The Waterbury Democrat., 1941-10-18
. NATIONAL
 SPOTLIGHT
BY MILTON BRONNER
NEA-DemOcrat Stan COrrcspOndeI

defense. Furthermore, there's @ row over the drafting of a contract for new plants to be paid for by the government and operated by the Aluminium Company of America,
 For long the incessant plea of the Army and Navy, as well as Britain and Russia, has been for bombers and more bombers. Bombers mean aluminium in huge quantities and the metal is not forthcoming. Blame is laid for the delay somewhere along the line with OPM, the Re- construction Finance Corporation and its subsidiary, the Defense Plant Corporation, and Jesse Jones, boss of REC.
 Early this year the Of1ce of Production Management was sat- isfied that an annual production of S85, 100000 pounds of aluminium would take care of the nations defense needs. Then 1t suddenly raised the ante to 1,445, ,000, 900 pounds. The extra 600,000,0 900 were to be produced in new plants, but 1t is estimated that more than four valuable months have been lost in putting up the plants.
 SENATE GUNS
 READY
 Much of the ammunition that will be used by speakers in Congress will come from the hearings by Senate special committee thta has been in- vestigating the national defense program. On September 15, Hugh A. Fulton, counsel for the commit tee, questioned Arthur H. Bunker, chief of OPM's aluminium section, and found that no new aluminium plants were under construction. Fulton brought out that the re- cent nationwide collection of alu- minum pots and pans had brought in about II 1-2 million pounds, or something less than one weeks calculated production of aluminium under the expansion program which has been delayed four months. Acting Chairman Sem ator Mead of New York said to the committee:
 "The sorry part of the whole picture is that while we are st-ug- gling to produce bombers and pleading with housewives to part with their pots and pans we haven't yet agreed upon sites for aluminium plants"
 While no work on new plants has been started. the Defense Plant Corporation has at least made a contract with Alcoa for plants involving a cost to the gov- ernment of $52,000Oo0. Alcoa chooses the sites, builds the plants and operates them on lease. The profits made on the aluminium produced will go 85 per cent to the Defense Plant Corporation and IS per cent to Alcoa. Tn addition, Aicca gets fractions of @ cent per pound for aluminium production for overhead and other expenses, which 1t is claimed will give the company several million dollars per year. The contract has been bitterly assailed on the grounds 1t obligates the company very lit- tie, gives 1t a wide power in the matter of price of the product and does not give the government ad- equate protection if there is dis- pute about some of its clauses. ICKES
 ENTERS
 Jesse Jones, head of REC, was re- gently a witness before the Senate committee. Fulton introduced let Ire he said Secretary Ickes wrote to Jones. IckeS entered the picture because he has charge of the Bon- neville and Grand Coulee hydroelec- trio plants which are expected to furnish vast quantities of cheap electric current for aluminium man. ufacture. The letter in part:
 T do not believe this contract with Alcoa should be signed. The terms of the proposed lease re. lating to operation do not square with the expressed policy of the President, or with the interests of the United States
 While the contract may pro- tect the Defense Plant Corpora ton, through its share of Alcoa's profits, 1t also helps maintain AL coa's control of aluminium pro- duction and prices. The Defense Plant Corporation thus obtains protection at the expense of the departments of the government consuming the product, and the consuming public generally. In addition, the provisions for direct and indirect compensation of Alcoa raise 8 serious question in my mind"
 Fulton asked Jones whether he had examined the contract to see if 1t did have the serious defects mention by 1ckes, Jones replied tartly:
 T examined 1t many times and do not agree with the secretary in any construction that he placed upon it. It is my responsibility and that of REC and not his re- sponsibility. We have made a contract which we think good contract"
 JONES BLESSES
 CONTRACT
 Upon further questioning, 1t de- veloped that the first draft of the contract was drawn by an Alcoa lawyer. Fulton contended nothing in the contract obligated Alcoa to f1n- ish the plants at any specified time. Jones said the company expected to build them and have them in op- eration in less than year.
 Fulton continued to pick flaws in the contract and Jones just as steadily commended it as a good document. As to delays, he said the production of aluminium the past five months had very substantially exceeded the demand and consump- tion. Substantial reserves were being built and it was hoped the new plants would be working in time to avoid any delay in production.
 But despite this rosy view, 1t is