register the needs of small business, and I hope they will not get the idea that we are a disposal agency. We also have priority rights, but that priority will only be exercised where it will be for the interest of the person helped, but we can still register the needs of small business and we hope to be able to help and give service to them, without the thought that we are a disposal agency, and also to keep up the priorities, but the priorities would only be exercised where it will be for the interest of the persons we are trying to help. But the Board has seen that we get preferences, and as that applies to us we have worked out a system of taking care of our requirements in those 102 offices and the disposal agency in our region. I think it is the only method that now exists that will provide small users, small manufacturers and businessmen and others in getting surplus property. Mr. TABER. I know that down to the time of the passage of the Surplus Property Act it was possible for small business people to get something once in a while out of surplus property, either out of the Army or the Navy or the Treasury, but that since then it has been practically impossible to get anything. It is much worse than it was before. Mr. LAMB. That is true, but our system has not gone into effect yet. Mr. MAVERICK. I think it is always bad taste for one Government agency to reflect on any other Government agency. But I wish to emphasize the state of affairs which you say exists has nothing to do with the Smaller War Plants Corporation. Now, when the Surplus Property Act was created it had an Administrator and then a Board, and there was considerable confusion. Then the Board took over and final regulations have not been drawn yet by them. It has only been because of the difficulties faced by the new Surplus Board but in any event it has absolutely nothing to do with us. We have no power to possibly get into the situation. We have not any power to do anything. Mr. TABER. Is there anybody with power to do anything? Mr. MAVERICK. I think so; yes. Mr. TABER. Who? Mr. MAVERICK. The Surplus Property Board has power, and we have a considerable number of powers, and when the regulations of the Surplus Property Board are adopted they will be a great benefit to small business. We have the only system which will provide for distribution. It is under a regulation of the Board that we function in the distribution throughout the country. Mr. TABER. If we get into this loan business, with all these other regulations and operations, small businessmen will be absolutely under the control of Washington. A small businessman will have to go to Washington every time he wants to do anything. Is not that right? Mr. MAVERICK. Mr. Congressman, I respectfully answer, no, sir. That is because, as I explained, we are not a regulatory or nugatory body we are supposed to help people and do help people. He does not have to run to Washington because we have 102 district offices, and with the exception of Texas, Montana, and places like that, they can go to the office nearest him and get information that they would get in Washington. The nature of our occupation is not in any sense to dominate, regulate, or in any way interfere with a man's business, but to be helpful to him in a financial way in cooperation with the banks, and not to interfere with the banks, and give such concerns the technical advice of the service and everything that has been granted to farmers for 50 years. Plus that help on surplus property. Mr. TABER. You do not have anything to do with handling stuff for farmers. Mr. MAVERICK. No; but the point is the farmers have had technical advice for 50 years, and increasing amounts of it in the last 2 decades, and we have the best agricultural system in the world, a system that gives aid to the farmers. And I say to the world, the little businessman should have as many rights as the farmer has. The S. W. P. C. have never attempted to dominate any business concern. Your question is answered by our record. Our record shows that we do not dominate or attempt to dominate the businessman. We attempt to help them in a legal manner, and we do help them, and we believe in, and promote, the free enterprise system. Mr. TABER. How big are the concerns that you are operating with? Mr. MAVERICK. You mean that we assist, do you not? Mr. TABER. I mean that you have on your list of clients. Mr. MAVERICK. Usually we do not help concerns with over 500 people employed. We hardly ever go over that. But we also try to make it as flexible as we can. So we help any local regional industry if it is not a subsidiary of a big corporation at some place at a far distant point. Mr. TABER. How far down the line do you go? Mr. MAVERICK. One man, or woman. Actually I suppose we made a considerable number of loans where the number of employees was not in excess of five or six people. We have made arrangements for people with as few as three employees. LOAN PROGRAM ACCOMPLISHMENTS Mr. LUDLOW. Will you put in the record the table that you referred to a while ago? Mr. MAVERICK. Yes, we would be glad to put that in the record. (The table referred to is as follows:) Factual accomplishments on loan program; period, September 1942-March Factual accomplishments on loan program; period, September 1942-March 1945-Continued G. Monthly income (based on average of January, February, and March, 1945): Monthly rental, leases.. Total. H. Losses on loans: On June 30, 1944, the Corporation had disbursed $40,276,000, out of However, recoveries have been greater than anticipated and compa- Ratio of loss to total disbursements on all Smaller War Plants Corpora- I. Largest loan (maximum outstanding amount allowable, $1,089,165). 1 Net after cancelations, modifications, etc. $256, 247, 702 19,833, 958 1 276, 081, 660 121, 656, 031 28, 480, 130 150, 136, 161 15, 508, 182 165, 644, 343 80, 506, 326 19, 458, 394 1, 239, 961 51,963 2,031,918 103, 288, 562 102,000 221,400 323,400 623, 605 4,261, 950 250 Size of financial assistance authorized, cumulative through Mar. 31, 1945 NOTE.-63 percent of the total authorized was for $25,000 or less, 75.2 percent was for $50,000 or less, 91.1 percent was for $200,000 or less, with only 8.9 percent of the loans over $200,000. 899 100.0 $22, 380, 236 3, 733 100.0 $341, 760, 977 126 14 207 23. 1 422, 067 499 1,591, 853 13.4 1,738, 293 613 16.4 5, 004, 449 289 32. 1 4,865, 409 1,240 33.2 23, 240, 151 170 18.9 6, 288, 598 17, 287, 947 25, 477, 391 35, 799, 181 25, 151, 304 18, 022, 220 17,382, 709 SATURDAY, APRIL 28, 1945. NEWS ARTICLES ON SPOT RECONVERSION PLAN, ETC. Mr. MAVERICK. Mr. Chairman, is it all right for me to say a few words at this time? Mr. CANNON. Yes; we will be glad to have you do so. Mr. MAVERICK. I want to start out by citing an example of the things that I was mentioning to Mr. Woodrum yesterday. During the morning I read the newspapers, and usually the commercial journals also. I am going to read some headlines, and ask to insert one or two brief writings in the record here. I am not going to clutter up the record too much. The news in the papers this morning from an economic viewpoint is extremely important and concerns the Smaller War Plants Corporation and our work to a very large extent. Now, here is a headline in the Saturday, April 28, 1945, issue of the Journal of Commerce, and the headline says: "Restoration of 'spot plan' leads adjustment to one-war basis." Then it says: "Initial W. P. B. move lifts curbs on communications industry," and so forth. I was before another committee just before now and it is covered by the news. In this other headline in this same Journal it says: Small business assured of tools. Maverick reveals Smaller War Plants Corporation program for financial aid where necessary. I would like to include that article in the record. The CHAIRMAN. Without objection, it may be included in the record. (The article referred to is as follows:) [Bureau of Journal of Commerce] SMALL BUSINESS ASSURED OF TOOLS MAVERICK REVEALS SMALLER WAR PLANTS CORPORATION PROGRAM FOR FINANCIAL AID WHERE NECESSARY WASHINGTON, April 27.-Declaring that "there will be enough surplus tools for all," Maury Maverick, Chairman of the Smaller War Plants Corporation, today outlined what his organization proposes to do to help small business gets its share. Mr. Maverick told the Senate Small Business Surplus Property Subcommittee that Smaller War Plants Corporation will help small business finance purchases of surplus machine tools, buy the tools and lease them to small business, and also buy the tools for resale to small business. FAVORS SMALL BUSINESS He said that Smaller War Plants Corporation district offices already are recording the wants of small-business proprietors for surplus machinery and machine tools. Later Smaller War Plants Corporation will conduct a survey of all small metal-working plants to determine the total wants, he added. In order to match stated requirements with available supplies, Smaller War Plants Corporation will put a representative in each office of the Reconstruction Finance Corporation, which is the disposal agent for most machine tools, Mr. Maverick said. He expressed the opinion that a Surplus Property Board regulation giving small business some preference in the purchase of surplus tools is needed. Meanwhile, he added, Smaller War Plants Corporation will exercise its priority rights in behalf of small business. Mr. Maverick said Smaller War Plants Corporation's board of directors has authorized its field agents to help small business to buy surplus machine tools at 15 percent down, with the balance to be amortized in 5 years at an interest rate of 4 percent on the unpaid balance. Experience may show a need for more liberal terms, he said. The directors also are extending Smaller War Plants Corporation authority to lease surplus tools to small business at 12 percent per month with option to buy. WILL FOSTER ENTERPRISE He said these terms would "foster new enterprise" and also "stimulate the acquisition by small plants of many tools which they may be hesitant to buy outright as they convert from war to peace." Mr. Maverick pointed out that the Surplus Property Act authorizes Smaller War Plants Corporation to help small business finance "enterprises in connnection with the acquisition, conversion, and operation of plants and facilities which have been determined to be surplus property." He declared that "facilities" was a broad enough term to include machines, machine tools, and equipment. Mr. MAVERICK. Then I want to take up the Wall Street Journal of Saturday, April 28, 1945, and it says: "Foreign merchants.-As war speeds up they flood mails seeking trade with United States firms," and so forth. This is the break-through on the matter of foreign trade in which we are interested as well as anyone else. Then in the Journal of Commerce of Friday, April 27, one of the headlines says: "War Production Board establishes 1945-46 production goal for one-front war effort at $48,000,000,000.” Another headline mentions reconversion pricing of the O. P. A. Here's a headline in the Baltimore Sun of April 28, 1945, which says "Civilian goods get 'go' sign." And the subheading says: "W. P. B. makes spot reconversion plan Nation-wide." The Washington Post had the original article in it that went to all of the press associations. It says: "W. P. B. restores 'spot plan' for reconversion," which entire article I would like to put into the record. (The article referred to is as follows:) WAR PRODUCTION BOARD RESTORES "SPOT PLAN" FOR RECONVERSION (By Fred Brandeis) The War Production Board yesterday took another major step toward reconversion by restoring throughout the Nation its spot authorization plan for civilian production. Under the plan, developed last August by Donald M. Nelson, manufacturers who can show their regional War Production Board offices that they have machinery and can obtain labor not needed for war work, will receive permission to resume making civilian goods. When munitions requirements were suddenly boosted after the German push last December, the plan was suspended in 184 group 1 and 2 tight labor areas, which included most of the country's industrial centers. WILL ABSORB SLACK The program was restored, War Production Board chairman J. A. Krug said, as part of the Board's adjustment to reduced military demands, and specifically as a means of preventing the idleness of facilities and manpower released by contract cancelations. While controlled metals-steel, copper, and aluminum-will not become immediately available for allotment to authorized civilian manufacturers, as was intended in the original spot plan, War Production Board noted that, “idle and excess" stocks in inventory may be used for authorized production. In addi |