Business: Air Trust

An aviation milestone was the announcement last week that American Airlines planned to sell equipment trust certificates to finance 60% of the cost of its 20 new Douglas planes. It was the first time that anyone ever considered planes suitable collateral for bonds, though equipment trust certificates backed by locomotive or hopper cars are an old story with railroads.

Buyer of the certificates will be Jesse Holman Jones's RFC. Nevertheless, Mr. Jones is not noted for shoestring commitments. Douglas Sleepers cost more than $100,000 each, and after all 20 are delivered to American...

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