MCCONE MADE BIG WW II PROFITS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP64B00346R000400030019-9
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 15, 2016
• Document Release Date: April 15, 2004
• Sequence Number: 19
• Publication Date: January 11, 1962
• Content Type: NSPR

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The Washingto>~'i erry=a-
'
McCone Made, Big WW II Profits.
By Drew Pearson (confirmation as chairman of close financial kinship be- tal, someone should come for-
tween McCone and Kaiser and ward, with a satisfactory ex-
the Atomic Energy Cammis- why it was possible for Kaiser planation."
With eight high officials sign on July 3, 1958, he let slip to barge in on McCone, have
fired from the Eisenhower Ad- one interesting fact which He went on to testify: "The
luncheon with him, and walk
building Corp.
Shi
i
if
p
av
orn
ministration for conflicts of I puts him in a position of hav- out with a multimillion dollarlCal
T- R 1Q41
interest, it would seem manda-
tory that both
take a very
close look at
before appoint
J
hn
o
`~
rearson
Cone picked
from Sen. Clinton Anderson
(D.- N. M.), he said:
"Yes, I have some business
relationships with Kaiser, inas-
much as a jointly owned com-
pany, 25 per cent of which is
owned by H e n d y (Joshua
Hendy Corp. of which McCone
owns all the stock) and 50 per
cent is owned by Kaiser
Aluminum, has a long-range
contract to transport Kaiser's
bauxite from Jamaica to Baton
Rouge."
Yet when McCone was be,
ing investigated by the late
Sen. Styles Bridges (R.-N, H.)
and the Senate Armed erv-
ices subcommittee regarding
his quickie C-119 contract to
Kaiser, he claimed: "I. have
had no business relationship
with Kaiser for years. . I
This third hearing prooea and the entire cash investment
the phenomenal war profits represented by 1000 shares of
rolled up by both McCone and capital stock at a par value of
Kaiser when they were ship $100 consisted of $50,000 in-
building partners during the vested by the Todd shipyards
war, and when they ,00 parlayed and "$50,000 invested by 10
an investment of $100100,000 into companies affiliated with Hen-
a profit of $44,423,000. ry J. Kaiser.
McCone was then president iOAbout a year later, on Feb.
of the California Shipbuilding 19, 1942, a meeting was called
Co., organized about one year for the purpose of declaring
before Pearl Harbor, when dividends out of the surplus.
Todd Shipbuilding put up The minutes of the meeting
$50,000, with another $50,000 said:
coming from the Betchel-Mc- "'After a full discussion upon
Cone-Parsons Company, Henry motion duly made . it was
Kaiser, and other companies motion resolved that a
associated with `Kaiser and dividend of $1000 per share
I Betchel-McCone in building be, and the same hereby is,
Boulder Dam. declared "' .1 1
to replace Allen Dulles as
head of the vitally important
Central Intelligence Agency,
has a record which is interest-
ing on three counts:
1. He has made more money
out of Uncle Sam on war con-
tracts than perhaps any other
man now working for the Gov-
ernment.
2. He has had a continuing
close financial connection with
the Henry J. Kaiser interests
to which, as Under Secretary
for Air, he gave a very inter-
esting quickie contract for
making Flying Boxcars (C-119)
in the record time of. 10 days,
at a price three times greater'
than that of Kaiser's competi-
tor, Fairchild.
3. He is shrewd and able,
which accounts not only for
Phenomenal War Profits
This combine made a kill-
ing. Uncle Sam needed ships,
was willing to pay any price
for them, and the Todd-MC-
Cone-Kaiser combine went to
town, though later Todd got
out and left the West Coast
field to Kaiser and McCone..
According to the sworn
statement of Ralph E. Casey
of the General Accounting Of-
fice before the House Mer-
chant Marine Committee in
19461
This, concluded. GAO execu-
tive Casey, was a profit of
$1,000,000 on the investment
of $100,000 within one year-all
at the expense of Uncle Sam's
shipbuilding business.
The profitable partnership
between Kaiser and McCone
continued until it rolled up a
war profit of $44,423,000 and,
according to McCone's own
testimony, the association is
continuing in the form of a
joint shipping line today. In
between McCone, as Under
have no benefit to gain from
the affairs of his companies.
The statement therefore that
I was a link in Henry Kaiser's
`chain of influence' should be
corrected."
Nonetheless, Senator Bridges
showed that McCone went to
amazing lengths to switch part
of a C-119 Flying Boxcar eon-
tract away from Fairchild in
Hagerstown, Md., to Kaiser at
Willow Run, Mich., at a cost
figure which turned out to be
Fairchild's !N/effiftst
third congressional hear-
ing, Sept. 25, 1946, shows the
his capacity for making money
but for his agility i keeping
high Government BPAQMW
under both Republicans and
Democrats.
TTrw-.,, ia, r".,no ..ama un for
Secretary of the Air Force,
helped swim one of the
to such astronomical heights
in proportion to invested capi-
D068Oo4t9ne contracts in
history to Henry Kaiser.
Copyright, 1962, Bell Syndicate, Iris.