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39-01 Main Street
Flushing, New York
January 31, 1950

Mr. Karl J. Ulrich
Employment Agreement Dept.
Air Line Pilots Association
3145 West 63rd Street
Chicago 29

Dear Karl:

I would like to sum up some of my thoughts with regards to the interpretation of Section 17 of our Agreement, as I expressed them to you in our telephone conversation yesterday.

Section 17 of our contract, as we all know, is the Seniority Section.  Section 27 is the "Filling of Vacancy" part, or as it is commonly known, the "Bidding Section".  The "Agreement" rightfully enough is predicated on an expanding operation.  However, through experience we find that the industry does undergo periods when the operation shrinks.  Perhaps at this time we ought to consider an addition to Section #25 of our contract to take care of this "shrinking" and the inevitable furloughing of pilots that takes place with the curtailment of schedules.

The proposal of our draft could be considered as such as addition and the proposal then would become a supplement.  This supplement should be a change of our present Section 25.  Our present proposal then would be in the beginning followed by our present Section 25 paragraphs a, b, and c unchanged but renumbered.  Of course, this entire section would be subject to 17 of the "Agreement" in just the same consistent way as our present Section 27 paragraph "e" states.  By such a method Section 27 of our contract will now clearly show how a First Pilot or Copilot (Transocean) moves up.  Section 25 of our contracts will show how, through a reduction in force, the same pilots move back according to seniority as spelled out in Section 17.