With But One Def eat, in Automobile
(Jallori aolat A flff lurnlnf
ill Bini. thiDi lhn any altw
kulUrr aurmi Wurld War II,
M'nry 1. Kalr( Iurnr4 ta atart--lm
Inauttry ant, wllb lh
ffatlna ( automobllM, ail kullt
up ana at ht mail lurmtlul
Inauitrlil tmplrri In Amtrlra.
Nrrt'i tha tlory arhln4 ant af
aur mt (akulam tnlnrtrln
Sat Maaaiarlal arianlMlloni).
By LE1F EKICKSON
OAKLAND, Calif. (P)- Borne
wasn't built Jn a day, but that
may have bun because Henry J.
Kaiser wasn't running the job.
The boil of one A America'!
peat Industrial empires admits
as much. In a demonstration of
the supreme faith he has in him
self and in his managerial and
engineering organization Kaiser
once confided, to an anxious aide,
fretting that his chief's promises
exceeded possibility, that he
might have managed to build the
Iternal City quicker.
He might have, at that. Like
fv"V - '
JEL
Henry J. Kaiser
Babe Ruth and his legendary
World, Series swat Into the stands,
where he had brashly pointed
with his bat, Kaiaer has homered
In both war and peacetime Indus
tries. ; .
Oae ExcepUoa '
There was one exception au
tomobiles. Kaiser took a mighty
swing, but couldn't break into
the same league with General
Motors, Ford and Chrysler.
During World War. II he built
mort ships 1,490 of them than
anybody. When the Korean War
started and the Air Force began
building up a fleet of jet planes,
Kaiser's new Chalmette, La., alu
minum plant produced the des
perately needed metal in 10
months, two .months earlier than
promised. In another 20 months
the plan's production capacity
was doubled and today it is the
nation's largest aluminium re
duction plant, operating its own
generators producing 473,000 ki
lowatts of electric power from
natural gas.
Moreover, Kaiser Aluminum Is
slated soon to atart building a
new and bigger reduction plant
t Ravenswood, W. Vs., which
la expected to raise Kaiser's over
all aluminum metal capacity to
654,000 tons annually.
In 1146, at 64, Kaiser began
Building up a diverse domain not
only in aluminum, but in steel,
eement and 'gypsum, all basic in
20th century economy. As of mid
lfiSiJCaiserenterprise assets are
measured at" "more than a billion
dollars and annual sales volume
at 043 million.
.In motors Kaiser has pulled
out of the brutal passenger car
ales battle. He bought out Willys
in Toledo and now concentrates
on commercial vehicles and the
laftaft Baa a I wjiai1s4 mnA
aj-v-a pii ea-vt pii'Va nvi iu wiuc
fymbol of American engineering
effectiveness.
PaMIe Aeeeptaaee
"We learned that in the auto
industry, more than any other,
you've got to have public accept
ance," Kaiser says. "And that
you can't make or buy in a
hurry."
Production of Kaiser, jeeps,
trucks and cars in Argentina,
originally scheduled to itart this
year, has been stalled. The deal
tinder which Industrias , Kaiser
Argentina was established last
January has not been honored
by the new Aramburu regime
and Argentine assets of the com
pany have been frozen.
This is part of a campaign by
the new government to recover
what hat been called gains "ill
gotten" under the ousted Peron
regime. To unfreeze their assets.
affected rnmninia mutt Drove
that profits since 1043 were hon
estly obtained. Otherwise, the
wealth is to go into a govern
ment fund for the development
of housing and oil Industries.
Kaiser, apparently hale and
healthy at 73, entered a Honolulu
hospital this week for a checkup.
Edgar ; Kaiser said that while
- there was nothing dangerous about
his father'i condition, he had suf
fered intermittent oain since a fall
in a bathtub in December. V
Even before the accident, the
elder Kaiser had made clear he
knows better than anyone that he
can't go on forever. But he has
thoroughly trained and tested a
leadership team in Edgar Kaiser,
his chief deputy, and Eugene E.
Trefethen,- the executive vice pres
ident of all Kaiser companies.
They are equipped in experience
- and spirit to keep the empire
; growing whenever Henry J. steps
out.
Latest Eathaalasm'
Kaiaer now spends weeks at i
time in Honolulu, personally
whlnnin alonf hia latest enthus
iasm Waikiki's biggest noiei ae
velopment He plans an eventual
group of three 900 room Deacn
hotels.'. . '.."'.' '
"I don't hive much time left,"
Kaiser aayi. "I want to get on
with this."
Wherever tha boss may be, the
Kaiser management organization
machines out decisions and poli
cies at the empire's general head
quarters on Oakland! Broadway.
Tha manaBmnt team headed
by ion Edgar, Trefethen and en
gineer - Ceorge Havas probably
is the prize of all Henry J.
Kaiser's creations.
In the planning stage Is anew
CHQ a Kaiser Center overlook
ing Lake Merritt, a water park
near Oakland's business heart.
The site in bought for a building
with 300,000 square feet of Kaiser
Enterprise office space, plus a
lush shopping area.
Aluminum ExpanaUa
Meanwhile, Kaiser's manage
ment organization is engineering
Iti way ahead with over 111 mil
lion dollar! in aluminum expan
sion, a new 12 million dollar
cement plant In Southern. Cali
fornia, and better than 6 million
dollars In new gypsum factories
at Pittsburg, Calif.
And Kaiser. Steel, which has
concentrated on acquiring raw
materials properties in Iron ore,
coal and limestone, bai a 110
million dollar production in
crease' program ready for the
financing go ahead.
The managing team carries out
what the boss believes.
"We live in the industrial revo
lution of the last half of the 20th
Century," Kaiser says. "It trans
cends anything we've known be
fore.''1 '
"This age of atomic energy,
aviation, electronics, new metal
lurgy, chemistry and new tech
nology, has jet propelled us into
a chain reaction of progress."
Critics of Kaiser have claimed
he and his empire were made by
government money., But he in-,
lists he used 'the money to pro
duce what the nation needed. He
asserts, too, that he aaved the
government far more than he
borrowed by production cast cuts.
Of an overall 227V4 million
dollars In federal money that
Kaiser borrowed, all la reoaid
except! a balance of less than 13
million owed by Kaiaer Motora.
By 1930 the 132 million in RFC
money borrowed for waf projects
and steel had been repaid, plus
28 million in interest, 23 years
ahead of the last loan deadline.
Private Maaey
Kaiaer financing has shifted
entirely to private money now.
George ' Woods, board chairman
of First Boston Corp., has guided
Kaiser in raising 600 million in
private investment money since
1946, He is called the empire's
minister of finance.
The main problem," Woods
says of his financing perform
ances for the Kaiser enterprises,
"was to get these boys accepted
in eastern banking and industrial
circles." It's a problem long
settled.
Since Woods cured Kaiser
ateel'i wartime financing hang
over, by raising 123 million dol
lars In first mortgage bonds,
stock unita and bank credit, its
growth, has been rapid. Kaiser
steel bought and modernized coal
mines at Sunny side, Utah, in
1930 and last July bought 500,-
000 acres of coal lands near Ra
ton, N. M. The company has a
coking coal reserve for a long
future, is,
Perhaps Kaiaer engineers,
headed by Hungarian-born Hav
as, is the special apparatus which,
with the dream , generator in
Kaiser's cranium, made possible
tne twin growth of all the empire
provinces. ,
Through the engineers Kaiser
maintains a big stake in construc
tion.- Kaiser Mglneers are iron-
soring head of an American con
tracting group building '36 mil
lion dollars worth of dams and
tunnels in Australia, for exam
ple. The jobs are part of that
country's billion dollar Snowy
Mountains hydroelectric and ir
rigation program.
Meat Unique '
Most unique of all, Henry J.
Kaiser's many sides is his big and
controversial venture into hospi
tali and group medical practice.
Forty-three Kaiser hospitals and
medical centers, with doctor
partnership groups., now serve
300,000 subscribers to his prepay
ment pian lor hospital and-doctor
care, .
"My -mother died in my arms
when I was 16. for lack of med
ical care," Kaiser says, explain
ing his earnest fostering of the
health plan system.
"My father went blind, and
that could have been prevented.
I made up my mind that if I ever
had the . opportunity. I would
work for more medical ear for
more people at lower cost." -The
first Kaiser hospital start'
e In the desert to serve his
workers on the Colorado aque-
auct. Tne worker kicked In
nickel . a day from wages for
medical care. -
Now the basic fees for the non
profit Kaiser Foundation Health
Plan are $4 90 a month for an
individual and up to $12 for
familv group.
Critics call it socialized medi
cine. Doctors protest that it of.
fers no free choice of a physic
ian. ,
Dr.- Sidney J. Garfield, who
started 1he "first desert hospital
and now Is the clan's medical di
rector, aayi, "We don't have to
think of the patient's pocket
book. No oner becomes a second
class or charity patient. Everv-
one gets the treatment he need
from a staff skilled and quali
fied in all fields."
Pay Tbrlr Way
Thelvaiser hospitals pay their
way. Banka finance new ones. No
gilt or fund drives are needed.
The corporate organization of
the Kaiser empire is tcpped by
the Henry J. Kaiier Co. It holds
Investment control in the produc
ing companies and ahapes man
agement and financial policy for
all.
This corporate setup would be
revised under a plan, recently dis
closed by tha elder Kaiser, which
la to be submitted to stockholders
early this year.
Under the reorganization plan,
the Henry J. Kaiser Co. would,
through an exchange of stock, be
come a wholly owned subsidiary
of Kaiser Motors.
Kaiser Motors would then be re
named the Kaiser Industries Corp.
The various subsidiaries of the
vast Industrial empire would con
tinue to operate within (he con
solidated system.
A vice president and general
manager is operating head of
each producing company and Is
delegated a full degree of re
sponsibility. These chiefs are
Donald A- Rhoadrs of aluminum,
Jack L. Ashby of steel, Wallace
A. Marshal! of cement, Claude
E. Harper of gypsum, and Steve
A. Gerard of motors.
4 Home base, for all but Gerard
la the Oakland CHQ. When they
are In town they meet daily at
lunch in the executives' dining
room with Edgar, Trefethen and
Henry J.
Lading Ahead
Looking ahead into the. next 10
years for Kaiser Enterprises,
Trefethen says, "We will have a
much broader base to build from
than we did getting where we
are.
"We will have more credit,
more management, more oppor
tunity for new developments.
Men with ideas will come to us."
Now 43, Trefethen started as'
Kaiser's executive assistant toon
11. S. Uracil
To Maintain
Grant's Tomb
NKW YOItK - The federal
government has been asked to
take over maintenance of Grant's
tomb, a sightseers' landmark
ilnce m.
The Grant Monument Asn,a
nonprofit organization, owns title
to the monument on Riverside
Drive. However, maintenance
funds have been provided by New
York City.
.The association aaid Wednesday
it wai appealing for federal funds
because of "constant worry" en
tailed In receiving sufficient mon
ey to maintain the monument.
The 'organization noted, how
ever, that the city "has been very
decent about our requests."
after coming out of Harvard's
School of Buiinesi Administra
tion. "We have proved we are sound
people," he said. "There's no
more fighting for the chance to
prove it
"I can tell you, there's been a
lot of sweat" f
(Jodfrcy Show
ill. mis Audience
NKW YOItK - An innova
tion went into elfeet VtfdneMl.iy
muht on Arthur Godfrey's Me
vlMon show the program was put
on without a studio audience.
A spokesman for Godfrey said
"we jui.t tried something new,"
adding that the experiment would
be continued "for a couple of
weeks."
No reason was given for the no
audience Idea, although some ob
server! In TV circles speculated It
was part of an effort to enhance
the quality of the show. .
Statesman, S.
:, Ore, rri..J...:,. 13, IV.'. i (V r. I
5
1 - J
New Y
radioadv
ik fily Is ri vd hy 12 nul
.10 aiiliiir. 40 bus lines 'lines
y i.
r1
a-
Suit Says Actress
Churned Up Yard
SANTA MONICA. Calif, in A
neighbor couple seeks 11.500 dam
ages from Wanda Hendrix. claim
ing the actress ruined their yard
while attempting to make turn
In a station wagon. '
The suit, filed Wednesday In
municipal court on behalf of Mr.
and Mrs. Donald E. Dufford. stat
ed the incident occurred Dec. 1.
The actress is the wife of socialite
James Stack. I
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