Business School Warns Airplane Corporations

In a report published Sunday, Lynn, L. Bollinger and Tom Lilley, associate professors at the Business School, predicted that the United States government will have to "Institute major corrective actions" to keep the aircraft industry from a financial collapse following the war.

Pointing out that 80 per cent of the plant capacity of the industry is government owned and that stockholder's capital is only equal to eight per cent of the volume of sales, the report continued to show " the small margin by which current assets exceed current liabilities."

The report stated that the average company's total liquid funds could, at the end of 1942 meet five weeks' expenses for payrolls and materials. The enormous costs of conversion after the war will leave the aircraft industry with funds that "may prove inadequate for maintenance of peacetime employment and production."