The Waterbury Democrat., 1942-06-19

mates that of this number, only i about 45,O00 can be converted ro
 war production Pessimistically
 therefore, the conference predicts 1 that eventually l39,000 plants face
 the possibility of complete war
 time shutdown.
 The Bureau of Industry Branches in the War Production Board says this estimate Is far too gloomy. The WIPE guess Is that of these 184,000
 manufacturers, all but perhaps 24,- , GOO can keep going during this war production era. The prospect of 24,- GOO small businesses being shut down--and by October 1, 1942-is nothing to cheer over, but N's brighter than the outlook of 139,000 plants being forced to the wall.
 Whatever the number eventually put out of business, the reasons for their shutdown are clear. The War Production Board, to conserve cri- teal materials and to release mach inery for the making of war sup plies, has had to prohibit completely the manufacture of thousands of items made for civilians in times of peace.
 DEADLY
 AS BOMBS
 These stop orders are one of the most serious aspects of the war. Like bombing raids, they are unavoidable but they are just as deadly as though bombs actually were drop ped on some 24,0O0 or more small factories scattered over the coun- try. Statistics on these businesses - what firms they are and how many employees they have-are unavail- able. If you count only the smallest 24,000 rnanufactories, they represent a $4 billion a year productive cap- acity.
 The Murray -Patman bill will save a number of these frs, but 1t must be borne in mind that the Smaller War Plants Corporation will be restricted by law to help ing war production. The purpose of the bill is not to save small business as such, but to help finance plants that can be con- verted to manufacturing war sup plies or the minimum require- ments of civilian economy. There is still no help in sight for the litle fellows who can't convert and can't be given materials for on-essential production.
 One of the clearest statements of the problem facing these manu- lecturers and an analysis of what might be done to save them was made recently by Philip D. Reed, now dollar-a-year chief of WIPES Bureau of Industry Branches, but in civilian life chairman of the board of General Electric. Reed gave his views in commence inent address at Polytechnic Insti- ute of Brooklyn, and though 1t was generally overlooked, 1t was a realistic presentation from the head of one of the country's big gest businesses as to what kind of postwar world the graduates and their children would be facing if these 24,000 or more little busi- nesses were permitted to go bust. COUNTING
 THE COST
 One suggested remedy, said Reed, would be the creation of govern ment agency authorized to do three things. Briefly:
 1. To defray maintenance costs during enforced shutdown.
 2. To make loans to partially closed plants unable to operate at a profitable level because of ma terial shortages during the war, and unable to obtain other finan- cial assistance.
 3. To make loans up to the fair value of the frozen inventories of semi-fabricated parts that cannot be assembled into finished prod ucts without additional allocations of critical raw materials now need- ed elsewhere for war production.
 Estimating that if such loans and maintenance charges ran up to 5 per cent of the $4 billion business which these 24,000 did in an average year, Reed got the minimum figure of $2oO million which would be the annual cost of keeping these small business firms alive till the war is over.
 The question is whether it is worth that much to keep these small businesses alive, or whether the country should save that money, let the small businesses go bankrupt, and take a chance that they would spring up again like desert flowers in the spring.