Evening star., 1934-03-08
LOAN TO GLOVER
ASSISTANT Barred
Henderson Tells Probers
He Later Cancelled $10,-
600 Debt to C. C. Cove.
Continued From First Page.)

HenQelSOIl Sdlu liC WIN WV
know if you ever get $4,000 you'll
pay me"
The United Aircraft official, a for
mer Second Assistant Postmaster
General. said Cove had been in the
department when he took ot1ce.
Gove's ability, Henderson said, was
such that he promoted him to chief
clerk in six months.
Henderson, explaining the loans,
said
L became very fond of him per-
sonally and an unusual friendship ex-
listed between u.s."
Henderson denied that he had been
q partner in Gove's stock account
but conceded that he had told Cove
he ought to share in some of the
profits if any were made.
Cove came to me almost with tears
In his eyes" he said, 'and wanted to
give me a second mortgage on his
home"
Warm Debate in Progress.
Meanwhile warm debate over Presi-
dent Roosevelt's call for private air
basis was in prospect.
There were indications that Re
publicans will have much to say when
the legislation reaches the floor Many
in their ranks have openly accepted
the airmail situation as an issue.
Senate and House committees
fastened to whip into bill form the
Presidents suggestion for the return
of the mails to private carriers or
the basis of honest payment fol
honest service"
The President, in a letter dis
patched suddenly to the Capitol last
night, suggested speed in letting new
contracts. And to avoid evils of the
past" he proposed these ideals foI
legislation:
That contracts be let for a perioC
not to exceed three years on COM
petitile bidding basis, with maximum
compensation rigidly fixed.
That any combinations, agreements
or understandings intended to prevent
free competitive bidding be prevented
and be the basis for cancellation
That only speed, useful load capa-
city and safety factors and devices
be considered in determining Specih-
cations for proper equipment so as
to make certain that bidding be really
competitive.
Six Months to Qualify.
That after an award is made a
period of six months be allowed the
successful bidder to qualify under the
terms OF the law and his bid
That six months before contracts
made under competitive bidding ex-
pire the Interstate Commerce Com
mission pass upon the question of
public convenience and necessity OF
airmail routes and thereafter fix a
maximum rate of mail pay.
That companies having connections
with subsidiaries, afflliates or holding
companies, directly or indirectly" be
prohibited from receiving contracts
That no contract be sublet or sold
to any other contracting company
and no contractor be allowed to merge
or consolidate with another company
holding a contract
That excessive salaries, unearned
bonuses and large personal expense
accounts be prohibited.
That maximum flying hours. mini
mum pay and retirement benefits be
provided for pilots.
One suggestion appeared certain to-
day to be surrounded by considerable
debate. Mr.. Roosevelt said:
obviously. also. no contract should
be made with any companies. old or
new, any of whose officers were party
to the obtaining of former contracts
under circumstances which were
clearly contrary to good faith and
public policy"
Republicans Voice Views.
Republican opponents of the con.
tract cancellation have contended pri-
vate contractors had no hearings to
establish their individual guilt or in
nocence on these points.
Both Senator McKellar and Repre-
sentative Mead. chairmen of the Sen
ate and House Post Office Commit
tees, indicated the bills would be
ready swiftly.
McKellar said his might be reported
to the Senate by Friday.
Chairman Mead said a House post
Office subcommittee would start execu-
tive hearings Tuesday on the new
legislation.
Our understanding is that the
President is willing to deal with these
companies provided they reorganize," ="
Mead added.
There is no other possible interpre-
tation of the Presidents letter.
Three large holding companies
owned and controlled 80 per cent of
the airmail mileage in the United
States with only three so-called inde-
pendent lines in the picture, and even
they have stock interests in or by
other lines
Letter of President.
The text of the Presidents letter to
the chairmen of the congressional
committees follows:
My Dear Mr. Chairman:
Our domestic airmail contracts have
been Cancelled. The Army Air Corps
Is temporarily carrying the airmail.
believe We should make new con-
tracts with commercial air carriers
as soon as possible to carry the greater
part of our airmail.
To protect the public interest and
TO provide for new contracts on a
basis of honest payment for honest
service. suggest new legislation on
this subject.
We must avoid the evils of the past
and at the same time encourage the
sound development of the aviation
industry.
I suggest that new airmail con-
tracts be let for a period not exceed
ing three years on full, open and fair
competitive bidding, with limitation
of the rate of compensation, above
which no contract will be awarded.
Any combinations. agreements or
understandings intended to prevent
free competitive bidding should be
prevented, and such action should be
Q basis for cancellation of contracts.
In order that the bidding shall be
really competitive, I suggest that in
IatsryoipipU the cnnrif1cati0nS for