Evening star., 1932-03-13

Should the Postmaster General de-
eide that the contractors cannot ab-
sorb the $1,000,000 loss without run
ing the risk of a financial smash, 1t
may become necessary to curtall some
of the existing airmail service. In any
event, the Post Oftice Department has
decided, there will be reductions in the
rate of pay to airmail contractors as
rapidly and as often as they are able
to stand reduction without disastrous
results. Should there be a possibility
of reductions which will save more
than $1,o0o,0o0 the department may
apply the excess to increased services.
Otherwise there can be no expansion
Of airmail service during the coming
fiscal year. ,
The Postmaster General has promised
the worried airmail contractors that he
will not permit their rates of pay to be
cut to q point which will ruin them
financially. Rather than permit SUCH
drastic cuts he will curtail service, he
said.
Discussing this feature with members
of the House Appropriations Commit
tee, the Postmaster General explained
thet when the new April cost sheets
come in from the contractors he VIII
be able to learn whether they can lis
within the sls,O0o,000 appropriation.
Reduced Service Considered.
eff they cannot" he said, II will
have to cut of some service this next
year; we will have to fly fewer miles,
because I am not going to make them
do business at a loss and let their
equipment run down, breaking up their
planes and losing their pilots, losing
the mail and bringing the whole thing
into disrepute."
should reduction of service become
necessary, the Post ONCE Department
has indicated the reduction will begin
with night airmail service, which is
the most expensive to operate, even
though this type of service is OF great
est value to the mailing public. United
States airmal planes now are averag-
ing more than 10000 miles of flying
each night, as against $4,000 miles
during the hours Of daylight each day
It will not be the policy of the Post
Office Department to cut out complete.
~ any of the night airmail lines, but
rather to reduce the frequency Of
schedules, it has been stated.
The attitude of the contract atrmail
operators toward the reduction OF the
airmail appropriations Is expressed by
Thomas B. Doe, president of Eastern
Air Transport, one of the so-called Big
-Four" air transport lines which hold
90 per cent of all the Government S
airmail contracts.
Doe likens the airmail structure now
being built up in the United States
to a house. The efforts Of the inde-
pendent operators to break into the
contract airmail field at greatly reduced
rates of pay, he says, is like putting up
a tent instead of a house in order to
save money.
Full Equipment Required.
"If we are going to build UP real
transportation companies for mail, pas
sengers and express, with real value in
case of war" Capt. Doe said in radio
address a few Sdays ago, I'VE can't
afford to do it unless we have all Of the
eouipment and facilities that make for
safety, comfort and dependability."
Referring to the action of the House
In slashing the domestic airmail ap-
preparation, Capt. Doe declared that
this action was "a mistake" explaining
that ''if we don't finish the house and
paint 1t, We are not practicing econ
omy."-
"The best economy" he continued,
would be to increase the appropriation
and hasten the day when airmail shows
a profit to the Post Office Department.
1t is already showing a profit to the
country as whole. The Post Once
loss is not $2a 900, 900, as the Cancelled
stamps amount to from $12,000,000 TO
$4,000, ,000."
In concluding his radio remarks
which are taken IN the industry to be