Evening star., 1941-01-21
Big Mil Expansion
Reported Weighed
By Brass Firms
$4,000, 900 Program
Discussed as Part Of
Defense Drive
Hy the Associated Press.

NEW YORK, Jan. 21.-Plans for
a s37,0O0,00O expansion Of brass
manufacturing capacity were re-
ported in financial circles today as
under discussion as part of hum
dreds of millions worth of DIVERSE
fled enlargement of the Nations in
dustrial facilities for defense.
Federal defense authorities and
representatives of leading brass
manufactures, it was said. consid-
cred 79 per cent increase in rolling
mill capacity to add about 900 ,000,-
900 pounds yearly to output.
The brass industry, a vital link
in the arms production chain, CEN
ters in Connecticut, around Water
bury. Among companies mentioned
as involved in the negotiations were
American Brass Co., subsidiary of
Anaconda Copper Mining Co.:
Bridgeport Brass Co, and Revere
Copper & Brass Co.
The financing, it was understood,
would be done through the Recon-
struction Finance Corp.
Meanwhile, the defense program
appeared to be generating capital
expenditures in vast amounts from
private funds, either borrowed or
from corporate resources.
Phone Project Cited.
The Bell Telephone System has
begun construction of l600-mile
underground cable line, to cost
-, to
Sacramento.
American Telephone & Telegraph
Co. the parent unit. recently bor-
roWed from insurance companies
$4,000. 900 for plant improvements,
the first large outside borrowing of
additional capital since 1890
Faced with the extra burden of
defense power and fuel demands,
public utilities were expected this
year to spend the largest sums
for expansion in more than a dec
ade Wall Street underwriters said
the bulk of this capital would come
from private funds. including some
open market financing.
Southern Natural Gas Co, operat-
ing a natural gas pipe line system
from the Monroe field in Louisiana
to communities in Georgia, Alabama
and Mississippi, entered the market
today with an offering of 464,379
shares of common stock to raise
nearly s4800000 for repayment of
bank loans and other corporate pur-
poses. including new construction.
The announcement Of the offering
said the company was considering
extending its system TO supply the
Chattanooga Gas Co.
The Tennessee Valley and ad-
iourning areas. including the busy
Birmingham steel district are
among the major regions of war
industry expansion.
Several big utility financing pro-
grams were under consideration.
mostly for refinancing existing
debts. Mentioned in financial quar-
tiers was sl0o,00O00O refunding by
Columbia Gas g. Electric.
Rail Funds Needed.
Railroads likewise were expected
to be in the market for funds to
repay iIldl 4llS OcUIo VI " 4IIloI4SC
the enlarged scale of equipment
buying since defense requirements
entered the transportation picture
Chesapeake & Ohio was expected
to offer soon s3O.OOO000 in bonds to
repay an outstanding s29 692 900
issue of 3i2s.
Rail traffic began the new year at
the highest level in decade and
the carriers have been budgeting
substantial sums for freight cars,
locomotives and other equipment.
Many small manufacturers ar
ranged capital loans from COM
mercial banks to handle defense
orders. A look at the extent of
this financing was afforded in the
midwinter meeting here of the New
York State Bankers Association.
Broderick Haskell, vice president of
the Guaranty Trust Co. of New
York, said the Nations banks al
ready have loaned Sll7,000000 for
construction Of defense plants,
Bankers at the meeting insisted
the commercial banking system
had both the resources and desire
to finance defense requirements on
sound propositions. They con-
ceded the emergency character of
much of the defense outlay properly
would call for R. F. c. credits to
bridge the gap where private lend