proceeding is referred to the Docket Section. Such document is examined for compliance with currently effective requirements governing the form and filing of documents and if conforming thereto, is accepted for filing and assigned a docket number. The person filing is advised by letter of the docket number assigned. Matters which do not require a hearing under the act are generally referred to the appropriate Office or Division for consideration and written recommendation to the Board. A hearing may be ordered concerning matters not otherwise requiring a hearing but involving special circumstances or new questions of law or policy.

(2) On matters requiring formal hearing, the Chief Examiner or the Director of the Alaska Office, as the case may be, designates a trial examiner to conduct the hearing and issues a notice of a prehearing conference to the party or parties concerned when that docket is reached on the calendar. In proceedings upon applications by air carriers for new routes, it is customary to assign all pending applications for a similar service in the same general area for conference at one time.

(3) The prehearing conference is conducted by the trial examiner. At the conference, applicants and other interested parties state their attitude toward consolidation of the various applications for purposes of hearing and decision, the time and place of hearing and other procedural matters, and indicate the number of witnesses and kind of evidence to be presented. The examiner in charge discusses the procedure to be followed and records the position of each party. It is the purpose of this conference to consider all problems of a procedural nature, arrive at agreed statements of facts, define the issues, and do everything possible to expedite the formal hearing and final disposition of the

case.

(4) Following the conference a report is prepared by the examiner and forwarded to all parties setting forth a record of the results of the conference and any rulings which may be necessary on questions arising in connection with the case. The parties may file exceptions with the examiner to point out any disagreement with statements contained in the report. The examiner may supplement his report to revise or clarify state

ments to which exception is so taken which materially affect the position of any party.

(5) If consolidation of certain applications for hearing and decision was agreed to at the conference, the examiner will recommend an appropriate consolidation order. The Board's subsequent order or notice of hearing, together with the prehearing conference report, will establish the scope of the proceeding.

(6) Hearings are held in accordance with the currently effective rules of practice, set forth in Part 285 of this chapter, and are presided over by a trial examiner.

(7) After the close of hearing, proposed findings and conclusions and reasons in support thereof may be filed with the examiner. The examiner prepares a recommended decision in all cases other than proceedings for the determination of passenger, property or mail rates and other cases in which the Board requires that the entire record be certified to it for initial decision. The parties are afforded an opportunity to file with the Board exceptions to the recommended or initial decision and reasons in support thereof. Oral argument may be granted upon request in the discretion of the Board. In due course the Board renders its decision which is served on all parties in the case.

of

(c) Suspension and revocation safety certificates. (1) Proceedings for the suspension or revocation of airmen, aircraft and other safety certificates follow the procedure and requirements of Part 97 of this chapter, known as the rules of practice governing suspension and revocation proceedings. A proceeding is instituted by complaint filed with the Board by the Administrator of Civil Aeronautics or by a show cause order issued by the Board.

(2) A copy of the complaint or show cause order is served upon the respondent by registered mail. A letter explaining the procedure followed and respondent's rights, a copy of the rules of practice (Part 97 of this chapter), a return addressed envelope, and a statement concerning whether a hearing is requested, accompany the complaint. The respondent is requested to indicate whether he desires or will waive a formal hearing.

(3) A trial examiner is designated by the Assistant General Counsel, Safety.

(4) If formal hearing is waived, the Administrator of Civil Aeronautics submits documentary evidence in support of the complaint, and the respondent, if he so desires, may submit documentary evidence in defense. Such evidence is considered by the trial examiner who enters the initial decision in the proceeding. If no exceptions or motion to review are filed, such initial decision becomes the final decision of the Board. If exceptions are filed, the procedure followed is identical to that of a formal hearing case in which exceptions to the initial decision have been filed, as described in subparagraph (8) of this paragraph.

(5) If the respondent desires a formal hearing, every effort is made to hold such hearing within ninety days of receipt of 'the request and such hearings are usually held not further than forty miles from respondent's residence. Respondent may be represented by counsel if he desires. An attorney from the Administrator's Office appears for the purpose of prosecuting the complaint or supporting the show cause order of the Board.

(6) Proceedings of this nature have been held to be civil in character, and the general rules of evidence applicable to civil proceedings are followed. The attorney prosecuting the complaint is required to prove the allegations in such complaint by fair preponderance of the evidence. The issues are predetermined by the complaint and answer.

(7) After hearing, the parties are afforded an opportunity to file proposed findings and conclusions and reasons in support thereof. The trial examiner then makes the initial decision. With the consent of the parties, the examiner may announce his findings of fact and make the initial decision at the close of the hearing. In either event, if no exceptions are filed to the initial decision, such decision becomes the final decision of the Board, unless the Board, on its own motion, within the time allowed for filing exceptions, should determine to review such initial decision.

(8) Exceptions and reasons in support thereof may be made to the initial decision. Oral argument may be granted upon request in the discretion of the Board. In due course the Board renders its final decision which is served on all parties in the case.

(d) Hearings concerning accidents involving aircraft. When, in the opinion of the Director of the Safety Bureau, a a hearing is necessary in order to fully ascertain the facts, conditions, circumstances, and the probable cause of an accident involving aircraft, the Director of the Safety Bureau, on behalf of the Board, orders a hearing and designates a Presiding Officer to conduct such hearings. Such hearings do not involve adjudication of essential rights of persons but are in the nature of technical fact finding investigations conducted in a formal manner, with authority to issue subpoenas, administer oaths, and receive and record evidence.

(e) Settlement procedures-(1) Economic proceedings. Proceedings involving the granting or denying of certificates of public convenience and necessity or permits to engage in air transportation, or the alteration, amendment, modification, suspension, revocation, or transfer of such certificates are not susceptible of settlement or compromise. In proceedings instituted upon complaint, every effort is made to effect satisfaction of the complaint through negotiations with the parties before conducting a formal hearing. If the complaint is satisfied and the action complained against does not represent an unlawful practice or method of doing business affecting the using public, such complaint will ordinarily be dismissed. In all proceedings involving enforcement of the act, whether instituted by complaint or upon the Board's own motion, the only settlement or compromise ordinarily acceptable is a stipulation to cease and desist from the unlawful practice involved. Such stipulations will not be accepted where the Board is of the opinion that such procedure will not be effective in preventing similar unlawful acts or practices on the part of others, or where in its opinion, action should be instituted under the penalty provisions of the act.

(2) Safety proceedings. Proceedings for the revocation or suspension of safety certificates are ordinarily instituted by complaint filed by the Administrator of Civil Aeronautics. The Administrator may also effect a compromise of the civil penalty prescribed by section 901 of the act. The Board will take into consideration any such compromise in connection with any related proceeding for suspension or revocation of a safety certificate.

§ 302.8 Scope and content of documents. All forms and instructions as to the scope and contents of all papers, reports, or other documents required or authorized by the Board to be filed or maintained, pursuant to the Civil Aeronautics Act or any rule, regulation, or order of the Board, are contained in the Board's civil air regulations and economic regulations. If the form of any document required to be filed is not prescribed, such document should set forth the matter specified in letter form. If the form of any document authorized to be filed is not prescribed, such document should conform to the currently effective provisions of the rules of practice governing general requirements as to papers in proceedings and form and filing of documents.

PART 303-SUBSTANTIVE RULES [ADDED]

Sec.

303.1 Civil air regulations. 303.2 Economic regulations.

§ 502.31 Operation. (a) A dealers' registration certificate shall not be valid for the operation of an aircraft by a person other than the person to whom the certificate was issued or his authorized employee or agent.

(b) A dealers' registration certificate is valid solely for a new aircraft owned by the person to whom the certificate was issued and which is being operated, (1) in the ordinary trade channels between any two of the following persons: the manufacturer, the distributor, the dealer, or the purchaser from such persons, or (2) for demonstration purposes necessary to, the sale of the aircraft, or local production flight tests.

§ 502.32 Transfer of ownership. Whenever the ownership of an aircraft is transferred to a person who is not the possessor of a valid dealers' registration certificate, the purchaser shall make application for registration of the aircraft in his name in accordance with the pro

As defined by section 1 (13) of the Civil Aeronautics Act of 1938, "Citizen of the United States' means (a) an individual who is a citizen of the United States or of one of its possessions, or (b) a partnership of which each member is such an individual, or (c) a corporation or association created or organized under the laws of the United States or of any State, Territory or Possession of the United States, of which the president and two-thirds or more of the board of directors and other managing officers thereof are such individuals and in which at least 75 per centum of the voting interest is owned or controlled by persons who are citizens of the United States or of one of its possessions."

visions of Part 501 of this chapter prior to the operation of the aircraft.2

Rules.

§ 502.4 § 502.41 Display. The dealers' registration certificate shall be prominently displayed in the aircraft during its operation by the person to whom the certificate was issued, or his authorized employee or agent.

§ 502.42 Duration. A dealers' registration certificate shall expire one year from the date of issuance thereof.

§ 502.43 Transferability. A dealers' registration certificate is not transferable.

§ 502.5 Notice. The holder of a dealers' registration certificate shall notify the Administrator immediately of any change which affects his status as a citizen of the United States as defined in section 1 (13) of the Civil Aeronautics Act of 1938, or other change of the conduct of his business which affects his eligibility for a dealers' registration certificate.

§ 502.6 Definition. As used in this part, the term "new aircraft" means an aircraft which has recently been manufactured and is moving in the ordinary trade channels from the manufacturer to the ultimate purchaser. Except that, the term "new aircraft" shall not include surplus military aircraft or aircraft not manufactured in the United States.

PART 510-GENERAL REGULATIONS OF WASHINGTON NATIONAL AIRPORT

NOTE: For proposed regulations under this part, see 11 F.R. 12931.

PART 511-AERONAUTICAL RULES FOR THE WASHINGTON NATIONAL AIRPORT

NOTE: For proposed regulations under this part, see 11 F.R. 12931.

* Upon the transfer of the ownership of the aircraft to a person who is not the possessor of a valid dealers' registration certificate, the parties to the sale will execute the new form ACA 500 in accordance with the instructions on the reverse side thereof. The portion marked "Part B" shall be retained in the aircraft and will entitle the purchaser to operate the aircraft for 60 days pending registration in his name by the Administrator.