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