Evening star., 1942-09-27
Nelson Far Advanced
On Solution Of Two
Production Problems
SO Signal Reported on
Change From Priorities
To ALLEGATIONS System
BY the Associated Press

q, the Associated Press.
In major reorganization carry
ing out his pledge to get tough. "
chairman Donald M Nelson was
well advanced yesterday in efforts
10 lquidate two major War Pro-
duction Board problems-the falter-
ing now of materials and friction
with the armed services.
From high WPB sources it was
learned that Mr. Nelson has ordered
a Wlde-open throttle in the transi-
ton from priorities to anocations in
covering the flow of scarce materials
into war plants.
BY transplanting Ferdinand Eber-
etadt, head of the Army Navy Muni-
tons Board, to his right hand as
vice chairman of WPB, Mr.. Nelson
served notice that any conflict be-
tween WPB and military officials
might be considered "a dead duck, ="
In the words of one official.
Instructions have issued from Mr.,
Nelson's office to replace the priority
system-now, in its refined form,
the Production Requirements Plan
or "PRP"-as rapidly as possibly
with an ALLEGATION system which will
give each manufacturer his slice of
the materials along with his war
contract.
Proposed Setup Explained.
All but approximately 20 per cent
Of production will be under this pat
tern when the transition is complete.
Continuing under PRP will be the
smaller ingredients of production
bearings, rivets and other items
whose output cannot be scheduled
unit by unit like tanks, guns and
ships.
This means, in effect, that PRP
Is being discarded even before it
gets full-dress trial, for the plan
was not due to become fully effec-
tive until October /.
Close associates of Mr.. Nelson re-
ported that he never was sold on
PRP, realizing 1t would perpetuate
much of the old scramble for mate
rials that undermined the priority
system in mid summer, but that he
was hampered in installing firmer
control by the fact that no one
knew exactly how much of every
material was needed by each claim
ant
This information should be at
hand shortly through tabulation of
PRP applications from manufac-
of rrr1,i iel,
production schedule and itemized
material requirements for a full
quarter ahead.
Method Not Made Clear.
Exactly how the ALLEGATION system
would develop was not made clear.
1t appeared, however, that each
prospective contractor would submit
a statement of materials needed to
do his job After review, WPB
would issue to him certificate to
be served on supplier-like a check
on a bank-for a given amount of
material in specified time. AS
planned, the total materials called
for would not exceed the total in
hand: thus each contractor would
be guaranteed HIS raw materials and
parts in orderly flow.
. Appointment of Mr.. Eberstadt
and Charles E. Wilson to two new
vice chairmanships last week
wrought a fundamental change in
WPB organization and implemented
the new policy.
Mr.. Eberstadt, the New York in
vestment banker, took a position at
the starting end of production
planning, directing materials into
the proper channels, getting COM
prehensive, detailed and accurate
schedules from the Army and Navy
He is an advocate of the ALLEGATION
plan.
Further Merging Expected.
Mr.. Wilson, president of General
Electric Co, was placed at the other
end of production-seeing that pro-
duction schedules are met, eliminat-
ing bottlenecks, breaking the log
jam if shipyard requirements, for
instance, interfere with tank pro-
duction or vice versa.
In Mr.. Eberstadt, Mr.. Nelson got
a right-hand man who enjoys the
confidence of military leaders and
whose presence in WPB indicated
that even more extensive merging
OF WPB operations with those of
the armed forces was in prospect.
BY the Wilson appointment, WPB
placed a production man in a top
rank job in direct charge of pro-
duction, for the first time since Will
liam H. Harrison, now a brigadier
general, moved from WPB's old pro-
duction division into the Armys
Services of Supply.