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practicable and from time to time, the fair and reasonable rates of compensation within the limitations of this Act for the transportation of air mail by airplane and the service connected therewith over each air-mail route, and over each section thereof covered by a separate contract, prescribing the method or methods by weight or space, or both, or otherwise, for ascertaining such rates of compensation and to publish the same, which shall continue in force until changed by the said Commission after due notice and hearing, and so much of subsection (g) of section 3 of this Act as is in conflict with this section is hereby repealed."

SEC. 6. Subsection (e) of section 6 of such Act is amended by adding at the end thereof the following:

"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 33 cents 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."

SEC. 7. Subsection (b) of section 6 of such Act is amended to read as follows: "(b) The Interstate Commerce Commission is hereby directed at least once in each calendar year from the date of the award of any contract to examine the books, accounts, contracts, and entire business records of the holder of each air-mail contract, and to review the rates of compensation being paid to such holder in order to be assured that no unreasonable profit is being derived or accruing therefrom, and in order to fix just rates. In determining what may constitute an unreasonable profit the said Commission shall take into consideration the income derived from the operation of airplanes over the routes affected, and in addition to the requirements of section 3 (f) of this Act, shall take into consideration all forms of expenditures of said companies in order to ascertain whether or not the expenditures have been upon a fair and reasonable basis on the part of said company and whether or not the said company has paid more than a fair and reasonable market value for the purchase or rent of planes, engines, or any other types or kind, or class, or goods, or services, including spare parts of all kinds, and whether or not the air-mail contracting company has purchased or rented any kind of goods, commodities, or services from any individuals who own stock in or are connected with the said contracting companies or has purchased such goods and services from any company or corporations in which any of the individuals employed by or owning stock in the air-mail contracting company have any interest or from which such purchase or rents any of the employees or stockholders of air-mail contracting companies would be directly or indirectly benefited. Within thirty days after a decision has been reached upon such review by the Interstate Commerce Commission touching such profit a full report thereof shall be made to the Postmaster General, to the Secretary of the United States Senate, and to the Clerk of the House of Representatives."

SEC. 8. The first sentence of subsection (c) of section 6 of such Act is amended to read as follows:

"Any contract (1) let, extended, or assigned pursuant to the provisions of this Act, and in full force and effect on March 1, 1935, or (2) which may be let, subsequent to such date pursuant to the provisions of this Act and shall have been satisfactorily performed by the contractor during its full initial period, shall, from and after such date, or from and after the termination of its initial period,

as the case may be, be continued in effect for an indefinite period, and compensation therefor, on and after March 1, 1935, during such period of indefinite continuance, shall be paid at the rate fixed by order of the Commission under this Act, subject to such additional conditions and terms as the Commission may prescribe, upon recommendation of the Postmaster General, which shall be consistent with the requirements and limitations contained in section 1 of this Act; but any contract so continued in effect may be terminated by the Commission upon sixty days' notice, upon such hearing and notice thereof to interested parties as the Commission may determine to be reasonable; and may also be terminated in whole or in part, by mutual agreement of the Postmaster General and the contractor, or for cause by the contractor upon sixty days' notice."

SEC. 9. Subsection (d) of section 7 of such Act is amended to read as follows: "(d) No person shall be qualified to enter upon the performance of, or thereafter to hold an air-mail contract (1) if, at or after the time specified for the commencement of mail transportation under such contract, such person is (or, if a partnership, association, or corporation, has a member, officer, or director, or an employee performing general managerial duties, that is) an individual who has theretofore entered into any unlawful combination to prevent the making of any bids for carrying the mails: Provided, That whenever required by the Postmaster General or Interstate Commerce Commission the bidder shall submit an affidavit executed by the bidder, or by such of its officers, directors, or general managerial employees as the Postmaster General or Interstate Commerce Commission may designate, sworn to before an officer authorized and empowered to administer oaths, stating in such affidavit that the affiant has not entered nor proposed to enter into any combination to prevent the making of any bid for carrying the mails, nor made any agreement, or given or performed, or promised to give or perform, any consideration whatever to induce any other person to bid or not to bid for any mail contract, or (2) if it pays any officer, director, or regular employee compensation in any form, whether as salary, bonus, commission, or otherwise, at a rate exceeding $17,500 per year for full time: Provided further, That it shall be unlawful for any officer or regular employee to draw a salary of more than $17,500 per year from any air-mail contractor, or a salary from any other company if such salary from any company makes his total compensation more than $17,500 per year."

SEC. 10. Section 10 of such Act is amended to read as follows:

"SEC. 10. All persons holding air-mail contracts shall be required to keep their books, records, and accounts under such regulations as may be promulgated by the Postmaster General, and he is hereby authorized, if and when he deems it advisable to do so, to examine and audit the books, records, and accounts of such contractors, and to require such contractors to submit full financial reports in such form and under such regulations as he may prescribe.

"Whenever an audit of the books, records, or accounts of any air-mail contractor is made by the auditors of the Interstate Commerce Commission, a full and complete report thereof shall be made to the Post Office Department within thirty days, and that report shall contain all instances in which the contractor has failed to comply with any of the provisions of the uniform system of accounts prescribed by the Post Office Department; and the Postmaster General shall, upon request, have at all times access to the records and reports of the Commission concerning air mail and air-mail contracts. There is authorized to be used from the appropriations for Contract Air Mail Service for the fiscal year ending June 30, 1936, a sum not in excess of $25,000 for the purpose of auditing the books and records of air-mail contractors by the Post Office Department."

SEC. 11. Section 13 of such Act is amended to read as follows:

"SEC. 13. It shall be a condition upon the holding of any air-mail contract that the rate of compensation and the working conditions and relations for all pilots and other employees of the holder of such contract shall conform to decisions heretofore or hereafter made by the National Labor Board, or its successor in authority, notwithstanding any limitation as to the period of its effectiveness included in any such decision heretofore rendered. This section shall not be construed as restricting the right of any such employees by collective bargaining to obtain higher rates of compensation or more favorable working conditions and relations."

SEC. 12. Section 15, as amended, of such Act is amended to read as follows: "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 rcutes 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-mail transportation, then it shall order such practice or competi tive 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.

SEC. 13. Section 6 of such Act is hereby amended by adding at the end thereof a new subsection to read as follows:

"(f) Each holder of an air-mail contract shall file with the Interstate Commerce Commission, in such form as the Commission shall require, on July 1st and January 1st of each year, a full statement of all free transportation hereafter furnished during the preceding semiannual period to any persons, including in each case the regular tariff value thereof, the name and address of the donee, and a statement of the reason for furnishing such free transportation." Approved, August 14, 1935.]

PUBLIC RESOLUTION No. 24 OF THE SEVENTY-FOURTH CONGRESS MAKING FINAL DISPOSITION OF RECORDS, FILES, AND OTHER PROPERTY OF THE FEDERAL AVIATION COMMISSION

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RESOLVED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE UNITED STATES OF AMERICA IN CONGRESS ASSEMBLED, THAT INASMUCH AS THE TEMPORARY FEDERAL AVIATION COMMISSION AUTHORIZED BY THE SEVENTY-THIRD CONGRESS (S. 3170, PUBLIC DOCUMENT NUMBERED 308) "For the purpose of MAKING AN IMMEDIATE STUDY AND SURVEY, AND TO REPORT TO CONGRESS NOT LATER THAN FEBRUARY 1, 1935, ITS RECOMMENDATIONS OF A BROAD POLICY COVERING ALL PHASES OF AVIATION AND THE RELATION OF THE UNITED STATES THERETO. * * *"" HAS COMPLETED ITS STUDIES AND MADE ITS REPORT TO CONGRESS, THAT THE SAID FEDERAL AVIATION COMMISSION IS HEREBY AUTHORIZED AND DIRECTED TO CLOSE ITS RECORDS, FILES, AND ACCOUNTS AT THE EARLIEST POSSIBLE DATE AND NOT LATER THAN JUNE 15, 1935, AND TO DELIVER ALL SUCH RECORDS, FILES, AND OTHER PROPERTY TO THE INTERSTATE COMMERCE COMMISSION FOR THE USE AND BENEFIT OF THE INTERSTATE COMMERCE COMMISSION AND/OR OTHER GOVERNMENT AGENCIES THAT MAY BE CONCERNED WITH THE FEDERAL CONTROL OR SUPERVISION OF AVIATION AND/OR OTHER TRANSPORTATION FACILITIES.

PENDING THE TIME THAT FINAL DISPOSITION IS MADE OF THE RECORDS AND FILES THEY SHALL BE OPEN TO MEMBERS OF CONGRESS AND PERSONNEL WILL BE AVAILABLE TO JUNE 15, 1935, TO FURNISH INFORMATION RELATIVE TO THE RECORDS AND FINDINGS OF THE COMMISSION AND TO APPEAR BEFORE INTERESTED CONGRESSIONAL COMMITTEES.

APPROVED, JUNE 10, 1935.

SECTION 3964 OF THE REVISED STATUTES (U. S. C., TITLE 39, SEC. 481)

SECTION 481. WHAT ARE POST ROADS

THE FOLLOWING ARE ESTABLISHED POST ROADS:

ALL THE WATERS OF THE UNITED STATES, DURING THE TIME THE MAIL IS CARRIED

THEREON.

ALL RAILROADS OR PARTS OF RAILROADS AND ALL AIR CARRIERS WHICH ARE NOW OR HEREAFTER MAY BE IN OPERATION.

ALL CANALS, DURING THE TIME THE MAIL IS CARRIED THEREON.

ALL PLANK ROADS, DURING THE TIME THE MAIL IS CARRIED THEREON.

THE ROAD ON WHICH THE MAIL IS CARRIED TO SUPPLY ANY COURTHOUSE WHICH MAY BE WITHOUT A MAIL, AND THE ROAD ON WHICH THE MAIL IS CARRIED UNDER CONTRACT MADE BY THE PO TMASTER GENERAL FOR EXTENDING THE LINE OF POSTS TO SUPPLY MAILS TO POST OFFICES NOT ON ANY ESTABLISHED ROUTE, DURING THE TIME SUCH MAIL IS CARRIED THEREON.

ALL LETTER-CARRIER ROUTES ESTABLISHED IN ANY CITY OR TOWN FOR THE COLLECTION AND DELIVERY OF MAIL MATTERS. (Act of June 8, 1872, c. 335,

Secs. 200-205, 17 Stat. 308, 309.)

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