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any dividend record, and I just tell you from my experience that you either go out and issue more stock and have it sold by an investment banker (which would cost you a lot of money and I don't know how you would raise it because you would dilute the holdings of the present stockholders)--that is one route to go, to raise money to buy equipment.

However, as Mr. Dykes has said, when would you get the equipment? The market has been very, very lean for used quipment and you couldn't get delivery of new equipment for some time to come. And where are you in that period of stagnation?

MR. SILVER: I might ask the same question: Where will we be one your from now or longer if the merger is not approved? We take the record back to 1952 and we examine quite carefully what has happened. I certainly make no pretense at forecasting, and I don't think any of us can, on what will happen. However, we know what has happened in the past. We know what could happen in the future.

As far as equipment, money and so forth is concerned, certainly that is an issue and a very real issue. However, I think that the opinion can be voiced on both sides on when would be the proper time to determine another course of action, and I just wanted to bring out very clearly in my mind that in 1952 when the Civil Aeronautics Board did give us quite a definite mandate, you might call it, that it was not only to just merge, but to take other suitable means.

Now, since 1952 have we taken any other means other than that of a sale of assets or merger?

MR. HANRAHAN: We explored everything. We tried to sell back routes.

MR. SILVER: Have we tried to completely refinance with complete new money, stock issuance and so forth?

MR. HANRAHAN: We have explored that

MR. SILVER: Have we actually tried to do it? Have we gone to the next stop beyond the preliminary exploratory stages?

MR. HANARAHAN: Of making an offer of stock? The answer is no, we have not offered stock. We would have to have a meeting of you stockholders to approve it.

MR. SILVER: Had you gone to the next stage toward offering it?

MR. HANARAHAN: No; and, as I say, you can explore it, but then your next move is to get your approval to have us do it. We have not done that, as you know, but every time we have a approved before you and other stockholders, we have received a mandate to merge.

MR. SILVER: Now, there is no other question I would like to ask.

MR. HANARAHAN: And in September, 1952 93% of the vote was for a merger with Eastern at a special meeting in this room. And again in April, 1953, when we asked for an extension of that agreement because the year has run out, we received an overwhelming mandate. We couldn't certainly anticipate that the thinking had changed, that you did not want this management to sell its assets or merge, or let it be acquired by another line.

I want to point up your first question. I agree with you; I am not clairvoyant either. I can't tell how long a hearing would take and where we would be a year from today. But I can say this, that it is an entirely different situation confronting Colonial Airlines today under the merger agreement with Eastern than it was in 1952. In that National was a competitive bidder against Eastern. Today they are not. They did not submit any bid. We were in receipt of only one bid and all of the issues in the '52 case have been passed on by the Civil Aeronautics Board by a vote of four to nothing.

It was turned down by the President of the United States on a very narrow technical ground, namely, that directors and officers of Eastern had acquired stock in Colonial and therefore had the power to control us--not that they did control us, but they had the power to control us. That very narrow issue has been separately heard, with hearings that took place last November and December.

The Trial Examiner of the Civil Aeronautics Board has rendered a decision in which he found that Eastern is not in control of Colonial and therefore would be free to bid and acquire its assets, and that matter is now before the Civil Aeronautics Board fully argued and fully submitted. We can anticipate a decision from day to day on that. That is wishful thinking on my part that the hearings would be shorter.

I can't guarantee, but you do follow me that the issues are very narrow now. They are not a long spread out issue: is it in the public interest, and is it a monopoly. They have all passed on that very issue.

MR. SILVER: As far as that issue is concerned, in other words, you say that you do not believe that we will go through the full hearings again?     (7)