Summa Corporation

Summa Corporation was a major American conglomerate formed from the industrial and real estate assets of the reclusive billionaire Howard Hughes. Established in 1968 to consolidate his diverse holdings following the sale of Hughes Tool Company, the corporation became a central vehicle for his investments in Nevada, particularly in Las Vegas. Its operations spanned hospitality, aviation, media, and mining, reflecting Hughes's wide-ranging interests. The company was eventually dissolved in 1987 after years of complex legal battles over the Howard Hughes estate.

History

The corporation's origins trace directly to Hughes's move to Las Vegas in 1966 and his subsequent acquisition spree of key properties, including the Desert Inn, Frontier Hotel and Casino, and Sands Hotel. Following the 1968 sale of Hughes Tool Company to the public company Toolco, which provided a massive cash infusion, the private Summa Corporation was created to manage his remaining industrial and Nevada-based assets. For much of the 1970s, it operated under the tight, often eccentric, control of Hughes and his inner circle of executives, including Frank William Gay and attorney Chester C. Davis. After Hughes's death in 1976, the corporation became the primary asset of the Howard Hughes Medical Institute, triggering a protracted legal conflict over his estate.

Corporate structure and holdings

The corporation was structured as a private holding company overseeing a vast and eclectic portfolio. Its most visible assets were its Las Vegas hotel-casinos, which at their peak included the Landmark Hotel and Casino, Castaways Hotel and Casino, and the Silver Slipper. Beyond hospitality, it owned Hughes Airwest, a regional airline, and retained interests in the aerospace sector through entities like Hughes Helicopters. Other significant holdings included the Howard Hughes Airport in Las Vegas, large tracts of undeveloped land in Las Vegas Valley and Arizona, the Hughes Mining Barge used in CIA projects, and television station KLAS-TV. The Howard Hughes Medical Institute served as its sole beneficiary after 1976.

Notable projects and ventures

One of its most ambitious projects was the development of the Summa Tower, intended to be the world's tallest building in Houston, though only the foundation was completed. The corporation was also involved in the Glomar Explorer project, a deep-sea recovery vessel built for a clandestine CIA mission to raise a sunken Soviet submarine. In Nevada, it pursued real estate development on its extensive land holdings and attempted to influence state policy on issues like nuclear testing. Its operation of Hughes Airwest represented a significant foray into commercial aviation, with routes across the Western United States and into Mexico and Canada.

Legal and financial issues

Following Hughes's death, the corporation was immediately embroiled in the "Mormon will" controversy, a forged testament that complicated probate. The legitimate estate proceedings, overseen by Texas courts, placed control with executives Frank William Gay and Chester C. Davis, leading to accusations of mismanagement and self-dealing. Major assets like the hotel-casinos and Hughes Airwest were sold off to pay estate taxes and settle claims. A pivotal 1984 U.S. Supreme Court decision upheld the tax-exempt status of the Howard Hughes Medical Institute as the estate's beneficiary, but by then, the corporation's dissolution was inevitable due to financial pressures and ongoing litigation.

Legacy and dissolution

The systematic liquidation of its assets culminated in the 1987 dissolution of the corporation. Its most enduring legacy is the vast wealth it transferred to the Howard Hughes Medical Institute, which became one of the world's largest private biomedical research foundations. The undeveloped land holdings, particularly the Summerlin area, were master-planned and developed, profoundly shaping the growth of Las Vegas Valley. The story of its rise and fall remains a key chapter in the histories of Howard Hughes, corporate conglomerates, and the transformation of Las Vegas from a gaming center to a major metropolitan area.

Category:Defunct companies based in Nevada Category:Howard Hughes Category:Companies established in 1968 Category:Companies disestablished in 1987