Viewing page 2 of 9

This transcription has been completed. Contact us with corrections.

CAPT. RICKENBACKER:-

1. Terms of Eastern's Offer:

"...On July 18, 1952 your Directors voted unanimously to accept our proposal to combine Colonial and Eastern Air Lines. That offer was for the purchase of Colonial's assets through an exchange of two shares of Eastern stock for each three shares of Colonial stock outstanding. In terms of current market prices that means that Eastern has offered to pay the equivalent of $16.50 a share for Colonial's stock.

"...Eastern was willing to pay that price, not alone for the physical assets of Colonial, but because we consider it a sound investment in the future possibilities which can be realized by perpetuating and developing to its maximum potential the public service aspects of our historically linked operations Against Eastern's bid of $16.50 a share, National Airlines bid the equivalent of $11.00 a share for the privilege of adding Colonial's pioneer system to its own routes.

2. Historical Relationships:

"...We, in Eastern, feel we are joining hands, not dollars. Colonial and Eastern pioneered air transportation in their adjoining areas. For more than twenty years they have, together developed an exchange-flow of traffic which, within the limits of a connecting service, has expanded the public benefits of air travel. We have always worked closely and harmoniously together- even at such close range as the hangar we share at LaGuardia. It is only natural that, sooner or later, Colonial Airlines and Eastern Air Lines would join forces.

3. Better Public Service Through Combination:

"...Joined together in one organization we can expand the benefits of that joint pioneering faster and more fully than either of us could do by ourself. Eastern connects with Colonial at more major points than does any other airline. We turn over traffic to Colonial at New York for upper New York, New England and for Montreal; at Washington for Ottawa; and at both New York and Washington for Bermuda. Through these same terminals, Eastern provides traffic originating on Colonial's routes with connecting services to Eastern seaboard cities, to Florida, Puerto Rico and the Gulf States, to the Great Lakes area and St. Louis and to the Southwest as far as San Antonio.

"...Through services, instead of connecting schedules, will greatly improve both the volume of service and the time-saving advantages to the travelling public over a great portion of the United States and Eastern Canada.