Word: v-e
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Last week Czar Hinckley made things even smoother. He put into operation a single cancellation system for both Army & Navy, and gave officers greater authority to make spot settlements of small contracts. Come V-E day, Hinckley predicted, another $20 billion of the contracts will be canceled. He expects speedy settlement of these-the War Department is now paying off on canceled contracts on an average of 45 days after bills are filed...
...railroads, although making more money than they can lift, suddenly began to worry. They predicted traffic declines ranging from 15 to 25% after V-E day cutbacks in military orders. Alarmed at this prospect, and at the inroads that higher costs of materials and wages have made in this year's net (estimated at $650 million v. $874 million in 1943); the carriers asked the ICC to increase rates by an average of 4-7%-One argument: at war's end the railroads expect to spend $1.7 billion for new equipment, but owing to higher prices will...
Share the Pie. Last week WPB unreservedly promised: the West will get an ample share of the overall cutbacks in war production after V-E day. In the first year after Germany quits, and if Japan is still fighting, the rising scale of cutbacks for the U.S. will average 32% (maximum: 40%). For the West Coast, the average will be "something more" than 25%. The lower percentage is due to the hard fact that the bulk of the weapons still needed to fight Japan (i.e., B-29 and B-32 bombers) are being made in the West. Furthermore...
Said one WPBster bluntly: "I don't see where the West Coast's holler about V-E day comes in. It will keep slightly more war contracts, but with a pretty good shake on reconversion its position ought to be pretty good. But some Eastern cities where the bulk of the contracts will be canceled at once will be up against it. They'd be only too glad to have some of that West Coast war production...
...Civilians were getting 2.09% fewer cigarets this year than last. The shortage, universal throughout the U.S., had only started; leading brands will be increasingly scarce during the winter, with no real letup until after V-E day. Reasons: 1) manpower; 2) shortage of paper for shipping cartons; 3) a jump in orders from the armed forces; 4) counter-to-counter shopping by individual smokers for their favorite brands...