The Waterbury Democrat., 1943-10-23


June 80, 1912, being topped only by
Louis 3. Mayer Of the movies; O. q.
Swibelius Of New Haven, Conn; Eu-
gene Grace Of Bethlehem Steel and
Thomas j. Watson Of International
Business Machines.
Hawley Is sole owner Of his COM
pany, which means that he paid
himself this salary for his own serv-
ices. This Is interesting because II
Is recalled In washington that
about year ago. when the admin
istration was pushing Its $25 ,000-a-
year salary limitation, Hawley sent
O long wire TO the president, saying
In effect that $4,000 q year was all
anyone could use and that he, Haw-
ley, was all for the presidents pro-
gram.
PRE-WAR BUSINESS
Before the war, In fact, Hawley
had O nice little business and he
paid himself much less than $4,000
or even $4,000 year. Before 1899,
Hawley paid himself $4,000 O year.
Then he raised 1t to $4,000 a year,
and the most he ever paid himself
before he got into war contracting
on really big scale was $4,000 q
year. His pre-war business was
making fire pumps. His plant was
valued at about $2,3 million and
from 1887 to 1899 his sales were
about $l.5 million annually. In 1912
his non-war business was reported
at $l.7 million indicating that he
has been able not only TO maintain
but TO increase his regular business.
which Is Of course not subject to
renegotiation In any way.
Northern Pumps war business
consisted Of contracts to make
mounts for the Nays famous Ave-
inch guns, His plant expansion to
handle this government business
was financed by government money
-$l7 million Of It. Part Of 1t was
arranged through q government
Emergency Plant Facilities Corpor-
alton contract, under which Hawley
built O plant that he figured he
could use after the war and on
which amortization Is figured on
pretty liberal terms.
The amount Of Northern Pumps
war contracts Is still considered re-
stricted war information and cannot
be revealed, but II can be told that
In the course Of time the Navy De-
partment came to the realization
that Northern Pump was making
too much money, and 1t entered into
regular proceedings through the
Navy Price Adjustment Board to
have Mr.. Hawley give some OF his
profits back to the government.
HEAVY PROFITS
The Navy was ready and willing
to admit that Northern Pump had
done an excellent production job
still, the department was insistent
that Mr.. Hawley, whose solely.
owned business had been increased
perhaps 90 times on government
financing, was making too much
money.
John Hawley thereupon became
one OF the leaders In the battle
against renegotiation and for q
change In the renegotiation law
passed by Congress. He published
pamphlets, no got on the air to
broadcast his complaints against
renegotiation, and he came to
washington. At one time he hired
lobbyist to plead his case for him
in Washington, but he made that
mistake only once, After that he
handled his own pleadings.
Renegotiations have dragged on
through the months. The present
status OF the case Is that Hawley
has made q proposal to the Navy.
agreeing to o return Of some OF his
so-called excess profits--if the Navy
will agree to turn over to him GER
tain OF the facilities he Is now US
ing, built with government money
He has not specified what these IA
cilities are, and the Navy Is waiting
to hear.
Hawley is a keen, colorful, mid
dle-aged, go-gettin' rugged individ-
ualist business man and manufac-
turer OF the old school, around
whom many legends have naturally
grown. One Of them Is that he calls
his Yacht Navy Gravy.