Evening star., 1935-09-01
nv C.. Il. ALLEN.

LTHOUGH it is a compromise
~ measure and leaves much to
~ be desired frorl the aviation
4 n industry's point of view, the
airmail act Of 1894, as amended by
the last session Of Congress, promises
to restore a measure Of stability to
American air transport such as it has
not known since Postmaster General
James A. Farley came into office.
At the same time the new legislation
dims' somewhat the roseate picture Mr..
Farley has been painting for the pub
lie concerning the striking economies
effected by the bargain" airmail rates
that he enforced on the operators, be-
cause 1t restores approximately $780,
900 to this division of the annual Post
ONCE Department budget.
If this figure is added to the 49, ,767,-
355.22 set by official reports as the to-
tai monetary cost of Mr.. Farley's move
in turning the airma1 over to the
Army Air Corps following his whole
sale cancellation of contracts in Feb
ruary, 1884, it becomes apparent That
the Postmaster Generals evaluation
of himself as a protector OF the public
purse should be swallowed with a S5,-
900 900 grain of salt. And this, of
course, does not take into account the
IL youthful pilots whose lives were
sacrificed along with the major por-
ton of what might be termed the air.
mails incidental expense account.
Payments Retroactive.
The Sl,300,000 minor item in this
category represents retroactive pay
ments due the various airmail con-
tractors from March /, 1885. under
rates which the new Airmail Bureau
of the Interstate Commerce Commis-
sion ruled were "fair and just" after
a series of hearings on the allegedly
ruinous returns permitted to the air.
lines by the Post Office Department.
These I. c. c. findings, in general.
were supported by Congress although
it remains to be settled whether the
Postmaster General will accept the
year-old surveys results or insist that
the I. c. C. redetermine the facts Of
airlines operating costs in the light
Of more up-to-date developments af-
fecting the industry.
Which method will be followed Is
of secondary Importance; the vital
thing so far as the airlines are con-
cerned is that the amended airmail
laws not only insure them substantial
back payments from the Post Office
Department, which they need sorely,
but provide that the present set-up
shall be continued for three years and
indefinitely extended after that time
provided they give satisfactory service
This means that, for the first time
in several -Ineasy years. the industry
should be able to tell exactly where it
stands and make definite plans for
its orderly future development.
Among the four major airlines oper-
ating within the United States, Ameri-
can. Airlines Is the principal beneficiary "
from the $1,300,000 dividend ordered
by Congress in the form Of retroac-
tive payments, its share being $400. .000
Transcontinental & Western Airs
"Lindbergh Line" is second with S248,-
900, Eastern Airlines is third at S158,-
900, while the United Airlines, which
refused to resort to the suicidal"
bids entered by the other companies
to protect their original investments
when Mr.. Farley threw all of the do
mestic routes open to public bidding,
will receive only $4,000.
Little Lines Get Big Cut.
It is significant that many of the
small New Deal" air Ines, which led
the clamor about exorbitant airmail
rates that finally resulted in cancella-
ton of the old "collusive" contracts,
are relatively the biggest benehciaries
Of all, having clamored louder than
ever. after getting contracs at what
they termed equitable rates, that they
were bankruptcy bound unless the
Government came to their rescue.
One of these. for example, is sched-
uled to receive a $l06,0o0 slice of the
airmail melon just cut by Congress,
another s144.0o0 and two others Se2,-
900 each.
Another important feature Of the
new permanent" airmail legislation
is that it prohibits one airmail con-
tractor from invading the territory of
another with "off-line" passenger and
express schedules. These cut in on