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b. Canadian Air Express and Bermuda Airways, Ltd., were ostensibly retained by Colonial to perform ticket office functions for Colonial. Such functions were in fact handled as a direct station operation of Colonial. The employees handling the work were hired and paid for directly by Colonial from its payroll account and the revenues from the sale of tickets were turned over to Colonial. Under the circumstances, those ticket offices should have been but were not carried on Colonial's book and reported as directed stations of Colonial.

c. Substantial additional sums were paid to the management of these two companies, including $12,000 per year to the president of Canadian Air Express. No substantial services were preformed for such sums. Portions of such  sums were "kicked back" to Janas, including ^150 per month by the president of Canadian Air Express and $50 per month by a director of Canadian Air Express.

d. Janas held substantial and controlling amounts of stock in Canadian Air Express and Bermuda Airways, Ltd., persons engaged in a phase of aeronautics within the meaning of section 407(c) of the Act. Janas has not disclosed to the Board his ownership of stock in these companies.

e. Airlines Limousine, Ltd., a wholly owned subsidiary of Canadian Air Express, is engaged in carrying passengers to and from the Airport and in general limousine service at the airport, and is therefore a common carrier within the meaning of section 409 of the Act. Janas, as a stockholder, holding a controlling interest in Airlines Limousine, Ltd. One or more of the officers, directors, and/or controlling stockholders of Airline Limousine, Ltd., are the representatives and/or nominees of Janas. Approval of these interlocking relationships has not been granted by the Board nor has such approval been requested.

It appears, on the basis of the foregoing practices and conduct, that Colonial and its officers, particularly Janas and Hudson may have furnished and permitted unauthorized free and reduced rate transportation, may have failed and neglected to keep Colonial's accounts in conformity with the Uniform System of Accounts for Air Carriers, may have falsified Colonial's accounts and reports, may have failed to disclose stock ownership as required by the Act, may have failed to obtain approval of interlocking relationships required by the Act, and may have so managed and conducted Colonial's business as not to conform to the standard of honest, economical and efficient management.

By the issuance of the mentioned order, the Board has instituted this investigation to determine, with respect to the alleged activities, practices and conduct set forth above and any other similar activities and practices: