Evening star., 1934-02-07

the Senate Investigating Committee
the fullest cooperation and assist
ance in its task Of uncovering all the
facts regarding airmail contracts
and for the purpose of acquainting
the present administration of the
Post once Department with these
facts, to the end that it may be in
a position to take such action rs will
fully protect the public interest.
4 cannot at this time discuss what
action the department may find ad-
and there will be no unnecessary de-
lay in reaching a decision
There are "a domestic airmail
routes, covering some $4,000 miles, as
we'll as more than half dozen for
eign routes, extending through the
West Indies, Central America and
South America.
For carrying domestic airmail
more than s23 600, 900 was paid last
year, while revenues amounted to a
little more than $4,000 900, leaving a
deficit OF $l6,9l7,414
Foreign Cost S7,10o,0o0.
Foreign airmail operations cost
$7.l00,0O0. while receipts we're S942-
900, leaving a deficit in that branch
Of over s6.200,0O0.
When the committee resumed its
hearing, Bruce, Memphis flooring
manufacturer. testified that speclfica-
tions for flooring in the Chicago post
office were drawn SO as to fit the
Bruce patented cellized wood block.
Another concern got the contract
he said, but the Bruce company forced
it to use its product, threatening to
claim patent infringement otherwise
Bruce testified that Bagley obtained
the Chicago business.
Did Bagley get contract so that
you had a virtual monopoly on Gov
ernment business?" Chairman Black
asked
In the first specifications in Chi
cago that was virtually true
In Operators Conference.
The inception of a Washington
conference Of aviation operators in
May. 1880. was outlined by Wads-
worth in his testimony. He read a
memorandum to himself from Glover
saying the Postmaster General
wanted to approach the question CT
giving aid to passenger lines
Brown was chairman Of the meet
ing, Wadsworth testified, at which
were represented Western Air Express
Stout Air Lines. T. A. T.. Aviation
Corporation. United Aircraft, E. A. T,
National Air Transport, Pittsburgh
Aviation Industries. United States
Air Transport, Erie Halliburton and
Lawrence King.
Wadsworth read from his owr
notes. quoting many of the assembled
heartily in favor Of an arrangement
without competitive bidding.
Glover, Wadsworth said. was dis
satisfied with the division which the
operators worked out, telling them
they had taken the meat and left the
bone"
Questioned on Extensions.
Chairman Black questioned Wads-
worth as to the granting Of airmail
extensions. obtaining agreement that
many Of the recommendations made
by the operators at the conference
we're carried out.
The contract from Pittsburgh to
Washington went to Pennsylvania Air
Lines. a subsidiary of Pittsburgh Avia-
ton Industries, Inc. he said. The
latter. he agreed, had no actual flying
operations at the time.
Wadsworth, questioned as to whether
any one outside the Post Office De-
partment had anything to do with
preparing airmail contract specifica-
tions. read suggestions purportedly by
MacCracken.
The suggestions included require
ment for two-way radio, provision for
larger mail payments than required
in the contract. beginning Of service
within two weeks and various other
items.
Did you change the original ad-
vertisement after you received those
notes?" Black asked.
"Oh. yes, you'd hardly recognize it"
''It was changed in the Postmaster
Generals ofice and by me under the
authority Of Mr.. Glover" he added.