Evening star. [volume] (Washington, D.C.) 1854-1972, 1939-11-08
Industrialists Face
Expansion Needs
ToMeet Rush
Additional Capacity
To Handle Flood of
Orders Weighed
BY FREDERICK GARDNER,


NEW YORK, Nov. 8.-Hard- head
ed chiefs of the United States great
industrial machine today faced the
problem of gearing it to war time
needs with expenditure of huge
sums for plant expansion.
Capacity or near-capacity opera
tons in steel, machine tool, air.
craft manufacturing and other i'm
portant industries forced executives
OF many companies to ponder the
wisdom of spending money for ad-
ditlonal capacity to handle war
orders, actual or prospective.
Already there has been cautious
stepping up of plant expenditures
IN aircraft, steel, electric power, oil
and chemical industries.
Engineering News Record, a trade
publication, reported October awards
for industrial building, such as new
factories and power plants, totaled
s49,910000, against s12,814,OOO in
October, 1888 The total surpassed
the Sal 1926 900 in october, 1887, the
previous big year of plant expan-
sion since the 1929 Wall Street crash
cut the flow of capital into invest
ment.
Heavy Spending Due.
An official of a leading engineer
ing firm said the next few weeks
would reveal whether American in
dustry was prepared to plunge into
the heaviest spending of the past
decade for plant improvements.
Many corporation heads are CIV
ing the matter close study because
Of the exhaustion in available capac-
ity by the business upswing and
prospects of war business he said
But at the moment there seems to
be a tendency to wait and see Just
how much of the talked-of war
orders will become reality"
Most executives approached for
comment agreed business expansion
has proceeded to a stage where
larger spending for new plants
would be necessary if industry holds
its gains.
Rated one of the main drawbacks
was the suspension of corporate
financing since the start of the war.
However, the financial district has
high hopes for resumption of financ-
ing soon. Bankers are preparing
to test the market about the middle
OF November with a large public
utility refunding operation-a S42.-
225 900 bond and note issue of the
Jersey Central Power & Light Co.
Utilities Spur Activity.
Utility companies, to meet record
breaking demand for electric power,
have increased capital programs
considerably the last few months.
Some trade sources forecast 1910
would see the heaviest spending in
that field since 1880.
The steel industry, keystone of
warfare, has pushed
production to the highest operating
rate since 1929 and to a record ingot
outturn on basis of enlarged capac-
ity. The United States Steel Corp.
pointed the way with recently-an-
plans for increasing its
Irwin Works at Charlton. Pa, in
volving construction of three new
mills expected to cost upward of
$1O,OOO,OOO.
But any extensive spending in that
industry, some authorities held,
probably would await better indica-
ton of the stamina of the war
boom. Much steel buying lately is
believed to have been for inventory
rather than consumption. although
revival of heavy manufacturing has
outlet for metal substan-
italy.
Communities in the South, the
Middle West and the Far West have
been most numerous among loca-
tons of new plants announced the
last few months, possibly indicating
where the next big wave of expan-
sion would go.
Big Projects Listed.
Included have been a $1,500,000
potash plant in New Mexico, an avia-
ton manufacturing project in Nash
vile, a $750,O00 General Electric
unit at Jackson, Miss, for manu-
facture of automobile headlights, a
Stinson aircraft expansion project
at Wayne, Mich; a 100000 me-
chanical rubber manufacturing
plant at st. Mary's, Ohio, and adj
ditional oil refining capacity in the
Southwest.
Curtiss- Wright and Pratt & Whit
hey manufacturing units around
Buffalo, Paterson, N. j., and in the
Ha rfford Copp area bavo on