Evening star., 1940-12-15

Ways 10 Speed
Defense Work
Knudsen's PIeo Turns
Spotlight on VitoI
Production Problem
BY FRANK MacMILLEN,
Associated Press Financial Writer.

NEW YORK, Dec. l4!-dOW 70
get more production out Of the Ma
tons busy factories confronted in
dustrial leaders today as a major
problem awaiting solution In efforts
to speed the defense program.
Heavy Christmas demand for con-
sumers goods drew attention to in
dustrys double load in supplying
both civilian and Government mill
tary orders.
Homeward bound after attending
fthe annual congress of American
industry, sponsored by the National
Association of Manufacturers. scores
of the country's leading industrialists
pondered the appeal for faster pro-
duction raised last night by Defense
Commissioner William S. Knudsen.
Knudsen, in a blunt speech ac-
knowledging lag in defense produce
tion, put the question whether the
country could afford to 'cut 20 per
cent off our machine time" by keep.
ing machinery idle from Friday TO
Monday in the five-day work week.
Remedies Suggested.
Before Knudsen turned the spot
light on the production question,
business leaders talking to the manu-
facturers and in other meetings this
week discussed various proposals for
improving factory performance, in.
cluding:
Cd Longer working hours.
CD Increasing capacity and utiliza-
ton of remaining idle plants.
80 Training of skills for defense
industry.
"a Subcontracting and regulation
OF the flow of materials to avoid
bottlenecks.
Many who listened to the discus.
sions assumed these proposals singly
or in combination would be tried
In the New Year drive to gear In.
dustry to steadily climbing defense
spending.
Meanwhile, major industries con.
tinued to crowd available capacity
In attempts to reduce untitled orders
before the defense program makes
its full demand upon productive
machinery.
Steel output-focus of current
business interest in connection with
Government proposals for expansion
OF mill capacity-eased OF q little
to 96 per cent of capacity, repre-
senting the highest year -end rate in
many years. But the letdown was
attributed mostly to closings for
repairs rather than any important
change in demand for metal.
National Steel Acts
National Steel Corp. was reported
to have joined other leading pro-
ducers in the move to increase pro-
ductive facilities moderately. For
the moment coke and pig iron were
regarded in trade circles as the in
dustry's chief bottlenecks. Produc-
ers insisted steel capacity generally
was ample to handle both defense
and ordinary needs, providing con-
gestion in buying was avoided to
give Government orders the right
of way.
The heavy consumption OF raw
materials in steel-making was re-
flected in higher prices for pig iron
and scrap. Elsewhere. however. the
chief raw materials and foodstuffs
OF wholesale trade held to a steady
course, which price students re-
garded as one of the most salts
factory aspects Of the wartime pro-
duction picture.
Capacity or near-capacity opera
tions limited further industrial gains
after one of the sharpest autumn
upswings on record. Seasonal ad-
justments partly accounted for an
additional rise in the Associated
Press index of industrial activity to
119.5 per cent of the 1929-30 level
compared with 1855 the previous
week and with 112.l year ago.
Several announcements of wage
increases and year-end bonuses for
factory workers emphasized the ris-
ing trend of national income, which
some analysts figured might reach
the unprecedented figure of $780,
600, 100000 annually in the climb
OF defense spending. That would
represent a gain of about SIS ,000,.
100000 over the estimated current
rate of national income.
Retail. Trade Boosted.
Thriving Christmas trade, espe.
cially at industrial centers benefit.
ing from large factory pay rolls and
arms spending. was traced to the
ascending swing in the country's
income.
Retail trade reports said con.
sumner avidity for merchandise EN-.
braced wide assortment of goods
aside from Christmas gifts. The
United States Commerce Depart.
ment recently forecast Christmas
business this year would shatter pre-
vious records.
The latest weekly figures Of the
Federal Reserve Board showed de-
partment store sales running per
cent ahead of 1899 figures. ..