Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-03-07
Kyes 10 Quit Post
AT Pentagon May i;
Stevens Will Stay
CONTINUED From First Page.)


he was discourteous in dealings
with top military brass. In re-
cent months, the associate said
he has bent over backward to
disprove SUCH accusations.
Severed GIN Connections.
Like Mr.. Wilson, Mr.. Kyes was
required to sever all connections
with GIN when he took Office.
These included more than $780,
900 worth of stock in the cor
poration. an $82.500 salary, a
bonus of $4,000 and the annu-
ity to which he would have been
entitled had he remained there.
His Government salary has been
$4,000.
At his home in Bloomfield
Hills, a suburb of Detroit, Mr..
Kyes emphasized last night that
his resignation "has absolutely
nothing to do" with the Stevens
Mccarthy row.
MY leaving the Defense De-
partment has been planned for
long time" he said. when
I went down to Washington to
be Deputy Secretary it was with
the understanding that I would
stay only one year. My time
would have been up February /.
But Mr.. Wilson asked me to stay
on another 80 days and I agreed
to do that"
Mr.. Kyes said he expects ITO
go back into industry some
place" on leaving the Pentagon.
He said he has refused to dis
cuSS job offers with Industrial
lists who have known he would
be available after that date.
1.-THE reason for this" he said,
sis that I am trying to follow
the spirit of the Senate Armed
Services Committee which re-
CURED me to sell all of my Cen
eral Motors stock before I could
become Deputy Secretary"
Mr.. KyeS said he wasn't even
sure he would return to the
auto industry.
I've also had experience in
electrical equipment, farm ma
chinery and aircraft industries"
he said.
Mr.. Wilson issued a statement
saying although I understand
and must accept the reasons why
he Mr. Kyes) feels he must
resign at this time, I wish he
were staying on indefinitely" !
He described the departure of
his deputy, with whom he had
been closely associated for years |
at GIN, as "a real loss"
While here he has made an
outstanding contribution in the
reorganization of the Defense
Department that will result in |
lasting good and has been of !
tremendous assistance in our
day-to-day problems" Mr.. Will
son said. His grasp of inter-
national affairs has been espe- |
cially helpful in our work with |
the State Department and the |
Congress"
Picked Other Businessmen.
Mr.. kyeS. Al, is a native of |
East Palestine. Ohio. A cum |
laude graduate of Harvard in
1928, he took special studies in
business administration and adj
ministrative engineering. He
first was with the Glenn L. Mar
tin Co. of Baltimore and then |
Black & Decker Manufacturing
Co.. TowSon, Md.
In 1882 he became vice presi-
dent of Empire Pillow Co., Cleve- |
land, Ohio. and then general
manager of FerguSon-Sherman
Manufacturing Co., Detroit, |
which makes tractors and other
agricultural equipment. He
joined GIN in 1913 and steadily
rose in that company to a vice
presidency. Mr.. Wilson was
president.
When the Wilson-Kyes team
was named by President Eisen-
hover they went about select
ing other big businessmen for
the key Pentagon posts.
Stock Holdings Problem.
There Immediately arose in
the Senate the problem of their
extensive stock holdings in firms
which do business with the mill
tary services. The Senators felt
the holdings would conflict with
the defense job and interpreted
the law to mean they had to
divest themselves of their stock. !
Mr.. Kyes was the first of the
top executives to take that &C
ton and the Senate Armed Serv- |
ices Committee Immediately
recommended his confirmation |
for the post. Mr.. Wilson was