Medford mail tribune. (Medford, Or.) 1909-1989, July 27, 1960, Image 16

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Medford mail tribune., July 27, 1960, Image 16

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Newspaper Page TextWEDNESDAY. JULY 87. 1980 MEDFORD MAIL TRIBUNE. MEDFORD, ORE. .B 5 Airline Companies Described As 'Cautiously Optimistic' Br ROBERT J. BEBLINO Unllid Press International WlinlilliKlcin - llll'll - WhulH wronK wllh Iho nil linen? Arc thoy in bud nlf (Iniuu'liilly un ri'cciit itlorlt'H would Incllciilc? Iliivo llii-y ttvrr rxU'iidi-d tlic-mndves mnvlnii Into Iho Jpl-iiKr? The fiilliiwlnit ( itcn 1 1 oiik mid iimwiti, liimi'd mi Intnrvlews with li'iidhiK ulrllnc ccoiiinnlo CxpvrtH. lull whiilii wroiiK -mid wlint' rlKht with the nn tlon'i moot dynumlc Indtmlry: Q.-How bad oil ere the air lln.iT A.-Nut in broke, hlinknipl mid iKilhered na norno praal Dilate hitvtt hecil aiiylnK. It la true thvy luivo been ImvliiK trouble. They ot $24 million III llirt flr.it (iiiiirtt-r n( 1110(1, they lire riivply In hnck on purclmsi-a nf new Jel pnwercd pliuira mid aomo of them -audi na C'npltnl mid Norlhciisl - are up to their wlnif tlpa In red Ink. lilt thla la purely a ono dlmenaliiniil picture of gloom. 'Hie airlines iilao hnvc a pint mid future na well na u present, and the tbree illnien alonnl picture la nut nearly na durk for the following rca ona: It ia a fuel that In 1051), only one trunk or nuijiir air line operated lit n losa: North enal. Kven nfter cnnslilerluil Interest on debta, tnxea mid other spocliil llema, only threo cnrrlera loat money. Northeast, Cnpltnl mid Continental. The poor first quarter perform ance this year wns due par tially to the fnuleat weather in yeara. -The Airlines traditionally hnvc had toiiKh sledding in a period of major equipment purchases. They had It In the pnst-wnr years when they were ttuyiiiK new DCO'a nnd Constellations. They nre linv Inn It again In trying to fi nance Jcta and prop jeta that cost as much ns $11 million per plane. Actually, they have done n far better Job In plan ning their Jet financing than they did 111 the post-war new equipment splurge. -They hnve something going for them Hint some pesslmlsU aeem to hnve overlooked: The recent fare Incrense approved by the Civil Aeronnutlca Board (CAD) that la supposed to gunrantee them n fair rote of return on their mnmmnth Investment, provide atablllly and assure more flexibility In setting fares. Q.-How important Is that far boost? A.-All important. For one thing, the 10 per cent rate of Investment return the CAM has promised marks the first time the airlines have been considered as nn individual utility with Its own specific economic problems. In the pnsl, the government baa con cocted a rnte of investment return from factors which were applicable to such utili ties ns railroads nnd electric companies, but not necessnrlly to nlrllnes. To put It briefly nnd bluntly, the mnln reason the nlrllnes nre having fi nancial hendiiches is because their fnrc structure hns been too low for many yenrs. Q.-Do the airlines blame most of their current troubles on the CAB'a taking five years to decide on a rale In crease? A.-Tlicrc. Is aome Industry resentment nnd bitterness. But the majority of cnrrlcrs concede Hint it wasn't any overnight problem. The fac tors involved were enormous ly complicated, nnd It's often forgotten Hint the hcnrlngs which begun In 1053 were for Hie purpose, of determining whether (me dereases were needed. Another reason for the long deluy was the per sonnel turnover on the board Itself, Kveryllme now mem ber wns appointed, be had to go over the whole record again, And there hnve been three new members appointed In Iho last few months alone, Q.-Ar the JiiIb causing the airllnas' financial troubles? A.-Only In the sense that lliey nro so expensive to buy. Mill blaming the Industry's headaches on the Jets Is gross over simplification. Despite their slr.o mid complexity, the Jets are cheaper to fly nnd maintain thnn uny other nlr craft In history. Their engine reliability is fantastic, as much ns 20 limes superior to piston engines. TWA and American figure their Hoeing 7U7's hnve n seal-mile cost 40 per cent below DC7's nnd Constellations. Contln e n t a 1 claims It can make money on n Jet that's only hnlf-fiill. One survey showed that Jetliner In one day can gross more thnn $30,000 - enough to pny for crew salaries, fuel, amor 1 1 z n 1 1 o n, deprecintlon, ex penses of ground facilities, In surance nnd Interest with enough left over for n profit. Jet load factors (pcrcentngc of seals occupied) aren't ns high lis they wero In the first yeor us the airlines ndded more of the big planes to tliclr routes. Competition has been bitter on duplicated routes. But gen erally speaking, the Jets nre money-makers and they are getting people to fly who hnve never flown before. Q.-What about these so-called duplicated routes? Are they a major cause of red ink? A. - To a certnln extent. President C. li. Smith of American says bluntly there Is to much competition on many routes, nnd ninny In the Industry ngree. But the nlr llnes asked for the routes to begin with. Tliclr chief trouble Is not too much competition but simply not enough cus tomers. Nearly 33 million pas sengers flew on scheduled U.S. airlines last year, hut the statistic Is misleading. Actual ly only 12 million Individuals flew, with enough of them making sufficient flights to rench the 53 million totnl. Only n small portion of our population hns ever been in nn airliner - s significant item because It shows there is vest untnpped market which must be educated nnd sold on air trnvel. Q.-Is it true that on big diffi culty has ben th airlines' in ability to mak money . on short-haul routes serving cities with low traffic potential? A.-Very true. The airlines nro forced to serve ninny com munities which don't generate enough business to mnke such service profllnblc. There Is n decided trend to turn some of these routes over to the sub sidized locnl service nlrllnes. It is n much more pronounced trend, by the way, thnn merg er which many economists be lieve hns been "oversold" ns a cure - all to Die airlines troubles. ' O. - What are the airlines doing about getting rid of their old piston-engine planes as they acquire new Jet-powered equipment? A.-Thls is n king-sized bend nche, but not of the propor tions mnny airline economists fenrod. First, much of the older fleet hns been fully de precinted nnd amortized. Sec ond, such hnrd to - peddle planes ns the DC7 nnd Super- CuiiHlellulinn are lining con verted Into cargo plunes-und Iho nlrllnes actually nro short of equipment In this fast-grow ing category. Third, there Bit 1 1 Is a hefty market for the nlr llnes' twln-cnglna fleet (Con vulrs and Martins) among the local carriers operating DC3's. While It Is truo the latter are buying the smaller new prop Jets like the K-27, they can't afford 100 per cent conversion to Jet power lit present nnd still need DC3 replacements. Q,-Ar th airlines them slvt optimistic? A. -Cautiously optimistic Is Iho best way to put It. They realize the Jet age bus brought many problems, but for the reasons cited above they be lieve they can bo overcome. They arc encouraged by the fact thut traffic volume In 1050 Jumped by seven million passengers over 1058. And they point to the experience of ono nlrllne - United - ns proof that capable manage ment nnd solid planning can surmount serious obstacles. United didn't start Jet service until September, 1050. For most of thut year It pitted its DC7s against TWA'i and American's new Jetliners on the plush transcontinental routes. TWA and Amerlcnn mndo money, but so did Unit ed - nn achievement which surprised the entire Industry. David Fooie Now In Washington, D. C. David Louis Foote. rout 1, box 557 f'entml Pntnl ar rived in Washington, D.C.. re cently with about 100 other top teen-ngc lenders from nil over the U.S. to tnke part In uie nuth annual Boy's Notion program of the American Legion. Koote was elected Senator at the Oregon Boy's Suite ear lier this summer In Snlem. He will attend the ernmental study symposium ii'iy ii to juiy zg. Boy's Nation Is the largest youth program of Its kind. conepntmliiiu nn an - . 1 . . n . i uiHsinim study of the functions of the ivm-i.ii Kuvcrnmcni. wnnc In Washington thn ... ... nnK tors will conduct a simulated nnuonnt senate. They will ienrn "by doing" how Uie ma chinery of tho elected govern mental machinery functions. Squares Wear Socks, Says Teen-Age Panel Oxford, England n?PD - A panel of four teen-agers told an Oxford university study group Tuesday t h n t while "squares" nre "mostly adults who do not understand the lei-n-ngc way of life," there are also teen-ngc squares who wear socks until they nre 17." Make Your Yard less Work- More Fun WITH A Trimmer, Edger Does a eloan, fait job . . profes sional edging along walks and flower beds. A well groomed yard putt the fun In outdoor living . and It't easy with SI LEX! CHARGE IT! $0095 .1 Your Bait Buy In Trlmmer-Idgerl PUNTY OF FREE PARKING QUALITY AT LOWEST PRICES1 ncmeo i ia ii ii ii w IMCMWITf IN HOMIWAJtfSf 245 S. Central at 10rh Phone SP 2-5201 OSCAR WINNER DIES Hollywood IWD-Ccdric Gib bons, 65, former hend of the nrt department nt Metro-Gold. wyn-Mnycr nnd winner of 11 Aendcmy awards for art di rection, died Tuesday at his home in West wood after a Ions illness. Court Records DISTRICT COtTRT Dennis Troxel, Phoenix, driving under influence of liquor, $aoo. David H. Redmond, Improper miiuirr, o. Paul E. Scott, excessive over hnnafnt lond. SIS. W niter G. Garner, no beam Indi cator. S10. Warren C. SkogR, violation of batlc rule. $13. Ma I hew J. Wlnninsham, over heleht. SIS. Jtidsen D, Bailey, failure to dim I in mi. sia. Marvin M. Hurley, no operator'! license, sa. Charles J. Crlit, failure to atop, SIS. JameH R. Dnvii, driving while en- cumnorea, 7. nu. Edwin Andrew 01 sen, excessive overhnnslna load. 115. Ilnrry C, Webber, failure to atop, Bonnie H. Miller, Improper muf fler, sin. David W. Hunter, refusal to weigh toad. 913U: no oversize permit, overload. SHU. Raymond L. Rldder, no operator's ii een sc. a. Larry L. Younsr. overwldth. Sill A. C. Dyer, no vehicle license, IS, Harry L, Cole, parking on high wav. S15. Harold W. Chapman, overheight, SIS. Robert J. Zimmerman, violation of bas e rule. sin. Frank L. Moore Jr., Inadequate orn it es, 911). Alexander A. Smith, no born, $S, Robert J. Rohl. overwldth. SIS, Vivian R, Galloway, failure to sinn. $15. David H, Peterson, obstructed vision, 10. Ivan R. Myers, overload, $02. CIRCUIT COURT nettle Ford Salo vs. Roy H. Salo, divorce decree Bertha F.. Lea vt, Robert R. Lea, divorce decree. Janet Llddetl vs. G. T, Llddell, divorce decree. Lola E. Houser vs. George R, Homer, divorce decree. Doris Darleno Holcnmb va, Jacob E. Hn rnmh. divorce decree. Rachel Faye Standley vs. Charles u, aiamtiey, divorce decree, MAHIMAOH MCRNNK AI'l'UCATIONS Robin Ames Blnns, (107 Sherman st Medfnrd, and Nancy Jeanene tin n .mem Icy Robinson, route 1, box 2iia r.nirf inn. Edward J. Dlerauf Jr.. New Jer sey, and Verity Louise Day, Berke ley, uaiu. Car I Friincls McQuisg. Grants Pass, and Lois Rarlene Adams, 740 Park st., Asmand. Stanley Thomas Perisho. New- berg, and Mnrela Shlrlene Swisher, aiso oi newnerg. Aflllf.ANII MUNICIPAL COURT Joseph Aaron Roberts, excesslva venicio noise, urea, 4u, Stephen McNalr Cummins, violat ed basic rule, $20, William nichard Snyder, txcei ivj nolit, 120. 117 S. CENTRAL SP 3-7301 'OPEN 9:30 TO 5:30 FREE PARKING HO SPECIAL! Girls' new back-to-school cottons WARDS tow 2 .C50 tsftf "is 7 TO 14 Com to WARDS advance tale of school drenes! Exciting nw ttylet in wash 'n wear woven cotton plaids. Beautifully mode, detailed. Terrific values! SIZES for little girls, 3 to 6x J for 3.50 1 4 - SPECIAL! Men's western style blue denim saddle pants 2.48 Sanforized 13 oi. white-back denim is long wearing, won't shrink out of fit. Low woist, snug fitting seat and slim, tapered legs ore authen tically western. Fully re inforced. Bo rt a eked hip pockets. Sizes 28 to 34. Mas. arM 1 iT -t-'' - fvr,,v GIRLS' PLAYWEAR SETS O 47 Easy Cure Pdal Puih.n, Blouses. 7-14 GIRLS' SHORTS, BERMUDAS A7c Final C'earance. Res. to 1.98. 7-14 SUB-TEEN SHORTS, BERMUDAS Q7r Final Clearance. All 1.98. 2.98 GIRLS' SWIM SUITS 1 37 Reg. 1.98. 4 to 6 SUB-TEEN SWIM SUITS A OT Reg. $.98. 20 only GIRLS BLOUSES, CROP-TOPS QJC Reg. 1.98. Sites: 3 to 6. 7 to 14 5.98 MISSES' SKIRTS Rayons, Cottons, DacronCotton 2.98 MISSES' BLOUSES JO Cotton Ovarblouses or Tuck-ins MISSES' ORLON CARDIGANS Long Sleeves. Classic Style 7.98 MISSES' CARDIGANS CE Fur-Blend, wcollar. V Sleeves MISSES' BULKY KNITS CC Reg. 6.98, 7.98. 100 Orion 1 e il I i jpeillll (JUIUIU5BI Men's underwear SAVE V1 Children's 2.99 leather sandals Cool, supple, cushioned htel-to-toel Spun crepe soles. In white, colors. Sizes 8Vj-3. 2 One price salel Ladies' oval-taper shape luggage Melded Plywood Frame MQQ Fully pocketed train UBB case has mirror. 24' w ea. Pullman, 2 1 ' O'nite. rim 10 P IT. SPECIAL BUY! FEATHERSOFT COTTON TERRY BATH TOWELS Hard to believe but true this unheard low price at Wards. Absorbent towels in bright rose, light blue, fofqo turquoise, pink, buttercup " TTr yellow, light green, white. " pfm mi MsBSPhs SPECIAL! 3-piwe Fairway white steel bath outfit 88 5 steel tub, 19x17" china lavatory and reverse-trap toilet, less fittings. Terms. Save I no. us.se 99 Modem light fixtures in 3 attractive styles Each is a 1.98 valuel Choose 12" bent glass fixture, hall light or porch lantern. SALE! 6.98 Lo Lustre finest -coat house paint 1 22 1 -coat coverage saves time,money,work.Dries in Vi usual time. Resists rust, stains, mildew. 5 AUON I liV LIGHTWEIGHT PLASTIC HOSE S0-ft.; 716 in. SALE 1188 U SALE! REG. 39.95 BOYS', GIRLS' TWIN-BAR BIKES New twin-bar strength. Frames ore welded AQQ and bonderized. Red JX for boys, blue for girls. SPECIAL! BEDSPREADS O for A 88 Corduroy Chenille, Full or Twin 48-PC. FLATWARE 11 88 Silver Plate over SSte.l. Free Chest 1 1 .w w SAVE $60! STEREO CONSOLE SI 8 9 AM-FM Radio. 6 Speakers " ' SAVE 9.95! 8-TRANSISTOR RADIO 44 Modern Design. Powerful, Durable SAYE $55! DELUXE 21" TV Si 99 Handy Swivel- Base. Mahogany Finish... $35 OFF! 17" PORTABLE TV Si 34 Excoll.nl Reception. Weighs Only 32 Lbt WT $50 OFF! 30" ELECTRIC RANGE Si 99 Automatic Clock Timor. 1 Only 7-PC. FIREPLACE ENSEMBLE S34 Reg. 74.95. Heavy Brass Finish fw"T REFRIGERATOR-FREEZER S999 $30 Off. 73 Lb. Freeier Chest. Auto. Defrost... WASHER-DRYER COMBINATION SO ft ft Save. $711 Fully Automatic rOW SIGNATURE DISHWASHER Si 9 9 e0.9J Olfl Free Standing Model T17 easy to coll and store) ribbed! for extra strength gives long years of wear resistant to oil and acid Guaranteed 5 years. You'll enjoy prac tical plastic it stays soft and pliable. And it's lightweight to handle, too. Hose has full flow brass couplings. 6.95 STEP-ON PAIL O Tf Rugged Plastic. Easy to Clean 4.98 10-GAL. GARBAGE PAIL O Aft All-Plastic. Tight-Fitting Lid 6.95 PICNIC BASKET 2 47 Unfitted. Sturdy Plastic DELUXE BARBECUE WAGON S35 Save 16.95 Nowl Warming Oven 8.95 VALUE ICE CHEST C J J Molded "Vacucel" Plastic . 2.44 CANE FISHING POLES AA- 10 Only. Take-Down. Sturdy 19.95 WATER SKIS 14 QO All-Purpose Model. Pair IT. WW 8-PENNY BOX NAILS CIO Save $6 on 100 Lbs. Per Keg r 1 w PEAT MOSS 2 DO 8 Cu. Ft. Compressed to 4 Cu. Ft 4.69 LAWN FERTILIZER O 00 All-Purpose Formula. 70 Lb 8.95 GARDEN CART A ftft Ail-Metal. 4 Cu. Ft W.OW 11 I P'iump ''srf . 2-n jj Cotton athletic ii 13 L shirt, briefs. U i I"9" ' SpOtl CapS ' Antique satin m White. S-W-L I Adjustable, ven- - ?1 '"V tov,r' 10 JL 9 I tllated. SomeV I "i bright colors. J seMwaiiweeueMueiiiMieMsM nov ,un visor. JL A . . ,.,m ATi q r t t om a t iapakit k Jiv Unopened . .1 ? Ki. V I j SAIEI STEEL i I Stock up now! TACKLE BOX i M 5 S llatitweigM steel. Con- H '0r W tflsvor Iroy, - S B m IJ'AI".lon. 99c P Handy, versatile- 10" locking pliers Children'! 1.29 plastic sandals sturdy, t I White, V I to 2. X Cool, sturdy, wasnabli colors, leeks quickly, will not slip I Has 1-ton grip. 1 91