Evening star., 1934-02-08
Farley Prepares to Discuss
Disputed Air Pacts With
President Today.
GRIPPING OF SERVICE
SEEN AS POSSIBILITY
Action Against MacCracken
Studied by Investigating
Committee.
By the Associated Press.

BY the Associated Press
Postmaster General Farley is going
TO discuss with President Roosevelt
late today the status of disputed air
mail contracts, and action is expected
this week
The President is taking the position
that he has the power to abrogate
contracts if 1t is deemed necessary.
Farley has been making a special
study of the Senate's Investigation
into the contracts, and is prepared to
make recommendations to the Presi-
dent.
However, preceding the conference,
there was no intimation as to what
action would be taken. The Post
master General said yesterday he
would lose no time in reaching a de-
clslon on what action to take, in view
OF disclosures before the Senate In
vestigating Committee.
Contempt Case Studied.
Members of the committee conferred
/ on procedure to be followed tomorrow
when three aviation officials and their
attorney. William p MacCracken. Jr..
are to appear before the Senate bar
, to show cause why they should not
be held in contempt for destroying or
removing correspondence subpoenaed
by the committee.
MacCracken was Assistant Secretary
OF Commerce for Aeronautics in the
Hoover administration.
II has not been determined whether
Farley will act in his own right or
whether Mr.. Roosevelt may personally
exercise powers to cancel contracts
believed fraudulent.
A difficulty involved is continuation
Of the airnlail service unhampered.
II the Post Office Department cancels
contract on grounds of fraud. the
holder cannot bid again for five years.
SUCH a situation might cripple the
service. 1t was explained
One suggestion was to cancel a
contract as of an advanced date and
obtain new bids in the interim.
Consider Calling Brown.
The name of former Postmaster
General Brown was linked with talk
of criminal prosecution in connection
with airmail contracts for the first
time yesterday, when Chairman Black
OF the investigating committee told
the Senate Brown would be called
to testify only if he would waive
immunity to such prosecution
In answer to charge by Senator
Fess. Republican. of Ohio. that the
committee was unfair" in failing to
call Brown to the stand. Black said
the former mail chief could appear
at any time if he would waive i'm
munity
The committee also heard testimony
that Browns partner in stock deals
got cut rates from steamship COM
pany on trip to Europe; that one
of Browns assistants went to Europe
without charge and that Post Office
Department flooring specifications
were put in such form that the COM
pany represented by the stock ac-
count partner was bound to get the
business.
Fess told the Senate Brown wanted
to appear before the committee, and
he felt any necessary statement about
immunity could be arranged.
Il hope the committee will be fair
enough and square enough to bring
the former Postmaster General before
it on the matter that can certainly
be cleared up" he said.
Il am insisting that he be called
that he may speak the truth, instead
of allowing the people to judge the
facts from innuendo"
Talking with newspaper men after
the Senate discussion. Senator Nc
Carran of Nevada. Democratic
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