Evening star., 1934-03-28
Companies Must Reorganlze
in Order to Share in Con-
tracts Which Are to Be
Let Within Three Weeks.
THREE-MONTH TERMS
SET UP BY POST OFFICE
Few Small Concerns, New Ones
to Be Formed Within Few Days
and Those Which Purge Them
selves Will Be Permitted to
Offer Bids.

Temporary contracts with CONNER
cial air lines to transport airmail for
three months will be let within the
next three weeks, but no airmail
company whose contract has been an
nulled for fraud and colluSion may
bid for a temporary contract" " Post
master General Farley announced to-
day.
The announcement was made alter
conferences with President Roosevelt
late yesterday.
Farley also barred any company
which has as any OF its officers or
directors any person who has entered
into or proposed to enter into any
combination to prevent the making
of competitive bids for carrying the
mail. or has mace any agreement or
given or performed or promised to
give or perform any consideration
whatever to induce any other person
not to bid for any other mail con-
tract"
Must Start Service Early.
Advertisements for bids will be sent
out within the next day or two. The
bids are to be submitted within is
days. Successful bidders will be re-
uuired to start operation within 80
days after obtaining contracts.
Farley believes the airmail service
will pass within the next two months
into the hands of new or reorganized
air transport companies.
While the Postmaster General de-
MED an official blacklist" of officers
of companies whose contracts were
Cancelled has been set up, he made it
plain that officials who participated
in the "spoils conference of May,
1880, at which the airmail service OF
the country was divided, can have
no part in the new airmail picture.
The temporary contracts, he indi-
Gated, will 90 only to the few un-
known independent air transport COM
panies which now exist, to new COM
panies which may be created within
the next few days and to those old
companies which reorganize COM
pletely and purge themselves of all
officials adjudged responsible by the
Post Office for the conditions which
resulted in annulment of the con-
tracts
The airmail door is wide open.
Farley said, ANY company which
can qualify and which is clean
handed has an opportunity now to
bid for airmail contracts
Reorganization Allowed.
Farley said that reorganization of
the old companies will be allowed
Il loo dnfna thp
ing of the term reorganization but
it would be legally defined by the
Department of Commerce and coun-
sci for the Post Office Department be-
fore the new contracts are awarded.
A mere change of name of the COM
pany will not suffice, Farley made 1t
clear. He said all bidding companies
will be required to furnish the names
of all officers, directors and stock
holders with their bids and that any
evidence the companies have not
purged themselves of personnel re-
garded by the Government as guilty OF
fraud and colluSive activities will bar
them from consideration.
The temporary contracts, the Post
Office Department explained, will be
let under a section of existing law
which permits the awarding of tenn
porary contracts at rates not higher
than those which were being paid
under previous contracts for the same
service. Under this law the post office
can pay as much as it was paying to
the old companies prior to cancella-
ton of contracts and could, legally,
award the new contracts without bid
ding or competition, Farley said.
The post office has available the
unexpended balance of the S14,000,000
appropriation for domestic airmail
Continued on Page 2, Column 81