Evening star., 1941-10-05
Steel Expansion
Program Ends
Long Debate
S.P.A.B. Decision Seen
As Vindicotion Of
Dunn Report
By FRANK MacMTLLEN.

000-ton increase in the capacity Of
the Nations steel plants II brought
to at least temporary conclusion
a controversy which has yeXeo the
industry from the very outset OF the
defense program.
And the S. P A B. decision
which, incidentally. has still largely
TO be transmitted 10 the companies
as authorizations for specific ex-
panslon projects-came likewise sB
a vindication Of the calculations Of
Gano Dunn. 70-year- old New York
engineer, who made two reports on
the countrys steel capacity TO Presi-
dent Roosevelt and drew fire from
both steel men and some New Deal
ers.
Soft-spoken and erect. Dunn Is
president of the New York engineer
ing firm of J. G. White and one
of the country's top-fight engi-
neerlng minds.
He refused comment on the an
nouncement.
Faced Criticism.
Dunn first was under criticism
when his initial report 10 the Presi-
dent, in February. arrived at the
conclusion that based on the known
capacity of the steel plants al the
end of 1910. and the best estimates
/ of probable consumption needs. both
! for civil and military purposes
would show surplus capacity Of l0,-
100000 tons in the current year.
( For the following year, allowing
/ for construction then under vay or
/ planned, Dunn suggested surplus
Of 100000 tons.
While these conclusions followed
! CLOSELY those of most steel men a.
/ the time Dunn was lambasted b.
some Washington quarters who
thought both defense and especially.
civil, requirements were being un-
derestimated.
He continued the study. at the
Presidents request, and made a
second report in MAY.
Meantime the Lend-Lesse Act had
been passed and The picture. on the
consumption side had changed
radically. Our own naval and mill
tary requirements likewise had 10 be
revised upward in the light OF the
accelerating tempo of the defense
program.
Dunn reached the conclusion that
the country would be short 400 900
tons of the country's estimated need
of SO 900 900 tons this year and thai
in the following year the deficit
would be 6,4O0.0OO tons Of a total
requirement of 97.O0O.0O0 tons.
He suggested, as a possibility for
coping with the situation, a lift Of
100000 tons in the annual
capacity of steel makers, which he
calculated would take two years or
so, would cost about $3.50 900. 900.
and would, in the erection OF ths
facilities themselves. require 3,ooo,-
900 tons of finished steel
Decision Up to President.
He left to the President tire
decision as 10 whether it was fea5-
ible to extract this additional steel
tonnage from an industry that was
already running at practical capac-
ity.
Steel men read the s. P. A. B de-
cision as the answer 70 the problem
Dunn had posed on this point II IL
takes steel to make more steel, the
top defense organization has ap-
parentlv decided TO give that re-
quirement right of way in the in
terest Of greater production later.
Meantime. leading producers here
and around the country reported
they had still to receive the 60
ahead signal from Washington in
getting new plant construction un-
der way.
The Office of Production Manage
ment. to whom S P. A B. turned
over the actual work Of setting up
an expansion program and arrang-
ing its gigantic financing. has re-
vealed initially only that il has de-
cided on 1865 900 tons additional ca
pacity on the Pacific Coast, where
booming defense industry and Iona
distance from other steel producing
centers has created a special prob
lem.
Bethlehem. with plants at Seattle
South Francisco and Vernon. near
Los Angeles, and United States
Steels Pacific Coast baby. Columbia.
at Torrance, Calf, will get the bulk
of this new plant but such smaller
coast concerns as Pacific States
Steel. Northwest Steel and Oregon
Electric Steel will all get something
Over 80 companies, all told, it is
said in trade circles. will get some
new plant and equipment out Of the
program.
Proposals on File.
Plans for the East and Middle
West have Yet TO be announced. but
1t is known that practically every
major producer has already fur
nished the Government with plans
/ for expansion which could run, in
/ the aggregate, to $4,000 900 tons.
about 100000 tons more than has
been asked by S. P. A.B.
( The plans went to the Government
as result of study by the steel
industry Defense Advisory Commit
tee, a body which contained repre-
sentativeS of virtually every steel
/ producer in the country.
In these plans, which are under
study by o. P. MS steel consultant.
2OO-pound, 6-foot w. A. Hauck, once
assistant to the president of Lukens
steel Co, at Coatesville. Pa, United
States Steel Corp, the country's
largest producer, with a projected
expansion of 3,366,060 tons. and
Bethlehem Steel, with 2,772 900 tons,
lead the list.
But such important "independ-
ents" as Cleveland's Republic Steel,
Plttsburgh's Jones 6 Laughlin, In
land Steel at Chicago and Granite
City ull) Steel are all slated for
major improvements.