Southern Airways Annual Report 1950 [Fiscal Year]

mEnT.
Page Two
OFFICERS
FRANK W. HULSE, President
IKE F. JONES, Vice-Pres;dent
ToM D. EvE, Vice-President, Traffic and Sales
GEORGE F. ESTEY, Secretary-Treasurer
CECIL A . BEASLEY, JR., Assistant Secretary
W. B. WHITE, JR., Assistant Secretary
F. L. McLEOD, Assistant Treasurer
DIRECTORS
CECIL A. BEASLEY, JR., Attorney
Kilpatrick, Ballard & Beasley
WASHINGTON, D. C.
ROBERT Z. CATES, President
Arkwright Mills
SPARTANBURG, S. C.
FRANK W . HULSE, President
Southern Airways, Inc.
BIRMINGHAM, ALA.
BIRNEY IMES, ]R., President
The Commercial Dispatch
COLUMBUS, MISS.
HENRY P. JOHNSTON, Executive Vice-President
The Birmingham News Company
BIRMINGHAM, ALA.
IKE F. ]ONES, Vice-President
Southern Airways, Inc.
AUGUSTA, GA.
ARTHUR M. SPIES, JR., A ssistant to the President
Meyer Hotels
BIRMINGHAM, ALA.
ELTON B. STEPHENS, President
Elton B. Stephens Associates
BIRMINGHAM, ALA,
ERNEST H . WOODS, President
Liberty Motors, Inc.
BIRMINGHAM, ALA .
. STOCK TRANSFER AGENT
The First National Bank of Birmingham, Birmingham, Ala.
GENERAL OFFICES
Municipal Airport, Birmingham, Ala.
OPERATIONS HEADQUARTERS
Municipal Airport, Atlanta, Ga.
Southern Airways, Inc., is one of America's new-
est certificated airlines. The company provides
daily scheduled airline service to 20 cities in
seven Southeastern states. Our general offices
are in Birmingham, Ala. Traffic, sales and opera-
tions are conducted from the Municipal Airport
in Atlanta, Ga. At present, two daily round
trips are provided between Memphis and Char-
lotte, and between Atlanta and Jacksonville.
Atlanta to Columbus, Ga., receives three daily
round trips, while Columbus, Ga.-Charleston,
S. C., receives one daily round trip. This service
involves almost 5,000 miles of daily scheduled
flying.
On January 5, 1944, we filed an application
with the Civil Aeronautics Board for the right
to establish a system of feeder airline routes
throughout the South. After more than five years
of studies, hearings, and other procedural steps,
our award for the system presently operated be-
came effective on February 8, 1949, when we
were granted a Certificate of Public Convenience
and Necessity to provide service to 23
cities, covering 1,332 route miles. Three of
these cities, namely Tupelo, Miss., Rock Hill and
Orangeburg, S. C., are not presently being served
A
YEAR OF
ACHIEVEMENT
because of inadequate airport facilities. It is con-
templated that service to Tupelo will commence
in the fall of 1950.
On June 10, 1949, scheduled service was
inaugurated between Memphis and Atlanta with
one daily round trip. On June 25 the Atlanta-
Jacksonville segment was activated with one
daily round trip. On July 5 service was increased
to provide two daily round trips between Jack-
sonville and Atlanta. On August 5 service was
started between Atlanta and Charlotte with two
daily round trips. The final segment, Columbus,
Ga., to Charleston, S. C., was activated on Sep-
tember 15.
A pre-inaugural flight was operated over each
segment of our system shortly before scheduled
service began. Prominent citizens from each of
the communities were carried on these flights,
which received extensive press and radio pub-
licity.
Shortly after inauguration of service over our
complete system, we were granted instrument
flying authorization, which made our operations
much more dependable. Early in January we
were approved for the use of the Instrument
Landing System, which has enabled us to operate
Page Three
under the same weather conditions as the older
airlines that have been serving this area for years.
Of the 20 communities served by Southern,
seven had never received scheduled airline serv-
ice before. These are: Athens, Ga.; Moultrie,
Ga. ; LaGrange, Ga.; Gadsden, Ala.; Tuscaloosa,
Ala.; Greenwood, S. C., and Columbus, Miss.
We are proud of the fact that we have placed
these cities on the airline map of the world.
Southern has applied for additional routes to
round out local coverage of the South. It is
hoped that we will be approved for service into
New Orleans and other Mississippi Valley
points during the summer of 1950.
It is gratifying to know that in the short
twelve months that we have operated, Southern
Airways has become an integral part of the
ToM D. EvE
Vice-President,
Traffic and Sales
Joined Southern Airways Com-
pany in 1941. Managed Augusta,
Greenville, Charlotte, Atlanta
operations. Prior to this he had
obtained commercial pilot's rat-
ing. In 1949, was named vice-
president, Southern Airways. Inc.,
and was active in financing of
new company.
F. 1. McLEOD
Assistant Treasurer
Has wide experience in Airline
accounting procedures. Formerly
with Chicago & Southern Air
Lines, Colonial Airlines, Con-
solidated Aircraft, and Florida
Airways.
Page Four
commun1t1es which we serve. In addition to the
cities that have never enjoyed scheduled airline
service before, we have opened new markets and
new opportunities for many other cities. At least
one new industry has been brought into the area
by Southern Airways.
The 215 employees working for Southern are
all young, energetic, and specialists in their re-
spective fields. Every one of them is anxious to
provide you with the safest, most convenient
and dependable service possible.
June 20, 1950
Respectfully yours,
HUGH
w. DAVIS
0 perations Manager
Active in aviation for 16 years.
Associated with TWA, the Civil
Aeronautics Adm., Colonial Air-
lines, and Robinson Airlines, be-
fore joining Southern Airways.
Now has charge of all Southern
operations.
GEORGE F. ESTEY
S ecretary-T n:as urer
Has 25 years of auditing and
accounting experience. Joined
Southern Airways in 1945. In
1948 he was named secretary-
treasurer.
1949
AIR
PASSENGEHS
June
July
Aug.
Sept.
Oct.
Nov.
THROUGH
POUNDS
AIR
MAIL
THROUGH
POUNDS
AIR
EXPRESS
THROUGH
Dec.
Jon.
feb.
Mar.
Apr.
1950 May
1949 June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jon.
Feb.
Mor.
Apr.
1950 Moy
1949 June
Jufy
Aug.
Sept.
Oct.
Nov.
Dec.
Jon.
Feb.
Mar.
Apr.
1950 Moy
YOUR COMPANY'S PROGRESS
CUMULATIVE TOTALS - MONTHLY FROM JUNE 1949 - MAY 1950
0 6,250 12,500 25,000
21737
0 100 000 200000 300,000 400,000
100 000 200000 300000 400000
158 778
181,039
201,280
231 819
314,947
BUILDING
THE SOUTHEAST
INDUSTRY-The growth of Southeastern industry is one of the most
phenomenal in the history of American business. Manufacturing plants from
crowded eastern areas find climate and labor conditions ideally suited to
their requirements.
Columbus, Mississippi, for example, was selected as the location of a great
nursery company's operations because Southern Airways service was available.
More and more industries are choosing Southern sites with air service.
AGRICULTURE-The once bare and eroded Southeastern cotton fields have
now become green and verdant due to the diversification of crops. No longer
a one-crop economy, Southern agriculture is keeping up with the growth of
industry in the southeast. Southern Airways expedites the sale of farm produce,
helps the farmer travel so he may broaden his markets and shop in larger
centers.
BUSINESS--Retail stores reduce inventories with Southern Airways service.
Air parcel post, air express and air mail help move goods faster between
factory and consumer. Retail stores benefit through rapid turnover and reduced
inventory. A jeweler in Gadsden, Ala., says it saves money to have air service
because, "I can get goods from almost anywhere in less than one day."
FINANCE-Southern Airways carries a record volume of air mail, much of
it money in the form of checks. Checks clear faster and the rapid exchange
thereby expedites many business transactions. Checks, drafts, bonds, and stocks
are taking wings and flying to work on Southern Airways.
RECREATION-The week-end vacation has come to the Southeast. With
Southern Airways service, hours and days are added to holidays. The farmer or
merchant and his family in the mid-South can go to the mountains or to the
beach in a couple of hours, and the business man can commute between vacation
spot and office.
SOUTHERN AIRWAYS
Helps Build Business In Twenty Leading Southeastern Cities
Offering Scheduled
Airline Service to
More Than 2 Million
People.
Annual Retail Sales
of Cities Served Are
More Than 2 3/4
Billion Dollars.
~
I ~
Jouthern
AIRWAYS
BIRMI GHAM
Alabama
Beautiful industrial city-the
"Pittsburgh of the South."
One of the leading manufac-
turing, and trading centers of
the South, with great natural
mineral reserves. Serves as a
wholesale market for more
than 2 million people m a
radius of 150 miles.
CHARLOTTE
orth Carolina
"Queen City" of the Caro-
linas, and the largest city in
both states. Dist rib u ti on,
manufacturing, and financial
center of a rapidly expanding
region. One of the 25 largest
markets in the U. S. 360
Charlotte manufacturers em-
ploy more than 20,000 people.
Page Eight
TU CALOO A
Alabama
County seat; industrial, chemi-
cal, agricultural, mining, and
educational center. The Uni-
versity of Alabama is one of
the great institutions of higher
learning in the South.
COLUMBUS
Mississippi
An important center of
trade, agriculture, and rn-
d ustry for a large area be-
tween Memphis and Birm-
ingham. A true city of The
Old South. Now has 40 di-
versified industries. A vari-
ety of crops, chiefly cotton,
are grown rn Lowndes
County.
Page Nine
SOUTHERN AIRWAYS IS
IT IS THE BUSINESS OF THE MANUFACTURER AND WHOLESALER . . .
Southern Airways is, of course, a large purchaser of the supplies and materials
necessary to operate an enterprise of its kind. Too, other manufacturers and
distributors are interested in Southern as a means of rapid shipment of their
goods, and expediting other phases of their activities.
IT IS THE BUSINESS OF THE LOCAL BUSINESSMAN ...
Southern employees buy locally for their own needs, and retail merchants
benefit accordingly. Other businessmen engaged in serving the traveling public,
such as restaurants, hotels, and cab companies, also profit from air travel.
IT IS THE BUSINESS OF THE FARMER ...
Farm income in the South trebled in nine years from $2.5 billion in 1940 to
$9.6 billion in 1948. Many factors, among them mechanization, crop diversi-
fication, and the development of rural markets through improved air transport,
have brought about this rural prosperity, which is of course reflected in the
town and cities of the South.
IT IS THE BUSINESS OF THE SOUTHERN FAMILY .
Page Ten
The family living on the farm or in town is now only a few hours away from
the recreational, business, and shopping centers of the South. (In fact, each
city served by Southern is now no more than 65 hours away from any point
in the world served by scheduled airlines.) Beaches, mountains, resort areas
of all kinds are as close in distance as in time, and Southern families are
making new neighbors of those living everywhere in the Southeast.
EVERYBODY'S BUSINESS
IT IS THE BUSINESS OF SOUTHERN AIRWAYS EMPLOYEES ...
Southern Airways is a Company of men and women dedicated to building their
country and their company. Southern Airways is truly their company-50o/o of
the pilots, ticket agents, office personnel and other employees have invested
their savings in company stock so that modern air transportation might be
available to Southern cities.
C. W. BRADFORD
Chief Pilot
E. A. BosTLEMAN
Superintendent of Communications
F. A. SHINE
Manager of Schedule and Tariffs
R. w. HUNT
Manager of Traffic and Sales
Page Twelve
T. R. FOSTER
Superintendent of Maintenan
C. M. DEKLE
Chief Dispatcher and
Superintendent of Stations
ASSETS
CURRENT ASSETS:
Cash on Hand and in Banks ................................. $ 68,248.97
U. S. Government Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300,000.00
Accounts Receivable..:_U. S. Mail Pay . . . . . . . . . . . . . . . . . . . . . . . . . 98,101.16
Other Accounts Receivable and Notes Receivable . . . . . . . . . . . . . . . . 50,094.69
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64,378.66
Total Current Assets .................................. $ 580,823.48
Additional Mail Revenue Due From U.S. Post Office Department .... $ 287,834.41 *
Investments and Special Funds ............................... . 511.00
Operating Property and Equipment ......... $616,074.06
Less: Reserve for Depreciation .......... 207,729.48 408,344.58
Prepayments and Deferred Charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159,482.87
TOTAL ASSETS ........ : ....................... $1,436,996.34
*Represents net operating costs, extension and development expenses which are considered to be
minimum additional amount reimbursable by the U. S. Post Office Department upon establishment of
a permanent mail rate by the Civil Aeronautics Board. It is expected that the permanent mail rate
will include a reasonable profit. No such profit, however, is reflected in this statement.
LIABILITIES
CURRENT LIABILITIES:
Notes Payable ............................................ $ 169,467.93
Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125,682.24
Other Current and Accrued Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . 94,948.91
Total Current Liabilities ................................ $ 390,099.08
Deferred Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95,637.57
Long Term Debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 475,776.60
CAPITAL AND NET WORTH
Capital Stock: Common, $3.00 par value;
Outstanding 164,223 1/ 3 shares ......................... : $ 492,700.00
Surplus ......................... ....................... (17,216.91)
Total Capital ......................................... $ 475,483.09
TOTAL LIABILITIES AND CAPITAL .............. $1,436,996.34
Page Fourteen
REVENUE
Passenger ............................................... $ 208,824.49
U. S. Mail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,007,958.36
Air Express ............................................. .
Excess Baggage .......................................... .
Incidental .............................................. .
10,030.29
1,084.04
2,284.54
Total Revenue ................................... $1,230,181.72
OPERA TING EXPENSES
Flying Operations ......................................... $ 703,558.04
Depreciation Flight Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81,895.38
Ground Operations .................. . . . . . . . . . . . . . . . . . . . . . 230,469.09
Indirect Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87,123.30
Passenger Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,407.92
Traffic and Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114,276.72
Advertising and Publicity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46,978.00
General and Administrative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130,977.17
Ground Equipment Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,889.07
Total Operating Expenses .......................... $1,453,574.69
Net Operating Profit (Loss) . . . . . . . . . . . . . . . . . . . . . . . . (223,392.97)
Non-Operating Income (Expense) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 68,940.27)
Net Profit (Loss )-Based on Present Mail Rate . . . . . . . . . . . . . . . . . . . . . (292,333.24)
Minimum Additional Amount" Reimbursable
Upon Establishment of a Permanent Mail Rate . . . . . . . . . . . . . . . . 287,834.41 *
Net Loss: After Additional Anticipated Revenue ........... . ( 4,498.83)
* It is expected that the permanent mail rate will include a reasonable profit. No such profit, however,
is reflected in this statement.
Page Fifteen
"Your Service In The South"
~~~~==---
A YEAR OF
TO STOCKHOLDERS, CUSTOMERS AND FRIENDS:
Since the preparation of our first report to you, the Civil Aeronautics
Board has approved our application for additional service in the lower
Mississippi Valley area. This will give us a total of 2,122 route miles be-
tween 31 cities in 8 southeastern states. The map below shows our expanded
system, and also Tupelo, Mississippi to which service will begin shortly.
The additional mileage will enable us to operate more economically and
to provide better service for the entire area which we serve.
Service to the newly approved area will be inaugurated as rapidly as
equipment can be obtained and installations made. The company expects to
provide two daily round-trips over all of the new routes before the end
of 1950.
The extension of our system reaffirms the confidence of the Civil
Aeronautics Board in the South and in Southern Airways.
Re