Friction in the Arsenal

Friction in the Arsenal

One of the three big clogs* holding back U.S. arms production was dissected this week in FORTUNE'S quarterly poll of business executives: the reason businessmen dislike and distrust the U.S. defense program.

With few exceptions, businessmen have loyally agreed to do their part in defense production, many at considerable cost to themselves. But, although most of them--isolationist and interventionist alike--approve of U.S. rearmament, they don't like the defense program. This kind of cooperation with the Government is no effective substitute for active, eager cooperation. FORTUNE'S management poll undertook to dissect the reasons for businessmen's distrust of the New Deal--a distrust that extends even to matters of defense. Reasons for that distrust came out clear and sharp:

> 75.9% believe that the Administration is using the national emergency as a pretext for pushing its more radical social and economic aims.

> 91.5% of them would like to have a system of free enterprise, after the war, along the general pre-war lines. But only 7.2% expect such an outcome--52.4% expect the Government to get much deeper in business, 36.7% expect the Government to get in so far that there will be little room for the profit system to operate; 3.7% expect economic dictatorship.

> One thing the executives made very clear: they do not think business should be blamed for the shortcomings of the businessmen the President has chosen to head the defense effort. Only 13.7% of the executives think the White House picked the right men for the job; 77.1% washed their hands of the question, by voting "some good, some inadequate"; 9.2% think most of them were a poor choice. Of the several hundred $1-a-year men serving in lesser capacities, 53.2% of the executives voted them a good choice; 33% "second-raters or worse."

> The executives who thought that a large percentage of the businessmen in Government were badly chosen were asked why. Said 93.1%: because the Government is unwilling to call the ablest men. Another reason given by 67.4% of the same group: because of the unwillingness of the ablest men to serve. Both votes were obvious reflections of the long feud between the New Deal and business. But 84.1% gave a further and perhaps more significant reason: "Ignorance on the part of the Administration of what constitutes management ability."

*The others: labor trouble, Government bungling.

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