Evening star., 1950-07-16

l, DuC ne mas SCeaQ1aSCly re1uSed
to connect 1t with the merger case
or his publicized differences with
the House Appropriations Com
mittee. He insisted his desire to
return to private life was pri-
marily for personal economic rea-
sons and left the city for q sea-
shore vacation yesterday evening
looking relaxed and relieved.
Mr.. O'Connell's predecessor, Mr..
Lands, former dean of Harvard
Law School, former chairman Of
the Securities and Exchange Com
mission and also the Maritime
Commission, friend to airline
pilots and foe QegaD of American
Airlines and Pan American Air
ways, has been an active and prin-
cipal participant in the opposi-
ton to the sale of AOA to PAA
along with Trans World Airlines.
TWA, controlled by multimillion-
aire Howard Hughes, an outSpoken
foe of President Juan T. Trippe
Of Pan American. has been flying
the North Atlantic in competition
with Pan American as far as Ire
land, thence to Paris. Geneva,
Rome and Athens and on out to
India, the Paris Rome points be-
ing exclusive to TWA and hereto
fore denied Pan American. TWA
was barred from London by the
CAB, though AOA and Pan Am.
served this important point along
with just about all the other for
eign operated airlines flying the
North Atlantic.
Lands Interested
Mr.. Lands has been and still is
very much an interested partici-
pant in the case, being counsel
without charge for a group Of
AOA air and ground employees
identified in short as Brian
Sparks ct AL" who have sought
to prevent the sale of the COM
pany to Pan American and have
also advanced the alternative pro-
posal to buy it and operate it by
raising the necessary capital
among themselves and from out
side sources. Brian Sparks is a
captain of AOA's Stratocruisers
which he flies regularly from New
York to London and Frankfurt
and he testified in early proceed
ings that he and his group have
at least the moral support of John
E. Slater. president of American
Export Lines which founded AOA
but was forced by the CAB to
divorce itself from controlling in
terest which it did by selling to
American Airlines. Mr.. Slater's big
steamship line, though. holds q
minority interest in AOA.
Aiding Mr.. Lands by coinci-.
dence, because they held similar
views. is Public Counsel James
L. Highsaw, jr., and William F.
Kennedy. CAB lawyers, but desig.
mated by CAB under law to repre-
sent the public. Mr.. Lands and
his two young law partners, STAN
ley Gerwitz and Hardy Maclay, Of
Washington, also represent Sea-
board & Western Airlines. q
large, irregular transatlantic air
cargo line seeking a certificate
from CAB to engage in scheduled
air cargo service to principal
European cities. S. g. w. joined
with Sparks ct al, in the person
Of Lands and Maclay in the 2
m. tactical maneuver Wednes-
day on Judge H. A. Schweinhaut
Of United States District Court
and obtained the temporary re-
stralnlng order against the CAB.
The order prohibited the four re-
members from issuing
and promulgating the decision in
the merger case as the White
House was then reported as hav-
Ing wanted it Prepared reversal
OF the CAB majority decision
and as it was planned to be issued
by the CAB at IL am. that day.
Related Recommendation
In seeking to dissolve this re-
straining order in argument be-
fore Judge Schweinhaut Thursday
afternoon, Assistant Attorney
General H. G.. Morrison let it be
known that President Truman had
signed the original CAB decision
disapproving the merger but SUBJ
sequently reconsidered and di-
rected the CAB under date of
July 10, to approve the merger.
Mr.. Lands at this point told the
court that the new decision by
'he President contained the pro-
Vision that TWA should be given
london and Frankfurt, Germany.
and that Pan American should be-
in the heretofore two
rWA exclusive cities of Paris and
Rome. A copy of the Presidents
'equest, addressed to Acting
Chairman Oswald Ryan of the
LAB, was made part of the rec
,rd in the argument before Judge
'chweinhaut, who now is ex-
'ected to rule on the restraining
rider early in the week.
All but overlooked in the weeks
developments was a significant
'8-page report and recommends
ion by CAB Examiner Edward T.
'todola to the board last Monday
recommending the board approve
he acquisition by Hughes Tool
20. of which Howard Hughes
S sole owner of 73 per cent
# the stock of TWA which
dr. Hughes now already holds.
This transfer has to be approved
" the CAB because Mr.. Hughes.
IS owner of Hughes Aircraft Co..
in the plane-building busi-
less. However, since they are not
!ircraft Of commercial types, and
therefore, not usable by TWA, the
xaminer recommended that Mr..
hughes be permitted to hold his
which gives him prac-