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In 1919 and 1920 Boeing rebuilt 50 Army DH-4 planes. When completed Ed Hubbard tested the B-1 flying boat at Lake Union, then in 1920 purchased it to start a mail service between Seattle and Vancouver.

Hubbard made a distinct success of this venture, then in 1926 he and Boeing executive Claire Egfredt proposed that Boeing enter a bid for the Chicago-San Francisco air mail route. Boeing approved of the idea and was awarded the contract. He then formed Boeing Air Transport on July 1st 1927, to carry on the service and prepare to build the necessary planes for operation. The route prospered, additional lines were added and they started carrying passengers.

In 1929 Boeing and Frederick Rentschler of Pratt and Whitney formed the United Aircraft and Transportation Corporation, to become the largest and strongest organization in American aviation. The new combine included the Boeing Airplane Company, Boeing Air Transportation, Pratt and Whitney Corporation and many other American and Canadian aviation firms. Boeing became chairman of the new corporation and Rentschler was President.

All went well until the springs of 1934 when the government ordered dissolution of the United Aircraft and Transportation Corporation. Air mail contracts were taken over by the Army and Boeing Airplane Company seceded from United, again becoming an independent manufacturing firm.

Angered by the action, Boeing resigned, sold his stock and left the aircraft industry. He then devoted most of his time to retirement hobbies and cruising the coastal waters in his yacht "TACONITE." He also kept a sea-plane for visiting remote inland lakes.

In 1936 Boeing became interested in thoroughbred horses and through 1949 raced them at the best track. In 1942 he purchased a large grass lands ranch east of Seattle where he also raised prize Hereford cattle. He called this ranch Aldarra Farms and later built a luxurious home there and moved from the city to enjoy the privacy and scenic beauty of mountain country living.

Boeing passed away suddenly on September 28, 1956 at age 75, while cruising on his yacht in Puget Sound. He was survived by his wife and son.
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