Evening star., 1947-11-13
'AAF Checkup
Stocks Revealed
10 Queried in lo43
On Aircraft Holdings,
Hearing Is Told
By Robert K. Walsh


procurement officers held stock
in aircraft companies during the
war caused the then Air Force
chief of staff to ask 10 officers,
including Mai. Gen, Bennett E.
Meyers, for secret reply" on
whether they owned such securi-
ties, a Senate War Investigating
Subcommittee was told today.
Replies to the letters written by
1t. Gen. George E. Stratemeyer,
then AAF chief of staff. at the
direction of Gen. H. H Arnold, then
Air Force commander, never were
publicly disclosed or made the sub
iect Of further investigation. Col.
William Nuckols, an Air Force head
quarters officer, testified.
This testimony came as the SUBJ
committee started public hearings
on second phase of procurement
procedures" during the war.
Exposure Methods Fought.
1T is our desire to determine
what methods were used by the
Army Air Forces in uncovering and
exposing possible fraud. corruption
and other improper actions OH the
part of high-ranking procurement
officers" Chairman Ferguson de-
clsred.
The Howard Hughes war contract
hearings were the first phase OF this
investigation. The Hughes hearing
is in recess until 10 am. Saturday.
Senator Ferguson. referring indi-
rectly to the Hughes contracts in
quiry. stated that certain informa-
ton has come to the attention Of
the committee concerning the rela-
tionship between a high ranking
AAF procurement officer and con-
tractors and subcontractors doing
business with the Air Forces"
He was understood to have been
referring to Gen. Meyers. retired
Air Force deputy chief of procure
ment, who was active in negotia~
tion for a photoreconnaissance plane
contract with the Hughes COM
pany in 1914
Gen. Meyers testified yesterday
that he and his wife made a paper
profit" of $4,000 by buying $4,-
100000 in short-term Government
bonds on margin during the war.
He denied he ever asked or accepted
any loan from Mr.. Hughes to make
the bond purchases.
Other Officers Listed.
Gen. Meyers and the other Air
Force procurement officers received
the letter from Gen. Stratemeyer
on January Is, 1943, inquiring
whether they held or ever had
owned stock in any aircraft concern.
The other officers and the ranks
and assignments they held at the
time. are Maj. Gen. Oliver P. Echols,
commanding general AAF material
command,
Brig. Gen. Benjamin w. Chidlaw,
assistant chief of staff, material
command.
Brig. Gen. A. w. Vanaman, COM
manding general of the material
center at Wright Field, Dayton,
Ohio.
Brig. Gen. C. E. Branshaw. AAF
district supervisor in California.
Col. Orval R Cook, district super.
visor in New York City.
Col. A. M Drake, district super
visor in Detroit.
Col. Ray J. Harris. district super
visor of the Midwest command,
Kan.
Col. William F. Volandt, assistant
chief of staff Of the material COM
mand.
Brig Gen. T. j. Hanley, deputy
chief of air staff.
Col. Nuckols testified that he
heard rumors in early 1943 that
Air Force purchasing officers had
heavy holdings of stock in COM
panies with which they were deal
ing.
Acted to Answer Rumors.
Col. Nuckols was an Air Force
public relations officer at the time,
and he said he proposed steps for
the AAF to be prepared to answer
such rumors if they gained wide
spread currency.
He said he suggested that ar
be made with the As
sociated Press to make a survey OF
such holdings and also that letters
be sent out to high Air Force officers
asking them to list confidentially
their holdings of such stocks.
The letter which was sent said:
Certain rumors have been To-
mented which tend to undermine
morale within the AAF and impair
confidence of the high command
(See HUGHES, Page A-4D