The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1943-07-22

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of that money, for that is the NJ
posits which are today conside
wants the Bureau of Mines to g
and, where advisable, to start Loo
by first setting up few pilot pla
and to get certain engineering d;
This $2,0O0,00O fund may be the
beginning of the end of "Pittsburgh
plus the basis of the price control
over steel set UP by the big steel in
terests 1t is incidentally a boost for
the sponge iron process, which has
recently been developed to a point
where small plants, requiring compar-
atiyely small investment, can be built
near the mines to produce iron and
steel in competition with the biggest
steel plants in existence.
Decentralization Is Aim
Because Il shortage of steel inter
feres seriously with the building of
ships. airplanes, tanks, and munitions,
us well as for railroads, electric power
. plants and other war needs ON the
home front, Congress started an in
vestigation little over a year ago to
see what could be done about it. John
Z. Frey, president Of the Metal Trades
Department of the AFL, was the first
witness called by the Steel Shortage
Investigating Committee, headed by
Representative Frank w. Boyllin, of
Alabama.
The solution agreed upon was what
is referred to as the decentralization
of the steel industry" That is to set
up small plants near the mines and III
certain areas whose local industries
are retarded by the high freight cost
on steel shipped in from the big steel
centerS Not Il simple undertaking, of
course, in the face of opposition steel
interests entIenched in the industry
and in the War Production Board,
X. +. c., and other war agencies
through its dollar-a-year men.
States Ask Fair Chance
Governors and industrialists in
states with iron ore and fuel resources
urged this move They want their
states to have II fair chance to de-
velop and offer its labor Il diversity of
jobs. They would employ their native
iron ores by processing it into steel
Independent of Big Steel. Among the
states which pledged themselves to
help relieve the steel shortage situation
and began spending time and money
were California, Texas, Virginia,
h North Carolina, New Jersey, Mime
sofa, New York, North Dakota, Mas
sachusetts, Washington, and Connec-
ticut
Other states needed assurance that
they had enough good iron ore to in
sure production at Il profit to inveS-
tors. The big steel interests knew, but
Wouldn't tell. The Bureau of Mines
should have been able to tell them
but Congress had never before given
the bureau enough money to find out
Thus another step has been taken
in the slow progress of the United
States toward Il more equitable econ
omy.
One Company Formed
From now on there should be inter
esting developments in the 26 states
which have known iron ore deposits
Instead of the control of steel pro
duction now patterned by the flow OF
iron ore from the Minnesota ranges t.
the Pittsburgh steel producing area
it is hoped to have Il series of stee
plants built throughout. the entire
country close to local supplies of irol
ore and fuel.
Washington has already organized
the Pacific American Steel Iron Corp.
headed by the well known mine anC
ship construction contractor George
Murphy He is to build Il plant il
Washington to not only supply Il large
part of Washingtons needs for Stee
and iron for shipbuilding and othe
~ purposes at less cost than at present
\ but will serve to wreck the "Pittsburgi
4 plus pricing system which has hell
back new industries in the Pacific
Coast area Eventually the countr,
may have 26 pricing points instead o
/. This is What North Cardinals Gov
ernor. j. Melville Brought, refers Il
as returning the industry to the service
of the people, for it will open up th
steel industry to honest competition
unless an inert government permit
monopoly to again throttle the indie
pendentS
Action Already Taken
Minnesota and North Dakota hav
set up Il joint commission to process
Minnesota ores with hydrogen obtaine
from North Dakota Ignite.
North Carolina is already Spendin
state funds to bring about productio
y of steel from local ores.
Connecticut is preparing to reviv
its ancient iron and steel industry.
All over the country similar dc
velopmcntS are under way.
The chief benefit arising from ere(
ton of local steel plants is not onl
the employment provided for men il
the mines and in the steel plants, bu
the jobs made available in small indt
pendent businesses in durable good