Business & Finance: A Bomb on Norden

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The famed Norden bombsight is so valued by the U.S. air forces that for long it was never left in a bomber, was always moved under armed guard. Last week, a Federal Grand Jury in Manhattan charged that Carl L. Norden Inc. (Inventor Norden is no longer associated with the company) took even greater precautions to protect its monopoly on manufacture of the sight. Result: production by other companies of the badly needed sight was blocked. The jury indicted the company, President Theodore H. Barth and Vice-President Ward B. Marvelle, along with Commander John D. Corrigan, U.S.N.R., Robert H. Wells and Corrigan, Osburne & Wells,* their industrial-engineering firm.

The indictments, based mainly on Truman Committee findings, charged that the Norden company, ordered by the Navy Department to turn over bombsight plans to Remington Rand Inc., which was to build 8,500 "football units" (the main computing part), had blocked Remington Rand production by 1) withholding engineering advice; 2) furnishing incomplete and inaccurate specifications; 3) rejecting Remington Rand units in New York.

In July 1943, C.I.O.'s United Electrical Workers complained to the Navy of a production slowdown at Norden's New York plant. Corrigan, Naval production-management boss for both plants, investigated and exonerated Norden. Then, the indictment charged, Corrigan persuaded Norden officials to hire his firm, with which he had supposedly severed all ties when he was commissioned. The fee: $104,000. As a result of Corrigan's recommendations, the Navy took over the Remington plant and turned it over to Norden to run.

It was also charged that Corrigan forced manufacturers to employ his firm, threatening to submit unfavorable reports to the Navy on those who refused. The firm allegedly banked $109,000 as Corrigan's share in fees thus received.

To all this the Norden company snapped: "Fantastic . . . untrue. Carl L. Norden Inc. . . . has exceeded every production schedule." Corrigan, on inactive duty, said: "I would like to get my hands on that $109,000 they're talking about."

*The name "Osburne" is fictitious. Corrigan explained to the Truman Committee: "We put Osburne in because most firms operating as management engineers have three names."