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of air mail dispatched increased approximately 33 1/3% or 274,578 pounds, yet the Committee closed its eyes to this then currently constantly increasing monthly poundage and appropriated for the needs of the ensuing fiscal year without giving any consideration to the even then currently increasing air mail volume.
5. This case was decided in a manner which increased the applicants rate to an extent of approximately $250,000 annually.

5. That it was unnecessary to include in the appropriation any provision for a case then pending before the Interstate Commerce Commission in which was involved the rate of payment for the transportation of mail by air over one of the routes.

The comments of the members of the Committee as set forth in the published hearing, indicate that you felt, in appropriating the flat sum of $12,000,000 for the transportation of domestic mail by air, that you were even then still creating a subsidy to domestic mail by air, to an extent of about $6,000,000 per year. To use the words of your Chairman (lines 7 to 10 page 308) you felt "probably safe in assuming that the subsidy at the present time is running around $6,000,000 a year." The date of this statement was given as December 6, 1935. You were thinking of the fiscal year ending in June 30, 1936. The facts of the case are quite different from the thoughts apparently left with you. The payments during the period  you were considering have since been ascertained slightly to exceed $12,000,000.  The most pessimistic revenue has since been found to be in excess of $9,700,000, thus leaving a maximm estimated deficit of only approximately $2,300,000.

You will note that on hindsight it was found that the estimated revenue from air mail postage was in excess of $9,700,000 or more than $3,700,000 higher than the $6,000,000 estimated revenue mentioned to your Chairman when he, on

Transcription Notes:
The order of the fractured text above, in the first half of the page was decided as it is , in order to unite both 5 numerals in a subsequent fashion, in order to improve the readability and sense of the article transcribed. The underlined text was not marked as such to improve the flow of the text.