The Ypsilanti daily press. (Ypsilanti, Mich.) 1928-1962, 1942-03-16

prices from all available sources
and the lowest bidder got the con-
tract, provided he gave satisfactory
assurance that his merchandise
would come up 10 specifications
Today price isn't the main consid-
Grafton in connection with an order
the government is in a wartime
hurry to have filed in jig time. The
present question is, Who'll make
the quickest job of it,"
Production Manager Donald NJ
Nelson changed the rule. on the
reasonable ground that speeds the
main item in an emergency like the
existing one, even if It costs a lit
tie more.
The new system works out, too.
rather Unexpectedly to the advan-
tage Of small industries, concerning
whose fate there's been so much
worrying.
Price competition had the merit,
in the pre-war era, Of guarding
against any favoritism in the
awarding Of contracts. A political
pet OF some Washington official or
department or bureau couldn't
make juicy bargains in his or its
particular interest, because unpet-
ted rivals could underbid the favor
lite, and get away with it.
Plenty OF Orders
Now, though, there not only are
enough orders to 60 around;
there's congestion Of them.
That's why speed is so essential in
the matter Of getting them exc
cuted.
But the benefits OF the Donald
Nelson system to small business?
Well, huge industry is apt to be
able to produce more economically,
to itself, than pewee. Consequent
ly it can make better terms to its
customers. A pewee. by reason Of
its geography or some such thing,
may be able to hold its own against
the monsters, in its immediate
neighborhood, but the latter can
easily outsell it to such vast buyers
as the government
On top Of that, governmental
contract makers prefer deals with
mass producers. It's more conven-
lent for them to make wholesale
arrangements with a single vast
concern than to negotiate. sepa-
rately, with a lot of teeny-weeny
ones.
The result was, for awhile, that
the whales were coping of all the
governments orders and the min
nows were threatened with being
starved to death.
There's a limit, though. 10 even
mass industry's productive capa-
city. The corking big outfits pres
emily become so loaded up with
Uncle Sans contracts tina; they
began to delay deliveries, unavoid-
ably.
And there. simultaneously. were
the little ones. sitting on the side
lines. in danger Of going into bank
ruptcy. for lack Of something to
keep them busy.
Hence Don Nelson's inspiration
TO get them at 1t.
Essentially he wanted their out
put, but undoubtedly he also had in
mind the long-run desirahility OF
preventing them from bursting,
with all Of the ultimately disas-
trous economic consequences.
Inconvenience Overlooked
So he gave his order 10 War Pro-
duction's personnel - TO never
mind some slight inconvenience in
dickering with so many different,
small units but TO go ahead and
give them contracts" getting them
into action in Uncle Sans behalf
and saving their own lives, Incl
dentally
Individually they are little, yeah,
but collectively they can more or
less tie BIG industry.
The trouble is that little indus
try generally hasn't the financial
resources 70 readiust its equip
ment from peacetime to wartime
production. 1t simply CANNOT do
it without charging more than the
big fellows.
20. X agrees Donald. Pay
them a bit extra, for getting a wig.
gle"
Whether or not wen ever get
back to a system Of figuring on
price, rather than on speed, re-
mains to be seen.
Some economists surrnise that
the postwar public will switch TO