Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-06-09
AVIATION INDUSTRY
At MERGER STAGE
Pioneer and Mushroom
Periods Are Succeeded by
Reorganization Era.
BY JOHN F. SINCLAIR.
pecial Dispatch to The Star.

INDUSTRY goes through certain definite
cycles. First, the hard. early period.
when faith is large and business is
small-the heroic pioneer day. After
! that the mushroom growth period when
! people, attracted to the new industry,
sweep into it with their time and money
far more than is needed. Then the
drop and the inevitable reorganization,
the nightmare for the little investor.
Aviation has gone through two of
these periods already. For five years
after the close Of the great war aviation
was in the doldrums. Nearly every
airplane company Of importance suf-
Tered large losses. Many of the leaders
in war aviation withdrew from the
field and entered other lines Of business,
Lindbergh Flight.
Then came the Lindbergh flight,
centering the attention of the entire
world on aviation, the development of
the air mail and the amazing wide
spread interest of the younger people
in flying.
With this has come the mushroom
growth. Hundreds Of companies have
started. Flying schools are being es-
tablished over night-many of them
lncompetently managed and poorly In
structed. Death schools" they are
often called. The bad ones will be
weeded out, as will the mushroom
companies. But only after many lives
and much money has been lost.
Aviation has now entered the third
per1od-that Of reorganization. The
more prosperous small companies are
being merged into larger and larger
ones until today there are but four or
five outstanding companies in the whole
airplane field. These are all amply
financed and their future seems well
established.
No American has had any greater
influence on the development of avia-
ton into its present form than Clement
M. Keys, the Canadian-born American
banker, who has been called the e. II.
Hartman of aviation"
After graduating from Toronto Uni
verstty, this bespectacled, quiet spoken
youth was undecided about what he
should do in life. He had been a good
student and a good athlete, so he spent
the next three years teaching history
and foot ball at Ridley College, st.
GATHERINGS, Ontario. That was in the
closing years OF the last century.
Took Up Newspaper Work.
But he tired of this-was ambitious
for greater things, and the year 1901
found him a reporter on the Wall Street
Journal. Five years later, he was rail-
road editor This was his big chance to
study finance and transportation. He
took full advantage of his opportunity.
But he was restless. He quit Journal
ism and became an editor-financial
editor of Worlds Work. When Walter
Hines Page, upon his retiring to be-
come American Ambassador to Great
Britain, asked young Keys to become
his successor as editor of Worlds Work
Mr.. Keys thought it over and replied:
"A great job, I admit. 1 would be up
at the top, as far as l could go, but
it is not far enough. have been study
ing finance for years. It is my special
ing"
So Mr. Keys left writing behind, and
founded G. M. Keys &c Co., bankers.
He specialized in transportation stocks
and bonds. He developed friendships
among many big business men and
bankers He was doing fine. His COM
pany grew.
ately that airplanes would be needed
badly by the governments of the allies.
Few people were in the business.
Meets Glenn Curtiss.
Glenn Curtiss, well known inventor,
had been building airplanes for the
allies. He met Mr.. Keys as financial
COISulbdIlI, Wdo WAL
Keys joined hands with Mr.. CurtiSS
in what was to be his most important
move in life. He became vice president
of the Curtiss Aeroplane & Motor Cor
poration, without salary.
Together Curtiss and Keys made the
Curtiss Co. the biggest thing IN
the industry. They produced 5000
airplanes during the war. They were
prosperous. And the world had be-
al minded fhnv thnICht Then
the postwar smash. People forgot
the war: they forgot about flying.
Things looked black. Aviation seemed
to be down and out, along with every
thing else. But Keys kept up his cour-
age. He saw what was in store a few
years hence.
So, without saying much, he bought
the Curtiss organization for a song
(around 81 share). He acquired Is
from the Willys-overland Co, whica
at that time was having its own prob
lens in automobile manufacture.
Mr.. Keys began reorganizing and re-
building the company. That was In
August. 1920 Today that stock is
almost forty times as valuable as when
he purchased 1t.
But 1t was hard shedding for years.
1t sounds easy now, but 1t was anything
but that.
After he got the company going and
properly financed, Mr. Keys organized
the National Air Transport, primarily
to take the air mail contracts be-
tween New York Chicago and Dallas.
Today that company is making money.
Other lines were started other mergers
were effected. until today there are
1000 miles Of aerial highways being
operated for air mail and 5000 to be
added this year.
Business Has Expanded.
His airplane business has expanded
beyond his widest dreams. He has
entered other lines. With others ne
took over the control Of the National
City Bank of Miami. Fla, in 1927.
He is chairman of the board of the
Curtiss Aeroplane Corporation, presi-
dent of the Glenn H. Curtiss proper
ties. director of the National Cash
Register Co., in addition to being d.
rector and chairman of the executive
committee of the National Air Trans
port, Inc.
Mr.. Keys. a quiet, extremely modest
man, moves around the country freely,
a hard worker. With his business Sd
we'll organized. he spends much of his
time outside of his office. He is a
good listener, says very little himself
in conversation. never brags or talks
about his own achievements. But MS
eyes and ears are always wide open.
This airplane leader is known among
his own group as q man who looks for
the best talent In each field, and buys
10 on liberal terms. When he organ
lied the National Air Transport, he
offered Col Lindbergh the job Of tech
meal adviser. Col. Lindbergh went
over the plans carefully with this for
ner school teacher. saw what the future
had In store in aircraft development,
and accented the noSition "Nat" Is