On the Operating Table

National Airlines, Inc., which had almost gone broke fighting a pilots' strike, last week appeared before CAB to fight a move to dismember it. CAB thought its routes should be split up among other carriers. As the hearings got underway in Washington, National surprised CAB by proposing something like a dismemberment plan of its own.

National said it was negotiating to sell 346,000 of its shares to W. R. Grace & Co. (joint owner with Pan American Airways Corp. of South America's Panagra). Of the total, President Joseph Peter Grace Jr. had already agreed to buy 174,000 National shares. Joe Grace, who has headed the shipping company since 1946, thought it should branch out even more in the air-travel field. National also was dickering for Pan Am to buy 346,000 shares on its own hook, and agree to interchange some routes and equipment with National. Neither company would have control, though both together would easily control National.

If CAB approves the deal Pan Am will get what it has long sought--a domestic route from Miami to New York. If CAB should turn down National's proposal Pan Am might get its route anyway. CAB has indicated that if National is broken up, the New York-Miami route would go to Pan Am.

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