PUBLIC LAWS-CH. 512-JUNE 28, 1946 fees to be charged in asset, arrangement and wage-earner cases, and such determinations shall become effective sixty days after they are promulgated by the conference. lasses ofreferees. "(2) The Director shall upon such promulgation divide by lot the total number of referees first to be appointed as equally as possible Terms. into three classes. The initial terms of the referees in the first class shall expire at the end of the second year, in the second class at the end of the fourth year, and in the third class at the end of the sixth year. Director's report to "(3) Thereupon the Director shall report in writing to the judge judges. or judges of the several courts of bankruptcy the number of referees to be appointed by them in each of the three classes above specified, the respective territories which such referees shall serve, and the Appointmentof ref- respective salaries to be paid to them. The judge or judges shall erFes. Arte,p.s3. thereupon appoint, pursuant to subdivision a of section 34 of this Act such referees in each of the specified classes for terms commenc- ing sixty days after such promulgation of the determinations of the conference, and shall select them as far as practicable from the referees then in office within their respective judicial districts. "c. Except as otherwise provided in this Act, the conference may, from time to time, in the light of the recommendations of the councils, made after advising with the district judges of their respective circuits, and of the Director, change the number of referees and the extent of the respective territories to be served by them, as the expeditious transaction of the business of the several courts of bankruptcy may require." 30Stat. 556. 5E. Subdivision b of section 39 of such Act, as amended, is it U.S.c. C 67(b). amended to read as follows: Restrictions on ac- "b. Referees shall not (1) act in cases in which they are directly or onsorees. indirectly interested; or (2) purchase, directly or indirectly, any property of an estate in any proceeding under this Act. Active full- time referees shall not exercise the profession or employment of counsel or attorney, or be engaged in the practice of law. Active part-time referees, and referees receiving benefits under paragraph (1) of sub- post, p. 328. division d of section 40 of this Act, shall not practice as counsel or attorney in any proceeding under this Act." 30 Stat. c6. SEC. 6 . Section 40 of such Act, as amended, is amended to read as follows: o 0 t, p. 412. "SEC. 40. COMPENSATION OF REFEREES; REFEREES' SALARY AND EXPENSE FUNDS; RETIREMENT OF REFEREES. a . Referees shall receive as full compensation for their services salaries to be fixed by the conference, in the light of the recommendations of the councils, made after advising with the district judges of their respective circuits, and of the Director, at rates not more than $10,000 per annum for full-time referees, and not more than $5,000 per annum for part-time referees. In fixing the amount of salary to be paid to a referee, con- sideration shall be given to the average number and the types of, and the average amount of gross assets realized from, cases closed and pending in the territory which the referee is to serve, during the last preceding period of ten years, and to such other factors as may be material. Disbursement of such salaries shall be made monthly by or pursuant to the order of the Director. salary increses or 'b. The conference, in the light of the recommendations of the councils, made after advising with the district judges of their respective circuits, and of the Director, may increase or decrease any salary, within the limits prescribed in subdivision a of this section, if there has been a material increase or decrease in the volume of business or other change in the factors which may be considered material in Limitations. fixing salaries: Provided, however, That during the tenure of any full-time referee his salary shall not be reduced below that at which [60 STAT.