The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-10-10
AVIATION NEEDS
FEDERAL HELP,
SEYMOUR SAYS
American AirIineS Chief
Warns Clark Howell
of DANGERS.

Congress must come to the cid
Of the air transportation industry
with remedial legislation If the in
dustry is to be saved from destruc-
ton.
This is the statement Of Lester
d. Seymour. president American
Airlines. Inc, which serves Indian
apOlis. as expressed in an open let
ter TO Clark Howell, Washington,
chairman of the federal aviation
commission.
Mr.. Seymours recommendation
include
Legislation readiusting rates for
carriage OF air mail to the extent
this is warranted by costs and by
services rendered.
Legislation which will afford relief
to companies whose investments are
endangered as the result Of limi-
tations in the number of lines they
may operate. and the relationship
OF these lines to officers and direc-
tors Of holding companies. which
companies in some instances are the
only source of funds available for
continuing operations.
Legislation which will permit the
federal government to assume own
ership and maintenance of all desig-
mated airWays and aids to aviation,
including terminal airports.
Subsidy Is Defended
Establishment Of a permanent
federal aviation commission charged
with the complete regulation and
administration of federal control
and assistance to commercial air
transport
Mr.. Seymour defends form of air
transport subsidy, comparing avia-
ton with rail and marine transport
tation; criticises the present air
mail setup, attacks duplicating reg
ulatory authorities, and urges con-
troll Of competition.
The history of all ground trans
portation for public use" he con-
tends, indicates quite conclusively,
If taken as a whole, that its costs
can not be borne directly by those
persons who personally happen to
make use Of it."
He asserts that there is no more
reason why the aviation industry
should be required to improve, de-
velop and maintain airwayS and air
ports than that steamship lines
should be required to carry the bur-
den of dredging. improving and
maintaining the harbors at every
port their lines chance to touch.
Recalls Railroad Aid
Referring to the railroads, he re-
calls the grants of land given the
roads in the early days. and the
money raised by local communities
in bond issues to attract the rail-
roads.
Switching to a discussion of last
winters cancellation of air mail
contracts and eventual awarding of
temporary contracts under new reg
ulations, Mr.. Seymour defends the
grouping of various air lines under
large systems as productive of eco
nomical and improved operations.
The answer to the question of
why companies now carrying the
mail bid such low prices when do
nestle routes were reopened to
competitive bids is not difficult to
discover" Mr.. Seymour wrote.
They we're forced to 90 so to pre-
serve their investments along the
routes which they have been flying,
to provide usefulness for aircraft in
which they already have large in
vestments, or to protect undelivered
aircraft for which they were COM
mitted to manufacturers and the
orders for which could not be can
celed.
High Taxes a Problem
Mounting taxes are another prob
lem of air transport firms, Mr.. Sey-
mour said, adding that probably the
most dangerous of all such taxes
are those levied by states on gaso-
line. In one state. he said. one
company is required to pay more
taxes mounting to many thousand
dOllars) on the gasoline it has to
buy in that state, than it receives in
the entire passenger revenue derived
in the state.
He proposes the setting up of a
governmental agency to decide what
routes, either for national defense
or economic reasons, should be elig-
ible for assistance from the gov
eminent.
He attacks the multiplicity of
regulatory authorities which result
in extra expense to the lines.
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