Evening star., 1932-03-27
A|RMA|L HEARINGS
START THIS WEEK
Names of Witnesses Kept
Secret by Senate Post
Office Committee.

S AAOASS VI I|S prospective
witnesses withheld, the Senate Post
once Committee plans early this week
to begin a thorough investigation of
charges against the Post Ofice De-
partment in connection with its ad-
ministration of the contract airmail
service.
Members of the committee have been
informed unofficially that overtures
have been made within the past few
days by officials of the so-called big
Four aviation companies, which now
hold more than 80 per cent of all the
disputed airmail contracts. to two of
the leading independent operators who
nave been denied airmail contracts and
who are expected to provide star wit
nesses against the department.
E. L. Cord, head of Century Ali
Lines and Century Pacific Air Lines
largest air transport operator in the
country without mail contracts. has
been offered a substantial holding in
American Airways, operating organiza-
ton OF the Aviation Corporation. which
holoS II airrnail contracts. members OF
Congress have been informed.
Led Fight on Big Four"
Cord until last week was leading the
fight to smash the Big Four" and tc
nave the Governments airmail business
thrown open to all bidders. Officers oi
MS company were leading witnesses fol
several days earlier this month in thu
investigation by the House Post Once
Committee into the airmaiI situation
of ha
and his officers without notice to ths
committee, suddenly bolted the hear.
ings and left Washington.
Cords bolt and subsequent reports Of
MS animation with the interests he hat
oeen nghting were characterized BY
CHAIRMAN Mead of the Post Ofice Com.
mittee as having "a startling signifi.
cance."
The other leading independent tc
whom overtures have been made. ac.
cording to information in the hands ot
Congress, is the Ludington Line. oper.
atlng hourly passenger service between
New York and Washington.
Ludington officials fought consistent.
ly 1or alrmail contracts, and on two oc.
casions inaugurated new passenger
lines, one from Philadelphia to Allan
tic City and one from Washington tt
Nortolk, SO as to be in a position to bic
Tor alrman contracts between thos,
points. The Atlantic City line. how.
ever, was awarded to Eastern All
transport, one OF the Big Four.
WITHOUT oloolng and without competi
ton.
Soon after. the Ludington Line begar
operations between Washington snt
Norfolk Eastern Air began operation
between Richmond and Norfolk on ;
passenger basis only, but announced i
soon expected to handle airmail as wei
on that run. A storm of criticism wa
stirred up by the announcement, ant
TO date, though five months hay,
elapsed, no airmail contract has beer
awarded.
Brown Reveals Agreement.
During the past week Postmaste,
General Brown, on the stand before tht
House committee. surprised committe,
members by saying, in response to ques
tionlng as to the Ludington- Easter
Air fight, that "a harmonious agree
ment mad been reached and there woulc
be no disastrous competition there"
The agreement, members of Congress.
have been told, has been reached sine,
the election of r. M. Eaton, formeI
traffic manager of Pan American Air.
ways, which is associated with the "bi,
four," though not one of the group, a.
president of the Ludington line.
The Senate Post Once Committee ha
been given authority by the Senate t,
subpoena witnesses and to compel then
to testify under oath, as well as to fore,
the presentation of papers and records
These powers the House comnitte
lacked and SO has been unable fully {.
develop testimony covering importan
phases of the charges made before
by witnesses.
In connection with the coming Sen
ate investigation, it was stated yester
day by Senator McKellar of Tennessee
the committee called upon the Postmas
ter General for information as to tn
alleged efforts of the big four to bu
out the chief independent competitors
The Postmaster General promiset
! Senator Oddie," Senator McKellar saiC
that there would be no consolidation
| effected before the committee begun it
| investigation"
Thorough Probe Promised.
A preliminary meeting of the Senat
| committee may be called tomorrow t
| consider plans for launching the inves
tigation. Senator McKellar said.
The committees first efforts probabl
will be directed to building up the evi
dence of alleged maladministration b
the Post Office Department of tn
Watres airmail act, it was indicate,
yesterday. In this connection the frs
witnesses to appear probably will be rep
resentatives of aviation companie
which have sought and been denied air
mail contracts.
I'VE intend to get to the bottom O
| the charges which have been made TO
many months against the Post Offc
Department in connection with the air
mail service" Senator McKellar sale
THE charges are too grave and to
persistent to be ignored any longer"
WAR VETERAN Cal My