of this problem and the action taken, I should like to discuss them with you in executive session.

I think in general that outlines the principal points, although there are a good many details back of them.

The CHAIRMAN. I would like to ask one or two further questions. What year did your Board begin to take these activities?

Mr. POGUE. Late in 1940 the Board acted on the Ecuadorian problem.. Others folowed in 1941 and on into 1942.

The CHAIRMAN. And when was the situation cleaned up to the extent that it was cleaned up?

Mr. POGUE. The latter part of last year.

The CHAIRMAN. Now, as I understand it, speaking roughly, the importance of your Board was in the fact that you were given authority to grant the air carriers a rate that will be sufficient to guarantee that the mail moves and that national defense needs of the country are taken care of.

Mr. POGUE. That is correct.

The CHAIRMAN. And when this question arose you granted rates to those carriers sufficient to take up these services by their subsidiaries in foreign countries and subsidize these lines in these countries and replace the lines which were operating under the influence of the Axis Powers?

Mr. POGUE. Yes; that was the approach, coupled with the authorization of additional operations by our international carriers which would dovetail into that same purpose.

The CHAIRMAN. In other words, provide some feeder lines?
Mr. POGUE. That is right.

The CHAIRMAN. I presume we will have to adjourn at this time. The committee will adjourn until 10 o'clock tomorrow morning; and we will have no session Friday.

(Thereupon, at 12:05 p. m., the committee adjourned to meet at 10 a. m. the following day, Thursday, February 4, 1943.)

AMENDMENTS TO CIVIL AERONAUTICS ACT OF 1938

THURSDAY, FEBRUARY, 4, 1943

HOUSE OF REPRESENTATIVES,

COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE,

Washington, D. C.

The committee met, pursuant to adjournment, at 10 o'clock a. m., Hon. Clarence F. Lea (chairman) presiding.

The CHAIRMAN. The committee will come to order. Mr. Pogue desires to make a brief statement in connection with his testimony already given.

STATEMENT OF L. WELCH POGUE, CHAIRMAN, CIVIL

AERONAUTICS BOARD-Resumed

Mr. POGUE. Mr. Chairman, I would like to make an additional statement in connection with the outline I gave yesterday about the deGermanization program in South America. I mentioned at the outset of my remarks on that subject that the Defense Supplies Corporation had participated in the program. I intended to come back to that point at the conclusion of the outline and say to what extent they had participated, but I forgot to do so.

The Defense Supplies Corporation had representatives in South America and were responsible, in consultation with other governmental departments, for the actual de-Germanization program in Ecuador and in Bolivia, which is the Corumba connection that I mentioned yesterday, and Brazil. In fact, the Defense Supplies Corporation was involved in all of the instances I referred to, I believe, except the first one in Columbia I wanted the record to be clear that they did play that part in the program.

As I indicated, in addition to the arranging of the program, funds were made available to them and they did purchase airplanes and made the airplanes available in South America at various points to accomplish the results I mentioned.

The CHAIRMAN. Thank you, Mr. Pogue. As I understand it, the most essential thing that your board did was to fix the rates that made possible the acquisition of these foreign lines?

Mr. POGUE. Fix the rates and promptly grant the extensions.

The element of time was very important and the Civil Aeronautics Act was fortunately drawn in anticipation of this sort of situation, so that it was possible for us to call on emergency power to do the necessary work overnight, so to speak, to complete the program.

The CHAIRMAN. Yes. Thank you.

We will hear Colonel Gorrell.

STATEMENT OF COL. EDGAR S. GORRELL, PRESIDENT OF THE AIR TRANSPORT ASSOCIATION OF AMERICA, WASHINGTON, D. C.

Colonel GORRELL. Mr. Chairman, it is a pleasure to be here.

My name is Edgar S. Gorrell. I am president of the Air Transport Association of America, which is the trade association of the schedule air lines of America. It includes American-flag air carriers throughout the world, everywhere.

With your permission I will hand the reporter one of our letterheads that gives our name, address, and telephone number in full; the names of the officers and directors of the association; the member companies composing it, both associate and regular; and a statement of the objects and purposes of the association.

The CHAIRMAN. Very well.

(The matter referred to is as follows:)

AIR TRANSPORT ASSOCIATION OF AMERICA

1515 Massachusetts Avenue NW. Telephone: Executive 2929

Alaska Star Air Lines Canadian Pacific Airlines, Ltd. Trans-Canada Air Lines

OBJECTS AND PURPOSES

The objects and purposes of this association are:

a. To promote and develop the business of transporting persons, goods, and mail by aircraft between fixed termini, on regular schedules, and through special service, to the end that the best interests of the public and the members of this association be served.

b. To advocate the enactment of just and proper laws governing the air line business.

c. To promote closer relations with and cordial cooperation among the members.

:

d. To promote friendly relations with, and to secure the cooperation and good will of the public.

e. To improve the transportation service rendered by its members.

f. To promote the construction of proper airports and airway aids over such routes as will best insure benefit to the public and the air line business, and to promote the maintenance, repair, and improvement of all airports used by air line operators.

g. To promote the establishment of necessary terminals and connecting schedules.

h. To cooperate with all public officials in securing the proper enforcement of all laws affecting air transportation.

i. To promote aviation safety in general.

j. To do all things tending to promote the betterment of air line business, and in general to do everything in its power to best serve the interest and welfare of the members of this association and the public at large.

"BY COMMON ACTION TO ADVANCE THE AIR LINE INDUSTRY FOR BETTER SERVICE TO THE PUBLIC AND FOR THE NATIONAL DEFENSE"

Colonel GORRELL. Our articles of association appear in the record of House hearings of former years. If you wish we could insert them here, but the House has previously printed them for the information of the Congress.

When I last appeared before your committee our office was located in Chicago. It is now in Washington, where it has been since the 19th of January of last year. We moved to Washington because of a request from the Department of Commerce and the office of the War Department. The move did not originate on our part.

May I, at the completion of my statement, have the privilege of revising and extending my remarks, adding whatever you may care to have me add?

The CHAIRMAN. You have that privilege.

Colonel GORRELL. This morning, sir, it is my purpose

The CHAIRMAN. Colonel, do you prefer to proceed without interruption without questions by the members of the committee?

Colonel GORRELL. If it meets with your approval I prefer to talk on one subject at a time and have questions asked me about that subject when I get through.

The CHAIRMAN. Yes; if you will indicate when you are through with a particular point, the members will then ask questions.

Colonel GORRELL. As a matter of fact, I would be delighted to have anyone ask questions at any time, sir.

The CHAIRMAN. Very well.

Colonel GORRELL. It will be my pleasure to do the best I can to try to answer all questions.

I am authorized to appear before your committe on behalf of the air lines that are members of our association and talk on the general principles of this bill. Our industry has not yet studied the bill from the point of view of drafting, punctuation, or details.

I have with me our attorney, who is prepared to speak on any of the legal questions.

Before testifying, may I say that I never have owned stock in any aviation venture, and none is owned by my family, or anyone connected with me. So far as I know, no stock in any aviation venture is held by any employee of our association. It is one of our rules that we do not deal in the stock of aviation ventures.

We are placing on the desk in front of each of you copies of a booklet called Little Known Facts. That booklet contains facts and figures on the growth of the air line industry since 1926.