Evening star., 1947-07-27

NL1 hxSxN0 ToAS ACoAAGo
Committee, which opens an in
Hughes, review evidence gath
Democrat, of New Mexico; Bre
gan; (standing): Pepper, Den
publican, of Delaware; McGrat
Mccarthy, Republican, of Wis
listed expenses for Mr.. Krug's en-
tertainment. The Secretary brande,
the purported vouchers "a swindl
of the grossest kind" Committe,
members said Mr.. Meyer had testi
fed that Mr.. Krug never did on
single thing" for the Hughes com
pany.
Gifts of Nylons Reported.
Members said that Mr. Myers in
dicated he entertained lavishly
About 27 expense slips the public
relations man turned in are sale
to show he spent a total of 5000
on u occasions.
They said Mr.. Meyer told then
he often gave expensive presents tt
girls who were present at the affairs
listing on one occasion $135 in nylor
hose He was quoted as saying tina
he made cash loan of $1,000 tt
an Army officer, which was repaid.
Committee members said MIR
Meyer told them that he was s
friend of Elliott Roosevelt, son o.
the late President, and had intro.
duced him to his present wife, Fay
Emerson, former movie actress.
The committee has been inquirins
into any possible connection of Mr.
Roosevelt with the continuation Of
the Hughes contract to build the
photo planes. Mr.. Hughes. however
is said to have told the Senators
that Elliott had nothing to do with
the letting of the original contract
Presidential Data Obtained.
Documents from the files of Presi-
dent Roosevelt bearing on the
Hughes-Kaiser deal have been OBJ
tained by the committee, but men,
bers refused to discuss their con-
tents.
The background on the deal in
volving the flying boat with the
320-foot Wing-span is that in the
summer of 1912, when German
submarines were sinking American
ships faster than they
could be replaced, Mr.. Kaiser
launched a campaign to build hun
dreds of cargo flying boats in ship
yards.
Mr.. Kaiser, who was breaking all
records for>merchant ship construc-
ton in his yards, sold virtually all
of official Washington on his idea
in a whirlwind campaign. At the
time he was interested in building
planes of the type of the Martin
Mars flying boat. Top Army and
Navy officials, however, were not
sold" ''' - ~
At one point, Donald M. Nelson,
then chairman of the War Produc-
ton Board, gave Mr.. Kaiser tenta-
tive commitment to construct 100
Mars. There was speculation at the
time that Mr.. Kaiser had consider
able White House backing for the
project.
Found Short on Plans.
Instead, Mr.. Nelson decided first
to send a committee of airplane
builders to the West Coast to look
over the Kaiser plans. Grover
Mr.. Nelson's adviser on
and one-time plane pro-
ducer, accompanied the plane build
ers on the trip. The committee in
cluded Glenn L. Martin, Donald
Douglas and John Northrop.
The committee reported back that
Mr.. Kaiser had little in the way of
plans to enter the aircraft busi-
ness and virtually no engineers. One
member said he had some pictures
and drawings" of planes.
Shortly afterward, Mr.. Kaiser lost
interest in the idea of building Mars
5ype boats and he approached Mr..
Hughes for assistance. Mr.. Hughes
designers had done preliminary
work on several types of giant air.
raft.
Mr.. Kaiser came back to Wash
ngton with a Hughes engineer and
together they clinched a deal. They
obtained grant of $18,000,00 from
he Defense Plant Corp. RFC sub
'idiary, to do the work. The agree
nent called for construction of three
lying boats. 1t provided that the
lrst be completed by the end of
l943 and the third by the middle
II 1914. Mr.. Kaiser told reporters
he boat was to be seven-engine
affair and produced a drawing to
prove 1t. Because of the aluminium
shortage the boats were to be built
If plywood.
Plans Changed to Six Engines.
Subsequently, the plans were ap-
oarently changed and a decision
made to build one 6-engine Job.
Early in 1943 WPB aircraft ex-
oerts strongly recommended that
he Kaiser-Hughes project be
1ropped. A year later Mr.. Nelson
announced that the Government
vas no longer interested in the prof.
sct for the war effort. About the
anne time, Mr.. Kaiser dropped out
If the deal. BY that time most of
he $18,000,000 had been spent.
Despite those events, the contract
vas not cancelled and Mr.. Hughes
the project alone. Some
members of the Senate committee
lave indicated that Jesse Jones.
hen chairman of the RFC, may be
;alled as witness to tell of any
,art he may have played in the
continuation of the project. Mr..
Jones is a personal friend of Mr..
hughes.
The big flying boat, which many
Lircraft experts believe eventually
viii fly, originally was designed to
AIRY cargo of IS tons. 1t was
pecif1cally designed to transport
he 65-ton tank, which the Army
lever did build.