Evening star., 1935-02-03
Fate of$75, ,OOOAriationR Report
Subject of Keen Speculation
Presidents Transmittal Message Be-
Iieued to Haze Killed Commissions
Recommendations of Policy.

panies which are losing heavily under
the terms Of their contracts lis legiti-
mate in order to save companies from
disastrous loss, but not in order to
provide profits"
The action of the President in spe-
cifically opposing the creation of an
Air Commerce Commission is regarded
as victory for those who have con-
tended the present Bureau Of Air
Commerce of the Commerce Depart
ment Is functioning adequately in the
administrative control of air COM
merce.
In 18 Of its policy recommenda-
tions the Federal Aviation Commits
sion refers to the proposed Air Com
merce Commission, which it proposed
should become an all-powerful agent
in dealing with the problems of air
transportation. Had the policies rec
ommended by the Federal Aviation
Commission been put into effect the
present Bureau of Air Commerce
would have been robbed Of virtually
all Of its powers.
Heart" Stricken Out.
In opposing the creation of the pro-
posed commission, the President struck
out what members of the Federal
Aviation Commission regarded as the
heart Of their recommendations cov-
ering air commerce.
we recommend, as of paramount
importance to accomplishing the ef-
fectiveness Of many Of our other rec
concentrations already presented, that
an air commerce commission should
be created and given all the authority
that it needs to do its work." the
commission said in the final sentence
Of the summation of its 254-page re-
port.
The commission had outlined for
the proposed new controlling body
list Of powers and functions which it
admitted in its report constitute "a
formidable budget Of responsibility"
It was to have been an organization
which would have taken over powers
now vested in the Secretary of Com
merce, the Bureau Of Air Commerce,
the Post Office Department, the Re-
construction Finance Corp, the Fed
eral Labor Board and the Bureau Of
Mines.
The proposed commission would
have issued certificates of convenience
and necessity to airlines; approved
conditions Of service and charges to
be made by airlines; supervised the
financial structure of the lines and
their ownership; fixed postal pay
mentS for carriers Of airmail, both do
mestic and foreign: allocated direct
subsidy aids to needy companies; ap-
proved r. F. C. loans applied for by
airlines or other aeronautical enter
priSeS, and exercised the power of ap-
proving proposals Of the Department
Of Commerce for new Federal air
ways.
The power of approving recommen-
dations for establishment Of new air
transport services on world trade
routes would have been vested in the
new commission, which also would
have been charged with collection and
publication of financial data for all
air transport activities; fostering of
the orderly development" of collec-
SA'S SoA gaining AAA 61 ol6.
putes; examination and licensing of
aircraft, equipment and airmen; rat
ing Of air navigation facilities and
specification of minimum standards of
equipment and operating methods of
airlines.
Power for Agreements.
The new commission, it was pro-
posed, should be given power to ap-
prove or reject proposed trade and
trafflc agreements between American
air transport lines operating outside
the United States and their competi-
tors; to have power Of recognizing
airports as qualified for installation
Of lights and other air navigation IA
cilities at Government expense, and to
approve arrangements for leasing or
chartering to a commercial operator
Of amy Government-owned airship
or airship base"
The body, 1t was recommended.
should have supervision over the sale
or expectation Of helium gas. It was
to act as arbitrator In aeronautical
patent disputes and to take charge
of the study of international agree
ments bearing on American interna-
tional ;.eronautical developments. It
also was to be charged with recon-
mending necessary changes In laws
relating to civil aeronautics.
Members Of the proposed commits
sion were to have been given unusual
security IN Office. one proposal call
ing Tor Q commission Of i've memhrB