Evening star. [volume] (Washington, D.C.) 1854-1972, 1953-12-30
DenlocratsHif
6. P. Plan on
Unemployment
Southerners Charge
Breach of Faith on
Defense Contracts

southern democrats To-Day de-
nounced the Eisenhower admin
istration's plan for funneling
more defense work into areas of
large unemployment and charged
it is a violation of Republican
promises.
Their opposition was based
principally on fear the Govern
ment will take business away
from the South's fast-growing
factories. particularly textile
mills. and divert it to New Eng
land. In its essentials, the dis
puted policy is the same as that
of the Truman administration.
abandoned last August, which at
tempted to channel work into
depressed areas.
In an interview with the Asso-
ciated Press, Senator Maybank,
Democrat. of South Carolina. &C
cuSed President Eisenhower of
turning his back on his cam
PdISu PIOIulSeS.
In separate interviews Sem
ator Sparkman, Democrat, Of
Alabama. and Hill, Democrat,
Of Alabama. said the pro-
gram. set forth again yesterday
at the little White House at
Augusta, Ca. violated pledges
made by the G. o. P. leadership
in the Senate last July.
Refer to Earlier Debate.
The Senators were referring to
debate last session on an amend
ment which provided the Gov
eminent would let contracts to
the lowest bidder regardless of
the amount of unemployment in
the area. Although the amend
ment failed of passage in that
form. the Southerners recalled,
Republican leaders said its spirit
would be followed by the admin
istration.
Senator Sparkman declared
it is not true. as Presiden-
tial Press Secretary James c.
Hagerty said. that this is the
first time a national admins
tration has tried to do some
thing" about chronic regional
unemployment.
Senator Sparkman said the
Truman administration had a
positive and definite program"
for putting defense contracts
into areas Of labor surplus.
Hagerty Refuses Comment.
In Augusta, Mr.. Hagerty de-
clined to comment further when
asked about an official policy
OF the Truman administration,
put into effect in 1852, to award
defense contracts to other than
the low bidders in an effort to
counter unemployment in some
areas.
Mr.. Hagerty also said the pol
icy was being announced for the
first time. so far as he knew.
Actually. it had been outlined
in a memorandum by Arthur
S. Flemming. defense mobiliza-
ton director. last November 4
and made public then. At that
time Mr.. Flemming named II
large and % smaller metropol-
itan areas of chronic unemploy-
ment as eligible for aid.
In its essentials the policy Is
similar to that of the Truman
administration. abandoned last
August. to give preference in the
award of defense contracts to
areas where there is consider
able unemployment.
George Joins Criticism.
Altogether a bad policy and
one I have never favored" SEN
ator George, Democrat, Of
Georgia said. Its a great mis-
take and will unbalance industry
everywhere"
Similar criticism was voiced
by several Southern Represent
atives.
On the other hand, Senator
SaltonStall, Republican, of Mas
sachusetts said the provisions for
liberalized tax write-offs and for
setting aside a fixed percentage
of some procurement for surplus
labor areas "are helpful as far
as they go, and I am happy they
have President Eisenhower's sup
port" Mr.. Hagerty said as much
as 80 per cent of some procure.
ment items-Army blankets. for
example-might be set aside.
But Senator Saltonstall added
in a statement that the "aban-
donment of the bid-matching
procedure was a blow to the
program.
He referred to a feature of the
(See CONTRACTS. Page A-3)