Postmaster General) and Western Air Express (Inc.), a corporation of California, and Transcontinental Air Transport (Inc.), a corporation of Delaware, contractor:

Witnesseth, that whereas Western Air Express (Inc.), a corporation of California, and Transcontinental Air Transport (Inc.), a corporation of Delaware, have been accepted according to law as contractor for transporting the mails on route certificate air mail No. 34, from New York, N. Y., via Philadelphia and Pittsburgh, Pa., Columbus, Ohio, Indianapolis, Ind., St. Louis and Kansas City, Mo., Amarillo, Tex. (or from St. Louis, via Tulsa, to Amarillo, either or both routes), and Albuquerque, N. Mex., to Los Angeles, Calif., and return, under an advertisement issued by the Postmaster General on August 2, 1930, for such service, which advertisement is hereby referred to and made by such reference a part of this contract, at the rate of 97% per cent of the maximum rates set out in the advertisement, the bid to be applied against the 40-cent provision and against the $1.25 provision, and the service commenced at the 40-cent provision with a proviso for changing the rate to the appropriate bracket set up under the $1.25 provision in the event that the poundage should exceed 225 pounds, for a period not exceeding four years from starting date specified in the order of Postmaster General, which date shall not be later than 30 days after award of this contract.

Now, therefore, the said contractor undertakes, covenants, and agrees with the United States of America—

First. To carry the mails offered with due celerity, certainty and security, and in safe and suitable aircraft on the route described and on the schedule set forth by the Postmaster General, the contractor to receive and deliver the mails at the designated fields and point on said fields as approved by the Postmaster General.

Second. To carry said mails in a safe and secure manner, free from wet or other injury.

Third. To be accountable and answerable in damages for the person to whom the contractor shall commit the care and transportation of the mails and his faithful performance of the obligations assumed herein and those imposed by law; not to commit the care or transportation of the mails to any person under 16 years of age, nor to any person undergoing a sentence of imprisonment at hard labor imposed by a court having criminal jurisdiction nor to any person not authorized by law to be concerned in contracts for carrying the mails.

Fourth. For which service when performed and evidence thereof shall have been filed with the Postmaster General, the said contractor is to be paid by the United States at the rate or rates applicable thereto, payments to be made monthly and as soon after the close of each month as accounts can be adjusted and settled, said pay to be subject, however, to be reduced or discontinued by the Postmaster General as hereinafter stipulated or to be suspended in case of delinquency.

Fifth. It is hereby also stipulated and agreed that deductions in pay will be made for suffering the mails to become wet, injured, or destroyed or when a grade of service is rendered inferior to that stipulated in the contract, or for the loss of or depredation upon the mails in the custody of the contractor or his agent, provided the loss is occasioned by their fault.

Sixth. It is hereby further stipulated and agreed by the contractor that the Postmaster General may annul the contract or impose forfeitures, in his discretion, for repeated failures or for failures to perform service according to contract; for violating the Postal Laws and Regulations; for subletting service without the consent of the Postmaster General, or assigning or transferring the contract; for combining to prevent others from bidding for the performance of postal service, and such annulment shall not impair the right of the department to claim damages from the contractor and his sureties. Seventh. It is hereby further stipulated and agreed that this contract may be terminated whenever, in the judgment of the Postmaster General, the interests of the Postal Service shall so require, upon serving notice upon the contractor at least 45 days prior to such termination, provided, that in case of such discontinuance of service, as a full indemnity to the contractor, one month's extra pay, based on the average pay for the preceding 6-month period, or full period of service if less than six months, may be allowed. The contractor may be relieved of this contract at any time upon giving the department 45 days' notice of desire to retire.

Eighth. It is hereby further stipulated and agreed that no Member of or Delegate to Congress shall be admitted to any share or part of this contract or agreement, or any benefit to arise therefrom.

Ninth. That at any time during the continuance of this contract the Postmaster General may require new or additional sureties upon the bond hereto annexed, if, in his opinion, such sureties are necessary for the proper protection of the interests of the United States; and that the contractor shall furnish such sureties to the satisfaction of the Postmaster General within 10 days after notice so to do; and in default thereof this contract may be annulled at the option of the Postmaster General. The Postmaster General may increase or reduce the amount of bond required, if, in his opinion, the same is warranted.

Tenth. The contractor expressly warrants that he has employed no third person to solicit or obtain this contract in his behalf, or to cause or procure the same to be obtained upon compensation in any way contingent in whole or in part, upon such procurement; and that he has not paid, or promised or agreed to pay, to any third person, in consideration of such procurement, or in compensation for service in connection therewith, any brokerage, commission, or percentage, upon the amount receivable by him hereunder, and that he has not, in estimating the contract price demanded by him, included any sum by reason of any such brokerage, commission, or percentage, and that all money payable to him hereunder is free from obligation to any other person for services rendered, or supposed to have been rendered, in the procurement of this contract. He further agrees that any breach of this warranty shall constitute adequate cause for annulment of this contract by the United States, and that the United States may retain to its own use from any sums due or to become due thereunder an amount equal to any brokerage, commission, or percentage so paid, or agreed to be paid.

Eleventh. The determination of the mileage involved and the issuance of appropriate regulations covering the period necessary before regular higher authorization will be issued, the compensation for excess poundage carried upon emergency authorizations, and such other matters pertinent thereto, is reserved by the department.

Twelfth. It is hereby further stipulated and agreed by the contractor that this contract is subject to all the conditions imposed by law, and by the several acts of Congress relating to post offices and post roads, and the conditions stated in the advertisement pursuant to which this contract is made.

Thirteenth. It is hereby further stipulated and agreed that this contract may, in the discretion of the Postmaster General, be continued in force beyond its express terms for a period not exceeding six months until a new contract with the same or other contractors shall be made by the Postmaster General.

Fourteenth. The Postmaster General from time to time may modify said route by an extension or extensions thereof, including lateral extensions and consolidations, and prescribe the schedule therefor, including the stops thereon, in accordance with the terms of the advertisement and the law, and determine the mileage upon which the compensation of the contractor is to be based.

Fifteenth. The aircraft employed by the contractor in the service authorized hereby shall be manufactured in the United States. They shall be of modern design, airworthy, and suitable for the service prescribed; the design and capacity of such aircraft and the location, size, and construction of the mail compartments therein, shall be subject to the approval of the Postmaster General.

Sixteenth. The contractor shall keep and maintain an accurate system of accounting, in accordance with regulations prescribed by the Postmaster General. These accounts shall include a record of all obligations, investments, expenditures, receipts, and earnings from any source whatsoever, and shall be subject at all reasonable times to inspection and audit by the Post Office Department. The contractor shall furnish to the Postmaster General such information regarding its accounts and operations as he may from time to time require.

Seventeenth. The contractor shall not directly or indirectly promote the use of the air mail over the route hereinbefore set out, or any other air-mail route, except in accordance with regulations prescribed by the Postmaster General.

In witness whereof, the Postmaster General has executed this contract in behalf of the United States and caused the seal of the Post Office Department to be affixed thereto, and the said contractor has hereunto set his hand and seal.

Signed, sealed, and delivered in behalf of the United States this 1st day of October, 1930.

[SEAL.]

UNITED STATES OF AMERICA,

By WALTER F. BROWN,

Postmaster General.

Witness to signature of Postmaster General:

KENNETH MACPHERSON.

Signed this 1st day of October, 1930.

[SEAL.]

WESTERN AIR EXPRESS (INC.),

By HARRIS M. HANSHUE, President.

TRANSCONTINENTAL AIR TRANSPORT (INC.),

By J. T. MADDUX, President.

Witnesses to signature of contractor:

WILLIAM H. WHITE, Jr.

VETERANS' ADMINISTRATION

COMMUNICATION

FROM

THE PRESIDENT OF THE UNITED STATES

TRANSMITTING

SUPPLEMENTAL ESTIMATE OF APPROPRIATION FOR THE VETERANS' ADMINISTRATION FOR THE FISCAL YEAR 1932, AMOUNTING TO $2,000,000

FEBRUARY 17 (calendar day, February 28), 1931.—Read, referred to the Committee on Appropriations, and ordered to be printed

The PRESIDENT OF THE SENATE.

THE WHITE HOUSE, Washington, February 27, 1931.

SIR: I have the honor to transmit herewith for the consideration of Congress a supplemental estimate of appropriation for the Veterans' Administration for the fiscal year 1932, to be immediately available, amounting to $2,000,000.

The details of this estimate, the necessity therefor, and the eason for its transmission at this time, are set forth in the letter of the Director of the Bureau of the Budget, transmitted herewith, with whose observations and comments thereon I concur.

Respectfully,

HERBERT HOOVER.

BUREAU OF THE BUDGET,
Washington, February 27, 1931.

SIR: I have the honor to submit for your consideration a supplemental estimate of appropriation for the Veterans' Administration for the fiscal year 1932, to be immediately available, amounting to $2,000,000, as follows:

Administration, medical, hospital, and domiciliary service, Veterans' Administration: For an additional amount for salaries and expenses of the Veterans' Administration, fiscal year 1932, to be immediately available, including the same S D-71-3-VOL 1542