In January 1926 Daniel Guggenheim, president of the vast American copper-mining empire of Guggenheim Brothers and described as 'a millionaire among millionaires', inaugurated the Daniel Guggenheim Fund for the Promotion of Aeronautics with deeds of gift totaling more than $2.5 million. The Fund aimed at promoting 'airmindedness' throughout the USA and furthering the development of commercial aircraft 'as a regular means of transportation of both goods and people', and was administered by trustees under the presidency of Daniel's younger son, Harry F. Guggenheim; the trustees included William F. Durand, Charles Lindbergh and Orville Wright.
On April 20, 1927, the Fund announced a Safe Aircraft Competition, whose object was 'to achieve a real advance in the safety of flying through improvement in the aerodynamic characteristics of heavier-than-aircraft, without sacrificing the good, practical qualities of present-day aircraft'; a first prize of $100,000 and five 'Safety Prizes' of $10,000 each were offered and entries were invited between September 1, 1927, and 31 October, 1929. The original rules were comprehensive and stringent, comprising qualifying requirements which included full compliance with the US Department of Commerce airworthiness regulations and a top speed of at least 110 mph (177 kmh), and a schedule of safety tests and demonstrations of ability to:
(a) fly level with engine on at not more than 35 mph (56 kmh)
(b) glide for three minutes with engine off at not more than 38 mph (61 kmh)
(c) land over a 35 ft (11 m) barrier within a total distance of 300 ft (90 m) with ground run under 100 ft (30 m)
(d) take off in a ground run of 300 ft (90 m) and thereafter to clear a 35 ft (11 m) barrier 500 ft (150 m) from
the starting point.
The prize was to be awarded for the most marks scored in accordance with a scale totaling 200 bonus marks; in addition the aircraft had to achieve a flattest gliding angle of 8° and a steepest gliding angle of 16° without exceeding 45 mph (72 kmh), to demonstrate stick-free stability from 45 to 100 mph (70 to 161 kmh) at any throttle opening, and ability to recover from abnormal conditions including an engine cut during take off from a plot 500 sq.ft (46 sq.m) surrounded by a 25 ft (7 m) barrier within which the subsequent 'dead-stick' landing had to be made.