The Seversky Aircraft Company began operating out of new facilities in Long Island in 1936, purchasing three factories, a flying field and hangar along with a seaplane assembly base at Famingdale and Amityville, Long Island. Despite landing several government contracts, Seversky Aircraft was never able to turn a profit under Seversky's management and by September 1938, the company had to be bailed out again by Paul Moore (Edward's brother and heir). His financing of a rescue came with the proviso that Seversky, as President, would have his personal budget cut, while the board of directors transferred more power to managing director Wallace Kellett. A controversial contract Seversky negotiated in secret with the Japanese for 20 SEV-2PA-B3 fighters created antagonism with the War Department, leading inevitably to the U.S. government putting pressure on the USAAC to limit the P-35 order to the initial batch of 76 aircraft.