New York, Feb. 5, American offdials here of China Airways Federal Me. to-day ex: pressed surprise over a newspaper report than the National Govern-ordered a company's mail and passenger contract.
No confirmation of the report, jcou'd be obtained and it was pointed its own, volition, although it might endes Jour to repudiate its own part in the The officials emphasized that the air mali and passenger business in recently in a letter: to.this paper in which the writer showed that three recent issues-of the ""North-China weighed one pourd, would mean that: under the contract, the Government was paying the' American concern: $6 for carrying three issues whilst the return to the Government, according to the air mail rate on newspapers, was greatly under $1 for the same number of papers.
'Thus the Government was getting much the worst of the bargain for whilst its expenses were running at' the rate of U. S. $1,548 each day, there was not nearly sufficient mail: being sent over the air route to make up anywhere near this amount, We have learned that the daily average weight of air mail matter for December, when the Government was sending newspapers, was 208 pourie whilst that for Tansary, after papers had been held ack, was only 58 pounds.
So it, ie shown that for January the daily income to the Government ]was Mex, $248 and its outlay U.S.
$1,518.
'New on the other hand it is seen that this daily carriage of 58 pounds, the payment to the China Airw in the contract, consists of very' Uittle cash but considerable in the way of promissory notes of long. duration. Here is one complaint of the company in their contention. that they wish for a revision of the contract as much as the Governy ment does, so that they can work Out a scheme for increasing thei monthly income of cash from the Thus. also do the figures of carlage, for January prove hat the profit of some $6,030 to the Government, "which the air Tine company worked out as doing posible with oad of 900 the full pounds each day for the full trip, is a dream while the public is using the air ma as little as it does at present.
While officials of the Post Office refused to express, any opinion on the situation, they agreed the figures set out, above and said that here was the obvious reason of why the Govern: ment is not over enthusiastic ubout the contract as it stands at present.
Still again the "Anierican compa pointed that—the Ministry of Communications ws running a competing air me to Nanking over which they believed the majority of the air was being sent, This was in t violation qf the contract which gave the American Company the exclusive right to carry mail by air between these two points.
The company state further that they were forced to the figures given in the contract as the basis added, no cancellation ut the present contract. was contemplated pending negotiations. for its. revision. The <porsistent report that this contract had alrendy been cancelled by the National Government, he concluded, was therefore erroneous—Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.