REGULATORY AND QUASI-JUDICIAL AGENCIES

CHARACTER

From an administrative standpoint, the regulatory and quasi-judicial agencies of the Government are in some respects more important than even are the executive departments. They are clothed with extensive powers of regulation and investigation. Their functions closely resemble the proceedings of courts and it is because of this similarity that they are so often referred to as quasijudicial agencies. They issue complaints, give notices and hold hearings. In general, the hearing of matters is done through trial examiners, deputies, referees or similar officer, who hears testimony, hears and passes upon motions, rules as to what evidence is admissible, and otherwise acts in the same manner as a judge does. After the hearing is finished, the usual practice is to prepare a report of the findings or facts established at the hearing to the commission or board for consideration and action. In some instances, the trial examiner prepares recommendations and the text of the order for adoption by the full board or commission, as the case may be. In some agencies, as the Interstate Commerce Commission, an opportunity is afforded for the parties directly concerned to file exceptions to the proposed report and to request oral arguments. If no exceptions are filed, the agencies as a rule adopt the findings of the trial examiner. In any case, the commission or board is held finally responsible for the order, decision or other requirement that it may issue based upon the findings of the trial examiner.

The orders and decisions of practically all the quasijudicial agencies are subject to review by a designated court, and only when sustained by the court may the orders and decisions be enforced. Upon review all questions of the jurisdiction of such agencies, regularity of their proceedings, and all questions of constitutional right are open to examina

tion by the court. The Supreme Court has recently made this pertinent observation regarding these agencies as follows:

"Regulatory commissions are invested with broad powers within the sphere of duty assigned to them by law. Even in quasi-judicial proceedings their informed judgment exacts and receives a proper deference from courts when it has been reached with due submission to constitutional restraints."'"

It can be seen from the above quotation that judicial safeguards are present in all cases of action by the regulatory boards and commissions. They must conduct themselves in the cherished judicial tradition of fair play."

The following regulatory boards and commissions are independent for the most part from the direct control of the executive departments and for the sake of convenience are arranged in alphabetical order.

1 Ohio Bell Telephone Co. v. Public Utilities Commission of Ohio, 301 U. S. 304.

2 See leading cases: Morgan v. U. S., 304 U. S. 1; Mitchell v. Helvering, 303 U. S. 391; Del Veechio v. Bowers, 296 U. S. 280; Crowell v. Benson, 285 U. S. 22; Hibben v. Smith, 191 U. S. 310; Chin Yow v. U. S., 280 U. S. 8.

CREATION

CIVIL AERONAUTICS AUTHORITY

The Civil Aeronautics Authority was created by an act of Congress approved June 23, 1938 (52 Stat. 973), as an independent, regulatory or quasijudicial agency.

PURPOSE

The authority is to consider the following, among other things, as being in the public interest, and in accordance with the public convenience and necessity:

(a) The encouragement and development of an air-transportation system properly adapted to the present and future needs of the foreign and domestic commerce of the United States, of the Postal Service, and of the national defense;

(b) The regulation of air transportation in such manner as to recognize and preserve the inherent advantages of, assure the highest degree of safety in, and foster sound economic conditions in, such transportation, and to improve the relations between, and coordinate transportation by, air carriers;

(c) The promotion of adequate, economical, and efficient service by air carriers at reasonable charges, without unjust discrimination, undue preferences or advantages, or unfair competitive practices;

(d) Competition to the extent necessary to assure the sound development of an air-transportation system adapted to the needs of the foreign and domestic commerce of the United States, of the Postal Service, and of the national defense;

(e) The regulation of air commerce in such manner as to best promote its development and safety; and

(f) The encouragement and development of civil aeronautics.

The Authority is composed of five memORGANIZATION bers appointed by the President by and with the advice and consent of the Senate. One of its members is named annually by the President as Chairman. Another member is designated as Vice Chairman. The term of office of each member is six years and he may be removed by the President for inefficiency, neglect of duty, or malfeasance in office. An administrator is also appointed by the President by and with the advice and consent of the Senate without a definite term and is removable by the President whenever in his judgment, the Administrator fails to perform the executive functions assigned to him. Within the Authority is an Air Safety Board. Its members are appointed by the President by and with the advice and consent of the Senate for a term of six years. The Board may elect its own Chairman annually.

Not more than three members of the Authority may be appointed from the same political party and shall be appointed with due regard to their fitness. Each member of the Authority, Administrator, and each member of the Air Safety Board, must be a citizen of the United States, and no member of the Authority, Air Safety Board, or the Administrator can have any pecuniary interest in or own any stock in or bonds of any civil aeronautics enterprise.

The Bureau of Air Commerce of the Department of Commerce and the Bureau of Air Mail of the Interstate Commerce Commission were authorized to be transferred to the Authority and by Executive Order of the President such transfers were affected. The divisions in the Bureau of Air Commerce-administrative, airways engineering, airways operation, safety and planning, information and statistics, certificate and inspection, and regulation and enforcement-have been retained by the Authority with but minor changes in their sections. To this list has been added a new important division of economic regulation and private flying section. The Authority implemented its own powers by the creation of a General Counsel's and Secretary's office as provided in