Re: 1935 - Turning Point and What-Ifs
Posted by Steve203 On 2015/9/1 19:17:52
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Apparently there was some sort of perceived kidnap threat. There were also the stock manipulation charges, that he had to face when he came back
The way I understand it, Cord simply lost interest in the automotive operations, in favor of aviation, which he saw as having greater growth potential. He owned the predecessor to American Airlines, Stinson aircraft, and Lycoming, which made aircraft engines, in addition to the engines used in Auburn cars.
There was a lot of vertical integration in aviation at the time. Boeing controlled United Air Lines, as well as Pratt & Whitney and Hamilton Standard.
The government wanted to break up these aviation combines, so banned airlines that received air mail contracts from being owned by aircraft builders. Cord sold off his airline, as Boeing disposed of United, Pratt and Hamilton. Cord's aviation interests were bundled under the "Aviation Corporation" banner, which was later shortened to "AVCO"
Here's an ad from the 70s for AVCO Lycoming jet engines.
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Owen_Dyneto wrote:
As I recall the decline in Cord's holdings came about as a result of the Lindbergh kidnapping and his concern for his family's safety. He began to ignore or bail out of his various airline, shipbuilding, railroad and car holdings and left for what he felt was a safer venue in England. Though his automotive sector was in bad shape, I think his airline and shipbuilding (was it New York Shipbuilding?) were quite successful and had he held it until WW II it would have been a goldmine, it was the largest and most productive shipyard in the world during that time.
Apparently there was some sort of perceived kidnap threat. There were also the stock manipulation charges, that he had to face when he came back
The way I understand it, Cord simply lost interest in the automotive operations, in favor of aviation, which he saw as having greater growth potential. He owned the predecessor to American Airlines, Stinson aircraft, and Lycoming, which made aircraft engines, in addition to the engines used in Auburn cars.
There was a lot of vertical integration in aviation at the time. Boeing controlled United Air Lines, as well as Pratt & Whitney and Hamilton Standard.
The government wanted to break up these aviation combines, so banned airlines that received air mail contracts from being owned by aircraft builders. Cord sold off his airline, as Boeing disposed of United, Pratt and Hamilton. Cord's aviation interests were bundled under the "Aviation Corporation" banner, which was later shortened to "AVCO"
Here's an ad from the 70s for AVCO Lycoming jet engines.
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