Western Air Express Corporation 
and Subsidiary 
ANNUAL REPORT 
1 935 
 WESTERN AIR EXPRESS CORPORATION 
OFFICERS 
President ,., ,., ,., ,., ,., ALVIN P. ADAMS 
Vice--President ,., ,., ,., ,., ,., ,., C. N. JAMES 
Secretary and 
Treasurer,.,,.,,., L. H. DwERLKOTTE 
Ass't. Secretary ,., ,., ,., ,., E. H. BROWN 
ALVIN p. ADAMS 
w. G. BURHENN 
DIRECTORS 
L. H. DWERLKOTTE 
HAROLD P. FABIAN 
C. N. JAMES 
REGISTRAR 
Citizens National Trust & Savings Bank, Los Angeles, California 
STOCK TRANSFER AGENT 
Security--First National Bank of Los Angeles, California 
AUDITORS 
Peat, Marwick, Mitchell & Co. 
GENERAL OFFICES 
Union Air Terminal, Burbank, California 
 March 10, 1936 
To the Stockholders: 
There is submitted herewith consolidated profit and loss statement of your company for 
the calendar year 1935, together with a consolidated balance sheet of the company and its 
subsidiary as of December 31, 1935, to which is appended the report of Messrs. Peat, Marwick, 
Mitchell & Company, the accountants for your company. 
Operations for the year resulted in a net loss of $8,188.41 after depreciation charges of 
$71,108.82 and taxes. This compares with a net loss in 1934 of $153,509.70 after depreciation 
charges of $62,348.54 and taxes. The 1935 profit and loss statement reflects the absorption of 
substantial charges of a non~recurring nature. 
The improved operating statement is principally accounted for by three factors: First, air 
mail revenues showed a substantial gain, increasing from $172,007.21 in 1934 to $289,763.45 in 
1935. This resulted from the authorization by the Post Office Department of a second schedule 
between Los Angeles and Salt Lake City on February 15, 1935; and from an increase on 
March 1, 1935 in air mail rates by the Interstate Commerce Commission, from 24c per mile 
under the contract rate to approximately 33~ 1/3c per mile. 
Second; passenger revenues over the San Diego~Los Angeles~Salt Lake City route broke 
all previous records, totaling $269,367.51 for 1935, as compared with $182,777.23 in 1934, and 
with $226,912.16 in 1933, the previous high record. This improvement for the past year resulted 
from (a) an increase in air travel generally; (b) the standardization of our service with that of 
United Air Lines both as regards flying equipment and passenger service, in order to offer a 
through standard service CoasMo~Coast; (c) an intensive traffic solicitation and advertising 
program; (d) the scheduling of daylight flights over Boulder Dam; (e) considerably faster 
services inaugurated during the year by your company and United Air Lines; (f) the addition of 
a third round trip passenger and express schedule during the summer months; and ( g) institution 
of schedules better adapted to meet the needs of the traveling public. 
Third; in spite of an increase of 24.5% in revenue miles flown from 974,432 in 1934 to 
1,213,724 in 1935, operating expenses increased only $35,611.11, or 6.7%. As a result, operating 
costs per mile were reduced to 46.6c from 54.5c. It is interesting to note that although passenger 
and express revenue increased $90,445.95, or 45.1%, traffic and advertising costs increased only 
$2,034.95, or 6.4%. A saving in General and Administrative expenses in 1935 was effected of 
$41,832.56 from 1934, a total of 42%. 
Since the first of the year notes payable in the amount of $48,568.46, representing the 
unpaid balance on equipment purchases, have been paid. 
The following operating statistics reflecting the improvement in business over the previous 
year are of interest: 
Revenue Miles Flown ___ 
_ 
_________ _ 
% of Scheduled Miles Flown 
Revenue Passengers Carried _ 
__ _ 
Revenue Seat Miles _____ 
_________ 
_ 
_ 
Mail Pounds Carried ______________ 
_ 
Express Pounds Carried _______ 
_ 
_ 
_ 
1935 
1,213.274 
99.09% 
13,736 
4,915,129 
298,287 
198,389 
1934 
974,432 
94.65% 
7,401 
3,336,738 
208,197 
73,158 
% Increase 
24.51 
4.69 
85.60 
47.30 
43.27 
171.18 
Your management is looking forward to further improvements in 1936. An additional gain 
in air passenger travel in general is anticipated. By improvement in service and additional 
selling features, it is hoped your company will be able to participate materially in this 
development. 
Respectfully yours, 
AL VIN P. ADAMS 
President 
 WESTERN AIR EXPRESS CORPORATION AND SUBSIDIARY 
CONSOLIDATED BALANCE SHEET 
As at December 31, 1935 
ASSETS 
Current Assets: 
Cash in Banks and on Hand_____ 
___ 
____________ 
______________ 
______ 
______ 
______ $ 82,400.07 
Notes Receivable ____ 
______________________ 
______________ 
_________________ 
____ 
_ 
_ 
__________ _ 
Accounts Receivable, less Reserve of $5,098.17 _________ 
_____ 
_______ 
_ 
Accounts Receivable from United States Post 
Office Department under old Air Mail Contract __________ 
_ 
_ 
1,854.70 
48,219.60 
50,711.43 
Total Current Assets -------------------------------------------------- 183,185.80 
Inventory of Parts and Supplies, less Reserve of $5,875.93 ________ 
___ _ 
Prepaid Expenses ------------------------------------------------------------------------------ 
United States Government Bonds and Notes ( Par Value 
$35,000.00) deposited with United States Post Office 
Department -------------------------------------------------------------------------------- 
Miscellaneous Stocks and Bonds ---------------------------------------------------- 
Properties and Equipment-at Cost: 
Land -------------------------------------------------------------------- $ 13,256.95 
Hangars, Buildings, Airplanes, Engines and 
Other Equipment -------------------------------------- 353,878.36 
367.135.31 
Less Reserve for Depreciation_ 
_ 
_________ 
___ 
_ 
_ 
_ 
___ 
________ 131,688.29 
235,447.02 
Unimproved Real Estate ---------------------------------- 147,876.85 
Airport Leases and Rights not used in 
Operations ------------------------------------------------- 35,975.00 
16,765.48 
9,442.46 
35,054.34 
1,387.42 
Other Property not used in Operations (Net) 8,702.65 428,001.52 
Total ---------------------------------------------------------------------------- $673,837.02 
LIABILITIES 
Current Liabilities: 
Notes Payable for Airplane Purchases__________ 
_____________ 
_ 
_ 
________ 
___ $ 48,568.46 
Accounts Payable ----------------------------------------------------------------------  20,536.09 
Accrued Expenses ---------------------------------------------------------------------- 12,691.10 
Total Current Liabilities ------------------------------- 81,795.65 
Capital Stock: 
Authorized, 500,000 Shares of $1.00 each 
Issued, 222,645 Shares ------------------- $222,645.00 
Capital Surplus ---------------------------------------------------- 413,887.12 
Operating Deficit ------------------------------------------------------ 
Contingent Liabilities: 
Proposed Additional Assessment 
of Federal Income Tax in-- 
eluding Interest for the Tax.- 
able Year 1933 _________ 
_ 
_ 
_______ 
__ $ 20.000_00 
636,532.12 
44 .490. 75 592,041.37 
Total ---------------------------------------------------------------------------- $673,837.02 
 WESTERN AIR EXPRESS CORPORATION AND SUBSIDIARY 
CONSOLIDATED PROFIT AND LOSS ACCOUNT 
For the Year ended December 31, 1935 
Gross Revenue: 
Mail ........  .................................................................................... . 
Passenger ................................................................................... . 
Express and Freight ................................................................... . 
Other Airplane Earnings ............................................................ . 
Sale of Parts, Supplies, Labor, etc .............................................. . 
Gross Revenue ............................................................. . 
Operating and General Expenses.............................. $495,295.20 
Depreciation ................................................................ 71,108.82 
Net Operating Income ............................................. . 
Miscellaneous Charges: 
Legal Expenses re old Airmail Contract ....... . 
Loss on Airplane Crash ..................................... . 
Trustee's Expense re Dividend Distributions ... . 
Amortization of Airport Leases and Rights ..... . 
Investment in Santa Fe, New Mexico 
Airport written off ..................................... . 
Interest Charges ............................................... . 
Sundry ................................................................ . 
Less Miscellaneous Income: 
Profit on Sale of Equipment.......... $4,644.23 
Interest Earned .............................. 1,239.59 
Sundry ............................................. 1,500.91 
Miscellaneous Charges 
13,068.16 
7,650.51 
4,245.66 
3,300.00 
1,296.88 
1,885.55 
4,710.99 
36,157.75 
7,384.73 
(Net) ................................................................. . 
Loss ............................................................................. . 
OPERATING DEFICIT ACCOUNT 
$289,763.45 
269,367.51 
18,934.64 
2,791.95 
6,131.08 
586,988.63 
566,404.02 
20,584.61 
28,773.02 
$ 8,188.41 
Balance, as at December 31, 1934.................................................... $ 41,302.34 
Loss for the Year ended December 31, l 935.................................... 8,188.41 
49,490.75 
Less Unused Reserve for Loss on Disposition of 
Wasp Engines provided in 1934.............................................. 5,000.00 
Balance, as at December 31, 1935.................................................... $ 44,490.75 
 To the Board of Directors of 
WESTERN AIR EXPRESS CORPORATION 
We have made an examination of the Consolidated Balance 
Sheet of Western Air Express Corporation and its wholly owned 
subsidiary, Western Air Express, Inc., as at December 31, 1935 
and of the Consolidated Profit and Loss and Operating Deficit 
Accounts for the year 1935. In connection therewith, we examined 
or tested accounting records of the Companies and other support-- 
ing evidence and obtained information and explanations from 
officers and employees of the Companies; we also made a general 
review of the accounting methods and of the operating and income 
accounts for the year, but we did not make a detailed audit of the 
transactions. 
In our opinion, based upon such examination, the accompany-- 
ing Consolidated Balance Sheet and related Profit and Loss and 
Operating Deficit Accounts fairly present, in accordance with ac-- 
cepted principles of accounting consistently maintained by the 
Companies during the year under review, their consolidated posi-- 
tion at December 31. 1935, and the results of their operations for 
the year. 
Los Angeles, California, 
February 20, 1936. 
PEAT., MARWICK, MITCHELL & Co.