part unless there is in force with respect to such air carrier or airport operator a certificate of public convenience and necessity issued by the Commission, authorizing such transportation or service: Provided, That if any air carrier or airport operator or any predecessor in interest, has been operating during the year 1934, or any part thereof, such air carrier or airport operator may continue such operation from the date of the passage of this part until such time as the Commission shall pass upon the application for a certificate as provided for herein, which application must be filed within 120 days after this section takes effect: Provided further, That pending the determination of any such application the continuance of such operation shall be lawful: And provided further, That this paragraph shall not be so construed as to require any such air carrier or airport operator lawfully engaged in operation solely within any State to obtain such certificate from the Commission.

(b) Application for a certificate shall be made in writing to the Commission, be verified under oath, and shall be in such form and contain such information and be accompanied by proof of service upon such interested parties as the Commission shall by regulation require.

(c) Upon the filing of an application under this section the Commission shall immediately give due notice to the public of the filing of the same by posting a copy thereof in the office of the secretary of the Commission, and shall fix a date, not later than twenty days from the date of such filing, within which any person having an interest in the issuance of the certificate applied for may file with the Commission, under rules and regulations to be prescribed by the Commission, a protest or memorandum of opposition to the issuance of the certificate for which application has been made, and within thirty days from the date fixed for filing protest or memorandum of opposition the Commission shall set a date for public hearing thereon. The Commission shall give to the decision of applications under this section preference over all other questions pending before it under this part, and shall decide the same as speedily as possible.

(d) A certificate shall be issued to any qualified applicant therefor, authorizing the whole or any part of the operations covered by the application, if it is found that the applicant is fit, willing, and able properly to perform the service proposed and to conform to the provisions of this part and the requirements, rules, and regulations of the Commission thereunder, and that the proposed service, to the extent to be authorized by the certificate, is or will be required by the present or future public convenience and necessity; otherwise such application shall be denied.

(e) Any certificate issued under this section to an air carrier shall specify the route or routes over which (or, in case of operations not over specified routes or between fixed termini, the territory within which) the air carrier is authorized to operate and the service to be rendered over such route or within such territory. (f) Any certificate issued under this section to an airport operator shall specify the services and facilities which such operator is authorized to provide.

(g) At the time of issuance of a certificate' under this section, and from time to time thereafter, there shall be attached to the exercise of the privileges granted by the certificate such reasonable terms, conditions, and limitations as the public convenience, necessity, and safety may from time to time require, including terms, conditions, and limitations as to the furnishing of additional service over the specified route or routes, or within the specified territory or at the specified airport, and the extension of the route or routes of the air carrier, and such terms and conditions as are necessary to carry out, with respect to operations of the air carrier or the airport operator, the requirements established by the Commission under this part.

(h) Any air carrier holding a certificate of public convenience and necessity issued under this part may transport in interstate or foreign air commerce to any place special and chartered parties, and may occasionally depart from the route over which it is authorized to operate under the certificate for the purpose of providing special service to a point not on such route, subject to police regulations of the several States, and in accordance with such regulations as the Commission may prescribe in the interest of public convenience and necessity.

(i) A certificate for the transportation of passengers may include authority to transport in the same aircraft, baggage, express, mail, newspapers, or such other classes of service as may be approved by the Commission.

(j) No certificate shall be issued under this part, and no air carrier or airport operator shall hold or operate under any such certificate, except upon condition— (1) That the air carrier or airport operator shall undertake to provide necessary and adequate facilities and service for the transportation of and to transport United States mail in accordance with this part whenever required to do so by the Postmaster General under such regulations as he may prescribe consistent with

this part for which such air carrier and airport operator shall be entitled to receive fair and reasonable compensation; and it shall be unlawful for any air carrier or airport operator to handle or transport United States mail unless such air carrier or airport operator holds a certificate of public convenience and necessity under this part and complies with the terms and conditions thereof: Provided, That any air carrier or airport operator operating during the year 1934, or any part thereof, and authorized to continue operations by paragraph (a) of this section, may continue to handle or transport mail pending determination of its application under said paragraph (a).

(2) That at all points on the route at which the air carrier is authorized to land and take off there are airports operated by airport operators holding certificates issued under this part, and it shall be unlawful, except in an emergency, for any air carrier operating under a certificate issued under this part to land or take off at any airport which does not have a certificate.

(3) That the air carrier or airport operator shall not engage in the manufacture or sale of aircraft or engines or parts thereof, or other materials or accessories generally used by air carriers or airport operators, either directly or indirectly through an agent, subsidiary, associate, affiliate, or by any other device whatsoever and shall not have as a director, officer, agent, or employee any individual so engaged, either directly or indirectly, as an officer agent, employee, director, or stockholder of any person so engaged.

(4) That the air carrier or airport operator shall not pay any officer, director, or regular employee compensation in any form, whether as salary, bonus, commission or otherwise, at a rate exceeding $17,500 per year for full time.

(k) No certificate issued under this part shall confer any proprietary, property, or exclusive right in the use of any navigable air space, civil airway, or airport. (1) Any certificate issued under this part 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.

(m) Any such certificate may, upon application of the holder thereof, in the discretion of the Commission, be amended or revoked, in whole or in part, or may upon complaint, or upon the Commission's own initiative, after notice and hearing, be suspended, changed, or revoked, in whole or in part, for willful failure to comply with any provision of this part, or with any lawful order, rule, or regulation of the Commission promulgated thereunder, or with any term, condition, or limitation of such certificate: Provided, That no such certificate shall be revoked (except upon application of the holder) unless the holder thereof willfully fails to comply, within a reasonable time, not less than 30 days, to be fixed by the Commission, with a lawful order of the Commission, made as provided in this part, commanding obedience to the provisions of this part, or to the rules or regulations of the Commission thereunder, or to the terms, conditions, or limitations of such certificate, found by the Commission to have been violated by such holder: Provided further, That any such certificate may be suspended in whole or in part by order of the Commission without notice or hearing whenever the Commission finds such suspension necessary in the interest of public safety, but upon application of the persons operating under the certificate so suspended said order of suspension shall immediately be set down for hearing.

(n) Any certificate issued under this part may be transferred pursuant to such rules and regulations as the Commission may prescribe.

(0) Any air carrier or airport operator subject to this part who fails, neglects, or refuses to comply with the provisions of this section, or any rules or regulations issued by the Commission with reference thereto, shall for each day during which such refusal or neglect continues be subject to a penalty of $100, which shall accrue to the United States and may be recovered in a civil action brought by the United States.

VALUATION

SEC. 406. For the purposes of this part, the Commission shall proceed immediately upon the passage of this part to make a full and complete valuation of the property owned or leased by all air carriers subject to this part, and shall report the value of such property used or useful for carrier purposes separately from the value of such property not so used or useful, together with a statement of the method or methods by which such valuation was determined. Such air carriers shall report annually and at such other times as the Commission may require on such matters as are necessary to keep such valuation up to date and shall cooperate with and aid the Commission in such valuation in such particulars and to such extent as the Commission may require and direct, and to that end the Commission shall issue the necessary rules and regulations.

ACCOUNTS, RECORDS, AND REPORTS

SEC. 407. (a) The Commission is hereby authorized to require annual, monthly, periodical, and special reports from all persons subject to this part, to prescribe the manner and form in which such reports shall be made, and to require from such persons 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 such person to file with it a true copy of each or any contract, agreement, or arrangement between such person and any other carrier or person.

(b) The Commission shall prescribe the forms of any and all accounts, records, and memoranda to be kept by persons subject to this part, 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 persons to keep any other accounts, records, or memoranda than those prescribed or approved by the Commission. The Commission shall at all times have access to all accounts, records, and memoranda, including all documents, papers, and correspondence, now or hereafter existing, and kept or require to be kept by such persons, and it may employ special agents or examiners, who shall have authority under the orders of the Commission to inspect and examine any and all accounts, records, and memoranda, including all documents, papers, and correspondence, now or hereafter existing, and kept or required to be kept by such persons.

(c) The Commission shall, as soon as practicable, prescribe, for air carriers and airport operators subject to this part, the classes of property for which depreciation charges may properly be included under operating expenses, and the percentages of depreciation which shall be charged with respect to each of such classes of property, classifying the air carriers and airport operators as it may deem proper for this purpose, and the Commission may, when it deems necessary, modify the classes and percentages so prescribed. Thereafter the air carriers and airport operators subject to this part shall not charge to operating expenses any depreciation on classes of property other than those prescribed by the Commission, or charge with respect to any class of property a percentage of depreciation other than that prescribed therefor by the Commission. No such air carrier or airport operator 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. Commission may also prescribe rules and regulations concerning the manner in which depreciation reserves shall be accrued and expended. Income from investments of moneys in such reserves shall be carried in such reserves,

RATES, FARES, CHARGES, CLASSIFICATIONS, AND PRACTICES

The

SEC. 408. (a) It shall be the duty of every air carrier subject to this part to provide and furnish transportation of passengers and property upon reasonable request therefor and to establish reasonable through routes with all other carriers subject to this Act; to provide safe and adequate service, equipment, and facilities for the transportation of passengers and property in interstate or foreign commerce; 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 transportation, the carrying of personal, sample, and excess baggage, the facilities for transportation, and all other matters relating to or connected with the transportation of passengers or property in interstate or foreign commerce; and in case of such joint rates, fares, and charges, to establish just, reasonable, and equitable divisions thereof as between the carriers participating therein which shall not unduly prefer or prejudice any of such participating carriers.

(b) It shall be the duty of every airport operator subject to this part to provide safe and adequate service, equipment, and facilities used or necessary in or in connection with transportation subject to this part, and to establish, observe, and enforce just and reasonable rates, charges, and classifications therefor, including the landing, dockage, mooring, taking off, servicing, and storage of aircraft, the handling, loading, and unloading of passengers and property and all other services or uses related to or connected with such transportation, and just and reasonable rules, regulations, and practices relating thereto.

(c) It shall be unlawful for any air carrier or airport operator subject to this part 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.

TARIFFS OF AIR CARRIERS AND AIRPORT OPERATORS

SEC. 409. (a) Every air carrier 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 transportation, and all services in connection therewith, of passengers and property in interstate or foreign commerce between points on its own route and between points on its own route and the route of any other carrier subject to this Act, when a through route and joint rate shall have been established. Every airport operator shall file with the Commission, and print and keep open to public inspection, tariffs showing all the rates, charges, classifications, rules, regulations, and practices for services, equipment, and facilities furnished, including the landing, dockage, mooring, taking off, servicing, and storage of all aircraft, the handling, loading, and unloading of passengers and property, and all other services or uses related to or connected with transportation subject to this part. Such rates, fares, and charges shall be stated in terms of lawful money of the United States. The tariffs required by this section shall be published, filed, and posted in such form and manner, and shall contain such information, as the Commission by regulations shall prescribe; and the Commission is authorized to reject any tariff filed with it which is not in consonance with this section and with such regulations. Any tariff so rejected by the Commission shall be void and its use shall be unlawful.

(b) No air carrier or airport operator shall charge or demand or collect or receive a greater or less or different compensation for transportation or for any service in connection therewith, or for any airport service, equipment, or facility, than the rates, fares, and charges specified in the tariffs in effect at the time; and no such air carrier or airport operator shall refund or remit in any manner or by any device, directly or indirectly or through any agent or broker or otherwise, any portion of the rates, fares, or charges so specified, or extend to any person any privileges or facilities for transportation in interstate or foreign commerce except such as are specified in its tariffs: Provided, That nothing herein shall prohibit air carriers subject to this part, under such rules and regulations, and such terms and conditions, as the Commission in its discretion may prescribe, (a) from transporting passengers or property at uniform reduced rates for the Government; (b) from issuing or interchanging tickets or passes for free or reduced rate transportation to their officers and employees and their families, witnesses and attorneys attending any legal investigation in which any such air carrier is interested, persons injured in wrecks and physicians and nurses attending such persons, and any persons or property with the object of providing relief in cases of general epidemic, pestilence, or other calamitous visitation; or (c) from issuing joint interchangeable mileage tickets.

Such

(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 tariff of an air carrier or airport operator, except after thirty days' notice of the proposed change filed and posted in accordance with paragraph (a) of this section. 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 or airport operator shall engage in any transportation, or any service in connection therewith, subject to this part 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 time within which air carriers and airport operators engaged in transportation at the date of passage of this part shall file and post their tariffs.

(e) Every air carrier shall file with the Commission the established divisions of all joint rates, fares, and charges, and all changes in such divisions, at the time the tariffs naming such joint rates, fares, and charges are filed.

COMMISSION'S AUTHORITY OVER RATES AND SO FORTH

SEC. 410. (a) Any person or body politic 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, is or will be in violation of this part. Whenever, after hearing upon complaint or in an investigation on its own initiative, the Commission shall be of opinion that any individual or joint rate, fare, or charge demanded, charged, or collected by any air carrier or airport operator, or by any air carrier in conjunction with any other carrier subject to this Act, or any classification, rule, regulation, or practice whatsoever of such air carrier or airport operator 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 without complaint, establish through routes and joint rates, fares, charges, classifications, rules, regulations, or practices applicable to the transportation of passengers or property by air carriers, or by such air carriers in conjunction with any other carrier subject to this Act, or the maxima or minima, or the maxima and minima, to be charged, and the terms and conditions under which such through routes shall be operated.

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

(c) Whenever any air carrier or airport operator shall file with the Commission any 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 hereby 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 air carrier or airport operator, 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 air carrier or airport operator 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, fare, 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 by order, 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 not apply to any initial tariff filed by any such air carrier or airport operator engaged in transportation when this part takes effect.

(d) In any proceeding to determine the justness or reasonableness of any rate, fare, or charge of any such air carrier or airport operator, there shall not be taken