Evening star., 1940-12-08
Defense Program
Held Loeeine
By OUen L. Scott.

t~eiIiicl Is IL neeClng ScneQuleS IN Its
own defense program. Airplane deliv-
cries are falling far behind expectations.
The production of ships to fill ever-in-
creasing gaps caused by submarines is
marking time. There is little evidence
that the vast productive machinery of
the United States is swinging swiftly
into line to fill the armament needs of
the American and British nations.
What is the trouble? Is this another
fall-down on the part of Government?
Why should producer of vitally needed
bombing planes fall so days behind in
filling an important order? Why is it
necessary for the United States to bor-
row engines from Great Britain in order
that this country can operate some of
the airplanes the American Army
requires? What is back of the continu-
ing argument about whether the steel
industry, the machine tool industry and
the chemical industry-as examples
should add to their facilities? In
word, why aren't there more results TO
show after six months of effort on the
part of American Government and
industry?
The answer, in part, is that Govern
ment does not function as smoothly as
it should. The Army and Navy haven't
known just what they wanted. There
is maximum of bureaucracy in the
procurement methods of the fighting
services. The effort of the National
Defense Commission and of the Army
and Navy is not meshing very well.
But the conclusion of some very i'm
portant officials is coming to be that
American management, just as much as
American Government, has its Short
comings There is more than suspicion
that important parts of industry are
more interested in making sure that old
forms are protected than in speeding
results in armament or in preparing for
an expansion of defense that will not
interfere with non-defense industries.
The challenge offered by Britain's plight
apparently is not exciting these sections
of industry.
President Roosevelt has been urged
to call these and other facts to the
attention of the public. The President
has demurred on the ground, it seems,
that he would be accused of business
batting. He is seeking to overcome pres
ent difficulties by conference and Coop
Grafton rather than by pressure.
The situation with which Mr.. Roose-
velt and his advisers are confronted
is this:
American business has on hand ten bill
lion dollars worth of defense orders. II
is assured of four more billions OF those
orders as soon as contracts can be placed.
It has two and one-half billion in British
orders and another one and one-half
billion of those orders are on the way.
This is a total of eighteen billion dollars
worth of busineSS-a volume that should
be cheering to an industry that has hun
gered for orders for SO many years. Yet
that is not all.
American industry demanded changes
in the tax laws so that it could pay IN
five years, out of profits on defense
orders, for new plants built to fill those
orders 1t was promised these tax law
changes, but baked at action for three
months while Congress was debating be-
fore acting upon them. 1t was given
contract where desired. that called for
the construction of plant to be paid for
L., i,oE n IL
ments The r. F. c. agreed to finance
plant construction on low-intereSt rate
basis and to finance companies needing
financing to fill orders, in case private
bankers did not cooperate.
Yet industry still is marking time at
some key points. The reason? Because
industrialists in a few industries profess
to be very uncertain about the future.
They hesitate to expand plant, for fear
that the present emergency may be
short-lived and for fear that new plant
would only represent a further addition
to what. until recently, had been an
oversupply. They feel that the Govern
ment should agree to destroy any plant
created ICT dIHldIileHt pul poSeo- OllCC
the emergency ends while the Govern
ment feels that this plant should be
maintained in standby condition so that
the United States will not again be
caught short-handed. They prefer not
to venture, even at Government expense.
Failure to break through this impasse
after six months of supposedly intense
effort to get results may be traced to
three causes
First is the fact that Mr.. Roosevelt
has been unable to rake clear where
he believes the Unitea States is heading
If measures to be taken are to be short
of war, then it seems unnecessary to take
the drastic actions that might be in
order with war. 'Enere is a feeling that
the vast armament effort may prove to
be flash in the pan, that something
may happen to end the war in Europe
and to bring sudden end to the emer-
gency and sudden check to spending.
There also is some feeling within in
dustry that the present program may
prove to be another scheme on the part
of Government to infiltrate into and to
gain control of American business.
Second of the causes stems from the
first. The President has turned over to
industry the direction of the defense
effort Dollara-year men crowd the De-
fense Commission staff. Some of these
men continue to draw compensation from
nj