SMALL WAR PLANTS

Evening Post, Volume CXXXVIII, Issue 125, 23 November 1944, Page 9

SMALL WAR PLANTS

CIVILIAN TRADE

SPEEDY RECONVERSION SOUGHT

(By Leo Cherne, Executive Secretary of the Research Institute of America.)

WASHINGTON, October 31. When the War Production Board announced its so-called spot authorisation programme for reconversion several months ago, many parts of the business community of the United States, especially among smaller companies, expected there would be a large-scale return to civilian production. Under the spot authorisation programme, lqcal offices of the W.P.B. were supposed to have power to api prove individual applications for ! civilian manufacture as long as production would not use critical materials or divert man-power from more essential work. Actually, this programme has resulted in ** only a small return to peacetime production in the United States. I One reason has been the continuing demand of war factories for enormous quantities of basic material like steel. Another has been lack of manpower. As part of the original programme it was clearly stated that War Man-power Commission officials would have to approve any reconversion re- ! quests before a company could go ahead with civilian production even if materials were available. To carry out this function, special area production committees were given authority to veto applications. Since military representatives who have consistently i opposed the idea of early reconversion have a large voice in these committees, there have been many refusals of spot authorisation requests. TO HELP SMALL BUSINESS. One basic aim of the spot authorisation plan was to help small business, which has in some ways had a difficult time under America's total war economy. It is thought that these companies should be given special con- ! sideration and allowed to reconvert to their peacetime activity as soon as feasible. It is true that the programme has been helpful to many small businesses, but it has not operated on any large scale. At present there is a movement in Washington to simplify spot authorisation procedure and make it easier for small firms to return to civilian work. It is certain that some steps in this direction will be taken in the near future. But it is also clear now that there will be no substantial reconversion to peacetime production of any important part of American industry until victory over Germany brings the European phase of the war to an end. and even then demands for material for the Pacific will take precedence. Looking ahead, however, the War Production Board recently has taken several steps designed to speed reconversion as soon as the military situation allows. For instance, under WPB rules it is now possible for companies to place orders with suppliers for equipment like machine tools Delivery will be delayed until after all WPB restrictions are removed, but at least this procedure is giving companies a chance to set the wheels of their coming civilian production in motion. Perhaps the most important development along these lines is the discussion now going on in Washington over the basic question: When should smaller companies be completely free to reconvert? The demobilisation law recently passed by Congress contained provision that small business must be given special exemption from restrictions that might otherwise hem in any programme for expanding civilian production. There were many who thought this would be merely ineffective verbiage. But now the Smaller War Plants Strictly" "^ thSt thG law ALL SHACKLES MUST GO. If the corporation has its way all Sf?. V^ ust be taken off small plants which are willing and ready to start civilian production now. This would greatly enlarge the scope of spot authorisation, especially by lowering M^.' p°wer Commission hurdles g The Smaller War Plants Corporation is winning the legal battle, but the final results will probably be a compromise. For instance, the cotpScZS eS WitH the #ar Man-power Commission contention that to exempt all small plants of 250 employees or contS d THrtUally disr^ pt ™n-P°wer controls. The answer is almost sure to. be a new definition of small plant* 7m»lovL d%t iOn ,to all°w companies employing 50 or less workers to re-'