Viewing page 4 of 28

This transcription has been completed. Contact us with corrections.

UNITED STATES OF AMERICA
CIVIL AERONAUTICS BOARD
WASHINGTON, D.C.

In the Matter of the Investigation of the practices and Conduct of Colonial Airlines, Inc. and Certain of its Officers.

Docket No. 4907

BILL OF PARTICULARS

TO: Colonial Airlines, Inc.
Sigmund Janas, Sr.
A.M. Hudson

The following bill of particulars is furnished to you pursuant to paragraph 2 of the attached order, Serial No. E-5290, entered by the Board in the captioned proceeding on April 13, 1951.

On the basis of the informal inquiry, records on file with the Board, and other information available to the Board and referred to in said order, it appears that the following facts and circumstances may be shown to exist with respect to the practices and conduct of Colonial Airlines, Inc. (Colonial) and several of its officers, particularly Sigmund Janas, St. (Janas) its President, and A.M. Hudson (Hudson) one of its Vice-Presidents:

1. The entire management and all the operations and activities of Colonial are, and have been since 1938, under the complete domination, control and direction of its President, Janas.

2. Beginning in 1946 and continuing to date, Colonial has furnished free and reduced rate transportation to persons not authorized to receive the same by means of certain practices and devices including but not limited to the following:

a. The cost of free tickets issued to persons not authorized to receive them was charged to the expense accounts of certain officers of Colonial, particularly the vice-president, Hudson, and vouchers to such accounts.

b. Free tickets were distributed to unauthorized persons through advertising public relations agencies and the cost thereof was charged as additional advertising and public relations expenses on the basis of unsupported vouchers submitted by such agencies.