GOVERNMENT: Smooth Flow

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By last week, military orders placed since the start of the Korean war totaled more than $7 billion. In most cases they had flowed out to industry smoothly; and industry, in turn, had hustled out some of the new equipment so fast it was already at the front. One reason for the swift flow was that most of the early orders had been for equipment already in production (e.g., trucks and jeeps) or for equipment which the companies had made in World War II. But the chief reason was three years of preparation by the Munitions Board, now bossed by white-thatched, 61-year-old Hubert E. Howard, World War I artillery captain and longtime Chicago coal tycoon.

The board, which has charge of coordinating all military procurement, was revamped when the services were unified in 1947. In hopes of avoiding the frantic military buying and confusion which marked the start of World War II, the board first efficiently simplified the procurement methods of the three services. In some cases, it directed one of the services to buy goods for all three; the "Army, for instance, also buys the food for the Navy and Air Force.

The Munitions Board got in touch with some 30,000 private plants, carefully-surveyed the 470 Government-owned plants under its own control. This week it will complete plans, including plant assignments, for production of the 700 top-priority military items which comprised half of all World War II production.

Under Howard, who took over last November, the letting of contracts has been notably speeded up. Instead of the Government's traditional method of competitive bidding, 90% of all military procurement is now being done by negotiated contract. One thing the Munitions Board has fallen down on, however, is the stockpiling of strategic materials, at present only 38% complete (TIME, Aug. 7); Howard hopes to bring it to 74% by next July.

In the event of all-out mobilization, Chairman Howard is confident that his board will get the equipment orders in jigtime. Says he: "We estimate . . . that in the event of [such] an emergency . . . the three services will place orders for $41 billion worth of weapons and supplies within six months . . . 40% of those orders could be placed at once."