Evening star. [volume] (Washington, D.C.) 1854-1972, 1940-08-21
Draft Of Money
las Well as Men
Asked byLee
Industry AssuiIed
For Reluctance on
Defense Contracts
BY the Associated Press.

OefenSe contracts
BY the Associated Press
Senator Lee, Democrat, Of Okla.
homa. asserted today that very
unpatriotic attitude on the part Of
leaders of industry in the United
States" demonstrated a need for
legislation to draft capital as well
as manpower. T..
Il can't imagine a more unpa-
triotic attitude than has been taken
by the leaders of industry in this
country" Senator Lee told the Sem
ate, to which he read testimony Of
Army and Navy officials that con-
tracts for planes. guns and ships
were being delayed chiefly because
OF industry's objections to profit
restrictions and existing tax laws.
They have put their patriotism
on cash, dollars and cents, basis"
Senator Lee declared, yet they are
expecting Congress to draft man.
power to protect their wealth."
Urges Draft Of Wealth.
He urged amendment of the
Burke-Wadsworth compulsory mill
tary training bill to require persons
able to do so to lend money to the
Government at maximum interest Of
! per cent whenever manpower was
drafted.
THE trouble with some of these
captains of industry" the Okla.
homan asserted. "is that they are
the kind Of patriots who want me
to give my life for their country"
Senator Lees proposal won sup
port from Chairman Walsh of the
Senate Naval Affairs Committee,
who recalled the difficulties found
by the Navy in obtaining necessary
ornaments because these business
men have said they were out for
profits" and there profits ARE Is
per cent" for airplanes.
Walsh Suggests Change.
He asked that Senator Lee con.
slider changing the amendment so
that the President would be given
authority to take over all plants in
an emergency.
Such authority already is granted
in little-known paragraph of the
National Defense Act which pro-
vides that in times of emergency,
If a manufacturer refuses to accept
orders for which his plant is suited,
he can be criminally prosecuted and
the plant may be turned over for
Government operation.
Meanwhile, an important frac.
ton of the airplane industry as.
serted that it is ready to build
airplanes first and talk about
profits afterward." This pledge and
an announcement that already they
have made material investments in
plant expansion were contained in
. joint statement issued by the
heads Of i've major companies.
Plane Makers Cite Preparations.
Represented were Donald w.
Douglas of the Douglas Aircraft Co.,
Robert E. Gross of the Lockheed
Aircraft Co., p. G. johnson of the
Boeing Airplane Co., r. w. Millar
Of Vultee Aircraft, Inc, and r. n.
Fleet of Consolidated Aircraft.
In the present national defense
emergency, aircraft manufacturers
have offered and will continue to
give the Government of the United
States every resource and facility at
their command" they said.
In spite of many obstacles and
lack of proper legislation, we have
gone ahead with preparations for
increasing our production to meet
the current challenge to America
and build up aerial defense. $50
In the last 10 weeks members Of
the industry have actually pur.
chased on their own responsibility
more than $10O, OOO, 900 worth of ma
terials for future use and have spent
or contracted obligations for more
than $50 1000 900 in additional plant
facilities, machinery and equipment
and have added to their pay rolls
q 900 new employees.
Certainly this is far from stand.
ing still"
Interceptors Negotiated For.
Mr.. Gross announced today in
Burbank, Calf. that Lockheed was
negotiating with the Government for
a substantial quantity of high-speed
interceptor fighters.
The negotiations, he said, were
being carried on in keeping with
the plan tentatively worked out be-
tween aircraft manufacturers and
Washington to proceed with manu-
featuring pending the passage Of
new legislation by Congress.
The new Lockheed interceptor Is
one of the worlds fastest planes,
having attained speed bursts of 40
miles an hour in a transcontinental
flight last year.
Testimony by naval officials at
hearings on the $4,000, 000, 900 appro-
priation bill for starting two-ocean
Navy and equipping an Army Of
200, 900 that progress has stopped
on the procurement of material that
go into ships" prompted Senator
Mcclellan, Democrat, of Tennessee
to suggest in committee that we
had better use a little force" to have
industry accept defense contracts.
Senator Russell, Democrat, Of
Georgia commented: II guess we
will have to conscript business"
Senator Russell proposed that q
pending $5.008, 900 900 defense APP
preparations bill be amended to en-
power the President to institute
condemnation proceedings against
plants when the War or Navy De-
partments were unable to reach
agreements with plant owners for
the production of defense items.
Pending determination Of the COM
demnation proceedings, the Secre-
tary Of War or Secretary Of Navy
could take over the plant and oper-
ate 1t either with Government per-
sonnet or by contract with private
firms. 4t
Senator Wheeler, Democrat, Of
Montana told the chamber that ''if
we are going to have q peacetime
draft of men there can be no reason