Tell Me I'm Right To Call BS On This..

[painter777]

IP's were too pricey to Ordnance because of the COSTs part of the contract agreement. The governments costs ran into the millions to set up the old Maceys Factory for carbine production. The Macey factory was leased back to the Irwin-pedersen Co for $1 annualy.Each accepted carbine would result in the Irwins-Pedersen partnership to receive a fixed fee of $2.00 per carbine. Army Ordnance Dept was looking for a reason to dump the IP contract.
Robert Irwin struggled with the Army Ordnance Department in Detroit over delays in essential equipment needed for manufacturing seven different carbine parts. This equipment was to be provided by the Detroit Branch.
The partnership of the Irwins and Pedersen arms Company was more or less a shotgun wedding arranged by the Ordnance Dept. Set up as a cost-plus-fixed-fee agreement was more or less doomed from the start.
In May 1942 the Irwin Bros learned that, without conferring with them, that John Pedersen had hired George Oliver as a production manager for a pricey sum in the day of $18,000 a year to supervise setting up production machinery. Robert Irwin wrote in his log that Pedersen was a capable gun designer but was not a "practical production man".
Should be noted here that John Pedersen held no shares in this enterprise but consulted for a fee of $2000 per month.
In a letter to the Detroit Army Ordnance Dept Robert Irwin described securing parts cleared by Inspectors at other carbine manufacturers, only to have them rejected by Inspectors at his plant.
Detroit ordnance more or less delayed getting the needed equipment to Grand rapids in their effort to close the contract.
In a letter received by the Irwins on March 23, 1943 Army ordnance let it be known, they would be terminating the IP contract as of 12:00 o' clock midnight, March 31, 1943. It was at this time the Irwins were informed that "uncompleted work undertaken by your company will be assumed and completed by the government or by someone the government may choose to designate".
A letter titled "All Employees" on March 24-43 announced that the plant would shut down March 27 and all employees would be terminated.
On the same date C.F. Runchey of Saginaw Steering gear Div informed the workers that the plant would re-open Thursday, April 1 1943 at which time they would become employees of Saginaw Steering Gear Div.
Saginaw Steering Gear Division of General motors was selected to take over all aspects of the contract (under a similar cost per carbine plan as used in Saginaw) Former employees of Irwin-Pedersen now worked for Saginaw Steering gear of General motors. The plant re-opened April 1 1943.
The contract termination did not completely sever the Irwin's family's connection with the M1 carbine. Not only did the M1 carbine stocks made by Robert Irwin Co. and other parts made by Irwin-Pedersen under the original contract go into the carbines manufactured by Saginaw Steering Gear. A few of the Irwin family members began to work for Saginaw Gear.

HTH,
Charlie-painter777