Evening star., 1934-02-16
j. s. AIR SUBSIDY
NOW UNDERSTUDY
Direct Grant Considered to
Save Service After Con-
tract Loss.

Continued From First Page)
the American: David K. E. Bruce
of Baltimore and Robert Lehman
among the distinguished Democrats"
who, he said. have a monopoly on
the foreign airmail service"
Postmaster General Farley" Fish
said, makes only sweeping charges
which are nothing but glittering gen
eraltties for canceling the domestic
sirmal contracts, mostly on the
ground that there was no competitive
bidding. I would call Mr. Farley's
attention to the fact that the PAN
American Airways Corporation, which
receives a subsidy of S6,0000 900 annu-
ally for transporting mail to foreign
countries, obtained it's contract also
without bidding, according to the
hearings before the Appropriations
Committee of the House of Repre-
sentatives.
Perhaps Mr.. Farley is too busy
mending the political fences of the
administration to realize that the
Pan-American Airways, whose chair
man Of the board Of directors is Cor
nelius Vanderbilt Whitney, a promi-
nent Democrat, and has on his board
David K. E. Bruce and Robert Leh-
man and other distinguished Demo-
Gratis, have a monopoly of the foreign
airmau service. What is sauce for
the goose is sauce for the gander.
Il note in the press a request to
the Army authorities that Col Lind
npTph'C comm iCCinT1 IN na
Corps be revoked for daring to send
a telegram protesting the cancella-
ton of airmail contracts. As a mem
Der Of the Officers Reserve Corps. 1
regret that any newspaper should
publish such an unworthy and con-
temptible request, which is in viola
ton Of the right of free speech, per-
sonal liberty and of American custom
and tradition. Unfortunately, 1t has
become the prevailing practice in re-
cent months to malign and attack
any American who dares to protest
against the autocratic and high
handed acts of the administrat ton"
Browns Request Granted.
Browns request to be allowed to
give his side Of the sirmail contract
controversy, with the stipulation that
his testimony might be used against
him in court, was made to the Sen
ate yesterday through Senator FeSs of
Ohio. In the letter to FesS, Brown
said insinuations and innuendos had
been used to justify the destruction
of the airmail service
Chairman Black of the Airmail III
vestigating Committee said the request
would be granted, and set the hearing
for Monday.
At about the same time that
Browns letter was received. Chairman
Mead of the House PoStofflce Commit
tee said his committee would hear not
only Brown but representatives of the
aviation companies whose contracts
had been cancelled.
The request for the controller gen
erals aid in halting excessive profits
on Army and Navy airplane contracts
was made by members of the House
Military Affairs Committee. McCarl
is attempting to draft the necessary
amendment to the 1926 aircraft act.
See Profits Curbed.
Members of both the Military and
House Naval Affairs Committees be-
leve the amendment he is seeking
would prevent excessive profits on
future contracts.
In their investigation so far. the
two committees have discovered gov
ernmental audits showing individual
concerns made as much as II per cent
on some contracts.
In one case, involving small pur-
chase, the profit was over 90 per cent.
And In another, a contractor-the
Consolidated Aircraft Co. of Buffalo,
N. Y.-agreed its profit was so high
that it sold so airplanes worth $4,000
each to the Army for 81 apiece.
In many instances, these contracts
were awarded without public competi-
ton, especially in the case of the
Army.
In New York last night Richard W.
Robbins. president Of Transconti-
mental & Western Air, Inc. issued a
statement saying he felt both Presi-
dent Roosevelt and Postmaster Cen
eral Farley have been misled In this
Rirnan matter"
Disputes Farley Views
Tns statement detailed the COM
panys position on the various points
raised by Farley In his letter to Sen
stor Black.
The documents cited by Farley to
show collusion in mail contract bid
ding were said by Robbins to show
instead that there was a series Of
disagreementS between the contrac-
tors
Mr.. Farley's letter to the Senate"
Robbins said, shows conclusively
that our company has not had hear
ing before his department or before
any other Governmental agency, and
this should be enough to make void
his so-called annulment order.
He did not include In his letter
to Senator Black and thus inform
the public that the Watres law, gov
erning the letting of airmail con-
tracts specifically limited the bidding
to those companies which had oper-
ated g scheduled daily air transport
service Of $50 miles in length for six
months prior to the advertisement for
bids.
Mr.. Farley has not named any
company that had the qualifications
named under the Watres law that
could have bid against us, and whose
bid we are supposed to have pre-
vented"
The statement said that the Gov
ernment made a substantial profit"
on airmail moving over T. w. A. in
1888.