Shoo!

Last month T.W.A. told the Civil Aeronautics Board that it would be "unable to continue" unless it got more mail pay. Nothing happened. Last week T.W.A. cried wolf again, much more urgently.

On May 28, said T.W.A., $1,100,000 was due on T.W.A.'s $40,000,000 loan from the Equitable Life Assurance Society. Unless it was paid, said Board Chairman Warren Lee Pierson, the loan, plus an additional $8,000,000 in T.W.A. indebtedness, would automatically become due.

Equitable could take over the airline if it wanted to. T.W.A. could get no more help from outside sources; Principal Stockholder Howard Hughes did not intend to put in any more cash. Warned Pierson: only a quick RFC loan of $10,000,000 could save the line.

Three days later, help came from CAB. It granted T.W.A. a 110% boost in its foreign mail pay to $6,300,000 a year, retroactive to Jan. i. T.W.A. thus got $1,100,000, exactly what it needed to shoo the wolf away. But T.W.A. was in such bad shape that this was no guarantee that the wolf would stay shooed for long.

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