The Wilmington morning star., 1941-01-08
F R. ESTABLISHES
NEW WAR MATERIALS
PRODUCTION AGENCY
'(COntinued From Page One)

\ooAUAl1uCu IIOlII dSC OllCJ
was to be done. He emphasized
that neither had been given more
authority than the other, and re-
ferred to them again and again Is
a partnership.
Previously a reporter had asked:
Suppose the question of a con-
tract for the Ford Motor company
came up and Knudsen believed it
should get it for the sake of speed
and Hillman believd it should not
for labor reasons. Who would domi-
nate?"
Mr.. Roosevelt replied by raising
a supposition that such a case
would not arise.
Statement Issued
The four members of the new
agency issued a joint statement
which Mr.. Roosevelt said was of
great Importance. In it they stress
ed the urgency of the defense prob
lem, assured labor that it would
not be called upon for sacrifices
not demanded of capital as well,
and requested the cooperation OF
all.
ITO achieve the results which
the country expects from the Of
flee of production management"
the statement said, 1--WE expect and
must have the kind of cooperation
from everybody that counts no
sacrifice too great to make if it
will contribute to a more success
full and more efficient Defense
At the capital, meanwhile, both
houses were in recess awaiting the
receipt tomorrow of the Presi-
dents budget message - asking
huge new appropriations for de-
fense-and the formulation of leg
islation covering the chief execu-
tive's plan for lending war ma
terials to England.
Leaders of both houses we're sum-
moned to a conference to be held
tomorrow at the White House or
Treasury to inspect, it was under
stood drafts of the legislation. In
formed legislators said the writing
of the bill or bills had been given
over to Edward H. Foley, Jr., the
Treasury's general counsel, in COLA
boration with the State department
officials and representatives OF the
legislative drafting service.
Other Development
The day brought two other devel-
opments related to the defense pro-
gram:
Knudsen urged machine tool man
ufacturers in a luncheon speech to
expand the practice of subletting
their contracts so that the delivery
of machinery necessary to the pro-
duction Of planes and other essen
tails could be expedited.
Leon Henderson, a member OF
the old defense commission, named
to keep track of price trends so
that artificial price levels might be
avoided, said that unless steel scrap
prices are reduced by several dollars
a ton drastic steps for government
control would be recommended.
Henderson will have a similar func-
ton in the new set-up.
The executive order creating the
new agency clothes it, in the first
instance, with authority to 'formu-
late and execute in the public inter-
est all measures needful and appro-
pirate in order to increase, accele.
rate, and regulate the production
and supply of materials, articles and
equipment and the provision of
emergency plant facilities and serv-
ices required for the national de-
Tense"
1t can commander the plants of
what Mr.. Roosevelt today called
rambunctious manufacturers, that
is, any manufacturers who attempt
to hold the government up for un-
duly high prices CT otherwise prove
recalcitrant. Authority for such &C.
ton is contained in the CONSUMPTION
law, and its administration was dele
gated to the new agency.
Can Decide Order
Moreover, the agency can decide
the order in which articles shall be
manufactured in various plants to
make production schedules conform
with the needs of the Army and
Navy. Before issuing priority orders,
however, Knudsen and Hillman must
consult a priorities board, created
within the new agency, consisting
of themselves, Edward r. Stettinius,
Jr., Donald Nelson, Henderson and
n official still to be named.
Otherwise, they are vested with
vast duties for c~oordinating the
work of various government
branches, making plans for mobiliz-
ing industry, determining the ade.