PUBLIC LAWS-CH. 601 -JUNE 23, 1938 If carrier is other than an air carrier. 24 Stat. 380; 48 Stat. 218. 49U.S. C. 5(8). Interests in ground facilities. Jurisdiction of ac- counts of noncarriers. Investigation of violations. Prohibited interests. Interlocking rela- tionships. lies and thereby restrain competition or jeopardize another air carrier not a party to the consolidation, merger, purchase, lease, operating con- tract, or acquisition of control: Providedfurther, That if the appli- cant is a carrier other than an air carrier, or a person controlled by a carrier other than an air carrier or affiliated therewith within the meaning of section 5 (8) of the Interstate Commerce Act, as amended, such applicant shall for the purposes of this section be considered an air carrier and the Authority shall not enter such an order of approval unless it finds that the transaction proposed will promote the public interest by enabling such carrier other than an air carrier to use aircraft to public advantage in its operation and will not restrain competition. Interests in Ground Facilities (c) The provisions of this section and section 409 shall not apply with respect to the acquisition or holding by any air carrier, or any officer or director thereof, of (1) any interest in any ticket office, land- ing area, hangar, or other ground facility reasonably incidental to the performance by such air carrier of any of its services, or (2) any stock or other interest or any office or directorship in any person whose principal business is the maintenance or operation of any such ticket office, landing area, hangar, or other ground facility. Jurisdiction of Accounts of Noncarriers (d) Whenever, after the effective date of this section, a person, not an air carrier, is authorized, pursuant to this section, to acquire con- trol of an air carrier, such person thereafter shall, to the extent found by the Authority to be reasonably necessary for the adminis- tration of this Act, be subject, in the same manner as if such person were an air carrier, to the provisions of this Act relating to accounts, records, and reports, and the inspection of facilities and records, including the penalties applicable in the case of violations thereof. Investigation of Violations (e) The Authority is empowered, upon complaint or upon its own initiative, to investigate and, after notice and hearing, to determine whether any person is violating any provision of subsection (a) of this section. If the Authority finds after such hearing that such person is violating any provision of such subsection, it shall by order require such person to take such action, consistent with the provi- sions of this Act, as may be necessary, in the opinion of the Author- ity, to prevent further violation of such provision. PROHIBITED INTERESTS Interlocking Relationships SEC. 409. (a) After one hundred and eighty days after the effective date of this section, it shall be unlawful, unless such relationship shall have been approved by order of the Authority upon due showing, in the form and manner prescribed by the Authority, that the public interest will not be adversely affected thereby- (1) For any air carrier to have and retain an officer or director who is an officer, director, or member, or who as a stockholder holds a controlling interest, in any other person who is a common carrier or is engaged in any phase of aeronautics. (2) For any air carrier, knowingly and willfully, to have and retain an officer or director who has a representative or nominee who 1002 [52 STAT.
�
