A BILL TO PROMOTE THE DEVELOPMENT AND SAFETY CIVIL AVIATION AND AIR TRANSPORT APRIL 6 AND 7, 1938 Printed for the use of the Committee on Interstate Commerce John E. Benton, general solicitor, National Association of Railroad 15 William I. Denning, attorney for Wyoming Air Service, Inc.- James M. Eaton, vice president, American Export Airlines, Inc., Floyd E. Evans, State director of Aeronautics, Michigan _ _ J. Carter Fort, representing the Association of American Railroads, Edgar S. Gorrell, president, Air Transport Association of America, 20 H. L. Huber, Manhasset, N. Y., American Telephone & Telegraph 103 Henry Allen Johnston, committee on aeronautics, Association of the 17 Thomas A. Knowles, assistant to the president, American Zeppelin 135 Howard Osterhout, chairman, committee on aeronautical laws, New 96 CIVIL AVIATION AND AIR TRANSPORT WEDNESDAY, APRIL 6, 1938 UNITED STATES SENATE, SUBCOMMITTEE OF COMMITTEE ON INTERSTATE COMMERCE, Washington, D. C. The subcommittee met at 10 a. m., in room 249, Senate Office Building, Senator Harry S. Truman (chairman of the subcommittee) presiding. Present: Senators Truman and Schwartz. Senator TRUMAN. The subcommittee will come to order. This subcommittee has been appointed by Senator Wheeler to make a report on S. 3659 and any amendments and substitutes that are now before the committee to promote and develop air safety. Senator McCarran and Representative Lea have been working on a bill to regulate the aviation industry, for the past 21⁄2 years. I have been chairman of a subcommittee that has reported three bills on the subject, and before we start on this hearing I am going to read a statement: Before I start on a comparison of the bill and the substitute I want to make some references to H. R. 9738. 1. The section which appeared in H. R. 9738 giving to the President the general direction of executive functions has been omitted from the sutstitute. 2. The labor provision in the substitute is not like that in H. R. 9738 but is very similar, if not identical, with the labor provision in S. 3659. 3. The regulation of rates in foreign commerce provided for in the substitute differs from the regulation appearing in H. R. 9738 as printed and is more like the rate provisions in S. 3659. In H. R. 9738 as printed rates in foreign commerce were regulated as completely as rates in interstate commerce. In the substitute rates in foreign commerce are regulated only to the extent of prohibiting rebates and providing for the elimination of discriminations-but no power is given to fix rates in foreign commerce. Instead it is provided that the question of further regulation of rates in foreign commerce shall be the subject of a study by the Authority and a report to the Congress within the next year. In S. 3659 there is no regulation of rates in foreign commerce; for such commerce an air carrier is required only to file tariffs. Since our subcommittee held its hearings last year on S. 2 and S. 1760, there has been a change in the attitude toward aviation legislation. Last year there were uncertainty and doubt, with many points in dispute.. In particular several departments of the Government vitally concerned with aviation had important reservations and 1 |