Evening star., 1942-12-07
SomerveII.D Denies
Army Has Ignored
Small Business
Criticized by Senate
Committee Chairman,
He Defends Policies
BY CARTER BROOKE JONES


1t. Gen. Brehon B. Somervell,
commanding the Services of
Supply, today denied before the
Senate Small Business Commit
tee Chairman Murray's assertion
that the War Department had
ignored small privately owned
plants. He also denied that the
Army had insisted on, and over
expanded its own plant con-
struction program, even though
some of its plants had been
forced to close for lack Of ma
terialS.
Gen. somervel1, taken sharply to
task by the Montana Senator for
these alleged policies, insisted that
the Army had done a great deal
for small business. He said the
ordnance division had built plants
for such purposes as she'll loading
because there were no civilian IA
cilities which could be converted
to the purpose.
Small firms all over the country
are closing down because they are
not getting war business" said Sen
ator Murray.
Contract Increase Cited.
Gen. Somervell retorted that the
small war plants of the country
had increased their dollar volume
share of the War Department price
contracts IA per cent in November
as compared with September. Con-
tracts which went to plants en-
ploying less than 500 each during
November amounted to $3.50 ,228, 900.
"Of this total" he added, ZAP
proximately $209, ,408, 900 was ap-
proved for plants employing less
than 100 persons.
These did not include subcon-
tracts, Gen. Somervell pointed out,
and, in many cases, so per cent or
more of the prime contracts were
passed on to subcontractors.
The chairman asked whether q
certain munitions plant in the south
west had not been closed for lack
Of materials Gen. Somerven said he
would not be surprised If that were
true.
Hasn't 1t come to be generally
recognized" asked Senator Murray
that we have built too many war
plants?"
NO" said the general. mot so far
as the Army is concerned. I don't
know about other plants
Gen. Somervell said a facilities
board at the War Department had
to plan all new construction and the
projects then went to him for ap-
proval. and they also had to be ap-
proved by the War Production
Board.
Questioned concerning earmark-
Ing OF some contracts for certain
firms, especially in the New York
area, Gen. Somervell said: II want
that earmarking fully explained be-
fore this committee. There has
been an implication that there was
something sinister about earmark.
ing"
Gen. Somervell said that of the
November prime contracts which
the War Department let, TIC per
cent in number and 23.8 per cent
IN dollar volume went to plants en-
ploying less than 500 persons each.
Since October Is, the general
added, the War Department has
completed organization of the small
war plants operation at headquarters
OF the Services of Supply. Each arm
OF the service, he explained, now
has a full-time liaison ofiicer charged
with developing full cooperation
with the Smaller War Plants Diyi-
sion Of WPB. Each service has a
similar representative to work with
WPB officers in the field, he added.
Procedure Explained.
Gen. Somervell said he had put
into effect q procedure for the Serv-
ices OF Supply which called for q
small-plant production load, re-
examination Of existing contracts
with view Of further subcontract-
ing. and examination of proposed
new contracts to determine how far
they could be spread among smaller
concerns.
we win continue" Gen. Somer-
veil said, "our efforts to spread our
purchases to small plants consistent
(see SMALL BUSINESS, Page A-l4.)