Word: airmail
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...justify the Administration's action. In his opinion, only modest National Parks Airways (Salt Lake City-Great Falls, Mont.) was entitled to have its contract reviewed, with the possibility of reinstatement. "General" Farley was convinced that there was "illegality"' in Postmaster General Brown's handling of airmail contracts, although, as yet, he had no basis for "criminal action." Some Farley charges...
...illegal for the Post Office Department to extend old airmail contracts, tide over potent contractors until the Watres Act could be passed in April 1930. 2) It was illegal to award big route extensions without competitive bidding. 3) It was illegal to permit collusion among the hand-picked operators who met at the Post Office Department in May- June 1930, agreed among themselves what routes they would and would...
Viewing with displeasure the fact that of the 26 domestic airmail contracts awarded by Postmaster Brown's administration, 24 fell into the hands of Aviation Corp. (13), United Aircraft (6), North American (5), Mr. Farley declared: "At the time of the passage of the Watres Act in 1930 there were many reasonably well-established air transport passenger lines desirous of obtaining airmail contracts which received no consideration whatsoever." He further charged that of the $78,000,000 given in 1930-33 to airmail carriers, $46,800,000 had been paid in excess, since the subsidy was based on wasteful...
...Post Office conferences in May-June 1930 on airmail contracts were no secret. The Post Office Department had even put out a press release on them. No evidence had yet been adduced that Mr. Brown was informed of the inter-company deals leading up to a redistribution of contracts...
...From 1929 to 1933 compensation paid to airmail carriers by the Post Office Department was reduced from $1.09 to 42? per mile...