[Seventeenth Progress Report, February 1-March 31 1945]
[From the U.S. Government Publishing Office, www.gpo.gov]

SMALLER WAR PLANTS CORPORATION
SEVENTEENTH
Progress Report
February 1-March 31
1945
LETTER OF SUBMITTAL
Office of the Chairman,
War Production Board, Washington, D. C., April 19,1945. My Dear Mr. President:
Pursuant to Section 5 of the Act approved June n, 1942 (Public Law 603, 77th Congress), I have the honor of submitting herewith the seventeenth report on the operations of the Chairman of the War Production Board under that Act. For this purpose I am transmitting a report to me from Maury Maverick, Chairman of the Board of Directors and General Manager of the Smaller War Plants Corporation. This report covers the period from February 1, through March 31, 1945.
Respectfully,

J. A. Krug.
The President of the United States,
The White House, Washington, D. C.
641816—45---------1
CONTENTS
Page
Letter of Submittal................................................................ I
Letter of Transmittal.............................................................. n
I.	Contracts for Small Plants Reach New Peaks............................... 1
II.	Increasing Financial Aid to Small Business................................ 3
III.	Materials for Small Plants After VE-Day................................... 5
IV.	Long-term Credit for Small Business....................................    7
V.	Machine Tool Survey as a Part of SWPC Surplus Property Disposal Program...	12
EXHIBITS
I.	Distribution of Prime Contracts Awarded with the Assistance of Smaller War Plants Corporation, During February-March 1945............................... 15
II.	Prime Contracts Taken by the Smaller War Plants Corporation, February 1, 1945, Through March 31,1945................................................... 16
III.	Subcontracts Placed by the Smaller War Plants Corporation, February 1,1945, Through March 31, 1945......................................................... 16
IV.	Number and Dollar Value of Contracts Awarded by Government Procurement Agencies, Shown by Months..................................................     18
SEVENTEENTH BIMONTHLY REPORT OF THE SMALLER WAR PLANTS CORPORATION
February 1 through March 31, 1945
CONTRACTS FOR SMALL PLANTS REACH NEW PEAKS
During the past bimonthly period, prime contracts for small plants reached further all-time peaks, both in number and in value. Some 5,658 contract awards, obtained with the assistance of the Smaller War Plants Corporation, resulted in prime contracts for small plants amounting to $629,954,458, an increase of 38 percent over the previous 2-month period, and 53 percent over the February-March record of a year ago. These figures do not include subcontracts obtained for small plants by the Corporation.
About one-half of the prime contracts obtained during the bimonthly period covered by this report went to small plants employing less than 250 wage earners. Only 3 percent of the dollar value of the contracts obtained went to plants employing over 500 wage earners.
This peak record of contracts for small plants was obtained on production of general war matériel and was not due to any special programs. As a matter of fact, the critical production programs, such as heavy ammunition, heavy tires, heavy trucks, heavy guns, and superbombers, that went to the fore during this period offered only limited opportunities for small plant participation.
Nevertheless, despite the present composition of the critical war production programs, small plant participation in the general production of war materiel reached an all-time high.
Moreover, while the increase was substantial over the corresponding bimonthly period a year ago, the average contract value has remained about the same. During the present 2-month period, the average small plant contract amounted to $111,339, as compared with $112,048 for the previous period, and $101,312 for the similar period a year ago.
Therefore, this increase in contracts obtained with the assistance of the Smaller War Plants Corporation resulted in a wider distribution of orders to more small plants.
SWPC Has Taken Some Prime Contracts for Distribution Among Small Plants
Generally the Corporation tries to spread the available war business by having the procurement agencies place prime contracts directly with qualified small firms designated by the Corporation. However, the Corporation has found it desirable on certain procurements to take the prime contract itself, and to place subcontracts with small firms it knows to be capable of manufacturing the particular product. 'This procedure is resorted to only if the procurement would not otherwise go to small plants.
During the past two months the Corporation announced its intention to undertake two prime contracts in its own name. Negotiations were completed with the procurement agency and contracts signed on one of these—for concrete practice bombs. On the second contract, for prefabricated houses for Great Britain, arrangements were finally made to have small plants designated by the Corporation share in the procurement. It was not necessary, therefore, for the Corporation to assume the prime contract directly.
Concrete Practice Bombs
The prime contraét for about one million concrete practice bombs was negotiated with the full cooperation of the Army Ordnance. And as a result of the Corporation’s undertaking this prime contract for a total value of $4,300,000 it will be possible for 25 small firms, under a subcontracting arrangement with the Corporation, to produce these bombs. Thus little plants get business which otherwise might have gone entirely to four large firms.
The 25 small firms that will receive subcontracts on this prime were without any war business and are in an industry that is now unable to do any civilian work due to restrictions on materials. They were, therefore, in dire need of work in order to remain in business. Subcontracts have already been placed with 13 small firms, and the Corporation is arranging to place the balance of the procurement with 12 additional firms located adjacent to the airfields where the practice bombs are to be used.
Prefabricated Houses
In the case of the prefabricated houses, the .Federal Public Housing Authority sought production of 30,000 of these units for shipment to Great Britain. After preliminary negotiation with a procurement agency, the Smaller War Plants Corporation announced its intention to assume a prime contract for 15,000 houses. This was done in order to assure that a number of qualified small firms would receive their share of this business.
After the Corporation had announced its intention to assume this prime contract, further negotiation with the Federal Public Housing Authority resulted in that agency’s agreeing to accept the small firms designated by the Corporation as qualified producers. Under this negotiated arrangement, some 20 small firms designated by the Smaller War Plants Corporation will receive orders for over one-half of the number of houses required. The original procurement was changed to 22,500 units, and the small firms designated by the Corporation will receive prime contracts for a total of 12,300 houses.
PRIME CONTRACTS
NUMBER AND VALUE AWARDED WITH SWPG ASSISTANCE
II
INCREASING FINANCIAL AID TO SMALL BUSINESS
X
Financial, aid granted to small plants by the Smaller War Plants Corporation during the past 2-month period established a new record.
Applications approved by the Corporation amounted to $65,226,415, an increase of $23,271,002, or 55, percent over the loans and leases in December and January, when approved authorizations totalled $41,955,413.
One of the important reasons for the substantial increase in Smaller War Plants Corporation loans and leases to small business is the increasing cooperation of private banks in our loans.
Such cooperation in our loans is illustrated by the action of the recently organized Bankers Pool in an eastern state. The Pool frequently requests the Smaller War Plants Corporation to make loans which the private banks, individually or collectively, are unable to make.
A further illustration of the cooperative action by private banks and the Smaller War Plants Corporation in providing small plants with adequate financing is shown by the increasing number of loans made jointly by the
banks and the Smaller War Plants Corporation. During the past period the value of such joint loans was $28,619,712, an increase of $12,625,471, or 80 percent, over the comparable figure of $15,994,241 in the previous bimonthly period.
When loans are made jointly by a bank and the Smaller War Plants Corporation, the entire transaction may be handled by the bank but the Smaller War Plants Corporation agrees to purchase a specified part or all of the loan upon demand of the bank. The interest rate payable on that portion of the loan guaranteed by the Smaller War Plants Corporation is 4 percent, and the rate on the portion not guaranteed is 6 percent. All the interest is paid to the bank, but the bank pays to the Smaller War Plants Corporation a commitment fee, varying from % of 1 percent to 1 percent, depending upon the percentage of the loan guaranteed. The bank, therefore, receives a net interest rate of 3 percent or more on a loan guaranteed by an agency of the United States-Government.
In commenting upon the advantages of such loans, a bank in a southern state remarked, “This is better than bonds.” Of course small business gets a much lower interest- rate than it would ordinarily obtain, in addition to financing v^hich otherwise would not be available.
The following chart shows the steady increase in financial assistance extended by the Corporation to small business. Practically all of the loans and leases were made to facilitate war production a small proportion was for essential, civilian production.
LOANS AND LEASES
NUMBER AND VALUE OF AUTHORIZATIONS
Ill
: MATERIALS FOR SMALL PLANTS AFTER VE-DAY
About the most important immediate problem of reconversion is the distribution of materials which will be released by the cutbacks in war programs following defeat of Germany. The speed of reconversion and the reemployment of the millions of workers who will be thrown out of work by cutbacks will depend largely on how redistribution is handled. The longer the interval in which people are kept unemployed the harder it will be to attain a full production, peacetime economy. A long interval would cause savings to shrivel up, small plants to be drained of their reserves, and reconversion to be far more difficult.
Little plants must be reconverted first and must get materials quickly if the difficult readjustment period is to be shortened to a minimum. As Justice Byrnes stated in his report just published, “Small manufacturers do not usually require long tooling-up periods, thus they will be able to expand or resume production rapidly as materials and manpower become available. We must depend upon small businesses getting ready quickly and thus absorbing local unemployment if and when it develops.”
Little plants are scattered all over the United States in all the little towns, filling up the chinks and holes in the American industrial fabric. They hold together the free enterprise system. If they shrink and shrivel, free enterprise— even democracy—will leak away.
The structure of the free enterprise system must be kept strong with a vast body of vigorous small businesses. They are the substance of small-town life—of America itself.
Furthermore, only if little businesses are reconverted promptly can big business hope to return to peacetime operations on a healthy basis. Little businesses are essentially the customers of big business and only in part competitors. When little business operates, big business has a market.
Therefore, we wish to emphasize that small manufacturing businesses which are not needed in the war effort after VE-Day must be able to obtain raw materials for civilian production. It must be done promptly too, if they are to survive, and free enterprise is to be maintained.
Small Business May Be Frozen Out
At the present time, however, there are grave dangers that small plants may be “frozen out” in a possible scramble for the limited supply of released materials. The cutbacks after VE-Day will not be very large and military schedules call for much larger supplies to prosecute the war against Japan than had previously been expected. Tbe April ist Byrnes report indicates that the still tentative and uncertain post VE-Day schedules call for release of 20 percent of materials in the first three months following defeat of Germany. Subsequent increases in cutbacks will bring the rate up to 40 percent at the end of 12 months.
Big businesses may be expected to place large orders for materials as the first step in getting ready for mass production. This could easily exhaust the supply, and many small businesses may experience great difficulty, especially in the first half year in obtaining materials. Raw material mills will almost always give preference to the big buyer over the little man.
It must not be forgotten that there was a tremendous scramble for materials shortly after the end of the last war. Incidentally, this caused a violent inflation of prices. Many big firms acquired all the materials they could lay hands on, not only to have plentiful supplies bn hand for civilian production, but also to turn a speculative profit in reselling those inventories at rapidly rising prices.
Congress Has Intended That Small Business Be Protected
In the War Mobilization and Reconversion Act, Congress clearly intended that in any scramble for materials which may occur after this war, small business should not be pushed aside by the greater strength of big business. The Act specifically provides that the executive agencies, in allocating materials for nonwar production, must make available a percentage of the materials for the exclusive use of small plants. Also, that the Chairman of the Smaller War Plants Corporation must be consulted in fixing the percentage and the methods of apportioning the reserved supply among the small plants themselves.
Proposed Reconversion Plan
The War Production Board has declared its policy that small business will have adequate access to materials. Its broad program provides that after VE-Day the War Productiton Board will relax controls, first through the increased use of “spot” authorizations, secondly through the substantial discontinuance of the Controlled Materials Plan at an early date with the substitution of a simple priorities plan, and thirdly by the “open-ending” of the Controlled Materials Plan in the transition period.
The Corporation is concerned lest the operating details of this broad program do not protect little business. Provision must be made to insure supplies of materials and components for those small businesses which are unable to obtain them through regular channels.
The Smaller War Plants Corporation proposes that the following features be included in any reconversion plan in which control over distribution of materials is continued:
i.	Assistance in obtaining materials and components.
(a)	A special preference rating band for small business should be retained. This rating would rank second to military orders.
(b)	It would be extended on small business orders by the Smaller War Plants Corporation or on certifications by the Smaller War Plants Corporation to the War Production Board. It would apply only to small business concerns which have facilities and manpower available not needed in the war effort and prove that they cannot obtain their material or component requirements in a reasonable time without special rating assistance.
(c)	These ratings would be granted only to small firms who used the material in their own plants.
(d)	Applications would be completely processed in the field offices to reduce handling time.
2.	Programmed Civilian Production.
In the programming of any civilian items a special reserve of materials should be set aside for the exclusive use of small plants. The amount of materials set aside should be worked out between representatives of the Smaller War Plants Corporation and the War Production Board as required by statute.
3.	Inventory Controls.
The War Production Board should inaugurate a strict inventory control system which will prevent stockpiling and hoarding of materials and components that are in limited supply.
The plan has these great advantages: (1) its simplicity, and (2) if materials actually proved to be available in sufficient quantity to meet all the needs of small business, the operation would simply disappear. On the other hand, if sufficient materials were not available, small business would be protected, and the war agencies would, in that way, have conformed to the obvious intent of Congress.
4.	Spot Authorization.
Adoption of such a plan would not, of course, afford protection to small plants in the first quarter following VE-Day, while the Controlled Materials Plan is still in effect. Small plants could be assured of getting some share of the material available in this period by the simple procedure of setting aside definite, firm allotments for small business and making them available through the existing Spot Authorization Plan.
IV
LONG-TERM CREDIT FOR SMALL BUSINESS
Inability to obtain long-term credit has smothered small business for years. It long has threatened our free enterprise system.
Small businessmen know this handicap from personal experiences. Many have found it a stone wall against which their hopes and plans have been battered to pieces. Securities markets and other normal channels, which provide a flow of capital to big business at low interest rates,' are not available to most small 'businesses.
Ninety-day loans, even those for a year or two, and restrictive mortgages obviously do not permit long-range programs for development, improvements, new equipment and buildings, or other expansions. Worse still, operations often must be curtailed because of lack of capital.
In some cases undesirable partners and subsidies with strings attached from kindred big business offer the only way in which small business can secure capital with which to operate and expand normally.
AVERAGE INTEREST RATES ON OUTSTANDING ; FARM MORTGAGE LOANS
DIFFERENT TYPES OF LENDERS, 1910-1940
Federal Farm Loan Agencies Provide Capital to Farmers at Reduced Interest Rates
Three decades ago, farmers faced the same lack of capital and high interest rates which now confront small businessmen.
Federal land banks were established in 1916 and since then have been greatly expanded. Long-term money became available. Interest rates came down. From 1910 to 1920, interest rates to farmers on long-term loans averaged above 6 percent. From 1930 to 1940, interest rates on the same type loan averaged 4 percent.
As the cost of loans decreased, private lenders benefited from the greater solvency of farmers and their increased use of private credit. Today, as a result of federdl farm lending agencies, farmers can get long-term loans, at moderate interest rates, from both federal agencies and private lenders.
As a result, in the past decade, the share of private lenders in the farm debt has risen from 58 to 70 percent. At the same time the share held by Government agencies has fallen from 42 to 30 percent of the total.
Similar Development Needed to Create Healthy Field for Small Business
The same conditions which made long-term capital and low interest rates available to farmers well might be transplanted to the field of small business. The Smaller War Plants Corporation, for 2 years, has made loans to small plants to enable their fullest participation in war and essential civilian production. These loans were not made in competition with banks—instead bank participation always has been sought. This participation has increased steadily. Banks, particularly smaller banks, have benefited.
During the last 2 months, 48 percent of all SWPC loans were made in cooperation with banks.
Because of successful borrowing records with SWPC, many small plants now are getting credit from banks which previously refused to extend such credit. Thus, the SWPC program has meant more customers for banks. The very existence of SWPC as an available lender, together with the proved success of small business loans, has encouraged many banks to make more loans for expansion.
Will Private Lender Meet Heavy Needs of Small Business in Post-War Period?
Now that we are facing post-war problems, the financial needs of small business are already becoming greater than ever before. Many will need longer term financing to reconvert to peacetime products. Justice Byrnes urges that: “Further provisions must be made to provide loans to small business to facilitate their reconversion or resumption of civilian production.” There must be many new businesses. If these small businesses are to survive, prosper, and expand, they must have long-term credit. They are entitled to a chance to build and plan for the future, without being hampered by short-term rates or financial obligations.
Every effort of private lenders and normal financial channels to organize their resources to meet these obligations should be made. But it is doubtful whether under present restrictive banking regulations this can meet the need. Without any criticism of bankers, it is doubtful whether a long-standing hesitancy of bankers to extend longer credits to small business can be overcome quickly enough to meet the many demands which are certain to arise.
This much is evident. If we are to have full employment, full production, these financial needs must be met. If free enterprise is truly to exist, small business must be able to get money and when it needs money. This is the ■only way to guarantee to small business a fair chance to compete.
Long-Term Credit Needs Have Not Been Met by Private Banks
Actually only a relatively small amount of the total commercial bank credit goes out in the form of long-term loans. And of this, small business receives ony a fractional amount. . ■
This is shown in the figures of a special survey prepared by the Federal Reserve Board of commercial and industrial loans made by 5,362 member banks during the period April 16 to May 15, 1942. It was found that out of a total volume of loans of $2,200,000,000, long-term loans amounted to only $45,000,000, or 2 percent. And nearly all of this relatively small amount of long-term credit went either to large businesses or to a few small firms which were in very superior financial condition.
In the words of the Federal Reserve Board report, . . small firms obtain term loans (loans of over one year) only when they have a very high credit standing, and then the loans are fairly substantial in amount. For this reason, term loan rates to small borrowers are below rates on shorter paper, contrary to the usual time differential, reflecting the high selected quality of small firms that obtained term loans as compared to the bulk of small firm borrowers.” [Italics not in original.]
When Small Business Does Get Long-Term Loans It Pays High Interest Rates
When it can get a longer term loan, small business pays interest rates twice as high as those paid by large borrowers. The differences in interest rates by size of borrowers are shown in the following table for short-term and longterm loans.
Average Interest Rates on Short- and Long-Term Commercial Loans at Member Banks, by Size of Borrower, April 16—May 15, 1942
(Percent per annum)
	Loans maturing in 1 year or less	Loans maturing in over 1 year
Borrowers with assets of: Under $50,000		5-5	4.8
$50,000 to $500,000		4-5	4.3
$500,000 to $5,000,000		3.1	3.9
Over $5,000,000. /.		1.8	2.5
All borrowers		3.4	3.0
		
Source: Report of Board of Governors of Federal Reserve System, ‘ ‘Commercial and Industrial Loans at Member Banks,” April 16 to May 15, 1942, page 26.
Business Loan Insurance
One reason why banks are generally restrictive in extending long-term loans to small business is the assumption by bankers that such loans involve a high degree of risk. We have heretofore proposed one method of overcoming this obstacle. It is a governmental Business Loan Insurance program.
We propose that small business loans be insured by the Government in much the same way as small home mortgages have been insured under the FHA system. The FHA plan is a success. In spite of some initial opposition to the program, banks have now accepted it. Also, they were stimulated to a much more liberal lending policy, which in turn has effectively reduced interest rates on home mortgages. And all of this has been done without loss to the Government. The same or similar benefits are possible through a loan insurance program for small business.
Loan -insurance is not a plan to guarantee business loans. A guarantee is made on each and every loan separately. Naturally it means enormous and expensive paper work.
Insurance of loans is done in the aggregate. A small premium on each loan makes possible a fund to cover any possible losses. The banks are guaranteed against losses up to a certain aggregate amount and therefore a bank is assured by the use of reasonable discretion that it might have no losses whatever.
We would not propose to insure the full face value of all loans made by all banks—nor would such insurance be necessary. Rather, we would insure each banker to the extent of io or 20 percent of the aggregate loans made by his
bank. Backed by such insurance they will expand their operations rapidly, and that is exactly what we will need in this country.
Smaller War Plants Corporation Should Insure Up to $100,000
We do not desire authority to insure large loans. Our industrial giants can take care of themselves. But if we could insure loans up to $100,000, the position of banks—and particularly small banks throughout the country— would be greatly strengthened. This would be good business for everyone.
The question arises: Why can’t the bankers handle the problem without the benefit of insurance? One answer is that they may—and we hope that they will. SWPC has never been in competition with the banks—for after all, most of the Nation’s 14,000 banks are small businesses themselves.
This is not a Government hand-out. It will be necessary and proper to charge a small premium for this insurance coverage. But it is plain to see that one appealing feature of the plan will be its low cost of operation. A small group of people located in Washington can easily set up and operate an insurance system which will cover all of the banks in the country. Compared with setting up an organization to make individual guarantees, the cost will be small. The results will be even more satisfactory.
We propose this character of insurance for small business loans because:
(a)	It makes it possible for the small businessman to get needed funds;
(b)	He does not have to deal directly with the Government but,
(c)	He can go to his own local banker -who knows him and knows his business; and
(d)	Expansion of small business is made possible and the free enterprise activities of banks are encouraged.
V
MACHINE TOOL'SURVEY AS A PART OF SWPC SURPLUS PROPERTY DISPOSAL PROGRAM
If small independent plants are to survive in the competitive postwar world they must replace their antiquated, inefficient equipment with modern machinery. More than half of the machine tools in small metal-working plants are over 20 years old.
Machine tools equal in value to more than 20 years of normal production were bought by the Government during the war. The bulk of this vast store of modern, efficient machinery was placed in big plants and optioned to big corporations. Most small plants had to struggle along with their relatively inefficient equipment. In view of this fact, their success in participating in war production is all the more remarkable. But the competitive position of small business must be restored if it is to survive. It cannot compete with old machine tools against big business with the most modern equipment.
Conveyor Belt Between Stock of Tools and Small Plants
To help small businesses modernize their plants by acquiring the best obtainable Government-owned machine tools, the Smaller War Plants Corporation is completing plans for a program which will furnish a conveyer belt between the stock of surplus tools and small plants. For some time our Regional and District offices have been accumulating a knowledge of specific machine tool requirements of small business—slowly because their needs could not be satisfied. With the establishment of SWPC’s surplus property disposal program, acceptable to the Surplus Property Board and disposal agencies, a means of satisfaction is provided. In this procedure, the survey is an important step in the program of helping small plants find and get the particular machine tools they need to compete in the postwar economy.
Based on records of surpluses, SWPC will notify each reporting small businessman where the particular tools in which he is interested are to be found, their condition, price, and other necessary data. In addition, SWPC may lend the small businessman funds needed to acquire surplus tools and other plant equipment, or it may buy the wanted tools for resale to small business.
May Not Be Enough Surplus Tools for Everybody
Many small businessmen may be under the impression that there will be enough surplus tools for everybody. Although there are some 500,000 Government-owned tools, this belief may prove to be a dangerous delusion.
In the first place, the military services are going to retain a considerable number of machine tools after the war, for stand-by purposes and development work.
Second, big businesses hold options on Government-owned tools and may be expected to exercise those options on a substantial number of tools. It has been estimated that the number of tools retained in this manner may run as high as 200,000. And these, of course, will be the “cream of the crop,” since option holders may be expected to. purchase only those tools which they know are in good condition.
Third, some proportion of Government-owned tools may be in poor condition. Many of them have been operated seven days a week around the clock and have suffered more wear and tear during their short life than most tools receive in a decade or more of peacetime operation. In some cases, they have been poorly cared for by the private operators and have not received proper handling, greasing, or repair. In other cases, they have been inadequately stored and have deteriorated through lack of use.
Fourth, small business, itself, appears to have a great demand for these tools. It was indicated in a recent spot survey, made by the SWPC, that the average small metal-working concern in that particular area plans to purchase no less than six of these surplus machine tools. And there are some 35,000 small metalworking firms in the country.
Although the average demand may be less than our spot survey indicated, a very substantial aggregated requirement is certain. SWPC will have to help small businesses in this program on a “first-come, first-served” basis.
All of this indicates that the effective supply of surplus tools in good condition may not be as large as is widely presumed, especially in certain types of tools. And this, in turn, means that small businesses should not delay in making their needs known to SWPC, so that it can help them find what they want before the supply of good tools is exhausted.
The surplus property program of the SWPC is designed so that the demand for tools will be brought together with the supply at the disposal agency.
Program Has Four Advantages for Small Businessman
For the small businessman the plan has four distinct attractions:
(1)	The specific tool demand of a small plant can be matched against detailed supply information on particular tools, when and as the tools become available;
(2)	The small plant operator need not wade through long lists of surpluses to find wanted items;
(3)	Financing, if necessary, is available immediately in conjunction with the purchase;
(4)	And possibly most important—the application from the small businessman will be assured preferential handling.
One word of caution should be noted. Tools cannot be located for small businesses until they have been declared surplus to war needs by the owning agencies. Up to the middle of March only the extremely small total of 20,448 machine tools had been declared surplus; 7,385 had been sold, 21 were leased and only 13,039 were in surplus. Many of the available tools were “special purpose” items with a very limited resale market, if any. As long as this condition of scarcity continues, SWPC cannot help many small businessmen in meeting their needs. However, it is expected that shortly after VE-Day, a much larger number of tools will be declared surplus. Small plants whose needs have been registered with SWPC then will be in a favorable position to prepare for efficient peacetime operations using new products and new processes in a competitive free-enterprise economy.
EXHIBITS
Exhibit I.—Distribution of prime contracts awarded with the assistance1 of of Smaller War Plants Corporation, during February-March 1945
DISTRIBUTION BY REGIONS
Regions	Number of contracts	Percent	Dollar value	Percent
United States		5,658	100.0	629,954,458	100.0
Boston		784	13.8	61,346,151	9.7
New York.........................	935	16.5	89,051,043	14.2
Philadelphia		719	12.7	75,494,038	12.0
Atlanta		236	4.2	47,316,114	7.5
Cleveland		552	9.8	79,442,877	12.6
Chicago				847	15.0	114,647,341	18.2
Kansas City			431	7.6	34^008,211	5.4
Dallas		152	2.7	17,659,308	4.4
Denver			148	2.6	4,345,817	0.7
San Francisco		186	3.3	8,295,974	1.3
Detroit		292	5-2	40,383^319	6.4
Minneapolis		101	1.8	8,967,945	1.4
Seattle		110	1.9	11,131,646	1.8
Los Angeles. . . .		165	2.9	27,864,674	4.4
DISTRIBUTION BY SIZE OF PLANT
Size of plant	Number of contracts	Percent	Dollar value	Percent
Total, all groups			5,658	100.0	629,954,458	100.0
1-49 wage earners....		1,484	26.2	67,687,236	10.7
50-99 wage earners		1,219	21.5	90,197,807	14.3
100-249 wage earners			1,638	29.0	187,495,317	29.8
250-499 wage earners		1,263	22.3	264,903,270	42.1
500-Over wage earners		54	1.0	19,670,828	3.1
1 Includes 569 prime contracts valued at $50,748,450, which are awarded with the concurrence of SWPC.
Source: SWPC-6B.
Exhibit II.—Prime contracts taimen by the Smaller War Plants Corporation, February i, 1945, through March 31, 1945
NEW PRIME CONTRACTS TAKEN
No.	Product	Procurement agency	No. of items	Date of contract	Approximate amount
XV	Concrete practice bombs.	War Department, Ordnance Department.	975,000	March 15, 1945	$4,300,000
CHANGES IN PRIME CONTRACTS PREVIOUSLY REPORTED
No.	Items	Procurement agency	Amount previously reported	Amount now stipulated
1	Furniture for defensehousing.	Federal Public Housing Authority.	$10,000,000	$14,000,000
VIII	Machine-gun mounts.	Army Air Forces, Wright Field, Dayton, Ohio.	760,000	794,073
XI	Bomb hoists, type C-6	Army Air Forces, Wright Field, Dayton, Ohio.	5,500,000	2,347,476
Exhibit III.—Subcontracts placed by the Smaller War Plants Corporation, February 1, 1945, through March 31, 1943
SUBCONTRACTS FOR THE MANUFACTURE OF FURNITURE FOR THE FEDERAL PUBLIC HOUSING AUTHORITY (PRIME CONTRACT NO. I)
Name	Address	Amount
Phoenix Chair Co		Sheboygan, Wis		$42,000.00
B. P. John Furniture Corporation		Portland, Oreg		16,636.89
F. S. Harmon Manufacturing Co		Tacoma, Wash		85,774.29
Forrest Furniture Manufacturing Co.		Bellingham, Wash		52,750.00
Kroehler Manufacturing Co		Naperville, Ill		97,537.50
Doernbecher Manufacturing Co		Portland, Oreg		124,831.25
R. K. Griffin Co. . 	-		Lock Haven, Pa		6,800.00
American Chair Co		Sheboygan, Wis........	36,000.00
Marietta Chair Co		Marietta, Ohio		38,150.00
Total	 :			500,479.93
Exhibit III.—Subcontracts placed by the Smaller War Plants Corporation, February i, 1945, through March 31, 1945—Continued
SUBCONTRACTS (UNDER PRIME CONTRACT NO. XV) FOR THE MANUFACTURE OF CONCRETE PRACTICE BOMBS FOR ARMY ORDNANCE
Name	Address	Amount
Arnold Stone Co		Greensboro, N. C		$60,660.00
Concrete Products Co. of America		Philadelphia, Pa		108,000.00
Formigli Brothers			Philadelphia, Pa		52,050.00
Great Lakes Concrete Pipe Co		Buffalo, 'N. Y		64,800.00
Goodstone Mfg. Co		Rochester, N.Y		54,120.00
H. & F. H. Hosea Co. . 		Cincinnati, Ohio		81,000.00
Hartwe Marblecrete Co		Oklahoma City, Okla. ..	103,500.00
Mooney Brothers		New Castle, Pa		54,750.00
The Neff and Fry Co			Camden, Ohio		108,900.00
Nelson Concrete Culvert Co		East St. Louis, Ill		103,800.00
P. Grassi & Co. and American Terrazzo Co		San Francisco, Calif		109,800.00
J. C. Boyer Co		Greenfaeid, Ind		55,500.00
Otto Buehner Co		Salt Lake City, Utah....	108,000.00
Total			1,064,880.00
CHANGES IN AMOUNTS OF SUBCONTRACTS PREVIOUSLY REPORTED
Name	Address	Amount previously reported	Amount 1 now stipulated
Furniture (Prime Contract No. I): Kroehler Mfg. Co			 Richardson Brothers Co	 Richardson Brothers Co	 Chautauqua Cabinet Co	 Forrest Furniture Mfg. Co	 Richardson Brothers Co		Naperville, Ill	 Sheboygan Falls, Wis.... Sheboygan Falls, Wis.... Mayville, N. Y	 Bellingham, Wash	 Sheboygan Falls, Wis....	$171,000.00 12,765.40 43,205.00 50,877.00 106,120.00 14,125.00	$174,776.25 14,725.80 43,484.35 47,484.82 99,400.00 13,425.15
Total							398,092.40	393,296.37
Exhibit IV.—Number and dollar value of contracts awarded by Government procurement agencies, shown by months^
[Value of contracts shown in thousands of dollars]
Procurement] agency	Total contracts		Under 100 wage earners		Under 500 wage earners	
	Number	Value	Percent of number	Percent of value	Percent of number	Percent of value
ARMY 1942: November and December..	700 percent 65,382	100 percent $6,575,890	45.9	5.1	67.9	14.0
1943: January to December		241,531	35,329,396	35.7	3A	62.8	12.6
1944: January	^..........	12,702	1,571,806	30.5	5.6	60.4	18.6
February		12,081	2,498,926	30.2	3.2	58.9	10.5
March			13,762	1,826,353	31.6	4.8	60.6	18.9
April		14,472	2,327,565	33.5	4.8	62.1	18.0
May		16,066	1,784,979	30.8	6.2	60.2	23.6
June		14,985	3,151,214	26.4	3.9	59.1	18.5
July		12,028	2,349,366	27.1	5.1	59.4	16.9
August		15,643	1,843,098	28.7	6.6	60.3	23.7
- September		12,765	1,690,050	26.5	7.0	57.0	25.8
October		12,735	1,881,402	29.3	8.1	59.1	22.0
November		12,963	1,836,737	27.7	6.6	58.2	23.4
December		12,912	1,998,386	27.4	6.4	58.9	25.9
1945: January		14,778	2,892,563	26.0	6.2	57.2	24.3
February 		13,971	2,547,558	27.5	6.2	59.0	25-7
NAVY 1943: April to December		131,359	11,281,740	26.6	1.8	48.4	8.5
1944: January	 .......	18,441	1,852,882	29.0	1.2	53.0	6.0
February			18,220	1,044,832	28.5	2.0	51.6	8.0
March		19,920	628,576	28.4	3.8	50.9	16.8
April		20,351	1,354,755	26.4	2.7	48.8	5.6
May			19,813	1,646,911	25.2	1.8	48.4	7.3
June		22,522	1,080,599	27.6	5-5	51.5	15.5
July		18,556	1,015,014	30.0	4.0	54.8	12.3
August.................	19,734	543,281	24.7	6.5	49.6	22.1
September		26,873	317,752	28.1	10.7	54.6	33.3
October		15,389	304,284	33.7	10.9	58.8	31.2
November		26,426	426,398	27.5	6.9	54.8	21.8
December		15,052	905,799	32.2	3.2	56.7	9.5
1945: January		16,438	952,518	32.4	8.7	58.9	17.5
February	 .	17,505	1,622,224	34.3	2.1	60.1	5.9
1 Data shown for the Army, Navy, and Maritime Commission are limited to contracts of $10,000 or more and those of the C. A. A. and Panama Canal are limited to contracts of $5,000 or more.
Exhibit IV.—Number and dollar value of contracts awarded by Government procurement Agencies, shown by months—Continued
[Value of contracts shown in thousands of dollars]
Procurement agency	Total contracts		Under 100 wage Under 500 wage			
			earners		earners	
	Number	Value	Percent of number	Percent of value	Percent of number	Percent of value
MARITIME COMMISSION 1943: January to December		100 ■percent 5,022	100 percent 2,790,889	25-5	■ 4.1	49.0	. 11.1
1944: January		473	69,726	22.2	9.8	38.1	19.0
February		282	195,503	25.5	5.2	44.7	11.9
March		421	58,555	26.6	13.6	43.5	26.9
April		457	72,804	30.6	* 22.5	55.1	40.7
DEPARTMENT OF INTERIOR 1944: February			25	1,034	œ	(?)	(2)	(?)
March	 		60	2,803	C2)	C2)	(2)	C2)
April		<		43	776	C2)	C2)	C2).	C2)
May		61	1,531	(?)	C2) .	. C2)	(?)
June		70	1,379	C2)	(2)	(2)	(2)
July		52	185	C2)	C2)	(2) .	(?)
August			69	2,166	C2)	C2)	(2)	C2)
September		76	1,486	(2)	C2)	C2)	C2)
October		66	666	C2)	C2)	(2)	C2)
November		59	483	C2)	(2)	C2)	(2)
December		59	1,239	o	C2) .	. C2)	(2)
1945: January		50	630	ej	C2)	C2)	C2)
FEDERAL PUBLIC HOUSING AUTHORITY 1944: February-March		36	406	C2)	(?)	C2)	C2)
CIVIL AERONAUTICS ADMINISTRATION 1944: January-March		17	2,100	17.6	2.1	64.7	77.6
April-May		12	189	16.7	13.8	83.3	79.4
June-July		16	564	18.8	8.0	56.3	23-3
August-September		10	476	20.0	18.5	60.0	73.1
October-November		5	96	40.0	57.7	60.0	69.5
December-January 1945. . ■	7	256	28.6	7.7	71.4	55.4
2 Full data not available for these months.
Exhibit IV.—Number and dollar value of contracts awarded by Government procurement agencies, shown by months—Continued
[Value of contracts shown in thousands of dollars]
Procurement agency	Total contracts		Under 100 wage earners		Under 500 wage earners	
	Number	Value	Percent of number	Percent of value	Percent of number	Percent of value
PANAMA CANAL 1944: February-March		100 percent 20	100 percent 278	20.0	19.1	25.0	23.1
April-May		17	246	23.5	19.1	29.4	23.6
June-July			17	199	29.4	26.1	58.8	45.7
August-September		21	437	33.3	16.7	38.1	19.0
October-November		32	318	37.5	31.1	50.0	40.3
December-January 1945...	41	432	24.4	20.0	39.0	30.2
LEND-LEASE 1944: February		1,532	76,253	17.1	5.7	35.2	13.3
March		2,217	73,619	18.2	5.4	36.4	14.7
April		1,634	88,079	16.7	4.7	34.6	14.5
May			1,984	78,825	18.8	55	35.1	16.7
June		2,040	123,800	17.8	4.3	36.4	15.0
July		1,865	95,047	22.1	7.2	40.9	20.0
August		1,733	105,885	20.2	8.7	41.9	31.7
September		1,935	237,526	19.8	5.0	40.2	16.3
October		2,339	148,953	18.1	5-5	38.7	22.7
November		2,379	122,494	23.5	9.7	44.9	30.0
December		2,119	142,767	24.0	7.8	48.2	21.7
1945: January			2,276	83,932	23.8	13.8	44.9	33.2
February		1,703	58,138	29.3	24.5	54.4	41.5
U. S. GOVERNMENT PRINTING OFFICE: 1945