As I mentioned earlier, we have submitted background material which covers our legislative authority, current organization chart, biographical sketches of our key personnel, growth of the air transportation industry, and the most urgent and difficult problems currently facing the Board.

(The material referred to follows:)

LEGISLATIVE AUTHORITY OF CIVIL AERONAUTICS BOARD

The Civil Aeronautics Board derives its authority from and is organized in accordance with the Federal Aviation Act of 1958 (49 U.S.C. 1301, et seq.) which, insofar as the Board's principal functions are concerned, is largely an extension of the Civil Aeronautics Act of 1938. In general, the CAB performs economic regulation and promotion of air transportation. (The safety regulation and accident investigations functions, which have been carried out under titles VI and VII of the Act, will be transferred by the Department of Transportation Act (80 Stat. 931) to the National Transportation Safety Board in the Department of Transportation on the effective date of such Act.)

The keystone of the economic regulatory program established by the Act is that air carriers must obtain from the CAB certificates of public convenience and necessity before they may lawfully engage in air transportation.

Related to this is the requirement that Board permission be obtained before a carrier may suspend or discontinue authorized service.

The CAB also licenses operations into this country by foreign air carriers. In addition to these basic licensing functions, the Board's economic regulatory powers and duties include, among others, supervision over the rates and practices of air carriers; the fixing of rates for the carriage of mail including, in appropriate cases, subsidy for loss operations; the approval or disapproval of air carrier mergers, acquisitions of control, and other inter-carrier relationships and agreements; and the prevention of unfair competitive practices in air transportation.

In sum, the Act establishes what is essentially a typical program of public utility regulation, with the additional factor that the CAB is commanded by the Act affirmatively to promote air transportation.

While not technically a part of the economic regulatory program, it should also be noted that the CAB participates in the negotiation of agreements between the United States and foreign nations relating to the exchange of international air routes.

BIOGRAPHICAL SKETCH OF CHARLES S. MURPHY, CHAIRMAN, CIVIL AERONAUTICS BOARD

Appointed to CAB by President Johnson on April 28, 1965 and at the same time was designated Chairman to fill the unexpired term of Chairman Alan S. Boyd which runs to January 1, 1969. Born August 20, 1909 in Wallace, N.C. Received bachelor of arts degree in 1931 and law degree in 1934, both from Duke University. Became law assistant for legislative counsel, United States Senate in 1934. Served as legislative counsel from 1936 until 1947 when appointed administrative assistant to President Truman. In 1950 became Special Counsel to the President and was principal staff assistant on legislation. Practiced law 1953 to 1961 in Washington, D.C. Appointed by President Kennedy in 1961 as Under Secretary of Agriculture, with general supervisory responsibility for all the Departments' activities and agencies. Member Supreme Court, American Bar Association, North Carolina Bar Association. Married Kate Chestney Graham of

Durham, N.C., in 1931. Parents of two daughters and a son.

BIOGRAPHICAL SKETCH OF ROBERT T. MURPHY, VICE CHAIRMAN, CIVIL

AERONAUTICS BOARD

Appointed to CAB March 15, 1961 by President Kennedy and reappointed to second six-year term October 13, 1966 by President Johnson. Designated Vice Chairman March 22, 1961. Born March 5, 1915 at Providence, Rhode Island. Graduate La Salle Academy, Providence, Rhode Island; Providence College in 1936, and Georgetown University Law School in 1940. Engaged in private practice in Rhode Island and Washington, D.C. Served as special counsel United States Senate Commerce Committee, counsel Senate Aviation Subcommittee, and

participated in drafting Federal Aviation Act and other aeronautical legislation. Married Anna L. Meenagh of Providence, Rhode Island. Parents of three sons.

BIOGRAPHICAL SKETCH OF G. JOSEPH MINETTI, MEMBER, CIVIL AERONAUTICS BOARD Appointed to CAB December 8, 1955 by President Eisenhower and took office June 11, 1956. Reappointed for six-year term March 5, 1962 by President Kennedy. Born April 21, 1907 in New York City, graduate Fordham University and St. John's University, receiving bachelor of science degree from Fordham and bachleor of laws and doctor of jurisprudence degree from St. John's. Taught economics, history and government at St. John's prior to appointment in 1937 as special assistant district attorney of Kings County, New York. In 1940, appointed and served under three attorneys general, Robert H. Jackson, Francis Biddle and present Supreme Court Justice Tom C. Clark, through 1946 as special assistant for United States attorney general in antitrust division. Later served as first deputy commissioner, Department of Investigations, City of New York; first deputy commissioner and commissioner of New York Department of Marine and Aviation; executive assistant to deputy mayor of City of New York, and commissioner of New York City Board of Transportation. Nominated August 5, 1954 by President Eisenhower as member of Federal Maritime Board. Served August 28, 1954 to June 10, 1956 on Maritime Board. Served in Counter Intelligence Corps of Army during World War II. Married Jean Kerr McCarthy. Parents of daughter, Tierney Elizabeth.

BIOGRAPHICAL SKETCH OF WHITNEY GILLILAND, MEMBER, CIVIL AERONAUTICS BOARD

Appointed to CAB by President Eisenhower November 16, 1959 and a sixyear term February 4, 1960. Appointed to second six-year term by President Johnson October 12, 1965. Served as chairman April 1960 through February 1961. Born January 13, 1904 at Glenwood, Iowa. Attended Iowa State University and the University of Nebraska. He was admitted to the bar in 1927 and, except for a period of service as an Iowa District judge, practiced law in Iowa until he came to Washington as an assistant to the Secretary of Agriculture in 1953. Later that year he was appointed chairman of the War Claims Commission and in 1954 chairman of the Foreign Claims Settlement Commission of the United States. He continued in that capacity until he came to the Board. Married Virginia Wegmann of Hastings, Nebraska. Parents of two sons.

BIOGRAPHICAL SKETCH OF JOHN G. ADAMS, MEMBER, CIVIL AERONAUTICS BOARD Nominated March 26, 1965 by President Johnson as a Board Member for a sixyear term ending December 31, 1970. Veteran of nearly twenty years in the government, and with Civil Aeronautics Board in various capacities since 1958. Other government positions include service as General Counsel of the Army 195355, Legislative Counsel of the Defense Department 1949-1953, and Clerk of the Senate Armed Services Committee 1947-1949. Also served during 1957 to 1958 as a Consultant on Organization and Management to the Atomic Energy Commission. Graduate of the Law School of the University of South Dakota; has an L.L.M. degree from George Washington University. Member of the bars of South Dakota and the District of Columbia. Served three years in Europe as an army officer in World War II. Married Margaret P. Williams of Woodstock, Virginia. Parents of daughter, Rebecca.

BIOGRAPHICAL SKETCH OF CHARLES F. KIEFER, EXECUTIVE DIRECTOR, CIVIL AERONAUTICS BOARD

Charles F. Kiefer, 55, 5302 18th Street N., Arlington, Virginia 22205.

With CAB since May 1, 1966 as Executive Director. Entered Federal service in 1931; 32 years with Agriculture Department in the general management field.

Held positions of administrative assistant, Bureau of Agricultural Economics; management analyst, budget officer in Production and Marketing Administration; assistant director, PMA commodity office in New York City; director of commodity office, Commodity Stabilization Service in Boston; assistant to deputy administrator, Commodity Stabilization Service; executive director, Management Operations Staff, Agricultural Economics; director, Office of Management Ap praisal, and Systems Development, a staff office of Secretary of Agriculture. Twice served with Ford Foundation as a consultant to the Government of India in the fields of administration and Federal-State relations.

BIOGRAPHICAL SKETCH OF JOSEPH B. GOLDMAN, GENERAL COUNSEL, CIVIL AERONAUTICS BOARD

Joseph B. Goldman, 50, 5250 Linnean Avenue, N.W., Washington, D.C. 20015. With CAB for 20 years; Presently the Board's General Counsel. Prior experience U.S. Department of Justice, Supreme Court Section, Claims Division; Office of Price Administration; Bituminous Coal Consumer's Counsel.

BIOGRAPHICAL SKETCH OF IRVING ROTH, DIRECTOR, BUREAU OF ECONOMICS, CIVIL AERONAUTICS BOARD

Irving Roth, 53, 8204 Kenfield Court, Bethesda, Maryland 20034. With CAB for 25 years; presently Director Bureau of Economics. Prior experience employed on CAB staff since July 1941 in various aspects of air carrier economic regulation. During this period, actively participated in or supervised staff participation in: Subsidy rate cases of both domestic and international airlines; IATA major rate developments; and route cases of importance. Has held positions successively of Rate Analyst; Chief of the Rates Division; Associate Director of the Bureau of Air Operations; Director of the Bureau of Economic Regulation; and since a Board reorganization in October 1965, Director of the Bureau of Economics. In the latter position, is the chief advisor to the Board on economic policy formulation, prepares comprehensive plans and programs with respect to the economic regulation and development of air transportation, and is responsible for the economic research function. SEC-Public Utilities Division-3 years-1938-1941. FCC-Telephone Rates Staff-3 years-19351938.

BIOGRAPHICAL SKETCH OF ALPHONSE M. ANDREWS, DIRECTOR, BUreau of OPERATING RIGHTS, CIVIL AERONAUTICS BOARD

Alphonse M. Andrews, 47, 6508 Pine Court, Annandale, Virginia 22003. With CAB since December 11, 1941; presently Director, Bureau of Operating Rights. Held positions of mail rate analyst in Accounting and Rates Division, Economic Bureau; liaison officer for Economic Bureau, responsible for coordinating Alaskan air transportation matters as well as CAB participation in the inter-agency Air Coordinating Committee; chief, Service Section, Routes Division; chief, Carrier Services and Agreements Section; assistant chief, Special Authorities Division, Bureau of Air Operations; assistant chief, Routes and Agreements Division, Bureau of Economic Regulation; deputy director, Bureau of Operating Rights.

Prior Federal service included service with Post Office Department (July 24, 1939-December 10, 1941).

BIOGRAPHICAL SKETCH OF JOSEPH C. WATSON, DIRECTOR, BUREAU OF
INTERNATIONAL AFFAIRS, CIVIL AERONAUTICS BOARD

Joseph C. Watson, 58, 6436 West Langley Lane, McLean, Virginia 22101.
With CAB for 25 years; presently Director, Bureau of International Affairs.
Prior experience joined United Air Lines as Traffic Representative in Los
Angeles in 1937. Came to the CAB in 1939 where he has been since, with the
exception of three years in Naval Aviation during the war and two years in the
U.S. Foreign Service as Civil Air Attache in Manila and Tokyo.

BIOGRAPHICAL SKETCH OF BOBBIE R. ALLEN, DIRECTOR, BUREAU OF SAFETY, CIVIL AERONAUTICS BOARD

Bobbie R. Allen, 45, 4904 Kingston Drive, Annandale, Virginia 22003. With CAB since May 1, 1959. Came to Board as air safety investigator, promoted to Chief, Chicago office; later appointed Deputy Director of Bureau of Safety in Washington, D.C. Director of Bureau of Safety since October 1, 1964. Navy pilot in World War II, recalled in 1952 during Korean crisis; served until 1959. Also served in Berlin crisis.

BIOGRAPHICAL SKETCH OF ROBERT BURSTEIN, DIRECTOR, BUREAU OF ENFORCEMENT, CIVIL AERONAUTICS BOARD

Robert Burstein, 56, 7815 Leesburg Pike, Falls Church, Virginia 22043.
Presently Director, Bureau of Enforcement. With the CAB since November

1947.

Prior experience served with a number of government agencies, including the Department of Justice, the National Labor Relations Board and the Railroad Retirement Board.

BIOGRAPHICAL SKETCH OF WARNER H. HORD, DIRECTOR, BUREAU OF ACCOUNTS AND STATISTICS, CIVIL AERONAUTICS BOARD

Warner H. Hord, 62, Ivory Hill Farm, West Friendship, Maryland 21794. With CAB for 22 years, presently is Director, Bureau of Accounts and Statistics.

Prior experiences: 1942-44-War Production Board, Procurement DivisionHead of Tax Review and Research Unit and served as liaison between the Bureau of Internal Revenue and all Price Adjustment Boards, 1936-42-Associate Professor of Accounting-Tulane University-taught accounting subjects and production management in both undergraduate and graduate schools, and 193035-Head of Business Administration Department, Central State Teachers College, Oklahoma, and also Professor of Business Administration teaching accounting and economics.

BIOGRAPHICAL SKETCH OF FRANCIS W. BROWN, CHIEF HEARING EXAMINER,

CIVIL AERONAUTICS BOARD

Francis W. Brown, 64, 3108 Worthington Street, N.W., Washington, D.C. 20015. With the Board since August 22, 1938, when it was created by Congress. Presently Chief Hearing Examiner.

Prior experience: Employed by the Interstate Commerce Commission April 16, 1925; served as an examiner in the Bureau of Valuation until July 1, 1933; employed by Agricultural Adjustment Administration from July 1933 to 1935; served as a hearing examiner in the Bureau of Air Mail of the Interstate Commerce Commission from 1935 to effective date of the Civil Aeronautics Act; served as examiner with CAB, Assistant Chief Examiner and became Chief Examiner March 1, 1945.

BIOGRAPHICAL SKETCH OF HAROLD R. SANDERSON, SECRETARY AND ASSISTANT EXECUTIVE DIRECTOR, CIVIL AERONAUTICS BOARD

Harold R. Sanderson, 53, 4125 N. 34th Street, Arlington, Virginia. With CAB since 1940, except for military service in World War II. Secretary and Assistant Executive Director.

Presently

Prior experience: With Reconstruction Finance Corporation and Post Office Inspection Service between 1933-40.

BIOGRAPHICAL SKETCH OF JOHN W. DREGGE, DIRECTOR OF OFFICE COMMUNITY AND CONGRESSIONAL RELATIONS OFFICE, CIVIL AERONATICS BOARD

John W. Dregge, 64, 1687 32nd Street N.W., Washington, D.C. 20007. With CAB since January 1, 1956 and Director of Office Community and Congressional Relations Office since March 1, 1961. Prior to that Chief of CAB's

Routes Division, Bureau of Economics. Earlier alternate U.S. representative to the international Civil Aviation Association (1953–55); military attache to U.S. Military Legation in Cairo, Egypt (December 1943 to February 1946).

BIOGRAPHICAL SKETCH OF JACK YOHE, DIRECTOR, OFFICE OF INFORMATION, CIVIL AERONAUTICS Board

Jack Yohe, 42, 1928 Foxhall Road, McLean, Virginia 22101.

With CAB since August 1, 1963 as Director, Office of Information. Prior to that aide to the late Congressman Francis E. Walter; copy editor of Washington D.C., Evening Star and earlier member of staff of Allentown, Pennsylvania, CallChronicle Newspapers Incorporated.

BIOGRAPHICAL SKETCH OF JOHN B. RUSSELL, ASSISTANT EXECUTIVE DIRECTOR FOR OPERATIONS, CIVIL AERONAUTICS BOARD

John B. Russell, 49, 1608 Highland Drive, Silver Spring, Maryland.

With the CAB since 1948. Presently Assistant Executive Director for Operations. Entered Federal Civil Service with the Treasury Department in 1936; subsequently employed with the Civil Service Commission, State Department, Social Security Administration and Rural Electrification Administration; and served with the U.S. Coast Guard during World War II.

STATEMENT OF THE CIVIL AERONAUTICS BOARD ON THE STATE OF THE
AIR TRANSPORT INDUSTRY

Some people have referred to the recent growth of the regulated air transport industry in both size and importance as an explosion. During the last five years this growth has been accompanied by an impressive improvement in the airlines' economic health.

Certificated air industry revenues have been growing at a rate that is nearly three times (2.8) greater than the growth of the U.S. economy. (See Chart 1). Many other encouraging trends are clearly reflected in the attached charts, which for the most part cover the period from calendar 1955 through fiscal 1966. And, as you will note, the industry's excellent traffic and financial results appear to be holding up remarkably well as we go into fiscal 1967.

Traffic, Capacity and Load Factor

In 1966, airline passenger, cargo and other traffic continued to grow at a high rate in response to a continually buoyant general economy, substantial air fare reductions, and the expansion of jet service into more and more medium and short-haul markets.

Despite the 43-day airline strike last summer, domestic trunk carriers flew nearly 16 percent more scheduled revenue passenger-miles in 1966 than in 1965. However, because of the strike and the delays in new aircraft deliveries, the trunks' seat-mile capacity in 1966 increased only 9.5 percent over 1965, and as a result passenger load factor rose sharply by 3.3 percentage points, to 58.5 percent, during the same period.

Although the strike curtailed trunk carrier operations, it had the opposite effect on the local service airlines. The passenger-mile traffic of these carriers increased by 32 percent in 1966 over 1965-just twice the excellent rate of growth experienced by the trunks. This is the highest growth rate shown by the local carriers since 1951. Although available seat-miles flown by the locals ncreased by 24 percent, the locals' passenger load factor jumped 3 percentage oints, to a new all-time peak of 50.2 percent, marking the first time in the ocals' 21-year history that the 50-percent level was exceeded.

If we consider the certificated route carrier industry as a whole, we note that or the 12 months ended September 30, 1966, combined passenger, cargo, and ther traffic in scheduled plus nonscheduled service was 24.7 percent higher than