Western Kentucky University TopSCHOLAR® Defense: Official Weekly Bulletin of the Office for Kentucky Library - Serials Emergency Management

4-22-1941 Defense Vol 2, No. 16 Kentucky Library Research Collections Western Kentucky University, [email protected]

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OFFICE OF PRODUCTION MANAGEMENT, NATIONAL DEFENSE ADVISORY COMMISSION, DEFENSE HOUSING COORDINATOR, DEFENSE COMMUNICATIONS BOARD, COORDINATOR OF HEALTH AND WELFARE, NATIONAL DEFENSE RESEARCH COMMITTEE, NATIONAL DEFENSE MEDIATION BOARD COORDINATOR OF COMMERCIAL AND CULTURAL RELATIONS BETWEEN THE AMERICAN REPUCLICS

WASHINGTON, D. C. APRIL 22, 1941 VOLUME 2, NUMBER 16

!si this issue Summary of the week in defense 2 Save a billion man-hours in production schedule, Knudsen urges 7 Next 100 days vital—push production, make all-out efiort— Biggers 7

PRICES AND CIVILIAN SUPPLIES Steel prices frozen at early 1941 levels 3

PRIORITIES Instructionsissuedfor aluminum suppliers 4

PRODUCTION Usedtin canscouldyield 12,000 tons strategic metal annually . 5

MEDIATION BOARD Agreements reached to settle Board's eighth and ninth cases . . 8

LABOR Strikes overemphasized—Hillman 9

PURCHASES Price situation critical—Nelson press conference 10

STATE AND LOCAL COOPERATION Fifteen States provide for Councils of Defense 12 INTER-AMERICAN COOPERATION Purchases from Latin America running higher than 1940 ... 17

HOUSING New defense housing units total 2,580 in week 18

TRANSPORTATION Warehouse storage space plentiful 21

AGRICULTURE Britain needs bacon and eggs 22 310465'—«I1 ★ DEFENSE ★ April 22, 1941

men and women have been trained for Summary of the week in defense defense jobs since July 1, last. 500 community leaders meet Raw materials and prices drew partic must be kept down so that public morale The role of the private citizen in de ular attention last week as America will not be endangered by exorbitant fense began to receive increasing atten broadened its national defense activities living costs. tion as 500 community leaders met in toward becoming an "arsenal of democ Leon Henderson, in his new role as Washington upon invitation of Paul V. racy" through administration of the Administrator of the Office of Price Ad McNutt, Coordinator of Health, Welfare, Lend-Lease Act. ministration and Civilian Supply, moved and Related Activities. More manganese, rubber, tin, and into this field by freezing steel prices. other strategic materials, as well as tons His aim, he explained, was to forestall Defense housing of iron and steel, were released to de general price increases or possibly infla Recognizing the Importance of the fense industries by the automotive indus tion. Steel was singled out because the home in the defense effort, the Defense try at the instance of William S. Knud- major manufacturers had just granted Housing Division spurred construction of sen. Director General of OPM. The in wage increases of 10 cents an hour. houses for defenfie workers. Out of a dustry agreed to reduce production for total of 48,487 under construction. Co the year beginning August 1, 1941, by 20 Relief for bitumloous-coal producers ordinator Charles F. Palmer said, 25,507 percent or approximately a million units. Cooperative bituminous-coal produc will be occupied by civilians. What this will mean in the making of ers, on the other hand, were given ships, tanks, and guns is indicated in some relief from a similar price-freezing ★ ★ ★ unofficial estimates, based on cost figures. schedule to apply to mines where work Defense industries will gain 200 million has been resumed under retroactive wage man-hours, 1,632,500 short tons of iron agreements. Ralph T. Seward appointed and steel. 18.650,000 pounds of manga Priorities nese, 87,390,000 pounds of rubber, and Executive Secretary of Board 3,470,000 pounds of tin along with other A larger pool of slab zinc, an important The National Defense Mediation Board vital materials. component of military brass, was assured on April 15 announced the appointment defense manufacturers by a priority order Substitutions of Ralph T. Seward of New York City as raising the required segregation from 5 to Executive Secretary. Mr. Seward, who Meanwhile, another approach was 17 percent. At the same time, the Prior is chairman of the Board of Immigration taken to the problem of increasing sup ities Division put teeth in its order gov Appeals of the Department of Justice, plies of raw materials. It was to study erning aluminum by issuing an index the possibilities of substituting more entered his new position April 16. to standardize distribution among non- plentiful materials for scarce metals Mr. Seward has had wide experience in military buyers. There will be no more both in defense and commercial manu the labor relations field, having served as juggling. facturing. executive secretary, and. later, as gen Wider use of low-grade aluminum in Heavy forgings producers began a study eral counsel, of the New York State Labor commercial manufacturing will be al that may lead to a change in specifica Relations Board. lowed, however, by the relaxation of tions and the consequent speeding up of Before entering Government service, priority restrictions. Unnecessary cur production of ships and big guns. Mr. Seward was associated witb a law The public will be urged to accept tailment was corrected. firm in New York City. substitutes in the merchandising field so Army and Navy contracts that aluminum and other vital materials ★ ★ ★ may be released for defense. MaO-order The defense program continued its houses and other merchandisers told the climb in dollars and cents. The Bureau Lumber demand greater than OPM Production Division they will co of Research and Statistics disclosed that operate. Army and Navy contracts let from June production, Commerce reports Less tin in tin cans was foreshadowed 1. 1940, to March 31, 1941, totalled The Department of Commerce reported as can makers said they would consent to $13,022,000,000. a 10-percent reduction In the tin coating the demand for lumber, increased by de on cans if the Government asks it. De Labor fense purchases, is substantially greater than the current rate of production. fense would gain 5.000 to 7,500 tons of Better industry-labor cooperation was This is true, the Department said, even tin by such a curtailment. Another apparent as the Defense Mediation Board though lumber production reached an 12,000 tons could be procured annually settled three more strikes. Sidney Hill- from used tin cans, the National Academy imusually high level in 1941. The con man, OPM Associate Director General, sumption total for the first quarter of of Sciences told OPM. told newspaper editors that, exclusive of 1941. estimated at 7,465 million feet. Is Steel prices frozea coal, only 8,000 defense workers were on approximately 22 percent above the total But national defense is not all a prob strike as of Friday. A labor reservoir for the first quarter of 1940, the Depart lem of providing raw materials. Prices meanwhile is growing. Some 816,000 ment stated.

OFFICIAL BULLETIN of the OfBce for Emergency Subscription rates by mall: 76« for 52 issues; 2&t Management. Published weekly by the Division of for 13 Issues; single copies 5^, payable in advance. Information, Office for Emergency Management, and Bemlt money order payable directly to the Superin printed at the United States Oorernment Printing tendent of Documents, Government Printing Office. Office, Washington, D. O. Washington, D. O. t ! 3

April 22, 1S41 ★ DEFENSE ★

AND CIVILIAN SUPPLIES ... Steel prices frozen at early 1941 levels Previous price and consumer orders to continue in e€ect A schedule frceaing steel prices at the tion, certain contracts have escalator levels which prevailed during the first clauses which enable producers to add Tlie following ruling was issued April quarter of 1941 was issued April 17 by certain additional costs to contract 16 by Leon Henderson, Administrator of Leon Henderson, Administrator, Office prices. The net effect of the defense the Office of Price Administration and of Price Administration and Civilian program and the cost and price relation Civilian Supply, Office for Emergency Supply. This action was precipitated. ships in the industry thus cannot im Management: Mr. Henderson explained, by recent wage mediately be determined. Under such 1. All price schedules, instructions, an increases in the industry. circumstances a general price increase nouncements, forms, and notices here Mr. Henderson pointed out that a steel cannot reasonably be Justified at present. tofore Issued, promulgated, or adopted, price increase at this time might touch and all committees formed by the ad "Coolins-off" period off a general increase in the cost of liv visers on price stabilization and consumer ing and start the country off on the road "The action taken to freeze steel prices protection, members of the Advisory to price inflation. at levels prevailing during the first quar Commission to the Council of National Defense, or by the Price Stabilization and A thorough study of prices and costs ter of 1941 should not be interpreted as Consumer Divisions of the Advisory Com in the steel industry will immediately be fixing summarily a steel price ceiling for mission to the Council of National De made by the Office of Price Administra the duration of the emergency, or for fense, are hereby ratified, adopted, and tion and Civilian Supply, he said. Ad any set period. Rather, it is an effort continued in effect, until modified, termi justments in the schedule will be made, designed to be as helpful to the industry nated, or superseded, as price schedules, he added, if these studies indicate that and its customers, of which the Federal instructions, announcements, forms, no they are necessary. Government is the largest, and to the tices, and committees, of the Office of "I have every confidence." Mr. Hen economy in general. The action estab lishes, if you like, a cooling-off period Price Administration and Civilian Sup derson said, "that the steel Industry, during which the effect of the defense ply and the Administrator thereof. which has so patriotically coperated In program upon the industry and it5 cost 2. This ruling Is Issued under, and in the defense progi'am, will continue to factors may be rationally appraised. execution of the purposes of. Executive cooperate in the task of maintaining order No. 8734. issued by the President these ceiling prices. Halts hasty action on April 11. 1941. tssued this 15th day of April 1941. Foundation for price spiral "Estimates and guesses are not enough Leon Henderson, Administrator. when the Nation's welfare may be at "Steel is an element of cost in prac stake. This action also forecloses arbi ★ ★ ★ tically every item of the defense program. trary or precipitate action on the part It is also an element of cost, direct or in of any member or group of members of Bituminous coal price direct, in virtually every item of civilian the industry looking toward price boost consumption. The market place looks schedule mcdiSed ing, and eliminates premiums for ad to the price of steel as sheep look to the vanced delivery which a few companies Modification of tlie bituminous coal bellwether. have already begun to exact. price schedule to avert hardship for mines "A rise in steel prices would inevitably where work has been resimied under "We are immediately taking steps to be followed by rises in prices of every retroactive wage agreements during strike resolve the prevailing uncertainties as other basic commodity. These increases settlement negotiations was announced to cost factors, production requirements, would in turn be reflected in rising prices April 16 by Leon Henderson. Administra of manufactured goods. Presently the and distribution, both as to defense and tor, Office of Price Administration and ultimate consumer would find that he civilian needs. Meanwhile, prices should Civilian Supply. must pay more for what he buys, and so not be advanced. This modification took the form of a the foundation would have been laid for "If facts are developed which show supplement which permits bitumSnous a dangerous upwai-d spiral of prices in that an Increase might be warranted, the coal sellers operating under such condi general—which would mean, briefly, necessary adjustments can be made. tions to sign collateral agreements with boosting the cost of living. "It cannot be too strongly emphasized purchasers. Under such agreements, an operator Is "There has not been time for accurate that any steel price increase now can put permitted to obtain, for coal rained after measurement either of production or us on the road to a scries of economic the price schedule is revoked and there distribution factors in the steel industi-y. maladjustments having their climax in has been substantial resumption of p:o- a disastrous inflationary movement." Price increase not justifiable ductlon, an agreed sum equal to the max Bass prices used imum price set up in the schedule plus Despite the fact that published base the increase In costs necessitated by the prices have remained unchanged, con In fixing celling prices, Mr, Henderson retroactive wage agreement. cessions have disappeared, extra charges explained, the Office of Price Adminis "Because of the depressed nature of tha have been Increased, and in some cases tration and Civilian Supply made u.5e of bituminous coal Industry," Mr. Hender- premiums have been obtained. In addi (Continued on page 14) iContinued on page li) ★ DEFENSE ★ April 22,1941

PRIORITIES ... Instructions issued for suppliers of aluminum

An index instructing suppliers of alu ucts, B-4; aluminum cooking ware; for tain larger quantities than would other minum how to classify purchasers' or hospitals, B-3; all other uses, B-8.

PRODUCTION...

to submit proposals for the use of exist Used tin cans could yield 12, tons ing facilities In their several plants in the four large metropolitan areas, name strategic metal annually ly, New York, Pittsburg, Chicago, and San Francisco, and proposals for the erection A committee of the National Academy 3. Of the proposals submitted to the of such other plants where the Govern of Sciences estimated April 16 that a Advisory Commission to the Council of ment of the United States, through the maximum of 12,000 long tons of tin might National Defense, one is a repetition of cooperation of the municipal authorities, be recovered annually from used tin cans an old process not today considered an is able to set up effective methods of col in the United States but it advised economical practice; one presumably lection of used tinned containers. against Government financing of new has just been started in operation and (4) Inasmuch as a practicable solution detinning plants for such operations has not been Investigated by this com of the problem of collection of used "unless and until an emergency in the mittee; the proponent of one has made tinned containers is a condition precedent supply of tin renders it imperative to con no response to our request for informa to any undertaking by the United States serve tin without regard to its cost." tion; and one gives complete and Government to recover tin from used The committee's recommendations detailed experimental results and engi tinned containers, it is suggested that a were made in a report to the Office of neering plans for a pilot plant. survey of municipal methods and facili Production Management, which will con 4. Two successful private enterprises ties for the collection and disposition of sider them in formulating policies to be are recovering tin from clean tin-plate refuse be made by a competent commis put into effect by its Unit of Conservation. clippings and other scrap from the fab sion. ricators. These enterprises have five Members of the committee of the Na Tin cans from principal cities plants, two in the New York area and one tional Academy of Sciences submitting Only about half of the used tin cans each In the Pittsbui-gh, Chicago, and the findings and recommendations are: in this country could be collected eco San Francisco areas. Messrs. P. M. Ambrose, M. P. McConnell, nomically for tin removal, the committee 5. These companies have in some of W. K. Lewis, and F. W. Willard, chair estimated. Under the program which their locations surplus plant facilities man. the committee outlined for possible use in which could be converted for use in the Copies of the complete report, and an emergency, such used cans would be recovery of tin from used tinned con Supplements I and n, may be obtained on collected only from the principal urban tainers collected in the respective areas. request to the Division of Information, areas, and, initially, in those cities where 6. The principal problem, and the one OEM, Washington, D. C. detinning plants now exist—New York. most difficult to solve, Is the economical Pittsburgh, Chicago, and San Francisco. collection of used tinned containers in ★ ★ ★ the principal urban areas in a condition Varied uses as to contamination with other refuse Tin-can manufacturers In addition to its use in the preserva so that the tin can be recovered by exist tion of food, both for military forces and ing and proven technology at a reason consider various civilians, tin is used in the manufacture able cost. conservation measures of automotive vehicles, in bearings, sol Committee recommendations ders, bronzes, and gun metals. Principal Representatives of can-making com producers of tin are the Malayan States, (1) That the Govermnent of the panies on April 17 told officials of the the Netherlands East Indies, Bolivia, United States does not spend public funds office of Production Management that, if Siam, and China. The United States for the erection of new detinning plants the Government found it necessary to re Government is currently acquiring re for the recovery of tin from used tinned quest a 10 percent reduction in the weight serve stocks of tin for use in case an containers unless and until an' emer of the tin coating of cans, such a reduc emergency disrupts imports. gency in the supply of tin renders it im tion could be made safely for about 95 Findings and recommendations of the perative to conserve tin without regard percent of all tin can uses. Committee bearing on the problem of to its cost. Their statements were made in re recovery of tin from used containers, (2) That the Government of the sponse to an inquiry as to whether a follow: United States, immediately upon the reduction of about 17 percent in the finding of such an emergency, enter into weight of the tin coating might be made Findings of the committee negotiations with the municipal authori to conserve the tin supply for defense 1. The recovery of tin from used ties of the larger urban areas to the end and essential civilian needs. tinned containers is not an undertaking that suitable methods of collection can. Representatives of various can-making which "venture" capital would make if by such cooperation, be instituted, it be companies expressed the opinion that It is competently advised. ing understood that the necessity requires such a large reduction should not be 2. Of the 35,000 to 40.000 long tons of it as a defense measure without regard made. tin used annually in the United States to cost. for making tin plate for containers, not <3) If and when the Government of No reduction for baby foods more than 12,000 long tons can be re the United States finds it imperative to Can representatives opposed any re covered at any cost by any procedure that so conserve tin, that it immediately ask duction in the weight of the coating of the Committee feels is at all practicable. the detinning industries above mentioned cans used for baby foods, kraut, and high ★ DEFENSE Tir April 22. 1941 acid fruits such as cherries. These prod Future is unpredictable Division of Purchases, declare that con ucts fill about 5 percent of the cans used servation was "imperative." "It Is also well known that the total in this country, it was estimated. world's ship tonnage is declining and that Reporting that the Army and Navy and other Government departments were al the situation In the Far East is not Paiat industry coaserves ready changing their specifications in stable. Representatives of the companies re many instances to conserve scarce mate "The canning industry requires over ported that paint manufacturers were al rials, Mr. Nelson mentioned that enough 50 percent of the tin consumed in this ready switching from the use of tin- aluminum to butld 16 bombers will be country. It would seem desirable now plated to terne-plated cans, with some saved by using a substitute for aluminum to explore the extent to which savings exceptions. Terne-plate is made of tin in addressograph plates. could be effected in nonessential uses, and and lead, requiring less tin than tin-plate. to pi-epare plans or orders which would Representatives of mall-order houses They said also that they were studying and other large merchandisers informed become effective In the event of an possible savings in many other lines. Mr. McConnell that they had been work emergency. They expressed hope that all savings ing for months on the substitution of made would be without discrimination Conservation possibilities more plentiful materials for scarce mate against any single group of can users. "Several approaches to the problems rials in goods they sell by mail and through retail outlets. They all agreed to Estimated saving suggest themselves: 1. A savings on the order of 10 or 15 increase efforts in this field. Every com pany represented expressed willingness It was estimated that a saving of percent of the total requirements might to assist the Conservation Unit in any 5,000 to 7,500 tons of tin per year could be be effected by reducing the gauge of the way possible. made by a 10 percent reduction in the tin plate used. coating of tin cans on which such a re 2. Conservation of tin could be effected Coaferees duction could be made safely, and by through curtailment of deliveries in tin savings now being accepted by Industries cans to those customers who could most Those who attended the conference in using cans. Such a saving would com readily provide substitute containers. It cluded: Earl D. Weil and M. J. Spiegel, pare with a total tin consumption of ap is roughly estimated that approximately Jr., of Spiegel, Inc., Chicago; Paul H. proximately 70,000 tons in the United 20 percent of the total volume of the Nystrom, Limited Price Variety Stores States during the calendar year 1939. canning production is for the account of Association. New York City; E. Gudeman. OPM officials reserved judgment tem industries which could provide substi Sears, Roebuck & Co., Chicago; C. D. porarily as to what reduction in tin can tutes at no great hardship or inconven Unger, Pep Boys—Manny, Moe, and Jack, coatings, if any, they would recommend; ience. Philadelphia: J. W. Miller, Montgomery Ward Co., Chicago; P. E. Conner, West Supply sufBcieat at present 3. The Technological Committee of the National Academy of Sciences is working ern Auto Supply Co., Kansas City; A. D. Mr. McConnell's statement at the out on the problem of substituting other al Whiteslde. Priorities Division, OPM; T. set of the meeting follows: loys and surfacing materials. In the J. Lynch and J. L. Pratt of OPM, and "There is no emergency in tin. The meantime, suggestions from the industry Margaret Hardy and Dickson Reck of tlie meeting has been called primarily for may be offered at this meeting for the consumer branch of the Office of Price the purpose of advising the canning com guidance of that Committee. Administration and Civilian Supply. panies on the situation regarding the 4. Increase of average size of can will ★ ★ ★ present and future tin supplies and to reduce amount of tin plate required- initiate preparation of plans which could No. 10, 6 pounds 12 ounces, requires 53.6 be put into effect for the conservation of percent of amount of tin plate for the Manulacturers agree to same quantity of canned goods packed tin in the canning industry, If an emer slash motor-vehicle gency should develop in the future. In No. 2 size, 20 ounces." "Current imports of tin are sufficient production 20 percent ★ ★ to meet current demands for defense and * civilian reqiurements. Stocks now In the William S. Knudsen, Director General, country are sufficient for about 14 Merchandisers plan substitutes Office of Production Management, on months' operation." for some products, they report April 17 issued the following statement: I have just concluded a meeting witii Immediate actioa uanecessary Mail-order houses and other large mer the leaders of the entire automobile and "Ship masters regard tin a desirable chandisers advised the Office of Produc truck producing Industry, which I called cargo as ballast for bulkier shipments. tion Management April 18 that they to consider the growing defense produc tion job that faces us. As of today the situation as regards tin would intensify efforts already being The entii-e industry willingly accepted supplies is easy. Drastic action is not ex made to substitute goods made of more an Initial 20 percent reduction in the pected to prove necessary or desirable plentiful materials for those made of production cf motor vehicles for the under present conditions. scarce materials vital to defense. model year beginning August 1 this year, "It is, however, well known that the in order to make available more man Government is accumulating a stockpile Aluminum substitute power, materials, faculties, and man of tin and that any conservation meas At a conference called by Robert E. agement for the defense load now being ures that could be put into effect which McConnell, chief of OPM's Unit of Con made ready. did not Increase the burden of industry servation. the merchandisers heard The reduction will amount to approx or disrupt business would be helpful." Donald M. Nelson. Director of OPM's imately one million units. April 22, 1941 ★ DEFENSE ★

More expansion expected in Save a billion man-hours in production forgings for ships and big guns schedule, Knudsen urges—equal to Manufactiirers of heavy forgings for ships and big guns are exploring the 10,000 medium sized bombers with guns possibilities of speeding up deliveries by changes in specifications and the sub Excerpts from the address of Mr. Wil Amortization stitution of more plentiful materials for liam S. Knudsen to the Boston Chamber We had a lot of trouble getting started scarce metals. of Commerce, April 15, follow: Eighteen laeavy forgings producers are with this amortization business. You In plants, we had to start something probably remember some of the people Investigating this field as the result of when we came down here because in a conference in Washington last week insisted that if you amortize 20 percent certain branches of ordnances there a year, in 5 years you'd have given them with representatives of the Army, Navy, weren't any plants. For instance, for the plant for nothing. Maritime Commission, and the Office of powder and T. N. T. There were no It took Us a little while to make it Production Management. plants that amounted to anything and clear to them that the tax bill didn't The producers will submit suggestions we had to go out and build them. deal with anything but tax and what shortly to the affected Government de In airplanes, we took the existing we were really dealing with was 20 per partments and agencies, and these agen plants, particularly motor plants which cent of 20 percent, or 21 percent of 20 cies will decide whether the suggestions the British and French had helped to shall be put into effect. percent which means that after 5 years build up to a certain size—very small about 21 percent had been absorbed in at that. We had to expand them. Less precise finishing actual cash. We had a terrible time with We had to go to a lot of people and Relaxation of tolerances is one possi some of the brightest statesmen who ask them to put additions on their plants bility being explored. This would mean said we were giving plants away. In order to get going quicker. less precise finishing in certain cases Now, I don't want to give anj^thing where eflSciency would not be impaired More than $2 billion in plant expansio»s away, but we had to do something to protect the manufacturer who was will by such methods. Substantial savings The net result today is that we have ing to Invest his own money in a de in both man-hours and machine-hours started and certainly within 60 days will fense program. We couldn't have It might result. complete 784 projects all over the United all done by the Government. Substitutions States at a total value of $2,138,000,000, about one-third of which is privately fi Tool makers do job It is believed that deliveries can be nanced under Government guarantee, speeded up also by substituting more The first thing we ran up against was and the balance financed directly by the the shortage of machine tools. I do want plentiful materials for scarce materials Government because the plants involved to say this for the machine tool industry when the plentiful matei'ials will pro will have no commercial value to any ex duce as good or better results. tent after the emergency is over. (CoJitinued on page 13) Expansion needed The need for a considerable further expansion of facOities to produce heavy Next 100 days vital—push production, forgings was confirmed at the confer ence of producers and Government employ subcontractorsj make all-out officials. There had been indications at a pre effort, Biggers warns vious conference on Friday, April 11, that such an expansion would be re Speaking before the Boston Chamber sal and stupendous are applicable if you quired by increased needs of the Army of Commerce, April 15. John D. Biggers, wish to use them. and Navy, the lease-lend program, and Director of the Pi'oduction Division, Automobiie industry 30 years in growing the Maritime Commission. It will be OPM. said in part: in addition to one now being made at I needn't say a single word about the We all think of the motorcar industry a cost in excess of $40,000,000. urgency of this task. Your reading of as the industrial phenomenon of the The additional expansion has now be the newspapers—your listening to the twentieth century, and rightly so—its come a matter of negotiation between radio—should give you the answers as to growth was well-night miraculous, and the Individual companies and affected the question of time. it transformed our ways of living. Yet, agencies of the Government. It is ex I think that the defense effort before gentlemen, please consider that the au pected that financing will be an-anged us could truly be called at this moment tomotive industry grew from a volume through Emergency Plant Facilities the greatest job on earth. It is pro of $229,000,000 annual sales in 1910 to contracts. Under the terms of such con gressing well, but we can't be satisfied. $3,012,000,000 in 1940—a growth of some tracts the Government reimburses the The demand for speed, the demand for thing over 1,200 percent in 30 years. contractor for the full cost over a 5- more and more is so great that we can Airplane production zooms year period and the contractor obtains never be satisfied. the right at the end of the 5-year period I will tell you as to the magnitude of The Army, the Navy, the industrial to pass title to the facility to the Gov this job—I will give you two examples, ists of America, guided in this program ernment or to repurchase it. if I may, to prove that the words colos (Conti7iued on page 13) ★ DEFENSE ★ April 22. 1941

MEDIATION BOARD...

had been laid for "extremely harmonious Agreements to settle Mediation Board's relations and greater cooperation for national defense." The company paid eighth and ninth cases reached last week for the bus. and the union for the re freshments at Mt. Vernon. The National Defense Mediation Board Accordingly, just before the time set last week (April 14-20) received certifi for the hearing, representatives of both Snoqualmle Falls lumber cation, and 3y2 days later obtained an groups called the Board and asked for The other strike settled last week was agreement to settle its first presti-ike case. an hour's postponement. In the inter that of the Snoqualmle Falls Limiber Co.. Also, during the week, it settled the long ests of an early settlement of the dis Snoqualmie Palls, Wash., where 1,060 est defense strike of the current emer pute, the Board agreed, and later ex members of the Lumber and Sawmill gency and received certification of 4 new tended the postponement until 6 p. m. Workers, AFL, had been on strike sines cases. A total of 15 cases have been and again until Saturday morning at October 28, 1940—the longest defense 10, on the understanding that there certified to the Board (see chart) and 9 strike during the current emergency. would be no strike in the meantime. of them have been settled. The rest are During its course, the strike had resulted pending. Amicable agreement in a sympathy tie-up by the Brotherhood Tne prestrike case involved two plants of Carpenters and Joiners, AFL, of a of the Minneapolis Moline Power Imple Both sides continued to negotiate into large Army airport under construction at ment Co. in Minneapolis and Hopkins, the night, and, at 3:45 a. m. Saturday, Everett. Wash., and a threat by the Sea Minn., and locals 1138 and 1146 of the reached an agreement to end the dispute. man's Union of the Pacific, AFL, to i*efuse United Electrical, Radio and Machine Later in the morning they called at the to carry lumber from any of the other Workers of America, CIO. The plants, Board's ofBces and signed a "memoran mills of the Weyerhaeuser Timber Co,, which employ a total of 2,100 men, have dum of agreement," which provides for parent company of Snoqualmie. defense orders for structural steel for a contract running until December 31, airplane hangars and shell casings for 1942. Details of the contract will be The case was certified to the Board the Army. worked out later. April 1 and hearings began April 9 after The Union on March 6 filed intention The company and union negotiators the sympathy strike had been postponed to strike 30 days later, in accordance then chartered a sightseeing bus and all at the Board's request. Five days later, with the provisions of the Minnesota law. went off together for a 3 hour tour of the longest negotiations yet held by the A commission of three, appointed by the Washington and Mt. Vernon. after issu Board, a complete agreement was Minnesota Governor, investigated the is ing public statements saying that a basis reached. It was ratified by the union sues involved, and, on April 4, filed a series of recommendations. These rec STRIKES CERTIFIED TO NATIONAL DEFENSE MEDIATION BOARD ommendations were accepted by the union but not by the company. The

union then voted to strike in both plants Date of at midnight. April 15. Date back-to- Date Cbso Location Date of strike certified issues Status to Board settled Strike deadline postponed Late In the afternoon of Tuesday, April 1. UnircrsalCyclops Bridgeville. Pa Tan, 31.. 1,100 Mar. 27 Mar. 28 Mar. 28 Closed. 15, the case was certified to the Board. Steel. Working against a strike deadline that 2. Vanadium Corpo BridgcTille, Pa.... Feb. 10. m ...do Mar. 30 Board Investl- ration o{ Amer gatin? is.

In Snoqualmie Palls on Saturday by a vote of 9 to 1. LABOR ... Certifications In addition to Minneapolis Moline Fair appraisal of labor relations Power Implement Co., the new cases cer tified to the Board were a strike since shows strikes are overemphasize April 7 by Lodge 68 of the International Association of Machinists, APL, against approximately 50 machine shops in and many disputes settled peaceably around the San Pi-ancisco area affiliated with the California Metal Trades Asso Addressing the American Society of Fair appraisal urged Newspaper Editors, April 18, Sidney Hill- ciation, in which 1,500 men were directly In the strikes which have occurred, man, Associate Director General, OPM, involved and 8,000 indirectly; a strike surely we have no right to place the stated in part: since April 4 by the Steel Workers Or blame upon labor without informing our- • We are all engaged in a historic strug ganizing Committee, CIO, against the selves as to the underlying reasons. gle to preserve the kind of world in which Birdsboro Steel Foundry & Machine Co., When large profits are reported in the a free press is possible, and no force in Birdsboro, Pa., involving 1.209 employees, press, labor justly feels it is entitled to our national life can make a greater and a strike since April 3 by the Federa some fair share of them. When labor contribution to the success of that strug tion of Dyers. Finishers, Printers and is denied various rights guaranteed to it gle than our own press. Bleachers of America, CIO, against the by law, labor cannot be expected to sit by I want to speak today about coopera Arcadia Knitting Mills Co., of Allen- without protest. town, Pa. tion. It is the story of how American labor and American management are An honest and fair appraisal of any The California Metal Trades Associa strike requires careful diagnosis. No one tion case was certified to the Board April helping to defend America. You perhaps more than any other can reasonably assume that these stop 15 and a hearing was set for 10 a. m. pages are entirely the fault of labor. Tuesday, April 22. The Birdsboro Steel group perceive that to meet the totali The mere fact that a picket line is more Foundry & Machine Co. case was certi tarian challenge both from without and within, the latent productive strength dramatic than a decision of a Board of fied April 17 and a hearing was also set Directors does not relieve us of the obli for Tuesday at 10 a. m. that is in democracy must be mobilized more speedily and more effectively than gation for clear and fair analysis. Other developments ever before. This strength, as I believe, Probably more adjectives of an unre strained character have been used in Other developments dux'ing the week is rooted not only In our physical re connection with strikes than about any Included an agreement to go back to sources, our industrial equipment, and other subject in recent days. Those who work in the Phelps-Dodge Copper Prod our labor energy, but also in a spirit of have been engaging in that kind of ucts Co. case v/liile the Board would cooperation. rhetoric may think that they are serving continue negotiating. This agreement, Only through teamwork can we the cause of defense but they are sadly which was reached April 14, failed to be achieve the greatest possible output of mistaken. ratified by the union involved, local 441, defense materials. We in the Labor Division, first in the United Electrical Radio and Machine General harmony in labor relations Workers of America, CIO, at a meeting NDAC and now in the OPM. are seeking the following day. The panel recon daily—in a variety of ways—to enable The great majority of American em vened Friday, April 18, and met all day management, Government, and labor to ployers share with the great majority of and all Saturday with representatives work together to achieve the utmost limit American labor unions the credit for the of the company and the union. The of our productive capacity. unusually small number of strikes in the meetings were then adjoiu'ned until Wed last year. nesday to give a special representative of Strikes small part of picture Among the chief reasons for the pres the Board opportunity to investigate cer Let us consider the highly publicized ent hai-monious state of affairs, which tain issues and report facts to the panel. question of strikes. prevails by and large between labor and The Board also learned that the agree I wonder how well known is the fact management, is the wide-spread growth ment settling the Standard Tool Co. case, that most Industrial disputes are settled of collective agreements in American in which had been reached Saturday, April without any stoppage. Every week hun dustry during the recent years. This 12, was ratified by the union (UAW- has been particularly true in the indus dreds of labor contracts expire and are CIO) at a meeting in Cleveland Tuesday tries that are today concerned with de renewed without evoking even a ripple. night. fense. Issues which in former years gave I have had occasion in recent months In the case of the Cowles Tool Co., also rise to strikes are now settled through of Cleveland, which involved the same lo to report on the strike situation—first, machinery set up in collective agree cal of the United Automobile Workers, before the House Judiciary Committee. ments between organized labor and efforts by the United States conciliator At that time, I detailed the facts about management. In Cleveland last week failed to bring strikes and urged that no additional legis Even more important in this connec about an agreement and the case was lation was called for to handle the strike tion is the patriotism and vision of the set for further hearings with the Board situation. I said that the problem rather leadership and the rank and file of or on Monday, April 21 at 10 a. m. Pievious was one of enabling management and ganized labor. They have unstintingly meetings with the Board had been held labor to Improve and perfect their ar given their support to the defense in Washington April 11. rangements of voluntary cooperation. program. 10 -k DEFENSE ★ April 22,1941

PURCHASES ... Price situation critical; Purchases Purcha&iDg assistance Q. Will your office assist the manu Division working closely with new facturers holding Government contracts to buy materials at the right price? price control agency—Nelson A. We'll do anything that's necessary to get these goods at the right price. I On April 16, the press "went to mar ing circle. That can be prevented in mean we would prefer, of course, to ket" with Donald M. Nelson, whose my opinion by maximum price controls. buy the fiiushed articles. In other agency, the Division of Purciiases, OPM, words, we would prefer to buy a finished to date has cleared $1.5 billion In defense Hides aod leather shoe. If, however, through any combi orders. Q. Would you include hides on this nation of circumstances, the manufac Regarding prices, Mr. Nelson replied to list of possible commodities which might turers can't get their upper leather or the press as follows: be subject to control? can't get their sole leather at the right Q. Do you see any prospect at any time A. Not hides but maybe certain grades price. I believe it's a good buying prac In the near futui-e of having to put into of leather, particularly where the Army tice to go in aiid buy that material our effect stricter price control than we uses a very large percentage of total selves if we can get it cheaper than they have now? of retanned leather. There is plenty of can and in some cases we can. I am A. L«t me say this on prices. In my black but to get the tan leather it may perfectly prepared to recommend to the opinion the whole price situation is in a be necessary. Army that we buy the material ourselves rather critical shape. Unless we can or do anything that may be necessary prevent the spiralling by other means, Food prices all right for present to get these things at what I consider price controls may have to be put in. Q. How about foodstuffs, Mr. Nelson? the right price. Maximum prices may have to be set. A. I don't see any reason for food Q. By that you mean to say that an stuffs at the present time. Coordinated buying order will be issued fixing all prices as of Q. I understand that some unit of a certain date? Close cooperation on prices OPM has asked the Treasury Procure A. Well, I don't think there is a neces Additional excerpts from Mr. Nelson's ment Division not to make any more sity yet for fixing all prices. I think we press conference follow: purchases of textiles for the Govern will have to fix those that are definitely Q. Do you anticipate working with ment. cotton textiles, until after the de running out of line. Mr. Henderson's new office? fense requirements have been placed? Q. But ultimately do you see any pos A. Very definitely. In the past we A. No, that isn't true. What we have sibilities of fixing all prices by arbitrary have worked very closely together and asked them to do, we have asked a order as of a certain date? we will work closely with him in this. number of Government agencies to do A. I hope not. I hope it can be pre We have found his office, before, ex the same thing, is to allow us to coor vented by other means, because price tremely helpful in making awards. We dinate those purchases. For instance, control definitely involves a lot of other have, in many cases, where we felt they If it is bed sheets, we go into the market things. were at all interested cleared through his and try to buy one lot of bed sheets Specific price problems office and through the Consumer's Divi sion and through the Labor Division. rather than have a lot of lots coming Q. Would you cai-e to be specific on Then we used our best judgment as to out. If possible, use the same specifi what fields are critical? what we should do. Leon Henderson's cations in order that you can get longer A. Well, that is a matter of just com Division has been extremely helpful to runs and greater products in a mill, to mon sense. If you find a scarcity, if the us where prices were out of line. see that we don't unnecessarily buy too total demand in this country for both Q. Mr. Nelson, have you found any much at one time where we don't need defense and civilians is so great that it attempt to profiteer in any specific in it for a long time. causes scarcity and building up unneces dustries? Say, for the case of cotton? sarily of prices for those things, it may A. Profiteering is a word like hoard Defense goes to market be necessary as in the case of aluminum, ing that I don't like to use. I think both Q. Can you give us an idea of new zinc, copper; the textile fabrics may re words are extreme words. Now, there purchasing procedures that you have de quire it. has been some evidence that some man veloped in connection with the Ai-my's Let's make it plain—we don't mean to ufacturers have, what I thought, tried fresh foods. prevent price increases. Price increases to get too much insurance for contin A. What we have done primarily- may have to be made. Just as in the gencies that may or may not happen in looked forward to one thing. What we case of steel there may be certain grades their pilces. So far—I will say this very want to do is to spread those purchases of steel that may have to have price definitely—we have been able to get the all around the country so that we aren't Increases, but what we want is to try to goods at what I consider fair prices even draining some particular locality of all prevent prices and wages from chasing though some of the prices asked were of the fresh goods or all of canned food each other by the tall in an every widen higher than I thought they should be. or all of any of a particular kind of food April 22, 1941 -k DEFENSE ^ 11

and thereby run up the price in that New plants under Lend-Lease program ple. Now we are buying diamonds for particular locality. stockpile: we have appropriation Pub Q. Are ttiere going to be many new Q. Has that policy been applied to lic 117 for the buying of industrial dia plants built as a result of the Lend-Lease purchases generally or is that limited to program? monds. Now whenever we can get those eatables? A. Probably as a result of additional diamonds at anything like the right price A. One the first things we did in programs which are necessary for our from South America we want to take setting up the new procedure, when we South American diamonds before we get Army. came in we found that things like our Q. There will be additional plants them from any other section of the textile fabrics, mattresses, blouses, over built? Have you any ideas— world, here again Increasing the money coats, etc., were all bought f. o. b. the A. I think of straight-out Government that goes in there; the more that we Philadelphia depot. Now that buying of plants there will not be more than 15 can buy from them, the more they can f. 0. b. Philadelphia depot gave the plants as far as I know at the present time. buy from us. Immediately around a great Advantage Hiere will be other plants, of course, that It so happens that Brazilian diamonds over all of the other plants in the United we will have to help finance the expan are the best for industrial use. They States. sion of. are harder, and it is a very logical thing We felt that in the interest of national to buy Brazilian diamonds. So that in defense the advisable thing to do was to Diamonds from South America our buying program for the stockpile get as many facilities as we could work Q. I may say that I am interested In we are attempting wherever it is possi ing on Government stuff, for two rea the South American situation. ble to get them and at a reascnable dif sons: First, directly selfish pertaining to A. Yes, let's look at our policy of pur ference In price, a difference In price national defense—the more sources of chasing industrial diamonds, for exam justified by the difference in quality. supply that you have the greater you are able to get supplies quickly. It is com- monsense. Secondly, it helps the economy of the Compilation of defense contracts cleared whole country as those purchases are spread around the whole country. It and awarded April 16 through April 30 Isn't just a case of submitting to the pressure of people who want something. Defense contracts totaling $104,160,640 Hartford, Conn.; construction, acquisi That isn't it at all. were awarded by the Army, Navy, and tion, and Installation of plant facilities Maritime Commission and cleared by the and equipment at East Hartford and Each producer limited Division of Purchases, Office of Pro Pawcatuck, Conn., plant; $1,035,400. A. Then the next thing we did was duction Management, during the period Cooper-Bessemer Corporation, Mount to limit the quantity that could be made April 10 through April 16. Vernon, Ohio; construction of propelling by any one concern. For instance, in This compares with $166,645,661 for machinery for 15 motor minesweepers the shoe contracts, we caid in the invi the previous week and $109,056,265 for of YMS45-134 Class; $1,860,000. tation to bid that we wouldn't award the week ended April 2. Thompson-Starrett Co., Inc., New more than 15 percent of the total amount Cleared contracts awarded by the War York. N. Y.; foundry and extension to to any one concern. Department during the latest period to structural shop at navy yard, N. Y.; Again that enabled more people to taled $25,053,245, by the Navy Depart $1,650,000. get in on the bid. It familiarized more ment $56,600,245, and by the Maritime Willamette Iron & Steel Corporation, sources of supply with Government Commission $22,507,150. Portland, Oreg.; plant expansion for methods, with selling the Government, shipbuilding; $542,000. CONSTRUCTION and it will spread out our resources Nelson-Pedley, Inc., Philadelphia, Pa.; so that In an emergency we could get War DepartivIEHT construction of storehouse at Navy Yard, Philadelphia: $720,000. more goods quickly, which again we American-Friedman-Bitullthis Asso thought was commonsense procedure. ciates, Houston. Tex., construction of ad Maritime Commissioh vanced pilot training school at Victoria, Scientific selection of plant sites California Shipbuilding Coiporation, Tex., $1,525,000. Los Angeles, Calif.; six shipways; $4,- Q. I beheve you are also chairman of A. Farnell Blair, Decatur, Ga.. con 330.000. the Plant Site Committee. How about struction of 14 warehouses at Atlanta, Oregon Shipbuilding Corporation, in the same line for spreading out? General Depot, Ga., $4,271,084. Portland, Oreg.; three shipways; $1,- A. In the plant sites, very definitely. Navy 538,000. What we are trying to do there—we Richmond Shipbuilding Corporation, don't pick sites—the Site Board of OPM General Machinery Corporation, Richmond, Cailf.; six shipways: $4,- does not pick sites. It is the objective Hamilton, Ohio; construction and in 878,000. cf the Plant Site Board to see that inso stallation of additional plant facilities, Houston Shipbuilding Coiporation, far as it can be done without interfer tools and equipment, at Hamilton plant; Houston, Tex.; three shipways; $1,- ing with or slowing up the defense pro $1,499,000. 993,000. gram these plants which are built by Cooper-Bessemer Corporation, Mount North Carolina Shipbuilding Corpo the Government are located in areas Vernon, Ohio; construction of propelling ration; Wilmington, N. C.; three ship- where there are unemployed workers, machinery for 14 minesweepers of ways: $2,492,000. rather than concentrating them in spots AM82-99 class; $3,766,000. Bethlehem-Fairfield Shipyard, Inc.; where the workers will have to move and United Aircraft Corporation, Hamil migrate. ton Standard Propellers Division, East (Continued on page 23) 12 ★ DEFENSE ★ April 22, 1941

STATE AND LOCAL COOPERATION ...

with the California League of Munici States now have ive palities, serving the Pacific and Moun tain States area; and Mr. Frank Finney for Councils of se of Indianapolis, Ind.. former State Com missioner of Motor Vehicles, serving the Thirteen of the forty-three State legis Home guards States in the Great Lakes area. latures meeting this year have now en To date 20 States have enacted laws acted measures providing for a State providing for a State Home Guard Unit New assigmnsnts Council of Defense. Laws on this subject to serve in the absence of the National As a result of the additions to the staff, have been approved in 1941 in Delaware, Guard. These States are: Delaware, In assignments of the field representatives Indiana, Iowa, Kansas. Montana, Ne- diana, Iowa, Kansas, Maine, Maryland, appointed earlier have been revised in brasiia, New Hampshire, New York, New Hampshire, New Mexico, North some cases. States served by the Divi Pennsylvania, Rhode Island, Washing Carolina, North Dakota, Oregon, Penn sion's field representatives are now as ton, West Virginia, and Wyoming. sylvania, South Carolina, South Dakota, follows: John M. Barringer—Kentucky, Two State Defense Councils were es Tennessee, Texas, Vermont, West Vir Ohio, Tennessee, West Virginia; George tablished by law in 1940 (Maine and New ginia, Wisconsin, and Wyoming. Jersey). M. Bull—Colorado, Louisiana, New Mex Other laws enacted ico, Texas, Wyoming: Willard F. Day- Other legislation considered Four States have enacted laws pat District of Columbia, Maryland, Vir Other important defense legislation terned after the model Sabotage Preven ginia; Mi's. May Tliompson Evans—Civic considered in the legislatures has been tion bill: Arkansas, New Hampshire, and women's groups; J. W. Parley—Con concerned primarily with the "Legisla Tennessee, and Verm.ont. necticut, Maine, Massachusetts, New tive Program for Defense" drafted by Legislation to regulate the manufac Hampshire, Rhode Island, Verm.ont; State officials upon the recommendation ture, sale, and possession of explosives Frank Finney—Illinois, Indiana, Michi of the Federal-State Conference on Law has been enacted in five States: Georgia, gan, Wisconsin: Howard Gardner—Ari Enforcement Problems of National De New Hampshire, New Jersey, Vermont, zona, California, Idaho, Montana, Ne fense which met in Washington, D. C., and Washington. vada, Oregon, Utah, Washington: L. L. August 5 and 6, 1940. This program, Other types of legislation related to Gravely—Alabama, Florida, Georgia, which includes model bills on Sabotage the defense program which have re Mississippi, North Carolina, South Caro Prevention, Explosives, Interstate Public ceived favorable consideration are in lina ; A. C. Tilley—Ai'kansas, Iowa, Kan Property, State Guard, and Fresh Pur the fields of housing, zoning and plan sas, Minnesota, Missouri, Nebraska, suit by Military Forces, has met with ning, civil rights, firearm's, un-Ameri North Dakota, Oklahoma, South Dakota. favorable consideration in most of the can activities, eminent domain, recrea current sessions. tion and welfare, health and education. ★ ★ ★

Field staff expanded to assist Mr. Gravely was for a number of years a member of the North Carolina Stats Cooperate with Defense State defense councils Senate. Contract Service, Bane Mr. Barringer was city manager of Appointment of five new field repre- Flint, Mich., for 5 years. urges councils isentatives in the Division of State and Mr. Bull was formerly director of re Local Cooperation has been announced gion V of the Public Works Adminis Close association between the State by Frank Bane, Director of the Division. tration, with headquarters in Fort Worth, and local defense councils and represen These additions bring to nine the repre Tex. tatives of the Defense Contract Service sentatives in the Field Section, of which Mrs. Evans has been director of the Section will aid the Federal Government Mr. Allen Moore is chief, who are avail North Carolina State Employment Serv in obtaining detailed information con able to assist State and local defense ice and was at one time a faculty mem councils on problems of organization cerning State industrial resources. Prank ber at the Woman's College of the Uni Bane, Director of the Division of State and coordination of defense activities, versity of North Carolina. particularly civilian defense, and Local Cooperation, has pointed out. The new field representatives are John Other field personnel Such contact will effect a more wide W. Farley of Needham, Mass.; L. L. spread utilization of State resources in Gravely of Roclcy Mount, N. C.; John M. For several months, four other field the defense program, he stated. representatives have been engaged in Barringer of Piint, Mich.; George M. Bull V/here the situation warrants, the Dis similar activities. These men are: Wil- of Denver, Colo.; and Mrs. May Thomp trict Manager of the Defense Contract son Evans of North Carolina. lard F. Day of Richmond, Va., formerly Service will designate one person to work Mr. Farley has been director of the manager of Henrico County, serving the with the State defense council to de Massachusetts Committee on Public Southern States: A. C. Tilley of Lincoln, Safety, which has been active in de Nebr., formerly Nebraska State engineer, velop arrangements for such informa veloping plans for civilian defense in serving the prairie States; Howard W. tion service, reports, recommendations, that State and the surrounding area. Gardner of Berkeley, Calif., associated suggestions, advice and assistance as may 13 April 22, 1941 ★ DEFENSE ★ be rendered by the State and local de Machine tools fense councils. The machine-tool industry has multi (Continued from page 7) Two-way help plied its productivity 300 percent above any previous year in its history in the Many State defense councils have al that you have done a magmScent job. World War years, yet that is not enough. You made $200,000,000 wOtth of tools ready conducted comprehensive indus Tliere are not enough new machine tools trial surveys or have obtained, in coop in 1939. You made $40,000,000 in 1940, to equip the factories that are needed and we are nov/ running at the rate of eration with the State's industrial com for this program. mission, detailed information regarding $750,000,000 worth of tools. The men are working 6 and 7 days a industrial facilities v/ithin the State. Subcontracting These data, and similar information week and a magniacent job has been compiled in the future, are to be made Take the work so far as you can by the done. subcontracting processes to the unem available to the district office of the Anticipating demands Defense Contract Service Section. The ployed labor, wherever it may be found. councils of defense will also submit any Don't rely solely upon the expansion of On materials we are beginning to fe3l reports and recommendations which your own facilities iu the industrial cen the pinch; on zinc, nickel, and tungsten, might assist in proper interpretation of ters and the drawing away of labor from aluminum, and magnesium, and proba its homes into these centers. the information. bly there will be other places where we In areas where there is no Federal Re Subcontracting is not easy—we don't will feel it in civilian consumption. I serve bank or branch, it may be possible think so. It is always easier to do things imagine that within 6 months or so, for the State or local defense council to yourself than to teach somebody else to maybe a year, some of us are going to be develop, under guidance of the District do them. You have to organize to sub awfully unpopular 7;hen we have to con Manager of the Defense Contract Serv contract intelligently. As Mr. Knudeen serve materials, but I can assure you that ice Section, informational data and re says, you have to "mother" the job. You we are trying to analyze the demsnds ports which would be of assistance to the have to supervise. You have to help so that we can, as far as possible, antici District Manager and which otherwise your subcontractors find themselves and pate them and create more capacity. would not be available to him. adapt their facilities to your problem and you have to help them with inspection— Save a billion hours ★ you have to help them all along the line. * I don't like to talk about money. 1 If you do it, it will be a contribution to like to talk about hours. I think you the Nation and it will be a satisfaction heard me say before that in cur origi and profit to yourselves. nal program we started last June or July (Continued from page 7) Subcontracting profits prime contractor with 18.000,000 man-hours to be included very largely by Mr. Knudsen's own superb in the British orders at that time. With You may say you can't make the same knowledge and personal direction, have what is projected ahead of us now at percentage of profit on subcontracting to take an industry which in 1939 totaled least 60 percent are right in sight and $278,000,000 and in 3 short years build work. In some cases I think that is we might even go beyond that. true. In all cases that I know of where it to an annual productive total of over There will be about a billion man- it has been done conscientiously, effec $4,000,000,000 so that what was done hours a month expended iu the program in 30 years in the automotive business has tively. it has resulted in increased net as we know it now. A billion man-lioura to be more than repeated in 3 years. profit to the parent company—to the is a lot of hours. If you could save a bil prime contractor. After all in an emer Ordnance greater job than aircraft lion hours or if we could save a billion gency we shouldn't worry about percent hours, that would make 10,000 medium Second, In giving you an Idea of the ages of profit. sized bombers with guns and equipment magnitude of this job I would like to and. gentlemen, that is worth trying for. turn to ordnance. Ordnance, as you Real mass production know, includes guns and ammunition and Some mention was made by your ★ bombs and tanks and cannon and such * * chairman of my recent reference to the like. fact that to my own honest belief we are It is difficult—It is complicated, it is within 100 days of the beginnings of real New chairman appointed for very difierent from the manufacture of mass production—that is my belief. the products of peacetime, as many of Production Planning Board you manufacturers know. The task be Cut 10 days from effort Appointment of Robert E. Doherty, fore us in ordnance percentagewise is I appeal to you men of New England president of the Carnegie Institute of far greater than the task before us in Technology, as chairman of the Produc aiixraft. if you can believe such a thing. who have achieved the imposible in times past to help your country once again. I tion Planning Board was announced Ordnance funds increase 14,000 percent think by an all-out effort, by working April 15 by John D. Blggers, Director of the Division of Production, Office of The appropriations of the last 20 harder than we have ever worked before Production Management. years for ordnance have averaged $28,- in our lives, harder than we ever thought 000,000. Tlie appropriations now passed we could work, we can cut 10 days off Dr. Doherty will replace Samuel R. Puller, Jr. Mr. Puller was recently ap exceed $4,000,000,000, and that means an these next 100 days and those 10 days Increase in ordnance production of may tip the scale our way. I plead for pointed chief of the Materials Branch, 14,000 percent. that kind of patriotic devotion and effort. OPM. 14 ★ DEFENSE ★ April 22, 1941

Coal ... Stabilise rents now and avert legislative {Continued jrom page 3} son said, "the actual prices on March 28. control, consumer chief urges housers 1941, which constitute the maximum prices contained in Price Schedule No. 5, Both voluntary and legal controls are Tenancy changes approximate the minimum prices fixed by necessary to maintain fair rents in vital the Bituminous Coal Division. The in industrial areas, Joseph P. Tufts, chief "The rise occurred most often when dustry is practically unique in that these of the housing section in the Consumer there was a tenancy change. In some prices, generally speaking, do no more Division of the OPACS, said on April 18 cities, such as Gadsen, Ala., and Akron, than to return to producers their average in an address before the National Asso Ohio, nearly 100 percent of the units in costs. ciation of Housing Officials, Cincinnati, the sample which had a tenancy change "Consumer protection will not be di Ohio. Mr. Tufts' speech In part follows: showed an increase. The dollar average minished by the supplement, since the "Much of the labor beginning to be of each increase tended to lie between $2 March 28 price ceiling is maintained for employed In defense industry has been and $3, or about 10 percent, but for many all coal above ground. Collateral agree unemployed or underemployed for years. areas there have been individual reports ments are not permitted unless the coal Current wage scales are naturally higher of far more exorbitant increases. One is newly mined under a retroactive wage than WPA wages or relief benefits. But family reports an increase from $6.50 to agreement. Moreover, future compensa if these wages are an excuse for rising $11 per week between January and tion is limited to actual increases in cost living costs, rising rents, rising prices, March 1st, for a third-floor cold-water at the normal rate of production." and still higher living costs, the spiral flat, located in a midwestern industrial will be under way and we will be repeat town. It is quite common to receive re ★ ★ * ing the unfortunate experience of the ports of increases from $20 to $30 or last war. Since all factors in the cost $35 per month on old houses where no of living are interrelated, the stabiliza repairs have been made. (Continued from page 3) tion of rents now is of the utmost "We must realize, as indicated fay the the steel industry's existing basing importance. Bureau of Labor Statistics surveys, that point, price leadership, and extras sys rent is a total community problem—not tem. Thus the first-quarter price for a Sharp increases simply a problem of the in-migrant de given type of steep product is simply "Since the declaration of the emer fense worker. Its effects are more seri the sum of three things—the basing point gency, defense localities large and small ous on the permanent worker who has base price, extras (both as defined in have shown sharp increases in the total lived and intends to live in his com the price schedule) and transportation number of tenants reporting rent rises. munity. It affects the worker who has charges. For products on which there In cities such as Norfolk, Mobile, Jack come off WPA and relief rolls. What are no base prices, the ceiling price is sonville, and Birmingham the number happens to a worker who, after years of to be the price as of March 31. 1941. of increases has run from 20 to 33 out of partial employment or unemployment finally gets a job only to see one-third Evasion not possible each 100 rental units. For units below $30 the total rent bill to one-half of his weekly wage vanish The schedule provides that price ceil In cities such as Indianapolis, Pittsburgh. because of extortionate rents? ings may not be evaded by additional Detroit, JaclKonville, Norfolk, Mobile, charges for prompt delivery, or by other Relief families direct oi- indirect methods. Contracts Memphis, and New Orleans has shown a substantial increase. According to the entered into before issuance of the price "But rent increases most seriously af March collections of the Bureau of Labor schedule, containing escalator clauses fect families still on relief. They are which might send prices above the oeil- Statistics the same tendency is spreading caught between their inability to pay and ing, may be carried out unchanged. to Baltimore, Philadelphia, Seattle, Port the demand by workers with jobs who land, Oreg., and Buffalo. The schedule requires manufacturers want and need housing. Reported evic to retain copies of all invoices, dated "Last September the Consumer Divi tions of relief families are mounting— January 1, 1941, or later, relating to sion requested the Bureau of Labor Sta another definite Indication that even our sales to warehousemen, jobbers, brokers, tistics to measure the effect of the worst housing is again on the market and all other persons purchasing for defense program on rentals by special and is again paying dividends. There is resale. The order further states that surveys of typical defense areas. Ship no answer to this problem except a more reports on such sales will be required by building centers such as Camden; middle realistic public-assistance policy with supplements to the schedule. western industrial centers such as South respect to the payment of fair and rea Bend: aircraft centers such as San sonable rents for fit dwellings and a Additional acHon if necessary Diego; New England industrial centers vigorous effort to keep rents in line with "If the information gained through such as Bridgeport, have been surveyed reasonable housing standards. this procedure and from other sources and resurveyed. On the basis of a care reveals that middlemen in the industry fully chosen sample it was concluded that Fair rent committees are profiting inordinately at the expense the nimiber of rental units showing an "Where rent problems have arisen or of consumers of iron and steel products, increase often hit between 25 and 50 out are threatening, we are requesting local further action will be taken to remedy of every 100 tenant families. Eliza defense councils, or, in the absence of the abuse," Mr. Henderson asserted. beth, N. J., gives a clear indication of such councils, the mayors to appoint fair- The price schedule, Mr. Henderson how much more substantial is the fre rent committees. These committees, said, was issued after it had been sub quency of increase for units under $30; composed of equal representation from mitted to and considered by the Price for the city as a whole it was 29 out of Administration Committee. every 100; for units Under $30, it was 60. {Continued on page 16) April 22, 1941 ★ DEFENSE ★ IS

News for Retailers

This material, which appears weekly in DEFENSE, is designed to Service on the acreage intended for 1941 help merchandise managersand buyersfor retail stores. It is prepared by Indicate an increase for this season of 13 percent over the 1940 plantings for the Consumer Division, OEM. canning or other manufacture.

Beef sented. The following facts are made Sweet corn available through the cooperation of the The Purchases Division of the OCflce Bureau of Agricultural Economics of the The total supply Including carry-over for Emergency Management has just an United States Department of Agriculture. at the beginning of the 1940 marketing nounced that the United States will.be There was a large production of season was 18.4 million cases. Stocks of In the mariiet soon for canned corned canned vegetables in 1940 but shipments canned corn held by canners on March beef, particularly from South America. have been unusually heavy, partly be 1 totaled 6 million cases compared with The background of this development is cause of the increase in consumer pur 9.7 million a year earlier. During the as follows: chasing power. Carry-overs at the be first 7 months shipments were 2 percent Canned corned beef is largely used as ginning of the 1941 season, which begins more than in the corresponding period an emergency ration. With the Increase August 1, will therefore not be much of the previous season. In the size of the Army since last June, larger than normal. As a result of the The carry-over, at the ciuient rate of the Ai-my had to augment its purchases improving domestic demand, it is prob consumption, will be about 1.2 million of all kinds of beef. In February the able that still larger packs will be needed cases, all sizes. Late March acreage in Purchases Division held a conference in 1941, tentions of sweet-corn processors point •with representatives of the American Tomatoes to an acreage increase in 1941 over the Livestock Association at which It was 1940 plantings of about 22 percent. If agreed that some purchases of South The total pack of tomatoes for the these plans for 1941 are carried out, it American canned beef are necessary to 1940 season, beginning August 1, was 29.1 Is Indicated that this year's acreage for provide canned meat requirements for use million cases which, plus a carry-over processing will total 400,600 acres, com by the armed forces in the field. of 2.2 million cases, gave a total supply pared with 327,170 acres in 1940. of 31.3 million cases. Stocks of canned In addition to this, an amendment to Green peas a recent Army appropriation bill pro tomatoes in canners' warehouses on vided that purchases in South America March 1 totaled 10.1 million cases a^s At the beginning of the 1940 market may be made when adequate supplies at compared with 8.2 million for the previ ing season the total supply, pack and reasonable prices cannot be obtained ous year. Shipments to that date were carry-over, was 27.7 million cases. This larger by 10 percent, however, than in here. total was 4.2 million cases larger than the corresponding season of 1939. The It Is understood that Army purchases that of the previous season. On March larger shipments reflect an improved do of imported canned beef are not to ex 1 stocks of canned peas in canners' mestic demand. Since the consumption ceed 20,000,000 pounds for the fiscal year warehouses totaled 6.8 million cases. of tomato juice apparently is on the up 1941. Purchases by the Army since June Shipments during the 9 months from trend, it is likely that a larger quantity 1. 1940, to date, of canned beef are as June 1 to March 1 totaled 21.2 million follows; Corned beef, canned. 6.600,000 of tomatoes will be needed for juice pro cases, compared with 16.6 million cases pounds; beef dried, canned, 400,000 duction in 1941 than last year. during the same period of the previous pounds; hashed corned beef, canned, At the beginning of the year the whole year. If shipments continue at the 16,400,000 pounds. sale price of tomatoes was 55 cents a same rate, the carry-over into the 1941 season will be 2.2 million cases. It is estimated that the Army will use dozen of No. 2 cans. It later advanced about 6 ounces of fresh beef per day per to 60 cents and for the last few weeks has Coffee man. With an Army of 1,440,000 men been at 65 cents per dozen. This price the annual consumption of fresh beef will is above the level of 1939 and 1940 for the The Inter-American Coffee Agreement be approximately 200.000,000 pounds. same periods. has been put into effect through the srgning of the protocol of the agree Army purchases of all kinds of beef, Snap beans however, will remain at a small percen ment. This means that the Inter- American Coffee Board will be set up tage of total annual production. The fig The total supply at the beginning of immediately so that various urgent prob ures given above, should be judged in the 1940 marketing season was 10.2 mil lems can now be considered regarding relation to a total annual production of lion cases. Stocks in canners' ware the coffee situation. Including recent beef which ranges from 8 to 9 billion houses on March 1 totaled 2.1 million trends in wholesale green coffee prices. pounds. cases. Shipments for the first 7 months were 12 percent larger than dui-ing the Next week Canned vegetables same period of 1939. Assuming a con An article on prices and supplies of Increased domestic consumption of tinuation of the same demand, the can-y- men's summer clothing will appear next canned vegetables makes it appropriate over at the end of the season will be week; also, information on defense or that the latest facts with reference to neglibible. Processors of snap beans re ders in relation to the flow of consumer supplies and current rate of use be pre porting to the Agricultural Marketing goods. 16 ★ DEFENSE ★ April 22, 1941

and paper industiy would appear to be deliveries. For the great bulk of transac ilize rents one industry concerning which the Office tions in most industries, however, this Is not importaut. of Price Administration can reasonably (Continued from page 14) "The refusal of mnnufacturers to quote hope that it will not need to take any a specific price at the time of sale, and their Insistence that goods be sold on the basis landlords, tenants, and the public, will drastic action. of prices prevailing at the time of shipment, publicize the facts about rent increases "It is gratifying to receive the assur is harmful In three Important respects. The in their area; will call upon real-estate uncertainty concerning future prices has ances of the representatives of the pulp a disruptive effect on markets and may lead boards for self-discipline; will appeal to and paper industry attending this con to the hoarding of supplies and speculative the reason, civic pride, and fairness of ference that the industry will cooperate price increases. Ou the manufacturing side, there is the danger of IncSciency in produc their communities; will point out the with this office in its effort to maintain tion resulting from the knowledge that cost dangers inherent in rent rises; the evils price stability. Such cooperation should increases can more easily be passed on. and the opportunity may be created to charge of a large labor turn-over which may made it unnecessary for the Price Admin unjustified prices because of the difficulty result from unwarranted rent increases, istration to take more direct measures to of determining the general prevailing price. and the hazards of a general price spiral. "There is the further tendency when guard against price spiralling in the pulp goods are sold on a price-prevailing basis to Fair-rent committees will resort to con and paper industry." eliminate the bargaining which is necessary ciliation and negotiation to restore fair Among those present at the conference to the maintenance of fair prices. Buyers are forced to place orders and leave to the and reasonable rents. They may make were the following representatives of the seller the final determination of the price. use of all the legal sanctions available In pulp and paper industry; R. A. Hayward, The dangers of such a procedure are obvloias. a community against landlords who in This type cf arrangement between buyer and Kalamazoo Vegetable Parchment Co.; seller has been called "blank check buying.' crease rentals without obeying the local Cola G. Parker, Kimberly Clark Corpora The attempt of certain clothing manufac sanitary and safety ordinances. They turers to impose this practice in the fall of tion; R. E. Canfield. counsel, American 1939 met strong opposition from retailers will, when the case warrants it, publicize Paper & Pulp Association; W. J. Dison, and v/as finally abandoned. specific instances of extortionate rental St. Regis Paper Corporation: Clyde Mor "Several weeks ago I recommended the practices. general adoption of three pricing policies gan, Rayonier, Inc.; J. L. Riegal, Riegal which should be followed by both manufac Legislative action Paper Corporation; R. J. Cullen, Interna turers and distributors of consumer goods tional Paper Co.; and E, W. Tinker, tn the present emergency. To this I should "We hope that the fair-rent commit like to add a foiu-th, that all orders between American Paper & Pulp Association. manufacturers and retailers should quote a tees will succeed in eliminating some of specific price and that no order should con the most outstanding grievances. If the tain a 'price prevailing" provision. With the ★ ★ * cooperation of your organization and of the voluntary measures fail, it will be their other members of the Retailers" Advisory duty to turn to the proper authorities for Committee, I am sure that a solid front can legislative action. Pricing recommendation be presented to support my recommenda tion." "Today only three States have intro duced fair-rent legislation. Again facing on consumer goods Previous recommendations realities, it is doubtful whether many Miss Harriett Elliott. Consumer Com This is the fourth price policy recom State legislatures will pass or even con missioner, Office of Price Administration mendation made by Miss Elliott to manu sider such measures before they adjourn and Civilian Supply, warned manufac facturers and distributors of consumer this year. It is natural for them to wait turers and distributors of consumer goods, in a general program to main until a situation has become acute and goods, April 18, that the practice of sell tain consumer prices at fair levels, and even threatening before taking legal ac ing merchandise at the "price prevailing" to prevent price spirals. Previously, tion. Because of this the Consumer Divi at time of shipment rather than selling Miss Elliott urged them to avoid price sion of the Office of Price Administration at a specific quoted price at time of advances based on anticipated cost in and Civilian Supply plans to enlist every sale, will encourage upward price spirals. creases which have not yet materialized, citizen and every ofScial in each defense Miss Elliott's statement was in reply to average the cost of stocks on hand center In an attempt to prevent rent in to Roscoe R. Rau. executive vice presi with the cost of new goods when prices creases through voluntary means." dent of the National Retail Furniture advance, and to avoid rigid adherence * ★ It Association, who had notified her that to traditional rates of mark-up. some manufacturers of refrigerators, ★ ★ ★ and paper manufacturers ranges, and other household appliances were instituting "price prevailing" to maintain price stability MOVIES FOR THE TROOPS methods of selling. Prices of paper should remain stable The uncertainty resulting from use of The War Department has annoimced for some time to come. Leon Henderson, the "price prevailing" practice would that construction will be started imme Administrator, Office of Price Adminis have a disruptive effect on markets and diately on S6 motion-picture theaters tration and Civilian Supply, announced might lead to the hoarding of supplies to assure adequate facilities for the en April 12 after a conference with repre and to speculative price increases, Mi-ss tertainment of troops at 29 posts and sentatives of some of the foremost pulp Elliott said. camps in various parts of the Nation. and paper manufacturers in this country. Full text of the letter to Mr. Rau Designated as temporary types, the "The estimated siu"plus of paper capac follows; theaters are scheduled for completion ity In the United States and Canada over "Thank you for your letter of April 1. in 90 or 100 days. They will then begin the estimated consumption for 1941 will concarnlng the 'price prevailing" method of showing regular feature films, shorts, amount to approximately 5,193,000 tons," pricing. I consider this practice to be against the best interests of conBumers and a di and newsreels supplied by the United Ml'. Henderson said. "This surplus exists rect encouragement to an upward aplraling States Army Motion Pictiue Service. It in all but a few relatively unimportant of prices. There may be cases in which the is estimated that the theaters will cost Uncertainty concerning future costs makes grades of paper. Accordingly, the pulp ib impossible to qUote firm prices for distant more than $1,500,000. April 22, 1941 ☆ DEFENSE ★ 17

INTER-AMERICAN COOPERATION Shipping problems U. S. purchases from southern neighbors But once the bases for an expanded running 40 percent higher than in 1940 trade had been established, the problem of ships arose. As British shipping losses have increased, and as the expansion of The economics of the good-neighbor Detour from eccnomic guidsposts our Army and Navy has required more policy were discussed by Joseph C. Ro- A second element to be taken into ac vensky. Director of the Division of Fi auxiliaries, as well as more tonnage to count is the fact that we cannot always carry material and personnel to our nance and Industry. Office for Coordina be guided by strictly economic lines. An newly acquired bases, the temptation to tion of Commercial and Cultural Rela emergency demands fast, decisive action. withdraw ships from the inter-American tions between the American Republics, It may well be that in speeding into pro lanes has been great. Less than half the before the New York Chapter of the duction a new source of strategic mate ships in regular service between United American Institute of Banking, April 17. rials we shall be complicating the post States ports and the East and West Mr. Rovensky said in part: war situation. But today nothing can be Coasts of South America are United The freedom of every nation in the allowed to hold up our production lines— States flag vessels. Americas is at stake. If the powers that there are too many uncertainties in the PYeight rates have risen heavily to have made Europe a shambles are ever situation and too much pressure for im constitute still another problem. The permitted an entering wedge into the mediate results to set up and adhere to Americas, the democratic free life of all various governmental agencies are en strictly economic guideposts that would listing the cooperation of the shipping the American Republics will be threat be possible in an orderly and leisurely companies to keep on inter-American ened and the procedure of joint inter- pursued peacetime program. shipping lanes enough tonnage to carry American action dangerously menaced. The primary problem since the war our purchases from Central and South broke out has been to maintain the pur Flexibility of operations America and to deliver their essential chasing power of American countries so requirements. Our approach to the economic and fi that they might continue to import their nancial problem has been complicated by minimum requirements for a healthy U. S. sole source of supply three factors: level of economic activity. Beyond the shipping problem, lies an First, the situation is fluid, shifting, even more crucial situation. Today we dynamic. It requires great flexibility of War struck blow at markets alone can supply the manufactured and operations, in the absence of anything semimanufactured goods which the The first solution was financial. Since to which you can tie as a continuing base. southern republics heed. continental Europe had taken 1 out of For instance, the continued revamping We must deliver to our neighbors their of our production schedules entails fre every 11 or 12 dollars worth of goods minimum requirements, whatever prior quent alterations in commodity situa produced in Central and South America, ities it may require over less essential tions. The case of copper might be cited. the loss of these markets hit these coun needs In our own market. TTie need is Where 6 or 8 months ago, prospects for tries with terrific force. immediate. The relation to our defense moving Latin American copper were ex While the American Republics mar effort is urgent. tremely poor, hundreds of thousands of shalled their forces to meet the situation, tons have now been bought and produc ★ ★ ★ tion is at a high level. In other cases, the United States stepped in with finan surpluses have melted away to become se cial assistance. Around $125 million iii NEW COMMUNSCATIONS rious deficiency problems. credits was made available by the Export- DIRECTOR As the theater of war expands, there is Import Bank to some 10 countries to ease pressure to divert ships from Inter- the exchange situation, and the Treasury Nelson A. Rockefeller. Coordinator of American trade lanes, with serious effect entered Into a stabilization-fund opera Commercial and Cultural Relations be on the movement of goods. For instance, tween the American Republics, an tion to the extent of $50 million. only recently the extension of the war to nounced April 12 the appointment of Don Yugoslavia caused the withdrawal of cer Trade increases Francisco as director of the Communica tain Yugoslavian ships, at a time when tions Division of the Coordinator's Office, the shipping situation is already acute. Our buying from Central and South succeeding James W. Young, Again, changes in British purchasing America has increased steadily as pur Mr. Francisco has served in the Com requirements from time to time necessi chases have been diverted to the southern munications Division of the Coordinator's office, in charge of radio activities, since tate revision of estimates of the foreign republics, defense requirements have exchange and commodity positions of in October 1940. He has recently completed grown, and our businessmen have vigor dividual countries: on tiie east coast, for a 3 months' tour of Central and South example, any changes in the purchase of ously explored potential sources of America, during which he surveyed prob cereals or pastoral products strike home complementary commodities that can be lems in connection with the work of the with serious consequences. marketed in the United States. Communications Division. 18 ★ DEFENSE ★ April 22, 1941

HOUSING... New defense housing units total 2,580 in one week—Pennsylvania leads

Construction contracts for 2,580 new 88 units; are for married, enlisted house defense workers In Baltimore, Md., dwelling units were awarded under the personnel. was made April 14 by Charles P. Palmer, Coordinated Housing Pi-ogram for the Defense Housing Coordinator. week ending April 12. C. F. Palmer, Co Total units completed In a letter to John M. Carmody, Fed ordinator, announced. 48,487 units in There are now a total of 6,761 dwell eral Works Administrator, Mr. Palmer 136 localities of 47 States and Territories ing units ready for occupancy, of which requested that work begin as soon as are now under construction contract, of 128 units were completed the week end possible on the defense homes which which 29,507 are for families of defense ing April 12. 4,143 of these units are represent the final portion of a 2,000-unit workers, and 18,980 for the married, for families of workers in defense indus program for the Baltimore locality, sub enlisted personnel. tries and 2,618 for families of enlisted mitted to the President and approved by personnel. Ai'eas with newly completed Penasylvaoia leads him February 3, 1941. units are: Rantoul, 111. 30; Norfolk, Va. Construction will be financed with Philadelphia and Erie, Pa., both rap 30; both for enlisted personnel, and New funds provided for under the $150,000,000 idly expanding under defense contracts, port News, Va. 36; Portsmouth, Va. 32; Lanham Act. received 1,030 of these units for civilian for civilian workers. The letter to Mr. Carmody follows: Industrial workers. Ellwood City, Pa., Allocations for the week ending April April 10, 1941. received 100 units. Other areas to be 12 were made for 150 units to the Defense Mr. John M. Carmody, awarded construction contracts were Bir Homes Corporation for defense workers Admmistraior, Federal Works mingham, Ala.—300 units; Pedricktown, engaged in shipbuilding yards at Orange, Agency, Washington, D. C. N. J.—100 units; Ravenna-Warren, Tex., raising the total number of units Dear Mr. Carmody: Reference is made Ohio—200 units all for civilian industrial for which funds have been allocated to to Special Locality Program Report No. 1 workers. Quonset Point, R. I., with 262 72,953 units. 46,955 are for civilian in for Baltimore, Md., prepared January 23, units; Corpus Chrlsti, Tex.—500 and dustrial workers and 25,998 are for the 1941, and authorized by the President on Port Buchanan, San Juan, Puerto Rico— married enlisted personnel. February 3, 1941, providing for 2,000 family dwelling units. DEFENSE HOUSING FINANCED BY PUBLIC FUNDS: SUMMARY AS OF APRIL 12, ]»4! Subsequently, we requested that you Under construction Allocated Completed proceed with the forwarding of the part contract of this program involving the erection of

Apr. 12 Apr. S Apr. 12 Apr. 5 Apr. 12 Apr. 6 1,000 dwelling units, but that the second 1,000 be held in abeyance until further Number of states BDd territories 47 47 43 15 notice. Number of loealities-.- .i. 136 136 103 27 Number of Projects 280 25S 169 20 27 You are now requested to proceed with Number of family dwelling units (regular) 72,953 72,803 48,487 45,^ 6,761 6,033 Cirilian industrial workers in prirate dcfeose the construction of the second 1,000 units iodustry 23,980 23, S80 12,823 II, 723 1,G9I 1,655 Civilian industrial workers lo Government but with the following modification as to plants 13,026 12,876 10,286 9,656 1,166 1,134 Other civilians, employed by the Army and location recommended In the Special Lo Navy 9,949 6,363 1,286 1,286 cality Program Report: Married enlisted personnel 2S,ee8 18,980 18,230 2,618 2,558 Number of family dwelling units (trailers) 2,035 1,8S9 1,859 Seven hundred and fifty units are to be Civilian industrial workers in private defense industry 1,839 1,835 1,659 erected near the factory of the Glenn L. CiTllian industrial workers in Government plants - 200 200 200 200 Martin plant. Essex, Baltimore County, Number of units for single persons. B, 34S 5,345 3,601 3,601 Md. We understand that you now have under advisement the purchase of land for this project from the Glenn L. Martin 5 which takes in ail of the United States Louis Scarborough appointed Co. Mr. Martin has requested that con and possessions west of western Missouri, sideration be given to the availability of Asst. Regional Coordinator except Texas and the city of Tacoma. this land. ★ ★ ★ Appointment of Louis Scarborough as Two hundred and fifty family dwelling Assistant Regional Coordinator of the Di Baltimore defense workers units at an approximate shelter rent of vision of Defense Housing Coordination to get 1,000 additional between $25 and $35 per month are to was announced by C. P. Palmer, Co be located in the vicinity of Sparrows ordinator. housing units Point, Md., in order to provide housing Mr, Scarborough will have a permanent for families of defense workers in the office in San Francisco or Berkeley and A request to proceed with construction Bethlehem Shipbuilding Co. Since the will cover the territory Included in region of an additional 1,000 dwelling units to issuance of the Special Locality Program April 22, 1941 ★ DEFENSE ★ Id

Report, a problem involving the Negro employees of the Bethlehem Co. has been presented to us and we are of the opinion that the best interests of the Baltimore business collapse, Mr. Palmer teOs meeting program will be served to divert these 250 units from Essex to SpaiTows Point. Excerpts from the address of C. P. good year—there were only 456,404 non- In regard to the site selection, may we Palmer, made to the National Association farm dwelling units constructed by the suggest that the representatives of the of Housing CiScials, April 18, follow: building industry. These remarkable agency to whom you assign this project Speed has been the watchword, and totals are related to an estimated annual be instructed to confer with Kent MuIIl- I think you will agree with me that we need of approximately 600,000 units with ben, of the Federal Housing Administra have had action. which to oSset obsolescence, demolition, tion in Baltimore, and James Edmonds, During the past 3 weeks public defense and increase in population. chairman of the Baltimore Housing housing units have been made available Authority. for occupancy at the rate of 1,000 a wees. Beginniug of Governn^ent housing It is our understanding that this proj During the next few weeks this tempo In addition, we find, over a 7-year pe ect will be desirable as a permanent addi will be stepped up. riod, that PWA and the United States tion to the locality's low rental housing At the same time private industry has Housing Authority have built a total of supply, although period of use In con raised its beat with the result that small 127,258 units, some of which are still nection with defense activity is uncer home construction is showing gains of under construction. This building has tain, It is primarily for this reason that approximately 30 percent over last year helped in cur present situation, but ob we suggest that you advise with the local on average, while in some defense areas viously it could not possibly measure up authority by invitation. this margin has even attained 200 per to normal needs. It could not come up Sincerely yours, cent. to normal needs even if we forgot entirely C. P. Palmer, Coordinator. Thus far, we have allocated public for the moment the requirements precip funds for the construction of more than itated by the dislocation of populations ★ 75.000 homes, accounting for substan brought about by the defense effort. tially all of the money thus far made Advice welcome Community leaders back available to us by Congress. Those 75,000 houses are more than all the nonfarm The Federal housing agencies now defense social-aid program dwelling units built in the United States working on the defense program welcome public and private combined In either the advice from well-informed local sources Summoned by the defense chiefs of the year 1932 or 1933 or 1934. on the probable future growth of the Nation, 500 community leaders from Why are we doing all of this building? community under normal peacetime con cities and towns in all parts of the coun We are doing It because one of the great ditions, and accordingly, on the policies try met in Washington April 17 to or problems of the defense effort is to as to adopt as to permanent or temporary ganize a Nation-wide mobilization of sure a continuity of employment in the construction. civilian effort to back up the Govern factories and plants which turn out the Post-war slum clearance ment's morale program in the Army, the material that will protect our lives, oui" Navy, and the defense industries. homes, and our institutions. The possibilities of slum clearance as an instrument of future adjustments are Immediate action Neglisence of the past much greater today because of the en The delegates were presented with an Outside of the defense picture how do larged responsibilities of the Federal Immediate plan of action which was de we stand, anyway? Was our present job Government. We all know that after the veloped, in cooperation with the defense made more easy by previous accomplish war there must be a public works pro leaders, by the United Service Organiza ments, or is the truly critical situation gram to prevent the post-war collapse tions for National Defense, Inc. This today the result of our failure to provide of business. There will be money for body has been organized by and for the when we might have been able to do so slum clearance and reshaping of our purpose of using the far-flung organiza more easily. cities. Here, too, the instruments will be at hand, if we have our plans in shape tions, facilities, and experience of six na I have some figures here with whicn and know what we need to do. tional agencies: The YMCA, the National you may be familiar. The statistics an Catholic Community Service, the Salva swer these questions all too graphically. ★ ★ ★ tion Army, the YWCA, the Jewish Wel They indicate we In the United States fare Board, and the National Travelers haven't been on our job. They spell out only too plainly our present task. Priority given British warships Aid Association, which through their For example, in the 6 years 1932 Secretary of Navy Knox told his press members and affiliates represent millions through 1937, our private building in conference that British warships in need of citizens throughout the country. dustry supplied little more than enough of repair would be arriving in American The USO was asked to do a special job housing units to take care of one year's shipyards in ever-increasing numbers in all communities which cannot of their normal requirements. In 1932, there and would affect the U. S. naval con own efforts provide adequate and whole were 74,000 nonfarm units constructed; struction program "to some extent." some leisure-time facilities for off-duty in 1933 and 1934 slightly more than Secretary Knox stated, "We've given soldiers and sailors. 50,000 for each period; in 1935, 144,000; priority to them over everything else." It is expected the TJSO also will give in 1936, 261,000; and in 1937, the really but added he hoped the repair program assistance where acute family problems amazing total of 282,0001 Even in would not delay completion of the ex arise from defense worker migrations. 1940—considered by many people a very panded U. S. fleet. 20 ★ DEFENSE ★ April 22, 1941

unqualified recruits, a record of "innu Speed up private building; watch rents, merable broken men and shattered lives, not in small and inconsequential num Coordinator Palmer urges realtors bers, but literally in the thousands," ac cording to Colonel Rowntree. In a radio address, April 17, in con nators visit your towns and cities to In view of this experience and the ob nection with the National Association of analyze the defense housing needs, give vious need for selecting qualified men for Real Estate Boards' program, C. P. them all the accurate information at your military service. Colonel Rowntree said PaJmer, Coordinator of Defense Housing, disposal. And, in making appraisals, re the System had Initiated a program de said in part; member that it's Uncle Sam and all he signed to insure the Induction of soldiers We have to supply defense housing to stands for, who is your client. of the highest mental qualifications. meet a great emergency and there is not Watch rents Will cover the country time to bicker. Finally, there is one aspect of this When private industry can and will "It was decided to send out teams of housing program that you are in a posi do the job, that Is fine. That solves the specialists to spread the necessary infor problem. When private industry cannot tion to control, for better or worse. I mation throughout the country as a mean the maintenance of fair rental do the job, for any reason whatsoever, whole," Colonel Rowntree said. "These schedules. then the Government Is going to build. teams have traveled to various centers," There are instances, perhaps, where a to meet the local psychiatrists and doc The swift tide of world events leaves no slight increase in rents is warranted to time for argument. tors of the local and Induction boards for offset sharp reductions brought on by the the purpose of disseminating vital in Pri?ste cocsiruction iacreases depression. But the temptation is to formation bearing on the selection of But what is private enterprise actually push the pendulum too far in the oppo men for the Army. doing in the $3,000 to $5,000 field? Dur site direction, especially when the de "In each locality visited a new center ing a recent 7 months' period it was up mand exceeds the supply and consumer of interest is created. Other psychia 29 percent over the comparable period of purchasing power is rising. trists become intensely activated and the previous year for the country as a No one wants rent control legislation. when these men are deemed ready they whole, and in some defense areas the It proved impractical in this country in are also grouped into teams and sent increase was 150 percent to 200 percent. the World War, and similar experiments forth to cariT the message to still other This survey covered 89,000 units for the in Canada right now are having their groups. By such a procedure It is hoped 7 months' period and yet didn't get them troubles. that the whole profession of medicine, all. The total actually is much greater. As most of you know, model legisla and psychiatrists in particular, will be Yes, private enterprise Is doing a real tion for rent control has been drawn up, come imbued with the proper spirit and Job. and any abuse in the direction of ex will bend additional effort in each and ploitation is apt to be and should be Public building record every locality to the wisest selection of dealt with summarily. those men for the Army who can serve Now how about public enterprise? It, to best advantage to themselves, their too, is getting results. Some 75,000 ★ ★ ★ families, and to their country." dwelling units in 259 projects in 136 lo The fact that men inducted under calities, scattered through 47 States and Psychiatric advisers aid in Selective Service will be required to serve Territories, are under construction or in selecting men for scrvice in the Reserve forces after completion of the final stages of land buying or their year of training makes it increas Extensive dissemination of informa contract negotiation. ingly essential that they ai'e of the high tion to aU members of the medical pro est mental caliber. Colonel Rowntree Housing a vital part of democracy fession associated with the Selective declared. Housing is more than just furnishing a Service System by teams of psychiatric ★ ★ ★ shelter for a worker and his family when advisers is expected to insure the "wisest he moves into a new community to help selection" of men for the Army, Col. Hens will expand production make airplanes or tanks or battleships. Leonard G. Rowntree, chief of the medi This worker is essential in our rearma cal division, Selective Service System, Secretary of Agriculture Wickard has ment. He is on the Industrial firing line declared. urged farmers to increase Nation-wide day and night. Properly housed he can Speaking before the Psychiatric Insti egg production during the next 15 months and will produce. Badly housed, disease tute, meeting in New York, Colonel by about 6 percent, or approximately 10 and worse afflict him, and he may pos- Rowntree pointed out that teams of psy million cases of 30 dozen eggs each, in Bibly become a dangerous clog in the chiatrists are working throughout the an effort to assure ample food supplies defense machinery. country to acquaint all doctors inter for the United States and Great Britain. The production goal can be achieved, Speed building ested in the recruitment of military manpower with the essential mental re the Secretary said, by ample feeding and If you approach the task in the patri quirements of the armed forces of the by filling poultry houses to capacity this otic spirit of giving your time and effort present day. fall and next spring with laying hens. to your country, there is much you can The Secretary stated the Department contribute. First, please keep on pro Lesson from World War I of Agriculture will support long-term egg ducing homes and speed it up! The De Tlie medical division of the Selective prices at an average of approximately 22 fense Housing Insurance fund, which we Service System, scanning the record of cents (Chicago basis) a dozen until June arranged to have set up, will help. Mr. World War mobilization, found an ex 1943. Supported prices should enable Ferguson will tell you mere about that. cellent story of accomplishment but also, producers to go ahead with plans for feed Secondly, when our regional coordi as a i-esult of the induction of mentally ing for maximum egg production, he said. April 22, 1941 ★ DEFENSE ★ 21

TRANSPORTATION

Warehouse space Railroads o^er reduced fares to men in uniform reports of erroneous Special railroad fares of IV4 cents per A large supply of excellent warehouse formance for which he is obligated by mile for the uniformed personnel of the storage space is available, the Transpor law in the State where he does busi Army, Navy, Marine Corps, and Coast tation Division has announced. This is ness. Thus the Government would be Guard will be established on or about true in both the merchandise and re doing only what large corporations and May 1, J. J. Pelley, president of the As frigerated divisions of the industry. other important storers of goods are ac sociation of American Railroads, has Reports of shortages are without foun customed to," he said. announced. dation. "It would be unfortunate," de Grain storage The special fares will be good for clared Harry D. Crooks, consultant in round-trip travel in coaches between all the Division, "to have such reports cause The question of providing adequate points In the United States and will be a relaxation of good comercial practice grain storage to take care of the proba available to any member of the Nation's In warehousing, or the start of unneces ble 1941 crop is receiving constant at military forces traveling in uniform on sary new warehouse construction using tention on the part of all Goverrunent furlough at his own expense. labor which is needed for housing or agencies and others concerned. Because Army, Navy, Marine Corps, and Coast other necessary defense purposes." of the loss of export markets, the pros Guard officers and men may purchase Shortages, however, might be created pective carry-over from earlier years is these special-fare tickets upon presenta by unwise concentration of storage in large. While construction of additional tion of an official furlough-fare certificate one area, according to Mr. Crooks. In grain storage facilities is proceeding to which can be obtained from the com telligent distribution of space use in con some extent and while arrangements manding officers at all Mllitai^ Estab nection with export shiimients would have been made which will permit stor lishments. neither place too much tonnage in one age of some Government grain at east port or group of ports nor too much in ★ ★ ★ ern ports, the problem of finding space any one interior point, he said. for the new crop must be answered in Mr. Crooks reported excellent coop 162 of scheduled 200 cargo eration with the Surplus Marketing Ad some manner which will not involve util ministration in connection with perform ization of freight cars for storage pur ships cow under contract ance bonds given by warehousemen stor poses. "Under present traffic condi Contracts for construction of 137 cargo ing food products. "It is hoped that tions," Mr. Budd pointed out, "any use ships of simplified design have been eventually the contracts will only hold of railroad equipment for purposes other cleared with the Office of Production the warehouseman liable for that pur- than transportation must be prevented." Management and awarded, the Maritime Commission announced March 25. With the contract for 25 ships, announced on Iron ore moves in CARLOADINGS SHCREASE March 18, all but 38 of the 200 ships unprecedented volume Total carloadings during the week of the President's emergency program ended April 12 were 679,808 cars as com have now been placed under contract. through Great Lakes pared to 619,105 during the correspond The contracts for the 137 vessels were: ing week of 19i0, or an increase of 9.8 Bethlehem - Fairfield Shipyard, Inc., Due to the early opening of navigation percent. Due to the continued coal Baltimore. Md.; 50 ships at a total esti on the Great Lakes, iron ore is now mov strike there was a decrease of 72.2 per mated base construction cost of ing in a volume unprecedented at this cent In coal loadings. $75,000,000. time of the year, according to Ralph The cumulative loadings for the 15 Oregon Shipbuilding Co.. Portland, Budd, Transpoi'tation Commissioner. weelcs ended April 12 were 10,745,411 Oreg.; 31 ships at an estimated base con Preliminary reports show that through as compared to 9.392,470 during the cor struction cost of $46,500,000. April 15 a total of 1,000,000 tons of iron responding period of 1940. Calijornia Shipbuilding Co., Los An ore had been loaded into boats at upper geles, Calif.; 31 ships at an estimated CARLOADINGS. WEEK ENDED APRIL 12, 1941 lake ports. This compares with a total base construction cost of $46,500,000. of 464,663 tons moved up to the end of Houston Shipbuilding Co., Houston, Perecnt April in 1940 and 56,798 tons moved up 1041 1»40 Tex.; 25 ships at an estimated base con to the end of April in 1939. struction cost of $37,500,000. The railroads at lower lake ports Grain and grain prod The contract with Bethlehem-Falrfield ucts 33,006 31,10G 8.0 loaded a total of 8,643 cars of ore during Livestock 10,788 n, 140 -3.2 Shipyard, Inc., calls for the delivery of Coal 31,502 113,642 -72.2 the period April 1 to 15, whereas in 1940 Coke 9,478 7, 326 29.4 the first vessel in 305 days from March 18 no ore was loaded during this period and Forest products--. 39,282 31,174 28.0 and of the fiftieth vessel in 730 days. Ore 45,951 12, 530 2CC.5 only 1,610 cars during the entire month Mcrcbondise, 1. o. I..... 161,007 148,301 9.0 The other three contracts call for delivery of April. Carloadings for the week Mlseellaooous 347,354 263.781 31.7 of the first vessel each in 320 days and ended April 12 show a total of 45,951 car Total 670,806 619,105 S.8 the last vessel In 731 days from the date Cumulative 16 weeks... 10, 745, 4U B,392, 470 14.4 loads of ore. ol signing, March 18, 1941. 22 ★ DEFENSE t April 22, 1941

AGRICULTURE...

acr^ge without penalty under AAA reg Britain needs bacon and eggs- ulations except that they will not receive co^n payments or corn loans. domestic demand for livestock Comparison of hog, batter, products increases and egg prices "The level of $9 for hogs was nearly Discussing the recent action of the is helping to und^write the cost of new $1 over the market at the time it was United States Department of Agriculture plants required for their production. announced, while the butter and egg which established price floors for hogs, There is strong argument for giving prices appeared to be about In line, al butter, and poultry products, J. B. Hut- farmers assurance that, if they undergo lowing for the time of year. Market son, Deputy Commissioner of the Agri the expense of increasing livestock pro prices have responded to the announce culture Division, OEM, commented as duction, they will receive at least a steady ment by an advance In hogs to a top follows: market, regardless of war developments around $9. in the meantime. Uvestock production Some of the stocks of "ever-normal "The levels set cannot be considered is a long-term operation. Prom the time granary" corn which were laid away, now high from the farmer's standpoint nor a farmer decides to increase his breeding are needed. are they a burden to consumers com herd, it takes 10 to 12 months to produce One of the main purposes of the AAA pared with average prices In recent a market hog. If farmers decide to was to adjust agricultural production for years. Following are the average prices save more heifer calves this spring, it at Chicago in each of the last 6 ^ears: the loss of export markets. will take 2 or more years to bring them Because of the funds provided by the into milk. Six to 8 months are needed Lend-Lease Act. we have had an increase to produce a laying pullet. Hogs, SDtter, Eg^^rcsb in export demand for some livestock febersl 02 score tfVernec treainery products coming in a period of rapidly Present feed prices 0. K. expanding domestic demand for the same Per JiuM- Cenlt pa Cnftptr products. "Farmers are only too glad to increase drrfuJjipAt pound aoihi 96.27 28.8 25.3 their production if they have some assur ^.0 2i.2 ance that the larger output can be sold 10.02 ^.2 21.0 Britain needs bacon and eggs 27.1 21.8 at reasonable prices. Feeding ratios are 17.8 4.7 19.0 When Germany seized Denmark and the normal governors of expansion and i. 71 overran the Low Countries, England lost contraction in livestock production. As 8.26 26.! 21. S some of her most important sources for suming present feed prices, the levels Imports of bacon, butter, cheese, and which hog. butter, and poultry producers eggs. are assm-ed are expected to bring ex Prices lower than 1935-37 Because of the urgent necessity of panding production aa a natural re The market grades to which the sup shipments of munitions and the short sponse. port levels refer have not been indicated, age of bottoms, Britain has found it "To insure that feed prices will not but it is evident that $9 for hogs, 31 difficult to maintain imports of feedstuffs go appreciably higher, the loan stocks of cents for butter, and 22 cents for e^s do for her own livestock. corn acquired by the Federal Govern not represent any important advances The shipping bottleneck also prevents ment will continue to be offered at the over the levels to which consmners have getting normal supplies of beef from the Joan value plus certain carrying charges. been accustomed in the last half dozen Argentine and vegetable oils from the In addition, the large stocks under loan years. These levels are mostly lower tropics. Hence, it Is not sxirprising that can be drawn upon wherever corn prices than actual prices in 1935-37. pork, lard, dairy products, and eggs are are high enough to equal the loan value near the top of the list of foods wanted plus the accumulated charges." Beef and lambs high—liogs low by Britain. This expansion progi'am does not im Pointing out that bombings were af Grain and hay supplies adequate ply that livestock production has been fecting both stocks and transport, a re The supply of old crop corn under loan at low levels recently. Total slaughter cent comment by the London Economist or held by the Government on January 1, of meat animals in 1S40 was the largest has indicated the seriousness of the sit 1941, totalled about 438 million bushels. on record. It will be slightly lower in uation—"The foundations of the na In spite of acreage restrictions, our avail 1941, as probable increases in beef and tional diet—meat, bacon, and eggs—are able feed grain and hay supplies are lamb production are likely to be over tottering, and It will be necessary to near record levels, so that we are in balanced by a decrease in hogs. build upon new foundations." excellent position to expand livestock Unprofitable returns from hogs fn production. 1940 when prices were the lowest in over Hogs, lilce muniticns, need 30 years, with the exception of the 1932- assured maHcet Fanners may grow more corn 34 depression lows, caused a reduction in "Our Government is contracting for "Under the plan announced, farmers the pig crop. munitions and ships which cannot be who wish to grow more corn to feed more Dairy production has been at the high delivered for many months to come and livestock can plant up to their usuaJ est level on record, allowing for seasonal April 22, 1941 ★ ★ DEFENSE 23

changes. Even on a per capita basis, General Motors Corporation, Delco supplies of these foods in 1940 were the Products Division, Dayton, Ohio; strut Civil Service examinations largest in 15 years. assemblies; $992,389.91. for national defense positions Plenty for all Standard Steel Works, North Kansas City. Mo,; trailers and dollies; The United States Civil Service Com Despite the increase in foreign demand $624,332.24. there is no occasion for anyone to become mission has announced examinations for Wright Aeronautical Corporation. Pat- a wide variety of engineer and other alarmed about a possible shortage of erson, N. J.; parts for aeronautical en technical positions needed by National meat or meat products, or extremely high gines; $661,048.20. prices for these products, this year. Defense agencies. There is an acute Ford Motor Co.. Dearborn, Mich.; edu need for qualified men. Persons who Present Indications are that after allow cational orders for airframes; $3,418,500. are available and who meet the require ing for the increase in exports, there will Sperry Gyroscope Co,, Brooklyn. N. Y,; ments are urged to apply at once for remain as much as 130 pounds of meat indicator and controller assemblies, further information at any first- or per capita for consumption in this coun $1,999,265. try. This may be compared with 126 second-class post ofBce or write to the Sperry Gyroscope Co., Inc.. Brooklyn, Civil Service Commission. Washington, pounds for the 5-year 1935-39 period and N. Y.; automatic pilots; $635,160. D. C. Applications should be mailed to 135 pounds for the 1925-29 industrial Crucible Steel Company of America; the Commission's Washington office. prosperity period. machinery, equipment and durable tools Foreign consumption lowered for Harrison, N. J.. plant; $1,500,000. Officials urged to cooperate Jack & Heintz. Inc.. Cleveland. Ohio; Prior to the outbreak of the war, per machinery and equipment leased to con Officials of Federal. State, or municipal capita meat consumption in the United tractor for manufacture of electric start agencies who come in contact with Kingdom was between 130 and 140 ers for aircraft; $396,021. qualified persons interested in national pounds annually; in Germany, between defense positions are urged to call their 120 and 130 pounds: in Prance, between Navy attention to the following pending Vickers, Inc., Waterbury Tool Division, 30 and 35 pounds. examinations: The destruction of herds and flocks in Waterbury. Conn.; spare parts; for Open until further noitce.—Chemical motors and pumps; $686,634.50. northwestern Europe means that over Engineer (any specialized branch). As seas needs for these livestock products Carlton Machine Tool Co., Cincinnati, sistant to Principal grades. $2,600 to Ohio; Carlton radial drilling machines; will be substantial for a period after the $5,600 a year; Inspector Signal Corps war. If trade channels are still open, the $570,410. Cramp Shipbuilding Co., Philadelphia, Equipment. Junior to Senior grades. United States probably will be called $2,000 to $3,200 a year; Inspector of Pa.; workshops, floating; $960,000. upon to help meet this need. Powder and Explosives, Junior to Senior Cincinnati Bickford Tool Co.. Cincin grades, $1,620 to $2,600 a year; Inspector * * * nati. Ohio; drilling machines; $778,342. of Ordnance Material, Junior to Senior Crane Co., Washington. D. C.; cocks grades, $1,620 to $2,600 a year. Contracts .. • and valves; $658,369.14. Open until June 30. 1941.—Junior Phelps Dodge Copper Products Cor (Continued from page 11) poration, Habirshaw Cable & Wire Di Engineer (Aeronautical, Naval Architec ture. and Marine Engineering), $2,000 Baltimore, Md.; three shlpways; $2,- vision, New York. N. Y.; multiconductor 051,150. armored cables: $880,750. a year. Seattle-Tacoma Shipbuilding Corpo General Cable Corporation. Washing Open until November 30.1941.—Chem ration, Seattle, Wash.; five shipways, $3,- ton, D. C.; multiconductor armored ist (explosives). Assistant to Principal 975,000. cable. $1,241,400. grades, $2,600 to $5,600 a year. Open until December 12, 1941.— Pennsylvania Shipyards, Inc.; Beau Navy mont. Tex.; three shipways; $1,250,000. Physicist (any specialized branch), As Consolidated Machine Tool Corpora sistant to Principal grades, $2,600 to EQUIPMENT & SUPPLIES tion, Rochester. N. Y.; heavy duty ver $5,600 a year. War Department tical boring and turning mills; $2,249,970. Open until December 31,1941.—Metal Gera Mills (N.J. Wstd. Mills), Gar- Monarch Machine Tool Co.. Sidney, lurgist and Metallurgical Engineer. Asso field. N. J.; flannel shirting 750.000 yards; Ohio; machine tools, lathes: $992,601. ciate to Principal grades, $3,200 to $5,600 a $1,407,000. ORDNANCE year; Technologist (any specialized Wm. Whitman Co.. Inc.; Boston. Mass.; branch). Assistant to Principal gi-ades. flannel shirting. 500,000 yards; $856,500. Navy $2,600 to $5,600 a year; Junior Engineer Uxbridge Worsted Co.. Inc.. Uxbridge, Ford Instrument Co.. Long Island (any branch of engineering), $2,000 a Mass.; serge cloth, 500.000 yards; $1,- City, N. Y.; ordnance equipment; year; Engineering Draftsman, various op 425.000. $5,522,715. tional branches. Assistant to Chief Wm. Whitman Co., Boston, Mass.; General Motors Corporation, Fisher grades, $1,620 to $2,600 a year; Research serge cloth, 35.000 yards; $2,791,000. Body Division, Detroit, Mich.; ordnance Chemist (any specialized branch), As Gera Mills (N.J. Wstd. Mills). Gar- equipment, $13,076,048.57. sistant to Principal grades, $2,600 to field. N. J.; elastique cloth, 345.000 yards; Nordberg Manufacturing Co., Mil $5,600 a year. $1,056,735. waukee, Wis.; ordnance equipment; Open until June 30. IS42.—Engineer Forstmann Woolen Co., Passaic. N. J.; $11,998,776. (all branches of engineering except serge cloth. 300,000 yds.; $873,750. Busch-Sulzer Bros., Diesel Engine Co., chemical, metallurgical, marine, and Hillsdale Mfg. Co., Hillsdale, Mich.; St. Louis, Mo.; ordnance equipment; naval architecture), Assistant to Princi 900,000 canvas leggings; $620,460. $5,911,829.35. pal grades, $2,600 to $5,600 a year. V 24 A ★ DEFENSE ★ April 22, 1941 conserving manganese in steel $1.5 billion in contracts production outlined by Bureau of Mines cleared by Purchases Division Donald M. Nelson, Director of the Methods which America's steel indus 2. Substitution of alloys containing Division of Purchases, on April 16, stated try might employ to save considerable less manganese for those containing that since February 5, $1.5 billion in con quantities of manganese, a strategic more—for example, the substitution of tracts have been cleared by his Division. material for which the United States is spiegeleisen for ferro-manganese. Ores The following break-down tells the story. nov; primarily dependent upon foreign suitable for the former type of product sources, are suggested in a report just are relatively more abundant in the CONTRACTS CLEARED submitted to Secretary of the Interior United States. Feb. 5 to Feb. 28 $591,000,000 Harold L. Ickes by Dr. R. R. Sayers, Di 3. Substitution of other deoxidizing March — 937,338,414 rector of the Bureau of Mines. agents such as zirconium and titanium. For March; 4. Substitution of other agents for Army contracts 284,000,000 Manganese with steel modifying properties such as nickel and Navy contracts 365,000,000 Manganese, according to the Bureau's chromium. Maritime Commission report, is added to steel for three rea 5. Use of furnace procedures designed contracts for cargo sons: First, to act as a deoxidizer; sec to yield a high-residual manganese metal ships 287,000,000 ond, to compensate for the bad effects at the end of the heat and thus make Airplanes 87,000,000 of sulfur in fabricating processes in the possible smaller additions of manganese manufacturer's plant; and third, to im alloy. Ships (including Mar part certain qualities to the product for The first and fifth proposals, accord itime Commission the benefit of the user of steel. The ing to the report, should make possible vessels just referred amount of manganese required for de- small savings of manganese, but the third to) 484,000, 000 oxidatlon is small. The report esti and fourth methods may be of value Ordnance and ammu mates that roughly one-third of the only in special circumstances, and special nition 124, 000, 000 manganese used is necessary to neutral consideration should be given to the fact Autos, trucks, tanks, that all of the substitutes mentioned are ize the bad effects of sulfur; and about and combat cars 23,000,000 expensive in comparison with manganese, two-thirds is employed to improve the Industrial facilities steel. and some of them are now obtained from (such as shipyards, Perhaps a half dozen different kinds abroad. airplane factories, of alloys are used in making additions Reduce dependence on foreign sources ordnance plants, of manganese, but the two that are em ployed mainly are ferro-manganese, A possible solution states the report, etc.) 67,000,000 containing about 80-percent manganese, is contained in the second proposal, Other construction and spiegeleisen, containing about 20- namely, the substitution of low-man (including troop housing, air bases, percent manganese. ganese alloys for the ones high in manganese, such as spiegeleisen for etc.) 53,000,000 Five ways to conserve ferromanganese, since the former can Cloth, clothing, and The report offers the folIowUig five readily be obtained from domestic ores. personal equipment- 65,000,000 The Bureau's report is being published sugestions for conserving manganese in Clearing contracts is only a part of as Bureau of Mines Information Circu the production of steel: the job, but It illustrates how fast the lar 7162 "Utilization of Manganese in the 1. Economy in the use of manganese defense orders are going out. It is a big Steel Industry," by B. A. Rogers, and will by making certain that steel does not job and it is getting bigger, Mr. Nelson be made available to the public without contain more manganese than neces said. sary for the purpose for which it is used. charge.

OFFICE FOR EMERGENCY MANAGEMENT William H. McRetnoles, liaison Officer Office op Production Management: AORICULTUBE DIVISION OP THE ADVISORY COM Information Division: Robert W. Horton. MISSION: Chester Davis, Comwiissioner. Director. WUlIam S. Knudsen, Director General. Central Adkinisthativb Services: Sidney National Defense Mediation Board, Clarence Sherwood, Director. Sidney Hlllman, Associate Director General. Dylcstra, Chairman. Secretary of War, Henry L. Stimson. COMMERCIAl. AND CULTtTRAL RELATIONS BE Secretary ot the Navy, Frank Knox. TWEEN THE American Republics: Nelson National Defense Research CoMMirrEE: Di. Secretary, Herbert Emmerich. General Counsel, John Lord O'Brlan. Rockefeller, Coordinator. Vannevar Bush, Chairman. Production Division: John D. Biggers, Defense Communications Board: James Office of Price Administration and Civilian Director. Lawrence Ply, Chairman. Supply: Leon Henderson, Administrator. Purchases Division: Donald M. Nelson. Director, Defense Hocsinc Divkion: C. F. Palmer, State and Local Cooperation: Frank Bane. PRioRmzs Division: E. R. Stettinlus, Jr., Coordinator. Director. Director. Health, Welfare, Kutrition, Recreation, anb Lasor Division: Sidney Hlllman, Director. Related Activities : Paul V. McNutt, Co TIiansportatjon Division op the Advisory Research and Statistics Bureau: Stacy ordinator. Commission: Ralph Budd, Commissioner. May, Chief. u.f.sovraMiiEKT psimtins OFricE< >t