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122      HELICOPTER AIR SERVICE PROGRAM

He concludes by saying:

The three pioneers now are on the brink of moving into an era of profitable operation. There is an even greater public need for their success now than when the experiment was begun. To push them off the cliff prematurely, possibly into bankruptcy, would be a national disgrace. We urge the U.S. Congress to prevent such an ill-advised act for the future benefit of both U.S. and world air transportation.

As I said, this is by Joseph S. Murphy, an editorial to appear in the March 1965 issue of Air Transport World magazine.

I would appreciate also inserting in the record a letter from Arthur Groos, director of our County's Trade and Industrial Development Bureau, in which he states the county of San Bernardino not only is in favor of the continuance of helicopter service but it is emphatically in favor of increased service as well as the expansion of communities served.

It has been my hope, Mr. Chairman, that the service can shortly be expanded to include passenger service to our great city of Redlands and our great mountain resort area. Our Aerospace and Space Technology Laboratories people who are involved with the Ballistic Systems Division require this service.

May I also include a letter from the Honorable Donald G. Mauldin, mayor of the city of San Bernardino. Our mayor indicates that with the population of 130,000 people we are fully entitled to the service of a permanently certified air carrier and include in the record a resolution by the Board of Supervisors of Riverside County confirming their support of my proposal in which I am also joined by my colleague, the Honorable John V. Tunney.

(The documents follow:)

[Editorial from the Air Transport World, March 1965]

NOW ABOUT THIS HELICOPTER SUBSIDY

(By Joseph S. Murphy)

The administration of President Lyndon B. Johnson in the United States has come up with a startling conclusion on the subject of helicopter subsidy. In brief, it is that the continued payment of Federal subsidies to support passenger helicopter operations is not in the national public interest.

Nothing could be further from the truth. We can't imagine where President Johnson is getting is advice, but it's bad, real bad. And the indication that this decision was made after a "critical evaluation" makes the situation more alarming.

Let's look at the situation objectively and hope the U.S. Congress will look at it with equal objectivity and force the continued Federal support of these operations over a reasonable subsidy phaseout program.

Point No. 1: The underlying cause of all criticisms of helicopter subsidy, first by Representative Albert Thomas in appropriations hearings and now by the White House, is the belief that helicopter services in New York, Chicago, and Los Angeles have no national significance.

This conclusion in itself is erroneous. In fact, the inhabitants of these three cities rarely, if ever, use these services. The prime beneficiaries are United States and oversea businessmen seeking an answer to a national U.S. problem - the urban transportation bottleneck.

Point No. 2: The helicopter operations in these cities have important national public benefits that are being completely overlooked by President Johnson and his budgeteers. The amazing thing is that this escapes him personally when the very safety and reliability of his own helicopter transportation system has been advanced immeasurably by these three helicopter airlines. Furthermore, the accelerated debugging of newer turbine helicopters has saved the United States and other free world military establishments hundreds of millions of dollars.

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