Evening star., 1947-11-05
Hughes Aircraft
Hearing Is Told
|0f Pressure
Wilson, Ex-WPB Aide,
Says Kaiser Fought
Voiding of Contract

Charles E. Wilson, former vice
chairman of the old War Pro-
duction Board, told d Senate
War Investigating Subcommittee
today that outside pressure"
was exerted against WPB in 1e43
to prevent cancellation of How
ard Hughes contract to build the
worlds largest flying boat.
Under questioning by Chairman
Ferguson, Mr.. Wilson testified that
Henry J. Kaiser. originally associ-
ated with Mr.. Hughes in the flying
boat enterprise, was one of those who
brought such pressure"
Mr.. Wilson was the first witness
as the committee resumed hearings,
interrupted last August, into Mr..
Hughes $40,0O0,000 worth of con-
tracts to build the flying boat and
photo reconnaissance planes.
Order Was Reversed.
Mr.. Wilson related that he ordered
cancellation of the Hughes flying
boat contract in 1943, but that the
order was reversed after a confer
ence between WPB Chairman Dom
aid M. Nelson and Jesse Jones, then
chairman of the Reconstruction
Finance Corp.
He said Mr.. Kaiser came in to
see me and put considerable pres
sure for continuation of the job"
Il also knew of the interest of
Jesse Jones department in it be-
cause his Office had furnished the
money for it after Mr.. Nelson orig
inally awarded the contract" Mr..
Wilson added.
Mr.. Wilson, president of the Gen.
eral Electric Co., explained his main
reason for cancelling the Hughes
contract was that he was convinced
the big plane could not be COM
pleted in time to serve the war
effort.
His duty as chief of the PWB
aircraft section, he said, was to see
that manpower and materials were
used to best advantage to meet i'm
mediate war needs. He also had
recommendations from the Army
and Navy aircraft experts that the
contract should be cancelled.
Made Thorough Study.
Mr.. Wilson testified that his study
of the Hughes contracts was extraor-
dinarily thorough. He and other
I yYYnD rf2 o1c Ha coid dfH MT Y1t
to give Mr.. Hughes or Mr.. Kaiser
any reason to complain that the con-
tract, originally recommended by
WPB, was being Cancelled by WPB
without proper Investigation.
Mr.. Wilson added that the pro-
cedure in the Hughes case was un-
usual, however, in that the Defense
Plant Corp. handled the contracts.
The big flying boat, on which the
Government has spent $4,000, 900,
has been under construction since
WPB was overruled and was flown
for the first time last Sunday.
Before Mr.. Wilson took the
witness stand. Senator Ferguson
said the committee is seeking to
determine any deficiencies in Ger
tain procurement procedures" that
brought about failure TO produce fly
able planes for use during the war.
Notwithstanding the substantial
expenditure of Government funds
and the diversion of industrial ia
cilities and manpower involved in
these projects, during the war years,
no fyable planes were completed
for use during the war" Senator
Ferguson said.
The Hughes hearing, he con-
tinued, are to obtain all relevant
facts which might serve ultimately
to affix responsibility" for any de-
ficiencies in procurement.
Hearings Reopen Quietly.
To date. Senator Ferguson said
the hearings suggest that both the
large flying boat and the photo re-
connaissance plane projects did in
volve departures from normal war
time procurement channels"
The hearings reopened quietly to-
day. Mr.. Hughes and his free
spending publicity agent, John w.
Meyer, were not present, but they
are expected tomorrow or Saturday.
The hearing room was about three
quarters filled and only four motion
picture cameras were set up.
Senator Ferguson, reading a pre-
pared statement, promised the hear
ings would be conducted with fair
ness to all. But he warned that the