Slipstream: the autobiography of an air craftsmanWilson, Eugene E.
History
Slipstream: the autobiography of an air craftsman
Wilson, Eugene E.
Aircraft industry -- United States -- Biography; United States. Navy -- Aviation; Wilson, Eugene E., 1887-1974
However, the witness did not waste further time on this alternative
but, acting on the assumption that the doctrine of regulating the
airlines as a public utility would be preserved, went on to develop
his own case with all the unique persuasiveness that had helped
him pioneer Pan American in one of the most impressive displays of
self-reliance, individual initiative, and private enterprise of
modern times. His discussion led up naturally to the merger of Pan
American with American Overseas Airlines which he and “C.R.” had
earlier submitted to the Civil Aeronautics Board. In justifying this,
Juan expounded his well-known thesis of the “chosen instrument”
advocating a government policy of maintaining one American-flag
system—Pan American Airways—in the international field, supported
with frank outright subsidies such as those paid under the Merchant
Marine Act of 1936. He justified his position by citing its benefits
to the stockholders of the company and argued that the higher wages
thus made available to American workmen employed in international
aviation would constitute a subsidy to them.
With the major certificated airlines mobilized solidly in support
of the “chosen instrument” policy, the Committee received a clear
statement of the opposing point of view from Raymond A. Norden,
president of Seaboard and Western Airlines, Inc. One of the
independents who had been characterized by Captain Eddie Rickenbacker
as “irregulars,” “latecomers,” “interlopers,” “pretenders,” and
so forth, Mr. Norden undertook to support Eddie’s contention that
the airlines were suffering from too much coddling. In perhaps the
outstanding statement to be made to the Committee, he put his finger
on the crux of the airline controversy.
“The Civil Aeronautics Act of 1938,” he said, “is unusual among
regulatory statutes in one very important respect. Other forms of
transportation have not customarily been subjected to comprehensive
regulation until the pattern of growth has been assured and until
the industry has become so highly developed competitively that
there is need for rigid controls and restraints in order to prevent
destructive practices.” Out of the background of the airplane story
to date, one might argue the other way around, namely that once the
rigid controls and restraints are imposed, the growth pattern becomes
stabilized. Mr. Norden went on to argue with persuasion:
“Aviation is relatively a new business. Air freight, as distinguished
from other forms of aviation business, is in its infancy. Yet the
entire aviation industry is hedged about with red tape, the like
of which has never been encountered in any other form of American
industry. One has merely to look at legal payments made by some of
the certificated carriers. TWA, for example, in 1948 alone, paid a
single law firm the sum of $340,000. My own small company spent in
excess of $50,000 in legal expense. Sometimes I feel as though I had
more lawyers than pilots.”
Public-domain text, read in full here on John Shaqi.
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