AMERICA’S OCEAN AIRWAYS

Southland Times, Issue 23379, 10 December 1937, Page 5

AMERICA’S OCEAN AIRWAYS

BATTLE OVER FUTURE CONTROL PAN-AMERICAN MONOPOLY OPPOSED (United Press Assn.—Telegraph Copyright) (Received December 9, 9.15 p.m.) WASHINGTON, December 9. A series of criticisms of the alleged monopoly held by Pan-American Airways marked the opening of a battle for “freedom of the air.” Witnesses before the House Merchant Marine Committee, which urges that the control of trans-ocean aviation be transferred to the Maritime Commission, asserted that control by the Post Office tended to preserve the monopoly. Ur John Slater, executive vice-pre-sident of the Export Steam Ship Corporation, declared that man-made obstacles were preventing shipping companies from entering the air. “I do not wish to detract from PanAmerican’s work of development,” he said, “but I find no precedent for rewarding a pioneer company with a monopoly.” The chairman of the Maritime Commission (Mr Joseph P. Kennedy) before the Senate Committee urged that overseas aircraft should be given subsidies for construction and operation in the same way as shipping. “The foreign trade service in future will be integrated as an air and water service in which fast passenger traffic and express cargo will travel by air and slow passenger traffic and heavy cargo by water,” said Mr Kennedy. “This will be far less costly than super ocean liner services.” ' LINDBERGH INVOLVED The present battle will determine whether Pan-American Airways will continue to exert monopolistic control of America’s transoceanic aviation, says the Washington correspondent of The New York Daily News. The Maritime Commission will ask Congress for power to subsidize the development of competing air lines, thus breaking up the Pan-American Airways monopoly. It is understood that Colonel C. A. Lindbergh, Pan-American’s technical adviser, will throw his weight and great influence on behalf of the company.

The Army and Navy are said to be behind the movement against PanAmerican Airways, as they believe that competition and rivalry among the many American lines concerned in ocean flying will bring about a greater advance in American military aviation. Furthermore, they object to the granting of American port rights to foreign lines under negotiations which are carried out not by the United States Government, but by the Pan-American company’s private agents in order to secure reciprocal rights for PanAmerican interests in foreign ports. Pan-American Airways has already received 60,000,000 dollars in subsidies in the last few years.