Evening star., 1934-02-14
ROOSEVELT PLANS
OUTRIGHT SUBSIDY
FOR OCEAN MAILS
Farley Served in New York
Suit-Drafts Reasons for
Air Cancellations.
FISTlCUFFS THREATEN
ON LINDBERGH WIRE
Fish and ByrnS Tangle in Debate
One Company Expected
to Get Review.
BY the Associated Press.

BY the Associated FIooS
President Roosevelt wants COM
plete reorganization of the ocean mail
contract system and favors an out
right subsidy in place of the present
form of Government aid to shipping
In ready answers to questions OF re-
porters who surrounded his letter.
piled desk at his press conference to-
day. it became plain the President is
weighing decision on the future OF the
airmail service along with many other
matters OF these days which were
topics in the organized interview.
Meanwhile. Postmaster General
Farley completed letter to CHAR
man Black of the Senate Airmall In
vestigating Committee, giving the ad-
ministration's reasons for Gancelng
all the domestic airmail contracts
Farley expected to make it public
during the day.
No Change FOreSeen.
His exposition of the airmail Situ-
alton. it was learned, will not recon-
mend any change in cancellation Oh
contracts.
One company, the name of which
was not disclosed. will be given
further review" of its case, though
Farley is expected to make no men
ton of it in his letter.
How soon the review would take
place, and whether any action Woulo
be in time to prevent its rellnqllSh-
ing the mail when the Army planes
go into action Monday, was not re-
vealed.
It was understood that the one
company which thus is not definitely
ruled out participated in an alleged
'sSnoils conference" at which routes
were apportioned, but did not come
with anything it didn't have before.
officials Opinion.
For this reason a review has been
granted it, but department othcials
said privately they did not expect 1t
to regain its former status.
An executive order opening income
tax returns of manufacturers of naval
airplanes was predicted, meanwhile,
by Representative McFarlane, Demo-
crat. of Texas. after a call upon Presi-
dent Roosevelt.
The rommittee was asked to go
ahead thoroughly with the present in
quiry.
McFarlane said the President was
preparing an order to let the COM
nnittee find out what returns we're
made by the contractors on their IN
come taxes.
Income tax returns are secret, but
the President has authority to open
them.
we are going to check and double
check these returns said McFarlane-
So far as ocean mail is concerned.
Mr.. Roosevelt is awaiting report
from that committee.
He emphatically believes the pres
ent Government aid for shipping
should be called by its right name-a
subsidy-instead of the subterfuge OF
mail contracts.
Papers Served on Farley.
He favors a Government subsidy to
keep the American flag on the high
seas, convinced that wages for Amer
lean sailors are higher than those
for other countries.
Papers were served on Farley for
his appearance in New York Friday
in the suit brought by Transcontl-
mental & Western Air. Inc, to re-
uuire the Government to show cause
why its contract was Cancelled. Col.
Charles A. Lindbergh is technical
adviser for the company.
Karl A. Crowley, Post Offlce De-
partment solicitor. said the Govern
ment would protest the service on the
ground that suit should be brought
here.
Crowley said he and the district at
torney in New York would appear for
the Government.
The papers were served by an at
torney for the airline, admitted to
Farlev's Office In the belief he was
United States marshal Crowley said
the attorney claimed power to serve
the papers.
Criticized by Early.
Farley today te1egraphed reply to
Charles A. Lindbergh's letter protest.
ing cancellation Of the contracts.
II Iindbergh does not make it pub
lie. he said. the text will be released
in Washington.
Stephen T. Early, secretary to the
President. criticized Lindbergh for re-
leasing his protest before 1t reacned
the President. 1t afterward was for
warded 10 Farley.
Representative Fish, Republican, OF
New York. announced today he would
protest on the floor the action of Pres
ident Roosevelt in cancelling the
contracts.
Senator Hastings, Republican, OF
Delaware issued a statement pre-
dieting that President Roosevelt
would restore most of these contracts
and blame his Postmaster General for
any mistake that was made"
The Army. Post Office and Com
merce Departments meanwhile an
nounced a complete schedule for
emergency airmail flying. touch
ing fewer cities and slowing flying
time, because of less speedy Army
than commercial ships
From the Army came a new bid
for Reserve officers nov employed as
air-mail pilots to join up for the
emergency"
From the House Military Commit
tee came word that a thorough in
vestigation will be made of charges
that "collusion" by an air trust had
put Army aviation 10 years behind
the times James v. Martin of New
York fathered the charges.