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Cessna monoplanes. Those orders were quickly cancelled as Curtiss officials also agreed to sever their relationship with the Cessna Aircraft Company. As of November, Cessna had delivered more than 35 Model AW, four DC-6B and three DC-6A aircraft.
Without Curtiss as its largest customer, Clyde Cessna and his staff scrambled to reinforce its existing nationwide dealer and distributor network, and thanks to the hard work of general manager Harold Wehrle, eight new franchises were established. In the November 1929 issue of “Aviation” magazine, Cessna Aircraft Company printed a notice stating what Clyde Cessna considered to be the most important message of that year. Basically, the notice reassured readers that the company was financially strong and was led by men with significant experience in the aviation industry.
In addition, the company had created a new sales organization that was ready to do more business than ever before. Unfortunately, less than 30 days later Cessna Aircraft’s financial base was beginning to show signs of crumbling. For example, company stock that had sold for $100 per share in 1928 was selling for only $18, and there were fewer and fewer buyers.
To raise money the board of directors sold the old factory in Wichita for $50,000, and although new airplanes were rolling off the assembly line at the new
facility, prices were reduced in hopes of attracting buyers. Back east on Wall Street, the stock market was riding a financial roller coaster during the next few weeks with prices rising and then suddenly falling to new lows.
Prices for new aircraft were falling almost as fast as the values of Cessna company stock. A few examples are in order here to illustrate the deteriorating situation faced by the board of directors:
A factory-fresh Model AW normally retailed for $7,200 but despite slashing its price to a mere $3,400, there were no buyers.
Another new Model AW with (ferry time only from Wichita to New York City) was offered for $3,700 under retail but sat on the ramp unsold.
A new Model DC-6A cabin monoplane (Cessna’s latest and best design to date) carried at price tag of $11,500 but could not attract a buyer despite a bargain price of $9,800.
Early in 1930 Clyde Cessna himself came under attack from stockholders who were furious at losing so much money in so little time. They filed a petition citing mismanagement by Mr. Cessna as the chief reason the company finished 1929 $100,000 in the red, despite having sold $750,000 worth of new airplanes and selling more than $300,000 worth of stock.
AUGUST 2018 KING AIR MAGAZINE • 23