Evening star., 1942-07-26
Fight on Initiation,
Ssmber Ship Report
Top Week S News
Sinkinss GreotIy Exceed
New Boots, U. S. Learns;
Coreo Planes Studied
6y JAMES MARROW and
WILLIAM PINKERTON,

Sor9o Plones StudIed
BY JAMES MARROW and
WILLIAM PINKERTON,
Associated Press stah Writers.
NEW YORK, July 25.-President
Roosevelt this week sought way to
beat imitation into submission and
the industrial face of America be-
gan to undergo a change.
WPB Chief Donald Nelson ap-
proved the British principle of in
dustrial concentration which would
center future essential civilian pro-
duction In certain plants and Sec
tions OF the country.
He said there would be selec-
ton Of nucleus firms for the con-
centration of production so that
cross hauling might be eliminated
where possible and the drain on
transportation facilities reduced to
q minimum.
Amid widely expressed fears that
price controls as now in effect could
not stem imitation, leaders of or
ganized management and labor paid
an unusual unity" call on the
President.
The visit followed strong indica-
tions the President would either use
his present powers-or ask Con-
gress for more-to put an iron check
on living costs.
II seemed likely he would seek
labor management concurrence in
whatever plans he made.
Unions Ask OPA Hands Off,
His visitors were Eric Johnston,
president of the Chamber of Com
merce OF the United States; Will
liam P. Witherow. president of the
National Association of Manufac-
turcrs; William Green, president OF
the American Federation of Labor,
and Phillip Murray, president of
the Congress Of Industrial Organi-
cations.
The CIO and AFL jointly asked
the President to forbid any FIN
reference" with wage rates by the
Once of Price Administration.
The President had been urged
widely to curb wages and farm
prices. both of which had remained
outside the ceilings clamped by the
OPA on most of the things Ameri-
cans buy.
While stern action was impending
In the White House. the War Ship
ping Administration disclosed SOM
Der news.
It announced that sinkings of
United Nations vessels "have greatly
exceeded new construction" of ships.
This news followed soon after the
Maritime Commission cancelled the
contract 1t had given Andrew j.
Higgins, New Orleans shipbuilder,
for 400 Liberty ships on the ground
that Shipyards already building ves-
sells or soon to build them needed all
available steel.
In the midst Of these develop
ments Mr.. Nelson warned against
undue optimism over the possibility
Of creation OF enormous fleets OF
huge freighter aircraft to Offset the
loss Of seaborne cargo space.
Cargo Planes Studied.
He said he was studying the prob
lem Of cargo planes and their use
In the war program.
But he threw cold water on the
prospects Of shipyards. limited by
lack Of construction steel for ships,
turning their facilities to conStruc-
ton of such air giants as the Glenn
Martin 70-ton flying boat Mars.
Mr.. Higgins, shortly after cancel
lation of his shipbuilding contract,
said he could turn out cargo planes.
Meanwhile. Secretary of the
Treasury Morgenthau asked the
Senate Finance Committee to boost
the House-approved $6,27l ,O0O, 900
tax bill by another $2,500, 900 900.
Quietly. because plans for it had
been made weeks in advance, gaso-
line rationing of a regular type went
into effect on the Eastern seaboard
July "a.
There was likelihood the Presi-
dent might veto a measure for an
independent grain-rubber setup. The
bill provides for an agency to di-
rect the manufacture of synthetic
rubber from grain alcohol independ-
ent Of the War Production Board.
Veto Might Be Overridden.
Some Senators said that even if
the President vetoed the bill they
would have enough votes to pass it
over the veto.
The WPB, examining the rubber
industry's plans for meeting the
civilian tire problem, thus far has
found there is no rubber of any
kind available for anything except
the most essential purposes"
In the face Of widespread short
age of dressed beef and pork, Price
Administrator Leon Henderson asked
civilian consumers to "buy carefully
and buy less If possible during the
next six weeks"
The shortage developed for the
first time since the wars start, with
experts blaming the pinch on a
squeeze" between uncontrolled live
stock prices and the ceiling prices
placed on dressed meat, giving as