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MR. HANRAHAN: It is my hope they will not.MR. SILVER: It is merely an opinion?

MR. HANRAHAN: That is right.

MR. SILVER: One other question I would like to ask you. Since 1952 do you feel that the progress or the history of the company has shown any signs or great improvement and of becoming a much more healthy airline?

MR. HANRAHAN: I certainly do.

MR. SILVER: And that has been in spite of the fact that we have been conscious of a merger as probably our best destiny rather than any progressive buying of new equipment or things of that nature?

MR. HANRAHAN: No, we have operated this is a going concern without any thought of merger.

MR. SILVER: If that were the case, sir, may I ask why we haven't had any new equipment since 1952?

MR. HANRAHAN: We have been trying to get it.

MR. SILVER: Since 1952 there has never been any equipment offered to Colonial Airlines?

MR. HANRAHAN: That we could buy.

MR. SILVER: Not that we could buy financially or felt we should buy?

MR. HANRAHAN: Financially.

MR. SILVER: One other question I would like to ask you, and that is--

MR. HANRAHAN: You will recall we spent six hundred and some odd thousand dollars in '53 for a DC-4 after we had signed a merger agreement, to show you how we were keeping on running it as an operating line and not a line on the auction block.

MR. SILVER: I was not talking about non-competitive equipment. I was talking about Dc-6B equipment.

MR. HANRAHAN: We haven't in my time ever been in a position.

MR. SILVER: Have we ever made a study of DC-6B equipment?

MR. HANRAHAN: We certainly have.

MR. SILVER: Has any been available to us to purchase if we had the money to purchase it?

MR. HANRAHAN: I know of none that was off red to us to purchase. Is that right, Mr. Dykes? There has been some offered to us to lease.

MR. SILVER: But none to purchase?

MR. HANRAHAN: I may stand corrected on that.

THE CHAIRMAN: I can't think of any.

MR. HANRAHAN: I know of none.

MR. BARNITT: I am Samuel Barnitt, Jr., representing my own stock. I have a question to ask. If this Eastern agreement doesn't go through the Civil Aeronautics Board by the January date, they can rescind it of it is null and void, is that correct?

MR. HANRAHAN. We have had to get an extension of it from you people.

MR. BARNITT: The last time we were going to get two shares of stock for every three shares of Colonial. Now, on this agreement, we are getting two for one. Then, if this agreement doesn't go through, they may even offer us le ss than we are getting now, is that correct?

MR. HANRAHAN: I am not that good at telling you what they could do.

MR. BARNITT: The possibilities are there that they don't think it is worth as much today to them as it was two years or three years ago.

MR. HANRAHAN: That doesn't follow at all. They are bidding much higher a=for it today. As a stockholder you are getting more for it than you were under the two for three, or three for two.

MR. BARNITT: In cash value?

MR. HANRAHAN: Yes, sir.

MR. BARNITT: As market value. But from voting power, less.

MR. HANRAHAN: That is right.

MR. BARNITT: Is Eastern going to give us a push along if there is a delay, do you feel, that they might let of lease equipment to keep in the competitive field and keep our standing so that we are not going downhill?

MR. HANRAHAN: I would think so. When the vote is recorded here today--and their meeting is next week, and I can't think there is anyone who has any doubt as to how the vote will come out at the Eastern meeting--they want to take over as health [[?]] as they can don't they?

MR. HANRAHAN: That is right, that is what I would say/ As long as the vote has been passed, it would be to their advantage, but I was wondering if there was anything definite.

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