Detroit evening times. (Detroit, Mich) 1921-1958, 1942-07-11
Small Business
Sees S(dnt Hope
In New Agency
Nelson Says Production,
Not Relief. Is Aim OF
Smaller War Plants Corp.
By PHILLIPS J. PECK

IntI News Service staff Correspondent
WASHINGTON, July IL
Small business men. hard hit by
the war effort, found scant COM
fort today in the announcement
that the $50, OOO. 900 Smaller War
Plants Corporation had been or
gained and was virtually ready to
begin operations.
In announcing the five-man
board of directors for the corpo-
ration, WPB Chairman Donald M.
Nelson warned that it was not a
relief agency" and would not be
a 'panacea" to solve all the prob
lens of small business men.
I'VE are fighting a war and
the WPB In . war agency" Mel
son said. what We have I'm the
Smaller War Plants Corporation
Ii . mechanism to help IN In
crease the total quantity of es-
sential goods needed In this war.
CAN'T OFFER RELIEF
'Tf II should unfortunately do
velop that outright relief meas
ures for small business are nee
essary, IL must be realized thar
n mechanism other than the
Smaller War Plants Corporation
must be found for extending
such relief"
Nelson's statement recalled tes-
timony given before a congress
sional committee by Philip Reed.
former chief of the WPO's bureau
of industry branches and $120, 600
a-year board chairman of General
Electric.
Reed testified that approx
mately $4,000 small manufacture
ers. who did an annual business of
81, OOO. 900, 900 in 1889, would be
forced to close their doors by
October l because of curtailment
orders and the increasing scarcity
of materials.
URGES SUBSIDIES
Another congressional witness,
George F. Hines, war production
co-ordinator in Providence, r. J.,
recommended to the House small
business committee that little
manufacturers" be maintained by
government subsidy for future
usefulness to war production"
Nelson named Lou f. Holland
of Kansas City, Mo-, as deputy
chairman on smaller war plants,
War Production Board, and also
as a member of the board of
of the Smaller War
Plants Corporation. 1t was indi-
Gated that Holland probably would
be chosen chairman Of the corpo-
ration by the other members. The
latter are:
James T. Howington of Louis
vile. Ky. district manager of the
WPB field office in Louisville;
S. Shipley OF York, Pa,
chairman of the board of the York
Ice Machinery Corporation; Albert
M. Carter of Murphysboro, ILL.,,
director and past-president of the
First National Bank of Murphys-
boro. and Samuel A. Smith OF
Boston. president of the Thomas
Strahan Company. Chelsea, Mass.
HEADS INDUSTRY POOL
Holland. head OF the Double
Rotary Sprinkler Corporation and
of the Holland Corporation, has
served as president of the Kansas
City Chamber of Commerce and
as president of the Associated
Advertising Clubs of the World.
More recently, the new WPB
chairman has been presi-
dent OF Mid-Central Associated
Defense Industries. Inc, an organ
ization of 81 concerns formed IN
July. 1871. to spread war work.
II was one of the first pools"
Nelson said the corporation
would bring additional smaller
manufacturing plants into war and
essential production by splitting
prime contracts among small
firms; dealing effectively with
pools: providing pools" with
engineering and financial assist
ance; helping manufacturers re-
old machinery and in
certain cases obtain new equip
ment.