AIR MAIL SCANDAL

New Zealand Herald, Volume LXXI, Issue 21727, 16 February 1934, Page 11

AIR MAIL SCANDAL

CHARGES OF GRAFT AMERICAN CONTRACTORS MINISTER'S STATEMENT ' COLLUSION WITH OFFICIALS By Telegraph—Press Association—Copyright (Received February 15, 5.5 p.m.) WASHINGTON. Feb. 14 In answer to widespread protests against the cancellation of the air-mail contracts, the Postmaster-General. Mr. J. A. Farley, published a detailed statement to-day, asserting that the contracts had been obtained by conspiracy or collusion. The Minister said that all the companies concerned had held conferences with the postal officials of the Hoover regime, divided routes, and decided what tenders should be offered. The Senate to-day declared two airways officials, William MacCracken, Junior, and L. H. Brittin. guilty of contempt for destroying air-mad correspondence. the production of which had been demanded by the Government. Each man was sentenced to 10 days' imprisonment in the district of Columbia gaol. AMERICAN SHIPPING MR. ROOSEVELT'S POLICY ADVOCATE OF SUBSIDIES (Received February 15, 5.5 p.m.) NEW YORK. Feb. 14 The Washington correspondent of the Associated Press telegraphs that President Roosevelt, in the course of an interview to-day, said he wanted a complete reorganisation of the ocean mail contract system. Mr. Roosevelt favours outright subsidies in place of the present form of Government aid to shipping, which aid he emphatically believes should be called by its right name of subsidies, instead of using the subterfuge, " mail contracts."

The President advocates subsidies to keep America on the seas. He is convinced that the wages of American sailors are higher than those of other countries.