Evening star., 1934-04-21
43 BIDS STUDIED.
First Contracts May Be Awarded in
Week

f1rSt contracts May De AWARDED IN
Week.
Officiak Of three Government de-
partments we're at work today analyz-
ing 43 bids received yesterday for
carrying airmail temporarily on 81
routes and studying the equipment
and responsibility of companies and
individuals who submitted some of
the lowest airmail bids in the history
of the service.
Postmaster General Farley indicated
the first of the contracts may be
awarded during the coming week. 1t
was believed several days would be
required for a study OF the bids and
bidders by legal and administrative
officials Of the Post Office, Justice and
Commerce Departments.
officials of one of the largest air.
lines estimated today that If the Post
Office Department accepts the lowest
bids received on the 81 routes and
similar rates are awarded on the re-
naming routes which have been
planned, the airmail service will cost
the Government less than $4,000, 900
a year. This estimate. 1t was ex-
planned was based on the assumption
that the 81 routes constitute rs per
cent of the permanent airmail
system. Maximum airmail expendi-
lures reached a level of sl9,000,000 a
year.
Estimate Not Hazarded.
Pending completion of their study,
- ~, L. ~ ,olyo
| an estimate as to the probable cost Of
| operation under the temporary con-
tracts, although Postmaster General
Farley predicted considerable saw
ing to the Government" would be
effected.
All the bids received were at a
lower rate than was paid for the same
routes and the same service under
the contracts which were annulled
| February l9. The bids ranged from
171a to 1894 cents per airplane mile.
The maximum allowed by the Post
Office Department in its specifications
ranged from Al to As cents per mile.
Aside from the lowneSs Of the bids,
the greatest surprise to Federal and
airline officials in connection with
yesterdays opening was the apparent
ly complete failure of Errett L. Cord,
youthful head of American Airways,
to break into the airmail picture.
Cord, bidding as American Air
Lines" was underbid on every offer
but one 1t had been charged openly
at the Capitol and by some OF the
airline operators that Cord had been
favored in drafting of specifications
for the bids, and he was expected to
cut large figure in the redistribution
of airmail contracts. The only line
on which Cords offer was not under
bid was from Boston to New York,
on which he was the only bidder,
making an offer of 33ls cents per
airplane mile.
Frank doubts were being expressed
in aviation circles as to the ability
of some of the low bidders to furnish
air transport service in keeping with
former standards. 1t was pointed out
that some of the new companies have
had no airline experience or have In
sufficient and worn-out equipment.
One of the low bidders, it is under
stood, up until two weeks ago operated
nOCIllIlE DuG 1lylils oSiiooA oA'N o.
other owned only two airplanes. In
some sections of the country, it Is
said, every airplane capable OF flying
more than 110 miles per hour, the
minimum fixed in Post Oft1ce speclf1-
cations, is under option for purchase
by bidders classed up to- yesterday as
"unknowns."
Atlanta as Headquarters.
Capt. Thomas B. Doe, manager OF
Eastern Air Lines, Inc, low bidder
for airmail contracts on all principal
lines of the Atlantic seaboard and
Southeastern section Of the country,
said Atlanta will be operating head
quarters for his new organization.
Eastern Air Lines is successor to East
ern Air Transport, of which Doe was
president, which was reorganized to
meet Federal requirements.
Doe said Eastern Air Lines had OBJ
tanned a lease on the equipment and
operating organization Of the Eastern
Air Transport system. The new COM
pany was low bidder on the New York
to New Orleans and Chicago to Jack
sonville routes, its bid being 19 cents
per mile on each route; and on the
New York to Miami route, with bid
of 20 cents.
Doe estimated 800 men would be
employed In the Atlanta administra-
ton Offices and shops If awards were
made to his company on the basis Of
its low bids. His company is in .