Evening star., 1947-07-27
Hughes Inquiry Opens
Tomorrow; Ferguson
On Press Agent Trail
By jones Y. Newton

"A senate subcommittee tomor-
row will begin a public investi-
CATION Of the war contract &C
tivities of Howard Hughes, which
is expected to show among other
things that the organization of
the multi-millionaire movie pro-
ducer and aircraft builder spent
large sums entertaining public
officials.
Meanwhile, Chairman Ferguson of
the War Investigating Subcommit-
tee, said the State Department had
been asked to help locate John
Meyer, former public relations di-
rector for MIR. Hughes, who allegedly
had charge of the entertaining.
Senator Ferguson said the State
Department agreed to ask Mr.. Meyer
to return If he can be found and
III he does not, they will cancel his
passport" Mr.. Meyer reportedly
Is in South America. The subcom-
mittee questioned the man in closed
sessions June and 4, but since
then has lost track of him.
"On Business for Hughes"
The chairman said Mr.. Meyers
passport covers all countries except
the occupied ones, including Eng
land, France, Ireland, Italy, Greece,
Egypt, Palestine and Switzerland
Mr.. Ferguson said that If Mr.
Meyer does not turn up by July 30
Mr.. Hughes will be asked where he
Is and why he does not appear He
made public a letter from Commit
tee Counsel William P. Rogers to
Noah Dietrich, vice president of
Hughes Tool Co., in which the at
torney said he understood Mr.. Meyer
"is out of the country on business
for the Hughes Aircraft Co."
For reasons which you we'll
know" Mr.. Rogers wrote, sit may
appear to the committee that Meyer
Is being kept out of the country to
avoid public questioning about Ger
tain expense accounts of the Hughes
Tool Co."
The committee investigation,
which has become somewhat con-
fused at this point with reports of
parties and entertaining, supposedly
Is aimed at two aircraft contracts
which the Hughes interests got dur
ing the war.
Deal Engineered by Kaiser.
One was the deal engineered by
Henry j. Kaiser, West Coast in
dustrialist, which called for con-
struction Of huge cargo flying boat.
the plane, in which Mr.. Hughes
sank millions of his own money as
well as $18,000,000 of the Govern
ment's, has not yet flown, although
there were reports last night that
final work on it was being rushed in
the hope of starting tests this week.
The other is contract given Mr..
Hughes to build photo
sance war planes, one of which
almost cost the builder his life when
he was test-fying it last year.
The two contracts totaled about
$40,O0o,000.
Apparently missing from commit
tee evidence is any tie-in betwesn
the letting of the two contracts and
the entertaining of public officials
indicated by expense accounts Mr..
Meyer turned in to the Hughes Or
ganization.
Entertaining Came Later.
The Kaiser-Hughes flying boat
deal took place September IT, 1912,
while the contract for the photo
planes was let about year later.
At least that part of Mr.. Meyers
alleged entertaining for Hughes in
terests which has been leaked" to
newsmen took place several years
later.
Secretary of the Interior Krug,
who was among the officials men
toned in Mr. Meyers purported ex-
penSe accounts, declared that he
was not present at three affairs at
which the Hughes man allegedly