Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-01-01
BY OWEN L. SCOTT.

ton became a billion-dollar
industry in the United States
~ during the past year, and at
once turned its eyes toward the
not distant future when the use of the
flying machine will be as natural as
that of the motor car today.
At the same time this youthful giant
among American commercial enterprises
encountered problems and competition
that revealed important shortcomings
1t Is evident that scientists and engi-
neerS have tremendous task cut out
for them before this country can have
machines which test the real poSsibii-
ties Of air commerce.
But this task now Is being shouldered,
and the gains made in an unprece-
denied year of development will be ex-
tended rapidly. Two things character
lied the development-first. an amazing
influx of capital, which gave the indus
try really more money than it could
use, and, second, the rapid extension Of
commercial service.
When stock market prices were at
their height it is estimated that ap-
proximately $1,100000,000 was repre-
Sented in aviation securities on all ex-
changes. The late october and early
November crash in stock prices cut APP
proximately $500, 900 900 from this pa
per total and ended the financial honey
moon. When it is appreciated that all
civil aviation four years ago probably
could have been purchased for $5,0OO,-
600. the extent Of the boom can be
appreciated.
United States Leads.
Out Of this hectic period Of sudden
and tremendous stimulation has come
such progress that the United States,
according to the National Committee
on Aeronautics, now leads the other
nations of the world in the use of air
craft for commercial purposes. This
group points out in reporting to Presi-
dent Hoover that the day is not far
distant when the use of planes will be
most common.
But. it adds. "the public is not willing
TO pay the present costs of travel by
air." Here is the rub, so far as COM
mercial operating companies are con-
cerned, and the committee properly as
Serts and the men in the industry agree
that scientific research must go forward
unremittingly to cut costs so that air
/ travel may be no more expensive than
travel by rail and bus. At the same
time science must find ways to eliminate
accidents so completely that the human
beings natural disinclination to get both
fest on the ground may be overcome.
Progress Reveals Shortcomings.
T. has been the extent Of this years
! progress which revealed the industry's
shortcomings. What the growth Of avi-
alton has been Is best revealed by Pres
! ident Hoover in his message to the
present Congress. He says:
During the last year progress in civil
aeronautics has been remarkable. This
is to considerable degree due to the
wise assistance Of the Federal Govern
ment through establishment and main
tenance of airways by the Department
! OF Commerce and the mail contracts
frolI the Post ONCE Department.
THE Government improved airways
now exceed $4,000 miles, more than
$4,000 miles of which will be lighted
and equipped for night flying opera
tons by the close of the current year.
Airport construction through all the
States is extremely active. There are
now 1000 commercial and municipal
airports in operation, with an addi-
tional 1900 proposed for early develop
ment.
Through this assistance the Nation
Is building a sound aviation system
operated by private enterprise. More
than $500 planes are in commercial
use, and 9,400 pilots are licensed by
the Government. Our manufacturing
| capacity has risen to 1900 planes per
annum. The aviation companies have
increased regular air transportation
until it now totals 10000 miles per day.
one-fourth of which is flown by night"
Graduated From "Stunt Stage"
The fact story told by President
Hoover is a succinct Summarization of
really dramatic development. The in
dustry in one year has graduated from
kI1s t~k. pt fVrtr ffV1l lodi
ticipation in the rounded scheme of
national transportation. AS one of the
largest OF the operating companies has
just remarked:
THE gold rush days of air tranSporta-
ton are over. Airplane manufacturers
and operators recognize that they are
heading into an era when air business Is
to be highly competitive with other
forms of transportation. This means
that every energy must be exerted to-
ward improved service and lower operat-
ing costs"
But where other transportation enter
prises have done their pioneering and
are thoroughly grounded financially.
aviation still has a transition period
ahead.
The industry with a capitalization of
well over s500,000,000 is likely to yield
an income of less than $10O,00O 900 in
$500 and 1000 planes will be manu-
featured in place of the $4,000 to $4,000
which early in the year were expected
to be turned out. This production and
sale OF airplaneS, engines and other
aviation products will probably yield the
industry $85,000,000 this year. Carriage
of air mail is counted on to give $4,000
900, making total Of sos, 900 ,000 Pas
senger business is widespread, but up to
the present 1t has not been carried on
at q consistent profit. An estimated re-
turn OF 100000 from this source is
considered liberal.
Four Units Principal Factors.
To share in this business there are
over $50 companies. It is figured that
80 per cent of the profit will 60 to
10 companies. The situation is much
the same in the operating field So that
out OF the years feverish activity have
developed four units which at the mo-
ment are principal factors In the in
dustry: The United Aircraft and Trans
port Corporation; the Aviation Corpora
ton Delaware; the Curtis-W Wright
Corporation, and Bendix Aviation Cor
poration. The group which includes the
Universal Air Lines and the Western Air
Express, while cooperating, is not a
single unit. If it should unite, then 1t
would step up as one of the largest Of
the concerns.
The German Dornier plane, Do-X,
which has carried q 20-ton load has
been the most sesational of the years
aircraft products. This flying boat can
carry 1863 persons, including a crew of
16. 1t plans transatlantic flight dur
ing the next year and because of its
carrying capacity may help solve the
problem of high operating costs. Be
sides, the Europeans have come forward
with the flying wing, designed with
cabin compartments in the hollow air
foil. Again the object Is to get greater
carrying capacity at lowered cost.
What the Americans have done, how