Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-01-08
Washington Ticker
BY CLINTON COFFIN.

Associated Press Financial Writer.
From the business point Of view, the
extensive commercial airplane opera
tons which have sprung up over the
United States in the last two years are
showing a not altogether pleasing d.
yersity of result. It is the impression
of governmental observers that most OF
the enterprises engaged in carrying air.
mail are showing profit. with pros
poets of increased return as the volume
of aIrmail increases. but that the reg
ular passenger carrying routes, eSpe-
cially the longer ones, are encounterlng
operating losses as the Winter months
roll by. This failure to earn return
has occasioned a reconsideration OF the
possibility Of getting subsidy aid from
Federal or local governments, but air
people continue to regard that solution
OF their problem with good deal of
distaste, even though 1t is well recog-
nized that European air transport is all
based on subsidy.
What the passenger transport lines
will do and are doing Is to take the
bold step Of sharply cutting rates and
fares" remarked Clarence NJ. Young.
Assistant Secretary of Commerce for
Aeronautics. Subsidy projects are
always being discussed, but the outlook
as to that hasn't changed at all and Is
rather doubtful. But the possibility
that lowered rates will I'LL the passenger
planes is now likely to be carefully
tested out.
$50 far. air travel has been a rather
expensive matter and the appeal for its
utilization has been addressed to the
class of people who move in drawing
rooms and private cars on railroads. It
may be that in the air as on the rails
and over the highways a commercial
travel volume can be built up only ut
rates low enough to attract business.
AS understand the business problem
of the passenger-carrying lines. their
operators consider that the losses being
met will run about the same with a
larger number of people at low rates
as they run with the smaller numbers
at the higher rates. And there have
been q couple of demonstrations, on the
West Coast particularly, that the re-
duction in fares does operate to slim
ulate traffic Immediately"
On the longest Of the passenger air
routes operating, the TranScontinental
Air Transports coast-to-coast enter
prise, which is run in cooperation with
the Pennsylvania and Santa Fe Rail-
roads, latest returns indicate a business
ranging only between IS and 40 per
cent of capacity. Paul Henderson,
operating vice president of the lines.
calculates that the daily deficits are
close to 45, 900 on this basis.
At the same time William p. Nc
Cracker, executive of the New York
Rio Buenos Aires line, which is organ
iGing air communication between the
United States and South America, says
that no hating in that company's pro-
gram is intended. The flying boat
passenger service on that route is
scheduled to begin within go days and
will afford air transport over longer
stretch than any that have been flown
on regular schedules on this hemisphere.
There wasn't much promise Of i'm
mediate fireworks today when the Fed
eral Trade Commission resumed its
long -suspended inquiry into the public
utilities of the country, but people in
tereSted in the enterprise say that the
more interesting matter will come up in
due course Since the start Of the pro-
ceeding its open-hearing phases have
revolved largely around the policies and
pursuits of public utility corporations
and organizations in influencing public
opinion and today's sessions are in
tended to give representatives OF these
concerns opportunity to explain and
defend steps taken.
Immediately thereafter, though, the
commission workers promise to put a
new slant into the record in the way
Of describing the organization and
financing of the utility mergers which
have so strikingly exemplified them
selves In recent years. The vast sweep
and scope of mergers, particularly OF
mergers Of electric utilities, IL going to
be explored and analysed and some
light thrown on the personalities i'm