Evening star., 1941-03-06

''''''1 capable of car
Jay Franklin. rying 16 passen.
gers and mail in twice-weekly non
stop flights between New York and
Lisbon. At present the trans-At-
lantic route is monopolzed by Pan
American Anyways which in effect
controls all American commercial
air services outside the borders Of
the continental United States.
Under the principle of competition
the old rule for aviation companies
desiring to avail themselves of air.
mail subsidies was to submit bids,
and, having satisfied the Govern
ment of their ability to perform the
services, to receive contracts. 80
In 1888 a new system was estab.
lished. The Civil Aeronautics Au-
thority Qater the Civil Aeronautics
BoardD held exhaustive tests and
hearings Once the Government
was satisfied as to the applicants
ability and the need of additional
service, the legislation directed the
C. A. B. to make budgetary provision
1or mali SUBSIDY payments.
Long Waiting List.
Export Airlines went through all
the motions. With long waiting
list on Pan American for passengers
and transatlantic mail piling up
and repeated weather delays at the
Azores, additional transatlantic air.
lines were clearly needed, and Pan
American-technically committed ia
the New York -Bermuda-Azores-L
bon route or the still longer Wendell
Willkie -four continent" route
could not meet the need.
The c. A B. was satisfied, the
State Departments Division of In.
ternational Communications was
satisfied, the Post Office Department
was satisfied. American Export Air.
lines had complied with the law and
passed every test. All this in place
Of the traditional device of COM
petitive bids and the resultant dan
gers of competition at the expense
Of safety. The item went into the
deficiency budget for operations
through June 30, 1941. Congress
threw 1t out. Another item for op-
erations during the fiscal year 1e4l-2
went into the regular budget. A
subcommittee of the House Appro-
priations Committee vetoed it, 6 TO /.
1t was a straight vote for mo-
nopoly, in the words of the SUBJ
committees report:
"Distasteful as monopoly may be
under ordinary conditions" the re-
port stated, "the fact remains that
our foreign air operation is monop-
oly-instituted, grown up and en-
couraged by the Government with
that knowledge and developed into
a successful and useful arm of our
foreign trade. Under existing condi-
tionS the committee feels a second
carrier in the transatlantic trade
will greatly increase the burden on
the Treasury of the United States
and is not willing to recommend the
additional appropriation on the basis
Of the facts presented"
1888 Act Quoted.
In other words, a subcommittee
of the House Committee on Appro-
priations has vetoed the Civil Aero
nautics Act of 1898, which says in
its Declaration of Policy" (Section
q, that "the authority shall consider
the following as being in the
public interest, and in accordance
with the public convenience and
necessity-(a Competition to the
extent necessary to secure sound de-
velopment of an air transportation
system properly adapted to the needs
of the national defense"
In presenting its case to the
c. A. B., American Export Airlines
offered evidence to show that in q
recent 11-month period, Pan Ameri-
can Airways completed only 26 per
cent of its flights as scheduled; that
there are between 100 and $50 per-
sons in Portugal waiting for passage
to the United States on Pan Ameri-
can aircraft (Which average IA pas
Senders a trip; that whereas do
meStic airlines, under competition,
carry passengers for ~ cents mile,
the Pan-American system charges
between 10 and IS cents a mile on
foreign runs; that Pan American
gets nearly 100000 a year from
the Post Office on its Atlantic service
and receives $31, 500 per weekly trip,
which is considerably higher than
the sum discussed for American Ex.
ports inaugural service.
The matter is now before the Sem
ate Appropriations Committee, which
contains fewer friends of corporate
monopoly than does the House. II
will be interesting to see whether
the same Endorsement Of monopoly
and the same economy" at the ex-
pense of the national defense are the
general rule of this Congress in ap-
plying its own Interpretation to the
law of the land.
Released by Consolidated News Features,
Inc.)