Evening star., 1940-06-09
u. 5. Industry Starts
Vast Expansion 10
Meet War Needs
Hundreds Of Millions
Will Be Spent for
Industrial PIunts
BY the Associated Press.

By the Associated Press.
NEW YORK, June 8.-Shifting
from the manufacture Of peaceful
gadgets to fighting machines, Amer
ica's industry has embarked on
large-scale plant expansion and
adaptation Of factories to war needs,
Nationwide survey showed today.
Projects under construction and
in prospect to handle home defense
and increased Allied purchases will
result in expenditure Of hundreds
of millions of dollars for materials,
workers and machines, the survey
indicated
Prodded by Allied buying. actual
war industry expansion has been
most spectacular in airplane and
motor manufacturing. Some plants
have tripled capacity in the last
year or so. Others are pushing new
expansion, either started or on the
drafting boards.
Gathering momentum to the
cadence of the Nazi blitzkrieg tempo
In the Low Countries and France,
war orders are spilling into NUM-
tions, textiles, tanks, automotive
equipment, guns, explosives, chemi-
calls and have forced a start on
the greatest war plant expansion in
the United States since 1914-l8.
Regarded as Beginning.
Considering the administration
IS 900 900 900 defense program and
the race to lend material aid to
the Allies. financial circles regard
the current expansion as merely
in the opening stage.
Waldo G.. Bowman, editor Of the
Engineering News Record, estimated
Washington's defense plans alone
would call for construction outlay
of about $500, 900 900, including air
bases.
Much more may be spent, he
said, for industrial plants, either
with private capital or Govern
ment loans. Investment bankers
insist there is plenty of private
capital available for factory expan-
sion. providing arrangement is made
for rapid charge -offs Of war facili-
ties. President Roosevelt has indi-
Gated public funds would be avail
able. too.
Aircraft, tool and chemical in
dustries were major contributors
to increased industrial construction
under way. Contracts for factories
and other industrial structures in
the first five months of this year
totaled $171 100000, compared with
$73,000,0O0 in the like 1889 period,
according to Engineering News
Record.
The shift to war industry was
accompanied this week by further
rise in leading production barom-
eters. notably steel A fifth con-
secutive weekly advance lifted the
Associated Press index Of industrial
activity to the highest level since
February. This index has regained
about half its loss ir the winter
and early spring slump.
Markets Cautious.
Wall Street speculative markets,
however, remained cautious despite
the climb in the business curve and
the preparations for heavy plant ex-
penditures to equip war industry.
Brokers ascribed the apathy of the
markets partly to anticipation of in
dividual and corporate income tax
boosts to meet the soaring arms bills.
The new German thrust into
France and the Italian threat Of
war in the Mediterranean likewise
kept spectators on the sidelines
waiting the outcome. brokers said.
A boom in steel-making, fed by .
wave of buying to acquire inven-
tories before the United States de-
fense program gets into full stride,
marked the transition tc war econ-
omy. Some trade sources predicted
the steel production rate. which has
risen from IS to above 30 per cent
of capacity in the last month, would
cross IS next week
More furnaces were going into
blast to make metal for shells, ships,
tanks, tools, engines, motorized
equipment and for new factories.
High Lights Given.
High lights in the survey of plant
cApdllSlOIl 1OllOW.
Hartford, Conn.-Pratt & Whitney
division of United Aircraft Corp,
making airplane motors, has started
on new $8,000,0 900 expansion. Cham
ber of Commerce estimated program
would make jobs for between 5000
and 5000. Pratt & Whitney ma
chine tool division Of Niles-Bement-
Pond said to have hired 1900 for
new plant. Colt Patent Firearms
leased 100000 square feet of extra
factory space for increased business.
Bridgeport Remington Arms Co.
reported taking more factory space
to handle heavier war business;
Bullard Co., machine tool manufac-
turer, constructing new building for
summer completion.
Bath, Me.-Bath Iron Works, ship
builders, planning to expand workers
from $500 to 5000 to handle new
contracts.
Springfield, Mass.-Army moving
to double output of Garand auto
matte rifles.
Observation-Disclosures Co., Bald.
Will LOCOIIlUIlNc SuDSluldIy, IldS 6As
tended facilities for war business.
York Safe & Lock Co. surveying
site for munitions factory.
Baltimore Glenn Martin and
Bethlehem Steel plants busy on war
orders. but further plant expansion
in this area said to rest on war de-
velopments and defense needs.
Pittsburgh-Mesta Machine COM
pleting $1,000,OOO enlargement of ia.
cilities; American Steel and Wire
increasing furnace capacity at Do
nora, Pa; several other blast fur
mace and general plant expansions
under way, not necessarily war in
spired.
Butler, Pa-Pullman standard
car plant to be re-tooled to handle
$4,000. 900 shell order from Allies.
Cincinnati-Most machine tool
makers replacing or adding equip
ment to speed production; American
-