Evening star., 1942-06-30

pfONC lIldb llo
executives lack David Lawrence.
ed foresight and that the war pro-
gram is suffering from such lack of
planning.
Before the Senate committee in
vestigating defense, headed by SEN
ator Harry Truman Of Missouri, an
interesting piece Of testimony has
been offered by Donald Nelson,
chairman of the War Production
Board. Senator Brewster of Maine
had asked if the steel capacity is
sufficient to meet the anticipated de-
mand. The record shows this an
swer and discussion:
Mr.. Nelson: Il still, sir, don't have
the answer to that question, and I'll
tell you why. If we figure the steel
required to make the things We have
been given by the Army and Navy
a. the things they want, plus the
other requirements for steel-the
very essential, minimum civilian re-
quirements and, of course, that's an
area very hard to estimate-if you
do that, you have enough ingot ca
pacity 10 take care Of this program
However, as you look at the
picture today you haven't anywhere
near enough steel.
Struggling Over Hump.
TN the first place, you are on
rapidly-aScending curve OF produc-
ton. You are filling up the pipe
lines for that peak production. In
other words, the material which must
be in the supply system, the manu-
featuring system, is very great. I
have the feeling that after We get
by this curve, this hump, and get
into just supplying the steel for
manufacturing and not supplying
the excess inventories which must
be in places along the line to back
it up so that you have the produc-
ton flowing smoothly, at that time
we will be able to take care OF the
situation"
Mr.. Brewster: How long is it 60
ing to take to catch up?"
Mr.. Nelson: "Oh. 1 think about
three months. There is another
problem that is very difficult one,
but we are attacking it vigorously.
We have got to prevent excess in
ventories from piling up in the sys-
TEN; in other words, having one
shipyard with more steel plate than
1t can use in the next two months or
IS days-whatever the amount OF
time is necessary for backlog-and
another company which Is producing
rapidly. having none. ' We
have gene into it and we have EVIL
dence of it in every phase-not lot
of maldistribution in every material,
too much built up in this pile, too
much in that pile, too much IN the
use of another.
Senator Truman: Isn't this steel
situation somewhat slow due to their
failure to realize that we are in
war and carrying on business-as-
usual rather than getting ready Tor
O WARP"
Mr.. Nelson: There Is undoubted-
" some of that, but let me ask you
To reflect. Our hindsight is always
good. Two years ago, who would
have predicted that We were plan
ming to make 5000 planes In one
year2 If you will show me anybody
who had the imagination even to
think of it-even the widest expan-
sionist, and was one OF them.
All Look to U. S.
IT think in the main it Is due to
the size of the thing that we have
undertaken. May We reflect just
moment on that size. We are so dif-
ferent today from what We were in
the last war when we could depend
upon England for our deficiencies in
production, and France and Italy.
Today we are the ones who are de-
pended upon to make up the de-
ficiencies. Everybody, with the ex-
ception of the Axis powers, looks to
us to supply material"
Mr.. Nelson has certainly stated
the case against the critics who are
using hindsight and whose interest
today must be to prove that the pro-
gram is a failure, or else their"sug-
gestions for a solution will not at
tract public attention.
The steel industry in America Is
the biggest in the world-three times
that of Germany and many times
that of Japan. There is plenty OF
steel for our own military uses, but
not enough for civilian and military.
Certain kinds of steel are short, and
maldistribution creates certain tenn
porary scarcities, but on the whole
America may be thankful that she
has on efficient steel industry. Its
competent management is response
BILE for the effective flow of steel to-
day, but will that management re-
main competent If it mus. share its
responsibility with others who take
no financial risks or those who want
q State-owned or State-controlled
steel industry?
These are fundamental questions
that lie alongside the current cam
paign 20 oiscredit the steel producers
of America.
tReri oduction Riehts Reserved)