The Boeing Airplane Co. ... Breaking Up
Following the Depression, the 1934 antitrust legislation that prevented airframe manufacturers from owning mail-carrying airlines resulted in the breakup of Boeing-owned United Aircraft and Transport Corp. UATC became three entities: United Air Lines (responsible for air transportation), United Aircraft (responsible for manufacturing operations in the eastern United States; renamed United Technologies), and the Boeing Airplane Co. (responsible for manufacturing operations in the West; included Stearman Aircraft and Boeing Aircraft of Canada).
Disheartened, William Boeing resigned his chairmanship of the corporation and left the aviation business to raise horses. Philip Johnson resigned his presidency of United Aircraft and Transport and went to Canada to help establish Trans Canada Airlines.
Claire Egtvedt, who had been named president of the Boeing Airplane Co. in 1933, took over the chairmanship as well as the presidency and decided to build the "Big Boeings." He believed that the company's future lay in large bombers developed in tandem with equally large passenger airplanes.
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