Evening star., 1943-07-22
THE EVENING STAR,
u. S,-0wned Factories
Should Be Liquidated,
Jones Says in Forum

If there ever was question
which must be settled in the ma
tional interest, 1t Is the future utili-
zation Of this vast new industrial
empire" built with Government
funds for war purposes, Secretary of
Commerce Jones said last night over
the National Radio Forum, arranged
by The Star and broadcast from
Station WMAL.
Where any industry is able to
absorb Government facilities in its
line" Secretary Jones continued,
"on a basis fair to Government, that
policy should be adopted, the Gov
ernment selling or leasing the IA
cilities on fair and reasonable terms.
In those industries where Gov
ernment facilities approximate or
far exceed those in private hands,
the solutions will be more difficult.
For example, we very easily could
destroy private investments In the
aviation industry, but certainly we
should not, and will not.
Synthetic Rubber Is Problem.
"And then there is synthetic rub
Der. We will own all of this industry,
and Congress must determine how
much Of it we will maintain. Ger
tainly, We should never again be
entirely dependent upon foreign
sources of rubber"
The Secrtery, who also is head of
the Reconstruction Finance Corp.
and its huge subsidiary, the Defense
Plant Corp, detailed the Govern
ment's ownership of industrial
properties developed during the war.
He put the Governments total in
vestment at $25 ZOO, 100000.
Defense Plant Corp, an RFC
subsidiary, has spent approximately
81, 600 100000 in expanding the
country's steel production" he said.
This includes complete steel mill,
from ore to finished products, locat-
ed at Geneva, Utah, costing $780,
100000. The plant is just being
completed and will be operated for
account of RFC by Geneva Steel
Co., a subsidiary of the United
States Steel Corp. We have built a
$100,000,0 900 steel plant at Home
stead, Pa, which is leased to Carne-
gle Steel Co. for the period of
the war. We have built steel mill
at Chicago costing $85, 100000. This
mill will be operated by Republic
Steel Corp. We have built 12O
smaller steel plants and additions
to plants in connection with pri-
vately owned steel plants. Title to
all Of these is in the United States
Government.
Could Smother Industry.
In the production of aluminium,
Mr.. Jones said, the Government
owns nine plants with an annual
capacity of 1,200O0O,OOo pounds
more than the capacity of all pri-
vately owned plants. He put the
Governments investment in alumni
mum plants at $760,OO0,OO0.
About $430,000000 has been in
vested in the production of the new
light metal, magnesium. The Gov
ernment owns 80 per cent of produc-
ton in this industry, he said.
so. obviously" the Secretary said
the Government will be in a posi-
ton to smother private industry in
the manufacture of magnesium, and
also to dominate the aluminium in
dustry, because Government alone
will have more than enough capac-
ity to supply the entire peacetime
needs for aluminium. These situa-
tions will require wisdom and fair
ness by Government, otherwise pri-
vate investments in these industries
would be destroyed"
Steel capacity will still be 80 per
cent in private ownership, he said.
But even that will be enough seri-
ously to affect the industry" he add
ed, because the steel industry of
the entire country has operated
over period of 20 or Is years at
only so per cent of capacity"
Biggest Investment Is Aviation.
I'm rubber" the Secretary con-
tinued, "the Government will have
an investment Of s625, 100000 in
plant facilities, sufficient to manu-