Jim Hensley
Encyclopedia
James Willis "Jim" Hensley (April 12, 1920 – June 21, 2000) was an American
businessman in the beer
industry.
Hensley was born in Texas
and moved to Arizona
during his youth. He was a bombardier
on B-17 Flying Fortresses during World War II
and was awarded the Distinguished Flying Cross
. After the war he was convicted of illegal distribution of liquor and was also involved in a racetrack operation that was investigated by authorities.
He founded Hensley & Co.
in 1955. Headquartered in Phoenix
, it grew to be one of the largest Anheuser-Busch
beer distributor
ships in the nation. One of Arizona's richest men at the time of his death, Hensley was the father of Cindy Hensley McCain
and the father-in-law of United States Senator and 2000 and 2008 presidential candidate John McCain
.
to Jessie and James L. Hensley. The family was poor and the father an alcoholic. They lived in the South until moving to Arizona; Hensley graduated from Phoenix Union High School
in 1936. He married Mary Jeanne Parks, his high school sweetheart, around 1937, and worked as a paper salesman.
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 that business in Phoenix and Tucson following the end of Prohibition
. The brothers started the United Liquor Co. in Phoenix and the United Distribution Co. in Tucson.
Jim Hensley then served three years as an officer in the United States Army Air Forces
during World War II. He was a bombardier
on B-17 Flying Fortresses. On his thirteenth mission, his plane was shot down over the English Channel
; around the same time, his wife gave birth to their daughter, Kathleen Anne Hensley, in February 1943. In all, his planes were shot down two or three times. He was awarded the Distinguished Flying Cross
.
Hensley was injured during his service, and sent to a West Virginia
medical facility to recover. There he met Marguerite "Smitty" Johnson (born Cairo, Illinois
, January 16, 1919, died Scottsdale, Arizona
, October 11, 2006, daughter of Swedish American
parents), who had one daughter, Dixie, from a previous relationship. Hensley divorced his wife, and shortly thereafter married Marguerite on March 29, 1945 in Memphis, Tennessee
while on leave from the USAAF. They would have one child together, Cindy Lou Hensley
, born 1954. Hensley's first daughter grew up with her mother, but he maintained occasional contact with her.
, they were acquitted.
In December 1952, the Hensley brothers bought into the Ruidoso Downs racetrack in New Mexico
, with Eugene running it and Jim returning to Phoenix. 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. 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
, a conclusion echoed decades later by the Arizona Project investigative reporting team. The Hensley brothers gained their Ruidoso Downs racetrack license in 1953, as no New Mexico law barred convicted felons from race track ownership, 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. 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. Jim Hensley would sell his interest in Ruidoso Downs to his brother Eugene in 1955 (who would in turn sell it to a Marley-connected company in 1969).
beer. Under the early names Hensley & Company Distributors and Hensley & Company Wholesale, the company saw decades of steady growth. It was aided by the Phoenix area becoming one of the fastest-growing regions of the country while the company maintained its position as Anheuser-Busch's only distributor there. Jim Hensley's tireless sales efforts and the generous wages and benefits he gave employees were also key success factors. By 1980 the business had become quite successful and Jim Hensley was a multi-millionaire. Hensley had also distanced himself from Marley, and had helped set up a local hospital; nevertheless, he was never fully accepted by the Phoenix establishment.
In 1981, Hensley hired his new son-in-law John McCain
, recently married to his daughter Cindy, as Vice President of Public Relations for Hensley & Co. McCain soon left to begin his Congressional career with a victory in the 1982 election for U.S. House of Representatives. Jim Hensley's past record with the law, as well as his past connection to Marley (who was suspected by the police in the 1976 car-bomb murder of Arizona Republic investigative reporter Don Bolles
), were raised by McCain's opponent in the 1986 general election campaign for the U.S. Senate. McCain won that election handily.
As his business continued to grow, Hensley became one of Arizona's richest men, although he never sought publicity. He held most of the controlling stock in Hensley & Co., although by 2000 his health was poor and he had withdrawn from daily operational control. With 500 employees, annual revenues at the time were about $220 million on 20 million cases of beer sold; Hensley & Co. was the second-largest Anheuser-Busch distributor in the nation, the fifth-largest beer distributorship overall in the nation and the 12th largest privately held company in Arizona. Jim Hensley was a major contributor to charity in the Phoenix metropolitan area
as well, starting the Hensley Family Foundation. He also supported groups such as NASCAR
and Gilbert Rodeo Days.
Hensley died in Phoenix on June 21, 2000. His frequently-amended will
left his entire estate to Cindy Hensley McCain, who became the controlling stockholder and chair of the board after his death. His first daughter Kathleen, her husband and children had received substantial ongoing gifts, credit cards, and college tuition payments in the decade before his death, but were left only one modest lump sum from his estate.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
businessman in the beer
Beer
Beer is the world's most widely consumed andprobably oldest alcoholic beverage; it is the third most popular drink overall, after water and tea. It is produced by the brewing and fermentation of sugars, mainly derived from malted cereal grains, most commonly malted barley and malted wheat...
industry.
Hensley was born in Texas
Texas
Texas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in...
and moved to Arizona
Arizona
Arizona ; is a state located in the southwestern region of the United States. It is also part of the western United States and the mountain west. The capital and largest city is Phoenix...
during his youth. He was a bombardier
Bombardier (air force)
A bombardier , in the United States Army Air Forces and United States Air Force, or a bomb aimer, in the Royal Air Force and other Commonwealth air forces, was the crewman of a bomber responsible for assisting the navigator in guiding the plane to a bombing target and releasing the aircraft's bomb...
on B-17 Flying Fortresses during World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
and was awarded the Distinguished Flying Cross
Distinguished Flying Cross (United States)
The Distinguished Flying Cross is a medal awarded to any officer or enlisted member of the United States armed forces who distinguishes himself or herself in support of operations by "heroism or extraordinary achievement while participating in an aerial flight, subsequent to November 11, 1918." The...
. After the war he was convicted of illegal distribution of liquor and was also involved in a racetrack operation that was investigated by authorities.
He founded Hensley & Co.
Hensley & Co.
Hensley & Co., also known as Hensley Beverage Company, is an Anheuser-Busch beer wholesaler and distributor headquartered in the West Phoenix area of Phoenix, Arizona. It markets to the Phoenix, Tempe, and Prescott Valley areas. It is the third-largest Anheuser-Busch distributor in the United...
in 1955. Headquartered in Phoenix
Phoenix, Arizona
Phoenix is the capital, and largest city, of the U.S. state of Arizona, as well as the sixth most populated city in the United States. Phoenix is home to 1,445,632 people according to the official 2010 U.S. Census Bureau data...
, it grew to be one of the largest Anheuser-Busch
Anheuser-Busch
Anheuser-Busch Companies, Inc. , is an American brewing company. The company operates 12 breweries in the United States and 18 in other countries. It was, until December 2009, also one of America's largest theme park operators; operating ten theme parks across the United States through the...
beer distributor
Distribution (business)
Product distribution is one of the four elements of the marketing mix. An organization or set of organizations involved in the process of making a product or service available for use or consumption by a consumer or business user.The other three parts of the marketing mix are product, pricing,...
ships in the nation. One of Arizona's richest men at the time of his death, Hensley was the father of Cindy Hensley McCain
Cindy Hensley McCain
Cindy Lou Hensley McCain is an American businesswoman, and philanthropist, and the wife of United States Senator and 2000 and 2008 presidential candidate John McCain of Arizona....
and the father-in-law of United States Senator and 2000 and 2008 presidential candidate John McCain
John McCain
John Sidney McCain III is the senior United States Senator from Arizona. He was the Republican nominee for president in the 2008 United States election....
.
Early life, military service and family
Hensley was born in San Antonio, TexasSan Antonio, Texas
San Antonio is the seventh-largest city in the United States of America and the second-largest city within the state of Texas, with a population of 1.33 million. Located in the American Southwest and the south–central part of Texas, the city serves as the seat of Bexar County. In 2011,...
to Jessie and James L. Hensley. The family was poor and the father an alcoholic. They lived in the South until moving to Arizona; Hensley graduated from Phoenix Union High School
Phoenix Union High School
Phoenix Union High School was the main high school for Phoenix, Arizona, at 7th Street and Van Buren Avenue. It closed in 1982 amidst declining enrollment, along with East High School and West High School. It is the namesake of the still-extant Phoenix Union High School District.The mascot was the...
in 1936. He married Mary Jeanne Parks, his high school sweetheart, around 1937, and worked as a paper salesman.
Hensley and his older brother, Eugene, first began working in the liquor distribution business before World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
, being in the employ of Kemper Marley, Sr., an Arizona rancher who had become wealthy in that business in Phoenix and Tucson following the end of Prohibition
Prohibition in the United States
Prohibition in the United States was a national ban on the sale, manufacture, and transportation of alcohol, in place from 1920 to 1933. The ban was mandated by the Eighteenth Amendment to the Constitution, and the Volstead Act set down the rules for enforcing the ban, as well as defining which...
. The brothers started the United Liquor Co. in Phoenix and the United Distribution Co. in Tucson.
Jim Hensley then served three years as an officer in the United States Army Air Forces
United States Army Air Forces
The United States Army Air Forces was the military aviation arm of the United States of America during and immediately after World War II, and the direct predecessor of the United States Air Force....
during World War II. He was a bombardier
Bombardier (air force)
A bombardier , in the United States Army Air Forces and United States Air Force, or a bomb aimer, in the Royal Air Force and other Commonwealth air forces, was the crewman of a bomber responsible for assisting the navigator in guiding the plane to a bombing target and releasing the aircraft's bomb...
on B-17 Flying Fortresses. On his thirteenth mission, his plane was shot down over the English Channel
English Channel
The English Channel , often referred to simply as the Channel, is an arm of the Atlantic Ocean that separates southern England from northern France, and joins the North Sea to the Atlantic. It is about long and varies in width from at its widest to in the Strait of Dover...
; around the same time, his wife gave birth to their daughter, Kathleen Anne Hensley, in February 1943. In all, his planes were shot down two or three times. He was awarded the Distinguished Flying Cross
Distinguished Flying Cross (United States)
The Distinguished Flying Cross is a medal awarded to any officer or enlisted member of the United States armed forces who distinguishes himself or herself in support of operations by "heroism or extraordinary achievement while participating in an aerial flight, subsequent to November 11, 1918." The...
.
Hensley was injured during his service, and sent to a West Virginia
West Virginia
West Virginia is a state in the Appalachian and Southeastern regions of the United States, bordered by Virginia to the southeast, Kentucky to the southwest, Ohio to the northwest, Pennsylvania to the northeast and Maryland to the east...
medical facility to recover. There he met Marguerite "Smitty" Johnson (born Cairo, Illinois
Cairo, Illinois
Cairo is the southernmost city in the U.S. state of Illinois. It is the county seat of Alexander County. Cairo is located at the confluence of the Mississippi and Ohio rivers. The rivers converge at Fort Defiance State Park, an American Civil War fort that was commanded by General Ulysses S. Grant...
, January 16, 1919, died Scottsdale, Arizona
Scottsdale, Arizona
Scottsdale is a city in the eastern part of Maricopa County, Arizona, United States, adjacent to Phoenix. According to the U.S. Census Bureau, as of 2010 the population of the city was 217,385...
, October 11, 2006, daughter of Swedish American
Swedish American
Swedish Americans are Americans of Swedish descent, especially the descendants of about 1.2 million immigrants from Sweden during 1885-1915. Most were Lutherans who affiliated with the Evangelical Lutheran Church in America ; some were Methodists...
parents), who had one daughter, Dixie, from a previous relationship. Hensley divorced his wife, and shortly thereafter married Marguerite on March 29, 1945 in Memphis, Tennessee
Memphis, Tennessee
Memphis is a city in the southwestern corner of the U.S. state of Tennessee, and the county seat of Shelby County. The city is located on the 4th Chickasaw Bluff, south of the confluence of the Wolf and Mississippi rivers....
while on leave from the USAAF. They would have one child together, Cindy Lou Hensley
Cindy Hensley McCain
Cindy Lou Hensley McCain is an American businesswoman, and philanthropist, and the wife of United States Senator and 2000 and 2008 presidential candidate John McCain of Arizona....
, born 1954. Hensley's first daughter grew up with her mother, but he maintained occasional contact with her.
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. In 1948, both brothers were prosecuted by the federal government and convicted of multiple counts of falsifying liquor records in a conspiracy to conceal illegal distribution of whiskey against post-war rationing regulations. Jim Hensley received a six-month sentence (later upheld but suspended by an appeals court) while his brother received a year in federal prison, and both were fined. In 1953, Jim Hensley and Marley were charged by federal prosecutors with falsifying liquor records. Defended by future Supreme Court Justice William RehnquistWilliam Rehnquist
William Hubbs Rehnquist was an American lawyer, jurist, and political figure who served as an Associate Justice on the Supreme Court of the United States and later as the 16th Chief Justice of the United States...
, they were acquitted.
In December 1952, the Hensley brothers bought into the Ruidoso Downs racetrack in New Mexico
New Mexico
New Mexico is a state located in the southwest and western regions of the United States. New Mexico is also usually considered one of the Mountain States. With a population density of 16 per square mile, New Mexico is the sixth-most sparsely inhabited U.S...
, with Eugene running it and Jim returning to Phoenix. 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. A 1953 New Mexico State Police
New Mexico State Police
The New Mexico State Police is the state police agency for New Mexico, which has jurisdiction anywhere in the state. It was created to protect the lives, property and constitutional rights of people in New Mexico...
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
Organized crime
Organized crime or criminal organizations are transnational, national, or local groupings of highly centralized enterprises run by criminals for the purpose of engaging in illegal activity, most commonly for monetary profit. Some criminal organizations, such as terrorist organizations, are...
, a conclusion echoed decades later by the Arizona Project investigative reporting team. The Hensley brothers gained their Ruidoso Downs racetrack license in 1953, as no New Mexico law barred convicted felons from race track ownership, although in 1955 new Governor of New Mexico John F. Simms
John F. Simms
John Field Simms, Jr. was a U.S. politician and judge from the state of New Mexico. He was born in Albuquerque. He was appointed to serve on the New Mexico Supreme Court from 1929 to 1930. He was a member of the New Mexico House of Representatives from 1947 to 1949...
would say he was "appalled" by the previous administration's decision to do so. Previous Governor Edwin L. Mechem
Edwin L. Mechem
Edwin Leard Mechem was a prominent Republican politician from New Mexico. He served as the 15th, 17th and 19th Governor of New Mexico and represented the state in the United States Senate...
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. Jim Hensley would sell his interest in Ruidoso Downs to his brother Eugene in 1955 (who would in turn sell it to a Marley-connected company in 1969).
Hensley & Co.
In 1955, Hensley founded the beer distributorship that would have his name, borrowing $10,000 against everything he had to buy a small existing distributorship. He was given a state liquor license despite his normally disqualifying past felony conviction. At the start it had 15 workers, sold 73,000 cases of beer a year, and had a 6 percent market share. Hensley soon switched to exclusively distributing Anheuser-BuschAnheuser-Busch
Anheuser-Busch Companies, Inc. , is an American brewing company. The company operates 12 breweries in the United States and 18 in other countries. It was, until December 2009, also one of America's largest theme park operators; operating ten theme parks across the United States through the...
beer. Under the early names Hensley & Company Distributors and Hensley & Company Wholesale, the company saw decades of steady growth. It was aided by the Phoenix area becoming one of the fastest-growing regions of the country while the company maintained its position as Anheuser-Busch's only distributor there. Jim Hensley's tireless sales efforts and the generous wages and benefits he gave employees were also key success factors. By 1980 the business had become quite successful and Jim Hensley was a multi-millionaire. Hensley had also distanced himself from Marley, and had helped set up a local hospital; nevertheless, he was never fully accepted by the Phoenix establishment.
In 1981, Hensley hired his new son-in-law John McCain
John McCain
John Sidney McCain III is the senior United States Senator from Arizona. He was the Republican nominee for president in the 2008 United States election....
, recently married to his daughter Cindy, as Vice President of Public Relations for Hensley & Co. McCain soon left to begin his Congressional career with a victory in the 1982 election for U.S. House of Representatives. Jim Hensley's past record with the law, as well as his past connection to Marley (who was suspected by the police in the 1976 car-bomb murder of Arizona Republic investigative reporter Don Bolles
Don Bolles
Don Bolles was an American investigative reporter whose murder in a bombing is linked to the Mafia.-Biography:...
), were raised by McCain's opponent in the 1986 general election campaign for the U.S. Senate. McCain won that election handily.
As his business continued to grow, Hensley became one of Arizona's richest men, although he never sought publicity. He held most of the controlling stock in Hensley & Co., although by 2000 his health was poor and he had withdrawn from daily operational control. With 500 employees, annual revenues at the time were about $220 million on 20 million cases of beer sold; Hensley & Co. was the second-largest Anheuser-Busch distributor in the nation, the fifth-largest beer distributorship overall in the nation and the 12th largest privately held company in Arizona. Jim Hensley was a major contributor to charity in the Phoenix metropolitan area
Phoenix Metropolitan Area
The Phoenix metropolitan area, often referred to as The Valley of the Sun, is a metropolitan area, centered on the city of Phoenix, that includes much of the central part of the US state of Arizona...
as well, starting the Hensley Family Foundation. He also supported groups such as NASCAR
NASCAR
The National Association for Stock Car Auto Racing is a family-owned and -operated business venture that sanctions and governs multiple auto racing sports events. It was founded by Bill France Sr. in 1947–48. As of 2009, the CEO for the company is Brian France, grandson of the late Bill France Sr...
and Gilbert Rodeo Days.
Hensley died in Phoenix on June 21, 2000. His frequently-amended will
Will (law)
A will or testament is a legal declaration by which a person, the testator, names one or more persons to manage his/her estate and provides for the transfer of his/her property at death...
left his entire estate to Cindy Hensley McCain, who became the controlling stockholder and chair of the board after his death. His first daughter Kathleen, her husband and children had received substantial ongoing gifts, credit cards, and college tuition payments in the decade before his death, but were left only one modest lump sum from his estate.