The Waterbury Democrat., 1940-09-09

and tanks, new factories a
 And part of the delay has re- suited 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 lead- CTS have gone ahead and financed their own plant expansion with out waiting 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, New
 port News Shipbuilding, Beth
 lehem Shipbuilding, Bath Iron
 Works, Federal Shipbuilding,
 Midvale Steel, Carnegie Illinois
 Steel, Bethlehem Steel, Bausch
 and LOmb, General Electric,
 Ford Instrument Company, Edo
 Aircraft, Grumman Aircraft,
 Brewster 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 them selves but also doing a service for the Government. For instance, the Elco Company of Bayonne, N. J., put up $8,000 plant extension about year ago in order to man. ufacture motor torpedo ("mos- quito") boats. AS a result, it is now turning over to the Navy one new, and badly needed, mosquito boat each week.
 However, among many other manufacturers there has been in- excusable backing and filling over factory expansion and how the new plants will be taxed and fin anced. There is no question but this dickering has definitely slowed up the defense program. GOVERNMENT ARMS PLANTS
 There are three general means of operating factories for national defense.
 ONE is the arsenal, completely owned and operated by the Gov- ernment, such as the Frankford Arsenal in Philadelphia, or Rock Island Arsenal, III. For the most part private industry objects to too many of these government arsenals.
 TWO is the factory completely owned and operated by private industry. This was the practice employed during the World War.
 THREE is 8 compromise system whereby the Government buys the ground and erects the factory, then lets the private manufactLr- CT step in and opertae the plant for a management fee.
 Of these three plans, the first,
 namely government arsenals, is
 bitterly opposed by business,
 while the second, that of private
 factories, is vigorously opposed
 by the Government. And because
 private munitions plants were
 torn down after the World War,
 the United States finds itself in
 a serious predicament today.
 For instance, take the question of powder-most essential of all ingredients to national defense program. At the end of the World War, the United States. by hercu- lean effort and by spending vast sums of money, was producing 496, 6,000,0 pounds of gun powder annually. In addition, new fac- tories were being built which in another three months after the Armlstice, would have upped our powder production by another 800 ,O00 000 to a total of one bile lion pounds. Tn comparison with this billion pounds. however. the annual production of powder in the United States today is Q pal- try 20.000,000 pounds. Reason for this b that private industry tore down It's powder factories after the war.
 POWDER SHORTAGE SERIOUS
 Powder Is the bottleneck Of na. tlonaI defense. without it not c shot can be fired, not even Q 70. volver. And today's powder short. age is most serious, ft is to avoid these shortages Co the future. not only in regard to powder, but also other essentlals of modern ware fare that the Government k anxious l0 build some Of Ga Own plants, oF nt least obtain c Hen 0n them ilt order t0 prevent their AmafFlanilaea Aflap flae vmR IA AuAF