Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-05-18


later held up in the Senate be-
cause he owned SIS million
worth of General Motors stock,
He did not want to sell it all
in a lump because of heavy
taxes. But GIN is one of the big
gest suppliers of defense equip
ment. Some Senators pointed
to the conflict-of- interest Law
which forbids Government off,
Gals from holding interest in
firms that do business with the
Government.
It was during the Senate ar.
gument over Mr.. Wilson's con-
.firmation that he made the first
of many remarks that was re-
ceived with less than unanimous
appreciation. In fact, Washing
ton wags made the wisecrack
Charlie Wilson should keep a
civil foot in his mouth" In this
instance, Mr.. Wilson was in part
misquoted. Most people got his
remark as Whats good for
General Motors is good for the
country" What he actually said
was that he could not conceive
of any conflict of interest be
cause for years I have thought
that what was good for our coun-
try was good for General Motors
and vice versa"
Talbot Resignation
The conf1ict-of interest law
was to be a source of harassment
to the Eisenhower administra-
ton in the future, also. In the
summer of 1855 Secretary of the
Air Force Harold E. Talbot
resigned after a congressional
investigation of his outside bust
ness activities.
The Talbot case was one that
caused the President personal
dismay. He and Mr.. Talbot had
come to know each other well
ana had played bridge at the
White House two or three times.
When Mr.. Talbot came to
Washington he retained his part
nership in the New York engi-
neering firm of Paul B. Mulligan
& Co. Within a matter of months
he wrote letters on Air Force sta
tionery and made telephone calls
in the interest of getting bust
ness for the Mulligan firm. Some
of the companies he approached
had contracts with the Air Force.
Mr.. Talbot acknowledged that
he had tried to be helpful to the
Mulligan firm. During his first
two years in Office he received
$132,032 in profits from it. He
denied he had been guilty of any
improperly or wrongful use of
influence.
At the close of the congress
sional inquiry on July 81 the
President said he would review
the record and come to a deci-
sion. Il do not believe he said,
that any man can properly hold
public Office merely because he
is not guilty of any illegal act,
and, of course. in this case there
is no charge of any illegal act
But I believe the actions (of a
public servant) have to be i'm
peccable both from the stand
point of law (and) from the
standpoint of ethics
Three days later Mr.. Talbot
resigned, saving his actions had
been within the bounds OF
ethics" but that he did not wish
to embarraSs the President BY
staying on. Mr.. Eisenhower re-
piled that under the circum-
stances your decision was the
right one"
The United Press quoted Mr.
Talbot as saying he had rur
into "a pretty tough deal" but
anyway" he added, I'm going
back to business and make N.Y.
self little dough-"
A farewell ceremony = criti-
cized by some as being in bac
taste under the circumstances
was held at Boiling Field for Mr.
Talbot on August IL. Secretary
OF Defense Wilson pinned the
Medal of Freedom on his lapel
and 10 jet bombers from the
Strategic Air Command flew
overhead.
WenZell Double Role
Another conflict of interest
case concerned the double role
of Adolphe. H. Wenzell during
the preparation of the Dixon
Yates contract. Mr.. Wenzell was
simultaneously conSultant tC
the Bureau of Budget. partici-
pating in conferences which leo
UP to the contract, and vice
president of the First Boston
Corp. which became the finan-
cial agent for Dixon Yates.
Looming over this case was q
political controversy. The ques-
ton was whether the Tennessee
Valley Authority should expand
to fill the need for additional
power in the Memphis area. OF
whether new power should be
developed by the privately owned
Dixon Yates utility companies
Mr., Eisenhower said he
thought it was socialistic to
continue putting Federal money
paid by all the taxpayers into a
single region which could then
attract industry away from
other areas. An impression got
around that Mr.. Eisenhower
called the iva itself creeping
socialism" One of his advisers
Gabriel Hauge. suggested that
he avoid using that phrase be.
cause it had been the hall
mark Of the Old Guard Repub-
licans for years against Roose-
velt.' and the Eisenhower ad.
ministration should have it.
own idiom free of old connota-
tons. On the Hauge memo, Mr.
Eisenhower jotted Yes. d. E."
Mr.. Eisenhower already hac
made clear that he had no in
tention OF undermining IVA