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SECTION (E) (U. S. C., 1934 ED., SUPP. II, TITLE 39, SEC. 469D (E)) (e) In fixing and determining the fair and reasonable rates of compensation for air-mail transportation, the Commission shall give consideration to the amount of air mail so carried, the facilities supplied by the carrier, and its revenue and profits from all sources, and froin a consideration of these and other material elements, shall fix and establish rates for each route which, in connection with the rates fixed by it for all other routes, shall be designed to keep the aggregate cost of the transportation of air mail on and after July 1, [1938], 1940 within the limits of the anticipated postal revenue [therefrom] therefrom, as estimated by the Postmaster General, who shall make a report thereof to the Commission.

In arriving at such determination the Commission shall disregard losses resulting, in the opinion of the Commission, from the unprofitable maintenance of nonmail schedules, in cases where the Commission may find that the gross receipts from such schedules fail to meet the additional operating expense occasioned thereby: In fixing and determining such rates, if it shall be contended or alleged by the holder of an air-mail contract that the rate of compensation in force for the service involved is insufficient, the burden of establishing such insufficiency and the extent thereof shall be assumed by him. In no case shall the rates fixed and determined by the said Commission hereunder exceed the limits prescribed in section 3 (a) of this Act.

[The Commission is hereby authorized and directed, after having made a full and complete examination and audit of the books, and after having examined and carefully scrutinized all expenditures and purported expenditures, of the holders of the contracts hereinafter referred to, for goods, lands, commodities, and services, in order to determine whether or not such expenditures were fair and just, and were not improper, excessive, or collusive, in the cases of the eight air-mail contracts which are allowed, by a previous report of the Commission, the rate of 33cents per mile, under the provisions of the Act of June 12, 1934, on routes Numbered 7, 12, 13, 14, 19, 25, 27, and 32, and the Commission shall make a report to the Congress, not later than January 15, 1936, whether or not, in its judgment, a fair and reasonable rate of compensation on each of said eight contracts, under the other provisions and conditions of said Act, as herein amended, is in excess of 33% cents per mile; together with full facts and reasons in detail why it recommends for or against any claim for increase.]

SECTION 7 (A) (U. 8. C., 1934 ED., TITLE 39, SEC. 469E (A)) Sec. 7. (a) After December 31, 1934, it shall be unlawful for any person holding an air-mail contract to buy, acquire, hold, own, or control, directly or indirectly, any shares of stock or other interest in any other partnership, association, or corporation engaged directly or indirectly in any phase of the aviation industry, whether so engaged through air transportation of passengers, express, or mail, through the holding of an air-mail contract, or through the manufacture or sale of airplanes, airplane parts, or other materials or accessories generally used in air transportation, and regardless of whether such buying, acquisition, holding, ownership, or control is done directly, or is accomplished indirectly, through an agent, subsidiary, associate, affiliate, or by any other device (whatsoever) whatsoever, or to engage directly or indirectly in any phase of the aviation industry except the transportation of mail, passengers, and express, the training of personnel, the maintenance and repair of transportation and ground facilities and equipment necessarily incidental to such transportation, and the research and experimental work essential to the proper development of air transport service: Provided, That the prohibitions herein contained shall not extend to interests in landing fields, hangars, or other ground facilities necessarily incidental to the performance of the transportation service of such air-mail contractor, nor to shares of stock incorporations whose principal business is the maintenance or operation of such landing fields, hangars, or other ground facilities.

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SECTION 15 (U. 8. C., 1934 ED., SUPP. II, TITLE 39, SEC. 469M) SEC. 15. After June 30, 1935, no person holding a contract or contracts for carrying air mail on a primary route shall be awarded or hold any contract for carrying air mail on any other primary route, nor on more than three additional routes other than primary routes. In case one person holds several contracts covering different sections of one air-mail route as designated by the Postmaster General, such several contracts shall be counted as one contract for the purpose of the preceding sentence. It shall be unlawful for air-mail contractors, competing in parallel routes, to merge or to enter into any agreement, express or implied, which may result in common control or ownership. After June 30, 1935, no airmail contractor shall be allowed to maintain passenger or express service off the line of his air-mail route which in any way competes with passenger or express service available upon another air-mail route, except that off-line competitive service which has been regularly maintained on and prior to July 1, 1935, and such seasonal schedules as may have been regularly maintained during the year prior to July 1, 1935, may be continued if restricted to the number of schedules and to the stops scheduled and in effect during such period or season.

Upon application of the Postmaster General or of any interested air-mail contractor, setting forth that the general transport business or earnings upon an air-mail route are being adversely affected by any alleged unfair practice of another air-mail contractor, or by any competitive air-transport service supplied by an air-mail contractor other than that supplied by him on the line of his prescribed air-mail route, or by any service inaugurated by him after July 1, 1935, through the scheduling of competitive nonmail flights over an air-mail route, the Interstate Commerce Commission shall, after giving reasonable notice to the air-mail contractor complained of, inquire fully into the subject matter of the allegations; and if the Commission shall find such practice or competition or any part thereof to be unfair, or that such competitive service in whole or in part is not reasonably required in the interest of public convenience and necessity, and if the Commission shall further find that in either case the receipts or expenses of an air-mail contractor are so affected thereby as to tend to increase the cost of air-unail transportation, then it shall order such practice or competitive service, or both, as the case may be, discontinued or restricted in accordance with such findings, and the respondent air-mail contractor named in the order shall comply therewith within a reasonable time to be fixed in such order. If the Commission shall find after like application, notice, and hearing that the public convenience and necessity requires additional service or schedules and such service or schedules do not tend to increase the cost of air-mail transportation, it may permit the institution and maintenance of such schedules and prescribe the frequency thereof. The compensation of any air-mail contractor shall be withheld during any period that it continues to violate any order of the Commission or any provision of this Act. This Act shall not be construed as giving the Commission jurisdiction to consider any application for the establishment of any air-mail line or air-transport service, or to grant any such application on the grounds of public convenience and necessity, or for any other reason.

LEGISLATIVE APPROPRIATION BILL, 1938

MAY 5, 1937.-Ordered to be printed

Mr. DOCKWEILER, from the committee of conference, submitted the

following

CONFERENCE REPORT

[To accompany H. R. 5966)

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The committee of conference on the disagreeing votes of the two Houses on the amendments of the Senate to the bill (H. R. 5966) making "ppropriations for the legislative branch of the Government for the fiscal year ending June 30, 1938, and for other purposes, having met, after full and free conference have agreed to recommend and do recommend to their respective Houses as follows: That the Senate recede from its amendment numbered 42. That the House recede from its disagreement to the amendments of the Senate numbered 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, and 43, and agree to the same.

Amendment numbered 28: That the House recede from its disagreement to the amendment of the Senate numbered 28, and agree to the same with an amendment, as follows:

In lieu of the matter inserted by said amendment, insert the following: $2,460 and $280 additional so long as the position is held by the present incumbent; and the Senate agree to the same.

John F. DOCKWEILER,
J. O. FERNANDEZ,
JOHN M. HOUSTON,

D. LANE POWERS,
Managers on the part of the House.

MILLARD E. TYDINGS,
JAMES F. BYRNES,
ALVA B. ADAMS,
Pat McCARRAN,

FREDERICK HALE,
Managers on the part of the Senate.

STATEMENT OF THE MANAGERS ON THE PART OF THE HOUSE

The managers on the part of the House at the conference on the disagreeing votes of the two Houses on the a nendments of the Senate to the bill (H. R. 5966) making appropriations for the Legislative Branch of the Government for the fiscal year 1938, and for other purposes, submit the following statement in connection with the action of the conferees on such amendments:

Amendments nos. 1 to 35, inclusive (except amendment no. 28): Agrees to the Senate amendments in each case. All of these amendments involve matters under the jurisdiction of the Senate, the additional cost of which amounts to $16,613.78.

Amendment no. 28: Appropriates $2,740 for the salary of the chief telephone operator for the legislative establishment as proposed by the Senate instead of $2,460 as proposed by the House with a condition that the additional salary of $280 per annum shall be paid only so long as the position is held by the present incumbent.

Amendment no. 36: Appropriates $2,640 for the salary of the assistant clerk and stenographer for the Joint Committee on Printing as proposed by the Senate instead of $2,400 as proposed by the House.

Amendment no. 37: Corrects a total.

Amendment no. 38: Appropriates $103,107 under the heading of “Capitol Grounds”, as proposed by the Senate, instead of $101,278, as proposed by the House, the increase being for installation of additional traffic lights.

Amendment no. 39: Agrees to the Senate amendment striking out the House provision prohibiting the use of funds appropriated for the legislative garage for the maintenance of parking space for privately owned automobiles not the property of a Senator, Representative, Delega ve, or Resident Commissioner.

Amendment no. 40: Appropriates $292,069 for maintenance of the Senate Offico Building, as proposed by the Senate, instead of $242,069, as proposed by the House.

Amendment no. 41: Appropriates $947,870, as proposed by the Senate, instead of $940,370, as provided by the House, the increase being for repairs of boilers and machinery at the Capitol power plant.

Amendment no. 42: Appropriates $100,000, as proposed by the House, for the purchase of books, periodicals, etc., under the Library of Congress, instead of $110,000, as provided by the Senate.

Amendment no. 43: Agrees to language inserted by the Senate requiring certain estimates of cost of multilith, multigraph, and work produced on similar equipment to be included in the Budget statements following the appropriations for printing and binding.

JOHN F. DOCKWEILER,
J. O. FERNANDEZ,
JOHN M. HOUSTON,

D. LANE POWERS,

Managers on the part of the House.

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