CONGRESSIONAL RECORD -- SENATE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80M01009A000701110016-3
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 23, 2016
• Document Release Date: May 8, 2013
• Sequence Number: 16
• Publication Date: January 18, 1962
• Content Type: OPEN SOURCE

CONGRESSIONAL RECORD=SENATE.'; JAN 1 8 1962 ;
Declassified and Approved For Release 2013/05/08 :CIA-RDP80M01009A000701110016-3
n~a2r~ rte' _ _
Mr. Pl'CSidCllt, I oak unanimous con- Yct McCone, before he bwnmc Chairman I
"CnE CO I1rtvC LhC Cnt1rC COIUmn written. of the AEC 1n 1068, ntlmltted that hie per-'
by DeCa' PCal'SOn, and published by tha sonnlly owned ahlppfng Ilne, Joshun'HCndy,
Bell Syndicate on January 17, 1962,. hrtndlctl 'mtcrcoastnl nntl coastwise trans- i
'pi'loted at this polHt In the RECORD. Portntlon o[ chemlcnla. Vnnaporta products
for Unfon Cnrbldc. Dow Chcmlcnl, Stand-
Thm?e being no ob)ectfon, the column nrd ou of New Jercey, standard ou of
was OI'dCl'Cd t0 bC printed 1n the RECdan, Californlo, nntl Othcm"
n6 fn110R'S: "I hnvo aomo business rclntlonshlps with I
JOHN MCCONF. D10 NOT Solt Hts'S2'pCK WII P.N? Kni6er:' ha also tcstlactl, "inasmuch ne a ;
HE DF.CAME AEC CHafnMAN-HIa 61+t1'PINf. Jointly owned company, 26 Percent of which
LINES Dm Paonrnnl.T. Buatxess Wrtll AEC: fe owned by Hcndy nntl 60 pcrcont by Rnlacr
Coxrancrons-Toe. Law Doss Nor Pramrt Numinum, hos n long-rnngo contract to'j
ANr Cuolce ox Corvrucr or Ix'm, trsr Wanrport Knlser'e bouxlto."
(By Drew Pearson) "Would your firm continue to deN with ~
WAa111NCMN.-In June 1066, John A. ate-~~ thoso arms In the atomic oncrgy 9cld, such ne
`IInlon Cnrbldcy" naked Scnntor Catrvr ANnEn- ,
Conc. the now woultl-be Cnntrnl Intclllgonw, sox o[ New Mcx1w. '
Ch1eL wrote n letter to Sherman Atlnma, later' ??y~ I would oxpwt they would con-
kicked out of Government !or n conflict of In- linos;' replied Lhe future AEC CRnlrmnn, '
Leroat, to sec whether he. McCone, might hove. ??Unfon Cnrbldc fe o lugs euntomer o1
n conalct of Interest oa new ChNrmnn of^ Ficndy'e" Axosnsox rcminded h1m.
the Atomfa Energy Commfaslon. ^yea? theq ore:' McCAno agreed.
Ignoring the fast that Lhe Goltlflne charges
ngnfnst Atlnma hod not mode him the best ADAMa a1VL9 Hra Oe:
mnn to net ne ]udgc, McCone listed Lhe Dmh. however, he mefated that placing the stock ,
Construction Co.. Knlser Engineers, Dow of his ahlppfng wmpnnlee 1n Lrust with tho
Chcmlcnl, IInlon Cnrbltle na doing Inrge buel- Drink of Cnllfornln, In which ho, fe also n
~acae with the Atomlp Energy Commfaslon, atwkholdor, elenrcd him O[ any Conflict of 1
and elmultnnoouety doing business wlLh his' Internet. Th1i ~ICft hfm, howawr,? with the
own privately ownM shipping companies. groats which would accruo from tho con- !
Blgnlflcnntly, two of these companies,' trneta hie shipping companfea mado from !
KElaer nntl Utnh Constructfon, showed Lha. Union carbide, Kaiser, nntl the other Hans ;
pattern of bUSfnese links McCone hoe, kept, which and business with the AEC of which i
ho was Chrtlrmnn. In other words, wh11e i
. w1th h1a old nssoclntes and wor proatecrs. he was AEC Chairman, his ahlppfng tom- +
McCOnc woe Pros14ent nntl n prtrtncr with pm+lca would benefltfrom business with AEO 1
Henry Knlacr nntl nasodntce.ln running the contrnotora.
Cnllfornln 6hlpbuflding Co. .during Lhe wnr on tho bllsls of this, Shermnn Adnma, that
when Lhcy rollctl nn InvrstmenC Of 8100,000 grcot Judgo o[ canfllct of lntorost. OK'd tho I
into nn overall Proat of 644 mllltoa. nrrnngoment; nntl tho Senate, dlvertod by !.
Idler, when he was Under Secretory of the the 6hermnn Adnma-COldflnc hentlllnes, nlso?
Afr Force, aleCOno gave hfs old 'partner o. OK'd IL nntl confirmed McCone as AEC;
qufcklo Plying Doxcnr contract at three tfmce ? Cholrmm.'.
the wat'the Alr Force was paying Fntrchfld. However, now that McCone Is coming up.
Incldentnlly. Senate hearings conductM by for another, even more important, post, Lead'
the Irate BCnntor Styles Hritlges, Of New pf Centro) IntC111gCnCa, tho SCnnto might,
Hnmpshtrc, showed that Kaiser and hie sub- ~ mks limo to review tho record nntl atudy+
sldlnrliB got n total of 8210,011,010 In Gov- the law.
crnmenL~RPC loons; received 66.608 million Tho eonfllePof-1nLerest ]rtw gives no;
Sn Government wntrncta, nntl got npproxl- ehofco either Lo McCOno or to the Sennto.:
mntcly halt n blulon dollars In Qulckle tai ~~~~ ~~ ._ ... -
wrltcoas. ~ I McCono Bald ho had done "A great deal oT
am artc wNrnacrolls j sou]-scorching" nntl hod concludM ho wind
Kalscr hoe 'rtlso been ono of the biggest handle th0 AEC Chnlrmnnshlp without any,
wntfaetUra with the Atomic Energy Com- fnvorlttsm. ? HowerCr. the AEC law dose aoi'~
inlselon Including Lhc period when Knlacr's permit n mnn to scorch his soul nad mnko;+
old pnrttlcr. Joan McCone, was AEC Chnlr- tho dedslon. The Inw mnkos tho decision
man. for him. It given no Ntcmntlvca other thant
Tlio,-eompnny which operetea ~undcr the got out of any coMlet with prlvnto business ;
rtll-fnoluslvn name of IIrah Construction ? Interests. ..
Co: le oleo part-ownM by Ralaor nntl actually ; "NO member of tho wmmiseton;' It rends, i
1s o big seller of urnnlum to the AEC through "shrtll ongngo In any business, vwntton, or '
lta aubaltlinty. I:vekv Mc Drnnlbm Cnrn. emDlovmant other than fan[ ,.r e,...a.,,..,e .,
'U q+On l:armae le OtIC OI LLC biggest wn-
4act0[e Wlth tho ALOm1C Energy COmmla-
'ofon. It not only sells umnfum to the AEC,
but Oparotes AEC Plante rtt Oak Rldgo,
Tehri? and Pnducnh, Ky. Both DnlOn Cnr?
~b1tle nntl the 8nlscr Intereete beaefltod from
?tl+o A'EO's dcafefon not to buy urnnlum from
"underdavelopod ooUAVlee,", Thla obvlouNy
~ playip Into Lha Lands of eataDllshed Amen- , not do, and In m early column, one slgalfl- ~
can oompmlce euch ae Unfon Carbide sad ~ cant result Meeting McCOne's prlvnto ship-
iliols~,_ .- _ .. : ~ ping Ime wIB bo reported. ... ..
Trio Inw won passed not to bo rntfonNlsed '
attar soul-senmhing, but to mnko euro tbot
men 11Ke McCono did not serve on this pow-
crful wmmisefon with tho power Lo mako
trcmendoua profile for ccrtNn wmpnnlea, f
unless they govo uP their atwk In tho wm-'
pnafaa When beneatod. Thle MaOane did'
i Declassified and Approved For Release 2013/05/08 :CIA-RDP80M01009A000701110016-3