The people's voice. [volume] (Helena, Mont.) 1939-1969, 1957-11-01
By BARROW LYONS
Special to THE VOICE

WASHINGTON, D. C.-The story
of how what appears to be ruthless
international cartel has come to domi-
nate the airlines of the world is told
in one of the most important and fas-
cinating reports to come out of the
first session of Congress this year.
This report, which examines the air-
line industry, domestic and foreign,
was issued by the Antitrust subcom-
mittee of the House Committee on
the Judiciary, of which Repr. Eman-
uel Cellar (D-N.Y.) is chairman. 1t
is based upon testimony taken last
year at hearings which stretched from
February 27 to June Is, and covered
almost every phase of the air trans
port business.
While the report reveals how fed
eral policy has fostered the develop
ment of monopolistic industry, both
in this country and abroad, and
strongly recommends that the At
torney General study the situation
with a view to antitrust action, it is
not unsympathetic to the industry. In
fact, it has high praise for the enor-
nous and efficient job which the air.
lines of the United States have per-
formed.
But the time has come, the COM
mittee believes, to let some fresh air
into the industry-actively to stimu-
late more competition and equalize
the unfair situations which have
grown up under government-fostered
and lavish subsidy with pub
lie funds.
AN OBJECTIVE REPORT
The report is unusually objective
and analytical for a congressional
document dealing with abuses and in
equities. The situation could hardly
have been otherwise, it condones,
considering the circumstances sur
the birth and adolescence
of the industry, and the laws under
which it was nurtured. But the in
dustry is now able to stand on its
own feet without coddling, the COM
nittee believes, and should be made
% do so.
Even in it's rather sharp criticism
If the Civil Aeronautics Board for
being too greatly influenced by the
major airlines, the report is not harsh.
t points out that the law itself made
t almost mandatory for the Board
o exempt airlines from impact of
he antitrust laws, with a view of
placing government aid and subsi-
lies in the early days of development
It the disposal of the more efficient
and protecting them from
This was done to pro-
note rapid growth of air transporta-
ion. Under these circumstances CAB
MEMBERS became closely identified
With the industry itself, sometimes
D the extent of forgetting their duties
e the public in general.
But the CAB was charged by the
'ivil Aeronautics Act of 1888 with
eveloping the industry so that rea-
enable competition was maintained.
18th establishing "just and reasonable
ANifiod1i anu JOliiI IdIeS, ldTGS and /.
harges" and seeing that good serv-
re was rendered. The committee adj /
uced evidence indicating that the
oard has not always lived up to it's
responsibilities in this respect.
Y NATURE SYMPATHETIC $
by nature of their operations" C
lie report points out, regulatory
odles operate in specialized atmos- p
here. After appointment to a regu- S
tory board or commission, the mem t.
er finds that both his professional C
I'd social life are submerged in af-
IRIS of the industry in which he o
orks. The result of this intimate s.
lilly association between the men, C
'rs of the industry and the members Il
the regulatory board or commits n
on IS that the government agency b
evltably becomes sympathetic with p
e problems of the dominant firms fl
the industry with the result that
e long-run point of view of the :.
'ency officials becomes identified
tn the manapernent. of +bo wood |