Analysis of printing and binding estimates, fiscal year ending June 30, 1943 A semiweekly news letter of about 8 pages designed to disseminate procurement information and subcontracting requirements to the country's manufacturers and contractors. Issued by each of the 13 regional offices. Circulation approximately 60,000 per issue. 5. Directory of Contract Opportunities. A weekly publication of about 20 pages designed to facilitate the distribution of work between prime and subconCirculation is about 5,000 copies per week. tractors. 6. Defense Housing Manual_ A pamphlet whose purpose is to outline the aims of the housing program and to prescribe the prcedures for builders operating under the program. It is contemplated that a total of 200,000 copies will be printed. 7. Labor Reporter... A weekly news-letter of about 12 pages designed to disseminate labor intelligence developed by the Labor Production Division. Circulation approximately 1,000 per issue. 8. Priority forms and orders: Priority regulations. PD forms__ P orders L orders. M orders. S orders E orders 9. Library stock, reference books, etc. 10. Travel and leave requisitions, T. R. books, etc.. Pamphlets, telephone directories, etc.. Supplies: Letterheads_ Envelopes. Paper, pads, etc.. I. B. M. cards, etc.. Miscellaneous.. Total..... $10,000 22, 500 $15,000 27, 000 120, 000 15, 000 2, 500 2,500 450, 000 5,000 10, 000 80, 000 Mr. DITTER. Right at that point I wish you would also supply us a statement showing how much of the money you are presently attempting to justify will be used for publicity purposes. The CHAIRMAN. Will you also include such a statement? Mr. CAWLEY. Mr. Nelson indicated that he would have such a statement placed in the record. It will appear following his testimony on that subject. Mr. DITTER. The number of personnel and the amount. Mr. CAWLEY. Yes; that will be included in the same schedule. THURSDAY, JUNE 18, 1942. SMALLER WAR PLANTS CORPORATION STATEMENT OF PHILIP F. MAGUIRE The CHAIRMAN. Mr. Maguire, we have before. us an estimate just received from the Bureau of the Budget, contained in Document No. 801, for $150,000,000, to enable the Secretary of the Treasury to make payments for capital stock of the Smaller War Plants Corporation, in accordance with the provision of section 4 (b) of the act of June 11, 1942 (Public Law 603), to remain available until July 1, 1943. In the first place, let me ask you if the set-up of that organization has been completed? Mr. MAGUIRE. No; it has not. The CHAIRMAN. As yet there have been no appointments; you have not yet had time to develop this Corporation? Mr. MAGUIRE. No; we have not. The CHAIRMAN. Will you give us a statement with reference to it? Mr. MAGUIRE. The act passed Congress after the budget of the War Production Board had been approved by the Bureau of the Budget and sent to this committee. It is my understanding that they have sent to you now a supplemental estimate for operation of the corporation and for administrative funds for the performance of the functions that the act authorizes. By and large the functions that the act authorizes have been performed to some degree by the War Production Board heretofore. The CHAIRMAN. Extending over what period? Mr. MAGUIRE. Beginning with last September when the President, by Executive order, created the Division of Contract Distribution in the War Production Board. The contract distribution staff was set up at that time and has continued to operate, first within the Office of Production Management, and subsequently within the War Production Board. It was broken up, to some extent, with the creation of the War Production Board; the Bureau of Finance was created, about which Mr. Knowlson testified to some extent today, and the Contract Distribution Service itself was transferred to the Division of Production. The CHAIRMAN. If funds are provided when do you expect the organization to become effective? Mr. MAGUIRE. I think the appointment of the chairman and other members of the Board of Directors, will be made within the next 2 or 3 days and that the organization of it will start immediately. Mr. TABER. From what divisions do you expect this $5,000,000 that the estimate is reduced to be subtracted from? Mr. MAGUIRE. From the Division of Industrial Operations, that is, the Bureau of Finance within the Division of Industrial Operations; and from the Contract Distribution Branch of the Production Division. Mr. TABER. And that group will be transferred over to this corporation? Mr. MAGUIRE. That is right, together with a number of people rom the field service. Mr. TABER. From the field service of the Industry Division? Mr. TABER. And these people who have been operating and who are familiar with the industry will continue in charge of that, because of their knowledge of the situation, or will there be an entirely new set-up? Mr. MAGUIRE. No; there will not be an entirely new set-up, of necessity. However, I think Mr. Nelson plans, when he appoints the board of Directors to this corporation, to give them rather broad delegation of authority and will expect them to use discretion in either keeping or pulling around them the most able people they can get. His first thought in the appointment of the board of directors. is going to be to get people who are entirely sympathetic with the objectives of the legislation, and who are able, because of their experience and background, to do something about the problem that is involved. The CHAIRMAN. I notice in the estimate that allowance is made of $7,500,000 which will be used to expend for services, and so forth. Can you give us a rough estimate as to what the probable expenditures on this part will be? Mr. MAGUIRE. It is most difficult to do that now since actually no firm organization decisions have been made. I can tell you, however, that under the legislation we acquire responsibility for two functions that we have not had before. One is direct contracting by the Smaller War Plants Corporation for the purpose of subcontracting to smaller plants. We have not done that before. The other function is fiscal, through which the corporation will actually make loans. We have never done that before. Performance of those functions will probably require some expansion of personnel. The President has therefore suggested that a reduction of $4,921,000 be made in the W. P. B.'s budget and has recommended that $7,500,000 be authorized out of the $150,000,000 for administrative expenses, or an increase of roughly $2,500,000. The CHAIRMAN. Will you supplement your testimony with a sort of broad estimate or break-down of that $7,500,000, and also include a summary in the record? Mr. MAGUIRE. Yes; I will be glad to do that. (The statement requested follows:) 73546-42-pt. 2——30 Amount Number Amount Number Amount Adjustments for Smaller War Plants Corporation estimate-Summary by object or expenditure Items included in esti mate for some of the Net estimate for War Estimate recommended by the President for the Smaller War Plants Corporation, 1943 1, 145, 020 3, 621 9,838, 200 233 770, 680 595 1,868, 820 250 742, 160 Net requested appropriation for administrative expenses of War Production Board Net Perested appropriatton for administrative expenses of Smaller War Plants Corporation 4, 194, 307 4, 194, 307 5,000 60,000 199,000 180,090 21, 000 12, 303 6, 201,000 33,000 2,061, 774 833, 860 1, 331, 320 808, 461 19, 921, 455 48, 024, 845 600,000 48, 624, 845 6, 151, 644 60,000 1,262, 000 7,189, 240 200, 800 17,500,000 |