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ISLAND AIR FERRIES, INC.
MacArthur Airport
Bohemia, L.I.

January 11th, 1952

[[underline]] TO ALL HOLDERS OF I.A.F. CLASS A AND COMMON STOCK [[/underline]]:

This letter is written to urge you to attend the adjourned meeting of our stockholders, at 8:00 P.M. Saturday, the 26th of January, 1952, at the Terminal Building, MacArthur Airport. This meeting is a continuance of the meeting held on the 10th of January in accordance with the NOTICE TO STOCKHOLDERS sent to you December 26th, 1952; the adjournment and continuance became necessary when only 25,104 out of the 54,693 outstanding shares where represented at the meeting, in person and by Proxy. This second meeting is an ADDITIONAL EXPENSE to the Corporation.

If you cannot attend this meeting, will you please vote on the re-capitalization proposition by use of the Proxy, so that the Corporation's Management can proceed in accordance with your wishes? A two-thirds majority is required for the approval of the proposition, which I believe to be to the best interest of your Corporation. 

While I cannot, because of limited space herein, go into all the details as to why I feel this way, you should remind yourself that I.A.F. owns a franchise of considerable value, for its Route 89, awarded by the Civil Aeronautics Board in 1948. This Route 89 serves the fastest growing area in the United States, and we have all spent much time and money in the exploration of its possibilities.

This franchise is before the CAB now, for renewal for a term of five years from August 18, 1951; CAB extended the term so that we would retain possession during renewal proceedings. It costs money to handle these proceedings, although we have been able to get top-notch legal help for little money, plus a nominal block of stock. We also need some funds with which to purchase and operate a larger type of airfreighter, since we have lost important business, almost daily, through being unable to haul more than 1-1/2 tons in our present aircraft.

The Company needs new capital to expand, on a sensible and conservative basis, those activities which are, have been, or indicate that they will be profit-producing. Air freight business over Route 89 has expanded greatly in the past year and we are hauling, on a regular repeated basis, for nearly every well known business on the Island. This is a most healthy situation; the promise it holds forth, and the expansion of activity at this airport requires the purchase of additional equipment so that it may be properly and profitably handled.

If you have not already done so, will you please send us your proxy?

Sincerely yours,

Frederick H. Smith
President