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business with the original Model G and worked on the new large plane through 1916 and 1917, then Allan made the initial test flight of the new F-1 on March 28, 1918. It proved highly successful and soon the Navy was interested and indicated they would like to conduct military tests with the plane at San Diego. As a result Malcolm flew the plane to North Island, San Diego, California, on April 12, 1918, carrying three passengers non stop 211 miles in three hours. There, after three months of entirely successful rigorous testing, the plane was turned down, reportedly due to Washington design standardization policies. It is of note, however that many of the F-1 features were later used on the NC planes of the first trans-Atlantic flight squadron. Later in 1918 the original Model G was dismantled, junking the airframe, salvaging only the engine and flight instruments, thus ending its noteworthy career of hundred of hours flying time and carrying untold numbers of satisfied sky riders without a single accident. After turning down the F-1, the Navy awarded the Lougheed's a token contract to build two Curtiss HS 2 L flying boats. During this project the Santa Barbara plant rose to 85 employees.
Determined not to give up on the F-1 they converted it to a land plane and attempted to fly to Washington, D.C., for publicity purposes but were forced to abandon the flight due to engine failures. It was then reconverted to a water craft which was used for passenger work for a time and carried the King and Queen of Belgium on October 11, 1919. During that period it was also used extensively in movie work.
As a post war effort the Lougheeds, Stadlman and Northrup then designed and built a novel sport biplane for the commercial market. Called the S-1, it was a very attractive folding wing biplane powered by a 2-cylinder opposed-typed 25 hp, engine they had made special for the plane. It was successfully tested at Redwood City, California, in 1919 by Early Bird Gilbert Budwig and flew well. It was displayed in an Air Show at San Francisco that year and extensively advertised, but due to the market being deluged with war surplus disposal planes at that time the S-1 project was dropped.
During this early period Malcolm had been considering another idea, hydraulic
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