Evening star., 1941-10-12
u. ). Defense 5etup
Resembles Giant
o|dingCompany
President Top Tycoon;
InterIoekine Direetorotes
Feature Lower Units
By the Associated Press.

Like a giant holding company
with policy making, financing ano
planning companies at the top and
a host of operating units under
meath to carry out orders-that'
the Nations ever-eXpanding defense
machine.
President Roosevelt is the one
man top holding company. His Or
ders go forth through a variety OF
subordinate holding companies and
interlocking directorates down to
the operating agencies. When he
does not do his own ordering, he
delegates others to take over au-
thority.
All told, there are about Is per-
manent and emergency agencies in
the gigantic machine-an alphabet
ical lineup never dreamed of in
early New Deal days.
All these agencies are, for all prac-
tical purposes, directly under the
executive Office of the President.
About half of them are technically
under the Office of Emergency Man
sgement Co. E. M. another White
House adjunct, but this agency
serves merely as a liaiSon or CO.
ordinator between the President and
a dozen emergency defense agen-
CieS.
With Wayne Coy, a young In
dianan, in charge, o. E. M. tunnels
information back and forth to save
the President lot of detail paper
and telephone work. One of its
more recent jobs was to handle an
exchange of letters between the
President and O. P M. and the
Federal Power Commission concern
ing national daylight savings law.
An Alphabetical Maze.
Aside from the armed services
and other regular departments and
agencies, the most important cogs
in the defense machine are the
Lend-Lease Administration ILL.
A., Supply, Priorities and Alloca-
tions Board IS. P. A. b, Economic
Defense Board (E. D. b., Office of
Production Management (O P. M =,
and Office of Price Administration
90. P. Al.
Harry L. Hopkins is the big boss
of L. L. A, yet to be formally Gre
ated as such. He is officially known
as special assistant to the PreSi-
dent on lend-lease business. He lives
at the White House and is in
almost constant touch with Mr..
Roosevelt on where American arms
can do the most good at a given
moment and what and how much
can be spared for overseas aid.
Edward r. StettiniuS, jr., former
o. P. M priorities chief, is under
Mr.. Hopkins as iend-lease admin
istrator. He recently was given the
power to sign the Presidents name
on lend-lease ALLEGATIONS.
Mr.. Hopkins is a good example
of the way the ''interlocking di-
rectorate" feature of holding COM
pany system is adapted to national
defense. Along with his LII. A.
duties he is a member of the all
important S. P. A. B.
In fact. all S. P. A. B. members,
its chairman, and its executive di-
rector have other major defense
duties which makes it one of the
top holding companies"
Wallace Heads S. p. A. B.
Created recently to overcome con-
fusion arising from overlapping
duties of the o. P M. and the now
defunct Office of Price Administra-
ton and Civilian Supply %. P. A.
c. s., S. P. A. B. is headed by
Vice President Wallace, who at
tends cabinet meetings and also pre-
sides over the au-powerful Economic
Defense Board. The other men,
bers are War Secretary Stimson,
Navy Secretary Knox, o. P. M. Di-
rectors William S. Knudsen and
Sidney Hillman, and Leon Hender-
sno, @. P. A. director.
Donald M. Nelson, head OF the
o. P. M. Priorities Division, is S.
p. A. BIS executive director.
S. P. A. B. is a general policy
board, which determines the total
supplies needed for both lend-lease
and domestic purposes, amounts on
hand and to be produced, how much
should go to help Axis foes and
how much should be kept at home.
1T also decides priorities for defense
and civilian needs.
It's policies are carried into effect
BY o. P. M. and the 1atter's own
suboperating units.
A recent example Of S. P. A. B. s
Job was its decision against con-
struction at this time of a cross
country oil pipeline. 1t ruled the
steel was needed for more important
purposes.
o. ID. B. Outside the Setup.
The Economics Defense Board,
ike l.. L. A, is outside the O. E. M.
coordinate arrangement and deals
directly with the President. Besides
Mr.. Wallace, its members are cabi-
nets officers-War. Navy, State,
Treasury, Justice, Agriculture and
Commerce. It's executive director is
Milo Perkins, former Texas jute
bag manufacturer.
This board plans measures de-
economic relations with friendly
powers and steps to block economic
aid to Axis powers. 1t determines
overall estimates of materials and
commodities required for export, ex-
elusive of lend-lease operations, and
ties in closely with S. P. A. B.
1t recently took over the Office
of Export Control. which regulates
expectation of arms and military
supplies. With S. p A. B., it is now
canvassing means of increasing the
supply of strategic materials need
ed by the United States.
o. P. M. is the key operating unit
IN the whole defense program. It's
members are both policy makers and
policy executors. 1t is headed by
Mr.. Knudsen and Mr.. Hillman. with
Mr. Stimson and Col. Knox as mem
bers. All are on policy boards.
More Than 25 Press Arents