Evening star., 1940-11-16
U. 5. Industry Widens
Plans for Boosting
Plant Capacity
Building Awards soor;
Many Factories at
Output Limit
BY FREDERICK GARDNER,
Associsted Press Financial Writer,

BY FREDERICK GARDNER,
Associated Prsss Financial Writer.
NEW YORK, Nov. 16.-Industrial
managers appeared today to be In
creasing expenditures for new pro-
duction facilities to supplement fac
tories taxed to capacity by defense
and civilian orders.
Headlining the corporate i'm
provements program this week was
United States Steel's project for
spending $4,000, 900 to S25 900 900
for additional capacity in the Bir-
mingham district, announced as the
industry continued to bump against
the ceiling of practical maximum
output.
Aside from strictly war industry
plants, such as airplane and NUM-
tions factories, private capital ex-
penditures have risen to the largest
figure since 1887. Business circles
looked forward to more announce
ments in the usual year-end budg-
citing Of future plant allotments.
Construction engineers faced a
winter Of extraordinary work in the
combined rush to complete emer-
gency defense jobs and build new
power plants, chemical factories,
steel mills and housing for workers
at industrial centers.
Building Expands.
Ruildinp aUardS continued IN PLY,
far ahead of last year. The Engi-
neering News-Record reported its
latest weekly compilation of engi-
neering awards totaled 1918, 900,
against $79,645 900 the previous
week and 500, 900 in the COM
parable 1899 week.
Contributing to the total were
such war industry projects as a
$37 100000 ammunition loading
plant at Union Center, Ind, and q,
$34, ,451 900 shell loading plant at
Burlington, Iowa.
Numerous housing and private in
dustrial awards likewise entered into
the total. Included were $3,210 900
for Pacific Gas e. Electric power
plant at Dutch Flat, Calf; $500, 900
addition to an aluminium plant at
Massena, N. Y, and a $4,000, 600 re-
duction mill for the American Roll
ing Mill Co. at Hamilton, Ohio.
Du Pont and Goodyear Tire &
Rubber both disclosed plans for
increasing production of synthetic
rubber, now taking a more promi-
nent industrial role in the growth
Of chemical use and the threat of
Far Eastern sources of natural rub
ber.
DR.. Robert E. Wilson, petroleum
expert for the National Advisory
Defense Commission, urged the oil
industry to increase refining and
storage capacity in anticipation of
higher demand.
More Plants Needed.
October business statistics showed
record or near-record activity in
various lines, indicating need for
larger capacity II the rising trend
continues next year under the lift
Of mounting arms spending Oc-
tober steel ingOt output was the
highest on record Cotton con-
sumption was the highest for the
month on record and rubber use
set the second largest monthly fg-
ure. Electric power output has been
q record for some time. II
The autumn upswing in produc-
ton. one of the sharpest in recent
decades. tapered further as sea-
sonal impulses faded and factory
limits were reached or approached
In various industries. The ASsoci-
ated Press index of industrial ac-
tivity dipped to 1865 per cent of
the 1929-3O level from 1T the pre-
vious week, the first drop in five
weeks. A year ago in the initial
wartime surge, it stood at 1901.
The weeks outturn from automo-
tive assembly lines rose to a 1910
peak at 12l,943 units from 12O948
the previous week and 86, TOO a year
ago, according to trade estimates.
Steel operations edged ahead to a
shade above 96 per cent Of capacity.
Steel circles said November
bookings promised to exceed the
high October total. Scrap prices.
rated a sensitive barometer of steel
trends, moved up in some districts.
Nevertheless. skeptics raised the
question whether steel mills long
could maintain virtual capacity op-
erations. considering reports much
of the current buying has been in
ventory rather than immediate use.
On the other hand, it was pointed
out, defense requirements next year
are expected to increase as new
war plants go into production and
ship construction moves forward.
Financial centers felt the busi-
ness stir more intensively. Under
writer's, taking advantage of a post
election rise in bond prices, pre-
pared for another wave of corpo-
rate financing, mostly refunding op-
erations to lower debt charges.
Many stocks extended previous
gains to set 1910 peaks, but the
general advance encountered op-
position when talk of 1941 tax boosts
and slashing air blows in Europe's
war induced some traders to cash
profits.
A fierce preview of winter, marked
by destructive storms over wide
areas in the middle regions of the
continent, piled snowdrifts and
ice in the paths of would-be shop
pers.
Despite the unfavorable shopping
conditions, commented Dun &
Bradstreet, retail sales results we're
generally found to be satisfactory,
with merchants reporting dimin-
ished store attendance, but q per-
ceptible uptrend in sales"
Total retail volume" the mer-
camille agency added. twas esti-
mated S to 9 per cent above the
level of the same week a year ago.
Cities in the South had the largest
year-to-year gains"
Jupunese Build Railway