New Merger?

The routes of Delta Air Lines form a jagged Y from Chicago to Miami and from Atlanta to Dallas. But Delta President C. E. Woolman would like them to cover the eastern half of the U.S. like a crazy quilt. In 1950, he made a deal to merge with Northeast, thus cash in on some lucrative New England business. Then he offered to buy the southern routes of Capital Airlines. Last week, while both these deals awaited approval, Woolman dreamed of further expansion.

Delta, said Woolman, planned to join forces with Chicago & Southern, a 17-year-old line with routes from Detroit, Chicago and Kansas City to New Orleans, and 3,034 miles of overseas routes from there to Cuba, Puerto Rico, Jamaica and Venezuela. The new airline, which would be formed by swapping $10 million in new convertible Delta debentures for Chicago & Southern's outstanding common stock, would have 6,474 domestic route miles and be sixth biggest in the U.S., assuming that other pending airline mergers go through. (Including the Northeast and Capital routes, the new line would have 10,967 unduplicated miles, but would still be sixth.) If stockholders and CAB approve the deal, Carleton Putnam, chairman of C. & S., will become chairman of the new company; Delta Boss Woolman will be president.

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