--U.S. v. PRIVATE INDUSTRY--: U.S. v. PRIVATE INDUSTRY

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The Government Is Getting Out of Business

AS part of his campaign platform, Dwight Eisenhower promised to take the Government out of competition with private enterprise wherever possible. Since the Federal Government was running some 100 types of business, in which it had sunk $40 billion (TIME, July 13, 1953), keeping this promise has turned out to be a big order. Nevertheless, the Administration has chalked up notable progress. Last week, in its biggest single step to eliminate competition with private business, the Government sold 24 of its synthetic rubber factories. Thus, with a pen stroke, it turned over to 15 companies virtually all of a $310 million industry, and netted a $39 million profit.

The Administration has also revived last year's plan to get the Government out of the business of running two "atom cities"—Oak Ridge, Tenn. and Richland, Wash. At the request of the Atomic Energy Commission, the Democratic heads of the Joint Congressional Committee on Atomic Energy last week introduced bills to end Government ownership and operation of Oak Ridge and Richland. The responsibility for schools, streets, etc. would be handed over to local residents, eventually saving the Federal Government upwards of $1,500,000 yearly.

In scores of other nooks and crannies of Government, less dramatic ways have been found to eliminate competition with private business. The Defense Department has shut down 24 scrap-metal operations, seven bakeries, nine laundries, a chain factory, a caustic-soda plant, four cement-mixing plants, a tire-retreading plant, two garden nurseries and four ice plants. The Navy, which has been manufacturing uniforms for years, has closed its clothing factory. It is bringing in more private yards to overhaul its ships, has boosted such contracts from $34 million in 1953 to $82 million in fiscal 1955.

Some time this year the Navy will close the coffee-roasting plants it started in 1858 because it was not satisfied with the quality or cost of commercial coffee. It will put on a stand-by basis the Boston Ropewalk, a cordage factory it opened in 1834 because good rope was not available commercially. The Air Force is now contracting with private businessmen for 50% of all maintenance of engines, radios, etc., v. 21% in 1952. Government motor pools are being dried up; in San Antonio the Fourth Army has started using public taxis and buses for most official business trips.