air carrier or postal unit observe the following:

(1) When FCM is being transferred to another air carrier or delivered to the local postal unit, the delivering carrier will prepare and present all four parts of form 2718 to air carrier or postal unit with related FCM and obtain signature to acknowledge receipt.

(ii) Distribution of parts of Form 2718 by receiving carrier or postal unit, will be as follows:

(a) When FCM is transferred to another air carrier, send:

(1) Parts 1 and 2 to local postal unit for forwarding with Forms 2713 to Dallas Postal Data Center.

(2) Part 3 to delivering carrier as a receipt and for forwarding to carrier's accounting office.

(3) Part 4 to receiving air carrier for forwarding to carrier accounting office. (b) When FCM is delivered to postal unit, send:

(1) Parts 1 and 2 to local postal unit for forwarding to Dallas Postal Data Center.

(2) Part 3 to delivering air carrier for transmitting to air carrier accounting office.

(3) Part 4 retain in local postal unit. (d) Form 2753-A, mail delivery record. See § 533.6 for handling Form 2753-A.

[30 F.R. 10144, Aug. 14, 1965, as amended at 31 F.R. 12781, Sept. 30, 1966. Redesignated at 31 F.R. 15350, Dec. 8, 1966]

§ 534.5 Settlement of air transportation charges for FCM.

The Dallas Postal Data Center will settle all domestic air carriers charges for transporting first class mail by air. § 534.6 Reporting and processing FCM irregularities.

(a) Form 2759, report of irregular handling of airmail—(1) Use. Form 2759 is used by postal employees to report air carrier irregularities in the handling of FCM. It must also be used by postal units to advise local transportation division of irregular transfer and off-loading of FCM at intermediate points short of destination. Since this form is also used to report airmail irregularities, check box 1st Class by Air to assure proper evaluation of the report.

(2) Who prepares. Postal clerk who first handles FCM which obviously has

been mishandled by an air carrier or who is informed of irregular transfers or offloadings by receipt in the postal unit of Parts 1 and 2 of Form 2718, is required to prepare Form 2759 report.

(3) FCM irregularities requiring close attention. (1) Refusals/Removals of FCM are not subject to the preparation of briefs and the imposition of fines under the space available provisions. However, remedial action may be required. Submit memorandum report with full particulars to enable the director, transportation division, to take such corrective action as may be necessary in situations of repetitive occurrences involving refusals and removals that impair the service accorded FCM. See $534.6(a)(2).

(ii) Delayed delivery of FCM will be reported when more than 1 hour from time of arrival of trip elapses before delivery to AMF, MM, or VS driver. At non-AMF points, the post office clerk receiving the delayed FCM from the MM or VS driver is responsible for preparing Form 2759 under such circumstances.

(iii) Damage to FCM and equipment is a finable irregularity since air carriers are responsible for according FCM the same care and safeguards as is given regular airmail. See § 534.3(a) (6). Furnish full particulars as to pieces damaged, and extent, and pieces actually wet because of exposure to the elements.

(b) Instances where fines can be levied (1) Authorization for fining. The CAB rate order prescribes that "no air carrier shall be subject to penalties (fines) with respect to the carriage of such mail except to cover serious cases of failure to protect mail from damage and depredation or repetitive instances of neglect resulting in substantial delay. Inability to accommodate such mail on a specific flight or flights shall not be construed as neglect."

(2) Processing of finable FCM cases. Send Form 2759 for (i) damage to mail or equipment, including repetitive instances occurring at the same airport, (ii) failure to protect FCM from depredation, and (iii) neglect resulting in substantial delay, to local transportation division for evaluation and processing with those covering airmail.

(c) Distribution. Postal units will distribute copies of Form 2759 according to the instructions printed on each page of the form.

AUTHORITY: The provisions of this Part 541 issued under R.S. 161, as amended, sec. 1, 62 Stat. 777, as amended, 784, as amended; 5 U.S.C. 22, 18 U.S.C. 1698-1699, 1724, 39 U.S.C. 501, 505, 6101, 6104, 6435, unless otherwise noted.

SOURCE: The provisions of this Part 541 appear at 26 F.R. 11637, Dec. 6, 1961, unless otherwise noted. Redesignated at 31 F.R. 15351, Dec. 8, 1966.

§ 541.1 Transportation and protection of mail between post offices and ships.

(a) Outgoing mail. Steamship companies are to provide for the transportation and protection of all outgoing mail, including parcel post and sacks containing empty sacks, from the post office to the transporting vessel.

(b) Incoming mail. All incoming mail, including letter mail, parcel post and sacks containing empty sacks, is to be placed on the piers by the steamship companies. At that point delivery of the mail is made into the custody of agents of the postal service for trucking to the post office. The mail shall be placed on the piers and delivered to the agents of the postal service before the transporting vessel makes entry or breaks bulk, such action to be regarded as compliance with the law. Mail, including letter mail, parcel post and sacks containing empty sacks, waybilled for discharge at ports other than the first port of call of the vessel in the United States, shall be discharged at the first port of call if the vessel is scheduled to remain at said first port of call for more than 24 hours.

(c) Vehicles and attendants. Each vehicle used to transport mail between post offices and vessels, except the completely closed van type, shall be provided with a man to ride on the rear of the

vehicle to protect the mail. The mail compartment of the completely closed van type vehicle must be locked or sealed. When open-top trucks are used the sacks shall be covered by a fire-proof and rainproof tarpaulin which must be fastened securely to the body of the truck.

(d) Registered (red label) sacks. The registered sacks shall be specially protected during transfer between post offices and the transporting vessels and on board the vessels. The red label sacks shall be separately delivered to the steamship company's representative at the post office in the case of outgoing mails. Incoming red label sacks shall be segregated from the other mails on the piers by the steamship companies.

§ 541.2 Certificate for ship letters and payment of shipmaster.

(a) Postmasters at offices where ship and steamboat letters are delivered shall obtain a certificate from the master of the ship showing:

(1) Number of letters.

(2) Name of ship or vessel.

(3) Place from which vessel last sailed.

(b) The postmaster shall pay to the master or owner of the ship or steamboat 2 cents for each letter delivered into his office which has not previously been mailed, except as provided in § 541.3. The postmaster shall obtain a receipt for such payment.

§ 541.3 When fees on ship letters not allowed.

Fees shall not be allowed for ship letters if they are:

(a) Addressed to a foreign country. (b) Delivered by any of the following: (1) A passenger or sailor, other than the master.

(2) The master of any vessel or any person on board any vessel which carries mail.

(3) Any carrier on any mail route.

(4) The master of a vessel who delivers to a postmaster letters which were carried over a post route.

Fees shall not be allowed for printed matter.

§ 541.4 Compensation for transportation of surface mail.

(a) Definite rates: Payment shall be made for the transportation of United States mail and foreign closed transit mail on steamships of the United States and foreign registry at the rates specified

services performed by foreign flag vessels and all maritime service of U.S. flag vessels.

In addition to the maritime transportation rates shown in column (1) above, the Post Office Department will either pay steamships of United States registry directly for costs incurred by them or assume the responsibility for cartage from postal facility to pier.

(b) Special rates: This section shall not prevent a carrier from accepting maritime transportation rates lower than those shown in paragraph (a) of this section.

(c) The maritime transportation rates prescribed in paragraph (a) of this section while measured by the net weight of the mail, are intended in all cases to include payment for the weight of the covering mail bags. In the case of vessels of foreign registry, the maritime transportation rates prescribed in paragraph (a) of this section while measured by the net weight of the mail, also include compensation for the return of empty surface mail bags and the transportation from the postal facility to the pier. Acceptance by steamship companies of mail for transportation constitutes an acceptance of this method of computing payment.

(d) Any steamship company desiring to be relieved of the transportation of mail may make written application to the Assistant Postmaster General, Bu

reau of Transportation, Post Office Department, Washington, D.C. 20260. (39 U.S.C. 6409) [27 F.R. 9988, Oct. 11, 1962. Redesignated at 31 F.R. 15350, Dec. 8, 1966]

§ 541.5

Rates for rail service across Isthmus of Panama.

Payment for the transportation by railroad across the Isthmus of Panama, for United States and foreign closed transit mail shall be $0.0525 per pound for letters and post cards and $0.007 per pound for other articles, including parcel post. § 541.6 Fines on steamship companies transporting mail beyond borders of United States.

Steamship companies are responsible to the United States for the safety of the mail intrusted to them, and accountable for any loss or damage resulting to any mail by reason of failure on the part of any of their officers, agents, or employees to exercise due care in the custody, handling, or transportation thereof. In case of delinquencies, fines may be imposed or deductions made from the company's pay.

citizen or company of the United States authorized by the Civil Aeronautics Board to engage in overseas or international air transportation.

(2) Foreign air carrier (also called foreign flag carrier). Any individual or company not of the United States authorized by the Civil Aeronautics Board to engage in international air transportation.

(3) Carrier. Both air carrier and foreign air carrier.

(4) Overseas air transportation. The transportation of mail by aircraft between a place in any State of the United States and any place in a Territory or possession of the United States; or between a place in a Territory or possession of the United States and a place in any other Territory or possession of the United States.

(5) International air transportation. The transportation of mail by aircraft between a place in any State, Territory, or possession of the United States and any place wholly outside thereof.

(6) Mail. United States and international transit mail.

(c) Authority to engage in air transportation (1) American flag air carriers. Air carriers shall not engage in air transportation unless a certificate has been issued by the Civil Aeronautics Board authorizing them to do so. Each such certificate states the terminal points and intermediate points, if any, between which the air carrier is authorized to engage in air transportation.

(2) Foreign flag air carriers. Foreign air carriers shall not engage in air transportation from U.S. soil without a permit issued by the Civil Aeronautics Board authorizing such transportation.

(d) Policy for dispatch of mail-(1) Policy for dispatch of airmail. (i) U.S. air carriers will have first priority to traffic whenever practicable.

(ii) Airmail will be dispatched by the most expeditious service to the airport of destination.

(iii) Airmail for competitive points will be divided equally between competitive flights of U.S. air carriers as nearly as practicable if such flights are scheduled to arrive at the airport of destination within 1 hour of each other. When one carrier operates multiple competitive flights scheduled to arrive at an airport within 1 hour of a competitive flight or flights of another carrier, the airmail will be divided equally between air carriers

rather than between flights. For each application of the principles the time period of 1 hour will start with the first scheduled arrival of a flight or flights not included in an earlier division. A divided share of airmail will not be subject to further division.

(iv) The use of a flight or flights may be suspended in the event of cancellation, unduly delayed departure, frequent failure of schedule performance, abnormal mail backlog, or other unusual or unanticipated conditions which would otherwise delay the dispatch of airmail or impair the service to be accorded the mail.

(v) No division will be made when less than 100 kilograms of airmail are available for dispatch. When less than 100 kilograms are available regularly, each of the competing carriers will be given all the airmail available on alternate weeks, but no attempt will be made to balance cumulative total volumes.

(vi) No division will be made when flights depart from or arrive at different airports.

(vii) For division purposes, destination airmail is defined as all airmail for the destination airport city; all airmail to be off-loaded at the destination airport which is subject to onward movement by the foreign postal administration having jurisdiction, or by U.S. military postal authorities; and all airmail for interline transfer at that point. mail which is transferred on-line at a foreign airport will not be included in the division of mail for that point.

Air

(viii) All airmail, both civil and military, subject to division will be included in the weight totals, regardless of type of mail (LC, AO, and CP), and will be allocated between competing carriers to maintain approximately the same spaceweight ratio, as far as practicable.

(ix) Letter class mail (LC) will be given preference of dispatch over other classes of mail. Military airmail in pouches shall be considered as LC mail.

(x) When a flight serves both competitive and noncompetitive points, priority will be given for all the noncompetitive points, loading first the furthermost point, then the next one back in distance (or service) sequence, and so forth. After all mail for the noncompetitive points has been accommodated, the remaining available space will be utilized for mail to competitive points commencing again with the most distant point being loaded first.

(xi) Dispatches of civilian mail should not be split. Single dispatches of mail to a competitive point shall not be divided by weight between competing flights serving such point.

(2) Dispatch and division. (i) Military ordinary mail may not be dispatched on an aircraft unless the air carrier has first provided fully for the needs of the postal service for the transportation of airmail and air parcel post on that aircraft, and (in the case of a service offering passenger transportation) has also first provided fully for the passenger requirements on that flight.

(ii) Military ordinary mail shall be dispatched by the most expeditious service to the airport of destination to the extent that space is available on a flight under the conditions set forth in subdivision (i) of this subparagraph.

(iii) Military ordinary mail for competitive points shall be divided equally between competitive flights as nearly as practicable if such flights are scheduled to arrive at the airport of destination within 2 hours of each other. When one carrier operates multiple competitive flights scheduled to arrive at an airport within 2 hours of a competitive flight or flights of another carrier, the military ordinary mail shall be divided equally between air carriers rather than between flights. For each application of these principles the time period of 2 hours shall begin with the first scheduled arrival of a flight or flights not included in an earlier division, whether or not such flight or flights actually carry any military ordinary mail. A divided share of military ordinary mail will not be subject to further division.

(iv) Military ordinary mail will be divided on a weight basis which, to the extent practicable, reflects an equitable division of types of such mail having different space requirements.

(v) The use of a flight or flights may be suspended in the event of cancellation, unduly delayed departure, frequent failure of schedule performance, abnormal mail backlog, or other unusual or unanticipated condition which would otherwise delay the dispatch of military ordinary mail or impair the service to be accorded such mail.

(e) Rules and regulations. The Department will make such rules and regulations as may be necessary for the safe and expeditious transportation of airmail by aircraft. The Assistant Postmaster General, Bureau of Transporta

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tion and International Services, will establish the policy for transportation of mail and for exchange of airmail between postal employees and carriers.

(f) Agreements. The Department may enter into agreements with postal administrations of other countries with respect to airmail transportation. The Department may also make arrangements with foreign air carriers for the transportation of mail if they have been issued permits by the Civil Aeronautics Board.

(g) Transportation of foreign mail. Air carriers transporting mail of other countries are subject to control and regulation of the United States.

§ 542.2 Carrier operations.

(a) Filing of schedules. Carriers authorized to engage in air transportation shall transport mail only after filing their schedules of operations with the Department. The Department will designate the flights required for the transportation of mail and inform the carriers accordingly. No carrier shall transport mail in accordance with any schedule other than one designated or ordered to be established by the Department for the transportation of mail.

(b) Schedule revisions. Changes to existing schedules must be filed with the Department not less than 10 days before their effective dates. Three copies should be filed with the Director, International Service Division, Bureau of Transportation and International Services, Post Office Department, Washington D.C. 20260, one with the director, transportation division, in each region concerned, and three with the claim for the mail transportation.

(c) Flight movement. Carriers should operate designated flights as nearly as practicable at the times indicated in published schedules. Whenever earlier or later departures are required, sufficient advance notice should be given the local postal representatives in order that appropriate adjustments may be made in the dispatch schedules.

(d) Extra sections. Extra sections of a designated scheduled flight may be used for the transportation of mail.

(e) Emergency flights. Emergency flights operated by a carrier may be used for the transportation of mail. However, carriers should not accept mail for any country served by the emergency flight if they are not authorized to serve that country regularly.