(b) The indicated data shall be reported for each person or firm, other than directors, officers and employees of the air carrier, receiving compensation or expense reimbursements of $5,000 or more during the calendar year.

(c) Compensation and expenses to be reported in this schedule shall include fees, retainers, gifts, commissions, contributions, allowance for expenses or any form of payments amounting in the aggregate to $5,000 or more during the year. In addition to expense reimbursements paid directly to the recipients reflected in column 1, this schedule shall include expenses incurred by the persons or firms named in column 1 which have been paid directly to vendors by the air carrier. Expenses to be reported in this schedule shall encompass payments such as for legal, medical, engineering, advertising, accounting, statistical, educational, or charitable purposes but shall exclude payments for services which both as to their nature and amount may reasonably be regarded as ordinarily connected with the routine physical operation or maintenance of an air carrier such as payments for rent of buildings or property, for heat, light, power, telegraph, and telephone or payments to other carriers for interchange of equipment or settlement of interline traffic balances.

(d) "Persons or firms" shall be construed to mean individuals, partnerships, corporations or other legal entities.

Schedule G-44-Corporate and
Securities Data

(a) This schedule shall be filed by all route air carriers.

Territory, and reference to each statute under which such grant was made;

(c) With respect to any options outstanding at the close of the fiscal year to purchase securities of the air carrier from the air carrier, give the amount, with the title of the issue, called for by such options; a brief outline of the prices, expiration dates, and other material conditions on which such options may be exercised; the name and address of each person holding such options calling for more than 5 percent of the total amount subject to option, and the amount called for by the options of each person; and for each class of such options not previously reported, state the consideration for the granting thereof. [ER-327, 26 FR. 4222, May 16, 1961, as amended by ER-369, 27 F.R. 12820, Dec. 28, 1962]

Section 27-National Defense
Elements

Schedule D-1-Services Performed for
the Defense Establishment
(Memorandum of Services Included in
Other Schedules)

(a) This schedule shall be filed by all route air carriers whether or not services performed for the defense establishment are separately reported in accordance with section 21.

(b) Separate sets of this schedule shall be filed for each separate operating entity of the air carrier.

(c) Item 1 or item 2 shall be checked, as appropriate, to indicate the status of the operating entity with respect to services performed for the defense establishment.

with

section 21 Introduction to Systems of Reports, the reporting of data for items 2C, 2D, 2E, and 2F will not be required. [ER-327, 26 F.R. 4222, May 16, 1961, as amended by ER-369, 27 F.R. 12820, Dec. 28, 1962]

GENERAL REPORTING PROVISIONSSUPPLEMENTAL AIR CARRIERS Section 31-Introduction to System of Reports

(a) Each supplemental air carrier shall file with the Civil Aeronautics Board, monthly, quarterly and annually CAB Form 411 reports of financial and operating statistics as prescribed herein unless waiver is made by the Civil Aeronautics Board.

(b) The system prescribed provides for the submission by each supplemental air carrier of a certification and four categories of financial and operating statistics, on individual schedules of the CAB Form 41 report, grouped as follows: A. Certification.

B. Balance Sheet Elements.
P. Profit and Loss Elements.
T. Traffic and Capacity Elements.
G. General Corporate Elements.

(c) The prescribed system of reports provides that the frequency of reporting shall be monthly for some schedules, quarterly for some, and annually for others.

(d) Each schedule of the prescribed CAB Form 41 report has been assigned a specific code. The prefix alphabetical codes A, B, P, T, and G, respectively, have been employed to denote certification, balance sheet, profit and loss, traffic and capacity, and general corporate elements. The digits immediately following the alphabetical prefix designate the particular schedule.

(e) Each supplemental air carrier shall submit to the Office of Carrier Accounts and Statistics, Civil Aeronautics Board, Washington 25, D.C., four (4) copies of each schedule, except as hereinafter indicated in section 32, "General Reporting Instructions." All schedules are set up in units of eight sheets each with snapout inter-leaf carbons between sheets. The first sheet of each set is of white opaque paper and the second of white translucent paper. The third, fourth, and fifth sheets are of green

1 Specimen copies of CAB Form 41 were filled with the Office of the Federal Register as part of the original document.

opaque paper and the sixth, seventh, and eighth are of buff opaque paper. The data columns of the first sheet of certain schedules are separated by perforations to permit disassembly for clipboard statistical processing. The remaining sheets are unperforated and are of a format which permits filing within binders designed for standard 81⁄2" by 14" sheets. The four copies of each schedule filed with the Civil Aeronautics Board shall be comprised of the original white sheet and the three green sheets.

(f) Wherever practicable the sheets have been designed to permit machine tabulation. Upon approval by the Civil Aeronautics Board, the carrier may supply its own continuous-feed forms, provided each schedule conforms with the specifications of the forms prescribed herein.

(g) A good quality black typewriter ribbon shall be used in preparing the original copy of each schedule submitted to the Civil Aeronautics Board. In no event shall ditto or similar processes be used nor shall any information be typed on the reverse side of copies submitted to the Civil Aeronautics Board.

(h) Each supplemental air carrier shall generally comprise a single reporting entity; however, separate data shall be reported on Schedule P-3.1 and Schedule T-3.1 for each of the following classifications: (1) domestic within the 48 contiguous states, (2) territorial between the 48 contiguous states, Alaska and/or Hawaii, (3) other territorial, and (4) international including Canadian transborder. The application to be made of the above rule with regard to the entities for which separate reports shall be made is set forth below in the list entitled "Supplemental Air Carrier Reporting Entities."

SUPPLEMENTAL AIR CARRIER REPORTING
ENTITIES

AAXICO Airlines, Inc.

American Flyers Airline Corp.

Capitol Airways, Inc.

Johnson Flying Service, Inc.
Modern Air Transport, Inc.
Overseas National Airways, Inc.
Purdue Aeronautics Corp.
Saturn Airways, Inc.
Southern Air Transport, Inc.
Standard Airways, Inc.

Trans International Airlines, Inc.
U.S. Overseas Airlines, Inc.
Vance Roberts

World Airways, Inc.

Zantop Air Transport, Inc.

(i) As a general rule separate reports shall be filed for the supplemental air carrier and for each associated company, as defined in section 03, which is an air carrier. However, transactions of associated companies in which 100 percent equity control resides in the reporting air carrier shall be consolidated with transactions of the reporting air carrier when such associated companies perform services related to the transport operations of the reporting air carrier almost exclusively and are not engaged in air transportation for their own account. (ER-369, 27 F.R. 12820, Dec. 28, 1962]

Section 32-General Reporting
Instructions

(a) The CAB Form 41 report is comprised of schedules to be filed at the frequency indicated below. Four copies of each schedule shall be filed with the Civil Aeronautics Board and shall be

received, or postmarked, on or beforeexpiration of the indicated interval subsequent to the period for which the report is being made, except that only two copies of the Interim Balance Sheet and Income Statement need be filed.

(b) Each supplemental air carrier shall file the schedules of the CAB Form 41 reports with the Civil Aeronautics Board in accordance with the above instructions, except that the time for filing B and P report schedules for the final quarter of each calendar year may be extended to 90 days following the year's end provided that preliminary schedules B-1, P-1.1, and P-3.1 are submitted within the standard prescribed 40-day filing period. At the request of a supplemental air carrier, and upon a showing by such air carrier that public disclosure of its preliminary year-end report would adversely affect its interests and would not be in the public interest,

extension, must set forth the date when the report can be filed, and be submitted sufficiently in advance of the due date to permit proper time for consideration and communication to the supplemental air carrier of the action taken. Except in cases of emergency no such request will be entertained which is not postmarked in sufficient time to normally reach the Civil Aeronautics Board at least 24 hours before the prescribed due date. If a request is denied, the air carrier remains subject to the filing requirements to the same extent as if no request for extension of time had been made.

(d) Statements of accounting or statistical procedures required to be filed under this system of accounts and reports are recapitulated below. Such procedures shall be regarded as effective 30 days after receipt by the Board unless the carrier is notified before that time of Board objections; provided that effective 60 days following notice the Board may require modification of any previously effective procedure covered by such statements:

(1) Procedures for assigning or prorating profit and loss items between operating entities, as prescribed by section 2-1(b).

(2) Procedures for accrual of selfinsurance reserves, as prescribed by section 2-13(c).

(3) Procedures for establishment of expense equalization reserves, as prescribed by section 2-13(d).

(4) Procedures for depreciation of property and equipment, as prescribed by section 2-14(b).

(5) Procedures of accounting for airframe and aircraft engine overhauls and airworthiness reserves as prescribed by section 5-4(g) (8).

(6) Procedures for amortization of developmental and preoperating costs and other intangibles, as prescribed by section 5-5 (b), section 6-1870 (c), and section 6-1880.

(7) Procedures for the accrual of obsolescence and deterioration reserves for flight equipment expendable parts, as required by section 6-1311(d).

(8) Procedures for accrual of unearned transportation revenues, as prescribed by section 6-2160 (b).

(9) Procedures for assigning or prorating expenses between incidental services and transport operations, as prescribed by section 9-4600 (d).

(10) Procedures for applying maintenance burden, as prescribed by section 10-5300 (c), section 11-5300 (c) and section 34, Schedule P-6, paragraph (e).

(11) Procedures for computing available seat-miles and available ton-miles for each aircraft type, as required by paragraph (g), in section 35, Schedule T-3.1.

(12) Procedures for the accrual of vacation liability, as required by section 6-2120 (c).

The foregoing statements, where applicable, shall be filed in duplicate either before or with the Form 41 report for the quarter in which procedures are either established or revised. Each statement shall be submitted on a separate page to facilitate processing and filing.

(e) All financial data reported on B, P, and G schedules shall reflect the status of the supplemental air carrier's books of account for the period for which report is being made and shall conform to the instructions of this Uniform System of Accounts and Reports. At the option of the supplemental air carrier, financial data may be reported in whole dollars by either dropping or rounding cents; provided all amounts are balanced within and between schedules and zero digits are inserted for the actual money amounts eliminated.

(f) Traffic and other operational statistics included in schedules of the CAB Form 41 reports shall reflect data pertaining to the month or quarter for which the report is being made.

(g) Adjustments correcting errors in previously reported traffic and other operational statistics shall not be included in data reported in schedules for the current period but shall be effected by submission of corrected schedules for the period to which applicable or, if only a few items are involved, by written notice and authorization to the Civil Aeronautics Board to correct previously filed reports except that any correction which amounts to less than one-half of one percent (0.5%) of the corrected amount for the month to which related may be included in the report for the current month provided the amount of the correction is clearly noted on the Form 41 Report.

(h) All letters and statements of correction or revision of reported data shall be a part of the CAB Form 41 reports.

(i) All changes in accounting methods having a material impact upon the particular financial elements involved

(including but not limited to changes in methods of or bases for reserve accruals, depreciation, allocations between operating divisions or nontransport activities, and all changes in methods of computing and reporting traffic and capacity statistics having a material impact upon the particular statistics involved) shall be adequately explained and identified in the report first reflecting such changes. Such explanations related to financial position or financial results shall be made on schedules B-2.1 and P-2, "Notes to Balance Sheet" and "Notes to Income Statement," respectively. Changes in methods for computing or reporting traffic and capacity statistics shall be identified and explained on a separate sheet attached to the first report affected. 2-16.) The reporting requirements shall not be construed, in any sense, as relieving the supplemental air carrier of the responsibility for conforming its procedures to those otherwise prescribed in this system of accounts and reports. [ER-369, 27 F.R. 12821, Dec. 28, 1962, as amended by ER-417, 29 F.R. 13532, Oct. 1, 1964; ER-423, 29 F.R. 14875, Nov. 3, 1964] Section 33-Certification and Balance Sheet Elements

(See section

Schedule A-Certification

(a) The certification of the CAB Form 1 report shall be signed by an elective Corporate officer, executive or director, r such other person as may be auhorized by the carrier to sign the cerification, provided a written authorizaion disclosing the individual's name and itle is forwarded to the Civil Aeronauics Board. Since corrections or reviions of reported data are a part of the CAB Form 41 report, all correspondence elating to such matters shall be signed nly by persons authorized to sign the ertification.

(b) The certification of the Form 41 eports, embodied in schedule A thereof, hall read as follows:

I, the undersigned

(Title of officer in charge of accounts) the

(Full name of the reporting company) ɔ certify that this report and all schedules nd supporting documents which are subitted herewith or have been submitted eretofore as parts of this report filed for le above indicated period have been prered under my direction; that I have careilly examined them and declare that they

correctly reflect the accounts and records. of the company, and to the best of my knowledge and belief are a complete and accurate statement, after adjustments to reflect full accruals of the operating revenues and expenses, income items, assets, liabilities, capital, surplus, and operating statistics for the periods reported in the several schedules; that the various items herein reported were determined in accordance with the Uniform System of Accounts and Reports for Certificated Air Carriers prescribed by the Civil Aeronautics Board; and that the data contained herein are reported on a basis consistent with that of the preceding report except as specifically noted in explanations accompanying the financial and statistical statements.

Schedule A-1-Status of Accounting Plans Required To Be Filed

(a) This schedule shall be filed by each supplemental air carrier.

(b) This schedule shall be filled for the overall or system operations of the air carrier.

(c) The indicated data shall be entered on this schedule for each accounting plan listed in section 32(d).

(d) Columns 1 and 2 shall reflect the title of the accounting plan and its applicable section under this Uniform System of Accounts and Reports.

(e) Column 3 shall indicate for each plan, by insertion of either "Yes” or “No”, whether the plan was revised during this period.

(f) Columns 4 and 5 shall reflect for each plan the date filed with the Board and its effective date.

Schedule B-1-Balance Sheet

(a) This schedule shall be filed by each supplemental air carrier.

(b) This schedule shall reflect the balances as at the close of business on the last day of each calendar quarter, for the overall operations of each air carrier in conformance with the provisions of sections 4, 5, and 6.

(c) Individual proprietors or partners shall report the aggregate capital contributed by the proprietor or partners in account 2890 Other Paid-In Capital. Schedule B-2.1-Notes to Balance Sheet; Corporate Paid-In Capital; Analysis of Sole Proprietorship Capital or Partnership Capital

(a) This schedule shall be filed by each supplemental air carrier.

(b) All substantive matters which may influence materially interpretations or conclusions in regard to the financial