The Kaiser Week

Building Henry J. Kaiser last week was in top form, busily making news from Manhattan to Venezuela.

Down with Hughes. First off, WPB bashed one of The Builder's pet projects, the supercolossal yoo-passenger plane that he has been building In collaboration with lean young Howard Robard Hughes, the multimillionaire oilman, moviemaker,* round-the-world flyer and plane designer.

In November 1943, WPB turned a critical eye on the $18,000,000 contract for three 200-ton planes, had a good mind to cancel it (TIME, Nov. 8). But WPBoss Don Nelson was dissuaded by Flyer Hughes's ice-cold confidence, his offer to post $500,000 in cash to guarantee that the first plane would fly this year. Nelson's act took courage - the entire U.S. aircraft industry was venomous about the venture, partly with an eye to the possibility that Kaiser would be all set at war's end with a huge passenger plane in production, while they were still producing the tiny fighters.

Since then WPB's aeronautical experts have turned in a new dubious report on the plane. Chief points: 1) the plane, al though far from completion, is already 10% over estimated weight; 2) the new Hughes-devised system of gluing the ply wood joints is unsatisfactory; 3) the first plane is already six months behind sched ule, will need at least another six months to finish it. Additional WPB argument: the Navy has ordered 20 more of the successful yo-ton Martin Mars, thus filling; the need for huge planes. Boss Nelson finally decided to cancel the Kaiser-Hughes contract.

Undaunted even now, Messrs. Kaiser & Hughes pushed on. Hughes will finish the job with private capital, if necessary.

Up with Brewster. The next Kaiser news was good. It came from Brewster Aeronautical Corp., once rightfully known as the worst-run plane plant in the U.S.

When Kaiser eased his 245 Ib. into the president's chair last October (TIME, Oct.

18), he got orders from the Navy: pro duce or get out. Last week he proudly pointed to Brewster's sparkling production record. In December and January, Brewster turned out more Corsair fighters than the revised schedules called for. Peak production is expected next month.

But Planebuilder Kaiser and the Navy are even more pleased with the job done in melting the lard off the Brewster payroll. In the last three months 7,000 workers have been dropped, one-third of the entire working force.

Kaiser Abroad. The third Kaiser news was grandiose. In Oakland, Calif., The Builder sat down with Commander Antonio Picardi, Venezuela's Director of the Ministry of War and Navy, and two other top officials from oil-rich, industrially poor Venezuela. They wanted U.S. capital and U.S. ingenuity to develop their country. Could Mr. Kaiser supply it? In short order The Builder promptly sketched a vast plan to supply both. His plan: A four-company group to pool engineering talent, equipment and cash', similar to the famed Six Companies which built Boulder Dam. As a starter, the group will bid on construction of a sewage disposal plant and waterworks for a Venezuelan city (carefully unnamed lest rival bidders upset the Kaiser applecart). If successful, Kaiser intends to work out plans to build cement and steel plants for Venezuela. With gospel fervor he even talked optimistically of selling ships to Venezuela, thus helping to create a postwar market for the Kaiser shipyards. To speed the projects, Kaiser engineers will go to Venezuela two weeks hence. All this hustle delighted Director Picardi. Said he: "It's one of the biggest things that ever happened to Venezuela." Said H.J.: "He's absolutely right." Trouble for Kaiser? But the fourth item of news jolted Kaiser & son. The Seattle Post-Intelligencer carried a scary story that the Kaiser-built troop transport Christopher Greenup had cracked open while moored to an Alaskan dock. The ship had been about to sail, loaded with troops. No lives were lost. The Senate's Truman Committee was reported ready to investigate, along with its present cautious investigation of Liberty ships.

Kaiser Clubs. This spate of Kaiser news caused many a businessman to wonder if the bright Kaiser legend, spotted but not yet tarnished, might not be put to work politically. In Chicago, three politico-businessmen ^hought it could. They organized the Henry J. Kaiser for President Clubs, began to beat a small drum for Kaiser as the Republican nominee. But Republican-registered Kaiser promptly disowned Kaiser Clubs, saying: "I have no connection with them. I don't even know this bird who started the stuff. ... I have no political affiliation."

*Last week Howard Hughes joined up with Preston Sturges to form a new movie company.

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