New-York tribune., 1920-12-04
9Th American
Aircraft Firm
Goes Bankrupt
L. ". F. Engineering Corp,
of College Point, One of
Biggest Makers i'm u. S..
Files Voluntary Action
Blames the Government
Charges Failure to Protect
Industry and Neglect in
Placing Orders for Craft

The L. ". F. Engineering Corporation
OF College Point, L. l.. one of the larg-
est aircraft manufacturers in the coun-
try and designers of the larges. Ameri-
can bombing airplane, went into the
hands of a receiver yesterday. It is the
eighth aircraft company to enter bank
rutcy since the signing Of the armistice.
The government Is directly charged
with responsibility for the failure by
officers of the company, who alleged the
Federal authorities have failed to pro-
tect American aircraft industry from
the dumpting of foreign surplus war
materials in this country and have not
placed orders for the new aerial equip
ment needed by the army and navy for
national defense.
The officers Of the company declare
that of the S122 900 900 appropriated bv
Congress for aviation this year, moth
ing has been spent for aviation con-
struction. Nearly all of this money.
they alege, has been spent upon
salaries, maintenance and flying field
costs. They declare that all the engi-
neering branches of the military, naval
and postoffice aviation services have
done during the year is to receive bids
for two or three airpianes of six diff
ferent types, for which no awards have
yet been made. Last year the total
amount spent for new construction bv
the government, they say, was only
$4,000, 900.
Receivership Action Voluntary
The l.. W. F. company went into
voluntary reccivership before Federal
Judge julius NJ Mayer, who appointed
Ernest Whltbeck as receiver. I'M
medlately afterwards Mr. Whitbeck is
sued the following statements:
THE L. ". r. Engineering Com
pany, of College Point, L. l., was
placed in the hands Of receiver to-
day. BY remarkable coincidence, in
the annual report of the chief of air
service day Major General Charles
t. Mcnoher also says that: Unless the
government aids the airplane industry
1T cannot hope to depend upon the
availability of suitable commercial
aircraft and facilities for their en-
ployment nor upon the ex stencc of
manufacturing plants and supplies of
materials necessary for the rapid pro-
duction of aircraft in time of war
"The receivership of the L. w F.
company is the result Of the failure
by the government to evolve and put
into operation a definite aeronautical
policy or program. The L. w. F.
company was one OF the pioneers. At
the time of the receivership it had the
largest aircraft manufacturing plant
in the United States. It was capi-
talized at $l,000,000 and had employed
more than 2.200 persons at the time Of
the armistice.
Built First Liberty Plane
"The L. W. F. Company was organ
lied in 1915. 1t was the originator in
this country Of the laminated wood
fuselage, now largely used in aircraft
construction. 1t built the plane which
was the first to fly the Liberty engine
Since the armistice the L. w. F..
Company has endeavored against heart
breaking odds to bridge over the period
between military production and peace
time development. The government has
so far neglected to recognize its re-
sponslbllity in the utilization Of air
craft in national defense as TO ,ail. in
the two years since the armistice. to
formulate or put int cooperation a pol
icy, by falling to prevent the dumping
Of foreign surplus equipment. by fail
ing to enact an aerial code which would
have facilitated commercial business or
by permitting orders to be placed for
equipment which General Menoher says
the air service sorcly needs.
"The L. W. :. plant covers five city
blocks. The company has its own water
and land terminals. At great expense
the company developed and built the
Giant Americas largest airplane-
and one Of the largest ever constructed
which few weeks ago was accepted
by the air service as a coast defense
hnmherv