Evening star. [volume] (Washington, D.C.) 1854-1972, 1949-01-16
Truman Forces
Issue on Steel
Question of Production
Meeting Demand
to Be Cleared
BY Fred J. Zusy and Clarke Beech

By Fred J. Zusy and Clarke Beech
| President Truman has demanded
showdown in the fight raging
between steel industry leaders and
certain Government officials and
Legislators.
Crux of the controversy is the
question: rs the steel industry
expanding fast enough?"
Practically all the industry men
reply yes" Many say that produc-
ton will catch up with demand
within two years.
Opponents say present expansion
programs are so inadequate that a
continuing shortage of steel is in
prospect and will prevent the Ma
tons entire productive plant from
reaching full capacity.
Government Help Proposed
Men in the anti-industry camp
have even proposed that the Gov
eminent build additional steel plants
if industry refuses to build fast
enough.
The President in his message to
Congress on the state of the Union
indicated he agreed that this should
be done if it is true that more plants
are needed than industry is willing
to build. First, however. he pro-
posed that Congress authorize an
immediate study of the adequacy
of production facilities"
If it is found necessary, he con-
tinued. Congress should authorize
Government loans for the expansion
of production facilities" Congress,
he went on, should authorize the
construction of such facilities if &C
ton by private industry fails to meet
our needs"
The cry Immediately arose that
such a proposal was socialistic and
amounted to naturalization of the
steel industry.
Here are the crucial statistics on
American steel:
l. The steel industry says it now
has the capacity to produce $780,
$50 net tons of raw steel annually,
greater than ever before in war or
peace. Wartime peak capacity was
95, sos ,2S0 tons in 1914.
2. But the planned boost to 3d.
600 900 tons won't be enough, say
the men on the other side of the
question. C. Girard Davidson, As
sistant Secretary of the Interior,
says steel production should be in
creased by 100000 tons annually.
Two influential Democratic legisla-
tors, Senator Murray Of Montana
and Representative Patman of
Texas, also say our steel production
capacity is 100000 tons short.
Shortage of steel is admitted by
practically all quarters within the
industry. Steel Magazine, an indus
try publication, said in December
that the steel shortage gives every
promise of continuing for months"
Predictions Contradicted
Iron Age, trade weekly, said re-
Gently: If steel is as short by the
end of 1949 as it is now, there will
be more fireworks over the capacity
problem than the industry has seen
yet"
Big steel makers predicted In
1s47 that steel supply would catch
up with demand by the end of 1949.
They made their predictions before
Senate committee. One of the
most hopeful was Benjamin F.
Fairless, president Of United States
Steel Corp. He said:
II predict that within two years
within two years, or in a shorter
time-if the new facilities (planned
in the industry's own expansion pro-
gram could be added, that produc-
ton and demand will be in balance
domestically in this country"
Senator Murray commented that
"the industry's estimates of de-
mand in recent years have been con-
spicuously and dangerously incor-
rect"
Mr.. Davidson said in a recent
speech:
THE Eastern steel barons are OPP
posed, as they have always been, to
any enlargement Of our capacity
to make steel. These men Of little
faith are in constant dread Of a de-
preston which might leave them
with too much steel"
! distributed By the Associated Press)