Evening star., 1944-02-13
Maverick Reports
Surplus Of Workers
In Critical Areas
BY JAMES Y. NEWTON.

Mdu MdSCIlCk, CIldlTIIldN OI
the Smaller War Plants Corp,
last night called for immediate
reappraisaf of manpower needs
in manufacturing areas of the
country and said there was evil
dence Of a considerable surplus
of labor and facilities in regions
where the labor shortage is held
to be most acute.
Earlier, War Production Board
Chairman Donald M. Nelson had ex-
pressed his determination to pro-
tect small Arms in the scramble for
business in the postwar era. He
said small industries will be given
the first opportunity to reconvert
to peacetime production and top
priority on materials not needed for
the war.
Mr.. Maverick said that while the
industrial manpower needs of the
country generally had been over
stated, in the Pacific Coast and De-
troit areas, regarded as critical"
from a labor standpoint, unemploy-
ment and idle plants had appeared.
The situation was described as par
ticularly bad in the Los Angeles
region where, another SWPC official
estimated, there are 5000 small
plants with unused manpower and
manufacturing capacity.
Says Obsolete Statistics Are Used.
Pointing out that conditions
throughout the Nation have changed
with the shifting emphasis in NUM-
tlons production, Mr.. Maverick said
some Of our actions are being taken
on statistics that are obsolete" He
asked for re-examination of man
power needs to avoid decision which
are emotional reactions to statis-
tics OF six months or year ago."
The official who estimated there
were 5000 small manufacturing
firms around Los Angeles alone with
open" capacity and labor, said hun
dreds of the Establishments had
little or no work He said machin-
lists, generally held to be very scarce,
actually are walking the city's
streets seeking work.
Both he and Mr.. Maverick said
the situation was caused by the
West Coast manpower sterilization
plan and the subsequent over-esti-
mating of manpower needs in the
area. They pointed out that labor
was placed on a priority basis and
further war contracts denied the
coast when a number of war plants
there experienced difficulty getting
labor last summer. Plants employ
ing less than so workers were ex-
empted frop the contract ban.
Estimates Doubled Needs.
Estimates made last summer
placed the West Coasts labor short
age at from 100000 to SOC, 900 work.
ers. The officials declared that had
proved to be approximately double
the actual requirements. They said
plants over-stated needs so that they
would be sure Of getting the neces-
sary help. Mr.. Maverick cited one
manufacturer who placed his labor
need at 10000. but actually used
only $4,000.
IN their zeal to correct the coasts
labor shortage, the officials said
procurement officers of the armed
services have denied contracts to
small nrms as well as large ones
Many OF the little producers have
run out OF work and the procure
ment officers have persistently re-
fused to give them more.
An area SWPC. official said the
same condition existed in Detroit
which likewise was decreed a re-
glon OF extreme labor shortage. The
production urgency order blanketed
the whole State of Michigan he
added, and there are unused facilj-
ties and manpower in most of the
States cities.
The most important single thing
we face is the future and fortune
OF small business in America" Mr.
nelson told regional directors of
oWPC. Small business is more
important to this Nation TODAY than
ever before in the history of our
country" ~
Small Business Assured Ton Call
Ihe WPB chairman said that in
his opinion, small business does
not want. or need, a WPA oreaniza-
ton" All the small businessman
wants. he said, is an opportunity to
use their own initiative and in
genulty. He assured them TOP call
on the chance to reconvert their
plants and obtain materials for
peacetime manufacture.
Mr.. Maverick earlier outlined to
the House Small Business Commit
tee a plan to aid small business
through the sale of licenses to more
than $4,000 alien patents seized by
the Government. The licenses will
be sold for SIS each through regional
and district Offices of SWPC. Mr.,
Maverick also told the committee
ne intended to iberalize the cor
poration's loan policy to take "rea-
sonable risks" and urged persons
interested in establishing small en-
terprises to file application for loans
Chairman Patman Of the COM
mittee announced that he Is draft
ing legislation that would permit
tax deductions for income invested
in small business. He said, when
the war is over, we must have
speculative capital. The bill I am