The country, then in the 
      depths of a financial depression, could not find expenditures for 
      investment in a commercial airliner - - no matter how advanced the 
      engineering was. Searching for financial backing to make their product a 
      reality, Vance Breese left for the West Coast. Sources were no more 
      receptive there either until a contact was made with E.L. Cord, President 
      of the Cord Automobile Company. Cord, living in Los Angeles, reviewed the 
      material presented by Breese and expressed the desire to use the machines 
      in his Century Airlines. Before the aircraft could be produced however, 
      Cord was forced to sell the airline due to labour disputes in early 1933.
      Investments in the 
      aviation field by Cord Corporation had become quite extensive. The Stinson 
      Aircraft Corp. and the Lycoming Manufacturing Company were purchased in 
      1931. During the same year the operating field was entered with the 
      organization of Century Airlines, Inc. and the following year controlling 
      interest in Transamerican Airlines, Inc. was acquired. By 1933 the Cord 
      Corp. had also purchased the Smith controllable pitch propeller company.
      
      Several airlines were 
      contacted in the meantime to see their response to the new design. 
      American Airlines showed great interest, although a number of changes were 
      necessary to meet their needs. American gave a tentative order for ten 
      aircraft if the design could meet the requirements. Breese felt this could 
      be done and with this received the needed financial backing of E.L. Cord.
      Immediately after the 
      business transaction, Vultee was notified and he left Detroit to join 
      Breese. The new company was incorporated under the laws of California on 
      January 26, 1932, as the Airplane Development Corporation. A small office 
      was rented at Grand Central Air Terminal in Glendale. On January 18, 1932, 
      Vultee hired the first employee, Richard Palmer as Assistant Chief 
      Engineer. Together they started work on the redesign of the original 
      concept to suit the needs of America Airlines. It was necessary to 
      accommodate eight passengers. The original was designed for six. A more 
      powerful engine was necessary. The aircraft grew in overall dimensions, 
      design and scope. It incorporated many advanced aerodynamic features. Then 
      a move was made to a building at the United Airport. By spring it was 
      necessary to move back to Grand Central field where sufficient room was 
      found in a hangar-plant as tooling got underway. Throughout 1932 the 
      airplane took shape. This was the first commercial type aircraft to have 
      full attention from an airline-engineering department throughout its 
      development.
      On November 15, 1932 
      during reorganization of the company, permission was granted by the state 
      of California to sell all its authorized stock of 500 shares to the Cord 
      Corporation. With controlling interest, the management took several 
      unexplained steps. Vance Breese, who was tied up with financial matters in 
      the business, received a termination of employment notice. No explanation 
      was given and it befell Vultee and Palmer to complete the V-1 prototype.
      The prototype was 
      completed in February 1933 and Marshall Headle was called upon to perform 
      initial test flights. On the 19th, the V-1 made its first flight. The 
      airplane lived up to every expectation. Not only was the company elated 
      but also American Airlines shortly thereafter signed the order for 10 
      production machines.
      The V-1 was turned over to 
      American for in-service evaluation. The findings of both manufacturer and 
      purchaser found several recommendations of improvements on forthcoming 
      production models. The new aircraft emerged as the Vultee V-1A.
      On November 30, 1934 the 
      Vultee concern was reformed as the Aviation Manufacturing Corporation, 
      thus acquiring all of the Cord interests. By this time the V-1 and eight 
      V-1As were built and delivered to American Airlines, plus two to private 
      owners. Under new management an additional four were delivered to American 
      and another 10 to other interests. In April, 1936 when the facilities were 
      moved from the hangar/plant at Glendale to larger quarters at Downey, 
      California, taking over the old E.M. Smity (EMSCO) field and plant, the 
      last of 24 V-1As were delivered.
      The year 1936 proved a big 
      one for aviation, especially the Douglas Company and all the airlines. The 
      DC-2 and DC-3 were making airline headlines. Celebrating their tenth 
      anniversary late that year, American Airlines took a bold step with a 
      complete re-equipment program. An all-Douglas fleet was ordered. As a 
      consequence their multi-engined Stinson As, Curtiss-Wright T-32 Condors 
      and the Vultees were being retired. The V-1As remained in service with 
      American a little under two years. In September 1938 the last Stinson 
      trimotor in service (Cincinnati-Washington route) was replaced by a DC-3. 
      American Airlines was now completely equipped with 32 Douglas machines.