BY any railroad yardstick, Eastern

Air Lines is big business. In 1960, for example, EAL's 228 piston, prop-jet, and pure-jet planes serviced 18,734 routemiles touching 128 airports in 27 states, mainly east of the Mississippi, as well as in Bermuda, Canada, Mexico, and Puerto Rico. EAL traces its origins to the award of a Newark-Atlanta mail route in 1928, now originates more than 8 million passengers a year, grossed 293.8 million dollars in operating revenues in 1960, and lists its investment at approximately 325 million dollars (of which aircraft accounts for two-thirds). The trunk air carrier grosses as much a year as Missouri Pacific and more than GN or IC or L&N or N&W. Very much the lengthened shadow of its chairman, Captain Eddie Rickenbacker, Eastern is regarded in the airline trade as a sharp operator - a company which knows how to apply the old airline formula for success of "a face in every window and a fanny in every seat." EAL hasn't had a direct or mail-pay subsidy since 1938, enjoyed good profits through 1955, then began to slip, went into the red in 1960, and is still there. Eastern decided that merger with American (which would form the nation's biggest airline) was one answer to its dilemma, and the case is before the Civil Aeronautics Board, whose examiner has advised against the marriage. To worsen matters, EAL was hit by a flight engineers' strike June 23 which resulted in grounding of all its flights and layoffs of most of its 8,000 employees.

Now Eastern has applied to the C.A.B. or a subsidy of 23.9 million dollars he difference between its anticipated evenues in 1962 and a 9 per cent return on its investment base. Eastern blames Government (i.e., the C.A.B.) for its money troubles — and with some justificaion. EAL cites excessive competition notably the 1956 award of a New YorkMiami run to Northeast, which resulted roughly in three lines losing money where two had made money); inadequate fares; the obligation to supply unprofitable local services; the Board's deay in approving a mutual aid plan whereby other lines would pay a struck arrier a quarter of its average gross; and ertain burdensome in-flight service requirements. And a series of "irresponible strikes."

If there had been no Government inervention in Eastern's affairs, of course, he line would not exist, for without hose airways and airports underwritten y Federal and/or local tax monies even 0-seat piston Martin 404's, EAL's smallst equipment, could never get off the round. Again, in virtually every deail Eastern's contemporary dilemma uplicates that of the New Haven, which was forced under by excessive competi

tion (including EAL's no-reservation, onthe-hour Boston-New York "air buses"); unprofitable but obligatory services (notably, 28,000 daily New York commuters); full-crew laws; and all the rest. Only New Haven was offered not subsidy but loans; and these monies were tabbed for expenses, not toward a return on investment. And finally the stockholders who had built, maintained, and paid taxes on NH's right of way lost control altogether - to court-appointed trustees.

Eastern's subsidy plea, which some figured as an inducement for quick approval of its contested merger with American, got short shrift from the New York Times: "This is the worst way to 'solve' the problems of the airlines or any other industry." It will receive, and deserve, even less sympathy from those who recall George Alpert's cry in the wilderness and his hat-in-hand treks to Washington just before he left the president's office of the New Haven to the trustees three.

Harriman to the contrary

Turn-of-the-century railroad master Edward H. Harriman so unified his jointly held Southern Pacific and Union Pacific that both bought blocks of the same standardized engines and cars. Many of the "Harriman" Moguls and 2-6-0's, Mikes and Pacifics, endured until dieselization, and his turtle-roof head-end equipment is still lugging mail and express for both systems. And though the small, mustached operator himself died September 9, 1909, his ambitions have not been forgotten. Merger exponent John W. Barriger declared last July that splicing SP and UP would be "the most natural merger in American railroading," with economic benefits exceeding even those expected of NYC + PRR. But if UP (whose chairman is E. H.'s son E. Roland Harriman) agreed, it did not say so. And as for SP, its only courting to date (aside from its bid to control parallel Western Pacific) is with Rock Island. The two roads interchange tonnage and the extra-fare Chicago-L.A. Golden State at Tucumcari, N. Mex. In the event of an end-to-end merger, the two would create a system of approximately 22,000 routemiles which, along with Great Northern Pacific & Burlington Lines, would surely be one of the ribs of a rail-merged West. Barriger thinks the region will ultimately be served by two to four lines. At this stage, though, an RI-SP hookup is "merely a possibility," to quote one of the participants.

Perhaps more than a mere possibility is a merger destiny for 2747-mile Gulf, Mobile & Ohio. Trouble is, GM&O all of a sudden has two suitors: Chicago & North Western, which has purchased 13.3 per cent of GM&O outstanding comContinued on page 12

MAY we suggest that 1962 is an interesting time to be alive if you're inclined toward locomotives. On the one hand we are witnessing a mighty effort to extract more and more power out of that traditional American workhorse - the singleengine, 4-axle, 4-motor diesel freight unit. It began life in 1939 with a rating of 1350 h.p. and is marketed today at 2500 h.p. and, as the report on pages 18-24 suggests, is far from its maximum development. On the other hand we have the diesel-hydraulic which, based on Rio Grande and Espee reaction to date, bids fair to get out of the experimental era intact. Then there's the recurrent argument for catenary, UP's coal-fired turbine, the atom, and etc., etc.!

Kalmbach Publishing Co. 1962. Title reg. Pat. Off. Published monthly by Kalmbach Publishing Co., 1027 N. 7th St., Milwaukee 3, Wis., U.S.A. (414) BR 2-2060. Western Union and cable address: KALPUB Milwaukee. A. C. Kalmbach. President. Joseph C. O'Hearn. General Sales Manager. Ward Zimmer, Advertising Manager. TRAINS assumes no responsibility for the safe return of unsolicited editorial material. Acceptable photographs are held in files and are paid for upon publication. Second-class postage paid at Milwaukee, Wis. Printed in U.S.A. YEARLY SUBSCRIPTION, $6: 2 YEARS. $11; 3 YEARS, $15. For life, $60 Outside the Americas, 50 cents a year additional (for life, $5 additional).

BU

MEMBER