General Dynamics World, Volume 15, Issue 6, June 1985 Page: 2 of 6
6 p. : ill.View a full description of this periodical.
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Newspaper Editorial Tribute Reviews Career of Chairman David S. Lewis
(Continued from Page 1)
namics, became chief of preliminary design in 1952, and
then was promoted to such positions as sales manager,
project manager, senior vice president of operations and
executive vice president before being named president and
chief operating officer in 1962, a position he continued to
hold in the new McDonnell Douglas Corp., which was
formed in 1967 by a merger with Douglas Aircraft Co.
Lewis was instrumental in securing a contract with the
Defense Department to build the F-4 Phantom II and
everyone knows what a success story the Phantom series
has been. McDonnell Douglas, like General Dynamics,
enjoyed tremendous growth under his guidance.
Now, in the final days of his brilliant and dedicated
career, charges have been made against General Dynamics
by a former employee, Takis Veliotis, who was indicted by
a federal grand jury for receiving kickbacks of $1.3 million
while he was general manager of the company's QuincyShipbuilding Division and for perjury while he was general
manager of the Electric Boat Division. Even though Veli-
otis is under indictment for perjury, some of the media
have taken his charges and treated them as gospel without
even giving Lewis and other officers of General Dynamics
the courtesy of denying them, which they have - vehe-
mently.
After much fanfare about alleged improprieties in con-
nection with giving Admiral Hyman Rickover gifts over
the years valued at a total of $67,628.33, the company has
been fined 10 times this amount by Navy Secretary John
Lehman. Lehman also said the Navy will cancel several
smaller contracts with General Dynamics until General
Dynamics meets certain conditions set by the Navy, and
put a freeze on new business with the company's Electric
Boat Division due to questionable billings submitted to
the Defense Department by company employees.
But Lehman rejected a recommendation by the Penta-
gon's inspector general to bar Lewis and two other topcompany executives from future defense business. So far
there has been no evidence made public that would war-
rant such severe action being taken.
Lewis himself admits that while company policies ap-
peared to be adequate to prevent such billing as occurred
- amounts which weren't paid, by the way - it was
found that these policies weren't being implemented effec-
tively. Extensive steps now have been taken by Lewis and
his team to see that similar inappropriate charges are not
submitted in the future.
In this era of let's-kick-defense industries, we should
guard against turning accusations into convictions and
smears into unimpeachable truth. We should weigh the
source and then place our own value on charges being
made. In the case of David Lewis, these charges against
General Dynamics should not be allowed to obscure his
great accomplishments, a record that few shall ever hope
to match in their brief span on earth.Excerpts Compiled on News Media Stories on Stanley Pace Appointment
(Continued from Page 1)
Richard Witkin in The New York Times:
The assessment of Stanley Carter Pace that comes from
his colleagues is that he is a model of integrity and an
excellent administrator. "He's especially orderly and thor-
ough, and he's able to keep a lot of balls in the air at the
same time," said Ruben F. Mettler, chairman of TRW.
For example, Mr. Pace is serving as chairman of the
National Association of Manufacturers, in addition to his
TRW duties.
"I don't know anyone who is more honest, ethical and
straightforward," said Mr. Webb, a former TRW vice
chairman.
But equally prominent in the comments is that, while
Mr. Pace is considered efficiency itself in conducting his
business, he has a notable empathy for people.
David E. Sanger in The New York Times:
In the long term, analysts expect that Mr. Pace, a World
War II fighter pilot who was imprisoned in Germany for
nine months, may take the company into more commercial
ventures - making it less dependent on Pentagon con-
tracts.
"They have realized for some time that they need a
better balance between the defense and commercial sides,"
said Donald T. Spindel, a vice president of research for
A.G. Edwards & Sons, a St. Louis brokerage house.
Jon Sawyer in the St. Louis Post-Dispatch:
Pace, 63, told reporters at a news conference here that
finding a permanent successor and studying product diver-
sification were among his top priorities.
Pace pledged that once he joined the company, "I can
make sure ... that we conduct business in all propriety."
Peter Hernon in the St. Louis Post-Dispatch:
Michael Johnson, a spokesman for TRW, said it was
common knowledge in the company that Pace, who is 63,
had planned to retire from TRW next year.
Describing Pace, Johnson said, "From the first day,
Stan was an extremely analytical person, who quicklysizes up a problem and cuts right through to the core in a
hurry."
* * *
Roger McGrath in the St. Louis Globe-Democrat:
"He's (Pace has) a lot of credibility," Paine Webber
analyst Eli Lustgarten said.
"The one thing he could represent is that TRW blew the
whistle on itself when it found an internal audit problem
on a government contract," Lustgarten said.
That incident occurred last year, when Pace was still
president of TRW. Upon discovering illegitimate overruns
on a contract to build jet engine parts, TRW quickly
refunded the money to the government.
* * *
Andrew Gallagher, United Press International:
Pace, 63, at a brief news conference, said he planned to
stay at General Dynamics long enough to make some
unspecified changes in the St. Louis firm and to find a
new chairman.
His contract is for five years, but the Cleveland business-
man said he expects to remain only four.
Pace defended Lewis as having done "an outstanding
job" and indicated Lewis might remain on the company's
Board of Directors.
* * *
Haya El Nasser in USA Today:
What better way to restore General Dynamics Corp.'s
tainted reputation than to bring in a red-white-and-blue-
blooded chief executive with squeaky-clean image.
Stanley C. Pace, 63, fits the bill. He will take on the
formidable task of making General Dynamics credible
again.
But Pace's challenge goes beyond playing image-maker.
General Dynamics "is operationally in excellent shape
for the next several years," says Wolfgang Demisch, a First
Boston Corp. analyst. But Pace will have to decide what
to do when existing contracts end. Analysts suspect he will
try to reduce General Dynamics' dependence on the Penta-
gon by seeking commercial contracts."I think he's going to maintain a fairly low profile the
first year. He's a pretty methodical guy who doesn't like to
go off halfcocked," Demisch says. "You might find him
quite surprisingly aggressive once he's got his ducks in a
row."
* * *
Mark Potts in The Washington Post:
Because of his age - 63 - Pace is not expected to have
a long reign as General Dynamics' chairman. But his
tenure could be critical to the future of the $7.8 billion
company, which, despite the current controversy, is con-
sidered by analysts to be in good shape financially.
"It frees the company up to look other places now, not
to be totally involved in this confrontation with the
Defense Department," said David J. Smith, an aerospace-
industry analyst at Sanford C. Bernstein & Co.
Pace's first task will be to restore General Dynamics'
tattered reputation, something analysts said he will accom-
plish in part just by walking through the door. "His hands
are clean, which is important," said Morton Langer, an
analyst at Bear, Stearns, who is familiar with both TRW
and General Dynamics. "He's a strong executive and well
respected by the industry and by the investment com-
munity."
Langer said he expected Pace, once he takes control of
General Dynamics, to "take a look and check their over-
head costs and billings to the U.S. government and make
sure that everything is in sync so the company can go back
to its business of manufacturing weapons systems."
* * *
The Sun, Westerly, R.I.:
"I've been offered now an opportunity to do something
specific," Pace said Wednesday night without getting
specific.
"At first, I was not at all sure I wanted to do that,
because I was not at all sure it was something where I
could make a real contribution."
He says he thought about it and talked about it, and "it
became clear to me that my background, my talents and
capabilities being what they are, would be effective for this
company at this time in its history."Stanley C. Pace Is Elected Vice Chairman;
Will Succeed Chairman Lewis by Year-End(Continued from Page 1)
Pace was elected a Vice President and appointed General
Manager of the Patco Group (now Aircraft Components
Group) in 1958. In August 1971, he was selected to head
TRW Automotive Worldwide, at that time the largest of
the company's four principal operating sectors. He was
named Assistant President in October of 1976.
Pace serves on the boards of directors of National City
Corporation and Consolidated Natural Gas Company,
and his diverse community activities include serving as
Chairman of the Cleveland Foundation Distribution
Committee.
He capped a long association with United Way Services
by chairing the 1984 Greater Cleveland campaign. He has
been a member of United Way's Board of Trustees since
1975 and a Vice President of the board since 1977. In 1974,
he was Chairman of the Loaned Executive program.
Among other assignments, he chaired the United Way
Accountability Task Force that set standards of account-
ability for member agencies.
From 1982-84, Pace served as Chairman of the Greater
Cleveland Roundtable, a group of community leaders com-mitted to creating jobs and improving housing, education
and race and management-labor relations.
He continues a long association with the Boy Scouts of
America and has served as President of the Greater Cleve-
land Council and Area 5, which embraces 13 councils in
northern Ohio, and as a member of the National Board.
His support of youth organizations also included a three-
year term with National Junior Achievement, which he
served as a member both of the board of directors and the
planning committee. His involvement with professional
organizations spans over 25 years. He holds memberships
in the Society of Automotive Engineers, the American
Institute of Aeronautics and Astronautics, the American
Institute of Management and the National Aeronautic
Association.
His educational involvement included a six-year term
on Denison University's Board of Trustees, where he held
several committee positions, including that of First Vice
Chairman for three years.
Pace and his wife Elaine have three grown sons, Stanley
Dan, Lawrence Timothy and Richard Yost.Tomahawk Flies First
Mission from Ship's
Vertical Launch System
A U.S. Navy/General Dynamics Tomahawk cruise mis-
sile has successfully carried out an antiship mission after
being launched from a vertical launch system installed on
a surface ship.
The test, conducted over the Pacific Missile Test Center's
Sea Test Range off the coast of Southern California, was
the first in which the Tomahawk demonstrated its vertical
launch capability from a surface ship. Previous firings of
the Convair-built Tomahawk from surface ships were
made from armored box launchers.
Seconds after being launched, the Tomahawk transi-
tioned from boost to cruise flight and then flew a fully
guided antiship mission to engage and overfly a target ship
hulk. The test was part of a development program for
deploying Tomahawks in a vertical launch system on some
DDG-963, CG-47 and DDG-51-class ships.
Convair is producing Tomahawk Sea Launched Cruise
Missiles for the U.S. Navy and Ground Launched Cruise
Missiles for the U.S. Air Force.June 1985 General Dynamics World
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General Dynamics Corporation. General Dynamics World, Volume 15, Issue 6, June 1985, periodical, June 1985; St. Louis, Missouri. (https://texashistory.unt.edu/ark:/67531/metapth1108855/m1/2/?q=bonnie+and+clyde: accessed June 18, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting Lockheed Martin Aeronautics Company, Fort Worth.