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ONE THIRTY-FIVE EAST FORTY-SECOND STREET NEW YORK 17, N.Y. SUITE 5800 January 7, 1955 PERSONAL Dear Tubby: When Pan American stock went beyond 20, I would have liked to have been able to sell a portion of my holdings, but, unfortunately, I am completely handcuffed by various restrictions. First, there was in progress a conference on the Pacific Rate Case during which, as an officer of the Corporation, I am not permitted to trade any Pan American stock. Then, if I could have sold, it would have prevented my ever exercising the option which I was given over a year ago to purchase Pan American stock at a very low price on account of the SEC regulations which forbid officers from engaging in trading within six months from the date of a security transaction concerning their company. I believe that for a while Pan American World Airways has hit the top. It is not unlikely that it will maintain its market price somewhere around the present levels (it closed yesterday at 18 1/4). Our earnings for 1954 have been very good and in spite of all the reductions which will be imposed on us by the CAB for our future transactions, we are all very confident that we can hold the line and continue to make good money for our stockholders and will, at least, maintain the present level of dividends indefinitely. The public is probably misled by the optimism of the brokers, but there is no doubt in my mind that in the long pull, Pan American stock is still a good investment even though, as I mentioned, it would have been prudent of me to lighten my very large holdings at the recent high price of 20 or more. I am telling you all this to keep you advised as to what is going on up here, but you know that I am in no position to advise you what to do with your own stock. In this mornings mail, I again received an optimistic note from one of the Brokerage Houses in New York, Francis I. DuPont and Co., who are very much interested in our stock, which I am enclosing. None of us here are frightened by the recent violent downward adjustment of the stock market, which hurt the "blue chips" more than others, for it was obvious that a correction was overdue. Carmen will be in Mexico before the end of the month and she is looking forward to seeing Raquel and you. Best love to both of you. Sincerely, Erwin Belluder Erwin Mr. E.R. Silliman General Manager Cia Mexicana de Aviacion, S.A. Balderas 36 Mexico, D.F.