Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1929-04-17
SOLUTION TO
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Rinl is now in Guatemala, but Is
expected to consider the new clause
as soon as it reaches him. II. L.
Yates was attorney for the company
in the negotiations and forwarded
the new proposal to Mr.. Rihl.
In the meeting Wednesday morn
ing Mayor Cole offered a sugges-
ton for a new clause by which the
Pan-American, in return for ac-
ceptance by the city of its prefer
cnce right clause would, in return,
agree to lease the airport for a
period Of twenty-five years on a
basis Of eight per cent annually on
the total of the city'S investment,
should the city so demand.
Vote Needed to Sell
The mayors suggestion imrnedi-
ately met with favor on the part of
all elements represented. including
Attorney Yates for the Pan-Ameri-
lean, the other commissioners pres
ent, and the committee OF the
chamber of commerce directorate.
Attorney Yates said that he would
Immediately transmit the suggestion
to MI. Rih1.
Mayor Cole stated that he offered
that possible solution Of the sit
uation because the city might, at
some future time. find the main
tenance and operation Of the air.
port a burdensome proposition. The
mayor explained that he did not
believe that legally the city could
give any one any preferential rights
in the matter of purchase or lease
Of the airport; that such action
would have to be competitive. 1t
was also pointed out that only on
a vote Of the people could the air
port be sold.
"All the Pan-American Always
asks is protection for the huge in
vestment we had planned to make"
said w. L. Morrison, traffic man
ager for the Compania Mexicana de
Aviacion, Mexican division Of the
system and representative OF the
Pan-American Anyways in the nego-
tiations.
Should the airport at any time
be leased or sold to an individual
or corportion it would be possible
for the new owners to assess land
ing and other charges which
would make u operation from
the field prohibitive.
I'VE do not ask that we be allow
ed to fix the terms of any lease or
sale. We only ask that we be
given an opportunity to meet any
bid made for the lease or purchase
of the airport from the city. A
guarantee by the city that the port
would not be leased would be salts
factory and furnish the needed
protection.
Would Lease Now
"We also offered to lease the port
Immediately for a period Of ten
years and to operate 1t at our own
expense under such regulations as
may be necessary and m to
first class airports in the United
States. For this lease we agreed
to pay $4,000 and to spend not less
than 500, 000, within three years on
improvements. We asked for an
option on an additional ten year
lease. the new lease price to be not
less than double the amount paid
for the first period. This price was
to be set by a committee CON-
posed of one member by the city
commission. one member OF our
firm and the third member to be
selected by the other two.
The contract which we offered to
the CITY commission is entirely
agreeable except on this one fea-
ture.
I'VE have asked for a lease on
N and a half acres Of land located
around the new hangar and have
offered to purchase that structure
from the city at cost and to pay
for this in cash the day the lea5c
on the small tract is signed.
To Build Shops
I'VE agreed to spend 100000 be-
ginning within go days and to be
completed as rapidly as good con-
struction methods would permit, in
stalling shops and erecting other
We