mm 
W 
-T 
9t 
61 
9Z6I 
 * . j 
t6l iibi 7*61 )6I 
0*61 
 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 
m 
yiottt 
Vox 
YU' 
\0 
\P& 
 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 
Hllf KUUIt 
aiBUNE 
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 
 
* or ,,, 
^ l,Tei*`,= ^1^. r 
to *K 
* s> 2o wfsfc t 
ay...,; "' . 
'* Jx>t. 
> 
ViySsr.- 
T.*U: 
3>*r*tl 
1 * 
*> 
r 
V 
i4 
.^r**= 
"W* 
y&e> I. 
^ *^v*j <? *. !!**.";iOr** 
L^`Lr -. 
--^ ** 
J'oujT tK, ""atg 
"* ^; 
'it. 
.*" :`.'U; 
1 *. fet. 
tZ!*Tau~Z'Z. '* 
- 
*f *m 
,`> i ,r  *- 
5li.: 
>C*4l 
iit 
ctr*rT 
5r 
:V- ^.~*rjr-;tsr 
. 
rM@t ' of ir ''triirli* ' * 
n v 
'**?**'$" 
__ 
of u`, o4a>f "ITt ** '** 
cl**** 
*j 0 ***' --. Foot* 
"-s^Ss22'$n^,;s;' 
-fS?-g&g&s*L.ar 
ss?- " 44* -isz&iz?, 
-* 
*" '"o o-^.^o*1* L 
. 
. 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*"*$Sg?tt.Period 
! Rent'dt'^rceT^S^J*** 
to brinp- * 
cQipievi eriIls. and fj, 
hugh not ni,^ sch 
the 
^bSrsrJs in 
EroS `h,s Sai was ,, 
63 "> `fade ^ 
Great nX ?ati0ns _ 
SQeve^ Irept in  , 
ance ^th 
tTth ^thoS Gfern>any^"'. PoHnglfhtln later years 
b`tion k "'as but &C3S0^ L"01, S^Uy'Z^0* 
ThA 
ther KanifiJ*0.1 Japan's pflf,ferent 
%Vd0t '***? c* and 
f`hiS3a^aTM1" I 
*SASuFiSfa* a^netdn0he frade Po 
lered 
Wv 7,*  <vas 
fa4LTM from of tlfei^fr to us TM"st be a 
as we buv r 
ra,sed to the -from wTr^P'es who S" con>e 
in 
theni- P'nt Wh^h^0n> Pesfea"- 
-altyfifat^fnnJ ^tory the f 
*"" bu>' 
, , ,, 
be onetern^e new Seattilu%hed> but 
0fhf place 
With  Partjcipate,n Pu^et SounH^^ at AZrL^118 
President f^Petition tn p0st^ar Jin Wl 1 be in a 
of^e ^ 
his aides 
and SeneiS ^een it is obSfnsio- Strat^ic 
^ 
achieve th^Ust have drfana^er of 7vrn,iil^bat CroiJ tr 
aan,^ Tacma ChC/7 Cr^ta ^ ^^^5 
a Jong fhaTPbers of n 
too> should Job f sei/in' aod 
- 
s~Xfc,,'&w 
^ . 
` 0ne Pacific ZZ,ed  
rQ ^h, , >- 
t*e fc!!*y flof ie 
^ V 
^ T *^!'y long 
/l" 
^ c> 
4ej 
Ce^l, 
Vlije 
'Wig/ 
/or 
aUc* a 
^tVa, 
toiin. 
pac///e 
le*at, 
rVo. 
iona/ 
aPpr 
Port 
^P^ayjes 
' 
V 
Uejv. 
m, 
cgj;. 
ova7 
/or 
C0/J)C 
Pots 
t/ie 
iwSST 
^erf Xn 
c^r,rze^t 
4/a 
frfio/j. 
fr'ehc 
OVey. 
va^. 
2l, 
ab/e 
;^ar, 
000 
``ons. 
*st ;;re(asf, 
Oi* 
w 
Ctb(. 
Se. 
atf/p, 
and 
.Ports 
Steat .^tf 
aptf 
ssen 
'^eps 
''ia 
c'>c/e 
Af< 
lan^iia 
17/ia 
and 
frfrle 
Joi,, 
vey 
4bcb, 
V9mt 
Oose 
<>! U;,, 
'C 
aiii'ilo 
aepo 
^etf. "?`tca; 
ttifo 
hey 
Scl, 
JO, i9,, 
?ctMe 
a'rPor 
cnti, 
PSft; 
8r$ 
Pcnta 
'Par, 
erne 
n*ar 
route 
thi, 
`Pipo 
Cem, 
*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 
,r. 
^/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/ 
A.V; ^uVVr/y 
^te,. -b* fro.. 
A>ffTfrt>e, 
I 
I K^eO^ ^et-1 
| s^ew"-10oi .I 
I ^o^ttstvc* ^es V0 ^iot^ 
cs' r*\tC'c .aO^ _\*\0^' ^ 
0^e fl 
i tsot^ 
cooV^oefte C'% S0,,t 
- 
^V*%^ ^of tjSo : 
V ` ^n . 
IT^ Stt"^ oi %et- I 
s V ^ \3t\<ie \oP"T . \\tv^ 0t\ ^ ..es^ 
f D,,c 
o'v:: <f, ^ y 
c*' 
>''V'"!w b*A aVY\* ottts \i ^ 
?^0^oTe'J'oV''.cc* ^ citlcriA ^^ct? cet','cC 
' iCn P d 
cCT'J' . vc VO C d\lV' . 
,,nvi s . 
' 
. 
.,,ur\ ` :A N'T ona0^ rt^c" .-..vicA 
v,Qo' 
/ /he 
N^^tion . 
's a fop J 
/the fhe  0/ ">e 
' 
f"` arou" Cies ,,"* **>* . 4f 
"w .fee mute or 
fr; frihpot'?'8 /buJ'V-t. 
^tzntly Sts for e... 
thse Wh 
CnSratu] '' 
t `^pocZ *?* tX:"fr4'; 
froatt v a 
?e'o -oeo 
?;****, Zn 
*A 
aeVlonI* 
^c~ 
eso 
c 
^*U** 
iugu.l ... d9'^ 
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 
.gJMM -- 
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