Born in Minerva, Texas, Smith attended the University of Texas despite never having graduated from high school. Upon graduation, Smith worked as an accountant for the accounting firm of Peat Marwick Mitchell and later ran a number of businesses, including a Western apparel store and a firm that sold state records of new mothers to manufacturers of baby supplies. Smith's abilities were first recognized by Texas industrialist Alva Pearl Barrett, who in 1928 set up the airline Texas Air Transport (TAT), which became Southern Air Transport. Smith joined SAT as a vice president in 1929, and through a series of mergers SAT became part of American Airlines. American's owner, E. L. Cord, hired Smith to run the nationwide network based on his able management of Southern operation. In 1934, he becam