(a) Contract terms. Contracts are made for terms of 4 years or for the remainder of a contract term set for the State in which the route is located. To spread the workload, contract terms are staggered for the different States within regions.

(b) Types of contracts. Star routes are classified according to services required as follows:

(1) Serving post offices and performing delivery and collection service to box patrons.

(2) Serving post offices but not performing box delivery and collection service.

(3) Performing box delivery and collection service to box patrons but not serving post offices.

(4) Serving post offices and providing rural delivery features to box patrons.

(5) Providing rural delivery features to patrons but not serving post offices.

(6) Handling restricted classes of mail for post offices only.

(7) Handling empty equipment primarily.

(c) Obtaining bids.-(1) Advertisements-(i) Issuance and distribution. When it becomes necessary to advertise for bids for a 4-year contract term or for the remainder of a regular contract term, when less than 4 years, advertisements will be prepared on Form 5435, Advertisement for Mail Service, by the director, transportation division. Advertisements will allow at least 30 days' posting from the date of receipt until the closing date for bids, except in emergencies when the advertisements will contain an explanation for the shorter posting period. Sufficient copies of advertisements will be prepared by the director, transportation division, for distribution to postmasters at post offices named in advertisements, prospective bidders, and other interested persons. Form 5468-5468-A, Star or Water Route Bid and Bond-Work Sheet, is used in submitting bids.

(ii) Distances stated in advertisements. Most advertisements inviting proposals for star route service show the one-way length of the routes and refer to:

(a) Distances traveled by carriers where service is in operation.

(b) Distances by shortest public roads between points named on new routes.

Distances stated in advertisements are believed to be substantially correct. The pay will be neither increased nor decreased if the actual distance is greater or less than advertised, provided the points to be supplied are correctly stated.

(iii) Advertising by postmasters. Postmasters must:

(a) Post copies of bulletin advertisements in conspicuous places in the lobbies of their post offices for the periods stated in the advertisements.

(b) Obtain the widest possible publicity, without expense to the Postal Service, to gain the attention of interested persons.

(c) Familiarize themselves with the advertisements and attached instructions, and the services to be performed.

(d) Maintain an ample supply of proposal forms (Form 5468-5468-A) while advertisement is pending. Make immediate request to director, transportation division, for needed forms, telephoning or telegraphing that office when necessary to obtain forms during last few closing days for receipt of bids.

(e) Furnish prospective bidders a copy of the advertisement and bid form on request.

(2) Requirements of bidders-(i) Eligibility. Any person who is at least 21 years of age and who is a citizen of the United States, or has filed a declaration of intention within the past 7 years to become a citizen, may submit a proposal and enter into a contract for carrying the mail, subject to the following restrictions:

(a) No proposal for a contract for star route service shall be considered unless the bidder is a legal resident of one of the counties crossed by the roads over which the mail is to be carried or a legal resident of a county adjoining one through which the mail is to be carried, with this exception: Proposals for carrying mail will be accepted from firms, companies, or corporations actually engaged in some business other than transportation of mail under a contract within the counties in which individuals are restricted as to residence.

(b) No postmaster, assistant postmaster, clerk employed in any post office, rural carrier, special delivery messenger, or other postal employee, including substitute or temporary, shall be a bidder, contractor, or concerned in a bond or contract for carrying mail on a star route.

(c) No member of the immediate family of a postmaster or assistant postmaster shall be awarded a contract or be a surety on a bond, or be a subcontractor or carrier on a star route; except, that a person who becomes a member of the immediate family of a postmaster or assistant postmaster after being awarded a contract or after being recognized as a subcontractor may continue to perform such contract and is eligible for a renewal contract. "Immediate family," as used in this section, means spouse and other persons related to the postmaster or assistant postmaster by blood who are regular members of the postmaster's or assistant postmaster's household.

(d) No contract for carrying mail will be made with any person who has entered or proposed any combination to prevent the making of any bid for carrying mail or who has agreed, or given or promised any consideration, to induce another person not to bid for such a contract.

(e) No contract will be made with a person known to have been convicted of a crime such as embezzlement, robbery, burglary, larceny, perversion or other notoriously immoral acts; known to have associated with known criminals; or known to have a record of serious moving traffic violations, unless he has since been rehabilitated and has become a responsible citizen.

(f) A married woman may contract or be surety as though she were unmarried where the laws of the State permit. When a woman bids or signs as surety, whether she is married or single must be stated.

(ii) Knowledge of service factors. Bidders should familiarize themselves with: (a) Service to be performed, including mileage and time required.

(b) Estimated weight and volume of mail to be carried and size of vehicle required.

(c) Condition of roads, including toll charges.

(d) Laws and regulations governing the operation of motor vehicles.

(e) Other circumstances affecting the cost of operation, without regard to the prevailing rate of pay or amount of bond specified.

(iii) Bonds. (a) Each proposal must be accompanied by a bond executed by a qualified surety company or by two or more individual sureties, each of whom must own real estate worth at least the

face amount of bond required, over and above all debts, judgments, mortgages, executions, and exemptions.

(b) As a part of the bond, the individual sureties must sign a statement showing the amount of real estate owned by them, a brief description of the real estate, its estimated market value, where it is situated, and in what county and State the titles are recorded.

(c) When the laws of the State permit, a husband and wife owning real estate as "tenants by the entireties," are acceptable as one surety provided both execute the bond. Any other two or more persons owning real estate as "joint tenants" are acceptable as one surety, provided all parties concerned execute the bond. In these cases, at least one other qualified surety is necessary.

(d) The obligation under the bid bond is that the bidder will execute a contract with good and sufficient sureties (see paragraph (d) (2) of this section) and that service will be performed according to the contract. If an accepted bidder fails to enter into the prescribed contract or, after having executed a contract, fails to perform service in accordance with the contract, he and his sureties are liable for the amount of the bid bond.

(e) No proposal for the transportation of the mail shall be considered when accompanied by a bond executed on behalf of a surety by or through any organization of mail transportation contractors or an officer or employee of such organization, nor shall any such proposal be considered when a portion of the bond premium, a commission on the bond sale, or any other thing of value accrues to any organization of mail transportation contractors or officer or employee thereof as a result of the execution of the bond.

(f) Amount of bond required with bid is stated in advertisement.

(g) Following is a list of surety companies, and locations of their principal offices, approved by the Treasury Department as acceptable on Federal bonds. However, only a few of these companies underwrite star route bonds. In many cases, local agents for surety companies have been instructed by the surety companies that they have no authority to execute star route bonds although this exception may not be reflected in the agent's general power of attorney.

The Aetna Casualty & Surety Co., Hartford, Conn.

the basis of the actual mileage traveled. (ii) When a detour occurs and a special train is operated over part of the regularly authorized run, a railroad will be required to carry in the special train any mail that can be advanced in delivery without additional compensation, if the volume of mail in both trains does not exceed that which could have been accommodated in the regularly authorized space.

(c) Transfer office facilities. Railroads shall furnish suitable office space for transfer clerks to perform their duties at points designated by the Department. Such offices must be kept in order by the railroad, lighted, heated, furnished, supplied with ice water, and provided with toilet facilities where such facilities are not otherwise easily accessible.

(d) Timetables and distance circulars (1) Timetables. Railroads must forward timetables, not less than 72 hours before taking effect, to the regional and district transportation managers of the Post Office Department having supervision over service on their lines. They must also notify these officials by telegraph if it becomes necessary to annul, curtail, or suspend service temporarily. Where a representative of the railroad is on duty, he must notify the postmaster as soon as possible after receipt of notice of any change in the schedule of a mail train.

(2) Distance circulars. (i) A railroad shall keep the Post Office Department informed at all times of correct mileage distances between all stations, junctions, or points where mail is put on and off trains. The Department shall be notified immediately of any change in trackage or other facility resulting in changes in mileage distances between such points. Such notification shall be made by submission to the Department, in quadruplicate, of a railroad distance circular, Form No. 2504-B, covering that segment of the route affected. The report shall state the correct distances and furnish the effective date of any change. Claims for pay covering the month following that in which changes in mileage distances occurred shall properly reflect the revised mileage distances.

(ii) In addition to the notification prescribed above a railroad on or before January 1 of each year shall submit to the Department, in quadruplicate, a certificate prepared by the Chief Engineer stating that the mileage distances previ

ously submitted to the Department, including any corrections filed during the previous calendar year, are correct in every respect.

(iii) For purposes of reporting mileage distances to the Department, a railroad shall measure the mileage between stations, junctions, or points where mail is put on and off trains to the nearest hundredth of a mile. The measurement shall be in such a manner that the aggregate of the distances between the individual stations, junctions, or other points where mail is put on or off trains shall not exceed the distance between the origin and destination of the train on which mail is authorized.

(e) Letter boxes. Where the public convenience is better served, the Department may authorize a railroad to place letter boxes in its stations for the receipt of first-class mail other than that for local delivery.

(f) Protection of mail by railroads— (1) Facilities for protection. A railroad is required to furnish all necessary facilities for the proper protection and handling of mail in its custody.

(2) Handling mail on platforms. Mail must not be stored on trucks and allowed to stand on platforms at local stations or transfer points unprotected from depredation. When it is necessary to place close-connection mail on trucks to be left standing on platforms, the mail must be in full view of employees of the railroad at all times. The portion of a platform used for loading, unloading, and transfer of mail must be well lighted. Mail being trucked through subways and tunnels must be carefully guarded.

(3) Holding mail in storage rooms. Rooms in which mail is stored must be locked except when a railroad employee is on duty. A strong light must be provided above the door, and unauthorized employees or unknown persons shall not be allowed in the vicinity. When necessary at small stations to provide proper protection, mail must be stored in a locked room or in a room where railroad employees are present.

(4) Exposing mail to weather. Mail must not be left exposed to weather. Tarpaulins may not be used for protection from weather except in unusual cases or to cover close connection mail being held on station platform trucks.

(5) While exchanging nonstop station mail. A railroad employee or other authorized person shall be assigned to guard mail being exchanged at nonstop

stations. At nonstop points where a railroad station representative is scheduled to be on duty at the time mail is received or dispatched, he must observe the exchange of mail and, if the pouch is not caught, must retrieve it for proper disposition.

(6) No smoking in storage cars. Railroad employees must not smoke or carry lighted cigars, cigarettes, or pipes in storage cars. Distribution and Traffic Managers will take appropriate action with railroad officials in all cases where violations are reported in order to enforce this regulation.

(7) Reports of failure to comply. Postal employees must report to the district transportation manager any failures on the part of a railroad to comply with the instructions in this paragraph.

(g) Withdrawal of car at intermediate point. (1) Where a RPO car is withdrawn at an intermediate point of its run because of an emergency and mail and clerks are transferred to other cars in the train, payment of the full rate will be allowed to the point of withdrawal. Additional pay will not be allowed for later deadhead operation over the remainder of the run.

(2) From the point of withdrawal to destination, payment will be allowed for the car used:

(i) At a prorate of the RPO car rate based upon the amount of space occupied as compared with the amount superseded when accompanied by PTS clerks.

(ii) At lesser storage unit rates based on the volume of mail carried when in the care of railroad representatives.

(3) A railroad will not be required to cut out an apartment car at an intermediate point on the authorized run of the car to substitute another car used for advance distribution.

(h) Irregularities. (1) The Post Office Department may fine a railroad an amount not in excess of the compensation due for the service authorized for failure to furnish an RPO car with sanitary drinking water, adequate toilet facilities, or adequate heat and light; or failure to regularly and thoroughly clean the car, provided the railroad has been given the opportunity to correct the conditions.

(2) The Department may impose fines on railroads for other delinquencies, including:

(i) Allowing the mail, or any part of it, to become wet, lost, injured, or de

stroyed, or conveying or keeping the mail in a place or manner that exposes it to depredation, loss, or injury.

(ii) Refusing, after demand, to transport mail by any car, boat, or other conveyance which the railroad operates or is concerned in operating on a mail route.

(iii) Leaving or putting aside the mail, or any part of it, for the accommodation of passengers, baggage, express, or other matter.

(iv) Habitual failure to observe schedules.

(v) Leaving mail which arrives at a station within a reasonable time before the departure of the train for which it is intended.

(vi) Failure to use the first practicable means of forwarding delayed mail.

(vii) Failure to sound proper signal when approaching a mail crane.

(viii) Failure to furnish proper accommodations for the handling, storage, and, if necessary, the distribution of mail in a railroad station.

(ix) Failure to place an RPO car in a station at the time specified by the Department for the advance distribution of mail.

(x) Permitting storage cars to accumulate at any point for operation in mail, or mail express, sections when suitable trains are available for dispatch to destinations.

(xi) Failure to operate regularly authorized storage cars in designated trains.

(xii) Failure to unload a storage car at the point of destination within the time specified by the Department when the mail is actually delayed.

(3) The fine in each case shall be such sum as the Postmaster General may impose, in view of the gravity of the delinquency, and shall be deducted from the railroad's pay for service on the route on which the delinquency occurred. § 511.36 Handling of mail.

(a) Receipt(1) Advance deliveries to trains. Where a railroad is responsible for the transfer of mail from a postal unit to a train, the railroad must make advance delivery to a train when the Department requires such delivery earlier than the regular closing time of the mail.

(2) Holding trains for loading. (i) A train shall not depart from a station and leave mail which is:

(a) Being loaded.

(b) Being trucked from vehicles or some part of the station to the train.

(c) Aboard a connecting train that has come to a stop.

(ii) When holding an important train for mail from a delayed connection would cause serious delay and subsequent train service is available within a reasonable period of time, the Department may authorize a time limit beyond which the important train may not be held except to load first-class mail and daily newspapers, and to load foreign mail if necessary to assure steamer connection, as follows:

(a) A railroad must request such authorization, if desired, from the Distribution and Traffic Manager having jurisdiction of the train involved, specifying reasons and a time limit beyond which it is impracticable to hold the train.

(b) Where requests are approved by the Distribution and Traffic Manager, any delayed mail involved must be carried without compensation on a later train to the extent of the unused space authorized on the first train. Additional pay is allowed only when the mail carried exceeds the volume which could have been accommodated in the regularly authorized space.

(iii) A mail train must not be held beyond its scheduled departure for mail originating in local postal units or offices of publication. The Postal Service must fix and enforce an ample time limit in which mail must be delivered to a railroad for dispatch.

(iv) At joint stations where mail is due for transfer from the train of one railroad to that of another, unloaded mail must be held to be in the custody of the outbound railroad which is responsible for the transfer.

(v) When it is necessary to transfer passengers, baggage, or express from one train to another, all mail must also be transferred unless the transfer is a regular connection coming within the provisions of subdivision (ii) of this subparagraph.

(3) Withholding mail from train. Regional transportation managers may withhold from dispatch catalog, circular, parcel post, and ordinary paper mail, in the order named, if necessary and advisable to prevent delay to important trains or to effect economies in transportation. Such mail must be forwarded in regular or excess space in other trains.

(4) Loading by other than railroad employees. Loading as used in this sub

paragraph, is defined as loading, separating and piling in the car.

(i) At plants:

(a) Destination and destination relay cars. The terminal charge (loading) will not apply to destination and destinationrelay cars when loaded by plant employees.

(b) Working storage cars and lesser storage units. When mail is loaded by plant employees, the terminal charge will not apply for loading. The proper unloading charge shall be credited to the originating railroad on mail loaded in working storage cars and lesser storage units. The originating railroad shall make proper interline settlement for these charges.

(ii) Loading by star route and mail messenger contractors:

(a) When all mail at a point is loaded by a contractor, terminal charges shall be credited in the same manner as for plant loaded storage cars and lesser storage units.

(b) When only a portion of the mail is loaded by a contractor and the remainder by railroad employees, the terminal charge will apply to all mail loaded.

(5) Loading storage cars. (i) Storage cars shall be loaded solidly at initial point of the run as far as practicable, observing all safety regulations and leaving only such doorways or aisles as are needed en route to handle mail.

(ii) Where for any reason a railroad fails to load a storage car to its space capacity, and mail is available for loading, pro rata pay will be allowed on the basis of the space capacity load. However, where the weight of the mail is exceptionally heavy and a car satisfactory to the Department is furnished, full payment may be allowed for less than space capacity load.

(iii) Where a storage space unit is carried in an oversize RPO car, the mail shall be handled within the car by postal transportation employees.

(6) Pouch list changes.

Distribution

and Traffic Managers of the Post Office Department shall promptly notify the proper official of a railroad of any changes in the list of pouches to be handled by the railroad.

(b) Nonstop station service. (1) Railroads are required to construct, light, and maintain mail cranes and other adequate facilities for the exchange of mail at points or stations on the run