Page:United States Statutes at Large Volume 74.djvu/742

 PUBLIC LAW 86-682-8EPT. 2, 1960

[74 S T A T.

could not reasonably have been anticipated at the time the agreement was made. § 6424. Additional compensation for extension of route or additional service (a) The Postmaster General, in cases where the mail service would be improved, may obtain additional service or extend routes under contract. Extensions ordered during a contract term may not, in the aggregate, increase the one-way length of a route more than fifty miles. (b) The Postmaster General may not allow additional compensation under this section at a rate proportionately greater than the rate established by the contract involved. (c) When additional service is ordered, the Postmaster General shall state the sum allowed therefor in the order, and enter it in the records of the Department. He may not pay compensation for additional regular service rendered before he issues the order. (d) Subsection (c) of this section does not apply to service authorized under sections 6415, and 6422 of this title. § 6425. Release of contractors (a) The Postmaster General, in the interest of the postal service, may readvertise and make new contracts for the transportation of mail in order to release contractors and their sureties when— (1) a change is ordered in the service involving a material increase or decrease in the amount of service required to such an extent as to impose undue hardship on the contractor; (2) an abnormal or sustained increase in the quantity of mail develops during a contract period or after a bid has been submitted necessitating larger capacity equipment to maintain the service; (3) a change in schedule is ordered that will necessitate the contractor being away from the initial terminal for an excessively longer or shorter period than required in the advertised schedule; or (4) the contractor complies with subsection (b) of this section and it is found, after full investigation, that the compensation of the contractor is wholly inadequate and that the continuation of the contract would impose undue hardship upon the contractor. (b) A contractor who desires to be released from his contract under the fourth condition of subsection (a) of this section shall give 90 days' notice to the Postmaster General and waive any extra pay provided under his contract or by law as indemnity for cancellation. § 6426. Substitutions of sureties The Postmaster General, whenever he deems it consistent with the public interest, may accept or require new surety upon a contract for the transportation of mail in substitution for and release of an existing surety. § 6427. Contracts for transmission of mail by mechanical devices (a) The Postmaster General may enter into contracts, for terms of not more than ten years, for the transmission of mail by pneumatic tubes or other mechanical devices. (b) Except as otherwise provided in this section contracts for the transmission of mail hj pneumatic tubes or other mechanical devices are subject to the provisions of laws relating to the making of contracts for the transportation of mail. Advertisements shall state in general terms only the requirements of the service and shall be in the

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