Evening star., 1937-07-11
DOMESTIC A|RMA|[
IS CLOSE TO COST
Revenues Only $900,000 OF
BaIance-May Show Profit
Next Year.

ter General Harllee Brapch. The
. service probably could. during the
present fiscal year, be made source
Of profit to the Federal Government,
Branch believes.
At the same time Branch indicated
yesterday that transatlantic airmail
services, expected to be IN operation
this Fall, may be thrown open to all
comers. This would be done by dis
tributing mail on poundage basis for
carriage on. the most convenient suit
able service, as is done In the case Of
the steamship mail rather than by
calling for bids and awarding con-
tracts, he said.
Final figures on domestic airmail
for the 1887 fiscal year, just closed,
are expected to show that the service
came within about 100000 of paying
Its own way. Branch said. Although
more money has been provided for
operations this fiscal year the margin
may be even closer by the end OF the
year if, in fact, profit is not returned
to the Government.
Would Speed Growth.
He expressed the opinion that the
, Government, however, should not per-
nit the airmail service to become
profit-making enterprise, but should
keep Federal airmail expenditures in
advance of revenues to make certain
that air transportation will continue
to be growing, expanding national
enterprise.
If for the next five years Branch
said, I'VE were to keep airmail rev.
enues within s3,0oo,o0o of the expendi-
lures, would consider that it would
be a very sound investment. We al
ready are we'll inside this margin"
During the fiscal year which has
Just begun, Branch said, airmail ex-
penditures will be increased by the
Post Once Department from the 1887
total OF $12984.000 to about sl5.000,-
o00 1t Is possible, he said the actual
revenues to the department. will equal
and may possibly exceed this total, in
which case the airmail service will
return a profit.
At the beginning Of the present
administration, Branch said. the air
mail service was operated for the fiscal
year 1898, at cost to the Government
OF about $l9,400000. This was the
actual amount of payments to domestic
airmail contractors for flying the mail
he explained. The actual revenue re-
eeived by the department from airmail
service. under the then Scent rate,
was $6.ll6,44l, representing deficit
Of Sl3.283.823 This was the amount
OF the so-called subsidy during that
year.
During the fiscal year which has just
closed the cost to the department was
$l2,984 900, while the estimated total
sl2,00o000. This figure is subject to
final audit, but will be close, Branch
said.
Companies Showing PROFIT.
"At the same time the cost Of the
airmail service to the Government is
approaching the vanishing point, !"
Branch said, the airmail contract
companies themselves are beginning to
come out Of the red. This year it is
likely that six or seven Of them will
be able to report a profit and within
two years all of them should be re-
turning profits"
The amount of airmail flown by the
domestic airlines has grown from a
total Of 6,741 900 pounds during 1888
to 15,377,ooo during the fiscal year
and an estimated total Of 100000
during the fiscal year Just closed.
During 1886 there was an average
monthly increase in airmail poundage
of $4,000 pounds. During the first
six months of the 1887 year, however,
the average monthly increase mounted
to $4,000 pounds.
Other air transport business is show
Ing similar increases, Branch said Air
express flown during the 1888 fiscal
year totaled 744,000 pounds. During
the fiscal year just ended it reached
an estimated total Of 100000 pounds.
During the same period passengers in
creased from 100000 to 100000.
Passenger revenues showed an
even more marked increase. from 3
total OF $6,4O7,748 during 1893 to .
total Of $2l000,000 during the calen-
dar year 1885 and an estimated $22,-
100000 plus during the fiscal year
which ended June 30.
1t is the proposal of the Post Once
Department, Branch said, that service
on the major domestic airmail system
should be increased to a uniform
minimum Of three round trips a day
on the primary routes and two a day
on secondary routes. To accomplish
this end, he said, the department will
ask Congress for increasing funds
each year. Thereafter. he proposed,
q minor system of feeder" routes
should be established bringing direct
airmail and transport service to
smaller communities and into every
section Of the Nation.
Foreign Situa ton Different.
In the foreign airmaI field, how
ever the picture is different. Branch
said. The foreign service still is a
long way from being on self-sustain-
Ing basis and actually never may be-
This service, however, Is 50 essential
to American business, he said. that
It is worth its cost to the Nation
During the 1888 fiscal year the
cost to the Government of foreign
airmail was '$6948,1s8 and the rev.
enue was $l,276,250. During the past
fiscal year the cost was :7,867,756 and
the revenue $3,921,05
Trans-Pacific service has been far
less costly than was first estimated.
Branch said. Its cost during the past
year has been $l,600, 900 and its rev.
enues 100000.
He explained that foreign airlines
are required to establish all Of their
own airway facilities, communications
and radio range services and airports,
services which are provided by the
Government In the case Of domestic
lines.
70 fho trans. At1a ntjc sArvice u,ere