The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1952-07-31
Toduy's
Business
Mirror
~ SAM DAWsEoN

NEW YORK R - The scramble
for steel is on despite government
plans to parcel it out among users.
Fears that ALLEGATION may force
further plant shutdowns in the next
few months we're widespread. Lay
offs won't end with the strike.
Defense plants are to have top
priority on steel Then comes the
scramble among the many defense
supporting industries.
The steel industry has a plan,
approved by the government, to
allocate the metal but many users
are bound to be pinched more or
less seriously.
In the next six weeks all tinplate
made is to be of the type Gamers
use, so that the vegetable and fruit
crops won't be lost.
Auto makers are seeking steel
ingots they can have mills con-
vert into sheets for them. Detroit
fears that in an attempt to keep
all industries going at least in part
production, the government may
funnel too much of the first steel
production into the steel ware
houses-the source of steel for most
| of the small users. If so, Detroit
may have more layoffs from time
to time.
Shipbuilders are without priority
for steel for any but naval vessels.
They fear that a steel shortage
| in the weeks ahead viii keep them
from meeting the scheduled in
crease in the oil tanker fleet on
| time for the peak of the winter
fuel oil hauling season.
The oil industry says that a short
age Of steel pipe and casing means
! that 5000 wells planned for this
year won't be drilled. The defense
goal was for $4,000 new wells in
1852 to assure the nation Of suf-
ficient oil reserves in case of war.
Pressure to get more steel for
the wells, and more pipe for natur-
al gas distribution, will be strong
in the next few months.
The chemical industry, in the
midst of a GA billion dollar ex-
pansion program, says steel short
ages are already Gripping it. Some
construction will have to be
stopped for lack of steel, industry
Spokesman say.
The electric power industry says
ytaei shortages and ALLEGATIONS will
scuttle its expansion program for
this year, and may hinder its
reaching its goal for 1858. The
industry was trying to add more
capacity to meet the growing de-
Tense and industrial demands for
| power.
The railroads also worry about
delivery of the locomotives and
I~cars they have on order.
Ironically enough. they are faced
with a new demand for cars
brought on by the steel strike. The
steel mills will be calling on the
railroads to haul more iron ore
this fall and winter, and the roads
fear they can't find the necessary
cars,
Rail shipment of ore viii be
sought because no ore has been
shipped for eight weeks on the
Great Lakes because Of the strike,
and the winter stockpiles of ore
at the steel mills can't be built
up before ice closes the lakes.
But these large users of steel
are all tied in, directly or indi-
rectIy, with the defense program
and can hope for some priority aid.
The hapless factory will be the
one turning out purely civilian
goods. II its steel Inventories have
been exhausted in the last eight
| weeks, such a plant win have to
scramble hard to find the neces-
sary steel to prevent slowdowns
or layoffs.
| Steelmakers say il may take
them TO the end Of the year just
/ 10 catch up on the orders on their
| books for steel allotments previous
~ granted for delivery during July,
| August and September.
| For many steel users. ALLEGATIONS
/ they had hoped TO see filed IN
| October and November may just
| he n deferred hrua