Page:United States Statutes at Large Volume 49 Part 1.djvu/661

 616 74Th CO NGRESS. SESS. I. CH. 530. AUGUST 14, 1935. schedules on the contract route or routes, or at a lesser rate if agreed to by the contractor and the Postmaster General, and he may utilize therefor any scheduled passenger or express flight of the contractor between the terminal points or over a portion of any route whenever .Proviso. the needs of the service may so require : Provided, That the Post- Nonmail schedule or plane. master General may, upon application by an air-mail contractor, authorize said contractor for his own conveni ence to transp ort a i r mail on any non mail schedule o r plane, with t he understandi ng that the weights of mail so transported will be credited to regular mail schedules and no mileage compensation will be claimed therefor and the miles flown in such cases will not be computed in the annual aggregate of flown mileage authorized under this section ." Vol. 48, p. 935. SEC. 5 . Subsection (a) of section 6 of such Act is amended to read as follows Interstate Commerce " SEC. 6 (a) The Interstate Commerce Commission is hereby com mis si on to fix co m- pens ation rates. empowered and directed, after notice and hearing, to fix and determine by order, as soon as 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 con- nected 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 change d by the said Commission afte r due notice an d hearing, Conflic ting clauses and so much of subsection (g) of section 3 of this Act as is in conflict repealed. 48, p . 934. with this section is hereby repealed." Vol.48,p.936 . SEC . 6 . Subsection (e) of section 6 of such Act is amended by adding at the end thereof the following Determining fa ir "In arriving at such determination the Commission shall disregard tran sportation rates. Losses resulting from losse s resu lting, in the opini on of the Com missio n, fro m the unprof it- maintenance of non- mail schedules. able mainten ance of nonmai l schedules, in cases where th e Commis- sion may find that the gross receipts from such schedules fail to meet the additional operating expense occasioned thereby. In fixing and Burden of proof when determining such rates, if it shall be contended or alleged by the insufficiency of com - pens ation rate alle ged. holder of an air-mail contract that the rate of compensation in force for the service involved is insufficient, the burden of establishing such Rate restriction. 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. Report to Congres s. " The Commission is hereby autho rized and direc ted, after hav ing 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 determin e whether or no t such expendi tures 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 331/3 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 con- tracts, under the other provisions and conditions of said Act, as herein amended, is in excess of 331/3 cents per mile ; together with full facts and reasons in detail why it recommends for or against any claim for increase ."