Business: Bad News for American

The second biggest & richest of all U.S. airlines—American Airlines, Inc.—was knocked into a tail spin last week.

The Civil Aeronautics Board's decision on American's mail subsidies was much tougher than anyone expected. Ever since CAB started its investigation in the tail end of 1939, dopesters had figured the company might have to return $1-2,000,000 to the Government. But CAB bypassed such estimates, ruled instead that American had received $3,815,856 "excessive" mail pay in the two years ended Nov. 30, 1941, should return all of it (with allowance for $1,100,000 Federal taxes paid).* It further ruled that, beginning April 1, American will...

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