Evening star., 1941-08-13
Big Task IsFaced
In RecIassifying
Steel Orders
Mills Likely to Use
Discretion in Drastic
Schedule Changes
Ry the Associated Press.

b the Associated Press.
NEW YORK, Aug. 13.-1ron age
said today in its weekly reVle"
of the steel industry:
FOR the last 4S hours incoming
mail bags in steel producing ana
consuming plants have been sagging
with a special message from the
Once of Production MANAGEMENT
in which, for the second time IN
23 years, the Government ordered
all steel to be diverted to defense
use where necessary for national
defense. For the second time
makers OF peacetime products must
live of the leavings.
After months of straining and
stretching by steelmakers to swell
production-which at T,73O225 net
tons for the first seven months OF
l94l was 63 per cent above the
output for the corresponding period
of 1917-defense agency leaders
concluded that there was not enough
steel for immediate delivery" for
all defense and peacetime uses.
"Of all the recent weeks Of mount
ing defense problems the United
States metal-producing and metal
working industries are finding this
week the most fructiferous. Steel
producers are faced with a noun
tain Of clerical work that compares
favorably in size with any paper
task of the depression and post
depression years.
Reports Are Required.
Steel orders estimated in num-
Der at more than a million must
be reclassified under the new man.
datory priority order which stipu-
lates that each producer must file
monthly reports with the division
of priorities, summarizing by group
and by product classification, orders
received and shipments made dur
ing each month, and untitled orders
as of its last day. If defense orders
are unreasonably rejected or de-
layed the customer can protest and
have the producer hauled of the
priorities division to explain.
ITO persons closest to the de-
fense picture it was growing clearer
at midweek that the provisions of
the o. p NJ. steel order must be ap-
piled with common sense Where
following the order literally would
result in actual loss Of steel produc-
ton through drastic upsetting of roll
ing mill schedules, the mill are
likely to use discretion. with Gov
ernment approval. One result of
the ordering of full priorities on
steel, which follows q similar order
for pig iron on August s and which
will itself be followed shortly by
special regulations governing distri-
button of alloy steels, is that the
steel manufacturer is relieved of the
burden of convincing unbelieving
customers regarding the crushing
pressure OF demands for defense
steel.
Scrap Shortage Grows.
"Of growing gravity to steel con-
sumers and producers is the grow
ing scrap shortage. already snow
balling into a position where it gets
a high priority rating on the coun-
try's list OF unsolved problems
Largely because of this shortage, steel
operations dropped q fun percentage
point this week to 98.5 per cent from
sos per cent last week. In some
cases mill schedules are tapering at
the end Of each week because of lack
of scrap. =.
For most steel makers. the past
week was another period of taxing
orders far above their capacity to
produce. Bookings at big centers
like Pittsburgh and Cleveland ranged
from 120 to 100 per cent of ca
pacity. To build the 1.820-mile long
pipe line submitted this week to Oil
Co-ordinatof Ickes by II oil COM
panies. the steel industry must find
somewhere another 40o. 900 tons OF
steel, the elite material in the United
States defense arsenal"