The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-02-10
Private Carriers Outline
Battle to Finish on
Roosevelt Order.
ALLEGED FRAUD BLAMED
1000 War Planes Ready to
Take New Duties on
Feb. 19.
BIZ Tnifed Press

ON, FEB. 10.
W e apOns Of war were
turned 70 the pursuits of
peace today as the army air
service was modified to
carry the nations air mail.
kilograms of protest arrived at
the White House from air mail
operators whose mail carrying con-
tracts we're abruptly cancelled by
President Rosevelt's order. Hints of
fight to the finish" came to the
capital from the headquarters of
several air lines.
The 1000 planes of the naton's
fighting force were detailed to take
over the mail service on Feb. 10, I'M
der executive order of President
Roosevelt.
In the emergency created by can
collation. Of the contracts, the Presi-
dent directed war secretary George
Dern to place at the disposal of the
postoffice department sufficient
planes, ports and personnel to MAIN
Gdln Ine necessary service.
Alleged Fraud Blamed
Abrogation of contracts with pri-
vate carriers was based on suspi-
cion of fraud during the Hoover
administration when the contracts
were negotiated. The President
Postmaster General James A. Farley
and Attorney General Homer S.
Cummings decided on cancellation
after reviewing evidence of a senate
investigation committee.
The administration action led to
the belief that the carrying of the
alrmail was doomed as a private
industry and that it would be con-
verified into a government service.
This prompted quick inquiries from
leaders of the vast aeronauticaI
business. The White House was I'M
prepared to answer them at once.
The aviation men indicated they in
tended to wage a protective fight
for their field.
The air crops stood ready to
throw all its resources in men and
machines into the emergency task
of carrying the mail. One of the
first considerations of General
Douglas Mac Arthur, chief of staff.
and General Benjamin Foulois.
chief Of the air corps, was that no
regular airmail pilot should lose his
job.
General Macarthur praised the
men who have flown the mail over
the country's $1,000 miles of air.
mail lines through rain and sun,
snow and wind, squalls and calm.
during the years when the air mail
was the mainstay in the develop
ment OF commercial aviation in the
United States.
Old Pilots to Stay
The air corps has a force of be-
tween 1,200 and 1900 seasoned f1v-
ing men who could qualify in a
pinch to carry the mail, General
Macarthur said. But the first con-
sideration will be to keep in service
the regular air mail pilots.
Most regular air mail pilots hold
commissions as reserve officers in
the air corps. and any Of those who
lose a job because of cancellation
Of the mail contracts will be called
into active service in the air corps
to carry the mail.
Some way also will be found to
utilize the services of mail pilots
who are not reserve officers, if they
lose their present jobs, the chief Of
staff said.
PoStmaster-Ge Farley said
the order annulling the existing
mail contracts was issued after
careful and deliberate study of the
entire situation and that the cab
met considered the matter before
the President issued his order.
The Presidents statement was
more drastic than had been ex-
pected. 1t said the public interest
required both the continuance of
the airmail service and the cancel
lation of the contracts.
Barred for Five Years
Under the law the companies
with which the contracts were can
celed were barred for five years
from obtaining the government mail
contracts.
Cancellation of the contracts with
private carriers amounted to with
drawing a government subsidy Of
approximately s20,OOO,0OO annually
for the postoffice air service.
Municipal and army fields will be
substituted for privately owned air.
mail fields. Firms affected by the
contract cancellations were:
American Always, National Air
Transport, Western Air Express,
Boeing Air Transport, Pacific Air
Transport, Northwest Anyways, Koh-
Ter Aviation Corporation, Pennsyl-
varlia Airlines, Eastern Air Trans
port, National Parks Always,
United States Always, and Trans
continental and Western Air. Inc.