WESTERN AIR EXPRESS CORPORATION 
I 
Annual Report and 
Financial Statement 
Main Offices: 
Transfer Agents: 
Registrars: 
Auditors: 
I 
- 
GENERAL INFORMATION 
117 West 9th Street, Los Angeles, California. 
Security~First National Bank of Los Angeles, and 
Anglo & London Paris National Bank, San Francisco. 
Citizens National Trust & Savings Bank; Los Angeles, and 
American Trust Company, San Francisco. 
Peat, Marwick, Mitchell & Co. 
 March 16, 1931. 
Stockholders, 
\ 
WESTERN AIR EXPRESS CORPORATION. 
Gentlemen: 
Herewith is submitted 
the annual report on affairs of 
your company for the year ending 
December 31, 1930. 
HARRIS M. HANSHUE,  
President. 
 ( l 
0 N MAY 5, 1930, the original air mail contract on the Los Angeles,..Salt Lake 
City route expired and was replaced by an air mail route certificate which cut 
the per mile revenue from this source by more than fifty per cent. This, coupled 
with the necessity of continuing operations for several months on all routes of the 
system as then constituted in order to protect your interests in potential mail con,.. 
tracts, accounts for the loss sustained. 
By October 1, reorganization of the air mail airway net to conform with the 
Postmaster General's program was effected to the end that your company had ar-- 
ranged to dispose of its holdings on the Southern Transcontinental route and to join 
with Transcontinental Air Transport,..Maddux and Pittsburgh Aviation Industries in 
forming Transcontinental & W esterri Air, Inc., successful bidder on the Central 
Transcontinental air mail route between New York and Los Angeles. In this jointly 
owned operating subsidiary Western Air Express owns approximately 48 per cent. 
Creation of Transcontinental & Western Air, Inc., was, in effect, a merging of 
the Wes tern Air Express lines between San Francisco and Los Angeles and Los 
Angeles and Kansas City with the TAT ... Maddux lines between San Francisco and 
Los Angeles and Los Angeles and Columbus, and the extension of these operations 
from Columbus to New York and between St. Louis and Amarillo over the so,..called 
Tulsa cutoff. While the initial air mail rate on this line is rather low and the ad ... 
vantages of merged operations are just now being reflected in reduced costs, this route 
should shortly become a very profitable venture because of the population it serves, 
climatic conditions along its course and the fact it is somewhat shorter than either of 
the other two Transcontinental lines. With improvement of the airway permitting 
continuous flying and establishment of a twenty ... four hour schedule between Los 
Angeles and New York, an increase in air mail rate is certain and passenger and ex ... 
press volume should be materially increased. These factors will combine to make this 
route profitable. 
Incident to negotiations on participation in this undertaking and anticipating 
the strain it would place upon the company finances, your management arranged for 
General Aviation, aeronautical subsidiary of General Motors, to take a position in 
Western Air Express. This has since been consummated with G~neral Aviation tak-- 
ing 60,000 shares of stock which will be .given effect in the March 31, 1931, state-- 
ment. The financial position and prestige of Western Air Express have been sub-- 
stantially strengthened by this transaction.  
In addition to its interest in Transcontinental & Western Air, Western Air 
Express still owns and operates independently two profitable air mail lines-the Los 
Angeles ... Salt Lake City and the Cheyenne ... Denver--Pueblo routes-and, with the 
transcontinental operation rapidly approaching a profitable footin9, should show satis-- 
factory earnings during 1931. 
 ASSETS 
Current Assets: 
Cash in Banks and on Hand ........................................................... . 
Accounts Receivable - United States Government... 
Other Notes and Accounts Receivable, less Reserve .. . 
Inventories of Parts and Supplies ............................................... . 
Total Current Assets ............................................................................. 
Prepaid Expenses .................................................................................................. . 
Marketable Bonds - at approximate Market Value 
($24,371.19 deposited with United States Post Office 
Department in lieu of Surety Bond)-.: 
Deposit ( 10%) under Contract for Purchase of Airplanes 
( in abeyance pending adjustment and/ or settlement) 
Investments in and Advances to Allied and Auxiliary Com- 
panies - at Cost ......................................................................................... . 
Investment in Transcontinental & Western Air, Inc., 
( Represented by 262,500 shares of Common Stock to 
be received for certain assets in process of trans er 
under contract dated July 15, 1930, and supplemental 
agreements) .................................................................................................. . 
Advances on Notes and Open Accounts (Settlement 
to be effected in Common Stock) ............................................... . 
I 
Airports, Hangars, Buildings, Airplanes, Engines and 
other Equipment ......................................................................................... . 
Less: Reserve for Depreciation ........................................................ . 
TOT AL ASSETS ................................... . 
WESTERN AIR EXPRESS CORPORATION AND SUBSIDIARIES 
CONSOLIDATED BALANCE SHEET 
$2,351,703.50 
325,522.11 
1,117,213.69 
441,292.95 
DECEMBER 31, 1930. 
$ 279,300.62 
155,265.24 
108,687.98 
166,529.25 
709,783.09 
46,857.29 
29,292.57 
30,000.00 
432,991.75 
2,677,225.61 
675,920.74 
$~,602,071.05 
LIABILITIES 
Current Liabilities: 
Notes Payable - Bank ....................................................................... . 
Accounts Payable - Trade: 
Contracts and Other Accounts Payable ................................ . 
Dividends Payable ................................................................................... . 
Accrued Expenses ..................................................................... ~ ................ . 
Total Current Liabilities ........................................................ . 
Due on Purchase of Equipment and Treasury Stock ( Sub- 
sequently liquidated from proceeds of sale of Treasury 
Stock and issue and sale of 50,000 shares of Capital 
Stock) ................................................................................................................. . 
Employees' Deposits on Stock Subscriptions ............................. . 
Def erred Income ..................................................................................................... . 
Reserves: 
For Contingencies ................................................................................... . 
For Maintenance of Airplanes and Engines ....................... . 
Minority Stockholders' Interest in Subsidiary ............................. . 
7% Cumulative Participating Preferred Stock of Sub- 
sidiary Company in Hands of Public ...................................... . 
Capital Stock: 
Authorized, 500,000 shares of $10.00 each .......................... . 
Issued, 160,698 shares .......................................................................... . 
Less in Treasury - 10,000 shares ............................................... . 
Paid-In and Capital Surplus ....................................................................... . 
Earned Surplus ........................................................................................................ . 
Contingent Liabilities: 
Airplane Sales Contracts Discounted ...... $ 33,224.05 
TOTAL LIABILITIES ....................... . 
$ 100,000.00 
19,241.48 
5,000,000.00 
1,606,980.00 
100,000.00 
1,506,980.00 
759,022.92 
731,717.18 
$ 200,000.00 
100,360.54 
66,238.51 
28,727.30 
12,624.55 
407,950.90 
700,000.00 
20,370.24 
10,584.97 
119,241.48 
. 2,103.36 
344,100.00 
2,997,720.10 
$4,602,071.05 
 WESTERN AIR EXPRESS CORPORATION AND SUBSIDIARIES 
CONSOLIDATED PROFIT AND LOSS ACCOUNT 
FOR THE YEAR ENDED DECEMBER 31. 1930. 
( Including Operations of Subsidiaries for the Period since Acquisition) 
Gross Revenue: 
Mail ....................................................................................................................... . 
Passenger ......................................................................................................... . 
Other Airplane Earnings .................................................................... . 
Sale of Airplanes, Parts and Supplies, etc ........................... . 
Gross Revenue ................................................................................ . 
Operating and General Expenses, including Depreciation 
Net Operating Loss .................................................................... . 
Interest and Other Miscellaneous Charges (Net) .................... . 
Loss for the Year ............................................................................. . 
EARNED SURPLUS 
Balance as at December 31, 1929 (as adjusted) .......................... . 
Deduct: 
Loss for Year ended December 31, 1930, including 
Operations of the Aero Corporation of California, 
Inc., for the Period since Acquisition ................................... . 
Provision for Contingencies ........................................................... . 
Dividends on Preferred Stock of Aero Corporation 
of California, Inc., in Hands of Public ................................ . 
Dividends on Capital Stock of Western Air Express 
Corporation (including Dividend Payable February 
1, 1931)  
Balance as at December 31, 1930 ........................................................... . 
To the Board of Directors of 
Western Air Express Corporation 
$ 200,670.47 
100,000.00 
16,326.92 
114,971.70 
$1,673,435.63; 
661,426.88 
109,829.91 
98,909.89 
2,543,602.'31 
2,649,635.8- 
1 
106,033.50 
94,636.97 
$ 200,670.47 
$1,163,686.27 
431,969.09 
$ 731,717.18 
We have examined the accounts of Western Air Express Corporation, and 
its Subsidiaries, Western Air Express, Inc., and Aero Corporation of California, Inc., 
for the year ended December 31, 1930, and report that the accompanying statements 
have been prepared therefrom. In our opinion, the Consolidated Balance Sheet sets 
forth the financial position of the Companies as at December 31, 1930, and the 
Consolidated Profit and Loss and Surplus Accounts the results of the oper~tions 
for the year then ended, including those of Aero Corporation of California, Inc., 
from the date of acquisition to December 31, 1930. 
Los Angeles, California, 
March 11, 1931. 
PEAT, MARWICK, MITCHELL & CO.