Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-03-20
REDUCED A|RMA|L
SERVICE IS LIKELY
Pesta Officials Are Resigned
10 Reduction IN Ap-
preparations.

The growth Of the Nations airman
system, which has been continuous and
rapid for the past IA years. virtually
has reached a standstill and may, for
the first time, lose ground during the
coming fiscal year, postal officials ad-
mitted today as hope was given up for
staving off a slash in appropriations for
the contract airmail service.
1t is regarded as foregone conclu-
sion that the Senate will concur with
the House action in reducing the al
lowance for the contract service from
$4,000, 900 to S9,000,000. The Treas
ury-PoSt once appropriation bill, IN
which the airman item is carried, now
is the subject of hearings before the
Senate Appropriations Committee and
the airnail item is under consideration.
The fate of the service whose growth
has constituted one of the outstanding
transportation romances of the Nation,
may be determined by the cost sheets
of the airmail contractors which are
to be submitted to the Postmaster Gen
eral about April l.
Companies Hard Pressed.
These cost sheets, showing in detail
the operating expenses OF the airmau
carriers, will determine whether the
rates of pay to the contractors, which
were slaShed 10 per cent on January l,
can safely be reduced again without
sending the companies into bankruptcy.
If the companies cannot stand a 1urtner
cut, reduction of airmail schedules is
regarded as inevitable during the COM
ing fiscal year.
None of the companies, 1t is under
stood. has been making money and, I'M
less the new cost sheets prove uneX-
pectedly favorable, it is regarded as I'M
likely that any substantial pay reduc-
lions can be made by the Post Office
Department without forcing some OF the
companies out of business.
If reduction of schedules becomes
necessary to bring the airmail service
within the reduced allowance, the cut
ting will begin with the night airmail,
according to plans now being formu-
lated by the Post Office Department.
Though the night airmail service Is
the most valuable to the public OF all
the airmail operations, Postmaster Gen.
eral Walter F. Brown admits, 1t also Is
the most expensive to operate and Will
be the first to suffer the pruning knife
of economy.
Extensions Unlikely.
It now Is regarded as exceedingly un-
likely that there will be any further
extensions of the airmail system, even
on daylight runs, unless the present
contractors are able to bring their OPP
Grafton costs down to point which
will bring the total cost within the
$I9.0O0,000 limitation.
There is almost no hope Of atrmal
service from the National Capital to
Norfolk, it was indicated today, though
the Department of Commerce has ex-
pended $4,000 to install completely
equipped airway between the two cities
In preparation for airmail service.
The Post once Department viii not
countenance reductions of pay to its
airnail contractors which will force
them to use inferior equipment or per-
sonnet to maintain operations, 1t has
been learned. Rather than do this, the
department will cut of service even
though this means the breaking up of
the present airmaiI schedules.
For its guidance in determining the
minimum rates of pay under which the
airnail contractors can maintain safe
operations, the Post Office Department
has instituted a uniform system OF &C
counting, which Is rigtdly supervised by
Federal officials, affecting every airmais
contract or route certificate holder.