only upon agreement in writing by the applicant to abide by the following provisions:

(a) The certificate of authority will authorize the person designated thereon to sell or to manufacture and sell the ar

ticles enumerated in § 7.3.

(b) Certificates of authority to sell or to manufacture and sell will be valid for 3 years from date of issue. Applications for renewals should be filed 60 days prior to expiration of certificate.

individual, firm, or corporation, and ad(c) A certificate is valid only for the dress stated thereon. Any change which

(7) The lapel button to be worn as occurs should be immediately reported so evidence of military service.

that a new certificate may be issued.*†

(8) Clasps and bronze stars pertinent [Par. 6] to the Victory Medal.

(9) Badges and bars awarded by the War Department for marksmanship. gunnery, bombing, etc.

(10) Aviation badges.

§ 7.6 Uniformity of design. (a) In order to secure uniformity of design any individual, firm, or corporation authorized under the regulations in this part to manufacture and sell any of the

(11) War Department General Staff articles listed in § 7.3 must obtain from identification.

the United States Mint at Philadelphia,

(12) Identification badge, Organized Pennsylvania, the proper working dies for

Reserves.

(13) Fourragere.

(14) Rosette for Medal of Honor.

(15) Heroic size decorations or service medals for grave markers only, no smaller than twice the size of the fullsize devices.

(b) Variation from any of the prescribed or authorized forms and sizes is not permitted, nor is it permitted to sell or to manufacture and sell any device not enumerated in (a) above which incorporates any distinctive part of any of the articles covered by the Act cited in § 7.1.* [Par. 4]

Application

service medals, Victory buttons, aviation badges, and other articles for which dies have been prepared by the mint.

(b) Articles for which dies are not obtainable from the mint must conform to regulations and specifications issued by the War Department.*† [Par. 7]

$7.7 Sales, to whom authorized-(a) licas (also called miniatures), the fourIndividuals. (1) Sales of miniature repragere, lapel buttons, clasps, bronze stars, and ribbons, listed in § 7.3 will be made to purchase by exhibiting the decoration only to persons able to prove their right or service medal awarded by the War Department or the certificate of award or official copy of citation order.

§ 7.4 required. Individuals, firms, or corporations desiring (2) Sales of service medals, War Deto enter into the sale or manufacture and partment General Staff identification, sale of articles covered by the regulations aviation badges, badges for marksmanin this part should address The Adjutant ship, gunnery, bombing, etc., will be made General, Washington, D. C., who will fur-only to a person able to prove that he is nish necessary agreement form and detailed instructions. Applicants should state whether authority for sale only or for manufacture and sale is desired.*† [Par. 5]

entitled to the service medal or badge desired by exhibiting some official paper or document, such as discharge certificate or true copy thereof, a letter from an officer of the War Department, or § 7.5 Certificate of authority. A cer- other official document, containing defitificate of authority to sell or to manu- nite proof of service or authority to wear. facture and sell articles covered by the (3) Should the intending purchaser be regulations in this part will be granted | unable to furnish the evidence required,

he should be directed to make application to The Adjutant General for the required proof.

§ 9.1 General. (a) The provisions of this section apply only in time of war. (b) Officers and men will avoid talk or discussion of military matters while in any public place and will view with suspicion any person asking questions about military subjects or discussing such topics where there is even a remote possibility that the information may reach the enemy.

(b) Dealers, individuals, firms, or corporations authorized under the provisions of the regulations in this part to sell to individuals may sell to dealers upon production of proper certificate of authority for the dealer to make sales in accordance with the provisions of the regulations in this part. Dealers must (c) All persons connected with the purchase from authorized manufacturers military service who receive information or dealers.*† [Par. 8] of proposed inland or overseas move

(d) (1) The names of organizations, ports of embarkation, or ships to be used in troop movements, or the date of departure, arrival, or embarkation will not be disclosed.

(2) When it is necessary to advise relatives or other civilians of approaching departure, persons connected with the military service will not convey any information in regard to rail routing, probable time and date of departure from or arrival at any station, names of ships, ports of embarkation, or the destination of organizations.

$7.8 Violations; revocation of author-ments of organizations, detachments, or ity; penalties. A certificate of authority individuals are forbidden to make public may be refused, revoked, or renewal the details of such movements. thereof denied, upon proof of intentional violation of the Act cited in § 7.1. Such violations are subject also to the penalties described in the Act. A repetition or continuation of a violation after official notice thereof will be deemed prima facie evidence of intentional violation. In the event of revocation or nonrenewal of a certificate of authority, permission may be granted, upon application, for disposal within a reasonable period of any articles not in conflict with the Act.* [Par. 9] § 7.9 Government contracts and agreements not affected. None of the foregoing provisions will be construed so as to prohibit private individuals, firms, and corporations, with whom contracts have been or may be made for the purpose, from manufacturing for and selling to the Government any of the decorations, service medals, badges, buttons, etc., awarded by the War Department.*+ [Par. 10]

(e) In time of war commanding officers are responsible that their commands are instructed in the provisions of this section of the regulations and in the dangers involved in leakage of information concerning troop movements. (R.S. 161; 5 U.S.C. 22) [Par. 63, AR 380-5, June 10, 1939; 4 F.R. 2944]

§ 9.2 Rail movements. The marking of cars or baggage to indicate an oversea destination, the date of departure, or the name of the ship is forbidden. Baggage for oversea shipment will be addressed to the commanding officer of the port or, where a port of embarkation or debarkation has been established, to the port storage officer. (R.S. 161; 5 U.S.C. 22) [Par. 64, AR 380-5, June 10, 1939; 4 F.R. 2944]

§ 9.3 Embarkation—(a) Admission to piers. (1) All persons not on official business will be excluded from the piers at all times.

(2) Only official photographers will be permitted to take cameras within the limits of the pier or overseas.

(3) Arrangements will be made to have (plies will be moved under cover of darkfarewells completed before arrival at the ness, whenever possible. If vessels must piers. No members of families, relatives, be moved during daylight, the comor friends of those sailing will be allowed manding officer of troops will hold his at the piers or thereabouts on the day men below deck or within deck superof sailing. Should any such persons be structures to prevent attracting attenfound there, they will be ordered away summarily by the guard and report will tion. Signals by flags or whistles should be made of the officer or enlisted man be limited to those necessary for safe with whom they were seen or with whom navigation. (R.S. 161; 5 U.S.C. 22) they attempted to communicate. [Par. 66, AR 380-5, June 10, 1939; 4 F.R. 2945]

(b) Movement of troops. At ports of embarkation troop movements will be made insofar as practicable without attracting undue attention. Troops will be held at ease, bands will not play, colors will be cased, and no noise of any kind will be permitted. (R.S. 161; 5 U.S.C. 22) [Par. 65, AR 380-5, June 10, 1939; 4 F.R. 2944]

§ 9.5 Overseas. After arrival overseas no information will be given concerning names or destinations of organizations, names of vessels, data concerning convoys, routes pursued, measures taken to avoid attack, dates of arrival, debarkation, or departure, or number of troops or kind of cargoes carried. (R.S. 161; § 9.4 Movements of vessels. In har-5 U.S.C. 22) [Par. 67, AR 380-5, June bors, vessels loaded with troops or sup- 10, 1939; 4 F.R. 2945]

CHAPTER III-CLAIMS AND ACCOUNTS

PART 35-PAYMENT OF BILLS AND the delivery of supplies or rendition of service, except as otherwise provided by law. (See R.S. 3648; 31 U.S.C. 529.)

ACCOUNTS

PAYMENTS UNDER CONTRACT, FORMAL AND Purchases of coupon books for gasoline

INFORMAL

$ 35.5 To whom payment may be made-(a) Other than lowest bidder. Payment may be made under award to other than lowest bidder where the evidence clearly shows that such award has been made to the lowest responsible bidder complying with conditions of the invitation to bidders. Doubtful cases will be submitted to the Chief of Finance for consideration. (See § 81.13.)

(b) Other than original contractor (1) General rule. Section 3737, Revised Statutes (41 U.S.C. 15), prohibits the transfer of a contract with the United States, and section 3477, Revised Statutes (31 U.S.C. 203), prohibits the assignment of a claim against the United States prior to the issuing of a warrant for payment thereof. (See §§ 36.8 (a) and 81.20.)

(2) Exceptions-(i) Transferee of entire business. Where the entire business of a contractor is sold, the transfer is not such an assignment as is prohibited by sections 3477 and 3737, Revised Statutes, and payment to the transferee is authorized upon compliance with contract terms and the furnishing of a waiver from the original contractor. (See 9 Comp. Gen. 72.)

(ii) Successor. The merger of a corporation or a change in the corporate name does not operate to annul existing contracts between such corporation and the Government and is not of itself a change in the contractor's responsibility. (See 4 Comp. Gen. 184) (R.S. 161; 5 U.S.C. 22) [Par. 3, AR 35-6040, Mar. 15, 1939; 4 F.R. 1597]

§ 35.6 When payment may be madeadvances of public money prohibited. Section 3648, Revised Statutes (31 U.S.C. 529), prohibits payments in advance of

and oil are within the prohibition and payment may not be made until the supplies are actually furnished. (See 8 Comp. Gen. 454.) (R.S. 161; 5 U.S.C. 22) [Par. 4, AR 35-6040, Mar. 15, 1939; 4 F.R. 1598]

§ 35.7 What payment is authorized; general-(a) Payments under contracts for indefinite amounts not authorized. Contracts containing provisions obligating the United States to pay unlimited or indefinite amounts are not authorized, but requirements may be stated as accurately as possible, with provisions for increases or decreases not exceeding given percentages. (See 5 Comp. Gen. 450; 8 Comp. Gen. 354.)

(b) Payments under contracts for nonpersonal services-(1) Method of procurement. Nonpersonal services will be engaged in accordance with the requirements of the laws governing the procurement of supplies. (See §§ 81.1-81.9 and §§ 81.32 and 81.33.)

(2) Distinction between personal and (See 9 Comp. Gen. nonpersonal services. 169 and par. 1, AR 5-100.1)

(3) Payment for fractional parts of months. The Act of June 30, 1906 (34 Stat. 763; 5 U.S.C. 84), Providing, That, for pay purposes, each month shall be regarded as having 30 days, relates only to compensation of officers and employees of the United States for personal services, and has no application to contracts for nonpersonal service, as for the hire of a wagon and team, payment for which for a fractional part of a month should be on the basis of the actual number of days in the month. (See 22 Comp. Dec. 711.)

(4) Forms of agreements for services of a continuous nature. Services of a

1 Administrative regulations of the War Department relating to definitions of supplies.

continuous nature must be supported by | merchandise will be drawn payable to a formal contract when the yearly and forwarded to the collector or deputy amount exceeds $500, or an informal collector of customs at the port where agreement when the yearly amount is entry was made. $500 or less, same to be numbered and filed in the General Accounting Office.

(See §§ 81.14-81.20 and 6 Comp. Gen. 642.) When service is temporary, notation to that effect should appear on the voucher.

(2) Federal, State, county, and munici

pal taxes. (See §§ 81.1-81.9.)

(See

(d) Modification of contracts. $ 81.18.) (R.S. 161; 5 U.S.C. 22) [Par. 5, AR 35-6040, Mar. 15, 1939; 4 F.R. 1598]

§ 35.8 Adjustments—(a) Mistakes in bids. Where a contractor claims payment in addition to the contract price on the ground of a mistake in bid, the contract price only will be paid and any protest on the part of the contractor will be forwarded through the Chief of Finance to the General Accounting Office. (See 8 Comp. Gen. 397.)

(5) Rates effective "until further notice". In the absence of competition there is no objection to entering into agreements for public utilities services at stipulated rates "until further notice," without necessity for new agreements or annual renewals except to cover changes in rates or service, unless the interests of the Government require otherwise in a particular case, the original agreements and all changes to be filed in the General Accounting Office, and the vouchers to cite the agreement involved and bear a statement by a responsible officer of the public utility concerned as to the rates charged. Payment may not be made for service in an amount stipulated in a substitute agreement which is in excess of the rate stated in the original contract, effective "until further notice," prior to the date of actual re-mercial rates, the contractor is not enceipt of the substitute agreement by the proper administrative representative of the Government. (See 15 Comp. Gen. 920; MS. Comp. Gen. A-65231, Dec. 15, 1936.)

(c) Payment of taxes and duties on purchases by Government-(1) Customs duties on foreign purchases. In the absence of specific legislation authorizing purchases made by the Government to come into the United States free of customs duty, the particular appropriation for a purchase is properly chargeable with the amount of the customs duty assessed thereon by the United States, and the fact that the importation came through in a certain fiscal year does not require it to be considered as a service rendered in that fiscal year so as to be charged against an appropriation in the fiscal year in which the importation was made instead of the appropriation involved in the particular purchase. (See 26 Comp. Dec. 610 and par. 8, AR 5-340.1) Checks issued in payment of customs duties on imported

(b) Transportation costs—(1) Savings in freight charges. Shipment from a point nearer destination than the f. o. b. point named in a contract does not entitle the contractor to the saving in freight charges. (See 3 Comp. Gen. 56.) where a contract provides for delivery f. o. b. destination, and shipment is made on Government bill of lading, which entitles the Government to certain landgrant deductions from the regular com

titled to the benefits obtained by the Government on account of said landgrant deductions. (See MS. Comp. Gcn. A-30249, Apr. 8, 1930.)

(2) Adjustments by General Accounting Office. Where contractors are permitted to make shipments of supplies from points other than those named in the contract, which contract, in pursuance of advertisement for bids to that effect, permits such procedure and provides an apportionment feature for excess transportation costs, the Comptroller General requires that final payment for the supplies be made by the General Accounting Office in order that adjustments of freight charges may be taken into consideration. (See 8 Comp. Gen. 500.)

For procedure and exceptions, see par. 33, AR 5-200.2

(c) Coal contracts-(1) Changes in wage scale. Standard Government forms of coal contracts provide for adjustment of prices on account of increases or de

2 Administrative regulations of the War 1 Administrative regulations of the War De- Department relating to transportation partment relating to duty. charges involved in purchases.