Evening star., 1941-12-07
Business Rises
As New Arms
Plants Open
Priority Unemployment
Less Than Expected;
Railroads Busy
Special Dispatch to The Star.

NEW YORK, Dec. 6.-After one
of the longest sideWise movements on
record-2l Weeks-business has now
definitely broken out of its rut.
This week the Business Week in
deX advanced above the 1854 level,
and further advances are in the
offing. New armament plants, rap
idly coming into production onow
and later, are more than Offsetting
the slackening of operations IN some
of the durable consumer goods lines
which have been hit by prioritieS,
the Business Week analysis states.
Indeed priorities unemployment
has been much less pronounced than
the portentous political prophecies
about it. The payoff on the prob
lem is to be found in a survey OF fu-
ture employment requirements just
released by Federal Security Ad-
ministrator McNutt.
1t estimates that more than 250,-
900 workers will be added to pay
rolls between now and March l, as
compared with 81 900 layoffs in g.
900 defense manufacturing plants
More than 10 per cent OF the lay
offs are expected in auto and auto
equipment factories.
LOadings Lull Missing.
The breadth of the business up
swing now getting under way is in
dicated by carloadings. Normally
at this time of the year, freight
traffic undergoes a sharp contrac-
ton from It's September or October
high. But last week, loadings in
creased some $4,000 cars.
Apparently, business traffic, IN
stead Of making the church -steeple
peak of former years. has spread it.
self out, and rolling stock, instead OF
being retired to the sidelines in No
vember and December. has been
carrying a bumper volume Of de-
fense and other commodities.
Railroading is one Of the few ma
jor industries that have yet to ap-
proach the 1929 level Of capacity
That implies that most railroads
can still expand volume without run
ming into the inefficiency and higher
costs that industries have TO COM
bat whenever equipment and man
power are being pushed above ac-
customed limits of stress and strain
BY itself, this is fine for railroad
profit and loss accounts; it sug-
gests that large proportion O!
increased gross will be carried down
to net. But the 100000 0O0- plus
boost in annual wages is a SHARP
setback at this time. And 1t is OF
long-term significance, too, since
the award to railroad workers was
made as a basic rise in pay, and
not simply for the duration" OF
the emergency. Thus the new wage
increases will be a continuing addi-
ton to railroad expenses after the
war Is over
More Equipment Needed.
Because of the continued high
level of traffic, the carriers are still
very much In the market for new
equipment. As a means of speeding
up deliveries and conserving critica
metals, the Association of American
Railroads has adopted q plan Il
standardize the manufacture of 10.
comotives and freight cars.
Under the arrangement, car anC
locomotive builders will interchange
plans. engineering data and pat
terms. This program is bound Il
find favor in Washington. where of.
f1cials long have been struggling
not too successfully-with problem.
OF standardization and simplifca.
ton. The plan also NAV be thu
forerunner of similar schemes il
other industries.
The shortage Of steel plates. which
tamong other thinss) slowed dowr
railroad equipment output las
month, has so stirred Washington
officials that straight-out ALLEGATION.
have been instituted to break the
log jam. Trouble is that priorit,
ratings of A-10 or higher cover
S5O,0OO tons monthly, whereas tota
plate capacity amounts to only 6OO..
900 tons. OF this. the Army. Nav,
and Maritime Commission need 300.
900 tons. or half.
May Prove Model.
So, as matter Of necessity rathe,
than forward planning, Prioritie.
Director Nelson had to step in tc
see that defense industries 90,
theirs. This is the first use of di.
rect allocations in basic product
and hence is of Importance to thu
whole materials distribution system
II the plan is efficient, it is likely tf
be the working model for extension
OF ALLEGATIONS to other industries.
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