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Summary and Conclusions of Statement on Behalf of Scheduled Air Carriers Respecting H.R. 2531 and H.R. 4862; Presented by Col. Edgar S. Gorrell, President of Air Transport Association of America before House Committee on Interstate and Foreign Commerce, March 23, 1939.

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The two bills before this Committee, H.R. 2531 and H.R. 4862, vitally affect civil aviation and particularly air carriers.

Existing Law Affecting Air Carriers

The Civil Aeronautics Act of 1938 sets up the Civil Aeronautics Authority.  No common carrier by air can operate in interstate, overseas or foreign commerce, and no common carrier or contract carrier by air can carry the mail, without a certificate of convenience and necessity issued by the Authority.  Sec. 401.  Rates of compensation for air mail transportation are fixed by the Authority.  Sec. 406.  Common carriers by air must file tariffs with the Authority and adhere to them and cannot engage in unreasonable or discriminatory practices.  Sec. 403 and 404.  The Authority regulates such carriers' books, accounts and records.  Sec. 407.  Consolidations and interlocking interests are subject to the Authority's approval.  Sec. 408 and 409.  And all rates of common carriers for transporting passengers and property in interstate air commerce can be fixed by the Authority; in overseas air commerce the maxima and minima of such rates can be fixed; and in foreign air commerce discriminations in such rates can be removed.  Sec. 1002.  In addition the Authority has extensive powers to regulate operations of all civil aeronautics in the interest of safety.  Title VI.

The care and consideration which were devoted to the formulation of the Civil Aeronautics act are evidenced by the statement of Chairman Lea, in opening debates on the bill in the House, when he said:

"The important thing is to do the job right.  The plan worked out by the Subcommittee provides a more efficient method for covering these duties than any existing set-up in the government."  Cong. Rec. (pamphlet copy) for May 7, 1983, at p. 8500.

And after the bill had passed through the trials of debate and conference, Mr. Mapes rendered it this tribute:

"It is well drafted and covers the subject in a very satisfactory manner.  It is a good bill and ought to be passed.  It meets with the very general approval of the industry and those who have made a study of the subject as well as of the members of the House who have been the most instrumental in piloting it through Congress."  Cong. Rec. (pamphlet copy) for June 11, 1983, at p. 11702.

Effect of Pending Bills on Existing Law

The two bills now under consideration would accomplish the following:

H. R. 2531 bests in a reorganized I. C. C. the ultimate and final power, superior to the power of the C. A. A., to fix minimum rates to be charged by