Chicago and Southern Air Lines Annual Report 1951

Serving a
growing area:
Chicago and Southern's routes cover territories
which a.re rapidly growing in commercial
activity and importance. Our planes connect the
industrial cities of the Midwest with the booming
South and Gulf Coast. They carry an increasing
number of tourists to the attractive vacation
resorts in Havana and Jamaica. They link the oil
and mining enterprises of Venezuela with the
industrial centers of the United States. Excel-
lent connections carry the traveler to Rio de
Janeiro and other South American points.
CHICAGO
TERRE HAUTE
KANSAS CITY
ST. LOUIS
SPRINGFIELD
LITTLE ROCK
HOT SPRINGS
PINE BLUFF
EL DORADO
SHREVEPORT
BEAUMONT-PORT ARTHUR
HOUSTON
DETROIT
TOLEDO

FT. WAYNE

INDIANAPOLIS


EVANSVILLE
PADUCAH

* MEMPHIS



GREENWOOD

JACKSON



NEW ORLEANS
16th
~!/lepo,t
FOR THE YEAR ENDED DECEMBER 31
1951
CHICAliD AND SDIJTHERN AIR LINES, INC.
GENERAL OFFICES: MUNICIPAL AIRPORT, MEMPHIS 14, TENNESSEE
*
Highlights
Earned $1,130,959 or $2.22 a share-----; highest
on record and first time over a million dollars.
Paid two dividends totaling 65 cents
a share - highest ever paid.
Increased domestic passenger miles 42.3 percent.
Rest of industry gained 31.6 percent.
Took delivery of last three Constellations, getting
full fleet of six in service by midyear.
Ordered ten new 44-passenger Convair 340's
for delivery beginning in June 1953.
Obtained final international mail rate for both
past and future periods. Entire system now operating
on final rates not subject to retroactive adjustment.
Reduced dependency on subsidy by carrying
more mail for less mail pay, while sharply
increasing non-mail revenues.
Terminated the Voting Trust.
Completed 15 years of perfect safety.
The Annual Meeting of shareholders will be held at the general offices of the Company in Memphis on
May 6, 1952 (the first Tuesday in May) at 2:00 P.M. Notice of this meeting, together with a proxy,
will be mailed about 30 days in advance of the meeting date.
1
2
CHICAtiD AND SOIJTHERN AIR LINE5,1wc.
Report to the Shareholders
Our Company's net profit for the year 1951 was
$1,130,959, equivalent to $2.22 a share on the
capital stock, after provision for income taxes.
This compares with a net profit of $856,035, or
$1.68 a share, for 1950. The net income for 1951
includes special items of $267,983, representing
a capital gain of $341,411 after applicable income
taxes of $114,000 on DC-4 aircraft and equip-
ment sold, less a foreign reserve provision of
$73,428. Similar special items amounting to
$320,909 were included in the net income for
1950. Profits were earned on both domestic and
international operations in 1951 as well as in 1950.
Revenues and Earnings
Reach New High
Operating revenues for the year 1951 totaled
$16,236,930, a gain of 26.0 % over 1950. Pas-
senger revenues were up 39.6% while mail pay
declined 6.3 % , indicating continued progress to-
wards self-sufficiency. Mail pay constituted 18.8%
of total operating revenues in 1951 compared
with 25.3 % in 1950. On our domestic system we
carried 10.1 % more mail for 31.2 % less mail
pay, reducing our ton mile mail rate from $2.87
in 1950 to $1.80 in 1951, a drop of 37.3%.
Our operating profit for 1951 showed a gairi of
87.6% over 1950. Net income after taxe~ in-
creased 32.1 % and exceeded a million dollars for
the first year on record.
Dividends Increased
In 1951 two dividends were paid totaling 65 a
share (25 on June 15th and 40 on December
3rd). This compares with 50 a share paid in 1950
and 35 a share in 1949.
Constellations in Full Service
at Midyear
During the first half of 1951 we continued to
place our new luxury Constellations in service as
they were delivered. By midyear, the full fleet of
six was in daily operation. Supplementing these
Constellations, our twelve DC-3's continued to
fly on local schedules, giving us a fleet of eighteen
planes serving the 25 cities along our 5,749 miles
of domestic and international routes. Our new
Constellations carried most of the additional
revenue traffic in 1951, and this increased volume
of business made it possible to reduce passenger
mile and ton mile costs substantially in spite of
wage and price increases.
Passenger Loads Climb
A sharp increase in passenger traffic resulted im-
mediately upon the inauguration of Constellation
service. On our domestic system revenue passenger
miles showed a gain of 42.3 % in 1951 over 1950
while the rest of the industry gained 31.6 % . Our
domestic passenger load factor ( the percentage of
seats occupied by passengers) rose from 56.3 %
to 62.5 % . On our international routes, which are
still in the development stage, the passenger load
factor increased from 36.0% in 1950 to 41.1 %
in 1951, reflecting a gain of 17.4% in revenue
passenger miles.
Financial Position
Current assets at December 31,- 1951, stood at
$4,446,503, of which $2,204,815 represented
cash and Government securities. Flight equip-
ment, including our six new Constellations and
twelve DC-3's, together with all spare engines,
propellers, and parts for maintenance, was carried
at a net depreciated value of $5,901,374. Our
DC-3's have been fully depreciated to a residual
value of $3,000 each and our Constellations are
being depreciated to a residual value of $50,000
each by December 31, 1955. In addition to our
conservative depreciation policy, we have con-
sistently charged off as incurred all training and
development costs, and no expenses of this kind
have been deferred to burden future operations.
To complete the financing of our $7,000,000
Constellation program, we borrowed $2,000,000
from a group of four banks on unsecured notes
repayable over a two-year period in quarterly in-
16 c=:====;'
15i:=::===='
14 -=======:!
t3 ie::====
12 r-=====
11 ======
OPERATING
REVENUES
10 -=======~ In millions of dollars
9==:::==~~
8=======:::::::;;!:=..,.
7
stallments of $250,000 each. The first two install-
ments have been paid and the balance of the loan
at December 31, 1951, was $1,500,000, of which
$1,000,000 will be payable in 1952 and was in-
cluded in current liabilities. Our loan agreement
carries no restrictions on dividends or working
capital.
Out of the net profit of $1,130,959 for the year,
$331,062 was distributed to our shareholders in
dividends and the remaining $799,897 was added
to earned surplus, increasing this to $1,964,347
at December 31, 1951. The shareholders' equity
( total capital and surplus) increased during 1951
from $6,058,095 to $6,857,992, raising the net
book value of the common stock from $11.89 to
$13.46 a share.
Final Mail Rates
Established for C&S
Our Company is one of the few air lines now op-
erating both domestic and international routes on
final mail rates for both past and future services.
These final rates are not subject to retroactive ad-
justment and may be revised for future periods
only.
On October 1, 1951, the Civil Aeronautics
Board opened for review our final domestic mail
rates which had been in effect since 1948, and new
final rates for future periods were fixed in a rate
order issued on December 19, 1951. This rate
order provides a sliding scale which increases our
mail pay if passenger load factors go down and
decreases it if they go up. Our compensatory mail
rate was determined to be 53 a ton mile and our
mail pay declines to this subsidy-free level at load
factors above 67 % . Our 1951 load factor was
62.5 % . While the trend toward a subsidy-free
status is encouraging, our management sees no
reason to doubt that, under either present or pro-
posed laws, efficient operations will be supported
by adequate mail compensation.
On our international routes we have been re-
ceiving mail pay under temporary rates from the
beginning of foreign service on November 1,
1946. On October 18, 1951, the Civil Aeronautics
Board issued a final rnte order fixing our inter-
national mail pay for both past and future periods.
The mail pay previously received under temporary
rates from November 1, 1946, to December 31,
1950, exceeded the final mail pay for this four-
year period by $704,581. This overpayment was
refunded and charged to earned surplus in the
net amount of $373,428, after the applicable in-
come tax credit. The surplus charge was offset by
a corresponding credit from our foreign operating
reserve which had been provided for that purpose.
As already explained, our international mail rates
are now final and not subject to further retroactive
adjustment.
Our Personnel
The flying public is well acquainted with the men
and women who serve their needs along our routes
-the courteous and efficient ticket and reserva-
3
4
tions agents, the attentive stewardesses, and the
trained and experienced pilots and flight engi-
neers.
But there are, in addition, many men and wom-
en behind the scenes upon whom the efficiency and
safety of our service equally depends. Hundreds
of mechanics, technicians, and clerical workers
do their part in keeping our planes in the air and
on schedule. We appreciate their contribution,
and the excellent spirit they bring to their jobs.
Through their combined efforts we were able to
handle 31.5 % more ton miles of revenue traffic
in 1951 than in 1950 with an increase in personnel
of only 13.2 %.
Our personnel have available group insurance,
sick leaves and paid holidays and vacations. We
are presently awaiting final approval from the
wage stabilization authorities of a voluntary, con-
tributory retirement-income plan which will be
offered to all employees. It provides optional re-
tirement at either age 60 or 65, with the payments
adjusted to the retirement age selected. As soon
DOMESTIC
AND
SEAT MILES
as wage stabilization approval is obtained, the
program will be put into effect, and it is our hope
that most of our personnel will avail themselves
of its benefits.
Voting Trust Agreement
Terminated
A progressive step was taken in 1951 by the dis-
solution of the voting trust under which 70 % of
our common shares have been held for the past
sixteen years by Mr. Carleton Putnam as sole
voting trustee. Mr. Putnam told the holders of the
voting trust certificates in his announcement dated
December 5, 1951:
"Over the years C&S has attained an increasingly
important position in the industry. Our financial
condition is sound; our earnings and dividends
have reached a gratifying level. The present
management is able and confident of our Com-
pany's future. The usefulness of the voting trust
=--,......,..._ RIVINUI
PAS$1NGlt
~ lOA"1ACTOR
Percet1ta9e of $eots
occupied
* See 16 Year Summary of Operating Statistics, pages 14 and 15.
in securing stability and continuity of manage-
ment and over-all policy seems to me to have
ceased."
It is Mr. Putnam's belief that the dissolution
of the trust will result in a broader market for the
Company's securities.
New Convairs
to Replace DC-3's
We have ordered ten new 44-passenger Convair
340's from the Consolidated Vultee Aircraft Cor-
poration. The first of these will be delivered in
June 1953 and by early 1954 all of them will be
in service, replacing our present DC-3's and giving
us an entire fleet of modern aircraft.
We selected Convairs to supplement our Con-
stellations because of their proven efficiency and
their suitability for our domestic routes. With
these aircraft we can expand our schedules and in-
crease our operating revenues. At the same time
the added volume will contribute to lower pas-
senger mile and ton mile costs.
The Convair program, including spare engines,
propellers, and parts and equipment for main-
tenance, together with training costs, will amount
to about $8,000,000. An advance payment of
$240,000 had been made to Consolidated Vultee
at December 31, 1951. We will need additional
funds to complete the financing of this program
in the early summer of 1953, by which time our
present bank loan for Constellations will be paid
in full. Arrangements for this new financing have
not been made, but no difficulty is anticipated in
securing the necessary money.
Interchanges Applied For
We are awaiting CAB approval of two interchange
agreements with other air lines. One of these
agreements is with Pan American and will pro-
vide through service without change of plane be-
tween Chicago and Mexico City. The interchange
aircraft will be operated by our crew over C&S
routes between Chicago and Houston, via St.
Louis, and will be operated by Pan American's
crew over its route nonstop between Houston and
Mexico City. This interchange agreement has been
recommended for approval by the CAB examiner.
The other interchange agreement awaiting CAB
approval is with TWA and will provide through
one-plane service between Houston and New York
,,'';p
/;,
;
$ ~
,&!~
C & S-Pan American Air-
ways through plane service
Chicago-Mexico City via
St. Louis and Houston.
C & S-Trans World Air-
lines through plane service .,..
==
;:~;:i~?[;~~~'.;~~~~
Houston-New York via S
Louis and Pittsburgh.
. : & S Air Route~~w
-,
'<,%~;:;::w'~Y':,~~/.;:$"' '::::'t-~:,:,:.'' 5
6
-over our routes between Houston and Indianap-
olis, via Memphis, and over TWA's routes between
Indianapolis and New York, via Pittsburgh. An
alternate routing would be via St. Louis.
These interchange agreements, if approved,
will strengthen our load factors by additional long-
haul traffic, which is the most profitable kind.
We Serve a
Growing Territory
We look to the future with confidence, for we serve
a territory which has an unusual growth potential.
An abundance of raw materials, natural gas and
labor is bringing rapid industrialization to the
Gulf Coast. The area abounds in large petroleum
refinery installations, and in heavy industrial and
chemical plants. The influx of new industry has
brought sharp population gains to the cities in the
Midsouth and Southwest. Moreover, the com-
munity of interest between New Orleans and
Houston on the one hand, and the Northern Mid-
west centers on C&S routes on the other, is steadily
being strengthened.
Along our international route, both Cuba and
Jamaica are waging vigorous campaigns to attract
more tourists. Advertising and publicity emanat-
ing from these countries is steadily increasing,
slanted to emphasize the ideal year-round climate.
New hotels are being constructed and promotional
off-season rates are drawing a more even flow of
visitors throughout the year.
Long second only to the United States in oil
production, Venezuela has recently begun ex-
ploitation of its other vast natural resources on a
large scale. Huge deposits of high-grade iron ore
have been discovered there, and the construction
of facilities to mine and move the ore have already
been started by U. S. Steel and Bethlehem Steel.
Our international traffic has a large potential in
our future growth and is still in the development
stage.
Shareholders
C&S is owned by 2,360 shareholders who live in
41 states, the District of Columbia, and the Virgin
Islands. At December 31, 1951, the average hold-
ing was 216 shares and 55 % of the shareholders
owned less than 100 shares each.
Safety Record
During 1951 we entered our sixteenth year of
perfect safety. Up to the end of December we had
flown more than 1. 1 billion revenue passenger
miles without fatality to any passenger or flight
crew member.
By authority of the Board of Directors,
Chairman of the Board
February 27, 1952
Statements of Income
CHICAliO ANO 50l/THERN AIR LINES, INC.
For the years ended December 31
OPERA TING REVENUES:
Passenger and excess baggage
United States mail (Note 1)
Expres~ and freight . . .
Miscellaneous (net) . . .
Total operating revenues
OPERATING EXPENSES:
Flying and ground operations
Maintenance . . . . .
Traffic, sales and advertising .
General and administrative
Depreciation (Note 4) . .
Total operating expenses
NET INCOME FROM OPERATIONS .
PROVISION FOR FEDERAL AND STATE
INCOME TAXES (Notes 1 and 5)
OTHER DEDUCTIONS (NET) . . . .
NET INCOME BEFORE SPECIAL ITEMS .
SPECIAL ITEMS:
Profit on sale of DC-4 aircraft and related
spares (less $114,000 and $185,000 applicable
Federal income taxes) . . . . . . . .
Reserve provision for foreign operations . .
NET INCOME INCLUDING SPECIAL ITEMS . . .
1951
$12,358,781
3,056,243
688,911
132,995
$16,236,930
$ 6,857,481
2,157,924
3,076,097
912,317
1,368,039
$14,371,858
$ 1,865,072
962,000
40,096
$ 862~976
$ 341,4,11
73,428
$ 267,983
$ 1,130,959
* 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
-r.- Denotes red figure The accompanying notes are an integral part of these statements.
Statements of Earned Surplus (Since May 23, 1938}
BALANCE AT BEGINNING OF YEAR
Net income including special items . .
Cash dividends of 65 a share in 1951
and 50 a share in 1950 . . . .
Reductio~ in international mail pay for prior
years (less $331,153 applicable Federal
income taxes) . . . . . .
Less reserve for foreign operations
provided therefor (Note 1)
BALANCE AT END OF YEAR . .
$373,428
373,428
1951
$ 1,164,450
1,130,959
$ 2,295,409
331,062
$ 1,964,347
* 1950
$ 563,078
856,035
$ 1,419,113
254,663
$ 1,164,450
The accompanying notes are an integral part of these statements.
7
8
Balance Sheets
ASSETS
CURRENT ASSETS:
Cash ............................. .
United States Government securities ..... .
Receivables from-
United States Post Office ............ .
Air lines, customers, agencies, etc ...... .
Maintenance and operating supplies ..... .
Prepaid insurance, etc ................ .
Total current assets . . . . . . . . ........ .
OTHER ASSETS:
Advance payments on new aircraft (Note 3)
Miscellaneous . . . . . . . . . . . . . . . . . . . . . . .
OPERATING PROPERTY AND
EQUIPMENT:
Cost-
Flight
Equipment
(Note 4)
1951. ..... $8,687,657
1950. . . . . . 6,348,655
Depreciation reserves-
1951. ..... $2,786,283
1950. . . . . . 2,698,284
Other
Property and
Equipment
$1,445,648
1,281,837
$ 890,213
770,401
FRANCHISES AND GOODWILL ........ .
AT DECEMBER 31
1951
*
$ 1,204,815
1,000,000
527,683
1,353,116
260,926
99,963
$ 4,446,503
$ 240,000
272,264
$ 512,264
$10,133,305
3,676,496
$ 6,456,809
$ 1
$11,415,577
1950
$1~997,868
404,854
956,817
221,344
102,070
$3,682,953
$ 687,500
323,122
$1,010,622
$7,630,492
3,468,685
$4,161,807
$ 1
$8,855,383
t
CHICAliO AND SOIJTHERN AIR LINES, INC.
LIABILITIES
CURRENT LIABILITIES:
Notes payab]e to banks (Note 2) ........
Accounts payable and accrued liabilities ..
Federal and state income taxes .-.........
Air travel plan deposits ................
Unearned revenue ...................
Total current liabilities .............
NOTES PAYABLE TO BANKS,
due in 1953 (Note 2) ................ .
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 ..... .
COMMITMENTS (Note 3)
AT DECEMBER 31
1951
*
$ 1,000,000
1,950,133
716,885
210,800
179,767
$ 4,057,585
$ 500,000
$
$ 4,893,645
1,964,347
$ 6,857,992
$11,415,577
1950
$
1,446,235
710,092
198,900
142,061
$2,497,288
$
$ 300,000
$4,893,645
1,164,450
$6,058,095
$8,855,383
The accompanying notes are an L tegral part of these statements.
9
10
NOTES TO FINANCIAL STATEMENTS
1. Final domestic mail rates fixed by the Civil Aeronautics Board in 1948 were
in effect until September 30, 1951. On October 1, 1951, these rates were
opened for review by the CAB and new final rates for future periods were
fixed in a rate order issued December 19, 1951.
On October 18, 1951, the Civil Aeronautics Board issued a final rate order
fixing the Company's international mail pay for both past and future periods.
The excess ($704,581) of mail pay received under t~mporary rates from the
beginning of foreign operations on November 1, 1946 to December 31, 1950
over the final mail pay for this four-year period was refunded in 1951 and
charged to earned surplus. This refund was not deducted in determining the
$962,000 provision for income taxes. The income taxes payable for 1951
after deducting this refund were estimated at $630,847; the reduction of
$331,153 in taxes occasioned by the refund was credited to earned surplus.
The net surplus charge ($704,581 less $331,153) for the mail pay refund was
offset by a credit from the foreign operating reserve provided for that purpose.
2. The Company has received all six of the new Constellation aircraft ordered,
together with most of the spare engines, propellers, and parts for mainte-
nance. The $7,000,000 Constellation program is thus substantially completed.
The Company has borrowed $2,000,000 from a group of four banks on
unsecured notes repayable over a two-year period in eight installments
of $250,000 each. The first two installments have been paid, reducing the
amount of the loan outstanding to $1,500,000.
3. The Company has entered into a contract with Consolidated Vultee Aircraft
Corporation for the purchase of ten new Convair 340 aircraft to be delivered
beginning in June 1953. These aircraft, together with the necessary spare
engines, propellers, parts and equipment for maintenance and operation,
will cost approximately $8,000,000. An advance payment of $240,000 has
been made to Consolidated V ultee.
4. At December 31, 1951, the Company's fleet consisted of six new Model 649
Constellations and twelve DC-3's. The DC-3's were fully depreciated to
a residual value of $3,000 each at December 31, 1948, and the Constellations
are being depreciated to a residual value of $50,000 each from the dates
placed in service (3 in 1950 and 3 in 1951) to December 31, 1955.
5. The Company has no excess profits tax liability.
6. Stock purchase warrants are outstanding to two officers, entitling one to
acquire 10,000 shares of capital stock and the other 5,000 shares at a price
of $10 per share prior t? 1956. The market quotations of the capital stock
at the date of fixing the price of the warrants were less than $10.
7. In 1951 the Company adopted a contributory retirement-income plan for its
employees, which will become effective in 1952 if approved by Wage Stabiliza-
tion authorities. The Company's liability for past service benefits under the
plan is estimated at $650,000, and it is anticipated that this will be paid over
a period of 12 years. The annual cost to the Company for current service
benefits is estimated at $115,000.
To The Stockholders of
Auditors' Certificate
*
ARTHUR ANDERSEN & Co.
ACCOUNTANTS AND AUDITORS
.506 OLIVE STREET
ST. LOUIS 1 ,
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, 1951 and the related statements of income ,and surplus
for the year then ended. Our examination was made in accordance with generally accepted audit-
ing standards, and accordingly included such tests of the accounting records and such other
auditing procedures as we considered necessary in the circumstances. We had previously made
a similar examination for the year ended December 31, 1950.
In our opinion, the accompanying balance sheets and statements of income and surplus
present fairly the financial position of Chicago and Southern Air Lines, Inc. as of December 31,
1951 and 1950 and the results of its operations for the years ended those dates, and were pre-
pared in conformity with generally accepted accounting principles applied on a basis consistent
with that of the preceding year.
St. Louis, Missouri
February 11, 1952
~ Q )4..>
*
Introduction to the Statistical Summaries
~1'1E1
~
CHICA60 AND SOIJTHERN AIR LINES, INC.
Audited financial statements presenting our
operating results and year-end financial position
for the last two years have been reproduced on
the preceding pages. The data on the following
pages have been prepared by the . company for
convenient reference in tracing our growth and
progress. A ten-year summary, comparing sig-
nificant financial items, is presented on the
following two pages. A comprehensive sixteen-
year summary of operating statistics on pages
14 and 15 covers the entire operating history
of Chicago and Southern Air Lines, Inc.
11
12
10 YEAR Summary of Financial Data CHICAGO AND SOUTHERN AIR LINES, INC.
--------------------------------------:+--
---------------------------------------
FOR THE YEARS ENDED DECEMBER 31:
OPERATING RESULTS (in thousands of dollars)
Operating Revenues
Operating Expenses
Net Income from Operations
Other Income - Net
Net Income before Income Taxes
Provision for Income Taxes .
Net Income
Dividends Paid on Common Stock .
Net Income per Share of Common Stock .
Dividends Paid per Share of Common Stock
1951
$16,237
14,372
$ 1,865
342
$ 2,207
1,076
$ 1,131
$ 331
$2.22
0.65
YEAR-END FINANCIAL POSITION (in thousands of dollars)
ASSETS:
Cash and Government Securities
Other Current Assets
Flight Equipment and Other Operating Property- Net
Other Assets
Total Assets
LIABILITIES:
N ates Payable
Other Liabilities
Total Liabilities .
SHAREHOLDERS' EQUITY:
Common Stock
Surplus
Total Shareholders' Equity
Shares of Common Stock Outstanding
Book Value per Share .
* Denotes red figure
$ 2,205
2,242
6,457
512
$11,416
$ 1,500
3,058
$ 4,,558
$ 4,894
1,964
$ 6,858
509,326
$13.46
1950
$12,885
11,891
$ 994
512
$ 1,506
650
$ 856
$ 255
$1.68
0.50
$ 1,998
1,685
4,162
1,010
$ 8,855
None
$ 2,797
$ 2,797
$ 4,894
1,164
$ 6,058
509,326
$11.89
1949
$12,369
11,204
$ 1,165
72*
$ 1,093
463
$ 630
$ 178
$1.24
0.35
$ 3,345
1,190
1,184
1,535
$ 7,254
None
$ 1,797
$ 1,797
$ 4,894
563
$ 5,457
509,326
$10.71
1948
$10,453
9,564
$ 889
40)~
$ 849
210
$ 639
None
$1.26
None
$ 2,320
1,770
1,884
433
$ 6,407
None
$ 1,402
$ 1,402
$ 4,894
111
$ 5,005
509,326
$9.83
1947
$8,565
8,809
$ 244*
32*
$ 276*
$ 276*
None
$0.54*
None
$1,463
1,013
2,642
276
$5,394
$1,060
1,022
$2,082
$4,894
1,582*
$3,312
509,326
$6.50
1946
$8,750
9,445
$ 695*
18*
$ 713*
237*
$ 476*
None
None
$1,880
2,053
3,163
401
$7,497
$1,660
1,725
$3,385
$4,831
719*
$4,112
509,326
$8.07
1945
$4,849
4,556
$ 293
5
$ 298
125
$ 173
$ 77
$0.56
0.25
$1,191
475
1,450
213
$3,329
$ 400
1,034
$1,434
$1,599
296
$1,895 .
====
310,011
$6.11
1944
$2,947
2,775
$ 172
51
$ 223
94
$ 129
$ 73
$0.44
0.25
$ 899
707
527
55
$2,188
None
$ 593
$ 593
$1,452
143
$1,595
291,687
$5.47
1943
$2,268
2,243
$ 25
143
$ 168
68
$ 100
$ 143
$0.34
0.625
$ 957
1,331
394
284
$2,966
$ 225
1,190
$1,415
$1,450
101
$1,551
291,337
$5.32
1942
$2,100
1,652
$ 448
68*
$ 380
162
$ 218
$ 84
$0.85
0.50
$ 138
1,015
478
321
$1,952
$ 350
673
$1,023
$ 774
155
$ 929
229,326
$4.05
13
16 YEAR Summary of Operating Statistics CHICAGO AND SOIJTHERN AIR LINES, INC.
* DOMESTIC OPERATING RESULTS
TOTAL AMOUNTS 1951 1950 1949 1948 1947 1946
1945 1944 1943 1942 1941 1940 1939 1938 1937 1936
Operating Revenues
$4,376,776 $2,545,016 $1,864,998 $1,421,835 $1,080,173 $ 733,025 $427,670 $317,481 $227,362 $162,912
Passenger and excess baggage ...................... $10,068,280 $6,869,179 $6,407,449 $6,148,222 $5,774,239 $6,699,813 277,238 281,808 301,823 606,004 611,670 429,445 410,619 407,837 361,938 335,724
United States mail .... . .......... . ................ 1,202,976 1,747,319 1,800,384 1,891,989 1,465,102 1,672,872 169,396 107,245 96,666 62,309 34,318 24,905 19,557 13,813 13,904 7,421
Express and freight ................................ 487,533 468,337 319,722 321,940 340,486 218,038 25,413 12,644 4,842 9,688 5,440 3,192 5,311 6,868 3,243 ~
Miscellaneous ........................ . 68,002 61,496 56,175 70,090 - 71,664 24,138
$4,848,823 $2,946,713 $2,268,329 $2,099,836 $1,731,601 $1,190,567 $863,157 $745,999 $606,447 $507,938
Total Operating Revenues ............................ $11,826,791 $9,146,331 $8,583,730 $8,432,241 $7,651,491 $8,614,861 ~55,646 2,774,292 2,243,673 1,651,408 1,734,217 l,234,221 776,346 660,070 620,287 513,695
Total Operating Expenses ................ . ........... 10,909,913 8,442,261 7,783,557 7,797,320 7,853,822 9,221,022
$ 293,177 $ 172,421 $ 24,656 $ 448,428 $ 2,616* $ 43,654* $ 86,811 $ 85,929 $ 13,840* $ 5,757*
Operating Profit ..................................... $ 916,878 $ 704,070 $ 800,173 $ 634,921 $ 202,331* $ 606,161 * 4,846 50,293 143,003 68,754* 25,600 95,723 5,556* 7,329* 6,714* 10,246*
Other Income-Net .................................. 219,836 393,516 16,322* 42,784* 29,998* 17,237* 125,033 93,424 67,607 162,000 24,000 2,675 22,450 9,926 274
Provision for Income Taxes ........................... 527,000 425,000 313,000 146,000 207,346*
$ 172,990 $ 129,290 $ 100,052 $ 217,674 $ 1,016* $ 49,394 $ 58,805 $ 68,674 $ 20,828* $ 16,003*
Net Income ......................................... $ 609,714 $ 672,586 $ 470,851 $ 446,137 $ 232,329* $ 416,052*
UNIT OPERATING COSTS
35.97 40.10 42.89 31.14 31.05 30.73 39.89 41.62 41.94 43.64
Cents per available ton mile ..... . ............. ' ..... 33.05 34.20 33.16 32.69 31.79 37.69
49.57 50.74 55.10 53.27 70.73 72.73 76.87 88.01 109.01 127.15
Cents per revenue ton mile ......................... 59.24 62.25 64.89 66.15 63.04 62.07
4.15 4.65 5.33 3.61 3.70 3.84 4.87 4.60 4.62 5.27
Cents per available seat mile . . ..................... 4.06 4.02 3.86 4.16 4.09 4.70
5.24 5.63 6.36 5.81 7.41 7.72 8.40 9.57 12.04 13.81
Cents per revenue passenger mile .... . ..... . .. . ..... 6.49 7.15 7.24 7.37 6.98 6.69
* Denotes red figure
* INTERNATIONAL OPERATING RESULTS * OPERATING STATISTICS
TOTAL AMOUNTS 1951 1950 1949 1948 1947 1946 REVENUE AVAILABLE REVENUE AVAILABLE REVENUE PASSENGER
Operating Revenues PLANE TON TON SEAT PASSENGER LOAD
Passenger and excess baggage ....................... $2,290,50: $1,983,334 $2,153,413 $1,048,967 $455,236 $ 61,234
YEAR MILES MILES MILES MILES MILES FACTOR
(Thousands) (Thousands) (Thousands) (Thousands) (Thousands)
United States mail. ............. . ......... . .... . ... 1,853,267 1,514,928 1,504,706 909,610 443,812 69,580 (Percent)
Express and freight ................................ 201,378 193,837 109,434 56,444 14,466 4,629 DOM. INT. DOM. INT. DOM. INT. DOM. INT. DOM. INT. DOM. INT.
Miscellaneous ........ .......... 64,993 46,614 17,241 5,590 161 8 1951 8,508 1,682 33,008 10,788 18,417 4,034 269,002 77,414 168,150 31,806 62.5% 41.1%
---
3,509 75,212 118,131 27,090
Total Operating Revenues ................. . ..... . .... $4,410,139 $3,738,713 $3,784,794 $2,020,611 $913,675 $135,451 1950 7,436 1,884 24,685 9,089 13,562 209,814 56.3 36.0
Total Operating Expenses ...................... . ..... 3,461,945 3,448,722 3,419,907 1,766,194 955,092 224,624 1949 7,497 1,817 23,475 10,280 11,995 3,179 201,599 83,559 107,440 27,327 53.3 32.7
Operating Profit ......... . .......................... $ 948,194 $ 289,991 $ 364,887 $ 254,417 $ 41,417* $ 89,173* 1948 7,096 806 23,853 3,705 11,788 1,518 187,381 38,854 105,744 13,196 56.4 34.0
Reserve Provision for Foreign Operations .............. 73,428 235,000 65,000 1947 7,118 473 24,705 2,310 12,458 756 192,132 19,747 112,564 6,700 58.6 33.9
Other Income-Net. ................................. 195,479 353,458 9,349 2,923 2,257* 654*
1946 8,108 74 24,465 188 14,856 98 196,290 2,306 137,844 895 70.2 38.8
Provision for Income Taxes ........................... 549,000 225,000 150,000 64,000 29,865* 1945 5,279 12,666 9,191 109,596 86,877 79.3
1944 2,882 6,918 5,468 59,654 49,242 82.6
Net Income ......... . .......... . .... . ............. . . $ 521,245 $ 183,449 $ 159,236 $ 193,340 $ 43,674* $ 59,962*
1943 2,179 5,231 4,072 42,057 35,293 83.9
1942 2,210 5,304 3,100 45,720 28,438 62.2
UNIT OPERATING COSTS 1941 2,328 5,586 2,452 46,813 23,414 50.0
1940 1,983 4,016 1,697 32,152 15,979 49.7
Cents per available ton mile ................ . .... ... 32.09 37.95 33.26 47.67 41.35 119.48 1939 1,769 1,946 1,010 15,932 9,242 58.0
Cents per revenue ton mile ........................ . 85.82 98.28 107.58 116.33 126.33 229.21 1938 1,442 1,586 750 14,357 6,895 48.0
4.58 4.09 4.55 4.84 9.74
1937 1,344 1,479 569 13,405 5,154 38.4
Cents per available seat mile ............... . . . .. . .. 4.47
1936 1,135 1,177 404 9,742 3,720 38.2
Cents per revenue passenger mile ... . .......... . , , , , 10,88 12,73 12.51 13.38 14.26 25.10
* Denotes red fi~ure
NoTE: International service was inaugurated on November 1, 1946
14 15
16
--~
--&i~
CHICAGO AND SOIJTHERN AIR LINES, INC.
GENERAL OFFICES
MEMPHIS MUNICIPAL AIRPORT, MEMPHIS 14, TENNESSEE
CORPORA TE OFFICE
100 WEST TENTH STREET, WILMINGTON, DELAWARE
*
Directors
SIDNEY A. STEW ART CARLETON PUTNAM L. RAYMOND BILLETT
JOHN R. LONGMIRE
JUNIUS H. Coo PER
CARLETON PUTNAM
SIDNEY A. STEW ART
JUNIUS H. COOPER .
WILLIAM T. ARTHUR
R. s. MAURER
T. M. MILLER
w. T. BEEBE
T. F. HAMBLETON
R. s. SCRIVENER
E. MURRAY
TRANSFER AGENT
MERCANTILE TRUST COMPANY
EIGHTH AND LOCUST STREETS
St. Louis, Missouri
Officers
Chairman of the Board
President
Vice President-Finance
Vice President-Operations
Vice President-Secretary and General Counsel
Vice President-Traffic and Sales
Vice President-Personnel
Treasurer
Assistant Treasurer
Assistant Secretary
LISTED
REGISTRAR
BOATMEN'S NATIONAL BANK
BROADW A y AND OLIVE STREET
St. Louis, Missouri
NEW YORK CURB EXCHANGE
AND
MIDWEST STOCK EXCHANGE
C & S West Indies Color Film
A 16-mm story of a carefree Carib-
bean holiday, "West Indies, Ho!",
is available for group showings.
C & S Timetable
Current Domestic and International
schedules and other helpful informa-
tion for the C & S traveler.
Many factors, many behind-the-scenes operations
combine to provide the fine service, comfort and equipment
sought by more and more C & S passengers every year.
We think you will find the various promotional materials
shown below both informative and interesting.
Constellation Convers'ation
An easy-to-read booklet presenting
interesting data about the famous
Luxury Lockheed Constellation.
1952 Aircruise Folder
Story of the popular C & S all ex-
pense aircruises to Havana and Ja-
maica ... year-round vacation lands.
C & S Sky Steps
The illustrated mon1hly publication
for and about our employees, re-
porting current news about C & S.
tHUA/;0 .. 110 tourNl14NAI"'"""
I
C & S Postcards and Stickers
Pictorial C & S post cards, luggage
stickers, auto decals, and a supply
of handy Air Mail labels.
If you would like to receive any of this niaterial.
Address your request, mentioning the individual titles, to:
The Public Relations Department,
Chicago and Southern Air Lines, Inc.,
Municipal Airport, Memphis 14, Tennessee.
GREENWOOD
.
... . l~L
. . ..
dl .,,
' .
. 1951.