The Defense Plant Corporation,(DPC), was subsidiary of the

Reconstruction Finance Corporation The Reconstruction Finance Corporation was a government corporation administered by the United States Federal Government between 1932 and 1957 that provided financial support to state and local governments and made loans to banks, railroads, mortgag ...

, a

government corporation A state-owned enterprise (SOE) is a government entity which is established or nationalised by the ''national government'' or ''provincial government'' by an executive order or an act of legislation in order to earn profit for the governme ...

run by the

United States Federal Government The federal government of the United States (U.S. federal government or U.S. government) is the Federation#Federal governments, national government of the United States, a federal republic located primarily in North America, composed of 50 ...

between 1940 and 1945. To win

World War II World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposin ...

the

United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...

and its

Allied Nation The Allies, formally referred to as the United Nations from 1942, were an international military coalition formed during the Second World War (1939–1945) to oppose the Axis powers, led by Nazi Germany, Imperial Japan, and Fascist Italy ...

s needed massive war production. Many private companies did not have the

capital funds Venture capital (often abbreviated as VC) is a form of private equity financing that is provided by venture capital firms or funds to startups, early-stage, and emerging companies that have been deemed to have high growth potential or which hav ...

to meet the wartime demand for buildings and equipment. Defense Plant Corporation provided financial support to state and local governments. Defense Plant Corporation also made loans to banks, railroads, mortgage associations, and other businesses supporting the war efforts. James S. Olson, ''Saving Capitalism: The Reconstruction Finance Corporation and the New Deal, 1933-1940'' (Princeton University Press, 2017).

History

Reconstruction Finance Corporation (RFC) was founded in 1932 by

Herbert Hoover Herbert Clark Hoover (August 10, 1874 – October 20, 1964) was an American politician who served as the 31st president of the United States from 1929 to 1933 and a member of the Republican Party, holding office during the onset of the Gr ...

to help with the

Great Depression The Great Depression (19291939) was an economic shock that impacted most countries across the world. It was a period of economic depression that became evident after a major fall in stock prices in the United States. The economic contagio ...

, with the outbreak of World War II, it became a war department. Fund requests usually started with the

United States Navy The United States Navy (USN) is the maritime service branch of the United States Armed Forces and one of the eight uniformed services of the United States. It is the largest and most powerful navy in the world, with the estimated tonnage ...

United States Army The United States Army (USA) is the land service branch of the United States Armed Forces. It is one of the eight U.S. uniformed services, and is designated as the Army of the United States in the U.S. Constitution.Article II, section 2, cla ...

War Shipping Administration The War Shipping Administration (WSA) was a World War II emergency war agency of the US government, tasked to purchase and operate the civilian shipping tonnage the United States needed for fighting the war. Both shipbuilding under the Maritime Co ...

Office of Production Management The Office of Production Management was a United States Government agency that existed from January 1941 to centralize direction of the federal procurement programs and quasi-war production during the period immediately proceeding the United State ...

, the

War Production Board The War Production Board (WPB) was an agency of the United States government that supervised war production during World War II. President Franklin D. Roosevelt established it in January 1942, with Executive Order 9024. The WPB replaced the Sup ...

Maritime Commission The United States Maritime Commission (MARCOM) was an independent executive agency of the U.S. federal government that was created by the Merchant Marine Act of 1936, which was passed by Congress on June 29, 1936, and was abolished on May 24, 195 ...

or other war departments. Reconstruction Finance Corporation had eight subsidiaries. Most requests for new

factories A factory, manufacturing plant or a production plant is an industrial facility, often a complex consisting of several buildings filled with machinery, where workers manufacture items or operate machines which process each item into another. T ...

and new mills were given to the Defense Plant Corporation. The head of the Defense Plant Corporation was

Jesse H. Jones Jesse Holman Jones (April 5, 1874June 1, 1956) was an American Democratic politician and entrepreneur from Houston, Texas. Jones managed a Tennessee tobacco factory at age fourteen, and at nineteen, he was put in charge of his uncle's lumbery ...

, with Emil Schram and Sam Husbands. Jesse H. Jones (1874–1956) was a

politician A politician is a person active in party politics, or a person holding or seeking an elected office in government. Politicians propose, support, reject and create laws that govern the land and by an extension of its people. Broadly speaking, a ...

and

entrepreneur Entrepreneurship is the creation or extraction of economic value. With this definition, entrepreneurship is viewed as change, generally entailing risk beyond what is normally encountered in starting a business, which may include other values th ...

from

Houston, Texas Houston (; ) is the most populous city in Texas, the most populous city in the Southern United States, the fourth-most populous city in the United States, and the sixth-most populous city in North America, with a population of 2,304,580 in ...

. Defense Plant Corporation would also offer oversight that factories were constructed, equipped, and operated. By the time Defense Plant Corporation closed in 1945 it had funded over $9 billion into the wartime factories. The funds went to over 2,300 projects in 46 US states and in foreign countries. In most projects, the government owned factories and leased them to private companies. Major factories built were

aircraft manufacturing An aircraft is a vehicle that is able to fly by gaining support from the air. It counters the force of gravity by using either static lift or by using the dynamic lift of an airfoil, or in a few cases the downward thrust from jet engines ...

(50% of funds), tanks plants,

nonferrous metal In metallurgy, non-ferrous metals are metals or alloys that do not contain iron (allotropes of iron, ferrite, and so on) in appreciable amounts. Generally more costly than ferrous metals, non-ferrous metals are used because of desirable proper ...

machine tools A machine tool is a machine for handling or machining metal or other rigid materials, usually by cutting, boring, grinding, shearing, or other forms of deformations. Machine tools employ some sort of tool that does the cutting or shaping. All m ...

synthetic rubber A synthetic rubber is an artificial elastomer. They are polymers synthesized from petroleum byproducts. About 32-million metric tons of rubbers are produced annually in the United States, and of that amount two thirds are synthetic. Synthetic rubbe ...

shipyards A shipyard, also called a dockyard or boatyard, is a place where ships are built and repaired. These can be yachts, military vessels, cruise liners or other cargo or passenger ships. Dockyards are sometimes more associated with maintenance a ...

and boat yards. The largest project was $176 million for

Dodge Dodge is an American brand of automobiles and a division of Stellantis, based in Auburn Hills, Michigan. Dodge vehicles have historically included performance cars, and for much of its existence Dodge was Chrysler's mid-priced brand above P ...

's Chicago aircraft engine plant. The Dodge Chicago plant manufactured engines for the

Boeing B-29 Superfortress The Boeing B-29 Superfortress is an American four-engined propeller-driven heavy bomber, designed by Boeing and flown primarily by the United States during World War II and the Korean War. Named in allusion to its predecessor, the B-17 Fl ...

and

Consolidated B-32 Dominator The Consolidated B-32 Dominator (Consolidated Model 34) was an American heavy strategic bomber built for United States Army Air Forces during World War II, which had the distinction of being the last Allied aircraft to be engaged in combat duri ...

. The Dodge Chicago 1,545 acres with a

steel Steel is an alloy made up of iron with added carbon to improve its strength and fracture resistance compared to other forms of iron. Many other elements may be present or added. Stainless steels that are corrosion- and oxidation-resistant ty ...

forge A forge is a type of hearth used for heating metals, or the workplace (smithy) where such a hearth is located. The forge is used by the smith to heat a piece of metal to a temperature at which it becomes easier to shape by forging, or to th ...

and

aluminum Aluminium (aluminum in American and Canadian English) is a chemical element with the symbol Al and atomic number 13. Aluminium has a density lower than those of other common metals, at approximately one third that of steel. It has ...

foundry A foundry is a factory that produces metal castings. Metals are cast into shapes by melting them into a liquid, pouring the metal into a mold, and removing the mold material after the metal has solidified as it cools. The most common metals pr ...

. With the war coming to an end Defense Plant Corporation was ended on July 1, 1945.

Funded

Defense Plant Corporation motor nameplate

Some companies funded: *

Ben's Original Ben's Original, formerly called Uncle Ben's, is an American brand of parboiled rice and other related food products that was introduced by Converted Rice Inc., which is now owned by Mars, Inc. Its headquarters are in Denver Harbor, Houston, Texa ...

Citgo Citgo Petroleum Corporation (or Citgo, stylized as CITGO) is a United States–based refiner, transporter and marketer of transportation fuels, lubricants, petrochemicals and other industrial products. Headquartered in the Energy Corridor area o ...

to funded synthetic rubber *

Willow Run Willow Run, also known as Air Force Plant 31, was a manufacturing complex in Michigan, United States, located between Ypsilanti Township and Belleville, built by the Ford Motor Company to manufacture aircraft, especially the B-24 Liberator hea ...

* Sangamon Ordnance Plant * EMD Model 40 plant *

Homestead Steel Works Homestead Steel Works was a large steel works located on the Monongahela River at Homestead, Pennsylvania in the United States. The company developed in the nineteenth century as an extensive plant served by tributary coal and iron fields, a rai ...

Southwest Power Pool Southwest Power Pool (SPP) manages the electric grid and wholesale power market for the central United States. As a regional transmission organization, the nonprofit corporation is mandated by the Federal Energy Regulatory Commission to ensure ...

* Wright's Automatic Machinery Company * Contract Flying School Airfields *

General Motors The General Motors Company (GM) is an American Multinational corporation, multinational Automotive industry, automotive manufacturing company headquartered in Detroit, Michigan, United States. It is the largest automaker in the United States and ...

's Central Foundry Division and other plants *

Big Inch The Big Inch and Little Big Inch, collectively known as the Inch pipelines, are petroleum Pipeline transport, pipelines extending from Texas to New Jersey, built between 1942 and 1944 as emergency war measures in the U.S. Before World War II, pe ...

Baldwin Locomotive Works The Baldwin Locomotive Works (BLW) was an American manufacturer of railroad locomotives from 1825 to 1951. Originally located in Philadelphia, it moved to nearby Eddystone, Pennsylvania, in the early 20th century. The company was for decades t ...

Holston Army Ammunition Plant Holston Army Ammunition Plant (HSAAP) manufactures Research Department Explosive ( RDX) and High Melting Explosive (HMX) for ammunition production and development. It is government-owned and contractor-operated (GOCO) facility that is part of th ...

U.S. Steel United States Steel Corporation, more commonly known as U.S. Steel, is an American integrated steel producer headquartered in Pittsburgh, Pittsburgh, Pennsylvania, with production operations primarily in the United States of America and in severa ...

Duquesne Works * Sangamon Ordnance Plant

External links

Records of the Reconstruction Finance Corporation

References

{{Authority control Defense Plant Corporation 1945 disestablishments in the United States Agencies of the United States government during World War II Corporations chartered by the United States Congress Defunct agencies of the United States government Government agencies established in 1940 United States government-sponsored enterprises Herbert Hoover 1940 establishments in the United States Government agencies disestablished in 1945

History

Funded

See also

External links

References