Detroit evening times. (Detroit, Mich) 1921-1958, 1941-06-07
Plea TO Boost
Steel Output
Held Unwise
Gano Dunn's Ana ysi'
Cited as Proof
BY HUGH S. JOHNSON

dustry In the presence OF the In
creased estimates Of require
ments In no way impairs its
capacity for national defense,
since the total army, navy, mari
time and other military require
ments. including about aid 10
Britain. represent only 25 per
cent of the industry's capacity"
This is the concluding para
graph Of Mr.. Gano Dunn's Sec
ond report TO the President on
steel requirements and steel ca
paclty. 1t bears on the hot con-
troverSy as 10 whether our steel
making capacity should be in
creased by 100000 tons
which should take two years.
cost between $l,250,000,000 and
81 ,oO0,000,0o0. consume AGO.
600 tons of steel ingots and alb
sorb large supply of labor in
held where a serious shortage is
already threatened.
OF course any such study of
requirements of steel can be no
more than gross guess con-
iirmed by the best information
available-whlch isn't much.
TfIE defense requirements"
must be largely the eSti-
mates Of responsible defense
lahrlcatinG- bureaus maritime,
naval, military and British.
Men in charge of each CT these
activities, guessing two years
ahead, are certainly not likely
to underestimate their require
mentS.
IL is human nature 10 90 the
limit and our World War ex-
perlence proved that in this
kind C. situation il does 90 the
limit. There was then great
hue and cry about steel short
age as compared with paper re-
quirementS.
After the Armistice. what had
been suspected by many became
clear. The grab-bag over-esti-
mates OF requirements were
either proved by actual produc-
ton operations 10 have been
excessive. or steel actually di-
Verted 10 "safety-blankets" and
backlog inventories were dis
closed as nothing short OF self
iSh boarding.
Not only are estimated cl-
villain requirements Is per cent
OF the total. but the estimates
OF percentages OF increase in
experienced civilian require
mentS are greater than esti-
mated percentages of increases
IN defense NEUTRALITY-SUSPICIOUS.
Tor Britain. our own army.
navy or maritime needs.
Strange 10 say nearly 20 Der
cent OF the total 1871 estimated
requirements are for the build.
ing construction industry. and
OF this only 100000 tons arc
Tor military construction
Actual consumption for an
construction i'm 1910 was only
lO,4OO.OO0 tons. Hardly any
body outside government bu-
reau who is familiar with The
construction industry can con.
ceive of 100 per cent increase
Usually the estimate is 20 per
cent or less.
- +. Is Impossible ia study tho
Dunn report and compare II
5 With our World W ssevseSas
}ss;ttf 8s0aftEp @itiea tl,at thiprg i
{ ssp1e+hiRg remarkably screwy
IN The hullabaloo about a steel
shortage. and drive 10 diver,
4.OOO.OOO tons of ingots (which
IS more than fine vast 1e11
shipbuilding requirement. 10 in.
creasing capacity for produc.
uon two years hence.
Except for a, fairly fruitful al.
tempt TO discourage private in
ventory buying-to some extent
Speculatlve-almost nothing has
been done to make our appar-
entity ample supply of steel do
us work by methods that would
be- used, for example, in any
great and we'll conducted in
dustry.
1t Is true that the automotive
industry has been told 10 cut
down ITS production 20 per cent.
That Is the easy" way-a sloppy
way. an arbitrary way and il
may be. an almost suicidal wav.
Little or nothing has been
done 10 conserve uses. prevent
wastes. demand absolute and &C.
curate Showings of necessity
pool inventories and stocks (by
localities or by industries). sub
Stltute other materials or. in
applying fiat percentages in re-
strlctlng production. TO apply
them evenly or equitably over
all steel consuming industries
and not just on one, as in the
case of automobiles.
Nobody is urging business as
usual. " Nobody shrinks from
sacrifice. But there is no sense
in such futile sacrifices as those
OF the fiagellants or the bloody
celebrants Of an old Sioux sun.
dance.
Our industry, con nrotoot ou,