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very closely related to each other, the quality of personnel in the industry is bound to be unfavorably affected.

III.  The Retirement Problem is One for the Industry--Employers and Pilots--to Solve.

I believe that the problem of retirement is one which in large measure must be worked out by the air transport industry--by the employers and the pilots.  But I am bringing the matter to the attention of the President's Air Policy Board because of my conviction that the employers will not be inclined to adopt the needed measures unless there is general public recognition of our problem which will in large measure force the industry to act.

By saying that the problem is one for the industry itself to solve, I mean to say that I do not favor the adoption measures by which pilots' security would be achieved at the expense of the general public.  The achievement of security in this area requires, among other things, the provision of incomes for pilots who have retired.  The provision of those incomes requires reserves.  I do not believe that those reserves ought to be raised out of general revenues.  Rather, it is my contention that the necessary funds can and should be raised by the joint action of the employers and the pilots.

It is my further contention that any contributions which an employer would make to a rational pilots retirement system would not be a net addition to his costs.  On the contrary, I believe that the greater degree of security which such a system would bring with it would make for such better conditions among pilots that there would be no additional costs to the air transport companies.

The members of the Board are doubtless familiar with the history of the railroad retirement system.  Beginning almost twenty years ago, there began to be a very acute retirement problem on the railroads,