Evening star., 1942-09-29
100000 Stores
Face Forced
Closing byJuIy
Lock Of Goods, Labor
Moy Compel Action,
Senators Are Told
Earlier Story on Page A-7D
B, the Associated Press.

B' the Associated Press
Wayne c. Taylor, Undersecre-
tary of Commerce. told the Sem
ate Small Business Committee
today that upward of 100000 re-
tail stores would be forced to
close by July, 1943, for lack OF
goods and labor.
He injorsed a suggestion by SEN
ator Mead, Democrat of New York
that a permanent Federal agency be
established to preserve the small
business structure from "the raw
ages of war economy"
Chairman Murray, Democrat. OF
Montana meanwhile announced
the committee would open an In
vestigation soon into the opera
tions of the Smaller War Plants
Corps, created under a committee
sponsored bill, In the war produce
ton program.
Nelson to Testify.
"We want to determine how much
a share smaller manufacturers are
getting under the war manufacture
ing program" Senator Murray said. :
Mr.. Taylor testified that depart
mental estimates indicated that ap-
proximately 100000 workers In the
retail and wholesale trades would
be drawn into the military and war
plant services from July. 1942. to
December, 1943.
There should be an overall agen-
cy outstanding small business in
which casualties are increasing by
virtue Of Government orders con-
centrating manufacturing in the
larger companies" Senator Mead
told the witness.
II agree with you," Mr.. Taylor
said.
WPB Chairman Donald M. Nelson
Is to testify tomorrow.
Two Named on New Unit.
Meanwhile, organization of the
smaller War Plants division of the
War Production Board got under
way with appointment of two labor
union men as advisers and with des-
ignation of deputy regional directors
to handle sub-contracting problems
| In WHD regional Offices. s,sse@s
| This division, q functioning agen-
cy, supplements the Smaller War
Plants Corp, which is concerned
primarily with financing.
Matthew Vol, vice president Of
the AFI,, and Phillip J. Gloves, for
merly Of the United Steel Workers Of
America (CIO), and recently as
sociate director of WPBs Labor Pro-
duction Division, were named as the
labor advisers.
Lou E. Holland, deputy WPB
chairman In charge Of smaller war
plants, said he felt the labor men
would be of greatest value" in the
effort to use fully the facilities Of
small plants and shops and the skill
of their workers.
Responsible for Areas.
The deputy regional directors will
have full responsibility for activi-
ties Of the division in their areas.
The appointees are William G. Nor
rison at Dallas. Robert w. Gordon
at Denver, Hugo A. Weissbrodt at
Detroit, Roy w. Webb at Kansas
City and A. G. Daggett at Minne-
apolis.
Mr.. Daggett. was president Of the
National Battery Co. of st. Paul.
MINI. Mr.. Gordon recently retired
from his activities in engineering
in Colorado. The other three have
been working for some time in thu
offices to which they are now as.
signed as deputy directors.
Louis j. Paradise, Commerce De.
partment economics analyst, told the
Senate committee that since last
March wholesale inventories have
been liquidated at the rate Of $780,
000, 900 per month" This depletion.
he noted, will soon be reflected in
reduced sales"
I'VE estimate that in the first
half of next year wholesale sales
will be per cent below sales in the
first half OF this year." Mr.. Paradise
said.
Dollar Sales to Decline.
He estimated that dollar sales Of
all retail stores in the first six
months of next year would. be "l2
per cent below sales in the first half
OF this year."
Another witness, Charles G.
Fichtner, chief OF the departments
Division OF Regional Economy, esti-
mated dollar sales OF durable goods
stores would fall IS per cent the
first half Of 1943 below sales for the
first six months of 1912.
The full impact OF the war has
yet to be felt" he said. "The de-
mands for materials, manpower.
transportation and power will con-
tinue to increase. There will be
further limitations on production OF
civilian supply to conserve mate
rails, free labor and facilities for
war work"