The Waterbury Democrat., 1942-03-03
Outranks Problem Of Government
Almost Two To One In Opinion
Of u. S. Business Leaders

: to contribute to the overall picture.
"A large and extremely mixed
source of work falls under the
comprehensive head of government, .
Fortune explains. 1T is second for
all kinds of business and stands par
ticularly high among utility and
railroad executives, of whom a third
mention government as a principal
problem
For the most part these answers
fall into two er2dps. One set of eX-
ecutives feels that the war powers
centered in washington may be
translated in the years to come, into
a totalitarian system that will limit
or do away viii the freedoms we
are fighting tor-including freedom
/ Of management and ownership.
Other complaints, which are more
| numerous but offer better chances
for solution soon, relate rather to
methods and details of adminiStra-
| ton
Shortage of necessary personnel
is regarded as particularly grave
among mercantile and manufact-
uring executives, by about one-fifth
of each. A complaint from many, in
GLIDING machine-tool manufacturers,
is that industries whose prices have
been pegged are losing Skilled labor
to companies operating profitably
on a cost-plus basis, and that under
the regulations they will not be able
to find relief and meet competitive
wage scales until they have actually
proved a loss to the government.
More significant is the reported
dearth of managerial personnel
supervise and foremen.
For some executives, and especial
( ~ for manufacturers (16 per cent
cite it as the main problem), the
peace to production for war is the
1 sWltch-over from production for
greatest challenge in their business
careers, Fortune states. 80 it must
be, notably, for Detroit But the
plants that are manifestly rapidly
convertible to tine making of NUM-
lions take the fact so for granted
that they don't regard it as a prob
| lem.
"Mail-order houses and other
merchandisers conceive of their
problem of Changeover in terms Of
tare44eeee444t44 s 77+-1CfT commodities will
/ and should remain as available and
necessary civilian requirements.
which can and must be dispensed
with.
Financial problems relating to
earnings, reserves, the opportunity
for prudent Investment, and pros
poets Of solFency during a postwar
crisis are closely allied, in the ans
Wers, with the prospects Of initiation.
With government policy and taxa
ton. and with other loug-range
problems of which executives are
now seriously thinking.
Among the immediate worries of
manufacturers finances rank low
only per cent mention them as SER
lous. MerchandiSers take the sub
lect OF finance little more serious
ly; utility and railway executives put
them in third place, and executives
of financial organizations place the
subject on the rim of their cup of
woe, by consensus of 1872 per cent.
Reduced need for product or
services does not appear to be con-
sldered hazard by many manu-
facturerS or utility people" Fortune
declares. But 8 per cent of the
financial executives and Ill per
cent of the mercantile men foresee
this as serious problem confronting
! them. These include, of course, all
| firms engaged in the distribution
OF automotiVe products or in the
financing of their sales.
Unions, strikes, the 40-hour week.
and the Wagner Act are the factors
most frequently mentioned - and
usually with great ,vehemence-in
connection with labor problems other
than shortages. plue rising costs as
against fixed selling prices.
Mentioned as major problem
by rs per cent of the nations exec
utives and by 9.5 per cent of those
engaged in finance, taxation brought
forth more thoughtful and detailed
proposals than any other subject.
The chief problem stated, to which
many solutions were offered, was the
use OF current earnings for expand
ing plant capacity and for building
reserves against a postwar crisis
| Few businessmen complain at the
amount of the taxes. They are main
| ly concerned with the methods and
their effects.
Aside from the postwar problems
of finance, the chronological aspects
of an eventual change over to peace
time industry are regarded as a
major problem by per cent of the
manufacturing executives" Fortune
states "Traditionally research
minded, men in the chemical indus
try were almost unanimous on this
point.
"As for the rest of the major prob
lens Observation-Disclosures, transpor-
tation, the upper and neither mile
stones OF rising costs and fixed
prices, the curtailment of foreign
markets, and the stoppage of i'm
ports-they appear as serious threats
to specific executives for specific
reasons. But the reasons are too
obvious to merit detailed discussion
Finally there is one group OF
answers, tabulated as other in
which healthy percentage of exec
utiVes declared that there is no main
problem but for business to bend
all of its efforts towinning the war;