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cant in which the person responsible for such false or misleading statement or misrepresentation, concealment, or withholding of facts is financially interested. except under the conditions set forth in paragraph (b) of section 4.1

SUSPENSION AND REVOCATION OF LICENSE

SEC. 8 (c). If, after a license shall have been issued to an applicant, the Secretary believes that the license was obtained through a false or misleading statement in the application therefor or through a misrepresentation, concealment, or withholding of of facts respecting any violation of the Act by any officer, agent, or employee, he may, after thirty days' notice and an opportunity for a hearing, revoke said license, whereupon no license shall be issued to said applicant or any applicant in which the person responsible for such false or misleading statement or misrepresentation, concealment, or withholding of facts is financially interested, except under the conditions set forth in paragraph (b) of section 4.

SUSPENSION AND REVOCATION OF LICENSE

[SEC. 8. (b) In addition to being subject to the penalties provided by section 3 (a) of this Act, any commission merchant, dealer, or broker who engages in or operates such business without a valid and effective license from the Secretary shall be liable to be proceeded against in any court of competent jurisdiction in a suit by the United States for an injunction to restrain such defendant from further continuing so to engage in or operate such business, and, if the court shall find that the defendant is continuing to engage in such business without a valid and effective license, the court shall issue an injunction to restrain such defendant from continuing to engage in or to operate such business without such license.] SEC. 8 (d) In addition to being subject to the penalties provided by section 3 (a) of this Act, any commission merchant, dealer, or broker who engages in or operates such business without a valid and effective license from the Secretary shall be liable to be proceeded against in any court of competent jurisdiction in a suit by the United States for an injunction to restrain such defendant from further continuing so to engage in or operate such business, and, if the court shall find that the defendant is continuing to engage in such business without a valid and effective license, the court shall issue an injunction to restrain such defendant from continuing to engage in or to operate such business without such license.

GENERAL PROVISIONS

SEC. 14. (a) The Secretary is hereby authorized, independently and in cooperation with other branches of the Government, State, or municipal agencies and/or any person, whether operating in one or more jurisdictions, to employ and/or license inspectors to inspect and certify, without regard to the filing of a complaint under this Act, to any interested person the class, quality, and/or condition of any lot of any perishable agricultural commodity when offered for interstate or foreign shipment or when received at places where the Secretary shall find it practicable to provide such service, under such rules and regulations as he may prescribe, including the payment of such fees and expenses as will be reasonable and as nearly as may be to cover the cost of the service rendered: Provided, That fees for inspections made by a licensed inspector, less the percentage thereof which he is allowed by the terms of his contract of employment with the Secretary as compensation for his services, shall be deposited into the Treasury of the United States as miscellaneous receipts; and fees for inspections made by an inspector acting under a cooperative agreement with a State, municipality, or other person shall be disposed of in accordance with the terms of such agreement: Provided further, That expenses for travel and subsistence incurred by inspectors shall be paid by the applicant for inspection to the United States Department of Agriculture to be credited to the appropriation for carrying out the purposes of this Act: And provided further, [That certificates issued by such inspectors shall be received in all courts of the United States as prima facie evidence of the truth of the statements herein contained.] That official inspection certificates for fresh fruits and vegetables issued by the Secretary of Agriculture pursuant to any law shall be received by all officers and all courts of the United States, in all proceedings under this Act, and in all transactions upon contract markets under Commodities Exchange Act (7 U. S. C., Supp. 2, ses. 1 to 17 (a)), as prima-facie evidence of the truth of the statements therein contained;

(b) Whoever shall falsely make, issue, alter, forge, or counterfeit, or cause or procure to be falsely made, issued, altered, forged, or counterfeited, or willingly aid, cause, procure or assist in, or be a party to the false making, issuing, altering, forging, or counterfeiting of any certificate of inspection issued under authority of this Act, the Produce Agency Act of March 3, 1927 (7 U. S. C., sec. 491–497), or any Act making appropriations for the Department of Agriculture; or shall utter or publish as true or cause to be uttered or published as true any such false, forged, altered, or counterfeited certificate, for a fraudulent purpose, shall be guilty of a misdemeanor and upon conviction shall be punished by a fine of not more than $500 or by impris onment for a period of not more than one year, or both, at the discretion of the court.

1st Session

No. 916

RENEWAL OF STAR-ROUTE CONTRACTS

JUNE 1, 1937.-Ordered to be printed

Mr. BURCH, from the committee of conference, submitted the following

REPORT

[To accompany H. R. 4408]

The committee of conference on the disagreeing votes of the two Houses on the amendments of the Senate to the bill (H. R. 4408) to provide for the renewal of star-route contracts at 4-year intervals, and for other purposes, having met, after full and free conference, have agreed to recommend and do recommend to their respective Houses as follows:

That the Senate recede from its amendments numbered 5 and 9. That the House recede from its disagreement to the amendments of the Senate numbered 1, 2, 3, 7, and 8, and agree to the same.

Amendment numbered 4:

That the House recede from its disagreement to the amendment of the Senate numbered 4, and agree to the same with an amendment, as follows:

In lieu of the matter proposed to be inserted by the Senate amendment, insert the following: General: Provided, That no contract which has theretofore been sublet, no contract which is held by any contractor who is not eligible to bid under section 5 of this amendatory Act, and no contract which is performed principally by employees of the contractor shall be renewed by virtue of this section: And provided further, That prior to the renewal of any regular contract for a four-year period the Post Office Department shall, among other things, take into consideration (1) whether the service rendered by the contractor has been satisfactory to the patrons of the star route and to said Department, (2) whether the roads traversed in serving the star route have been materially improved in the meantime, and (3) the kind and character of the equipment provided by the contractor.

And the Senate agree to the same.

H. Repts., 75-1, vol. 243

Amendment numbered 6:

That the House recede from its disagreement to the amendment of the Senate numbered 6, and agree to the same with an amendment, as follows:

In lieu of the matter proposed to be stricken out by the Senate amendment, insert the following:

The Postmaster General may, in his discretion, and in the interest of the Postal Service and under such regulations as he may prescribe, allow extra pay to a contractor for necessary increased travel caused by obstruction of roads, destruction of bridges, or discontinuance of ferries occurring during the contract term, but no extra pay allowed shall be proportionately greater than the rate established by the contract involved.

And the Senate agree to the same.

T. G. BURCH,

HARRY L. HAINES,
FRED H. HILDEBRANDT,
FRANK CARLSON,

E. HAROLD CLUETT,
Managers on the part of the House.

CARL HAYDEN,

JOSIAH W. BAILEY,

W. J. BULOW,

LYNN J. FRAZIER,

Managers on the part of the Senate.

The managers on the part of the House at the conference on the disagreeing votes of the two Houses on the amendments of the Senate to the bill (H. R. 4408) to provide for the renewal of star-route contracts at 4-year intervals, and for other purposes, submit the following statement in explanation of the effect of the action agreed upon by the conferees and recommended in the accompanying conference report:

Amendment no. 1: This amendment makes the language of section 1 of the House bill more specific in order to permit the Postmaster General to exercise his discretion as to renewal of star-route contracts in any case instead of in all cases, as provided in the House bill. The House recedes.

Amendment no. 2: This amendment clarifies the provisions of section 1 of the House bill relating to the basis for the exercise of the Postmaster General's discretion as to renewals of star-route contracts. The House recedes.

Amendment no. 3: This amendment strikes out the provision in section 1 of the House bill permitting an indefinite number of 4-year renewals of star-route contracts after the first renewal thereof. The House recedes.

Amendment no. 4: This amendment prohibits the extension or renewal of any contract if theretofore sublet, if performed principally by employees of the contractor, or if the contractor does not meet the residential requirements; and requires the Post Office Department in connection with renewals to take into consideration the service rendered and the equipment provided by the contractor, road improvements, and the financial saving, if any, resulting to the Department; and authorizes renewal of contracts which are now being superseded by new contracts. The conference agreement retains the provisions of the Senate amendment except that it eliminates the provision limiting the extension of contracts (as distinguished from renewals), the provision requiring the Department to take into consideration the financial saving resulting to it in making renewals, and the provision authorizing renewal of contracts which are now being superseded by new contracts.

Amendment no. 5: This is a corrective amendment no longer necessary in view of the conference agreement on Senate amendment no. 6. The Senate recedes.

Amendment no. 6: This amendment strikes out the provisions of the House bill which authorized an upward adjustment in contracts. where substantially altered by the assumption of additional mail volume or by substantial change in the condition of the highways, bridges, and ferries, included in the route, and upward or downward revisions where changes in schedule involve an increase or decrease in units of equipment. The conference agreement retains the provision for upward adjustments in contracts where the travel is increased by

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