Evening star. [volume] (Washington, D.C.) 1854-1972, 1940-08-12

equipment for David Lawrence.
their use will be ready-but because
if American interests are in danger
of attack III the next II months
then the loss of time, even days
or weeks, now is important.
Thursday night of last week the
Roosevelt administration arranged
a propaganda broadcast over four
major networks of radio. Unlike any
previous broadcastS all the members
of the National Defense Advisory
Commission and four radio common
tators engaged in what may be called
a multiple interview. The public may
have thought the questions and
answers were spontaneous, but &C
tually both were written out in ad-
vance, as often happens on radio.
What the public doesn't know,
moreover, is that the four radio
commentators wrote out many ques-
tons, but the publicity department
of the defense commission chose
what it wanted to answer. The re-
suit was an impression that all is
when such is not the case. Here is
an extract from the radio inter-
view:
An Example.
els it true that not a single COM
bat plane has been contracted for
out of money appropriated by Con-
gress up to August l?
NO" replied Mr.. Knudsen. The
Navy, for example, contracted for
S7,000000 worth of combat planes
in July. Take the money appro-
priated by Congress thus far for
the defense program. They cover
about 4200-odd airplanes. Money
in the defense appropriation bill
now before Congress will add IA 900
more planes TO the total. We cannot
make complete plans and arrange
final details with the manufacturers
until We know that the appropria-
tons are passed. We won't know
that definitely until the Congress
passes the bill However, We have
received from the principal aircraft
manufacturers complete estimates
on the plant necessary for the
whole program. I would like to add
that of the money available to us
on July |, five weeks ago, contracts
have already been awarded for As
per cent of the entire Army funds
and IS per cent of the Nays funds"
Now any one listening to the FORE
going would not realize that con-
tracts awarded" does not mean
contracts signed" or in process of
being fulfilled any more than the
propaganda phrase, contracts
cleared" which has been used by
official Washington in recent weeks,
means any more than merely being
filed with various Government
agencies which must pass on them.
Secretary of War Knew.
The true story of the progress of
eirplane production was known to
the Secretary of War last Thursday
night, because he told a congress
slonal committee about it the very
next morning. Friday, but nobody
In the administration thought of
asking the Secretary of War to par
ticipate in the broadcast or to use
the information which he gave to
the House Ways and Means Com
mittee and Senate Finance Com
mittee. Here is what Henry Slim
son, Secretary of War, in a care
fully prepared statement testified
on Friday, August 8:
I'm other words, Congress made
available to the Army during the
month of June approximately $780,
100000 for airplanes, engines and
accessories. Yet today, almost seven
weeks later, we have been able to
sign contracts for the construction
of but 33 planes of the 1000 or more
for which these appropriations were
made"
Mr.. Stimson, it will be noted, used
the word sign" instead of award
ed" or cleared" This means that
the manufacturer had to agree to
something offered him by the Gov
eminent. The Secretary exonerated
the Army, the defense commission,
the representatives of industry,
from any blame, but said the fact
was the entire program of air
plane construction is so large" that
st involves the construction of new
plants. He then added:
Cites Risks.
risks are inherent in any busi-
ness enterprise, Industry may be
expected to undertake normal risks.
Dat ,cly 70 &c
taking, at the request of the Gov
eminent. to expand at its own ex-
pense its plant capacity and of
then being left. upon sudden cessa-
ton of the emergency, with these
expanded facilities useless, is one
that is entitled to special considera-
ton. Under these circumstances
the uncertainty of future taxation
affected by this expanded construc-
ton not only fails to give the spe-
cial consideration mentioned above
but penalties the situation.
ut is this element of uncertainty
In respect to the industry's right
quickly to amortiZe its investments
in expanded construction and also
tflc QllSCl 90 W IIlC
and character of taxation which
will be levied during the period of
the contract which have chiefly
prevented the execution of these
contracts"
'Politics Robbing People"
Who delayed the passage of
resolution to permit amortization
Of capital by new industries en-
gagged in defense work? 1t could
have been put through overnight If
the Democratic party's leaders in
Congress and the President had
agreed Instead, for reasons as yet
unexplained but doubtless political,
the President insisted that the
amortization problem must wait for,
the enactment of an excess profits
tax law.
Now when such bill is ready it
Is to be damned through Congress,
using the great need for settling