ORGY OF PROFITS.

Auckland Star, Volume LXV, Issue 56, 7 March 1934, Page 5

ORGY OF PROFITS.

U.S.A. AIR LINES.

MAN WHO MADE MILLIONS. 'REWARD FOR MY LIFE WORK' (From Our Own Correspondent.) SAN FRANCISCO, February 14. Before President Roosevelt ordered the cancellation of all air mail contracts held by several private companies in the United States, and the substitution of the 1600 'planes of the United States Army and Navy to carry the mails in the air, some striking revelations were made in Washington in the series of inquiries instituted in the scandals which have "rocked the country" and caused an immense liquidation of aeroplane stocks on Wall Street. William 12. Boeing, Pacific coast aeroplane manufacturer, told the Senate air mail committee that he realised potential profits of 8,905,404 dollars in 1928 from an original investment of 259 dollars. Meanwhile, observers predicted sensations "more shocking" to the nation than the Teapot Dome oil scandals as Department of Justice agents delved into earlier air mail subsidy revelations. Mr. Boeing said ho bought 4319 shares of Boeing Air Transport Company stock in 1927 for six cents a share. He traded those units for 54,972 shares in the United Aircraft and Transport Corporation.. The United stock opened on tlie exchange in December, 1928, at 97 dollars per share. Chairman Black, of the committee, said tlie total investment in the Boeing company was 750 dollars. The company obtained a mail contract from the Post Office Department in 1930, he said, and made net profits in the year amounting to 1,448,306 dollars. Senator Black said the 750-dollar company declared a 2,402,234-dollar stock dividend and a 367,000-dollar cash dividend the same year. "Not a single dollar ever went into that company to increase its assets,"' Senator Black said, "except that money which was received from the Post Office 'Department.''

Large Blocks Sold. Mr. Boeing testified that he sold large blocks of the United Aircraft stock when the market price went above 90 dollars. At one time the stock was quoted as high as 140 dollars. At another time, Senator Black said, j Mr. Boeing, who sold aeroplanes in large blocks to the army and navy, possessed 318,070 shares of Boeing and United Aircraft stock, for which he originally paid 487,119 dollars in cash and property. Senator Black said the stock increased in value until it had risen to a peak of [51,528,313 in 19-29. "Well, it's no fault of mine that it 'went up there," Mr. Boeing said, leaning forward in the red-leather witness chair. j Mr. Boeing read from a report covering the period from 1927 through 1933, showing that he had made actual profits j amounting to more than 12,000,000 dollars on his 318,000 shares holding. The report said he had been paid 215,691 in dividends on that stock and 197,886 dollars in dividends on United Aircraft preferred stock. He received total salaries of 221,486 dollars. "Aviation has been my life's work," Mr. Boeing explained in answer to [exclamations of surprise from committee numbers who examined the report. "I went through all the hazards and through periods in which everyone thought I was a fool. I risked a good part of my personal fortune. Maybe these profits are a reward for my life's work."