involved in the procurement of military aircraft. This led to the introduction in the House on May 27, 1926, of two bills (H. R. 12471 and H. R. 12472) respectively introduced by Mr. McSwain, Chairman of the House Committee on Military Affairs, and Mr. Vinson, Chairman of the House Committee on Naval Affairs. The provisions of section 10 of the Act of July 2, 1926, were substantially contained in the said two bills, which were identical in terms except that one, H. R. 12471, would have legislated exclusively for the Army, and the other, H. R. 12472, for the Navy. Separate reports (H. Rep. No. 1395 and No. 1396, 69th Cong., 1st sess.), in all material respects identical in terms, recominended enactment of the two bills. Report No. 1395 on H. R. 12471, relative to the Army, gave as a reason for the proposed legislation the following:

"Ever since the introduction of aeronautics into the military service as an element of the national defense the Secretary of War has in the procurement of improved designs of aircraft and the components thereof been handicapped to such an extent by inadequate, confused, and unnecessarily restrictive laws that the aviation material of the Army is inadequate in quantity and inefficient in character, and is suffering from a lack of progress that threatens complete stagnation."

As to the general effect of the bill, the report stated in part:

"In the bill there are some provisions that constitute a departure from previous legislative practice relating to the Army, but they are, in the opinion of the committee, of a character entirely beneficial to the Government's interests. The Secretary of War is given a discretionary authority that has been long needed to procure aircraft and the components thereof from others than the bidders that name the lowest prices. He may exercise such discretion as will relieve the Government of the misfortune of being obliged, as heretofore, to contract for and accept apparatus furnished or constructed by a 'lowest bidder' whose product may prove, as has often happened, a useless investment and

an apparatus more dangerous to those operating it than to an enemy."

The substance of the two bills above referred to was by amendment subsequently incorporated in H. R. 10827 by conferees of the House and Senate. This bill later became the act of July 2, 1926. Mr. Vinson, one of the House conferees and also the introducer of H. R. 12472, in his explanation of section 10 on the floor of the House, said in part (Cong. Rec., v. 67, pt. 11, pp. 12268–12270):

"Since the signing of the armistice, with characteristic perseverance patriotic men have been endeavoring to throw the searchlight of truth upon our aircraft situation. There have been since the close of the war more than 21 major investigations and studies of this subject. Charges have been made by gentlemen having official status in the Government and those in civil life. Hundreds and hundreds of witnesses have testified upon the various aspects of the subject; thousands and thousands of pages of testimony written; many recommendations made. Before this Congress convened there had been little if anything done by way of legislation to obviate just criticism in which our country found itself in respect of aviation.

"The Committee on Military Affairs held hearings over a period of months upon the general subject of aviation and its relation to the other armed forces. But these hearings were mainly concerned with the increase of our air forces both in equipment and personnel. The committee could not, because of the time element, give all this period to the particular subjects of design and procurement.

"It was thought best to have joint hearings before the Committees on Naval Affairs and Military Affairs upon a bill changing the existing law as to the procurement of new designs and aircraft therefrom. Many days were spent in these hearings. The testimony was confined to the betterment of conditions affecting designs, the encouragement of inventors, and the procurement in quantity production. All viewpoints were presented. Everyone appearing before

this committee conceded that the existing laws pertaining to design and procurement were so inflexible that the Government could not readily obtain the best to be had in aircraft, and all recognized the need to stimulate not only the industry in this country but the inventive genius of our land. As was usual, there was practically unanimity relative to the condition of the patient, but the prescription had yet to be written and the medicine prescribed.

"Since the war every student of the subject has realized that we have no policy that will either permit the departments to obtain the best in aircraft or to stimulate the genius of the country; there is nothing in the existing law that permits any encouragement to the industry, rather it tends toward the destruction of it.

"It is commonplace to state that the art of flying and the aviation industry is in its infancy. No one will contradict that statement. Since the war, there has been a stupendous impetus in the art; in the future, it will advance in enormous strides. But, in this stage of its development, we have been pursuing the same course in the purchase of our planes as if it were a fully developed art. The existing law is inflexible, and under its operation the departments have no discretion in the manner in which our aircraft must be procured (and by aircraft in this discussion I include aircraft parts and aeronautical accessories). The existing law relative to the subject of purchase of our aircraft is interwoven with and builded upon the statutes which relate to the purchase of all other material and supplies for the Government. One may inquire why the same rules of law governing in such matters would not be applicable in respect of aircraft. There is a material difference. In the matter of supplies, we have a standardization. In aviation, standardization has not arrived, and, as yet, does not exist. It is a changing art; an art in which the best today is mediocre tomorrow.

"The purpose underlying this measure is to permit our Government to secure the most highly developed types of

aircraft obtainable, and, what may be even more important in time of national stress, to encourage the inventive minds of our country and the industry itself. These ends are sought by the removal of certain legislative restrictions in which the Government finds itself entwined in the purchase of its aircraft. We are setting up new machinery for this purpose. The liberalization of the existing law relative to aircraft procurement has been deferred, due probably to some extent to the hesitancy, inherent more or less in us all, to make a change.

"This is new legislation. It is the adoption of a new policy, which, it is hoped, will permit the departments to procure both highly improved types in design, and the quantity production required to fill our needs therefrom. We submit this measure as a stimulus to the inventive genius of the country and which we believe will be of benefit to the industry.

"Performance, rather than price, is the foundation stone upon which this proposed legislation is builded. In the matter of design, the fullest competition which our minds could evolve, is provided. A monetary incentive is provided the designing talent and the inventive genius of our Nation, together with the reasonable certainty that proper recognition will be given his efforts. In our judgment, the interests of the Government relative to the most of the aircraft produced is fully protected."

Mr. Vinson on the same occasion further stated in part (id. p. 12270):

"We are aware of no better manner in which to discuss the workings of these sections than to assume the case that would put the machinery in motion.

"A new design is desired by the Secretary of War. It is necessary for the Department to advertise when the design competition will be held. The advertisement shall be for a period of 30 days in at least three of the leading aeronautical journals, and in such other manner as the Secretary may deem advisable. Of course, the kind of aircraft and the quantity desired is contained in the advertisement.

All persons interested receive identic information as to the conditions, requirements, and specifications. There must be listed specifically the respective measures of merit, expressed in rates per centum, to be used in determining the merits of the design. These measures of merits must be adhered to throughout this entire competition. The competitors submit their designs in sealed communications which must be kept intact until 60 days from the expiration of the advertising period shall have elapsed. With the designs there must be submitted a graduated scale of prices for which they will construct such aircraft, or any part thereof. It shall also contain the price to the Government of the design should purchase be desired.

"A statement of the procedure to this point makes it obvious that favoritism to any appreciable extent will be eliminated. The measures of merit, the grades which must be given to the features involved, determine beyond question the justice of the award, which will now be discussed. "The day for opening the bids arrives. The designs are referred to a board appointed by the Secretary of War, who grade the papers in accord with the measures of merit heretofore referred to. As soon as practicable, they shall report to the Secretary. The time is fixed when, after notification, the competitors may appear and hear the public announcement of the result. In this announcement the percentages awarded to each of the features of the design submitted, as well as the price therefor, is made public.

"In the event the Secretary of War deems it advantageous to the Government, the new design may be forthwith put in actual production. There are three ways under this machinery in which the new design may be reduced to the finished product.

"In the first place, if the competitor is capable of manufacturing, within a reasonable time, the aircraft design, and a reasonable price therefor can be agreed upon, the Secretary may contract with the winner of this competition for the aircraft, or any separable part thereof. In no event shall the contract price exceed the amount submitted in the bid."