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 ~ "' 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. * ---------------fi~------------------ *