The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-03-09
new AIR MAIL
BILL STUDIED
BY CONGRESS-
Honest Contract Letting
Is Emphasized by
Roosevelt.

WASHINGTON, March Com
gress moved rapidly today to shape
President Roosevelt's recommended
lions for turning the air mail back
to private operation into legislation.
Senator Kenneth Mcclellan Dem,
TENN, chairman of the senate COM
mittee on postoffices and post roads.
predicted that his committee would
report a bill along the lines sug-
gested by the President within a
few days.
Representative James M. Mead
dem, ~ ", chairman OF the
corresponding committee in the
house, which has already recon-
mended a bill more drastic in some
respects, was less enthusiastic, but
commented that the two plans seek
to achieve the same detectives. He
is taking the Presidents letter up
with his committee today.
Aviation Companies Dismayed
Meanwhile, officials of large avia-
ton companies greeted the new plan
with diSnayed silence for the most
part The Presidents statement that
obviously no contract should be
made with any companies, old or
new, any of whose officers were
party to the obtaining Of former
contracts under circumstances
which were clearly contrary to good
faith and public policy will auto
matically retire many of these OIL
Gals from the aviation industry.
While no statement was forth
coming from any Of the companies
represented here, American Always,
second largest company, has no Off
GERS who were involved in securing
the contracts under congressional
scruting, and so it is presumably in
better position than the others.
Il am one hundred per cent Tor
the Presidents recommendations"
said Senator Mcclellan. Il can not
express myself too enthusiastically.
They are splendid in every particu-
lar and will tend not only to end
the old abuses, but to encourage the
real aviation industry.
Honesty First of All
The President emphasizes first of
all honesty in the letting OF con-
tracts. honesty in operation Of the
industry, honesty toward the public.
His proposal to do away with inter
| locking directors and officials, to
| terminate the evils of affiliates and
subsidiaries, to prevent consolida-
tons after the awarding of con- 4
tracts, the elimination of officers of
the old companies who were parties
to the practices complained of, the
limitation of salaries and bonuses
to curb excessive profits-all these
recommendations are so sound and
necessary that I can not commend
the statement of policy too highly"
Senator Hugo Black (Dem., Ala,
chairman of the special committee
which has investigated air mail sub
sides, was equally pleased.
Il am thoroughly in sympathy
with the Presidents SUGGESTIONS he
said. They are along the lines
which evidence developed before our
committee has shown is necessary
in order to establish our air trans
port system and carriage Of mails
on a fair and Just basis to both pub
lie and operators.
THE fact that in as reasonable
time as possible the interstate COM
merce commission will be called on
to pass upon certificates on con-
venience and necessity, and rates
will give a stability to the business
itself and an assurance Of fair
treatment which should cause the
entire aviation industry to move
forward"
Open Bidding Opposed
Representative Clyde Kelly rep,
Pa, ranking minority member of
the house pOstoffice and post roads
committee and author of a measure
for return of the air mail to private
companies, said:
Il am strictly opposed to any
legislation providing for open bid
ding for the airmail on the pound
mile rate. The house committee
has determined that two mills per
pound mile for mail carried can be
paid out of the present air mail
postage revenue. My measure pro-
vides for that. 1t also prohibits
absolutely any holding companies
/ and interlocking directorates.
ct will be disastrous if all these
! air mail routes are declared to be
! through routes and throw open to
! bidding. 1t will mean attempts on
| the part of fy-by-night companies,
stock promoters, and so forth, to
enter into cut-throat competition
with pioneer lines. We have reached
the stage in our experience where
we can fix rate without any bar
gaining or juggling"
Fees Raps Roosevelt
However, Democratic members of
the house committee were inclined
to rally behind the Presidents sug-
gestion. Representative Martin L.
Sweeney Dem, o. Endorsed the
Presidents plan and predicted that
it would be incorporated in the
house bill.
Senator Simeon D. Fees (Rep.,
o., whose son, Lehr Fees, was, ac-
cording to recent testimony, en-
ployed by United Aircraft and
Transport Company to expedite"
legislation they desired, set his face
against the Roosevelt plan today.
The President should admit that
he was misled in the cancellation
of the airmail contracts" he said.
There IS no need for new legisla-
ton governing the air mail. New
contracts could have been made
without all the current controversy,
and under the existing laws. Any
new rules and regulations govern
rir -