Evening star., 1941-01-26
Steel Men Seek
Blueprint Of
Defense Needs
Question Federal
Doto Calling for
More Capacity
BY FRANK MacMILLEN,

NEW YORK. Jan. 25.-A policy
decision Of first importance to the
Nations defense effort appears 10
be in the making as the steel in
dustry first line of industrial pre-
paredness. reaches practical operat-
ing capacity
Steel men here have learned that
some Government economists CAL
culate the capacity Of the country's
mills is 100000 tons of ingots a
year short Of what defense and the
expanding civilian demand based on
growing pay rolls and employment,
viii require when the arms drive
reaches its peak.
With this estimate men in the
steel business generally disagree.
with the reservation that the Gov
eminent 50 far has given the indus
try no detailed blueprint Of what Its
defense requirements are.
Details Still Awaited.
The still lacking details Of tIla
needs OF the arms program for
steel include.
|. What kind Of steel? Plate.
sheets. castings srructurals?
?. How much OF each kind?
3 What delivery schedules are
demanded?
Until these blanks are filed in.
steel men contend, neither they. no..
the Governments experts. can tell
whether or not the steel capaciJE
IS adequate
If the Defense Commission a.
Washington knows the answers to
these questions now some leading
steel men here say. they have not
vet given them 70 the men who will
have 10 produce the steel
A start has just been made in
this direction. steel men report.
GanO Dunn chairman Of the J. G.
White Engineering Co. has been
surveying steel capacity for Presi-
dent Roosevelt. and is expected 70
report TO him soon. possibly during
the coming week
NJ. Dunn leaders in the industry
say, brought 10 them their first
direct word Of what the defense de-
manGs on the industry may be. ard
his figures lacked the detail essen
tlal to answering the question Of
whether capacity is adequate.
Terms Confusing.
Steel authorities here point out
that calculations Of steel require
mentS in terms of ingots is Confus-
ing, Ingots primary steel, are onlv
the raw material The consume
wants shapes. plates building steel
or some other finished product.
Thus the problem is at Least p
much question OF finishing Capacitv
as OF producing capacity.
One steel man here expressed
definite concern that the Govern
ment appeared doubtful Of the in
ouStry'S ability 10 produce the steel
necessary for defense He said II,
were inadequate and was willing 70
be shown if the COuntry'S mills
were inadequate and Will willing -
construct additional facilities if
there was no other solution.
But to date. he said. the Govern
ment had given no sign to the IN
duStry that its requirements would
exceed what present plants could
turn out.
In the absence of definite speci-
t1CatlOnS is to what is needed. most
steel men here were reported TO be
gong on eStlmateS-the best they
could make, and which they be-
lieved on the generous side-about
as follows:
The must" steel for l941 is about
seven million tons measured in
terms Of ingots' for the British
Empire, eight million tons for
American defense needs and five
millions for export to other democ-
racleS; total, about 25 million tons.
Big Margin Allowed.
The industry should be able to
produce 83 to So million tons this
year Thus. steel men point out.
their calculations allow 63 to 65 mil
lion tons for normal civilian needs.
In 1910, the greatest year of steel
consumption III the history of the
United States, about IS million tors
was used In 1929. the boom wear.
with no defense complications, con-
sumption was 60O00.OOO tons.
The problem of crea ting the ca
pacity to produce another 10 mil
lion tons Of steel a year, if indeed
there is need Of it. is enormous. steel
men say.
The ingot capacity and the finish
ing capacity to turn the ingOts into
uSable steel would cost at least ST..
000000000 probably more. steel eX-
pertS estimate The time required
would be two to three years. much
additional steel would be required TO
build the plants themselves. MANY
kinds of skilled building and ma.
chine labor would be absorbed at a
time when tehy are in demand else
where
Steel men generally believe that II
would be preferable to restrict nom
military uses of steel rather than
embark on such a program at this
Juncture In this feeling thev are
not motlvated. they explain, only bv
the considerations above. but also
by the fact that they believe il would
be better for the country and the
steel business if there were reser-
volr OF unsatisfied civilian demand
TO provide work when the defense