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plane was a total wreck, but Allan received only cuts and bruises.  He decided that was enough of the exhibition business however and quit then and there. 
Following this he returned to California with plans to build a 3-seat tractor seaplane.  Malcolm was interested in joining in the venture.  They succeeded in getting Mac Mamlock, head of the Alco Cab Company, to assist in financing the project, and the Alco Hydroseroplane Company was formed.  Working days to earn their living, and at night in the garage, they built this new plane during 1912 and into 1913.  Called the Model G, it was a fuselage type tractor biplane of 46 feet span on the upper wing and 30 feet on the lower.  It had one main float, was powered by an 80 H.P. Curtiss Vee-Eight engine and could carry 600 pounds load.  The Model G was completed and taken to San Francisco Bay near Fort Mason on June 15th where Allan made a short flight at once, then took Malcolm for a 20 minute jaunt about the Bay.  It was the first tractor Hydro in the United States capable of carrying more than one passenger.  
Passenger carrying business was slow and the brothers did not earn much with the plane until the Panama-Pacific Exposition opened there in the spring of 1915, then they really developed a flourishing business.  That summer they carried over 600 passengers without accident and made over $6,000.  Allan became a very skillful pilot, their passenger business was the big attraction at the Exposition and the Lougheed name became widely known that summer.  
After the season was over the brothers shipped the Model G and moved their operations to Santa Barbara where they assembled the plane and started carrying passengers.  At Santa Barbara the brothers interested B. R. Rodman to finance them and the Lougheed Aircraft Manufacturing Company was formed in the rear of a garage near the waterfront.  Two noteworthy individuals joined them, Early Bird Anthony Stadlman, with whom Allan had worked back in Chicago, and a young engineer-draftsman, John K. Northrup.
A new large twin engine, tractor flying boat was started, called the F-1.  It had 74 feet span on the upper wing, 47 feet on the lower and was powered by two 160 H.P. Hall-Scott engines.  It was a short hull type boat with outrigger tail and designed to carry ten passengers.  They continued the passenger hopping
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