The Waterbury Democrat., 1941-01-31

 huge factories to orders placed efenSe Commission. A Ford indicated that the decision was irrevocable. The alternative to a change of attitude by the company, would be one by the de- fense commission and other govern ment agencies, Sidney Hillman, as- sociate director of the new office oi production management, and labor defense chief, was seen to have won a hard fought victory in the decis- ion to include the labor clause in defense contracts and in Washing ton it was believed it might be there to stay.
 Two Orders Already
 The company already has two de- fense orders one for midget" army trucks, another for airplane motors = which did not include the labor clause. The company also is planning to produce sub-as- emblies for four -motored bombers, but presumably, it would be working as sub-contractor and would not have to accept the labor clause.
 The newest brush between the company ana government agencies recalled that in New Haven, Conn, Tuesday night, Mrs. Franklin D. Roosevelt told a forum office that the President could take over" the Ford factories at any time he thought it necessary in the inter- est of defense. She was respond ing to a question from her audience
 The company's position was re- vealed after the War Department rejected its low bid for 11,781 army trucks.
 I. A. Capizzi, attorney for the company, said:
 we obviously are going to obey all laws but arbitrary inclusion o1 that clause could give the govern ment the power to cancel the con- tract and bring suit. In view of the apparent feeling of labor against the company we can't take that risk. Labor seems to have an ear in Washington"
 Called Sop to Labor
 Capizzi said the Ford bid was $250,000 lower than that of any competitor, but the government evidently thought it more important to give sop to labor than to save $250,0O0 and time in the future." The contract was for one-half ton trucks, command-reconnaiSance cars, radio trucks, ambulances, ''carry-alls" and pickup trucks. h. vitations to bid were extended to 155 manufacturers.
 The War Department announced that the $1O,298,12 contract had been awarded 10 the Fargo Motor Corporation, a subsidiary of Chrys- Ter Motors though Ford had sub mitted the lowest bid, because Ford had refused to subject it's bid to provisions of Procurement Crcu- lar No. 43."
 Circular No. 43, signed by Army Chief of Staff General George c Marshall, provides that contractors for army materials must comply with the labor policy statement adopted by the defense commission last fall and approved by the Presi- dent. This statement calls for con- pliance with all federal and state labor laws.
 Labor Clauses DiSliked
 'The Ford Motor Company" the War Department announced, "eX- cepted to the labor clauses in the invitation to bid, prescribed in Cir cular No. 43, and thus in effect submitted counter offer" President R. J. Thomas of the United Automobile Workers (CIO) announced that he would "try to cause" strike at Ford plants, de- claring that the rejection of the Ford bid was "a just return" for the company's "anti-labor policies and its refusal to abide by the laws of the United States.
 Cappizzi said the company's low bid was made possible because figuring was done on practically a cost basis" The company included no charge for retooling, he said.
 "To me, more important than the possible saving of $250, 1000, from the standpoint of national defense - is the question that the government could have saved time, if later ii needed cooperation of all plants for truck production, by having Ford Motor retooled," he continued" The government evidently though it more important to give sop to labor than to save $250,00O and time in the future"
 Ford is constructing $21 ,000, ,00C plant to fill an order valued at $122 323 ,000 for 4,000 Pratt and Whit ney aircraft engines, and is prepar- ing to turn out 1000 midget trucks under $2,012,70 contract.
 Pays Workers Less
 Thomas, on the other hand thought the additional $250,000 well spent, alleging Ford could make il because he paid his workers lat least 10 cents an hour less than General Motors and Chrysler.
 Michael F. Widman, Jr., head oi the current UAW-CIO unionizatior drive, said Ford's present defense contracts should be cancelled.
 Capizzi said the company willing ly accepted orders requiring com pliance with the Wash -Healey Act which pertains to wages. and thought congress must have thought the Walsh-Healey law was all that is necessary"
 At the recent commissioning oi the $1,500,000 naval training sta ton he voluntarily established on his River Rouge property, Henry Ford said he was prepared to dc everything possible" to aid the National Defense program.