Evening star., 1941-11-16
Steel Expansion
AppearsShe|ved
In Capital
N. A. N. Report Roises
What Is Regarded os
Dead Issue
BY FRANK MacMILLEN,


mills by 10000 900 tons yearly. and
the hitch appears to be at the Cap
ital and not among the companies.
inquiry among steel men revealed
today.
The subject came alive this week
as the National Association of Man
ufacturers published a statistical
survey of the industry, which
reached the conclusion that the
overall" method Of expanding steel
capacity, beginning at the ore pits
and running through to the finishing
mills, was unsound, and that in any
case the 10000 000-ton goal appeared
we'll beyond actual needs for defense
and civil use.
Steel makers, with tender skins
after a controversy among them
selves and with Federal authorities
since the early stages Of the defense
effort as to whether the country
needs more steel capacity-and just
how much mOre-Were chary of
commenting directly on the new fuel
which the N. A. M. report tossed on
the fire.
Declared Dead Pigeon.
But privately, many with shrevd
insight into the affairs of the in
dustry expressed the opinion that
the manufacturers organization was
wasting ammunition on a dead
pigeon.
For, they said, there was increas-
ing evidence that even Washington
authorities were not taking too seri-
ously the recommendation Of six
weeks ago by the Supply Priorities
and ALLEGATIONS Board that the mills
add 10000, 900 tons a year as rapidly
as possible to their output Of steel.
The S. P. A. B. recommendation,
they pointed out. rested on a base
which contemplated increased sup
plies Of the essential raw materials
of steel-the iron ore. limestone and
coke which 60 into pig iron, and the
facilities to handle it; and the COL
lection of scrap steel which, with
pig iron, is charged into the open
hearths to make new steel.
Instead, steel men here pointed
out, there have been authorizations
and financing provided at Washing
ton for specific expansions for spe-
cific needs, notably the projected
new pig iron. steel and finishing
mill construction for United States
Steel and Bethlehem on the West
Coast where airplane and other de-
fense needs have created unusual
demands.
But. steel men said, the Office Of
Production Management. acting as
| the executive arm Of S. P. A. 3.
in steel expansion, has shown little
disposition to rush approval Of wide
spread general expansion programs.
Jones Even More Wary.
And even more wary, they claimed,
was the attitude of Federal Loan
Administrator Jesse Jones Defense
Plant Corp, counted on for the
money necessary for general steel
| expansion.
! Where clearly demonstrated de-
fense needs have been shown, mon
ey has been quickly forthcoming, it
was said, but what some steel men
described as ''the pipe-dream
schemes do not seem to get the
green light from Jones, they re-
ported.
Tip-off that Washington was not
rushing headlong into overall steel
expansion despite the S. P A. B.
| announcement was the leisurely ap-
proach to the problem of ore-carry-
/ ing boats on the Great Lakes. The
! fleet in that service is already taxed
with record movement of iron ore
and any general expansion in steel
production would demand more YES
! sells.
w. A. Hauck. steel consultant to
! the o. P. M. who made the factual
! study on which the S. P. A. B. ex-
pansion recommendation was based,
calculated in his report of September
IS that 25 ore carriers of $4,000 net
| tons and costing s2000,000 each
would be necessary to haul the ore
for a 10,000,000-ton expansion in
steel making.
To have these boats ready even for
the 1943 navigation season. Hauck
said. they would have to have been
started by August IS Of this year
and to have secured full priority as
to construction materials. They
would have been laid down in series
of eight. the last batch coming too
late. probably, to be of much use
| in 1943.
Federal Aid Delayed.
But, steel men said. no Govern
ment money so far has been author
lied for their construction and no
contracts have been let. Even
though construction were started
Immediately, it appears now that
! the majority of the vessels would
not be in effective operations much
| before 1914
Without these carriers, it was con.
tended, talk of an overall expan-
sion in steel capacity Of anything
like 100000 tons year appeared
sheer theory.
Nor could the lack of ore be made
up by increased use of scrap steel,
| of which there already is shortage
sufficiently marked to have caused
recent recession in the rate of mill
activity.
1t is becoming increasingly clear,
observers here said, that the orig
inal desire of steel men. that civil.
ian consumption be held in check
as far as necessary to assure full
defense metal supplies, was being
adopted. voluntarily or involuntar.
| lily, at Washington.
Figures contained in the National
Association of Manufacturer re-
port, and obtained from the o. p.
NJ, indicate that agency expects
civilian consumption in 1912 will
be held to about 100000 tons,
where earlier Government estimates
had run as high as 100000 tons,
assuming no restrictions on civil
use.
Acceptance Seen.
Thus the defense agency's figures
appeared to show acceptance in
principle of the theory that civil
consumption of steel must be cut
| cborplv in tho interest of defense