Films, Flowers, Fruits

Air transport operators made one rate cut because they wanted to last week, prepared to take another because they had to. The voluntary reduction, as high as 50%, was made in air express rates by five airlines operating with Railway Express Agency. The other, and far more important, was a 10% cut in the base pay of all airmail operators, politely "suggested'' to them by Postmaster General Walter Folger Brown.

The mail operators, assembled in conference in Washington, were told by the Postmaster General that a "responsible"' company had offered to undertake the daylight flying of all U. S. airmail for 30-c- per mile. (Present average compensation, about 60-c- per mile.) He did not name the bidder, but most of the operators guessed it was Motorman Errett Lobban Cord whose Century and Century Pacific Lines fly frequent schedules out of Chicago, and between San Francisco and Los Angeles. In view of the limitation of the offer to daylight flying, the transport men did not take it as a serious threat. At the same time they well knew that the Postmaster General would insist on reduction of the threatened $600,000 deficit in the service for the fiscal year.

The express cut was made on routes to 117 cities served (for pick-up and delivery ) by Railway Express Agency. Sole purpose: to increase the business which last year totaled only 286,798 Ib. for all airlines; first nine months of 1931: 683,845 Ib.*

Regular, substantial express loads would go far toward putting the lines on a paying basis, but: 1) Rates are practically prohibitive, except for emergency shipments. Even the reduced rates are eleven times higher than rail express for a 50-lb. shipment from coast to coast. 2) There is no uniformity in practice. Some airlines coordinate with Railway Express Agency for ground handling, others with Western Union, others with Postal Telegraph. A few provide their own ground transportation and many offer none at all. Each system has its own rate schedule.

In a survey reported in the current issue of Aviation it was estimated that about 5% of the goods now being shipped by other means might be shipped by air if proper facilities were available at rates not more than three times those charged by mail agencies. But many observers believe that one-half of one percent would be a fairer estimate. Two typical concerns which felt that they might save money by shipping by air were White Truck Co. and Packard Motor Car Co., heavy shippers of spare parts. The White company estimated it could reduce its inventory of parts in 32 scattered service stations from $15,000,000 to $5,000,000.

Common items of cargo at present include motion picture films, newspictures, flowers, baby chicks, new style models of dresses, frozen fruits & vegetables, replacements for broken machinery.

*Figures from Aeronautical Chamber of Commerce.

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