Evening star., 1941-06-18
ConnaI|y Urges u. 5.
To Build and Run
Aluminium Plants
Government Operation
With AIcou Aid Would
Control Prices, He Says
nv the Associated Press.

BY the Associated ffesS'
Government construction and op-
Grafton of aluminium plants was ad-
vocated today by Senator Connally
Democrat, Of Texas as the Senate
Defense Investigating Committee
attempted to force immediate action
to increase facilities for production
of the vital aircraft metal.
Senator Connally told reporters he
was convinced that the quickest way
to obtain a substantial boost in the
present inadequate output was for
the Government to build a plant al
some such site as that owned by the
Aluminium Co. of America at Fon-
tana on the Little Tennessee River
in North Carolina.
The Government could operate
the plant in cooperation with Alcoa
he said, and have it as a standby
facility after the present need passes
I'm not afraid of socialiZation of
industry in any case like this" SEN
ator Connally declared. He said that
if the Government retained control
of the plant after the present emer-
gency passes. it could carry out ex-
tensive experimentation.
Price Control in View.
In the meantime, he added d.
rect Government connection with
the production of aluminium might
pe invaluable in maintaining price
anf1tra1 ko cin at tnrto1
used extensively in the manufacture
of airplanes.
I. w. Wilson, Alcoa vice president
told the committee yesterday that
II work were started at once on de-
veloping the necessary hydro-elec-
trio power at Fontana, plant
there would be producing at the
rate of 30,0O0000 pounds Of alumni
mum IS to 18 months from now and
100 900, 900 pounds year when
completed.
Mr.. Wilson testified that Alcoa
felt it could not finance the $50
900 ,D0 power project needed at
Fontana without Government as
sistance and committee members
questioning developed that this as
sistance awaited approval of the
o. P. M.
Asks Ickes to Report.
With that in mind, Chairman
Truman directed that letters be
sent to William S. Knudsen, o. p M
chieftain, inquiring why action
could not be taken at once and to
Secretary of Interior Ickes asking
why hydro-electric power alloca-
tions to aluminium producers could
not be fixed Immediately.
Arthur Davis, chairman of the
board of Alcoa, said his company
was willing to operate the proposed
Fontana project if the Government
built it, would sell its power site
holdings to the T. v. A. and buy
power from that agency or would
undertake to construct the power
and plant facilities If the Govern
ment would lend the money.
Mr.. Davis assured Senators his
company could step up aluminium
production if the Government would
finance new power sources and
assure ships to bring bauxite, alum
mum ore, from South America.
More Niagara Power.
He said added electric power from
diversion of water from Niagara
River, recently agreed to by this
country and Canada, would provide
100 900 900 additional pounds Of
aluminium annually and urged Gov
ernment financing of steam power
plants to process bauxite deposits
Alcoa owns in Arkansas.
j. A. Krug, T. v. A. engineer,
said his agency was anxious to
see the Fontana project built at
once and did not care whether this
was by public or private financing.
Both Mr.. Wilson and Mr.. Davis
said Alcoa faced difficulties in
financing this project because Of
more than 5000, ,000, 900 already in
vested in defense production and the
Federal antitrust suit pending