Eastern Sold

Only major domestic U. S. airline to make money in 1937 changed hands last week. As planned month and a half ago, Eastern Air Lines, which has no rivals on its runs up & down the Atlantic coast and which made $270,000 last year before tax deductions, was sold by North American Aviation, Inc. to a banking group formed by Eastern's general manager, Captain Edward Vernon Rickenbacker. Elected president of the new company, Eastern Air Lines, Inc., was Eddie Rickenbacker. His backers include Harold S. Vanderbilt and the Wall Street investment firms of Kuhn, Loeb & Co. and Smith, Barney & Co. Last week these two firms offered 416,666 shares of common stock at $10 a share to a select group. By week's end some 75% of the stock had been taken up. If the rest remains unsold, the general public may get a crack at it at a slightly higher price.

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