The Wilmington morning star., 1946-01-29
Fair Enough
nv wEsTBRooK PEGLER

About one wear ago. Golfers magazine pub
lished a very laudatory biography of Abra-
ham N. Spaniel the president OF the lnterna-
tional Latex corporation, of Dover, Del, en-
titled "Spanel, What a Man.
Mr.. Spaniel was represented as an uncom-
monly patriotic citizen an extremely eIucleh!
and resourceful manufacturer and man who
ca heartily appreciated the wonderful oppor-
t1nities which Russian immigrant had en-
loved in the United States that he gladly
refunded to the government OF the United
States a large sum of money derived from
his manufacture of pneumatic bouyant life
saving devices for the Army Air Forces
For several years, Mr.. Spaniel has been
publishing running series OF pontlcal essays
and arguments, the whole amounting 10 lie"
deal and left-wing propaganda with the repre-
sentation that such presentation constituted
public service The advertisements are spon-
sored by his International Latex corporation
and mention no commercial product.
The records of the War department IN
Washington contain large file dealing WIN
the negotiations between international LateH,
the Smaller War Plants corporation and the
Army. Brigader General Albert Browning
who served as director Of purchases Tor the
Army service forces does not share the opln-
ion of Spaniel and his company expressed IN
the Golfers story. General Browning former
ly was an executive of Montgomery Ward and
company in Chicago and he served the gov
eminent early in the war as deputy director
of purchases in the office of production
management. He recently accepted an ap-
pointment offered by Henry Wallace, the
Secretary of Commerce, to serve in new
position, that of director of the Office OF
Domestic Commerce.
On April 6, 1914, Spaniel sent telegram to
Maury Maverick chairman of the Board of
Smaller War Plants corporation boasting OF
his firms performance in the production of
5000 life-rafts on sub-contract from the
S.W.P.C and pointing with pride to the fact
that his company had made a reduction in
the price allowed This telegram was for
warded to the office Of the under-secretary
of war.
On April 10. General Browning wrote a
memorandum for the under-secretary quilting
his version of the history Of the transaction.
He reported that on Feb Is, 1913, the ma
terrell command of the Army Air forces re-
ceived a communication from Smaller War
Plants certifying International Latex as bid
der on 5000 RATS at $125 each. This certifica-
ton was not accepted but international and
20 other firms were invited to submit bids.
Fifteen bids were received and when they
were opened on March 6, the bid of SpaneTs
company was found to be SOL and the highest
of them all.
THE other IA companies, including five
small ones, had bids ranging from $63.26 to
$40, with only two bids higher than $72 49,"
General Browning wrote. THE five small
firms mentioned all bid $72.18 or less"
Proceeding, General Browning reported to
the under-secretary that Wallace o. Heinze, the
director of operations of small war plants, on
March 9, 1943, telephoned to Wright Field at
Dayton, O., where procurement OF such ma
terial was being handled, insisting that In
farnatjOna1 .ateY receive contract for s O10
RATS
"Materiel command told Mr.. Heinze that
$50 per unit premium Gao per cent? over other
small concerns was too high General Brown
ing wrote. 'Mr. Heinze then requested this
office to intercede and over-rule the decision
of materiel command"
Proceeding with his review, Browning said
that cost estimates of international and two
other small rubber companies were obtained
for comparison. The others were Master Tire
and Rubber company and Anderson Rubber
company All three had fewer than 500 en-
ployees each. The Anderson firm had only IA
employees and produced 1000 RATS at $72 per
unit, the same net price as that OF Interna-
tional Latex corporation, the memorandum in
formed the under-secretary. In the cost es-
Inmates, internationals price was SOL, Ander-
sons was $50. As and that of Master Tire and
Rubber company $63.26. Included in the costs
were manufa curing overhead and administra-
tive overhead. Spanel's manufacturing over
head was stated as $34.18. Anderson's was
$685. Master Tire and Rubber company's
was 1898. Spaners administrative overhead,
$4.74 also far exceeded that of the two other
small companies. AnderSon's was $3.50 and
Masters only $157.
No profit estimate was given in Spaners
table. Andersons profit was estimated at
| 81 O3 and Masters at $685.
General Brownngs report said that after
the Army refused to make the contract di-
rect, with International at $1O1 as Heinze had
insisted the S.W.P.C. took prime contra ct
for 5000 RATS at $85 and subcontracted the
lot to International at $85. SpanePs final, adj
| justed price was $72 and with the exception
of Anderson's price, which was Identical, was
still the highest of six orders while Masters
final adjusted price was only $65.65.
General Browning also informed the under
secretary that after Heinze had exerted tais
pressure to get business for SpanePs company
at price which the army considered to be
excessive, he quit his government job on Sept.
1, 1913, ard became general manager of the
International Latex corporation.
I Several members of Congress have made
inquiries into the production operations
of Spaneps company and one OF them says
J Heinze's salary jumped from $4,000 with the
i government to $4,000 with Spaniel. These fl
cures may be inaccurate but Heinze, hirns self,
} when I telephoned him for information refus-
ed to answer any questions and would not
even say whether he had ever worked for the
} government He said would have to ask his
, attorneys, Chicago firm. Thus through him,