The Mason City Globe-Gazette from Mason City, Iowa on April 3, 1934 · Page 4
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April 3, 1934

The Mason City Globe-Gazette from Mason City, Iowa · Page 4

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Mason City, Iowa
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Tuesday, April 3, 1934
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Page 4
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·FOUR MASON CITY GLOBE-GAZETTE APRIL 3 1934 Bingham Makes Reply to Farley's Airmail Charges Everything Done Was Based on Congressional Act, Says Ex-Senator. WASHINGTON, April 3.--Vigorous assertion that James A. Farley, postmaster general was without information or wilfully arrogant in his summary cancellation of airmail contracts is contained in a statement "oy Hiram Bingham of Conecticut, former U. S. senator, as president of the national aeronautic association. Included on the advisory and executive boards of the associations are such noted men as Frank Hawks, Charles A. Lindbergh, Senator Arthur Capper. Will Rogers. Richard E. Byrd, F. Trubee Davison, Clarence M. Young and Orville Wright Only Explanation So Far. "On Feb. 14," said the Bingham statement, "you addressed a letter to Senator Black giving your reasons for the cancellation of all the airmail contracts. Tour letter is the only official explanation so far available of the reasons for your drastic action. "I have been waiting for you to follow it up with more definite charges or for action to be taken in the "courts against the individuals whom you believe to be guilty of fraud and collusion. More than five weeks have now elapsed since the appetrance of your letter without your adducing any further reasons for your action. Accordingly, that letter assumes immense importance. "Your letter contains a number of misleading statements and shows a distressing failure to appreciate the actual situation and also an apparent ignorance of airmail history. No Time For Grafters. "May I preface my remarks by saying that I have not the slightest sympathy with those who indulge in fraudulently mulcting the government or using their power and influence to cheat the taxpayers. I have not the slightest desire to protect any guilty party, but I do wish to protect the innocent. Your letter leads me to believe that without proper cause you have caused suffering to thousands of innocent workers and investors. "You refer to the series of meet- SUBSTITUTES ings held in Washington in the spring of 1930 at the request of the United States government as represented by your predecessor, Postmaster General Brown. These meetings have been referred to as secret and clandestine. As a matter of fact, the news in regard to them was widely published at that time. No Objection to Watres Act. "May I remind you that the Watres act had just been passed by a substantial majority in both houses of congress. Not only was no objection offered on the floor of the senate, but it received the express approval of the present democratic chairman of the senate committee on postoffices and post roads. The Watres act was passed because the then postmaster general of the United States was anxious to develop an efficient air transport system. He was careful to get specific legal warrant from congress for what he thought it necessary to do. He then invited a number of operators to Washington to discuss the ways in which his newly created power and authority could be used for the promotion of commercial aviation. "You imply in your statement that attendance at the conference was limited to a favored few. You state, specifically, that it was 'confined to those who subsequently obtained the contracts.' That statement shows that you are ignorant of the facts. By the listing in your own letter, 14 companies, all of them at ihat time independent of each other, were represented. All except five already had contracts obtained by competitive bidding. Of the Remaining Five. "Of the remaining five, not one has ever at any time since the conference been the direct holder of a contract, for carrying the mail, although three of them have had a certain interest in mail carrying lines formed later. One of the 14-companies has never had any connection with an airmail contract. Another had previously had a contract but did not have one at the time of the meeting and has never held one since.. So much for your statement that the conference was 'confined to those who subsequently obtained the contracts.' 'The public was kept well informed by the aviation press of the progress of these meetings. There was no secret about the fact that the promulgation of the new airmail map was held up awaiting the decision of the comptroller general as to its legality. No one has ever charged the comptroller general with playing politics or with condoning the illegal expenditure of money. Checked With Comptroller. "You did not state in your letter that your predecessor, Postmaster General Brown, was careful to get an interpretation of his newly acquired authority from the comptroller general. Such a statement ·would have hurt your case. You imply that the extensions proposed by the operators after these negotiations, were so improper as to justify the cancellation of their contracts. You do not state that practically all of the extensions proposed by the operators were announced in the public press as being 'thrown out by Mr. McCarl's ruling.' "In your letter you imply that the entire air map of the United States was remade as a result of the con- ference. You say 'these meetings resulted in a division of all airmail contracts of the United States.' No one would guess from your letter that substantially 60 per cent of the total domestic airmail operations up to three months ago were being carried on routes that existed at the time of those terrible conferences in 1930 and that were still, long after you became postmaster general, In the hands of the original contractors or their direct successors by purchase. In a Rapidly Growing Field. "Surely, for your predecessor to have transferred or to have newly created only 40 per cent of the total of airmail operations, within the course of three years seems by no means remarkable in a field which has been developing and expanding so rapidly as has air transport. That is not evidence of 'collusion and fraud,' "In your letter you refer to an order issued by the postoffice department on Nov. 6, 1929, extending for a period of six months certain mail contracts which were just about to expire. You state it was without justification in law and a STEVEN'S SHOE SALE NOW RE-OPENED This sale was closed Monday and Tuesday for the purpose of re-marking and reducing the prices on all merchandise for the FINAL CLEAN-UP Of This Great Sale Store Open for Business Wednesday, April 4 at 8:30 a. m. See Our Advertisement in Wednesday's Globe-Gazette part of a conspiracy. Your assertion that the extension of these contracts for said period of six months was illegal' and that 'there was no attempt whatever to readvertise such routes or to reaward them . . . and the course pursued was part of the conspiracy' is certainly misleading to say the least. As a matter of fact there wag no reason why re- advertising or reawardlng should have been considered. "On May 27, 1928, President Coolidge had approved an amendment to the airmail act passed by both houses of congress which provided that the postmaster general might by negotiations with a satisfactory airmail contractor, arrange for the surrender of his contract and the substitution therefor of an airmail route certificate giving him the right to carry the airmail for 10 years so long as he complied with the orders of the postmaster general. It provided also that the compensation might be revised from time to time. It constituted an unqualified grant of authority to extend the original contracts by replacing them with route certificates. Your predecessor carried out the clear intent of the law. To act otherwise would have been in direct defiance of the obvious will of congress as made plain in the act of May 17, 1928. Done According to Law. "In your letter you refer to the ·so-called certificate method.' You imply that there was something trange or artificial or evasive about hat method. You do not state that hese extensions were made and cer- ificates were issued in accordance with the very obvious intent of the congress when the act was passed. Naturally, to put it that way would have hurt your case and destroyed he effect of the Innuendo. "In trying to justify your arbitrary action you state that the three argest domestic air transport systems were built up 'by so-called extensions of routes.' The fact is that United Airlines acquired its entire -ranscontinental route either as the result of free and open purchase from companies which had received contracts as the result of being the successful bidders .in free and open competition. That company has had Dut two route extensions, representing less than 5 per cent of the system's total daily operation when you cancelled its contract. Not Borne Out by Facts. "T. and W. A. received its trans continental route as the result of competitive bidding and never had any extension up to the end of 1932. Its total extensions up to the cancellation of its contract amounted to only 8 per cent of its mileage flown with mail. "Even American airways, a system the initial parts of which were somewhat "widely scattered and were tied together by a considerable number of extensions, showed substantially less than one-third of its total flying with mail over routes acquired by the extension procedure. Consequently, your charge that 'the greater part of the American Airways and the T. and W. A. sys tern' was built up by extension ol routes is not borne out by facts You were trying to fool the public "You suggest that the airmail ap propriations were so expended tha they could be used for stock promotion purposes. You have made n" suggestion that there was an. wrongdoing prior to Nov 6, 1929 The records do not show that a sin gle transport company made anj public offering of its stock whateve after that November, 1929--nor fo that matter, even subsequent t July of that year. "Big Profits" Explained. "Much publicity has been given t large profits derived by those wh owned aviation stocks during th boom period. Unhappily, a grea number of sharpers' and disreputa ble characters took advantage o the romantic appeal of aviation t fleece the public in 1928 and 1929 but that is no reason for indictin the aviation industry and ruining it business. Furthermore, these profit, were made long before .the dates p the actions which you refer to in your letter as being improper. . "In November, 1929, the grea collapse of the 'bull market' wa taking place. So far as I have bee able to discover, there was no con nection whatever between mail con tr;\2ts and stock market action a any time during the period cited in your letter. It is true that ther were extravagant promotions of a kinds in the years 1927 to 1929. Im mense paper profits were made ii many industries, including aviation but it was 'bull market' mentalit and not aviation companies, nor air mail contracts that were respon sible. It is certainly unfair to hoi the aviation industry to account fo a situation that was duplicated i a dozen other industries at tha very time. All Payments Had Been Cut. "Please remember that at th time of the cancellation of you contract there was not a single air mail contractor who was being pai n amount even closely resembling hat which would have been due un- er the terms of his original bid. In ractically every instance, the rate f payment had been sharply and re- eatedly reduced by your predeces- or. It had been reduced far below he amount fixed at the time the ontract was first awarded. This act was not mentioned in your let- in Why not be fair? "Guilt is personal. If you know of ndividuals who have been guilty of eecing the government, bring them to court. The evidence which you ave adduced fails to prove your ase against the companies. If you ant to do justice you will restore he mail into the hands of those ho were carrying it efficiently, afely and swiftly. No one will ob- ct if you couple the return with ipulations regarding maximum alaries and financial statements. o one will complain if you deba? om further participation individ- als against whom the courts find efinite evidence of definite wrong- oing. Backed Up by Congress. 'The truth is that Postmaster eneral Brown had made up is mind to develop a great atlonal air transport system com- osed of individual units large nough to be efficient and not like- to waste their efforts in futile ut-throat competition during the fficult formative period. The con- jress agreed i that his views were easonable and in the Watres act ave h''m essentially what he asked or. He then proceeded to use the ower to attain those ends--ends hich there was every reason to uppose congress thoroughly under- tood. And he succeeded in building p American commercial aviation o a point where it was the finest n the world and the envy of many ireign nations. "You may not approve of the ae- ons of your predecessor, although e represented the United States overnment just as you do. Never- aeless, he procured the passage of aws tending to promote aviation. e procured the approval of the omptroller general for his pay- lents under those laws. The avla- on industry believed that it was cting in accordance with the wish- s of ttie United States government. For you to destroy their business ecause you do not approve of the Vatres Act and the actions taken y your predecessor under its auth- rity is an arbitrary abuse of great ower, unworthy of the traditions f your high office." MAN WOUNDED BY JEALOUS WOMAN owan in Serious Condition After Being Shot by Moline Woman. i. · j - · - · DAVENPORT, April 3. USB--Roy Traney, 35, Davenport,. was in a critical condition here today suffer- ng from a revolver wound below he heart inflicted, police said, by JLrs. O. L. Ross, 42, Moline, HI. Police said Mrs. Ross came to Franey's apartment and declared ler love for him before his wife and sister, Mrs. Ernest Burry. She drew a revolver and shot Franey after an argument of near- y an hour with Franey, his wife and sister, they said. The woman had started to leave he Franey apartment after declaring that she loved Franey and 'couldn't live without him." Franey and Mrs. Burry followed her into the hall believing she might attempt suicide. The shoot- ng took place there. Police said the wounded man's condition was critical and that thej leld little hope for his recovery They said Mrs. Ross would be held lending his outcome. Young Democrats of Cerro Gorclo to Meet Thursday in Rockwel ROCKWELL, April 3.--A meet ing of the Cerro Gordo county or ganization of Young Democrats wil be held here Thursday evening in the opera house. Entertainment and talks will be featured. Georgia law provides that the governor be sole dictator of the state's fiscal affairs and no expen diture is possible' without his ap proval. Fat Girls! Here's A Tip for You All over the world Kruschen Salts is appealing to girls and wome who strive for an attractive, fre from fat figure that cannot fail t win admiration. Here's the recipe that banishe fat and brings into blossom all th natural attractiveness that everj woman possesses and does it SAFE LY and HARMLESSLY. In the morning take one-half tea spoon of Kruschen Salts in a glas of hot water before breakfast--cu down on pastry and fatty meats-go light on potatoes, butter, cream and sugar. "It's the little dally dose that takes off the fat" and "brings that Kruschen feeling" of energetic health and activity that is reflected in bright eyes, clear skin, cheerful vi/acity and charming figure. But be sure for your health's sake that you get Kruschen. A bottle that lasts 4 weeks costs but little. 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