PROVIDING FOR A STENOGRAPHIC GRADE IN THE OFFICE OF CHIEF CLERKS AND SUPERINTENDENTS IN THE RAILWAY MAIL SERVICE

MAY 4, 1937.—Committed to the Committee of the Whole House on the state of the Union and ordered to be printed

Mr. TAYLOR of South Carolina, from the Committee on the Post Office and Post Roads, submitted the following

REPORT

[To accompany H. R. 6341]

The Committee on the Post Office and Post Roads, having had under consideration the bill (H. R. 6341) to provide for a stenographic grade in the office of chief clerks and superintendents in the Railway Mail Service, report the same back to the House with the recommendation that the bill do pass.

This bill merely provides for a stenographic grade in the Railway Mail Service, limiting promotions under such assignment to grade 2, except that in division superintendents' offices one grade 3 stenographer may be appointed.

This legislation is urged by the Post Office Department, as indicated in the following letter:

POST OFFICE DEPARTMENT, Washington, D. C., February 15, 1937. Referring to H. R. 4361, a bill to provide for a stenographic grade in the offices of Chief Clerk and Superintendent in the Railway Mail Service, I wish to state that the administration of the Postal Service would be aided by the enactment of this measure provided certain changes were made therein. I am therefore submitting to you herewith a copy of the proposed substitute bill (later introduced as H. R. 6341) with the recommendation that your committee give it favorable

consideration.

Sincerely yours,

W. W. HOWES, Acting Postmaster General.

CHANGES IN EXISTING LAW

In compliance with paragraph 2a of rule XIII of the Rules of the House of Representatives, changes in existing law made by the bill H. R. 6341 are shown as follows: (Existing law proposed to be omitted is inclosed in black brackets, new matter is printed in italics, existing law in which no change is proposed is shown in roman.)

UNITED STATES CODE, TITLE 39, SECTION 621

Clerks assigned to the office of division superintendent or chief clerk shall be promoted successively to grade 4, and in the office of division superintendent, four clerks may be promoted to grade 5 and eight clerks to grade 6, and in the office of chief clerk, one clerk may be promoted to grade 5 and two clerks to [grade 6.] grade 6: Provided, That clerks assigned to the position of stenographer may be promoted successively to grade 2, and in division superintendents' offices not exceeding one stenographer may be promoted successively to grade 3: And provided further, That no employee shall be reduced in salary as a result of this Act.

75TH CONGRESS HOUSE OF REPRESENTATIVES 1st Session

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REPORT No. 759

REVISION OF THE AIR MAIL LAWS

MAY 4, 1937.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed

Mr. HILDEBRANDT, from the Committee on the Post Office and Post Roads, submitted the following

REPORT

[To accompany H. R. 4732]

The Committee on the Post Office and Post Roads, having had under consideration the bill (H. R. 4732) to revise the air mail laws, report the same back to the House with an amendment and, so amended, recommend that the bill do pass.

The committee amendment strikes out all after the enacting clause of the bill and inserts the following in lieu thereof:

That section 2 (b) of the Act entitled "An Act to revise air-mail laws, and to establish a commission to make a report to the Congress recommending an aviation policy", approved June 12, 1934, as amended (U. S. C., 1934 ed., title 39, sec. 469), is amended by adding at the end thereof the following paragraph:

"(4) The term 'nonmail schedule' means one for which compensation at mileage rates is not authorized by the Post Office Department."

SEC. 2. Section 3 (a) of such Act, as amended (U. S. C., 1934 ed., Supp. II, title 39, sec. 469a (a)), is amended by adding at the end thereof the following sentence: "Notwithstanding any other provision of law, the rate of compensation bid by the contractor and accepted by the Postmaster General shall remain in full force and effect for the entire term of the initial period of any contract awarded by the Postmaster General after the date of enactment of this amendatory sentence."

SEC. 3. Section 3 (c) of such Act, as amended (U. S. C., 1934 ed., Supp. II, title 39, sec. 469a (c)), is amended to read as follows:

(c) If, in the opinion of the Postmaster General, the public interest requires it, he may grant extensions of any route from either terminus or any intermediate point thereof: Provided, That the aggregate mileage of all such extensions on any route in effect at one time shall not exceed two hundred and fifty miles, and that the rate of pay for such extensions shall not be in excess of the rate per mile fixed for the service thus extended."

SEC. 4. Section 6 (b) of such Act, as amended (U. S. C., 1934 ed., Supp. II, title 39, sec. 469d (b)), is amended by adding at the end thereof the following sentence: "The Interstate Commerce Commission shall furnish to the Postmaster General a copy of each report made to the Commission by any auditor, examiner, or employee covering any examination of books, records, accounts, contracts, and business records of air-mail contractors referred to in this section."

SEC. 5. Section 6 (e) of such Act, as amended (U. S. C., 1934 ed., Supp. II, title 39, sec. 469d (e)), is amended to read as follows:

"(e) In fixing and determining the fair and reasonable rates of compensation for air-mail transportation, the Commission shall give consideration to the amount of air mail so carried, the facilities supplied by the carrier, and its revenue and profits from all sources, and from a consideration of these and other material elements, shall fix and establish rates for each route which, in connection with the rates fixed by it for all other routes, shall be designed to keep the aggregate cost of the transportation of air mail on and after July 1, 1940, within the limits of the anticipated postal revenue therefrom, as estimated by the Postmaster General, who shall make a report thereof to the Commission.

"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."

SEC. 6. (a) Section 7 (a) of such Act, as amended (U. S. C., 1934 ed., title 39, sec. 469e (a)), is amended by inserting before the colon preceding the proviso in such section a comma and the following: "or to engage directly or indirectly in any phase of the aviation industry except the transportation of mail, passengers, and express, the training of personnel, the maintenance and repair of transportation and ground facilities and equipment necessarily incidental to such transportation, and the research and experimental work essential to the proper development of air transport service."

(b) The amendment made by subsection (a) of this section shall have no effect prior to the date of enactment of this section.

SEC. 7. Section 15 of such Act, as amended (U. S. C., 1934 ed., Supp. II, title 39, sec. 469m), is amended by adding at the end thereof the following: "This Act shall not be construed as giving the Commission jurisdiction to consider any application for the establishment of any air-mail line or air-transport service, or to grant any such application on the grounds of public convenience and necessity, or for any other reason.'

EXPLANATION OF COMMITTEE AMENDMENT

Your committee held hearings on the bill H. R. 4732, at which representatives of the departments, the Interstate Commerce Commission, the operators, and the pilots were heard.

The bill as reported by the committee clarifies certain provisions of the air-mail laws. The changes made by the committee amendment are set out below:

Section 1 of the committee amendment defines the term "nonmail schedule", which is used in other provisions of the Air Mail Act of 1934.

Section 2 provides that no increase in rate shall be allowed during the initial period for which any contract is hereafter let, and that the contractor shall be required to perform his contract for the full initial period at the bid rate.

Section 3 authorizes the Postmaster General to grant extensions of air-mail routes from either terminus or any intermediate point, subject to the existing limitations on aggregate mileage of extensions and rate of pay.

Section 4 requires the Interstate Commerce Commission to furnish the Postmaster General with a copy of each report made to the Commission by any auditor, examiner, or employee, covering any examination of books, records, accounts, contracts, and business records of air-mail contractors.