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"Said Gilruth. 'We've been running only 15 to 20 drivers a day, instead of 25 to 30. In other words, it's very bad.

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Every time we open the mail, we get a stack of cancellations. I've already been in contact with our Congressional representatives about the problem. This hurts the payroll.'

"On the other hand, Smith's Boat Service, which runs scenic trips up the Wailua River, reported: 'We're still loaded; everything's sunny here. We're running a full schedule around the clock.'

"At the Hanalei Plantation, manager Barry Yap explained, 'We dropped off for a couple of days, but we're back up to normal now. We haven't felt any major effects yet.'

"Then, expressing what might be on everyone else's mind, 'But it's like waiting for a storm.'"

[From the Honolulu Star-Bulletin, July 23, 1966]

TWENTY-ONE HUNDRED HOTEL ROOMS VACANT AS STRIKE CUTS ARRIVALS Hawaii's visitor industry reeled from the impact of the nationwide airline strike today as the strike entered its third week.

The State has lost more than 13,000 visitors and, has about 2,100 vacant hotel rooms. Sharply worsening conditions can be expected, said Robert C. Allen, executive vice-president of the Hawaii Visitors Bureau.

This weekend, the third since the strike began, will show the worst effects, Allen said.

July visitor arrivals were 14.7 percent below the same period last year as of July 20. They are 27 percent below the Hawaii Visitors Bureau forecast for this month.

"Our safety factor is gone," Allen said, indicating that further strike-caused losses would plunge the number of arrivals below last year's total.

The H.V.B. estimated the State was about 20,000 arrivals ahead of last year's level when the strike began.

Waikiki hotels reported occupancy rates averaging 85 percent. The Neighbor Islands were down to 80 percent, and two Neighbor Islands reported occupancy rates of 73 and 72 percent.

Hotels normally are full to capacity at this time of year.

Layoffs in the visitor industry have started. Allen said, and many businesses in the industry are arranging vacations for their employees.

"Everybody's been trying to weather it with full staff until now, but they can't keep that up," he said.

Visitor arrivals are down to 45 percent of total airlift capacity, Allen said. "We had a leveling-off cycle, but that's over now," he said.

Standbys who swelled hotel occupancies have largely departed. And they didn't spend as much during their lengthened stay as new arrivals would have.

Allen was not able to estimate the total dollar cost to the State. But we said it would increase steeply as the strike continues.

KAUAI, HAWAII, July 26, 1966.

Senator HIRAM FONG,

Washington, D.C.:

The people of Kaui, Hawaii, request your cooperation to settle airline strike. This strike has definitely affected our economy.

HARTWELL K. BLAKE, Chairman and Executive Officer, County of Kauni.

Hon. HIRAM L. FONS,
U.S. Senate,

CITY BANK OF HONOLULU, Honolulu, Hawaii, July 22, 1966.

Washington, D.C.

DEAR SENATOR FONG: The airline strike in its 15th day of collective bargaining is posing a serious threat to the economic progress of the nation. In particular. Hawaii's visitor industry, now in the peak of the tourist season, is being critically curtailed, affecting both local and neighbor island business.

We of the Hawaii Bankers Association realize that you are fully aware of the serious nature of the situation and sincerely hope that you plan to devote your time and influence to shorten the air strike.

Very truly yours,

К. Ітон,

President, Hawaii Bankers Association.

HONOLULU, HAWAII, July 14, 1966.

Senator HIRAM L. FONG,

U.S. Senate,

Senate Office Building, Washington, D.C.:

Early checkouts and cancelled reservations due airline strike, serious losses during peak season, if allowed to continue, request do all you can to affect immediate settlement.

LYMAN BLANK, Owner-Manager, Hotel Tropic Isle.

HONOLULU, HAWAII, July 15, 1966.

Senator HIRAM FONG,
Washington, D.C.:

Will greatly appreciate your prompt effort to end the airline strike which is having a serious detrimental effect upon the economy of the State prolongment would be particularly damaging to the travel industry. Aloha.

LEONARD GORRELL, General Manager, Sheraton Hawaii.

HONOLULU, HAWAII, July 15, 1966.

Senator HIRAM FONG,

New Senate Office Building,

Washington, D.C.:

Airlines strike seriously affect our members business. Please do everything to have the strike settled immediately.

TSUYOSHI NISHIMOTO,

President, Honolulu Japanese Chamber of Commerce.

HONOLULU, HAWAII, July 15, 1966.

Senator HIRAM FONG,

Washington, D.C.:

Airlines strike continues to cause chaos and extreme hardship to thousands of residents and tourists. Urgently request redoubled efforts to influence the president and the parties concerned to have normal air service restored immediately pending just and equitable settlement.

Oliver K. Yanaga, President, Hawaii Chapter American Society of Travel Agents; Franklin Leong, General Manager, Royal Prince Hotel; Lyle Guslander, President, Island Holidays Ltd., Mary K. Robinson, President, Robinson's Hawaiian Tours; Joseph Rondina, District Manager, American Express; Randolph Lee, Jr., Vice President-General Manager, Halekulani Hotel; Stanley Kuranaka, President, Globe Travel Service; Robert MacGregor, President, Inter Island Tradewinds Tours; John F. Clancy, Manager, Travel Division Castle and Cooke; Robert Iwamoto, President, Robert's Tours; Ernie Forde, President, Ernie Forde Travel Agency.

AIRLINE DISPUTE

THURSDAY, JULY 28, 1966

U.S. SENATE,

COMMITTEE ON LABOR AND PUBLIC WELFARE,

Washington, D.C. The committee met at 10:15 a.m., pursuant to call, in room 4232, Senate Office Building, Senator Lister Hill (chairman of the committee) presiding.

Present: Senators Hill (presiding), Morse, Clark, Randolph, Williams, Pell, Kennedy of Massachusetts, Nelson, Kennedy of New York, Javits, Prouty, Dominick, Murphy, Fannin, and Griffin.

Committee staff members present: Stewart E. McClure, chief clerk; John S. Forsythe, general counsel; John Bruff, counsel, Subcommittee on Labor; and Stephen Kurzman, minority counsel.

The CHAIRMAN. The committee will come to order.

All right, Senator Morse.

Senator Morse said last night he wanted to elucidate some, I believe.

STATEMENT OF HON. WAYNE MORSE, A U.S. SENATOR FROM THE STATE OF OREGON

Senator MORSE. Mr. Chairman, I will follow whatever procedure the committee wants. My suggestion is that I make a very brief statement and then a couple of points which ought to be placed into the record. Then the committee can ask me whatever questions they care to. That would include Senator Clark's questions.

Senator CLARK. I am sorry, I didn't hear what the Senator said, Mr. Chairman.

Senator MORSE. My suggestion was that as a witness, I make a brief statement, certain things that I think ought to be raised, and then subject myself to the questions of the committee.

Senator CLARK. Surely.

Senator MORSE. Mr. Chairman, I have with me the transcript of the record that the Emergency Board made. It is 8 days of formal hearings. I have the exhibits. I have the Board's analysis, the workbook analysis, issue by issue.

I would like permission to insert into the record at this point, so we have it as a matter of record, the report to the President by the Emergency Board No. 166, which is the report that has been under discussion.

The CHAIRMAN. Without objection, it is so ordered.

(The report referred to follows:)

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