Well, USI is the other Universal faction, and is kinda having a rough time as well. Maybe the 2 factions could merge, or...I don't know, but if I were either of you, I'd try to establish some very close links between the two.
Well, I was in KoF. I had some good moments indeed. But right now I think there isn't any room available for the KoF as I remember it. I strongly suggest you to consider what Rogue said: Merge with USI
Well, USI is currently without a Leadership, so finding just 1 person to talk to would be difficult. But I can add you to the chat, or give you the skype of some of the oldest members. Even if you decide to stay separate, I think you can help each other.
I actually believe that the best way is to take some specific roleplay with its own pros and cons. When it comes to trading I always point at [Convoy] - roleplay of Merchant Navy has a lot of restrictions, but in return they got their own pros, such as gunboat escorts and stuff.
You can't become second IND, but you can take your own good role with the limitations that will make it interesting. Just basically avoid trading Ore and you'll be fine.
Heh, what to do is usually the choice of the leader of a certain convoy. Most of the times it's Rubber and it's his choice. I rarely pay pirates and my Shire escaped bombers, Pirate Transports and, well, I was shot down only once because of my own mistake.
Also, that's usually not a bad behavour to pay pirates that roleplay their act of piracy. I remember how I transfered cash to a couple of amazing Corsairs; and another time I sent money to AGS guy in Stuttgart.