Evening star., 1947-10-26


the present backlog is wiped ou
they will be left with enormousl
expensive plants which will lie idle
That's the problem. Here ar
some of the factors bearing on it:
British and French government
supply officials now are in Washing
ton trying to work out deal on tn
amount of steel this country wi
send to Europe under the Marshal
plan. If they get anything approach
ing the amount they want, tn
effects on the United States will b
great. 1t isn't because they wan
a large percentage of the tota
output, but rather because the bal
ance is so precarious the effect o
diverting any fraction to Europ
would be out of normal proportion.
Steel leaders are pretty we'll agree
the Marshall plan probably wi
force ALLEGATION of at least a part o
American steel output-with the in
evitable loss of control by producer,
Shortage for Automobiles
In this country, two Of the mos
critical victims of the steel shortag
are the manufacturers of automo
biles and railroad freight cars. Auto
are important because of the par
they play in Americans daily lives
and railroad cars are, too, becaus,
the current shortage of rolling stool
is holding back uncounted industries
1t takes lot of steel to make al
auto-about six-tenths Of a ton
and auto manufacturers have bale!
Of untitled orders. The steel supply
is short and auto men complain bit
terly because they now are gettinl
only is per cent Of total output
compared to the 17.3 per cent the,
received in 1929, their record pro
duction year. The steelmasters sa.
there are so many new steel user
that Detroit~must take a reduction
But the auto factories are getting
more steel this year than last ever
with the percentage cut.
Currently, the auto industry l
hard put to accumulate a stock o
steel and some manufacturers sa,
operations are on day-to- day basis
Others report using steel last month
which was earmarked for October
However, a total of about 3,750,00
cars and 1,250,OO0 trucks are ex
pected to roll off assembly lines thi
year, more than in any year sine,
1929 when a total of 5,35s,42 unit
were produced. Anguished cries fol
steel, however, continue.
Freight Cars Needed
The railroad car situation is com.
plicated and confused. Steel sources
say manufacturers are getting al
the steel needed, but the manufac.
turers say they're not. Inadequate
distribution Is often advanced as th'
answer to that puzzler. To make
things worse, lack of freight car!
hampers the steel industry's effort!
to up production of steel for car!
and lack of cars snarls distribution
The car manufacturers have
striven manfully to build 10000 cars
a month, but production now is esti-
mated only at 1000 to 5000 units
monthly. More cars than that are
being tunked as worn out and tbs
month of october is expected tc
bring a new crisis in the freight cal
shortage.
Still another serious situation is
the lack of pipe. The oil and gas In
dustries aren't able to keep up with
the demand for their products and
lack of pipe plays big role. A re-
cent survey by the trade journal,
Iron Age, showed that 100000 tons
of finished steel pipe mustSbe avail
able to complete the $1,000 miles of
pipelines now under construction or
authorized.
The Iron Age survey concluded
there was very little prospect of any
such production in the immediate
future.
1t appears to the housewife that
there isn't enough of anything made
of steel. And the fabricating indus
try-which uses steel as a raw ma
terial to make the things she wants
is tortured by production head
aches, too.
Ambitious Programs
In the Pittsburgh district alone,
the fabricating industry has started
an expansion and modernization
program which will cost some 500
plants at least $40 ,000, 900. That pro-
gram will help end consumer short
ages in everything from hairpins to
vacuum cleaners but spokesmen say
lack of steel has been holding up
completion Of expansion.
The natural question is, What is
the steel industry doing?'
Steelmakers, instead of resting be-
cause production is at an all-time
peacetime high. are engaged In cost
ly and ambitious modernization and
expansion programs.
One very important process now
being accelerated throughout the
country Is that which sees manufac-
ture of sheet steel being converted
from a hot-rolled. sheet et-by-sheet
operation at a saving in quality and
time. , That change is expected to
add many thousands OF tons to an
nual production figures.
The steel men also are building
new plants, although not In q VOL
ume suficient to silence their