Evening star., 1947-07-30

the committee Admiral Leahy was
very much for the idea
A letter of intent promising a
contract for the three flying boats in
the original agreement was issued
about six days later, Mr.. Calhoun
testified. This later was changed
to authorize only one 200ton flying
boat.
At the conclusion of Mr.. Kaiser's
testimony, which occupied most of
the morning and afternoon sessions
yesterday, Mr.. Looming was recalled
to the stand to answer what he
described as very serious charges"
that he had participated in a
"douhle-cross.
Mr. Looming pointed QUE that affi-
davitS offered by Mr.. Kaiser as to
the conduct of the meeting were
prepared by Kaiser employees. He
said he was instructed by Mr.. Mel
son ito learn If Mr.. Kaiser really in
tended to build flying boats in his
Shipyards."
New Plant Proposed.
On the contrary, Mr.. Looming tes-
titled, he learned there was no in
tention of using the yards" In
stead, he said, he was shown "site
of empty land" on which the Kaiser
interests proposed to erect a S.
10000 or 100000 plant" of wood
construction.
This would have to be fitted with
machinery, jigs and fixtures, the
witness said.
Mr.. Looming said he was deeply
shocked" to learn the whole project
would have to start from scratch.
That's the reason I switched in
my report to Mr.. Nelson" he de-
clared, land I am very glad I did!"
The witness testified that at that
time quantity production plans al
ready we're well along in established
aircraft plants for turning out the
vast cargo fleets which flew the
Hump" and supplied the combat
forces in both theaters.
Kaiser Backs Hughes.
During some five hours of testi-
mony yesterday, Mr. Kaiser repeat
edly proclaimed his faith in Mr..
Hughes.
He offered to bet Chairman Fer
guson. Republican. of MICHIGAN.
100000 that Mr.. Hughes had put
81, ,000, 900 of his own money into the
flying boat project. The subcom-
mittee is investigating $40,000,000 of
aircraft contracts with the Kaiser
Hughes Corp. and the Hughes Tool
Co. on which no deliveries have been
made.
Mr.. Hughes was scheduled to take
the stand tomorrow to tell about
the eight-engined flying boat, which
still is to be test flown. and two ex-
perimental pho to-reconnaissance
planes yet to be delivered to the
Army.
Mr.. Hughes was critically injured
last summer when one of the latter
models crashed while he was test
flying it.
Responsibility of Hughes.
Mr.. Kaiser made it clear that the
Defense Plants Corp, in its contract
with the Kaiser Hughes firm m No
vember, 1912, specified that Mr..
Hughes was> to have complete re-
sponsibility for developing and con-
structing three flying boats.
In March, 1914, the contract was
Cancelled after some $13,000,000 in
Government funds had been ex-
pended.
Mr.. Kaiser then withdrew from
the project, he testified, at Mr..
Hughes request, and the Hughes
Tool Co. entered into another
agreement with Defense Plant Corp.
for completion of only one boat at
cost of $18,000,000.
Mai. Gen. Edward M. Powers of
the Air Staff Supply Maintenance
testified his Office had recommended
that the second contract be Cancelled
in April, 1945. He said it was re-
ported at that time that some $22,-
100000 had been spent on the flying