Jim Hensley

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For the race car driver, see Jimmy Hensley.

James Willis "Jim" Hensley (born 1920,^[1] died June 21, 2000) was an American businessman in the liquor industry, who founded Hensley & Co., headquartered in Phoenix, Arizona and one of the largest Anheuser-Busch beer distributorships in the nation. One of Arizona's richest men, he was the father of Cindy Hensley McCain and the father-in-law of United States Senator and 2000 and 2008 presidential candidate John McCain.

Contents 1 Early life, military service and family 2 Early business career, legal issues 3 Hensley & Co. 4 References

[edit] Early life, military service and family

Hensley was born in San Antonio, Texas.^[1] He graduated from Phoenix Union High School in 1936.^[1]

Hensley and his older brother Eugene first began working in the liquor distribution business before World War II, being in the employ of Kemper Marley, Sr., an Arizona rancher who had become wealthy in the liquor distribution business in Phoenix and Tucson following the end of Prohibition.^[2] The brothers started the United Liquor Co. in Phoenix and the United Distribution Co. in Tucson.^[1]

Jim Hensley then served three years as an officer in the United States Army Air Forces during World War II.^[3][4] He was a bombardier on B-17 Flying Fortresses.^[5][6] On his thirteenth mission,^[3] his plane was shot down over the English Channel;^[5] in all his planes were shot down two or three times.^[1][6] He was awarded the Distinguished Flying Cross.^[1]

Jim Hensley married the former Marguerite "Smitty" Johnson (b. 1919, d. 2006)^[4][7] on March 29, 1945 in Memphis, Tennessee while he was on leave from the USAAF.^[4] They would have one child, Cindy Lou Hensley, born 1954.^[8]

[edit] Early business career, legal issues

Following his discharge in 1945, Hensley and his brother went back to work for Marley in his United Sales Company in Phoenix and United Distributors in Tucson.^[2][3] In 1948, both brothers were prosecuted by the federal government and convicted of falsifying liquor records to conceal illegal distribution of whiskey against post-war rationing regulations.^[9][5] Jim Hensley received a six-month suspended sentence while his brother received a year in federal prison.^[9] In 1953, Jim Hensley and Marley were charged by federal prosecutors with falsifying liquor records.^[9] Defended by future Supreme Court Justice William Rehnquist, they were acquitted.^[9][5]

In December 1952,^[3] the Hensley brothers bought into the Ruidoso Downs racetrack in New Mexico, with Eugene running it and Jim returning to Phoenix.^[2] In a May 1953 hearing before the New Mexico State Racing Commission, the Hensley brothers concealed the existence an equal partner, Clarence "Teak" Baldwin, who had been banned from any ownership role due to illegal bookmaking activities.^[10] A 1953 New Mexico State Police investigation found further that Kemper Marley was a financial backer for bookmakers and had connections with Baldwin and with the bookmaking operations of organized crime,^[10] a conclusion echoed decades later by the Arizona Project investigative reporting team.^[11] The Hensley brothers gained their Ruidoso Downs racetrack license in 1953, as no New Mexico law barred convicted felons from race track ownership,^[12] although in 1955 new Governor of New Mexico John F. Simms would say he was "appalled" by the previous administration's decision to do so.^[12] Previous Governor Edwin L. Mechem had defended the approval, saying that the Hensleys had been under constant surveillance and deserved continued attention, but that no action was taken against them because the investigation showed that as race tracks go, all laws apparently were being observed.^[13] Jim Hensley would sell his interest in Ruidoso Downs to his brother Eugene in 1955.

[edit] Hensley & Co.

In 1955, Hensley founded the beer distributorship to have his own name,^[14] borrowing $10,000 against everything he had to buy a small existing distributorship.^[15] He was given a state liquor license despite his normally disqualifying past felony conviction.^[3] At the start it had 15 workers, sold 73,000 cases of beer a year, and had a 6 percent market share.^[16] Hensley soon switched to exclusively distributing Anheuser-Busch beer.^[2] Under the names Hensley & Company Distributors and Hensley & Company Wholesale,^[3] the company saw decades of steady growth,^[3] benefiting from the population growth of Arizona;^[2] by 1980 the business had become quite successful and Jim Hensley was a multi-millionaire.^[17]

In 1981, Hensley hired his new son-in-law John McCain, recently married to his daughter Cindy, Vice President of Public Relations for Hensley & Co.^[18] McCain soon left to begin his Congressional career. Jim Hensley's past record with the law, as well as his connection to Marley (who was suspected by some in the 1976 car-bomb murder of Arizona Republic investigative reporter Don Bolles^[9]), became issues in McCain's 1986 campaign for the U.S. Senate.^[9]

Hensley died in Phoenix on June 21, 2000.^[14][19] By the time of his death, he was one of Arizona's richest men, although he never sought publicity.^[5][20] He held most of the controlling stock in Hensley & Co.,^[3] although he had withdrawn from daily opertional control.^[5] With 500 employees,^[14] annual revenues were about $220 million^[20] on 20 million cases of beer sold;^[3] Hensley & Co. was the second-largest Anheuser-Busch distributor in the nation,^[19] the fifth-largest beer distributorship overall in the nation^[3] and the 12th largest privately held company in Arizona.^[5] Cindy Hensley McCain became the controlling stockholder and chair of the board after his death.^[18]

Jim Hensley was a major contributor to charity in the Phoenix metropolitan area,^[21][20] starting the Hensley Family Foundation.^[14] He also supported groups such as NASCAR and Gilbert Rodeo Days.^[20]

[edit] References