unless it is performed directly contiguous to the line.

(b) When performed by the Department. At any point where service is not required to be performed by the electric railroad, the postmaster (if of the fourth class) may be required to transfer mail over slight distances between the cars and the post office without expense to the Department. Where the post office or mail station is located a considerable distance from the point of exchange with the cars, the Department will make provision for the carriage of the mail. Where the train service and agency conditions are similar to those found in the railroad service, the applicable provisions of § 511.9 (c) of this chapter relative to the exchange of mail shall be observed.

§ 545.10 Responsibility for safety of the mail.

(a) An electric railroad authorized to perform mail transportation service shall be held responsible for the safety and security of the mail while in the custody of its employees. Where service and conditions are similar to those found in the railroad service, the applicable provisions of § 511.15(f) of this chapter, relating to responsibility for protection of mail, shall be observed.

(b) In the transportation of mail, the Department is not restricted to the use of the vestibule platform of passenger cars. The mail should be carried in any available space where it can be safeguarded.

§ 545.11 Designation of stopping points for safe exchange of mail.

Where necessary to effect the safe exchange of mail, an electric railroad shall be required to stop its cars at the points designated by the Post Office Department.

The electric railroad furnishing the railway post office cars or apartments shall provide power to operate any canceling machines used therein. The power shall be provided without additional expense to the Post Office Department.

§ 545.14 Failure of service.

In the event of an electric railroad's failure to provide for the transportation of mail in accordance with the Department's requirements, temporary mail service by some other mode of conveyance shall be authorized by the Assistant Postmaster General, Bureau of Transportation.

§ 545.15 Evidence of performance to be submitted by transportation companies.

An electric railroad shall submit monthly evidence of the performance of service. This evidence shall be submitted through the Postal Service on the form prescribed by the Post Office Department.

§ 545.16 Deductions and fines.

The provisions of § 511.15 of this chapter, pertaining to deductions and fines which may be imposed on railroads for service failures and delinquencies, shall also apply to electric railroads.

(a) To certified blind persons. Blind persons, when available and duly certified by a State licensing agency, designated by the Department of Health, Education, and Welfare,shall be authorized and have preference in the installation and operation of vending stands on property operated, maintained, and protected by the Post Office Department, provided that in the judgment of the Post Office Department, the installation and operation of the stands are considered practicable and will not unduly inconvenience the Post Office Department or adversely affect the interests of the United States.

(b) Preparation and submission of applications. Applications for installation and operation of vending stands, including vending machines, to be operated by licensed blind persons, shall be submitted by the State licensing agency in quadruplicate on the form provided by the Department of Health, Education and Welfare to the postal official in charge of the building involved for his recommendation for approval or disapproval. If the official in charge recommends approval he shall sign all four copies on the line designated "Officer in charge of building" and transmit all copies to director, engineering and facilities division for the region in which the building is located for approval or disapproval. If an application by a State licensing agency for a permit to establish a vending stand under the RandolphSheppard Vending Stand Act is not recommended for approval by the official in charge, the transmittal shall show reasons for the disapproval. Applications submitted by postal officials will be reviewed by the director, engineering and facilities division. If approved by him, he will sign all four copies of the form on the line designated "Official of U.S. Department having jurisdiction over building" and will retain one copy. Three copies, indicating the action taken, will be returned to the official concerned. He shall retain one copy in his files and transmit the others to the State licensing agency making application. If the director, engineering and facilities division disapproves the application he shall advise the postmaster and applicant of the reasons.

(c) Reports. At the end of each fiscal year the director, engineering and facilities division shall report to the Director, Realty Division, Bureau of Facilities, the

number of applications for vending stand permits received during the fiscal year, number accepted, number denied, and number still pending in his region.

(d) Appeals—(1) Installation, maintenance, and operation. If an application by a State licensing agency for a permit to install and operate a vending stand is not approved by the director, engineering and facilities division, the agency may appeal his decision. The appeal shall be made within 10 days to the Assistant Postmaster General, Bureau of Facilities through the Regional Director in the region denying the application. Upon appeal the Regional Director will direct a full investigation obtaining a report from the director, engineering and facilities division and from the State licensing agency. The Regional Director will report his findings and make recommendation within 20 days after receipt of the appeal to the Assistant Postmaster General, Bureau of Facilities who will render a final decision for the Post Office Department within 90 days of filing of the appeal. The appellate procedure is also available when the State licensing agency and the local installation's manager or the director, engineering and facilities division, fail to reach agreement concerning revocation or modification of a permit, suitability of a stand location, or method of operation of the stand. After a review of the findings, if in the judgment of the Regional Director the appeal should be allowed, he shall notify the State licensing agency without forwarding the case to the Assistant Postmaster General, Bureau of Facilities. If he determines the decision of the director, engineering and facilities division, or the local installations manager should be upheld, he must notify the Assistant Postmaster General, Bureau of Facilities, who will make the final decision.

(2) Services and assignment of proceeds. If the local installation's manager and the State licensing agency fail to reach agreement concerning the assignment of proceeds or services to be rendered by the vending stand operator (including articles which may be sold) a State licensing agency may appeal the decision. The appeal shall be made within 10 days to the Assistant Postmaster General, Bureau of Personnel, through the Regional Director in the region denying the application. Upon appeal the Regional Director will direct a full investigation obtaining a report from the special assistant for employee

relations and from the State licensing agency. The Regional Director will report his findings and make recommendation within 20 days after receipt of the appeal to the Assistant Postmaster General, Bureau of Personnel, who will render a final decision for the Post Office Department within 90 days of filing of the appeal. After a review of the findings, if in the judgment of the Regional Director the appeal should be allowed, he shall notify the State licensing agency without forwarding the case to the Assistant Postmaster General, Bureau of Personnel. If he determines the decision of the special assistant for employee relations or local installation's manager should be upheld, he must notify the Assistant Postmaster General, Bureau of Personnel, who will make final decision. (e) Approval of equipment plans. Vending equipment shall be designed, arranged, and installed in a manner to facilitate sanitary operation. Plans of proposed vending stand equipment shall be submitted by the State licensing agency to the official in charge of the postal installation for approval prior to installation.

(f) Outside firms. (1) When Employee Welfare Committees contract with outside firms to install, operate and maintain vending machines, contract must specify that:

(i) The vending machine company which is awarded the contract shall hire visually handicapped persons to the maximum extent possible to operate, maintain, and service the machines; and

(ii) The contractor shall train the visually handicapped personnel in the operation of vending machines.

(2) Contracts in effect on March 16, 1965, will not be affected by instructions in subparagraph (1) of this paragraph, until their expiration.

§ 614.2 Installation, maintenance, and

operation.

(a) Installation and maintenance. Installation, maintenance, repair, replacement, servicing, or removal of vending stand equipment or vending machines shall be without expense to the Post Office Department except that the cost of utilities required to operate vending stands and vending machines under the control of blind persons authorized to operate such stands and machines will be borne by the Post Office Department. In the case of vending stands and vending machines op

erated by employees' committees, the Department shall be reimbursed for utilities.

(b) Operation—(1) Sanitation standards. Vending stands shall be operated in compliance with local health and sanitation standards and codes.

(2) Cleaning and janitor service. The operator shall arrange for cleaning and janitor service sufficient to maintain vending areas at stands and machines in a clean and orderly condition.

(3) Violations. Authorization for establishing a vending stand, with the regulations and policies established by the Post Office Department and State licensing agency, shall govern the operation of each vending stand. Ordinarily, dayby-day matters concerning the operation of the stand can best be resolved on a local basis with the blind operator. Officials in charge should not confer with attorneys or others claiming to represent blind operators. Violations of regulations or policy, and other unresolved relevant matters, must be reported to the State licensing agency. If appropriate corrective action is not taken, the installation head shall notify the director, engineering and facilities division who will resolve the matter or submit it to the Department with all facts so that it can in turn be resolved by the Department with the Department of Health, Education, and Welfare. If the matter concerns vending machines operated by postal employee committees, or otherwise concerns postal employees, the director, engineering and facilities division will coordinate with the director, personnel division, in resolving the issues. § 614.3 Modification, relocation or removal.

The Post Office Department reserves the right to require State licensing agencies to arrange for modifications, removal, or relocation of vending stands established under the Randolph-Sheppard Vending Stand Act (20 U.S.C. 107-107f) when necessary because of changes in building operations or space requirements.

§ 614.4 Articles to be sold or vended.

(a) Approved articles. Vending of the following at vending stands operated by licensed blind persons is approved: newspapers, periodicals, confections, tobacco products, articles in individual containers or wrappers in which they are placed before receipt by the vending

stand operator, and such other suitable articles as may be approved for each location by the postal official in charge and State licensing agency. These articles may be vended through vending machines also, as adjuncts to vending stands or in other areas of the building considered practicable by the Post Office Department.

(b) Objectionable

publications. Licensed vending stand operators and State licensing agencies shall use diligence and good judgment and cooperate with postal authorities in preventing the keeping on the premises, for disposal to the public by sale or otherwise, of any so-called comic books or any other printed or written matter of an objectionable, subversive, or controversial nature which may subject the Post Office Department to public criticism. Violations of this section shall be reported to the Assistant Postmaster General, Bureau of Operations, Classification and Special Services Division, with a copy of the objectionable matter.

§ 614.5 Survey of vending stand opportunities.

Postal officials shall cooperate with State licensing agencies in making surveys of vending stand opportunities for blind persons on properties under their control and in selecting locations, or relocations, for such stands and the types of stands to be provided.

either in conjunction with his stand or in other areas of the same building under control of the Post Office Department, shall be assigned to the blind operator. When machines are being operated by an employees' committee in proximity to a stand or machines operated by a blind person and are in competition therewith, and a blind operator is not receiving an adequate income, consideration shall be given to assigning him all or part of the profits from other vending machines in the same building, regardless of location. (Adequate income is construed as being the equivalent of the average income of the average employee at the installation.) Reassignment of profits shall be considered only upon request from a State licensing agency to a postmaster or other postal official in charge of an installation. Assignment of profits to the blind operator from other vending machines shall be determined by the postal official in charge and the State licensing agency on the basis of the following:

(1) Proximity to and competition with the vending stand;

(2) Income which accrues to the operator from the stand operation; and (3) Profits from vending machines not operated in connection with the stand.

(b) To employees' committees. All income received by employees' committees from vending machines or other enterprises (except cafeterias, which are governed by other regulations) shall be used advantageously for the welfare and recreational activities of all employees. No profits shall accrue to the benefit of any single group, organization, or individual.

PART 742-CODE OF ETHICAL

742.735-11

CONDUCT

Subpart A-Basic Philosophy

General.

742.735-29

Employee organizations;

vention budgets.

Other conduct by employee.

con

Subpart C-General Conduct Prejudicial to the

742.735-32 General statutes applicable to

postal employees.

742.735-33 Specific statutes applicable to postal employees.

Subpart F-Specific Provisions for Special
Government Employees

742.735-61 Special Government employees required to submit statements. Exceptions.

742.735-62 742.735-63 Time for submission of statements.

Subpart G-Ethical Conduct Counseling and Reporting of Employment and Financial Interests Systems 742.735-71

Ethical Conduct Counselor and Deputy Ethical Conduct Counselors.

742.735-72 Reporting of employment and financial interests.

742.735-73 Availability of counseling services.

742.735-74 Advice concerning possible conflict of interest. 742.735-75 Disciplinary and other remedial action.

Subpart H-Reviewing of Statements System 742.735-76 Establishment of review system. Subpart -Informing Employees and Special Governent Employees of Code of Ethical Conduct

742.735-81 All employees and special Government employees.

AUTHORITY: The provisions of this Part 742 issued under R.S. 161, 5 U.S.C. 22, 39 U.S.C. 501, 505, Executive Order 11222 of May 8, 1965 (30 F.R. 6469), 3 CFR, 1965 Supp.; 5 CFR 735.104.

SOURCE: The provisions of this Part 742 appear at 31 F.R. 3234, Mar. 1, 1966, unless otherwise noted. Redesignated at 31 F.R. 15351, Dec. 8, 1966.

Subpart A-Basic Philosophy § 742.735-11 General.

Postal employees have, over the years, established a fine tradition of faithful service to the Nation unsurpassed by any other group. Each employee should take great pride in this tradition of dedicated

This statement of ethical conduct is provided to instruct and to guide those employees entering the Service for the first time, and also as a reminder to other employees of the conduct required and expected of them in carrying out their official duties.

§ 742.735-13 Applicability.

All postal personnel must act with unwavering integrity and complete devotion to the public interest. Postal personnel are expected to maintain the highest moral principles, and to uphold the laws of the United States and the regulations and policies of the Post Office Department. Not only is ethical conduct required, but officials and employees must be alert to avoid actions which would appear to prevent fulfillment of postal obligations. Assigned duties must be discharged conscientiously and effectively. The Postal Service has the unique privilege of having daily contact with the majority of the citizens of the Nation, and is in many instances their most direct contact with the Federal Government. Thus, there is an especial opportunity and responsibility for each postal employee to act with honor and integrity worthy of the public trust, thereby reflecting credit and distinction not only on the Postal Service, but the entire Federal Government. Subpart B-Basic Standards of Ethical Conduct

§ 742.735-21 Introduction. This subpart governs the ethical conduct of all postal employees.

§ 742.735-22 Code of Ethics.

The Congress has expressed the standards of conduct expected of all Government employees in a Code of Ethics as follows: (H. Con. Res. 175, 85th Cong., 2d sess., 72 Stat. B12).

1. Put loyalty to the highest moral principles and to country above loyalty to persons, party, or Government department.

2. Uphold the Constitution, laws, and legal regulations of the United States and of all governments therein and never be a party to their evasion.