VEE from a PC writes an EOL (End Of Line) in the To File block. Turning EOL off only omits it from the last line. If the ^M is left in the files, other UNIX actions that process those files choke on that character. If I write the file one line at a time with EOL off, when I look at the file from UNIX, everything is on one line.
I found the answer: The To File block used to write to the UNIX file has to have the EOL character changed in the Data Format EolSequence section of properties from "\r\n" to "\n" and then write each line one at a time.