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VOL. VII, NO. 6
APACE WITH THE PACEMAKER
SEPTEMBER, 1964
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Tax Law's A Fooler
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Old-time cars date the former fixed base building to World War Two. Now minus the glass cupola and
with added space, the building will be used by the Civil Air Patrol as its local training flight office.
Old Buildings Never Die
A building that has been
around almost as long as Pied
mont Aviation, Inc., and longer
than the Airline, has outworn
its usefulness—at least to the
Company. However, the old fixed
base building, INT, will continue
to be a center for flight training.
Use of the building has been of
fered to the Civil Air Patrol for
its local training flight office.
Originally an Army Air Corps
operations building, the struc
ture was used for pilot training
during World War II. Besides
was one of only twelve compan
ies in the country authorized to
hold such training schools.
Early in the war, an instruc
tor’s room, student pilots’ ready
room, and an operations office
for dispatch were added to the
building. Around 1943, ground
school classrooms were added.
Following the war, the origi
nal sales and service operations
of Piedmont resumed, and the
building became Piedmont’s
fixed base with sales offices and
headquarters for private pilots’
ters, leaving the Piper division
(Central Piedmont Aero) offices
in the old building.
The new tax bill adopted in
February of this year has had
the pleasant effect of putting
extra dollars in everyone’s pock
ets. But, before you spend your
whole paycheck on that new car
or boat or hi-fi, make sure that
you won’t be caught short by an
unpleasant surprise come April
15. It seems that the new law
provides for a two-stage tax re
duction, the first part to be ef
fective in 1964, the balance in
1965. However, the withholding
tax rate was adjusted to coin
cide with the final drop due in
1965. This means that Piedmont,
which has been withholding
18% of your adjusted gross in
come, will now withhold hot the
16% needed for 1964, but only
14%. In effect, you will, in all
probability, be underwithheld in
1964. In ’65, when the second
drop in actual tax rates occurs,
the 14% will more than likely
be sufficient. The problem pe
riod will come only in 1964. Even
if you have been getting a re
fund in the past, you may have
to pay this year.
What to do? There are three
alternate measures you can take
to avoid being without ample
funds next April:
1. Save enough money to be
prepared for the 1964 tax bill.
2. File an estimated tax return.
This you must do if your in
come is over $5,000 a year ($10,-
with the correct number of de
pendents. To decrease the num
ber of exemptions on which
your withholding is based, file
an amended Form W-4, Employ-
e e ’ s Withholding Exemption
Certificate, with your employer
(Piedmont Aviation, Inc.—Ac
counting, INT). To find out how
you stand with regard to this
year’s tax bill, see page 6, col. 3.
Now, the twenty year old . ^ . , , , ,
frame structure has been moved , 9®.^ married couples
to another part of the airport | JOinJly, and foj persons^ elig^^^
and, in its place, the new Piper
to file as head of household or
being a center for U. S. pilots, instruction. It remained thus un-
the building was also the train- til 1960, when the sales and serv
ing center for Central and South ice distributors for Beech Air-
American students. Piedmont 1 craft moved into separate quar-
First Six Months Best Yet
Piedmont Aviation President
T. H. Davis, in making a half-
year financial report to the
stockholders last July 31, ac
claimed the first six months of
1964 the most successful first
six months in the Company’s
history. He credited the achieve
ment to the ability and effort of
Piedmont employees: “Even
though the nation is enjoying a
healthy and growing economy,
it has taken more than usual
effort to produce and sell at a
rate of increase substantially
greater than that achieved by
the airline industry as a whole.”
Consolidated net earnings of
the Company were $548,744 or
37c per share. This compares to
net earnings of $224,669 or 15c
per share during the first half
of 1963 and represents an in
crease of over 100%. Total stock
holder equity at the close of the
period was $5,412,819 as com
pared to $4,423,849 a year earlier.
This represents a book value in
crease on the common stock of
the Company from $3.02 per
share to $3.66 per share.
Mr. Davis attributed the en
couraging results to satisfactory
increases in passenger and cargo
traffic. Revenue passenger miles
for the six months period end
ing June 30 were 111,155,836.
For the same period of 1963, the
figure was 87,715,212. This is an
increase of 26%, comparing to
the ATA report showing a gain
of 19.1% in revenue passenger
miles for the local service air
lines as a whole and a gain of
15.4% for all U. S. domestic pas
senger traffic. Cargo ton miles
increased 21% over last year’s
first six months. At the same
time, total operating expenses
increased only 5%.
In order to accommodate the
increased traffic demand, the
Company purchased another
Martin 404 Pacemaker in April.
In addition. Piedmont’s fleet of
aircraft has been completely
equipped with Distance Measur
ing Equipment to comply with
a new Federal Aviation Agency
regulation which became effec
tive July 1. The total cost of the
Distance Measuring Equipment
was $300,000. Despite these major
capital expenditures, net work
ing capital increased from
$1,230,319 to $1,338,027 during
the six months period.
Mr. Davis predicted that, from
present indications, sales will
continue at a relatively high
rate and that improved earnings
can be expected for the remain
der of the year.
offices are already under con-' surviving spouse) or if your in
struction. The new building will ^ come from _ sources not subject
be larger, including a customer: to withholdmg ax exceeds $
lounge, operations office, con-1 The next deadline for filing an
cession room, sales offices, and estimated tax return is Septe^-
flight dispatch office. The lounge ber 15. File a Form 1040 ES
will overlook the flight with a check for (or ^) of
area
ramp and may be used by local your e^imated tax ncrt taken
and transit officers.
In the meantime. Central Pied
mont Aero sales offices are
temporarily located in the main
terminal and the flight depart
ment is operating out of an of
fice trailer adjoining the hanger.
Completion of the new building
care of by withholding. You will
then be billed for the remaining
Vs (or %) January 15.
3. Increase the amount with
held from 'your pay. This you
may do by claiming fewer de
pendents for withholding pur
poses. Of course, when you file
your return with the Federal
is expected to take ninety days. Government in April, you file
Credit Union O.K/s New Rules
Credit Union President R. H.
Reed announced August 6 that
the Credit Union Committee has
revised regulations to increase
maximum amounts which may
be loaned to members. Depend
ing on his years of service with
the Company, a member may
now borrow up to $750.00 with
out security other than a signed
note.
Interest on this type of loan
will be discounted at the rate of
six per cent per annum. The
maximum payment period . is
twelve months. Maximum
amounts which may be borrowed
with the approval of the Credit
Committee are as follows:
$ 50.00—six months’ service
$100.00—one year’s service
$200.00—two years’ service
$300.00—three years’ service
$400.00—four years’ service
$500.00—five years’ service
$750.00—ten years’ service
Maximum amounts for loans
secured by co-signers have also
been raised. Loans with a maxi
mum of $800.00, payable over a
period of 18 months, are avail
able to members with less than
three years of continuous serv
ice with Piedmont. Members
with more than three but less
than five years of service may
borrow up to $1,000.00 for a pe
riod of 24 months. Members
with more than five years of
continuous service with Pied
mont may borrow a maximum
of $1,500.00. Regardless of his
number of years of service, a
member may obtain a secured
loan equal to the amount of his
average monthly rate of pay.
If a secured loan is no greater
than $600.00 or no greater than
the member’s average monthly
rate of pay, only two co-signers
are required. All other loans of
this type require three co-sign
ers and loans in excess of
$1,200.00 may require additional
co-signers if considered advis
able by the Credit Committee.
Interest will be discounted at
the rate of 6% per annum. All
loans are subject to the approval
of the Credit Committee.
Martins Bought
In order to handle additional
traffic, two Martin 404 Pace
makers have been added to
Piedmont’s fleet. The Martins,
purchased from Charlotte Air
craft, formerly belonged to East
ern Airlines. They have been
overhauled at the Winston-Sa
lem maintenance base, and will
be placed into service with the
new schedule change September
7.
The new schedule will include
four new flights, 802 and 809, op
erating between Washington and
Atlanta, and 631 and 632 op
erating between Roanoke and
Cincinnati. The change will im
prove service to several cities
on Piedmont’s system, among
which are the following: Colum
bia, S. C., will now receive non
stop service to and from Atlan
ta; Kinston, N. C., will have non
stop evening service both to and
from Washington, with the
southbound flight continuing
from Kinston to Wilmington,
Myrtle Beach and Augusta. Wil
mington and Augusta will each
receive one stop afternoon serv-
ive to Washington. Roanoke
will receive non-stop evening
service from Washington with
the flight continuing from Roa
noke to Winston-Salem, Ashe
ville, and Atlanta; afternoon
service from Roanoke, Charles
ton, and Huntington-Ashland
will now make convenient con
nections in Cincinnati enabling
passengers to arrive in Chicago
in the early evening.
In addition, the schedule
change will reflect Virginia’s re
turn from Eastern Daylight to
Eastern Standard Time. West
Virginia will return to Standard
Time September 27, and Mary
land and the District of Colum
bia will return to Standard Time
October 26.
Classroom Moved
Mechanics, pilots and trainees
will soon be moving to new
quarters for their classroom
training. The old room, located
in the home office building, is
being turned over to Accounting
to provide more space for IBM
equipment.
The new location of the train
ing classroom will be the term
inal building in Winston-Salem.
The room, formerly the exclus
ive Sky Club, in recent years
has been the headquarters of a
now de-activated Air Force Re
covery Squadron. A big bay win
dow affords a view of the run
way and a fireplace adds a cozy
atmosphere.
Captain Tadlock, Director of
Flight Operations, says the main
advantage of the new room is
its size. By using a partition,
two classes can now be con
ducted at the same time. There
will also be more space to dis
play cut-away model planes and
(Continued on Page Two)