Evening star., 1953-01-24
The Political Mil
Wilson Issue. Will Help,
Not Hurt, Eisenhower
Premature Crepe Hangers
Overlook Some Vitol Angles
By Gould Lincoln

Overlook Some VitoI Angles
By Gould Lincoln
Nearly everything-and everybody
in Washington is measured in terms Of
politics. Already tongues are wagging
over the probable effect the Charles
E. Wilson-DefenSe Secretary contro-
versy will have on President Eisen-
hover, his administration and the Re-
publican Party. In some quarters it
is claimed that the incident is the
most helpful thing that's happened to
the Democrats since the big wind
drifted them out of Office last No
vember.
The crepe hangers are saying that
the incident has put the spotlight on
the big-buSineSS men to whom the
Eisenhower administration has turned
to handle the Defense Department
which is to spend around $50 billion
this year-and that the whole business
will not appeal to the little man and
little woman. They contend that the
Democrats will be able to ring the
changes on this subject time after time,
as the next congressional election ap-
proaches. The theory is that there
is something wrong, something inimical
to the interests of the people to have
big-business men handling Government
affairs.
Full of Holes.
From the purely political angle, this
seems not only premature but also full
of holes. Charles E. Wilson, president
OF General Motors, selected by Gen.
Eisenhower as the man to head up the
Defense Department, has shown in a
big way his patriotism, his willingness
to make personal sacrifices, in order to
serve the country. In the first instance,
he gave up 100000 salary-which
with bonuses had been raised to $780,
600 year. In the second, he offered
to sell his personal stock ownership in
General Motors more than $4,000
shares, valued at about $25 million.
With the stock selling at market value,
Mr.. Wilson'S financial loss will be the
capital gains tax levied on the appre-
citation in the value of the stock since
he first became its owner. This possible
tax has been estimated as high as and
higher than half a million dollars.
These are real sacrifices-and the crit
IL.
Mr.. Wilson, whose appointment to be
Secretary of Defense now seems certain
of confirmation by the Senate, was
selected by Gen. Eisenhower for the
cabinet post because of his ability and
knowledge of production on a huge
scale. Mr.. Wilson will be big cog in
the administrations machinery. If he
makes good-the reputation, not only
OF himself but also of the Eisenhower
administration. mounts-mounts politi-
cally. And If the Eisenhower admins
tration makes good in the coming year
and a half. with the aid of Mr.. Wilson
and the other men Of affairs the new
President is placing in high Office, it's
going to take more than the critics of
big business to turn the people against
the administration of Gen. Eisenhower.
Savings Seen.
Mr. Wilson has been put on the Job
by the President to assure big produc-
ton OF guns, planes. tanks and ships. He
has been put on the job to do the Job
as economically as possible. The
chances are he and his assistants will
be able to save the Government hun
dreds Of millions--even billions of
dollars. That means saving the Ameri-
can taxpayer. If he succeeds in these
objectives-it's not going to hurt the
Republican administration.
Mr.. Wilson's testimony behind closed
doors before the Senate Armed Serv-
ices Committee has now been made
public. 1t makes some Of the published
reports look silly, reports that Mr.. Will
son had been up-Stage and contemp-
tuous Of the Senators. for example. He
was quite frank in his declaration that
he could, even as Stockholder in Gen
eral Motors, be fair to the country and
to the company. The hearings revealed
that several of the Senators agreed
with him on this point. The rub came,
however over the statute, introduced
in the record by Senator Byrd, Demo-
crat, OF Virginia, who is friendly to the
Eisenhower administration. This reads:
Whoever, being an officer, agent or
member Of, or directly or indirectly in
terested in the pecuniary profits or
contracts Of any corporation, Joint
stock company, or association, or any
firm or partnership, or other business
entity, Is employed or acts as an officer
or agent Of the United States for the
transaction Of business with such busi-
ness entity, shall be fined not more
than $4,000 or imprisoned not more
than two years, or BOTH
Obviously under this statute, Wilson
could not serve as Secretary of Defense
which is doing a 5-billion-dollar
business with General Motors-and
continue to own $25 million worth of
stock in that corporation, bringing him
in annually large returns. 1t was a
mistake that the advisers of Gen. Ell
senhower and Mr.. Wilson did not call
this law to their attention-had they
done so, Mr.. Wilson could have settled
the whole question Of his availability
for Defense Secretary by announcing
as he has now done-he will sell his
stock.