Frozen Fizzle

With the fizzle of a damp firecracker, the great airmail uproar of 1934 finally petered out last week with passage by Congress of the Administration's Air Mail Bill virtually "freezing" the industry in its current setup. Sure of White House signature, the McKellar-Mead Bill, as finally adopted, leaves the present top rate (33 1/4-c- per mile up to 300 lb., 40-c- over that) as the maximum under which the Interstate Commerce Commission may fix compensation.

The bill empowers the Postmaster General to designate three primary routes across the continent; contractors are limited to one primary and three secondary routes. As a result of pressure from the Pacific Coast, United Air Lines' Seattle-San Diego route has been designated as secondary so that United may keep both that and its northern transcontinental airway. Still barred from the companies are persons involved in "unlawful" (i. e. pre-Farley) contracts. Officers' salaries are limited to $17,500 a year.

Since the major airlines have purchased new, economical equipment since cancellation, and since much bigger and still more economical planes are now abuilding, most of the companies were apparently fairly well satisfied last week to preserve their status quo. With passengers for June setting an all-time record (73,896), they were looking forward to a time when profits might be possible with no mail subsidy at all.

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