Delta Air Lines annual report 1955

Revenue passenger miles of 952 million were
23.7% above the preceding year, reflecting
both the operation of DC-7s during the en-
tire year and the inauguration of daylight
coach service in December, 1954. Reduced
fare aircoach passenger miles represented
24.7% of the total, an increase of 70.7%.
~ Six additional Golden Crown DC-7s were
- received and placed in service during the
year, permitting the extension of this luxury
service to 15 cities. Firm orders have been
placed for five DC-7s, one scheduled for de-
livery in the latter part of 1955 and the other
four in mid-1957. The Company also has an
option to purchase six more DC-7s for deliv-
ery in the winter of 1957-58.
... Debentures aggregating $5,000,000 were
- called for redemption during the year.
$2,858,000 were redeemed for cash and the
balance were converted into common stock
at the established price of $35 a share.
~ Net earnings from operations of Sl,907,000
- were 3.2% of operating revenues of
$59,188,000. Total earnings of $2,166,000 (in-
cluding flight equipment sale profits of
S259,000) equalled $3.61 per share on the
average number of shares of stock out-
standing during the year, and $3.27 a share
on the 661,9 l 3 shares outstanding after giv-
ing effect to the conversion of debentures
in July, 1955.
OF THE YEAR
ENDED JUNE 30, 1955
Four quarterly dividends of 30 each were
paid to common stockholders, thereby con-
tinuing one of the better dividend records in
the industry.
Total common stockholder equity increased
by $3,613,000 to $19,846,000 at June 30, 1955,
with each of the 661,913 shares. having a
book value of $29.98 - $2.92 above the be-
ginning of the year after payment of $1.20
a share in dividends.
.... The effect of the U. S. Supreme Court de-
- cision of February 1, 1954 in the C&S "Off-
Set" mail rate case cannot yet be determined
with respect to either the Company's possi-
ble liability for past periods of C&S opera-
tions or the availability of governmental
subsidy support for its international routes
since May 1, 1953.
.... Hearings before a CAB Examiner were con-
- eluded in December, 1954 in the "Additional
Southwest-Northeast Service Case". Involved
in this case is your Company's application to
serve the New York-Washington area from
the South and Southwest, which would pro-
vide a measure of the equality of competitive
opportunity essential to maintaining its po-
sition among the economically self-sufficient
airlines of the Nation in the years ahead.
~ The number of employees increased by 290
- during the year, to 4,547 at June 30, 1955.
Delta Air Lines, Inc.
annual report 1955
TO THE STOCKHOLDERS
The year ended June 30, 1955 was the second
full year of merged Delta-C&S operations, which
produced net earnings after taxes of $1,907,175,
equal to 3.2% of operating revenues of $59,187,-
961. Profits of $258,850 after taxes were realized
from sales of flight equipment, bringing total
earnings to $2,166,025, equivalent to $3.27 a
share on each of the 661, 913 shares of stock re-
corded as outstanding on June 30, 1955 (after
giving effect to 57,700 shares issued in July, 1955
for conversions of debentures called for redemp-
tion July 25, 1955).
Financial Results
REVENUES-Operating revenues for the year
were $59,187,961, 17.59% abov_e the preceding
year. Passenger revenues of $53,966,525 were
91.18% of the total, and were 19.54% higher
than the preceding year. This increase in pas-
senger revenue was accompanied by a 23.75%
increase in revenue passenger miles, with the
higher proportion of aircoach passenger miles
to the total (24.66%) resulting in a decline in
the average yield per passenger mile to 5.67
from 5.87 the preceding year. Excess baggage
revenues followed the trend of passenger reve-
nues and increased to $765,580 from $602,579
the preceding year.
U. S. Air Mail revenues of $1,403,082 repre-
sented 2.37% of total operating revenues and
were 17.39% below the preceding year. This
decline in mail revenues is attributable to a
lower net yield under the revised service mail
rate formula for the domestic carriers finalized
during the year effective April 1, 1954 (discussed
in more detail under "Mail Rates") and to a
slight drop (2.11 %) in air mail ton miles from
3.23 million to 3.16 million.
Revenues of $59,602 were earned from the
carriage of first class mail by air on a non-
priority basis between Chicago and Florida
points, at an interim rate of 20.04 per ton
mile. This project is still in the experimental
stage, and your Company is cooperating to the
fullest extent possible with the hope that it will
eventually lead to air transportation of all first
class mail moving significant distances. Pro-
cedural steps before the CAB looking toward
permanency have been halted pending judicial
decision of whether the Post Office Department
has authority under existing statutes to arrange
for the movement of first class mail by air.
Revenues from the carriage of air express in-
creased 8.66%, from $844,483 to $917,609. Air-
line revenues from this source represent a per-
centage of the gross revenues received by the
Railway Express Agency, after deduction of cer-
tain specified handling expenses incurred by
REA; this formula resulted in a net yield of
36.69 per ton mile, up slightly over the preced-
ing year. Air freight revenues increased slightly,
from $1,766,266 to $1,844,168, with a slight de-
crease in ton miles carried (from 7.17 million
to 6.98 million) and a slight increase in the ton
mile yield to 26.41. Total revenues for the year
from air express and air freight of $2,761,777
made a significant contribution to net earnings.
The three remaining Constellation aircraft
and certain spares were leased to Pacific North-
ern Airlines, Inc. (a certificated Alaskan car-
rier) in April, 1955 for one year. Gross revenues
of $238,909 were received from this lease in the
last quarter of the fiscal year, against which was
charged an equivalent amount of expenses com-
posed of depreciation, amortization of the prop-
erty acquisition adjustment account balance
2
applicable to the leased equipment, and some
minor leasing costs.
The average net yield per ton mile of system
revenue traffic declined to 56.4 I from 57 .69
the preceding year. Gross revenues for the year
were $1,344,000 less than would have been de-
veloped for the same volume of traffic by the
preceding year's net yield. This lowering of the
product cost to the user undoubtedly expands
the public benefits of air transportation; it also
makes even more important to individual car-
riers their access to high-density markets for the
traffic volume necessary to support lowered fare
levels of increasingly broader application.
EXPENSES-Operating expenses of $53,492,032
were 10.76% above the preceding year. An ac-
companying increase of 12.72% in available ton
miles resulted in a cost per available ton mile
of 29.23, slightly below the 29.75 for the pre-
ceding year.
Direct flying expenses increased $3,622,465
(up 14.31 %), attributable primarily to the high-
er costs for maintenance and depreciation of the
new and larger flight equipment placed in
service. Ground and indirect expenses increased
$1,573,256 (up 6.85%), and represented 46%
of total operating costs.
The available ton mile costs for Delta Air
Lines, Inc. for the last six years are shown be-
low, reflecting the extent to which higher cost
levels have not been overcome by increased ef-
ficiencies and (to a lesser degree) the somewhat
higher cost characteristics of the C&S system:
Year Ending
June 30th
1950
1951
1952
1953
1954
1955
Cost Per Available
Ton Mile
26.50
26.24
28.27
30.73
29.75
29.23
DIVIDENDS-Four quarterly dividends of 30
each were declared during the year, aggregating
$720,309, payable on September 6, 1954, De-
cember 6, 1954, March 7, 1955 and June 6, 1955.
This is the seventh consecutive year in which
cash dividends have been paid and the payment
Some of the 51 spare engines necessary to back up
the 140 active power plants in the fleet of 53 planes.
of the June 6, 1955 dividend was the 18th con-
secutive quarterly dividend.
Financing-Capitalization
BANK CREDIT AGREEMENT - On Sep-
tember 2, 1952 your Company entered into a
Credit Agreement with a group of twenty-five
banks under which $20,000,000 could be bor-
rowed from time to time on unsecured notes
bearing a 3% interest rate repayable in six-
teen equal quarterly installments commencing
fifteen months after the date of each loan. At
the beginning of the fiscal year $14,000,000 had
been borrowed under this Agreement, and dur-
ing the year the remaining $6,000,000 was bor-
rowed to apply upon the purchase of the six
DC-7 aircraft received during the year. At June
30, 1955 $2,300,000 had been repaid, leaving
$17,700,000 outstanding - $3,875,000 due within
one year from that date and the balance of
$13,825,000 due at later dates. The repayment
schedule calls for payments as follows:
Fiscal Years
Ended June 30
1956
1957
1958
1959
1960
Amount
$3,875,000
5,000,000
4,850,000
2,850,000
1,125,000
This Credit Agreement provides that no cash
dividends on common stock shall be paid which
would reduce earned surplus below $3,700,000,
and that a working capital balance of not less
than $1,500,000 must be maintained. The bal-
ances of both items at June 30, 1955 were well
above the specified amounts.
DEBENTURES - At the beginning of the fis-
cal year there were outstanding $10,858,546 of
the 5% convertible debentures authorized in
connection with the merger of Chicago and
Southern Air Lines, Inc. with and into Delta
on May 1, 1953. During the year $54 principal
amount of debentures were sold for cash and
$42,000 principal amount were issued to a
f~rmer _officer of C&S under options held by
him pnor to the merger. During the year
$5,000,000 principal amount of debentures were
called for redemption, $2,500,000 as of February
21, 1955 and $2,500,000 as of July 25, 1955.
These calls resulted in cash redemptions of $2,-
858,000, with the balance of $2,142,000 being
converted into common stock at the established
rate of one share of common stock for each $35
Sources ol the 1955 Revenue Dollar
face value of debentures. In addition, $33,400
of uncalleq debentures were converted into
common stock. As a result of these transactions,
outstanding debentures recorded at June 30,
1955 were $5,867,200 (after giving effect to the
call as of July 25, 1955 made pursuant to action
of the Board of Directors on June 14, 1955),
down $4,991,346 from the beginning of the year.
On July 28, 1955 the Board of Directors voted
to call for redemption an additional $3,000,000
principal amount of these debentures, and Sep-
tember 9, 1955 has been fixed as the redemption
date. It is anticipated that a substantial portion
of those called will be converted into common
stock, but the division between conversions and
redemptior:is cannot now be forecast. Consum-
mation of this call will reduce the outstanding
debentures to approximately $2,500,000, with
another $42,000 reserved for outstanding options
held by a former officer of C&S.
STOCKHOLDER EQUITY - As a result of
debenture conversions, the number of shares of
outstanding common stock increased from 600,-
000 at June 30, 1954 to 661,913 shares at June
'ooo OMITTED"'
PASSENGER & EXCESS BAGGAGE $54,732
1,474
2.762
582
91.91 %
2.47 %
4.64 %
.98 %
3
4
30, 1955, including the shares issued in connec-
tion with the debentures called for redemption
on July 25, 1955. The stockholder equity re-
corded at June 30, 1955 was $19,845,898, equiva-
lent to $29.98 per share of outstanding stock.
Complete conversion of the $5,867,200 out-
standing debentures at June 30, 1955 would re-
quire the issuance of approximately 167,000
shares of common stock. Such complete con-
version would result in there then being out-
standing 829,000 shares of common stock, each
having a book value of $31.00.
Mail Rates
DOMESTIC - From October 1, 1951 to Jan-
uary 1, 1954 your Company received service
mail pay at the rate of 53 per ton mile, the
compensatory rate established for it and five
other carriers by the CAB; under this group
rate structure, a compensatory rate of 45 per
ton mile was established for the "Big Four" (in
recognition of the characteristics of their route
structures which permitted lower operating
costs) and rates higher than 53 a ton mile for
the balance of the industry. In late 1953 the
Post Office Department registered its objection
to these varying service rates, which resulted in
some instances in the Department paying differ-
ent amounts of service mail pay for the same
service. Accordingly, the Civil Aeronautics
Board prescribed for Delta and the other car-
riers in its group a rate of 45 per ton mile for
mail carried over segments where one or more
carriers of the "Big Four" also provided the
service, and a slightly higher rate over the re-
mainder of its system, effective January 1, J954;
this combination of rates produced an average
yield of approximately 51 per ton mile.
The Civil Aeronautics Board then opened the
service mail rates of all the domestic trunk lines
for redetermination effective April 1, 1954.
After extensive conferences involving the air-
lines, the CAB, and the Post Office Department,
agreement was reached on a new "Multi-
Element" mail rate formula for the domestic
carriers which eliminates any differential in rates
between carriers and provides for payment of
the same service mail pay for the performance
of the same service. This multi-element formu-
la, which contains one rate for terminal han-
dling and one rate for line-haul transportation
of air mail, resulted in a $5.5 million reduction
in annual service mail pay for the industry.
The application of this formula is estimated to
develop a net return of approximately 44.7
per ton mile for your Company, effective April
1, 1954; domestic mail revenues for the fiscal
year ended June 30, 1955 have been recorded
at this new, lower rate.
INTERNATIONAL- Mail revenues for the
international division have been recorded at
service rates only since May 1, 1953. Although
C&S received mail pay subsidy support for this
division prior to the merger, and operations of
the international division since the merger have
been conducted at a loss in the absence of such
governmental support, the U.S. Supreme Court
decision in the "Off-Set Case" discussed below
has precluded the receipt of mail pay subsidy
Booming Caracas, Venezuela was the destination of the
world's first inter-continental DC-7 service in April 1955.
since the merger. Service mail pay for this
operation (reduced from 88 to 65 a ton mile
effective April 8, I 954) aggregated $49,056 for
the year ended June 30, 1955, 1.2% of the total
revenues of that division.
OFF-SET ISSUE - In 1952 the Post Office De-
partment filed a petition requiring judicial re-
view of a CAB Rate Order of October, 1951
establishing international subsidy mail pay rates
for C&S, contending that the CAB erred in re-
fusing to take into consideration certain profits
earned on the C&S domestic operations in de-
termining the mail pay requirements of its in-
ternational operations. The determination of
mail pay requirements on a divisional basis for
a carrier operating more than one division had
been followed by the CAB since the passage of
the Civil Aeronautics Act in I 938, and this
policy had not theretofore been challenged. In
May, I 953 the Circuit Court of Appeals of the
District of Columbia r~led in favor of the Post
Office Department, and this ruling was upheld
by the U. S. Supreme Court in a decision issued
February 1, 1954.
This decision requires the CAB to redeter-
mine the mail pay requirements of the C&S
system for certain periods prior to the merger
in accordance with the principle that the entire
operations of the carrier must be considered.
Initial procedural steps looking toward this
redetermination were begun shortly after the
close of the fiscal year. We will endeavor to
sustain our position that the "need" of C&S
for the periods involved does not warrant any
recapture of mail payments by the Post Office
Department, but it is impossible to forecast the
amount of refund; if any, that may be ulti-
mately required.
Legislation was introduced in the 84th Con-
gress which, if adopted, would re-establish the
divisional rate-making principle followed by the
CAB prior to the Supreme Court decision with
respect to all pending rate matters.
Services
GOLDEN CROWN DC-7s - Our Golden
Crown DC-7 aircraft played a major role in the
increased use of our services by the traveling
public. The six DC-7s ordered in 1953 were
delivered during the year, bringing the total to
ten, and they have been placed in service on
all major route segments (serving 15 cities over
the system). On April 1, 1955 we inaugurated
the world's first intercontinental DC-7 service
with daily flights between New Orleans, Lou-
isiana and Caracas, Venezuela via Ha van a, Cuba
and Montego Bay, Jamaica.
This 69-passenger airplane with a cruising
speed of 365 miles per hour and such added
features for passenger comfort as built-in air
conditioning is the finest piston-engine aircraft
in operation today, and it ushered in a new
era of air transportation.
5
6
Delta pioneered portable X-ray equipment for inspec-
tion of inaccessible places, such as inside of a DC-7 wing.
DC-7 aircraft produced 365.2 million seat
miles during the year (24.06% of the total) and
carried 245.6 million revenue passenger miles
(25.79% of the total). Your Company first in-
augurated service with this equipment in April,
1954, a full fifteen months ahead of its princi-
pal competitor. The impact of increased com-
petition can be anticipated in the future, how-
ever, as additional DC-7 units are placed in
service by other carriers.
AIRCOACH - Your company deferred the in-
auguration of daylight aircoach service because
the size of its fleet did not permit the conversion
of a portion to the high-density seating con-
figuration required for this service by CAB
regulations. Receipt_ of DC-7 aircraft during the
year made it possible to convert our DC-6s to
the required seating density, and daylight air-
coach service was begun in December, 1954 in
keeping with our policy of giving the areas
served by us the maximum possible benefits of
air transportation - both in quality of the
product and the prices charged for that product.
During the year we also continued, and broad-
ened where possible, the comprehensive network
of night aircoach service now provided 16 cities.
A total of 339 million available seat miles of
aircoach service were operated during the year
(an increase of 53.32% over the preceding year),
and aircoach services accounted for 97.3 million
(53.23%) of the 182.8 million increase in total
revenue passenger miles over the preceding year.
INTERCHANGES-Your Company, which
pioneered post-war equipment interchanges, is
still one of the foremost part1opants in those
operations that bring to the public the advan-
tages of through-plane service without imposing
upon the industry the burden of route dupli-
cations which in some instances are not eco-
nomically justifiable.
The equipment interchange operations in
which we participate are detailed below:
a) With TWA (begun in 1948) through-
plane service (two daily round trips) be-
tween Detroit and points on Delta's routes
south of Cincinnati, with Cincinnati as
the interchange point.
b) With American (begun in 1949) through-
plane service between Atlanta and Cali-
fornia, with Dallas/Fort Worth as the
interchange point. Three round trips a
day are operated under this agreement,
including Golden Crown DC-7 service.
c) With American and National (begun in
1951) through-plane service between Mi-
ami and California, with New Orleans
and Dallas/ Fort Worth as the interchange
points. Three round trips a day are op-
erated under this agreement, including
Golden Crown DC-7 service and DC-6
daylight aircoach.
d) With TWA (begun in 1953) through-
plane service (one daily round trip) be-
tween New York and Houston, with In-
diana polis as the interchange point.
Equipment and Facilities
FLIGHT EQUIPMENT-Acquisitions of
flight equipment (including spares and parts)
totaled $12,076,532 during the year, covering
primarily six DC-7 aircraft. At the end of the
year our aircraft fleet consisted of ten Golden
Crown DC-7s, seven DC-6s, twenty Super Con-
vair 340s, fourteen DC-3s, and two DC-3 all-
cargo planes. These 53 aircraft and related
spares and parts are reflected in the balance
sheet at an original cost of $48,409,359, against
which a depreciation reserve of $17,848,914
(36.87%) had been accrued at that date.
Orders have been placed for five more DC-7s
having a productive capacity of 350 million seat
miles annually, one for delivery in December,
1955 and the remaining four in mid-1957. These
aircraft and necessary spares will cost an esti-
mated $1'0,500,000. We also have placed an
order for six additional DC-7 type aircraft to
be delivered in the 1957-1958 winter, subject
to cancellation at nominal cost prior to a speci-
fied future date.
Receipt of these aircraft on order, together
with increased utilization of the existing fleet,
will provide additional capacity until such time
as turbine powered aircraft become established
in the domestic airline picture, which from
present indications will occur in 1959 or 1960.
We are following with close interest the de-
velopment of turboprop and turbojet aircraft
potentially suitable for our operations.
The initial installation of airborne radar
equipment for avoidance of turbulence in flight
will be completed in the next few months, and
it is anticipated that all our four-engined air-
craft will be similarly equipped as promptly as
possible thereafter.
GROUND EQUIPMENT AND FACILITIES-
Acquisitions of ground facilities and equip-
ment totaled $442,827 during the year, reflect-
ing modernizations of various airport and city
ticket offices over the system and additional
equipment required by new aircraft and the
expanded volume of services.
Firm plans have been made for increased
maintenance and office facilities at the Atlanta
base, to be constructed on land under long-
term lease. New maintenance facilities are also
planned for Miami and Dallas, to be constructed
with funds furnished by lessor agencies.
Sales-Advertising
Sales activities during the year were directed
primarily to popularizing the expanded Golden
Crown DC-7 services and the additional air-
coach services.
Arrangements were completed with banks in
all major cities for a "Fly Now - Pay Later"
plan. Under this arrangement transportation
and related expenses may be purchased on
credit, with the Company handling the sales
and contact functions and the banks providing
credit without recourse to the Company. The
total volume of sales made under this program
has been relatively small to date, but it has de-
veloped business not otherwise obtainable.
Your Company's advertising program received
significant recognition by winning the coveted
"Socrates" award. This award is given annually
by Transportation Ad Views for the best news-
paper advertising program covering all fields of
transportation.
Expenditures for advertising and promotional
purposes totaled $1,592,243 for the year. Al-
though these dollar expenditures increased
slightly over the preceding year, the percentage
of commercial revenues expended therefor de-
creased to 2.76% from 3.24%.
General offices and maintenance headquarters on Atlanta airport. Larger hangar (A) is now being extended
and 25,000 sq. ft. (B) added to engine overhaul.
,,,,,...__--------......
,, .........
8
As many as 31 separate pieces of ground equipment and
21 employees are required to service the average four-
Safety and Dependability
June 30, 1955 marked the completion of another
year of operation without fatality or serious in-
jury to passengers or flight crew members. Your
Company is proud of its contribution to the
safety record of this country's certificated car-
riers, which reached a new high.
Continuing improvements in air navigational
facilities and the general dependability of the
new aircraft placed in service permitted the
completion of 98.79% of scheduled mileage, up
from 98.29% the preceding year.
Personnel
The total number of employees at June 30,
1955 was 4,547, an increase of 290 (6.8%) dur-
ing tl).e year. It is gratifying to realize that our
operations created these additional job oppor-
tunities, with the accompanying increase in em-
ployee earnings contributing to the economic
health of the communities that we serve.
A general wag~ and salary increase was placed
into effect in November, 1954, in keeping with
the industry and nationwide trend. The em-
ployee retirement income plan begun in 1942
was once again modernized effective January 1,
1955 to provide benefits under the non-con-
engine Deltaliner at a major terminal. DC-7's have full-
time air conditioning, do not need cooler truck shown.
tributory portion of the plan on the first $4200
of an employee's annual earnings (previously
$3600), in order to maintain complete integra-
tion with the Federal Government's Social Se-
curity program. Your Company also continued
its liberal program of free and reduced rate
transportation for employees and their families,
its sponsorship of an Employees' Credit Union
(with total assets of $860,000) and numerous
other recreational and educational projects.
At June 30, 1955 employees with more than
five years of service numbered 2,067 (46% of
the total), and 638 had more than ten years of
service. This situation is most encouraging, pro-
viding as it does the nucleus of skilled and ex-
perienced employees upon which to build for
the future.
Route Extensions and
Modifications
The "Additional Southwest - Northeast Service
Case" remains for us the most important pend-
ing route case. The map on Pages 10 and 11 of
this report sets forth the route extensions sought
therein, designed to provide new and competi-
tive air service between the South and South-
west and the New York - Washington area,
requiring primarily an extension of existing
routes northeastward from Atlanta. On August
29, 1955 the Examiner issued his initial decision
which did not recommend our requested route
extensions. The only further procedural steps
before final decision are the filing of briefs to
the CAB and oral arguments before the CAB.
The expeditious manner in which the CAB is
processing route cases makes possible a final
decision by the end of 1955 and quite probable
that it will be issued before March 31, 1956.
Hearings are presently being conducted in the
"New York - Florida Proceeding", in which sev-
eral carriers (including your Company) seek to
provide additional air service along the East
Coast. The specific authority sought by us in
this case is also shown on the map on Pages 10
and 11. Final disposition of this case cannot
be expected before mid-1956. We have filed
with the CAB numerous other applications to
provide additional -service, but none of these
have progressed to the hearing stage.
On August 1, 1955 the CAB denied our re-
quest that Fort Wayne, Indiana be designated
as the junction point for Routes 8 and 54,
which, if approved, would have permitted
through-plane service between Detroit and
points south of Fort Wayne on Route 54.
Our Merger Agreement of October, 1950 with
Northeast Airlines, which required a route con-
nection between the systems of the two com-
Personnel
by Length ol Service
AS OF JUNE 30. 1953,1954 AND 1955
OVER 20
YEARS
panies, was cancelled by Northeast Airlines dur-
ing the year.
Future Outlook
The results of your Company's application to
serve the Washington - New York area from
Atlanta will have a significant effect upon its
future. Receipt of this requested route would
give us a measure of that equality of competitive
opportunity so vital to the sound growth and
development of one of the Nation's major as-
sets - a vigorous commercial air transportation
system financially independent of subsidies.
Certainly a favorable economic climate exists
for the CAB to make such route awards and
adjustments as are necessary to achieve that ob-
jective. The revenue passenger miles carried by
the domestic trunk lines in 1954 of 16.2 billion
represent an increase of 14 7 % in five years.
Economists predict that the volume of air
travel in 1960 will be almost triple that of
1950. \!Ve are hopeful that our past record of
service, and the service which we could provide,
will earn for us primary consideration by the
Civil Aeronautics Board.
President and General Manager
September 12, 1955
9
10
Della seeks access to
During the past year your Company has devoted major efforts to the
prosecution of the two most important route applications in its history. In
both Delta seeks access to the nation's primary travel market - Washington
and New York.
In the Southwest-Northeast Case, now awaiting decision following lengthy
hearings during the fall of I 954, Delta has applied for a 774-mile extension
from Atlanta to ~harlotte, Washington, Baltimore, Philadelphia and New
York. We are also seeking in this proceeding to close the gaps in our present
system between Birmingham-Memphis and between New Orleans-Houston.
In the New York-Florida Case, in which hearings opened June 6, 1955,
we have filed application for a Miami-New York-Boston route. We already
serve one-third of this 1284-mile segment - from Miami to Jacksonville and
up through Brunswick, Savannah and Augusta to Columbia. We seek an
extension of our present route 54 from Columbia northward to Charlotte,
Fayetteville, Greensboro/ High Point/ Winston-Salem, Norfolk, Washington,
Baltimore, Philadelphia, New York and Boston. As a part of the same appli-
cation, we request the addition of Tampa/ St. Petersburg as an alternate
stop on route 54 between Jacksonville and Miami.
Access to Main Street America - the business, financial and government
centers of the Northeast - constitutes the Company's greatest need. This is
the market to \Vhich we must have access if we are to attain economic stability
and equality of competitive opportunity.
Delta alone among the major carriers operating east of the Mississippi is
still denied entry to New York-\,Vashington, the area that accounts for
approximately 45 per cent of all the nation's air passengers. No efficiencies
which we can achieve in our operations, no skills which management can
apply in the direction of your Company, can compensate for the lack of access
to the country's prime traffic generating area. Delta is seriously handicapped
because it is not permitted to carry its passengers in the South and Southwest
all the way to their principal destinations - Washington and New York.
During the past two decades the South and Southwest have undergone an
amazing economic expansion. Yet despite its dramatic progress this region
is still denied the benefits of that effective airline competition enjoyed by
other important areas of the United States. Delta, as a Southern airline with
a well-developed route system in the South, is the logical carrier to fill this
glaring gap in the air pattern of the nation.
Your Company's readiness, willingness, and ability to meet this pressing
need has been convincingly documented to the Civil Aeronautics Board. An
award to Delta in this case will not only strengthen the Company and enable
it to continue to operate free of subsidy, but also serve the public interest.
The public need is equally paramount in the New York-Florida Case,
which involves third ~arrier competition between Miami and New York, a~
well as essential new and additional service to intermediate cities between
Miami and Boston.
Florida's growth justifies added air service. Between 1948 and 1954, the
state's air traffic increased 3.3 times, compared to 1.4 for the U. S. as a
whole. This growth continues. If there is justification for competition by three
carriers anywhere in the world, it exists between Florida and the Northeast.
During JO years operation in the highly competitive Chicago-Miami
market, Delta - which pioneered the airline summer package vacation in
1947 - has demonstrated its ability to sell air travel to Florida. An award
to Delta in this case will provide an additional experienced Florida sales-
man in the dense Northeast market.
_4 ELPHIA
WILM TON ,
BALTIM,
CI N NAT I . ~
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ANNAH
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CEAN
LEGEND
- Delta Present Airline Routes
THROUGH PLANE SERVICE WITH
American Airlines
CU:::::ICI National Airlines
~TWA
PROPOSED NEW SERVICES
Southwest-Northeast Case
New York - Florida Proceeding
VI GIN
12
assets
CURRENT ASSETS:
Cash . . . . . .
Securities, at cost which approximates market-
U.S. Government securities . . . . . .
Federal Land Bank and Home Loan Bonds
Accounts receivable-
Traffic (net) . . . . . . . . . . .
Other . . . . . . . . . . . . . . . .
Maintenance and operating supplies, at average cost
Other current assets . . . . . . . . . . .
Total current assets
OTHER ASSETS:
Advance payments for new flight equipment
Net assets of dusting division . . . . .
Miscellaneous . . . . . . . . . . .
OPERATING PROPER TY AND EQUIPMENT (Including
$3,912,188 and $3,974,097 fully depreciated in 1955 and
1954, respectively):
Cost-
Flight
Equipment
1955 . . . . . . $48,409,359
1954 . . . . . . 37,154,570
Reserve for depreciation-
1955 17,848,912
1954 . . . . . . 12,550,282
Other
Property and
Equipment
$6,238,399
6,028,542
3,158,139
2,852,358
PROPERTY ACQUISITION ADJUSTMENT (Note 3)
DEFERRED CHARGES:
Unamortized DC-7 preinaugural expense
Advances for leased facilities, being amortized
Other deferred charges . . . . . . . .
, ,'DELTA AIR LINES. INC.
ATLANTA, G EORGIA
BALANCE SHEETS-JUNq 30 , 1955 AND 1954 liabllltles
1955
$ 5,855,019
6,990,197
3,752,160
1,179,069
534,792
451,459
$18,762,696
$
136,317
261,869
$ 398,186
$54,647,758
21,007,051
$33,640,707
$ 734,391
$ 111,546
83,431
318,925
$ 513,902
$54,049,882
1954
$ 6,403,316
3,298,683
1,002,293
2;985,946
1,199,421
720,255
278,632
$15,888,546
$ 2,587,200
149,049
118,189
$ 2,854,438
$43,183,112
15,402,640
$27,780,472
$ 993,591
$ 222,037
104,886
246,027
$ 572,950
$48,089,997
CURRENT LIABILITIES:
Current maturities of notes payable
Accounts payable and accrued liabilities .
Advance sales of tickets for transportation
Accrued Federal and state taxes on income
Air travel plan deposits
Total current liabilities
3% NOTES PAYABLE TO BANKS due in installments to
1960 (less current maturities above)
5% CONVERTIBLE DEBENTURES (SUBORDINATED)
due May 1, 1973 (convertible into common stock at $35.00
per share), reflecting in 1955 the retirement of $2,500,000 of
Debentures called on June 24, 1955 for redemption as of
July 25, 1955 (Note 4) . . . . . . . . . .
RESERVES AND DEFERRED CREDITS:
Deferred Federal income taxes (Note I)
Reserve for aircraft overhaul
Other . . . . . . . . . . . .. .
CAPITAL STOCK AND SURPLUS:
Common stock, par value $3.00 per share,
Authorized 1,500,000 shares, of which 169,080 shares are
reserved for conversion of Debentures
Issued and outstanding 600,000 shares at June 30, 1954
and 661,913 shares at June 30, 1955 including 57,700
shares issued after June 30 in conversion of Debentures
called for redemption on July 25, 1955 . . . . . .
Capital surplus . . . . . . . . . . . . . . . .
Earned surplus (of which $3,700,000 is not available for cash
dividends under terms of credit agreement and indenture) .
PURCHASE COMMITMENTS AND CONTINGENT
LIABILITY (Note 2)
The accompanying notes are an integral part of these statements.
1955
$ 3,875,000
4,692,190
1,746,498
1,695,731
677,025
$12,686,444
$13,825,000
$ 5,867,200
$ 1,325,000
372,211
128,129
$ 1,825,340
$ 1,985,739
7,653,652
10,206,507
$19,845,898
$54,049,882
1954
$ 2,150,000
4,441,961
1,020,156
662,919
586,075
$ 8,861,111
$11,700,000
$10,858,546
$ 335,000
102,113
$ 437,113
$ 1,800,000
5,672,436
8,760,791
$16,233,227
$48,089,997
13
14
ARTHUR ANDERSEN & Co.
statements ol income f:OR THE YEARs ENDED JUNE 3o, 1955 AND 1954 ACCOUNTANTS AND AUDITORS
OPERATING REVENUES:
Passenger
U.S. Mail
Freight .
Express .
Excess baggage
Other operating revenue-net
Total operating revenues
OPERATING EXPE SES:
Flying operations
Direct maintenance-flight equipment
Depreciation-flight equipment
Total direct aircraft operating expenses
Ground operations
Ground and indirect maintenance
Passenger service
Traffic and sales .
Advertising and publicity
General and administrative
Depreciation-ground equipment
Total operating expenses
Income from operations before income taxes
OTHER EXPENSE (INCOME):
Interest on notes payable .
Interest on debentures . . . . . .
Amortization of property acquisition adjustment (Note 3)
Net profit of dusting division . . . . . . . . . .
Other- net
Total other expense (income)
Income before income taxes
PROVISION FOR TAXES ON INCOME:
Federal and state taxes on income, including deferred taxes
1955
$53,966,525
1,462,684
1,844,168
917,609
765,580
231,395
$59,187,961
$15,655,414
7,280,827
6,004,905
$28,941,146
6,865,012
3,718,398
3,573,237
5,500,221
1,592,243
2,861,699
440,076
$53,492,032
$ 5,695,929
$ 563,444
547,140
199,290
(4,269)
71,149
$ 1,376,754
$ 4,319,175
of 990,000 in 1955 and 335,000 in 1954 (Note 1) 2,412,000
Net income $ 1,907,175
SPECI~L IT~M-Profit on disposition of flight equipment (less
a pphcable mcome taxes of 103,000 in 1955 and $407 000 in
1954) '
Net income and special item
258,850
$ 2,166,025
1954
$45,144-,949
1,723,703
1,766,266
844,483
602,579
251,902
$50,333,882
$15,229,008
5,210,545
4,879,128
$25,3 18,681
6,591,262
3,41 0,455
3,375,200
4,871,386
1,574,364
2,758,939
396,024
$48,296,3 11
$ 2,037,571
$ 388,812
594,647
453,313
(23,252)
(53,533)
$ 1,359,987
$ 677,584
394,000
$ 283,584
1,022,365
$ 1,305,949
To the Board of Directors,
Delta Air Lines, Inc.:
THE WILLIAM-OLIVER BUILDING
ATLANTA 3
We have examined the balance sheet of Delta Air Lines, Inc. (a Louisiana
corporation) as of June 30, 1955, and the related statements of
income and aurplus for the year then ended. Our examination was made in
accordance with generally accepted audi ting standards, and accordingly
included such tests of the accounting records and such other auditing
procedures as we considered necessary in the circumstances.
In our opinion , the accompanying balance sheet and statements of income
and surplus present fairly the financial position of Delta Air Lines, Inc.
as of June 30, 1955, and the results of its operations for the year then
ended , and were prepared in conformity with generally accepted accounting
principles applied on a basis consistent with that of the preceding year.
Atlanta, Georgia,
August 26, 1955.
ARTHUR ANDERSEN & CO.
AUDITOR'S CERTIFICATE
statements of surplus
FOR THE YEAR ENDED JUNE 30, 1955
Balance at beginning of year
Add:
Net income .
Special item-Profit on disposition of flight equipment (less
applicable income taxes of $103,000) . . . . . .
Excess of conversion price over par value of common stock
issued on conversion of Debentures, including amount
called June 24, 1955 for redemption on July 25, 1955 (Note
4)
Deduct:
Cash dividends on common stock
Balance at end of year ($3,700,000 of earned surplus is restricted
as indicated on balance sheet)
Earned
Surplus
$ 8,760,791
1,907,175
258,850
$10,926,816
720,309
$10,206,507
Capital
Surplus
5,672,436
1,981,216
$7,653,652
7,653,652
The accompanying notes are an integral part of these statements. 15
16
notes to llnanclal statements
1. DEPRECIATION RATES AND EMERGENCY AMORTIZATIONS:
The Company's 3 Model 649 Constellations, which at June 30, 1955 were being leased to another
airline, are b~ing depreciated to a residual value of $50,000 each from the dates placed in service
(1 in 1950 and 2 in 1951) to December 31, 1955. The 7 DC-6's are being depreciated to a resid-
ual value of 10% of cost from the dates placed in service (4 in 1948, 2 in 1949 and 1 in 1951) to
December 31, 1955. The 16 DC-3's have been fully depreciated to a residual value of 10% of cost.
The 10 DC-7's and 20 Model 340 Convairs are being depreciated for book purposes to residual
values (10% of cost of DC-7's and 2% of cost of Convairs) over a period of seven years from the
dates placed in service (19 Convairs in 1953 and 1 in 1954 and 7 DC-7's in 1954 and 3 in 1955).
For Federal income tax purposes, 80% of the cost of these aircraft and related spare parts is being
amortized under Certificates of Necessity over a 60-month period from the dates placed in service
and the remaining 20% of the cost of the equipment placed in service in 1954 and 1955 is being
depreciated using a method of accelerated depreciation permitted by the Internal Revenue Code
of 1954.
The reduction of current Federal income taxes of $335,000 in 1954 and $990,000 in 1955, result-
ing from this accelerated amortization and depreciation, has been charged to income and set up
in a special deferred tax reserve to provide for the estimated Federal income taxes which may arise
in later years when the depreciation which is taken on the books for this flight equipment is no
longer deductible for tax purposes. The effect of such accounting is to prevent the tax defer-
ments resulting from accelerated amortization and depreciation from distorting annual net income
during the period of acceleration or in subsequent periods.
2. PURCHASE COMMITMENTS AND CONTINGENT LIABILITY:
The Company has outstanding commitments for 5 DC-7 aircraft (1 to be delivered in 1955 and
4 in 1957). It is estimated that the acquisition of these aircraft and related spare parts and acces-
sories will require a total outlay of approximately $10,500,000. In addition, the Company has placed
an order with Douglas Aircraft Company, Inc. for 6 DC-7's for delivery in 1957 and 1958; the Com-
pany has the privilege of cancelling this order at any time before a specified future date at a rela-
tively minor cost.
The Supreme Court of the United States by decision dated February 1, 1954, sustained the Post
Office Department's objection to a Chicago and Southern Air Lines, Inc. (C&S) international mail
rate order issued by the CAB in October 1951 (the so-called "offset" case). The Department con-
tended that the entire operations of a carrier with both domestic and international divisions
should be taken into consideration in determining the mail pay requirements of either division,
and that accordingly the rate order in question provided excess mail revenue of $654,000 for the
calendar years 1948-1950. The Supreme Court decision requires the CAB to review its original order
and redetermine the mail pay requirements for the C&S international operations for the periods
involved in accordance with the principles therein established. The amount of mail pay refund, if
any, that Delta may be required to pay as successor of C&S cannot now be determined.
3. PROPERTY ACQUISITION ADJUSTMENT:
This account represents chiefly the excess of fair value over book value of flight equipment
acquired from Chicago and Southern Air Lines, Inc. when that Company was merged into Delta
as of May 1, 1953. The original amount of $2,753,381 is being reduced by amortization over a
60-month period from May 1, 1953 and by credits from sales of the related flight equipment. Dur-
ing fiscal 1955 the account was reduced by amortization of $199,290 charged to non-operating
expense and $59,910 charged to incidental revenue applicable to the three Constellation aircraft
leased to another airline.
4. REDEMPTION OF DEBENTURES:
During 1955 the Company called for redemption $5,000,000 of 5 % Convertible Debentures (Subor-
dinated) including $2,500,000 ($2,128,900 convened and $371,100 redeemed) called on June 24,
l 955 for redemption on July 25, 1955 and reflected in the accompanying balance sheet. On August
9, 1955 the Company called $3,000,000 additional Debentures for redemption on September 9, 1955.
5. OPTIONS HELD av FORMER OFFICERS:
The merger agreement with Chicago and Southern Air Lines, Inc. (C&S) provided that options
granted to certain officers of C&S for the purchase of common stock of C&S for $10 per share would
be honored by Delta by selling to holders of the options at $10 per share the amount ($21) of
5% Convertible Debentures (Subordinated) which stockholders of C&S could receive in exchange
for each share of their common stock. The remaining options at June 30, 1955 to acquire $42,000
of Debentures for $20,000 expire August 21, 1956.
M ILLIONS
98
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Delta Air Lines, Inc.
FOR Y E ARS E NDING JUN E 30
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1954
1953
1952
1951
1.000
900
800
700
600
500
400
300
200
100
94
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82
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JUL AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY JUN
REVENUE PASSENGER MILES*
-
50 -
DE PRE
CIATION ,______ 40
DE PRE
CIATION 30
NET
DEPRE
BOOK
--- NET
------ VALUE
,__..._
CIATION BOOK
20
VALUE
,_____
NET - ,_____ 10
BOOK
VALUE ~
MIL IONS
1953 1954 1955
FLIGHT EQUIPMENTt
200
AVAILABLE TON MILES 180
160
REVENUE TON MILES
140
120
100
80
60
40
20
MI L l!.IONS
'46 '47 '48 '49 '50 '51 '52 '53 '54 '55
TON MILES AND PLANE MILES
* COMBINED DELTA- C8cS SYSTEMS
'46 '47 '48 '49 so '51 52 '53 '54 '55
REVENUE PASSENGER MILES
.-----~---------------------, 7
:r--- -- - - -- - - - - --1 6
5 YEAR EARNINGS
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TOTAL ,lS
DIVIDENDS
1--- -- - - -- - - -- ---1 4
'51 '52 '53 '54 '55
EARNINGS AND DIVIDENDS PER SHARE
DOLLARS PER SHARE
30
28
26
24
22
20
18
16
14
12
10
8
6
4
2
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'46 '47 '48 '49 '50 ' 51 '5 2 '53 '54 '55
NET BOOK VALUE PER SHARE
OF COMMON STOCK t
t AS OF JUNE 30
3
2
17
----
Delta Air Lines, Inc.
-~~~to{ roaJfrL
;.
1955 1954 1953 195 1 1949
YEA.RS ENDED JUNE 30TH
1948 1947 1946
Total assets . $54,049,882 $48,089,997 $37,966,469 $16,836,905 $14,402,050 $12,371,851 $12,629,268 $ 9,352,827 $ 9,306,766 $ 6,034,364
Current assets . 18,762,696 15,888,546 14,706,498 9,027,490 7,184,532 5,170,591 5,310,482 4,682,029 5,630,338 2,765,210
Current liabilities 12,686,444 8,861,111 9,192,041 6,618,627 4,541,282 2,950,443 2,751,859 2,180,988 2,253,963 1,638,948
Net working capital . 6,076,252 7,027,435 5,514,457 2,408,863 2,643,250 2,220,148 2,558,623 2,501,041 3,376,375 1,126,262
Stockholders' equity . . . . 19,845,898 16,233,227 15,647,278 9,808,493 8,658,043 7,401,245 6,710,494 6,196,053 5,789,701 4,220,770
Stockholder equity per share . . . . 29.98 27.06 26.08 19.61 17.32 14.80 13.42 12.39 11.58 10.55
Shares of common stock outstanding at
end of year . . . . . . . . . 661,913 600,000 600,000 500,000 500,000 500,000 500,000 500,000 500,000 400,000
Operating revenues
Passenger $53,966,525 $45,144,949 $28,946,479 $23,995,938 $19,006,936 $13,761,453 $11,987,246 $10,079,272 $10,558,559 $ 6,944,162
Mail 1,462,684 1,723,703 1,131,578 1,035,599 1,306,752 2,373,213 2,434,888 2,010,668 423,292 680,359
Express 917,609 844,483 550,305 431,240 374,480 238,441 244,859 273,099 242,978 137,540
Freight 1,844,168 1,766,266 1,044,338 827,927 720,719 478,537 358,503 303,115 109,603
All other 996,975 854,481 665,102 727,417 812,112 333,651 202,349 152,815 154,404 97,955
Total revenues 59,187,961 50,333,882 32,337,802 27,018,121 22,220,999 17,185,295 15,227,845 12,818,969 11,488,836 7,860,016
0 pera ting expenses (excluding
depreciation) 47,047,051 43,021,159 26,641,944 21,155,513 I 7,499,480 14,568,386 13,096,091 11,605,990 10,837,709 6,694,265
Depreciation 6,444,981 5,275,152 2,259,784 1,485,556 1,389,721 1,206,755 1,185,865 1,012,954 944,659 609,888
Total expenses 53,492,032 48,296,311 28,901,728 22,641,069 18,889,201 15,775,141 14,281,956 12,618,944 11,782,368 7,304,153
Operating ratio 90.38% 95.95% 89.37% 83.80% 85.01 % 91.79% 93.79% 98.44% 102.55% 92.93%
Net non-operating revenue or
(expense) (1,376,754) (1,359,987) (1,345,957) 12,398 (75,000) (5,403) (52,603) (50,845) (67,302) (12,793)
Net income before taxes 4,319,175 677,584 2,090,117 4,389,450 3,256,798 1,404,751 893,286 149,180 (360,834) 543,070
Taxes on income . 2,412,000 394,000 688,000 2,739,000 1,625,000 589,000 336,000 56,343 127,459* 232,835
Net income . 1,907,175 283,584 1,402,117 1,650,450 1,631,798 815,751 557,286 92,837 (233,375) 310,235
Net income as % of
revenues 3.22% .56% 4.34% 6.11% 7.34% 4.75% 3.66% .72% 3.95%
Special item - profits from major
flight equipment sales (after taxes) 258,850 1,022,365 2,756,561 82,154 111,893
Total income and special item 2,166,025 1,305,949 4,158,678 1,650,450 1,631,798 815,751 639,440 204,730 (233,375) 310,235
Per share of stock outstanding 3.27 2.18 6.93 3.30 3.26 1.63 1.28 .41 (.47) .78
Revenue plane miles (000) 31,579 31,916 20,672 17,531 15,698 13,804 12,921 12,803 11,822 8,195
Available seat miles (000) 1,517,891 1,344,069 776,157 653,121 541,038 437,209 361,199 349,235 335,630 186,650
Passenger load factor 62.75% 57.26% 65.41 % 65.46% 63.81 % 54.51 % 55.84% 53.92% 66.35% 80.04%
Available ton miles (000) 182,997 162,345 94,045 80,089 71 ,987 59,532 49,544 46,562 42,716 21,981
Revenue ton miles (000) 104,927 87,251 57,565 48,093 40,480 27,259 22,805 19,966 22,799 15,860
Overall load factor 57.34% 53.74% 61.21% 60.05% 56.23% 45.79% 46.03% 42.88% 53.37% 72.15%
Percent of scheduled miles flown 98.79% 98.29% 98.83% 98.98% 98.91% 97.90%
*Credit ) Loss
These data reflect operations of Delta Air L ines, Inc., and do not include the C&S s-ystem prior to May 1, 1953.
18 19
Delta ticket ollices
TICKET OFFICE
ALEXANDRIA Alexandria Air Base
ASHEVILLE Battery Park Hotel
ATLANTA Piedmont and Biltmore Hotels
AUGUSTA Richmond Hotel
BATON ROUGE Heidelberg Hotel
BEAUMONT Jefferson County Airport
BIRMINGHAM 2002 Fifth Ave., North
BRUNSWICK Malcolm-McKinnon Airport
CARACAS, Venez. Edificio Paris, Plaza
Candelaria
CHARLESTON Francis Marion Hotel
CHATTANOOGA Hotel Patten
CHICAGO 67 East Monroe,
Conrad Hilton Hotel
and 1649 Orrington, Evanston, Ill.
CINCINNATI Sheraton-Gibson Hotel and
Netherland Plaza
CIUDAD TRUJILLO, D.R., Arz. Nouel esq.
Sanchez
COLUMBIA Hotel Wade Hampton
COLUMBUS, GA. Ralston Hotel
DALLAS 214 S. Akard St. (Baker Hotel)
DETROIT 1235 Washington Blvd.
EVANSVILLE Mccurdy Hotel
FORT WAYNE Baer Field Airport
FoRT WORTH Hotel Texas
GLADEWATER Gregg County Airport
GREENVILLE Municipal Airport
GREENWOOD Municipal Airport
HATTIESBURG Municipal Airport
HAV;'\NA, CUBA Prado 301
HENDERSONVILLE Asheville-
Hendersonville Airport
HoT SPRINGS Memorial Airport
HOUSTON Mellie-Esperson Bldg.
and Rice Hotel
INDIANAPOLIS Claypool Hotel
JACKSON Heidelberg Hotel
JACKSONVILLE 226 West Forsyth St.
KANSAS CITY Muehlebach Hotel
KILGORE Gregg County Airport
Kl\'OXVILLE Farragut Hotel
LEXINGTON Blue Grass Airport
LITTLE RocK Marion Hotel
LONGVIEW Gregg County Airport
RESERVATIONS TELEPHONE
4471
7601
LAmar 3242
2-8811
5-4491
5-7541
59-9601
BRunswick 107
55-8488
4-2567
2-8336
Flnancial 6-5300
DUnbar 1-3232
5350
4-3186
7-7458
Rlverside 9401
WOodward 2-7190
5-9023
H-3352
EDison 5425
PLaza 3-2688
2-8213
2218
JUniper 2-1643
M-8224
7211
NAtional 3-1671
CApitol 5-1361
MElrose 7-1554
2-0861
ELgin 3-3171
GRand 7733
6488
7-6611
4-5569
FRanklin 5-9111
PLaza 3-2688
TICKET OFFICE
MACON Hotel Dempsey
MEMPHIS Peabody Hotel
MERIDIAN Key Field
MIAMI 300 N.E. First (Columbus Hotel)
MIAMI BEACH 1636 Collins Avenue
MONROE Frances Hotel
MONTEGO BAY, Jamaica Montego Bay
Airport
MONTGOMERY Jefferson Davis Hotel
NEW ORLEANS 708 Common St.
(St. Charles Hotel)
and Roosevelt Hotel
PADUCAH Barkley Field
PORT ARTHUR Jefferson County Airport
PORT-Au-PRINCE, Haiti c/o Nadal & Co.
SAN JUAN, Puerto Rico Caribe Hilton
SAVANNAH Hotel Savannah
SELMA Selfield Airport
SHREVEPORT Captain Shreve Hotel
SPARTANBURG Memorial Airport
SPRINGFIELD Municipal Airport
ST. Lours Statler Hotel
TOLEDO Commodore Perry Arcade
TYLER Pounds Field
by Transportation Ad-Views
for highest ad score during
year ending Oct. 1, 1954
RESERVATIONS TELEPHONE
3-6731
WHitehall 8-2641
2-3141
3-0441
3-0441
3-5116
2811
4-7313
TUlane 8592
31732
2-4321
3313
9-0045
3-0267
TRinity 4-7581
5-3232
7131
4-7353
GArfield 1-5511
LU (Holland) 7-2366
4-8425
Transportation Ad-Views
1954
SOCRATES
AWARD
to Delta-C&S Air Lines
Atlanta, Georgia
George E. Bounds
Director of Advertising
and to Burke Dowling Adams, Inc.
creators of their advertising
for consist01t txcdltnct i" newspaper
advertising during tht past twcfot
mo11ths i11 competition with mJtral
himdrtd other tratt,portation compattits
itt the 'Uttit,d Statts
R. w. COURTS
Atlanta, Ga.
C.H. DOLSON
Atlanta, Ga.
EDWARD H. GERRY
New York, N. Y.
JOHN R. LONGMIRE
St. Louis, Mo.
R.
s. MAURER
Atlanta, Ga.
LAIGH C. p ARKER
Vice President - Traffic and Sales
C.H. DOLSON
Vice President - Operations
w. T.ARTHUR
Asst. Vice President - Operations
directors
R. W. FREEMAN, Chairman
New Orlearns, La.
C. H. McHENRY
Monroe, La.
LAIGH C. p ARKER
Atlanta, Ga.
CARLETON PUTNAM
Washington, D. C.
WINSHIP NUNNALLY
Atlanta, Ga.
officers
C. E. WOOLMAN
President and General Manager
TODD G. COLE
Vice President - Finance
and Assistant Secretary
R. s. MAURER
Vice President - Legal
T. M. MILLER
Asst. Vice President - Traffic
and Sales
TRAVIS OLIVER*
Monroe, La.
R. J. REYNOLDS
Winston-Salem, N. C.
J. WOODALL RODGERS
Dallas, Tex.
D. Y. SMITH
Monroe, La.
C. E. WOOLMAN
Atlanta, Ga.
ERLE COCKE, JR.
Vice President - Civic Afjairs
w. T. BEEBE
Vice President - Personnel
R.H. WHARTON, JR.
Asst. Vice President - Personnel
CATHERINE FnzG ERALD
Assistant Treasurer
C. H. McHENRY
Secretary- Treasurer
Transfer Agent for Common Stock
The Citizens & Southern National Bank
Atlanta, Georgia
Auditors -Arthur Andersen & Co.
* Deceased February 16, 1955
Trustee for Debentures
The First National Bank of Atlanta
Atlanta, Georgia
Registrar for Common Stock
Trust Company of Georgia
Atlanta, Georgia
Annual Meeting- October 18, 1955, Monroe, Louisiana
GENERAL OFFICES ATLANTA AIRPORT
ATLANTA . GEORGIA