Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-02-02

- INCE the recent sweeping re-
duction in passenger fare;
on the lines Of a number o.
- competitive air transpor-
companies passenger loads have
increased tremendously. Some OF
the lines report increases OF more
than 200 per cent, and on one
section the increase has beer
nearly 800 per cent.
From one angle, therefore, the
orgy Of rate SlaShing has been q
source of satisfaction to air trans
port executives. It has proved
that fear has not caused empty
seats in the transport planes, but
that it is the high cost of flying
which in the past has been one OF
the chief drawbacks to passenger
air transport development.
5000 Passengers Daily.
Statistics compiled by the De-
partment of Commerce aeronau-
tics branch show that during the
last half of 1929 an average of
5000 passengers flew every day in
civil aircraft in the United States
That was before the reduction in
rates. It was estimated some
time ago that in excess Of 10000
persons would fly every day in
1880. That estimate was made
on the basis of the then existing
higher rates. If the new low
rates are continued for any length
OF time this estimate undoubtedly
will have to be increased ma
terially.
But, although the results of rate
cutting have been most encour-
aging from the standpoint of the
increased public acceptance of air
transportation, there remains a
, large, persistent and most noisome
fly in the ointment Of the air
transport operators. They can
not, it appears, make any money
at all under the new tariffs. Not
only can they not make money,
but the more passengers they
carry the more money must they
lose.
Not until there are much more
economical airplanes and lower
much lower-operating costs can
the operators find a way to the
black side of the ledger unless
they can obtain sufficient rev.
enues from other sources to more
than make good their losses from
the carrying of passengers. In
Europe the passenger lines oper-
ate at rates comparable to rail-
road rates, considering the faster
service offered. But in Europe the
operating losses are made good by
generous governmental subsidies.
The only approach to a subsidy
In this country has been the
United States airmail contract.
And perhaps the tariff. There
have been many able statesmen
who have been at pains to explain
that the tariff is not a subsidy.
The subsidy aspect of the airmail
contract has not been so keenly
stressed in this country. In Eng
land, however, publishers of aero
nautical papers neglect no oppor-
tunity to refer most pointedly to
the airmail contract as a subsidy
in intent and effect.
Federal Contracts Profitable.
There is no question that some
of the existing Federal airmail
contracts are most generous to
the operators. Many of the hold
erS of contracts are making
money, some of them very hand
some profits.
Congress hoped and intended
that the airmail contract should
be means of stimulating the de-
velopment Of commercial aviation
in this country. This hope has
been fulfilled in large part. But
for selfiShneSS much more good
might have come of the Govern
ment'S generosity. Profits which
have gone to relatively few per-
sons in some instances might
have been applied to better adj
vantage-from the standpoint Of
human progreSs-to the develop
ment of aviation in general.
Brown Would Spread Profits.
Postmaster General Walter F.
Brown appears to have caught
something of this feeling. He has
proposed that in the future air
mail contracts be awarded only
to transport companies which
carry passengers and express.
Had this policy been in effect in
the past some Of the excess profits
which have been made from Fed
eral contracts for the carrying Of
the mails might have been poured
into the development of passen-
ger air transportation during its
troublous early years.
The epidemic of air passenger
rate slashing which has swept
the country has its precedent in
the history of railroad develop
ment. In the early days of the
railroad rates were reduced to