Evening star., 1941-08-03
Defense Production
Is Declared Falling
Behind Schedule
More Subeontrocting
And Speedup Of Work
Urged by Officials
By CLARKE BEACH.

Urged by Officials
BY CLARKE BEACH.
The rate of production of de-
fense materials has increased rela-
lively little since last January,
despite warnings from leading de-
fense officials in the past few months
that production must be vastly in
creased If the Nation is to secure
vitality needed weapons in sufficient
quantity and in time.
Instead OF being stepped up, the
program Is falling considerably be-
hind schedule, and many officials
are gravely concerned.
The chief reasons for the lag,
in the opinion of number Of
officials, is that not enough of the
small producers have been given
defense orders and that too much
time for the completion of their
orders has been allowed the large
producers who hold defense con-
tracts.
To bring in the small producers,
they say, supcontracting of defense
orders must be done on a big scale.
At present Sc firms are providing
about three -fourths of Army and
Navy supplies. Undersecretary of
War Robert P. Patterson estimates
that not more than IS per cent OF
the Nations productive power is
davoted IN GefpnSa uork
Another Dangerous Condition.
Subcontracting also is considered
the remedy for another dangerous
condition which is rapidly develop
ing: Wholesale shutting down of
small industries which have no share
in the defense business.
Edward r. Stettinius, jr., director
Of priorities for the once of Pro-
duction Management, says hundreds
of these plants already have shut
down and that possibly tens of
thousands Of them will have to close
later.
The reason is that they are
engaged in manufacturing goods
for the use of civilians, and the
O. P. M. cannot permit them to have
the raw materials which are neces-
sary to carry on business when
defense industries need those ma
terials and there is not enough to
go around.
AS the small plants close, multi
tudes of workers are thrown out of
jobs. If they rely on relief, they
must draw on w. P. A. funds, which
have been drastically cut. II they
migrate to areas where defense in
dustries are located, they crowd into
congested sections, which already
are facing serious shortages of hous-
ing, schools, sewerage systems and
many other essential community fa-
cilities.
Small Plants Get Smaller.
Big industries. meanwhile, are
growing bigger and becoming more
centralized, while small plants are
getting smaller and weaker and
gradually giving up the struggle.
What progress the defense pro-
gram is making can be judged only
Nv lllC lCtOl Va 4lCdSulN OlSOui
ments. The Army and Navy do not
divulge comprehensive information
on the amount of defense material
which has been completed, since
those facts are major military
secrets. But experts consider that
the amount of money paid out for
defense items gives a fair concep-
ton of the progress being made.
AS soon as an order or a portion OF
an order is finished, the manufac-
turer is paid for it.
The original defense program,
which has been nearly doubled
lately, called for the expenditure
Of $1,000, 100000 in 194l. In the
first four months of the year, $780,
10000 was spent on United States
and British orders. To follow
schedule. 900 900 would have
had to be spent in the next four
months. and s2.000,O00, 900 a month
in the last four.
But in May only s1.001 400 900
was spent, and in June the expen-
ditures increased only to sl.085,-
100000. The expenditures in Janu-
ary were s9l6,500.00O
Even if the schedule were kept.
Stacy May. chief of o. P. MS
Bureau of Research and Statistics,
says only 20 per cent of the ma
tional income would be devoted to
the defense effort To match the
rate of German production, he said.
this would have to be increased to
40 per cent.
Responsibility Shared.
The blame for the present lag
cannot be placed on any one agency
or person, because o. P. M. and the
military services share the re-
sponsibility for furnishing the coun-
try with its arms. The Army and
Navy decide what is needed and
negotiate and award the contracts.