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<p>[QUOTE="Bookahtoo, post: 9608266, member: 31"]From Wikipedia:</p><p><br /></p><p><i>The air mail scandal began when an officer of the New York Philadelphia and Washington Airway Corporation, known as the <a href="https://en.wikipedia.org/wiki/Ludington_Airline" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://en.wikipedia.org/wiki/Ludington_Airline" rel="nofollow">Ludington Airline</a>, was having a drink with friend and Hearst newspaper reporter <a href="https://en.wikipedia.org/wiki/Fulton_Lewis" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://en.wikipedia.org/wiki/Fulton_Lewis" rel="nofollow">Fulton Lewis Jr.</a> Ludington Airline, established and owned by brothers <a href="https://en.wikipedia.org/wiki/Charles_Townsend_Ludington" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://en.wikipedia.org/wiki/Charles_Townsend_Ludington" rel="nofollow">Townsend and Nicholas Ludington</a>, began offering an hourly daytime passenger shuttle on September 1, 1930, just two weeks after Eastern Air Transport (EAT) began its first passenger operations between New York City and <a href="https://en.wikipedia.org/wiki/Richmond,_Virginia" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://en.wikipedia.org/wiki/Richmond,_Virginia" rel="nofollow">Richmond, Virginia</a>. Using seven <a href="https://en.wikipedia.org/wiki/Stinson_Airliner" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://en.wikipedia.org/wiki/Stinson_Airliner" rel="nofollow">Stinson SM-6000B tri-motors</a>, <b>Ludington Airline became the first U. S. airline in history to make a profit carrying nothing but passengers.</b> However it began operating in the red when the novelty of cheap air travel wore off as the Great Depression deepened and competition with arch-rival EAT intensified. The Ludington officer mentioned to Lewis that in 1931 the carrier could not get a proposed "express service" air mail contract to extend CAM 25 (Miami to Washington via Atlanta) to <a href="https://en.wikipedia.org/wiki/Newark,_New_Jersey" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://en.wikipedia.org/wiki/Newark,_New_Jersey" rel="nofollow">Newark, New Jersey</a>, not even by submitting a low bid of 25 <a href="https://en.wikipedia.org/wiki/Cent_(currency)" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://en.wikipedia.org/wiki/Cent_(currency)" rel="nofollow">cents</a> a mile. Ludington's general manager, former Air Service aviator <a href="https://en.wikipedia.org/wiki/Eugene_Luther_Vidal" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://en.wikipedia.org/wiki/Eugene_Luther_Vidal" rel="nofollow">Eugene L. Vidal</a>, eager to curtail Ludington's growing losses with a lucrative mail subsidy, had offered the extremely low bid to Brown in order to demonstrate Ludington's commitment to the route extension plan "at or below cost."<a href="https://en.wikipedia.org/wiki/Air_Mail_scandal#cite_note-13" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://en.wikipedia.org/wiki/Air_Mail_scandal#cite_note-13" rel="nofollow">[11]</a><a href="https://en.wikipedia.org/wiki/Air_Mail_scandal#cite_note-14" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://en.wikipedia.org/wiki/Air_Mail_scandal#cite_note-14" rel="nofollow">[12]</a><a href="https://en.wikipedia.org/wiki/Air_Mail_scandal#cite_note-15" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://en.wikipedia.org/wiki/Air_Mail_scandal#cite_note-15" rel="nofollow">[n 3]</a></i></p><p><i><br /></i></p><p><i>Lewis did not think much about the conversation until he later read the <b>Post Office Department's announcement that had awarded Ludington's arch-rival the CAM 25 air mail route contract at 89 cents a mile as measured against Ludington's extremely low bid. By February 1933 Ludington was virtually bankrupt and sold out to EAT for a "bottom basement price of $260,000."</b><a href="https://en.wikipedia.org/wiki/Air_Mail_scandal#cite_note-16" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://en.wikipedia.org/wiki/Air_Mail_scandal#cite_note-16" rel="nofollow">[13]</a> Lewis sensed there was a story to be written. He brought the story to the attention of <a href="https://en.wikipedia.org/wiki/William_Randolph_Hearst" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://en.wikipedia.org/wiki/William_Randolph_Hearst" rel="nofollow">William Randolph Hearst</a> and, although Hearst would not print it, was given approval to investigate the story full-time.<a href="https://en.wikipedia.org/wiki/Air_Mail_scandal#cite_note-17" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://en.wikipedia.org/wiki/Air_Mail_scandal#cite_note-17" rel="nofollow">[n 4]</a></i>[/QUOTE]</p><p><br /></p>
[QUOTE="Bookahtoo, post: 9608266, member: 31"]From Wikipedia: [I]The air mail scandal began when an officer of the New York Philadelphia and Washington Airway Corporation, known as the [URL='https://en.wikipedia.org/wiki/Ludington_Airline']Ludington Airline[/URL], was having a drink with friend and Hearst newspaper reporter [URL='https://en.wikipedia.org/wiki/Fulton_Lewis']Fulton Lewis Jr.[/URL] Ludington Airline, established and owned by brothers [URL='https://en.wikipedia.org/wiki/Charles_Townsend_Ludington']Townsend and Nicholas Ludington[/URL], began offering an hourly daytime passenger shuttle on September 1, 1930, just two weeks after Eastern Air Transport (EAT) began its first passenger operations between New York City and [URL='https://en.wikipedia.org/wiki/Richmond,_Virginia']Richmond, Virginia[/URL]. Using seven [URL='https://en.wikipedia.org/wiki/Stinson_Airliner']Stinson SM-6000B tri-motors[/URL], [B]Ludington Airline became the first U. S. airline in history to make a profit carrying nothing but passengers.[/B] However it began operating in the red when the novelty of cheap air travel wore off as the Great Depression deepened and competition with arch-rival EAT intensified. The Ludington officer mentioned to Lewis that in 1931 the carrier could not get a proposed "express service" air mail contract to extend CAM 25 (Miami to Washington via Atlanta) to [URL='https://en.wikipedia.org/wiki/Newark,_New_Jersey']Newark, New Jersey[/URL], not even by submitting a low bid of 25 [URL='https://en.wikipedia.org/wiki/Cent_(currency)']cents[/URL] a mile. Ludington's general manager, former Air Service aviator [URL='https://en.wikipedia.org/wiki/Eugene_Luther_Vidal']Eugene L. Vidal[/URL], eager to curtail Ludington's growing losses with a lucrative mail subsidy, had offered the extremely low bid to Brown in order to demonstrate Ludington's commitment to the route extension plan "at or below cost."[URL='https://en.wikipedia.org/wiki/Air_Mail_scandal#cite_note-13'][11][/URL][URL='https://en.wikipedia.org/wiki/Air_Mail_scandal#cite_note-14'][12][/URL][URL='https://en.wikipedia.org/wiki/Air_Mail_scandal#cite_note-15'][n 3][/URL] Lewis did not think much about the conversation until he later read the [B]Post Office Department's announcement that had awarded Ludington's arch-rival the CAM 25 air mail route contract at 89 cents a mile as measured against Ludington's extremely low bid. By February 1933 Ludington was virtually bankrupt and sold out to EAT for a "bottom basement price of $260,000."[/B][URL='https://en.wikipedia.org/wiki/Air_Mail_scandal#cite_note-16'][13][/URL] Lewis sensed there was a story to be written. He brought the story to the attention of [URL='https://en.wikipedia.org/wiki/William_Randolph_Hearst']William Randolph Hearst[/URL] and, although Hearst would not print it, was given approval to investigate the story full-time.[URL='https://en.wikipedia.org/wiki/Air_Mail_scandal#cite_note-17'][n 4][/URL][/I][/QUOTE]
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