Evening star., 1947-08-06

1 THOMAS SLACK,
Mr.. Hughes Attorney.
A. haven't the slightest idea.
/ @. Why did you approve it?
A. Because I thought it was bust
ness.
In seeking to find out whether MI
Meyer was reimbursed for any o
these items, Senator Ferguso
asked, Did Col. Hall ever pa,
you any money!" mo, not at all,
Mr.. Meyer answered.
i Turns to Lawyer For Advice.
When Senator Ferguson turned t,
two more accounts for expenses il
New York early in October, 194t
Mr.. Meyer wanted to know why h
should have to read those, sine
notations showed they were to b
charged to Hughes Productions, ant
not Hughes Aircraft. Recalling h
had protested against discussing
these in the earlier closed hearings
Mr.. Meyers said, Il want TO talk tt
Mr.. Slack about this
From the end of the COMMITTEES
table Mr.. Slack told him to 81
ahead and read them.
Mr.. Meyer read the names o.
Howard Hughes, Col. Hall and "twt
people"
And the two people were girls
names?" asked Senator Ferguson.
"Yes, they had dinner together
that's a crime" Mr.. Meyer retorted
When Mr.. Meyer said he wasn't
sure whether he was there, Senator
Ferguson wanted to know why hi
paid it. He said he may have beer
there, or the bills may have beer
sent to him. He agreed with Sena.
tor Ferguson that the St. Regis Ho-
tel and the Copacabana Club knew
where to reach him.
Unable to Explain Change.
"Can you say why the charging ot
these items were changed from
Hughes Aircraft to Hughes Produc.
tions?". inquired the chairman
Possibly some bookkeeping rea-
son. wouldn't know about it," the
witness answered.
AS Mr.. Meyer neared the end d
his long gruelling on the stand, HI
launched on a defense of thu
amounts spent for public relations
He said that out of a $500, 900 ,0O(
business by the Hughes Tool Co
(Which includes the aircraft ane
movie divisions) he spent only $163,,
921.55 for public relations.
Roy Sherwood an auditor for tn,
company added that of this tota
only $97,821.51 was applicable to tn
aircraft division. Mr.. Sherwood ais,
said Mr.. Meyers total expenditure
amount to only .053 per cent of tn
total volume of business.
Senator Ferguson then brough
out that Mr.. Meyer was the onl,
public relations man employed OF
the Hughes payroll. The chairman
asked Mr.. Meyer if it was not tru'
that Hughes aircraft division has
only one customer-the Unitet
States Government.
Vice President Interrupts.
Noah Dietrich, executive vice pres
ident of the parent Hughes Tool Co.
broke in to assert:
That's a misstatement," Senator
I'VE were selling to almost ever,
other aircraft company"
Turning to Mr.. Sherwood, Senate
Ferguson demanded:
well, who were you selling carg'
planes to?"
The Defense Plant Corp. "a Gov
eminent agency"
@. Who were you selling FL
Reconnaissance planes to?
A. To the Army Air Forces.
@. ANY one elsea
A. No, sir.
@. Did you have any other Gus
toners of the aircraft division?
A. We had a great many Gus
toners throughout California an,
the Middle West for the armamen
section of the aircraft business.
Witness Agrees on One Customer
Senator Ferguson insisted, how
ever, that they had only one Gus
toner for the planes they wer
building, and the witness agreed.
Turning back to Mr.. Meyer, tn,
chairman asked, who did you en-
tertain outside of the Army-pub
lie officials I mean-to get busi
ness?"
I'D have to look at my files ant
records" Mr. Meyer replied.
isn't it true you were intereste,
in two items-the cargo plane ant
the Fill?
The witness agreed
Senator Ferguson inquired if MI
Hughes ever objected to the wa,
Mr.. Meyer conducted the public re
lations work.
He never objected to me-" MI
Meyer replied. "And 7 think he wa
too busy to worry about what
was doing"
Senator Ferguson said the subcom
mittee, before it concludes its hear
ing, will go into entertainment
reported to have been provided TO
Secretary of the Interior Krug. MI
Krug will be given an opportunity t
testify if he desires, Senator Fer
guson added.
In addition to attacking the ex
pense accounts Mr.. Meyer liste
under his name. Mr.. Roosevelt
closed his testimony with a stron
defense of his action in recommend
ing the Hughes plane in 1913 a
most likely to give the Army Al
Forces the speed and other per
formance required for reconnais
sance.
Agrees on Contract Study.
i While he agreed the Senate shoul
investigate how the plane contrac
was carried out, Mr.. Roosevelt
bitterly complained that the Meye