Evening star., 1951-06-03

mechanics, meteorologists and
other technicians to operate these
domestic lines, and later sold the
controlling interests in practically
| all of them to the citizens or gov
ernmentS of the countries con-
cerned. 1t has also set up sub
sidiary, the Intercontinental Hotels
Corp. to help the nationals in
these and other countries plan.
finance, build and manage hotels
| in an effort to encourage more
travel and tourist trade.
From a study Of the voluminous
legal documents recently filed with
the CAB, 1t is apparent that some
of the major difficulties that have
arisen between Grace and Pan
American have grown out of these
varied and widespread holdings
and activities of the two COM
Ipanles. Grace feels that Pan
American is trying to maintain a
monopoly on through. one-plane
service between Buenos Aires and
New York by the Atlantic, or East
ern South American route. At
least Pan American now has the
only such service.
Grace argues that unlike Pan
American Airways in Eastern
South America, Panagra on the
West Coast has to compete with
Branif Airways, q domestic as
well as foreign carrier, which is
able to fly its own planes. not
only to but into the United States,
as far North as Chicago and West
Ito Denver and other Midwest and
Northern cities. Braniff also has
its own certified route to Panama
and across the Caribbean, by way
!. Of Havana.
! Pan American not only has di-
rect line between Panama and
Miami, but several others, one
between Panama and New Or
leans, another between Panama
and Houston, and a third between
Panama and Los Angeles by way
of Mexico. Avianca, a Columbian
line, partly owned by Pan Ameri-
can, also flies into this country
ALI these and others, say the Grace
people, have their own trans
Caribbean routes, yet Panagra has
been denied such a franchise. and
is compelled to turn its planes over
to Pan American in Panama in
order to get them as far North as
Miami.
I 1t is further contended by Grace
that Pan American has brought
its influence to bear against Pan
Iagra obtaining a route of its own
from Panama to Miami. or to any
other point on the United States
mainland, because it wants to
maintain a Strangle hold on all
traffic in that area. 1t also Sug-
gests that Pan Americans princi-
pal objection to Panagra planes
being interchanged with National
Airlines, or any other line for the
flights between Miami and New
York, is that 1t would give Panagra
travellers a more direct and even
shorter route between Buenos
Aires and New York.
The Grace faction in Panagra
also reasons that there is no need
for new interchange agreement,
such as Pan American has pro-
posed with Eastern, since there is
already the decision of the CAB
for a temporary interchange be-
tween Panagra and National. Pan
American, they say in effect, could
just as easily go along and allow
its planes as well as Panagra's to
be flown on to New York over Ma
tional's lines.
Pan American Counters
Pan American Spokesmen coun-
tier with the arguments that, first
of all, their company has nj
monopoly either between the East
coast of South America and the
Eastern United States or across the
Caribbean from Panama to this
country. Panagra itself, they
point out, actually competes fol
Argentina or Eastern South Amer.
ican trade as well as the Western
South American traffic.
Grace officials. according to Par
American. persist in trying tt
make Panagra an integral part o1
what it calls "the Grace empire.
In reality. the Pan American peo.
Iple contend. the Panagra line be.
gan as, and from their viewpoin
still is, an integral part of the Pal
American airways system.
Pan American contends tina
the proposed interchange with
Eastern Airlines would be NOR,
advantageous to both passenger
and to cargo shippers than al
interchange with National.
According to Eastern Airline
spokesmen as well as those fol
Pan American, a Panagra inter
; change with National at Miam
would destroy what they call 18th,
competitive pattern" in Unitet
States-South American air traf1,
previously set up with Government
sanction. This pattern" was ar.
ranged so that travellers flying BY
Pan American and Panagra plane!
between New York, the Caribbean
and Western South American
cities would connect with East.
' ern planes at Miami, while those
!. travelling by Braniff on the same
routes would connect with Ma,
tional'S planes at Havana.
Pan American and Eastern con-
tend that w. r. Grace & Co. !,
!. .Itrying to dominate air traf1ic be.
tween the South American west
coast and the cities Of the Eastern
United States. They also call at.
: tention to the fact that Grace Ii
z the only American operator O.
Q steamship. or surface lines" whit
D is still permitted to own as mucl
as SO per cent of any airline
- Roth To cfo,.r, ovl noyo A,,oo,.;ao