Evening star., 1941-05-22
Steel Men Confident
Axis Production
Can Be Topped
Keynote of Conference
Is Sounded by OIds
And Tower
By the Associated Press.


NEW YORK, May 22.-Leading
executives of the steel industry,
sounding the keynote for the Amer
ican Iron and Steel Institutes an
nual meeting, today declared their
industry was capable of topping the
maximum efforts of the Axis powers
in the production of war and de-
fense materials.
This confident sentiment was ex-
pressed by Walter S. Tower, presi-
dent of the institute, and Irving S.
Olds, chairman of United States
Steel Corp, in addresses prepared
for delivery before steelmakers
from all sections of the country.
ITO my mind it is unbelievable, 3"
said Olds. that the United States.
given wen-prepared program, the
necessary time, and proper support
by our people, cannot outdo any
thing of which Germany is capable
in the way of production of the
essential instruments Of modern
warfare"
The steel corporation chairman
warned, however, that if the steel
industry lis to perform adequately
its functions during this period, it
must know what is expected from
the industry as soon as the program
is formulated, or modified from time
to time, by those in authority in
Washington
Tower, representative of the in
dustry on the Steel Priorities Com
mlttee, told the institute that for
the u months ending next week
output of ingots will probably ex-
ceed 10000, 900 tons," more than 25.-
100000 tons above the 1918 level.
Il must disagree, =" he said, with
self-appointed mentors of the in
dustry who insist that the industry
should be required to assume a
staggering task of forced expansion,
when it is not clear that any such
expansion is needed or could be at
tanned in time to be helpful"
He contended there was no ques-
ton about enough steel for all de-
fense or military needs"
Your industry can match ton for
ton all the steel capacity in Ger
many and its stolen lands. and still
give civilians as much as their aver
age consumption over the last 10
years." he added
Complexities Seen.
Olds said that the complexities
of the present situation were such
that no one of us has very clear
picture Of the demands TO be made
upon the steel industry during the
next two or three years and of the
ability of the industry to meet these
demands with its existing facilities
and those now under construction.
we all recognize" he said, the
immensely OF the defense effort and
the impossibility of any program
which is not subject to substantial
change from time to time. Never
theless. believe the steel industry
can meet most satisfactorily Sti re-
sponsibilities in this crisis by being
given a generous opportunity at all
times to extend counsel and aid to
the Government in the development
Of defense plans which directly con-
Germ steel capacity and production.
Olds urged careful study of basic
factors before decisions are made
for increasing steel capacity, holding
that "if the creation of additional
capacity is justified only by the ex-
igencies of the present emergency,
1t seems clear that everything of
reasonable character should be done
to prevent excess capacity becoming
serious problem at the conclusion
of the emergency"
Supply Held Adequate.
Tower told the gathering that for
defense, British and export. the facts
at hand, treated most literally, in
dicate a total of less than 10000 900
tons of ingots in 1912.
Even as the industry stands to-
day, that would leave more for ci-
villains than they have ever needed
In any year so far" he said.
He was critical of the conditions
which led to general advance in steel
workers wages, but prevented the
industry from making compensat-
ing adjustments in steel prices.
Price imitation" he said, cannot
be successfully avoided by putting
a ceiling on steel prices alone. while
wages, coal prices and other cost
factors push steadily upward.
1T may be that price imitation is
an inescapable and ultimate ASPECT
of the sort of experience which we
are facing. do not pretend to know
whether the action of any industry
or of any public agency can defect
or check the force of such powerful
economic currents as those which
have been set in motion. But I do
know. and all of you know. that
the violent upthrust of sharply in
creased wages cannot indefinitely be
cushioned in the thin margin of