Chapter 126.
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CHAP. 126.— AN ACT To amend the Act approved June twenty-fifth, nineteen hundred and ten, authorizing the postal savings system, and for other purposes. May 18, 1916.[[H. R. 562](/us/bill/64/hr/562).][[Public, No. 81](/us/pl/64/81).] *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,* That such part of section six Postal service. Postal savings system. Vol. 36, p. 815, amended. Amount of deposit, bearing interest, increased.of the Act approved June twenty-fifth, nineteen hundred and ten, authorizing a system of postal savings depositories, as reads “but no one shall be permitted to deposit more than $100 in any one calendar month” is hereby amended to read as follows:
“but the balance to the credit of any person, upon which interest is payable, shall not exceed $1,000, exclusive of accumulated interest”; and said Act is Additional deposits without interest increased. Vol. 36, p. 816, amended.further amended so that the proviso in section seven thereof shall read as follows: *“Provided,* That the board of trustees may, in their discretion, and under such regulations as such board may promulgate, accept additional deposits not to exceed in the aggregate $1,000 for each depositor, but upon which no interest shall be paid.
” Sec. 2. That postal savings funds received under the provisions Deposit of funds in banks. Vol. 36, p. 816, amended. Whether Federal reserve banks or not. Vol. 38, p. 265, amended.of this Act shall be deposited in solvent banks, whether organized under National or State laws, and whether member banks or not of the Federal reserve system established by the Act approved December twenty-third, nineteen hundred and thirteen, being subject to National or State supervision and examination, and the sums deposited shall bear interest at the rate of not less than two and one-fourth Interest required.per centum per annum, which rate shall be uniform throughout the United States and Territories thereof; but five per centum of such Reserve fund.funds shall be withdrawn by the board of trustees and kept with the Treasurer of the United States, who shall be treasurer of the board Security required.of trustees, in lawful money as a reserve.
The board of trustees shall take from such banks such security in public bonds or other securities, authorized by Act of Congress or supported by the taxing power, as the board may prescribe, approve, and deem sufficient and necessary to insure the safety and prompt payment of such deposits on demand. The funds received at the postal savings Distribution of deposits locally.depository offices in each city, town, village, and other locality shall 160be deposited in banks located therein (substantially in proportion to the capital and surplus of each such bank) willing to receive such deposits under the terms of this Act and the regulations made by *Provisos.* Preference to Federal reserve member banks.Vol. 38, p. 251.authority thereof: *Provided, however,* If one or more member banks of the Federal reserve system established by the Act approved December twenty-third, nineteen hundred and thirteen, exists in the city, town, village, or locality where the postal sayings deposits are made, such deposits shall be placed in such qualified member banks substantially in proportion to the capital and surplus of each such bank, but if such member banks fail to qualify to receive such deposits then any other bank located therein may, as hereinbefore provided, qualify and receive the same.
If no such member bank and no other qualified bank exists in any city, town, village, or locality, or if none where such deposits are made will receive such deposits on the terms prescribed, then such funds shall be deposited under the terms of this Act in the bank most convenient to such Deposits with treasurer.locality. If no such bank in any State or Territory is willing to receive such deposits on the terms prescribed, then such funds shall be deposited with the treasurer of the board of trustees and shall be Withdrawals for repayments.counted in making up the reserve of five per centum.
Such funds may be withdrawn from the treasurer of said board of trustees, and all other postal savings funds, or any part of such funds, may be at any time withdrawn from the banks and savings depository offices for the repayment of postal savings depositors when required for that Amount to be invested in Government bonds, etc.purpose. If at any time the postal savings deposits in any State or Territory shall exceed the amount which the qualified banks therein are willing to receive under the terms of this Act, and such excess amount is not required to make up the reserve fund of five per centum hereinbefore provided for, the board of trustees may invest all or any part of such excess amount in bonds or other securities of the United States.
When, in the judgment of the President, the general welfare and interests of the United States so require, the board of trustees may invest all or any part of the postal savings funds, except the reserve fund of five per centum herein provided for, in bonds or other Purchases from holders of postal savings bonds. Vol. 36, p. 817. Application of interest, etc.securities of the United States. The board of trustees may in its discretion purchase from the holders thereof bonds which have been or may be issued under the provisions of section ten of the Act of June twenty-fifth, nineteen hundred and ten.
Interest and profit accruing from the deposits or investment of postal savings funds shall be applied to the payment of interest due to postal savings depositors, as hereinbefore provided, and the excess thereof, if any, shall be covered into the Treasury of the United States as a part of the postal revenue: Restriction on use of funds.*Provided further,* That postal savings funds in the treasury of said board shall be subject to disposition as provided in this Act, and not Disposal of bonds.otherwise: *And provided further,* That the board of trustees may at any time dispose of bonds held as postal savings investments and use the proceeds to meet withdrawals of deposits by depositors.
For the Definitions. “Territory.”purposes of this Act the word “Territory” as used herein shall be held to include the District of Columbia, the District of Alaska, and “Bank.”Porto Rico, and the word “bank” shall be held to include savings banks and trust companies doing a banking business. Empty mail bags. Return to mails allowed in emergency cases. Sec. 3. That the Postmaster General, in cases of emergency, between October first and April first of any year, may hereafter return to the mails empty mail bags theretofore withdrawn therefrom as required by law, and for such times may pay for their railroad transportation out of the appropriation for inland transportation by railroad routes at not exceeding the rate per pound per mile as shown by the last adjustment for mail service on the route over which they Cartage.may be carried, and pay for necessary cartage out of the appropriation for freight or expressage. 161 Sec. 4.
That when, during a weighing period, on account of floods Mail transportation. Readjustment of pay for, when weighing interrupted by floods, etc.or other causes, interruptions in service occur on railroad routes and the weights of mail are decreased below the normal, or where there is an omission to take weights, the Postmaster General, for the purpose of readjusting compensation on such railroad routes as are affected thereby, is hereafter authorized, in his discretion, to add to Ascertaining average weights.the weights of mails ascertained on such routes during that part of the weighing period when conditions are shown to have been normal the estimated Basis for pay.weights for that part of the weighing period when conditions are shown to have been not normal, or where there has been an omission to take weights, based upon the average of weights taken during that part of the weighing period during which conditions are shown to have been normal, the actual weights and the estimated weights to form the basis for the average weight per day upon which to readjust the compensation according to law on such railroad routes for the transportation of the mails, notwithstanding the provision of the Act of Congress approved March third, nineteen Vol. 33, p. 1088.hundred and five, requiring that the average weight shall be ascertained by the actual weighing of the mails for such a number of successive working days, not less than ninety, as the Postmaster General may direct: *Provided further,* That readjustments from July first, nineteen *Proviso.* Applicable to routes affected by Ohio Valley floods, 1913.hundred and thirteen, may be made under this provision on routes in the first section affected by the floods in the Ohio Valley and tributary territories, commencing about March twenty-fifth, nineteen hundred and thirteen.
Sec. 5. That so much of section four of “An Act making appropriations Diverted mails. Limit on allowance for, repealed. Vol. 37, p. 554.for the service of the Post Office Department for the fiscal year ending June thirtieth, nineteen hundred and thirteen, and for other purposes,” approved August twenty-fourth, nineteen hundred and twelve, as provides that no adjustment shall be made unless the diverted mails equal at least ten per centum of the average daily weight on any of the routes affected is hereby repealed.
Sec. 6. That section thirty-nine hundred and forty-nine of the Mail contracts. R. S., sec. 3949, p. 766, amended.Revised Statutes be amended to read as follows: "“All contracts for carrying the mail shall be in the name of the Awarded to lowest bidder according to advertisement.United States and shall be awarded to the lowest bidder tendering sufficient guaranties for faithful performance in accordance with the terms of the advertisement: *Provided, however,* That such contracts *Proviso.* Celerity, certainty, and security required.require due celerity, certainty, and security in the performance of the service; but the Postmaster General shall not be bound to consider the bid of any person who has willfully or negligently failed to perform a former contract.”" Sec. 7.
That whenever in the judgment of the Postmaster General Star route bids. Substitution of other service if bids exorbitant, etc.the bids received for any star route are exorbitant or unreasonable, or whenever he has reason to believe that a combination of bidders has been entered into to fix the rate for star-route service, the Postmaster General be, and he is hereby, authorized, out of the appropriation for inland transportation by star routes, to employ and use such means or methods to provide the desired service as he may deem expedient, without reference to existing law or laws respecting the employment of personal service or the procurement of conveyances, materials, or supplies.
Sec. 8. That whenever an accepted bidder shall fail to enter into Temporary contracts on failure by accepted bidder.contract, or a contractor on any mail route shall fail or refuse to perform the service on said route according to his contract, or when a new route shall be established or new service required, or when, from any other cause, there shall not be a contractor legally bound or required to perform such service, the Postmaster General may make a temporary contract for carrying the mail on such route, without advertisement, Limitation.for such period as may be necessary, not in any case exceed-162ing one year, until the service shall have commenced under a contract *Proviso.* Cost charged to defaulting contractor, etc.made according to law: *Provided,* That the cost of temporary service rendered necessary by reason of the failure of any accepted bidder to enter into contract or a contractor to perform service shall be charged to such bidder or contractor.
Services to contractors. Lien allowed for. Sec. 9. That if any person shall hereafter perform any service for any contractor or subcontractor in carrying the mail, he shall, upon filing in the department his contract for such service and satisfactory evidence of its performance, thereafter have a lien on any money due such contractor or subcontractor for such service to the amount of same; and if such contractor or subcontractor shall fail to pay the party or parties who have performed service as aforesaid the amount due for such service within two months after the expiration of the Payment by Postmaster General.month in which such service shall have been performed the Postmaster General may cause the amount due to be paid said party or parties *Proviso.* Limitation.and charged to the contractor: *Provided,* That such payment shall not in any case exceed the rate of pay per annum of the contractor or subcontractor.
Criminal Code. Vol. 35, p. 1126, amended. *Post,* p. 418. Sec. 10. That the Act of March fourth, nineteen hundred and nine (Thirty-fifth Statutes, page eleven hundred and twenty-six), be amended to read as follows: Wilfully injuring mail receptacles, stealing mail therefrom, etc. "“That whoever shall willfully or maliciously injure, tear down, or destroy any letter box or other receptacle intended or used for the receipt or delivery of mail on any mad route, or shall break open the same, or shall willfully or maliciously injure, deface or destroy any mail deposited therein, or shall willfully take or steal such mail from or out of such letter box or other receptacle, or shall willfully aid or Punishment for.assist in any of the aforementioned offenses, shall for every such offense be punished by a fine of not more than $1,000 or by imprisonment for not more than three years.”" First-class mail.
Limit of weight. *Proviso.* Restriction on penalty privilege matter. Vol. 29, p. 262. Sec. 11. That the limit of weight of mail matter of the first class shall be the same as is applicable to mail of the fourth class: *Provided,* That no article or package exceeding four pounds in weight shall be admitted to the. mails under the penalty privilege unless it comes within the exceptions named in the Acts of June eighth, eighteen hundred and ninety-six (chapter three hundred and seventy, Twenty-ninth Vol. 34, p. 477.Statutes, page two hundred and sixty-two), and June twenty-sixth, nineteen hundred and six (chapter thirty-five hundred and forty-six, Thirty-fourth Statutes, page four hundred and seventy-seven).
Canceling of stamps. R. S., sec. 3921, p. 762, amended. Sec. 12. That postage stamps affixed to all mail matter or to stamped envelopes in which the same is inclosed shall, when deposited for mailing or delivery, be defaced by the postmaster at the mailing *Proviso.* Precanceling allowed.office: *Provided,* That when practicable postage stamps may be furnished to postmasters precanceled by printing on them the name of the post office at which they are to be used, under such regulations as the Postmaster General may prescribe.
Mail in bulk. Vol. 33, p. 440, amended. Sec. 13. That section two of the Act of April twenty-eighth, nineteen hundred and four (chapter seventeen hundred and fifty-nine, Thirty-third Statutes, page four hundred and forty), be amended to read as follows: Acceptance of matter in quantities without stamps. "“That under such regulations as the Postmaster General may establish for the collection of the lawful revenue and for facilitating the handling of such matter in the mails it shall be lawful to accept for transmission in the mails, without postage stamps affixed, quantities Number.of not less than three hundred identical pieces of third-class matter and of second-class matter and two hundred and fifty identical pieces Money, etc., by Treasury Department.of fourth-class matter, and packages of money and securities mailed under postage at the first or fourth class rate by the Treasury Depart-163ment: *Provided,* That postage shall be fully prepaid thereon at the *Proviso.* Prepayment required.
Claims for losses. Vol. 38, p. 278, amended.rate required by law for a single piece of such matter”" Sec. 14. That the Act approved January twenty-first, nineteen hundred and fourteen (Thirty-eighth Statutes, page two hundred and seventy-eight), authorizing the Postmaster General to adjust certain claims of postmasters for loss by burglary, fire, or other unavoidable casualty, be so amended as to include Navy mail clerks and assistant Navy mail clerks included.Navy mail clerks.
Sec. 15. That hereafter the Postmaster General may enter Contract stations. Two-year term allowed.into contracts for the conduct of contract stations for a term not exceeding two years. Sec. 16. That on and after July first, nineteen hundred and sixteen, Fourth class postmasters. Vol. 22, p. 602. Assignment to higher class. *Post,* p. 418.when the total compensation of any postmaster at a post office of the fourth class for four consecutive quarters shall amount to $1,000, exclusive of commissions on money orders issued, and the receipts of such post office for the same period shall aggregate as much as $1,900, the Auditor for the Post Office Department shall so report to the Postmaster General, who shall, in pursuance of such report, assign such post office to its proper class, to become effective at the beginning of the next succeeding quarterly period, and fix the salary of the postmaster accordingly.
Sec. 17. That all laws or parts of laws in conflict with the provisions Conflicting laws repealed.of this Act are hereby repealed. Approved, May 18, 1916.