Northwest Airlines Annual Report 1946

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Foreword
HE following pages report fiscal and historic developmental progress of
your company during the past year. Also portrayed are some of the tasks which
lie ahead.
Few American companies during this critical era have greater responsibilities
than that of your company in its participation in the vital program of bringing the
world into closer federation. Just as Lord Tennyson foresaw the role of aviation
over a century ago in his immortal Locksley Hall1, your company is deeply conscious
that the course which it has charted and with which it is now entrusted is of great
importance.
The proper discharge of such responsibilities will require maximum utilization
of your company's organization and facilities. However, it is our conviction that
the continued dedication of your company's efforts to the highest standards of
public service should assure successful fulfillment of its destiny with consequent
sound benefit and distinction.
/I--
St. Paul, Minnesota
September 25, 1946
President and General Manager
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NORTHWEST AIRLINES, INC.
BOARD OF DIRECTORS
Philip D. Armour* President and Director, Jersey City Stock Yards Co.
Chicago, Ill.
Wm. Tudor Gardiner Chairman, Board of Directors, Incorporated Investors
Boston, Mass.
Robert M. Hardy President, Sunshine Mining Co., Yakima, Wash.
Croil Hunter President, Northwest Airlines, Inc.
Thomas E. Irvine President, FI Products Co., St. Paul, Minn.
Joseph T. Johnson President, The Milwaukee Co., Milwaukee, Wis.
Louis M. Leffingwell .
Vice-President, Archer-Daniels-Midland Co.
Minneapolis, Minn.
Alonzo Petteys Vice-President and Director, Farmers State Bank
Brush, Colorado
William Stern President, Dakota National Bank, Fargo, N. D.
Edwin White President, Kalman & Co., St. Paul, Minn.
E. Irving Whyatt Executive Vice-President, Northwest Airlines, Inc.
*Subject to approval by the Civil Aeronautics Board.
General Offices: 1885 University Avenue, St. Paul 4, Minnesota
The Chase National Bank of The City of New York, New York, N. Y.
Principal Registrar
Bankers Trust Company, New York, N. Y.
Principal Transfer Agent
City National Bank and Trust Company of Chicago, Chicago, Illinois
Co-Registrar
Continental Illinois National Bank and Trust Company of Chicago, Chicago, Illinois
Co-Transfer Agent
Annual meeting of shareholders last Monday in September
BOARD OF DIRECTORS
1
PRESIDENT & GENERAL MANAGER
Croil Hunter
SPECIAL ASSISTANT
William Stern
EXECUTIVE VICE PRESIDENT
E. I. Whyatt
VICE PRESIDENT
SECRETARY &
GENERAL COUNSEL
A. E. Floan
VICE PRESIDENT &
ASSISTANT TO THE PRESIDENT
Linus C. Glotzbach
VICE PRESIDENTS
W. Fiske Marshall
K. R. Ferguson
R. 0. Bullwinkel
TREASURER
L. S. Holstad
PERSONNEL DEPT. PUBLICITY DEPT. TREASURY DEPT. OPERATIONS DEPT. ENG. & PLANNING
DEPT.
TRAFFIC DEPT.
Linus C Glotzbach J. A. Ferris L. S. Holstad W. Fiske Marshall K. R. Ferguson R. 0. Bullwinkel
REGIONAL VICE PRES. REGIONAL VICE PRES. MANAGER
WESTERN REGION EASTERN REGION ORIENTAL REGION
F.C. Judd R. L. Smith D. J. King
orthwest Airlines has taken its place among world
leaders in commercial aviation. Its acquisition of routes
to Alaska and the Orient, adding more than 12,000 miles
to the system, is of major significance not only to this
company, but to the territories which it serves.
This development gives this airline its broadest scope
and greatest identity--what first was local, and then
transcontinental, has become an international network,
with all this implies in opportunity, responsibility and
prestige.
It will bring to the northern tier of states, to parts
of western Canada, to Alaska and the remote expanses
of the Pacific, an air service of modern planes and
speedy schedules.
It will fly the flag of this nation to foreign lands and
promote that most effective means of international co
nation--trade.
ore immediately, it will enable this airline to serve
as a vehicle for the rehabilitation of peoples who were
impoverished, and of lands that were devastated, by
war.
It writes a new chapter in the log of this company--
now completing its twentieth year--and in the annals
of modern aviation, which is not a great deal older.
It is an event of such importance, indeed, that this
report, a little later, will seek to interpret, in detail,
some of its aspects.
Ordinarily, an annual report does not go beyond the
end of a fiscal year, which in this case is June 30, 1946. Yet in the
present calendar year two dates fall beyond this day, to provide
historic sequel to the twelvemonth.
One, of course, is July 31, when President Truman approved the
certificate issued by the Civil Aeronautics Board, authorizing North
west Airlines to fly to Edmonton, Canada; Anchorage, Alaska;
Tokyo; Seoul, Korea; points in Manchuria and eastern China;
Shanghai; and Manila.
The other is October 1, which marks the twentieth anniversary
of the first Northwest flight, a mail hop from the Twin Cities to
Chicago, under contract with the Post Office Department.
Both of these dates are milestones.
Granting of Northwest Airlines' certificate to fly to Alaska and
the Orient was an event of such major importance in aviation
that the national news spotlight was focused on this company.
Newspapers throughout this nation, in Alaska and in foreign coun
tries printed the announcement from Washington, D. C., together
with background material and maps prepared by our publicity
department. Similar interest was shown in other developments
during the past year, including the purchase of new aircraft
equipment.
Projection of Northwest Airlines into the international field has
the zest of adventure. The announcement quickly captured the
imagination of prospective travelers, who besieged our ticket offices
for space on the first flights.
Setting up more distant operations--those beyond the familiar
Alaskan and Aleutian confines--will be pioneering.
There is far more, however, than rom'ance in this vast under
taking.
For all its boldness, it is essentially a business venture, based upon
a study of traffic potentials.
This study reveals at the outset the great need of the Far East
for transportation, most of which was paralyzed during the war.
It shows, also, the need for machinery and a great variety of goods.
It discloses that, through private initiative and government back
ing in these badly mauled lands, entire industries are being revived.
It points the possibility of developing hydro-electric power and
utilizing latent resources.
It discloses that both imports and exports, though still well below
pre-war figures, are increasing; that crops next spring will approach
seasonal averages; that the peoples--and there are hundreds of
millions of them--are astir with a hope of bettering their lot.
Improvement of their living standards will further a new era
in reciprocal trade. Closer ties with these lands will follow.
This new era of trade and understanding, we believe, will be
accomplished by an interchange of goods and and services, of raw
materials and manufactured articles, that will prove of common
benefit to the East, the West and to the airline which provides them
with a fast, sure, regular means of communication.
Some of the developments in the Far Eastern countries will be
discussed more specifically a little later.
Their broad significance is this--that when the fulfillment of
present plans is achieved, the dreams of the past, when explorers
sought a way to the Orient by means of the Northwest Passage,
then will become a reality.
/COM qsf 1924 1946
hile chief attention has been turned to
Northwest Airlines' expansion into the inter
national sphere, there have been a number
of major developments in the domestic field
during the past year. They have entailed
some serious problems of engineering and
planning.
The need for more adequate facilities for
maintenance of aircraft has been emphasized
by the addition of a fleet of bigger, faster
planes and the purchase of still more and
larger ships.
So plans were drawn for a main plant and
maintenance base to cost approximately
$8,000,000.
The location of this project was, and still
is, something to be decided later.
When it became known, however, that
Northwest Airlines was considering a number
of possible sites, various cities sent delega
tions to the General Office in St. Paul to
offer the advantage of their communities.
Many factors were discussed and much valu
able data gathered for further pondering
before this company reaches a final decision.
Newspapers sent along reporters with some
of these delegations, and press conferences
were held at the General Offices.
Construction was contingent on obtain
ing materials, and as these were scarce and
were under government control it became
Northwest Pilots in
Stratocruiser Cockpit.
apparent that before this airline could set up its own plant accord
ing to its own designs, it must lease temporary quarters.
In this emergency leasing of the wartime Boeing plant at Ren
ton, Wash., was considered. Certain factors, however, made it
inadvisable to take on this commitment at this time.
Then opportunity presented itself to lease hangars and other
facilities at the St. Paul airport, where headquarters of North
west Airlines once were located and where, during the war, this
company operated a bomber modification center.
A three-year lease was signed with the Metropolitan Airport
Commission of the Twin Cities.
Shop, offices and stores were moved there from Overhaul Base
Building in St. Paul, a large warehouse in Minneapolis and from
the Minneapolis airport.
Facilities at the St. Paul airport--incidentally named Holman
field, in honor of the late Charles Holman, former operations
manager of this airline--include two hangars, each 600 feet long
and 168 feet wide, and a two-story shop and office section between
the two hangars.
One-half of one hangar, 50,000 square feet, is utilized for ware
house and stockroom and a second deck is being added to this
area to provide an additional 25,000 square feet of warehouse
area. The other half of this hangar contains the engine, machine,
sheet metal, paint and propeller shops. The second hangar will be
utilized for aircraft overhaul space, providing room for Douglas
DC-3, DC-4, Martin 3-0-3, Martin 2-0-2 and Boeing 377 planes.
The ground floor of the section between the two hangars is being
used for smaller shops, such as instrument, electrical, and the like,
plant maintenance and locker rooms. The second floor is used
for offices, cafeteria and training rooms.
Although it does not solve the airline's ultimate problems, leasing
of facilities at St. Paul airport meets the present situation.
Construction was started during August of this year on a $1,000,-
000 hangar project at the new Seattle-Tacoma airport at Bow Lake.
The hangar is being constructed on a leased tract of land totaling
346,500 square feet. Construction, it is estimated, will be com
pleted in nine months to a year.
The hangar will be capable of housing, simultaneously, several
of the large aircraft.
Since engineering and planning activities have been system-wide,
others will be listed by cities for ready reference:
SPOKANE--With the entire operation moved from Felts Field
to Geiger Field, various improvements were made. A hangar 200
feet long and 120 feet wide was fitted for occupancy, while shops
and equipment facilities were set up in one of two adjoining build
ings. A new commissary has been installed on the ground floor of
one of these buildings. Northwest Airlines constructed a new
passenger station to provide for the expanding operations into and
out of Spokane.
PORTLAND--Plans were completed to provide twice the pre
vious space at the t
terminal building. Cost was estimated at
$75,000.
YAKIMA--The terminal building was expanded to provide
additional space for lobby, message center and station manager's
office.
WENATCHEE--Northwest Airlines co-operated with city of
ficials to establish a passenger station at the new Wenatchee airport.
BILLINGS--A commissary owned by the airline was established
adjacent to the passenger station. It includes kitchen area, food
eate
preparation area, walk-in cooler, stockroom, furnace and utility
room. The new facilities permit exclusive food preparation for
all Northwest flights through Billings.
CHICAGO--Northwest Airlines hangar No. 2 was modified to
allow servicing of DC-4 aircraft. The roof was raised on one-half
of the structure and larger doors installed. A passenger station
was constructed in part of the No. 1 hangar. Approximately one-
third of this hangar was partitioned off and access provided from
Sixty-third street through the building to the aircraft parked im
mediately in front. The balance of the hangar was reworked to
provide shop area and new station offices. The new passenger sta
tion will be used for part of the airline's operation until the new
joint terminal building is completed by the City of Chicago at the
northeast corner of the Chicago airport.
MINNEAPOLIS--Northwest Airlines leased the Minneapolis-
Honeywell hangar to be used for service in connection with DC-4
operation at Wold-Chamberlain field. A small portion of the
hangar was sub-leased to Minneapolis-Honeywell. The building,
of conventional type, reinforced concrete and brick-faced, has a
door opening 180 feet wide by 35 feet high and a floor area of
28,800 square feet. A mezzanine office section provides 10,000
square feet. Included with the hangar property is a 40,000-gallon
underground fuel storage system.
NEWARK--New station facilities were established, including
passenger handling and station offices in the joint terminal build
ing, and occupancy of one-half of one hangar bay in the Brewster
hangar. Space was provided for aircraft servicing, as well as
stockroom, locker room and other facilities.
ICE RESEARCH--STATIC PRECIPITATION
Northwest Airlines has continued its scientific researches into
means of combating icing of airplanes and formation of precipita
tion static under government contract. These were conducted at
Twin Cities Airport--Wold-Chamberlain Field, and on Mt. Wash
ington, in New Hampshire.
/ roviding adequate aircraft to fly the new Far East routes and
to maintain the growing domestic schedules has been the subject
of intensive study and some far-reaching decisions.
From competitive offerings, Northwest Airlines has chosen those
types which it believes best suited to its requirements, present and
prospective. It has not been content merely to accept conventional
designs, but groups of its engineers have worked with manufactur
ers' engineers to incorporate special features which this airline
either originated or refined, or which its experience has proved
most desirable.
It has purchased, for its overseas and limited stop routes, the
"airplane of the future," the huge Boeing Stratocruiser, of which
more will be said later.
To supplement these, it has acquired, or has in the process of
manufacture, other planes which represent the latest word in air
craft development.
Among these are two fleets of Martins, the 3-0-3 and the 2-0-2.
These Martins, with their high speed and economy of opera
tion, will eventually replace the presently-used twin engine DC-3's
and the interim four-engine DC-4's.
Forty of the exhaust jet-aided, five-mile-a-minute 3-0-3's were
ordered at a cost of more than $10,000,000. These twin-engine,
38-passenger planes, with pressurized cabins for greater comfort
of travelers, will serve every city on the coast-to-coast routes.
Ten of the Martin 2-0-2's, with a cruising speed of 250 to 270
miles an hour, also were ordered.
Each type has its individual characteristics, with features de
veloped in addition, by engineers of this company.
The 3-0-3's pressurized cabin will maintain 6,000-foot altitude
conditions as high as 16,000 feet. It will have thermetically-con-
trolled warm-wall radiant heating, with air-conditioning systems
to insure constant temperatures both winter and summer. Humi
dity will be controlled.
The 40-passenger Martin 2-0-2 will incorporate some of the
characteristics of the 3-0-3, with special features of its own.
It is expected that the 2-0-2's will start flying the airline's trans
continental routes shortly after the first of the year, with all de
liveries of this type completed in six months. The first of the
3-0-3's will go into service next summer, it is estimated, with final
deliveries by April 1, 1948.
(r raffic has many ramifications--some of them the
result of Northwest Airlines' entry into the interna
tional sphere; others due to. normal expansion of the
airline; still others due to the recall of wartime and
post-war controls by the military and by government
agencies.
Though airplane space has continued at a premium,
we are entering an era when the problem will not be to
find seats for passengers, but to find passengers for
seats. This is true not alone of Northwest Airlines
but of all airlines.
Competition will intensify.
Our traffic department has long foreseen this turn
about and has made preparations accordingly. It has
moved, also, to meet other conditions of the air age.
In anticipation of the routes to Alaska and the
Orient, its key personnel have prepared themselves for
special assignments. Some of these men have had
past experience in Alaska or the Far East, know the
customs of foreign lands, speak Chinese or Japanese,
and have wide acquaintance among the natives.
Going even further back in the period of prepara
tion, the traffic department--to meet both domestic
and international demands--began setting up a program
of standardization. This applied to all the traffic of
fices, both as to the physical set-up and operation.
By this means, economies have been effected, and a
high degree of mobility has been achieved, so that per-
sonel could be transferred, yet find themselves in fa
miliar working surroundings. This standardization
will guide the great expansion of traffic that lies ahead;
and will serve to integrate traffic activities on the main
land, in Alaska and in the Orient.
Extension of Northwest Airlines to Alaska, Korea,
Manchuria, Japan, China and the Philippines has fo
cused interest in round-the-world tours. So traffic de
partment officials are discussing working arrangements
with Trans World Airline, with which it will connect
in the globe-girdling routes at Shanghai. Thus complete
encirclement of the earth for the benefit of air travelers
will be made possible and practicable by the combined
services of these two airlines, one over the Atlantic
and the other over the Pacific.
To effectuate further this round-the-world service,
the company has entered agreements with travel agen
cies in the United States and foreign countries to ex
change business between Northwest Airlines and the
other companies they represent.
As one of the first steps to care for Alaska and
Orient traffic, a temporary ticket office was opened in
the Westward hotel at Anchorage, Alaska.
Other similar offices will be opened in Far East
countries, directed by the company's key personnel,
which will train native help, wherever this is advisable.
New and better food service is being worked out.
.
Because of long overseas hops to the Orient and the
inability to stock up at commissaries en route, frozen
foods will be served. Extensive experiments have been
carried out to test the handling, cooking, serving and
wholesomeness of such foods.
While these preparations have been under way to
meet the international responsibilities, domestic traffic
has received due attention. Much thought has been
given to the coming change-over when the airline's
problem will be to fill the increased number of bigger,
faster planes. All traffic personnel have been indoc
trinated with the idea that each must use the utmost
initiative, consistent with fair business practices, to sell
and accommodate traffic.
The traffic department has conducted an extensive
national advertising campaign to acquaint the public
with business possibilities and vacation lures along the
routes of this airline. This campaign has been con
ducted through leading newspapers and magazines.
In all the communities where they are located, dis
trict traffic managers and their staffs have kept in close
contact with community leaders and have helped pro
mote community interests, thus associating Northwest
Airlines with the progress of these communities.
New ticket offices--following the pattern set in Chi
cago, New York and Detroit--have been opened in
various cities, including Milwaukee, Newark and Du
luth.
(Above) Alaska in scenic splendor
(Below) Anchorage has its Main Street
n entering the international field, Northwest Airlines has had
thrust upon it some of the greatest operations responsibilities ever
faced by the airline, while at the same time it has enjoyed certain
unique advantages. The latter stemmed from wartime experiences
of this company, its pilots and ground crews, in setting up and
operating, on schedule and under all weather conditions, a military
cargo and passenger line for the Army to Alaska and out along
the Aleutian Islands.
The company's present Alaskan operation, a forerunner of the
international operation, started September 1, just one month after
the certificate was granted, over the "outside" route from Seattle-
Tacoma to Anchorage, Alaska. One trip a day was flown, with
more to follow as equipment is available. Northwest provided the
first domestic air* express service at rates comparable to those be
tween mainland cities.
As preliminary steps to outside route service to Alaska, a survey
flight and other preparatory flights were undertaken shortly after
the Civil Aeronautics Board authorized Northwest Airlines to fly
the Great Circle route. Because of its historic importance, this
flight was widely publicized in newspapers here and in Alaska.
On preliminary flights, study was made of airports and com
munications. Arrangements were completed to install additional
ground-to-plane radio at Yakutat and Annette Island.
Shipping of necessary materials and supplies was begun at once.
As in the wartime operation, it was planned to carry in most of
the material by plane.
Key operations personnel went to Alaska on early flights, or
were transferred there for more permanent duty.
Pilots who previously had flown the company's military operation
in Alaska and the Aleutians, as well as other transport services,
received letters from the company asking them to stand by for
northern or overseas assignments.
Many of these have been re-employed, and others will be used
when the Far East operations are started.
While the outside flights to Alaska were gotten under way within
a month after the Civil Aeronautics Board certificated this route,
the "inside" route was delayed somewhat because of diplomatic
formalities and for other reasons.
Since Northwest Airlines planes would have to fly over Canadian
territory and stop at Edmonton on the way to Anchorage, formal
authorization from the Canadian government was necessary.
Such diplomatic steps have been taken through the United States
Department of State and the Canadian government indicated its
wholehearted co-operation.
Start of the inside route, which is expected to carry heavy traffic
through Minneapolis-St. Paul, headquarters of the company, from
Chicago, New York, Detroit and other mid-west and eastern areas,
will begin before the first of the year.
Start of the Orient operation, which involves further and perhaps
more complicated diplomatic negotiations with other foreign coun
tries, through the American state department, will begin early in
1947.
While developments beyond the mainland were most engrossing,
the transcontinental system witnessed several outstanding opera
tional achievements.
Chief among these was the inauguration of service with four-
engine, 44-passenger DC-4 planes, to replace twin-engine 21-
passenger DC-3's on limited stop runs.
To prepare for this change-over, Northwest Airlines early ac
quired a C-54 plane--the military counterpart of the commercial
airline DC-4--which had been used on the "Cannonball Run"
of the Air Transport Command during the war. Several of our
pilots who had flown this type of ship for the ATC during the
war and had made numerous ocean crossings, were available to
help train other regular airline pilots in flying such ships.
As a result, when DC-4 operations began, there were many
pilots fully qualified to take over the controls and such operation
began last spring, with flights into New York and Chicago from
the Twin Cities. Later this service was extended coast-to-coast.
Use of the DC-4's with their need for longer runways than
the DC-3's brought up some operational problems which were not
settled until a change of airports was made. Felts Field at Spokane
was found inadequate, and successful negotiations were conducted
with the Army for the use of Geiger Field. Plans were made at
Detroit to use Willow Run for all our operation instead of the
regular airport at Detroit, which was outmoded by the larger planes
and still other plans were laid for the transfer of operations from
LaGuardia field, New York, to the much more spacious Idlewild.
Another significant event during the year was the extension of
service into Newark, N. J., in the New York metropolitan area.
Newark was used as the eastern terminus and Seattle-Tacoma
as the western terminus of the Transcon. operation conducted
by the company for the transfer of military personnel from ports
of debarkation, both east and west, to points near discharge centers.
This operation was begun August 27, 1945, and ended February
28, 1946. During this period, more than 30,000 military personnel
were carried, as a schedule of four round trips daily between Newark
and Seattle-Tacoma was maintained.
Affecting both operations and traffic during the year were the
easing and then the relinquishment of travel controls by the
military and by the Office of Defense Transportation. The wartime
priorities system came to an end. Northwest ended its Northern
Region operation September 1, 1945,
^^orthwest Airlines' foreign flights and its coas t-to-coast non-stop and limited stop flights call
for an airplane that can fly high, far and speedily.
For a plane that will offer passengers the utmost in comfort during the hours they spend aboard it.
For a plane that can carry heavy loads, yet maintain fast schedules economically.
For a plane that is sturdy, while embodying those refinements that put travelers at ease.
For a plane whose airworthiness has been proven under the most trying tests.
With all these specifications in mind this company decided upon the Boeing Stratocruiser, the
commercial airline version of the famous Boeing B-29 Superfortress. Convinced that this was the
plane of the future it signed a $15,000,000 contract for the purchase of a fleet of these 75-to-105-
passenger, double deck luxury liners.
To the basic engineering of the Boeing ships, this company will add special features which its
own engineers have developed and in order to speed the manufacture and carry out the character
istic designs, this company has set up its own organization in the Boeing plant at Seattle to work
there with Boeing engineers and crews. This arrangement is expected to be of mutual advantage
to both organizations--the manufacturer and the airline.
orthwest Airlines pilots flying the Stratocruiser will find ex
ceptional visibility has been provided for the crew. The vision
field is large thereby affording the maximum safety for opera
tions in congested areas. Forward and side windows have large
flat glass panes, set at proper angles. So inclusive is the vision that
it takes in broad areas of even the largest airports and brings out
the runway pattern clearly. Whether it is front or side, the pilot
is able to see every ground marking or object which is related
either to landing or take-off. This clear visibility is provided even
under adverse weather conditions.
1926 | 946
if he Stratocruiser has been designed to fly above
the weather, thus enabling Northwest Airlines pas
sengers to avoid storms and other disturbances.
Yet its air-conditioned cabins will provide at
mospheric conditions similar to those on the
ground or at a few thousand feet above ground
level. Sea level cabin air, in fact, will be provided
at altitudes up to 15,000 feet, and 6,000-foot cabin
air up to 25,000 feet.
Luxury appointments, some of them engineered
by Northwest Airlines, will provide passengers
with such accommodations as a lounge seating 14
persons; men's and women's dressing rooms; full-
view, non-frosting panorama windows; designed by
Northwest Airlines engineers; commodious sleep
ing quarters; and numerous other refinements.
Greater fuselage volume in the passenger com
partments allows more space to each passenger.
The two-deck arrangement of the airplane per
mits greater freedom of movement within com
partments. This, in turn, is likely to relieve the
tedium of long hops and to keep Northwest pas
sengers relaxed and interested in their journey.
High wing loading and high speed tend to
"smooth out" air bumps, another factor contribut
ing to the comfort of passengers. At most cruis
ing altitudes, flight levels may be changed rapidly,
yet with passengers scarcely conscious of this fact,
since a constant cabin pressure is automatically
maintained.
The maximum rate of change for cabin pres
sure altitudes may be limited to 200 feet per min
ute. On flights of 15,000 feet or less, there need
be no change in pressure. Ear discomfort due to
changes of altitude is thus eliminated. Noise and
vibration levels are reduced to a minimum because
of construction methods. This is another of the
features carefully studied by Northwest engineers.
(/ he lounge, located on the lower deck behind
the wing, provides not only a place where 14 per
sons may gather in comfort, but it also offers a
complete change of environment for Northwest
Airlines passengers who visit it. It is reached from
the main cabin by a circular stairway. These
stairs, likewise, may be used in embarking or dis
embarking passengers at intermediate stops through
a lower door.
In the cabin, well upholstered, roomy seats may
be adjusted to various positions, from a normal
upright sitting posture to a nearly full reclining.
Exceptional "leg room" is provided for occupants
of these seats.
f
erving of food aboard
Northwest Airlines' planes
is one of the most attractive
features of air travel.
The galley of the Strato-
cruiser is large and fully
equipped for such food serv
ice.
In addition to its regular
coast-to-coast system of food
service, which ties in with
commissaries at various
points, the airline is making
provision for meals to be
served during long flights
over land or water--typical
hops of the Alaskan and Far
Eastern operations. Tests
have been made of the use
of frozen foods, by the Max-
son Food Service and it is
planned to have these on
the menus of long distance
flights.
These meals are prepared
at commissaries, frozen, and
then placed aboard the
planes, where they are then
brought back to normal
state by being placed in
ovens. The transition into
and out of the frozen stage
is so scientifically done that
the food can be served pip
ing hot and with none of its
original flavor lost.
air travelers desire
sleeping accommodations.
Others prefer to sit up--or
rather to recline in their
seats and take their sleep
that way.
For the former, fifteen
lower berths accommodate
two people each, fifteen up
per berths accommodate one
person each .
The berths are conveni
ently lighted, and are cur
tained off from the rest of
the cabin.
In addition to the berths,
there are seats for those who
do not care to go to bed--
those who expect to get off
at intermediate stops, and
those who prefer to sit up
even on long jaunts.
(/ he ladies' lounge consists of two separate compartments. In addition to usual
dressing room facilities, the lounge has mirrors for good vision, and is tastefully
appointed.
Several men at a time can be accommodated in the men's dressing room, a
feature that makes it possible for passengers to shave without delaying others.
Lights and electrical outlets are conveniently located.
Considerations of comfort for passengers are supplemented, in the Stratocruiser,
by many other features simplifying operations such as loading, ground service, main
tenance and inspection. These provide economical handling of both passengers
and cargo. Passengers will normally pass through a large door on the upper level,
completely separated from all cargo and servicing.
Lower deck cargo compartments, fore and aft, have ground-level, in-a-door
steps, wide doorways with sills at truck bed height, upright headroom, and wide
angle floor-wall intersections. These make possible single-motion loading with
out special equipment.
Two-lobe construction (figure eight type design of the fuselage) affords easy
access to all plumbing, electrical and control assemblies. Power plants are quickly
removable, or accessible without removal, for inspection, adjustment, or minor
repairs. All four units have been made interchangeable in order to simplify over
haul and engine change.
The Stratocruiser will cruise at 300 to 350 miles an hour at 20,000 feet above
sea level, using only 65 per cent of maximum continuous horsepower per engine.
It is able to climb to 15,000 feet with only two of its four engines in use.
Physical dimensions of the airplane are 141 feet 2Y\ inches in wing span; 110
feet 4 inches in length; 38 feet 3 inches high at the top of the tail fin.
Its total fuel capacity is 7,700 gallons.
Icing is reduced to a minimum by a system which provides an ample, controlled
flow of heat to wing and empennage surfaces, preventing ice from forming. The
source of heat is a separate unit, independent of the main power plants.
1946
^certification of the great circle route has emphasized, rather
than overshadowed the need for a well-rounded domestic network.
So Northwest Airlines has applied for important new routes or
pressed its case for routes it previously sought.
Among the applications are those for routes to Washington,
D. C., and to the industrial cities of Buffalo, N. Y., Cleveland,
Ohio, and Pittsburgh, Pa.
It is felt that the extension of the airline to the Far East makes
it especially important, as a consideration of national defense,
that the national capital be directly linked with such service. Of
major importance, too, is the need for direct connections between
Buffalo, Cleveland and Pittsburgh and the industrial territories
they serve.
To make clear the company's position in its program of round
ing out the domestic structure, attention is called to these facts:
Pending before the Civil Aeronautics Board is an application
for service on alternate routes through the states of Illinois, Wis
consin, Minnesota, North Dakota, South Dakota and Montana.
All of these were included in the North Central proceeding heard
by the Board in March, 1945, and finally submitted to the Board
in April, 1946. Decision on this is awaited.
Specifically, the company proposed routes between Chicago
and Milwaukee and the Twin Cities, to serve Rockford, Ill.,
Beloit-Janesville, Wis., Dubuque, Iowa, and La Crosse, Wis.;
and also from Chicago and Milwaukee directly to Duluth, Minn.,
via Green Bay, Wis., and from Duluth-Superior, directly across
to Fargo, N. D., making connections there for the west coast;
and from Fargo to Spokane, via Grand Forks, Minot, and Willis-
ton, N. D., and Glasgow, Havre, Great Falls, Cutbank-Shelby
and Kalispell, Mont.
The company also has asked that Great Falls be certificated
permanently as a stop on its transcontinental route, as it presently
is serving it under a temporary wartime exemption.
The company likewise has asked that Bozeman, Mont., be
certified as an intermediate point between Billings and Butte,
Mont.
The company further seeks authorization to serve Aberdeen,
S. D., on its straight line operations between the Twin Cities
and Billings; and with the authority already granted to serve
Portland, directly from Butte, this would effect a saving of 108
miles on a transcontinental route from New York to Portland.
The company has asked authorization to serve Cleveland, Pitts
burgh and Washington from Milwaukee or Detroit, and hear
ing on this was set for October 21.
Finally, the company has the following applications pending,
on which no hearing dates have been advised:
Detroit-New York, via Buffalo.
Detroit-New York, via Cleveland.
The company has asked the Civil Aeronautics Board to re
move restrictions on its certificate which require that flights east
of Milwaukee originate or terminate at the Twin Cities or
points west of them.
Service between Milwaukee and the Twin Cities, via Green
Bay, Wausau, and Eau Claire, Wis., will be inaugurated as soon
as adequate airport facilities are available; and limited service
will be given to Eau Claire this Fall. Northwest Airlines also
expects to serve Jamestown, N. D., upon completion of airport
facilities this Fall.
he personnel department, too, has for several years been build
ing a strong domestic foundation for the expansion to the Orient.
Orderly, co-ordinated programs have been worked out to cope
with the airline's personnel problems and these programs are now
ready for extension to the new Pacific Region.
The training program will be particularly important. The longer
over-water hops call for new and bigger planes. And these planes
in turn pose problems of training.
To meet those problems, the training division of the personnel
department has had instructors at the factories, gathering flight
information and mechanical details on the Boeing Stratocruiser
and the Martin 2-0-2 and 3-0-3. By rotating the instruction staff
between home hangars and future fleets; the training division is
able to keep the crews thoroughly briefed on present DC-3's and
DC-4's, while readying charts and movies and mock-ups for the
advance training on Martins and Stratocruisers.
Then, too, stewardesses will be given transition training in pre
paration for the new equipment and the new customers. Stock
clerks will be drilled in accuracy against the increased complica
tion of handling hundreds of thousands of additional parts.
Navigators and flight radio operators will have to be trained
for over-water operation. Key treasury personnel will be trained
in foreign exchange.
Ticket and transportation agents will be exhaustively briefed in
customs handling, foreign exchange, tariffs, visas, passports, and
the other requirements of international travel.
Other functions performed by the personnel department are
also ready for extension to the Pacific region. The statistical divi
sion, the procedure and classification division, and the publication
division Will all expand their already company-wide service.
The employment division has instituted advanced methods of
testing and interviewing prospective employes so as to hire the
strongest possible employes for the company. It has also instituted
TRAINING PROGRAMS IMPROVE EMPLOYE'S EFFICIENCY
(Upper Left) They study own telephone voices over wire records to im
prove vocal appeal in public contacts. (Upper Right) Girls take reservations
requests at switchboards. (Lower Left) Mechanics learn about modern
aircraft parts. (Lower Right) Stewards practice duties aboard airplane.
modern records, to keep tab on the personnel after they are hired.
In the labor relations field, the company has tried to hold labor
unrest to a minimum through advanced and constructive personnel
practices and by paying wages commensurate with the best in the
industry. For the Pacific operation, it is aiming at high morale
among its employes by putting foreign employment on a volunteer
basis. Already many company employes and outside applicants
have been attracted by the offer of salaries higher than domestic
salaries, and other inducements as to working conditions.
After the foreign bases are set up, the company expects to
hire many of each base's staff from among the local population.
Calendar
Year
Mail
Revenue
Passenger
Revenue
Express
and Freight
Revenue
Revenue
Passenger
Miles
Mail
Pound
Miles
Total
Plane
Miles
Flown
3 Months, 1926 $ 11,790 --o-- Not Avail. --o-- Not Avail. 47,397
1927 76,029 $ 8,663 "
126,000 "
211,667
1928 195,315 24,890 "
402,400 "
314,496
1929 495,708 121,075 "
1,956,400 "
736,664
1930 648,799 119,349 $ 146 2,129,600 "
1,032,340
1931 917,635 205,164 575 3,934,093 89,706,330 1,434,555
1932 884,719 200,984 343 4,127,800 77,867,566 1,639,015
1933 762,208 188,966 1,873 4,108,313 82,613,032 1,823,850
1934 251,133 199,074 4,319 4,301,145 44,034,248 1,643,127
1935 629,724 481,528 12,388 10,342,834 315,817,803 2,841,198
1936 1,050,639 759,981 27,318 16,528,401 671,011,789 3,699,818
1937 1,076,293 761,839 33,768 16,685,852 841,274,933 4,462,439
1938 1,286,549 829,554 41,625 21,153,258 1,116,975,430 5,310,015
1939 1,763,288 1,324,728 61,186 34,749,246 1,166,518,244 5,399,024
1940 1,769,735 2,151,311 79,531 51,175,254 1,370,076,043 6,079,669
1941 1,955,826 2,526,721 118,885 59,659,145 1,871,311,191 6,353,659
1942 1,850,601 2,410,512 240,800 52,061,159 2,528,042,954 4,931,815
1943 1,353,822 3,139,713 297,941 63,787,683 4,005,180,807 4,584,766
1944 1,500,874 6,073,967 246,030 120,834,296 4,900,802,947 7,523,146
1945 1,649,575 10,060,619 409,613 218,469,773 5,396,757,098 12,870,714
1st 6 mos., 1946 598,192 7,467,236 173,292 159,589,157 1,941,498,248 8,641,861
OR the fiscal year ended June 30, 1946, you r company made a net profit of $988,851 after deduction
of all taxes and reserves, an increase of 36% over the previous fiscal year. This profit amounts to $1.82 for
each of the 543,870 shares of common capital stock outstanding at the end of the fiscal year. At the close of
the year, the company's earned surplus was $2,422,855. On the following pages are shown a report from Ernst
& Ernst, Certified Public Accountants, covering statements of profit and loss and surplus and the balance sheet.
Total operating revenues, excluding fees from war contracts, increased 52% over the previous fiscal year
primarily as a result of increased transportation of passengers.
Passenger revenue of $13,371,074 is 68% above the preceding year and represents the major portion of
the increase in operating revenue. This increase is again the result of flying more airplanes and more miles
in commercial service than at any time in the history of your company. During the fiscal year, approximately
89% of all available seats were filled.
Mail revenue of $1,455,166 is 10% under the previous year as a result of lower average mail loads carried.
The air transportation industry has generally experienced lower average mail loads than during the war.
Express and miscellaneous operating revenues increased $32,123.
Total operating revenues exclusive of contract fees produced $1.00 per revenue mile.
con-
Contract fees decreased $598,025 as the result of completion or curtailment of various government
tracts.
Total operating expenses increased 42% and total miles flown increased 64% over the preceding year.
The cost per mile flown decreased 16% or 13 cents per mile flown.
Cash dividends of 50 cents per share were declared on August 7, 1945 and June 4, 1946 and were paid
on September 1, 1945 and July 1, 1946, respectively. Our dividend, which in recent years was paid in Sep
tember, was paid this year on July 1.
Cash and United States Government securities decreased from $7,208,423 to $2,348,044 during the fiscal
year ended June 30, 1946. This decrease resulted principally from the purchase of aircraft and equipment now
in service and from substantial deposits made in connection with procurement of aircraft and engines for
future delivery. The ratio of current assets to current liabilities declined during this period due to the con
version of cash and securities into fixed assets, deposits on purchase commitments, dividends of $541,470 paid
in cash, and increased current liabilities resulting from additional costs of aircraft conversion, buildings and
equipment in progress and increased federal and state taxes on income. Unreimbursed costs from war con
tracts decreased to $193,659 at June 30, 1946.
19
1,847,677
500,367
1,573,634
Cash
United
Trade accounts
Unreimbursed costs and
the United States
Less advances
accounts of $374,032
with
$1,708,966
655,307
$1,053,659
Less reserve 860,000 193,659
Inventories --
at lower of cost or market:
Materials and supplies \ 333,975
Deposits on purchase commitments to be refunded 679,714
TOTAL CURRENT ASSETS $ 5,129,026
Other Assets
Income taxes recoverable upon utilization of reserve for war contract adjustments $ 213,000
Sundry accounts, claims, deposits, etc., less reserve of $10,000 141,749
Indebtedness of employees, less reserve of $500 5,123
Property, Plant, and Equipment -- on the basis of cost.
Land
Aircraft and reserve equipment
Conversion costs on leased aircraft
Buildings on land not owned
Other buildings and equipment
Improvements to leased property
Cost of aircraft, buildings, and equipment in progress; prelim
inary costs on new aircraft fleets
Cost Reserve Balance
$ 17,015 $ 17,015
6,532,449 $2,261,856 4,270,593
563,299 272,300 290,999
343,653 119,012 224,641
1,670,876 655,453 1,015,423
369,700 .
175,435 194,265
1,469,438 1,469,438
$10,966,430 $3,484,056 $7,482,374
Cash deposits in connection with acquisition of new aircraft
and aircraft engines
Deferred Charges
Prepaid rent and insurance
Other prepaid and deferred expenses, supplies, etc
$ 148,327
50,511
359,872
1,583,663 9,066,037
198,838
$14,753,773
Accounts payable .V^... Lr. .....7^2,541,268
Salaries, wages and vacation compensation. UTTTt:-' 609,092
Air travel contract deposits -- gross i , ,,
326,825
Payroll taxes
..
200,286
Employees' income taxes withheld ....T^.rrrr^ 118,826
Employees' war bond deductions 42,448 $ 3,838,745
Dividend payable July 1, 1946 $ 271,935
Less deposit with paying agent 271,935
Accrued taxes and rent 101,516
Federal and state taxes on income --
estimated:
For the year ended June 30, 1946 $ 725,000
For prior years 35,500 760,500
TOTAL CURRENT LIABILITIES $ 4,700,761
Deferred Income --
Unused transportation --
estimated 278,694
Capital Stock and Surplus
Common stock, no par value:
Authorized 1,000,000 shares; unissued 456,130 shares, of which 10,000 shares are
reserved for options at $14.00 per share, and 5,200 shares are reserved for issu
ance in connection with future options which may be granted to officers and
employees; oustanding 543,870 shares at aggregate stated capital amount $7,351,463
Earned surplus 2,422,855 9,774,318
Contingent Liabilities --
Note B
$14,753,773
See accompanying notes to financial statements.
Comparative Statement of NORTHWEST AIRLINES, INC
Years Ended June 30, 1946 and 1945
Operating revenues:
Transportation:
Passengers
Mail
Express, freight, etc
Repair and service income, rents, etc. -- net .
Fees from war contracts
TOTAL OPERATING REVENUES
Operating expenses
Provision for war contract cost adjustments
OPERATING PROFIT
Other income and credits
Other deductions
PROFIT BEFORE TAXES
Taxes on income --
estimated:
Provision for the year:
Federal normal income taxes and surtax
State income taxes
Adjustment of recoverable taxes
Over-provision for prior years
Reduction in reserve for war and post-war contingencies --
Note C
NET PROFIT
Provision for depreciation and amortization included in operating expenses
1946
$13,371,074
1,455,166
467,035
28,635
146,992
1945
$ 7,972,423
1,616,886
458,963
4,584
745,017
$15,468,902 $10,797,873
$13,703,283
269,619
$ 9,672,181
198,682
$13,972,902 $ 9,870,863
$ 1,496,000
95,531
$ 927,010
119,169
$ 1,591,531
29,576
$ 1,046,179
17,170
$ 1,561,955 $ 1,029,009
$ 650,000
75,000
( 101,000)
( 896)
$ 278,000
22,000
56,000
( 4,705)
$ 623,104 $ 351,295
$ 938,851
50.000
$ 677,714
50,000
$ 988,851
....$ 1,178,022
$ 727,714
$ 556,393
See accompanying notes to financial statements.
NORTHWEST AIRLINES, INC.
June 30, 1946
Note A--Substantially all of the Company's war contracts have been terminated, such contracts having constituted, from Febru
ary, 1942, to February, 1946, an important phase of the Company's operations. Charges to the Government under these
contracts included substantial amounts for overhead expenses allocated to such contracts. While the Company believes
that such allocations have been fairly determined in accordance with contract provisions, they are subject to audit (now
in progress) and approval by the Army Contracting Officer and the General Accounting Office. A reserve has been pro
vided against disallowances of overhead allocations and direct costs. During the period of these contracts total charges
to the reserve amounted to $421,812, leaving a balance in the reserve of $860,000.
Renegotiation proceedings pursuant to the Renegotiation Act have been concluded for the fiscal year ended June 30,
1944, and prior fiscal years, no refunds of profits on war contracts having been required. The Company believes that
such proceedings for the fiscal years ended June 30, 1945 and 1946, will likewise result in no refund being required.
Note B--The Company has been named defendant in a law suit involving a claim of approximately $1,900,200 for the payment
of overtime compensation to employees who worked in excess of 40 hours per week on war contract operations at the
Saint Paul Modification Center. In addition thereto, the Company is a defendant in a number of other law suits in
volving claims based on the same contention, the amounts of which are not specified but might aggregate several million
dollars. The Company conducted this operation as a prime contractor for the War Department of the United States
Government. In accordance with the decision of the Comptroller General of the United States, all amounts paid in
satisfaction of final judgment against the Company in any such action, and the reasonable and necessary costs and ex
penses of litigation as approved by the Army Contracting Officer, constitute allowable items of cost under war contracts;
and in view of those circumstances, the Company has made no provision in the accompanying financial statements for
any portion of the amount involved in this litigation. The actions were defended by the United States Department of
Justice in the Federal District Court for Minnesota, but no decision has been reached at this time.
As a result of an action involving a United States Government-owned airplane which was being operated by the Com
pany under contract with the United States, several actions for death of, or injury to, military personnel who were then
v
being transported have been instituted against the Company. The aggregate amount for which judgments are sought is
$1,125,000. Under terms of the United States Government contract, the Company is entitled to be reimbursed by the
Government for any losses or expenses to which the Company may be subjected; and the Company has made no pro
vision in the accompanying financial statements for any portion of the amount involved in this litigation. The United
States Department of Justice has undertaken the defense of these actions.
Note C--A reserve for war and post-war adjustments was provided in the fiscal year ended June 30, 1944, for expenses anticipated
in conversion to peacetime operations. The amounts returned to income from this reserve during the fiscal years ended
June 30, 1945 and 1946, were less than the costs, losses and expenses charged to profit and loss and for which the re
serve was provided, after deducting applicable income taxes.
Note D--As of August 28, 1946, the Company was committed to purchase ten Boeing Stratocruiser aircraft which, with spare
parts, flight and ground equipment and engines will cost approximately $20,500,000, and had commenced construction
of a hangar at the Seattle-Tacoma Airport at a cost of approximately $1,000,000. At that date, the Company contem
plated entering into a contract to acquire forty Martin aircraft which, with spare parts and flight and ground equip
ment and engines (already on order) will cost approximately $13,000,000, together with an option to acquire twenty
additional Martin aircraft. As of August 28, 1946, the Company contemplated development of its operations to Alaska
and the Orient, at an estimated cost of approximately $2,000,000 for necessary ground facilities and development expense.
Statement of Surplus
NORTHWEST AIRLINES, INC.
Year Ended June 30, 1946
Balance at July 1, 1945 $2,024,210
Add net profit for the year
988,851
$3,013,061
Deduct:
Dividends paid in cash on common stock--$1.00 per share (including 50c per share
paid July 1, 1946, representing dividend which, if paid in accordance with recent prac
tice, would have been paid in September, 1946) $541,470
Cost of intangible asset (United States Government air mail route acquired in 1934)
charged off 48,736 590,206
Balance at June 30, 1946 ..$2,422,855
See accompanying notes to financial statements.
ACCOUNTANTS' REPORT
Board of Directors
Northwest Airlines, Inc.
Saint Paul, Minnesota
We have examined the balance sheet of NORTHWEST AIRLINES, INC., as of June 30, 1946, and the
statements of profit and loss and surplus for the year then ended, have reviewed the system of internal control and
the accounting procedures of the Company and, without making a detailed audit of the transactions, have examined
or tested records of the Company and other supporting evidence, by methods and to the extent we deemed appro
priate. Our examination was made in accordance with generally accepted auditing standards applicable in the
circumstances and included all procedures which we considered necessary. It was impracticable to confirm by
direct communication the amounts receivable from the U nited States Government for unreimbursed costs under war
contracts as of June 30, 1946, as to which we satisfied ourselves by other auditing procedures.
There remain unsettled matters resulting from wartime conditions which may affect the accompanying financial
statements. Certain costs under war contracts have not been finally audited and accepted by the War Department
and the General Accounting Office and may include unallowable items; the war contract fees accrued in the fiscal
years ended June 30, 1945 and 1946, may be subject to renegotiation; and the related income tax questions are still
unsettled; all of which will not finally be determined for some time. These questions have been considered and dealt
with in the statements on a basis believed to be reasonable in light of present information and conditions.
In our opinion, the accompanying balance sheet and related statements of profit and loss and surplus present as
fairly as can now be stated, the position of NORTHWEST AIRLINES, INC. at June 30, 1946, and the results of
its operations for the year then ended, in accordance with generally accepted accounting principles applied on a basis
consistent with that of the preceding year.
ERNST & ERNST
Saint Paul, Minnesota
August 28, 1946
Certified Public Accountants
0 0
n extending its services to Alaska and the Far East, Northwest
Airlines will be entering rich and vast fields that have lain com
paratively undeveloped for centuries, yet have been powerfully
affected by world events of recent years.
Alaska can stake its future on at least two circumstances, its
natural resources and its vital importance in national defense.
Alaskans themselves believe it soon will become part of the
Union as the forty-ninth state; and they envision a population of
millions, instead of the present tens of thousands. They point out
that Norway, Sweden and Finland, with a comparable climate
and a smaller area, supported 13,000,000 people before the war.
Alaska's deposits of coal are so vast that no close estimate has
been possible--but there is enough to supply the rest of the United
States for years. Other deposits include gold, tin, copper, iron,
lead, platinum, tungsten, molybdenum, and marble.
Fishing is today's biggest industry there; tomorrow's may be
farming and mining.
Alaska will attract thousands of tourists annually; and the
travel and business ties with the mainland will become closer and
closer as air transportation develops.
Even now, Alaskans are the most air-minded persons in the
world.
Governmental agencies are already moving to develop the ter
ritory. Members of the House military affairs committee, which
toured Alaska, declared that the northern area should be quickly
and adequately armed to repel any possible invader. The In
terior department decided to release 18,640,000 acres of public
land in Alaska for private development under federal mining and
leasing laws. Alaska is appearing more and more in news stories,
reflecting increased interest by the rest of the nation.
In the Far East, World War II had its beginning, and there
it raged longer than anywhere else. There its effects were most
appalling. There one of the biggest tasks of rehabilitation is under
way.
The Philippines, China, Japan, Korea, Manchuria--each seeks
deliverance, not now from war but from conditions brought on
by war.
Hardest hit in all these countries is transportation. It is for
this reason that the coming of the new trans-Pacific commercial
airplane service will be an event of great importance. It will
speed officials, engineers and various technicians back and forth
between there and the United States to make preliminary sur
veys, set up organizations, arrange for the flow of equipment and
goods that are so badly needed.
Requirements of the Far East are almost limitless. Many of
the most urgently needed articles are made by manufacturing
plants along the Northwest Airlines system--the output of factories
in Milwaukee, Detroit and other cities.
New markets, in turn, will be opened in this country for
Oriental exports.
Trade from Chinese coastal cities is being revived, and already
some sizable exports have gotten under way from Shanghai,
most of these bound for the United States.
China's chief industries, like silk and cotton textiles, which
were demoralized by war, are reviving.
Prospects of rice from the lower Yangtze valley are good, with
estimates that the overall crop in China this year would exceed
that of last year.
Inflation, which had brought living costs up several hundred per
cent, is taking a down turn.
Extensive highway repairs are under way.
All these are hopeful signs.
The United States has made extensive surveys of means to
further the industrialization of China.
In the Philippines, looked upon as a great potential market
for American goods, and with which the United States has mutu
1946
ally advantageous tariff arrangements, rehabilitation is definitely
under way.
Government and private interests have joined in exporting
limited amounts of staple products--things like copra, abaca
(Manila hemp) rubber, bristles.
A committee organized for aid of the Philippine tobacco indus
try--consisting of planters, manufacturers and exporters of tobacco
products--has been actively at work.
Resumption of the tobacco trade has proceeded to a point where
it is believed that a full tobacco crop, after this late summer plant
ing, will be harvested next spring.
The National Rice and Corn Corporation, a pre-war govern
ment organization in the Philippines, has been revitalized. An
Agricultural Machinery and Equipment Corporation has been
created by the Philippine Congress to further the producing of
plows, tractors and other implements for sale to farmers on easy
terms. Many of these are being obtained in the United States,
from plants in Northwest Airlines' trade areas. With this supply
of tools, it appears that crops of rice and corn to be harvested
late this year and early next will surpass the 1945-1946 crop.
Gathering of weather data in the Philippines will not present
the airline with any difficult problem, for already the United
States weather bureau, in co-operation with the Philippine govern
ment, has already begun to re-establish and improve the metero-
logical service in the islands. The United States Congress has
appropriated $1,308,000 for use by the Philippine government in
setting up the weather service.
This is being done in order to provide necessary weather infor
mation for the operation of trans-Pacific airlines and shipping, as
well as to foster commerce and industry.
An international forecast office will be established at Manila to
make forecasts for trans-Pacific air routes. A sub-forecast center
will be established on Mindanao island.
In addition, the United States government will provide funds
for university training, in meteorology, of Filipinos in this country.
During the first year, 50 Filipinos will receive this training, and 25
each subsequent year, until the Philippine Republic has sufficient
trained personnel to take over the entire meteorological service in
the islands.
The picture of Japan--with which the United States was at war
until little more than a year ago--is more uncertain because of
political considerations. Its industrial position, no doubt, will be
determined largely by how far the Allies sanction recovery there.
Its trade possibilities, of course, are great, if it is permitted to
reach its limits.
Its people are air conscious, and its industrial leaders are well
aware of the importance of commercial aviation.
Needs of the Far East are indeed almost limitless. The prob
lem has been, and is, its ability to pay for what it seeks. Any im
provement in its industrial, financial or farming position means
improvement in its ability to pay.
Such improvement, of course, bears a close relation to the op
portunities of Northwest Airlines, and will no doubt be greatly ad
vanced by the time this airline has completed its preliminary ar
rangements and begins operations there.
As the tempo of improvement steps up and Northwest Airlines
accelerates its service, this company, and the people along the sys
tem will come more fully to realize the trade and travel possibilities
opened up by the new routes. Business firms will turn to the Orient
to establish new contacts or to increase those already established.
Tourists will fly to these distant lands to meet peoples with strange
customs.
The West will come to know the East better; and the East will
get acquainted with the West. The very realization of trade op
portunities will thus improve international relations.
Developments of the past year open new vistas for the future.
Northwest Airlines, with its 18,793 route miles, is now the fourth largest
American air flag carrier.
Its domestic system continues its sound development. During the fiscal year
ending June 30, 1946, its planes carried 460,342 revenue passengers, 292,161,690
revenue passenger miles; 5,261,302 pounds of mail, 4,748,331,780 pound miles;
and 2,770,732 pounds of express, 1,776,888,132 pound miles.
Its international routes hold the promise of great passenger, mail and cargo
business.
Northwest Airlines will continue, in greatly broadened fields, the steady growth
which has characterized it during the twenty years it has expanded from a local
mail contract carrier to one of the world's great airlines.
I'll
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fa ON tmrrr* *** ----
ff
--* r\
Star
Bow Lake
Terminus
Assured
Pnw 3 Cent*
W. Airlines
ithorizedtoFly
rth to Orient
British Locate
Second Cache
-
--- -?**'* ^ ;J-
1 *** * '*- '3* .
Mono mmow ~ " watw, o--aow. mutant wins, mw i. iW~ ~ wHaTSiT
Northwest Airlines Gets
Route to Alaska, Orient
57 BEsaiFn I i *ti ucuit <* ohmum Sootti. Ujttd
As
., imiiQN
Round-the-World Express
The last big chunk of the wor

'
airways -- the trans-Pac
i Orient--was linally p
..vucu out last week by the Civil Ae
tautics Board. Promptly approved
k President Truman, the board's decisi
f will permit air travelers for the
I to go around the wm-M --
North\
,
U," lo the
boned
nz
G 11 Kit
X
NEWS
tLLs
Tribune!
>
forumi
1 ai liixV i -- _
line Ti
^ I
Inland, Coastal, Orient
Routes Win CAB Okay
ChamberHead .1v
r*.
first til
on one ticket.
.
me great circle rou
ew York, Chicago and Seattle v
to Tokyo, Shanghai, Manila
eastern China, and in
west Passage will cut the tlyir
stance front New York to the Orient h
.ooo miles. Northwest also will do moi
of its dying overland, where
reassurin
emergency bases can be built.
u.
H'orid ,
from Kw'vA* "y the
an
Mar
inch
ts
orage
The Weath
lildren in Today's Ti
-
' ' - r, . w wr
t tHM*
AILY TIMES
MINNEAPOLIS
O.K. ORIENT LINE FOR NW
^he Seattle
e*. Ml \-Ifysiy.AVWJf. WA'-H >HtU,r4A`> &U*.5-*r fV* $ Cmt* RSHMMHHHBBHI
N. W. AIR GETS SEATTLE ORIENT ROUTE
We Must Take Chicago Also POLirF r u. er -- * - -
Tr,.m*n Tells FTT
10 Point Job
Preference Is
Not Indtcdled
dvantage ol Gefs Leg Oil
nt Route.. Alaska Link
POLICE CHIEF EXAM RULES HELD
***** 4
vty to Be
Gateway
New Rout]
fan-Am and TWa a
0***-
e
"fl croup
c 5>
TME ^THER
enipii*
_,^cT0056* Bakima Paitn tUpubi
tllf ^ --
1 MILWAUKEE SENTINEL
^
IWfl WMMMfc o S t> At* $ l f (Ift* *'
AttCHOHMiV
East Meats WestAtNew
CrossroadsOfTheWorld IB
OF cm RISE
.saotpm m<
City Get* Air Route to Orient j
_
i
\(T
Nice Going, NWA
NORTHWEST AIRLINES is going back tc
Alaska--back to Mount McKinley and th<
F salmon streams, to the gold fields and th>
^lonely Aleutians.
Northwest men earned a claim to the ne\
assignment when they flew the northern ai
lanes under contract to the army during th
war. They pioneered much of the big plat
transportation to America's largest terrilor;
They flew supplies and personnel for ti
Alaska highway, for the landing strips ov
which lease-lend ships went to Russia, for
thousand defense projects all over the Arcti
They carried mail to the outposts. Throuj
some of the worst weather the universe pr
duces, NWA operated regular schedules 1
tween
Minneapolis and Attu.
Northwest pilots and engineers learned h<
to start their planes in the dead of an Alask
winter, when the tnermometer stood at
below and hangars hadn't yet been built. TI
discovered new ways to de-ice their win
They set up weather stations and navigat
aids. Now, with the award of two routes
Alaska and the long one to the Orient, t
will draw dividends on that experience.
Romance always has been found in tri
portation--river and ocean, road and rail,
latest generation finds that old allure
newed in the air. Far places and sirs
scenes beckon. Soon Northwest will be fl
there, taking off from Wold-Chamberlain
and going to Manila, with stops at Edmor
Anchorage, Tokyo and Shanghai.
The Twin Cities will be on the trade rc
of the world more truly than if they wer.
uated on one of the seven seas. Thanks, N
west Airlines, and good luck!
TXe /tfinit t-tt/rp/n 5/ir ^ $Burnt)
or
ni^r
<>r
"n

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. t.ro * .1. to
Sopt labor 10, 194
Xr. Oroll Hunt.r, ProoUont,
Mart taro store Alrllnoo, Ino.,
1688 UnlT.r.lty Aronuo,
St. Paul 1, Xlnnoaota.
Soar Xr. Hunter:
It Is with genuine pleasure that I extend to
and your Coepany ay heartleet congratulations on
tn!iI'<.r'JntlJt5 AnrilT;r**rI- ^e gratification .
the state of Now fork upon this oooaslon Is enhan
by the reoent opening of the hletorlo northwest
Passage- for the first tins to ooonsrolal elrlla.
operation by the deolelon of the Olrll Aeronaut#
In the Pmclfio Case.
New York has a tremendous stake In iaternat
I?,* S*h ** a trader and as a produoer of go<*
this State are handled more than one-half of Aa<
imports and aore than one-third of all exports,
the Air Age* ahead such service as jour Compan
now certified to extend between Hew York State
Orient will oonstltute an inportent p^j-t of thi
port at ion serrlce for this State.
In these difficult tines oharaoterlted b
national misunderstandings and short-sighted r
it is heartening to witness the inauguration <
serrloe which will bring New York and other a`
the area which you serve so dose to China. J
Korea and the Phillpplnee as well as to our o
Northwest outpost in Alaska. These closer '
go far to build world peaoe upon the firmest
foundations; mutual understanding and ooamoi
ntorSrt,r'in8thJiIlrl^?_?i11* igrot publlo aorrl
gVWE
r^e^i^di!LSn^^
of th. future
" 7011 0odP*<J in
Slnooroly your..
/:*
n***
*zr*& "jzr* *?!***
'vevv /\/r p
hefS' La
Safe M ^Hen/
**?
ft*"*$Sg?tt.Period
! Rent'dt'^rceT^S^J***
to brinp- *
cQipievi eriIls. and fj,
hugh not ni,^ sch
the
^bSrsrJs in
EroS `h,s Sai was ,,
63 "> `fade ^
Great nX ?ati0ns _
SQeve^ Irept in ,
ance ^th
tTth ^thoS Gfern>any^"'. PoHnglfhtln later years
b`tion k "'as but &C3S0^ L"01, S^Uy'Z^0*
ThA
ther KanifiJ*0.1 Japan's pflf,ferent
%Vd0t '***? c* and
f`hiS3a^aTM1" I
*SASuFiSfa* a^netdn0he frade Po
lered
Wv 7,* <vas
fa4LTM from of tlfei^fr to us TM"st be a
as we buv r
ra,sed to the -from wTr^P'es who S" con>e
in
theni- P'nt Wh^h^0n> Pesfea"-
-altyfifat^fnnJ ^tory the f
*"" bu>'
, , ,,
be onetern^e new Seattilu%hed> but
0fhf place
With Partjcipate,n Pu^et SounH^^ at AZrL^118
President f^Petition tn p0st^ar Jin Wl 1 be in a
of^e ^
his aides
and SeneiS ^een it is obSfnsio- Strat^ic
^
achieve th^Ust have drfana^er of 7vrn,iil^bat CroiJ tr
aan,^ Tacma ChC/7 Cr^ta ^ ^^^5
a Jong fhaTPbers of n
too> should Job f sei/in' aod
-
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` 0ne Pacific ZZ,ed
rQ ^h, , >-
t*e fc!!*y flof ie
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^ T *^!'y long
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/or
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pac///e
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ova7
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fr'ehc
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ab/e
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000
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atf/p,
and
.Ports
Steat .^tf
aptf
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and
frfrle
Joi,,
vey
4bcb,
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aiii'ilo
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hey
Scl,
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cnti,
PSft;
8r$
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erne
n*ar
route
thi,
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*nd th
a
^eat
.5rcaUp
ey are
e9uate bon,
Ppes,
frter.
Va''able
'era;
epf
^OVrj
noiv Z^at
this
Pr0.
e>cPa
sPect. great
cau
the Orie;
frS/On
an
^ets
bn
^
J?'**
Pcia cent
r^ii
Ppjch
'*?
a.
p oftie. ,h,. a*
oorrittUty, * --bring AU t*M 1.
of
coemunicatloQ oy 4JJf unions of our
io.rf.cui .FT i. b.for u*. wirf
i
and tbsir neighbor#
plish it rtl7 "** "
V to countIsM n ml]
^nerlcsn wj f Ufe before
.
---i th.1 r
neichbar*. "*
nd well.
i its
twentieth blrtbdsy
Ur.
H--' KVrlin*. "to* to.^lcri^
.o
rc\ ^`1""
sf^gsis35-
opPor HliTrVl**
Congretuleti one to Norths
net Office Dep*rt*srrt joli
tic*
,,..t
-
fr.. Pa tcP
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^/t your
b^io"*1 *ttj"c*
'
4**9^r^r^\"Ve^,re#t '"`I
``"ttuSt*"" the *r ri,,vU*F
o.
^furtt'- l^VSTitSjf
AC*10'
Ahw/
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^te,. -b* fro..
A>ffTfrt>e,
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cooV^oefte C'% S0,,t
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'
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N^^tion .
's a fop J
/the fhe 0/ ">e
'
f"` arou" Cies ,,"* **>* . 4f
"w .fee mute or
fr; frihpot'?'8 /buJ'V-t.
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thse Wh
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t `^pocZ *?* tX:"fr4';
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GoTernor
Significance
The CAB decision puts N'orthwstAir
lines into the big league, making it a
commercial overseas carrier for the first
ttme.
The CAB was told that if American
airlines don't soon start flying the cir
cuit into the Orient, British or Canadian
lines will. One immediate goaf is to ex
ploit the rapidly growing traffic witli
Alaska. The long-term goal is the one
Marco
Polo, Columbus, and other earls
explorers had in mind--a commerciallink
between what always have l>een two
worlds, the West and the East.
Northwest Passage: Croil HunterofSt.
Paul, Minn.,
53-year-old president of
Northwest Airlines, Inc., got theprizehe
had' set his heart on--the right tofly the
Great Circle route by way ofAlaskaand
the Aleutian Islands toTokyoandShang
hai. To complete this global circle,Trans
World Airlines received permission toex
tend its North Atlantic route (News-
|week, July 16. 1945) from itsterminus
at
Bombay, India, toShanghai.Northwest
r will have txvo routes to Anchorage,Alaska
--from New York, Chicago and Minne-
apoIis-St. Paul by wayof Ealmontori,and
an
over-the-water flight from Seattle.
MW? Jva.'X./M
Neighbors Soon
Authorization tor Northwest Airlines to fly
e
northern route between theUnitedStatesand
e
Orient and Alaska i* aboasttotheNorthwest
ctor
as welt as to the company. It was feared
,r
a
while that the only flights permittedover
he
Pacific would be fromCalifornia,thus-divert-
ng
unnecessarily
locally-originated air traffic
jver
the Pacific via Canadian flag lines.
Listed as
co-terminals in the new "horthwest
Passage" of the air are New York. Chicago. St.
Paul,
Minneapolis and finally Seattle. Theline
will wing over the Aleutian and Kurile islanda
and on into Tokyo,Harbin, Mukden,Dairen,Peip
ing,
Seoul, Nanking, Shanghai and Manila,
j.
Northwest has on ordera numberofBoeing's
ftbig
stratolinera and plans to put them in the
Wair on the OrienUl run very soon. Yakima will
W
shortly be a neighbor of the inscrutable people
over the ocean, and we can all butchatoverthe
back fence. yfe
ptyt/y
$t.in
*wvs
1 To1s"'v
To o
' Nort,,em Row,
nwt AksC,
*>om ,,t Fa,
J *te,,.
T\V 4
' ` to Pvt-Azatri.
**P*trh
T0 *ESi
th*
&
*4 T 4c,'h`s
`A*
f JOURNAL
m n u
turn s
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3"
J^rnA.wmmmmx (,,.
EATTLE-FAREASf_PLANE~SinTr
AUTHORIZED FOR N.
WEAWUnI
the billings gazette

IS.AUTHORIZES
NEW AIR LINES
OVER PACIFIC
s
Washifigtofi- Aug< l fA< f'-X
aa
Civil Aeronautics Bourdto-
>TTYTJdsy authorized &0rtfwmiAit
:s%:s
...
T.fSiE
-
ft
*Sr.c Di