Evening star., 1940-09-10

Job is not yet done, though the
record shows that the problem has
been on the Administrations door
step for more than two years.
Within the last fortnight, the ad-
ninistration, aware of the criticisms
being widely expressed, attempted
to shift the blame to private industry
and veritable cataract of abuse
was let loose on Capitol Hill, which
reached a climax in the form of the
Russell -Overton amendment to COM
mandeer industry. When Wendell
Willkie pointed out that such a
power was not needed for exercise
by any one man and that the real
purpose was to get dictatorial pow
ers over industry, irrespective of
defense contracts, the President per-
mitted his vice presidential candi-
date to make an issue Of it for
political purposes, and the public is,
therefore, not being told the whole
truth about the neglected amorti2e-
ton problem. Z
The record shows that on April
l3, 1888, the chief of the Bureau
of Ordnance OF the Navy Depart
ment, which has the responsibility
for seeing to it that guns, armor
plate and explosives are manufac-
tured promptly, foresaw virtually all
the present difficulties on the ques-
ton of depreciation of new plants
for war purposes and formally called
Il to the attention of the Secretary
Of the Navy, though it was not
until almost year later-January
13. 1939-before a letter was sent
to the Treasury by Secretary of the
Navy Swanson calling further atten-
ton to the problem.
Whole Question Was Raised.
IN that original letter of April
l3, 1888, which is to be found in the
Senate Committee on Appropria-
tions' testimony of May IL, 1899,
the whole amortization question is
raised in such fashion that the
Roosevelt administratio cannot now
say the matter only came up after
Germany invaded Holland and Bel
GUM and began total war The
letter, signed by Admiral Furlong,
chief of the Bureau of Ordnance,
United States Navy, says:
This bureau is confronted with
the necessity of procuring the help
of private manufacturers in carry
ing out the naval building program
with respect to the manufacture of
guns, armor and fuses.
The facilities of commercial
plants to do this class of work are
inadequate. Considerable expendi-
ture in plant equipment will be
necessary in order to be in a posi-
tion to manufacture the guns and
fuses and certain sizes of armor
plate.
The bureau has found CONNER
cial plants reluctant to take up
major caliber gun construction.
They are not equipping their plants
to do it because of the length of
time over which they must now
spread their allowances of deprecia-
ton for plant equipment in deter
mining excess profits. They want
to know in advance of outlays of
capital for ordnance equipment
whether, for purposes of excess
profits, depreciation can be allowed
against the contract or over a short
er period of years than prevails for
commercial equipment.
Says Information Available.
ain the particular case where the
equipment has no value for COM
mercial work, it appears equitable
that the companies be allowed a
shorter length of time for charging
off the expenditures made solely on
account of this naval work.
This bureau will be able to state
Just which tools, machinery and
plant investment are necessitated by
contracts placed for ordnance and
from the probability of repeat or
ders to the plant will be able to
recommend over how MANY years a