Montana labor news., 1944-07-20
DISPOSAL OF U. S.
OWNED SURPLUS
PLANT AND GOODS

- w Az IL ~ - =aaH- ~
PLANT AND GOODS
Continued From Page One)
intensive study was published July II by
the McGraw-Hll Book company under
the title Of The Liquidation Of War
Production" It is the second in a series
Of research studies sponsored by the CED
research committee, of which Ralph E.
Flanders is chairman.
Disposal of Goods
If the war should end tomorrow" "
CED estimates, government-owned sur
plus goods would probably not exceed
$50 billion. But from the point of view
of business the problem is far smaller
than this sum would indicate. Three
quarters of The surplus stocks will be
combat ordnance. Of the SIS billion that
is merchantable. fully half will be lo-
Gated abroad. The remaining So or So
billion. only part OF which is consumer
goods is equivalent i'm dollar magnitude
to cnlv two months normal retail s3les.
While there may be heavy oVer-supply
ia special lines, the great bulk OF yhe
stock can be disposed Of without seriously
interfering with the readiustmen5 OF
business to peaceame production pro-
vided the disposal is carefully planned
i'm advance and carefully timed.
disposal cf plant
CED estimates that the government
has invested s33 billion in plant and ta-
ciliHes during the emergency. But sli.a
billion of it represents military installa-
tions OF the remaining Sl5.5 billion
perhalfs half will consist Of large sur
nlus facilities in such lines as shipyards
aircraft. aluminium and magnesium
Probably not more than s. billions, o.
about one-third of the total, can be read
iIv converted into a net effective addi
| t;on to the nations peacetime plant
4 Since SIS billion represents only abou
two years of normal investment in plan
Z expansion. the end Of the war will fin'
MS with no overall excess plant capacity
apart from the lines mentioned ou
rather under-equipped for full peacetim
production.
Proper handling Of government plant
will constitute. CED says, probler
! which will call for daring busines
! statesmanship." It will require grea
inoenuitv in the conversion Of facilitiG
| to neacetime use and bold dismantlin
| of many which cannot be converted. IN
problem of the plants which can be sue
! ceesfullv converted should be solved PREF
| erablv by outright sale to private opera
: tors or else by long lease or by eXper
O mental "sliding-scale leases, accofoiI
II to circumstances.
II Contract Termination
II of a possible $50 to 500 billion
II uncompleted war contracts which Wou
II be outstanding If the war should ei
y tomorrow" CE estimates that total clam
. Win not exceed a maNmum OF $40 ol
III Ian and shat the area Of poss. olspa
III be.veen contractors and goveFnlhe
III will not exceed SIS billion. Urging u
III utmost speed in termination seJyleiiel
III CuD asserts that the cost TO the nalA
u of unnecessary delays, in terms OF i1
- nroduction and in morale of memploy
workers. could be vastly greater tnan a.
savines which might accrue to tine go
ernment
Al CED Research
In writing the research study on VIM
fine CED statement is based, Profess
Kaplan had the benefit Of continuing
-A sistance of the CED research staff, hea
- ed bv PROF. Theodore O. Yntema, ana
freo1ent day-long conferences with
outstanding social scientists Of the
search advisory board and the busine
men of the research committee. IN
as will all CED research studies, T.
renort though representing Profess
> Kaplan's own findings and opinions
N suits from a blending of speciali'
i knowledge and practical business eXpa
ence.
Professor Kaplan's study can be p
chased at or through any bookstore,
mot from CED. The CED statement
national policy can be obtained with
- charge from any of the 1907 local CE
-: or from the national office at 285 Ma
son avenue, New York II, N. Y.
4 Outstanding points from the G
statement on national policy include;
/. A warning that the success OF
transition will depend in large meas
upon the readiness Of the private e
90; nomic sectors Of the nation-agricultl
ps' business and labor-to sublimate I'll
desire for temporary advantage into
greater satisfaction Of restoring the &c
omv to a healthy and durable pro.E
ity. The sacrifices Of war will be III
IT, having won victory in global wari
we engage in an all-out struggle OF
~ nomic interests on the home front as
90 through the transition period"
2. Recommendation that the gent
objective guiding surplus disposal sh'
be one Of making the surplus &c
available to consumers and other
mate users on the widest possible sea
3. Recommendation that the guit
- policy in surplus disposal be one OF
- 3 couraging private business under G.
Ipetitive conditions.
a. Insistence that disposal Of surplu
like disposal of plant, should be COO
mated under central governmental
icy body.
Fl, s. Recommendation that equal Cpl
y tunity be guaranteed to all businessi