Evening star., 1937-06-18
1898 LAW FACTOR
IN AIR LINE BILLS
Shift of Jurisdiction to !. c.
c. Hinges Partly on Air*S
Brake Act.

Brake Act.
Future development Of American
air transportation may depend upon
an act of Congress of March 2. 1898.
known as the air brake and automatic
coupler act, 1t became apparent today
as supporters of the McCarran-Lea
measures pressed for their passage
during the present session Of Congress
These bills would transfer regulation
Of air transportation from the Com
merce and Post once Departments
to the Interstate Commerce Commis-
sion.
Foreign to air transportation though
the air brake and coupler law may
appear, 1t is this law which estab-
lished the congressional policy OF
placing regulation Of transportation
under jurisdiction Of the same Federal
agency which regulates the economic
features Of transportation-the Inter-
state Commerce Commission.
The McCarran-Lea bills, twin meas
ures which now are pending on the
calendars of the Senate and House,
would extend the policy established
In the air brake and coupler law to
air transportation, completely chang
ing the Federal set-up for control OF
air transport flying.
Backed by Transport Onicials.
The McCarran-Lea bills, 1t Is
claimed, are supported unanimously
by officials of 80 air transport lines
through the Air Transport Association
OF America and by the National Air
Line Pilots Association and similar
bodies.
The present laws, which divide
responsibility between the Commerce
and Post Office Departments, it Is con-
tended by air transport officials, con-
tain loopholes which permit irrespon-
sble, hastily formed airlines to take
advantage of existing companies and
Of the Government itself and to bid in
airmail contracts at economically
unjustifiable rates, in the hope Of SELL
ing out later to existing companies or
OF forcing an increase in rates out OF
the Interstate Commerce Commission.
The temptation for company
which has bid in contract at too low
rates, it was pointed out, Is to "cut
corners" on operations and mainten-
ance expenses, resulting In unsafe
operations.
Would Cancel Contracts.
Under the McCarran-Lea bill, all
existing airmail contracts would be
Cancelled and certificates of conven-
1ence and necessity would be issued
by the Interstate Commerce Commits
sion In lieu of such contracts AL
persons who desire to engage in inter-
state, overseas or foreign air transport
operations, even without mail, would
be required to obtain the l. G. c.
certificates.
All air carriers would be required tc
file and publish tariffs and would be
subjected to jurisdiction Of the I. G. c
in issuing securities. obtaining gov
ernmental loans, establishing rates OF
fares, effecting consultations and
mergers, accounting and making OF
trade agreements.
Holders of certificates Of conven.
1ence and necessity over existing air.
mail routes and future airmail routes
would be authorized to carry mail
under rules and regulations and
schedules to be prescribed by the
Postmaster General, but rates fol
carrying the mail would be fixed BY
the I. c. c.
The bills would continue in effect
provisions Of the 1884 airmail act
preventing monopoly, prohibiting in
terlocking directorates and forbiddine
control OF air carriers by aircraft
manufacturers. They include pro-
lection OF the rights OF pilots and
other personnel in the present Law
and continue the policy of the annual
audit Of accounts, books and record.
OF each air carrier by the I. c. c,
Stabilized Industry Seen.
In reporting the Lea bill to the
House, the Interstate and Foreign
Commerce Committee said: ut Is the
belief Of this committee that this bill
when enacted will greatly stabilize the
Cir transport industry Of the United
States and will thereby materially
contribute to its sound growth and
VNoiloiIlAS dOVduCelIenC. =
The present air transportation
system has been developed at great
expense both to the Government and
private industry, to say nothing of the
lives taken during this DEVELOPMENT
1t Is now seriously threatened by the
initiation of unregulated airlines, un-
hampered by any duty to perform the
governmental service of carrying mails
and not covered by the present law.
The Government cannot allow un-
restrained competition by unregulated
air carriers to capitalize on and
Jeopardize the investment which the
Government has made during the past
10 years in the air transport industry
through the mail service and which
: was planned to permit, and at present
IS permitting the Government to carry
on its airmail service at constantly
decreasing costs per unit.
The needs of the public REQUIRE
the immediate extension of Govern
ment control to the air transport in
dustry. In order to prevent chaotic
conditions and promote the rapid
growth that comes with orderly resu.
lation this need should be fulfilled n
the earliest practicable date"
t