Imperial Valley press., 1942-06-19
CAPITAL TALKS
by
Peter
Edison

Presidential signature on th'
Murray -Patman bill, known as TIT
small business act, makes this mea
sure a law and sets up a fund o
$3.50 million to be administered b,
a Smaller War Plants Corporation
that will assist small manufactur
ers who can efficiently produc'
war or essent'a al civilian materials
But don't think this solves all th'
problems of small business. Th,
Murray-Fatman bill is Just a stel
in the right direction, and thu
most conservative guess as to TIT
sum required to really save small
business is another 5000 million
year. 1t works out something lik'
this:
The country has some $4,000
manufacturing plants. The Ma
tional Small Business Confer
ence of Chicago, a strictly pri-
vate trade association, estimat-
es that of this number, only
about $4,000 can be converted
to war production. Pessimisti-
cally, therefore, the conference
predicts that eventually $4,000
plants face the possibility Of
complete wartime shutdown.
The Bureau of Industry Branche:
in the War Product on Board say
this estimate is far too gloomy, TIT
WPB guess is that of these 184,00l
manufacturers all but perhaps "a
OOC can keep going during this wa
production era The prospect o.
$4,000 small businesses being shu
down-and By Oct. l, 1942-is moth
ing to cheer over, but it's brightel
than the outlook of 10000 plant
being forced to the wall.
Whatever the number EVENTUAL,
put out of business, the reasons To-
their shutdown are clear. The Wa
Production Board to conserve crltl
cal materials and to release ma
chinery for the making of wa
supplies. has had to prohibit COM
pletely the manufacture OF thou
sands of items made fer civilians
in times of peace.
DEADLY AS BOMBS
These stop orders are one o
the most serious aspects of the war
like bombing raids, they are un
avoidable, but they are just a.
deadly as though bombs actuall,
were dropped on some $4,000 O.
more small factories scattered owe
the country. Statistics on these bus
inesses-what firms they are ant
how many employees they have
are unavailab BILE. If you count onl,
the smallest $4,000 manufactures
they represent a S4 billion a yea
productive capacity.
The Murray-Patman bill Will
save a number of these firms,
but it must be borne in mind
that the Smaller War Plants
Corporation will be restricted
ty law to helping war prOduc-
ton. The purpose of the bill is
not to save small business as
such, hut to help finance plants
that can be converted to manu-
featuring war supplies or the
minimum requirements Of civil
liam economy. There is still no
help i'm sight for the little fel-
lows who can't convert and
can't be given materials for
essential productions.
One of the clearest statement
of the problem facing these manu-
facturers and an anal'sis OF VIVA
might be done to save them wa
made recently by Philip D. Reec
now dolla--a-year chef of WPB
Bureau of Industry Branches. bu
in civilian life chairman of tn
board of General Electric. Rec
! gave his views in commencement
address at Polytechnic Institute c
Brooklyn, and though 1t was gen
erallv overlooked, it was realistl
presentation from the head OF on
of the country's biggest busineSse
as tn what kind of a post-Wa
world the graduates and thel
children would be facing If thes
24.OOO or more little busineSse
were permitted to go bust
COJrNTJNC THE COST