Evening star., 1940-08-28
Defense Staff Of 500
Clears Contracts Of
Over Two Billion
500 of Army Fund Bill
And 1870 Of Navy Are
Cleared. Says knudsen
BY the Associated Press.

$iSAtS0s SbTS NuaoSSh
BY the Associated Press.
Helping the Army and Navy to
place defense equipment orders at
the rate of hundreds of millions a
month, the Defense Commission
rounded out its first three months
of work today with a progress re-
port that reads-in the words of
Commissioner William S. Knudsen:
we placed contracts for so per
cent of the Army appropriations bill
and rs per cent of the Navy appro-
priations in the last six weeks, so
we know we are getting something
done"
Although final deliveries on those
contracts may be weeks, months and
even years away that is only the
beginning of the story. There is
still more spending ahead in a pend
ing congressional appropriation eX-
ceeding $1,000 900 900.
On May %, the commission con-
sisted of nothing but the names of
six men and one woman appointed
by the President. Today, it has a
pay roll of 500 employees.
100 Get Dollar a Year.
Among the 500 can be found 100
dollar-a-year men, nearly every one
a KEY figure of industry, labor or
finance-probably the most impress
sive staff of big business brains re-
cruited by the Government since the
World War.
AT the outset, the commission
defined its task as that of translat-
ing defense blueprints into action, of
answering these questions: What
do we need? Where is it2 How do
we get it?"
Action to date is best illustrat ted
by its clearing of more than
So 100000 in defense contracts
since the 1901 funds became avail
able July /. lending Army and Navy
buyers some of the Nations shrewd-
est business judgment. Many of the
contracts cleared" have yet to be
formally awarded and signed.
Under the clearing system, all
Army and Navy contracts of $500, 600
or over are submitted to the Defense
Commission before being awarded
The commission attempts in advance
to avoid improper distribution of
orders, labor shortages. transporta-
ton delays and other "bottlenecks'
that might hamper execution of the
contracts
Excluding contracts of less than
$500 900, the commission had cleared
sl,470 100000 of the Nays sl,800,-
100000 and s605 100000 of the
Armys So 300 900 900 by August IT.
Since August IT, it has cleared
100000 more for both services
ian Army Navy breakdown is not
yet available. In addition, both
services have awarded millions of
dollars in contracts of less than
$780, 900.
Plans for Future Rushed.
Asked what action lay ahead. a
commission spokesman said recent
ly: More of the same" That is,
more study of defense needs, more
effort to supply. them.
Looking back, the commission or
its various members and employees
have:
Worked out. subject to enabling
legislation by Congress, new plan
fo mr. tctr r
basis for plant expansions needed to
increase production, with the idea
of accleerating expansion and en-
couraging private capital to partici-
pate.
Conferred endlessly with plane
manufacturers in an effort to reach
satisfactory contract terms and plant
expansion policies.
Made plans to increase the T. "
AS power production for defense
industries, beginning with a $685.
100000 expenditure.
Launched a program of voluntary
training and retraining to provide
skilled workers for defense indus
tries, enrolled nearly 10000, made
plans to take over 100000 more and
started a training industry sys-
tenn.
Established Labor Advisory Com
mittee from the A. F. L., G. I. O.
and railway brotherhoods and taken
other steps, including the creation
of an A. F. Lie. I. o. negotiating
group, to allay labor disputes in de-
fense industries.
Motor Contract Awarded.
Placed a contract with the Packard
Motor Co. for the manufacture OF
plane engines, aided in negotiations
for two powder plants and a tank
arsenal and investigated the ability
of other manufacturers to turn out
new products.
Begun drafting plans to store large
stocks Of 100 octane gasoline, vital
for combat planes, and to stimulate
the production of synthetic rubber,
manganese and toluol, the latter be-
ing component of INT.
Called conferences of Government
agencies, civil organizations and
retailers to safeguard the health
and protect the purses of workers
and consumers in a preparedness
economy.
Urged railroads to get their equip
ment in shape for increased traffic
and enlisted the cooperation also
of highway and water carriers.
Requested the War and Navy De-
partments to set up preference
system to indicate the order in which
defense contracts should be exc
cuted.
Reached an agreement with paper
pulp producers to avoid price irf1a.
ton and held conferences with Other
industries on price problems.