The Waterbury Democrat., 1941-07-28

Many of these small companies,
 Browning believes, face economic ruin.
 That is pretty drastic prophecy,
 but the beginnings of It's fulfill-
 ment can already be seen. Only
 three weeks ago, Peter R. Nehem- khis, Jr., one of the bright young economists in the Defense Con-
 tract Service, said mo fewer than 10 entire industries whose SUD-
 plies of materials have been either drastically curtailed or complete ly shut off would either have to close down or enter a new line of production.
 He was ridiculed, but so fast has
 this situation developed that in
 three weeks another OPM adviser foresees 5000 plants shut down and still others are saying that in an- other three weeks the country will be well launched on @ flrst-class de- fense depression.
 This is paradoxical situation if there ever was one, but 1t boils down to the simple situation in which de- fense industries, having first call of materials, simply do not leave enough for manufacturers supplying civilian demand.
 AUTO INDUSTRY
 TO FEEL PINCH
 It is now possible to name names and be specific about the industries that may be hit.
 The aluminium pots and pans in- dustry was the first to feel the pinch, with 3400 out of 16,000 workers in five of the 26 concerns in the indus try laid of or resigned because the plants could not get material. For every pound of aluminium available for civilian use today, there are at least 15 manufacturers, each of whom could use that pound
 Biggest pinch may be felt by the automobile industry. Production of 1922 models would normally begin Aug. 1, but if before that time the decision were reached to cut auto- mobile production 50 per cent, in- stead of the now contemplated 20 per cent, it might mean that as many as 250,000 production workers would temporarily be thrown out of jobs, 150,000 of them in the Detroit area alone. Needless to say, every effort will be made to keep the plants going, at least until jobs are open in new defense plants, such as the Ford bomber sub-assembly plant l at Ypsilanti, and otherS.
 The radio industry is another which may have to take major licking, turning out only COCO, 900 sets next year as against 12000, 900 sets in 1940.
 CAN'T STRETCH
 THIS RUBBER
 Tn the rubber goods field, the 'big six" can, say the OPM advisers, take care of all the defense needs, but as for the 400 little manufacturers, OPMers are giving no assurances. Unless the big boys can farm out sub-contracts to the little fellows, they may find the going extremely tough.
 All electric appliances-vacuum cleaners, stoves, conditioning units, refrigerators and washing machines, as well as radio SetS-may be tremendously curtailed. Electric heating appliances will suffer par ticularly. owing to the shortage of the nickel-chromium alloy which goes into the heating element.
 Everything from linoleum to bot tie stoppers may be curtailed be- cause of the shortage of cork, where the civilian demand is in the ratio of 10 to the supply of one. Brass and bronze hardware manufacture seems doomed. Outboard motors all kinds of sporting goods, in fact may be strictly limited.
 The silver plate industry, with eight major manufacturers, may have to shut down completely, not because of any shortage of silver, but because of shortages of nickel, copper and zinc.
 Even novelty jewelry manufactur- CTS must suffer, as their principal base metal Is copper, and within six 30 per cent of the copper production will be going to defense.