Browning chief. [volume] (Browning, Mont.) 1941-1953, 1941-03-14
GEN ERAL
MUoo Z,
JOHNSON
.GHc:.
49, s.- nU~,

WoSoA1BeSop ~ Os
fRANS-ATLANTIC NAIL
There Is considerable discussion
IN Washington as to whether the gov
eminent should subsidize another
air transport line between New York
and Lisbon to compete with the PAN
American Clippers over exactly the
same route.
In this argument there is little
criticism Of the marvellous pioneer
ing work Of Pan-American of plan.
ming and putting into execution this
transatlantic service which, due to
the war, has become main reliance
for our traffic with Europe, both for
mail and important government Of
ficials and civilians. II is the best
plans for three more sailings week,
six in all, have been made and
financed by the company and ap-
proved by the government.
No, the argument is neither bad
service, high rates nor lack of full
cooperation with the government. 1t
is the word of evil omen in all
American legislative elaboration.
There is only one air service op-
Grating between New York and Lis
bon. The argument is that govern
ment, at much greater cost to itself
for mail service, should subsidize
a much less frequent and initially
certainly less efficient service in or
der that there should be competition
on this route.
1t is the story of the railroads over
again. Any kind of public service,
such as transportation, has some
elements Of public helplessness-
some aspect of monopoly. In deal
ing with early high-handed railroad
operators, our government used two
checks. One was regulation. The
other was 70 encourage and subsi-
die competition-by parallel rail-
road lines at first, later by artificial
waterways, airplanes and roads and
other special advantages for trucks
and buses.
The final result of checking by
subsidized competition was the
mares nest snarl and tangle of our
inefficient and frequently bankrupt
railroad web. The report of the
Coolidge National Transportation
committee, recommending CONSOLE
dation in three or four single monop-
olistic systems, showing that the
subsidized Competition" idea has
proved disastrous and insisting that
1.-The latter (regulation) has been
practiced long enough and sufficient
ly extended to prove that it domi-
mates competition or any other in
fiuence as the governing law of rail-
road practice :"
The air route business is an ex-
actly similar case in which repeti-
ton of errors of 10 years ago in
fumbling toward solution of the
railroad problems was urged. The
present air route has or will ap-
parently soon repay the government
through postage what it expends for
mail freight-which is the Subsidy"
in question.
II that mail load is divided up.
neither company can continue with
out great loss.
DEFENSE LABOR PROBLEM
Both Mr.. Knudsen and Mr.. Hill
man, the Janus-headed duality
which is managing industrial mobili-
zation, have testified that all is sweet
ness and light on the labor front.
They may think so, but hardly any
one else in even remote touch with
the situation does. Unquestionably,
important sabotage is being used in
organizational efforts and attempts
to increase wages.
This is notably true in some KEY
steel plants in dispute where the per-
centage of spoiled work is rising rap
idly and unusually. This is going
on. 1t is very costly and destruc-
tive. 1t creates delays throughout
the whole production process. 1t is in
conceivable that the government and
public can stand for that. The whole
coal industry and much of the steel
industry is threatened with strikes.
Management in some cases is far
from cooperative. The only meth
Cd to deal with this yet made legal
ly available to the President, or his
two-hsaded boy in OPM. is to COM
mandeer the plant. That means that
government takes it over and runs
il ~ IN arsenal 10 run. which in
turn means that labor in that plant
u working for government directly.
All this b being shushed. It has
been badly managed from the be-
ginning. II was. generally under
stood between President Wilson. A,
r. a L. President Samuel Gompers
and industSy, that the STATUS QUO
anti" - between labor and man
Aeoment should remaia h aefense IN
daoffin9. Thus, except - rising
eoGoD - nN1ng jsast1oed higher waReo
cd ~ osVefnGnea1's tuo labor