Evening star., 1932-12-13
A|RMA|L SERVICE
MAYB Be CURTA|LED
100000 Slash in Appro.
priations Carried in Treas.
ury.P0st Office Bill.

Is facing reduced expenditures winch
probably will result in curtailments of
service during the coming fiscal year,
and in the reduction before July OF
s700,0Oo in payments to the holders Of
domestic air mail contracts.
Not only will the Post Office Depart
ment be forced to reduce its payments
to contractors by nearly three-quarters
Of a million dollars to remain within
the S20,000,O0O limitation for the cur
rent fiscal year, but it will have to face
the reduction Of the airmail appropria-
tions by a full $1.00O,0O0 next year If
Congress adopts the $l9,000,000 appro-
priatiOn item carried in the Treasury
Post Office appropriation bill which
was called up before the House yester-
day afternoon.
Information laid before the House
Appropriations Committee indicates
that should Congress hold t. the
S19,0O0,000 limitation, the Post Office
Department probably will have to elm
mate the newly established air mail
lines between Los Angeles and Salt
Lake City and between Columbia, S. c.,
and Augusta, Ga. The latter is pas
senger-mail line inaugurated December
l, which gives the National Capital di-
rect connection with new section of
the South. Readjustment OF airmail
schedules throughout the country, with
elimination of certain schedules, also
may be forced upon the department.
First Halt in Growth.
The new bill. If adopted as called up
on the House floor, will mean the first
halt in the steady growth of the air
mail service in the United States since
the first regular line was established
between Washington and New York by
the Army Air Service on May IS, 1918
Not only will 1t mean a cessation Of
growth, but an actual curtailment of
service for the first time in history, ac-
cording to the testimony Of postal Off
cials.
Post ONCE Department schedules
show little more than S20,000,000 a
year now is being spent on the contract
airmail service. During the current
fiscal year. in order to remain within
this limit, the department will have to
reduce its payments to contractors by
about 100000. according TO Second
Assistant Postmaster General w. l.
Glover. Notice that this reduction must
be made already has gone out to the
% contract airmail operators.
The new 100000 reduction, which
will be distributed among the contrac-
tors on basis to be agreed upon at 2
forthcoming conference at the Post
ONCE Department, follows reduction
OF 100000 forced upon them last
Summer
Part Of the cause for the enforced re-
auctions. Mr. Glover explained, was
that the airmail operators. by increas-
ing the efficiency OF their operations
have earned greater payments from
the Post Office.
Performance Improves.
The operators are paid for the per-
Centage of service they actually COM
plete Because of improved radio and
weather service the percentage of per-
formance is increasing from year to
year at the rate of about l per cent
year, calling for increased payments OF
about 100000 year from the Post
Office Department
In 1882 the Post Office Department
estimated the airmail contractors
would complete about 80 per cent of
their scheduled flights. They turned in
an actual performance record of SO
per cent. however. For the current
fiscal year it is estimated that from
1918 to "a per cent OF all scheduled
flights will be completed
Under the present economy regime. it
was pointed out, airmail contractors
are being penalized, in a sense, for their
increased efficiency. Though they earn
more money for their increasing per-
formance. they actually are being paid
less through enforced reductions
There is only one air transport COM
Dany in the United States that ever
has been able to pay a dividend. Mr.
Glover testified before the House Ap-
preparations Committee during the
hearings on the Treasury-Post Office
bill. OF the others, three are Just
about breaking even" and the others
are operating at loss in the hope that
they will earn their rewards in the fu-
ture growth Of air travel.