Aeronautics: G. M. Into Western Air

To set up a transcontinental airmail and passenger line is costly, as T. A. T. and Western Air Express have learned. Moreover, operation of the transcontinental & western route has not proved profitable because it is not yet flown by night, hence does not receive a large share of transcontinental mail. For that reason, but principally because of the general difficulties that have beset most airlines, Western Air Express has run somewhat short of funds. Last week it raised between $750,000 and $1,000,000 by selling 50,000 shares of its stock to General Aviation Corp., aviation subsidiary of General Motors Corp.

G. M. was already in the airplane manufacturing business through General Aviation Corp.'s ownership of Fokker Aircraft Corp., and its control of Pittsburgh Metal Airplane Co. Last week's transaction put G. M. into the transport field. President Harris M. Hanshue of Western Air did not confirm the rumor that G. M.'s 24% stock holding would give it control of the Western Air Line. Nevertheless, observers saw in the arrangement an assured outlet for General Motors (Fokker) planes, possibly a bitter struggle between G. M. and Ford Motor Co. for air supremacy.