Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-07-05
Airport Profit or Loss

loss, at National Airport, is a
factual matter. 1t does not
depend upon conjecture, poll
itics or religion. The answer
is plainly apparent in the re-
ports of the CAA to the Sem
ate. And the answer is that
National Airport has never
made a dollar of clear profit
since it began operation.
From the report made by the
CAA to the subcommittee of
the Senate Committee on In
terstate and Foreign Com
merce at the 84th session of
Congress. it is clear that after
making provision for depre-
citation, as established by
CAA, and interest on the
money invested, that to June
80, 1855. National Airport
lost $16,251,542.
For the one year from June
80, 1855 to June 80, 1856
(which is the latest period
for which figures are avail
able) National Airport lost
over 100000. This together
with losses in the preceding
years amounts to an annual
loss in excess of ST. mil
lion, after deducting deprecia-
ton and interest.
You may argue that depreci-
alton and interest should not
be charged. But depreciation
is a fact, it occurs whether it
is charged or not. When it
comes to interest" as a
proper expense / refer you to
The Star of May is, 1857 for
a page-one double-headline
article by Sylvia Porter en-
titled Soaring Interest Rate
Creates Credit Crisis" (for
the Federal Treasury.
When you say that ma
tional Airport made about
million dollars last year." I
feel that you are in error and
I challenge you to publish the
facts upon which you rely.
John C. Webb,
House of Delegates of Virginia
4 4 y
In your issue of June IL,
1857, you published a letter
from John C. Webb, in which,
among other things, he says,
BASED upon the shocking OPP
irrational losses at National
over the past Is years, the
State of Virginia would have
to have rocks in its head to
accept National Airport as a
gift"
Appended to Mr.. Webb's let
ter was an editorial note in
which you very properly point
out that, National did lose
money in its early years. But
1t is making a profit now of
about 81 million a year. If it
can be acquired by the State
for $1l.5 million, as has been
suggested, it seems to us that
Virginia would have to have
rocks in its head not to take
1t over"
Mr.. Webb apparently bases
his statement on the past his
tory of the National Airport,
not on its present financial
condition.
Today, the airport is a going
concern showing a profit of
better than a million dollars
year. The question is not
what it cost or what it did in
its early history, but rather
what investment a Virginia
airport authority will have to
make and what return can be
expected.
The report made to the
Commerce Department by
James c. Buckley, a recog-
nized expert on airports,
shows that the cost Of the Ma
tional Airport was S32, 1884,
958. OF this amount $17.l12,-
l57 came from public works
funds which were designed to
create employment and never
intended to be paid back. This
leaves $l5,252,8ol coming from
direct appropriations by Con-
gress for construction of the
airport. DR.. Buckley placed a
deprecated book value Of Sll.5
million. on the airport in view
Of these facts.
II should also be pointed out
that since 1916, under the
Federal Airport Act. as a
grant-in-aid program which
gives assistance UP to SO per-
cent for the construction and
expansion Of airfields, some
1851 million has been spent
none Of which has gone to the
National Airport. If National
Airport had been receiving a
proportionate share of the
Federal aid money which Is
not paid back by other COM
munities. this probably would
have eoualed the direct ap-
preparation made by Congress
In addition. National Airport
has paid back TO the Re era