Evening star., 1941-01-05
Defense Exerts
Growing Effect
On Business
Arms Plans Becom
Major Influence in
Many Communities
BY FRANK MacMILLEN,
Associated Press Business Writer

prints to steel, cement and ma
chimes is rapidly becoming a doni-
nant influence in American life in
many sections of the country, a sur
vey of key cities showed today.
The billion dollars or more being
poured into new factories and ship
ways is recruiting vast armies of
workers, taxing housing facilities in
many areas. as America begins the
big push to make itself the ar
senal of democracy"
Particularly in the Midwest and
some parts of the East and South
and Pacific Coast an increasing
Of communities appear to
have reached the point where pro-
duction Of arms, or preparation for
it, is the major activity.
Shortages Appear.
At a number Of these center.
especially those where aircraf,
steel and machira
tool making are important local
factors, such characteristic war
time phenomena as housing and
skilled labor shortages are begin
ing to appear.
And from nearly every industri2l
center in the country comes word
of new or expanded plants In the
scores of lines which turn out tho
goods of modern war. Many OF
these, which a few weeks ago were
but lines on drafting board. are
beginning to assume shape as brick
and mortar, and the bulk appear
destined to house whirring machin-
cry sometime in 1941" A num-
ber, especially in the aircraft field
are scheduled to start turning out
their products this spring.
The survey showed over ha,s
billion dollars going into ma jo-
projects for new or expanded fa~-
tories, ship ways and the like. witt
at least that much again in thou
sands OF smaller undertakings.
Boom Aspects Seen.
Facilities to build naval vesse'7 ;
and cargo ships for the United
States and Great Britain appeared
to have given some of the coastp
cities a boom-town aspect, while
belchlng steel mills and busy plane
motor factories formed the back
bone of the Middle Western effort.
But many lighter lines. including
shoes, clothing. chemicals and am
munition all appeared to be getting.
or preparing to get. their share OF
the 7,000,000000 of defense money
already appropriated and the many
billions more to come. both from
this country and the democracies
abroad.
The smaller cities particularly
seemed to be having difficulties in
coping with the influx of new work
ers attracted by booming industrial
plants. Living in tIailers or COM
mutlng for distances of as much as
30 miles were mentioned as among
the eXpedients to which workers
were driven because some defense
centers could not house them. Ris-
ing rents, too, were noted in some
cities as workers bid against each
other for the accommodations avail
able.
Some reports indicated the land
lord was doing better than the mer-
chant in cashing in on the rising
pay rolls and increased employ
ment.
Retail Buyers Cautious.
While Christmas business in
stores was mostly the best in a
decade, retail sales, it was noted
repeatedly, did not appear to be
increasing in direct ratio to pay
rolls and employment. Buying is
cautious. mo silk shirts" one mer-
chant summed it up.
Varying explanations have been
advanced for this by business OBJ
servers, including the guess that
many formerly unemployed people
now on pay rolls. are paying old
debts, and a 'maybe-it-won't- 't-last"
attitude on the part of many work.
ers who have become accustomed to
uncertain employment in recent
years.
How far the shortage of skilled
workmen has progressed appeared
uncertain. Some cities reported
definite shortages. In others it was
observed that employment mana
gers were reluctant to admit any
need for additional hands because
as the representative Of one of the
country's largest manufacturers
said:
I'VE would be sWamped with un-
qualified persons seeking work. But
We can put every good man who
presents himself at work immedi-
ately."
Machinists, tool and die makers.
mill wrights, foundry coremen and
building trades employees were
among skilled workmen mentioned
in one center or another, as scarce.
Highlights Given.
Here are few highlights Of the
more than three-score industrial
areas and individual cities of vary
ing sizes, covered by the survey:
Pittsburgh district-Steel and coal
production up 25 per cent or more
in 1910 over 1889, coke up 125 per
cent. Some S25,O0O,0OO of new plants
last year. Airplane propeller plant
and new power plant. S2,0O00OO and
s10,000,000 respectively, under way
Employment up IS per cent from
1889 and pay rolls "a per cent.
Very definite housing shortage.
Bath. Me.-Bath Iron Works has
s170,000,000 contract for naval ves-
sells. Two new ship ways being
added to present six. Housing IA
cilities taxed, neighboring towns
taking up slack.
Buffalo.-Both Curtiss Wright and
Bell Aircraft plants have been
greatly expanded and Curtiss is
pushing new plant to employ 5000
to 10000 for May opening. Short
age of some kinds skilled men.
Wichita, Kans.-Three aircraft
factories have S9O,OOO,OOO defense
orders and total of S6,750,000 in ex-
pansion programs under way. Week
ly pay rolls now S150,000, will be
S450,000. No housing shortage.
GrOtOn. Conn Electric Boat Co.,