Evening star., 1947-02-22
|TWA Begins Removal
OF Executive Offices
Here 10 Kansas Civ


Washington headquarters OF
Trans World Airline now are being
moved to Kansas City, but spokes-
men here said today they are not
in a position to say how many Of
fees or employees will be affected
They said it is likely that several
executive offices will close here, but
the district Office will remain.
Following announcement of the
resignation of Jack Frye, 42-year-
old airline pioneer, as president OF
the company, it was disclosed today
that company stockholders within
few days will receive new pro-
gram of management for Trans
World Airline designed to strength
en- the financial status of TWA and
to implement refinancing plans"
A representative of the Hughes
Tool Co., which holds 46 per cent
of the outstanding TWA stock, sale
this interest may be further in
creased under the financing plans
These moves give complete contro
of TWA to the interests Of Howard
Hughes.
New Board to Be Named.
A new board of directors will be
named at a. stockholders meeting
in Kansas City April "a.
The management shake-up and
removal OF executive direction tc
Kansas City means that almost
certainly" the company will not
occupy a new building being erected
at Connecticut avenue and M street
an official said. Arrangements were
under way to lease part of the struc-
ture, he explained, but Its safe tc
say that will not materialiZe.
The net effect of the transfer of
executive headquarters, another COM
pany official said, may be the re-
moval of approximately a dozen
officials and employees from Wash
ington to Kansas City.
Staff Already Cut Here.
"The principal effect is that ad-
ministrative control of the company
is being changed from Washington
to Kansas City," he explained. 1--WE
have recently been cutting down our
executive staff here and the final
result probably will be that only 10
or a dozen people will be moved.
'The people in the regional and
strictly local administrative offices
here are not likely to be affected at
all. The International Division
Offices will remain in New York
City,
Mr.. Frye said he would not seek
the presidency of the company at
the April "a meeting because he was
mot in agreement with the policies
of the controlling stockholders with
respect to the financing of TWA."
E. Lee Talman Resigns.
E. Lee Talman, senior vice presi-
dent in charge of transportation,
also announced his resignation. A
spokesman for the Hughes Tool Co
disclosed today that Gen. T. B.
Wilson, formerly chairman of the
Board of Directors, also will not con-
tinue in an administrative capacity
"a basic step in the new pro-
gram" the spokesman said, "in-
wolves the election of a new boaro
of directors, probably of IL or Il
members, to replace the present
board of a. Following the election
officers will be chosen by the board
to manage the airlines for the en-
suing year. Mr.. Wilson, Mr.. Frye
and Mr.. Talman will not continue
in administrative capacities. All
are now board members. Mr.. Frye
and Mr.. Talman will probably con-
tinue in consulting capacities"
The official added that an ex-
ecutive committee is functioning in
a management capacity, pending
election of new officers This COM
mittee consists of A. v. Leslie, Pal
mer Bradley and John A. Ceilings.
Long Reported at Odds.
There have been reports for some
time that Mr.. Frye and Mr.. Hughes,
both veteran pilots and once close
friends, have been at odds on ad-
ministrative and fiscal policies OF
TWA.
The Hughes Tool Co. of Houston,
Tex, recently made a $4,000, 900
loan to the airline which spans the
continent and stretches as far as
Bombay, India. A pilots strike
which lasted 27 days last October
cost the company an estimated ST.
100000. Hundreds of employees were
laid off and many have not yet
been re-employed.
The following statement was
issued by Mr.. Frye on his resig-
nation:
II have decided that I will not
stand for reelection as president
of TWA or as a member of its
Board of Directors. I have arrived
at this decision because I am not
in agreement with the policies OF
the controlling stockholder with
respect to the financing of TWA
and the operation of it's world
wide routes.
"It has not been easy to come
to a decision which brings to an
end close personal association
with many who have worked with
me during the past 20 years in the
building of TWA. However, the
satisfaction of having completed
the development program which we
set out to accomplish in the early
days of air transportation can exist
in full measure only if this great
system is operated soundly and
with full recognition of our respon-
sibilities to the public and to our
Government.
Wants Full Accord.
"ThiS can not be achieved with
out full accord between ownership
and management on matters of
basic policy, and I see no likelihood
of such a situation developing.
prefer to withdraw from my present
responsibilities.
ITO everyone in TWA I extend
my sincere thanks for all you have
done to help in making TWA one
of the finest air transportation sys-
TENS in the world.
"The foundation of transporta-
tion system is its routes. The TWA
rOIJtoc oro Y1nur coooyI to ao,,