Evening star., 1941-03-17
Time Is Vital Factor
lin Defense Drive,
Sloan Warns
General Motors Board
Chief Sees Vast
Task for Industry
By the Associated Press.

By the Associated Press.
NEW YORK, March l7.-Alfred P.
Sloan. jr., chairman of General Mo-
tors Corp, said today that American
industry had "the capacity and the
ability" to expand national defense
production indefinitely" but warned
that time Is an essential factor" !"
In his annual report to stockhold-
ers, made jointly with Charles E.
Wilson, president, Sloan said:
"The national defense program
may be said to be the greatest pro-
ductive effort that industry has
ever been called upon to make from
the standpoints of its magnitude,
its technical complications and the
limited time available for accom-
plishment. -"
"The policy of management with
respect to the program for national
defense should be clearly established.
The responsibility of industry in
this time of emergency stands out
crystal clear. Industry becomes the
backbone of national defense.
WAR today is more particularly
a conflict between two opposing
technologies. The nation that is
able to capitalize the most advanced
technology in terms of mass pro-
duction is bound to have tre-
mendous advantage over any ad-
versary. '''
Points to Efficiency.
America Is the home of the ma
chine. Through the process Of in
dustrial research and the intensive
application of an ever-advancing
technology it has become possible to
produce more useful things and in a
greater variety than anywhere else
in the world.
"The efficiency of our enterprise,
the skill of our workmen and the
resourcefulness of industrial man.
agement have Importantly contrib
uted to the strength and productive
capacity of this country.
These now are being capitalized
In the interest of national defense.
Whatever the demands upon Amer
ican industry in this great program
may be, they will be met intelli-
gently and aggressively.
The task Is an important one,
requiring the utmost understanding
and cooperation of which we all are
capable. But time Is an essential
factor"
Sloan pointed out that American
industry needed time in which to
meet mass demands for airplanes,
tanks, guns and ships.
Mass or quantity production is
not a process that can be started
at will. 1t is factory system and
requires the most careful co-ordina-
ton between many important fac
tors, as well as definite procedure
involving rigid limitations. These
processes and limitations must be
recognized if satisfactory results are
to be obtained"
Concerning the corporations ac-
tual defense operations. Sloan said
General Motors proposed to do not
only its part but more than its
part.
1T proposes to contribute to the
utmost the services of its highly
organized units of industry, together
with the experience and ability of
its operating and technical stats.
particularly in the development of
the many additional specialized
production units that are demanded
in program of this character" he
said.
Backlog at $3.50, 400, 900.
The chairman disclosed that Gen.
eral Motors by the end Of January
had contracts for defense purposes
"for the account of the United
States and foreign governments" of
$685., 400 900. These commitments"
he added, ARE in addition to large
obligations assumed by companies
afiliated with the corporation.
He reported net income on such
business in 1910, before Federal
taxes, was is per cent of the cor
poration's total net income for the
year.
THE management subscribes to
the belief that profit resulting from
war or defense should be impor-
family restricted" he said
The 1910 consolidated net income.
as indicated in a preliminary report
five weeks ago, was $195, ,621,721, or
$4.32 a common share, compared
with $183 ,290 ,222, or $404 a share,
in 1899.
The corporation employed an
average of 249,386 persons during
1910. The hourly wage employees
worked an average Of 391 hours a
week and averaged $1,8O4 income
each in the year. Total salaries and
wages were s492 ,246017. compared
with 1886 ,292 ,203 in 1899, when an
average of 20.434 persons were en-
ployed and when hourly workers
averaged 34.9 hours a week and
earned $1,503 in the year.
Sloan said defense industry opera
tions in the corporation would en-
ploy around $4,000 workers when
plants under construction were