Evening star., 1942-11-21


the right to embark on any enter
prise they might choose, however
modest. however fantastic. This is
a heritage handed down by the
pioneers who first pushed westward
through untamed forests.
The little store, perhaps only a
shed and plank to start with,
was part Of every frontier outpost.
The man with mechanical skill set
up forge or built crude lathe to
turn out the tools the settlers needed
to clear their land and build their
cabins. And in the generations that
followed the small shop and the
one-man or f1ve-man plant spread
along with the huge industries. A
man could carve wood in shed
back of his home. Or he could
make violins.
Hooked for War Jobs.
When, long before Pearl Harbor.
the country began re-arming on a
vast scale, many of these modest in
dustries knew they had something to
contribute. But how would they 60
about it? The machinist with a
couple of lathes could turn out pre-
ciSion parts, but he couldn't bid on
a Government contract.
The Government didn't have time
to parcel out work to innumerable
small bidders. Perhaps the big fac
tory few miles away would throw
him some work. Perhaps 1t wouldn't.
But the Government had to deal
with prime contractors-people who
would turn out so many whole
planes, guns, cartridges, tanks. And
1t was up to each prime contractor
to parcel out what work he didn't
want to do. to make subcontracts.
War Production Chief Donald M.
Nelson, then director of the old
Supply Priorities and ALLEGATIONS
Board, became deeply interested in
the dilemma of the small machinist
and manufacturer One way to
meet the problem was taken up with
Mr.. Nelson by Theodore Crank,
Washington attorney and radio en-
trepreneur.
AS Mr.. Crank later told a Senate
Banking and Currency Subcommit-
tee at hearings that led to the Muir
ray-Patman Act, setting up the
smaller War Plants Corp, he was
drawn into the question through a
client. This client was the Bank of
America. which has 495 branches in
California. The managers of these
branches had been approached, Mr..
Crank explained by small manu-
featuring plants eager to turn out
defense work.
Output Pool Suggested.
The witness added: Apparently
it was impossible at first for the
Government to deal with so many
small units, and the small manufac-
turers naturally felt rebuffed. AS
result of their inquiries, which were
passed on to me in Washington, I
was prompted to investigate the
feasibility of pooling their produc-
tive capacity and thus qualifying for
defense production unavailable to
them when acting as tiny units.
I'm examining some of the in
quiries it became apparent there
were many thousands of honest,
capable and enterprising Americans
who owned small machine shops,
foundries and so forth-perhaps
with a few jigs, dies or tools of one
sort or another-Who wanted to
utilize this equipment in our pro-
duction program, but we're unable
to find way to do So"
Mr.. Nelson was all for the pooling
plan. He put Mr.. Crank in touch
with other officials, and conferences
were held with all the procurement
agencies. Mr.. Crank explained the
plan to the American Bankers
Association at q convention in Chi
cago, urging bankers to support it
all over the country.
AS . result of the enthusiastic
support of A. p. Giannini, president
u the Bank of America, the first
industrial pool was organized
known now As the San Jose pool.
The bank backed 1t. advancing such
money rs it needed to finance
Government contract.
Some - small shops in the area
formed San Jose Manufacturers,
Inc, and 1t was all set to act Is q