Evening star., 1933-02-05

Even the reduction Of s9500 900 pro-
posed In the McKeller amendment to
the Treasury-Post Office appropriation
| bill would ruin the industry, in the
opinion Of the local representative OF
one of the largest lines. Total abolition
Of the appropriation not only would
destroy the transport lines, but would
carry down into the wreckage with
them most Of the remaining aircraft
manufacturing plants.
The unexpected and crushing action
OF the Senate may be laid in large
measure at the door Of Postmaster Gen
eral Walter F. Brown. 1t is believed
by many leaders in the industry. When
the Treasury-Post ONCE bill was under
consideration by the House Appropri-
ations Committee, the Postmaster Cen
eral testified that there was no thought
of any considerable change in the Ma
tion's airmail set-up. There were no
funds for any changes, except perhaps
short new line from Boston to Albany
and another short route in the Great
Lakes region to fill links in the North
ern transcontinental system, he said.
Nevertheless, word got around that
the Post Office Department was con-
sidering some pretty far-reaching
CIlduSeS lIlc IildLl bySIcul. LIE
House Committee on Post Offices and
Post Roads, working on set of recon-
mendations as a result of months of
investigation by committee members
and Prof. John B. Crane Of Harvard
University was disturbed. The COM
mittee was opposed to any changes in
advance of the conclusion of its studies.
On January 20 Representative Mead
Of New York, chairman Of the commit
tee, introduced a House resolution,
which was reported favorably by his
committee on last Monday, calling upon
the Postmaster General to refrain from
any action looking to the granting of
new airmail contracts and the extern
sion Of existing airmail contracts"
Brown Defies Committee.
In defiance of the committee, the
Post Office Department on the day after
this resolution was approved by the
committee put into effect a sweeping
plan Of reorganization of the airmail
system. granting new extensions cover
ing 1,5O0 miles. discontinuing 1889
miles Of old routes. and adding 5,686
miles to the total daily mileage flown
by airmail planes.
The reply of Congress in this open
gesture Of defiance was immediate and
overwhelming. On the same day the
Senate struck out the entire appropria-
tion for domestic airmail; an action
which, If sustained, not only would rip
out the entire airmail plant, root, stock
and tendril, but would undoubtedly
smash virtually the entire air transport
industry and everything which depends
upon the industry, including the air
81,
the country must depend for its mill
tary planes in cases Of emergency.
Leaders in the industry are making
no effort to conceal their belief that
airmail Is essential to the preservation
Of civil aeronauticS In the United
States during these times of depression
No air transport line Is able to con-
tinue living except by virtue Of airmail
income The last of the great inde-
pendents, the Ludington Air Lines,
which never has had an airmail con-
tract. Is on the verge Of selling out to
Eastern Air Transport, negotiations now
being we'll under way to this end
The whole air transport structure is
built upon the foundation of airmail
contracts, and If these contracts are
withdrawn the structure Is almost Ger
tain to crumble. Passenger business to-
uay Is SCdICely Su1uClelG W pay mOle
than the overhead expenses Of some Of
the larger airlines. The Ludington
system, which Is credited with the most
efficient air passenger organization in
the world today, Is losing money heav-
lily on its passenger and express busi-
ness. That 1t was forced to cut its
rates below the point of possible profit
is due to the competition Of Eastern
Air Transport, which holds all airmail
contracts in the Atlantic Seaboard
States south Of New York. Eastern Air
officials never have pretended that their
passenger service even remotely ap-
preached profitable basis. Their pas
senger traffic was carried on the foun-
dation of the airmail contracts, and
they have been able to use these con-