Evening star., 1938-07-19
HESTER OUTLINES
NEWAV|AT|ONACT
Corrections Envisaged for
Deficiencies in U. S. Air
Regulation.

pose and administration of the new
Civil Aeronautics Act, delivered last
night on the National Radio Forum,
arranged by The Star and broadcast
over a Nationwide network of the
National Broadcasting Co.:
1 wish to thank The Washington
Star for this opportunity to discuss
the new aviation legislation
To say that the growth of civil
aviation in this country has been in
credible is platitude but, like all
platitudeS, it is only such because it
is true. The epic civil and military
flights of American aviators, like the
recent flight of Hughes and his crew,
fash across the horizon and capture
our imagination, but we do not see
behind them the undramatic, steady
day-by-day, hby-month and
year-by-year forward march of a great
industry until suddenly we look about
and discover that the aeroplane is no
longer freak, it is no longer a toy
1t has attained its majority and is
entitled to full place in the council
of mans great mechanical carriers.
1t has done for that element what
railroad, motor vehicle and vessel have
done for land and water
No Regulation 10 Years Ago.
Let us go back, not 80 years, not
even 20 years, but scarcely more than
10, to time when there was no Fed
eral regulation of civil aviation. In
1925, in reporting on the bill which
became the original Air Commerce
Act, Senate committee stated that
commercial aviation had not advanced
as rapidly in the United States as had
alton had Jagged far behind that of
the other great nations of the earth.
This was attributed largely to the fail
ure of the Federal Government up to
that time to provide machinery to
encourage and regulate the use of air
craft in commerce. The Air Com
merce Act was, therefore, enacted into
law in 1926. 1t marked a great stride
forward in the promotion of civil
aviation, but it did not and could not
have been expected to solve problem
the ramitications of which were as yet
only dimly visible. This was we'll indi-
Gated in a statement made by men,
ber of Congress when the 1926 act
was being debated on the floor of the
House. Il confess" he said, that we
have attempted to anticipate the
growth of aviation in the United
States. We have attempted to meet
conditions that are sure to arise = =.
This bill assumes we are going to have
Air navigation of important propor-
tions in the United States"
The day to which the Congressman
referred has come. Aviation is still
a young industry but it is one Of
large proportions and it is growing
apace. Today the United States
stands in the forefront of the Nations
OF the world in aviation. The act
which was drafted in 1926 in antici-
patton of something to come is no
longer adequate. Aviation needed a
new organic charter framed in the
light of existing conditions as we'll as
with an eye toward the future The
Civil Aeronautics Act of 1888, passed
of Congress and signed by President
Roosevelt on June %, was designed to
fulfill this need. Earnestly sought by
the aviation industry and strongly
recommended by the President, the
enactment of this law was the cul-
mination Of long continued efforts by
members OF Congress, the admins
tration, the aviation industry, and
private citizens interested in the fu-
ture Of aviation. The act meets the
need for co-ordinated Government
regulation of this fast-groWing branch
OF our transportation system.
Regulation Was Divided.
Until the enactment of the Civil
Aeronautics Act, Federal regulation of
aviation was very limited and was
divided among several different Gov
ernment agencies.
The Bureau of Air Commerce of the
Department of Commerce regulated
aeonautics from safety standpoint
and established, operated and main
tained airways which are the roads
over which air traffic moves.
On the other hand, economic regu-
lation Of aviation, in the sense that
such regulation, as, for example, rate
fixing and service requirements, is
imposed upon railroads and motor
carriers, was to a large extent nom
existent, and in SO far as it did exist
was merely incidental to the awarding
OF airmail contracts and the protec-
ton of the Governments interests
in the carriage of airmail.
Two Government agencies partici-
pated in such economic regulation as
existed under the old law. The Post
Office Department awarded contracts
for the carriage of airmail and en-
forced certain provisions of the air
mail laws, while the Interstate Com
merce Commission fixed the rates to
be paid to airmail contractors for the
carriage of airmail. No provision was
made for the regulation of passenger
and express rates. No economic regu-
lation of nominal carriers was pro-
vided. Airmail contracts were award
ed, not upon the basis of the need of
the public for passenger and express
service, but solely upon the require
ments of the airmail service.
May Correct Deficiencies.
This divided and piecemeal juris-
diction over aviation. this absence of
adequate governmental economic regu-
lation of air transporta ton. have
brought about lack of coordination
and great gaps in the efforts of the
Government to regulate and develop
civil aviation with a resulting impair
ment of the financial stability of the
air transportation industry 1t is be-
leved that the new Civil Aeronautics
Act will correct these deficiencies in
the Federal scheme of aviation regu-
lation. The congressional hearings
and reports on this legislation confirm
the fact that this view is shared by
the entire aviation industry
The act creates new Federal agen-
cv known as the Civil AeronauticS