Air Mail Scandal 1934

Eleven years after the Wright Bros. launched their airplane in 1903, the St. Petersburg – Tampa Air Boat line started the first commercial airline passenger service in the US. Tickets were $5 for the 18 mi run between the 2 cities. Prior to that flights could only be taken on a rather ad hoc basis. But that was 1914.

Once World War I started, the US military had 83 pilots and 109 military air craft. By the war’s end in 1919, the military had trained more than 27,000 pilots and had purchased 10,500 air craft.

During the peacetime that followed, many pilots purchased surplus airplanes and tried to start their own airlines, but most people were afraid of flight, and all the war footage of airplanes crashing did not help.

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Safety concerns were a major issue. Since it’s inception by 1925, 31 out of the 40 the US Post Office pilots died in crashes.

Dean Smith, a survivor of that period, called the fraternity of early airmail pilots “a suicide club.” He said that “Only pilots desperate to fly would join it,” though he also noted, “you could at least be comfortable while life lasted.”

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In the early years, pilots flew in open cockpits, even in unpredictable weather.

According to one veteran airmail pilot, there was a 50/50 chance of engine failure on any given flight.

Airmail service was a working laboratory — wind,rain, ice, snow, and extreme temperatures revealed weaknesses and flaws in airplane design and maintenance.

Through trial and error, designs were improved and failures corrected.

The years that the Post Office Department ran the airmail service were like that—makeshift maneuvers, dangerous and unreliable equipment, and a collection of genuine characters flying the mail.

The Army Air Service continued to operate one trip per day from DC to NY  on a 6-day week, with Sundays off (for the pilots, not the ground crews) up until August 12, 1918, when  the Post Office Department took over the entire operation, using specially designed mail planes ordered from the Standard Aircraft Company of Elizabeth, NJ.

 

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First Air Mail Route

Standard JR-1B models were also Hisso powered, like the Army JN-4Hs,but had a 200pound mail capacity and a range of 280 miles.

While rarely if ever depicted in aviation history journals, these StandardJR-1Bs remain milestones in being the first civil aircraft specified and procured by the U.S. Government.

May-15-August 12 tour of duty on
the northeast corridor route were as follows:

  • 92 percent of schedule flights successfully completed.
  • 193,021 pounds of mail carried
  • 128,225 route miles flown without a signel fatality

All this was accomplished without aeronautical charts, no radios, no gyros, in open cockpits, and all during the height of the east coast summer thunderstorm season.

Pilots had to create their own way to calculate their distance, by time and speed. For Lindbergh, he chose to scratch etch marks in the cockpit.

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Post Office pilot James Hill once needed three whole cigars and part of another just to find New Jersey.

Hill had taken off from the airport in Cleveland, bound for New Brunswick on his leg of a regular airmail route.

He’d been told the weather was clear up to the Alleghenies, with cloud cover from there to the coast.

In the vicinity of Mercer, Pa., he finished an in flight cigar and looked at his airplane’s clock. The clock had stopped. Hill knew the distance from Cleveland to Mercer was 75 miles.

He also knew that he’d smoked an entire cigar. Doing a bit of math on the fly, he figured he needed to smoke three more cigars and two-fifths of a fourth in order to mark the 255 remaining miles.

 

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E. Hamilton Lee carried the mail on foot after a crash. (National Postal Museum)

When he got that far into the final cigar, he dipped below the cloud cover and found himself approaching Had­ley Field, outside New Brunswick.

The airmail service wasn’t really the Post Office’s idea; the National Advisory Committee for Aeronautics had suggested it. But Postmaster General Albert S. Burleson threw his weight behind the NACA proposal.

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He told Assistant Postmaster General Otto Praeger, who was given direct oversight, “The airmail once started must not stop, but must be constantly improved and expanded until it would become, like the steamship and the railroad, a permanent transportation feature of the postal service.”

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NACA advocated the airmail service to spur the development of facilities, routes and equipment that would also benefit the private sector.

Once landing strips were built for airmail traffic, they could be used by anyone, and the routes that airmail pilots charted would prove useful to commercial traffic of all sorts.

Furthermore, the need for quality commercial aircraft to carry the mail would lead to new designs that could be employed by the private sector.

That was the idea, at least. Implementing it was a bit of a challenge.

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The agency expected to pioneer the development of all these things understandably placed a premium on predictability and reliability. Both were in short supply during the early days of airmail.

Commercial airlines looked enviously at the European counterparts, who received government subsidies ($2.5 mil Germany and France , England $1.2 mil)   and had uniform safety regulations which were government enforced, so they appealed for congressional assistance.
Transferring mail bags in Philadelphia, PA, to an airplane bound for New York, May 1918.
After long debate of the role of government in such a process , it was approved and Pres.
Calvin Coolidge enacted the Kelly Act of 1925, which required the US Post to contract their services to private airlines.
Additional funding was given to improve navigational aids, radio communication, and provide weather information.
Through the 1920s, the original mail route expanded to incorporate “feeder routes” that connected major cities across the country.
Four were chosen, American, Eastern, Trans World and United, but they monopolized the industry and smaller airlines could not were unable to compete with their markets without the subsidies.
The Department’s purpose in developing airmail service was in part “to demonstrate to men of means” that commercial aviation was “a possibility.”
The demonstration succeeded. Private companies began flying mail under contract in February 1926, and by September 1927 all airmail was carried under contract.
In the days before passenger service, contracts for mail transportation sustained fledgling U.S. airlines.
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Alabama Senator Hugo Black 1937
That same year a democratic junior senator from Alabama, named Hugo Black was elected into his first term.
He was very opposed to monopolies, and after the 1929 stock market crash, ever more so.
He was told to lay low until after the 1930 election, but in 1929 he was invited by Sen.
Caraway to become a guest assistant on a Senate committee investigating lobbyists in D.C. and immediately immersed himself in the investigation , so much so, that he became known as “Chief Inquisitor”.
Part of his investigations were involved in the subsidies merchant marines shipping industry’s mail contracts, but extended into general mail contracts as a whole.
Initially, he never saw it as a witch hunt or a criminal trial, but as a vital  legislative technique which would lead to new legislation and  potentially save millions in public funds and collect back taxes.
The investigation exposed illegal profits in the process.

In 1930, Postmaster General Walter Brown pushed for legislation that would have another major impact on the development of commercial aviation.

 

Pilot William wild bill Hopson,

Known as the Watres Act (after one of its chief sponsors, Rep. Laurence H. Watres of Pennsylvania), it authorized the Post Office to enter into longer-term contracts for airmail, with rates based on space or volume, rather than weight.

In addition, the act authorized the Post Office to consolidate airmail routes, where it was in the national interest to do so.

Brown believed the changes would promote larger, stronger airlines, as well as more coast-to-coast and nighttime service.

Immediately after Congress approved the act, Brown held a series of meetings in Washington to discuss the new contracts.

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Walter Folger Brown

The meetings were later dubbed the “Spoils Conference” because Brown gave them little publicity and directly invited only a handful of people from the larger airlines.

He designated three transcontinental mail routes and made it clear that he wanted only one company operating each service rather than a number of small airlines handing the mail off to one another.

His actions brought political trouble that resulted in major changes to the system two years later.

Following the Democratic landslide in the election of 1932, some of the smaller airlines began complaining to news reporters and politicians that they had been unfairly denied airmail contracts by Brown.

One reporter, Fulton Lewis Jr. discovered that a major contract had been awarded to an airline whose bid was three times higher than a rival bid from a smaller airline.

Lewis wanted to expose the information, but his boss, William Randolph Hearst refused to let him publish his findings, so Lewis took it to Senator Black.

 

By 1933, Blacks name was all over  the front page of newspapers and even called a “useful Torquemada” by Newsweek.
Senator Hugo Black of Alabama called for hearings and by 1934 .
Black announced that he had found evidence of “fraud and collusion” between the Hoover Administration and the airlines, although these allegations were later found to be without basis.
The scandal had reached such proportions as to prompt President Franklin Roosevelt to cancel all mail contracts and turn mail deliveries over to the Army.
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Testimony from reluctant witnesses revealed 47 out of 52 ocean mail contracts without competitive bidding and that the firms they went to had planes built or refinished at government expense (over $400 mil and during the Depression , as well), then these firms would sell them to shipping companies at below cost prices, resulting in huge profits , with little to no capitol invested.
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Hugo L. Black: Cold Steel Warrior
By Howard Ball
It was an absolute scam and when called to testify one shipping magnates put on quite the theatrics. He said he was so terrified of Black’s  questions, that he had his doctor come in and check his pulse while on the witness stand.
Still, the abuses were egregious and had to be dealt with, harshly.
From 1934 the scandal had reached such proportions as to prompt President Franklin Roosevelt to cancel all mail contracts and turn mail deliveries over to the Army.

It had been 16 years since Army pilots had flown airline routes.

 

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They were unfamiliar with the mail routes. To make matters worse, the weather at the time they took over the deliveries in February 1934 was terrible.

In less than a month, by March 10, 1934, the Army Air Corps Mail Operation had endured 66 crashes or forced landings.

Twelve army pilots had died while flying the mail. World War I aviation legend (and then-current head of Eastern Air Transport) Eddie Rickenbacker publically referred to the service as “legalized murder.

Unprepared for the responsibility six army pilots died alone, after the first week and dozens would quickly follow leading to newspaper headlines that forced President Roosevelt to retreat from his plan only a month after he had turned the mail over to the Army.

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By means of the Air Mail Act of 1934, the government once again returned airmail transportation to the private sector, but it did so under a new set of rules that would have a significant impact on the industry.

Bidding was structured to be more competitive, and former contract holders were not allowed to bid at all, so many companies were reorganized.

The result was a more even distribution of the government’s mail business and lower mail rates that forced airlines and aircraft manufacturers to pay more attention to the development of the passenger side of the business.

4 thoughts on “Air Mail Scandal 1934

  1. Thank you! I was also surprised and the amt of money as well they scammed in the middle of the depression is crazy

  2. Fascinating info – thanks for sharing your research. I gasped out loud when I read this: “31 out of the 40 the US Post Office pilots died in crashes.” That is one dangerous occupation!

  3. This reminds me of the opera Volo di notte by Luigi Dallapicola (which I’ve seen several times here in Frankfurt), based on the novel Vol de nuit by Antoine de Saint-Exupéry.

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