New-York tribune., 1918-07-18
President Asked to Form
Curtailment Policy
for Industries
War Board Clashes
With Auto Makers
alter Doubt Government
Needs Entire Produc-
ton of Mills

UASHINGTON, July II. -- Radlcal
,.x.roncss of opinion between high
Ss;.;sls regarding the government
0nlicv toward non-war industries to-
sov caused the question of industrial
...;,,,snt 10 be laid directly before
The President.
The question of government policy
recardng curtailments in the less
.sssrt;al industries was brought to
hoad within the past few days by rep
-osar+at;yes of the automobile in
arstry. who have been in Washington
N secure assurances of steel allotments
;, rneet their 1919 manufacturing pro-
grammes.
The automobile men to-day were in
formed by the War Industries Board
that no assurances of steel for pas
.enger cars could be given. 1t was
stated that government steel require
rents for the next six months, COM
mencing August /, call for 20,000,000
TONS of steel, whereas the capacity of
steel mills is only about 16,500,0O0 tons.
This would compel rigid curtailment
of the use of steel in all non-war in
dustries, it was stated.
Auto Men Ask Proof
Representatives OF the automobile IN
dustries questioned the statement that
the government requires all the steel
produced during the next six months,
and asked for figures to prove this re-
uuirement. 1t is understood the War
Industries Board was unable to pro-
vide these figures on account of incom-
plete adyces OF the War Departments
steel requirements.
Hot exchanges resulted, and follow
ing the end of the conference officials
of the War Industries Board stated the
automobile men had talked of economic
ruin, and had further predicted that
dire political results would follow if
steel were shut off from the automo-
bile industry. Hugh Chalmers, spokes-
man for the automobile industry, later
denied that any political threats had
been made, but said that the disrup-
ton of the automobile industry which
would follow the present curtailment
programme of the War Industries
Board would have disastrous economic
results of farreaching consequence.
The upshot of the situation was that
the matter was called to the personal
attention of the President to-day at
the weekly war conference of depart
mental heads. Representations made
to President Wilson emphasized the
Importance of interfering with industry
as little as possible without endanger-
ing the success of the war programme.
Farrell and Schwab Cited
Regarding the question of steel for
the automobile industry, it was stated
that both James A. Farrell of the
United States Steel Corporation, and
Charles NJ. Schwab, Of the Bethlehem
Company, now Director General of
Shipbuilding, held the opinion that the
steel mill capacity, with the expansions
in contemplation, would be adequate
to meet the war programme without
such drastic curtailment of non-war
Industries as has been proposed by the
War Industries Board
The President was urged to postpone
such curtailment until the War In
dustrles Board had sufficient data at
hand to prove the necessity of it's ac-
ton.
Chairman Baruch, of the War In
oustrles Board, estimates that the gov
ernments requirements will absorb the
entire output of the mills during the
next SIX months. This estimate, how
ever, is based on reports from the War
department, said to be far in excess of
any manufacturing possibility. The
SITUATION has been further complicated
oy the rapid development of steel ship
ouiioing, with the accompanying in
crease of steel requirements during the
ADMINISTRATION of Charles M. Schwab.
Inc fact that both Messrs. Farrell
snd ochwab, the two leading steel pro-
aucers of the country. contend that
mere mere Is plenty of steel if it is properly
aiiocatsd, is claimed by the automo obile
industry as considerable basis for the
strenuous objections they are making
TO the War Industries Boards contem.
plated action.
orl! mere now is virtually 100 per cent
haiSanent hai aiiseIiinent On steel for industries not
nuig nUsaiihg war contracts. but it devel-
rpea rpea Yesterday, when Hugh Chalmers,
,rrp'esentIng w.. the passenger car indus
rns,.s ny, was before the board, that many
s.an' s..an'uiacturers have sufficient stocks of
mee!, n'ee! 10 carry them from four to six
orarsn ansns along with the 1919 pro-
Soan''he. Somne. The present inventories.
s"eSer, Mr.. Chalmers told the board
.e 49,, unbalanced and various kinds of
~. Ha are required to complete chem.
sau; asked that this steel be allowed
ss"slng otherwise the industry would he
laced with ruin. ~