The Wilmington morning star., 1947-10-30
WIT M1NCTON FORMING STAR, WILMINGTON. n. Z.
AIRLINE DECISION
Continued From Page One)

mont's lawyer, retorted that the
CAB could choose any applicant
to render a service found in the
public interest, which, he said,
was "the primary consldera-
ltion." Murchison cited several
previous cases to show that
routes outlined in detail by one
applicant were given to another
and vice versa. ~
Although Piedmont did plan a
passenger system primarily in
Virginia and the Carolinas, not
crossing the Appalachian
mountains, the company also
which would later be transform
proposed to serve several other
ed into passenger routes, he
said.
Schleit contended that State
had Submitted a virtual blue
print for the routes, whereas
states in mail pickup routes
its rival had made no plans for
trans = Appalachian service and
had offered to serve only cities
in the South Atlantic states.
He said Piedmont had pro.
posed to use single = engined
planes, which the CAB does not
allow on certificated routes,
and had planned to spend only
$3.50, 900 in starting the limited
Virginia = Carolina rvice,
whereas "three times as much
would be needed to finance the
routes from the Ohio river to
the Atlantic ocean.
Murchison replied thu
equipment and planes are IT.
relevant, that the proposed use
of single motored planes was
mot challenged" by anybody in
the previous hearings, and that
Piedmont was better qualified,
on all counts, to perform the
service.
He drew this comparison be-
tween the two firms:
l. Piedmont has logged $780,
900 miles in student flight train
ing, State, none.
z. Piedmont has conducted
ground schools, State none.
8. Piedmont has an overhaul
and repair shop, State none.
4. Piedmont has logged &c.
900 miles in charter operations
lin the year and half preceding
the first hearing in the case in
mid-1945. State had done no
charter service in the previous
twelve months, though it had
performed some earlier.
5. Piedmont had 40 employees
at the time of the hearing,
State six.
6. Piedmont had several
planes, State owned none.
7. Piedmont had learned 9
q profit" in four and halt
years operations; State "neve1
made a profit"
8. Thomas H. Davis, Pied.
mont's president, was an expe-
rienced pilot; H. K. Gilbert, Jr.,
States president, was not.
9. Piedmont planned to sci
$500, 600 in stock privately te
such Winston-Salem business.
men as Thurmond Chatham
Clay Williams, r. N. Hanes, E
L. Davis, William. Conrad, anc
R.. B. Crawford, and had {
firm commitment" for a $500.
600 loan from the Wachovis
Bank; State had only an I'm.
derwriting firms letter saying
it was prepared 10 offer States
stock to the public.
10. Within five and a hall
months after receiving a tenta.
tive award of the disputed
route, Piedmont notified the
CAB that it was prepared tc
start service last September Is;
State had estim ated that ii
would need a year or more tc
begin operations.
Among the routes outlined fol-
Piedmont by the CAB was one
starting at Louisville and Gin.
clnnati, co-terminals, crossing
Kentucky and forking at Bris-
tol, Tenn-Va., with the southern
prong going to Asheville, Char
lotte, Southern Pines-Pinehurst.
and Fayetteville to Wilmington.
and the northern prong going to
Winston Salem, Greensboro
High Point, Raleigh = Durham,
Goldsboro, and New Bern, with
seasonal service to Morehead
City. RaleighDurham and Fay
etteville would be connected.
too.
Another route would link Gin
cinnati and Norfolk, Va, via
Roanoke, Richmond and other
points.
Representatives from several
case heard the arguments,
of the cities concerned in the
which will be concluded tomor-
row.
From Wilmington came Col.
H. E. Boyd and Harry Gard
ner, a county commissioner;
from Greensboro, Caesar Cone;
and from Winston Salem,
Charles Norfleet. Congressman
j. Bayard Clark, of Fayette-
vile, was represented by his
secretary, Marion Shuffler, of
Wilmington. Public Counsel
Greer Murphy is to argue to-
morrow for the legality of the
award to Piedmont, Smythe
Gambrell will speak for East