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under this title by plaintiff's personal representative for death resulting from such injury.

"LIMITATION OF LIABILITY BY CONTRACT ILLEGAL

“Sec. 207. Any contractual provision exempting the operator from the liability imposed by this title or limiting said liability in any way shall be null and void except in the case of passengers carried gratuitously.

"HIGHER MAXIMUM LIABILITY AUTHORIZED

“SEC. 208. Nothing in this title shall prevent a passenger and an operator from contracting for a higher maximum liability for bodily injury or death than that imposed by section 205.

"LIABILITY IMPOSED UPON OPERATOR EXCLUSIVE

"SEC. 209. Liability imposed upon an operator by this title shall be exclusive and shall abrogate common law and other statutory actions against the operator.

"INSURANCE OR SECURITY REQUIRED

"SEC. 210. (a) Operators of aircraft engaging in interstate, overseas, or foreign air commerce shall comply with such reasonable rules and regulations as the Civil Aeronautics Authority shall prescribe governing the filing and approval of insurance policies, surety bonds, or qualifications as a self-insurer, in such reasonable amount as the Authority shall require, conditioned to pay any final judgment rendered under the provisions of this title.

"(b) Any person who willfully fails to comply with such reasonable rules and regulations, or causes such failure or willingly suffers or permits such failure, or aids or abets therein shall be deemed guilty of a misdemeanor and upon conviction thereof shall be subject for the first offense to a fine of not more than $100, and for any subsequent offense to a fine of not more than $500. Each day of such failure shall be a separate offense.

“PERIOD OF LIMITATION

"SEC. 211. Any right of action under this title shall be of injury or death, or if such date is unknown, from the date of injury or death, or if such date is unknown, from the date on which the aircraft was scheduled to arrive at its destination.

TITLE III

“LIABILITY FOR Loss, DAMAGE, OR DELAY REGARDING BAGGAGE, PERSONAL EFFECTS,

AND GOODS

SCOPE OF TITLE

"Sec. 301. This title shall apply

“(a) To loss of or damage to goods or to the baggage or personal effects of passengers where such loss or damage occurred in interstate, overseas, or foreign air commerce;

“(b) To loss caused by unreasonable delay in the delivery of baggage or goods carried in interstate, overseas, or foreign air commerce.

"LIABILITY IMPOSED

"SEC. 302. (a) The operator, in whose custody baggage or goods were at the time loss, damage, or unreasonable delay within the scope of this title occurred, shall be liable unless he proves affirmatively that the loss, damage, or unreasonable delay did not proximately result from willful misconduct or failure to use the highest degree of care on the part of himself or any of his servants acting within the scope of their employment, or unless he proves that the loss, damage, or unreasonable delay was caused by an error in piloting, in the handling of the aircraft, or in navigation.

“(b) Where baggage or goods are shipped through an air express agency, the agency shall be liable for loss, damage, or unreasonable delay within the

scope of this title unless it proves affirmatively that the loss, damage, or unreasonable delay did not proximately result from willful misconduct or failure to use the highest degree of care on the part of itself or of any of its servants acting within the scope of their employment or on the part of any person under contract with the air express agency to transport the baggage or goods in question, or unless it proves that the loss, damage, or unreasonable delay was caused by an error in piloting, in the handling of the aircraft, or in navigation. Where baggage or goods are shipped through an air express agency, the air express agency alone shall be liable to the person or persons entitled to sue under section 308.

"(c) In the case of loss of or damage to personal effects, the operator of the aircraft in which the individual possessing the personal effects was a passenger at the time of loss or damage within the scope of this title shall be liable unless he proves affirmatively that the loss or damage proximately result from wilful misconduct or failure to use the highest degree of care on the part of himself or any of his servants acting within the scope of their employment, or unless he proves that the loss or damage was caused by an error in piloting, in the handling of the aircraft, or in navigation.

CONTRIBUTARY NEGLIGENCE

"SEC. 303. The operator or air-express agency shall not be liable if the negligence or willful misconduct of the person suffering loss or his servants caused or contributed to the loss, damage, or unreasonable delay to baggage, goods, or personal effects.

“EXTENT OF LIABILITY

"SEC. 304. (a) Recovery for loss of or damage to baggage shall be in the amount of actual loss but not to exceed $50 per passenger unless the passenger has declared a higher value.

"(b) Recovery for loss of or damage to personal effects shall be in the amount of actual loss but not to exceed $50per passenger unless the passenger has declared a higher value.

"(c) Recovery for loss of or damage to goods shipped shall be in the amount of actual loss but not to exceed $50 for any shipment of one hundred pounds or less in actual weight or 50 cents per pound for any shipment of more than one hundred pounds, unless the shipper has declared a higher value.

"(d) Recovery for loss caused by unreasonable delay in the delivery of baggage or goods shall be in the amount of actual loss for such loss as might reasonably have been contemplated by the parties at the time the contract of carriage was made. Special damages for loss from unreasonable delay, such as would not reasonably have been contemplated by the parties at the time the contract of carriage was made, may be recovered only if notice regarding the possibility of such loss was given to the operator at the time the contract of carriage was made.

"LIMITATION OF LIABILITY BY CONTRACT ILLEGAL

"SEC. 305. Any provision exempting the operator or air express agency from the liability imposed by this title or limiting said liability in any way shall be null and void, except in the case of (1) baggage and personal effects of passengers carried gratuitously and (2) goods carried gratuitously.

"HIGHER MAXIMUM LIABILITY AUTHORIZED

"SEC. 306. Passengers or shippers prior to embarking or shipment may declare higher values on baggage, personal effects, and goods shipped than those specified in section 304. In such case the operator or air express agency may make reasonable additional charges and in the event of loss of or damage to baggage, personal effects, or goods shipped shall be liable in the amount of actual loss not to exceed the value specified.

“CONNECTING CARRIERS BY AIR

"SEC. 307 (a) Where baggage or goods are shipped over connecting common carriers by air on a through bill of lading or baggage check the initial operator

or air express agency and the delivering operator or air express agency shall be liable for loss, damage, or unreasonable delay to them as well as the operator or air express agency in whose custody they were at the time of loss, damage, or unreasonable delay. This liability shall be joint and several. The initial operator or air express agency and the delivering operator or air express agency shall have a right to reimbursement for any damages paid from the operator or air express agency in whose custody the goods or baggage were when the loss, damage, or unreasonable delay occurred.

“(b) Where baggage or goods are shipped in whole or in part by an air express agency, such agency and not the operator shall be liable in accordance with subsection (a) to the person or persons entitled to sue under section 308.

“WHO MAY SUE

“Sec. 308 (a) Action may be brought by a passenger or his personal representative to recover under this act for loss of or damage to personal effects or for loss of, damage to, or unreasonable delay in delivering baggage.

“(b) Action may be brought by the consignor or consignee or the endorsee, assignee, or personal representative of either to recover under this act for loss of, damage to, or unreasonable delay in delivering goods shipped by air; but at the trial the plaintiff shall be required as part of his case to prove that he is the party entitled to recover damages.

"(c) Either the consignor or consignee or the endorsee, assignee, or personal representative of either may establish that he is the party entitled to recover damages, irrespective of the time of loss, damage, or unreasonable delay, by showing waiver by, assignment by, or settlement with the other party to the shipment.

LIABILITY IMPOSED UPON OPERATOR AND AIR EXPRESS AGENCY EXCLUSIVE

"SEC. 309. Liability imposed upon an operator or an air express agency by this title shall be exclusive and shall abrogate common law and other statutory actions against the operator or air express agency.

“PERIOD OF LIMITATION

"SEC. 310. Any right of action under this title shall be barred unless suit is brought within two years of the date of loss or damage to baggage, personal effects, or goods, or if such date is unknown or if the action is for loss caused by delay, from the date on which the baggage, personal effects, or goods should have arrived at destination.

"TITLE IV

“MISCELLANEOUS

"LIABILITY TO SURVIVE

“SEC. 401. If an air express agency or operator of an aircraft upon whom liability is imposed by this act shall die prior to the rendition of a final judgment under this act, such liability shall survive and may be prosecuted against his executor or administrator, and recovery may be had as in the case of other claims against his estate.”

SEC. 59. Section 201 of the Railway Labor Act (48 Stat. 1185 ; title 45, U. S. C., ch. 8, sec. 151) is hereby amended to read as follows:

"SEC. 201. All of the provisions of title I of this Act, except the provisions of section 3 thereof, are extended to, and shall cover, every air carrier, as that term is defined in the Civil Aeronautics Act of 1938 as amended, and every person (including, but not by way of limitation, corporations, joint-stock associations, partnerships, and unincorporated associations) which is directly or indirectly owned or controlled by one or more such carriers or under common control therewith, including any receiver, trustee, or other individual or body, judicial or otherwise, when in the possession of the property or operating all or any part of the business of such air carrier or other person, and every person who performs any work as an employee or surbordinate official of such carrier or such other person and is subject to its continuing authority to supervise and direct the manner of rendition of his service, whether or not such work is in connection with air transportation. The definition of the term 'employee' set forth in section 1 of this Act shall not be applicable to this title.”

SEC. 60. The provisions of this Act shall become effective sixty days after enactment.

The CHAIRMAN. It has now been more than 4 years since the Civil Aeronautics Act was passed. Since that time the administrative agencies created by that act have had what we might call an intensive experience in their regulatory and administrative functions. It is also true that in the meantime the aviation industry has had a great practical experience—its greatest period of development and expansion, and service in transportation.

So now, after these 4 years of experience it seems to be the appropriate time to consider what, if any, legislation should take place for the improvement of the administration or the improvement of the situations of the carriers.

We, of course, recognize that we face a very important period in the history of our country. In the future the aviation industry, of course, must share its part.

We now may have some unusual reasons to look ahead in an endeavor to take constructive action for the betterment of aviation.

Ever since this act was passed, it has been the attitude of the chairman of the committee-and I am sure of the committee itselfthat inasmuch as this legislation came from this committee, we are anxious for it to be successful in carrying out the purposes for which it was designed. So the constant attitude has been to invite information and suggestions from the administrative agencies and also from the industry as to any changes which experience shows might be brought about for the betterment of the administration of the aviation industry.

have been developed over the last 4 years, based upon experience. In part, it takes up matters that were considered when the original act was passed, but which at that time it was desired should be deferred until the industry was developed, and with more experience, when it could be better determined what action should be taken as to those particular measures.

In part, the bill before us is based upon recommendations of the Civil Aeronautics Board. However, this bill was compiled by me not with the idea of committing even myself or the committee to its provisions, but it includes those things that appeared to me in compiling the bill should be considered at this time. In no sense is it intended to be exclusive of any other suggestions that may be made for the benefit of the administration or of the air industry. On the contrary, the committee will welcome any suggestions from responsible sources as to any phase of the industry or any suggestions that might improve legislation to take care of it.

As to the procedure to be followed, the hearing will be before the full committee. It is the intention that after the hearings are completed, the detailed consideration of the bill will be assigned to the standing Aviation Committee of this committee for that purpose.

So now this morning we have with us the Chairman of the Civil Aeronautics Board. He has been with the Board practically since this act was passed, and now for more than a year has been its chair

man. He has had a background of experience and has taken a studious, diligent interest in the industry. So, I think we will be helped by hearing his recital of something of the experience that has developed in the administration of the act from the Board that has primary charge of its administration.

Mr. Pogue, we will be glad to hear from you.

At this time it is suggested that the members withhold questions until the witnesses, especially the witnesses who will discuss these problems generally, have completed their statement, and then every one will be given an opportunity to ask any questions that he may deem pertinent to the problems presented. Mr. Pogue, we will be glad to hear from you. STATEMENT OF L. WELCH POGUE, CHAIRMAN, CIVIL

AERONAUTICS BOARD

Mr. POGUE. Mr. Chairman and members of the committee, my name is L. Welch Pogue, Chairman of the Civil Aeronautics Board.

I. INTRODUCION

I want to say first, that it is a great privilege to have this opportunity to appear in person before this committee. We are creatures of Congress, by virtue of the act which came out of this committee several years ago, and, although we report to the Congress in annual reports and at various times in other written forms, it is a real privilege to have the opportunity to come here before you personally and, in a sense, come to grips across the table about the many problems arising in this complicated industry.

In what I shall say this morning, there will be no Civil Aeronautics Board recommendations on the detailed provisions of this bill which is before the committee, because you have asked for our formal comments on that phase of the matter. Those comments are being prepared and will come before you in due course. My remarks this morning will be rather in the nature of various general comments which it seemed to me might be of interest to you.

The Civil Aeronautics Act is a very comprehensive act and the industry, as I have just indicated, is a complicated one, and it has been some time since any legislative action has been before you. For that reason, it has seemed to me that it might be profitable to outline in a general way the functions that are established by the Civil Aeronautics Act and then discuss in general who exercises them, so that you will see how the act is administered. I will be glad, of course, to answer any question and if I do not have the answers I will try to get them.

In that connection, it will be necessary for me, of course, to describe the functions and also to indicate who exercise them, even though some of those functions are vested in the Administrator of Civil Aeronautics and are exercised by him.

II. THE CIVIL AERONAUTICS ACT

Five years ago the Congress was nearing the completion of its work on the McCarran-Lea bill, which was enacted into law as the Civil

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