Monday, May. 25, 1942

Decentralization at Last

Thoughtful businessmen breathed a profound sigh of relief. Industrial mobilization took the first real step away from Washington, rather than toward it, since World War II began. WPB began to decentralize itself. This blessed portent was part of WPB's shift in emphasis from expansion-for-later to production-with-what-we-have-now. The present U.S. war plant is already devouring raw materials faster than they can be mined. Therefore, Washington's No. 1 job is no longer production, or conversion, or contract-letting, but raw-materials flow. So WPB began to strip itself down to that job. James S.

Knowlson, chief of its Division of Industry Operations, announced the creation of 13 regional of-fices,* gave them broad powers as "the focal point ... for all War Production Board business" except for overall policy matters. In each of their areas, these miniature Don Nelsons (seven have been appointed so far) are to have complete WPB authority over what remains of the war-production job. Since most of the expansion was over, rationalization could begin--a grass-roots matter. There could be more subcontracting, a fuller use of existing plants, more local cooperation, less Washington red tape. A blueprint of the new decentralization was shown in the Detroit area last week. Ernest Kanzler, WPB's local headman, sent a deputy to Grand Haven, Mich., to meet with Ottawa County's small manufacturers and expound the gospel of subcontracting. There was the familiar talk about pooling for war work; there was the familiar plea that "the nation and the war effort are depending upon the ingenuity of you small manufacturers." But there was also, at long last, what looked like an efficient setup through which small manufacturers' ingenuity could find an outlet: a senior engineer to advise each of seven Detroit-area zones, to learn all their problems and potentialities; a bi-weekly bulletin listing hundreds of needed war items; a new sense that the regional WPB office was really empowered to by-pass Washington. Said one Grand Havener: "You fellows have given us the clearest understanding yet of the function of WPB and how it can help us."

*Boston, New York, Philadelphia, Atlanta, Cleveland, Chicago, Kansas City, Dallas, Denver, San Francisco, Detroit, Minneapolis and Seattle.

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