Evening star., 1943-02-17
Nelson Ponders
Idea Of QUITTING
WPB Hot Spot
Will Take Vacation;
Foes Urge Boruch
AS Successor
BY the Associated Press.

pOndered suggestions, both from
friends and foes, that he follow
into retirement Ferdinand Eber-
stadt, the vice chairman he dis
missed.
Mr.. Nelson told friends he ex-
pected to take vacation for a week
or two to consider the possibility Of
retiring, and also to give complete
freedom to Charles E. Wilson, his
new executive vice chairman, who
has taken over all WPB activities.
Among Mr.. Nelson's friends. the
majority opinion seemed to be
against resigning, though some of
them have advised him to quit in
behalf of his health.
If he should resign, however, they
favored for his successor Mr.. Wilson.
self-made man who rose to the
head of General Electric Co.
Opponents Of Mr.. Nelson, who
were reported to have asked the
White House for his scalp, we're
said to favor 72-year-old Bernard
M. Baruch, who held similar post
in the World War. These opponents
were said to include Undersecretary
of the Navy James Forrestal, who is
close personal friend and college
classmate of Mr.. Eberstadt.
Major Policies to Be Held.
Inside WPB, itself, informed
officials doubted whether the shake
up would seriously alter the major
policies already under way Some
officials who we're particular friends
of Mr.. Eberstadt were expected to
leave, but some of the Eberstadt
policies were scheduled to remain.
A brusque investment broker, who
| made lightning decisions and stuck
by them, Mr. Eberstadt was said by
some officials to have been un-
popular more for personal than
policy reasons. However, in WPB
he was regarded as spokesman
for the armed services whenever a
question arose as to whether civilian
| needs should be sacrificed for mil.
itary desires.
If Mr.. Nelson retires, friends said,
he could legitimately base the action
on grounds of health because Of
fatigue and nervous strain.
Meanwhile, the belief grew that
the controversy between the services
and the covilian production agency
would increase in intensity, as MIR.
Eberstadt, who always has had the
backing of the Army and Navy
prepared to leave the Washington
scene. He has applied for active
duty in the field artillery.
The next test of power between
the services and the civilians will
come when Mr. Wilson attempts
to use the authority which Mr.. Nell
son transferred to him in the WPB
shake-up announced yesterday.
Mr.. Wilson now has the power to
tell the services not only when they
may get materials, but when they
are to receive the end products
| the valves, armor plate and other
components they need. He has the
/ power to order that certain COM
ponents be made for civilian use,
instead for Army Navy use.
Can Re-arrange Contracts.
The new chief of staff" to Mr..
Nelson can re-arrange contracts
which have been let through Army
Navy procurement officers and can
even shift machinery from one
! plant to another to carry out the
| programs as he-and not the serv-
ices-sees fit.
Informed persons believed that
the new WPB executive setup would
run into a hot fight as soon as Mr..
Wilson started issuing orders about
| production schedules which the
Army and Navy did not approve.
Already Army and Navy repre-
sentatives on the WPB have entered
| their protest against Mr.. Eberstadts
custer and against the changes in
production methods proposed by Mr..
| Wilson.
At the WPB meeting yesterday,
Undersecretary of War Patterson
and Mr.. Forrestal expressed disap-
proval of Mr. Nelson's decisive ac-
ton. They said that Mr.. Wilson was
trying to build house without a
! foundation by his method of sched-
uling the production of components.
Mr.. Nelson called at the White
House late yesterday to explain to
the President, for the first time, his
action in demanding the resignation
of Mr.. Eberstadt. That there would
be trips to the White House by other
officials affected by the controversy
was forgone conclusion.
The President said at his press
conference yesterday that no appeal
had been made to him at that time
by the services against the Nelson
action.
Mr.. Eberstadt summoned news
papermen to his home last night to
issue brief statement. defending
his policies in the WPB and an
nouncing that he had applied for
active duty in the field artillery
with which I served for two years
during the last war"
In his statement, Mr.. Eberstadt
said that his record at WPB speaks
for itself"
Il believe the policies which I fol-
lowed to be the best for our war
effort and am certain that close
examination of the record will bear
this out" he said.
The ousted vice chairman said
that he regretted having to sever
association with those many loyal
and able men" in his department
who had worked so hard to further
the war effort.
Mr. Eberstadt, it was learned,
has urged the men who worked un-
der him to remain at their posts.
Two of them, however, already have
submitted their designations. They
are Fred Searls, director of the IA
cilities bureau, and L. o. zick, South
Bend Md assistant deputy director
general for distribution.
Mr.. Searls will return to the
Maritime Commission and Mr.. zick
will go to South Bend in few days.
The latter said he was resigning as
(See NELSON, Page A-lsJ