The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-03-12
BY GEORGE DAVIS
Times special Writer

BY GEORGE DAVIS
Times Special Writer
The business Of transporting air
mail has been so financially IN
profitable in the last three years
that not one company has paid a
cent of dividends TO stockholders.
That, briefly. is the answer Of
Colonel Eddie Pickenbacker, presi-
dent Of the indianapolis Motor
Speedway. 10 the charge that the
contractors have been paid sums far
in excess Of the service they pro-
vided.
Il believe that neither official
Washington nor the public under
stands the situation clearly" Colonel
Rickenbacker said There is talk
Of huge profits stock market specu-
latlOn. fortunes quickly won and
lost. Every one, lacking proper in
formation, jumps to the conclusion
that the air mail contractor has
been rolling in wealth. That is the
bunk.
But remember that none of that
money came from the government"
he went on. The money the air
mail contractor got from the gov
eminent went to pay rolls and gas
and oil and for developing and
purchasing new equipment"
Loss of S2,OOOOOO
Colonel Rickenbacker. as vice
president of North American Avi-
alton Corporation, is directly con-
nected with Transcontinental and
Western Air.
That company" he said. after a
check of the books. has lost more
than S20OO,OO0 since 1880, when the
contracts we're awarded and after
the sO-called 'clandestine meetings
were held.
We have studied the situation
thoroughly, and the company col
lected less from the government
than the government collected in
stamps for the mail carried over the
line. The department says it re-
ceives in postage about 2 mills per
pound mile. We got less than that"
Revenue on Some Lines Scant
The deficit came largely from
lines serving territories with scant
population and little mail business,
he said, pointing out that it cost
just as much to operate plane IN
those areas as on the busy runs.
There is an immediate vital need
for a clear. definite policy to govern
the future of the air mail, he de-
clared.
If the government wants to ex-
tend the air mail service, to take
in more and more cities, to foster
aviation development by enCOurag-
ing commercial operations, then it
will have to pay the bill" he as
serted.
Must Fix Policy
IF it is concerned only with
economy and a complete disregard
of the development of aviation then
it can haul mail cheaply"
The government should make up
its mind which communities are to
have air mail, he said. likening a
small city to a farmer being served
by the rural free delivery.
"A farmer is given mail service
to his door" Colonel Rickenbacker
said. The hostages does not nearly
cover the cost of that service. But
the farmer is entitled to the de-
livery We as a nation feel he should
have it,
Only Fraction of Total Loss
Colonel Rickenbacker. consulting
reports of poStoffice department
finances. declared that the air mail
loss represents only a small fraction
of the total mail loss.
Every one seems to think re-
Gently that the air mail operations
have cost the government a ire
mendOus amount of money and that
If there are no more subsidies or
bonuses the pOStoffice department
Will be out of the red he said.
Let's look at the figures. The
air mail in the 1882 fiscal year. lost
Sl7755O87. while the loss on ham
ding first, second. third and fourth
class mail was sl61 576338.
Trucking Among Items
The poStoffice department charged
up S23.77l.3 for domestic air mail.
but the contractors got only S19.-
939.133. Apparently about $780,
600 was added for trucking mail to
airport and other services.
Payment TO contractors has been
cut almost 5000 900 and the re-
ceiptS have gone up The next
statement Will show the air mail
loss is much smaller"
Army spokesman have explained
that they want TO carry the mail to
learn exact cost of the service,
Captain RicHenbacker said.
Denies Mystery
But there is no mystery about
it." he declared. The poStoffice
department at frequent intervals
has audited the books of every con-
tractor and knows to a penny the
cost of hauling mail in every state
and every type of plane.
The department. remember, tells
the contractor when his p n
should leave and arrive. the type of
plane he should use. the number If
engines, the speed and the capacity"
RlCkenbacker retains the veteran
pilots hatred Of poor flying equip
ment. A trace of anger enters into
his voice when he speaks of crates
that make man ride a parachute
every minute and flaming COT
fins
Got Back Into Action