Evening star. [volume] (Washington, D.C.) 1854-1972, 1940-10-28
Cargo May Hold Key
To Air Transports,
Future Prosperity
Rails, Aware Of Threat,
Have VituI Interest in
Express Aeency's Control
By JOSEPH S. EDGERTON.

BY JOSEPH S. EDGERTON.
Cargo carrying may prove the key
to air transport prosperity ard
growth tomorrow, as it has in the
case of every other form of trans
portation mankind has developed.
The railroads are keenly aware Of
this and have had vital interest
in the control of air cargo traffic
through the Railway Express
Agency, which is, in turn, a railroad
controlled organization.
The General American TranSpor-
tation Corp. has sponsored the So
called "Selig report" which warns
the railroads that "a joint airline
truck freight hookup would be GER
tain disaster for the railroads" This
report urges that the railroads COM
bine with the airlines and the Rail-
way Express Agency to monopolize
the air cargo business.
Urges Joint Organization.
The Selig report urges the eStab-
lishment of some joint railroad
eXpress-air transport organization as
a defensive move on the part OF
the railroads against a possible loss
of profitable business and may prove
highly significant if Federal trans
which President Roosevelt has eX-
pressed interest should materialize
in the future. it is poined out by
Gill Robb Wilson, president of the
National Aeronautic Association.
This is not subject for recrim-
nation but for calm analysis and
planning in which all segmentS of
aviation have much at stake" Mr..
Wilson said. with air tranSporta-
ton on the threshold of new era
in commerce it is highly desirable
that the conflicting interests and
ideas surrounding the important
subject of air freight development
be reconciled. so that the air car
riers may continue to lead the trans
portation field toward ever greater
economic and social advances"
Mr. Wilson called attention to the
fact that there is clause in the
Railway Express Agency which per-
mits it to engage in air express OPP
erations on its own account; fact
which he said has not been known
to a majority of the "a airlines
which now hold contracts with the
Railway Express Agency. Under
this contract, the agency itself
might set up air freight operations
which might conceivably make it
greater air transport organization
than any airline now in existence,
Mr.. Wilson pointed out.
Airlines Cargo Is Small.
In paper presented before the
1910 National Aviation Forum in
Washington, Grover c. Looming
pointed out that 1t is a historical
fact that on all transportation Sys-
TENS to date, cargo has constituted
about 30 per cent of business. He
cited the experience of the railroads
and truck-bus operators as examples.
Nevertheless, he said, last year
the airline cargo business amounted
to less than per cent of their total
traffic. During 1889 the airlines han
died 100000 100000 pound-miles of
passengers and mail; only 100000
pound-miles of express and cargo.
Prior to the outbreak of the pres
ent war, European airlines were
handling 10 times more cargo pro-
portionately, than the American
lines, he said.
There are plenty of examples in
all parts of the world of cargo use
of aircraft and exclusively cargo
carrying aircraft are in regular OPP
Grafton in many parts of the world
The outstanding American example
is the Lowell Yerex Central Ameri-
can Airline, known as T. A. C. A.,
recently merged with American EX-
port Airlines. Last year, with a
feet of so airplanes, most of them
1927 Ford tri-motors, T. A. G. A.
carried more than twice the tonnage
of air freight and express handled
by the combined airlines of the
United States domestic system.
The Army Air Corps air freight
service, composed of seven trans
port squadrons and some so air
planes, last year handled 100000
ton-miles of freight
Have No Cargo Planes.
The United States domestic air.
lines do not operate a single cargo
carrying airplane.
''All cargo carrying on the do
nestle airlines of the United States
is the exclusive monopoly of the
railroads. Mr.. Looming pointed out,
and this is how it works: The 70
major railroad systems of the coun-
try own outright the Railway EX-
press Agency, an incorporated COM
rany, and this company has eX-
elusive contracts with every airline
These contracts are almost all the
same, and they all contain the fol-
lowing two little items, among 9TH
ers. One is that no express or
ght-forwarding or delivery COM
pany can handle air cargo for the
eirlines except the Railway Express
hgency-a clear monopoly, at least
layman like me.
Second, no rate can be made less
an twice that charged on the
ilroads, and that, to an observer
e me. seems to be price fixing
Actually Much Higher.
Gates, due to pickup charges
j other costs actually are from
We to seven times greater on air
express than on railway express, Mr.
Looming said. The Railway Express
Agency does a gross of some $685.
100000 a year in railway express
business and about $2,300000 for
air express. Air express now amounts
to only about 4 per cent by volume
of railroad express, he said.
If properly developed, Mr.. Looming
said, and given just and equitable
rates, the airlines today should be
developing a gross business of $780,
100000 year on air express, as
compared with S50,000000 for pas
I-1gers and mail.
I'VE find the price clause is the
lie saver for the railroads" he COM