Bad News for Kaiser

To most U.S. citizens Henry John Kaiser symbolizes American industry at its best. Even when there was bad news about Kaiser--like the failure of his $6,000,000 Permanente magnesium plant in California--nobody heard much about it. But last week came bad news that got around: at Kaiser's Portland (Ore.) Swan Island yard the newly delivered 16,500-ton tanker Schenectady suddenly broke in half with a thunderous snap, settled in the water with its two-inch steel plates split clean asunder, the midship sections sticking out of the water like crags.

Nobody knew what caused the break. The FBI, the Maritime Commission, the Bureau of Marine Inspection and Navigation and the American Bureau of Shipping started investigations simultaneously, refused to say a word.

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