Evening star., 1942-07-26
Steel Lack Denied in Higgins Cancellation
Ry the Associated Press.

Two members of a House in
vestigating committee said yes
terday they had received evi-
dence contradicting the conten-
ton of the Maritime Commission
that steel shortage made it ad-
visable to cancel the contract of
the Andrew J. Higgins Co. of New
Orleans for the construction of a
shipyard and 200 new vessels.
THE evidence tends to establish
the fact that at the time of the
cancellation of the Higgins contract
there was. and there had been,
sufficient steel for the construction
of the entire shipbuilding program, :"
they said.
They were Representatives Boykin,
Democrat, of Alabama, and Culkin,
Republican, of New York Their
findings. they said, were concurred
In by two other members of their
House Merchant Marine Subcom-
mittee, Representatives Welch. Re-
publican, Of California, and Jackson,
Democrat, Of Washington. The re-
port was issued after testimony had
been given by DR.. Mordecai Ezekial,
economist of the War Production
Board.
Land Denies Influence.
Earlier in the day. Chairman
Emory S. Land of the Maritime
Commission. told the committee
fatty that absolutely no outside in
fluence" affected the commissions
decision to cancel the Higgins con-
tract, and reiterated that a lack Of
steel was the cause.
His statement was in reply to
testimony Friday by L. E. Detweiler,
assistant to the president Of the
Higgins Co., that high Government
officials who still retain peacetime
connections with steel and ship
building corporations Influenced"
the cancellation.
At one point in Mr.. Deitweilers
testimony he said Secretary of the
Navy Knox has to rely on Joe
Joseph W. Powell, who came from
the Bethlehem Shipbuilding Corp"
Mr.. Powell is an assistant to Secre-
tary Knox. Representative O'Brien,
Republican, of New York, expressed
the opinion that Joe Powell Is run
ming the Maritime Commission"
Denial Is Heated.
Yesterday Admiral Land was asked
whether Mr.. Powell had Influenced
the commission in the Higgins case,
and the reply was that neither
Powell nor any steel man nor any
shipbuilder" had a damn thing to
do with it."
1--WE will meet the Presidents
shipbuilding program irrespective of
the Higgins cancellation" Admiral
Land said.
In discussing the amount Of steel
allocated for merchant ship con-
struction, Admiral Land said that
'it's like tailor cutting a suit-we
had to cut the cloth to At the SIT
uation."
The shipping administrator de-
scribed Andrew J. Higgins, head Of
the corporation, as capable" and
his plans fol- building ships on a
rolling assembly line principle as
revolutionary"
Can't ForetelI Effect.
But. IN response to a direct ques-
ton from committee member, he
said that he didn't know whether
it would put other yards out of
commi ,sion and make obsolete pre-
sent methods Of ship building on
stationery ways.
He listed the increase in esti-
mated cost Of the yard from $2o,-
100000 to SIS, 900, 900 as one fac
tor which entered the decision, and
the housing problem as another, but
emphasized the steel shortage as the
determining factor.
The Boykin Culkin report attri-
buted the reported steel shortage to
faulty inventory control" meaning,
it was explained, that excessive
quantities OF steel had been al
located to some yards at the ex-
pense VI others.
Text Of Statement.
The text of the statement follows :,
The evidence tends to establish
the fact that at the time of the
cancellation Of Higgins contract
there was and there had been suf-
ficient steel for construction Of the
entire ship-building program.
The WPB, in charge of allocating
steel, aliocated it to the Maritime
Commission.
1T now appears that the old
standard yards, some Of them sub
sidiaries OF the old steel trust, had
inventories way out of proportion to
their normal needs. If this steel had
been properly allocated and distrib-
uted, there would have been SUI
f1cient steel for the entire ship
building program in the United
States, both naval and maritime
vessels, including those at the Hig-
gins yards.
The shortage has occurred in the
newer and more efficient yards"
Six-Month Supplies Charged.
Representative Boykin said there
were reports that the steel on hand
in some yards was sufficient to sup
ply the needs of those yards for six
months in advance, while normally
such yards are supplied for a two
month future period only.
In connection with the reference
to 'old, standard yards" Mr.. Hig
gins has charged that the cancella
tion was brought about by ship
builders who feared postwar com.
petition from his mass-productior
yard.