Stockholders of Brewster Aeronautical Corp. met last week to go through a wearisomely familiar routine: elect a new management, its seventh in three years. Ship builder Henry J. Kaiser, his job done (to get Brewster finally into production), was leaving. He gave out the cheerful news that Brewster, after two years of losses, was finally making money. But he warned that this might not last, that the Navy might end its contract for Corsair fighters, the only contract Brewster held.

Two days later the blow fell. The Navy cut Brewster's contract for Corsairs in half, decided that it would not accept any...