CATTARAUGUS REPUBLICAN,
AGE FOUR
COLLUSION CHARGED
could not live and he hoped the bill
would take care/ of this. He would
rather see the .plan worked out as
mentioned above than. competitive
bidding. He said that is the view of
TAT.
WEDNESDAY, FfeB. 21, 1934
BROWN DENIES
COLLUSION ON
AIR CONTRACTS
orous fight for the clause in which
they were interested.”
As originally drafted, the McNaryW atres bill would have permitted the
postmaster general to award con­
tracts by negotiation and without ad­
FARLEY ACT TERMED
‘COLOSSAL INJUSTICE’
vertising for or considering bids,
“Mr. Mayo said: ‘I think the sug­
“when in his opinion the public in­
gestion is a good one, rather than to
/
have competitive bidding.’ He thinks Former Postmaster Gen­ terests shall so require.”
Opposition developed in a congres­
lFormf
P
o
s
t
e
r
Genrates we have, worked out with
Postmaster General, in Letter to Senate Investiga­ the
eral
to
Testify
before
era!
Defends
rolicy
sional committee to the awarding of
contractors on their certificates
tors, Asserts Contracts Based on “Conspiracy the
contracts by negotiation and this
fair, too.
S
e
n
a
t
e
Committee
before Senate Com­
clause was stricken out.
or Collusion”, Asserts Airways Heads Held are“Mr.
Clark said: ‘I would prefer
mittee, Tells of Invest­
Monday
A t the meeting with the operators,
the plan suggested, rather than com­
Meeting and Agreed on Practical Elimination petitive
Brown said he repeated the sugges­
bidding.’ ”
,
^ New York, Feb. 16 (#)—Denying tion
ments
of Competitive Bidding—House Committee to Comments
“m ade for their relief by the
from several others also that airmail contracts were awarded
were expressed in the memorandum. during the Hoover administration subletting of operations from the^air Flyer Lists Stock Re­ Washington, Feb. 19 (IP)—Walter
Hear Former Postmaster
mail contractors, without approving
F. Brown, Postmaster General in the
Glover Criticised Action
through
collusion,
former
Postmaster
ceived
on
Contracts
as
the
same,
however,
as
I
had
serious
Hoover administration, before the
tain
air
transport
operators
who
had
A memorandum under date of General W alter F. Brown declared
Washington, Feb. 15 (/P)—The
Senate committee investigating air­
wholesale cancellation of ah* mail not been invited to attend” the June 5, 1930, signed by E. B. Wads­ last night the only awards of major misgivings with respect to its practic­
Part
of
jSalary,
Profits
ability
and
soundness.”
meeting
at
which
the
agreement
for
mail contracts today defended his
worth, of the department, said that importance were made “under the
contracts was publicly* explained by
on
Sale
of
Options
“I
invited
the
judgment
of
the
airmail
policy and personal financial
Postmaster General Farley as predi­ dividing up the routes was reached Glover had informed the operators’ provisions of the law.”
e
cated on his belief that “all the pres­ “were refused admission when they meeting that “the department was “There is absolutely no justifica­ operators with respect to the plan New York, Feb. 18 (IP)— Col. dealings.
suggested,”
he
continued,
“and
told
attempted
to
gain
entrance.”
He
called
cancellation
of
all
con­
somewhat disappointed” in a tenta­ tion for the charge that, any of the
ent domestic carriers secured con­
Charles A. Lindbergh issued a state
tracts based on conspiracy or collu­
tive plan drawn up “inasmuch as airmail contracts w e r e awarded them in a general way our ideas so ment last night saying his “total prof­ tracts by Postmaster General Farley
Says MacCracken Chairman
Some of the meetings held in May they had in effect ‘taken all the through collusion among contractors far as they had been formulated for its from stock and warrants” in three a “colossal injustice.”
sion.”
extending the airmail service through­ aviation companies “exclusive of re­ Having waived immunity from
He made one possible exception, and June of 1930, Farley said, oc­ meat and left the bone’.”
or
by
any
other
illegal
practice,”
out the country and invited their investments in them, had been $187,- criminal prosecution, Brown told how
the National Park Airways.
curred in the Postoffice Department The photostatic records accom­ said Brown.
airmail routes were distributed and
The conspiracy, he charged, was and were attended by Brown and panying the Farley letter also dis­ The fomer postal head issued his opinions as to what air mail and oth­ 838.55.” ‘
hatched at a meeting in 1980 of air Glover. William P. MacCracken was closed some of the details of a con­ statement after asking the Senate er aircraft-operators in the language The companies, for which he is that his personal buying and selling
line representatives who, he said, en­ said by Farley to have been named troversy between Eastern Air and committee investigating the awards of the original proviso of the Me-..technical adviser, are Pan-American of stocks had nothing to do with that
Nary-Watres bill had equities with Airways, whose mail contracts have distribution.
tered an agreement which “resulted chairman of the meetings.
the Pan-American Line in 1931.
for
permission
to
testify
“voluntar­
in a division of all air mail contracts The minutes of the meetings pre­ Thomas B. Doe, of Eastern Air, ily” at the earliest possible date. He respect to any of the routes then in not been cancelled, Transcontinental “Public attention,” he said, “has
of the Unitea States and the practi­ pared by MacCracken, Farley said, wrote Brown on July 2, 1931, that expressed willingness to waive im-? existence or under consideration.” & Western Airj which did lose its been drawn to my investments in the
Quoting from a memorandum of contracts, and its predecessor, Trans­ securities of three corporations whose
cal eimination of competitive bid­ listed the following as attending:
“the situation in Cuba is rapidly com­ munity from prosecution.
business is related to transportation
United Airlines—Paul Handerson, ing to the point where, in order to At Washington, Chairman Black of the meeting, Brown said the opera­ continental Air Transport.
ding.”
tors
expressed
agreement
that
a
—the
International Mercantile Mar­
His answer, made while protests Phil Johnson, George Wheat, Ray protect our interests and carry out the Senate Airmail Investigating
The
statem
ent
declared
that
in
and criticism still continued, was in Ireland and James Murray.
our agreement with the Cuban gov­ committee, announced that Brown’s plan could be worked out among answer to a questionaire which the ine *Company, the Pennroad Com­
themselves for assigning extensions
pany and the Pennsylvania Rail­
a letter to Senator Black, chairman Transcontinental Air Transport— ernment, it will be* necessary for us request
would
be
granted
on
Mon­
Senate
air
mail
investigating
commit­
to
operators
that
had
no
mail
con­
road.”
of the Senate committee investigat­ Dan Schaeffer, Jack Maddux, George either to enter into a working agree­ day.
tee
recently
sent
to
aviation
notables,
tracts.
He added that no contract had
ing air and o:eah mail contracts.
ment with Pan-American or an open In his statement, Brown detailed
Cuthell and Allen J. Furlow.
Col.
Lindbergh
stated
he
“has
never
gone to the International Mercantile
Western Air Express— Harris Han- fight.”
Cites Progress in Aviation
Brown, Others Testify
two
meetings
he
had
with
air
line
op­
received
a
gift
of
stock,
stock
op­
M arine during his adm inistration and
shue
and
Jam
es
Woolley.
Brown
replied
he
did
not
believe
In
his
letter
to
the
Senate
commit­
Meanwhile Chairman Mead, Dem­
erators
in
1930
and
declared:
tions
or
warrants.”
e.
tee, Brown hvrote that the air trans­ It was reported from Washington that Pennroad had nothing to do with
ocrat, New York, said that the House National Parks Airways—Alfred the Postoffice Department should be
Denies
Collusion
“drawn into controversies that are “No suggestion of dividing airmail" port industry,- which had been fos­ that an investigation into the Pan- air mail.
Postoffice Committee would hear Frank.
Varney
Airlines
(United)—Louis
wholly outside our jurisdiction.”
tered by government aid in the ad­ American Airways Company, to fol­ The committee •received a state­
W alter F. Brown, former postmaster
operations
among
the
companies
rep­
“I have stated/frankly to the air resented at the May 19th and June ministrations of Wilson, Harding, low the examination of former Post­ ment issued in New York yesterday
■general and representatives of avia­ Mueller.
Aviation
Corporation—F.
C.
Co­
mail
operators,” Brown wrote Doe,
Coolidge and Hoover, was still “de­ master General W alter F. Brown, by Charles A. Lindbergh saying his
tion companies on airmail contracts
4th
meetings
was
ever
made
or
con­
aviation stock profits totalled $187,burn and Hainer Hinshaw.
“that in the present state of the in­ templated and no suggestion with pendent for its very existence upon
which have been cancelled.
would
encompass
an
inquiry
into
g38 and offering to appear for ques“We can’t deprive these men of S.A.F.E. Express (Aviation) — dustry it did not seem the part of respect to bidding on airmail con­ the air mail service.”
stock
option
gifts
which
investigators
their right to state their case,” Mead Erie Hilliburton, William Mayo and wisdom to invade each other’s terri­ tracts or refraining to bid on air mail He added that in the last few years understood the company to have tioning. No decision had been reached
as to whether he would be called.
tory with competitive services and
the aviation companies had made granted.
told newsmen after a committee Ted Clark.
contracts
was
made
at
either
of
the
much progress toward “economic in­
heaving today in which postoffice de­ Eastern Air Transport (North that I did not believe that money meetings or at any other time.
Col. Lindbergh said the stock andvDOHERTY DENIES
partment officials asked enactment of American)— Thomas Doe, Harold El­ paid for postal service should be used “The only air mail operations of dependence,” their passenger and ex­ options
from Pan-Ameri­
to set up services to injure competi­
temporary emergency legislation to liott and Johi K. Ottley, Jr,
press revenues increasing from prac­ can and heT. received
major
importance,
the
Central
and
A.
T.
were
“in accordance M’FADDEN CHARGE
perm it the army to pay the expenses Thompson Aeronautical (United) tors.
tically
nothing
in
1929
to
the
rate
of
Southern Transcontinental opera­ $10,000,000 a year at the end of with his employment contract.”
OF TAX EVASION
— Tex Marshall and William I. Den­
of carrying the mails.
Sought to Avoid Competition
tions,
were
awarded
under
the
pro­
The
statement
was
made
public
in
■Representative Kelly, Republican, ning.
1930.
“In pursuance of this policy I sug­
of the law relating to compe­ “At the same time,” he said, “the the same manner as was a telegram RereSentative A s s e r t s
Pennsylvania, suggested that W alter United States Airways— Lew Hol­ gested the abandonment by the Pan- visions
bidding to the lowest respon­ compensation paid to the air mail Col. Lindbergh sent last Sunday to
Brown and Charles Lindbei’gh, as land and N. A. Letson.
American Company of the domestic titive
Administration Pro­
sible
bidder.”
President Roosevelt protesting that
well as representatives of the com­ Pittsburgh Aviation Industries — field in the United States and as a Brown said the May 19th meeting, carriers by the Postoffice Depart­ the
companies whose air mail con­ tects Prominent Dem­
Dick Robbins and George R. Hann. result of that suggestion you are now
panies involved, should be heard.
m ent has been reduced by successive
was
called
to
discuss
the
Postoffice
tracts
had been cancelled were not ocrat
Mead replied that the committee Clifford Ball, Inc.— Clifford Ball. negotiating with the Pan-American Department’s effort to obtain pas­ steps from $1.09 per mile in 1929 to given .an
opportunity to he heard.
first should hear, in executive ses­ Curtis Flying Service—Frank Rus­ Company for the taking over of their
42 cents per mile at the end of my No further
sage
of
the
McNary-Watres
bill
in
its
details of the $187,- New York, Feb. 17 (IP)—Henry L.
sion, the charges on which the post- sell and Burdette Wright.
Atlantic City service. Their field is original form, which would have per­ administration.”
office department based its cancella­ Delta Air Service— E .V. Moore the international service to Mexico, mitted the postmaster general to In spite of the depression, he said, 838.55 figure of the colonel’s profits Doherty issued a statement last night
exclusive of reinvestments were avail­ saying Representative McFadden’s ac­
tion of contracts and then decide and Mr. Woolman.
Central and South America and the award contracts by negotiation, “and the air transport industry had grown able
beyond that contained in the cusation against him was “not only a
what other persons to call.
Predecessor is Quoted
West Indies. Consistently with the further to see if under the law as it with amazing speed, constituting a statement,
which follows in full:
libel upon me and my companies but
The postmaster general, a few The photostatic evidence with policy outlined, it would seem im­
service of “incalculable value” for “The following
was
enacted
any
relief
coqld
be
af­
is a summary of is a baseless and vicious attack on
hours before he made public the let­ which Farley accompanied his letter proper for any of our domestic air
national
defense.
honest public officials and on
ter and a bundle of photostatic cop­ included a memorandum, signed by mail operators to use mail pay to in­ forded to the passenger carriers, who Brown said he had hoped “because Colonel Lindbergh’s financial interest ^
had
no
air
mail
contracts,
through
in
Pan-American
Airways,
Transj
administration
itself.”
ies of correspondence taken from the Glover under date of May 15, 1930, vade the peculiar field of the Panof the high position in the postal ser­
the
co-operation
of
the
air
mail
con­
Postoffice files during the adminis­ which said that “the Postmaster Gen­ American Company.” '
vice which I had the honor to hold continental and W estern Air, and its j “Were he not protected by a cloak
tractors
and
the
Postoffice
Depart­
Transcontinental Air 0£ Congressional immunity which he
tration of Postmaster General Wal­ eral is desirous of having a confer­ The Farley cancellation order ap­
for four years,” he might be permit­ predecessor,
ment.”
Transport.’
ter F. Brown, had sent a telegram to ence with representatives of the com­ plied only to domestic lines and did
cowardly hides behind in his vicious
ted to testify without the imposition
Air Transport Encouraged
“Colonel
Lindbergh’s
total
profits
an(j
scandalous attacks upon honest
Colonel Chailes A. Lindbergh. Lind­ panies mentioned below.” The com­ not involve the Pan-American, oper­
of “conditions reflecting on my in­
In
opening
the
meeting,
Brown
from
stock
and
warrants
in^
these
m
e
n
”
the statement said, “I would
bergh sent a protest to President panies were listed as the United Air­ ating into a foreign country. Since
tegrity.”
companies, exclusive of reinvest- sue j^hn for libel and slander in every
Roosevelt three days ago.
craft, Aviation Corporation of Amer­ then, however, it has) been learned said he stressed the department’s ef­ “However,” he added, “my desire ment
in those stocks since then, have; com.j. jn
}and,”
forts
to
“preserve
the
provisions
de­
to prevent, jf possible, an irreparable
ica, Western Air, TAT-Maddux, the Postoffice department has in­
Farley Wires Lindbergh
been
$187,838.55,
as
set
forth
below.
signed
to
prevent
the
abandonment
Charge Made in House
injury to an industry, the uninter­
Farey told Lindbergh that “I am Eastern Air Transport and Stout structed a study of the circumstances
“These
figures
do
not
include
any
of
fair
passenger
operations,”
ex­
Washington,
Feb. 17 (iP)—An ac­
rupted development of. which, in my
certain that if you were in possession Lines.
surrounding the Pan-American mail
deduction
for
business
expenses
such
plained
the
situation
as
it
stood,
and
cusation that Henry L. Doherty of
judgment, is vital to our national
of all the facts you would not feel “He sees,” the Glover memoran­ contract.
that any injustice had been done or dum continued, “the feeling that is Senator O’Mahoney, Democrat, then turned the meeting over to the security and well-being, transcends as purchase of airplanes, equipm ent,1cities Service Corporation is “one of
office maintenance, cost of survey ^ higgest tax evaders in the nation”
any personal considerations.”
will be done.”
developing among the passenger car­ Wyoming, former assistant postmas­ operators.
flights, and^ many other items over a (ancj
administration is protectHe followed this with the publiciz­ rying lines who have no mail con­ ter general, said last night he had On June 4th, he said, the operators
reassembled
and
submitted
a
list
of
period
of
six
years.
^
jng
was
macje in the House Friing of his letter to Black.
tracts and have no way of getting in­ urged the Senate postoffice commit­
PLANS
TO
FINANCE
recommendations
for
the
extension
“Pan-American
Airways:
day
by
R
epresentative
McFadden,
“It is incontrovertible,” Farley to the picture unless it is by compe- tee to amend the McKellar emergen­
SM
ALL
FACTORIES
the air mail service “with a view
“In accordance with his employ- Republican, Pennsylvania, while Resaid in his letter to Black, “that the tive bidding, and he wants to have a cy air mail bill to permit all carriers toof the
participation
in
this
service
of
ment
contract, executed in January,1publicans began an effort to include
1930 meeting was held, that it was meeting with these representatives “regardless of any fraud that may
IS
BEING
DRAFTED
air
ti’ansport
operators
now
engaged
1929, Colonel Lindbergh received: saies tax provisions in the pending
■confined to those w*ho subsequently on next Monday, May 19th, at 2 p. have been committed by their offi­
exclusively
in
passenger
and
express
warrants to purchase stock in the revenue measure,
obtained contracts, that the provision m., in his office, and desires to have cers or agents, to bid on the new con­
Governor
Black
Propos­
service.”
company. The total profit of the| McFadden said Doherty was “one
of law calling for competition in bid­ talk with them along the line of just tracts.
es
System
of
Interme­
sale of these warrants, $150,884.80,! 0£ ^ g ]argest contributors to the
ding was not carried out, and that all the best way for them to approach “This I have done,” O’Mahoney The recommendations were in­
ferred
to
the
comptroller
general,
all of which, together with several j campaign fund that
elected Franklin
the present domestic air mail carrieis the question of giving aid to passen­ said because I believe that we owe
diate
Banks
to
Make
Brown
said,
to
determine
how
far
thousand dollars additional, he has Id . Roosevelt,” that he was “making
secured contracts based on conspir­ ger lines.
an obligation to the aviation indus­
Loans
reinvested in stock of the company, every effort to prevent proper inacy o? collusion, with the possible ex­ “In other words, he wants them to try, to the public, and particularly the department could go in granting
extensions
to
existing
routes.
of which stock he now holds.
vestigation” and that “his company’s
ception of the National Park Air­ come to understanding so that it will to the thousands of employes of avi­
Washington, Feb. 16 (IP)—A pro­ all“Colonel
Lindbergh’s
salary
from
income taxes should be looked into.”
ways, which will be given further not all be thrown into the pot and ation companies, not unnecessarily to “In a short while Mr. Glover (as­ gram
for
aiding
thousands
of
small
sistant
postmaster
general)
returned
Pan-American
Airways
is
$10,000
McFadden said A rthur Mullen,
consideration.”
the passenger line operators left en­ injure the industry.
industries
that
are
starving
for
cap­
The National Parks Airways oper­ tirely outside due to the fact that the “Let us make the guilt personal. to the room where the operators were
Democratic national committeeman
funds is receiving the adminis­ a year.
“Transcontinental
a
n
d
Western
from
Nebraska, was handling the
ates a route from Great Falls, Mon­ airmail operators will have the in­ We should not visit it upon the in­ waiting,” Brown said, quoting from a ital
tration’s
intensive
study.
memorandum
of
the
proceedings,
tana, to Salt Lake City. Farley said side and would have the territory dustry.”
[question of Doherty’s income taxes,
The Treasury and Federal Reserve ^ r:“Colonel Lindbergh received a sal—adding
“and informed them that the depart­ Board,
that the present head of the
it “did not appear” that representa­ covered.”
the
N.R.A.
and
Reconstruc­
ment
was
somewhat
disappointed
in
tives of. the National Parks Airways The next memorandum said the
of $7,194.45 in 1931, and $6,000 Treasury’s tax division is a friend of
Corporation-all are working to­ ary
their report, inasmuch as they had tion
in
1932
and 1933 from Transconti- •Doherty.
had taken an active p a rt in the m eet­ committee of operators had met on REFEREE NAMED
ward
a
solution
of
the
problems
cre­
in
effect
‘taken
all
the
meat
and
left
nental
and
Western Air.
j The Pennsylvanian contended there
ings at Washington in which the air May 19th and again on the following TO DECIDE NEW
ated
by
a
clogged
capital
market.
bones.’ They were told, however,
routes "were divided up.
“Transcontinental Air _ Transport' are “certain lawyers” practicing beday and then recessed until May 23d,
plan now in development by (predecessor
MILK PRICE CASE the
that the report would be carefully theOne
A t the tim e the W atres Act, the to meet “at the office of the postmas­
to Transcontinental and fore the income tax division of the
Reserve
Board
would
establish
j
studied
and
any
decisions
reached
a ir m ail subsidy law, was passed in ter general.”
A ir).
j Treasury who are able to get facts
an emergency chain intermediate Western
1930, Farley said, there were “many The memorandum under date of Milk Board and Dell- j would be indicated to them.”
“In
accordance
with
the
terms
of
and records th at are not available to
banks, which, with the support of the
|
Subsequently
the
operators
subreasonably well established air trans­ May 20, 1930, on Postoffice Depart­
his employment contract executed in others, adding that if all taxes due
wood Company Agree ; mitted a supplemental report, which reserve
banks, would make loans.
May, 1928, Colonel Lindbergh re­ wrere paid the Treasury would collect
port passenger lines desirous of ob­ ment stationery and initialed “E. B.
Governor
Eugene
Black
discussed
to Procedure
‘ Brown said “was placd on file and
ceived $250,000 in cash and an op­ $700,000,000.
taining air mail contracts, which re­ W.,” said the postmaster general had
proposal with President Roose­ tion
to purchase stock in the company. Mullen, the Democratic national
ceived no consideration whatever.” invited representatives of the passen­ Albany, Feb. 15 (/P)— The State I no further consideration was given to this
velt
and
Selretary
Morgenthau
and
i
it.”
reinvested all of the $250,000 in committeeman from Nebraska, now
Terms Extensions Illegal
ger air lines to confer with him and Milk Control Board and the Dellwood I
was understood to have received the He
company
stock. His total profits a Washington attorney, said McFad­
j
By
now
Brown
said
he
had
deterIn addition to the charge that the then listed those present.
word
to
perfect
his
plans.
It
has
the
Dairy,
latest
milk
dealer
to
question
,
mined'
that
“if
passenger
operations
from
the
sale
of his stock in the com­ den was “very badly mistaken” when
combination of companies to prevent
Sought to Aid Passengefr Lines
general
support
of
the
Reserye
Board
the
board’s
price
fixing
authority,
were to be developed by the Postof­
pany have been $i95,633.75.
bids was illegal, Farley also called Brown outlined, the memorandum
he told the House Mullen was hand­
agreed to lay their differences fice Department in order to lighten and has not yet met opposition among “Colonel Lindbergh received a sal­ ling
“illegal” the extension of five con­ said, the provisions of the Watres have
Doherty tax cases before the In­
Bank.governors.
an official referee.
the burden of the air mail services Reserve
ary
from
Transcontinental
Air
Trans­
tracts beyond their normal date of subsidy bill and “invited suggestions before
Revenue Bureau.
- Supreme Court Justice ^ Ellis J. and ultimately create an economical­ In addition to some new legisla­ port of $10,000 a year in 1931 when ternal
expiration. These extensions to ex­ from those present as to the ways Staley
“I
have
never had an connection
said today that, under this ly independent transportation* indus­ tion there is a feeling in Reserve its operations were taken over by
piration d..tes, he said, were made by and means of assiting the pasenger
Bank quarters that some existing Transcontinental and Western Air. with any tax m atters for H. L. Do­
an order issued by the former second operators, inasmuch as it is under­ arrangement, he would reject appli­ try, the air mail contractors them­ laws
should be modified to invigorate “Colonel Lindbergh has had no herty or for the Cities Service Com­
assistant postmaster general, W. Irv­ stood none of the so-called strictly cation by the milk board for an in­ selves must be forced to develop a the dormant
capital market. The Se­ other investments in aviation com- pany,” Mullen told newsmen.
against the Brooklyn com­ passenger and express business.”
ing Glover.
passenger lines are breaking even junction
Leading the fight for fhe sales tax,
curities Act and the 1933 Backing
“There was,” Farley wrote, “no at­ and it is apparent they will need pany. His action is contingent, how­ Brown’s statement followed an Act
panies
since
1930.
Up
to
that
time
^Representative
McGugin, Republican,
been mentioned especially. he had had a total loss of$554.75 . RansaSj sa|d “until
tem pt whatever to readvertise said some assistance if they are to con­ ever, upon the creation of a special open letter by Postmaster General In have
we are willing to
one authoritative Treasury from investments in other aviation turn to a m anufacturers>
fund to protect farmers in event James A. Farley Wednesday night in
routes or re-award them, or emer­ tinue.”
saies levy
it was said today that how­ companies. He received a salary of
gency requiring them to be let with­ “The P. M. G.,” the memo contin­ the referee decides against the dairy. which Farley charged competitive quarter
budget will go unbalanced from
The condition is that the Delhvood bidding was abandoned and th at rep­ ever arrived at, an adequate and flu­ $10,000 a year as technical adviser the
out competitive bidding and the ued, “expressed the desire to know Dairy
year
to year.”
ent
supply
of
money
for
capital
needs
Company, when it comes time resentatives of 13 of the 14 aviation
course pursued was a part^ of the whether it is going to be possible for
to
the
Pennsylvania
railroad
for
three
He and his colleagues claimed the
pay its patrons, shall pay at its companies who attended the 1930 was essential to recovery. This source years',
conspiracy hereinafter mentioned.
the so-called pioneers to agree among to
administration
was plunging the gov­
described
credit
as
plentiful
and
cap­
“Extensions of these contracts for themselves as to the territory in own rates but deposit the difference meeting came out with lucrative ital as absent.
“Since
1931
he
has
received
a
sal­
ernment
farther
and farther into debt
a period of 10 years, under the so- which they shall have paramount in­ between these and the milk board awards.
ary
of
$1
a
year.
“Hundreds of small industries are “AH o f these facts are clearly set and that the pending measure, intend­
rates in a trust fund.
. called ‘certificate’ method, were arbi­ terest.
Extensions Considered Earlier
closing up simply because they can’t forth in detail in Colonel Lindbergh’s ed to raise $258,000,000 by revision
trarily made by Postmaster General “He outlined certain prospective This fund, the justice explains, will “The only extensions suggested by get
capital,” one official said. “ The answer to the questionnaire of the of the income tax law, was the first
Brown on May 3, 1930. Then Post­ routes that were in contemplation.” be deposited in a bank and held un­ the report' quoted which the depart­ Public
Works Administration is United States Senate special commit- ever presented in Gongrlss that ad­
til the referee’s decision.
master General Brown proceeded to It listed a series of routes.
ment
subsequently
authorized,”
said
mittedly would not balance the bud­
Harold J. Hinman, former su­ Brown in his statement, “were exten­ spending $3,000,000,000 but that ee^to investigate foreign and domes­ get.
build up, by the so-called ‘extensions’ It continued:
court justice, wil be the ref­ sions which the department had un­ won’t put hack to work the 6,000,000 tic, ocean, and air mail contracts,*
rof routes, part of the system of the “Colonel Henderson said: ‘I be­ preme
that $30,O6O,OOO,QOO employed This answer was mailed to the chair­ ' “With the budget unbalanced for
^thaited A ircraft and Transport Cor- lieve it\is quite possible for this eree.
der consideration before the meeting nfen
in the capital goods industries in man on January 10th. In the reply to five consecutive years,” said, MeGurf&eration, and the greater part of the group to work out a plan.’ He asked
of May 19th, and which would have 1929,”
“this bill marks the fifth con­
American Airways and the Transcon­ for instructions from the P. M. G. ns Fredonia Farmer Endt Own Life been made whether the industry ap­ The Reserve Board’s well-known this questionnaire, at the request of gin,
secutive milestone on the road that
tinental and Western Air Systems. to some policy. He mentioned exten­ Fredonia, Feb. 15.—William Sea- proved or disapproved the same.”
the committee he detailed all of leads
economist,
E.
A.
Goldenweiaer
.sug­
“This means, in simple terms, that sions and then assigning such exten­ wright, 55, well known farmer who The May 19th meeting was called, gested to a House committee this his financial transactions in aviation ment,”to the downfall of free govern­
\
of these companies had a con­ sions to some operator who has no lived in West Main Road, committed Brown said, at the suggestion of a forenoon a tempering of marginal re­ since the year 1924. Golonel Lind­
fe r part of a through route, a airmail contract. -He indicated that suicide in his home late Tuesday af­ representative of one of the passen­ quirements that the Fletcher Ray­ bergh has never received a g ift of onel Lindbergh offered to send any
otinenta! system could be the airmail contractors would be will­ ternoon by placing the musszle of a ger carriers that had no air mail con­ burn stocle market control bill seeks stock, from options or warrants, and dditionat information requested* Oft
t on that short line. These great ing to agree to such a plan,
shotgun in his mouth, and blowing off tracts, who “told me that some of
dearly states so in answer to Para­ January llth ha »eat the chairman a
ms were built in th at manner.” “Mr. Maddux feels that if they do a portion of his her'1 --He is sur­ the passenger carriers were com­ to set up.
graph 4 of the questionnaire*
wire offering to appear M et* the
Farley declared that “indeed, cer­ not receive an air mail contract they vived by his wife and * an,,
....
plaining that I had not made a vig­ CeateMteiel ffffotibf at tltia e i r t “In his letter of transmittel Col­ committee.” " .
FIGURES ON AIR*
PROFITS GIVEN
BY LINDBERGH
m a n y