Evening star., 1934-02-10
Hearing Plea
Made by Mail
Companies.
DENIALISM MADE
ON COLLISION
Army Air Corps to
Fly Routes in
Week.
BY the Associated Press

alrmallS, stripped or thelr VaIu-
able contracts by one swift ad-
miniStration blow, today were
demanding a hearing.
President RooSevelt'S whole
sale abrOgation of existing air
mail contracts, issued last night,
becomes effective February 10.
On that date the planes of the
United States Army will begin
flying the mail.
Well be ready in a week, or
sooner" was the word from the
War Department.
Demolition with a single pen
stroke of the airmail subsidy
structure was accomplished on
grounds of colluSiOn in obtain
ing the contracts.
Operators of air lines holding
contracts were quick to deny
any colluSion. Some frankly said
loss OF the contracts might force
them out of business.
Five-Year Ban Provided.
Many demanded that they be given
a hearing before the contracts we're
taken from them. There was no Of
fetal comment on these demands to-
DAY, but there was private talk in
some administration quarters of a
hearing at least for some of the con-
tract holders.
Under the formal order canceling
the contracts. issued by Postmaster
General Farley. it was indicated at
the White House that none of the
concerns stripped of their contracts
would be able to bid on new airmail
contracts for another five years. The
five-year provision is contained in the
statute under which the order was
issued. 1t sets forth that no firm
deprived Of contract for collusion
can seek another for Ave years.
Situation to Be Studied.
Cancellation of the airmail con-
tracts evoked praise in Congress to-
day and the prediction of elimina-
tion of subsidies by law, with the
flying Of mail to be put on a mileage
pound contract basis.
Secretary Roper meanwhile desig-
mated a committee to study the ex-
isting situation and report Monday
morning for guidance of President
Roosevelt.
The members: Eugene L. Vidal,
Assistant Secretary of Commerce;
Maj. Gen. G. B. Foulois, chief of the
Army Air Corps, and Harllee Branch,
Second Assistant Postmaster General.
All are of the Advisory Committee
on Aviation" created last Wednesday
Tor the formation of a general aero
nautics policy for the Government.
At the War Department and vari-
Gus Army posts preparations were
under way for the Army to take over
the airmail week from Monday.
Collision Was Established.
Chairman Mead Of the House Post
Office Committee, after conferences
with administration officials, to news
paper men predicted "a revision of
the law which will put airmail on the
same basis as other common carriers" +"
"Collusion and fraud were estab-
lished beyond doubt" he said, land as
soon as it was the Postmaster General
could do nothing but cancel the con-
tracts.
That was a setback, Of course, to
the development of aviation and the
handling of mail, but We will get a
fresh start through new legislation
which believe will eliminate the sub
sidy and set a fixed price for airmail
on a underground basis"
In his opinion. the Post Office De-
partment also should be vested with
authority to make an annual audit of
the books of aviation companies to
assure that they were not making ex-
cessive profits.
The President, ordering the Army
and Department of Commerce to CO.
operate with the Post Office Depart
ment for the period of the "emer-
gency," indicated that some time
would elapse before new contracts will
be let.
Since some Of the firms are the
largest in aviation. the private talk
was that some reorganization might
be suggested that would allow them to
bid again within that period.
Start Flying in Week.
Meanwhile, the War Department
gave evidence of more hustle than for
months as it prepared to take over
the huge airmail system. Orders
were flashed to aviation squadrons in
all sections of the country.
Gen. Douglas Macarthur, chief of
staff. asserted:
I'VE will start flying the airmail q
week from today and there will be no
delay, no difficulty and no Interrupt
ton"
MacArthur's statement was inter-
preted to mean that the Army might
take over before the actual date when
the wholesale airmail contract abro-
CATION goes into effect.
Macarthur added that most Of the
pilots for airmail companies held COM
missions in the Air Corps Reserve and
If necessary could be called for active
service.
Asked what salaries the pilots would
draw If called for Army service, Mac
Arthur said the Army flyers drew base
pay plus so per cent and that such
salaries were approximately the SAL
aries drawn by airmail pilots.
IF any airmail pilots are dropped
by the private companies" Macarthur
said, Il can assure you that they will
be taken care Of by the War Depart
ment and that an equitable arrange
ment for pay will be made"
A. s,avx, Io,,1%f f1e1
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