Page:United States Statutes at Large Volume 49 Part 1.djvu/662

 74TH CONGRESS. SESS. I. CH. 530. AUGUST 14, 1935. 617 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 busi- ness 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 th erefrom, and in order to fix jus t rates . In de term ining 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 sec- tion 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 th e air- mail c ontrac ting c ompany has p urchas ed or rented any k ind 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 ai r-mail contr acting compa ny hav e any intere st or from w hich s uch 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 re view b y the Inters tate C ommerc e Comm ission touch ing su ch pro fit 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 Ho use of Repre sentat ives. " SEC. 8 . The first sentence of subsection (c) of section 6 of such Act is amended to read as follows "Any c ontrac t (1) let, e xtende d, or assign ed pur suant to the pro- visions of this Act, and in full force and effect on March 1, 1935, or (2) which may b e let subseq uent t o such date pursua nt to the pr o- visions 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, dur ing s uch period of indefinite continuance, shall be paid at the rate fixed by order of the Commission under this Act, subject to such additional co nditio ns and terms as th e Comm ission may p rescri be, up on rec om- mendation 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 mu tual a greeme nt of the Po stmast er Gen eral a nd the contr actor, 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 per son shal l be qua lified t o enter upon the perfor mance of , or thereaf ter to h old an a ir-mail contract (1) if, at or after th e time specified for the commencement of mail transportation under such Vol.48,p.935. Examination of con- tractors' records ; pur- pose. Unreasonable profit ; factors to be consid- ered. Report to be sub- mitted . Vol.48,p.935. Extensions of co n- tracts if satisfactorily perform ed. Ra tes an d condi tions. Termination, upon 60 days' notice. Not ice and h earing. Vol. 48, p. 936. Air mail contractors . Qualifications and sala ries of officers, etc ., of.