Air Cargoes

Foresighted air transport operators regard the express business as their ace-in-the-hole. Passenger business is rarely profitable to any long-distance carrier. Airmail subsidies are subject to politics. Airmail loads vary inversely as the postage rates (they are off 30% since the airmail stamp was upped to 8-c-). But air express has been zooming, will climb this year to 1,000,000 lb., 66% higher than last year.

Into the game last week stepped a new player who, instead of saving up the express ace, played it as his first and only card. He was Philip Henry Philbin Jr., youthful, debonair son of a Colorado hotelman, who learned the aviation business as a $1-a-year assistant to President Harris ("Pop") Hanshue of Western Air Express, later headed Mid-Continent Air Express. Last week he announced Air Express Corp. ready to operate a daily 17 to 18-hr. service between New York and Los Angeles, exclusively for express. First flights: Dec. 12.

Five sleek, silver-coated Lockheed Orions were already in their hangars at Floyd Bennett Field, N. Y. and United Airport, Burbank, Calif, last week, two more on their way from the factory. They are specially built, low-wing monoplanes, windowless, with retractable landing gear, designed to fly 170 m. p. h. with half-ton loads. The schedule westbound calls for take-off at 6 p. m., arrival at 8:45 a. m. Eastbound, take-off 12:45 p.m., arrive 8:45 a. m.

Only through consignments will be accepted. To save time checking cargo, the load compartment will be sealed at the takeoff, remain sealed during fuel stops at Columbus, St. Louis, Wichita (where pilots change), Albuquerque, Seligman, Ariz, Among the pilots is famed Clyde Pangborn (round-the-World, 1931). Unbound by mail contracts or by required intermediate stops, the company may vary the planes' routes at will to escape bad weather, also to thwart possible attempts at robbery.

Unlike the existing airlines, which delegate their ground handling to Postal Telegraph or Railway Express Agency, Air Express Corp. will perform its own pick-up and delivery, thus insure full, permanent control of its business sources.

Air Express Corp.'s transcontinental rate is $1.75 for the first pound, $1 per lb. additional. That closely approximates the air rates of Railway Express Agency since they were slashed 15% to 30% last fortnight.

If air transport were really a poker game, Player Philbin would need a substantial stack of blue chips to back his express ace. They have been supplied by "strong financial interests." Three of the backers were learned last week: Chandler Hovey, socialite, yachtsman, senior partner in Kidder, Peabody & Co. (Wall Street investment house); Arthur S. Jackson, of Jackson Bros., Boesel & Co. (Chicago brokers) ; and Frank Phillips, petroleum tycoon whose gas & oil will fill the tanks of Air Express Corp.'s ships. First aide to President Philbin is his vice president in charge of traffic. James G. Woolley, a plump, profane hurricane of energy who was a Western Air vice president until both he and Philbin withdrew last year. In charge of operations is Vice President Vance Breese, oldtime mail pilot, speed flyer.

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