Evening star., 1950-12-13
18 Steel Companies
To Increase Output
By 5 Million Tons
By Froncis P. Douglas

|
day that 18 steel companies will
increase capacity by more than
SIS million tons at a cost of al
most half a billion dollars.
Chairman w. Stuart Symington
Of the National Security Resources
Board said that certificates of
necessity have been issued to the
companies so they may obtain the
tax benefits of accelerated write
offs of the new investments. The
expanded facilities are estimated
at $496, ,266 SAB.
Mr.. Symington said the COM
panies also will increase pig iron
capacity by 2.750,0o0 tons and
coke capacity by 2.5 million tons.
Three refractories companies were
granted tax benefits on a $22 mil
lion expansion program. They
produce materials needed in steel
output.
Pressed For Increase.
The Government has been
pressing for expansion of the steel
industry as vital to the defense
program. Its capacity is now
| 100, ,563 900 a year. Secretary of
Commerce Sawyer announced two
months ago that the industry
planned to boost capacity by "a
million tons year by the end
of 1852.
Bruce K. Brown, head Of the
Petroleum Administration for De-
fense, today stressed the need of
the oil industry for steel. Tie
industry uses about 10 million
tons year.
Mr.. Browns statements were
made to the Interstate Oil Gem
pact Commission. meeting at
Houston. Tex.
From the standpoint of the ma
tional economy. he said, obtaining
oil and gas means trading other
materials to produce them.
Tin Use to Be Cut.
i AS the Government increased
it's efforts to step up defense pro-
duction, these other moves were
announced:
/. The National Production Au-
thority disclosed it is planning a
cut of about 25 per cent in tin
and other materials to make metal
cans and bottle and jar tops for
civilian use. This is intended to
conserve the tin supply, much of
which comes from Southeast Asia.
The NPA said it aimed at maxi
mum production with less basic
scarce materials by changes in
specifications and the use of sub
stitute materials. Tin cans are
ACTUALLY steel with thin coating
of tin. During World War II
many products were packed in
glass containers to save the
metals.
Conferences Scheduled.
2. The Economic Sterilization
Administration announced it has
telegraphed leading steel, copper.
lead and zinc producers, asking
them to conferences here early in
January. ESA Administrator Alan
Valentine said the meetings will
discuss a number of stabilization
programs, presumably relating to
prices, wages and production.
3. The Defense Minerals Ad-
ministration took the first step
in the direction of controlling in
ventories of scarce manganese. a
necessary ingredient in steel to
harden it. Administrator James
Boyd said industry representatives
agreed to work with the Govern
ment for proper distribution of
ores among steel producers and
at the same time add more man
ganese to the stockpile.
GM Finance Expansion.
In addition to the steel ex-
pansion plans announced today
by the NSRB is. disclosed earlier
that the Jones g. Laughlin Steel
Co. would expand capacity by IL
million tons year at cost of
$144 million. The company was
granted tax write-of certificates
for this amount This added ton
mage figure brings total new ca
pacity for which plans have been
announced to 6.7 million tons.
Jones g. Laughlin is borrowing
$23 million from the General Mo-
tors Corp. to aid the financing.
Under the law. plant expansions
for defense purposes scan be de-
preciated in five years instead of
the normal Is or 20 years. This
results in tax reductions during
the 5-year period, eF
! The largest steel expansion an