Mr. KNUDSEN. I think the Government contracts cover that. General BURNS. By and large, we will advance 30 percent of the contracts. Mr. TABER. And as you go along, you will make payments besides that? General BURNS. Yes, sir. Mr. RABAUT. Mr. Chairman, a great many questions both on and off the record have been asked of Mr. Knudsen-questions which should not have been put to him at all. Mr. Knudsen is a production manager. His name is dynamic in my city of Detroit, and for many months it has been dynamic throughout the country. He is a gogetter of the first rank. He has said what his job is. His job is to have these things produced, and get them off the line. If you will leave him alone, he will get them off the line. The Ford Motor Car Co. knows how efficiently he put products off their line, and General Motors salutes his ability for production in their plants. Everyone in the United States is riding around with their feet in Knudsen's product. The whole of them are riding around with Knudsen, and the world will be riding with him soon. I am happy, as a Michigan Representative, to pay this tribute to him, in the record. Mr. LUDLOW. In line with Mr. Rabaut's observation, I want to ask Mr. Knudsen, who is in charge of production, whether the units of production are coming off of the line as rapidly as you expected? Mr. KNUDSEN. We are going ahead with the tooling all right. We started to make tools last fall, and it will take a good deal of time to make them. Mr. LUDLOW. Is the program going on as well as you would like? Mr. KNUDSEN. I would not say I am satisfied, because I would never be that. Mr. LUDLOW. As Mr. Johnson observed awhile ago, nobody knows what will come out of this situation. There may be peace within 6 months. Is there a straight-out cancelation clause in the contracts? Mr. KNUDSEN. Yes, sir; I am sure there is. PERSONNEL OF WAR DEPARTMENT FACILITIES BOARD Mr. POWERS. Mr. Chairman, Mr. Knudsen mentioned during his testimony the setting up of a new board to ascertain just what facilities are needed under this bill. Might I ask that at this point in the record there be inserted the names of the members of the board which is set up or is to be set up? Mr. WOODRUM. Yes; it is a War Department board, is it not? Mr. POWERS. Just insert it in the record. (The statement requested is as follows:) The War Department Facilities Board consists of the following officers: Brig. Gen. Charles T. Harris, Ordnance (or an alternate designated by him). Brig. Gen. Thomas M. Robins, Corps of Engineers (or an alternate designated by him). Brig. Gen. Eugene Reybold, A. C. of S. (or an alternate designated by him) by agreement. Brig. Gen. Oliver P. Echols, A. C. (or an alternate designated by him). Brig. Gen. Brehon B. Somervell, Quartermaster Corps (or an alternate designated by him). Lt. Col. Theron D. Weaver, Corps of Engineers, O. A. S. W. Mr. SNYDER. Mr. Knudson, you have a Site Board now, have you not? Mr. KNUDSEN. The Army and Navy have a Site Board. Mr. SNYDER. Do these sites come to you or are they settled before they come to you? Mr. KNUDSEN. They come to me to be approved finally. Mr. WOODRUM. Mr. Knudson, is it very important to get this matter settled at the earliest possible moment? Mr. KNUDSEN. Yes, sir. Mr. WOODRUM. Days count, do they not? Mr. KNUDSEN. Yes, sir. Mr. WOODRUM. Thank you very much for coming up, Mr. Knudsen. ORDNANCE AND ORDNANCE STORES Now, Mr. Smith, will you take this first category of ordnance and ordnance stores, $1,343,000,000? Can you give us, either on or off the record, any kind of a break-down as between the different items in that category? (Off the record discussion.) Mr. TABER. Does each of these items represent a request of the United States Government by the British? Colonel AURAND. Yes, sir. Mr. TABER. Within what time would you expect deliveries to commence on most of these items? Colonel AURAND. My answer is that we can begin deliveries under the $1,300,000,000 limitation just as soon as the administration sees fit, as a matter of national policy, to commence those deliveries. Mr. TABER. And that would apply to almost every item that is contained in this Army set-up? Colonel AURAND. Yes, sir. Mr. TABER. You would not want to answer for the record within what time you thought you could complete the major part of these expenditures? (Off the record discussion.) Mr. TABER. How much of these items will require considerable advance payments so as to permit the manufacturer to procure his material and that sort of thing to go on with the job? Colonel AURAND. I think they will have to be completely financed. for the fiscal year 1942. Mr. TABER. That is, there will not be any substantial items that would hang over beyond that, as far as financing them goes? Colonel AURAND. That is correct, sir. FRIDAY, MARCH 14, 1941. Mr. WOODRUM. We will take up the item of Ordnance and Ordnance Stores as it applies to the Navy, and we will ask you, Commander, to give us a break-down of these items. (Off the record discussion.) Mr. LUDLOW. What will be the dollar volume of this expenditure which would not be usable for our own Navy, approximately? Commander TAWRESEY. About 12 or 13 million dollars. Mr. DITTER. Out of how much? Commander TAWRESEY. Out of the total. Mr. TABER. How much of that can go right into our own facilities? The small item certainly can, can it not? Commander TAWRESEY. Yes, sir. Mr. TABER. Of the items of ordnance that are to be procured by the Navy Department, within what time can deliveries begin to be made under orders that might be placed? Commander TAWRESEY. Deliveries can begin immediately, sir. The Navy is in exactly the same situation as the Army in that respect. Mr. TABER. Within what time can they be completed? Commander TAWRESEY. It is contemplated that they would be completed by the end of the fiscal year 1942. AIRCRAFT AND AERONAUTICAL MATERIAL Mr. WOODRUM. Aircraft and aeronautical material, including engines, spare parts, and accesories. Mr. SMITH. That is split between the Army and the Navy. (Off the record discussion.) Mr. TABER. You said in many cases you could begin delivery of items specified immediately. Colonel AURAND. In some cases; not many of them. Mr. TABER. Would you give us an idea when you could begin delivery? Colonel AURAND. In a relatively short time. Mr. TABER. Can you tell us that generally a substantial part of these items can be delivered Colonel AURAND. I can say that in case of aircraft items we need the entire amount of money for expenditure during the fiscal year 1942. Mr. TABER. You mean by that you will have to have advanced payments to take care of procuring the material. Colonel AURAND. And payments on contracts as deliveries take place. Mr. TABER. So that all of this would be required in 1942? Mr. LUDLOW. Does this involve the acquisition of any land? TANKS, ARMORED CARS, TRUCKS Mr. WOODRUM. Tanks, armored cars, automobiles, trucks, and other automotive vehicles, spare parts and accessories. (Off record discussion.) Mr. DITTER. Within what time do you need this money? Colonel AURAND. At once. VESSELS AND OTHER WATERCRAFT Mr. WOODRUM. Vessels, ships, boats, and other watercraft, and equipage supplies, materials, spare parts, and accessories. (Off the record discussion.) Mr. DITTER. Are there any facilities in connection with that item? Commander TAWRESEY. Yes, sir. Mr. DITTER. How many idle ways do we have at the present time? Commander TAWRESEY. I cannot answer that. Mr. DITTER. Is the work to be done at Government or private yards? Commander TAWRESEY. So far as I know, at private yards. Commander TAWRESEY. Yes. Mr. LUDLOW. Is all of this equipment standard equipment for our own Navy? Commander TAWRESEY. The same type that we use in our own Navy, yes. Mr. TABER. Now the part of this item of $629,000,000 for vessels, ships, boats, and other water craft is in this bill belongs to the Navy. Within what time can you begin to get deliveries on those? Commander TAWRESEY. You mean, Mr. Taber, we can begin to get deliveries of those we propose to acquire here, or begin to get delivery for somebody else? Mr. TABER. Can you begin to make deliveries on this proposition? Commander TAWRESEY. We can begin immediately. Mr. TABER. And within what time will you need the last dollars that come to the Navy under it? Commander TAWRESEY. We need it all in the fiscal year 1942. Commander TAWRESEY. Yes, sir. Mr. TABER. Now, have the British requested each of those items. that are involved here? Commander TAWRESEY. Yes, sir. Mr. TABER. Does that same thing apply to the aircraft figure; have the British requested each of those items? Commander TAWRESEY. Yes, sir. Mr. TABER. And, Colonel Aurand, as to the tanks and the aircraft that are coming through the Army; have the British requested each of those items? Colonel AURAND. Yes, sir. Mr. WOODRUM. Have you an Army item on this, Colonel? Mr. SMITH. I will. (The discussion which followed was off the record.) Mr. TABER. As to the part of the $629,000,000 that will go to the Maritime Commission: Each of these items that are involved has been requested by the British? Mr. SMITH. Yes. Mr. TABER. Within what time do you expect that money to begin to be required? Mr. SMITH. It is expected that this money will be needed in 1942. MISCELLANEOUS MILITARY EQUIPMENT Mr. WOODRUM. Now, what about the item for miscellaneous military equipment, supplies, materials, $260,000,000? Colonel AURAND. Mr. Chairman, there are four pages here of detailed items in this miscellaneous military equipment. (Discussion which followed was off the record.) Mr. WOODRUM. Now, you can get all of that equipment and furnish it to them in the time they say they want it? Colonel AURAND. Yes, sir; this equipment can, in general, be obtained in the time requested. Mr. WOODRUM. And can be had by when? Colonel AURAND. The funds will be required in the fiscal year 1942. Mr. WOODRUM. And the deliveries can be made within that time? Colonel AURAND. Yes, sir. (Discussion which followed was off the record.) FACILITIES AND EQUIPMENT FOR PRODUCTION Mr. WOODRUM. Now tell us about the next item "Facilities and equipment for the manufacture or production of defense articles," $752,000,000. Mr. SMITH. You have had a good deal of information on that, but let me give you the break-down in the broad categories, as a matter of review. (Discussion which followed was off the record.) Mr. TABER. Within what time will you require all of this money? Mr. SMITH. I Would say definitely in 1942. General BURNS. That is right. Mr. TABER. Now let me ask you a general question to apply to every one of these items: How much of this money is going to be required for the construction of houses, if any? Mr. SMITH. None of it. Mr. TABER. None of the money is for houses or housing facilities? Mr. SMITH. No; just for plants. You meant for dwellings? Mr. TABER. For dwelling houses or housing facilities for people. Mr. SMITH. None of it. AGRICULTURAL, INDUSTRIAL, AND OTHER COMMODITIES (See p. 64) Mr. WOODRUM. Now take up the next item for "Agricultural, industrial, and other commodities and articles," $1,350,000,000. Mr. SMITH. The next item groups several things. (Discussion which followed was off the record.) Mr. CANNON. What agricultural products are being considered for purchase under this act? Mr. SMITH. Well, as I understand it, there is cheese, dried eggs, milk, pork, and canned goods of various sorts and numerous other items. Mr. CANNON. Is any of the money to be spent for agricultural products produced outside of the United States? Mr. SMITH. I do not know of any, I am sure. Mr. CANNON. Is it your impression that all of the funds from this seven billion to be spent for agricultural products, will be spent in the United States? |