Chicago and Southern Air Lines Annual Report 1950

r FOR THE YEAR ENDED DECEMBER 31,
1950
C* ~---........ >
CHICAliO AND SOIJTHERN* AIR LINES, INC.
Latest type Constellations
Add to comfort and maintain the con-
tinued safety of our passengers
Provide the travelling public _with
increased speed and convenience
CH I CA GO AND SO UTHE RN A IR L INES , , N c.
Municipal Airport Me:r:nphis 2, Tennessee
CARLETON PUTNAM SIDNEY A. STEWART
CHAIRMAN OF THE BOARD PRESIDENT
rep(Jrt to the stocl.holders
Your Company's net profit for 1950 was $856,035, equal to $1.68
a share, compared to $630,087 or $1.24 a share in 1949. This 1950
figure includes a profit of $320,909, after taxes and reserves, on the
sale of four DC-4's which had been depreciated down to an average
figure of $15,000 apiece. In 1950, however, your Company absorbed
$140,000 in training and other expenses relating to the Constellation
CONSTELLATION SERVICE OVER OMESTIC AND
T
TERNATIONAL ROUTES.
TOOK DELIVERY OF THREE NEW CONSTELLATIONS AND PAID FOR THEM
IN FULL WITHOUT BORROWING FUNDS OR EQUITY FINANCING.
PAID Two DIVIDENDS TOTALING 50 CENTS A SHARE IN 1950-
35 CENTS WAS PAID IN 1949.
1
2
program. While this write-off reduced the operating profit to
$994,061 compared to $1,165,060 in 1949, the major part of the
break-in costs of the Constellation program has now been absorbed
and will not be a burden on future operations.
During the year two dividends totaling 50 a share were paid
on the 509,326 shares of stock outstanding.
Five of the six Constellations on order have been received, paid
for out of Company funds, and are now in service.
C&S' domestic passenger miles were up 10% from 1949 com-
pared to an increase of 19% for the rest of the industry. This was
due primarily to the fact that for nine months during the year your
Company was operating with old equipment which put us in a poor
competitive position and made it impracticable to expand service
to the same extent as the rest of the industry. Since October 1st
when Constellation service was inaugurated, our relative position
has improved decisively.
Due largely to a thorough and comprehensive training program
for flight and ground personnel, the transition from DC-4's to
Constellations was accomplished with a minimum of cancellations
and significant delays.
Personnel relations continued on an excellent basis. Delivery
of our new equipment gave employee morale a system-wide boost
and the enthusiasm and loyalty of our personnel has been a major
factor in a successful year.
Airline travel has been stimulated in recent months by the
impact of defense activities and the outlook for the industry is
excellent. Higher costs, higher taxes, loss of personnel to the Armed
Services, and difficulties in obtaining spare parts will present some
problems, but with new equipment and a continuing record of safety
and reliability we look forward to increased business and satisfactory
results in 19 51.
By authority of the Board of Directors,
Chairman of the Board
April 6, 1951
JUNIUS H. COOPER
Vice President- Finance
financial report
Your Company's net profit for the year 1950 was
$856,035, equivalent to $1.68 a share on the capital
stock, after provision for state and federal income taxes
of $650,000. This compares with a net profit for 1949
of $630,087, or $1.24 a share after taxes of $463,000. The net income
for 1950 includes special items of $320,909, representing a capital
gain of $555,909 after applicable income taxes of $185,000 on four
DC-4 airplanes and related equipment sold, less a foreign reserve
provision of $235,000. Profits were earned on both domestic and
international operations.
Out of the net income of $856,035 for 1950, two cash dividends
totaling $254,663 were paid to stockholders and the remaining
$601,372 was added to earned surplus.
Operating revenues increased from $12,368,524 in 1949 to
$12,885,044 in 1950, a gain of 4.18 %. Passenger miles rose 7.8 % but
passenger revenue increased only 3.6.% because of the lower yield re-
sulting from competitive fare reductions and coach operations. Mail
operating
revenues
THOUSANDS OF DOLLARS
1936
For complete statistical information see pages 22 and 23
3,739
INTER-
NATIONAL
9,146
DOMESTIC
1950
3
4
pay declined $42,843 and in 1950 represented 25.3 % of total operat-
ing revenues compared with 26.7% in 1949. Express and freight
revenues in 1950 amounted to $662,174, a gain of 54.3 % over 1949.
All of our Constellation ferrying, training, advertising, and
other break-in expenses were written off as incurred. These plus
inflationary increases in wage rates and material prices increased our
seat mile costs 6.1 % in 1950. However, by carrying heavier loads in
all classes of revenue traffic, the costs per passenger mile and per
revenue ton mile were reduced below the 1949 level.
On your Company's domestic system passenger revenues in-
creased 7.4% in 1950 over 1949 and cargo revenues ( express and
freight) increased 46.5 %. The amount of mail pay received in 1950
was 3.0% less than in 1949, although the volume of mail carried
increased 16.8% . Our mail rate per ton mile was thus reduced from
$3.46 to $2.87. The passenger load factor rose from 53.3 % in 1949
to 56.3 % in 1950, and your Company moved up from tenth to eighth
place in load factor rank among the sixteen domestic trunk lines.
On your Company's international system 10% fewer seat miles
were operated in 1950 than in 1949, while passenger miles declined
less than 1 %. The passenger load factor was thus raised 3.3 per-
net

inco,ne
after taxes
THOUSANDS O.
F DOLLAR$
i,i
Loss in 1941
*Company reported for fical years from
1936 to 1942. Figures in all charts and tables
are adjusted to calendar years.
For complete statistical information see pages 22 and 23
195()
%
**Loss before Tax Cre,dit, 713
centage points. The volume of international freight more than dou-
bled in 1950 over 1949 and the ton miles of United States mail
carried on international flights increased 83.6% .
All expenditures to date on the $7,000,000 Constellation pro-
gram have been made from Company funds. Outstanding commit-
ments, less advance payments, amounted to about $2,500,000 at
December 31, 1950. In order to assure availability of the additional
funds that may be needed to complete this program, your Company
has entered into a loan agreement with four banks, under which
$2,000,000 may be borrowed at any time prior to July 31, 1951, on
unsecured notes repayable in quarterly 1nstallments over a two-year
period. No funds have been borrowed under this loan agreement as
of the date of this report.
Flight equipment at December 31, 1950, included three new Con-
stellation aircraft at a cost, including spares, of $3,725,290, against
which depreciation reserves of $130,919 had been accrued. Also
included in flight equipment were two DC-4's and twelve DC-3's,
all fully depreciated to residual values. The two DC-4 aircraft were
sold in March 19 51 after your Company had received delivery of
two additional Constellations.
net
worth
TH011$A.NDS Qij,, DOLLARS
1936
AT END OF YEAR
For complete statistical information see pages 22 and 23
6,058
1950
5
%r'" ERA T,IONS
($994,061)
t@
Non-operating n,ef lit come amounted to $511,974, representing prbf'd on the safe of A D C-4 airplanes, intere~.
, on Goverhment
securities, and gthtr non-operating income, less foreign operating reserve and oth'er non-operating deductio,ps. 'Thi~, made a
total net income before income taxes of $1,506,035, of wliich'--
43.2% WENT FOR FEDERALit 1'ND ST>\TE iNCOME t.AXES ($650,000)
16.9% WAS PAID OUT IM DIVIDEtibs ($254,663) "'
39.9% WAS RETAINED IN TRi BUSINESS ($601,372)
For actual dollar figures for 1950 and 1949 see page 17
I@
Current Assets m Excess of Current
Liabilities
OPERATING PROPERTY AND EQUIPM~T-:-
Airplanes, Spare Engines, Propellers, ..--~
and Parts for Maintenance; Equipment ("i---iJ
for Hangars, Ramps, and Offices--
Less Accrued Depreciation
Advance Payments on New Constellations
Ordered; Rent and Insurance Paid in
Advance; and Other Non-Current Assets
LESS RESERVES AND UNEARNED REVE
Capital Invested by Stockholders Plus
Accumulated Earnings Retained in the
Business Since May 23, 1938
BOOK VALUE PER SHARE OF CAPITAL S~K-
509,326 Shares Issued and Outstanding ~ ~
1950
$3,580,883
2,355,227
$1,225,656
4,161,807
1,112,693
$6,500,156
442,061
$6,058,095
$ 11.89
7
5.21
5.27
(.06)
8
new equipnaent
Early model Constellations have been in operation
on other air lines for the past five years. The latest type
purchased by Chicago and Southern incorporate all the
improvements found desinble during this period of
airline experience. Three of the six planes on order
were received in the fall of 1950 and service with these
was inaugurated between Chicago and Houston and
Chicago and Memphis on October 1st. With two more
in operation effective March 1, 19 51, your Company is now offering
the public the finest transportation available over most of its domestic
and international system.
4.52 5.20 5.42 3.70 3.70 4.59 5.39
4.62 4.60 4.87 3.84 3.70 3.61 5.33
(.10) .60 .55 (.14) .00 .98 .06
4.94 4.42 4.39
4.65 4.15 4.10
.29 .21 (.31)
4.63 5.20 4.53
4.84 4.55 4.09
3.98 4.50 4.26
4.09 4.16 3.86
(.11) .34 .40
950
doniestic operations
WILLIAM T. ARTHUR
Vice President- Operations
During 1950 the performance factor on your Com-
pany's domestic system was 97.8% compared to 96.8 %
in 1949. We were successful in further reducing con-
trollable delays. Although 1,362 departures were added
there were 15 less controllable delays than were experienced in
1949.
Utilization of equipment improved in 1950 and is currently at
one of the highest rates in the industry. Crew utilization also im-
proved, resulting in a more economical operation.
In 1950 your Company instituted a comprehensive training pro-
gram for flight and ground personnel. As a result, the Constellations
were placed in service with a minimum of difficulty. For example,
in October, the first month of operation, all Constellation flights
doniestic
,
operati,ig
r(!ve,iues
THOUSANDS OF DOLLARS
'1936
For complete statistical information see pages 22 and 23
9,146
530
__.- EXPRESS,
FREIGHT
AND OTHER
"'1,747
U.S. MAIL
6,869
PASSENGER
AND EXCESS
BAGGAGE
1950
9
10
international
operating
revenues
THOUSANDS OF DOLLARS
were completed. This is
believed to be a record
for the industry, as the
introduction of a totally
different type of aircraft
is usually accompanied
by serious delays and can-
cellations while personnel
are becoming familiar
with the new equipment.
3,739
241
---- FREIGHT
AND OTHER
- 1,515
U. S. MAIL
1,983
PASSENGER AND
EXCE~S BAGGAGE
1950
For complete statistical information see pages 22 and 23
international
operations
The slump in Venezuelan oil production which occurred in
1949 continued to affect our operations to some degree in 1950. How-
ever, with increased defense activities and the development of huge
iron ore deposits in Venezuela, we anticipate improvement in the
international picture for 1951.
Total revenue ton miles generated increased more than 10%
although the available ton miles offered decreased 12%. Revenue
passenger miles remained approximately the same but mail tonnage
went up 84% and freight tonnage more than doubled.
T. M . MILLER
Vice President-Traffic & Sales
traffic and sales
Comparing 1950 with 1949, domestic revenue pas-
senger miles increased 10% compared to 19% for the
industry. This discrepancy can be attributed to our
poor competitive position during the first nine months
of the year when we were operating DC-4's in compe-
tition with the Constellations and DC-6's of other ear-
ners. This condition began to improve in the last quarter when we
put our first Constellations in service and in the month of December
we showed a 60 % increase in passenger miles compared to 47% for
the industry.
Your Company has purchased two cargo earners known as
Speedpaks. These carriers resemble life boats and can be attached to
the belly of the Constellation providing space for as much as 7,000
pounds of cargo. With the help of these Speedpaks and expanded
potential due to the defense effort we anticipate a substantial increase
in freight loads in 1951.
,nail rates
We have been operating on a temporary international mail rate
since the beginning of international service in 1946 and the 19 50
results are based on this temporary rate. A series of conferences have
been held with the CAB staff regarding a permanent international
rate and a decision on this matter is expected shortly. Fjnal mail
rates on your Company's domestic system have been in effect since
1948.
Constellation Cocl?.pit
11
... ,. -~1111.
U3111i::llf~
e~ to NlWORlEAffS , 860
'.Cff~I' ~ EY-'ltVff.t! . ,. 262
OETtffl t<> HQUstQN ~ ~99
389 2ill()
t<~~$1T't' ,~.PHI$ ~
-~~
.lt"""'
',' -
.. ...,...,,,..,,,",, ..
. l p al - Havana .
N aciona O
T I I - 1 amaica
Beach at ower s e --------
MILLIONS OF
av1.1,ilable
seat miles_
~ MILLIONS OF
revenue
passenge,
mlles
route miles
in operation
MlUIONS OF
revenue
plane
miles
285
145
15
INTERNATIONAL
210
DOMEStlC
l!ll
27
INTERNATIONAL
118
DOMESnc
5,749
9.3
1,939
INTERNATIONAL
2,810
DOMESTIC
1.9
INTERNATIONAL
1.4
DOMESTIC
. es 22 and 23
For complete statistical information see pag
14
W. T. BEEBE
Vice President- Personnel
personnel
During the year 1950 our personnel relations con-
tinued on a satisfactory basis. Your Company dealt
with seven certified bargaining agencies- six domesti-
cally and one in Cuba. Our employee termination rate
continued at a low figure of 2.06% compared with what is generally
considered a normal turnover ratio of 3 % . Employee benefits, in-
cluding free and reduced transportation, a liberal sick-leave policy,
paid holidays and vacations, and group insurance, were continued.
Studies were made on a Retirement-Income Plan which it is hoped
can be introduced in 19 51.
It is expected that 1951 will find a substantial increase in the
number of employees called into the Armed Services. This may
well turn out to be one of the major problems encountered in 1951.
NUMBE
R OR
e,npleyees
1,345
1949 1950
For complete statistical information see pages 22 and 23
wages and
salaries* p,aid
$5,0&2~
4A2 $S,434,4ti
1949 1950
public relations
The introduction of new Constellation equipment helped us to
more than double the amount of news lineage received in newspapers
and magazines in 1949. Radio, television, direct mail and posters
were also used to advertise our services. Aviation news programs
prepared by your Company as a weekly public service feature were
continued in seven of our cities with C&S traffic managers acting as
commentators. By encouraging every C&S employee to sell our serv-
ice we have helped our community relations as well as our revenues.
R. S. MAURER
Vice President-Secretory
& General Counsel
GANAL ZONE
stockholders
Your Company had 2,522 stockholders residing in
40 states, the District of Columbia, the Canal Zone, and
the Virgin Islands. On December 1, 1950, the average
holding was 202 shares and 80% of the stockholders
owned 100 shares or less.
AN011'flE VIRGIN ISLAt;fD
:;..;:
S
;____ __ __ ___:.,. _____ ~--------'--'~--
15
16
Chieago and Southern Air Lines~ Ine.
DOMESTIC
Operating Revenues
Passenger and excess baggage ........... .
United States Mail ..................... .
Express and freight ..................... .
Miscellaneous .......................... .
Total Operating Revenues ................. .
Total Operating Expenses ................. .
Operating Profit or Loss* .................. .
Other Income or Deductions* (net) ........ .
Provision for Federal and State Income Taxes
Net Income or Loss* ...................... .
Operating Revenues
Passenger and excess baggage ............
United States Mail ......................
Express and freight ......................
Miscellaneous ...........................
Total Operating Revenues ..................
Total Operating Expenses ..................
Operating Profit or Loss* ...................
Other Income or Deductions* (net) .........
Provision for Federal and State Income Taxes
Net Income or Loss* .......................
INTERNATIONAL
Operating Revenues
Passenger and excess baggage ........... .
United States Mail. .................... .
Express and freight ..................... .
Miscellaneous .......................... .
Total Operating Revenues ................. .
Total Operating Expenses ................. .
Operating Profit or Loss* .................. .
Reserve Provision for Foreign Operations ... .
Other Income or Deductions* (net) ........ .
Provision for Federal and State Income Taxes
Net Income or Loss* ...................... .
Operating Revenues
Passenger and excess baggage ........... .
United States Mail ..................... .
Express and freight ..................... .
Miscellaneous .......................... .
Total Operating Revenues ................. .
Total Operating Expenses ................. .
Operating Profit or Loss* .................. .
Reserve Provision for Foreign Operations ... .
Other Income or Deductions* (net) ........ .
Provision for Federal and State Income Taxes
Net Income or Loss* ...................... .
1950
$6,869,179
1,747,319
468,337
61,496
$9,146,331
8,442,261
$ 704,070
393,516
425,000
$ 672,586
3.28
.83
.22
.03
4.36
4.02
34
.19
.21
.32
1950
$1,983,334
1,514,928
193,837
46,614
$3,738,713
3,448,722
$ 289,991
235,000
353,458
225,000
$ 183,449
2.64
2.01
.26
.06
4.97
4.58
39
.32
.47
.30
24
1949 1948
TOTAL AMOUNTS
$6,407,449 $6,148,222
1,800,384 1,891,989
319,722 321,940
56,175 70,090
$8,583,730 $8,432,241
7,783,557 7,797,320
$ 800,173 $ 634,921
16,322* 42,784*
313,000 146,000
$ 470,851 $ 446,137
CENTS PER SEAT MILE
3.18 3.28
.89 1.01
.16 .17
.03 .04
4.26 4.50
3.86 4.16
.40 .34
.01* .02*
.16 .08
.23 .24
1949 1948
TOTAL AMOUNTS
$2,153,413
1,504,706
109,434
17,241
$3,784,794
3,419,907
$ 364,887
65,000
9,349
150,000
$ 159,236
$1,048,967
909,610
56,444
5,590
$2,020,611
1,766,194
$ 254,417
2,923
64,000
$ 193,340
CENTS PER SEAT MILE
2.58 2.70
1.80 2.34
.13 .15
.02 .01
4.53 5.20
4.09 4.55
.44 ~
.08
.01 .01
.18 .16
79 7a
1947
$5,774,239
1,465,102
340,486
71,664
$7,651,491
7,853,822
$ 202,331 *
29,998*
$ 232,329*
3.00
.76
.18
.04
3.98
4.09
-:Ti*
.01 *
~*
1947
$
$
$
$
455,236
443,812
14,466
161
913,675
955,092
41,417*
2,257*
43,674*
2.31
2.25
.07
4.63
4.84
----:zi *
.01 *
Chieago and Southern Air Lines~ Ine.
OPERATING REVENUES:
Passenger and excess baggage .............. .
United States Mail (Note 1) .............. .
Express and freight ....................... .
Miscellaneous (Net) ...................... .
Total operating revenues ............... .
OPERATING EXPENSES:
Flying and ground operations ............... .
Maintenance ............................ .
Traffic, sales and advertising ............... .
General and administrative ................. .
Depreciation (Note 3) .................... .
Total operating expenses ............... .
NET INCOME FROM OPERATIONS
PROVISION FOR INCOME TAXES
( Note 4) ............................... .
OTHER INCOME (Net) ................. .
NET INCOME BEFORE SPECIAL ITEMS.
SPECIAL ITEMS:
Profit on sale of DC-4 aircraft and related
spares (less $185,000 applicable Federal income
taxes) ................................ .
Reserve provision for foreign operations ...... .
NET INCOME INCLUDING SPECIAL
ITEMS ................................ .
1950
$ 8,852,513
3,262,247
662,174
108,110
$12,885,044
$ 5,533,204
1,920,314
2,734,347
816,184
886,934
$11,890,983
$ 994,061
465,000
6,065
$ 535,126
$ 555,909
235,000
$ 320,909
$ 856,035
(SINCE MAY 23, 1938) FOR THE YEAR ENDED DECEMBER 31
BALANCE DECEMBER 31, 1949
Net income including special items ........................... .
Cash dividends of 50 a share ............................. .
BALANCE DECEMBER 31, 1950 ....................... .
* Denotes red figures.
The accompanying notes are an integral part
of these statements.
1950
$ 563,078
856,035
$ 1,419,113
254,663
$ 1,164,450
17
18
CURRENT ASSETS:
Cash ........................... .
United States Government securities ..
Receivables from-
United States Post Office ......... .
Air lines, customers, agencies, etc .. .
Maintenance and operating supplies ..
Total current assets ............ .
OTHER ASSETS:
Advance payment on new Constellation
aircraft (Note 2) ............... .
Prepaid rents, insurance, etc ......... .
Miscellaneous .................... .
OPERATING PROPERTY AND
EQUIPMENT:
Cost
1950
1949
Flight
Equipment
(Note 3)
$6,348,655
4,426,909
Depreciation reserves
1950 ..... $2,698,284
1949 . . . . . 3,691,899
Other
Property and
Equipment
$1,281,837
1,101,747
$ 770,401
653,243
FRANCHISES AND GOODWILL
$1,997,868
404,854
956,817
221,344
$3,580,883
$ 687,500
294,737
130,455
$1,112,692
$7,630,492
3,468,685
$4,161,807
$ 1
$8,855,383
CURRENT LIABILITIES:
Accounts payable and accrued
liabilities ...................... .
Federal and state income taxes ...... .
Air travel plan deposits ........... .
Total current liabilities ....... .
UNEARNED REVENUE ........ .
RESERVE FOR FOREIGN
OPERATIONS ................. .
CAPITAL STOCK AND SURPLUS:
Capital stock - authorized 650 000
shares, without nominal or 'par
value; issued and outstanding
509,326 shares .................. .
Earned surplus since May 23, 1938 .. .
The accompanying notes are an integral part of these statements.
1950
$1,446,235
710,092
198,900
$2,355,227
$ 142,061
$ 300,000
$4,893,645
1,164,450
$6,058,095
$8,855,383
19
20
Chieago and Southern Air Lines!) lne.
I. Domestic mail revenue from the United States Government has been
based on final rates fixed by the Civil Aeronautics Board in a rate
order issued on July 2 8, 1948.
International mail revenue from the United States Government has
been based on temporary rates fixed by the Civil Aeronautics Board
in rate orders issued on March 20, 194 7, and May 6, 1948. The
final rates for international mail pay will be retroactive to the begin-
ning of service on November 1, 1946, and may be lower than the
temporary rates.
2. The Company has entered into a contract with Lockheed Aircraft Cor-
poration for the purchase of six new Constellation aircraft, together
with related spares. Three of these aircraft and a portion of the
spares were received and paid for in full in 19 5 0. Outstanding com-
mitments for the remaining three aircraft and spares, less advance
payments made thereon, aggregated approximately $2,500,000 at
December 31, 1950.
The Company has entered into a loan agreement with four banks under
which it may borrow up to $2,000,000 prior to July 31, 19 51, on
unsecured notes repayable quarterly over a two-year period. No
funds have been borrowed under this loan agreement to date.
3. At December 31, 19 5 0, the Company's fleet consisted of three new
Model 649 Constellations, twelve DC-3's, and two DC-4's. Four
of the six DC-4 aircraft in service at January 1, 19 5 0, were sold
during the year and the remaining two were sold in March 19 51.
The DC-3's were fully depreciated to a residual value of $3,000
each at December 31, 1948; the DC-4's were fully depreciated to
a residual value of $10,000 each at August 31, 1950; and deprecia-
tion of the Constellations to a residual value of $50,000 each at
December 31, 19 5 5, was started as these aircraft were placed in
scheduled service ( two in October and one in December 19 5 0). It
is estimated that the annual depreciation on Constellation aircraft
will be approximately $1,350,000 when all six are in service.
4. The Company has no excess profits tax liability for 1950.
5 Stock purchase warrants are outstanding to two officers, entitling one
to acquire 10,000 shares of capital stock and the other to acquire
5,000 shares of capital stock at a price of $10 per share prior to
19 5 6. The market quotations of the capital stock at the date of fix-
ing the price of the warrants were less than $10.
ARTHUR ANDERSEN & Co.
ACCOUNTANTS AND AUDITORS
506 0L:IVE STREET
ST.LOUIS 1
TO THE STOCKHOLDERS OF
CHICAGO AND SOUTHERN AIR LINES, INC.:
We have examined the balance sheet of CHICAGO
AND SOUTHERN AIR LINES, INC. (a Delaware
corporation) as of December 31, 1950 and the related
statements of income an~ surplus for the year then ended.
Our examination was made in accordance with generally
accepted auditing standards, and accordingly included
such tests of the accounting records and such other audit-
ing procedures as we considered necessary in the circum-
stances.
In our opinion, the accompanying balance sheet and
related statements of income and surplus present fairly
the financial position of Chicago and Southern Air Lines,
Inc. as of December 31, 1950 and the results of its op-
erations for the year then ended, and were prepared in
conformity with generally accepted accounting prin-
ciples applied on a basis consistent with that of the pre-
ceding year.
St. Louis, Missouri
March 23, 1951
21
CaMPARAT:VE
*
* STATISTICS
:
~ - -L~ ~
d
clt .,
\t\th
~ ~.~
a:.tU .. ~ \~~Ji)
ill
_., .- ....
; ~--
Net Net Income Net Income Dividends Paid Number Wages Revenue Available Revenue Passenger
Operating Operating Income before Income after Income Taxes on Common Stock Earned of and Plane Miles Flown Seat Miles Flown Passenger Miles Flown Load Factor
Revenues Expenses from Op- Income Taxes Surplus Persons Salaries
erations Taxes Total Per Share Total Per Share Employed Paid Domestic lnternat'l Domestic lnternat'I Domestic lnternat'l Domestic lnternat'I
THOUSANDS THOUSANDS THOUSANDS THOUSANDS THOUSANDS THOUSANDS THOUSANDS THOUSANDS THOUSANDS THOUSANDS THOUSANDS THOUSANDS THOUSANDS THOUSANDS THOUSANDS
PERCENT PERCENT
OF DOLLARS OF DOLLARS OF DOLLARS OF DOLLARS OF DOLLARS OF DOLLARS DOLLARS OF DOLLARS DOLLARS OF DOLLARS OF DOLLARS OF MILES OF MILES OF MILES OF MILES OF MILES OF MILES
1950 12,885 11,891 994 1,506 650 856 $1.68 255 $0.50 1,164 1,296 5,434 7,436 1,884 209,814 75,212 118,131 27,090 56.3% 36.0%
1949 12,369 11,204 1,165 1,093 463 630 1.24 178 0.35 563 1,345 5,082 7,497 1,817 201,599 83,559 107,440 27,327 53.3 32.7
1948 10,453 9,564 889 849 210 639 1.26 None None 111 1,350 4,576 7,096 806 187,381 38,854 105,744 13,196 56.4 34.0
1947 8,565 8,809 244* 276* None 276* 0.54* None None I ,582f 1,394 4,433 7,118 473 192,132 19,747 112,564 6,700 58.6 33.9
1946 8,750 9,445 695* 713* 237 476* 0.93* None None 719f 1,771 4,753 8,108 74 196,290 2,306 137,844 895 70.2 38.8
1945 4,849 4,556 293 298 125 173 0.56 77 0.25 288 1,375 2,481 5,279 (a) 109,596 (a) 86,877 (a) 79.3 (a)
1944 2,947 2,775 172 223 94 129 0.44 73 0.25 193 761 2,337 2,882 (a) 59,654 (a) 49,242 (a) 82.6 (a)
1943 2,268 2,243 25 168 68 100 0.34 143 0.625 100 932 2,730 2,179 {a) 42,057 (a) 35,293 (a) 83.9 (a)
1942 2,100 1,652 448 380 162 218 0.95 84 0.50 133 890 1,251 2,210 (a) 45,720 (a) 28,438 (a) 62.2 (a)
1941 1,732 1,735 3* 23 24 I* 0.01* None None 35 401 760 2,328 (a) 46,813 (a) 23,414 (a) 50.0 (a)
1940 1,191 1,235 44* 52 3 49 0.16 None None 8 272 568 1,983 {a) 32,152 (a) 15,979 (a) 49.7 (a)
1939 863 776 87 81 22 59 0.35 15 0.15 65 163 391 1,769 (a) 15,932 (a) 9,242 (a) 58.0 (a)
1938 746 660 86 79 10 69 0.44 None None 48 147 315 1,442 (a) 14,357 (a) 6,895 (a) 48.0 (a)
1937 606 620 14* 21* None 21* 0.21* None None 59f 111 223 1,344 (a) 13,405 (a) 5,154 (a) 38.4 (a)
1936 508 514 6* 16* None 16* 0.16* None None 16f 100 106 I, 135 (a) 9,742 (a) 3,720 (a) 38.2 (a)
* Loss Note: (a) International Service Was Inaugurated on November I, 1946
Credit 22 23
f Deficit
24
(;hieago and Southern Air Lines!t Ine.
GENERAL OFFICES, MEMPHIS MUNICIPAL AIRPORT, MEMPHIS 2, TENNESSEE
CORPORATE OFFICE, 100 WEST TENTH STREET, WILMINGTON, DELAWARE
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"'
ti i rtti ttrs
- - - -
SIDNEY A. STEWART
JUNIUS H. COOPER
CARLETON PUTNAM
L. RAYMOND BILLETT
]OHN R. LONGMIRE
ttis
CARLETON PUTNAM ............. ...................... Chairman of the Board
SIDNEY A. STEWART ............................................. President
JUNIUS H. COOPER ................................. Vice President-Finance
WILLIAM T. ARTHUR ............................ Vice President-Operations
R. S. MAURER .................. Vice President-Secretary and General Counsel
T. M. MILLER .............................. Vice President-Traffic and Sales
W. T. BEEBE ..................................... Vice President-Personnel
T. F. HA1\1BLETON .......................................... Treasurer
R. S. SCRIVENER ......................................... Assistant Treasurer
E. MURRAY ........................................... . Assistant Secretary
transfer agent '
MISSISSIPPI VALLEY TRUST COMPANY
Broadway and Olive Street
St. Louis, Missouri
registrar
BOATMEN'S NATIONAL BANK
Broadway and Olive Street
St. Louis, Missouri
co-transfer agent
NORTHERN TRUST COMPANY
South LaSalle & West Monroe Streets
Chicago, Illinois
co-registrar
AMERICAN NATIONAL BANK AND
TR UST COMP ANY OF CHICAGO
Chicago, Illinois
listed
Printed in U.S.A.
NEW YORK CURB EXCHANGE AND
MIDWEST STOCK EXCHANGE
Designed and produced byPJCK-S, N. Y.
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