Evening star., 1941-08-27
Iron Age Regards
Kearny Action as
|Hampering Output
Goin in Subcontroctinq
Under New Defense Policy
Praised, However

By the Associated Press.
NEW YORK. Aug. 27.-Iron Age
said today in its weekly review Of
the steel industry:
For another seven days, the steel
and metal-working industries have
been racing from knothole to knot
hole In the series of openings
through which, from time to time,
they have been given official views,
none complete. of what the Govern
ment wants done in the defense
program.
while some difficulties Of manu-
featuring defense items in the guam
tity now demanded. in the time per-
iods hopefully outlined. can eventu-
ally be overcome, most industrialists
believe that in backing up the
maintenance Of membership prin-
ciple In the Federal Shipbuilding
strike at Kearny, N. j.. the Govern
ment is hardly taking the right step
to help lame dog over stile
Certainly most industrialists and
most employees want to help the de-
fense program. Certainly most of
them do not want interruptions in
production.
BY assuming management pow
ers at the Kearny yards without.
however. indicating that it would
dismiss employees not in good union
standing. the Government did not
move in the direction of peace and
order and greater defense produc-
ton. Apparently it did throw open
the door for similar maintenance of
membership union demands on all
Woodworking companies which
have union contracts.
More Subcontracting.
"On the credit side OF the week S
news, industry finds. Army and Navy
purchasing onicials giving up some
Of their strongly-held positions to
spread subcontracting and head of
a depression In the midst of pros
perity. AS their share in spreading
the orders, Army and Navy buyers
are prepared to face substantially
higher costs and negotiate contracts
at higher prices to stimulate more
subcontracting of defense work
These steps were taken. it was noted
following the visit to Washington OF
Lord Beaverbrook, British produc-
ton chief and a sponsor of the
British bits and pieces program.
Much dissatisfaction over priori-
ties and losses by small plants
through mandatory diversion OF
such materials as steel to defense
work arises in Midwest areas. A
recent survey of small Illinois plants
f95 per cent IN the metal working
field) showed that "a per cent ex-
pect to be out of business before the
end of the year unless a way is
found to supply them with mate
rails. During the next 80 days signi-
flcant changes are likely in the gen.
eral industrial picture with many
hundreds of small plants in Ohio
Pennsylvania and other industrial
States restricting their operations OF
closing down entirely.
Full Priorities System.
Possibilities that iron and steeI
scrap will come under a full prior
tiles system. or that a Government
pool to handle emergency needs will
be created, were being discussed al
midweek, prior to the Knudsen-
Henderson conference with scrap
buyers and sellers. Steel plants ap-
parently face higher scrap prices
since community scrap collection
drives are unlikely to bring out the
continued, heavy tonnages needed
and other methods tried to bring
out sufiicient scrap have not beer
successful. '''
Partly because of lack of scrap
steel plants were unable to push
ingot production above last weeks
rate, the average continuing un-
changed at 81 per cent, based on the
American Iron and Steel Institute:
new capacity figures as of June 80
/ On the old basis this weeks rate
would be 99i. per cent.