Evening star., 1941-06-18
Property Seizure Bill
Called Ruinous 10
Small Business
Downey Voices Horror
At Prospect of Plants
Losing Their Tools
By the Associated Press.


Senator Downey, Democrat, OF
California protested today that
property seizure" powers asked by
the War Department would create
a military dictatorship under which
tens Of thousands of small busi-
nesses will be ruined"
IF this is absolutely necessary,
then let's face the facts" Senator
Downey, a member of the Senate
Military Affairs Committee, told
Undersecretary of War Patterson.
Mr.. Patterson. appearing at the
Military Committees hearings on
the legislation, urged its early ap-
proval.
The California Senator said both
Army and Navy officials had in
formed him that they intended to
seize machines and tools of many
small Southern California industries
as soon as the property seizure
measure was law.
Senator Voices Horror
Il look with horror on this" Sen
ator Downey said. within "a hours
after this is passed many small in
dustries in my State will be de-
stroyed."
Mr.. Patterson explained that the
War Department was not opposed to
changing language of the broad
termed bill, but needed power to &C
quire materials and machines nee
essary for national defense.
Senator Downey said both the
War and Navy Departments favored
concentration Of defense produc-
ton in large corporations and plants
and that these concerns now were
| planning to take over machines and
tools of smaller industries in his
State
Mr.. Patterson said that the War
Department had information that
many machines and tools were being
held for higher prices mot only by
secondhand dealers but by those
who want higher profits or hope to
get contracts"
Sees "Wrecking" Of Firms.
"It may be necessary to have that
kind of military dictatorship, but I
don't believe the committee should
underestimate the power included
in this BILL" Senator Downey de-
clared
Mr.. Patterson said the War De-
partment wanted to use machine
tools in the plants where they now
were placed, but desired the au-
thority to requisition the tools II
they could not be so used.
Senator Downey asserted he was
informed by Navy officials that
they desired to concentrate ship
building contracts with large firms,
preferring to have machine tools
assembled in a central location.
The California Senator contended
that while the Government might
pay for machine tools it requisi-
toned, its seizure of such tools
might wreck" going business with
no adequate compensation paid to
the owners.
Appropriate" Says Baruch.
Mr.. Patterson countered that the
War Department was willing to ac-
cept restricted language so long as
it did not cripple" the authorities
In their attempts to equip the Army.
The undersecretary said he had
discussed the bill with Bernard M.
Baruch, chairman of the World War
Industries Board, and Mr.. Baruch
expressed the opinion that it was
appropriate" legislation.
The United States, Mr.. Patterson
asserted, is " imperiled by the ag-
gressive designs of the Axis powers"
and mo time should be lost, no
effort spared, to equip our armed
forces"
The need today for procuring
arms for the troops in the field is
a. urgent as II We were at war;"
he continued. We are drafting