Evening star., 1942-11-15
Concentration Faced
By u. 5. Business,
Britain Studied
Cut in Farm MACHINERY
Output Indicates
Widening Program
Special Dispatch to The Star.

Special Dispatch to The Star
NEW YORK, Nov. 14.-Business
Week reports in the current issue
that the WPB order reducing Amer
ican production of farm machinery,
carrying with it the clear implica-
ton that the program launched for
stoves, typewriters and bicycles is
now going to be extended rapidly to
other manufacturing lines, is focus
ing attention of business men on
the WPB report on British in 'us-
trial concentration.
Status Of enterprises liable to con-
centration will be determined by
their answers to five questions, says
the publication:
/. Are some or all firms in the
industry needed for civilian produc-
ton or can they be converted?
2. Is permitted civilian output so
limited that economical operation Of
some or all of the firms is impos-
sible?
3. Is significant part of produc-
ton continuing in areas short of
manpower?
4. Does the industry uneconomic-
ally utilize railroads because of long
hauls and crosshauls?
5. Does it use substantial amount
OF power and is this in power short
areas?
1t is pointed out that blueprints
for American concentration cannot
be traced directly from British plans
because of inherent differences in
production facilities, manpower,
transportation and raw materials
problems, but what happened in
specific manufacturing industries in
Britain may strongly influence lines
of attack here.
In Britain, Business Week states,
the government played it's most i'm
portant role in the approval of
nucleus plants selected either by the
industry or in cooperation with
Board of Trade committees. Stra-
tegic considerations, dictated by air.
raid dangers as well as by local labor
conditions and transportation bot
tlenecks, determine most govern
ment decisions, although where war
needs or export commitments were
involved, selection was Influenced by
the productivity of plants.
Five Methods Tried.
Techniques of concentration fall
under five heads-the agency plan,
transfer Of quotas, compensation by
levy, the pooling plan, and mergers.
Business Week gives the following
British industries as examples of the
five techniques:
Hosiery (Agency)-Voluntary con-
centration by the industry released
$1,000 out of $4,000 workers and re-
duced manufacturing units from
$500 to 416. Active firms, as agents,
maintained customers and brands of
closed firms.
Cutlery (Transfer of Quotas)-The
industry being unable to offer a plan
of concentration, the Board of Trade
nominated so firms as nucleus pro-
ducers licensed for three months,
with renewal of production quotas
from unnominated firms. At latest
reports, total number of producers
stood at SO.
Cotton. Compensation by Levy
Concentration was achieved by gov
ernment ALLEGATION of short supplies
to highly efficient nucleus plants,
After a temporary movement of
labor away from the industry, 10000
and later another $4,000 workers
were returned with difficulty from
higher-paid war jobs. In January,
1942, application of the Essential
Work Order effectively froze labor
In the industry. Compensation OF
closed mills by levy of $1,000 per
year per 100000 active spindles
proved Inadequate and the govern
ment approval an increase of 10000
per year in June, 1912
Soft Drinks CPooling) In June,
1912. output was cut Is per cent, but
production of concentrated sirup
was increased with total saving
in distribution of 100000 tons annu-
ally. The government stipulated
quality standards and price, and
banned the use of labels. Pooling
concentrates production OF 1,50O
manufacturers in less than 200 nu-
cleus plants, and all producers share
in the profits under the plan.
Lace (Merger)-Although the fall
of France temporarily stimulated
the lace market, production fell In
all but two lines producing camou-
fage net mosquito tents and cur
tain materials for shatter-prooflng
glass. Sixty firms transferred their
production to one factory.
Varied Problems Faced.
The Business Week article states
that other industries ordered to
concentrate encountered difficulties
arising from decentralization, pecu-
liarities of labor use and supply,
and raw material quotas. Eventual
transfer of initiative from industry
to government, as delays continued,
and a tendency to favor efficient
producers characterized progress OF
concentration throughout.
Original emphasis upon concen-
trating manufacturing industries
has shifted to include food indus
tries: Slaughtering (from 10000
houses to 5000, lard, edible fats
melting, bacon curing, candy 600
to 20 firms) and margarine. Plans
for butter packing, cheese process
ing. milk canning and driving. glu-
cose production, egg packing and
provender milling are under dis
cussion.
Distribution of fats, margarine,
milk Gin cities over 10000 popula-
tion) and -four have been concen-
trated or rationalized, reducing
crosshauls and overburdening OF
transport.
Britain's banks and insurance
firms have already lost more than
40, 600 workers to industry and the
services, but face further staff cuts
under concentration rulings aimed