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country, or with any franchise, obligation, right, privilege, duty, or liability granted or imposed by any foreign country, in respect of transportation outside of the United States. No carrier shall be deemed to have violated its certificate by landing or taking off during an emergency at a point not named in its certificate, or by making charter trips or furnishing any other special service under regulations prescribed by the Commission.

"(f) A certificate may include authority to transport such classes of traffic, except mail, as may be approved by the Commission, and may include authority to transport mail as set forth in paragraphs (d) and (m) of this section; and it shall be unlawful for any carrier to transport any class or classes of traffic not authorized in its certificate. Any air carrier holding a certificate for foreign air transportation shall be authorized to handle and transport mail of countries other than the United States.

(g) No certificate shall be issued, and no air carrier shall hold, or operate under, any certificate, except upon condition that the carrier shall undertake to provide, under such rules and regulations, not inconsistent with the provisions of this part, as the Postmaster General may prescribe, necessary and adequate facilities and service for the transportation of, and to transport, mail, whenever so authorized by such certificate and so required by the Postmaster General; and such carrier shall be entitled to receive compensation therefor as hereinafter provided.

"(h) No certificate shall confer any proprietary, property, or exclusive right in the use of any air space, civil airway, or airport.

“(i) Each certificate shall be effective from the date specified therein, and shall continue in effect until suspended or revoked as hereinafter provided, or until its expiration if issued for a limited time, or until the Commission shall certify that operation thereunder has ceased : Provided, That in the event any service authorized by a certificate is not inaugurated within, or is not operated for, a period of ninety days or such other period as may be designated by the Commission, the Commission may by order, entered after notice and hearing, direct that such certificate shall thereupon cease to be effective to the extent of such service.

“(j) The Commission may, upon application of a holder of a certificate, amend such certificate if it finds such amendment to be consistent with the public convenience and necessity; and it may, upon complaint, or upon its own initiative, after notice and hearing, suspend, amend, or revoke a certificate, in whole or in part, for willful failure to comply with any provision of this part, or with any order, rule, or regulation of the Commission promulgated hereunder, or with any term, condition, or limitation of such certificate: Provided, That no such certificate shall be revoked unless the holder thereof willfully fails to comply, within a reasonable time to be fixed by the Commission, with an order of the Commission, entered after notice and hearing, commanding obedience to the provision, or to the order, rule, regulation, term, condition, or limitation found by the Commission to have been violated: And provided further, That any such certificate shall be suspended in whole or in part by the Commission without notice or hearing, to the extent required by any order of the Secretary of Commerce relative to the safety of operation of aircraft, issued pursuant to the Air Commerce Act of 1926, as amended, and any such suspension shall remain in effect until the Secretary of Commerce certifies to the Commission that such suspension is no longer necessary in the interest of public safety.

“(k) If any person applying for a certificate for foreign air transportation holds a contract, license, permit, concession, or franchise, which was in effect at the date of the passage of this part, permitting such transportation, the Commission shall give preference to such holder over any other applicant, if such holder is fit, willing, and able properly to perform such transportation.

“(1) Except as provided in section 311, any certificate, or any prior right to engage as an air carrier in interstate, overseas, or foreign air transportation granted by this part, may be transferred pursuant to such rules and regulations as the Commission may prescribe.

“(m) Whenever, from time to time after the passage of this part, the Postmaster General shall find that the needs of the Postal Service require the transportation of mail by aircraft, in addition to the transportation of mail authorized in certificates then currently effective, between any points within the United States or between the United States and foreign countries, or in a foreign country or between foreign countries, the Postmaster General shall certify such finding to the Commission and file therewith a statement

showing such additional service and the facilities necessary in connection therewith, and a copy of such certification and statement shall be posted for at least twenty days in the office of the secretary of the Commission. If the Commission shall find, after a hearing of interested persons, that the proposed service would not unreasonably impair the ability of any air carrier to continue to engage in any activity authorized under a certificate held by it pursuant to this section, the Commission shall thereupon authorize the transportation of mail by aircraft under any certificate or certificates that may have been issued theretofore for transportation between the points to be served by such additional mail service, by an amendment or amendments thereto pursuant to paragraph (j) of this section, or by granting such authority in any new certificate or certificates issuable to any applicant pursuant to paragraph (d) of this section.

"ACCOUNTS, RECORDS, AND REPORTS

"SEC. 306. (a) The Commission is authorized to require annual, monthly, periodical, and special reports from all air carriers; to prescribe the manner and form in which such reports shall be made; and to require from such carriers specific answers to all questions upon which the Commission may deem information to be necessary. Such reports shall be under oath whenever the Commission so requires. The Commission may also require any air carrier to file with it a true copy of each or any contract, agreement, or arrangement between such carrier and any other air carrier or person in relation to any traffic affected by the provisions of this part, to which he or it may be a party.

"(b) The Commission shall prescribe the forms of any and all accounts, records, and memoranda to be kept by air carriers, and the length of time such accounts, records, and memoranda shall be preserved, including the accounts, records, and memoranda of the movement of traffic, as well as of the receipts and expenditures of money, and it shall be unlawful for such carriers to keep any other accounts, records, or memoranda than those prescribed or approved by the Commission: Provided, That any such carrier may keep additional accounts, records, or memoranda if they do not impair the integrity of those prescribed by the Commission.

"(c) The Commission shall at all times have access to all lands, buildings, or equipment of air carriers used in connection with interstate, overseas, or foreign air transportation and to all accounts, records, and memoranda, including all documents, papers, and correspondence, now or hereafter existing, and kept or required to be kept by air carriers. The members and employees of the Commission shall have authority under its order to inspect and examine any and all such lands, buildings, equipment, accounts, records, and memoranda, including all documents, papers, and correspondence, now or hereafter existing, and kept or required to be kept by air carriers.

“(d) The Commission shall, as soon as practicable, prescribe for air carriers the classes of property for which depreciation charges may properly be included under operating expenses and the rates of depreciation which shall be charged with respect to each of such classes of property, classifying such carriers as it may deem proper for this purpose, and the Commission may, when it deems necessary, modify the classes and rates so prescribed. Thereafter such carriers shall not charge to operating expenses any depreciation on classes of property other than as prescribed by the Commission, or charge with respect to any class of property a rate of depreciation other than that prescribed therefor by the Commission. No such carrier shall in any case include in any form under its operating or other expenses any depreciation or other charge or expenditure included elsewhere as a depreciation charge, or otherwise under its operating or other expenses. The Commission may also prescribe rules and regulations concerning the manner in which depreciation reserves shall be accrued and funded or otherwise used.

“RATES, FARES, CHARGES, CLASSIFICATIONS, AND PRACTICES

"SEC. 307. (a) It shall be the duty of every air carrier engaged in interstate air transportation to provide and furnish such transportation, as authorized by its certificate, upon reasonable request therefor and to provide reasonable through service in connection with other air carriers; to provide safe and adequate service, equipment, and facilities in connection with such transportation; to establish, observe, and enforce just and reasonable individual and joint rates, fares, charges, and classifications and just and reasonable regulations and practices relating thereto, and to the issuance, form, and substance of tickets, receipts, bills of lading, and manifests, the manner and method of presenting, marking, packing, and delivering property for such transportation, the carrying of personal, sample, and excess baggage, the facilities for transportation, and all other matters relating to or connected with such transportation; and, in case of such joint rates, fares, and charges, to establish just, reasonable, and equitable divisions thereof as between carriers participating therein which shall not unduly prefer or prejudice any of such participating carriers.

“(b) Air carriers engaged in interstate air transportation may establish reasonable through services and joint rates, fares, charges, and classifications with common carriers by railroad, express, motor vehicle, or water; and, in case of joint rates, fares, or charges, it shall be the duty of the carriers parties thereto to establish just and reasonable regulations and practices in connection therewith and just, reasonable, and equitable divisions thereof, which shall not unduly prefer or prejudice any of such carriers.

“(c) It shall be unlawful for any air carrier engaged in interstate air transportation to make, give, or cause any undue or unreasonable preference or advantage to any particular person, port, gateway, locality, or description of traffic in any respect whatsoever, or to subject any particular person, port, gateway, locality, or description of traffic to any unjust discrimination or any undue or unreasonable prejudice or disadvantage in any respect whatsoever: Provided, That this paragraph shall not be construed to apply to discriminations, prejudice, or disadvantage to the traffic of any other carrier of whatever description.

“TARIFF OF AIR CARRIERS

"SEC. 308. (a) Every air carrier engaged in interstate air transportation shall file with the Commission, and print, and keep open to public inspection, tariffs showing all the rates, fares, charges, classifications, rules, regulations, and practices for such transportation, and all services in connection therewith, between points served by it, and between points served by it and points in the United States served by any other common carrier when through service and through rates shall have been established. Such rates, fares, and charges shall be stated in terms of lawful money of the United States. Tariffs shall be published, filed, and posted in such form and manner, and shall contain such information, as the Commission shall prescribe; and the Commission is authorized to reject any tariff so filed which is not consistent with this section and such regulations. Any tariff so rejected shall be void and its use unlawful.

“(b) No air carrier engaged in interstate air transportation shall charge or demand or collect or receive a greater or less or different compensation for such transportation, or for any service in connection therewith, than the rates, fares, and charges specified in the tariffs in effect at the time; and no such carrier shall, in any manner or by any device, directly or indirectly, or through any agent or broker, or otherwise, refund or remit any portion of the rates, fa res, or charges so specified, or extend to any person any privileges or facilities for such transportation or service except such as are specified in its tariffs : Provided, That nothing herein shall prohibit such carriers, under such terms and conditions as the Commission may prescribe, from issuing tickets or passes for free or reduced-rate transportation to their directors, officers, and employees and their immediate families; witnesses and attorneys attending any legal investigation in which any such carrier is interested; persons injured in aircraft accidents and physicians and nurses attending such persons; and any person or property with the object of providing relief in cases of general epidemic, pestilence, or other calamitous visitation: Provided further, That, as used in this paragraph, employees' shall also include furloughed, pensioned, and superannuated ex-employees, persons who have become disabled or infirm in the service of any such carrier, and prospective employees traveling for the purpose of entering the service of any such carrier; and “families' shall also include the immediate families of persons killed, and the widows during widowhood and minor children during minority of persons who died, while in the service of any such carrier : Provided further, That the cost of air transportation of Government officials and employees shall be allowed by the United States in all cases where such transportation is authorized by the head of the department, establishment, or agency in which such official or employee is employed.

"(c) No change shall be made in any rate, fare, charge, or classification, or any rule, regulation, or practice affecting such rate, fare, charge, or classification, or the value of the service thereunder, specified in any effective ta riff of such carrier, except after thirty days' notice of the proposed change filed and posted in accordance with paragraph (a) of this section. Such notice shall plainly state the change proposed to be made and the time such change will take effect. The Commission may, in its discretion and for good cause shown, allow such change upon notice less than that herein specified, or modify the requirements of this section with respect to filing and posting of tariffs, either in particular instances or by general order applicable to special or peculiar circumstances or conditions.

“(d) No air carrier shall engage in interstate air transportation, or any service connected therewith, unless the rates, fares, and charges applicable thereto have been filed and posted in accordance with the provisions of this part: Provided, That the Commission shall fix the date when a carrier engaged in such transportation at the date of the passage of this part shall file and post its tariffs and when this paragraph shall become effective as to such carrier.

“(e) Air carriers shall keep currently on file with the Commission, as it shall require, the established divisions of all joint rates, fares, and charges in which they participate.

“(f) Every air carrier holding a certificate to engage in overseas or foreign air transportation shall file with the Commission, and print, and keep open to public inspection, tariffs showing all the rates, fares, charges, classifications, rules, regulations, and practices for the transportation, and all services in connection therewith, authorized by its certificate, or as otherwise may be required by the Commission. Such tariffs shall state rates, fares, and charges in terms of lawful money of the United States, and shall be published, filed, and posted in such form and manner, and shall contain such information, as the Commission shall prescribe: Provided, That such tariffs may also state rates, fares, and charges in terms of other currencies, and may also contain such information as may be required under the laws of any country in which such carrier is authorized to operate.

COMMISSION'S AUTHORITY OVER RATES

“SEC. 309. (a) Any person may make complaint in writing to the Commission that any individual or joint rate, fare, charge, classification, rule, regulation, or practice, filed and posted as provided herein by an air carrier engaged in interstate air transportation, is or will be in violation of this part. Whenever, after notice and hearing, upon complaint or on its own initiative, the Commission shall be of opinion that any such individual or joint rate, fare, or charge demanded, charged, or collected by any such carrier, or by any such carrier in conjunction with any other common carrier, or any classification, rule, regulation, or practice whatsoever of such carrier or carriers affecting such rate, fare, or charge or the value of the service thereunder, is or will be unjust or unreasonable, or unjustly discriminatory, or unduly preferential, or unduly prejudicial, it shall determine and prescribe the lawful rate, fare, or charge, or the maximum or minimum, or the maximum and minimum rate, fare, or charge, thereafter to be observed, or the lawful classification, rule, regulation, or practice thereafter to be made effective; and the Commission shall, whenever deemed by it to be necessary or desirable in the public interest, after hearing upon complaint or upon its own initiative, establish through service and joint rates, fares, charges (or the maxima or minima, or the maxima and minima thereof), classifications, rules, regulations, or practices applicable to interstate air transportation, and the terms and conditions under which such through service shall be operated.

*(b) Whenever, after notice and hearing, upon complaint or upon its own initiative, the Commission is of opinion that the divisions of joint rates, fares, or charges applicable to interstate air transportation, or interstate transportation in conjunction with other common carriers, are or will be unjust, unreasonable, inequitable, or unduly preferential or prejudicial as between the carriers parties thereto, the Commission shall prescribe the just, reasonable, and equitable divisions thereof to be received by the several carriers. The Commission may require the adjustment of divisions between such carriers from the date of filing the complaint or entry of order of investigation, or such other data subsequent thereto as the Commission finds justified.

"(c) Whenever an air carrier engaged in interstate air transportation shall file with the Commission a tariff stating a new individual or joint rate, fare, charge, or classification, or any rule, regulation, or practice affecting such rate, fare, charge, or classification, or the value of the service thereunder, the Commission is authorized and empowered upon complaint of any interested party or upon its own initiative, at once, and, if it so orders, without answer or other formal pleading by the interested carrier, but upon reasonable notice, to enter upon a hearing concerning the lawfulness of such rate, fare, charge, classification, or such rule, regulation, or practice, and pending such hearing and the decision thereon the Commission, by filing with such tariff and delivering to the carrier affected thereby a statement in writing of its reasons for such suspension, may suspend the operation of such tariff and defer the use of such rate, tare, charge, or classification, or such rule, regulation, or practice, for a period of ninety days, and if the proceeding has not been concluded and a final order made within such period the Commission may, from time to time, extend the period of suspension, but not for a longer period in the aggregate than one hundred and eighty days beyond the time when it would otherwise go into effect; and, after hearing, whether completed before or after the rate, fare, charge, classification, rule, regulation, or practice goes into effect, the Commission may make such order with reference. thereto as would be proper in a proceeding instituted after such rate, fare, charge, classification, rule, regulation, or practice had become effective. If the proceeding has not been concluded and an order made within the period of suspension, the proposed rate, fare, charge, classification, rule, regulation, or practice shall go into effect at the end of such period: Provided. That this paragraph shall apply to any initial tariff filed by any such carrier engaged in interstate air transportation when, this section takes effect.

“TRANSPORTATION OF MAIL

"SEC. 310. (a) Each contract between the United States and any person for the carriage of mail, heretofore continued or entered into under the provisions of the Act of June 12, 1934 (48 Stat. 933), as amended, shall be continued in effect until there is issued to the holder of such contract, a certificate authorizing the transportation of mail between the points covered by such contract; and upon the issuance of such certificate, or upon the failure of the holder of si'ch contract to apply for such certificate within the period provided in paragraph (a) of section 305 of this part, such contract shall be canceled : Provided, That until the further order of the Commission the Postmaster General shall pay rates of compensation as heretofore fixed oy orders of the Commission for the transportation of mail by airplane and the service connected therewith ; and, where no such rates have been fixed by the Commission, he shall pay the rates provided by each such contract until the Commission fixes rates under this section: Provided further, That from and after the issuance of such certificate, the Postmaster General shall tender mail to the holder thereof, for transportation between the points named therein for the transportation of mail, and such mail shall be transported by the air carrier holding such certificate, in accordance with such rules and regulations as may be promulgated by the Postmaster General.

“(b) Each contract between the United States and any person heretofore entered into under the provisions of the Act of March 8, 1928 (45 Stat. 248), as amended by the Act of March 2. 1929 (45 Stat. 1449), shall be continued in effect until the issuance of a certificate to the holder of such contract for the transportation of mail between the points covered by such contract and the effective date of any order of the Commission hereunder fixing a fair and reasonable rate of compensation for the transportation of mail between the points covered by such contract, and thereupon, or upon the failure of the holder of such contract to apply for such certificate within the period provided in paragraph (a) of section 305 of this part, such contract shall be canceled : Provided, That from and after such cancelation the Postmaster General shall tender mail to the air carrier holding such certificate for transportation between the points named therein for the transportation of mail, and such mail shall be transported by the air carrier holding such certificate in accordance with such rules and regulations as may be promulgated by the Postmaster General.

"(c) Upon the cancelation, pursuant to this part, of any air-mail contract, the bond or bonds required from the holder thereof shall terminate and cease to be effective, and such holder and his or its surety or sureties thereon shall be released and discharged from all obligations thereunder, and all securities deposited with such bond or bonds shall forthwith be returned to such holder: Provided, That the foregoing provision shall not be construed to terminate or make ineffective any bond or bonds of such holder, or to release or discharge from any obligation thereunder such holder or his or its surety or sureties

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