Western Air Express Corporation 
and Subsidiary Companies 
ANNUAL REPORT 
1932 
 WESTERN AIR EXPRESS CORPORATION 
OFFICERS 
President .. .. .. .. .. HARRIS M. HANSHUE 
Vice--President  ........ W. M. GARLAND 
Vice--President .............. C. E. WILSON 
Treasurer ............ ,., .... JOHN C. FELLI 
Secretary and Assistant 
Treasurer .................. J. W. MILLER 
Assistant Secretary .... ,., .. L. R. BEARDSLEE 
ALVIN P. ADAMS 
HARRY CHANDLER 
M. C. COOPER 
W. R. FAWCETT 
FRED J. FISHER 
JACK FRYE 
DIRECTORS 
w. M. GARLAND 
HARRIS M. HANSHUE 
E. 0. McDONNELL 
ROLAND PALMEDO 
J. M. SCHOONMAKER, JR, 
C. E. WILSON 
REGISTRARS 
Citizens National Trust & Savings Bank, Los Angeles, California 
STOCK TRANSFER AGENTS 
Security~First National Bank of Los Angeles, California 
AUDITORS 
Peat, Marwick, Mitchell & Co. 
GENERAL OFFICES 
United Airport, Burbank, California 
 April 28, 1933 
To the Stockholders: 
Herewith is submitted the Annual Report upon the affairs of your Company for the year 
ended December 31, 1932. 
The Net Earnings available for dividends from operations of your Company for the year 
1932 amounted to $43,271.44, which is equivalent to 19c per share for 222,811 shares outstand- 
ing as of December 31, 1932. This compares with Net Earnings for 1931 of $193,382.11." 
equivalent to 91c per share for 210,792 shares outstanding as of December 31, 1931. 
Total real estate, plant, and equipment accounts as of December 31, 1932, after deducting 
Reserve for Depreciation, amounted to $435,328.45, a reduction of $19,476.81 from the total 
of these accounts, as of December 31, 1931, of $454,805.26. This decrease is, in the greater 
part, accounted for by deductions for depreciation. 
For the year 1932 charges against income on account of depreciation amounted to 
$180,173.90, compared with $173,131.49 for the year 1931. 
The Net Working Capital, as of December 31, 1932, amounted to $696,336.53 including 
Cash on Hand and in Banks of $677,290.93, as compared to $749,258.45 Net Working Capital 
December 31, 1931, including Cash on Hand and in Banks of $649,121.08. 
For the first seven and one-half months of the past year, the night run between Salt Lake 
City, Utah, and Los Angeles, California, was discontinued by the Post Office Department, 
which curtailment of operations was reflected in the revenues and earnings of your Company 
for that period. On August 15, 1932, the night flight, with mail, was reinstated by the Post 
Office Department and is in operation at present. 
In 1932 the Post Office Department, in line with the general economies put into practice 
by the Government, made various downward adjustments on the mail rates paid air mail oper- 
ators. The lowered rates, together with a considerable decline in mail poundage, reduced 
revenues from mail operations, for your Company by approximately 40% under 1931. Our 
mail poundage decreased from 773,000 pounds in 1931 to 200,500 pounds in 1932. Much of 
this decrease resulted from the fact that our operations, were curtailed for the first seven and 
one-half months of the year. During this period and the remaining four and one-half months 
of the year, the mail poundage of Transcontinental & Western Air, Incorporated, increased, so 
that the loss to your Company was somewhat offset by the gain to this affiliated corporation. 
As a partial offset to the reduced mail revenue, there was an increase of approximately 
$71,000 in Passenger and Express Revenue in 1932 over 1931. 
A preliminary Operating Statement of Transcontinental & Western Air, Incorporated, for 
the year ended December 31, 1932, shows a Net Income applicable to the stock owned by 
Western Air Express Corporation of $159,809.35, which has not been reflected in the Profit and 
Loss account of your Company. 
As a result of general business conditions and contemplated readjustments in all lines of 
business, it is not possible to forecast with any degree of certainty what the conditions of the 
aviation industry as a whole, and your Company in particular, will be during the year 1933; but 
the marked increase in passenger and express business during the year just passed gives promise 
of additional increases in these two branches of your Company's operations. 
Respectfully yours, 
HARRIS M. HANSHUE 
President 
 WESTERN AIR EXPRESS CORPORATION AND SUBSIDIARIES 
CONSOLIDATED BALANCE SHEET 
As at December 31, 1932 
ASSETS 
Current Assets: 
Cash in Banks and on Hand ................................................. . 
Accounts Receivable, less Reserve $27,423.44 ....................... . 
Inventories of Parts and Supplies .......................................... . 
Total Current Assets ............................................... . 
Prepaid Expenses and Def erred Charges ..................................... . 
United States Government Bonds-Par Value 
$24,000.00-Deposited with United States 
Post Office Department ......................................................... . 
Sundry Investments-at Market ................................................... . 
* Investment in Common Stock of Transconti-- 
nental & Western Air, lnc.,-296,825 Shares, at Cost ....... . 
Properties and Equipment: 
Airports and Leases 
Hangars, Buildings, Airplanes, Engines 
and Other Equipment ........................... . 
Less Reserve for Depreciation ................... . 
Unimproved Real Estate ........................... . 
Other Property not used in Operations ..... . 
$ 59,131.95 
611,752.08 
670,884.03 
394,790.25 
276,093.78 
147,876.85 
11,357.82 
$ 677,290.93 
140,724.94 
35,706.90 
853,722.77 
15,754.22 
24,371.19 
13,087.42 
2,720,898.98 
435,328.45 
$4,063,163.03 
* A preliminary Balance Sheet as at December 31, 1932, received from Transcontinental & 
Western Air, Inc., shows a net book value of $2,262,962.42 applicable to the stock owned 
by Western Air Express Corporation (approximately 47% of total outstanding). The 
difference between this figure and the cost of the stock as shown above ($2,720,898.98) 
represents, for the most part, the Company's proportion of operating losses from inception 
to December 31, 1931. According to preliminary figures, the operations for the year ended 
December 31, 1932 resulted in a net profit (see footnote to Profit and Loss Account.) 
LIABILITIES 
Current Liabilities: 
5% Promissory Notes Payable-Due July 1, 1933 ........... . 
Contracts Payable ................................................................. . 
Accounts Payable-Trade ................................................... . 
Accrued Expenses ........... ........................................................ . 
Total Current Liabilities ....................................... . 
5% Promissory Notes Payable-Due July 1, 1934 ................... . 
Reserves for Maintenance of Airplanes and 
Engines, and for Crash Insurance ....................................... . 
Capital Stock: 
Authorized, 500,000 Shares of $10.00 each 
Issued, 234, 102 Shares .............................. $2,341,020.00 
Less 11,291 Shares held in Treasury ....... . 112,910.00 
2,228,110.00 
Paid--ln and Capital Surplus ................................ 1,010,385.73 
Earned Surplus ................................................... . 536,813.37 
Contingent Liabilities-None Reported. 
To the Board of Directors of 
WESTERN AIR EXPRESS CORPORATION: 
$ 42,100.00 
83,638.15 
54,005.27 
15,101.43 
194,844.85 
60,700.00 
32,309.08 
3,775,309.10 
$4,063,163.03 
We have examined the accounts of Western Air Express Corporation and its Subsidiaries, 
Wes tern Air Express, Inc., and Aero Corporation of California, Inc., for the year ended Decem~ 
ber 31, 1932. In our opinion, based on our examination and information furnished to us, the 
accompanying Consolidated Balance Sheet and relative Profit and Loss and Surplus Accounts 
set forth the financial condition of the Companies as at December 31, 1932, and the result of the 
operations for the year. 
Los Angeles, California, 
March 7, 1933. PEAT, MARWICK, MITCHELL & CO. 
 WESTERN AIR EXPRESS CORPORATION AND SUBSIDIARIES 
CONSOLIDATED PROFIT AND LOSS ACCOUNT 
For the Year ended December 31, 1932 
Gross Revenue: 
Mail .......................................................................................... . 
Passenger - 
Other Airplane Earnings ....................................................... . 
Sale of Parts, Supplies, Labor, Rentals, etc .......................... . 
Gross Revenue ....................................................... . 
Operating and General Expenses ...................... $ 721,785.33 
Depreciation ................. ~............ 180,173.90 
Net Operating Profit ........................................... . 
Interest and Discount Earned, less interest 
Charges ....................................................... . 
Discount on Long Term Debt Retired ........... . 
Sundry Income ................................................... . 
Miscellaneous Charges ( excluding Losses 
charged to Special Reserve in amount of 
$120,011.25)  
Net Income, before deducting Loss 
10,696.97 
11,345.21 
25,039.67 
47,081.85 
9,583.08 
of Aero Corporation of California, 
Inc., ( a Subsidiary) ........................................... . 
Loss of Aero Corporation of California, Inc., 
( a Subsidiary), excluding Liquidation Losses 
Charged to Special Reserves in amount of 
$147,817.92 ............................................................................. . 
$ 774,618.24 
150,241.42 
6,520.38 
3,782.75 
935,162.79 
901,959.23 
33,203.56 
37,498.77 
70,702.33 
27,430.89 
Net Income .............................................................. $ 43,271.44 
A preliminary Income Account for the year ended December 31, 1932, received from Transcon~ 
tinental & Western Air, Inc., shows a net income applicable to the stock owned by Western 
Air Express Corporation of $159,809.35, which has not been reflected in the above Profit 
and Loss Account. 
 WESTERN AIR EXPRESS CORPORATION AND SUBSIDIARIES 
EARNED SURPLUS 
Balance as at December 31, 1931................................................ $ 495,494.29 
Add: 
Net Income for the Year ended December 
31, 1932 :........................ $ 43,271.44 
Adjustment for Excessive Depreciation 
taken in Prior Years ............................. . 61,063.67 
Unused Portion of Reserve for Contingen-- 
cies ........................................................... . 36,983.97 
Deduct Loss on Settlement of Airplane Pur-- 
141,319.08 
636,813.37 
chase Contract .................................................................... 100,000.00 
Balance as at December 31, 1932 ............................................ $ 536,813.37 
CAPITAL SURPLUS 
Balance as at December 31, 1931.. .............................  
................... $1,010,285.73 
Add Discount on Preferred Stock of Aero Cor-- 
poration of California, Inc . ( a Subsidiary) 
Purchased ................................................................................ 100.00 
Balance as at December 31, 1932.................................................. $1,010,385.73