Evening star., 1948-09-05
U.S.Industry
Shifts Plants
Business Reasons, Not
A.Bomb Given
as the Cause
BY Clarke Beech

AhdOStiy 10 oti GfiC HiOfC. IL .
leaving the large cities and settling
In small towns. Large enterprises
are scattering their various plants
out through the Nation instead of
leaving them concentrated in one
place.
Government reports and private
surveys indicate that the industry
of New England and the Middle
Atlantic States is no longer growing
so fast as it once did But in the
Southeast, Texas and California,
new factories are being built at an
ever-increasing rate.
The defense motive-getting away
from the Atlantic Coast-seems only
a minor one. The chief considera-
tions are economic.
In fact, the Government agency
which has the job of advising in
dustry on how to be on the safer
side in case OF war doesn't even
recommend that industry go inland.
Scattering the Targets
That agency, the National Secu-
rity Resources Board, says the. i'm
portant thing is to get out of
heavily populated, industrially con-
gested areas and don't locate near
plants which might become priority
targets In case of atomic attack.
The boards point is that the
atomic bomb will always be ex-
tremely expensive and that an
enemy would drop the bomb where
1t would do most damage.
1t calculates that no country in
the foreseeable future will ever have
enough to afford to use one on each
city OF as few as $4,000 people, or
on a congested area of less than five
square miles"
1t estimates also that improved
atomic bombs Of the future probably
will not cause heavy damage more
than three miles from where they
90 off-twice the range Of the first
atomic bombs.
A suitable site might be found In
New England or the Middle Atlantic
States, q board official points out
as we'll as in Kansas or Oklahoma
But industry is spreading out into
less developed areas nevertheless
chiefly to be closer to the source o1
supplies. closer to markets to be in
regions where labor and other costs
are cheaper.
Favor Smaller Cities
The National Industrial Confer.
ence Board reported in May that II
had queried 143 large manufacturing
companies and learned that of the
plants they built or acquired before
1910, nearly half we're in cities o1
100000 and more.
But in the period 1940-1947 only
third OF new plants were in
cities that large. Towns OF from
1O,0W to 100000 were most popular
There was large increase, too. In
the number of new plants placed
in towns of 10000 or fewer.
Another study was made by the
Territorial Information Department
Chicago research agency repre-
senting a group of utilities. 1t sur
veyed Nationwide new plant con-
struction between May, 1945, ane
October, 1947.
1t found that rs per cent OF the
plants were situated in communities
OF fewer than $4,000 and that only
"a per cent went into communities
Of more than 100000.
The same study turned up signif1-
can't statistics about the industrial
growth and decline of regions:
The Southeast had IA per cent OF
all Government-finan plant con-
struction during the war. But in the
first % months after the war the
Southeasts share of total construc-
ton throughout the Nation Jumped
to 19 per cent.
The Southwest's share jumped
from per cent during the wal
to Is per cent since We day. Texas
was far ahead Of any other State In
the value of new plants constructed
More money was spent on new plants
In Houston than in any other city
Industrial construction in the Fal
West rose from 10 per cent during
the war to II per cent in the post
war period.
(The study includes one more re.
gional item as various" listing
per cent for wartime construction
but giving no percentage for post.
war construction
California led all other States ir
the number Of new plants con-
structed.
Shift Started During War
New England got per cent Of
Government construction In war
time, but since We day has gotter
only 3 per cent of the national
industrial building.
The Middle East had % per cent
dropped after the war to 19 per cent
The Central region had 80 pei
cent and fell to 30 per- cent (yet still
led all other regions).
The Northwest had per cent
dropped to per cent.
The shifting of the industrial axi!
began during the war. A Commerct
Department study shows that in 1913!
Middle Atlantic States did more
building than any other. The Eas
North Central region came second
the Pacific third.
In 1946. the first postwar year, th
East North Central region first, tn
Pacific second and the Middle At