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Aviation History
1934
1934 - 0145.PDF
PLIGHT. FEBRUARY 15, 1934 Powis are one of the youngest aircraft manufacturing firmsa visit to their factory is exceedingly educative They have studied the matter of economical productionvery carefully indeed, and for this reason they are able to turn out machines at the price they do. We havealready described the neat manner in which the plywood covering of the wing, and for that matter the fuselageetc., is held to the spars, ribs, longerons and struts by an ordinary office stapling machine during glueing. Thesestaples squeeze together the parts to be glued, more efficiently than do screws or tacks, and when the glue isdry they are quickly removed, leaving the surface absolutely clear and free for finishing. The finish is yetanother point about the " Hawk." Phillips & Powis have realised that machines for private use sell as much onfinish and comfort as they do on performance, and the new hand finish, which is standard on the " Hawk," iscertainly as good as that of the average motor car. The Titanine dope with which this is attained has been par-ticularly developed for the purpose, and the glass-like surface is achieved with only a very few coats, therebysaving the great weight of the 17 to 23 coats which it is understood is required by some of the American machines,about the finish of which a great deal has been advertised. This finish also has the advantage that it decreases theskin friction appreciably and adds to the performance of the machine. An Indication of the strength of the" Hawk " is gained from the knowledge that, in its standard form, it is strong enough to be fitted with anyengine up to 200 h.p. The firm has recently received recognition of its capabilities, by being approved fordesign by the Air Ministry. AMERICAN AVIATION FINANCEA LTHOUGH air mail poundage declined during 1933in the United States, due to a 60 per cent, increase in the postal rates, the restrictive effectsof this are gradually diminishing, and for the period July-October the poundage was 17 per cent, higherthan in the previous year. It is estimated that transport aeroplanes covered a 28 per cent, greater mileage in 1933than in 1932, that the number of passengers carried increased by about 10 per cent., and that the P.O. depart-ment provides about two-thirds of the operating Tevenues in the air transport business. About 25 milliondollars are said to be spent, by the American public and the Government, with the air transport companies for carryingmail, passengers and freight. Air mail provides about 75 per cent, of the gross income of the Aviation Corporation ofAmerica, about 72 per cent, of North American Aviation, and about 64 per cent, of the United Aircraft & Transport. The Wall Street Journal estimates that in the fiscal yearending June 30, 1934, Air Transport Aircraft would fly 51,700,000 miles, or 11.4 per cent, more than in 1933,and that they would carry 198,700,000 passengers, or 45 per cent, more than in 1933, and that the revenue frommail and express would be 27.8 per cent, and 20.8 per cent, higher respectively. The following notes have"been issued by Frazier Jelke & Co., and, while believed to be reliable, are furnished without responsibility. AVIATION CORPORATION, through American Airways,operates lines extending from New York and New England through the central States and over the southern route toCalifornia, and a direct service between New York and Chicago. It has 2,777,753 share of capital stock out-standing, and is believed to be controlled by the Cord interests. The cut in air mail payments reduced theprofits for the third quarter to 3 cents a share, as against 14 cents a share in the second quarter. The stock ralliedfrom a low level of 1| in 1932 to 16| last summer. CURTIS s WRIGHT CORPORATION is engaged chiefly in theproduction of aeroplanes and aero engines. Most of the company's airports have been sold, and it is understoodthat those retained are being operated at a loss. The company does not operate any air transport lines. Thecapital consists of a funded debt of 387,584 dollars, 1,147,321 shares of two dollar dividend non-CumulativeClass A stock which has never paid a dividend and 6,719,645 shares of Common stock. The company has never earnedanything-on the Common stock, but net profits were prob- ably sufficient to show about 65 cents a share on theClass A in 1933 compared with 8 cents a share in 1932 and 27 cents in 1931. They are reported to have obtained30 per cent, of the U.S. military orders in 1933 and a foreign business of 3,000,000 dollars, equal to almost 50 percent, of the total U.S. exports of aircraft. DOUGLAS AIRCRAFT CO., INC., also own no transportlines. Until 1933 military orders accounted for the major portion of their business, but recently they have enteredthe transport market. Capital consists of 467,403 shares of Common stock of no-par value. Their earnings have agood record, this being 1.19 dollars a share in 1929, 2.02 in 1930 1.60 in 1931, 20 cents in 1932, and estimated atabout 30 cents in 1933. PAN-AMERICAN AIRWAYS CORPORATION.—This companybus an aggressive expansion programme. Its routes cover more than 26,000 miles, with contemplated extensions tothe Far East and Alaska, and eventually to a trans-oceanic route. In the first half of 1933 its passenger volume was59 per cent, larger and its express 92 per cent, larger than in the first half of 1932. There are no estimatesof earnings for 1933, but those for 1931 and 1932 were 21 cents a share and 1.36 dollars a share respectively. SPERRY CORPORATION.—This is a holding company own-ing the entire capital stock of the Sperry Gyroscope capital and the Ford Instrument Co. 74.2 per cent, of thecapital stock of Intercontinent Aviation Corporation and 115,232 shares of Class A stock, and 401,951 sharesof Common Stock in the Curtiss Wright Corporation. Intercontinent Aviation Corporation operates a small linein South America. The Sperry Gyroscope and Ford Instrument companies are expected to benefit from thenew building programmes, but are not yet substantial earners. The 1933 earnings for the Sperry Corporationare estimated at about 30 cents a share. NORTH AMERICAN AVIATION CO., INC.—This companycontrols the General Aviation Co., which in turn owns 51 per cent, of the stock in Western Air Express, and a27 per cent, interest in Transcontinental Air Transport. The company is generously capitalised with 3,435,033 sharesissued. They earned 62 cents a share in 1929, 78 cents in 1930, 15 cents in 1931, and made a loss in 1932 and 1933. TRANSCONTINENTAL AIR TRANSPORT, INC.—A holdingcompany with 37£ per cent, interest in Transcontinental and Western Air, Inc. The latter has never distributedany dividends, and, the earnings of the holding company have been nominal. It operates the most direct routebetween California and New York, and may record a profit this year in spite of the lower air mail rates. UNITED AIRCRAFT & TRANSPORT CORPORATION.—Probablythe strongest unit in the aircraft industry. Its subsidiary, United Air Lines, conducts one of the largest transportair lines in the U."S.A., carries about 40 per cent, of domestic air mail, and receives about l/3rd of the Govern-ment's air mail expenditure. The company's manufacturing subsidiary produces the Pratt & Whitney " Wasp " and" Hornet " aero engines. At the end of December, 1932, current assets were 23,868,000, compared with 1,865,000current liabilities. All the company's Preferred Stock has been redeemed, leaving 2,100,000 shares of Common Stock,the only capital liability. Earnings for 1933 are estimated at about 1 dollar a share. It is believed that dividendjmay be initiated on the Common Stock during the present year. The stock has an active market and reached162 in 1929, and was as low as 6J in 1932. On December 20, 1933, Standard Trade & SecuritiesService summarised the position of aircraft manufacturers and the 1934 outlook as follows:—During the initial tenmonths of 1933 aggregate sales for all purposes were 16 per cent, higher than in the corresponding 1932 period,exports of aircraft and engines for the full year 1933 being estimated at 20 per cent, higher than 1932. Of therelatively little amount spent on U.S. military air equip- ment in 1933, Curtiss Wright and United Aircraft ar&believed to have obtained well in excess of 50 per cen* Deliveries of the new type transports by United AircraK.and Curtiss Wright subsidiaries have contributed the largest portion of the expensive transport business duringthe year. Douglas only recently commenced its deliveries for T. & W.A., and Pan-American Airways are providingsubstantial orders for large and costly flying boats in 1934. Apart from these contracts it is not expected that trans-port buying by American air lines will reach impressive figures until 1935. A further gradual revival is expectedfor 1934, but substantial profits betterment will be retarded by prevailing high wages and material costs. 145
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