Few know of this. It was the real way Pan Am was started and by the men whom stood to do it. The names are of American history and they all went on to contribute so very much to our country. Imagine the incredible journey the Germans took. A remarkable feat and brilliant idea. The heat of the war left Trippe in charge. Arnold and Doolittle went on to found the Air Force and build the US fighting capability while suffering much at the hands of the leaders of the time. They were offered jobs at the ever growing Pan Am but elected to persevere and remain in the military, their careers are legendary. My father went on to be one of the founders of the Military Transport Command, MATS, and the CAB. Mitchell’s history was extraordinary. Jock Whitney worked within and for the US with unbelievable dedication. Pan Am was also a major part of the Sir William Stephenson network and as the OSS was put together. For many reasons this document holds much interest and is about what a few good people could and did do with very little and in a very short time. Pan American Airways, Inc. History of Its Promotion, up to October 4, 1927 NB: Handwritten note on original says Only copy, several sent to NY to Mr. Young in 1934 The origin of Pan American Airways, Inc., can be traced back to the fall of 1925 when Dr. Carl Von Bauer flew in two flying boats from Colombia through Central America and Cuba, to Key West, Florida. Dr. Von Bauer, who is the head of the highly successful S. C. A. D. T. A. System of the Magdalena River in Colombia, wished to extend his Air Mail Service over a route which ha considered one of the most profitable in the world, and to this end he made a careful survey of the Central American countries, with special emphasis on the possibilities of traffic between the Panama Canal and the United States. After careful investigation, and an exhaustive study of the situation, Dr. Von Bauer came to Washington to ask for official permission to pass through the Canal Zone, and place one of his terminals in Florida. He arrived, unfortunately for him, shortly after General William Mitchell had charged the Government with the greatest negligence in allowing a foreign power to base its aviation operation within three hours of the Canal Zone. Due to the furor caused by General Mitchells sweeping accusations, the Government refused to grant the concessions asked by Dr. Von Bauer, and his plans were held in abeyance. So interesting, however, were the plans presented by Dr. Von Bauer, that four men went over them very carefully, with the hope that some day they would be able to put such a line as had been proposed, into operation. These men were: Major H. H. Arnold, U. S. A., Major Carl Spatz, U, S. A. Air Corps, Major J. H. Jouett, U.S.A. and Captain J. K. Montgomery, U.S.N. These men spent considerable time in perfecting the ideas presented to them, and finally decided upon the route, which has not been changed to date. The line they suggested would extend from Key West, Florida, to Colon, Panama, with stops at Havana, Cuba; Cozumel Islands, Yucatan; Belize, British Honduras; Puerto Barrios, Guatemala; La Union, Salvador; Managua, Nicaragua; and Limon, Costa Rica. Nothing further was done until the Fall of 1926, when Dr. Von Bauer again appeared in the United states, having found out that by having a Company financed to the extent of 75 % by U.S. capital, the Government could not prevent his operating in the Unites States territory. Since the need of haste was now imperative, and since Captain Montgomery was free to work on the proposition, he came to Hew York during the last few weeks of 1926, to organize an airline, for operation over the above mentioned route. Captain Montgomery went into the matter thoroughly with his friend, Mr. Richard B. Bevier, and Mr. Bevier became so interested that he backed Captain Montgomery, in his endeavors, from that time forward. Several men who were interested in Central America and Cuba, were approached for assistance and advice, and among these were Mr. Minor C. Keith, President of the International Railways of Central America, and Hr. Herbert Schaubach, President of the Central American Plantations Company, and Mr. Emanuel Riondo of the Riondo Interests, all of whom have been of immense importance and help In the formation of the line. At this time some work was done towards raising capital, but little more was accomplished than interesting various groups in the project and receiving some promises of financial assistance in the future. Shortly after New Years, 1927, Mr. H.G. Mason, Jr., become interested in the project, and through him and Mr. S.S. Colt, Captain Montgomery met Mr. H. S. Reubens, President of the Consolidated Railroads of Cuba. Mr. Reubens had been slightly connected with the operations of the old Aeromarine Company between Key West and Havana, and was most enthusiastic about having a responsible airline to connect those two points. He gave much of his time to the study of the airline as presented by Captain Montgomery, and it was through his influence and advice that the proper authorities were reached in the proper manner in Cuba. In March, Captain Montgomery and Mr. Mason went to Havana in an attempt to obtain the Cuban Mail Contract. They were armed with letters of introduction from Mr. Reubens and during their month and a half stay, obtained a greet deal of quick and favorable action from the Cuban Government. Dr. Julio de la Torre undertook to become the Attorney for the airline, and with his help, a contract was drawn up with a sliding scale of payments as follows: The Cuban Government would guarantee payment for at least 250 pounds, the rates to be 40 cents a pound, up to 500 pounds; 37 cents per pound for 500 to700 pounds, 35 cents for 700 to 1000 pounds: and 25 cents for 1,000 to 3,000 pounds. The airline offered to install an aviation school for the use of the Cuban Army, in return for a long time contract, but in spite of this, no time limit was ever set on this contract. This contract was ready for President Machados signature about the middle of April, when it came time for the visit of the Cuban officials to Washington, this terminated all negotiations with the Cuban Government, although Captain Montgomery and Mr. Mason optimistically pursued President Machado and his aides back to the United States. Since nothing could be accomplished during the official visit of President Machado to the United states, Captain Montgomery returned with him to Havana early in May. On this trip, negotiations were again opened, on obtaining a contract over a period of years, and on May l6th a new ar¬rangement was formulated, which might have been more favor¬able to the airline than the former one, had it bean put into effect. This contract was to be for a period of two years, guaranteeing a payment of $45,000. a year, and con¬tained the provision that if the trips exceeded 300 per annum, the rate of compensation for the extra tripe would be $150.00 per trip. Captain Montgomery was satisfied teat thla was the best he could do for the Company at that time, and returned to New York with the contract, to obtain the official approval of the Company.
Posted on: Sun, 09 Nov 2014 17:59:06 +0000
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