Evening star., 1941-03-24

aluminium WHICH 4tllNN NtlN AAAN'NA
like uniustified boarding.
What has happened TO aluminium
IS important to analyze because II
the coming months similar sltua-
tions may arise with respect 10 other
basic commodities and the public
will be asked to dISaTrange its eco
nOnic life without luStlhcatlOn. IN
other words. serious dlSlOcatiOn OF
American industry can be effected
by reason Of incompetence II not
maladmInIStratIOn.
The first bit of suspicion cast on
the alleged demands tor aluminium
came to light when in the face OF
the urgent request OF the aluminium
Co. of America for more electric
power at Bonneville Dam. Secre-
tarv Ickes refused. His excuse was
that he was saving the power for
the public ownership units IN Ore
gon and the Northwest, but it begins
TO look as if the eminent Secretary
of the Interior knew the truth.
which is that the hyStera about
needing aluminium in huge guam
titles has little basis IN fact.
Whenever a member Of the PreSi-
dents cabinet can. III the middle Of
a critical stage in the national de-
fenSe program, refuse electric power
to a company which says it has a
large demand for a product disable
in making aTplanes, Il can be taken
for granted that the administration,
and particularly the President,
would not sanction such a refusal
unless it was apparent the request
for power was superduous.
Has Orders 1t Can't Fill.
This does not mean that the
aluminium company made an un-
necessary request. Far from it. The
company is faced with orders It can
not fill. But the Secretary of the
Interior evidently knows more than
the aluminium company about the
so-called shortage and has come 10
the conclusion that the shortage has
been grossly exaggerated.
One argument advanced is that
the Secretary wanted to allOt the
electric energy to a competitor of
the aluminium company, but while
the Bonneville Dam is to furnish
electric power for the Reynolds
Metals Co, which was recently
financed by the R. F. c. here, it
turns out that the latter company
did not augment the national alum
mum production which it had
planned because it merely trans
ferred a plant from Alabama to
Oregon, thus only offsetting the
building of the additional capacity
wanted in the Northwest by the
aluminium company. Had defense
needs been urgent the Secretary
would hardly have allowed this.
But there is other evidence that
when the whole story is unfolded ii
will be found that there is plenty
OF aluminium for defense needs and
that there may be at least half of
civilian needs for 1941 or nearly as
much as civilians used in 1889.
Last November the defense Off
cials here, after getting data from
the Army and Navy estimated that
1t would require about 100000
pounds of aluminium per month TO
meet requirements. The actual de-
tense industry orders for aluminium
today are running closer to a re-
Qulrement of 34,0000OO pounds a
month. This means a total for de-
fense of more than 400 900 900
pounds for the year 1941, which is
an absurd figure considering the
number of airplanes which will be
built.
Stimulated Overbuying.
The estimated airplane pToduC-
ti0n for 1941 is about 2O,0O0 but
even II it were possible this wear to
attain the 5O,OOO-plane program
projected by President Roosevelt. it
would mean only 3OO,O0O,OOO pounds,
since 5000 pounds of aluminium is
the average amount needed per
plane.
Now 1t is authoritatively predicted
by the experts that there Will be
an aluminium production of 65O.OOO.-
600 pounds in 1941 and if 300, 100000
pounds are used by the Army and
Navy it leaves a balance Of more
than 35O000,000 pounds for civilian
use, which is in excess of the en-
tire 1889 production and consump-
ton.
What then is the answer? Pre-
mature talk of priorities and we'll
engineered campaign by the Justice
Department which has been both
prosecuting and prosecuting the
aluminium company for two and a
half years may be the reason that
caused aluminium buyers to stock
up. Unquestionably inventories of
aluminium are abnormally large to-
day and fear of shortage has slim
ulated overbuying. Likewise there
are fears that the Justice Depart
ment may succeed in its effort to
oemoralize aluminium production by
breaking up the largest producer s
business and this may have led to
panlCky purchasing. The figures.
however, show that even if America
SN44I CO'OOO P4blitS. NLtCll II " III
not do this year, there would be
enough aluminium for most civilian
needs. And by July of next wear
the production in America will
amount to 85O,00O,OOO pounds. Since
Canada will be producing 40O.O00,O0O
pounds in addition, the North Amer
lean continent will furnish annually
In excess of 1,250,OOO,O0O pounds-a
world record. Just what is going
TO happen to the aluminium market
after the war, when German SUD-
plies are also available is Difficult;
to forecast, but it looks at the mo-
unent as If the aluminium hysteria
was overdone. Rationing Of supply
should have begun last June. II
would have prevented oVerstoCking
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