Detroit evening times. (Detroit, Mich) 1921-1958, 1941-11-29
Independent
Firms Head
For Trouble
Defense We e DIS Seem
TO Help Monopoly
BY HUGH S. JOHNSON

while to preserve small business
enterprise in this country was
freely predicted by this column
before the attempt started. 1t
is nothing for which Mr.. Odlum
should be either blamed or CEN
sured.
He had a perfectly impossible
task and his only lack of wis
dom was in undertaking it at all.
The defense productive effort
is almost entirely in the metal
working and chemical indus
tries. Here the great corpora
tions are so much better fitted
than the small ones that they
can beat the little fellow in
price. speed of production, and
excellence and accuracy OF out
put.
1t is true that there is a cer-
lam amount of sub-contracting
that can be done among smaller
enterprises. There always has
been. The large corporations
are really centers of clusters Of
such small specialists even in
peace time. These sub-contracts
have been multiplied to the adj
vantage of this smaller class of
operators.
But when we 60 beyond this
and attempt to make new
clusters for new production on
such a vast scale as the war
effort. we are up against real
difficulties.
A certain amount OF this was
done and an earnest effort was
made 10 use as much of the idle
skills and machine capacity as
possible. But when you add ii
all together. in comparison with
the bulk of the effort, it is only
a drop in the bucket.
WHEN you go outside the
w Woodworking and chemi-
cal industries TO the great mass
of establishments for manufac-
ture of normal items of consump-
ton for the civilian population.
there is virtually nothing that
can be done if we continue our
present policies of practically
zero priority for that population.
The reason for this Hnfortu-
nate result is an entirely differ
ent one. 1t is that there is no
material left over upon which
these establishments can oper-
ate.
In my opinion, this Is very
short-sighted and disastrous
tional policy. 1t results from
the unplanned expansion of war
production by the expenditure
Of unlimited and almost un-
counted billions with no GER
-tdinty as 10 When or Where, if
ever, the production is 10 be
used.
However, that Is not the point
of this piece. What IL is desired
10 emphasize here is that the
inevitable result of this process
will, in a very short time, wipe
out much of independent bust
ness and leave almost Our entire
economy in the control of our
greatest corporations. 1t is a
reversal of the American policy
against monopoly and in favor
Of free enterprise since our be-
ginning,
If this were merely accidental
or an inevitable consequence Of
the war. there might be little 10
be said about il. Such is not the
case.
-THERE has for years been a
school of So-called thought
among some of our advanced
thinkers that our most eff
cient production and quickest
way 10 production for use and
not for profit" is 10 concentrate
control of industry in the hands
OF a few of our greatest and
most efficient corporate groups
and then 10 have the govern
ment regulate them lin the
common interest" almost 10 the
point of management.
II is not at all unlike Musso-
lini's Cooperative State" AT
its inception, its authors ex-
pected il TO take years to
accomplish thru constantlY~in-
creasing debt and deficit fipan-
cling. The war has advanced
progress toward that goal by
decades.
Pending bills for confiscatory
taxes and for licensing of all
business added 10 the growing
government ownership or liens
on new defense plants, indicate
how far il has gone on the regu-
latory sides lust as the condi-
tionS above discussed into which
small enterprise is rapidly en-
tcring. indicate how far II has
gone on the other side.
We are witnessing profound
revolution in our politics and
economy which is moving at
hurricane speed. and most of us
seem not TO be even aware of il
or. il we are aware, not to give
a damn.
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