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I am enclosing a copy of the tentative form ACA (Rev. Dec. 31, 1947) on which the objectionable provisions have been indicated together with a separate memorandum setting forth in detail our grounds for objections.
I shall appreciate it, therefore, if you will do everything you can to prevent the withdrawal of the allocated funds and to secure the deletion of the objectionable provisions of the Sponsor's Assurance Agreement so far as Logan Airport is concerned. With kind personal regards. Sincerely yours,
ROBERT F. BRADFORD.
(Form ACA (Rev. 12-31-47), Department of Commerce, Civil Aeronautics Administration]
PART III. SPONSOR'S ASSURANCES
(Objectionable provisions are italicized] In order to furnish the Administrator the Sponsor's assurances required by the Act and the Regulations, the Sponsor hereby covenants and agrees with the United States, as follows:
1. These covenants shall become effective upon acceptance by the Sponsor of an offer of Federal aid for the Project or any portion thereof, made by the Administrator, and shall constitute a part of the Grant Agreement thus formed. These covenants shall remain in full force and effect throughout the useful life of the facilities developed under the Project but in any event not to exceed twenty years from the date of said acceptance of an offer of Federal aid.
2. The Airport will be operated as such and no activity will be permitted thereon which would interfere with the aeronautical use of the Airport. The Airport will at all times be operated for the use and benefit of the public, on fair and reasonable terms and without unjust discrimination. The Sponsor will permit use of the Airport, on reasonable terms and without unjust discrimination, for all classes and types of aeronautical activities up to the physical capacity of the Airport; Provided, That if the Sponsor determines such act to be necessary for reasons of safety, the Sponsor may exclude a class or type of aeronautical activity from the Airport until such time as the Administrator determies, and notifies the Sponsor, that such exclusion is not necessary for reasons of safety.
3. The Sponsor will not either directly or indirectly grant, exercise, or permit the exercise of, any exclusive right for the use of the Airport for Commercial flight operations, including air carrier transportation, rental of aircraft, conduct or charter flights, operation of a flight school, or the carrying on of any other service or operation requiring the use of aircraft.
4. The Sponsor will not hereafter, either directly or indirectly, grant, exercise, or permit any person or group of persons to exercise an exclusive right to sell or repair aircraft, aircraft engines, parts or accessories therefor or any combination thereof, at the Airport.
5. The Sponsor will not hereafter, either directly or indirectly, grant to any person or group of persons authorized to conduct at the airport any of the commercial operations described in paragraph 3 hereof, an exclusive right to sell aviation gasoline or oil at the Airport, and will not hereafter, either directly or indirectly, grant such an exclusive right to any other person or group of persons except on the following terms and conditions:
(a) All contracts for such concessions shall be let on the basis of competitive bidding after public advertisement according to the laws and regulations governing competitive bidding on other contracts of the Sponsor.
(6) All such contracts shall contain provisions, approved by the Administrator governing the minimum service which the contractor shall re:der and requiring the contractor to make fair and reasonable and nondiscriminatory charges for each unit of sale or service.
(c) No such contract shall be let for a term in excess of three years unless otherwise specifically authorized by the Administrator in accordance with such regulations as he may prescribe.
6. Nothing contained herein shall be construed to prohibit the granting or exercise of any exclusive right for the furnishing of nonaviation products and supplies or any service of a nonaeronautical nature.
7. The Sponsor will suitably operate and maintain the Airport and all facilities thereon or connected therewith which are necessary for airport purposes, other
than facilities owned or controlled by the United States; Provided, that nothing contained herein shall be construed to require that the Airport be operated and maintained for aeronautical uses during temporary periods when snow, flood, or other climatic conditions interfere substantially with such operation and mainte
Essential facilities, including night lighting system when installed, will be operated in such a manner as to assure their availability to all users of the Airport.
8. To the extent of its financial ability, the Sponsor will replace and repair all buildings, structures, and facilities developed under the Project which are destroyed or damaged, replacing or restoring them to a condition comparable to that preceding the destruction or damage, if such buildings, structures, and facilities are determined by the Administrator to be necessary for the normal operation of the Airport.
9. Insofar as is within its powers and reasonably possible, the Sponsor will prevent the use of any land either within or outside the boundaries of the Airport in any manner (including the construction, erection, alteration, or growth of any structure or other object thereon) which would create a hazard to the landing, taking-off or maneuvering of aircraft at the Airport, or otherwise limit the usefulness of the Airport. This objective will be accomplished either by the adoption and enforcement of a zoning ordinance and regulations or by the acquisitions of easements or other interests in lands or airspace, or by both such methods. With respect to land outside the boundaries of the airport, the Sponsor will also remove or cause to be removed any growth, structure, or other objects thereon which would be a hazard to the landing, taking-off, or maneuvering of aircraft at the Airport, or if such removal is not feasible, will mark or light such growth, structure, or other object as an airport obstruction or cause it to be so marked or lighted. The airport approach standards to be followed in performing the convenants contained in this paragraph shall be those established by the Administrator in Office of Airports Drawing No. 672 dated September 1, 1946, unless otherwise authorized by the Administrator.
10. All facilities of the Airport developed with Federal aid and all those usable for the landing and taking-off of aircraft will be available to the United States at all times, without charge, for use by military and naval aircraft in common with other aircraft, except that if the use by military and naval aircraft is substantial, a reasonable share, proportional to such use, of the cost of operating and maintaining facilities so used, may be charged. The amount of use to be considered "substantial” and the charges to be made therefor shall be determined by the Sponsor and the using agency.
11. The Sponsor will furnish to any civil agency of the United States, without charge (except for light, heat, janitor service, and similar facilities and services at the reasonable cost thereof), such space in airport buildings as may be reasonably adequate for use in connection with any airport traffic control activities, weather-reporting activities, and communications activities related to airport air traffic control, which are necessary to the safe and efficient operation of the Airport and which such agency may deem necessary to establish and maintain at the Airport for such purpose.
12. After completion of the Project and during the term of these covenants, the Sponsor will maintain a current system of Airport accounts and records, using a system of its own choice, sufficient to provide annual statements of income and expense. It will furnish the Administrator with such annual or special Airport financial and operational reports as it may publish he may reasonably request. Such reports may be submitted to the Administrator on forms furnished by him, or may be submitted in such other manner as the Sponsor elects, provided the essential data are furnished. The Airport and all airport records and documents affecting the Airport, including deeds, leases, operation and use agreements, regulations, and other instruments, will be available for inspection by any duly authorized representative of the administrator upon reasonable request. The Sponsor will furnish to the Administrator, upon request true copies of any such documents.
13. The Sponsor will not enter into any transaction which would operate to deprive it of any of the rights and powers necessary to perform any or all of the covenants made herein, unless by such transaction the obligation to perform all such covenants is assumed by another public agency eligible under the Act and the Regulations to assume such obligations and having the power, authority and financial resources to carry out all such obligations.
If any arrangement is made for management or operation of the airport by any agency or person other than the Sponsor or an employee of the Sponsor, the Sponsor will reserve sufficient powers and authority to insure that the Airport will be operated and maintained in accordance with the Act, the regulations, and these covenants.
14. The Sponsor will maintain a master plan of the Airport having the current approval of the Administrator. Such plan shall show building areas, approach areas, and landing area, indicating present and future proposed development. The Sponsor will conform to such master plan in making any future improvements or changes at the Airport which, if made contrary to the master plan, might adversely affect the safety, utility, or efficiency of the Airport.
15. (a) The Sponsor will acquire within a re able time but in any event prior to the start of any construction work under the Project, the following property interests in the following tracts of land on which such construction work is to be performed, all of which lands are described and identified on the survey map which is attached hereto and identified as part of Exhibit A.
(6) The Sponsor will acquire within a reasonable time but in any event prior to the completion of all construction work under the Project, the following property interests in the following tract of land which are to be developed or used as part of or in connection with the Airport as it will be upon completion of the Project, all of which lands are described and identified on the survey map which is attached hereto and identified as part of exhibit A.
(c) The Sponsor will acquire whenever the Administrator determines such further development of the Airport to be necessary, the following property interests in the following tracts of land which are neccessary to develop the Airport to the class proposed in the current revision of the National Airport Plan formulated by the Administrator, all of which lands are described and identified on the survey map which is attached hereto and identified as part of Exhibit A.
16. Unless the context otherwise requires, all terms used in these covenants which are defined in the Act and the Regulations shall have the meanings assigned to them therein.
PART IV. PROJECT AGREEMENT
If the Project of any portion thereof is approved by the Administrator and an offer of Federal aid for such approved project is accepted by the Sponsor, it is understood and agreed that all airport development included in such project will be accomplished in accordance with the Act and the Regulations, the plans and specifications for such development, as approved by the Administrator, and the Grant Agreement with respect to the project. It is further agreed that all accounts and records pertaining to the costs of such project will be kept in accordance with a standard system of accounting used by the Sponsor prescribed by the Administrator.
In witness whereof, the Sponsor has caused this Project Application to be duly executed in its name, this
MEMORANDUM OF OBJECTIONS TO CERTAIN PROVISIONS OF DEPARTMENT OF
COMMERCE CAA FORM ACA (REV. DECEMBER 31, 1947), PROJECT APPLICATION FOR FEDERAL FUNDS
PART III. SPONSORS ASSURANCES
Paragraph 2.-We object to the entire third sentence of paragraph two and recommend it be deleted.
Reason: The acceptance of the provisions of this sentence would take away the right of the Commonwealth to determine the safety factors of the flying operations at the airport and place such regulations in the hands of CAA. This is a State administrative problem and no part of the airport grant is for administrative purposes.
Paragraph 5b.—We object to the words "provided by the administrator govern. ing the minimum services which the contractor shall render” and recommend their deletion.
Reason: The control of contracts should remain within the jurisdiction of the Commonwealth and not with the Administrator of CAA.
Determination of services to be received under contracts is an administrative problem and no part of the airport grant is for administrative purposes.
Paragraph 5c.—We object to the entire paragraph and recommend its deletion.
Reason: This paragraph prohibits the granting of any contract for the sale of aviation gas and oil for a period longer than 3 years. Judgment on this question should be left to the Commonwealth.
The State should be permitted to determine advantageous contract terms. Why should CAA be concerned with only petroleum contracts? An administrative problem and no part of Federal grant is for administrative purposes.
Paragraph 12.—We object to the words "he may reasonably request” at the end of the second sentence and recommend substituting therefor the words "it may publish."
Reason: The assurance as written would require the Commonwealth to furnish the administrator with annual or special airport reports on every phase of administrative and operational activities whether or not these activities are related to projects covered by the Federal grants. But more serious, it would force the State to report on Federal forms always so different from State accounting procedures. By substituting the words "it may publish” the Commonwealth will furnish the Administrator with any regular or special reports published by the Commonwealth or special reports if the Commonwealth deems them reasonable.
Paragraph 12.—Third sentence, strike out the words “on forms furnished by him, or may be submitted-providing the essential data are furnished.”
Reason: This section of the assurance simply confirms, but in a stronger manner, the thought that reports must be submitted to the Administrator on all phases of the airport management, on forms requested by the Administrator. The Commonwealth is willing to furnish such reports on any subject on forms as it may publish.
Paragraph 12.—We object to the entire last sentence and recommend its deletion.
Reason: This part of the assurance as written would force the Commonwealth to furnish the Administrator of CAA with all copies of all airport records, leases, agreements, and regulations of all airport operation.
The Commonwealth is perfectly willing to make these records available for inspection by the Administrator of CAA at all times. It does not believe it should be forced to furnish copies at the will of the Administrator.
Paragraph 13.—We object to the entire last sentence and recommend its deletion.
Reason: This section of the assurance as printed refers specifically to a small or private airport whose ownership might change and therefore relieves the responsibility of the new owner. It would also confuse the organizational structure of the operation and management of Logan Airport. We can see no chance of Logan Airport changing ownership with its present investment.
Paragraph 14.-We object to the words at the last part of the first sentence reading “have the current approval of the Administrator" and recommend their deletion. We also object to the entire last sentence in this paragraph and recommend its deletion.
Reason: This assurance as printed would force the Commonwealth to submit its already approved and partial operating plans to the administrator for approval and would prevent any changes without the approval of the Administrator, whether or not such changes were in any way related to the "project” for which a grant was made.
Paragraph 16.—We object to the words "and the regulations” in the second line of this assurance and recommend their deletion.
Reason: The Commonwealth is willing to comply with any congressional mandate of the act and to be bound by any definitions contained in the act, but objects to being forced to abide by regulations established by the Administrator some time in the future.
PART IV. PROJECT AGREEMENT We object to the last four words in the paragraph "prescribed by the Administrator” and recommend their deletion, substituting therefor the words “used by the sponsor.
Reason: The Commonwealth is willing to keep accounts and records pertaining to "project” for which Federal funds have been supplied in accordance with the standard State system, but object to keeping accounts in systems prescribed by the Administrator which would confuse the entire accounting of the field and add an additional amount of work.
PRESS RELEASE FROM THE OFFICE OF GOVERNOR ROBERT F. BRADFORD
[For release April 16, 1948] Governor Robert F. Bradford today announced that his special counsel, Harold E. Stevens, and Assistant Attorney General Sumner W. Elton will confer in Washington Monday with leaders of the Massachusetts' congressional delegation relative to the $600,000 in Federal funds allocated to the Logan International Airport, which have been withheld from the Commonwealth.
At the same time the chief executive released the text of a resolution passed unanimously at this week's meeting of the executive council condemning interference by the Civil Aeronautics Administration with the State's operation of the airport.
The resolution states that the CAA's action was done "without congressional warrant” and “would require violation of the Massachusetts statutes" if their dictum was complied with. It further states that following the action prescribed by the CAA “would seriously interfere with, if not make impossible, the operation of the airport on a self-supporting basis.”
The resolution follows:
"RESOLUTION ADOPTED BY THE EXECUTIVE COUNCIL, COMMONWEALTH OF
MASSACHUSETTS, APRIL 14, 1948 "Whereas the Commonwealth of Massachusetts has invested approximately $50,000,000 in the General Edward Logan Airport, which is operating at an annual deficiency of about $75,000 and should, as promptly as possible, be placed on a self-supporting basis and
"Whereas to accomplish this purpose the department of public works, which is the operating agency, has been directed by act of the legislature to establish a schedule of charges at the airport on items including the ‘sale of gasoline or other aviation fuels, oils or other articles and supplies' and
"Whereas the Civil Aeronautics Administration has allocated $600,000 from Federal funds to Logan Airport under the terms of the Federal Airport Act, which amount urgently needed to assist in meeting the cost of large expenditures required to complete the development of the airport, but has refused to allow the Commonwealth to receive said sum unless the Commonwealth binds itself for 20 years not to impose any fee on supplies delivered at the airport for operation of aircraft other than a charge for the cost of services rendered by the airport in connection therewith, and
“Whereas such interference by the Civil Aeronautics Administration in the operation by the Commonwealth of Logan Airport as the price of receiving Federal funds, which represent only a small fraction of the money paid by ciitzens of the Commonwealth to the Federal Government, is without congressional warrant, would require violation of the Massachusetts statutes and would seriously interfere with, if not make impossible, the operation of the airport on a self-supporting basis: Now, Therefore, be it
“Resolved, That the executive council unanimously opposes such unwarranted interference by a Federal administrative agency and be it further
“Resolved, That each member of the Massachusetts delegation to the Congress of the United States be sent a copy of this resolution and be requested to take immediate action to protect the Commonwealth from such abuse of authority by the Civil Aeronautics Administration.”
Mr. HESELTON. Next, I would like to ask you if the airport you refer to that does have this landing-fee schedule that you describe, is the Minneapolis-St. Paul Airport?
Mr. ELTON. That is the airport; yes.
Mr. HESELTON. I would like to ask you if you have any information at all as to the amount of revenue the oil companies derive from the sale of gasoline and oil at the Logan Airport?
Mr. ELTON. I do not have. We were able to estimate the number of gallons used at Logan through the requests for tax refunds at the Commissioner's office, but we have no figures on it.
Mr. HESELTON. If you will supply it to me, I would like to see that it goes in the record.