Evening star., 1940-08-18
War Industry Takes
Center Of Attention
In Business Picture
Financial Circles Hail
Announcement Of Large
Plant Expansions
BY FRANK MacMILLEN,
AssocJated prexs Financial Writer

NEW YORK, Aug. l7.-Expand.
ing war industry assumed a larger
place in the Nations business pic
ture today as plans for new factories
to make aircraft, powder, tanks and
other fighting equipment moved out
of the blueprint stage.
Announcements of several big
projects the last few days were
hailed in financial circles as indi-
cation plant enlargement under the
$40 900, 900 900 defense program
really was getting started.
Included we're s20,000,000 for q
new Douglas aircraft factory in
Southern California, 10000 900
tank factory in the Detroit area and
SIS 900 900 powder plant near Rad
ford, Va.
Expenditures of hundreds of mil
lions of dollars for new plants, both
with r. F. c. and private funds,
promise to give stout support to
business generally during the au-
tumn and winter months, analysts
said.
Acceleration of defense spending.
some argued, may save industry
from a severe setback in event the
German aerial assault on England
and attempted sea blockade cur
tails trade with the British Isles.
Securities, Commodities Depressed.
Partly in fear of this possibility,
it seemed, Wall Street security and
commodity markets were depressed
when the air attack on British in
dustrial and military nerve centers
was stepped up this week Some
farm staples, cut off from erstWhile
European users and threatened with
further loss of markets, sold at the
lowest prices of the war period
More than $1,000, 900 900 in British
orders in this country, mostly for
aircraft, steel and mechanical
equipment, were estimated to be
undelivered.
Hesitation in new buying, accord
ing TO trade reports. was particu-
larly noticeable in wholesale mar
kets for textiles and merchandise
for civilian needs. Sentiment among
dealers was said TO have been in
f1uenced by the sag in commodities
and selling in Wall Street.
Defense Plans Are Speeded.
In Washington, on the other
hand, defense plans made speed.
Confident Uncle Sans demand
would keep the industry going full
blast for long time to come. air.
craft manufacturers expedited plans
for most factories without waiting
congressional approval of tax
changes intended to encourage cap
ital outlay in the armament field.
The Wall Street Journal said the
aircraft industry was about ready
to begin s15o,0OooOO of new con-
struction.
Awarding of Government con-
tracts for naval bases, shipyard and
airport facilities previously con-
trlbuted to make it the busiest
summer construction engineers have
seen in 10 years.
Building observers said it ap-
peared the activity would continus
at high level through the remain
ing months of 1910. Supplementing
Government-financed projects, they
noted, was recent upturn in private
capital outlays, including heavier
equipment spending by railroads.
Pay Rolls Expected to Increase.
AS projects go into actual con-
struction, it was pointed out pay
rolls and jobs may be expected to
increase in many communities.
Complaints of skilled labor short.
ages continued to be heard as result
OF absorption of manpower into ship
building, aircraft, tool and allied
industries stimulated by British and
United States armament orders.
But large reservoir of workmen
still was available. judging by va
rlouS estimates of unemployment,
Motor centers felt late summer
pickup in activity when manufac-
turers swung into production Of
194l models. Assemblies we're esti-
mated at 20,475 units this week
compared with 1885 the previous
week and l5,l05 in the like week a
year ago
The motor industry was expected
to raise assembly schedules further
in the next few weeks.
Textile Mills Busy.
In textile manufacturing accumu-
lStlon of orders for Navy and Army
needs set many mills humming at
fuu speed in spite of the cautious
mood OF private dealers How much
the prospective draft of young men
into the military forces had to do
with the buying slack was hard to
hgure, but wholesalers counted it as
factor at least.
After rising from so per cent of
capacity to above 80 from April to
early August, Steel production
slowed a bit. Trade observers
ascribed the drop to a vacation shut
down of one plant in the Pittsburgh
district rather than to any UNDER
lying change in conditions for the
booming steel industry.
The dip in steel was largely offset
by the increase in motor output and
cotton manufacturing in the COM
pilation of the Associated Press
index of industrial activity. 1t ad-
vanced to a new peak for the MAY.
August upswing, touching 1918 per
cent of the 1e29-30 level, compared
with 1915 the previous week and "a
a year ago.
The rise of this yardstick has fiat
tened out the past month after a
sharp move upward in May and
June, Immediately after Washington
embarked on the big defense pro-
gram. Nevertheless it has set the
highest August figure since 1929.