Evening star., 1934-03-04
Difference OF Opinion.

There Is wide difference Of opinion
as to what shall be done about the
question Of restoring mail contracts
to the companies which have been
punished by cancellation Of their
contracts. Under the terms Of the
postal regulations invoked by the
Postmaster General In his cancella-
ton order, the former operators are
barred automatically for five years
from entering into any contractual
relationship with the Government.
There Is pending a proposal that
the Government shall refuse to con-
tract for carrying Of the mails with
any holding company, or subsidiary Of
a holding company. This proposal, OF
couse. Is intended to break up the
existing airmail combines. There is
another proposal that the former
contractors be permitted to fly the
mails again, the five-year penalty
clause being revoked SO this may be
done It also has been urged that
suit be instituted against the former
contractors for alleged overpayments
made to them or that they be pun
ished by reduction Of payments under
any new contracts which may be
awarded-a sort Of installment plan
punishment.
Studies Being Made.
The Army Air Corps. in addition
to playing its part in the emergency
airmail program by taking over the
operation Of the service, Is participat-
ing In the studies upon which will
be based the future airmail policy.
At the beginning Of its airmail
activities, prior to the actual flying
by Army pilots Of . single pound Of
mail, the Air Corps took steps to
establish q well-organized cost ac-
counting and audit system to check
on its expenses incidental to the
carrying of the mails
1T Is my belief" Maj. Gen. Benja-
min D. Foulois. chief of the Air
Corps, said, that airmail operations
by the War Department might well
be carried on over a sufficient period
Of time to enable the chief of the
Air Corps to furnish basic and COM
prehensive facts upon which future
estimates Of airmail costs may be
equitably determined"
It is quite probable that Congress
will insist upon detailed examinations
Of airline accounts as q basis for
determining future rates Of pay and
it has been suggested in this connec-
ton that Federal inspectors be main
tanned at company headquarters.
Rates Favored.
The rate of payment which has
been favored by members of the
House committee is fixed at 2 mills
per pound mile. with a maximum OF
so cents per mile. This means that
operators will be paid $50 for carrying
$50 pounds of mail 100 miles. Since
this is the maximum rate which can
be paid, the operator must carry al
his own expense anything over 25C
pounds.
On some lines, where mail ane
passenger traffic both are light, 1t Is
proposed that q small subsidy be
paid. According to the House COM
mittee plan this subsidy would moi
exceed IS cents a mile and the tctal
subsidy and mail payments would be
limited to so cents mile. This 25-
cent subsidy rate would be scaled
down to 20 cents after the first year
and reduced S cents each subsequent
year, disappearing entirely after five
years.
Against Subsidy.
It Is argued that there should be
no subsidy; that aviation should be
made to stand on its own feet. This
Is as II to say that steamship lines
must receive no Federal aid, that they
must construct their own harbor
facilities. dredge channels, place
buoys and erect lighthouses: that
railroads must not be aided by the
people through the granting Of rights
Of way; or that motorists must build
their own roads.
Transportation Is public necessity.
It's benefits how to all. Discontin-
uance or slowing up Of trafnc would
be felt by al levels Of society. All
forms Of transportation have been
aided by government; as 1t Il 70 the
interest Of all the people that they
should be assisted.
Aviation is Q new and struggling
industry. It is a. deserving OF sup
port as any other form OF transpor-
tatiou during the period Of establish
ment and development. The airmail
subsidy granted to aviation never has
been heavy, in comparison with the
aid which has been granted IN the
past to other forms Of transportation,
and which Is being granted to avia-
ton In other countries. Domestic air.
mail appropriations reached Q maxi
mum peak Of SIS, ,000, 900 In any single
year and Of this amount more than
half was returned to the Government
in the form Of payments for airmatl
postage.
Aid for Development
It Il the purpose Of Congress
through the new legislative program,
to make sure that whatever
aid the Government may give Will
60 into the development Of air trans
portation and not into the pockets
Of private individuals.
The value of airmail service to the
public may be dimcult for the layman.
who may or may not be . direct user
Of airmail service, to appreciate. It
has been stated that the savings In
interest represented BY the saving OF
time In dispatching Of bank checks