Evening star., 1943-02-15
Small Firms Doomed
By Point Rationing,
House Unit Says
Federal ck-Possine'
Hit; Some in WPB Called
Almost Troitorous
BY the Associated Press.

BY the Associated Press.
A warning that the forthcom-
ing point rationing program may
force tens of thousands of food
stores out of business was cou-
pied by the House Small Business
Committee today with an attack
on bureaucratic buck-passing."
Without mentioning names, the
committee, headed by Representa-
tive Patmon, Democrat, of Texas,
said it had found almost traitorous
activities on the part of certain in
terests to protect their companies at
the expense of the war effort"
The committee. which has been
studying the wars impact on smaller
businessmen. reported that "prac-
tically nothing has been done with
regard to using small business more
effectively in the production of es-
sential civilian supplies"
There seems to have been an
emphasis on production for
military use and an under emphasis
on production for civilian use," the
report said.
Viewed as Last Straw"
Asserting it was greatly concerned
at the possible effect OF point ra-
tioning on retail grocers, the COM
mittee expressed fear that 'the in
auguration Of any such system may
prove to be the proverbial last straw
and that the proprietors of tens Of
thousands of food stores may yield
to despair and close their DOORS
1t questioned whether the need
for general food rationing has been
established and recommended an
investigation OF the lease-lend ad-
ministration to determine its effect
on civilian supplies.
Citing what it termed "a par
ticularly dangerous kind of misman-
agement within the War Production
Board" the committee told of the
efforts OF Herbert Jamul, president
of the Chemical Products Co. of
Miami, Fla, to obtain a Govern
ment contract.
Mr.. Jamul had a plan for process
ing coconuts to obtain glycerine for
high explosives, the report said, but
was sent from one Government
agency to another. and was still
seeking the contract when the COM
mittee's hearings were held.
ugly Stories" Cited.
Since the beginning of the war
EFFORT, there have been many ugly
stories circulating around to the ef-
feet that some officials in the War
Production Board were more inter-
ested in looking out for the interests
of their particular businesses than
in promoting the effectiveness of the
war effort" the committee said.
As an example, the committee
cited Mr.. Jamuls testimony that
major soap companies had avoided
a WPB order freezing coconut oil.
Mr.. Jamul said, the report stated,
that representatives Of these soN)
companies were serving as dollar-a-
year men in high positions in the
WPB: that these representatives
tipped their companies of that the
WPB was going to freeze coconut
oil; that these companies, in con-
sequence, proceeded to dump their
stocks of coconut oil into their
soap stocks, so that when the
freezing order came through they
had no coconut OIL"
The committee urged that the
Smaller War Plant Corp, an arm
OF the WPB, be reorganized to give
competent management" and take
prime contracts for war materials
OF simple construction and for
essential civilian supplies and sub
let the contracts to small concerns.
O-ser recommendations:
Other Plants Planned.
Immediate action by Government
agencies ito assure the production
OF adequate food supplies" with clas-
sihcation Of the processing and dis
tribution Of food as essential war
industries"
Equitable distribution" of avail
able food supplies among large and
small distributors.
Revision Of OPA policies to permit
the passing on Of price increases to
all levels of distribution; to guaran-
tee "a reasonable net profit" over
operating costs, and to prevent COM