Detroit evening times. (Detroit, Mich) 1921-1958, 1941-02-05
Defense
Chiefs Must
Cut All Ties
Cast OF Private Interest;
10 Avoid Scandal
(The opinions erpressed by
General Johnson are not neees-
sariIy those of The Detroit
Times.)
BY HUGH 5. JOHNSON


L and dangerous subject. 1t
is not intended as a criticism of
anybody II wouldn't be written
al all If there were no necessity
TO prevent the explosion of an
existing mine of dynamite that
might have very harmful effects
on our defensive efforts.
II is written on the basis of
an intense experience.
In 1917 this country was
utterly inexperienced and unpre-
pared in the mobilization of
industry. 1t called in leading in
duStrialiSts 10 the council of
national defense Contracts in
unheard-of volume were about
10 be dumped in the lap of
American industry.
The supply departments of
neither the army nor the navy
were sufficiently experienced or
Informed to do this kind of job
with the required efficiency and
speed.
COME of these industrialiSts
~ were called upon for assist
ance. They gave ii gladly and
generously. but some of them,
in complete innocence of pur-
pose. overlooked an utter neces-
Sity. They advised in the
placing of contracts with COM
panies in which they had an
interest or TO which they had a
financial responsibility. Or they
dealt with whole industries in
some companies of which they
had such an interest OF reSpon-
Sibility.
| never heard of any resulting
faVofltiSm. population or privi-
lege. | never even heard any
charge of any such a thing.
/ am sure that these men
leaned over backwards to be
fair, and that their own inter-
estS frequently suffered rather
than gained from their peculiar
position.
RUT one fact and fault. recog-
~ nized from time out of mind
equity, remained. They were, TO
greater or less degree. dealing
with themselves.
The inevitable happened-an
explosion of popular resentment
racked the Wilson war admins
tration TO its foundations.
As the record OF the Senate
Nye committee investigating the
war later proved in detail, when
B. NJ. Baiuch. a man of great
fortune, was called upon to
direct our industrial war effort,
he sold every stock and share
OF interest in any industry that
could be sold. He invested the
proceeds in government bonds.
THERE were a few that could
not be Sold--such as an in
icrest in platinum or tungsten
mine in China. The income from
these he gave TO the Red Cross.
tie never met. IN official dis
cuSSlon. a representative of
either an industry or a company
in which he had the remotest
interest.
His sole financial as well as
spiritual interest was IN the
United States.
II entailed sacrifice of mill
lions. but 1t proved TO be one
OF the wiSest things this man
OF great wisdom ever did. He
required OF each of his indus
trial assistants similar purg-
ing OF private interest in com
panieS or industries with which
they dealt.
WHILE one or two Industrial
W lists OF the present defense
commission have followed tn,
example, many have not done -.
Some OF the new dollar-a-year
crop even continue TO receive
their company salaries.
This Is true not only of indus
trial leaders. but also OF labor
leaders in this new war indus
tries board. Some not only con-
tlnue their union salaries. but
actually remain al the heads of
their unions. This division of in
terestS Is an indcfenStiblc in
them as IN the induStriahstS.
OF all these men who are
known TO me. | am convinced.
as | knew of the men of 1917.
that these circumstance would
never influence their judgment.
except possible TO the disadvan-
tage of their own private inter-
eStS.
WHAT Is not enough. They are
Il still dealing with them
selves 1t is repeating another
bldnder of 1917
1t Is az certain as anything
human can be that sooner or
later this situation. if II is not
promptly cured. will result in a
great explosion of popular opin-
ION which may expand 10 the
dimensions OF national scan
dial. 1t will certainly undermine
public confidence. A condition
so dangerous simply cannot be
permitted 10 continue.
Senator Mcclellan has pro-
posed bill 10 cover this case.
In lis present form IT i faulty.
But II this owl i not prOhib-