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when they tendered their resignations from the Hub board of directors.
On June 19, 1970, Hub Airlines purchased the route structure and assets of Commuter Airlines from the receiver in bankruptcy in Chicago, pursuant to the following notice of sale:
The offering will include the business of a presently operating third-level commuter air carrier providing scheduled services from Chicago, Illinois, to Springfield, Illinois; Detroit, Michigan; and Elkhart, Indiana. The airline is operating an exclusive intrastate route from Meigs Field in downtown Chicago to Springfield, Illinois, under Illinois Commerce Commission Certificate of Convenience and Necessity, which said Certificate and route will be offered, subject to the approval of the Commission. Scheduled service from downtown Chicago to downtown Detroit, as well as service from O'Hare Field, Chicago, Illinois to Elkhart, Indiana, is also provided by the carrier.
In addition, also being offered for sale is the Receiver's right, title and interest in and to the goodwill of the operating company, its customer lists, use of the counter space and terminal facilities, and the right to use of the name "Commuter Airlines." The receiver will offer physical assets valued at over $450,000 at cost, consisting of an inventory of ground equipment, tools, aircraft spare parts, two P.T. 6A engines, office furniture, fixtures and equipment located principally at Midway Airport, Chicago, Illinois, and at the office of the company located at 5849 South Cicero Avenue, Chicago, Illinois.
Hub Airlines' investment in the acquisition of Commuter Airlines, less the two P.T. 6A engines, was $25,000 for the routes, goodwill, etc., plus $84,000 for the parts inventory and $8,500 for office furniture and equipment.
A few months after the acquisition of Commuter Airlines, Hub Airlines lost its temporary certification from the Illinois Commerce Commission to operate a route between Chicago's Meigs Field and Springfield. (This will be discussed in detail in the flight operations portion of this chapter).
Starting in the beginning of 1972, the principal office of the corporation moved from Baer Field, Fort Wayne, Indiana to Chicago's Midway Field.
Stock Ownership
The Illinois corporate charter indicated that the authorized issue was one million shares of common stock, at no par value and 900,000 shares of common stock were issued. The stated capital was $245,632.79, paid-in surplus was $55,000, for a total capitalization of $301,632.79. The estimated value of all property was $3,468.34, of which $200 would be in Illinois and the balance in Fort Wayne, Indiana, and elsewhere out of state. The estimated business was shown as $500,000 annually, of which $115,000 was anticipated for Illinois.
During 1970 the board of directors and shareholders approved an amendment to the Articles of Incorporation authorizing an increase in common stock from one million to two million shares. As of October 15, 1970, the total stock issued was 1,208,581 shares for a value of $1,159,081.00. However, because of an accumulated deficit of $863,851.21, stockholders' equity was reduced to $295,229.19.
The annual report of Hub Airlines for the year ending October 23, 1970, indicated that George H. Bailey, Inc., owned 302,303 shares of Hub Airlines stock and Bailey Leasing Corporation owned 158,794 shares. George H. Bailey owns all of the stock of George H. Bailey Co., Inc. and Bailey Leasing Corporation. Bailey personally owns 128,334 shares. Thus, Bailey and the corporations wholly owned by him own 589,431 shares of the corporation's common stock or 48 per cent of the stock.
American Leasing Company of South Bend, Inc. owns 260,000 shares or 22 per cent of the company's stock. Bailey and the corporations wholly owned by him and American Leasing Company of South Bend Inc. are the only shareholders owning more than 10 per cent of the corporation's common stock. All of these ownerships are on record as of October 15, 1970.
There are 1,190 individual stockholders in the company, all of whom are in Indiana. Since there are no stockholders in Illinois, permission was not required of the Illinois Commerce Commission for the distribution of this common stock. J. Robert Kelleher, president, has approximately 166,000 shares in escrow, to be used for future sale for the acquisition of additional working capital. Chief pilot Floyd Fagen was given a stock option for 10,000 shares, exercisable at a price of $2.50 per share, ex-
106
Object Description
| Title | Intrastate air operations in Illinois |
| Creator |
Illinois. General Assembly. Legislative Investigating Commission |
| Subject [LCSH] |
Aeronautics, Commercial--Illinois Local service airlines--Illinois |
| Date Original | 1972 |
| Language | eng |
| Geographic Coverage | United States--Illinois |
| Contributing Institution | Illinois State Library |
| Rights | Materials in this collection are made available by the Illinois State Library. To request reproductions or inquire about permissions, contact: islimg@ilsos.net. Please cite the item title and collection name. |
| Identifier | 0653360 |
| Type | Text |
| Format | Book |
| Digital Format | JPEG |
| Collection Name | Illinois State Library - General Collection |
Description
| Title | Page 106 |
| Contributing Institution | Illinois State Library |
| Rights | Materials in this collection are made available by the Illinois State Library. To request reproductions or inquire about permissions, contact: islimg@ilsos.net. Please cite the item title and collection name. |
| Transcript | when they tendered their resignations from the Hub board of directors. On June 19, 1970, Hub Airlines purchased the route structure and assets of Commuter Airlines from the receiver in bankruptcy in Chicago, pursuant to the following notice of sale: The offering will include the business of a presently operating third-level commuter air carrier providing scheduled services from Chicago, Illinois, to Springfield, Illinois; Detroit, Michigan; and Elkhart, Indiana. The airline is operating an exclusive intrastate route from Meigs Field in downtown Chicago to Springfield, Illinois, under Illinois Commerce Commission Certificate of Convenience and Necessity, which said Certificate and route will be offered, subject to the approval of the Commission. Scheduled service from downtown Chicago to downtown Detroit, as well as service from O'Hare Field, Chicago, Illinois to Elkhart, Indiana, is also provided by the carrier. In addition, also being offered for sale is the Receiver's right, title and interest in and to the goodwill of the operating company, its customer lists, use of the counter space and terminal facilities, and the right to use of the name "Commuter Airlines." The receiver will offer physical assets valued at over $450,000 at cost, consisting of an inventory of ground equipment, tools, aircraft spare parts, two P.T. 6A engines, office furniture, fixtures and equipment located principally at Midway Airport, Chicago, Illinois, and at the office of the company located at 5849 South Cicero Avenue, Chicago, Illinois. Hub Airlines' investment in the acquisition of Commuter Airlines, less the two P.T. 6A engines, was $25,000 for the routes, goodwill, etc., plus $84,000 for the parts inventory and $8,500 for office furniture and equipment. A few months after the acquisition of Commuter Airlines, Hub Airlines lost its temporary certification from the Illinois Commerce Commission to operate a route between Chicago's Meigs Field and Springfield. (This will be discussed in detail in the flight operations portion of this chapter). Starting in the beginning of 1972, the principal office of the corporation moved from Baer Field, Fort Wayne, Indiana to Chicago's Midway Field. Stock Ownership The Illinois corporate charter indicated that the authorized issue was one million shares of common stock, at no par value and 900,000 shares of common stock were issued. The stated capital was $245,632.79, paid-in surplus was $55,000, for a total capitalization of $301,632.79. The estimated value of all property was $3,468.34, of which $200 would be in Illinois and the balance in Fort Wayne, Indiana, and elsewhere out of state. The estimated business was shown as $500,000 annually, of which $115,000 was anticipated for Illinois. During 1970 the board of directors and shareholders approved an amendment to the Articles of Incorporation authorizing an increase in common stock from one million to two million shares. As of October 15, 1970, the total stock issued was 1,208,581 shares for a value of $1,159,081.00. However, because of an accumulated deficit of $863,851.21, stockholders' equity was reduced to $295,229.19. The annual report of Hub Airlines for the year ending October 23, 1970, indicated that George H. Bailey, Inc., owned 302,303 shares of Hub Airlines stock and Bailey Leasing Corporation owned 158,794 shares. George H. Bailey owns all of the stock of George H. Bailey Co., Inc. and Bailey Leasing Corporation. Bailey personally owns 128,334 shares. Thus, Bailey and the corporations wholly owned by him own 589,431 shares of the corporation's common stock or 48 per cent of the stock. American Leasing Company of South Bend, Inc. owns 260,000 shares or 22 per cent of the company's stock. Bailey and the corporations wholly owned by him and American Leasing Company of South Bend Inc. are the only shareholders owning more than 10 per cent of the corporation's common stock. All of these ownerships are on record as of October 15, 1970. There are 1,190 individual stockholders in the company, all of whom are in Indiana. Since there are no stockholders in Illinois, permission was not required of the Illinois Commerce Commission for the distribution of this common stock. J. Robert Kelleher, president, has approximately 166,000 shares in escrow, to be used for future sale for the acquisition of additional working capital. Chief pilot Floyd Fagen was given a stock option for 10,000 shares, exercisable at a price of $2.50 per share, ex- 106 |
| Collection Name | Illinois State Library - General Collection |
