Delta Air Lines annual report 1956

MARY OF OPERATIONS
CA
BlE ADDRESS'- DElTAIR
Delta Air Imes. Inc
QEORQ!A
AIRPORT
ATLANTA
OFFICES
GENERAL
ENDED JUNE 3TH)
(YEARS
Change
'
1955
+ 40^
Operating Revenues .
Operating Expenses .
Operating Income
Net Income from Operations,
after Taxes
Total Earnings *
1956
$66,600,000
58,649,000
$ 7,951,000
$ 3,369,000
53,492,000
$ 5,696,000
$ 1,907,000
$ 2,166,000
+ 77%
+ H6%
Shares Outstanding .
Earnings per Share
Cash Dividends Paid .
Dividends per Share
Total Stockholders' Equity
Stockholders' Equity per Share
Revenue Passengers Carried .
Available Seat Miles (000) .
Revenue Passenger Miles (000)
Passenger Load Factor .
Average Return per Passenget
Mile ''
Number of Employees .
996,219
$4.70
$ 922,990
$1.20
$28,358,000
$28.47
2,261,770
1,726,940
1,080,267
62.55%
827,391*
$2.62*
720,309
$1.20
$19,846,000
$23.99*
2,039,018
1,517,890
952,426
62.75%
5.610
5,294
,. , 95
o/ stock dividend paid June 29, 1956
i Adjusted to reflect 25 /0
sio
,, _lX
CARIBBEAN COUNTRIES
THE
HEART OF AMERICA AND SIX C
g^RVlNG THE
+ 20%
+ 79%
28%
+ 43%
+ 19%
5.670
4,547
I
i
f
i -
annual report 1956
TO THE STOCKHOLDERS
Events of great significance to Delta Air Lines,
Inc. occurred during the twelve months ended
June 30, 1956. We were awarded new routes
between Atlanta and New York City and be
tween New Orleans and Houston, permitting
us to provide service to the New York-Wash-
ington area from the South and Southwest.
Orders were placed for $110,000,000 of new
flight equipment, including both jet aircraft
for 1959-1960 delivery and the finest piston-
engined aircraft in the world for the interim
period. All debentures issued in the Chicago
and Southern Air Lines merger were retired,
stockholder equity was increased, and the
1952 Credit Agreement was replaced with a
$30,000,000 revolving bank credit agreement
designed specifically to meet capital needs of the
next few years. The volume of service rendered,
gross revenues, and earnings all reached new
Financial Results
Revenues -- Total operating revenues of
$66,600,000 were $7,400,000 (12.52%) higher
than the preceding year. Passenger revenues in
creased 12.21% to $60,558,000. A record 1,727
million available seat miles (up 13.77%) and
1,080 million revenue passenger miles (up
13.42%) produced a relatively unchanged sys
tem passenger load factor of 62.55%.
Revenues from the transportation of U. S.
mail were $1,468,000, up only slightly from the
year before. These U. S. mail revenues include
$1,346,000 from the carriage of air mail, de
termined pursuant to the multi-element mail
rates (containing no subsidy whatsoever) es
tablished for the industry in early 1955 which
provide the same compensation for all carriers
performing identical services. An additional
$63,000 in mail revenue was derived from the
carriage of first-class mail between northern
points and Florida cities on a non-priority basis,
mail routed by the Post Office Department for
air movement on an experimental basis.
Cargo revenues from air freight and air ex
press were $3,066,000 for the year, representing
increases of $304,000 and 11.00%, accruing
from the carriage of 21,025 tons and 40,476,000
ton miles. Miscellaneous items -- principally ex
cess baggage, flight equipment rentals, and
charter flights -- accounted for $1,508,000 of
revenues.
Continuing the downward trend of recent
years, the average return per ton-mile of rev
enue traffic carried dropped to 56.18^ from
56.41^ in the 1955 fiscal year.
Expenses -- Total operating expenses in
creased 9.64% from the preceding year, to
$58,648,000. The percentage changes by major
expense groups were:
Flying operations +10.87%
Flight equipment maintenance--direct +10.10%
Flight equipment depreciation (net) --11.30%
Ground and Indirect expenses . . . +13.84%
I
y. 4 it
in--mji
Manhattan's skyline with UN buildings in foreground, terminus of Delta's
new route to the governmental and financial capitals of the nation.
N 1
The increases in flying operations and flight
equipment maintenance costs reflect the 7.55%
increase in revenue plane miles, coming almost
entirely from expanded DC-7 service.
Depreciation of owned flight equipment was
$6,495,000, $369,000 greater than the $6,126,000
accrued for the preceding year, but charges to
non-depreciation accounts (from aircraft inter
change and rental agreements) increased
$1,047,000 and resulted in lowered net depre
ciation expenses of $5,327,000.
The inauguration of service to five new cities
New York, Philadelphia, Baltimore, Washing
ton, D. C., and Charlotte -- and higher cost
levels were the major factors in the ground and
indirect cost increases. Advertising and pub
licity expenditures of $1,955,000 were 22.80%
above the 1955 fiscal year, constituting the
largest percentage increase and reflecting the
additional efforts needed to popularize our
services and obtain identification in the new
Earnings -- Operating revenues exceeded oper
ating expenses by $7,951,000. Net non-operat
ing charges were $513,000, down $863,000 from
the 1955 fiscal year primarily because of the
elimination of debenture interest through the
retirement of all 5%% Convertible Debentures
(Subordinated) during the year. Taxes on in
come chargeable against the year's operations
were $4,069,000, leaving net earnings of
$3,369,000 representing 5.060 for each dollar of
gross revenues. Earnings per share of common
V-7
(III
If
stock were $4.22 on each of the 797,935 shares
outstanding immediately prior to the 25% stock
dividend paid on June 29, 1956 and $3.38 on the
996,219 shares outstanding at June 30, 1956.
It was deemed impractical to reestablish op
erations with the three Lockheed Model 649
aircraft acquired in the Chicago and Southern
Air Lines merger and leased to Pacific Northern
Airlines, Inc. in April, 1955. Accordingly, those
aircraft and leased major spares were sold to
the lessee. This sale produced a net profit of
$1,309,000 (equivalent to $1.64 and $1.31, re
spectively, on the shares of common stock out
standing immediately preceding and following
payment of the stock dividend) after taxes and
reserves.
Dividends -- Four quarterly dividends of 300
a share were declared and paid during the year,
aggregating $922,990, on the dates shown be
low:
Declaration
Date
July 28, 1955
Oct. 19, 1955
Jan. 27, 1956
April 27, 1956
Record
Date
Aug. 17, 1955
Nov. 16, 1955
Feb. 10, 1956
May 8, 1956
Payment
Date
Sept. 5, 1955
Dec. 5, 1955
March 5, 1956
June 4, 1956
The payment on June 4, 1956 marked the
22nd consecutive quarterly dividend and the
35th cash dividend, continuing one of the most
consistent dividend records in the industry.
Details of the June 29, 1956 stock dividend
are set forth on page 6 of this Report.
1956 REVENUE DOLLAR
Services Rendered
The year was characterized by increased serv
ice to the users of air transportation -- in qual
ity, in volume, in diversity and in geographical
scope.
New Route -- Of major importance was the
inauguration of service on February 1, 1956 to
New York and Washington with three four-
engined round trips a day from the South and
Southwest, pursuant to a route award finalized
on January 19, 1956. Three more daily round
trip flights were inaugurated on April 1, 1956,
providing service to the additionally certificated
cities of Charlotte, Baltimore and Philadelphia.
Service to this area has since been expanded to
a total of nine round trips a day providing over
400 million annual seat miles including both
Golden Crown DC-7 and Convair first-class
service and economical night coach and four-
engined day coach flights.
Golden Crown DC-7s -- Delivery of our elev
enth Golden Crown DC-7 was made in De
cember, 1955. DC-7 aircraft are the fastest, most
luxurious aircraft operated commercially any
where in the world today. During the year
these 365-mile-per-hour aircraft powered by tur
bo-compound engines developing 13,000 horse
power produced 35.55% of our total available
seat miles, the highest percentage of DC-7 serv
ice operated by any airline.
Air Coach -- Reduced-fare air coach opera
tions were greatly expanded during the year,
with the 510 million available seat miles of air
coach service representing 29.57% of total seat
miles and a 50.69% increase over the preceding
year. The results of our efforts to extend this
economical form of air travel to the maximum
degree practicable are demonstrated by the fol
lowing comparison of available seat miles by
types of service for the past two fiscal years:
Seat Miles
(Millions)
Fiscal Years
Ended June 30
Per Cent
Type of Service 1956 1955 Increase
First-Class . . . 1,216 1,179 3.14%
Night Coach . 293 260 12.69%
Day Coach . . . 218 79 175.95%
88.660
2.130
1L
4.420
4.790
TOTAL DOLLAR REVENUE
$69,333,707
SOURCES
DISTRIBUTION
8.380
FOOD AND SUPPLIES FOR
PASSENGERS $1,815,350
OTHER OPERATING
COSTS $7,453,026
10.750
CAPITAL COSTS (INTEREST
& DIVIDENDS) $2,049,832
2.960
8.950
RETAINED FOR USE IN
BUSINESS $3,156,526
4.550
3
Interchanges -- A substantial number of pas
sengers continued to receive the benefits of
through-plane service under equipment inter
change agreements in which we are a major
participant. Interchange operations are con
ducted in conjunction with American Airlines,
National Airlines, and Trans World Airlines
that provide through-plane service between:
1) Miami, Florida and California
2) Atlanta, Georgia and California
3) Houston, Texas and New York City
4) Detroit and the Southeast
International Division -- The world's first in
tercontinental DC-7 service on your Company's
international route from New Orleans, Louisi
ana to Caracas, Venezuela via Havana, Cuba
and Montego Bay, Jamaica, coupled with the
curtailment and rearrangement of Super Con-
vair service between New Orleans and Sact Juan,
Puerto Rico, effected a material improvement in
the operations of the International Division.
Operating revenues increased 13.16%, to
$4,795,000, and operating expenses of $4,798,000
were 5.07% below the preceding year, resulting
in an operating loss of $3,000 as compared to a
loss of $817,000 in the 1955 fiscal year. Notwith
standing these losses, this Division is operated
without governmental subsidy support, pur
suant to the off-set principle under which do
mestic earnings are diverted to support former
ly subsidized international operations. Compen
sation of $70,000 (1.45% of the Division's op
erating revenues) was received for carrying the
mails of both the United States and foreign
governments on our international routes under
compensatory rates averaging 70.750 a mail ton
mile.
Equipment and
Facilities
Flight Equipment Purchases -- In addition
to the eleventh Douglas DC-7 received in De
cember, 1955, four Constellation aircraft and
related spares were purchased from Pan Ameri
can World Airways on February 1, 1956. Pan
American was unable to relinquish possession
of this equipment until summer, and gross
rentals of $577,000 were collected for its con
tinued use during the remainder of the fiscal
year. Depreciation and miscellaneous costs of
$493,000 were charged against gross rentals.
These aircraft, in 72-seat coach configuration,
are now in operation over the route to the
Northeast.
Equipment Owned and on Order--The flight
equipment owned on June 30, 1956 and on
order is shown in the following tabulation:
Douglas DC-3 14 25
Douglas DC-3 2 Cargo
Convair 340 20 44
Douglas DC-6 7 70/76
Douglas DC-7 11 69
Lockheed L-049 4 72
Convair 440 8 44
Douglas DC-7B 10 69/96
Douglas DC-8 (Jet) 8 118/144
Convair 880 (Jet) 10 80
The CONVAIR MODEL 440 METROPOL
ITAN is a quieter, faster version of the Con-
vair Model 340. The eight Model 440s on order
are scheduled for delivery in the latter part of
1956 and early 1957.
The ten DOUGLAS DC-7Bs on order are
basically the same as the eleven Golden Crown
DC-7s presently operated, with certain minor
engineering differences. These aircraft will be
delivered in the last half of 1957, and six of
the ten will be received with 96 seats installed
for coach service.
Statue to the nation's first president in Baltimore, an
important intermediate city on Delta's new route.
Independence Hall, Philadelphia, which Delta
now links directly with the South and Southwest.
Orders for pure-jet DOUGLAS DC-8 aircraft
were placed only after a thorough study of both
our need for turbine-powered aircraft in the
1959-1960 period and the aircraft being offered
to fill that need. The DOUGLAS DC-8 will rep
resent a tremendous advance in air transporta
tion, with its cruising speed of 575 miles an
hour and passenger capacity of 118 in first class
service or 144 in coach service. The sample
DOUGLAS DC-8 schedules shown below illus
trate the extent to which distances will in the
future be measured by units of time rather than
by miles:
Chicago-Miami 2 Hours 25 minutes
New Orleans-Chicago ... 1 Hour 54 minutes
Atlanta-Dallas 1 Hour 37 minutes
Houston-Washington ... 2 Hours 40 minutes
Atlanta-New York .... 1 Hour 41 minutes
The DOUGLAS DC-8 is programmed for
certification in October, 1959. It is expected
that your Company will have six aircraft in
operation at that time, providing the first pure-
jet service in many major travel markets.
The 80-passenger pure-jet CONVAIR MOD
EL 880 is engineered specifically for operations
over intermediate flight distances and in and
out of average-sized airports, a type of service
for which the larger jet aircraft such as the
DOUGLAS DC-8 are not well suited. The CON
VAIR MODEL 880, with a top speed of 607
miles an hour, will have performance charac
teristics far superior to any other aircraft in
accomplishing the services for which it is de
signed. Its certification is expected in mid-1960,
and we will be among those airlines receiving
the earliest deliveries.
Flight Equipment Modifications -- Modifica
tions to aircraft in service are constantly in
process, taking advantage of the latest techno
logical developments to provide superior per
formance and passenger comfort. The largest
current project involves the installation of
weather avoidance radar, to permit the identi
fication and circumnavigation of turbulent air,
at a cost of $1,065,000. In addition, recently-
developed propeller synchrophasers are being in
stalled on DC-7 aircraft, to control the position
of the propeller blades in relation to each other
and to the passenger cabin for improved sound
and vibration characteristics. A substantial
modification program is planned for the 20 Su
per Convair Model 340 aircraft, incorporating
certain of the Model 440 design changes which
make that airplane quieter and faster.
Ground Facilities -- Inauguration of service
to New York City, Philadelphia, Baltimore,
Washington and Charlotte necessitated the pro
vision and acquisition of ground facilities and
equipment for the airport operations and sales
activities at those cities. During the year 42,000
square feet of maintenance space were added to
5
Jefferson Memorial in Washington, now receiving
Delta service to the North, South, and Southwest.
our Atlanta base, to accommodate the higher
level of maintenance activity. A second airport
to serve the Chicago area --O'Hare Airport --
was activated in late 1955, with the attendant
requirement for operational facilities. These
major undertakings, coupled with the normal
requirements for tooling, equipment, and ex
panded facilities commensurate with the in
creased volume of operations, required total
expenditures of $1,240,000.
In the immediate future, new maintenance
facilities on land occupied under long-term
leases are programmed for Dallas, Miami, and
New York, to be built largely with funds sup
plied by the lessors. Studies are underway to de
termine the type and location of facilities that
will best serve our needs for jet operations.
^ Capital Structure
Debenture Redemptions -- At the beginning
of the year there were outstanding $5,867,000
principal amount of 5V2% Convertible Deben
tures (Subordinated) issued in connection with
the Chicago and Southern Air Lines merger on
May 1, 1953 (after giving effect to the retire
ment of $2,500,000 of Debentures called in June,
1955 for redemption in July, 1955). Through
calls as of September 9, 1955 and October 27,
1955 this outstanding amount was retired,
with $1,111,000 being redeemed for cash and
$4,756,000 being converted into common stock
at the established conversion price of $35
a share. During the fiscal years that ended
June 30, 1955 and 1956 the entire $10,900,000 of
these debentures were retired, through cash re
demptions of $3,969,000 and conversions into
197,935 shares of common stock.
Common Stock -- A pro rata distribution
of additional common stock was accomplished
on June 29, 1956 by the payment of a 25% stock
dividend to stockholders of record June 8, 1956,
increasing the 797,935 shares then outstanding
to 996,219 at the end of the year. The equiva
lent book value of each share of common stock
outstanding at year-end increased $4.48 during
the year, to $28.47 at June 30, 1956, and total
stockholder equity increased $8,512,000 to
$28,358,000. Since the close of the fiscal year,
125,000 shares of common stock were sold
through a public offering on July 17, 1956 at a
sales price of $37 a share. The proceeds of
$4,343,750 from this sale provide a broadened
equity base for the aircraft acquisitions and en
larged operations in the ensuing years.
Credit Agreement -- On March 15, 1956, the
Company entered into a credit agreement (su
perseding the September 2, 1952 agreement)
with a group of twenty-five banks under which
maximum outstanding loans of $30,000,000
are permitted on unsecured notes maturing
December 30, 1960. These "1960 notes" bear in
terest at a variable rate per annum which is
based on the prime rate of interest in New York
City, but not less than 314% nor more than
4%. On December 30, 1960, the aggregate out
standing balances on all "1960 notes" will be
consolidated into one note payable in twenty
installments beginning on March 31, 1961 and
I
6
bearing interest at a rate per annum to be
similarly determined and restricted to a mini
mum of 3*4% and a maximum of 4%. As of
June 30, 1956, $11,400,000 was outstanding.
The Credit Agreement provides (among
other things) that Unappropriated Earned Sur
plus shall not be reduced below $9,401,549 by
the payment of cash dividends and that current
assets shall be maintained at least equal to cur
rent liabilities.
Personnel
There were 5,294 employees at June 30, 1956,
an increase of 747 during the year, exemplify
ing the broadened employment and promo
tional opportunities created by the certification
into new markets and expansion of operations.
Intensified training programs for both technical
and non-technical employees played a major
role in the rapid assimilation of new employees
and the advancement of other employees.
At the end of the year 1,181 employees had
completed more than ten years of service, and
2,329 had completed more than five years of
service. The presence of experienced, loyal em
ployees is a major asset in the balance sheet of
intangibles that determines a corporation's char
acter and vigor, and your Company considers
itself fortunate in having an excellent corps of
senior employees.
A general wage and salary increase in No
vember, 1955 maintained employee earnings at
a level compatible with the industry average.
Also, a variable annuity retirement plan was
made available to pilots and intermediate super
visory employees. This variable annuity plan,
which requires contributions of participants, is
in addition to the fixed benefit plan begun in
1942 and provides retirement benefits in vari
able amounts based upon the changing values
of fund assets.
Payments to or for the direct benefit of em
ployees during the year reached the record
amount of $26,661,000, a $2,900,000 increase
over the 1955 fiscal year.
^ Regulatory Matters
New Route Extensions and Implementations
-- On January 20, 1956 the Civil Aeronautics
Board confirmed its opinion in the Additional
Southwest-Northeast Service Case awarding your
Company extensions of Route 24 from Atlanta
to New York/Newark via Charlotte, Washing
ton, Baltimore, and Philadelphia and from New
Orleans to Houston. These extensions carried
with them certain restrictions which prevent
non-stop and turn-around services between some
pairs of points. Although only a portion of the
requested authority was granted, and a third
carrier was certificated into several major mar
kets which previously received effective service
from a single carrier, this entry into the popu
lous Northeast strengthens our route system.
In 1955 hearings were concluded in the New
York-Florida Case, in which we sought author
ity to operate between New York City and
Miami, Florida, both non-stop and via various
The magnificent Golden Crown DC-7's, world's fastest planes, are the luxury airliners of Delta's fleet.
30
WEATHER AVOIDANCE RADAR
for the Delta fleet
if
Identified by a black plastic nose on the airplane, which houses the scanning
mechanism, weather avoidance radar presents the pilot with a moving map show
ing cloud formations (light) and turbulent areas (dark cores) to be avoided.
intermediate cities. Needing only 89 new route
miles and already serving most of the cities in
volved made us, in our opinion, the logical
choice to provide the needed additional service
-- and the Hearing Examiner so recommended
in his Initial Decision issued April 3, 1956.
However, the Civil Aeronautics Board an
nounced in a press release of August 10, 1956
that it was not accepting the Examiner's recom
mendation and that Delta was to be granted
new authority to serve Tampa only, on a re
strictive basis. We intend to request reconsid
eration of this decision at the appropriate time.
In early 1956, the Civil Aeronautics Board in
stituted a proceeding to determine whether the
Cincinnati - Dayton - Columbus -Toledo-Detroit
segment of TWA's Route 2 should be trans
ferred to an appropriate carrier (and, if so, to
which carrier), following TWA's stated willing
ness to effect such a transfer. In August, 1956
the Examiner recommended that this route be
transferred to Delta. A final decision in this case
may be reasonably expected before the end of
1956.
Several new route cases of major importance
confront your Company, the more immediate
of which are:
1. The St. Louis to the Southeast Case, in
which your Company has filed an applica
tion to enable us to operate between St.
Louis and the Southeast and between
Kansas City and the Southeast, via inter
mediate cities.
2. The Puerto Rico Service Case, wherein we
seek an extension of Route 54 from Miami
to San Juan which would enable us to
provide new or additional services between
San Juan and such interior points now
served as Atlanta, Cincinnati and Chicago.
3. The Great Lakes-Southeast Case, involv
ing applications designed to improve and
increase our operating authority between
Chicago and Miami. We also propose to
extend Route 54 from Cincinnati to De
troit via such important cities as Pitts
burgh, Cleveland, Dayton, Columbus,
Ohio and Toledo.
Several other carriers have applications
which will be heard in this case propos
ing to duplicate our basic Chicago-Miami
route. We will defend our record of service
over this route and will endeavor to main
tain our position that the volume of avail
able traffic in these markets and quality
of service now rendered does not justify
or necessitate additional competing routes.
General Passenger Fare Investigation -- In
May, 1956 the Civil Aeronautics Board initiated
an investigation to determine if the passenger
fares of the domestic airlines (excluding local
service carriers) "are generally unjust or unrea
sonable'' and "if found to be unjust or unrea
sonable, to determine what overall percentage
8
changes in the fares . . . should be permitted or
required". Your Company takes the position
(which will be presented to the Civil Aeronau
tics Board in the formal hearing) that airline
earnings have not in the past exceeded reason
able levels and that projections of earnings and
capital requirements for future periods show
that earnings in those future periods will not
exceed reasonable levels with prevailing fare
structures. It is expected that the determination
of the issues raised in this proceeding cannot be
finally concluded before mid-1957 at the earliest.
Mail Rate Off-Set Issue -- By a decision dated
February 1, 1954, the Supreme Court of the
United States sustained an objection of the
Postmaster General to an October, 1951 inter
national mail rate order issued by the Civil
Aeronautics Board in favor of Chicago and
Southern Air Lines, Inc., (which was merged
with and into Delta on May 1, 1953). That de
cision requires the Civil Aeronautics Board to
review its original order and to redetermine the
mail pay requirements of the C&S international
operations during the periods involved in ac
cordance with the principles established by the
Court's decision. Following hearings held be
fore an Examiner of the Civil Aeronautics Board
in September, 1955, the Examiner issued an Ini
tial Decision on December 16, 1955, in which he
recommended the refund of $391,000, plus any
income tax benefit accruing therefrom, as rep
resenting allegedly excess mail revenue received
by C&S during the period January 1, 1948 to
September 30, 1951. All parties to the CAB pro
ceeding filed exceptions to this Initial Decision
and the case has been submitted to the Board
for its final action. The manner in which the
CAB will resolve the various issues involved
cannot now be predicted.
The Years Ahead
lire airline industry has become an integral
and essential part of the Nation's economy and
national defense. The usage of air transporta
tion in 1955 was 18% above the preceding year,
and the airlines carried 32% of the total inter
city common carrier passenger miles. A dou
bling of the present volume in the next ten years
is predicted. 1 he orders placed by your Com
pany for new flight equipment, including the
world's finest jet aircraft, will enable it to prop
erly discharge its service responsibilities and to
maintain its competitive position in the industry.
As regards jet aircraft, they will usher in a
new era of air transportation that will have
great public appeal. And as each advance in
aviation has brought new problems, so will the
jet era. We are confident, however, that most
of these problems will be overcome well in ad
vance of the time when jets are placed into com
mercial operation.
President and General Manager
September 14, 1956
PERSONNEL
by Length of Service
AS OF JUNE 30
1956 1955 1954
OVER 20 YEARS 50 37 17
TOTAL 5294 4547 4257
9
DETROIT
CLEVELAND
TOLEDO,
PITTSBURGH
CHICAGO NEW YORK
^NEWARK
FT. WAYNE.
DAYTON'
PHILADELPHIA
COLUMBUS
INDIAN
APOLIS
CINCINNATI
The large map at the right shows all of the routes, both local and
non-stop, now being flown by Delta. Dotted lines indicate how
new routes applied for will bridge gaps in the basic network.
BALTIMORE
ST. LOUIS,
KANSAS CITY
EVANSVILLE WASHINGTON
LOUIS
iVILLE
LEXINGTON
NEW YORK
ONEWARK
PADUCAH
CHICAGO SPRINGFIELD
flL WINSTON-SALEM
jf j^GREENSBORO
IJIGH POIN I
CHARLOTTE
CINCINNATI
ASHEVILLE%
HENDERSONVILLE
NASHVILLE
LOUIS KNOXVILLE.
MEMPHIS
O WASHINGTON
A dozen domestic cities, plus three more
overseas, are now linked in 22 different
combinations by non-stop DC-7 service.
Delta DC-7's continue to the West Coast
in interchange services.
SPARTANBURQI
^[COLUMBIA
GREEN-
'VILLE
HOT SPRINGS LITTLE
ROCK
CHATTANOOGA
SAN FRANCISCO
OAKLAND
CHARLESTON
'ATLANTA
.TLANT:
# AUGUSTA#
GREENWOODi
DALLAS [BIRMINGHAM.
BIRMINGHA
TO THE WEST COAST
LOS \
ANGELES
COLUMBUS
MERIDIAN .SAVANNAH
FORT
WORTH
MACON
MONTGOMERY
JACKSON SELMA
IKS0NV1LLE MONROE
BRUNSWICK
NEW ORLEANS DALLAS [SHREVEPORT
ALEX A N DR I A
| S A N v
: DIEGO
HOUSTON
PHOENIX
HATTIESBURG
TUCSON FORT
WORTH
Present Delta routes
Interchange (through plane)
routes with other airlines.
Proposed Delta routes
applied for
BATON |
ft ROUGE
JACKSONVILLE
EL PASO NEW ORLEANS
TO CARIBBEAN POINTS
[BEAUMONT
PORT ARTHUR
ORLANDO A*
HOUSTON
NEW YORK
QNEWARK
DETROIT
CHICAGO TAMPA
ST. PETERSBURG
PALM BEAC
DELPHI A
CINCINNATI
MIAMI
INDIAN
A POL IS
The benefits of economical day or night ST L0UIS(
aircoach service are now available
over most of Delta's domestic system.
MEMPHIS
INGTON
.HAVANA
o CHARLOTTE
STLAN
BIRMINGH
DALLAS
SHREVEPORT
TO THE WEST COAST
JACKSON
FORT
WORTH
CIUDAD
TRUJILLO
HOUSTON PORT AU
PRINCE
MONTEGO BAY
CARACAS
DELTA AIR LINES, INC.
ATLANTA, GEORGIA
BALANCE SHEETS
CURRENT ASSETS:
Cash
U. S. Government securities, at cost, which approximates
market
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
PROPERTY AND EQUIPMENT (Including $13,335,448 and
$3,912,188 fully depreciated in 1956 and 1955, respectively):
assets
1 956
$ 5,551,039
2,993,912
4,448,932
1,114,370
708,643
323,923
$15,140,819
$ 4,008,341
146,145
170,991
$ 4,325,477
1 955
$ 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
Flight
Equipment
Other
Property and
Equipment
Cost--
1956 . . . . . . $51,901,684 $7,476,359 $59,378,043
1955 . . . . . . 48,409,359 6,238,399 $54,647,758
Reserves for depreciation-
1956 20,933,050 3,595,812 24,528,862
1955 . . . . . . 17,848,912 3,158,139 21,007,051
$34,849,181 $33,640,707
DEFERRED CHARGES, ETC.:
Property acquisition adjustment (Note 5) . . . . . . $ 35,848 $ 734,391
Unamortized DC-7 preinaugural expense .... . . . 50,759 111,546 ,111
Other deferred charges . . . 236,304 402,356 iff
$ 322,911 $ 1,248,293 ill
$54,638,388 $54,049,882
m
The accompanying notes are an
liabilities
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 . . .
NOTES PAYABLE TO BANKS:
Notes payable bearing interest at not less than 3i4% nor
more than 4%, due in installments from 1961 through
1965 (Note 2)
3I/2
% notes payable (less current maturities above) . . .
51/2% CONVERTIBLE DEBENTURES (SUBORDINATED)
(Note 3)
RESERVES AND DEFERRED CREDITS:
Deferred Federal income taxes
Reserve for contingencies (Note 4)
Other
CAPITAL STOCK AND SURPLUS:
Common stock, par value $3.00 per share,
Authorized 1,500,000 shares
Issued and outstanding 996,219 shares at
June 30, 1956 and 661,913 shares at
June 30, 1955 (Note 2)
Capital surplus
Earned surplus (of which $9,401,549 is not available for cash
dividends under terms of credit agreement)
PURCHASE COMMITMENTS (Note 2)
JUNE 30
1956
4,806,546
2,366,453
3,691,616
790,075
$11,654,690
$11,400,000
$ 2,434,000
500,000
291,834
$ 3,225,834
$ 2,988,657
12,006,175
13,363,032
$28,357,864
$54,638,388
integral part of these statements.
1956 AND 1955
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
500,340
$ 1,825,340
$ 1,985,739
7,653,652
10,206,507
$19,845,898
$54,049,882
12 13
statements of income statements of surplus
FOR THE YEARS ENDED
JUNE 30, 1956 AND 1955
FOR THE YEAR
ENDED JUNE 30, 1956
OPERATING REVENUES:
Passenger
U. S. Mail
Freight
Express
Excess baggage
Other operating revenue -- net . .
Total operating revenues
OPERATING EXPENSES:
Flying operations . . .
Depreciation -- flight equipment owned ....
Less -- Net depreciation credits arising from equ
terchange and lease agreements
Total direct aircraft operating expenses
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 $ 574,333
Interest on debentures (reflecting in 1956 adjustments of prior
year's interest) (45,941)
Amortization of property acquisition adjustment (Note 5) . 19,560
Net (profit) or loss of dusting division 3,106
Other -- net (38,075)
Total other expense $ 512,983
Income before income taxes $ 7,438,196
PROVISION FOR TAXES ON INCOME:
Federal and state taxes on income, including deferred taxes of
$1,109,000 in 1956 and $990,000 in 1955 4,069,000
Net income $ 3,369,196
SPECIAL ITEM -- Profit on disposition of flight equipment
(less $1,425,000 applicable income taxes and reserve provision
in 1956 and $103,000 applicable income taxes in 1955) . . . 1,308,770
Net income and special item $ 4,677,966
1956 1955
. . $60,557,924 $53,966,525
. . 1,468,247 1,462,684
. . 2,020,061 1,844,168
. . 1,045,567 917,609
. . 913,440 765,580
. . 594,698 231,395
. . $66,599,937 $59,187,961
. . $17,357,616 $15,655,414
. . 8,016,209 7,280,827
. . 6,495,172 6,126,616
in-
. . (1,168,669) (121,711)
. . $30,700,328 $28,941,146
. . 7,731,184 6,865,012
. . 4,216,962 3,718,398
. . 3,949,874 3,573,237
. . 6,302,954 5,500,221
. . 1,955,326 1,592,243
. . 3,305,476 2,861,699
. . 486,654 440,076
. . $58,648,758 $53,492,032
. . $ 7,951,179 $ 5,695,929
563,444
547,140
199,290
(4,269)
71,149
1,376,754
4,319,175
2,412,000
1,907,175
258,850
2,166,025
V
Earned
Surplus
Capital
Surplus
Balance at beginning of year $10,206,507 $ 7,653,652
Add:
Net income 3,369,196 --
Special item -- Profit on disposition of flight equipment (less
$1,425,000 applicable income taxes and reserve provision) 1,308,770 -
Excess of conversion price over par value of common stock
issued on conversion of Debentures 4,352,523
$14,884,473 $12,006,175
Deduct:
Cash dividends on common stock 922,990 --
Transfer to common stock in connection with stock split ef
fected in the form of a 25% stock dividend 598,451
Balance at end of year ($9,401,549 of earned surplus is restricted
as indicated on balance sheet) $13,363,032 $12,006,175
AUDITOR'S CERTIFICATE
I
ARTHUR ANDERSEN 8C CO
ACCOUNTANTS AND AUDITORS
Board of directors,
-Oelta Air Lines, Inc. : THE
WILLIAM-OLIVER BUILDING
TTT -i ATLANTA Q
Io?Litna corporatiorO as^? ^ of Delta Air lines, Inc. ,a
ments of income and surging 50 * 19B^ and the related state-
was made in accordance with generallv^ the+ 5nded* 0ur examination
sunBaC?rdingly included such tests^f fhGPted audftinS standards,
Srcumstlnces?'1^ P^d-s
income and surplus presenTfairl^thV'f?06 sBeat and statements of
5TM**. Inc* as of June 30, 1956 ^nc^thevf10}?1 Psition of Delta Air
for the year then ended, and were reuarprf fUlt%f its operations
ly accepted accounting princiulp? ^ C0n/0rmity with general-
that of the preceding fear P applled on a basis consistent with
Atlanta, Georgia,
August 24, 1956.
ARTHUR ANDERSEN & CO.
14
The accompanying notes are an [
integral part of these statements.
notes to financial statements
1. DEPRECIATION RATES:
The Company's 11 DC-7s and 20 Model 340 Convairs are being depreciated for book pur
poses to residual values (10% of cost of DC-7s 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; 7 DC-7s
in 1954, 3 in 1955 and 1 in 1956). 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 ac
celerated depreciation permitted by the Internal Revenue Code of 1954.
The 4 Model 049 Constellations, three of which at June 30, 1956, were being released
to another airline, are being depreciated to a residual value of 10% of cost over a period
of three years to February, 1959. The 7 DC-6s and 16 DC-3s have been fully depreciated
to a residual value of 10% of cost.
2. PURCHASE COMMITMENTS AND ADDITIONAL. FINANCING:
The Company has outstanding commitments for the purchase of aircraft and related spare
parts and accessories aggregating approximately $110,000,000 as follows:
Number and
Type of Aircraft
8 Convair Model 440 . .
10 Douglas DC-7 ....
8 Douglas DC-8 (jet) . .
10 Convair Model 880 (jet)
Approximate
Cost
$ 6,500,000
21,500,000
44,000,000
38,000,000
$110,000,000
Date of
Delivery
1956 and 1957
1957 and 1958
1959 and 1960
1959 and 1960
On March 15, 1956, Delta entered into a credit agreement with a group of twenty-
five banks under which the borrowing of $30,000,000 is permitted on unsecured notes ma
turing December 30, 1960. As of December 30, 1960, the aggregate outstanding balances
on all "1960 Notes" due each bank will be consolidated into one note repayable to such
bank in 20 quarterly installments beginning on March 31, 1961. These notes bear interest
at not less than 314% nor more than 4% per annum.
In July, 1956, the Company sold to the public 125,000 additional shares of common
stock, receiving net proceeds of $4,343,750.
3. REDEMPTION OF DEBENTURES:
During 1956 the Company called for redemption the last of its 514% Convertible
Debentures (Subordinated). Of the $5,867,200 outstanding at June 30, 1955, $4,756,000 were
converted into common stock at $35.00 a share and $1,111,200 were redeemed for cash.
4. CONTINGENT LIABILITIES:
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 contended that the entire operations of a carrier with both domes
tic 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 pro
vided 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 re
quirements 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.
The Company has provided a $500,000 reserve in connection with the foregoing con
tingent liability and with proposed deficiencies in income taxes of C&S prior to its merger
into Delta.
5. PROPERTY ACQUISITION ADJUSTMENT:
The original amount of $2,753,381, representing 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, has been reduced principally by
credits from sales of the related flight equipment. During the year ended June 30, 1956,
the last of the flight equipment acquired in the merger was disposed of and the balance
at June 30, 1956, represents intangible costs being amortized to April, 1958.
16
MILLIONS
110 1,100
Delta Air Lines, Inc.
FOR YEARS ENDING JUNE 30
106
102
98
94
90
86
82
78
74
70
66
62
58
54
50
46
42
38
34
JUL AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY JUN
REVENUE PASSENGER MILES
mm
DEPRE-I
CIATION '

B
| DEPRE
SS CIATION
NET
BOOK
VALUE
OEPRE-
BIB CIATION
--w
I
NET
BOOK
VALUE
Ilili
NET
BOOK
VALUE
1954 1955 1956
FLIGHT EQUIPMENT!
900
800
700
600
500
400
300
200
100
'48 '49 '50 '51 '52 '53 '54 '55
REVENUE PASSENGER MILES
MILLIONS
56
DOLLARS PER SHARE
TON MILES AND PLANE MILES NET BOOK VALUE PER SHARE
OF COMMON STOCK*
'ADJUSTED TO REFLECT 25% STOCK DIVIDEND PAID JUNE 29, 1956
-j- AS OF JUNE 30
17
CONVAIR 340
CONVAIR 880
CONVAIR 44
A DECADE Total assets
1956
$54,638,388
1955
$54,049,882
1954
$48,089,997
19 5 3
$37,966,469
OF GROWTH
Current assets 15,140,819 18,762,696 15,888,546 14,706,498
Current liabilities 11,654,690 12,686,444 8,861,111 9,192,041
Net working capital . . .
Stockholder equity
3,486,129
28,357,864
6,076,252
19,845,898
7,027,435
16,233,227
5,514,457
15,647,278
Stockholder equity per share* . . . 28.47 23.99 21.64 20.86
Shares of common stock outstanding* 996,219 827,391 750,000 750,000
Operating revenues
Passenger $60,557,924 $53,966,525 $45,144,949 $28,946,479
Mail 1,468,247 1,462,684 1,723,703 1,131,578
Express 1,045,567 917,609 844,483 550,305
Freight 2,020,061 1,844,168 1,766,266 1,044,338
All other 1,508,138 996,975 854,481 665,102
Total revenues 66,599,937 59,187,961 50,333,882 32,337,802
Operating expenses (excluding
depreciation) 52,835,601 47,047,051 43,021,159 26,641,944
Depreciation 5,813,157 6,444,981 5,275,152 2,259,784
Total expenses 58,648,758 53,492,032 48,296,311 28,901,728
Operating ratio 88.06% 90.38% 95.95% 89.37%
Net non-operating revenue or (expense) (512,983) (1,376,754) (1,359,987) (1,345,957)
Net income before taxes 7,438,196 4,319,175 677,584 2,090,117
Taxes on income 4,069,000 2,412,000 394,000 688,000
Net income 3,369,196 1,907,175 283,584 1,402,117
Net income as % of
revenues 5.06% 3-22% 56% 4.34%
Special item -- profits from major flight
equipment sales (after taxes) . . . 1,308,770 258,850 1,022,365 2,756,561
Total income and special item . . . 4,677,966 2,166,025 1,305,949 4,158,678
Per share of stock outstanding* . . 4.70 2.62 1.74 5.54
Revenue plane miles (000) 33,962 31,579 31,916 20,672
Available seat miles (000) 1,726,941 1,517,891 1,344,069 776,157
Passenger load factor 62.55% 62.75% 57.26% 65.41%
Available ton miles (000) 207,416 182,997 162,345 94,045
Revenue ton miles (000) 118,544 104,927 87,251 57,565
Overall load factor 57.15% 57.34% 53.74% 61.21%
Percent of scheduled miles flown . . . 98.39% 98.79% 98.29% 98.83%
1952 195 1 1 950 1 949 1948 1947
$16,836,905
7,186,793
6,618,627
$14,402,050
6,093,494
4,541,282
$12,371,851
4,262,201
2,950,443
$12,629,268
4,379,289
2,751,859
$ 9,352,827
4,156,500
2,180,988
$ 9,306,766
5,040,527
2,253,963
568,166 1,552,212 1,311,758 1,627,430 1,975,512 2,786,564
9,808,493
15.69
625,000
8,658,043
13.85
625,000
7,401,245
11.84
625,000
6,710,494
10.74
625,000
6,196,053
9.91
625,000
5,789,701
9.26
625,000
$23,995,938
1,035,599
431,240
827,927
727,417
$19,006,936
1,306,752
374,480
720,719
812,112
$13,761,453
2,373,213
238,441
478,537
333,651
$11,987,246
2,434,888
244,859
358,503
202,349
$10,079,272
2,010,668
273,099
303,115
152,815
$10,558,559
423,292
242,978
109,603
154,404
27,018,121 22,220,999 17,185,295 15,227,845 12,818,969 11,488,836
21,155,513
1,485,556
17,499,480
1,389,721
14,568,386
1,206,755
13,096,091
1,185,865
11,605,990
1,012,954
10,837,709
944,659
22,641,069
83.80%
18,889,201
85.01%
15,775,141
91.79%
14,281,956
93.79%
12,618,944
98.44%
11,782,368
102.55%
12,398
4,389,450
2,739,000
(75,000)
3,256,798
1,625,000
(5,403)
1,404,751
589,000
(52,603)
893,286
336,000
(50,845)
149,180
56,343
(67,302)
(360,834)
127,459 -j-
1,650,450 1,631,798 815,751 557,286 92,837 (233,375)
6.11% 7.34% 4.75% 3.66% .72% --
-- -- --
82,154 111,893 -
1,650,450
2.64
1,631,798
2.61
815,751
1.31
639,440
1.02
204,730
.33
(233,375)
(.37)
17,531
653,121
65.46%
15,698
541,038
63.81%
13,804
437,209
54.51%
12,921
361,199
55.84%
12,803
349,235
53.92%
11,822
335,630
66.35%
80,089
48,093
60.05%
71,987
40,480
56.23%
59,532
27,259
45.79%
49,544
22,805
46.03%
46,562
19,966
42.88%
42,716
22,799
53.37%
98.98% 98.91% 97.90% 97.69% 94.22% 94.71%
-
18
* Adjusted to reflect 25% stock
dividend paid June 29, 1956. These data reflect operations of Delta Air Lines, Inc., and do not include the CirS system prior to May 1, 1953.
f Credit ) Loss
Delta ticket offices
TICKET OFFICE RESERVATIONS TELEPHONE TICKET OFFICE RESERVATIONS TELEPHONE
ALEXANDRIA Alexandria Air Base
ASHEVILLE Battery Park Hotel
ATLANTA Piedmont and Biltmore Hotels
AUGUSTA Richmond Hotel
BALTIMORE Lord Baltimore 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
CHARLOTTE Selwyn 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 212 S. Akard St. (Baker Hotel)
DETROIT 1235 Washington Blvd.
and General Motors Concourse
General Motors Bldg.
EVANSVILLE McCurdy Hotel
FORT WAYNE Baer Field Airport
FORT WORTH Hotel Texas
GREENVILLE Municipal Airport
GREENWOOD Municipal Airport
HATTIESBURG Municipal Airport
HAVANA, CUBA Prado 301
HENDERSONVILLE ASHEVILLE-
Hendersonville Airport
HOT SPRINGS Memorial Airport
HOUSTON Mellie-Esperson Bldg.
and Rice Hotel
INDIANAPOLIS Claypool Hotel
4471
7601
JAckson 4-3242
2-8811
SAratoga 7-2340
5-4491
5-7541
LYric 2-9601
BRunswick 107
55-8488
4-2567
EXpress 9-0481
2-8336
Financial 6-5300
DUnbar 1-3232
5350
4-3186
7-7458
Riverside 9401
WOodward 2-7190
HArrison 5-9023
H-3352
EDison 5-5425
2-8213
2218
JUniper 2-1643
M-8224
7211
NAtional 3-1671
CApitol 5-1361
MElrose 7-1554
JACKSON Heidelberg Hotel
JACKSONVILLE 226 West Forsyth St.
KANSAS CITY Muehlebach Hotel
KNOXVILLE Farragut Hotel
LEXINGTON Blue Grass Airport
LITTLE ROCK Marion Hotel
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
NEW YORK 30 Rockefeller Plaza
42nd St. & 10th Ave. (West Side Term.)
67 Broad Street
Statler Hotel, 7th Ave. & 33rd St.
80 E. 42nd Street (Airline Bldg.)
200 Livingston St., Brooklyn
35 Mamaroneck Ave., White Plains
NEWARK 13 Commerce Street
PADUCAH Barkley Field
PHILADELPHIA Bellevue-Stratford Hotel
PORT ARTHUR Jefferson County Airport
PORT-AU-PRINCE, Haiti c/o Nadal & Co.
SAN JUAN, Puerto Rico Caribe Hilton
SAVANNAH Manger Hotel
SELMA Selfieid Airport
SHREVEPORT Captain Shreve Hotel
SPARTANBURG Memorial Airport
SPRINGFIELD Municipal Airport
ST. LOUIS Statler Hotel
TOLEDO Commodore Perry Arcade
WASHINGTON 1519 K St. N.W. and
Willard Hotel
2-0861
Elgin 3-3171
GRand 1-7733
7-6611
4-5569
FRanklin 5-9111
3-6731
WHitehall 8-2641
2-3141
FRanklin 3-0441
FRanklin 3-0441
3-5116
2811
4-7313
TUlane 8592
^LOngacre 3-0700
Mitchell 2-2228
3-1732
SAratoga 7-9900
YUkon 2-4321
3313
9-0045
3- 0267
TRinity 4-7581
5-3232
7131
4- 7353
GArfield 1-5511
LU (Holland) 7-2366
District 7-9600
Representative Advertising of 1955-56
MIAMH for unsurpassed
and real lo*^
FLA.
BEACH "to
.tches todher
Save V3
OR MORE ON
stretch o*
volution
Golden Crown
WASHINGTON
HOUSTON
HEW OCEANS
If;7
OACH fUOHTSd !W
HEW 0RU*
Advertising reflects sales emphasis on new routes and serv
ices, with bold treatment on the more competitive route seg
ments and for impact on the fast growing coach market.
directors
R. W. COURTS
Atlanta, Ga.
C. H. DOLSON
Atlanta, Ga.
EDWARD H. GERRY
New York, N. Y.
JOHN R. LONGMIRE
St. Louis, Mo.
LAIGH C. PARKER
Vice President -- Traffic and Sales
C. H. DOLSON
Vice President -- Operations
CATHERINE FITZGERALD
Assistant Treasurer
R. W. FREEMAN, Chairman
New Orleans, La.
R. S. MAURER
Atlanta, Ga.
C. H. MCHENRY
Monroe, La.
WINSHIP NUNNALLY
Atlanta, Ga.
LAIGH C. PARKER
Atlanta, Ga.
CARLETON PUTNAM
Washington, D. C.
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
C. H. MCHENRY
Secretary-Treasurer
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 Affairs
W. T. BEEBE
Vice President -- Personnel
R. H. WHARTON, JR.
Asst. Vice President -- Personnel
Transfer Agent for Common Stock
The Citizens & Southern National Bank
Atlanta, Georgia
Registrar for Common Stock
Trust Company of Georgia
Atlanta, Georgia
Auditors -- Arthur Andersen dr Co. A nnual Meeting -- October 16,1956, Monroe, Louisiana