Evening star., 1934-02-15
The Farley Letter.

sudden cancellation of all airmail l
contracts raised the issue whether the
Government was melting out punish
ment for an offenSe before granting
the defendants a fair trial to demon
strate their guilt or innocence. 1t has
become necessary to dispose of this
issue, for its injection was already
eomplicating the situation and de-
tracing from the main and COM
monty sought objective, which is TO
right whatever may be wrong with
the airman system and adequately to
punish those, whoever they may be,
who may be found guilty Of illegal
or fraudulent dealings.
Postmaster General Farley's letter
TO Senator Black will do a great deal
to clear the atmosphere. The POST
master General specifies the charges
upon which he based cancellation of
the contracts. He outlines the Gov-
ernment's case, and indicates that an
investigation in his own department
covering period Of several months"
together with opinions of the Post
once Department solicitor which
were reviewed by the Attorney General.
leaves no doubts in his mind as to the
Governments ability to prove the
charges and justify the cancellation Of
contracts. Had Postmaster General
Farley's letter preceded the contract
cancellation, or had been timed to
coincide with that action, it would
have been even more effective.
But as it stands today the Post
master Generals letter is effective
enough. 1t represents an indictment
found, 1t Is true, out Of court-of
the airmal operators who have en-
joyed contracts with the Federal Gov
ernment and of the Post Office admin
istration which granted those con-
tracts. And being an indictment, it
naturally precedes the next step,
which is the trial of the accused. 1t
is still uncertain in what form this
trial will proceed although the i'm
mediate prospect is for a test in the
Federal courts Of the Postmaster Cen
erals right to cancel the contracts,
which will, of course, hinge on the
ability of his legal representatives to
prove the charges upon which can
eellation was based
There is one important element
which will receive due attention in
the courts. That is whether the
irregularities and "collusion" which
have been charged were, under other
and more respectable names, part of an
airmail extension policy which had
the full and knowing approval of
the administration which granted
the contracts, including Congress, or
whether the acts of alleged collusion
and connivance were outside the law
and took place with sinister intent.
The Watres airmail act gave the Post
master General great power. He could
bring about consultations and ex-
tensions of air lines, and could
provide for extensions of con-
tracts without new bidding. The
criticism of the airmail contract
policy is, of course, nothing new.
Disturbing stories relating to the
grant of airmail contracts have circu-
lated in Washington for years. But
in the 1880 hearings on the Watres
act Postmaster General Brown told
q committee Of Congress of the de-
STABILITY Of revamping, and Of his in
tention to revamp, the airmal map
Of the United States; to call in air.
mail contractors and to discuss with
them q workable system of rate pay
ment and line extensions. And it
was during that hearing that he
frankly made this Characterization:
-" " Competitive bidding in the
elrmall business is Of doubtful value
and is more or less of a myth. In
the case OF most of the contracts
there has been only one bidder, and
In other cases think If we were to
throw the whole matter open to COM
petitive bidding we would have very
few competitive bids. That is to
say, we would have very few people
come in and bid who knew anything
about the business. We would have
promoters come in and bid against
airmail operators; We would have peo-
pie come in who had stock to sell
and who hoped to get their stock
sold before their losses were so
great.
Postmaster General Brown referred
10 pioneers" in the airmail who de-
served special consideration from the
Government. Postmaster General
Farley refers to n ''few favored cor
porations." There Is obviously q
different perspective here, which will
be important in the examination into
the serious charges made.
Concerning one thing there is no
disagreement. That is the necessity
for such a thorough overhauling Of
the whole airnal contract business
thai no ens vii be lsft Wi&h any