Western Air Express Annual Report 1926

Januz r? 31, 192h. 1
Stockholders,
WESTERN AIR EXPRESS, Inc .
Gentlemen:
Herewith is submitted the annual report on affairs of your
company for the year ending D3eembar 31, 192b .
Our last report to you v~.s under date of September 1, 1926, at
Nhich time we advised that rrss tern Air Express, Inc . had reached a
modestly profitable footing~ !foe accompanring financial statement
indicates a steadily increasing improv3mant in cash position.
The op 3ration both from a standpoint of mechan ical performance
and in revenue production has continued satisfactory and your
company still oaintains its position as the world's ~ost uccessful
commercial air transport line .
Harris M. Hans:-me ,
President .
'
FINANCIAL STATEMElff
ASSETS LIABILITIES
Current ...... .. ... .. $172,899.21
Fixed (cost)......... 192,021.89
Deferred Expense.... . 29,841.16
Current. ... .. . . . . . . .. . . $ 11,338.07
Reserves
(Depreciation) ....... .
(Collision Insurance) .. .
37,250.00
34,000.00
Capital ~tock Issued ... 283,500.00
Undivided Profits...... 28,674. 19
TOTAL ASSETS ....... $394,762 .26 TOTAL LIABILITIES .... $394,762 .26
OP EBA THTG s TA TEM
ENT
REVENUE EXPENSES
M
ail. ........ ........ $199,777 73 Overhead. . . . . . . . . . . . . . . $ 41,403. 89
Express ............. . M
aintenance-Fields ..... . 8,004.43
Passengers .. ..... .... . 9,017 .30 II -Equipment.. . 24,281.00
Special Service . .... . 3,600.00
TOTAL OPE~4 TING
Transportation ... .. ...
Communication . ......... .
Depreciation ........... .
Insurance
(Collision) .......... .
37,416. 55
4,835.30
37,250.00
34,000.00
REV
E11UE :.. ,: ...... $212 , 546 70 EXPENSE. . . . . . . . . . . . . . $187,191. 17
NET OPERATING PROFIT ......... $25,355.53
M
ISCELLANEOUS REVE11UES...... 4,389 .,&,
29,745.39
LESS CHARGE O
FF DEFERRED
EXPENSE ..... .... 1,071.20
SURPLUS - ~TET PROFIT ........ $28,674. 19
M
iles flown ...... 328,892 ~ost per m
ile
Operating profit per mile ............... .
Net profit per mile .... .. .. . ............ .
$ .4657
$.0771
$.0904
,
.,,.
..
GENERAL ST.A TEMENT
Pursuant to wishes of the Stockholders as indicated at the special
Stockholders' meeting held December 14, 1926, your Board of ~irectors instructed the
President to submit a bid on the air mail contract from Chicago to San Francisco.
Efforts of the Directors and Officials of W
estern Air Express, Inc. have since been
directed largely to~vard negotiation of that contract. This has been attended, howeve~
b? no loss either in efficiency of operation or in g1'"owth of business on the Los
Angeles to Salt Lake City airway.
ADMINISTRATIVE
Administration of Western Air !Lxpress , Inc. has continmid policies and
practice with which you are already far:.iiliar.
Our planes ha.ve flown an agg:r3gate of 328,892 miles with a performance
record unequaled by any similar ope~ation an:rwhere. The per mile cost of $.4657 is
exceptionally low in comparison to th3 figur0s for comparable operations elecwhore.
This, coupbd with the ~~c~ll::mt p~rformancc, b3Sp<Jaks the ~fficL:mcy of t'he opGrat-
ing and mechanical d9partmcnts.
Mail volume has steadily increased until :or December the average daily
load (both 1.,vays) was 376 poundQ as compared with 238 pounds for M
a.;r, the first full
month of operation. Passenger and special service have continued to contribute
materially to the monthly revenue. On FerDary 1, a universal air mail rate of 10
per half ounce goes into effect. This should i~crease poundage but will not affect
the rate at which we are paid.
For purposes of fully protecting rour interesta a strong reserve for
collision insurance has baen built up out of the monthly earnin08.
OPEF.ATIVE
Des~ite the severities of weather incident to winter flying Wastern Air
Expre!s, Inc. planes have maintained sched~le on the Los Angeles to Salt Lake City
airway with almost unbroken regularity. This muGt be attributed largely to the skill
and loyalty with which both pilots and mechanics have attended to their sevaral dutie ~
No serious mishaps have occured and on only two occasions have there been
delays in dispatch of the mail attributable to the fault of this company, its e~uip-
ment or employee8.
This performance has not been ap~roached by any other operator over a
similar period yet, barring possibilities of unavoidable accidents, we may expect to
complete our first year without najor mishap.
TRAFFIC & P-BLICITY
This department has continued its educa tiono.l propaganda and has sho7m
consistent gains in business since inception of the line . . The aoundness of the
company' 1 policy on public relation3 e.nd 1.)uoinesa solicitation is evident from the
result . From a. daily average of 220 pounds for the last thirteen days of April, the
daily averages per month have been as follows: May , 238; June, 258; July, 255;
August , 270; September, 287; Oct ob r , 307; November, 294; December, 376.
ACCOUNTHT
G
The cash position of Western Air E:cpress, Inc. is unusually good and is
improving monthly . The reserve for Crash Insurance is sound policy 3ince heavy
premium demanded by underwriters makes such surety prohibitive, while we are able
to set up the reserve from earnings.
..
IT