Evening star. [volume] (Washington, D.C.) 1854-1972, 1947-11-16
Hughes Insists
Probe Failed 10
ProveCharges
Evidence Withholding
Denied by Ferguson;
Plane Inquiry Ends
By Robert K. Walsh

from Senate hearings yesterday
by declaring testimony already
given and evidence still undis-
closed clearly proved he had no
corrupt relations with Mai. Gen.
Bennett E. Myers or anyone else
in getting war contracts.
The lanky, 42-year- old multimil-
lionaire plane builder, flyer and film
producer accepted the explanation"
of Chairman Ferguson of the Senate
War Investigating subcommittee
that "it had been impossible to put
all the evidence in at once"
The session ended on a compare.
lively cordial note, so far as Mr..
Hughes and the chairman were con-
cerned, but not before Senator Fer.
guson severely denied having with
held any evidence or having reached
conclusions" at this time. Mr..
Hughes had complained the COM
mittee kept the public in the dark"
until the last few days.
Gen. Meyers. the retired Air Force
procurement deputy chief, remained
bitter central figure in a broad
inquiry that will continue this week
into Air Force procurement prac-
tees.
Arnold Scheduled to Testify.
The subcommittee will hold morn
ming meetings starting at 8 am. to-
morrow on this bigger phase. Gen.
H. H. Arnold, retired Air Force COM
mander, Is scheduled to testify some
time this week While this inquiry
is continuing, another Senate COM
mittee on defense materials will
open hearings tomorrow on future
methods of procuring such supplies.
Gen. Meyers, accused by Mr..
Hughes and others of having sought
a $250,000 loan and a Hughes COM
pany job in 1914 while war contract
were pending. said last
night he would ask the subcommit-
tee to let him testify again.
He said he can refute those al
legations as well as evidence that he
held stock in aviation companies as
late as February 1943, and that he
had financial interest in a Dayton,
Ohio, company he recommended in
1910 to Bell Aircraft Corp. as a.
subcontractor.
The president of that company,
Lawrence D. Bell, said last week he
followed that recommendation and
during the war gave the Dayton
company $1053,O00 in war subcon-
tracts. Mr.. Bell said he did not
know Gen. Meyers had any financial
connection with the concern or. as
was testified several days ago, that
he also owned stock in Bell Air.
craft.
Parting Shot at Meyers.
Mr. Hughes smiled broadly at the
subcommittee as he left the stand.
but only after firing this parting
shot at Gen. Meyers who sat across
the room:
IF I wanted to get the photo
reconnaissance plane contract in
1914 by corrupt means. wouldn't I
have lent that Air Force procure
ment officer the $250000 he wanted
to borrow from me to buy Govern
ment bonds? 1 couldn't have lost
money on that deal and I would
have assured the contract. When I
turned him down thought I was
signing the death warrant of the
contract. That is clear proof that
my war contracts were not tainted
by fraud"
Earlier in the day, Neil S. Nc
Carthy, Los Angeles attorney who
resigned in November, 1914, as
lawyer for Mr. Hughes, bitterly at
tackled Gen. Meyers.
Mr.. Mccarthy said he was con-
WINGED now that Gen. Meyers made
a corrupt proposition" in trying to
borrow money from Mr.. Hughes in
1914 in an effort to shake down"
the aircraft manufacturer. Gen.
Meyers told him he wanted loan to
buy short term Government bonds,
Mr. Mccarthy said.
Here was a situation" Senator
Ferguson commented, where you
say the second-in- command of Air
Force procurement would have got
all the profits from a loan to buy
Government bonds, while the war
contractor was to take all the risks.
Doesn't that in itself indicate it was
an attempt at extortion?"
Decision Up to Committee.
Senator" Mr.. Mccarthy replied,
you're trying to make me do your
job and determine whether there
was corruption. That is for. this
lSee HUGHES, Page A-4.)