Evening star., 1939-08-01

not come from the Government, but
from the people who mail the letters.
The Government is merely the
channel of transmission, and that is
not subsidy.
The whole domestic air transport
yystem has been swift In its approach
to a balance of the Governments
books in that sense For the fiscal
year 1898, the last for which figures
are complete, the total amount paid
out to air transport lines for carry
Ing airmail within the United States
was some $15,7l2000, whereas the
Post Office Departments computa-
ton of the total postage on airmail
letters showed about SIS, 1901 600.
While a part Of the postal receipts
may of course be regarded as hav-
ing been spent for handling the let
ters on the ground and making the
final delivery, the striking fact re-
= mains that last year the United
States Government paid to domes-
tic airlines only about SAIL 900 more
than came back to the Post Office
through purchase of airmail stamps,
as against eight times that amount
of direct deficit in 1886, and a diff
ference of more than $14,500,0O0 in
1882. For the fiscal year just ended,
the postal revenue may be expected
for the first time to exceed direct
payments to domestic airlines.
Aviations Growth.
There will be further extensions of
the air transport network. Some of
them will require rates which will
substantially exceed the postal rev.
enue that may be expected From
the moment when each line is es-
tablished however, it begins a de-
velopment of inherent commercial
and economic strength that tends on
the whole to steady reduction of
Its dependence on Government.
One of the most dramatic aspects
of American civil aviation in which
the Civil Aeronautics Authority has
been engaged in the past II months,
has been its expansion beyond our
own borders. In II years the route
mileage operated has shown the
almost unbelievable increase of 30,-
900 per cent! Last year our foreign
routes alone carried 10000 pas
sengers.
These far-flung, high-speed facili-
ties also are vitally important to
commerce and national defense. To
the north and south, they bind the
commercial interests of the two
Americas much closer together. And
across the broad oceans our clippers
show the way to the world in luxury
economy and efficiency. Our great
airliners are now being purchased
in many nations, and these pur-
chases make it possible for us to
maintain at home manufacturing
plants which would be priceless in
any emergency.
Activities Go Around the World
To serve our foreign air routes
the responsibilities and activities OF
the Civil Aeronautics Authority ex-
tend in varying degrees literally
around the world. One American
company has within the past two
months inaugurated regular COM
mercial air service between the
United States and Europe, while a
second is completing survey flights
looking toward similar commercial
service in the future.
Behind these great accomplish
ments are months of intensive study
and work not only by the Civil
Aeronautics Authority, but by other
agencies of Government, producing
for the first time definite nationa.
policy on transatlantic air service
In close cooperation with the
State Department we have beer
active in great number of interna-
tional aviation conferences and ir
conducting Diplomatic negotiatinn.