Evening star., 1934-02-11
SUBSIDY OF OCEAN
MAIL SCRUT|N|zED|
Action Similar to That Taken
on Air Contracts Is
Hinted At.
eContinued From First Page.)

channel and have been largely spent
In high salaries, extravagant expense
accounts, highly paid lobbyists and
huge dividends"
Information following the general
nature of this comment has been
made available to the administration.
The problems which might arise
from any general cancellation of
ocean mail contracts, it was pointed
out, however, would be somewhat
more difficult than those in the air
mail contract cancellation. In the
latter instance, the Postoffice Depart
ment had completed within "a hours
of the cancellation, complete skele-
ton plan for the Army to fly the
mail.
In the instance of ocean mail con-
tracts, the distance and volume Of
the mail would Immediately preclude
use of planes to any extent. How
ever, it was pointed out that here
again the War Department, as well
as the Navy Department, could be of
assistance, the War Department
pinch hitting with troop transports,
which are constantly in operation,
and the Navy with ships of varying
size and speed.
1t was noted, however, that the cost
of operation of these carriers would
be vastly greater than those of air.
planes substituting for private car
riers of mail.
The administration yesterday dis
closed that it was giving serious con-
sideration to action on airmail con-
tracts involving carriers to foreign
countries, primarily to Caribbean
islands, Central and South America.
While Army planes could be sub
stituted in those services until new
contracts were made, postal author
tiles were confronted with a number
of technicalities arising out of treaties
with other nations. The use Of air.
craft belonging to the fighting branch
of the Government was one of these
complications.
Only Temporary Measure.
In a press conference during the
day, Harllee Branch. Assistant Post
master General in charge of airmail,
emphasized throughout an hour OF
talking the idea that the use of the
Army planes for domestic airmail was
intended only as temporary measure.
While he worked out the details of
the Army operations in long con-
ference with Maj. Gen. Benjamin
Foulois, chief of the Air Corps, and
Eugene Vidal, Assistant Secretary of
Commerce for aviation, the discus
sions all were understood to be pred
icated on the pinch-hitting plan.
There arose, in fact, the possibility
that no Army plane ever would take
off with load of mail
It was pointed out-and given sub
stance by officers Of the lines them
selves-that independent private lines
could carry the mail until the long
process of advertising for, considering
and awarding bids for new contracts
had been completed At least three
independents and one present con-
tractor made such offers and each was
taken under Amusement by the Post
office Department.
The Varney Speed Airline, a Cali
fornia concern, offered to carry the
mail on West Coast route; the
Braniff Line of Oklahoma City in
formed the Post Office Department it
was outfitted to fly the tranSconti-
mental mail, New York to Los Angeles,
or to fly the route from Chicago to
the Gulf of Mexico, and C. E. Wool
man of Monroe, the Delta Air Cor
poration, volunteered to carry mail
from Atlanta to Fort Worth.
The Eastern Air Transport, operator
Of the eastern seaboard route from
New York south through the Ma
tional Capital, offered every possible
assistance" to the Army and the Post
Office In turning over its route to the
Government at the expiration Of its
contract on February 19.
Continued Service Planned.
While these developments shaped
up in Washington, there came pro-
tests from dozens of contract oper-
ators.
Generally, they made plans to carry
on with their passenger and express
flying operations even though the
Government clipped off a substantial
portion of the incomes with the sub
Sidy cancellations.
Almost universally, they demanded
4 hearing by the Government. The
Government, through the Post Office
Department, indicated it would turn
Q deaf ear to these requests, however
Branch, at his press conference, said
there was no need for a hearing, that
the cancellations had been done and
the case was closed.
There was suggested to postal off,
cials by the news men the possibility
that some of the big companies might
reorganize and bid for their old con-
tracts. Branch indicated that while
this would not be disapproved en-
tirely, that Postmaster General Farley
would require assurance that it was
sreally reorganization"
AZ the plans for Army mail flying
began to take shape, it appeared that
the immediate program would call for
maintaining virtually regular sched-
piles over the main lines touching the
Federal Reserve Bank cities, points
where the speed of airmal has come
TO be essential to business.
After these main lines are put into
action, the smaller lines will be at
tended to, although the postal officials
indicated that the frequency of sched-
tiles might be reduced in some in
stances.
Bill to Be Ready Soon.
yhs question of landing fields also
trose during the conferences Of the
Postal, Army and Commerce Depart
nlent officials. 1t was expected that
the majority of the 167 landing fields
now used for mail service would be
continued under the Army operation
plan.
n any instance arises where the
contracting company controls the field
end declines to allow its use by Gov
eminent ships. nearby Army or Navy
flying fields, or the emergency landing
nslds maintained by the Commerce
Department, can be pressed into
service.
Meanwhile, convinced that the
Army would need more airplanes to
carry the mails, Chairman McSwain,
Democrat, of Georgia, of the Military
Affairs Committee said his bill to pro-
vide $500 additional airplanes would