Wrong Righted

First New Deal act to provoke widespread U. S. criticism was the abrupt cancellation by President Roosevelt and Postmaster General Farley in 1934 of every U. S. airmail contract because of alleged collusion. For two months the Army flew the mails, at a cost of 13 lives (TIME, Feb. 19, 1934 et seq.). When this fiasco forced the Government to back down, return the airmail to the commercial lines after ousting nearly 20 top men in the industry, all the airlines involved brought suits totaling some $15,000,000 against the Post Office Department. Last week the Government settled the $9,000,000 suits of American, Northwest, Transcontinental & Western and Western Air Express out of court for $600,000, thus tacitly admitted that, in part at least, its 1934 action had been wrongful and unwarranted.

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