![Transcription Center logo](/themes/custom/tc_theme/assets/image/logo.png)
This transcription has been completed. Contact us with corrections.
MR.SILVER: Would you consider this normal conditions? SECRETARY CAMERON: You moan to get an interchange on Colonial? Mr. SILVER: That is correct. SECRETARY CAMERON: I Think it would be just as difficult time-wise as a mo-gor. MR.SILVER: In other words, you consider this normal conditions as you made the point. SECRETARY CAMERON: Under the existing circumstances today. As of last summer when the conversations occured that lier. Hanrahan spoke of, when we tried to work out arrangements with National, at that time, no one else boring in a position to stop into the picture, it is probable that at that time an interchange might have been accomplished quite rapidly. At the present time, however, after the situation had changed with respect to the control matter or at least has been clarified in the opinion of management and in the opinion of at least the government representatives -- after that had been clarified then you have two lines back in thepictures. My solo point was this, that we as an airline do not have the business freedom to lease and to interchange and do things of that type that other businesses uregulated may do.There is an automatic hold-up until we got government approval. MR. SILVER: I would just like to ask one other question. I notice in referring to the agreement between Eastern and Colonial there is a very definite indication as fas as expenditures with regard to equipment and aircraft. I wonder during the discussions with Eastern on the contract, and I assume there were discussions, whether the point was raised on whether Eastern would put in writing to us as their counterpart of the agreement that they would lease us certain equipment for certain routes during certain times -- in other words, if that was brought up and turned down by Easter. Or was that not brought up? SECRETARY CAMERON: I don't believe anything of that iond was over dis-cussed. You want to remember no discussions were over held with Eastern without comparable discussions being hold with National, and while we wrote the contract it was written so as to fit other company. Actually the current contract is a substantial copy of the original Colonial -- National agreement, so that the same basic contract has been before the stockholders at various times. MR.SILVER: Correct, but was I was wondering is from the history of what has happened since 1952 -- I remember, I believe, that the 1952 contract with National said 1 million and it didn't tie it down to anything in as well as aircraft and then this one that we signed this time had a slight change, I believe, in that. I was wondering if that point had been raised, that they naturally were interested, and quite rightfully so, that we wouldn't spend certain moneys with-out their approval, especially as far as equipment was concerned. I just wonder if a discussion was entered into and if we were denied an equivalent on our side to protect our operation as fas as equipment is concerned. SECRETARY CAMERON: Your question falls into two parts. The first thing is that the original National agreement was liboralized in Colonial's direction. We were a little better off with the Eastern agreement following it, and this one has some additional things in it where we granted ourselves additional freedom. But we didn't want to go so far to have Eastern and National walk away from not making any at all. MR. SILVER: I was interested in following that one paragraph which to me is very vital in our profit or loss statement at the end of the year. SECRETARY CAMERON: We were faced, I would say, with a businessman's judg-ment on how far we could go to retain full freedom and offering something reasonably attractive to a purchaser that we weren't free to talk with completely, because we were trying to deal with two people and obviously we had to exercise judgment. We went as far as we thought we could get away with, in answer to your question, and I do not know of any lie-in requiring the purchaser to lease equipment. I don't believe that was discussed. THE CHAIRMAN: To the best of my knowledge, it never was discussed. MR. BARNITT: I just want to ask one other question. Our competitor BOAC is running short of equipment in the last six month or so, and they come into the United States and go to Flying Tigers and are able to base DC=6s to compete against us. Now they turned around the first of this month and went to Seaboard and Western Airlines and renteda super constellation to operate daily right alongside of us and are giving us terrific competition. Here is a foreign airline coming into the United States and they can pick up and lease equipment. Why can't we? That is the answer that I haven't been able to put through my mind. Was that over taken up with the Board, Mr. Dykes? (15)