Evening star., 1937-07-18
BENEVOLENT MONOPOLY
is CREATED BY AIR LINE
Pan American Saw Into Future and
''Sewed Up Trade Routes That
Aid i. S. Business.
RY LOSEPH S. EDGERTON.

ton, much of the development was
based on pure expediency-a mere
/ meeting of the demands of the
day The flying OF passengers, mail
and express was too new a thing to
admit Of range planning. There
were too many unknown factors in
volved. the science of flying was
changing too rapidly to permit looking
very far into the future. Or so it
was thought
The result was that many OF the
airlines made those mistakes which
are the inevitable result OF short
sighted policies. They were costly
mistakes and they resulted in finan-
e1al failures in many cases.
There were, OF course, exceptions to
the general rule of living for the day
A few of the domestic airlines went
In for what some OF their competitors
eontemptuously referred to as crystal
gazing" and became the beginning Of
the great systems of today
Perhaps the most notable example
OF long-ranRe Air transport planning
however. is that exhibited, not in the
domestic field, but in the more diffi-
cult field OF information flying by the
group Of pioneers who established
what today is Pan-American Airways.
The growth of this system into the
worlds greatest Air transport unit is
the result OF type OF planning which
from the very beginning looked ahead
into the years and prepared for the
future
Spared Cancellation Stigma.
II was type of planning so sound
and SO detailed that when the political
storm OF 1884 swept away every do
mestic airmall contract, Pan-American n
alone of all the airlnes under the
United States flag was unscathed. 1t
had established itself so firmly and
had made itself so vital and integral
part OF American foreign commerce
and policy that Congress. the State
Department. the Post Office Depart
ment and the Commerce Department
were forced to recognize that it could
not be treated as part of the ordinary
airmail system
So thorough and far-seeing was the
policy which has guided the develop
ment of this international line, which
nov carries the United States airmail
nag into every country of the Americas
and every territorial possession OF the
United States. which crosses the Pa
cific and operates in China and which
now is pioneering its way across the
Atlantic, that when the depression
staggered progress on every other
American airline. n-American went
forward to its greatest gains. These
gains it made and has maintained in
the face OF domestic depression and
the savage competition OF subsidized
European empire" systems.
Pan-American made a modest start.
At the end of 1923 it was operating a
single 25l-mile route following it's
inaugural venture between Miami and
Havana. BY the end OF 1929 Pan
American was operating a 10000 mile
system. The end OF 1885 found it
operating over routes totaling 4O.869
miles, this year has witnessed COM
pletion OF the Pacific service, inau-
euration OF the Bermuda line and
opening OF services in South America
which brought into the network the
only TWO nations into which Pan
American had not previously operat ted
IN the New World. Before the end of
this year, it is anticipated that Pam
American will be operating across the
Atlantic and down through the South
Seas from California to New Zealand.
Pioneering flights across the Atlantic
and to New Zealand have been made.
Under the United States flag, Pam
American today operates nearly one
NTH OF the total interna tional airvav
mileage and at the beginning of this
year linked together a total OF 40
countries
Pan-American's success is credited
10 the fact that it has reversed the
procedure adopted by a majority of
Atrlines in developing new territories.
Almost universally the procedure In
the United States has been to obtain
an airmail contract and then base
development upon the contract: no
contract, no development.
Pan-American, on the other hand
has gone into its new fields as though
there were no such things as airmail
contracts to worry about Long before
any one else had considered the possi-
: bfl1tN OF alrmail service on MANY of
Its routes. Pan-American was in the
field. Trained foreign commerce ex-
perts we're studying all of the trade
possibilities and arranging desirable
commercial agreements between local
interests and the airline.
All-important operations agreements
were arranged with governments along
the route, covering the handling of
airmail and the use OF ports and other
facilities. Options were obtained on
the use Of railroad facilities. servicing
facilities, ports, hotels-anything which
might be essential to the operation of
an airline. In every possible case the
agreements were exclusive agreements
In favor OF Pan-American. Its fran
chlses TO operate in foreign countries
were obtained long before the first
alrplane appeared; before any one else
was fully awake to the possibility of
airline service over the route.
Mail Follow Automatically.
With the route thoroughly and COM
pletely "sewed up" Pan-American was
ready to operate. Very often its op-
erations were begun without mail, in
order to protect its franchises. But
when the time came for airmail, it at
once became apparent to all that there
was but one airline in the field and
only one which could operate in that
particular field for a long time to come.
So, when airmail bids were advertised,
Pan-American submitted its bid at the
maximum legal rate and was, virtually
without exception, the sole bidder.
This was the reason Pan-American
alone was spared In the airmail con-
tract cancellations. Pan American
was our foreign airmail service. 1t
held exclusive franchises everywhere
aud moe cola Il,