Slipstream: the autobiography of an air craftsmanWilson, Eugene E.
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Slipstream: the autobiography of an air craftsman
Wilson, Eugene E.
Aircraft industry -- United States -- Biography; United States. Navy -- Aviation; Wilson, Eugene E., 1887-1974
“Mr. Secretary,” I said, “for the Treasury to treat this problem in
a way other than the one which we have set up would put the Treasury
in the position of profiteering—through excess taxation—on munitions
contracts let here by foreign governments. We aircraft manufacturers,
having been maligned as profiteers, would not like to see our
government in the same boat.”
The secretary blinked at this, but did not reply.
“Mr. Secretary,” I continued, “we feel so strongly about the
principles involved here that we have taken a firm decision: we will
not go ahead on your British plant, until we have assurance of the
treatment we require.” The secretary still appeared unimpressed.
However, he did reply in his flat voice.
“I will see that it is done.”
The problem of plant expansion was but one of our many headaches. In
due course we signed the British contract calling for an addition
over half again as large as the French addition, and on generally
similar terms. For the next several years we waged fierce battle with
the Treasury Department over that problem of accelerated depreciation
and amortization of emergency facilities, only to learn that the
basic law precluded such treatment and could not be amended save by
act of Congress. But as luck would have it, when the Treasury finally
turned us down, the tax rates had been boosted so high that their
adverse decision actually gave us a better break than we would have
had with an earlier approval. And though this proved gratifying from
the balance-sheet point of view, the principle remained an issue
until finally resolved after the outbreak of the European war.
To a harassed manufacturer, intent on production, it seemed
incredible that we Americans could be so stupid. At the time, we
ascribed it to ignorance. In our shop experience, no deliberate
saboteur could throw such backlash into a production line as just
comes naturally when a dumb-bunny do-gooder gets to messing around.
In the light of subsequent revelations, I am not so sure.
CHAPTER TWENTY-SIX
A Spark Is Struck
Public-domain text, read in full here on John Shaqi.
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