Evening star., 1941-09-25
Shortages Don't Exist
In Defense Materials,
Auto Spokesman Says
Fear Is Held to Blame;
Army and Navy Accused
Of Hoordine Goods
By the Associated Press.

By the Associated Press.
DETROIT, Sept 25.-Assertions
that shortages of essential defense
materials do not exist brought auto
mobile industry Spokesmen today in
conflict with Government author
tiles directing the Nations defense
program.
From Charles E. Wilson, preSiden!
OF General Motors Corp, which holds
millions of dollars worth of defense
orders, came the charge that allo-
cation of priorities far ahead OF
actual need had made necessary the
decrease in production of consumer
goods.
you create a shortage" he de-
clared, when you create fear of
shortage"
Testifying before a congressional
committee inqulrlng into defense
migration and defense production,
Mr.. Wilson also said that more de-
fense work was needed by the auto
mobile industry if unemployment is
to be minimized in the change-over
from civilian to defense production.
Army and Navy Accused.
The committee was to conclude its
three-day hearing today with testi-
mony of representatives of the Office
of Price Administration and the
labor division of the Office of Pro-
duction Management.
Mr.. Wilson said one flaw in the
defense setup was the flow of ma
terials that permits some persons to
obtain priorities that will not be in
use for months"
Asked by Chairman Tolan what
he proposed to do about it, Mr.. Will
son replied:
"I suggest a study of the flow of
materials. 1t is human nature for
manufacturers to try not TO be
caught short and you create a short
age when you create a fear of
shortage"
C. c. Carleton, president of the
Automotive Parts and Equipment
Manufacturers Association, accused
the Army and Navy of boarding ma
terialS.
He testified he had stood in the
Offices of o. P. M. and heard Army
and Navy officials demand priorities
on materials that they don't want
TO use until 1912"
Raps people in Washington"
In his testimony Mr. Wilson said
General Motors, with per cent of
the Nations productive capacity, is
utilizing only a small percentage of
1t in defense work because of the
prejudice against big business in
Washington"
IF the Government had to give
General Motors its proportionate
share of defense orders" he said. 'it
would sound so big in dollars the
people in Washington would be
afraid Of it.
That is our feeling. There it is,
gentlemen-and have been want
ing to say it for long time
Responding to questions. the Cen
eral Motors president said automo-
bile production quotas imposed by
the Government were neither neces-
Sary nor anticipated. About 10000
auto workers, he estimated, would be
idle BY mid-December because of the
curtailment.
Spokesman for the Ford Motor
Co. and ChrySler Corp. agreed with
Mr.. Wilson that new defense con-
tracts were needed to absorb unem-
ployment. Officials of Packard and
Hudson companies, however. said
work on hand would provide for
their displaced employees.
Postwar Slump Held Unnecessary
Asked what his company expected
TO do with new plants after the
emergency is over, Mr. Wilson
answered:
I'VE feel that when the time
comes there will be enough accumu-
lated demand for consumer goods
to permit us to make use of the
plant facilities"
He added that imitation and de-
preston could be avoided following
the defense slack if individuals do
not go into debt and if ''the ground
rules OF business are not so changed
we do not know how to proceed"
Mr.. Wilson took issue with earlier
testimony of r. j. Thomas, presi-
dent OF the c. I. o. United Auto
mobile Workers, that the automobile
Industry had refused to accelerate
defense production.
There is good deal of lack of
understanding of how much auto