Evening star., 1951-09-25
.SfeeImakers Called
To Showdown Session
On Production Here
BY Froncis P. DouqIos

>
! Defense Mobilization officials
have called steel producers to {
meeting here Thursday for {
showdown on the critical problem
of steel production.
The meeting is a sequel to the
statement made two weeks ago by
Mobilization Director Charles E
Wilson that he was shocked" al
the prospect that steel supply vii
fail to meet essential needs in the
flrSt quarter of 1852.
Mr.. Wilson, Manly Fleischmann
Defense Production administrator
and others, will meet with major
steel producers at the Office o1
defense Mobilization on measure:
to get estimates of steel needs anG
production into line.
! Meeting on Aluminium Called.
Meanwhile, there were these
other developments In the serious
situation involving metals:
l. Mr.. Wilson was planning a
meeting late today on the prob.
lem of cuts in aluminium produc-
ton caused by the power shortage
in the Pacific Northwest.
! 2. Jess Larson, Defense Ma
terials Procurement administrator
announced arrangements to take
over the entire output of a Peru
Wan zinc mine.
! 3. Mr.. Larson also announced
i measures to increase copper out.
put in this country.
! The steel conference will explore
means to increase output by !
million tons in the first quarter OF
1852 and million tons in the
second quarter. The industry;
schedules call for about % million
tons of ingot steel production II
the first quarter, but Mr.. Wilson
has asserted he would mot accept
present estimates of supply
The meeting on aluminium ane
power today is expected to brins
to Mr.. Wilson's Office representa-.
tives Of NPA and DPA. the De.
'fense Electric Power Administra.
ton and other agencies.
| Moving to Be Discussed.
| Mr.. Wilson had asked repre-.
lsentativeS of the Aluminium Co. oi
America, the Kaiser Aluminium
Co. and the Reynolds Metals Co
to report on the feasibility oi
moving aluminium plants from the
Northwest. Lack of rain there
has cut hydroelectric power anc
three aluminium facilities with &
production of about 10 million
pounds a month are shut down.
There are indications the Kaiser
company doubts moving ths
plants is practical. Government
officials have also doubted tha
even if the plants are moved
enough power for them would b,
found elsewhere.
Mr.. Larson announced that tn,
Defense Materials Procurement
Administration has made a,
agreement with the Volcan Mine
Co. Of Lima. Peru. which viii
mean the production at smelter
here of 765 tons of slab zinc =;
month from Volcan's concentrates
The Government has agreed u
buy half of this over a three-yea
period at IT'S cents a pound
Mill To Be Built.
Volcan has agreed to build +;
l$750,000 concentrating mill at it
mines to be completed abou
January /. 1858.
Mr.. Larson also announced tina
the Copper Cities Mining Co. ha
agreed on a $15.2 million expan
sion program to mine and treat it
ore in Gila County. Ariz. tn
Government has agreed to buy Vi
to ITO million pounds of the cop
per at % cents a pound. The ney
facilities, however, will not be il
operation until October. 1854.
! DMPA agreed to advance $50.
1000 to the North Butte Mont.
Mining Co. for working capital
to be repaid through delivery 0
copper at 24.5 cents a pound,