Evening star., 1947-09-11
Union Demands
Steps 70 Boost
Output of Steel
Deficient Capacity
Means Depression
Congress Warned
WALLACE'sAYS STEEL plans out
put cut; industry denies it.
Page As
BY the Asseeioted Press

|
The CIO United Steelworkers
today called for an increase in
the Nations steel products ca
pacity to correct deficiency
which it said inevitably means
depression"
Otis Brubaker, the unions director
OF research, told a Senate Small
Business subcommittee opening two
days of hearings in steel production
that the industry appears SNUG and
lntranslgent" in the fact of "a steel
starved world"
Some immediate action on the
part of the Government is required"
MIR. Brubaker told the subcommittee.
He urged the committee to per-
suade the industry that expansion
of its capacity is essential if the
country is to maintain full en-
ployment domestic economy"
Kaiser Attends Hearing.
After hearing Mr.. Brubaker, the
subcommittee recessed until tomor-
row, when it will get the views of
officials of most of the big steel COM
panieS.
Henry j. Kaiser, West Coast in
dustrialist, attended today's hearing
as a spectator, and said he would be
on hand tomorrow, but told report
ers he did not expect to take part
unless asked because he does not
want to "intrude as an unlimited
guest" He said he had not received
an invitation to tomorrow's meet
ing
Mr.. Kaiser agrees with the CIO
contention that there is a serious
need for expansion of steel produc-
ton facilities. He has pending be-
fore the RFC recent proposal to
help him finance an expansion Of
his West Coast steel plant.
Senator Martin, Republican, Of
Pennsylvania, subcommittee chair
man, told Mr.. Brubaker the sub
committee may ask him to return
for questioning after it has analyzed
his testimony.
Government Surveys Cited.
Mr.. Brubaker did not give his own
estimate of the capacity needed, but
cited several Government surveys
estimating a 1850 demand as high
as 100 1000 900 tons of ingots, as COM
pared with present capacity Of
81 ,00O, 900 tons.
He said steel has become the
fountainhead of American prosper
ity," and that the industry now "is
in the paradoxical position of pro-
ducing more steel than ever before
in peacetime, and yet falling so far
short of requirements as to imperil
the stability of our economy" He
added:
The plain truth of the matter is
THAT steel, hitherto in the van of
our progress, has capacityWise
fallen behind its sister and depend
ent industries. Unless corrected,
this imbalance inevitably means de-
preston
Conclusions Presented.
On the basis of a study he said
he made of the problem, Mr.. Bru-
baker drew these principal con-
clusions:
81. The long-range requirements
for a full employment domestic
economy, as estimated by all
branches of Government and by
other interested parties, indicate
the need for an immediate expan-
sion of basic steel capacity. -
20. Both the immediate and the
relatively long-range requirements
of PROSTATE Europe and Asia, even
ignoring the pressures of the lucra-
tive South American market, insis-
tently call for steel exports far in
excess of anything this country has
ever known during peacetime.
! "3. The steel industry has appar-
j emily determined against any ex-
pansion of basic steel capacity. This
position is taken without serious
dispute on the part of the industry
concerning present steel require
ments and without any reference to
the tremendous continuing demand
for steel exports.
a. Some immediate action on the
part of the Government is required
| if we are to be in a position to sup
port our domestic economy and to
fulfill the commitments which we
(See STEEL, Page A-5.}