Evening star., 1937-12-26
WORLD AIR RACE
FOR OCEAN ROUTES
FierCest Battle for Trade in
Modern Times Is De.
CIared Ahead.
Special Dispatch to The Star.


With Pan-American Airways' survey
flights to Auckland scheduled to begin
early in January, looking toward the
extension of trans Pacific service to
Australasia, ana the initial winter
season transportation of passengers
between Baltimore and Bermuda in
full swing as the first leg of trans-At-
lantic flying, the international stake
held by the United States in oceanic
aviation begins to assume measurable
significance.
In spite of the fine cooperation that
that existed between the British I'm
perial Anyways and Pan-American and
the courtesies shown to German Luf-
thansa and to Air France, it Is an
open secret that probably the f1ercest
battle for trade routes of modern
times lies close ahead. What part
the airship will play remains to be
seen with the coming of the Hinden-
burg's successor next spring, but even
the short year just closed of passenger
business from Alameda, Calf, to
Hong Kong in the comparatively small
Clippers points to the developing
trade possibilities.
The most recent figures obtainable
are from Hong Kong. A Pan-Ameri-
can official told this writer: Air
service makes the best sense not
merely when it goes to some new place,
but when in going to such place 1t
connects up with existing services. 1t
is for that reason that since the ex-
tension of the trans-Pacific line from
Manila to Hong Kong, air service
across the Pacific has taken on real
meaning and Kai TAX Airport at
Hong Kong has developed to the
status of an international terminal.
During October, 1886. only eight
passengers arrived and departed from
the colony by air, clearing through
Kai TAX. Since last April We have
been meeting Imperial Airways there,
and, in October, 1887. SAT passengers
cleared. Even more impressive has
been the amount of freight carried by
planes to and from Kai TAX. October,
year ago, SO kilos of air express were
mailed, while during the same month
this year the figures total 1882 kilos." :"
Enterprises Stimulated.
One of the most vital facts in the
picture is that the airplane is not only
opening up new routes for foreign
trade, but that in the desire to build
business for itself, it stimulates new
enterprises that can use its peculiar
qualities. This has been increasingly
true in the Central and South Amer
ican sector, and it is already being
demonstrated in the Orient. The VOL
umes of cargo involved may not be
large, as compared with those carried
by surface vessels, but they usually
consist of high-value merchandise
from which there is return far out
of proportion to the high transporta-
ton charges.
There is. for one example, the now
famous case of the Chesapeake Bay
oysters, which. using combination of
domestic and trans-Paciflc airlines,
make it in 80 hours fat from their
native waters to the dinner tables of
Honolulu, and are all set to go farther
afleld.
The war situation in China has for
the time being completely eliminated
the promising Chinese National Avia-
ton Corp, in which Pan-American
and the Chinese national government
were partners. When hostilities COM
menced, foreigners were evacuated
and then all planes, equipment and
personnel were removed from the war
zones. But there have been numerous
instances of mail tie-ups where planes
have been the only way out. Several
times the cables have been cut, COM
mercial radio service interrupted and
steamers held in port or turned back
Mail and express loads have sometimes
been shifted half a dozen ways in the
effort to get through to the outside
world, with final recourse taken to the
clippers at Hong Kong.
Trade Building Job.
But it is the normal peace-time
situation that represents the true
estimate of possibilities. In the tre-
mendously competitive South Ameri-
can territory, Pan-American has done
an excellent trade-building job.
France, Germany, Great Britain and
Italy are major factors in these rich
markets, and the successful con-
testant has frequently been the one
who could give the swiftest deliveries.
One cosmetic manufacturer in the
United States recently won a wide
new market by flying samples to his
newly organized sales force in the
field while the competitive product
from Germany was on its way by
steamer. Revised blueprints and es-
Inmates flown to important confer
ences have enabled American bidders
to win out on contract competition
with foreign governments
Airway development has really
changed the entire method OF foreign
commerce in this part of the world.
The archaic custom of carrying huge
inventories in stock, due to the length
Of time needed for replacements, was
a serious handicap during the de-
preston. Money was tied up and
goods became obsolete for lack of move
ment. As business began to improve
It was still necessary to wait months
for shipments unless air service was
available. But as the use of the
planes grew inventories carried dimin-
ished rapidly because it was no longer
necessary to wait more than a few
days.
A great improvement in billing was
also effected by the airline. Formerly,
much red tape surrounded shipments.
Express was not differentiated from
freight except in size-although the
bulk of the business was in small stuff
-visas were required and a compli-
Gated system of documents. Pan
American finally got an airway bill
passed throughout the area, with the
result that now single sheet, quickly
arranged, covers all express ship
ments. This same service is now 60
ing into the Orient.
In Alaska practically everything is
going by plane. Even machinery and
explosives are carried and dropped
by parachute where landings cannot
be made. No dog team trails are left,