having occupied land under a lease, can not avoid the payment of rent therefor by reason of any defect in the title of the lessor at the time the lease was made. (See 9 Comp. Dec. 593.)

(b) The United States, having occupied land owned by several tenants in common under an agreement with one of them, and without objection by the others, such tenant in common is entitled to receive the rent therefor. (See 9 Comp. Dec. 593.)

(c) When property leased to the United States is sold on one day and the deed of conveyance is executed on another day, the grantee is entitled to receive rental from said property only from and after the date of excution of the deed. (See 15 Comp. Dec. 195.)

(d) Where leased premises, under the lease of which the annual rental was payable in quarterly installments on the first days of October, January, April, and July, were sold under a mortgage foreclosure and the new owner took title November 23, the new owner is entitled to the rent for the whole quarter under the well-settled common-law rule that in such cases, the apportionment of rent is not allowable, as the rent does not accrue from day to day, but only accrues at the time it becomes due under the terms of the lease and is indivisible. (See Musselman v. U. S., 52 Ct. Cls. 436.)

§ 535.11 Written agreement required. A disbursing officer who charges in his accounts a payment for rent, unsupported by evidence of a contract fixing the rent to be paid, is not entitled to a credit therefor (5 Comp. Dec. 701). The General Accounting Office will refuse credit for vouchers paid for rent unless supported by a written agreement signed by both parties.

§ 535.12 Computation of rent. The provision in the act of April 28, 1904 (33 Stat. 513), for computing payments of annual or monthly compensation of officers, agents, and employees of the United States, has no application to contracts for the payment of monthly rental for leased premises, and payments for fractional parts of a month should be on the basis of the actual number of days in the month. In computing the

time between two specified dates the general rule is to exclude the first and include the last date. (See 11 Comp. Dec. 494.)

§ 535.13 Payment of rent in advance. Payment of rent in advance, by the month, year or quarter, for naked lands leased to the Government, of which it has been placed in possession by the lessor, is in violation of R. S. 3648 (31 U. S. C. 529), and will not be recognized by the General Accounting Office. (See 23 Comp. Dec. 653.)

§ 535.14 Payment of rent under improperly executed lease. Where a writing in the form of a lease purporting to be entered into between the lessor and an officer of the Army on behalf of the Government, as lessee, was not signed on behalf of the Government or deposited in the General Accounting Office, as provided by R. S. 3743, 3744, and 3745 (41 U. S. C. 20, 16, 17), a stipulation therein contained that liquidated damages should be paid for all claims, costs of labor and materials, etc., reconstructing the premises as they were at the commencement of the tenancy, imposed no valid obligation upon the Government, and payment of the amount stipulated is not authorized. (See 26 Comp. Dec. 232.)

§ 535.15 Payment for cost of improvement of rented premises. The laying of conduits and wires in premises occupied by the United States under a lease from the owner is an improvement of the premises, and unless provision has been made in the lease for the making of such an improvement by the United States as a consideration in whole or in part for the use thereof, payment of the cost of such an improvement is not authorized. (See 6 Comp. Dec. 943.)

§ 535.16 Payment of taxes on property. Although taxes are not payable by the Federal Government as the owner of real property, they are properly payable as part of the rent when specifically included in the terms of the lease. (See 24 Comp. Dec. 705.)

§ 535.17 Payment of rent in connection with termination of lease. Under a lease for a year, where the rent was payable monthly, which provided that the tenancy might be terminated by giving 30

days' notice, a notice given on the 10th of a month does not become operative until the end of the ensuing month. (See 9 Comp. Dec. 366.)

PAYMENTS FOR TELEPHONE, TELEGRAPH, AND TELETYPEWRITER SERVICE

§ 535.18 Telephone service-(a) Rates, general. Where a contract for the furnishing of telephone service to the Government provides for payment at legally established rates, payment for services currently rendered is authorized at the increased rates established by city ordinance after court determination of insufficiency or prior rates. (See 15 Comp. Gen. 896.)

(b) Flash calls made by ground observers. Flash calls made by ground observers in connections with Aircraft Warning Service may be billed as a group from a given point to a filter center, if such calls do not consume more than the minimum talking period. Where such calls consume more than the minimum talking period, they will be listed separately. (See MS. Comp. Gen., B 25280, April 28, 1942.)

(c) Private residences. Payment is unauthorized from public funds for the installation or rent of a telephone installed in a private residence irrespective of its use for official business, but longdistance tolls for messages received or transmitted over such telephone, strictly for the public business, may be so paid. (See also 15 Comp. Gen. 885.)

§ 535.19 Telegraph service, rates—(a) Official messages. The rates for communications by telegraph between the several departments of the Government and their officers and agents in their transmission over the lines of any telegraph company to which has been given the right-of-way, timber, or station lands from the public domain are fixed annually by the Federal Communications Commission pursuant to the provisions of section 5266, Revised Statutes, as amended.

(b) Personal messages. Administrative offices may increase amounts claimed for telegraph services by the difference between the Government rate billed and the commercial rate for messages of a personal nature where collection at the commercial rate, plus tax, has been made from the individual for

whose benefit the services were rendered, and deposited in special deposit funds, provided the voucher shows the full cost of the telegrams at commercial rates is being charged to the special deposit funds.

(See 17 Comp. Gen. 873.)

§ 535.20 Bills paid monthly—(a) General. In general, all official telegrams will be charged to and paid for at the sending office on monthly bills, which will be submitted by the local telegraph office directly to the local commanding officer.

(b) Supporting evidence. (1) Telegraph bills will be supported by proofs of service which, except "Government collect" messages or telegrams of a confidential nature, will be original telegrams bearing the operator's original pencil notations or indorsement of transmission showing actual performance. (See 14 Comp. Gen. 825, 16 id. 217.) As to what constitutes an original within this rule, the basic reason for the requirement that the original be filed is to insure that the charges for transmission were correctly computed for the services actually rendered and to prevent duplicating payment of such charges. This is best accomplished by accompanying the voucher with the copies of the telegrams used for transmission, showing thereon the company notations with respect to the time filed, the number of words paid for, etc., such copies being commonly referred to as transmission or wire copy. It is immaterial for audit purposes whether the transmission or wire copies be written in long hand or consist of carbon copies; on the other hand, a ribbon copy not showing the transmission data would be of little, if any, use in auditing the charges. (See 21 Comp. Gen. 364.)

(2) If charges are included in monthly bills for messages received "Government collect," carbon copies will be accepted in support of the charges. (See MS. Comp. Gen. A-13067, December 18, 1935.)

(3) Vouchers for telegraph services furnished by a foreign government in transmitting alleged confidential messages in code may not be passed by the General Accounting Office upon a blanket certification that they were confiIdential, but copies of the telegrams in code and untranslated will be submitted in support of the account. (See 4 Comp. Gen. 860.)

(4) While the general rule is that claims for telegraphic services not of a confidential nature must be supported by the originals of the outgoing messages when presented for payment (subparagraph (1) of this paragraph, where the messages originate in a foreign country in which the transmitting company is not permitted by its regulations to surrender the originals, copies of the originals will be accepted in support of vouchers, provided appropriate steps are taken by the administrative office to prevent a duplicate payment for the same services. (See 21 Comp. Gen. 94.)

(5) (i) Bills for multiple-address telegram transmission services will be supported by evidence that the official message required to be sent was the message actually transmitted, that the message was in fact transmitted, and that the class of service rendered and charged for was that requested by the sender. Therefore a self-serving statement by a telegraph company official that the services were performed as requested cannot be accepted in lieu of the required data.

(ii) Where transmission of a multipleaddress telegram is from the originally filed copy of the message, the voucher covering payment for the transmission services will be supported by such original and the list of addresses with appropriate data placed thereon at the time of transmission, but where transmission is from copies of such original, the copies containing the necessary data for a proper audit are required to be filed with the voucher. (See MS. Comp. Gen., B 28733, October 24, 1942.)

(6) (i) Where telegraph or cable service is rendered outside the continental United States under conditions which make it impossible for the contractor or the contracting officer to secure the original telegrams or cablegrams, vouchers may be supported by copies of the original telegrams or cablegrams, together with a certificate executed by the contractor and approved by the contracting officer, setting forth the circumstances in the case and the reason that the originals of the messages required by subparagraph (1) of this paragraph cannot be obtained.

(ii) Where the cost of a telegram or cablegram has been paid by a bank or

similar agency and the expenditure is otherwise correct, a debit note, statement, or other similar document from the bank or similar agency may be accepted in support of the voucher if the contractor certifies that the amount is not in excess of the minimum cost for similar services, that the telegram or a copy thereof cannot be secured and the reason therefor and if the certificate is approved by the contacting officer.

(c) Bills to be paid within 5 days. Disbursing officers to whom bills are submitted for payment will settle such accounts within 5 days after receipt, making payment to the local telegraph office rendering the account. This will not be construed as authorizing payment when papers necessary to support the voucher are not in the possession of the disbursing officer.

(d) Payment to initial company. In settling accounts for telegrams which pass over the lines of more than one company (bond-aided excepted), payment may be made on the original telegram to the initial company for the entire service.

§ 535.21 Teletypewriter service-(a) Certificate. The general certificate prescribed in § 535.1 (b) is required.

(b) Copies of teletypewriter messages not required. Accounts for teletypewriter service need not be supported by the originals or copies of messages prescribed in § 535.20 (b) for official telegrams. PAYMENT

OF TRANSPORTATION ACCOUNTS $535.22 By whom paid-(a) Within continental limits of United States and Alaska (1) Finance Center, U. S. Army, Transportation Division, Indianapolis 49, Indiana. (i) All transportation accounts for Department of the Army bills of lading and transportation requests issued for service to and from and within the continental limits of the United States and Alaska (except those payable from appropriations for civil functions of the Corps of Engineers and transoceanic shipments from and to foreign countries moving by water) will be paid by the disbursing officer of the Finance Center, U. S. Army Transportation Division, Indianapolis 49, Indiana.

(ii) Bills for miscellaneous charges such as demurrage, icing, salting, switching, reweighing, storage, etc., accruing in connection with shipments under Department of the Army bills of lading and transportation requests will be paid by the disbursing officer of the Finance Center, U. S. Army, Transportation Division, Indianapolis 49, Indiana.

(2) Local disbursing officer. Bills for miscellaneous charges, such as demurrage, icing, salting, switching, reweighing, storage, etc., accruing on shipments under prepaid commercial bills of lading or where no bill of lading or actual transportation movement is involved will be paid by the local disbursing officer without the necessity of obtaining a purchase order or other contractual instrument. Carrier's bill certified by the transportation officer or other authorized official of the Government as to performance of service and citing the appropriation chargeable will be accepted in lieu of purchase order or other contractual instrument.

(b) Outside continental limits of United States. (1) Accounts pertaining to Department of the Army bills of lading issued for service within the Caribbean or Pacific area, Philippine Islands, and in foreign countries covering ocean transportation services (except Government bills of lading covering ocean transportation from one point in the European Theater to another point in the European Theater), will be paid by the Disbursing Officer, Military Sea Transportation Service, Department of the Navy, Washington 25, D. C. Such transportation accounts will be forwarded to Commander, Military Sea Transportation Service, Department of the Navy, Washington 25, D. C.

(2) Transportation requests (Standard Forms 1139 and 1141) issued for service within the Caribbean or Pacific area, Philippine Islands, and in foreign countries will be paid by a disbursing officer in the area concerned except that the Finance Center, U. S. Army, Transportation Division, Indianapolis 49, Indiana, will pay transportation requests issued for travel in Canada and Mexico and may pay for service in a foreign country when billed for in United States currency.

(3) Transportation accounts of household goods by commercial motor van

carriers on Government warrants, purchase orders and contracts issued for service within the Caribbean or Pacific areas, Philippine Islands and in foreign countries, will be paid by a disbursing officer in the area concerned.

(c) Officers of the Army detailed to the Air Force, Navy, Marine Corps, or Coast Guard and officers of those services detailed to the Army for duty. Payment of transportation accounts for packing, crating, drayage, unpacking, uncrating, and shipment of authorized household goods, reimbursement therefor, for officers of the Army detailed to the Air Force, Navy, Marine Corps, or Coast Guard and officers of those services detailed to the Army for duty, will be made by the designated disbursing officer or agent of the service issuing the orders. (Example: Upon initial detail of a Navy officer (under Navy orders) to the Army, payment of transportation accounts will be made by the Navy. Upon future movements of this detailed Navy officer, including relief from duty with the Army (under Army orders), payment of transportation accounts will be made by the designated Army disbursing officer.) The amount will be chargeable to the appropriation of the service issuing the orders and no transfer of funds is necessary.

(d) Civil functions of the Corps of Engineers. Accounts covering transportation payable from appropriations for civil functions of the Corps of Engineers will be paid by district officers of the Corps of Engineers specially designated to settle the accounts for the specific project.

[17 F. R. 8943, Oct. 7, 1952, as amended at 19 F. R. 1667, Mar. 27, 1954]

§ 535.23 Action when transportation appears to have been furnished improperly. If it appears to the paying officer that transportation has been furnished improperly by the issuing officer, he will make payment to the carrier for the service actually rendered, and will call upon the issuing officer for the authority upon which such transportation was furnished.

[17 F. R. 8943, Oct. 7, 1952]

§ 535.24 Payment when documents covering personal transportation are lost or destroyed-(a) Lost or destroyed request. Payment of transportation

charges, where the original transportation request has been lost or destroyed may be made only when the provisions of SR 55-110-1 (Department of the Army special regulations pertaining to transportation request) have been accomplished.

(b) Lost or destroyed ticket. Where the passenger has lost or destroyed the ticket issued on a transportation request, no refund can be secured from the carrier and a new transportation request cannot be issued for the same journey except as provided in SR 55-110-1. [17 F. R. 8943, Oct. 7, 1952]

§ 535.25

Payment on bills of lading(a) On original only. Payment of transportation charges ordinarily will be made on the original accomplished Government bill of lading and never on memorandum copies or shipping orders.

(b) When original lost. Payment of transportation charges where the original bill of lading has been lost will be made on Standard Form 1108 (Certificate in Lieu of Lost U. S. Government Bill of Lading).

[17 F. R. 8943, Oct. 7, 1952]

§ 535.26 Advance payment. Advance payment for movement of household goods for members of the uniformed services is not authorized. The purchase on behalf of the Government of coupon books to be used in the procurement of gasoline and oil incident to the operation of an automobile under Government control is not authorized, as such purchase involves the payment for supplies in advance of delivery in contravention of section 3648, Revised Statutes. See 8 Comp. Gen. 454.

[17 F. R. 8943, Oct. 7, 1952]

§ 535.27 Responsibility and action in case of loss, destruction, or damage—(a) General. Payment for transportation of freight or express will be made to the last carrier, unless otherwise provided in the bill of lading, and only for the quantity of property delivered at destination, except that in case of loss of weight by natural shrinkage en route, the weight shipped as shown in the bill of lading, will be paid for, provided the packages are delivered intact.

(b) Responsibility of carrier. The carrier will be held responsible for loss, destruction, or damage to property while