Evening star., 1943-03-07
Co-',o'Ijrdinaied Effort,
10 Aid Small Firms
Urged by Senator'S
Need for Far-Reuchino
Legislation Reported
By Committee
BY CARTER BROOKE JONES.

By Committee
BY CARTER BROOKE JONES.
Far reaching legislation and
thorough remolding of admins
trative policies may be necessary
before the Government realizes and
carries out its full responsibility for
preserving the little factories, shops
and stores which are menaced by a
total-war economy, the Senate Small
Business Committee reported yes
terday.
The committee held that far too
few Federal agencies felt suhlcient
responsibility toward small busi-
ness, and that efforts made to help
1t lacked coordination and any
general philosophy"
The report resulted from replies
to letters sent 81 departments and
Independent agencies of the execu-
tive branch, asking what was being
done about small business. In
preface to the document, Chairman
Murray and Senator Capper, Re-
publican, of Kansas concluded:
There is still a big job to be
done in organizing the Federal Gov
ernment in such a way that small
business can make its greatest con-
tributiou to American life, both in
war and in peace. This may yet
call for far-reaching legislative
measures and for thoroughgoing re-
molding of administrative policies"
Small Business Court Urged.
The Justice Department suggested
that q small business court be set
up to work out inequalities and
tangles involving legal problems.
Thurman Arnold, who is retiring as
Assistant Attorney General in charge
OF the Antitrust Division to be-
come an associate justice of the
United States Court~of Appeals for
the District, reported that the de-
partment's small business unit had
disposed OF more than 1000 COM
plants from small business and was
constantly receiving additional COM
plants which this special section
Of the Antitrust Division gave daily
attention.
These complaints" he wrote.
affect the relationship Of small
business with the various war agen-
cies, and In number of cases we
have been successful In securing re-
lief by direct representation to the
agency involved and by enlisting
Its cooperation. At times we have
met with serious obstacles and in
such instances we have telt sorelys
In need Of some forum that could
impartially dissolve either dis
puted facts or other controversial
matters" He added: ~
Our thought and study have been
directed toward the objective of the
establishment Of just such forum.
- We cannot but feel in that
connection, however, that its sue
cess or failure would be entirely
dependent upon the particular in
dividual or group selected to pre-
side and determine the issues. A 4
small business court properly adj
ministered. would, In our Judgment,
be Of tremendous aid, not only in
furnishing relief In particular cases
Of hardship but also in supplying
guides to the particular ofIicial or
ofhctals involved in the dispute. In
many other ways. 1t would be help
full TO the war effort"
Reserve System Suggests Plan.
The Board Of Governors Of the |
Federal Reserve System suggested
uberalxiug 4 section Of the Fed
era1 Reserve Act to provide more
adequate credit facilities for small
business, pointing out that the gov
ernors several times had sought such
legislatioFly
The Interior Department recon-
mended q board in the Once of
Scientific Research and Develop
ment. which would open up new
processes and enemy alien processes
In the minerals field to small busi-
nessmen, giving them, in effect, ian
approach to chronological equality
with the larger companies"
Chairman Donald M. Nelson of
the War Production Board suggest
ed War Liabilities Adjustment
Board, not connected with WPB,
to help small enterprises weather
the war and to provide necessary
financing, technical aid and ma
chinery for them to keep going or
resume business after the war.
Some Of those letters" Senators
Murray and Capper commented, "are
based more on good intentions than
on actual achievements. A few may
be based more on the desire to make
. good showing than on good in
tentions."
The letters. they added, clearly
indicate that the great majority Of
Federal agencies touch upon the
problem Of small business either di-
rectly or indirectly" but they show
that far too few OF the Federal
agencies seem to feel any clear
cut responsibility for the task OF
using small business most effectively
in the war effort or of guarantee
ing the preservation of small busi-
ness in the postwar period" There
also was found to be abundant
evidence that there is insufficient
l.