Evening star., 1941-06-15
Defense Drive
Places Power
Chiefs on Spot
Potential BottIe-Neck
Brings Threat Of
Federal Action
By FRANK MacMILLEN,
hssnc1atsn Press Business Writer.

United States through the greatest
industrial boom in its history?
The second great potential bottle
neck of the s42 900, 900, 900 arms and
lease-lend program of the Nation
steel was the first and railroad
transportation may become the
third-has entered the acute con-
trOverSy stage
The answer is not clear.
The utility industry, in the person
of Charles w. Kellogg. president of
the Edison Electric Institute and
head of the power division of the
Office of Production Management
in Washington, believes the power
plants have a 10 per cent safety
margin over the likely peak load OF
the defense drive and thinks cur
rent and planned construction will
keep it ahead of requirements.
The o. P. NJ, in a statement last
week. repudiated the Kellogg estl-
mates as made only in his indi-
viGual capacity and said its agents
had been engaged. with other arms
of the Government, in laying out.
a program Ito provide additional
power needed for expanding de-
fenSe requirements
With this fiat contrad diction be-
tween the views OF defense officials
and the industry. power joined steel
and transportation in their battle
over how much new capacity was
{ needed to meet the expanding re-
qulrements of the defense program.
Steel Makers Agree.
Steel makers appear to have
reached at least a tentative agree
ment with Washington. There may
be temporary hitch for civilian
consumers as the new plants are
being built over the next 18 months
TO two years.
Usually reliable sources reported
today the steel industry's leaders
had already offered the o. P. M.
blue prints of the 10000 .OOO-ton
expansion it desired, although they
had not received a go-ahead from
Washington either on the plans SUBJ
mltted or on the reported willing
ness OF the Reconstruction Finance
Corp, to furnish the money for the
, estimated 81 l250. 1000 cost.
The controversy between defensl
authorities and the railroads owe
s the adequacy Of the supply Of car
n to handle the unprecedented volum
= of freight which has sprung from
. the defense program still is in tn
formative stage.
1t may never become acute. rail
7 road men said, because the carrier
have rapidly revised their estimates
But they, too, may find they begal
too late to recognize the magnitud,
OF the job before them. Late au.
, tumn. this year, may be o tes'
! period, it was said.
The power men are the one.
, really on the hot spot now, most
business analysts agreed.
Drought Is Bad Break.
They have gotten a tough break.
in any case, it is pointed out. in the
spring drought-which had the bad
luck to be particularly severe in the
areas Of the country supplied BY
water power including the Tennes-
see Valley and Bonneville Grand
Coulee Government owned power
regions.
Because of low water flows,
rationing of power is due in the
T. V. A. area this week. and cities
IN the valley have already been
economizing on such things as street
lighting, recent reports indicate.
Some power men here said the
shortage in the valley was due not
only to inadequate rainfall but also
to the fact the Government owned
power facilities had contracted to
deliver more energy in the area than
the facilities could be relied upon
consistently to produce.
The Q. P. M. has pointed out
some of the most important alu-
mlnum producing facilities of the
country, huge users of power. are
located in the Southeastern area
served by the T V. A.
Its recent statement said: at is
clearly evident that without civilian
curtailment in important areas suf-
flcient power will not be available
in time to produce the supplies of
aluminium and magnesium demand
ed by the growing aircraftand lend
lease program"
There is the additional difficulty
here and there of defense plants
located in relatively isolated areas
being supplied with adequate power
as they come into production pro
/ greSSively over ensuing months.
Convinced of Adequacy.
Most power men here appeared
convinced the overall capacity of
the country's power plants was ade-
quate for likely demands. while con-
ceding occasional regional or local
shortages might crop up.
Power company experts. however.
point out all calculations to date
have been based on rated capacity"
and believe actual capacity can be
lllIcu DS W 10 pei CcIlI. Mdl1S
steel mills have been operating at
101 to ia per cent of capacity"
it was pointed out.
Whatever the outcome, these are
the salient facts of the present
status of the industry:
l. The power plants of the country
are capable of generating about
Al 500 900 kilowatt-hours Of cleo
tricity.
2. BY the end of this year the
theoretical potential will have been
increased by new construction to
about 45,100,000 XVIII,
g. About as much. another $780,
! 900 XVIII, is now planned for addi-
ton in 1912.
4. If generators can, as many
operating men think, be run con-
sistently at 10 per cent beyond
rated" capacity, the out-turn at
the end of this year would be
actually 49,610 900 XVIII; at the end
of next year. possibly sooner, So
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