have undoubted qualifications but another, junior in service, has seemed to possess relatively higher ones.

The suggested conclusion accords with that of Attorney General Devens (17 Op. 56, 58), that an officer did not lose numbers through the promotion over him of others, selected for "the most efficient and faithful service" and "the highest professional qualifications and attainments." Commander Parsons was thus passed over, and this is not the same thing as losing numbers clearly recognized by the statute.

Section 10 expressly provides in proper circumstances for the deferred assignment of a new running mate of the rank to which the staff officer shall subsequently have been advanced, but the words, "If the running mate of a staff officer be promoted to a higher rank and such staff officer be considered by a selection board for such rank but fail to be selected for advancement thereto ** *

can have no application to the case of Commander Parsons. By their natural import the words, "such rank," refer to the rank attained by the running mate upon his latest promotion, not an intermediate rank which he had previously filled, and, upon that view, Commander Parsons had not been considered for" such rank." There is additional reason why section 10 can have no application because, as indicated above, there was no officer who could be assigned as running mate to Commander Parsons at the time of his selection by the second board and no provision is made by the statute for the assignment of a new running mate thereafter.

From its terms and its legislative history it is clear that the primary purpose of this statute was that a staff officer in a corps where promotion had been slow should have an opportunity to attain the higher ranks reached through ordinary promotion by officers in the line, and for this purpose the device of a running mate was provided. Sections 10 and 11, providing for the assignment of new runing mates under circumstances which they in terms specify, are therefore to be regarded as limitations upon the application of the principle of equality of opportunity for promotion in the different branches of the service, and their language should not be extended to authorize a change of running mates in cases which are not covered by their terms.

It is therefore my opinion that the statute did not require or authorize the assignment to Commander Parsons of a new running mate, and that he was entitled, after his advancement to Commander, to retain the running mate previously assigned to him.

Respectfully,

WILLIAM D. MITCHELL.

To the SECRETARY OF THE NAVY.

PORTO RICO-VALIDITY OF BOND ISSUE

The proposed issue for the Government of Porto Rico of bonds in the sum of $150,000, the proceeds from the sale of which are to be used in the payment of the principal of, and interest on, bonds previously issued and sold for the construction, operation, and maintenance of the Isabela Irrigation System, being authorized by Congress and by Joint Resolution No. 12 of the Legislature of Porto Rico of July 3, 1929, and all 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 constitute valid and binding obligations of the People of Porto Rico.

DEPARTMENT OF JUSTICE,

December 9, 1930.

SIR: I have the honor to acknowledge receipt of your letter of December 1, 1930, stating that your Department has been authorized to sell for the account of the Government of Porto Rico bonds of the face value of $150,000, the proceeds of which are to be used in the payment of the principal of, and interest on, bonds previously issued and sold for the construction of the Isabela Irrigation System and of the costs of maintenance and operation of said system until such time as the funds necessary for such purposes shall be produced from assessment levied upon lands included within the irrigation district.

The proposed bonds are to be issued under authority contained in section 3 of the Act of Congress approved March 2, 1917. entitled "An Act to provide a civil government for Porto Rico and for other purposes," as amended by the Act of March 4, 1927, (c. 145, 39 Stat. 951, 953; c. 503, 44 Stat. 1418; U. S. C. Title 48, Sec. 741, 745), and Joint Resolution No. 12 of the Twelfth Legislature of Porto Rico, approved

July 3, 1929, a copy of which was enclosed with your letter. The validity of a prior instalment of bonds authorized by the same Joint Resolution was sustained in my opinion of November 27, 1929 (36 Op. 107).

You state that the bonds are to be issued and sold by you at the request of the Treasurer of Porto Rico, in coupon form, in the denomination of $1,000 each, to be dated January 1, 1931, and to bear interest at the rate of 42 per centum per annum, payable semiannually on January 1, and July 1, of each year, the principal thereof to be payable at the Treasury of the United States in series on July 1, 1970, and July 1, 1971. A copy of the form of the proposed bond is submitted with your letter and you request my opinion upon the legality of the issue.

Section 3 of the Act of March 2, 1917, as amended, 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 for which the good faith of the people of Porto Rico is pledged shall be counted."

* *

The documents submitted with your letter show that the aggregate assessed valuation of real and personal property in Porto Rico on June 30, 1930, amounted to $330,274,020, that on July 1, 1930, there were outstanding bonds of the Government of Porto Rico of the face value of $28,898,000, and that since the amendatory Act of March 4, 1927, 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, which must be added to the foregoing. In addition thereto, there are now being prepared for issuance bonds of the Government of Porto Rico of the face value of $500,000, to be dated July 1, 1930, which issue was the subject of my opinion of November 10, 1930, thus making a total of $30,759,500 to be considered when ascertaining the total bonded indebtedness which the Government of Porto Rico is authorized to incur. Therefore, it is apparent that the proposed issue will not increase the bonded indebtedness beyond 10 per centum of the aggregate of the assessed valuation, the maximum permitted by law. Sections 3 and 4 of Joint Resolution No. 12, supra, provide:

"SEC. 3. 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 bonds 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.

"SEC. 4. Said bonds shall be sold on such terms as may be most favorable to The People of Porto Rico and shall be issued in series so that the proceeds of the sale thereof may be available on the dates and in the amounts stated below: $750,000 on January 1, 1930 150,000 on January 1, 1931

150,000 on January 1, 1932

100,000 on January 1, 1933

100,000 on January 1, 1934"

It is further provided by the Joint Resolution that the bonds may be in coupon or registered form, in denominations of one thousand, five thousand and (or) ten thousand dollars, shall bear interest at a rate not exceeding five per centum per annum, payable semi-annually, and shall be redeemable in series on prescribed dates and in prescribed amounts; 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 with the approval of the Governor, under the limitations prescribed therein, shall have absolute charge and authority in connection with all matters relating to said bonds; that the proceeds from the sale of the bonds shall be devoted to the payment of the principal of and interest on the bonds theretofore issued and sold for the construction of the irrigation system, and of the costs of operation and maintenance of the system until sufficient funds for these purposes are realized from the assessments levied by the Act. For the payment of both principal and interest the good faith of the People of Porto Rico is irrevocably pledged.

There was transmitted with your letter a statement, signed by the Treasurer of Porto Rico, setting forth his determinations in those matters left to his discretion, and this has been approved by the Governor, in accordance with the Joint Resolution.

I find that all the statutory requirements regarding the issue and sale of the said bonds have been complied with and that the form of bond submitted is in compliance with the law and the determinations of the Treasurer, approved by the Governor. The form of bond properly recites that "under the provisions of section 3 of the Act of Congress, approved March 2, 1917, as amended by the Act of March 4, 1927, this bond is exempt from taxation by the Government of the United States, or by the Government of Porto Rico or of any political or municipal subdivision thereof, or by any State, Territory, or possession, or by any county, municipality, or other municipal sub-division of any State, Territory, or possession of the United States or by the District of Columbia."

It is therefore my opinion that the bonds, when issued in the amount and form proposed, will constitute valid and binding obligations of the People of Porto Rico.

Respectfully,

THOMAS D. THACHER,

Acting Attorney General.

To the SECRETARY OF WAR.