Evening star., 1943-01-26
Holland Now Expected
To Remain Head Of
WPB Small Plant Unit
Is Being SuppIonted
In Former Position
By Col. Johnson
BY CARTER BROOKE JONES.

Lou E. Holland. who has been
supplanted as chairman of the
Smaller War Plants Corp by Col.
Robert johnson of the Army
Ordnance Department, is expected
to remain as deputy chairman of
the War Production Board and as
head OF its Smaller War Plants
Division.
This was indicated authoritatively
made and none Is expected until
Col. Johnson takes over his new
duties early next month.
The only comment Mr.. Holland
has made for publication is that he
came to Washington to fight for
small business and will continue to
carry on that fight.
The change in the small-business
setup was announced last week at
the White House on recommendation
Of Donald M. Nelson, WPB chair
man.
Nelson's Explanation.
A spokesman for Mr.. Nelson an
nounced at first that Col. johnson
was taking over both posts which
Mr.. Holland has filled-chairman of
the Smaller War Plants Corp. and
director of the WPB Smaller War
Plants Division-and that Mr.. Hol-
land had been asked to stay on as
sort of chief deputy. Mr.. Nelson
at later press conference said he
had asked Mr.. Holland to remain
as deputy chairman of WPB in
charge of the Smaller War Plants
Division. So far as he knew, Mr..
Nelson added, Mr.. Holland would
accept, though it was learned else
where that Mr.. Holland had prom
ised only to think it over"
Mr.. Holland was displeased, 1t
was learned. at the abrupt way In
which the new lineup was an
nounced at the White House. The
announcement did not mention his
name. The manner in which the
news was conveyed, q source at
WPB disclosed, was due to mis-
understanding. 1t had been ex-
pected the announcement would be
made at WPB next day, explaining
the change more fully. 1t was in
ferred that Mr.. Holland was out
entirely. This was not cleared up
fully for several days.
Under Mr. Nelson's plan Mr.. Hol-
land merely would split his dual
position with Col. johnson and
would not be supplanted except in
administration of the lending
agency set up by Congress, the
Smaller War Plants Corp. Mr.. Hol-
land would continue to direct the
WPB smaller war plants division,
which, In Washington and In the
field, does all the work of planning
war contracts for the smaller manu-
facturers and machine shops. The
division supplies engineering skill
for these plants and carries on
liaison between them and the Gov
ernment procurement agencies.
Johnson's Higher Title.
Col. johnson, who in addition to
the Craftsmanship of the corporation
will be vice chairman of WPB.
higher title than Mr.. Holland has,
Is expected to make the financing
organization more aggressive force
than 1t has been. While the cor
poration was given wide powers by
Congress, including the right to take
over prime contracts from the Army.
Navy ar Maritime Commission and
spread them along smaller plants,
1t has exercised few of these pre-
negatives. Mr.. Holland has nego-
tiated comparatively few loans for
small business, explaining that they
usually could obtain ample backing
from their banks, and he frowned
on having the corporation act as a
prime contractor.
While Col. johnson has not indi-
Gated what plans he has for the
corporation, he is expected at WPB
to make 1t more aggressive force
in the struggle to spread contracts
further among the little fellows"
OF industry. The corporation was
allotted $3.50 o0o, 900 to make loans
to enable plants to convert ma
chinery, buy materials or otherwise
prepare themselves for war business.
Col. Johnson, in civil life presi-
dent of johnson & johnson, sur
gical supply company, has been
commanding the New York ord
nance district. He lives at Prince
ton, N. J. He is in New York wind
ing up his Army work. He is not
leaving the Army, however. but is
only being assigned to his new posi-
tion