Evening Star Newspaper, March 17, 1935, Page 8

A-8 THE SUNDAY STAR, WASHINGTON, D. C, MARCH 17, 1935—PART ONE. FURTHER AIRMAIL RATE BOOSTS SEEN New Increases Expected to| Yield to Still Higher Schedules Later. Increased airmail rates ordered by the Interstate Commerce Commission in its surprise ruling announced Fri- day are expected to be merely a pre- liminary to further increases, it was learned yesterday as the House Rules Committee considered a special rule to permit the calling up of the new airmail bill on the floor of the House tomorrow At least two members of the I C. C. who wrote the exhaustive report cov- ering the airmail investigation of more than six months made by the commission are agreed further in- creases may have to be made to keep the air transport industry alive. The Post Office Department yester- day afternoon completed estimates which show that, on a basis of 95 per cent perfect performance, the airmail companies will earn between $1.300.- 000 and $1,350,000 more per year un- der the new I C. C. rates than at present. This, the air transport oper- ators say, will not be enough to keep them going. They estimate their 1935 losses at the present rates will total nearly $5.000,000 and that. under the new I C. C. schedules, their losses would exceed $3,500,000. | Miller Urges Higher Rates. Commissioner William E. Lee, sat with Chairman McManamy in the mail hearings, has expressed the opmion that the newly ordered air- mail rates may not be proper “for any cxtended period.” Commissioner Car- roll Miller, in a minority view. has stated that the rates just ordered | should generally be higher. In view of the divided opinion of the I. C. C. as to the justice of the new rates and the claims of the air transport operators that they still face dangerously large losses under the new rates, it is anticipated still further consideration of the whole | problem must be given by the com- mission. Commissioner Lee said that, in view of the comparatively short period covered by the records sub-| mitted to the commission on behalf | of the respondent airmail companies, the absence of a financial audit of the accounts of the respondent com- panies, and the changes which have | been occurring in airmail schedules 2nd other factors, the newly ordered ates may have to be changed soon. Lee Sees Need for Increase. The maintenance for a reason- ( ble period of time of a proper s! | m of uniform accounts and the estab- ishment of reasonably permanent mail hedules alone will, no doubt, in fu- proceedings require material anges in many if not all of those Commissioner Lee said. In explaining his belief that the tes ordered by the commission have en higher, Commissioner Miller said greater weight should have been ziven to the fact that the contract- ing companies as a whole are not able to earn operating expenses un- der the present rates and with the present volume of traffic. “They clearly are in poor financial condition,” Miller said The finding of the I. C. C. that| some of the airmail companies are noring both the law and their promises to pay pilots, in accordance with the scale fixed by the National Labor Board is expected to result in Federal action to compel their obed- ience. Rates Based on Board Wages. The I C. C, in fixing the new rates, has in every case based them upon the payment of Labor Board wages to pilots, mechanics and la- borers of the airmail lines. The pay- ment of such wages is prescribed by the existing airmail law as a condi- tion upon the awarding or extending and the holding of any airmail con- tract. As Congress prepared to act on the new airmail law it appeared likely that the airlines would win an amend- ment to the law permitting present airlines to engage in competitive serv- ices mow existing, though establish- ment of future competitive services is expected to be prohibited. The Mead bill. as reported to the House this week. would have for- bidden any airmail contractor to fly a passenger or express service off' the line of his airmail contract route! in competition with any service of another airmail contractor. This_provision would have com- pelled Pennsylvania Airlines to aban- don its Washington-Detroit service ind would have forced the abandon- ment of other important lines. A N FACES ARE EXACTLY ALIKE NO TWO STORES ARE EXACTLY ALIKE BUY AT KITT'S and be assured of prompt, courteous and reliable service LEONARD % THE COMPLETE NO DOWN PAYMENT as low as 15¢ a day S 1330 G N.W. Prices Begin at $99.50 KIT To Be Exhibited GEOGRAPHIC SOCIETY TO HAVE ASIATIC DISPLAY. This sketch of Princess Nirgidma of Torhut, made at Urmchi, Sin- kiang, is one of 26 paintings and 34 drawings by Alexander Iacov- leff of Asiatic’ lands and peoples which will be placed on exhibition in Explorers’ Hall at the National Geographic Society headquarters from March 29 to April 2. Iacove leff was the artist of the Citroen- Haardt trans-Asiatic expedition in which the National Geographic So- | ciety co-operated. The subject of | the sketch speaks English. studied | medicine in Brussells for several vears, speaking Frencli fluently, and also speaks Monggl, Chinese ' and Russian Will Join in Launching of New Drive on Tuber- culosis. Mrs. Franklin D. Roosevelt and representatives of five public health | and medical organizations, will join in launching a new national cam- paign against tuberculosis at a meeting here on March 30, it was announced yesterday by Mrs. Ernest | R. Grant, managing director of the District of Columbia Tuberculosis Association. The meeting will be held in the United States Chamber of Commerce Building at 7:30 p.m. Mrs. Roosevelt will speak on the “Health and Safety of Our Chil- dren.” She will be followed by Dr. Kendall Emerson, managing director of the National Tuberculosis Associa- tion. Other speakers will be Dr. Francis Trudeau of Saranac Lake Sanitarium, Dr. William Gerry Mor- gan, spokesman for the American Medical Association; Dr. Hugh S Cumming, surgeon general of the United States Public Health Service and Dr. George C. Ruhland, District health officer. Dr. Willilam Charles White, president of the local associa- tion, will preside. committee amendment to the House bill will permit the retention of these existing parallel and competitive lines. The bill, which is slated to reach the House floor tomorrow, would per- mit an expansion of the domestic air- mail set-up from a total of 29.000 to 32,000 route miles and the increase of annual airmail mileage flown from 40,0000,000 to 45,000,000 miles. It would authorize the I. C. C. to in- crease the rates of pay and would therefore legalize the commission or- der, which has just been issued. The Postmaster General would be given authority to designate routes and grant extensions under rather rigid limitations. 1 With the changes which have been | made, the bill is regarded favorably | by the airmail operators generally and by the Post Office Department and the administration, it is said. 0 TWO REFRIGERATOR T (S NA. 4730 EW STYLES - The Hub Offers Sensational -l # el | Something New in a 10-Pc. Dining Room Suite Exactly as pictured, the suite consists of a buf- fet, server, china cabinet, table and six uphol- stered seat chairs. Sturdily built and finished in burl walnut fronts; artistically finished through- out. $5.00 Down—The Hub New Round-Corner Studio in a Complete Outfit The last word in style and comfort. 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