The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1940-09-19
rN1ll{aQa,
|M6RRfG0-QQubD
Washington, D. C.

peared on the surface was behind
| Cordell HulPs warning against the
invasion of French Indo-China.
In this, they were right. There
| was.
Nobody in the navy department is
shouting it from the housetops, but
| the u. S. fleet-or at least most of
| twill now remain in the Pacific.
Previously it was considered nee
essary to bring the fleet from Ha-
| wall and California in order to sta
ton most of it around Panama and
the Caribbean. This would have
made it impossible to keep watch
full eye on Japanese operations in the
| direction of the Malays and the
Dutch East Indies-all-important
sources of American tin and rubber.
Probably it will still be necessary
to bring few ships to the Atlantic
side of the canal. But the island
base deal with Great Britain has
now made it possible to police most
of the Caribbean and the Atlantic
seaboard by air instead of by sea.
NAVAL NOTES
At first the chief improvement to
the new U. S. bases on British is
lands will be airports. Not only are
they needed Immediately, but also
are cheapest and quickest to con-
struct. Naval bases, which mean
oil tanks and repair facilities, take
time to build and may never be
constructed to any great extent. The
U. S. navy will take advantage of
British naval facilities for the time
being.
Significant was the fact that many
of the average destroyerS being
sold to England were fitted out with
cables to neutralize magnetic mines
even before the deal was published
by the President. In other words,
there had been no real doubt for a
week or so before the announce
ment that the deal would be closed.
Negotiations for naval bases by
no means are terminated. What the
navy wants more than anything else
is a good base in Brazilian waters,
and if possible one in Uruguay. In
formal conversations regarding a
Brazilian base have been going on
for some time.
u. S. REARMAMENT DRIVE
The bottleneck of American re-
armament is factory expansion.
In order to produce more planes,
guns and tanks, new factories are
necessary. And part of the delay
has resulted from a wrangle over
how taxes shall be paid on these
new plant expansions.
In fairness to industry, it should
be noted that many of its leaders
have gone ahead and financed their
own plant expansion without wait
ing to see what the tax picture would
be. In fact some industrialists were
far-sighted enough to begin more
than a year ago. Companies which
did this include:
New York Shipbuilding, Newport
News Shipbuilding, Bethlehem Ship
building, Bath Iron Works, Federal
Shipbuilding, Midvale Steel, Carne-
gie-Illinois Steel, Bethlehem Steel,
Bausch and Lomb, General Elec-
trio, Ford Instrument company, Edo
Aircraft, Grammar Aircraft, Brew
ster Aeronautical, Eclipse Aviation
and Walter Kidde.
Probably the list takes in many
others. And because of their far
sightedness, these firms not only are
reaping good profits for themselves
but also doing service for the gov
eminent. For instance, the Elco
company of Bayonne, N. j., put up
an 100000 plant extension about a
year ago in order to manufacture
motor-torpedo ("mosquito") boats.
AS result, it is now turning over
to the navy one new, and badly
needed, mosquito boat each week.
However, among many other man.
ufacturers there has been backing
and filing over factory expansion
and how the new plants will be
taxed and financed. There is no
question but this dickering has def
nitely slowed up the defense pro-
gram.
Powder Shortage Serious.
Powder is the bottleneck of ma
tional defense. Without it not shot
can be fired, not even a revolver.
And today's powder shortage is most
serious.
1t is to avoid these shortages in
the future, not only in regard to
powder, but also other essentials of
modern warfare that the govern
ment is anxious to build some of its
own plants, or at least obtain lien
on them.
This also would solve the tax prob
lem, because industry would have
no need to ask for early amortiza-
ton on it's emergency expenditures.
Government Arms Plants.
There are three general plans:
One is the arsenal, completely
owned and operated by the govern
ment, such as the frankfort arsenal
in Philadelphia.
Two is the factory completely
owned and operated by private in
dustry. This was the practice en-
ployed during the World war.
Three is a compromise system
whereby the government buys the
ground and erects the factory, then
lets the private manufacturer step
in and operate the plant for man.
agement fee.
Although private industry looks
askance at the idea of the govern
ment building too many munitions
plants, this opposition is a mere bag
of peanuts compared to its vigorous,