Evening star., 1947-11-11
Hughes Denies
Any Profit on
War Contracts
Testifies His Firms
Earnings Came From
Other Enterprises
By Robert K. Woish


Howard Hughes, millionaire
aircraft industrialist and movie
producer, declared at Senate
War Investigating Subcommit-
tee hearings toda ythat he did
not make one cent of profit out
of war contracts" despite evi-
dence presented last week that
his net profits amounted to $15,-
526, 900 between 1912 and 1946.
Senator Williams, Republican Of
Delaware, q subcommittee member
who produced data several days ago
indicating that the aircraft division
of the Hughes Tool Co. alone made
between $4,000, 900 and $4,000, 900 in
profits during those years, entered
into a heated argument with the
plane manufacturer.
II am not going to retreat from
my statement that your companies
make profits during the war years"
Senator Williams told him. The
statement climaxed the morning
session which was marked by as
sertions by Mr.. Hughes that Sub
committee Chairman Ferguson was
trying to trip me up on testimony
he gave yesterday.
Ground Covered Again.
That line of questioning went over
much of the ground covered by Mr..
Hughes in asserting that Maj Gen.
Bennett E. Meyers. retired Air Force
deputy chief Of procurement, asked
him for a $200, 600 loan in 1914 while
an Air Force contract for q photo
reconnaissance plane was being ne
gotiated with the Hughes company.
Gen. Meyers, Mr.. Hughes asserted
today, hoped to make a $1,000, 600
personal profit by using the loan to
buy $1O,000,000 in Liberty bonds on
margin.
Gen. Meyers was furious when I
refused to make that loan" Mr..
Hughes told the subcommittee in
vestigating his $40, 100000 war plane
contracts. HE said he needed the
loan because he could make 81 ,00O,-
600 profit on the bond deal, and that
it, was a golden opportunity to get
security for life"
Mr.. Hughes also denied positive
ly" that he ever offered Gen. Meyers
100000 to try to remove a New
York City ban against showing OF
the Hughes motion picture, The
Outlaw"
Talked With O'Dwyer.
But the lanky millionaire Aim
producer and aircraft designer testi-
fled that Gen. Meyers told me he
had talked with Mayor ODwyer"
of New York City about allowing
the Hughes picture to be exhibited.
It was banned in New York on the
grounds 1t was too sexy.
did you offer Meyers any sum
of money to, do this job?" Senator
Ferguson asked
Mr.. Hughes hesitated. Finally,
he said he wanted to make it very
clear" that he had not employed
Gen. Meyers. that he had not asked
him to do anything except remove
the finger that I believe he had
put on it,"
MI Hughes voluntarily brought
up the question about Hughes COM
pany profits on war contracts. He,
called attention to what he said was
an erroneous and unfair impression
which the public might have re-
ceived from testimony last week.
That testimony, as brought out by
Senator Williams at the time, indi-
Gated that the Hughes companies
had net profits of $15.526, 600 after
taxes, between 1912 and 1896 1t also
indicated that the Hughes organi-
zation owed the Government $5,919,-
92l as tax deficiency" on taxes it
did not pay on undistrubuted profits
retained during those years.
Says Public Was Misled.
"If 1 made that profit Mr..
Hughes declared today, sit was made
from the sale of oil we'll machinery
and beer by my companies in Texas.
But the public got the impression
that made SIS ,O0O, 900 profits on the
$40, ,00O, 900 in war contracts under
investigation at these hearings"
Mr.. Hughes charged that the COM
mittee had Intentionally or other
wise led the public to wrong i'm
preston about his organization in
come and tax affairs.
II got this information on the tax
and profits testimony from the news
papers and the committee has the
original responsibility because the
press draws its information from
what is divulged or not divulged by
this committee" he asserted.
Personally, I'm more interested
in what goes to the public than in
Sec HUGHES. Page A-4.)