The Wilmington morning star., 1943-10-22
BY ROGER BABSON

BY ROGER BABSON
BABSON PARK, Mass.-At the
end of World War I the govern
ment held a bag containing $5,-
900, 100000 worth of goods Of every
kind and description. We all re-
menberf the so-called "Army and
Navy Stores which Tor more than
&C years disposed of portion of
these goods. Undoubtedly t h =
were nuisance to old-line estab-
lshed retail stores. These Army
and Navy Stores seemed to have
a never-ending inventory.
The great bulk of the $4,000, 0OO,-
900 surpluss was brought up by
mail order houses and spectators
at private sales or at auctions.
Through catalogues and loW-rent
stores these goods were then re-
sold to the general public at con-
siderably less than retail prices
for similar goods. 1t took from
one war to another to clean out
Army and Navy inventories Of
these materials. Few, if any, OF
them were adapted to the needs
of World War II. Probably little
of the surplus which remains at
the end Of this war will be re-
tanned by the Army and Navy.
Hence. the government will be
faced with another great problem
Of disposal. World War I excess
supplies brought about IS cents on
the dollar cost. I should judge
that the government will take an
other loss and this time a greater
loss because Of the larger quantity
involved. Such losses, however,
are all legitimate charge against
the cost of running a war. Wash
ington should not be criticized Tor
disposing of these goods at cut
rates. However, steps should be
taken to protect existing retailers
from unfair competition.
It is estimated that when World
War II ends the surplus goods and
materials owned by the Army and
Navy will have value OF at least
five times that of the "odds and
ends" which existed at the close
of World War I. This means some
S25, ZOO, 0OO,O worth of items. Con-
sumers, wholesalers, jobbers, man
ufacturers, mail-order houses and
retailers are all vitality concerned
in this. To some groups it means
good business. To others, and par
ticularly to retailers, t h e effect
may be bad. Obviously, these ma
terials should not be dumped upon
the market hastily.
Legislation is already proposed,
calling for a study as to ways
and means by which these sur
plus goods may best be disposed
of. Some representatives want the
entire matter placed under t h e
control of the Budget Bureau. 9th
ers seek to establish a custodian
OF surplus property. I strongly ad-
wise that retailers band together
and insist that their consumers
goods markets remain free from
any unfair competition which in
the end would hurt consumers as
well. Congressman ought to be
fairly busy with this!
Already the Army is releasing
certain consumer items. These in
clude clothing, shoes, kitchen uten-
sils and certain supplies III c h
now have no direct military value.
The Army has more of these kinds
of goods on hand for current sale
than does the Navy. Sales by the
Navy, for the present at least, are
being confined to raw materials,
scrap and machinery. All these
articles are first offered to other
government agencies. If n
agencies are not interested, the
goods are then sold through the
procurement division of the Treas
ury. Manufacturers, as well as
retailers, may be interested in Sc
curing lists of what is now avail
able from procurement division Of
fees in Boston, New York, Atlanta,
Washington, Cincinnati and Fort
Worth. Most OF the Army sales
are made upon a negotiated basis;
but the Navy usually insists upon
sealed bids.
In certain instances the W.P.5.
has allocated Navy SURPRISES to
manufacturers who are in need Of
them. Any manufacturer engaged
in war production who is presently
cramped for machinery and sup
plies of raw materials might do
well to contact W.P.B. regional Of
fees to see what is on hand.
Prices have been running close to
the cost of the materials involved.
In time of war, as we know it
today, the Army and Navy buy
and use practically every kind OF