Evening star., 1941-04-17
Navy Construction
Ahead Of Schedule,
Knox Testifies
Contracts Went to Firms
Best Able to Do Job,
Senate Probers Told
lS the Associated Press.

the Navy would have two-ocean
fleet ready "at the earliest possible
moment"
Testifying in an inquiry into the
letting of contracts, Secretary Knox
said the Navy had moved ahead at
maximum speed under deadline
that sis always just tomorrow.
Under such pressure, he de-
clared, I'VE cannot sit around and
theorize on how to reform when we
need something of absolute neces-
sity for military result. We just
have to have it, we are responsible
for getting it and it would be a
criminal act If we didn't get it."
Noting that the Navy had con-
tracted in the current fiscal year
for the construction of 629 ships,
Mr.. Knox said many of the craft
we're being delivered months ahead
of schedule. He said the total value
of vessel contracts and orders placed
since last July l was $4,476, ,412,021.
At the same time, he said, the
Navy had let contracts for 6,038
planes in the current year.
Mr.. Knox said there had been
charges that "a great portion" of
the Navy's contracts had gone to
"old line, established business COM
panies.''
ITO a large extent this is true,
and for good reason" he said. "If
you want something in hurry, you
60 to the man you know can make
it quickly and right. Only when he
is booked to capacity do you go to
the next best
80 with the Navy. 1t was called
upon to expand, expand quickly.
Very naturally it went to its known
suppliers and took advantage of
their established facilities, skill and
experience"
Strike Bill Broadened.
In another defense development
the House Naval Affairs Committee
decided tentatively to broaden a bill
calling for a 30-day cooling off pc
riod before strikes could occur on
naval defense jobs to make it apply
to all defense labor disputes.
The amendment, sponsored by
Chairman Vinson, was adopted
without formal objection as the
committee prepared to send the leg
islation to the House for debate.
Although Secretary Knox gave no
delivery figures and said he could
not reveal the type of materials be-
ing furnished, he noted that the
Navy had been allocated 1901 900 900
to produce supplies for foreign ma
tions under the $1,000 ,000, 900 lease
lend bill.
Up to April IA. he told the Sen
ate group, the President had made
ALLEGATIONS of s128,963, 900 of this
amount and the Navy had requested
an additional apportionment of
$272, $4,000.
Furthermore. he said. almost
daily the Navy was issuing material
to the British from its stock on
hand.
The s128,963, 900, he said. covered
largely n1ateriel which the Navy al
ready had on hand.
Equipment Ordered Shipped"
In response to a question as to
whether this equipment had already
gone to England, Mr.. Knox said it
had been ordered shipped" but that
its actual shipment depended on
available ships and other factors,
which he did not specify.
Mr.. Knox said that April IL the
Navy had under construction 2,226,-
$50 tons of fighting ships and 282 ,507
tons of auxiliaries, that practically
all work was on q three-shift basis
now, with the first shift working 48
hours a week and the second and
third rapidly being stepped up to the
same basis.
He spoke glowingly of progress on
shore facilities, including new bases
acquired from the British in the At
lantic, Western Pacific islands and
Alaska.
Bases Average $50 Completed.
This work averages IS per cent
completed, Mr.. Knox said, adding:
sites which were without any i'm
provements 10 months ago are to-
day operating air stations. The
training capacity of our air sta
tions has been increased to thou
sands of pilots each year.
Additional stations will be in
operation before midsummer. The
expansion program has pushed for
ward the line of defense In the Pa
cific by additional operating air
bases which will be placed in COM
mission between late summer and
December"
He voiced an opinion that ne
gotiated contracts, as compared with
competitive bidding, had saved time
and had permitted the most ef-
fcient use of the available economic
resource
Further, he said, any undue
profits" would be taken care of
by profit limitations and the excess
profits tax"
Labor Costs Criticized.
AS committee members sought
specific information from the Navy
Department chief on ship-building
and armaments orders there were
these other developments on the
national defense front:
/. Representative Engel, Repub-
hcan, of Michigan declared an Army
camp at Indiantown Gap, Pa,
would cost the Government S4,276,-
900 more than necessary because,
he said, a disproportionate amount
was paid for labor.
2. Administration spokesmen pre-
dicted the State Department would
oppose a resolution by Senator
Tobey, Republican, of New Hamp-
shire forbidding conveying of ship
ments abroad.
Criticizing methods used in build
ing the Indiantown Gap Army
camp, Representative Engel de-
clared in a speech prepared for
delivery to the House that the ratio
of labor to material and other ex-
penses should have been 40 and so