Evening star., 1941-06-25
Wars Spread Likely
To Intensity u. 5.
Arms Drive
Further Curtuilment
OF on-Defense Steel
Orders Predicted
6v the associated Press.

By the associated Press.
NEW YORK. June 25.-The mag
anne Iron Age predicted today that
advent OF Russia into the war would
Undoubtedly result in an ntensif1-
sation" of Americas effort to aid
Great Britain and build up United
States defense
LAS this prospect looms" the mag
szine said. the lines are being
drawn tighter on supplies of steel
and other metals on these not en-
gagged in defense activities. Some
manufacturing plants have already
been forced to curtail operations be-
cause of inability to obtain sufficient
steel, and a further tendency IN TINS
direction appears TO be inevitable
over the coming months.
shipments of steel to the auto
mobile industry are being delayed
or cut down in anticipation of the
approaching end of the current
model season and the fact that mo-
tor car production is TO be curtalled
beginning in August.
New Auto Cuts Due.
TT now appears that this curtan-
nent may be considerably more
than the 20 per cent originally
agreed upon. With wide strip mills
now operating at so per cent or more
m plate tonnage the inability of
the motor car makers 10 obtain a
sufficient supply of sheets and strip
will in itself dictate further reduc-
ton of automobile production
schedules.
with the growing use OF prefer
ence ratings for direct and indirect
defense requirements. the amount OF
steel remaining for civilian con-
sumption is shrinking to Ich an
extent that non-defense consumers
are likely to be pinched much more
severely than has been generally
expected.
The ALLEGATION recently of large
tonnages of steel for ships, cars,
shells. pipe lines and for shipment
to Great Britain has complicated
the delivery situation for CONNER
rial steel users to a serious extent.
It is estimated at Pittsburgh that
fully 65 to 70 per cent OF current
steel production Is earmarked for
preferential treatment, leaving a
relatively small amount for other
consumers.
The fact that railroad require
ments have been given an AS pref
erence rating and the growing VOL
ume of railroad orders have COM
phcated the production and delivery
problem for the steel mills. Rail-
road orders IN the past week in
rluded 10000 freight cars, II loco
motives and 10000 tons of rails.
About 500 1000 tons OF rails have re-
Gently been ordered. but these are
for 1912 delivery. Cars and loco
motives are wanted earlier.
Mill Operations Rushed.
Meanwhile. the steel industry is
pushing operations upward to the
fullest extent possible, but is ham
pered somewhat by the growing
shortage of scrap. However. this
week the industry average has risen
above 100 per cent for the first time
this year, being estimated by the
Iron Age at 1905 per cent. Only
5 of the 13 districts for which
calculations are made by the Iron
Age are at less than 100 per cent,
most of the others being well above
that figure
The effective date of the steel
ceiling order was changed from
March 81 to April Is, thus giving
effect to a few price changes that
occurred between these dates
notably one of Sc a ton on gal
vanized pipe
THE price administrator also
amended the scrap price order per-
mitting some minor adjustments
designed to facilitate the flow of
scrap.
The scrap composite is un-
changed at s1917."