should act as a catalyst, not a Socialist. Government should be involved to a minimum with private enterprise. Government should not assume the full costs of a transport-plane program, by any means, but simply that part necessary to stimulate the maximum action by private capital.

(10) Purchasing: The bill should clearly indicate that the No. 1 objective is direct purchase by private operators of civil aircraft from private manufacturers. Government purchasing of civil aircraft should be limited to transport types and leases to commercial operators should be made only upon a finding, perhaps similar to section 701 of the Merchant Marine Act of 1936, by the Secretary of Commerce, subject to the President's approval, that civil aircraft for national-defense reserve needs could not be put into commercial operation without Government help. While Government purchase and even lease has been faced by the Aircraft Industries Association in their Santa Barbara resolution, the above restrictions may allay any residual fears of socialism.

(11) Patents: There should be protection of patents, as provided in all the bills except S. 3504.

(12) The President: The President should have ample authority to direct the use of our transports in an emergency. These powers should be provided in advance, and should not wait upon the passage of a War Powers Act after the trouble has started. Such a delay might negate the whole speed value of having airlift available.

The great danger in the present legislative situation is that, if S. 3504 were to be passed, the public would be given a false sense of security, and the Government might feel that the transport-plane problem had been answered-checked off the list, so to speak-and that no further consideration need be given to supplemental proposals, at least until completion of the S. 3504 program in 1955.

Even witnesses favoring the bill have admitted it is only a partial solution, and little enthusiasm has been evident except on the part of the Civil Aeronautics Administration. S. 3504 is too timid and narrow an approach, and I do not favor it.

Maintaining world supremacy for our air transports and plugging the gap in our airlift defenses represent a serious national challenge, and I for one do not feel our democracy has lost its ability to give an adequate response.

The only limit to our realization of tomorrow will be our doubts of today. Let us move forward with strong and active faith.

The CHAIRMAN. Senator Hunt?

Senator HUNT. I have no questions.

The CHAIRMAN. Do you have any questions, Mr. Sweeney?

Mr. SWEENEY. No, sir.

The CHAIRMAN. Mr. Davis?

Mr. DAVIS. No, sir. If I may say, I think it is a very fine paper, and particularly your timetable on the manufacturing and conversion of existing aircraft to military use.

Mr. MARVIN. I appreciate that.

The CHAIRMAN. It is a thought-provoking statement, a little on the pessimistic side, but maybe that is the way to look at things these days.

Mr. MARVIN. Actually, Senator, I am an optimist.

The CHAIRMAN. One would never discover that by listening to you.

Mr. MARVIN. If you have the time I will tell you a little story about an optimist.

Senator HUNT. On or off the record?

The CHAIRMAN. Put it on the record.

Mr. MARVIN. This is a story about a father who had two sons. He was something of a psychologist. He thought he would give them a little task to see how they reacted. Christmas morning he prepared the stockings for the boys and for the pessimist he filled it up with the finest toys that could be found. And the stockings of the optimist he filled them with horse manure. Christmas morning the two boys came down. The pessimist arrived, grabbed his stocking full of beautiful toys. In a few minutes he was crying his eyes out. The father said, "What is wrong, son?" He said, "Father, just think, in a few days all these beautiful toys will be broken."

Later, in comes the optimist, grabs his stocking with a whoop of joy, and said, "Father, isn't it wonderful: Santa gave me a pony, only he got away."

The CHAIRMAN. I hope your pony did not get away. Is what Santa put in the stocking S. 3504? At least you have stated your case eloquently and persuasively.

We have quite a burden in this committee in trying to meet this question, whether to meet it by a halfway measure such as S. 3504 or whether to insist upon something that would be far more effective in meeting the shortage in cargo planes that the military frankly admit exists. That is a question we will have to solve.

I regret that more Senators are not here to hear your presentation, but they will have an opportunity to read it, and I am sure they will read it before we make our decision.

We thank you, sir.

Senator HUNT. Mr. Chairman, who does Mr. Marvin represent now? I see he is former chairman of the Interdepartmental Air Cargo Priorities Committee.

Mr. MARVIN. Senator, I do not represent a soul. I am just a private citizen who spent some time and a good deal of my own money doing research on this subject of air freight and preparedness and airlift and so forth.

As to why I spent so much time and effort, with a good deal of expense on the subject, the only satisfactory answer I am able to find is something in Mark Twain. I think he said, "Young man, do the right thing; you will thereby please a few people and astonish the rest."

I do not know if I pleased anybody, but you are the gentlemen I am trying to please, and some of the others, General Knerr and others who have been working on this.

Senator HUNT. What work are you now engaged in?

Mr. MARVIN. I am principally working on the study of air-cargo potentials in the international field to see how many aircraft could be gainfully employed in the import-export trade that would constitute a reserve for the national defense. The import-export trade seemed especially relevant to this defense problem because the over-water hops will call for the long-haul-type freighters which is apparently what the military need.

Also, it will be easier to lay hands on them for war use since our foreign trade is generally interrupted in the war, than it would be to

strip the domestic lines which would be involved with supply of our industries. You could not take many away.

Senator HUNT. Are you in the employ of any government or the Government at the present time?

Mr. MARVIN. No, sir; I am not.

Senator HUNT. That is all that I have, Mr. Chairman.

The CHAIRMAN. Thank you, Mr. Marvin.

Mr. MARVIN. Thank you, Senator.

The CHAIRMAN. The statement of Maj. Gen. Hugh J. Knerr, USAF (retired), may be made a part of the record at this point. (The statement is as follows:)

STATEMENT OF MAJ. GEN. HUGH J. KNERR, USAF (RETIRED), FORMER INSPECTOR GENERAL, USAF

Mr. Chairman and gentlemen of the committee, it is essential to the national interest that every possible delay to the development of adequate military airlift be eliminated now, in order that we may not be handicapped by inability to take advantage of the fleeting military opportunities that are certain to arise within the first few hours of a possible war, such as was the case in the last Pearl Harbor incident when the desperate need for any airlift at all could be satisfied only through commandeering airline equipment, an utterly impracticable procedure in modern warfare. The crux of the problem lies in the necessity for creating a paying industry out of the potential air-freight business not now being developed. This cannot be done, however, until the fact is recognized that air freight requires separate regulation and control on a coequal basis with the passenger business. So long as this basic requirement is ignored in favor of current procedures, national defense will suffer, with Pearl Harbor No. 2 just below the horizon.

The CHAIRMAN. Mr. John J. Klak, Independent Air Carriers Conference, Washington, D. C. Mr. Klak, you may proceed in your

own way.

STATEMENT OF JOHN J. KLACK, INDEPENDENT AIR CARRIERS CONFERENCE

Mr. KLAK. My name is John J. Klack, executive secretary and counsel of Independent Air Carriers Conference of America.

Senator Johnson and members of the committee, the organization for which I am making an appearance represents the independents commonly known as the large, irregular, or nonscheduled air carriers. The conference does not have a presentation for this committee, but wishes to go on record in this hearing as opposing-I repeat, opposing-bill S. 3504, and in favor of the original S. 237, or better still, the modified S. 3507.

The reasons for opposing S. 3504 have been fully outlined by Commander Marvin, and in his presentation the Independent Air Conference fully concurs. That is the only statement I wish to make, Senator Johnson, and I thank you for the privilege of appearing before this committee for that purpose.

The CHAIRMAN. We are very glad to have your views, sir. I am sure Commander Marvin will be very glad to have your support. Are there any questions, Senator?

Senator HUNT. No, sir.

Mr. KLAK. Thank you very much.

The CHAIRMAN. Mr. Peter J. Papadakos, president of the Gyrodyne Co. of America.

STATEMENT OF PETER J. PAPADAKOS, PRESIDENT, GYRODYNE CO OF AMERICA, INC.

Mr. PAPADAKOs. Senator Johnson, members of the committee. The Gyrodyne Co. of America is appearing here in support of the proposed legislation. It may be that our difficulties in securing sufficient funds properly to develop our project, which we feel could greatly improve civilian air transportation and save the military large sums of money annually, will be of some vaule to you in determining the necessity of appropriate legislation.

Basically, all of the proposed bills with which this hearing is concerned have the common aim of developing aircraft which will contribute to the economic and military strength of the United States. In no other industry does the commercial and military purchaser share any stronger common interest in product development than in the development and manufacture of aircraft. The legislation proposed recognizes that research and development costs of new type aircraft have approached the point where private industry can no longer carry the full burden. At the same time it is recognized that for military security reasons progress in such direction must be continued.

The economy of the country is no better than the transportation system which serves it. Reduced to the smallest unit no community lacking adequate transportation will continue for long as a desirable situs for either old or new industry. No section of the country lacks some examples of towns that were bypassed by the railroads and sank into economic oblivion. The same fate may well befall communities which, as air transportation becomes more important, do not enjoy any or adequate landing facilities. Many areas and communities not now possessing such facilities will never have them. The community that desires to be served by presently available commercial airplanes and those which will be used in the foreseeable future must not only now possess large expensive terminal facilities but must ready itself to expand such facilities-not only longer, more durable, runways but also newer and increasingly complex radio aids to navigation.

For various economic reasons many communities presently do not have a sufficiently large amount of airborne traffic, either passenger or cargo, to justify the large investment required for an airport with safe approaches, heavy concrete runways, and the numerous necessary radio aids. Both fortunate and rare is the area which has an easily accessible airport which lends itself to the expansion now foreseen as necessary for use by contemplated passenger and cargo type aircraft. The obvious way to surmount the difficulty of providing adequate facilities for aircraft is to develop a type of air vehicle not requiring the expenditures now needed for the maintenance of burdensome terminal facilities.

The assistance afforded by public funds in developing such a vehicle will not only bring to all communities the advantages of being accessible to air traffic, but it will also decrease the financial burden of every city and town now maintaining expensive facilities for fear of being left behind in the air age. The portion of airport maintenance now borne by airlines is paid for by the public whether in the form of passenger and cargo tariff or by post office payments. If only a small fraction of the sums now being expended for the mainte

nance of airports were channeled into the development of a satisfactory type of plane, the total bill would be much lower.

Čivilian air progress is closely interwoven with progress in the air by all branches of the Department of Defense. The financial burdens are common to both with the additional military one that various types of planes must be developed and maintained to fulfill varying duties under varying conditions. This has led to the necessity of spending large sums in development of specialized one-purpose aircraft.

The Gyrodyne Co., after several years of intensive engineering studies, arrived at what it believed will solve many of the problems of civilian and military air transportation. The ideal type of aircraft and the one which aircraft designers have been attempting to achieve is one which will take off and land vertically without the need of an airport and at the same time have a sufficiently high forward speed and an economical load capacity. It is apparent that such an aircraft must combine the characteristics of the airplane and the helicopter. In aviation parlance, it is termed a convertoplane. Many authorities have discussed the advantages of convertible aircraft in the past, but until about 6 months ago no one had built a successful convertoplane.

On November 30 of last year the Gyrodyne Co. of America, Inc., successfully flew its convertible experimental prototype. Since then, a number of flight tests have been made to substantiate the theory and to establish design criteria pertinent to the production design of commercial and military models. This new type of aircraft will be known as the Helidyne. For your information and to illustrate how enthusiastically this aircraft has been received by aviation writers, we submit herewith reprints from some of the leading aviation publications, both American and British.

A summary of the more obvious advantages of the Helidyne for use as commercial and military aircraft will enable you to judge why the development of such a ship should be fostered.

Maximum utility will be afforded by the Helidyne's ability to rise and descend vertically, to hover, fly sideways, and to cruise at a speed comparable to that of an airplane of equal capacity, and not needing any airport facilities.

Station-to-station traveling times will be less for the Helidyne than for any other type of surface or air vehicle, or combination thereof, for short- or medium-haul transportation. It will better the performance of helicopter and surface transportation by reason of its higher cruising speed, and will combine that speed with its ability to fly out of urban heliports to better fixed-wing aircraft travel times in all but long-distance hauls by eliminating the airport-to-city runs, and so forth.

An added safety feature of the Helidyne over the airplane is its ability to land safely on any terrain in case of power-plant failure. It is believed that this feature will encourage more people to use aerial transportation. In addition, this aircraft can maintain schedules under more adverse weather conditions than the airplane and does away with the necessity of complex and expensive instrumentlanding aids. The safety and economic advantages derived from this cannot be overemphasized. Accordingly, any city, town, or village in the country can now have the advantages of safe air transporta