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Eisenhower and the Cold War: President Warns that "competition faced by the Defense Department is the sternest in the world, that provided by the military might of the Soviet Union"
Eisenhower and the Cold War: President Warns that "competition faced by the Defense Department is the sternest in the world, that provided by the military might of the Soviet Union"
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Eisenhower Dwight

Eisenhower and the Cold War: President Warns That "competition faced by the Defense Department is the sternest in the world, that provided by the military might of the Soviet Union"

 

2pp TLS signed by 34th U.S. President Dwight D. Eisenhower (1890-1969) as "D.E." near bottom of second page. Written at the White House, Washington, D.C. on May 5, 1958. Cream watermarked paper with "The White House, Washington" embossed letterhead. Expected paper folds, and a light paper clip impression at upper left of first page, else near fine. Measures 7.125" x 10.375".

 

President Eisenhower reached out to his influential business associate friends in the spring of 1958 to galvanize their support for defense funding initiatives. Barry T. Leithead (1907-1974) was the chairman and C.E.O. of Cluett, Peabody and Co., an apparel manufacturer.

 

"Dear Barry:

 

I am sure it is no news to you that I am engaged in an all-out effort to secure legislation under which the Defense Department may be organized to meet modern security requirements with maximum efficiency and minimum cost…

 

Because of your business experience, it seems to me that you may be particularly impressed by an analogy suggested to me lately by a good friend who heads one of our great corporations. He suggested that present operations within the Department of Defense are similar to a corporate operation that would permit each important subordinate to report separately and independently to the Board of Directors, bypassing the Chief Executive entirely. This, of course, would be completely unworkable; it could hardly be tolerated long, because tough competition with better organized units would soon produce a profit and loss statement that could spell disaster.

 

As of today, the Defense Department must operate under a system, or lack of system, similar to one that, as I say, would not be tolerated by a successful business corporation. All of us know that the competition faced by the Defense Department is the sternest in the world, that provided by the military might of the Soviet Union. The single objective of the Defense Department is the nation's security; in this it must be successful…

 

If this little comparison with corporate practices appeals to you as helpful in appreciating the crying need for Defense modernization, I hope that you, and others, will find it useful in awakening the public to the grave seriousness of this matter."

 

President Eisenhower, who was a great admirer of the corporate world, criticized the current dysfunctional organization of the Department of Defense. According to Ike, the D.O.D. should be restructured along the lines of a for-profit business model. With a stronger Secretary of Defense, the Department would streamline its processes, redirect previously wasted funding to new projects, and present a unilateral agenda from a clear and centralized chain of command. Eisenhower warned that if the reorganization was unsuccessful, the consequences would be catastrophic; U.S. failure meant Soviet success.

 

Eisenhower's D.O.D. reforms would be ratified into law four months later, on August 6, 1958, under the Defense Reorganization Act (Public Law 85-599). The Act strengthened the authority of the Secretary of Defense (Eisenhower's C.E.O. in the business scenario outlined above) and also created a new position called the Director of Defense Research and Engineering. Development of new defense technology was of tantamount importance, as the Soviet Union had just launched Sputnik I in October 1957 ahead of the Americans.

 

In the late 1950s, an economic recession had strained the federal budget, leading to growing tensions between the executive and legislative branches over priority spending. President Eisenhower lobbied hard each fiscal year for a sizable defense budget, though his requests were often reduced by Congress.

 

President Eisenhower's Secretary of Defense during this time was Neil H. McElroy (1904-1972). He served in this role between October 1957-December 1959, thereby benefiting from the changes mandated in the Defense Reorganization Act. In civilian life, McElroy had been president of Procter & Gamble, a Cincinnati-based cleaning and personal care products concern.

 

Barry T. Leithead had worked his way up the ranks from Chicago floor salesman in 1929 to New York corporate chairman of Cluett, Peabody & Company by 1966. A zealous Republican, Leithead fundraised for Eisenhower in 1952 and 1956, in the latter year generating $1,000,000 as chairman of the New York State rally. Leithead was also a personal friend and an occasional golfing partner.

 

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