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Otherwise, the Inspectors should be instructed to pick up the ballots and tally the same.
(The ballots were distributed.)
MR. SOLOMON: Mr. Chairman, I w ould like to submit to the Secretary of the meeting (I don't want to waste the time of the meeting) the names of the people whose ballots have been received, as a resul of the early vote not to keep the polls open, who have not had an opportunity to present their proxies to the meeting.
MR. HANRAHAN: It can duly filed.
THE CHAIRMAN: Have all the ballots been turned in to the Inspectors
(The ballots were collected.)
THE CHAIRMAN: If so, we will take a recess while the tally is being made.
(A short recess was here taken.)
THE CHAIRMAN: The Inspectors inform us it will take about another half hour to tally that vote, so I think, in the interest of expediting the meeting, that we can open the meeting for any further discussion on any subject that anybody wants to discuss.
MR. SKOGLUND: My name is Palmer Skoglund. I would like to ask a question.
What is our position at the moment as to the larger ships for flying the Bermuda run? Do we have any constellations?
THE CHAIRMAN: We don't have any yet. However, you probably know in the past two seasons we have leased constellations from Eastern Airlines and we made an attempt again this tear to lease the airplane, and it just happened it was at a time when they were very busy. Their traffic was i creasing and they couldn't let us have the airplane the first of April when we wanted it.
However, they haven't actually closed the door because the last time I talked to them about it there was some indication that we might possibly get one a little later on. As far as any other aircraft is concerned, we have scoured the market for them and there are none available within a reasonable length of time.
MR SKOGLUND: How many would be required to do an adequate job? What I am getting at is how are we affected by not having them?
THE CHAIRMAN: Well, of course, when we can't meet competition, particularly on the Bermuda run, our traffic is not as high as it should be. However, with our present equipment, our traffic has been holding up pretty well this month, better than I expected it would.
MR. SKOGLUND: I would like to ask one further question. If the ships were available, if the planes wer available of that type, what would be our capital outlay?
THE CHAIRMAN: You mean to purchase them?
MR. SKOGLUND: Yes; to do an adequate job, how many would be required and what would be the capital outlay for a plane?
THE CHAIRMAN: We have made a study and to meet the competition effectively it would take a tot l of three airplanes on a basis that TCA are putting a new type of equipment onthe New York--Montreal route some time this summer. Just when I don't know. We would need a minimum of three airplanes. The capital outlay would be somewhere in the neighborhood of $4 million.
What I am thinking about now is what would be required to buy new airplanes. Of course in used airplanes the market fluctuates and it just happens at this time it is pretty high. You can buy a new DC-6 cheaper from the factory than you can buy one used, but if you buy a new one from the factory you have got eighteen months to two years delivery problem.
MR. SKOGLUND: Eastern has three that I presume they can put on these runs that we are talking about.
THE CHAIRMAN: Eastern has some new DC-7s coming out with delivery this summer--I believe in July. They have a total of twenty new DC-7s. They won't get them all this year, but eight or ten this year.
MR. SKOGLUND: If the merger is effected, shouldn't that materially affect the revenues, increasing the revenue?
THE CHAIRMAN: Oh, yes, there is no doubt that m re modern equipment would increase the revenue.
MR. HORWITZ: Mr. Dykes, can we get the names of the three directors who voted against the sale?
MR. HAMRAHAN: I don't mean to press you, Mr. Horwitz, but I don't see how it aids any discussion here. It is up to the individual directors themselves if they want to disclose what their position was, but it is immaterial whether it was seven to one or six to one or five to two. In our philosophy of government, it is democratic that a majority binds the minort .
MR. HORWITZ: I could also think, Mr. Hanra an, of no better demonstration than a complete disclosure and I, on the other hand, can think of no valid reason --
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Transcription Notes:
Typos are reflected in the original document.