The Waterbury Democrat., 1935-06-24

Tn the WaCerDury DeIlloCEdI'
 On June 12, 1895. newspapers featured the report of Postmaster General Farley that mail contracts had been awarded to Pan-Ameri' can Airways through discrimination and without full competitive bid' ding.
 In August, 1932-nearly three wears before-Drew Pearson and Robert $. Allen exposed this same situation in their book, MORE MERRY.GO-ROUND, as follows;
 "The most amazing piece of lob-
 bying in connection with air
 mail ontracts-probably one Of the most amazing pieces of lob-
 bying In the history of the state Department-was accomplished by the Pan American Airways In
 securing monopollstic conces-
 sions throughout Latin America. Ut is the policy of the state de- ~partment always to champion < American companies against for
 elgn companies wherever there
 is competition; but 1t Is also the strict policy of the department
 never to distinguish between
 American companies, and to champion them impartially. In the case of the Pan-American
 Airways, however. the State De-
 partment deviated from this plo-
 icy with brazen indifference
 that might subject 1t to tho charge of malfeasance in office.
 .In some fifty cases the State Department made urgent diplo-
 matic representations to Latin- American countries on behalf Of Pan. American Airways. In at 2 least six of these, the department acted to head off other American { air lines competing against Pan- American Airways. One twenty.
 five year monopoly contract sponsored by the State Depart ment on behalf of It's favorite air line was so objectionable to Guatemala that the cabinet was forced to resign. In Nicaragua q ! contract which the State Depart ment supported was considered 50 prejudicial to the interests of z the country that Brigadier Gen. eral Logan Feland, commander : of the marines, expressed his ob. lection to the Navy Department; while in Haiti both the American financial advisor and Brigadier seCeneral John A. Russell, Amer. joan high commissioner, took ex. ception to the State Depart efforts and branded the Pan-A American Airways' contract "a monopoly of tho most objec. .tionabl character In Honduras committee of congress report. 4ed the Pan-American Airways' contract unfavorably and, despite the Intervention of the Honduran president. the Honduran congress ' Unanimously disapproved the monopolistic features of the Agreement. But Pan-American sgAirways got the state Depart- inent's support just the same.
 "one clew to this discrimination was the position of Postmaster ~General Brown. In the summer of 1929., when the Pan-America Airways' subsidiary in Chile was experiencing dltlicult competition from the Curtlss Aeroplane and
 Motor corporation, anoth her sAmerican firm, Brown wrote to Secretary of State Stimson, ask ing him that all practical us. sistance be given to the Pan.
 American. Grace Always In se- curing operating arrangements in preference to any other Amer. ican company
 %''Another possible clew to the support which Pan-American Airways received from the state department was the presence of
 Former career diplomats in its organization who carried weight with their colleagues In Wash- sington. Evan Young, former NAmerican minister in Santo Do. mingo, was one of these. He acted as closeup man for this sprivileged airways company in negotiating Latin. American mon-
 opolies. So also did Alan Wins low. son-in-law of Under secre. tary of State Castle. The man in the state Department who han.