Evening star., 1934-02-18

ACGCoCdIy.
Although he will call up this mea-
sure tomorrow, If it leads to any de-
bate it probably will have to be de-
ferred, since Senate leaders have
worked out an agreement to consider
the Government pay restoration pro-
gram and other economy changes in
the independent offices bill during the
next few days.
In reporting favorably the Nickel
lar bill specifically to authorize the
Postmaster General to handle airmall
with War Department facilities, the
Senate Post Office and Post Roads
Committee said this authority prob
ably existed under previous statutes,
"but your committee thought that
specific authority should be given in
this case
One section of the bill authorizes
the Post Office Department to use
unexpended balances of this years
appropriation to pay the War Depart
rlent for expenses incurred in ham
ding airmail.
In authorizing the making Of one
year contracts with individuals or
corporations. the bill provides that
the authority granted herein is in
tended only to authorize the Post
master General to supplement mail
service being provided by the War
Department when and wherever he
deems it necessary
Three Months Limit.
The authority to make these con-
tracts would last for one year, but no
contract would be made for longer
period than three months. Fer the
first three months period contracts
could be made without advertising or
competitive bidding, but after that
time there would have to be adver-
tising and competitive bidding on all
contracts. The Postmaster General
would have to submit a report to
Congress on all these contracts with
in 80 days after each contract is exc
cuted.
AS amended in committee, the bill
places a two-year time limit on the
power of the War Department to fur
nish the Post Office with airmail
carrying facilities.
While slashing the airmail allow
ance. the Senate Appropriations Com
mittee increased by nearly 81 900 900
the House appropriation for railway
mail and messenger service and, in
addition. increased the appropriate
for railway mail by more than
100000.
Emergency Bill Approved.
The House Post Office Committee
also approved an emergency airmail
bill, but in so doing struck out sec
tions which would have allowed the
Postmaster General to make contracts
With private carriers. The bill limits
the temporary airmail service to one
year.
Chairman Mead said the effect of
the amendments was to make the car
riage Of sirmail exclusively a task of
the Army until permanent legislation
could be enacted The bill will be
brought before the House as soon as
the tax bill passes Tuesday and the
committee will then start hearings on
permanent legislation.
The bill as ordered reported merely
authorizes use Of Army planes and
equipment to carry the airmail for a
year and provides for the transfer
of funds to meet the cost. The original
bill allowed the Postmaster General
to make temporary contracts for not
more than a year and also to make
three-month contracts at not more
than 40 cents per airplane mile with
out competition. These. provisions
were eliminated when the Post Office
Department said it would not insist
on them. They are still retained,
however, In the bill which has been
reported out Of the Senate Post Office
Committee.
Llndbergh May Appear.
The possibility that Col. Lindbergh
will be asked to appear before the
Senate Airmail Investigating Com
mittee had become stronger yesterday
with the disclosure that he had stock
option warrants from the Pan-Ameri-
can Anyways including 10000 shares
redeemable at $50. On this basis, it is
calculated that when the stock was at
its peak of over S89, in 1929. Col.
Lindbergh had g. paper profit of ST.
5000.
According to one Of the Senate in
vestigators. the total Of the stock op-
ton warrants given Col. Lindbergh
was $4,000 at SIS. On this basis, his
paper profits would have been close to
$4,000, 900.
1t is said, however. that he was still
holding large amount Of these op-
tions in 1881 and, therefore, never
made anything like the total of the
paper profits. Col. Lindbergh had q
stock gift Of $4,000 shares from Trans
continental Air Transport. This stock
reached high of about $40, and on
this. 1t is calculated, ne had paper
profits of about s1000,0Oo
In the course of the hearing before
the Senate Committee, however, it
had developed that different leaders
in the aviation movement had large
paper profits which were never real
lied, or never fully realized on. In
this respect, Col. Lindbergh is said to
have had an experience like not a few
other aviation pioneers.
Studies Pan-American.
The committee refused to make a
statement as to the financial end of
Col. Lindbergh's aviation affairs, but
admitted it was studying the records
Of Pan-American Airways in all their
important phases and that it had in
formation about the stock option
warrants which Col. Lindbergh had
given in response to a queStionnaire.
1t was stated that there has been no
decision as to calling Col Lindbergh,
but that If it is believed he can throw
any important light on airmail con-
tracts he will be asked to testify.
Democratic members of the COM
mittee expressed satisfaction over the
outcome Of the first challenge in the
courts Of the right Of the Government
to cancel the airmail contracts, when
the Federal District Court in the
southern district of New York refused
to take Jurisdiction Of an action by
Transcontinental & Western Air to
restrain cancellation. While there
will be an appeal to the higher courts,
the disposition in the committee is
to think Judge John C. Knox was on
@.~1s