making a grand total of $344,000,000 for its work during the present fiscal year.

The Civil Aeronautics Administration has approximately 8,500 employees, and those employees are located in the main, all over the United States and even outside the United States-in Alaska, other territorial possessions; some in South America and from tíme to time on the European and African continents, because the work which we have to supervise extends to those continents.

Now, having given you the rough outlines of the major units of organization, I would like to go on with describing the safety regulation work.

In trying to understand that, let us start with the airplane.

Mr. HALLECK. Mr. Chairman.

The CHAIRMAN. Mr. Halleck.

Mr. HALLECK. I do not know, Mr. Chairman, whether you want the witness to conclude his statement before any questions are presented, or whether it would be proper to ask him questions now. The CHAIRMAN. Do you have any preference?·

Mr. STANTON. Whatever you like, Mr. Chairman, and gentlemen. The CHAIRMAN. Very well, Mr. Halleck.

Mr. HALLECK. I just want to inquire briefly, Mr. Stanton. When the reorganization order was effected, the Air Safety Board, as I understand it, was abolished.

Mr. STANTON. By the reorganization order.

Mr. HALLECK. Yes.

Mr. STANTON. Yes, sir.

Mr. HALLECK. Now, was there any other particular difference made except that the Administrator of the Authority was made subordinate to the Department of Commerce?

Mr. STANTON. No, sir; there was not any essential difference. The clarification by assigning certain functions specifically to the Administrator fell in line with what had actually been worked out between the Board and the Administrator, prior to the issuance of that reorganization plan. Therefore, the only essential difference made was that the Air Safety Board was abolished and its functions added to those of the Civil Aeronautics Board.

Mr. HALLECK. Now, prior to the time of the reorganization had there been a fairly satisfactory and practical line of demarcation between the duties and activities of the Administrator as distinguished from those of the Board; had that been worked out?

Mr. STANTON. Well, sir, I cannot answer positively. You might have to ask the individual members of the Board and the Administrator, the gentleman who was Administrator at that time, but so far as I can determine, the functions had been assigned and responsibilities allocated in a perfectly satisfactory manner; satisfactory to both the Board and the Administrator.

Mr. HALLECK. Just one further question. Under the set-up that now prevails, what supervision or direction of your work as Administrator is exercised by the Department of Commerce or any persons in the Department of Commerce?

Mr. STANTON. In the matter of personnel appointments, the classification of positions

Mr. HALLECK. Let me ask you right there. You are the director under this statute and under you are a number of people working in these various divisions that you have been talking about.

Mr. STANTON. That is right, sir.

Mr. HALLECK. Do you select those people, or does someone in the Department of Commerce select them?

Mr. STANTON. I select those people, but my selections are subject to approval by the superior officials of the Department of Commerce: namely the Special Aviation Assistant to the Secretary of Commerce, the Under Secretary and the Secretary.

Of course, I do not mean by that that all of them endorse each appointment; but appointments are subject to their approval.

Mr. HALLECK. That is in respect to personnel there is an authority, under the reorganization, that is superior to yours.

Mr. STANTON. Yes, sir; and with respect to the classification of positions, the Department of Commerce has the authority to classify field positions, and to recommend classification of departmental positions to the Civil Service Commission, and the Civil Aeronautics Administration does not have the final authority on classifications of jobs. Now, with respect to any matters of legality of contracts or of work to be done under our appropriations, the determination of the legality is for the Department-the Solicitor, of course, acting for the Secretary of Commerce. Our legal office in C. A. A. is not the final authority. With respect to matters of policy, for example, the contracts made for operations at the Washington National Airport with the air carriers and with the concessionaires and others, the Secretary of Commerce, the Undersecretary, or Special Aviation Assistant to the Secretary are in position to approve or disapprove; also to determine the policy to be followed with respect to other functions which the Civil Aeronautics Administration performs.

Mr. HALLECK. Then, is it fair to say that under the reorganization II, the Executive exercises a little closer control or supervision or more far-reaching control and supervision than previously existed under the act as originally passed, creating the Administrator?

Mr. STANTON. By "Executive"-I do not understand exactly what you mean by that. Do you mean by that the President?

Mr. HALLECK. I mean by that the President; yes.

Mr. STANTON. I would say that the control by the President of the United States was identically the same as it was before, except it goes now through intermediate steps to the Administrator which did not exist prior to the reorganization.

Mr. HALLECK. Of course, the Administrator under the original scheme was appointed without term, and therefore would be removable at the direction of the President.

Mr. STANTON. That is right.

Mr. HALLECK. Now, under the reorganization order, of course that situation still prevails?

Mr. STANTON. That is right.

Mr. HALLECK. But in addition there is a superior authority over the Administrator; that is, the Department of Commerce, which, of course, is an executive department and answerable to the President. Mr. STANTON. That is right.

Mr. HALLECK. But in respect to many matters that heretofore were decided solely by the Administrator there is now this superior authority?

Mr. STANTON. Yes.

Mr. HALLECK. Which is the Department of Commerce?

Mr. STANTON. That is correct.

Mr. HALLECK. But, as I understand you, the functions are yet pretty

much the same.

Mr. STANTON. Yes.

Mr. HALLECK. So far as the office of the Administrator is concerned. Mr. STANTON. Yes; so far as the separation of duties or functions between the Board and the Administrator is concerned, it works very similarly to what it did before the reorganization orders.

Mr. HALLECK. Who has the authority as between the Administrator and the Board, say, in respect to determining whether or not an air line shall make a scheduled stop at a given locality or city?

Mr. STANTON. The Board determines whether or not such a stop shall be made from the standpoint of public convenience and necessity and then the Administrator determines whether the stop shall be made on the basis of a suitability of the airport for making such a stop without hazard and with respect to the suitability of the flying equipment of the air line to safely utilize such airport, or the amount of ground equipment available to render proper safety service at that additional point.

Mr. HALLECK. That is all, Mr. Chairman.

Mr. STANTON. Now, in describing the work of safety regulations I want to start with the airplane. I think the first thing we have to have is a safe and sound airplane. Otherwise we have no aviation.

The Civil Aeronautics Board has, as Mr. Pogue mentioned, set up certain safety requirements for aircraft; requirements for structural strength for the loads that they can carry, the take-off and landing requirements, rate of climb, and performance.

Now, therefore, the first thing that happens when a new airplane is to be built is that the design is worked out and submitted to the Civil Aeronautics Administration and referred to our Aircraft Engineering Division for a thorough analysis to see if it is in accordance with the safety standards that have been prescribed by the Board.

The stress analysis is also studied at the same time, and if there are any unusual features with respect to the airplane design the adequacy of which cannot be figured from ordinary engineering knowledge, then the so-called static test or load testing of these various parts until they actually fail are ordered, so that we can be certain that the airplane meets the structural safety requirements.

Now, that extends not only to aircraft but to aircraft engines, propellers, and various types of accessories and appliances that go on the aircraft.

Mr. HOLMES. May I ask a question there, Mr. Chairman?

The CHAIRMAN. Mr. Holmes.

Mr. HOLMES. I infer from that that when an airplane manufacturer makes any changes in design whatsoever, whether it be in connection with their engine, the size of their ship, or instrument board, or any other change, that is contemplated by the manufacturer, he has to have the approval of your Board before he can place that on the market?

Mr. STANTON. Almost any change, sir.

If he wanted to add another instrument on the dashboard or change the upholstery, or lay-out of seats in the cabin, that, of course, would not have to be submitted to us for approval; but if he wished to change the horsepower of the engine or change the make of the engine, or put on a different type of propeller, or make some structural change, then that has to be reexamined and tested the same as if it were a brand-new airplane design.

Mr. HOLMES. And in your studies, do you make recommendations to these manufacturers on new designs you might think would be advantageous to the airplane, or do you let the industry itself work out its own problems, and you approve of them if they meet the specifications?

Mr. STANTON. Our job is to examine and to approve or disapprove in accordance with the meeting of the specifications. However, our engineers are excellent engineers; are well known to the industry, and the industry frequently asks them for suggestions for corrections in case we have to disapprove something, and those suggestions are frequently made, but that is a sort of an extracurricular service; not a part of what we are supposed to render.

Mr. HOLMES. I have concluded.

Mr. HARRIS. Mr. Chairman-

The CHAIRMAN. Mr. Harris.

Mr. HARRIS. Mr. Stanton, in your experience does the industry approve or disapprove that procedure in policy with reference to your authority in any change in models or horsepower, or any other changes of the airplanes?

Mr. STANTON. Well, frankly, it is hard to say exactly what the industry approves. An individual aircraft manufacturer is likely to think that procedure is not so good if some of his designs are disapproved, and he is required to make a lot of changes.

But, recently there was a proposition advanced to eliminate a considerable amount of this examination and approval. The Aeronautical Chamber of Commerce after considering that proposition, I believe, went on record that it preferred to have the requirements for examination and approval remain as they were rather than have them changed. They felt that the proposed change would possibly allow too many irresponsible people to come up with inadequate and unsafe airplane designs which would be contrary to the greatest good of the industry as a whole, and the safety of the people in the air.

Mr. HARRIS. The question in my mind is if this authority or control as it is in existence at the present time continues, does it have a tendency to cause a lag in the production or the progress of airplane development?

Mr. STANTON. In my opinion, it does not. It only insures against airplanes of questionable safety, being built and operated in air com

merce.

Now, there is absolutely no inhibition on the part of anyone building an experimental airplane containing as many unorthodox features as he may desire; but this examination and approval is required if he is to manufacture it and put it into air commerce.

Mr. HARRIS. Would it be correct then to say that because of this control and cooperation between the C. A. A., and the industry, that it has caused an increase in the development of the aviation industry?

Mr. STANTON. Well, I believe that the combination has actually resulted in progress, definite progress, along sound and safe lines, and it cannot have been a very retarding influence anyway, because actually we have made more progress than has the aviation industry of any other nation in the world, in civil aircraft, at least. I am not qualified to speak from a military standpoint.

Mr. HARRIS. That is all.

The CHAIRMAN. You may proceed.

Mr. STANTON. This aircraft engineering division which is one of the units of our safety service has, in addition to examining designs for purely civil aircraft, been engaged in assisting in the war effort in the examination of designs of noncombat aircraft in which the Army and Navy were interested. One is the Lockheed Constellation which just flew recently. You have all noticed articles in the press, a week or so ago, about this new 8,000-horsepower airplane; its high speed; that it can carry fifty-odd passengers across the ocean on a nonstop flight. Another one is the Budd Air Transport which is being built with the object of using it on interior routes in South America for cargo transport work, in connection with the war effort. Another one is the Waco Model C-62 Army-carrying transport which I believe is one of the all-wood designs and in addition to that a great many training aircraft; a great many of the light aircraft used in the so-called grasshopper service for the Army, also the gliders, both the training gliders, and the service or troop-carrying gliders.

SAFETY REGULATION, AIRCRAFT ENGINEERING DIVISION

A. Principal functions.

The Civil Aeronautics Act requires that before any aircraft can be flown in air commerce it must hold an airworthiness certificate issued by the Civil Aeronautics Administration. The determination as to whether a particular aircraft, aircraft engine, propeller, or appliance is airworthy is the primary function of this Division except for the responsibility for flight and operational characteristics and factory inspection phases. (This exception will be assumed to apply where pertinent without repetition in the following discussion.) The proof of airworthiness requires the conduct of thorough engineering studies of the design of the aircraft, aircraft engine, propeller and appliances, extensive stress analyses of all elements of these units, and static tests of certain vital portions of the structure, and, in the case of aircraft engines and propellers, extensive endurance testing. The Civil Aeronautics Administration develops and recommends promulgation of the minimum standards of design and construction which all aircraft, aircraft engines, propellers, and appliances must meet before they can be certificated as airworthy. These airworthiness standards are constantly being improved by this Division.

Section 603 of the statute provides for the issuance of type and production certificates to the manufacturers of aircraft, aircraft engines, propellers, and appliances. In order to secure a type certificate for a particular model of aircraft, aircraft engine, propeller, or appliance, the manufacturer submits drawings, specifications, and test reports for the unit which is to be examined by the engineering staff of this Division, and if the design is found to be satisfactory, and the proof of adequate strength and endurance is satisfactorily