Evening star., 1950-01-08
Continued From Page C-1)

would save the taxpayers $9,0O0,-
900 annually in mail pay and in
recommending CAB approval of
the deal, he urged something be
done to see that Pan American
would make good on this promise.
Approval Of Mr.. Wrenn's report
by both the CAB and President
Truman would ratify a victory for
Mr.. 'rrippe that could be best
described by saying that 1t would
be a devastating defeat for the
opposition and. being loosely Or
ganized, it could crumble over
night. For when American Air.
lines, the Nations largest domestic
operator. signed over its AmeA-
can Overseas Division to Pan
American a year ago last Decem-
ber (subject to final approval by
the CAB, Mr.. Trippe captured the
most forceful leader Of the opposi-
ton to his "monopolistic" plans
c. R. Smith. head man of Amer
ican. Mr.. Smiths reason for
wanting to get out Of the airline
business to Europe after compet-
ing with Pan American between
New York and London since No.
vember, 1945, was that postwar
events did not conform to his esti-
mates and that it did not appear
profitable to continue.
Into his shoes as leader OF
the opposition has stepped Mr.
Smiths longtime friend and
business associate. Ralph S
Damon. who. as president o1
American Airlines (Smith was
board chairman). resigned last
January In protest over the deal
which he declared was entered
into without his knowledge. Mr.
Damon was promptly importuneo
by Howard Hughes to become
president Of TWA and Mr.. Damon
did. Mr.. Damon. as president ot
TWA, still opposes the sale o1
AOA to Pan American. holding il
throws the North Atlantic route
pattern out Of balance by adding
power to Pan American and re.
ducing TWAS ability to compete
He calls 1t q "monopolostic grst
by Pan American"
Should the CAB and the presi.
dent block the merger, the com.
petition among the three United
States nag lines on the North
Atlantic will enter an all-ou,
stage Of ferocity. owing to thu
fact that the CAB franchises hele
by all three, issued as seven-yeal
temporary certificates in July
1945. expire in July, 1852. Some.
time prior to that expiration date
CAB must examine all three fol
qualification to hold permanent
certificates. American Airlines
having expressed a strong desir,
to have no more part of tn,
North Atlantic business, If forcee
to continue operation until July
1852, could not be expected tt
make a very strong showing fol
a permanent permit. A battle.
royal would then ensue between
these two wealthy giants-Hughe.
Tool Co.. which owns 80 per cen
Of TWA, and Pan American, witt
its experience, size and prestige
Yet. unpredictable MIR. Hughe.
who has passion for experiment
tai flying and motion picture pro.
ducing. easily could become boret
with the prospects of q long
hard fight and sell.
But If he still is as outraged
now as he testified he was in that
colorful investigation of 1947
when he bitterly denounced Par
American monopoly and its tao
tics in pursuit thereof. he would
be expected to spare no effort OF
any OF his millions to give Mr.
Trippe a fight to the finish.
The North Atlantic is not the
only theater OF United States
airline combat. Intense fighting
is scheduled to break out In the
Latin American and Pacific areas
once Pan American has disposed
OF the New York-Europe competi-
tion, II 1t can. With the blessing
OF the Government and some
financial support, 10 prewar con-
tented United States domestic
airlines have been cut in on the
foreign routes and areas opened
by Trippe before Pearl Harbor
-Four of this number-American
Airlines. Braniff International
Airways, Mort west Airlines and
TWA-were authorized to operate
a total Of 55, 1000 miles from Amer