Evening star., 1942-08-06
Truman Advises
Nelson 10 Cut
Off Some Heads
Committee Hears
Debate Over
Steel Priorities

Chairman Truman of the Sen
ate Defense Investigating Com
mittee declared this afternoon
that If Donald M. Nelson. chief
of the War Production Board,
would take the bull by the horns
and cut of few heads he would
have no more trouble" admins
tering priorities on war materials
The Senator advanced this ad-
vice after Committee Counsel Hugh
Fulton had asked Reese H. Taylor,
head Of the Steel and Iron Division,
II it were not possible under exist
ing rules for some steel companies
to be filling comparatively low-rate
priority orders while other COM
panies may have more high-ranking
priority orders than they can turn
out
The whole thing is a matter of
administration" Senator Truman
interrupted. mo matter what sys-
tenn of priorities you use, If you don t
have an administrator who knows
where he is going and how to get
there you will have difnculty."
Mr.. Taylor Agrees.
Mr.. Taylor, who came in as head
of the Steel and Iron Division only
two months ago, agreed it was a
question of administration, but add
ed he regarded Mr.. Nelson as a coed
administrator.
Il think so too," Senator Truman
rejoined. "and think If Mr.. Nelson
would take the bull by the horns
and cut off few heads he would
have no more trouble"
Mr.. Fulton said that If there are
more orders that the total steel sup
ply available for the high priority
ratings, he did not see how any mill
could be rolling out material for
low-number priority orders. From
a statistical chart presented by WPB
Mr.. Fulton said he gathered the
amount OF such instances was sub
stantial. He said there were cases
Of priority after priority being
Allied from lower numbers while
others with higher priority were
untitled.
Not Content With System.
Frederick Eaton, another WPB Of
Acial, told the committee "there Il
40 general contAr1tment with the
priority system In the War Produc-
uon Board He added that j. A.
Krug recently had been appointed
deputy in charge Of priorities. Mr..
Krug' formerly was power engineer
for the IVA.
Mr.. Taylor told the committee
there is no question Of the need for
a great deal more steel, but empha-
sized that 1t takes critical materials
to expand the steel mills. The
question to be determined, he said,
Is whether steel should be diverted
from finished products for the war
effort in order to expand steel pro-
duction plants.
Mr.. Fulton observed that there
are new war factories in. process of
erection, and that If there is not
enough steel for those now in oper-
alton, obviously the new factories
will not have any when they are
completed.
Says It's Not His Decision.
Mr.. Taylor said 1t was not his
function to determine whether ma
terials can be spared from finished
products to enlarge steel plants, and
Mr.. Fulton asked who made such
decisions.
Mr.. Eaton replied that would be
question for the War Production
Board as a whole to decide.
Senator Kngore. Democrat, of
West Virginia declared that collec-
ton and distribution OF scrap iron
for steel for use In making ships.
cargo planes. submarines and war
equipment should be centralized in
one agency and Mr.. Taylor agreed
with his conclusion.
Mr.. Taylor told the committee
however, that he did not feel COM
petent to say what the central
agency should be.
At present the Bureau OF Indus
trial Conservation has charge of
collection, the Once of Price Ad-
ministration sets the price and WPB
is in charge of allocatfng the scrap
to steel mills.
Flexible Price Seen Need.
Mr.. Taylor declared that in ad-
dition to centralizing scrap activ-
tiles, there should be flexible price
arrangement which recognizes the
fact that 1t costs more to bring In
scrap from distant rural points than
1t does in the cities"
Mr.. Fulton quoted figures he said
had been obtained from WPB show.
ing that S5 per cent of the expansion
in coke facilities, 96 per cent OF the
pig iron expansion, 86 per cent o1
the open hearth furnace expansion
and So per cent of the electric fur.
mace expansion had gone to the big
companies" .-.
Commenting That's what's wor-
rying the committee" Mr.. Fultor
asked Mr.. Taylor the reason fol
this disproportion."
Chairman Truman interjected
that Il don't want to embArrass Mr.
Taylor by asking him to answer the
question. The figures speak FOL
themselves. 1t was q fear on the
part of the big companies that they