(Earlier hearings are contained in Parts 10 to 16 of hearings entitled "Problems of Contract Termination,” and in Parts 1 to 15 entitled "Mobilization and Demobilization Problems") HEARINGS BEFORE A SUBCOMMITTEE OF THE U.S. Congress. Senate, THE LIBRARY OF COMMITTEE ON MILITARY AFFAIRS SERIAL UNITED STATES SENATE SEVENTY-EIGHTH CONGRESS SECOND SESSION ON Copy... S. 1478, S. 1609, S. 1680, S. 1775, S. 1794, S. 1803, PART 16 UTILIZATION AND DISPOSITION OF SURPLUS WAR PROPERTY APPENDIX: LETTERS AND STATEMENTS-AGRICULTURAL, 98534 Printed for the use of the Committee on Military Affairs UNITED STATES WASHINGTON: 1944 COMMITTEE ON MILITARY AFFAIRS ROBERT R. REYNOLDS, North Carolina, Chairman ELBERT D. THOMAS, Utah WARREN R. AUSTIN, Vermont CHAPMAN REVERCOMB, West Virginia MARGUERITE E. WATTS, Clerk WAR CONTRACTS SUBCOMMITTEE CHAPMAN REVERCOMB, West Virginia HARRY S. TRUMAN, Missouri Text of a letter on educational uses of surplus war property, which was addressed by the War Contracts Subcommittee to educational organiza- Replies from State and local organizations (arranged by States) Miscellaneous letters and statements on the subject of utilization of surplus 1236 MOBILIZATION AND DEMOBILIZATION PROBLEMS APPENDIX MISCELLANEOUS LETTERS AND STATEMENTS ON THE GENERAL SUBJECT OF DISPOSAL OF SURPLUS WAR PROPERTY PROPOSED POLICY FOR DISPOSITION OF MACHINE TOOLS (By the planning committee, National Machine Tool Builders' Association, as amended March 3, 1944) When the war ends the Government will have a large surplus of relatively new machine tools which will be superior in accuracy and productivity to many machines now used in Government arsenals and in private industry. The first step, obviously, is to give the armed service ample opportunity to set aside, as insurance against a future emergency, plants, arsenals, yards, and a strategic reserve of machine tools, jigs, fixtures, cutting tools, and gages. This war has proven that superiority in the industrial output of war materials is an essential requirement for victory. The maintenance of adequate capacity in time of peace is the only way to avoid a desperate emergency if war should break out. The machine-tool industry is determined that it shall never again be accused of being a bottleneck in a war program. It follows that no Government-owned machine tools should be released until the head of the branch of the services that holds it certifies that it will never be needed for the safety of the Nation. In the meantime, the manufacturers who have converted their plants from peacetime products to the manufacture of war products are intensely interested in making the reverse shift at the proper time as quickly and as smoothly as possible, in order to maintain employment. Machines purchased by the Government since January 1, 1939, should come under this plan either (1) when and if the services decide that certain plants or certain machines are no longer needed; or (2) the lessee or contractor using the Government-owned machine elects to purchase the quipment he has or part of it by exercising his option. If contractors are to buy any machine tools from the Government for use in conversion to the production of their peacetime products, they must know as quickly as possible 1. What machines they may buy. 2. When the machines will be delivered. 3. What the price will be, and when they may take title. In order to have the least amount of unemployment between the end of war production and the beginning of peacetime operation, the Government should be in position to give prompt answers to these questions. For the good of government, industry, and labor it is desirable that there should be the smoothest possible blending between the cessation of wartime production and the beginning of peacetime activities. It must be kept in mind that if manufacturers cannot get satisfactory answers at an early date, they must, in self-defense, place orders for new machine tools that will be needed for reconversion for the quick employment of labor and the early production of their peacetime products. It should be possible for the contractor who is using Government-owned machines, to buy the ones he knows he desires to retain, even if he continues to operate them on war material for some time to come. The Government should assume responsibility for removing from the contractor's floor space, as promptly as possible after the cutting back or final termination of contract, all Government-owned machines and other equipment which is |