Page 28 - Volume 13 Number 12

Clyde Vernon Cessna was truly one of America’s early aviation pioneers who believed in the future of the airplane as a means of personal transportation.
(Textron Aviation)
In 1933 Dwane L. Wallace spearheaded the rebirth of the Cessna Aircraft Company. Under his guidance the reborn company weathered the Great Depression and went on to become the world’s largest manufac- turer of light airplanes.
(Courtesy Dwane and Velma Wallace)
Dwane’s older brother Dwight used his skills as an attorney to navigate the legal channels necessary to regain control from the incumbent board of directors. He eventually became a full-time employee of the company during World War II.
(Courtesy Dwane L. Wallace)
DECEMBER 2019
during evenings and on weekends formulating plans and writing letters to stockholders. Clyde agreed to sign the letters. His endorsement was crucial to the Wallace brother’s campaign to take back their uncle’s airplane company from those content to let it die.
By the end of 1933 the Wallace brothers were ready to make their assault. They mailed the special letters and included a proxy so shareholders could vote for or against the company’s future. A second series of letters was mailed later, and one is quoted here in full:
Dear Sir:
A short time ago I mailed you a letter enclosing a proxy, which no doubt gave you a good idea of what has been going on at the Cessna plant for the past three years under its present management. I feel that I should write you more in detail of what I intend to do after I’m back in control of our company.
There is no doubt but that the airplane industry could be a paying one today if handled properly. Good examples of
which are represented by the Waco, Monocoupe, Douglas and Northrop airplane companies, as well as others. Through the fact that I have been engaged in the airplane business for the past two decades and having always been recognized as one of the pilgrims in the airplane industry, I have made many valuable contacts in the field of aviation in the last three years with various companies and large distributing agents for airplanes, and with these connections I am sure that I can sell a large number of airplanes.
I intend to redesign and develop the four-place Warner ship to such an extent that it will develop a speed of approximately 185 mph and yet keep its present stability, airworthiness and other grand features that made it so popular. This ship will have many wonderful selling points, such as the low cost of maintenance and operation, upkeep and high cruising speed.
I am sure you realize that our stock is practically worthless today. A complete liquidation would pay only a very small percent back on our original investments, while if you cooperate with me, the Cessna Aircraft Company will again
be doing a good business and our stock on the market rise accordingly.
I am enclosing another proxy in case you did not receive or have misplaced the other one, and I will appreciate your executing the same and returning it to me in the self-addressed envelope which is enclosed.
The letters were signed, “Very Truly Yours, Clyde V. Cessna.”
The brothers Wallace knew it would take more than letters from their famous uncle to win the battle, and Dwane visited every investor in Wichita who held more than 100 shares of stock, echoing Clyde’s call for cooperation by telling them their support now would lead to profits later. Next, Dwane and Dwight pooled their resources and bought 6,000 shares of Cessna Aircraft Company stock from the brokerage firm of C.M. Keys in New York City. Local investor Thad C. Carver, however, held more than 20,000 shares and Clyde held 12,000, with 67,000 shares outstanding.
On Jan. 17, 1934, at the annual stockholders meeting of the Cessna company, Dwane and Dwight narrowly won a majority and ousted the incumbent board of directors. New members of the
26 • KING AIR MAGAZINE