Evening star., 1941-04-26
Aluminium Demand
Cited in Plea for
Rationing Powers
Knudsen and HiIImun
Stress Civilian Needs Of
important Materials
RY the Associated Press.

By the Associated Press.
One reason the Government seeks
broader powers to ration materials
required for defense or British aid,
it was disclosed officially today, is
that only 25 per cent of the Nations
normal aluminium needs can be sup
piled after military requirements
are met.
William S. KnudSen and Sidney
Hillman, defense production chiefs,
made the disclosure in a memoran-
dunn to Chairman Vinson of the
House Naval Affairs Committee
urging expeditions action" on leg
islation to empower the President to
assign mandatory priorities to con-
tracts for lend materials and
to ration materials in which short
ages develop.
Under the So-called naval speed
up" law enacted by Congress last
year, the President was given au-
thority to establish prio, tiles on
Army and Navy contracts and the
Office of Production Management
has been giving preferential status
to "lease-lend" orders as well.
Lack Power, They Say.
Mr.. Knudsen and Mr. Hillman in
formed Representative Vinson. how
ever, that they lacked the power to
make such preference ratings man.
datory and pointed out that at any
time manufacturer could refuse to
honor them "and prevent the fulfill
ment of contracts which are, in some
instances, as important to defense as
the most important Army and Navy
contracts"
Mr.. Vinson said his committee
would begin hearings on the pro-
posed legislation Monday morning
with Mr.. Knudsen as the first wit
ness.
Discussing the need for rationing
powers, the memorandum explained
that whenever priorities are as
signed to certain orders because a
shortage of materials has developed,
"the result inevitably Is a shortage
in the supply for civilian needs"
For instance" the memorandum
confined, "in aluminium at the pres
ent time the balance available for
civilian use, even if we assume that
the rate of production will continue
without interruption by sabotage,
strike or other stoppage, is only Is
per cent of the normal civilian de-
mand.
Want Careful ALLEGATION.
"Where this situation occurs it Is
essential that such fractional supply
be carefully allocated to those
civilian needs which are most i'm
portant in the maintenance of our
domestic economy"
Concurrently, Attorney General
Jackson announced that the Justice
Department had agreed with the
Office of Production Management to
work out in advance antitrust law
questions concerning national de-
fense contracts.
This is not for the purpose of
sanctioning violations" he said,
"but for the purpose of seeing that
violations do not take place and
at the same time that the defense
effort Is served.
"Mr. John Lord OBrian, general
counsel for the o. P. NJ, and this de-
partment have agreed upon plan
of procedure by which questions OF
this character will be defined by o.
P. M and by industries involved
and may be presented to this de-
partment."
Cites Private Agreements.
Mr.. Jackson said that defense re-
quired establishment of some pri-
critics, ALLEGATIONS and unifications
to achieve efficient production" al
though similar acts, if undertaken
by private agreement in order to
tighten control over an industry or
raise prices, would be violations of
law and would be prosecuted. He
added:
IF, however, in order to step up
production of defense materials, the
industries are asked by the Govern
ment to reduce production of non
defense material, this does not con-
stitute a conspiracy against the
public interest and, of course, is not
a violation"
Referring to a published report
that the department had approved
plan for collaboration by steel
companies, Mr.. Jackson said no
question relating to the steel indus
try had been submitted to the de-
partment and no commitment to re-
frain from prosecuting steel COM
panies on antitrust charges had
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