MAIL CONTRACTS

Evening Post, Volume CXVIII, Issue 60, 8 September 1934, Page 14

MAIL CONTRACTS

THE OCEAN SERVICES

AMERICAN "SUBSIDIES" REDUCTIONS CONTEMPLATED (From "The Pet's" Representative.) NEW YOHJv, August 16. j Radical reductions in ocean and foreign mail contracts are contemplated by the United States Government, which has summoned 32 contractors to appear in October "to show cause why their contracts should not be modified or cancelled." Congress authorised rescission or modification if it were shown that excessive amounts were being paid. Forty-four ocean-going mail routes are comprised in the 32 contracts, which last year totalled £5,210,000. Had these mails been carried on the usual weight or- poundage basis, the cost would have- been £600;000, according to postal officials. The difference, they say, represents a virtual subsidy to the steamship companies. One company received £.72,000 for carrying mail that would have cost £5 10s on a weight basis; another received £69,600 for mail that would have cost £4 10s. The largest United States foreign mail contract is £6,000,000, paid to the Ripley Steamship Company for carrying mails \'rom New Orleans to North European and trans-Pacific ports. The United States lines receive £5,540,000 for the London and Hamburg mails. The Dollar Steamship lines receive £5,560,000 for the Manila and Colombo mail service. The Oceanic Steamship Company receives £2,600,000 for the Sydney, Auckland, and Melbourne mail, services, and an additional £1,060,000 for mails to Saigon and Dairen. The United Fruit Company receives £4,loo,ooo'for carrying mails'to Carib-' bean ports. In the event of cancellation or modification of such contracts the- President will assess compensation, subject to the contractors' right to appeal to the Supreme Court of the United States.