Evening star. [volume] (Washington, D.C.) 1854-1972, 1942-11-03
New.War Production
Plan Further Pinches
Civilian Economy
Substitute for Priority
System Goes Into
Effect in 1913
By JAMES Y. NEWTON.

plan OF distributing materials W
American industry, designed to
replace the outmoded priorities
system and increase war pro-
duction appreciably." It will
place production facilities Of the
Nation and the civilian economy
on a total war basis.
While the effect on the civilian
economy cannot be determined def
nitely at this time, Price Admins
traitor Leon Henderson said the plan
would mean "a greatly reduced pro-
gram for civilians" He explained
that only Ia per cent of all steel
produced next year and less than
! per cent Of copper would be
used for civilian goods. In 1899
and 1910, he continued, civilian ir-
dustry used % per cent of copper
produced.
THE civilian economy must be
kept healthy, Of course-at an eff
Gent operating level" Mr.. Nelson
said. Under this plan we will be
able to determine the minimum
level at which the civilian economy
can be kept in order to produce the
things we need"
Designated for Balance,
Called the controlled materials
plan," and sufficiently complicated
to fill a 71-page explanatory book
let, the plan was unfolded by Mr..
Nelson at press conference yester-
day.
Officials believe the new play will
give needed balance to the war pro-
duction program, make sure that
the right materials will arrive at
factories at the right time to pro-
duce weapons the military high
command deems necessary to win
the war. Materials for bare essen
tial civilian needs will be doled out
Of the same big kitty" along with
those for war goods. There will be
no materials for nonessential items.
This is one of the steps in evolu-
ton Of the proper distribution of
materials 50 that the war program
can go forward faster and more
promptly" Mr.. Nelson said. Our
goal is to produce the maximum
impact on the enemy. The purpose
of this plan is to find time and
a place to do everything we con-
slider essential to winning the war
to see that there is order, to see
that first things come first, second
things second and those unneceS-
sary things come not at all. We
think this is better than any plan
we have had 50 far. Only time can
tell what bugs there are in it,
The three most important ma
terials, steel, copper and aluminium,
are the first to be allotted under
the control plan. The materials
cover from rs to 80 per cent of all
war production, Mr.. Eberstadt said.
No more materials were incorporated
in the scheme at the start, as 1t was
felt that the others naturally will
follow the flow of the major items.
Other materials will continue to be
distributed through priorities, though
when distribution of one becomes
unbalanced it, too, will be con
trolled"
The new plan becomes effective in
It's 'transitory stage" in the second
quarter of 1943 During that period
orders issued under the plan will
take precedence over any priority
rating. Use of the plan for dis
tribution of steel, copper and alumni
mum will become mandatory July J..
Claimant Agencies"
The purpose Of the new GIMP,
Ferdinand, Eberstadt, WPB vice
chairman, said, was to assure
a current balance between supply
and demand for controlled ma
terials; to assure that materials
are available in the quantity and
forms at the time required by ap-
proved programs and schedules.
Allotments of critical materials
will be made through seven claim
ant agencies" the Army, Navy,
Maritime Commission, the Army
and Navy aircraft scheduling unit,
lease-lend, Board of Economic
Warfare and WPB's Office of Civil
Ian Supply. These agencies will
make materials, allotments to prime
contractors producing the essential
goods. Prime contractors, in turn,
will divide the allotments with their
subcontractors and suppliers.
WPB. it was explained, will not
attempt to tell the Army or Navy
the number of types Of planes which
should be produced. But, after the
claimant agencies have submitted
their programs, the Requirements
Committee will inform them how
the programs fit the supply of ma
terials, and will adjust the differ
ences between demand and supply.
Prevents Overdrawing.
So that sufficient amounts Of ma
terials in the form desired may be
available, responsibility for direct
ing production of controlled ma
terials rests in the steel, copper and
aluminium branches of WPB. The
branches will see that the steel
and copper mills, the aluminium
plants produce the desired amounts
of materials within their capacity
and in the form needed.
Each claimant agency will be re-
sponsible for constructing pro-
gram making best possible use of
the materials allotted to it toward
winning the war The plan also
provides centralized control over
the division of materials among the
agencies and appropriate account
ing so that no agency nor con-
tractor can overdraw its allotment.
Under the plan, each claimant
agency will program the quantities
of end-products, guns, planes, Lib
erty ships, railroad cars, bedsprings,
etc.-most urgently needed for each
quarterly period. From the bills Of
materials, for each of these items,
the agency will make up a CONSOLE
dated estimate of its total require
mentS
Mr.. Eberstadt said he realized that
both labor and industry had suf-'
fered under the materials distribu-
ton system used so far in the war
effort. Both he and Mr.. Nelson said
they believed the new plan would