Evening star., 1942-05-31
Big Ship Drive
Likely fol Pinch
Steel Supply
IS Per Cent Of Plate
Potential Required,
Magazine Reports
Special Dispat tch TO The Star.

Special Dispatch TO The Star.
NEW YORK, May 3O.-The United
States Is winning its battle of pro-
duction, but the ever-present prob
lem is to get the guns to the men
on the r-f1ung fighting fronts, says
Business Week in its analysis of the
business outlook today.
Special significance, therefore. at
taches to Admiral Vickery's state
ment on National Maritime Day that
100000 deadweight tons of mer-
chant ships could be built next year,
provided that adequate steel could
be supplied.
Consider, the magazine points out,
how that 1943 program has more
than tripled from 100000 tons be-
fore Pearl Harbor. to 100000 tons
in the Presidents January speech
outlining arms goals, to $4,000 900
tons just few weeks ago, and now
tentatively to 100000 tonsl
If the country can achieve this
unprecedented goal, merchant ship
building alone will consume some II
per cent of the Nations entire steel
output. More, it would preempt 25
per cent of our capacity to produce
structural shapes and IS per cent Of
the steel plate potential. And there
will be other huge demands for
shapes and plates-for tanks, naval
vessels, lend-lease, construction.
Controls frightened.
This pinch on steel and other
metals is behind the War Produce
tion Boards pending move to tighten
controls over supplies by extending
the ALLEGATIONS system.
Beyond that. it implies a new
production pattern. We have gone
through the stage of constructing
civilian activity to foster arms out
put. We must now curtail indirect
war production in favor of direct
war implements. Freight car build
ing has already been cut, other rail-
road steel use may be reduced, and
we may have to retrench on some
machinery lines later on.
Building construction, for example,
is already limited, but, even so, this
years s14,000,000,00O construction
volume may have to be cut back in
1943 toward the $500, 900 900 total
activity Of 1940-though this seems
less serious when it is recalled that
1910 marked a post-1929 high. Sub
stitutionS of concrete and wood for
steel will be bolStering factor, and
suggested duration dormitories"
may help solve the war housing
problem.
Store Inventories Eyed.
Although, institution OF price CELL
ings has passed without undue Incl
dent, consumer good manufacturers,
wholesalers, and retailers are in a
dither again.
This time it's over preliminary
drafts of w. P. 3. order to control
inventories which would prevent
distributors from placing orders if
their aggregate inventories were
above levels fixed by w. P. B.
| formula.
But the controls contemplated SO
far would not cover foods, and small
stores woald be exempt. And, since
production of autos, appliances, and
other hard goods" is already lin
tied, the effect would be felt chiefly
by the general merchandise and
apparel fields.
Inventory accumulation OF ap-
parel, dry goods, household furnish
ings, etc, has been accelerating.
spurred by the decline in civilian
wool, leather, metal and other
supplies.
The inventory plan Is still In a
preliminary stage, and Nelson has
said that its application is some
months away" But w. P. B. is
anxious to ease the pressure OF civil
ian orders on manufacturers. 1t
would rather see them in war work,
if possible.
Lower Volume Hinted.
In any case. the move is a signal
of declining volume-as well as de-
clining profit margins-to still an
other group OF distributors Hard
goods dealers are already on the
spot, and filling stations soon will be
if gasoline rationing is nationalized.
Hints of freight rationing to come
are in the wind this week. w. P. B.
has created a new committee to
recommend preferential treatment
for various types of traffic, when
transportation facilities prove in
adequate. And the Office OF Defense
Transportation has announced in
stitution of a Nationwide check on
carload freight billed at each rail-
road. The data will be of help.
among other things, in certifying
priorities. If necessary"