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In the early spring of 1916, Atwood started a new venture in Williamsport, Pennsylvania, to manufacture both planes and engines. He built an experimental flying boat which was test flown on the West Branch of the Susquehanna River during June. That month the Atwood Aeronautic Company was formed, with Atwood as President, H.E. Brown, Vice President, W.P. Beeber, Treasurer and Edgar Munson, Secretary. The plane was a large span biplane with some steel construction in the hull. The engine was a 12-cylinder Vee-type of 150-180 h.p. 

The coming of World War I evidently halted this venture, for in April, 1917, Atwood joined the many pioneer aviators who assisted the Government in the training of pilots for service. During the month he was placed in full charge of establishing an aviation school for the Du Pont family at wilmington, Delaware. In June, he had the Du Pont School of Aviation in operation on the estate of John J. Raskob at Claymont, Delaware. This appeared to be a school for all college men who wishes to become aviators in the Government service. Their base of operations was on the Delaware River and both land and water flying instruction was available. Atwood was manager of the school and apparently remained there for the duration of wartime training. He became a member of the Aero Club of America in May, 1917. 

After World War I, Atwood seemed to have retired from aviation and evidently returned to his native New England, where he became interested in the chemical problems of bonding plywood and other veneered materials. This led him to patent a resilient type of automobile wheel made of bonded wood and rubber construction. In 1923 he formed a company in monson, Massachusetts, known as Rubwood Wheel, Inc., to manufacture these wheels. A factory was built and Atwood reportedly remained there until about 1928, and during that time talked some of building an airplane. 

Following this Atwood moved to Milford, New Hampshire, took over a formed furniture factory and started to make fabricated and bonded furniture, but this venture ended with the 1929 financial crash. After this was over he did