Evening star., 1940-06-26
Other Plane Makers
Are Sought as Ford
Balks al Deal
Defense Commission
Seeks Cooperation
On New Fronts
BY JOHN c. HENRY.

oAAAN ~
The National Defense Commits
sion turned its back on Henry Ford,
Peace Ship pilot of 1915, today to
seek mass production "co-opera-
tion" for clouds of airplanes" from
other American industrial sources.
Several weeks of negotiations
precipitated by a confident assertion
OF the Ford Motor Co. head that
his company could turn out 1000
complete fighting planes daily ended
last night in an exchange of caustic
remarks by Mr.. Ford and William
s. knudsen, production chief for
the Defense Commission.
On the surface, the deal foundered
on the motor magnate's insistence
that he never had any intention
OF making planes or parts for any
nation but the United States and
then only for defense purposes.
Consequently, he rejected yesterday
an initial order for 5000 Rolls-Royce
engines, of which 5000 were to 20
10 Britain and the remainder to
this Government.
Co-operated With British.
On the theory that an order of
this magnitude would be large
enough to justify mass produc-
ton methods and retooling of
part OF the Ford plant, the De-
tense Commission had co-operated
with the British Purchasing Mis-
sion in arranging the transaction
and had sponsored a $4,000, 900
congressional appropriation to cover
Americas part of the purchase.
According to the Defense Com
mission it had received assurances
from Easel Ford that the joint Or
der arrangement was satisfactory,
but that in conference between
Mr.. Knudsen and the Fords on
Monday the Fords returned to
their position Of refusing to manu-
factme for the British government.
Commission sources point out that
Ford interests in Great Britain pre-
viouSly had contracted to manufac-
ture Rolls-Royce engines there.
A Defense Commission spokesman
today said the present breakdown
in negotiations with the Ford Co.
did not affect possible future orders
for his factories on production of
planes and engines for the United
States.
The proposed British United States
order fell through. the spokesman
said, because two-thirds of the
motors were for Great Britain and
the number remaining after Mr..
Ford's refusal to make any for
Britain was insufficient for mass
production methods. AS a result
the unit price would be too high. he
said.
Behind the scenes of the entire
incident have been off the record
assertions by airplane engine eX-
perts, both civil and military, that
no industrial plant in America is
within two years of being able to
produce complete planes at the rate
of 1000 daily.
Signaling the blowup of the Ford
deal. Mr.. Knudsen announced last
night that cooperation in the pro-
duction of this important military
equipment will be sought elsewhere
In reply, Mr. Ford was quoted as
follows by the Associated Press in
Detroit:
MY offer to make airplanes, avi-
alton engines or anything else the
United States Government needs for
defensive purpose still stands. NV
original proposal was to make air
planes on mass production basis
up to 1000 day within six months
under certain conditions. The
conditions among other things speci-
fled that they were to be for the
defense of this country.
Offer Still Stands.
MY offer was made in response to
President Roosevelt's plea for $4,000
airplaneS. 1t still stands.
1T was my understanding that
we were dealing with the United
States Government and that the
commission represented this Gov
ernment-not that of Great Britain
or any other foreign nation
The White House had little COM
ment on the situation today beyond
a remark by Stephen T. Early. sec
retary to the President, that Mr..
knudsen apparently had tried to
work out a transaction with the
Ford Co., but had been unable to
reach any satisfactory agreement.
To questions as to what authority
the Defense Commission possesses
for 'persuading" industry co-opera-
ton, Mr.. Early expressed the opinion
that no actual compulsion can be
exercised in peace time. 1t was re-
called, however, that loud and wide
spread promises of cooperation in
the defense program have been ex-
pressed by American industry.
May Seek Others Aid.
Meanwhile, it was believed the
Defense Commission might turn to
some other big automobile manu-
facturer for the desired assistance
in the airplane field. Both the
Packard and Chrysler companies
produce automobiles on mass
production basis, while General