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McLarty and Clinton first teamed up in Miss Mary Perkins' kindergarten class in Hope, Arkansas. Though Clinton moved north to Hot Springs in the second grade, the two boys saw each other during the summers, when Clinton visited his grandparents. In high school both attended Arkansas Boys State -- McLarty was elected governor; Clinton was tapped for Boys Nation, which led to a trip to Washington and a legendary handshake with J.F.K. Though each loved politics, they weren't identical: McLarty was a varsity quarterback while Clinton was a leader of the Hot Springs High School band. McLarty attended the University of Arkansas but was visited often by his Georgetown friend. During one trip, Clinton and McLarty were walking down a Fayetteville street when Clinton happened to glance in a store window. Seeing his reflection and that of his shorter and slighter friend, Clinton remarked, "McLarty, when we get to be 45, people are going to think I was the football player and you were in the band."
After college McLarty went into his family's auto business. In 1985 he became chairman of Arkla, Inc., a natural-gas distribution firm that was struggling under deregulation and a host of bad deals. McLarty tried to cut costs and expand markets, but increasing debts have driven the company's stock down almost 50% since he took over.
Modest in every way, McLarty admits a weakness for movies and likes to walk several miles a day. He is known as a white-knuckle flyer. "He sees a cloud," said transition official Skip Rutherford, "and goes to the cockpit to consult with the pilot."
McLarty was part of Clinton's campaign from the start. He helped raise $960,000 at a single Little Rock dinner last year, a feat that helped secure Clinton's status as an early front runner. By the end of the campaign, McLarty had emerged as a quiet consigliere, the only homegrown official on Clinton's tight transition board of eight. About his role in choosing Cabinet officers, McLarty will say only, "I was privileged to participate."
Such discretion may serve McLarty well in one of the world's most stressful jobs. Late last week, departing White House chief of staff James Baker telephoned McLarty. "He called with congratulations," said McLarty, "and we talked about how maybe both congratulations and condolences were in order."