Show I I TilE THE DAILY NEW YORK ORK r Fina Financial tt Whirligig Written for o Th The Telegram By JAMES McMULLIN NEW YORK The contrast in the attitudes of the three major aviation groups toward the cancellation of airmail contracts and subsequent subsequent quent moves to restore them is significant to insiders American Airways Aviation corporation corporation- Cord says nothing and saws wood Instead of moaning about losses it has quietly increased increased in- in creased its headquarters staff as if to prepare for bigger things ahead Transcontinental tal and Western Air North American General Aviation Motors consistently complains to hi high h heaven about the injustice of it all mobilizes Lindbergh and threatens to sue the govern govern- overn- overn ment and takes no steps to comply with Postmaster Postmaster Post Post- master General Farleys Farley's terms for temporary airmail bidders United Aircraft follows a middle course Mum as an oyster until recently although expressing ex- ex pressing warm disapproval United privately now moves to dissolve itself into transport and manufacturing units as per Farleys Farley's It also indulges in a slight lament lament- more in sorrow than in anger about the heavy losses incurred since the cancellation Why It IL Is Thus Heres Here's the why of these curious differences American Airways keeps quiet E. E L. L Cord still cherishes hope of bitin biting off richer territory than he had before Insiders say the hope amounted to assurance a few weeks ago but since since- then has waned a bit Probably the company which American Airways it has to change its name to fulfill Farleys Farley's requirements requirements re- re win will improve its position somewhat somewhat some some- what in the reshuffle but not too Obvious favoritism to Cord would be likely to backfire severely You have to look a little deeper to find the causes of United's docility There are five 1 The National City influence The banks bank's holdings of United by no means amount even evento evento to working control but there is a certain community community com com- of interest And bear in mind that National City continues to play the new deal game straight place and show 2 The comparative ease of the unscrambling bling process The corporate structure is sim- sim pie Each stockholder in United Aircraft will get a proportionate share in in all three of the new United members Air Lines Boeing Aircraft Aircraft Air Air- craft Pratt Whitney The holding company will bite the dust but nobody will be hurt Also United Air Lines is eligible to bid for a anew anew new contract under its own name The old franchises were held in the names of the sub sub- National Boeing Varney and Pacific United covers a rich territory and doesn't want to take a chance on losing it by default 4 There isn't even n a problem of taking care of officers and directors who must be eased out because of in the collu sion Sian conference They can simply be transferred transferred trans trans- to the manufacturing companies Theres There's nothing in Mr Farleys Farley's ukase to prevent that 5 Inside estimates indicate that United can make money even if it is paid only the value of the stamps for the mail actually carried The Gloom Painted In United's stress on its losses since tion is taken with salt by local experts It was advisable to paint a gloomy picture to forestall objections from whose stockholders assent is is necessary to the Th Theres There's res re's no truly dominating faction in the company and the directors dont don't want a proxy battle on their hands T. T W. W As A.'s situation is the reverse of United's in two vital respects Its corporate structure is infinitely more complicated and cant can't be unraveled without months of higher mathematics certainly not in time to qualify for n a Farley bid Also it cannot transfer its collusion officers to manufacturing units because because be- be cause cause its manufacturing business is virtually null md and void So these boys will lose theIr jobs entirely unless that condition of Parleys Parley's edict or of the Black bill bilI is re- re yoked Insiders say these points explain the unremitting unremitting stream of hostile publicity from T. T V. N A. A headquarters The company wIil be left far behind its competitors unless the tion status statu is restored Legislative Outlook New York aviation interests dont don't take the Davis Austin substitute for the Black Black- McKellar bill very seriously The most they hope is that it will have a nuisance value leading leading lead lead- ing to sweeping modification of the Democratic proposal But the airplane boys do count on the house to soften the senates senate's measure in their favor Their the ground d reports intense hostility among many house Democrats to anything favored by Farley because of patronage patronage pat pat- ar arguments Ask yourself whether the aviation folks will do anything in private to encourage this lamentable friction Copyright McClure Newspaper |