The Waterbury Democrat., 1941-12-01

ing the one lone tranS-Atlal
 For years Pan American Air. ways has had 100 per cent monopoly on all foreign air routes from the United States. But last year the State Department, Post OfIice and Civil Aeronautics Board, agreeing that competition was the chief basis of the Amer lean system, granted American Export Lines Q license to fly the Atlantic.
 But now that American Export had just about completed build Ing its first plane, Q giant Stkor- sky pBY, the Navy hos grabbed 1t. Meanwhile 1t has left untouched the l60 airplanes in the possess sion of Pan American AirwayS.
 Most interesting thing about the Navy's grab Is that the Navy's Assistant Secretary for Air is Artemus Gates, formerly director of Pan American Airways. Also one of the Nays key officers in charge of long distance flying Is It, Commander c. II. Shildauer, who for seven or eight years handled Pan American Alrways operations in the Pacific.
 Some of Secretary KnOx's cabinet colleagues have remon- strated with him that 1t looked very bad for the Navy to be SeiEing the property of Pan American Airway's rival when a former director of Pan Amer lean Airways was in charge of the seizure. Knox replied that he was convinced that Gates, who was president of the New York Trust Company, would be absolutely fair In the matter.
 However, Postmaster General Walker, Secretary of State Hull, and Secretary Ickes all feel that the Navy has been unfair in talk ing the one airplane of American Export and leaving untouched the l60 planes of Pan American. PAN AM DIGS IN
 This incident has brought to the fore once again the manner in which the war emergency has en- trenched monopoly in overseas air routes more than ever instead of getting back to the American principle of competition.
 Another monopoly question which also has caused sparks to fly inside the cabinet is concern ed with the Aluminium Corpora ton and the defense plants 1t is building for the Government. Al- though RFCzar Jesse Jones' handling of these contracts has been criticized, 1t remains a fact that the plants he is financing remain the absolute property of the U. s. Government.
 However, Pan American Air ways is now receiving $12,O00,- 900 from the USA for building new or larger airpOrts in Latin America. And when it finishes spending the Governments $l2,- OOO,OOO, the new and improved airpOrts will belong not to the Government but in many cases to Pan American Airways. For Pan American owns many of the airp0rts and is taking steps to secure a complete monopoly over others.
 In Guatemala, for instance, the Pan Am representatives called on President Ubico some time ago and proposed improving Guate- mala's chief airport, but on the basis that Pan American should be given exclusive rights to use 1t, and no other foreign company should come in for approximately 25 years.
 To which President Ubico re- piled that he was well aware the U. S. War Department was putt ting Up the money for these iTn- provements and Pan American Airways would get no exclusive rights.
 In addition to the sl2.OOO.0OO for Latin America. Pan Am Is get- ting Q reputed S20.0OO.0OO for de- yelcping new airports Tin Africa. and so far no safeguards have been set up to prevent these bases from becoming a monopoly. NAxI AIRLTNES IN BRAZIL
 Latest trouble which the state Department has had with Pan American Airways is in Brazil, where for several years U. S. strateaists have been worried over four Axis airltnes operating there. These lines are:
 1. The Italian L,ati, which
 operates from Africa to BrazE