Evening star., 1934-07-26

10 raise a political issue or 10 dis
credit the administration. they took
no account Of the fact that on the
very day the Army Air Corps COM
menced fiying the mail there began
a month of the worst flying weather
experienced since the Inauguration of
the afrrnsil service. and they ignored
the fact that at the same time Army
pilots we're crashing pilots Of passen
ger transport planes not carrying the
mail were also crashing.
Right here I wish 70 take advantage
Of this opportunity TO paw . well-de-
served tribute 70 Gen. Benjamin d.
Foulois, chief Of the Army Air Corps.
and his officers and men for the
splendid service which they rendered
the country during an emergency and
in the face Of many difnculties. When
the true story Of their performance
is written by dispassionste. nom
partisan. non-political historian it
will be one of which these officers and
men themselves and their countrymen
may well feel proud
Let as for a moment consider the
results OF the annulment OF the old
contracts.
First. the illegal and fraudulent
contracts with exorbitant rates of pay
to favored few we're terminated.
Second, new and vastly expanded
airmail system was set up. under
which contracts were let by open COM
petitive bidding at q saving OF many
millions Of dollars to the American
taxpayers.
Compan and Contracts.
Prior TO the snnulment Of the old
contracts % per cent OF all the air
mail carrying companies were owned
or controlled by three large holding
companies. There we're l3 companies
holding contracts. Today there are
10 companies holding contracts and
Congress has passed a law which re-
quires the divorcing Of holding and
manufacturing companies from op-
Grating companies.
The new airmail law, passed by the
recent Congress, with many Of its
most important provisions written in
at the suggestion of the President, will
restrain monopolies in the air trans
port busineS
Affiliations as to stock ownership
between two or more air line COM
panies is forbidden, as is the inter-
locking Of directorates.
Under the previous arrangement.
there was little or no competitive bid
ding because, in many instances. the
same people owned manufacturing
companies as well as transport COM
panies and there were interlocking
stock interests and interlocking off,
GERS and directors.
AS a consequence the Government
had to pay exorbitant prices not only
for carrying the mail but for air
plane parts used by the Army and
the Navy
The new law fixes the maximum
base rate of pay for new contracts at
33ls cents per airplane mile for the
transportation of a mail load not ex-
| ceeding 800 pounds and 1/10 of such
base rate for each additional 100
pounds of mail or fraction thereof.
1t provides that in no case shall pay
ment exceed 40 cents per airplane
mile
The total route mileage OF the en-
tire country and its island possessions
is limited to $4,000 miles and the
mileage TO be flown in any one year
is limited to 100000.
l.. C. C. to Fix Rates.
| An important section of the new
law provides that after the expira-
| ton of existing contracts the rates
and methods of pay for airmail con-
tractors shall be determined by the
| Interstate Commerce Commission and
that commission is required, at least
once year to review the rates of
, compensation being paid each con-
tractor, in order to be assured that
no unreasonable profit Is being de-
rivedIby the contractor.
I'll commission is authorized to
audit@the books and accounts of all
airmail contractors.
The new law requires that the De-
. partment of Commerce, through its
kAeronautics Bureau, shall prescribe
The character of equipment and safety
devices to be employed on each air
mail route.
The Secretary Of Commerce is di-
rected to prescribe the maximum fly
ing hours Of pilots on airmail lines
and the safe operation methods for
such lines.
1t is expressly provided In the new
law that 'ft shall be condition upon
the awarding or extending and the
holding Of any airmail contract that
the rate of compensation and the
working conditions and relations for
all pilots, mechanics. and laborers en-
ployed by the holder of such contract
shall conform to decisions of the Ma
tional Labor Board" This section
further provides that nothing con-
tanned therein shall be construed as
restricting the right of collective bar
gaining on the part Of such employees.
Contracting companies are pro-
hibited from holding more than three
separate contracts for carrying air.