Evening star., 1934-06-18

feet for an indefinite period, subject
to any reductions in rate Of payment
or additional conditions and terms
which may be prescribed by the
I. C. C. The contract may be term
mated by the I. C. c. or by the con-
tractor upon 60 days notice.
The Interstate Commerce Commits
sion is authorized to proceed under
the terms of the act of 1916 relating
to adjustment of mail rates for rail-
roads in aScertaining the rates for
transportation of airmail. This pro-
vision grants power to keep, examine
and audit books, records and accounts
of airmail contracts and to employ
power to administer oathS. examine
witnesses and receive evidence.
One of the most important provi-
sionS of the new law is a stipulation
that the Interstate Commerce Com
mission, in dealing with rates of pay.
shall direct its efforts to reducing the
aggregate cost of the transportation
of airmail to within the limits of the
airmail postal revenue by July l,
1888. 1t is the object of this provi-
sion to wipe out within the next four
years the last vestige of an airmail
subsidy and to make the airmail
service an entirely self-supporting,
If not a revenue producing branch OF
the postal service.
Bars Especial Conferees."
After December 81 next it will be
unlawful for any person holding an
airmail contract to hold or acquire,
directly or indirectly, any interest in
any other company engaged in any
phase of the aviation industry, except
as regards landing fields. hangers or
other ground facilities necessary to
the performance of his contract. 1t
is also provided that the presence in
the company of an airmail contract
holder, of an officer or director affili-
ated with any other phase of the
aviation industry shall be cause for
dlScontlnuance of the contract. The
law would bar from holding an air
mail contract any person who at
tended the now famous "spoilS con-
ference in the office of former Post
master General Walter F. Brown.
Under the new law all airmail con-
tractors are required to make afh-
davit that none of their officers or
employees participated in the spoils
conference or in any other 'unlaW
full combination to prevent the max
ing of any bids for carrying the
mails" The Government also must
be advised if any officer, director OF
employe or any airmail contract
company is paid at a rate of more
than Sl7,500 a year for full-time
duty.
The new law stipulates that any
company alleging a claim against the
United States by reason of the an
nulment of the2 airmail contracts
last February may prosecute such
claim in the Court of Claims, pro-
vided suit is brought within a year
following the passage of the new air.
mail law.
Each person desiring to bid on an
airmail contract is required to furn-
ish in his bid a list of all the stock
holders holding more than 5 per cent
of the entire capital stock in his
company; the names of the directors
and a statement covering financial
Set-up.
Before the establishment and
maintenance of an airmail route the
Postmaster General is required to
notify the Secretary of Commerce
who is directed to examine into the
character of equipment to be used
on the route and certify to it's ade-
quacy. The Department of Commerce
is required to examine the speed, load
capacity and safety features and
safety devices on airplaneS to be used
on the route.
The Secretary of Commerce is d.
rected to prescribe the maximum fly
ing hours of pilots on airmail lines
and safe operation methods on such
lines. He is authorized to approve
agreements between airmail operating
companies and their pilots and me-
chanics for retirement benefits to
these employees.
1t is condition upon the award
ing of any airmail contract that the
rate of compensation and the work.
ing conditions and relations for all
pilots, mechanics and laborers of the
company shall conform to decisions
of the National Labor Board. 1t Is
stipulated that this section of the law
shall not be construed as restricting
the right of collective bargaining on
the part of any such employees"
The Federal Radio Commission is
directed by the new airmail law to
give equal facilities in the ALLEGATION
of radio frequencies in the aeronauti-
cal band to those airplanes carrying
mail and/or passengers during the
time the contract is in effect"
Canadian Line Authorized.
The Postmaster General is en-
powered to provide airmail service to
Canada within $50 miles of the inter-
national boundary line and to au-
thorize the carrying of either foreign
or domestic mail over these routes.
The new law contains rigid penal
ties for fraudulent activities on the
part of airmail contractors or any
person seeking to prevent full and
free competition in the awarding of
any airmail contract. Maximum pen
alties of $4,000 fine or five years
Imprisonment or both are fixed for
such types of offenSes enumerated
in the act.
The President is empowered by the
law to create a commission of five
members to study the entire national
aviation situation and to recommend
a national policy to Congress not later
than February l next. Members of
this commission not already in the
service of the United States are to be
paid at not exceeding the rate of
compensation of a member of Con-
gress. A secretary is provided for the
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