Letter on Taking Over Plants Refusing Government Orders for Defense Materials

My dear Mr. Secretary:

With reference to Section 9 of the Selective Service and Training Act of 1940 (Public No. 783, 76th Congress), which gives me various powers to act through you in addition to the present authorized methods of purchase or procurement, it is my desire, in order to provide for uniformity in the negotiation and placing of mandatory orders under Section 9, that all such orders proposed to be placed by you under this section be presented to the Advisory Commission to the Council of National Defense for review.

Your proposal when so transmitted should contain your conclusion that action under Section 9 is necessary, together with the reasons therefor, the views of the Army and Navy Munitions Board with reference to all aspects of the matter within its put. view, a statement that the product or material desired is normally produced or capable of being produced by the person involved, a statement that the price of the material or product desired as determined by you is reasonable and a statement of the preference over other contracts or orders to which the proposed order should be entitled. There should also be attached to the proposal all other documents relating to the case.

If the Commission, with the voluntary cooperation of industry, is unable to effect a solution in a manner satisfactory to you, it shall return the case to you with such recommendations as it may consider appropriate. In the event that both you and the Commission agree as to the necessity of placing an order pursuant to Section 9 for the product or material desired, you are hereby authorized to so do. If, however, you and the Commission do not agree, you will, of course, refer the matter to me.

In the event of a refusal by such person to comply in whole or in part with any order so placed, you should transmit the case to me with specific recommendations from you and the Commission for further action pursuant to Section 9.

Sincerely,

The Honorable,
The Secretary of War,
Washington, D. C.