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In section 310 (d), page 31, line 9, strike out the word "to" and insert in lieu thereof "thereto".

Comment. The purpose of this proposal is to cure a grammatical defect.

On page 31, change the semicolon in line 11 to a comma and insert thereafter the following: "and to make such rates effective from such date as it shall determine to be proper;".

On page 46, in line 15, preceding the word "sections”, insert “(a)”.
On page 47, immediately succeeding line 3, insert the following paragraph :

"(b) Notwithstanding any other provision of this part, all orders, reports, rules, or regulations made by the Commission or any court of competent jurisdiction under any provision of law repealed or amended by this part and in effect at the time of the passage of this part shall continue in effect until modified, terminated, superseded, or set aside by the Commission or such court or by operation of law, and all suits, actions, or proceedings instituted under any provision of law repealed or amended by this part and pending before the Commission or such court at the time of the passage of this part shall be continued by the Commission or such court as though originally commenced under this part: Provided, That the Commission in its discretion may reopen proceedings decided under any provision of law repealed or amended by this part and dispose of such proceedings under the provisions of this part or consolidate them with proceedings instituted hereunder, and in such case the Commission shall permit the parties to such proceedings to submit evidence and arguments, in addition to evidence and arguments submitted prior to the passage of this part, in support of or in opposition to the application or petition by which such proceeding was instituted.”

Comment.The foregoing amendments are necessary in order to carry forward under the new legislative jurisdiction any unfinished proceedings begun under acts repealed by this bill, and continues any undecided proceedings in court. Evidence and arguments submitted prior to the enactment of the bill are preserved for appropriate future use, and the present authority of the Commission to fix appropriately the effective date of its rate decisions is likewise specifically preserved.

In section 311 (b) (4), page 37, after the period on line 18, strike out the remainder of the line and all of lines 19-23.

Comment.-Because of the fact, peculiar to the air-carrier industry, that capital must be raised largely by those actually participating in the industry, it is desirable that this restriction should not apply at the present time. At some time in the future such a restriction may be found desirable. However, as it stands in the bill, it is an absolute prohibition. The immediate need facing most of the air carriers to secure adequate capital should be recognized with a minimum of restrictive provisions in the bill.

No such prohibition appears in the Motor Carrier Act, which, throughout, has. served as a model for this proposed legislation.

Strike out all of section 312 on page 40 (and renumber the succeeding sections of the bill accordingly).

Comment.Mr. Crowley, in his testimony before the Senate committee, objected to eliminating the carriers from the Securities Exchange Commission, by which they are now controlled. The carriers have no reason to differ with Mr. Crowley on this point. Regulation of the issuance of securities has already begun in the Securities Exchange Commission, and a number of issues have, in fact, been authorized. The Securities Act is carefully formulated, the carriers have become adjusted to it, and it would appear that the reason for placing the issuance of securities under Interstate Commerce Commission control in the case of railroads does not now obtain in the case of the air carriers in view of the legislation now on the books governing this important matter.

On page 45, strike out the entire paragraph beginning on line 23, and insert in lieu thereof the following:

“Sec. 317. (a) The Commission (1) shall establish a Bureau of Air Transport; (2) shall appoint a Director thereof who shall receive a salary of $10,000 per annum; (3) shall execute and administer through such Bureau all of the provisions of this part assigned to or pertaining to the Commission; and (4) is authorized to employ, and to fix the compensation of such experts, assistants, special agents, examiners, attorneys, and other employees as in its judgment may be necessary or advisable for the effective administration of this part, and the expenses of such employment shall be paid out of the appropriation for the administration of this part. Any organization or activity of the Commission dealing with any phase of regulation of air transportation and in exist

ence on the date of the passage of this part, shall forthwith be transferred to and become a part of the organization of the Bureau of Air Transport hereby created.”

On page 46, subsequent to line 9, insert the following paragraph:

"(c) The members of the Commission, or any of its employees or agents, are hereby authorized to travel as the Commission may direct, by any means of air, land, or water transportation, including the use of private or public carriers, and such expenditures as are incurred thereby, and for travel to and from airports and centers of population and other points, necessary in order to carry out the provisions of this part, shall be allowed and paid as travel, and not included in per diem, on itemized vouchers therefor approved by the chairman of the Commission.”

Comment.—The two foregoing amendments are proposed in order to utilize the wise provisions of the original S. 2 on these subjects.

On page 47, line 2, immediately after the semicolon, insert the following: "the Act of January 31, 1931 (Public, No. 586, 71st Cong. ; sec. 6 of the Act of June 16, 1933, Public, No. 78, 73d Cong.);"

Comment.—This amendment cures a defect in the repealer, which with the abandonment of the mail contract system, should remove from affect all of the legislative provisions under which the present mail contracts are operated.

On page 47, immediately after line 8, insert the following section :

"EMPLOYEES

"SEC. 321. Nothing herein contained shall be construed in any way to modify or otherwise affect the duty of air carriers to recognize the right of any and all their employees to bargain collectively through representatives of their own choosing, as required by the Act of April 10, 1936 (Public, No. 487, 74th Cong.); or in any other manner to modify, affect, or repeal the said Act or to relieve air carriers therefrom with respect to their relations with their employees or otherwise."

In line 10 of the said page 47, strike out "321” and insert in lieu thereof "322”.

In line 16 of the said page 47, strike out "322” and insert in lieu thereof "323".

Comment.-The foregoing amendments are proposed for the purpose of assuring that no rights of employees under the Railway Labor Act will be abrogated or affected under this legislation.

The CHAIRMAN. The committee will adjourn until next Tuesday morning. We will have a brief executive session.

We thank you, Colonel.
Mr. GORRELL. Thank you.
(Thereupon the committee adjourned as above indicated.)

66TH CONGRESS, 1 HOUSE OF REPRESENTATIVES | REPT. 637, 2d Session.

Part 2

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WAR EXPENDITURES-AVIATION

FEBRUARY 16, 1920.-Ordered to be printed

Mr. LEA, from the Select Committee on Expenditures in the War

Department, submitted the following

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During the war America established and maintained more than 50 aviation training schools of various kinds in this country and Europe in which thousands of our young men were trained. She produced 11,760 airplanes and at the close of the war was manufacturing them at the rate of 23,000 a year; she produced 30,630 aeronautical engines which had an aggregate horsepower equal to approximately one-eighth of the total horsepower of all the locomotives in the United States. She received and paid for 6,745 engines and 5,071 planes from the Allies, of which over 2,300 were service planes used by the American forces in Europe. On the day of the armistice she had 1,620 service planes available for use on the front lines. She furnished the materials and supplies in vast quantities that made possible the maintenance of the allied air forces and finally resulted in their predominance by nearly 100 percent on the western front. In machines which she owned, her fliers went to the front and established part of the most brilliant record of the war. For each American in our air forces who perished in combat, an average of over two and one-half of the enemy fell. Thousands of patriotic Americans faithfully, intelligently, and selfsacrificingly contributed to this program of accomplishment. For it all, the majority of this committee has neither recognition nor commendation. They can find only faults. The reward they offer for this service to their country by their countrymen is snarling criticism, fault-finding complaints, and destructive vituperation.

Neither time nor space makes it practical to reply in detail to many of its features that might be discussed. The minority believes that the best reply that can be made to the exaggerations and misconceptions set forth in the majority report is a brief recital of the development of our aircraft service, what was done during the war, and the reasons therefor.

PREWAR STATUS

Out of the funds appropriated for the Army, the War Department, in 1898, allotted $50,000 for aernautical purposes. Nothing further in the way of appropriations was made until 10 years later.

The initial public flight of the Wright airplane at Fort Myer in 1908 induced temporary concrete interest of the United States in

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aviation from a military standpoint (3562). On the 23d day of December 1907 the Signal Corps of the Army advertised for a heavier-than-air machine, the main requirements of which was that it would remain continuously in the air for one hour and develop a speed of at least 36 miles per hour. The trial flight of the Wright machine at Fort Myer in September 1908 fulfilled the requirements of the Army specification in the presence of the President and Members of the Cabinet and of the Congress. One machine was thereupon purchased out of the $30,000 allotted from Army funds during that and the following year. During the next seven years the total appropriations of the United States for the development of aircraft and military aeronautics amounted to less than $1,000,000. The first specific appropriation by Congress for aeronautical purposes was $125,000 on the 3d of March 1911, followed by $100,000 in August 1912; $125,000 in 1913; $250,000 in 1914; and $300,000 in 1915 (276).

At the beginning of the year in which the World War started, the United States ranked fourteenth among the nations of the world in the amount contributed to the development of aviation. The rating was as follows: Germany $28,000,000 | Japan..

$1,500,000 France 22,000,000 China

700,000 12, 000, 000 Bulgaria.

600,000 Italy -8,000,000 Spain.

550,000 Austria 5,000,000 Brazil.

500,000 Great Britain.. 3,000,000 United States.

430,000 Belgium----

2,000,000 In the meantime other nations, particularly France, comprehended the meaning of the successful trial flight at Fort Myer and became responsible for aircraft advancement for the succeeding nine years (3563).

Military aviation was given its first distinct recognition under the act of July 18, 1914, establishing the Aviation Section.

On the 8th of December 1917, the department called to the attention of Congress the importance of aviation as manifested in the European war, and asked an appropriation of $1,006,300. On recommendation of Secretary Garrison this amount was reduced to $400,000. Congress allowed the reduced amount of $300,000 in the following March.

From 1908 to 1916 the total number of experimental and other types of airplane engines delivered for the use of the United States Army was 59 (p. 497). During the year 1916 the total of such engines delivered was 134 (pp. 492-497). The total number of airplanes of experimental and other types delivered for the use of the Army beginning with 1908, to 1916, was 59 (p. 509). The number of such planes delivered during the year 1916 was 83 (p. 509). None of these engines and planes were of what is now called the serviceplane type. They were purely experimental and elementary training planes (344, 388).

At the time Newton D. Baker became Secretary of War in March 1916, the United States had about 16 airplanes" (6). Immediately following his appointment Secretary Baker urged an emergency appropriation from Congress and upon the 31st day of the month when he took office an emergency appropriation of $500,000 was granted to purchase airplanes.

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