Evening star., 1940-10-13
Growing Tension.
Spurs Efforts in
Defense Race
Business and Federal
Officials BIust at
BottIenecks
BY FRANK MacMILLEN,
Associated Press Business Writer.

Associated Press Business Writer.
NEW YORK, Oct. 12-With ten
sion growing in the Far East and
Europe's war apparently spreading
in the Balkans, Government, in
dustry and Wall Street Joined this
week in the most determined assault
yet made on the bottleneckS
which have impeded the smooth
flow of the national defense effort.
While industry paused for the
first breather in a thirteen-week
drive spurred by the S12 ,000. 900 900
arms program, plans went forward
which appeared to make doubly
sure that production marks even OF
the boom year 1929 would shortly
be challenged.
In the fields of aircraft, ship
building, tin smelling, aluminium
production, artificial fabrics. and in
the greasing of the credit gears to
help along these and other defense
lines, steps were taken to make the
wheels turn faster. Some Of these
were.
/. A $3.50, 100000 plant expansion
program by the Aluminium Co. OF
America, motivated in large part
by defense needs, and statement
by the National Defense Commis.
sion that aluminium ingot produc.
ton would be doubled by 1912.
More Speed Urged.
2. An appeal by the Government
to aircraft manufacturers for gen.
eral adoption of 24-hour a day op-
Grafton without waiting for tho
$3.50, 100000 of new plants being con-
structed by the industry.
3. Award of $4,000 900 to seven
shipbuilding and four steel COM
panies by the Government to con-
struct specialized facilities for de-
fense needs.
4. Announcement of a $50 000 900
expansion program for the next IS
months by General Electric Co..
coupled with revelation that turbine
orders for 1910 promise to reach
s1OO. 100000, exceeding the combined
totals of 1917 and 1918, best previous
years. Both the Navy and private
utilities use this machinery.
5. Word from Warren Lee Pier
son, head of the Export t-Import
Bank, now at La Paz. Bolivia. that
he was negotiating to secure supplies
of strategically important tin for
smelling in the United States. Most
Of present supplies originate in the
Far East, are smelted in Great
Britain.
6. Plans for construction OF a new
Co., doubling the output of Nylon.
While time needs apparently
justified the construction. Nylon
could be an important substitute
for silk for defense needs in case
supplies were cut off from Japan.
Loan Measure Signed.
7. Signing by the President OF
legislation permitting holders to
assign their contracts as security
for bank loans.
The latter step, bankers said
should result in an immediate,
though probably moderate stepping
up in the flow of bank lending funds
INTO tne oe1enSe program.
Some loans, especially in the air.
craft industry, Wall Street bankers
reported, had already been made in
anticipation of the legislation.
Many of the largest producers Of
steel and other war materials, how
ever, have large supplies of cash, and
most bankers were not expecting a
stampede of borrowers Later, when
the defense effort has reached flood
tide, these sources said, this legis-
lation may be of vital importance.
That tight spots still remain in
industrys supply situation for de-
fense, however, was made clear
when William S. Knudsen, defense
commissioner, told the Army Ord.
nance Association that defense
needs will absorb "the entire out
put of the machine tool industry
in 1941, and that only the most
pressing call for tools in other
quarters could be considered.
What this meant in terms of new
automobile models for 1912, and in
other lines where annual re-styEng
land therefore re-tooling) has been
customary, was not Immediately
clear.
But it appeared that in this direc-
ton some of the first effects of the
arms drive on consumer expectation
might be felt g.
Executives Confident.
From widely scattered points cams
assurances from business and in
dustrial leaders during the week
that defense orders could be handled
without undue interference with
civil needs.
Typical were:
Alfred P. Sloan, jr.. chairman,
General Motors Corp: THE Nations
resources effectively employed not
only can fulfill the requirements Of
the defense program but can main
tain the flow of useful goods and
services characteristic of our normal
productivity"
Colby M. Chester, chairman, Gen.
(See MACMILLEN, Page E-2)