Evening star., 1942-03-04
Production
Continued From First Page)

NSOllldlOCO OLll T IL 81 d6CP
business has "been talked down"
ever since w. P. B. was set up as sue
cessor to o. P. NJ The Senator said
todays developments were the first
interest ne has seen shown in the
small business problem.
Mr.. Nelson replied he had no
desire TO deny Senator Taft his
opinion, but added: Il happen TO
be director of the board and l know
what has been done
S1OO, 1000, 900 Fund Suggested.
Mr.. Nelson told Senator Maloney,
Democrat, of Connecticut he has not
abolished the contract distribution
division of the o. P. NJ, but has
placed it in the procurement branch.
1t may not have been as aggressive
as it could be, but it still exists. he
said. He agreed with Senator Ma
loney that the existing contract dis
tribution staff could, at his direc-
tion, undertake today anything
further that needs to be done to
vi llls OlllhIl NOAlSNA AAo AAASo SAAS NA-N>--~'
facture of defense products.
While the pending bill fixes no
arnpant of loans to aid small buSl-
ness, Senator Murray proposed the
R. F. c. set up corporation with
a slOO,0O0,000 revolving fund and
authority to borrow another $780,
100000 The proposed corporation,
Senator Murray said, could create
agencies in industrial areas to CO.
operate between w. P. B. and small
business.
Independent tire dealers proposed
at the hearings yesterday that tires
made of reclaimed rubber be used TO
keep passenger automobiles running
and the dealers in business.
Members of the National Assocla-
ton of Independent Tire Dealers,
representing $4,000 dealers, sug-
gested that recapped tires which
would use only two ounces of pure
rubber as a binder for the reclaimed
rubber might be a partial answer TO
the plightsof consumers and dealers.
perfectly capable small firms
had been blocked from getting into
war production, Mr.. Nelson eX-
planned in his order Suspendlng
Army-Navy competitive contract bid
ding because under competitive
bidding large concerns which al
ready hold extensive war contracts
are often able to underbid small
manufacturers who are not doing
any war work at all"
Mr.. Nelson said that hence
forth simple, standardized articles
must be ordered by the armed
services and the Maritime Commits
sion from smaller concerns, leaving
the large plants free to concentrate
on accelerated production Of such
items as tanks. planes and big guns.
Advocated Subcontracting.
Under the original Army Navy
policy of dealing with larger firms,
efforts to bring new plants into the
picture had concentrated on en-
couraging contractors for the COM
pleted weapons to Subcontract bits
and pieces" to smaller plants and
factories.
The Nelson decree, instead, will
let smaller plants contract for the
weapons themselves. specifically the
more easily handled items.
This would undoubtedly cost more,
Mr.. Nelson said More favorable
prices are often obtained at
sacrifice of speed; by shifting the
emphasis, quicker deliveries can be
had at comparatively minor increase
in cost"
Meanwhile, a new type of Army
building contract which is expected
to save millions of dollars in con-
struction costs was announced by a
civilian official of the War Depart
ment.
NJ j. Madigan, special adviser on
construction to the Undersecretary
of War, said the new contract form,
known as an architect-engineer-
manager contract, already had elm
mated many Of the practices which
resulted in widespread criticism Of
the Armys construction costs last
year.
Three Types Of Payment
Unlike the cost-plus- -fixed-fee
contract, under which most OF the