The Western news. [volume] (Libby, Mont.) 1933-current, 1934-03-01
SEEN and HEARD
around the
National Capital
@S BY CARTER F1ELDs

CARTER FIELD-
Washington. Democratic gray
boards have not yet recovered from
the shock of President Roosevelt's
In favor Of direct and
undIsguised ship subsidy. The Dem
ocratic party has been on record
against ship subsidy since Its oldest
member can remember. In fact, II
seemed to have the popular side of the
issue, for 1t had the Republicans In
undated. That Is why the Repub-
licans, who always favored ship sub
sides, disguised them under the term
mail subventions." This later De-
came "mall contracts" at which point
1t became ridiculous. for the ship lines
were not paid for carrying the mall,
but because they could carry it-ln
short, for military reasons, with small
economic flavor added about encour-
aging exports.
President Wilson. who had much the
same ideas about private profits that
President Roosevelt holds, was early
converted to the necessity OF an Amer
lean merchant marine, for national
defense and economic reasons. He
talked Of department stores permit
ting Its deliveries to be made by
competitor, as illustrating the absurd
ity OF this country's expecting to get
Z square deal In foreign trade II Its
exports were carried In foreign ships.
But to hit at private profit, he pro-
posed government ownership OF the
shipping lines to be subsidized.
Roosevelt swings back to ship sub
sides, but sugar-coats the pill for the
old line anti-subsidists by hitting air
mall subsidies at the same time.
The White House position, boiled
down, Is that ocean lines still need
government subsidy because OF higher
rates OF pay, etc, whereas aviation
has passed the swaddling clothes stage.
Air Mail Problem
In view of President Roosevelt's
frank admission In announcing cancel
lation of the air mail contracts that
he and Postmaster General Farley and
other advisers had not yet made up
their minds whether the government
should operate the air mail permanent
ly. or whether at the end of the "emer.
pencyn the business should revert to
private contract, 1t Is rather surprls
ing how little sentiment for public OPP
GRAFTON has developed.
For various reasons members OF ths
house and senate, who normally arr
very strong for any form or phase O.
action by the government, shrink from
the idea OF the governments operating
planes for carrying the mail.
One reason, of course. is that unles
the government should decide to g
the whole hog, there would be an alb
surd duplication of facilities. Thus, !
the government should haul the NAL
In its planes, but should not carry pas
sen9ers or express. then presumabl
private airplane companies would con
tinue to handle the passenger and e1
press business, while the government
would haul the mail
Chairman Mead OF the house pos
office committee figured that II th
Post ONCE department paid the arm
the precise cost OF operating sufiicier
planes to handle the mail, the cost
the government would be more tina
twice the cost to the government eve
under the absurdly high-in the vie
OF Mr.. Mead and most government 0
flcials-cost OF the payments under tn
contracts just cancelled.
According to Mr.. Mead, the cost
the government, If the post office pa
the precise cost of handling, would
$30, 100000 year, whereas the cost
the government under the contrac
Just cancelled was only $14,OO0,OOO
year.
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