Page images
PDF
EPUB

crease the bonded indebtedness of the Philippine Government beyond the maximum amount authorized by law.

I find that all of the statutory requirements regarding the issue of bonds by the Government of the Philippine Islands have been complied with in this case, and that the form of bond submitted by you is in substantial compliance with the law authorizing the issue. It is my opinion, therefore, that when issued in the form and amount proposed, said second series of bonds in the amount of $750,000 will have been legally issued and will be valid and binding obligations of the Government of the Philippine Islands.

Respectfully,

To the SECRETARY OF WAR.

WILLIAM D. MITCHELL.

PORTO RICO-LEGALITY OF BOND ISSUE

The proposed issue by the Government of Porto Rico of bonds in the sum of $750,000.00, the proceeds from the sale of which are to be used in the payment of the principal of, and interest on, the bonds heretofore issued and sold for the construction of the Isabela Irrigation System, and for the operation and maintenance of said system until such time as the funds necessary for these purposes shall be produced from assessments levied upon lands included within the irrigation district, being authorized by Congress and the Legislature of Porto Rico, and all of the statutory requirements regarding the issue and sale of these bonds having been complied with, said bonds, when issued in the amount and form proposed, will have been legally issued and will constitute valid and binding obligations of the People of Porto Rico.

DEPARTMENT OF JUSTICE,

November 27, 1929.

SIR: I have the honor to acknowledge receipt of your letter of November 8, 1929, stating that your Department has been authorized to issue and sell for the account of the Government of Porto Rico bonds to the face value of $750,000.00, the proceeds from which are to be used in the payment of the principal of, and interest on, the bonds heretofore issued and sold for the construction of the Isabela Irrigation System, and for the operation and maintenance of said system until such time as the funds necessary for these purposes

shall be produced from assessments levied upon lands included within the irrigation district.

The proposed bonds are to be issued under authority contained in section 3 of an Act of Congress approved March 2, 1917, entitled "An Act to provide a civil government for Porto Rico, and for other purposes" (c. 145, 39 Stat. 951, 953), as amended by Act approved March 4, 1927 (c. 503. 44 Stat. 1418), and in accordance with the authority contained in Joint Resolution No. 12 of the Legislature of Porto Rico, approved July 3, 1929, a copy of which was enclosed with your letter.

You state that said bonds are to be issued by you, at the request of the Treasurer of Porto Rico, in coupon form, in denominations of $1,000 each, to be dated October 1, 1929, and to bear interest from January 1, 1930, at the rate of 42 per cent per annum, payable semiannually on January 1 and July 1 of each year, said bonds to be payable at the Treasury of the United States in series on July 1, 1952 to 1970, inclusive. A copy of the form of the proposed bond is transmitted with your letter, and you request my opinion upon the legality of the proposed issue.

Section 3 of the Act of March 2, 1917, as amended, supra, provides:

66

* *

* * and when necessary to anticipate taxes and revenues, bonds and other obligations may be issued by Porto Rico or any municipal government therein as may be provided by law, and to protect the public credit: Provided, however, That no public indebtedness of Porto Rico and the municipalities of San Juan and Ponce shall be allowed in excess of 10 per centum of the aggregate tax valuation of its property *. In computing the indebtedness of the people of Porto Rico, municipal bonds for the payment of interest and principal of which the good faith of the people of Porto Rico has heretofore been pledged and bonds issued by the people of Porto Rico secured by bonds to an equivalent amount of bonds of municipal corporations or school boards of Porto Rico shall not be counted, but all bonds hereafter issued by any municipality or subdivision which the good faith of the people of Porto Rico is pledged shall be counted."

*

*

*

for

You state the records of your Department show that the aggregate assessed valuation of real and personal property in Porto Rico on June 30, 1929, amounted to $344,865,104.00; that on said date there were outstanding bonds of the Government of Porto Rico of the face value of $25,285,000.00, of which $492,000.00 are secured by an equal amount of bonds of municipal corporations and school board bonds and, therefore, are not to be counted in ascertaining the amount of total bonded indebtedness the Government of Porto Rico is authorized to incur, and that the good faith of the People of Porto Rico has been pledged to the payment of principal and interest on Municipal bonds aggregating $1,361,500.00 since the passage of the Act of Congress of March 4, 1927, making the outstanding bonded indebtedness of the Insular Government on June 30, 1929, which must be taken into consideration in connection with the issuing of further bonds, amount to $26,154,500.00, against which there has been accumulated in the various sinking funds the sum of $1,343,779.59. As the Government of Porto Rico is authorized to incur a maximum bonded indebtedness of 10 per cent of the assessed valuation of its property, it is apparent that the issue of the bonds now proposed will not increase such indebtedness beyond the amount permitted by law.

Section 3 of Joint Resolution No. 12, supra, provides:

"For the purpose of providing funds for the payment of principal of, and interest on, the bonds already issued and sold for the construction of the irrigation system, as well as for the operation and maintenance of said system until such time as the funds necessary for these purposes are produced by such assessments as may be levied on irrigated lands, as hereinbefore provided, and by the proceeds of other receipts, derived from said system, the Treasurer of Porto Rico is hereby authorized, empowered, and directed to issue bouds of The People of Porto Rico to the amount of one million, two hundred and fifty thousand (1,250,000) dollars, or such part thereof as may be necessary."

Said Resolution further provides that said bonds shall be issued in series, and may be in coupon or registered form in denominations of one thousand, five thousand, and/or ten thousand dollars, bearing interest at a rate not exceeding 5 per cent per annum, payable semiannually, redeemable in

series. It is further provided in said Resolution that the bonds may be sold by the Secretary of War or by the Treasurer of Porto Rico, with the approval of the Governor, upon such terms as may be most favorable to the people of Porto Rico, and that the Treasurer of Porto Rico, with the approval of the Governor, shall have absolute charge and authority under the limitations prescribed therein.

Said Joint Resolution also provides that the bonds issued thereunder "shall be exempt from taxation by the Government of the United States or by the Government of Porto Rico, or any political subdivision or municipality thereof, or by any State, county, municipality, or other municipal subdivision of any State or Territory of the United States, or by the District of Columbia," in accordance with the provisions of section 3 of the Act of Congress approved March 2, 1917, as amended; that the proceeds derived from the sale of the bonds shall be devoted to the payment of the principal of, and interest on, the bonds heretofore issued and sold for the construction of the irrigation system and for the operation and maintenance of said system; and that the good faith of the people of Porto Rico is pledged for the payment of the principal of and interest on said bonds.

There was transmitted with your letter a statement signed by the Treasurer of Porto Rico and approved by the Governor setting forth the conditions of the issue and sale of said bonds, and a certificate issued by the-acting treasurer of Porto Rico regarding the outstanding bonded indebtedness of the Government of Porto Rico. It is apparent, therefore, that the issue of the bonds and the manner and form of their issue and payment have received the approval of the Governor of Porto Rico.

I find that all of the statutory requirements regarding the issue and sale of said bonds have been complied with and that the form of bond submitted is in substantial compliance with the law authorizing the same. It is my opinion, therefore, that when issued in the amount and form proposed said bonds will have been legally issued and will constitute valid and binding obligations of the People of Porto Rico.

Respectfully,

To the SECRETARY OF WAR.

WILLIAM D. MITCHELL.

1

FEDERAL

EMPLOYEES' COMPENSATION

ACT-EMPLOYEES

OF THE INTERNATIONAL FISHERIES COMMISSION

Employees of the International Fisheries Commission, created by the Convention of March 2, 1923, between the United States and Great Britain, are not "civil employees of the United States" within the meaning of the Federal Employees' Compensation Act of September 7, 1916 (39 Stat. 742, 750).

DEPARTMENT OF JUSTICE,

December 4, 1929.

SIR: I have the honor to comply with your request of October 30, 1929, for my opinion on the question whether employees of the International Fisheries Commission, created by the Convention of March 2, 1923 (43 Stat. 1841), between the United States and Great Britain, are "civil employees of the United States" within the meaning of the Act of September 7, 1916, c. 458; 39 Stat. 742, 750 (U. S. C. Title 5, secs. 751, 790), providing compensation for disability or death of employees resulting from personal injuries sustained while in the performance of their duties.

The Convention creating the Commission prohibits the nationals, inhabitants, and vessels of the United States and of the Dominion of Canada from fishing for halibut in the territorial waters and in the high seas off the western coasts of the United States and of the Dominion of Canada at certain times. It also provides for seizure of vessels and prosecutions for violations of the provisions of the Convention. Article III provides:

"The High Contracting Parties agree to appoint within two months after the exchange of ratifications of this Convention, a Commission to be known as the International Fisheries Commission, consisting of four members, two to be appointed by each party. This Commission shall continue to exist so long as this Convention shall remain in force. Each party shall pay the salaries and expenses of its own members, and joint expenses incurred by the Commission shall be paid by the two High Contracting Parties in equal moieties.

"The Commission shall make a thorough investigation into the life history of the Pacific halibut and such investi

« PreviousContinue »