The Iron Age 1944-01-06: Vol 153 Iss 1

reduce mainten- ipment and the DAY VICTORY ing equ durance, —ON THE BATTLEFIELDS ight increase American nce, EDING THE FACTORIES NUARY ormance, Timken Tapered Roller Bear machines that make 4 . > 100 | VAN DEVENTER Vice-President Generel IRON AGE Editorial and Advertising Offices 100 East 42nd St., New York Vol. 153, No. January 1944 Johnson, Market Research Baur, Typography and Regional Business Managers ROBERT FITZGERALD Consider the Ant Cleveland Pittsburgh 1016 Guardian Bidg. Park Bidg. Philadelphia Chicago PEIRCE LEWIS WARREN Detroit Hartford Conn. 7310 Woodward Ave. Box What Happened 1943 2420 Cheremoya Ave. 1943-1944 General Review Owned and Published Renegotiation Machine Tools 102 Metallurgy 108 Welding 114 Executive Offices Export 122 Chestnut and Sts., Philadelphia 39, Pa., President EVERIT TERHUNE Vice-President VAN DEVENTER Vice President News Front WILLIAM BARBER, Treasurer Assembly Line JOHN BLAIR MOFFETT, Secretary Washington 132 CHASE THOMAS KANE Member, Audit Bureau Circulations | News and Markets Member, Associated Business Papers Latest Lists Seized Patents 154 Pumping Started Steep Rock 188 Omnibus Termination Bill Proposed 190 Galvanized Sheet Future Contested 194 Speedily Designed Carbine Made 196 Output Steel Exceeds Axis 198 Preparation for Termination Suggested 198 North America, South America and Possessions, $8; Foreign, year. Single Copy, cents. ° ° ° Index Advertisers 327 Copyright, 1944, Chilton Company | a ‘4 4 4 = = AIR TRAVEL RAPS DUST Water metal working plants—in the glass, chemical and paint wherever DUST health and production—this modern dust control serving effectively and with economy. completely pneumatic system \UTOMATICALLY COLLECTS AND DEPOSITS WATER all forms harmful dust without the jets, pumps cloth screens. Having ving parts, other than the suction-exhaust fan, nothing wear get out order. Let Mahon ers show you—by actual facts and figures— and inexpensively this advanced dust control serving under conditions lent your as he” Write descriptive folder AIR Spray Ovens All Types, Filtered Supply = q 5 ACCELERATOR Manc News Reg! = bs | FOAM FOAM BED wal pottery ot A“ ary ot yhe m of ‘This ping! ped of 3 3 q IRON ESTABLISHED 1855 Jan. 1944 VAN DEVENTER President and Editor BAUR Vice-President and General Manager ° ° ° DIX Reader Service Managing News, Markets JAMES Associate Editors WINTERS MacDONALD BARMASEL Editorial Assistants SCHIEN WILLIAMS BUTTERS CAMPBELL Pittsburgh Park Bidg. Chicago 1134 Otis DONALD BROWNE EUGENE HARDY Washington National Press LLOYD Guardian BRAMS Detroit 7310 Woodward Ave. OSGOOD MURDOCK San Francisco 1355 Market Editorial Correspondents ROBERT Cincinnati PENLEY Buffalo FRAZAR Boston HUGH SHARP Milwaukee SANDERSON Toronto, Ont. RAYMOND KAY Los Angeles JOHN McCUNE Birmingham ROY Louis JAMES DOUGLAS Consider the Ant the ant, sluggard and consider her ways and learn wis- dom.” said Solomon, the son David, King Israel, his Book Proverbs, written some 3000 years ago. That was thousand years after the ants, masters organization since nearly the beginning time, learned the hard way that organi- zation itself cannot produce constructive results without the addition plus ingredient. The story goes follows: There were ants, course, the Garden Eden, together with all the other species animals, birds and insects. The ants differed from the others, however, being naturally fond work. while the lions and tigers, elephants and deer, scorpions and black widow spiders spent their days indulging peaceful contemplation versation, the ants hustled about looking for business. They didn’t have to, course, but they were made that way. Each ant, those days, went about pretty much his own. felt like building house did so. felt like harvesting crop grass leaves did so. felt like exploring the sur- rounding country did so. There was nothing for him fear for had enemies and all creatures were vegetarians. The picture changed, however, when Adam and Eve were evicted from the Garden and the premises were closed the public. Peace longer reigned earth and life for all became struggle for existence. The ants met the situation organization. They divided them- selves into groups, builders, foragers, housekeepers, agriculturists, soldiers, etc. They initiated specialization and perfected and this worked well for them for time. But eventually resulted building class consciousness between groups. The builders thought they were the most important because they made the houses, the foragers because they furnished the transportation, the agriculturists because they milked the ant cows, etc. there began struggle between groups for posi- tion that lasted until the coming the great war with the spiders. Ant armies were proverbially the best the world and they did fine job until the ants behind the lines, who were their suppliers, got quarreling among themselves, each group seeking more recognition. result this pulling and hauling home for selfish ends, the gallant ant soldiers were deprived support and nearly extermi- nated the spider army. Whereupon the chief the ant republic borrowed grasshopper’s antennae and made radio talk his people. Said he: “My friends, organization has its excellent points but may well our undoing unless add another ingredient cooperation.” And from that time the ants have cooperated beat the band and have multiplied and prospered. today could “consider her ways and learn wisdom!” Safety and Dependability With Inland Steel The buying public has learned associate steel with and dependability. People ride steel trains over steel rails, live and work structures made strong with steel, travel the highways steel automobiles, cross streams bridges steel, farm and manufacture with steel equipment, use steel furniture and innumerable household all with the knowledge that these things, made steel, cost are more durable—have greater strength and safety. Steel affords strength without excessive volume and quickly recovers from strain, and resilient under shock. Steel reduces fire hazard the minimum, and practically unaffected conditions. Steel normally resists corrosion and can easily more fully protected against such action. Steel absorbs neither moisture nor odors. Inland has been leader the development steels meet changing industrial requirements— has continuously cooperated with industry make available various phys- ical properties and surface textures that give steel its un- surpassed flexibility product design and fabrication. The Inland laboratories and the Inland staff engineers and metallurgists are your service help you meet the design problems today and the post-war period. will glad help you any material selection fabricating problems. Dearborn St. Chicago Illinois Milwaukee Detroit St. Paul St. Louis Kansas City Cincinnati New York | j 3 S | SS } ~~ | - INLAND STEEL COMPANY York News Walter Reuther, UAW leader and author the 1940 Reuther Plan, has formu- lated new program for reconversion peacetime production. Reuther proposes Peace Production Board with full powers over allocation materials, manpower and tooling. Allocations would granted "social priorities" under which the most urgent civilian needs would receive top preference. Recommending 30-hr. week, Reuther says that hr. present production equals hr. years ago. Pay for the hr., course, would equal the Extension the wartime patent pooling system also proposed. Plan recommends setting central research agency the government coordinate all research work patents and technology. sizable nickel property Brazil (Livramento, Minasgeraes), owned Cia} Nickel Brazil, has been acquired the American Smelting Refining Co. commercial plant will erected the property 1944. The Allied advance Italy captured completely equipped engine factory (including foundry, work shops, offices, etc.) concealed four huge bomb-proof grottoes Naples. The plant had turned out large numbers 12- cylinder Benz motors. Another grotto near Naples contained the main repair the chief technical headquarters the Italian Air Force. Castings and forgings England are being tested sonically. The equipment consists microphone, which picks the vibrations when the casting forging struck with hammer; amplifier, which magnifies the sound; and filters, which suppress harmonic frequencies. Base frequency defective casting differs from that perfect specimen. The nation's basic mineral resources are being rapidly depleted while new deposits equal grade magnitude have been discovered replace dwindling ore reserves. Probably more than lb. copper recovered best for each ton ore mined. Average about lb. per ton. Although applications for domestic copper premium payments were longer accepted after Dec. contracts for zinc, lead and copper from Latin America run for two years after the war. Anticipated magnesium capacity 700,000,000 annually has not been realized. The size the magnesium stockpile probably more than few weeks' supply. During March, Canada's Dominion Magnesium Co., Ltd., produced average Ninety-four per cent magnesium production facilities are government DPC plans after the war shut down high cost plants divert them other uses. addition galvanizing and brass for construction, the zinc industry looking forward postwar surge zinc alloy die castings. little more than years die castings developed from minor outlet market for 125,000 tons special high grade zinc. Domestic production copper threatens decline 1944 because labor shortages. The favorable shipping situation, however, will permit greater imports. Decline demand for molybdenum springs following reduction requests. Normally getting 2,000,000 lb. quarter, the United Kingdom asked 500,000 lb. for the fourth quarter. Overall use molybdenum for the year, which amounted 52,400,000 ran 10,000,000 1b. below projected production figures. Total renegotiation cases completed during 1943 totaled more than 17,000. War Department estimates that all cases for 1943 will number 25,000. Pace handling cases increased toward end the year and remainder will completed early 1944. phal story has that the late George Baker and some ten golfing companions tee off Tuxedo Park, one onlooker said another, “Do you realize that those men getting ready drive rep- resent over $40,000,000?” Then, Mr. Baker drove off and stepped from the tee, the onlooker observed, “And now, the group represents $18,000.” Apocryphal not, the story pretty aptly portrays the state business to- day. The government driving off and, with something akin masochistic fascination, nearly from Jesse Jones perhaps even Mike, the neighborhood garbage man, watch- ing that first tentative step from the tee the hazards particularly tough course. retrospect, even though Government’s spastic approach the tee 1942 may have had its weird overtones. only those with the most shallow factual underpinning can deny that the industrial follow- through was powerful. smooth and sure, the past year’s indus- trial performance was one waver- ing violently between the extremes malnutrition and satiety. The virtual gram, drastic cut-backs ammunition requirements, and the killing off enervating submarine campaign, each lifted sizable load from the produc- tive structure. But, even so, the flood the products war was such warm the heart the most ardent admirer American industrial effi- ciency. All this, and with the civilians engaged record buying spree, and never approaching within radar dis- tance the “foothills severe pri- vation” that Mr. Nelson and many others grimly and frequently Now, while always little pre- sumptuous build arches be- fore the last battle won, particu- larly with whole inter-related series labor disputes threatening, all evi- dence has that the purely industrial 64—THE IRON AGE, January 1944 phase World War has either hit plateau actually beyond that onto the declivity. course, machine tools many months ago passed through their peak, and today all the common metals, with the possible exception nickel and copper, have passed out the critical classification. fact, many producers certain metals and metal products are not little concerned with the size their stocks and the rapidity with which additional accu- mulations are being made, well they might be, what with inventories many instances worth more than the companies involved. And, even manpower, some the strain dis- appearing and there declining tendency hire body just long still warm. not too unlikely that 1944 there actually might annoying (sic!) labor less the whole industrial tempo vilian production than now antici- pated. The sunshine industrial fruition has tended soften considerably the mistakes tooling up—mistakes not really very deplorable view the complexity and urgency the job done. Shortage zealots, general, have beards searching for more promis- What even more frustrating, ing fields for exploitation. litical cliques are receiving more and more evasive answers ideas for the location marginal downright productive fa- cilities, and are consequently begin- ning turn their attention rather obviously spurious protective schemes for facilities now operation that may soon have search for markets against the first faint stirrings fierce competition. Probably not even the most cynical fully realize the in- numerable distortions woven into the industrial fabric enormous sums government money and the gush war orders, two props either now slowly wilting destined for sudden collapse Wash- ° ° ° LIPPERT ° ° ° ington goes through inevitable but probably short-lived phase parsi- mony. Meanwhile, the past six months have been favored with the flower- ing whole new cult commandos, with certainly many representatives industry gov- ernment, who plot rather precise return pre-war normalcy with al- most the exactitude differential and with sublime confidence that indeed quite warming. Cer- tainly sane person could possibly quibble with the end result desired, whether return even 1938 or, better 1937 above all, not 1932 abnormality. But the very lushness the parade plans and the very ostentatiousness the publicity involved may some Freudian subconscious recog- nition the imponderables Gov- ernment’s economic and political poli- cies, the citizen’s attitude toward tax- ation spending, international trade decisions, all the doubts best re- flected Shakespeare the lines, “Oft expectation fails, and most oft there where most promises.” Or, perhaps, all this unduly pessi- mistic. any case, the writer could function somewhat devil’s advo- ‘ate examine unpleasant possibili- ties, albeit unpopular. Certainly would seem that three years more the most costly war history has possibilities really wrenching believe that the return healthy industry, prosperous and happy people, can achieved solely few simple easy-to-take pills, whether they range the extremes the elab- orate complexities currency shen- anigans exemplified by, say, Stuart Chase’s “compensatory” economy, | | | | = | | | With welter superficial post-war planning slanted favor some industrial ideological group area assuming the proportions national escapism, perhaps little more atten- tion should afforded the issues hand rather than the tooling-up for something cosmic the future. There are lot bleak problems that would better sweated out before extrapolating war-inflated production millennium demand the good life pictured the sleeker magazines. the power abstinence. the writer, all the industrial, social, political, eco- nomie and psychological factors in- volved adjusting industry and indi- viduals back peace economy, cross and intermingle such degree daze the sight, and some in- stances cut across many emotions propound very complicated prob- lems for solution. And, industry, labor, politician, and Citizen, vox pop, the average American that cartoonists always picture getting the neck, don’t thread this maze with some degree sensitive and in- telligent sacrifice, they may well fall prey the blandishments tivists either the left right— those elite-ins who have such facile answers any and all difficulties. Whether readjustment and func- tioning the post-war economy covered the plan earnest busi- ness man, tinkering with some new improved product, painted with broad strokes world-wide canvas theorist, there considerable threads thought common them all. These are: (1) That Germany will defeated this fall and that Japan will fold perhaps year later. (2) That, following, even some- what anticipating, Germany’s defeat there will rush return pro- duction civilian goods, war out- put drastically cut back re- placement schedule barely balancing the requirements the cam- paign. (3) That, soon large blocks industry return civilian production thereby absorbing the millions orderly demobilized soldiers, there also will available frenetic market starved for luxuries and necessities and flush with savings and readily cashable war bonds that can serve base for phenomenal pyramid installment buying. (4) That, the war debt can ser- viced over very long period and therefore more annoyance than burden. And, even perhaps pushed around enough will, like quicksilver, slither down through the cracks the economic structure and quietly disappear. (5) That, the will become great exporting nation, dominant’ the new air transport routes lacing the world, also the greatest maritime power all time. All these facilities will afford convenient channels for re- leasing troublesome capital goods and even consumer goods surpluses all the war-torn countries the world. (6) That, under the impetus new inventions and super-vitalized, war- bred technology (technology being the one and only thing ever improved war!), capital and consumer goods industries will flourish for years after which there will de- EXPORT conspicuous many post-war plan. But, while the experts currency ferences team imports with exports? THE IRON AGE, 1944—65 “3 to ab- art j SENATOR PAT McCARRAN many another, his recipe for the financial and industrial future the pernicious economics narrow self interest. Armed with the plenary powers 190, intends recentralize industry. cline and breathing spell take the slack some deferred readjust- ments. (7) That employment must and will kept extremely high level government interfering with business, and that the full flowering free enterprise can well meet the demands imposed. The seven steps the return normalcy are orderly, say the least. Few pitfalls are recognized and every- decade prosperous, happy, loved the whole world, with standard living infinitely superior make the present appear stuffy, static and unimaginative. just doubly sure, perhaps each the seven steps could examined detail. (1) That Germany will defeated this fall, and that year later will see the finish Japan, all seems rather likely. the headlines pro- claim, even conservative military men are now going record for both the timing and the end result. But the very the imme- ceases severe casualties 66—THE IRON AGE, January 1944 diate offing may well bring the country with jolt and create for the first time definite real awareness the sacrifices the front that deserve better home than promise dis- missal pay bonus. (2) severe drop war production may, however, not follow Germany’s defeat, but could easily well devel- oped long before that time. For some industries, the post-war period may actually right now, not the future, and Baruch just recently cau- tiously intimated much. (He has also said that country war should order its national life admit other thought.) The great supplies metals avail- able for other than war use, the very great possibility that there will sec- tional surpluses manpower very soon, and the spate activity the part the Office Civilian Require- ments are all sign-posts leading greater and greater attention filling the pipe-lines civilian consump- tion. Perhaps all this will spurt along pace considerably faster than anticipated; fact, just barely 1943 possible that when the first great waves demobilization occur there will already have been made this country large quantities civilian goods which will have taken the edge off the civilian market just time when from manpower stand- point might desirable have the biggest possible backlog or- ders. contract cut-backs occur vari- ous localities every effort will ex- erted labor and business organ- izations these areas maintain peak production. rudimentary ten- dency this direction already has been evidenced. The natural result all this will increasing effort the part the War Production Board through its division civilian supply O.K. production various types and quantities civilian goods. first, the excuse will given that these goods are absolutely essential the maintenance bedrock civilian economy, but later may become all too obvious that rather than the maintenance bedrock economy the operation will one bowing pressure groups maintenance employment. Many these goods are liable made groups war workers, including large blocks women working war inflated wages. Through the country there may thus develop numerous anomalies. one hand women will enticed from hearth and family work war plants; men will re- moved from war jobs Army induc- tion, and large blocks workers will turning out civilian goods which way can considered essential the prosecution the war. Add this the shearing across com- petitive interests, and the obvious un- fairnesses and inequalities sacrifice individuals and industry groups, brew that could well make what blandly called the “unwinding proc- ess” something that could wreck many beautiful friendship. (3) that moot third point, the all-important expectation that industry will automatically fall heir magnificently conditioned sellers’ market, everyone cashes savings and war bonds replace all the worn-out luxuries and necessities demanded modern living. This writer cannot quite all-out this practically all his contempo- | | | | | | | | H | | | | | | ? | ] | | | | | | | 4 ans — or raries. fact, very many refer this phase the return nor- maley the coming post-war boom, particularly unfortunate choice what with its connotation There have been number sur- veys made the Gallup type which indicate what many millions people intend purchase the way enormous numbers automobiles, refrigerators, stoves, vision sets, helicopters, air-condition- ing, infinitum, satisfy all the frustrated desires transportation and luxury. This type market survey ground through the statistical mill and translated into demands for raw materials and labor. There are literally thousands post- war committees working various industrial companies which have mapped out elaborate charts showing how all this seep down into the individual companies support various rather rosy rates operation. might also men- tioned that while many companies talk freely new post-war products, very few are actually doing much more than give the idea lip service. Now, the writer’s survey strictly the men’s washroom type rather than Gallup precision. But, here again, very possible that the buy- ing pattern may not explosive insistent many envisage, al- though undoubtedly there will period release pent-up demand supported flood easy dollars. fact, this dangerous period the transition and too widespread liquidation wartime savings, tem- porarily invigorating might industry, could well jeopardize the entire economy and enmesh business and individuals deflationary spiral leading whole new futile series government, social and mon- etary The average citizen, while unfa- miliar with all the nuances involved, still carries the psychological devastation the de- pression and more unnerved about post-war conditions and perhaps more guards than generally recognized. cern regarding the war. This not only applies civilians but applies sears EUGENE GRACE Boss Bethlehem Steel $2,000,000,000 war goods produced 1943. Per- sonal remuneration 1943 after going through the tax mill, $42,546; 1942, $90,527; 1941, $163,000. soldiers, and while relatively few in- stances not prove the whole, there are certainly many soldiers who are saving money and general prepar- ing best they can for what may difficult period before they can re-orient themselves into the civilian framework. And, while these soldiers are returning and trying readjust themselves into the civilian pattern, and while every hand many are losing war jobs statistically re- absorbed into civilian industries, the psychological conditioning will such thrift entree into the market- place. The over-all civilian economy has way been driven down into desperate level. Automobiles can stretched out extremely long life minimum usage; refrigerators can tinkered with and kept opera- tion, and all that multitude usual consumer goods may not find every- one beating out other’s brains trying get the first ones pop off the assembly line. Furthermore, for (4), al- ways pleasant dream all those innumerable trick extensions pay ment war debts and all those very flossy economic aberrations such “the debt and therefore burden,” perhaps “some little inflation can permitted and everything sort wiped out owed ourselves rather painless fashion,” goods were paid for manpower when they were produced and even though they were destroyed there actually debt involved,” “the war debt can stretched out long period years and thus be- come great burden.” But dreams are illusive beyond all dreams lies reality. one has satisfactorily explained how all the war bonds are without (a) simultaneous increase taxes cover their pay- ment, (b) further loading still more long-term bonds onto already overloaded banks. Add the $6,000,- 000,000 needed service war debt over $250,000,000,00; continue add that debt with some 000,000,000 dismissal armed forces; and add that untold figments and cashed THE IRON AGE, January pay for the ) | | UNEMPLOYMENT not luxury vigorous nation can afford. The psychological shattering individuals and the nation 1932 need not recur unless realistic action reduced the status bit player the stage readjustment. billions for inevitable pensions; and add that spate billions take miscellaneous pump priming and subsidies for the various pressure groups even now their campaigns attack. Pre-war British cated that national debt about twice annual national income can borne without too much difficulty. this basis post-war national income when national income passed $13 pre-war income equalled $65 $80,000,000,000) can manage debt $300,000,000,000 (Federal State local). The figures however all rattle around that zone wherein lies the final sensitive crack- ing point from which there remains only rapid slide national bank- ruptey and debt repudiation. Certainly this outlook cannot viewed the author with quite the frigid tranquil- lity Wall Street’s Edward Barnes, who points out that “not be- fore 1949-50 the earliest the troublesome economic, fiscal, busi- ness predicament force deliberate 68—THE IRON AGE, January recourse some form currency de- basement.” Sometime, somewhere, last bucket thrown into the Trea- sury only thump the bottom, the whole national consciousness must ac- cept the fact that debts must paid, that debt payment always unpleas- ant, and the only way pay severe taxation. And, the sooner the better. Furthermore, business, labor groups and the very least citizen must participate the repayment. Meanwhile the errors omission regards taxation policy over the past several years have been such magnitude that continued much longer they will completely erode the whole core the country’s economy. With the greatest quantity money the country’s history jingling pockets, bulking bank accounts and flooding the market places, tax policy has been unbelievably flaccid and tax load relatively moderate. While both Executive and Congress must share the bulk the for this rank dereliction responsibility, even the least citizen minutely involved, fight hard, all-out war has been quite firmly entrenched his brave words that end would indicate. While the details taxation tech nique are such baffle even the deal common sense the conten- tion industry spokesmen that through the easing corporate tax structures can free play given the risk capital that has long been repressed and which will essential tion all the new technologies avail- able after the war. Unfortunately, every time industry spokesmen plump for such easing, the words are rammed back down their throats labor and political spokesmen just one more indication that industry attempt- ing squeeze one more good thing out the war. Now the Treasury proposing increasing corporate taxes even further, rather than shift some the tax load from corporate income individual income, whether the lat- ter dividends pay. All this despite the fact that the real function corporate income kept the busi- ness finance more goods and more jobs, and after performing its func- tion there can subsequently through the tax wringer when released individuals dividends. The disinclination the State recognize the serious deterrents in- dustrial activity inherent certain taxing practices, bodes ill for more widespread and dramatic alterations taxation policies that could perhaps give really worth-while fillip post- war private enterprise. The British. for instance, are giving serious con- sideration number tax renova- tions apparent merit. Sums needed for maintaining intact the existing productive power business would free all tax; depreciation allow- ances would raised and the defini- profits put into financial reserves would taxed, although the reserves back” would taxed something below the standard rate, and the rate may vary according trade cycles; and, businesses might asked form special reserves called “extension such profits being taxed rates lower than those available for distribution, and when q 4 | | | ‘ | | | | | | q | | Bi Bui q tax may even lower and re- tes made all sums brought out the extension account and spent proved purposes. Certain phases ‘se possibilities involve undesirable croachment Government the business, but this country has already wriggled etty far. Policies and actions bearing ex- port and foreign trade (5) will have alth the country and turn virility private free enter- generally agreed that con- tions have altered somewhat since 76, when the Pennsylvania Journal iid, “America’s situation remote the wrangling world, and she nothing but trade with The question foreign trade breaks into the nearby phase and the long-term phase. The latter bound making now the formative stage. There justification, however, holding out hope that international exchange stabilization, tariff adjust- and quota elimination will orrelated sufficiently realistic ind unselfish basis stimulate the nternational flow goods such extent bolster the economy nations. This country’s participa- way one top-lofty sentimentality gush cash, nor can one hogging the works the velief that this country, not Germany, the real home the Herrenvolk. all these decisions and plans may, the end the whole question export labor and materials the form goods and services has and services return. For the with its great stock gold credit position, this will particularly drastic altera- ‘ions policy and psychology. Several factors involved the im- export situation are directly related the pattern industrial re- onversion peace the Some sans political overtones, long overdue regarding the innumer- Lend-Lease. While there can possible justi- activities which further fa- ilitate the war effort, there great LABOR Has its post-war plans also, and they are just self-centered any that business might have. Despite irresponsible actions minorities, labor and management together turned 1943 production performance that warrants accolade for both. deal secondary evidence that very large quantities products, both the consumer and capital goods types, are going Australia, New Zealand, Russia and other countries which are being laid for use after the war And, while Lend-Lease considers the quantities tanks, airplanes and guns shipped other countries longer military secret, there has been remarkable resistance flush- ing out figures consumer goods and products not military nature. And, there are orders for productive facilities even now passing through the hands Lend-Lease which cannot shipped and put into operation fore the end. Through export channels means will likely found relieve Amer- ican industry the tremendous load capital goods, automotive equipment and certain types sumer goods that are such magni- tude obviously threaten healthy return peace-time production. In- dustrial equipment producers fur- naces, cranes, rolling mills, fabricat- ing machinery, ete., etc.—and the ma- tool industry particularly are faced with the existence stocks and facilities that could well support the next decade general industrial activity. And, while inventive ingenu ity can render existing equipment chine solescent, the inertia such large quantities promises best squeezing the equipment down through various levels the indus trial framework and finally onto either the scrap heap into secondary port channels. Meanwhile, the cre- ators the equipment are deflated threaten the pace the entire industrial effort, integrated and inter- related intimately they are with all industries. The imperativeness lifting this burden and the certainty many European nations starved for such equipment after the war complement each other, that abroad came recognized prac tically everyone about the same time. The idea certainly has far more merit than half formulated THE IRON January or nis si- | go | | to | in- yre sh, led ing uld ed; ves ves at ate, ght ves on, | | ens concealed stuff burned, for God’s sake gotten rid somehow. But, give the equipment away, even disguised some impossible form Government private credit, would merely multiplication the follies following the last war. There’s too much wealth involved, and much the payment for the equip- ment yet sucked out each individual, expect popular accept- ance the action irrespective what Rather than the repudiation inter- national obligations that were in- evitable the late twenties, product repayment would preferable even one could least have the wry satis- faction beautiful hangover. what get return? should something immediate that wouldn’t interfere with future export activities. Here, again, the serious inroads into material reserves and the slick- ing off the cream high-grade metallic brought many simultaneously about the same con- clusion—the reserve opinions creation semi-critical minerals, and much lesser extent ages which have impeded the prosecution this war. Definite dec- larations Act this end would have limit the size such im- pounded stocks, would have confine its liquidation obvious military emergency distinguished from some economic disturbance, and would have propound elaborate safeguards protect the Act from being hugged collapse the innumerable pressure groups which would deavor use catch-all for all types over-production marginal output. strategic could argued that such crea- tion military reserve would the faith other nations America’s spirit high endeavor leading the world the peaceful world come. And, could also argued that such action costly. But, one the opinion that military equipment will liquidated with the careless abandon following the last war, and the costs involved the im- pounding such stocks would only fraction that represented mili- tary equipment. High endeavor may, and future emergency remote now one in- volved the war production effort can take other than gloomy view repetition the confusions, close squeaks and dangers that threatened this nation’s very existence the six months following Pearl Harbor. opinion the contrary equivalent distrust life insur- ance accelerator death. While acceptance the scheme stock accumulation may imply recog- proposal Nevada’s Senator James Scrugham, there are very all-im- portant differences from the bill 1160, which hearings have already taken place. The honorable Scrugham, seems, being from Nevada, quite expressly excludes iron ore, coal petroleum from the provisions Act, and with typical high-minde statesmanship drags economic curity for small and marginal mine: That is, mines which the smallnes and low tenor their ores, able geographical position, som other controlling characteristic, unable profit established prices, and require the crutch finan cial subsidy prerequisite oper ation. Stock accumulation conceived others seeks avoid these regional log rolling, and envisages support uneconomic operations periods long after the war. Rather, sessed excess for something that contributes the long-term wealth the nation. the same time the in- (Continued page 194) Record Performance Detail tableau steel 1943 was one coming into the year shifts and expedients cram the last wad steel into each multitude armament pipelines and accom- modate urgent larger over-all demands. the pace war shifted and veered, was one program compressed another accel- erated. All these tricky patterns demand would indeed have been overwhelming frustration the in- dustry the labyrinthine ways pri- ority control had not given way the second quarter the flexibility and elastic-exactness characteristic the Controlled Materials Plan. year’s end, December found the steel supply picture one sufficiency. Perhaps not elegant sufficiency, but still fully enough meet any and all the varied ordnance requirements, the drain history’s greatest Naval con- struction program, and even the seem- ingly insatiable requests Admirals Vickery and Land over the Mari- time Commission. And there was just enough steel left over really whet the appetite manufacturers champ- ing the bit initiate limited pro- duction civilian products. Very early 1943, about the end the first quarter, became obvious that production facilities were com- step pletely fulfilling the TABLE Production Iron and Steel, Product (1929, 1935-1943) (In Net Tons and Per Cent Total) Bars (Hot Rolled, Wire Rails, Plates Finished, Tool Pipe and and Wire Tin, Terne (Universal Sheets Steel, Tubes, Skelp and Black Ties, All Total and Sheared) and Strip Shapes and Alloy) and Billets Wire Rods Plate Splice Plates Year Total Total Total Total Tons Total Tons Net Tons 1929 5,624,798 12.2 8,688,726 11.6 18.1 5,487,339 11.9 3,510,538 7.6 4,389,938 2,212,435 45,997,746 1936 2,829,950 7.5 11,447,319 30.2 3,245,346 8.6 6,822,492 18.0 11.2 8.9 7.8 2,053,851 37,857,544 1937 3,632,438 8.8 29.2 3,670,068 6,755,012 16.4 11.4 8.2 3,308,576 5.6 1,391,732 41,178,356 1938 1,919,835 8.1 6,948,749 29.5 2,082,685 8.8 14.8 12.2 2,361,630 10.0 9.3 993,684 23,568,591 1939. 3,101,981 30.4 3,358,985 15.7 4,348,630 11.1 3,680,297 9.4 5.1 1,117,384 39,067,553 1941 16,142,759 25.9 17.6 6,583,495 10.6 4,818,922 7.7 2,961,999 4.8 3,646,080 62,324,187 18.8 11,248,392 18.1 9.6 19.2 9.5 7.4 5.7 4,306,646 62,445,914 1943 12,750,000 19.9 5.8 18.7 9.1 4,385,000 6.8 2,324,000 5.0 8,986,000 64,152,000 NOTE: IRON AGE, January 1944 Data for 1929, 1935-1942 from 1943 figures are estimated the author. ‘otal year’s distribution pattern laid down WPB. the same time was equally obvious that completion new capacity was going require bucketful digitalis snap back even approximation the original construction schedule. And, coun- terpoint this discordant symphony, the Army and Navy and sundry (as, for instance, Texan) politicians were marshalling every conceivable force mount construction still another 10,000,000 tons new capacity. What do! For month WPB wallowed around abyss indecision, trying reconcile ir- finally arrive the opinion that the goal was based fundamentally perverted analyses— that requirements overlapped, were bloated beyond all reason cluded huge gobs steel for shoe- horning into inventory pipelines that were already stuffed. Then, the insistent prodding Batcheller, the various agencies squeezed the wa- ter out their requests, action suddenly facilitated virtual col- apse the $1,000,000,000 tank pro- gram, realization the enormous quirements, and relief occasioned licking the submarine menace. The military pulled their horns, the pork-sniffing politicians were held bay, and total steel demands were brought within several million tons expected output. The next steps were whip pro- into squeezing additional out- put out existing capacity and institute paring inventories all along the line—the latter “Share the Steel” program was part voluntary and part forced WPB represen- tatives touring the country probing into plant warehouses. With the several million tons deficiency be- tween supply and firm demands pretty well taken care through the output spurt and putting the bite inven- tories, the entire armament program was worried over the fourth-quarter hump without recourse acceleration construction new capacity. Thus was the country spared futile construction spree untold millions dollars. Certainly, the re-balancing the consumption budget rather than forcing one block after another new capacity required considerable courage and foresight, for subsequent events in- dicated that, completed, the bulk the economically marginal productive facilities would have been called upon for little more than token operation. year’s end, least per cent electric furnace capacity several new DPC blast furnaces were not even blown in, least one eastern ore mine was not operating due labor shortage, and large in- tegrated developments Texas and Utah were being carried com- pletion more gesture than be- cause dependence their output. That somewhat weird program had been laid down for the steel in- dustry 1943, there denying. After all-time record downlake movement 92,000,000 gross tons iron ore 1942 (goal 91,500,000 tons) new and larger goal 104,- 000,000 tons was set for the 1943 shipping season. Expansion the ore boat fleet and completion the deeper General MacArthur locks Sault Ste. Marie were all directed moving this phenomenal amount ore the months between thaw late opening the ice pack was TABLE initial set-back the program, but constant pressure resulted progres- sive recovery during the season. the boats “Olcott” and “Gov. Miller” docked Lorain Dec. just one jump ahead the freeze-up, total 84,404,852 tons had been brought down during the season and some 48,- 500,000 tons were stocked lower lake docks and the furnaces, fully sufficient carry the steel industry through the winter months into the 1944 shipping season. Coke supply was set 61,768,000 net tons, whereas actual output skimped through 56,000,000 tons, goodly portion the deficiency, the result scattered slowdowns and formal work stoppages anthracite and bituminous mines May, twice June, and October, for total loss 5,520,000 man-days output. was coke that the steel industry really ranged close disaster, and, today, the stock situation scanty constitute ever-present threat full operation. the other hand, scrap, which 1942 was but frail support the whole production struc- ture, was 1943 problem all. fact large quantities alloy scrap were actually glutting the market, seeking homes even price dif- ferential. But melters had had their stomachs full production delays and defining problems engendered unsegregated alloy scrap and were loathe utilize such beyond the amounts WPB until grim necessity left option. Scrap spokesmen are urging Metals Reserve absorb the present alloy scrap sur- plus, and plans are afoot permit certain S.A.E. numbers used the blast furnace and the open hearth where the alloy content would harm. The steel industry’s bogey for purchased scrap 1943 was 14,386,- 000 net tons, whereas actual ments during the year bettered that Steel Distribution Consuming Industries (1937 1943) (In Net Tons and Per Cent Total) 1937 1938 1939 1940 1941 1942 1943 Construction 6,037,920 14.7 4,398,240 18.7 6,100,386 10,221,167 16.4 6,639,509 10.3 3,218,880 7.8 9.1 2,978,463 7.6 3,067,517 6.3 7.4 4,070,824 6.4 4,301,134 6.7 Furniture, furnishings. 1,494,080 3.6 3.7 1,182,235 3.0 (b) (b) (b) (b) Machinery, 4.4 831,040 3.5 1,460,000 2,330,365 4.8 5.4 2,852,077 4.6 Oil, gas, water, mining. 3,034,080 7.4 1,841,599 4.7 1,900, 286 3.9 2,929,237 4.7 1,585, 969 2.5 3.0 Pressing, form., stamp. (c) 864 2,296,355 4.7 3,677,127 5.9 2,782,752 4.4 4.4 4,686,080 11.4 1,443,680 6.1 8.3 4,019,219 8.3 9.6 4,400,444 7.1 8.1 Shipbuilding 390,880 0.9 1.7 517,771 1.3 2.1 2,929,237 16.6 13,318,107 20.7 10.2 2,817,482 7.2 8,719,805 10,800,000 17.3 8,850,116 13.8 All 4,095,810 17.4 10,932,676 28.2 17.8 10,470,462 16.8 12,932,072 20.2 NOTE: Distribution 1937 1938 Worthing, based data from The Iron Age; 1939 1942 from The Iron Age, various Government reports, and estimates, with jobber tonnage distributed and other alterations made the author according the technique devised Worthing; 1943 data are estimates the author. THE IRON AGE, January S¢ es O1 mi ket an b) | o! n for hat in- the acy. but all the em- rals ari- just vhet mp- pro- end the Tons 997,746 840,298 178,356 568,591 067,553 660,369 324,187 445,914 (a) Negligible, not available and included All Other. (b) Included Pressing, Forming, Stamping. (c) Included partly under Furniture and Furnishings and partly under All Other. PRODUCTION, PRODUCTION, PRODUCTION, 62,324,187 62,445.914 64,152,000 TONS TONS TONS SHEET AND STRIP 18.1 SHEET AND STRIP 17.0% TIN PLATE 5.1 ALL OTHER 10.6 Shift product participation total steel consumed during 1943, compared with 1942 and Note that the past year showed none the spectacular shifts product production typical 1942, the only sharp change being the decline shapes reflection constriction construction. Pressure plates continued accommodate the Maritime Program, but all other products lost ground percentage-wise but not necessarily tonnage. See chart above and Table for details. Red indicates percentage decrease and black represents increase. (included tained detinning cans, 600,000 tons recovered from slag and some 5,700,000 tons developed through sal- vage farm tions, figure drives, The plan was have blast furnaces deliver some 68,579,000 net tons pig iron during the year, whereas actual 1943 production was about 63,700,000 tons. And, the industry uled turn out 97,115,000 net tons steel ingots all types 1943, whereas actual output for the twelve- Thus, 1943 pig iron production 63,- 700,000 tons represented increase 5.9 per cent over total 1942 output. Ingot production 89,100,000 tons was 3.6 per cent lift over 1942 activity. the 89,100,000 ingot tons turned out 1943, about 78,686,211 tons came from the open hearth, the average yearly operating rate being 98.3 per cent capacity; 5,755,629 Was 72—THE IRON AGE, January 1944 tons came from bessemers, the yearly operating rate being 91.2 per cent capacity; and 4,659,169 tons was elec- tric steel, the operating rate being 97.8 per cent capacity. According the original plan, the 97,115,000 tons ingots were converted into about 69,340,000 tons products 71.3 per cent conversion factor), distributed approxi- mately the following manner (in net tons): Semi-finished (for shipment) 8,400,000 Structural shapes 4,500,000 Plates Rails 2,200,000 Bars 12,000,000 Pipe and tubes 5,160,000 Rod and wire 4,440,000 Tin and terne plate 3,000,000 Sheet and strip 10,800,000 3,240,000 Total 69,340,000 But against these estimates, the actual output 89,100,000 tons ingots were converted into 000 tons semi-finished and finished products distributed the following manner: Semi-finished (for shipment) 5,781,000 Structural shapes 3,758,000 Plates 12,750,000 Rails 3,184,000 Bars 12,005,000 Pipe and tubes Rod and wire 4,385,000 Tin and terne plate 2,324,000 Sheet and strip 10,899,000 All other 3,205,000 Total 64,152,000 The most significant difference be- tween intention and performance was the considerable drop semi-finished steel shipments, the result sizable decline export demands. Rather than ship much steel for conversion abroad, primarily England and small extent Russia, facili- ties the were loaded more than originally projected. Export, which the previous year 1942 took per cent steel output, large quantities being such ingots and billets, 1948 dropped per cent output, with finished represented proportionally greater quantities. duction, both tonnage centage total, are shown Table for the years 1929 and 1935 inclusive. Significant changes percentage distribution the various products for the past three years are pictorially the graph this page. Note that drastic changes were made most products, particularly sheet and strip, 1942 accom- modate great spurt plate output. however, shifts the dis- tribution pattern were minor and, general, continued the pattern laid down the previous year. Table shows details steel dis- tribution industry groups for the years 1937 inclusive. And, the chart the op- posite page indicates visually the changes percentage distribution steel output among consuming groups for the past three years. Here again, 1942, some really terrific bites were taken out automotive consumption | SHEET AND 25.9% BARS BARS PLATES PLATES SHAPES SHAPES 7.6 TIN Di ATE TIN PLATE | 6.8% PIPE PIPE 10.6 ALL OTHER | | Bu and lesser degree all other accommodate spectacular increases shipments the ship- building industry and export. 1943, the chart shows considerable whittling down construction and export outlets, accommodate con- tinued sizable expansion shipbuild- ing and minor recoveries most other classifications. the 89,100,000 tons ingots produced 1943, very close 13,- 500,000 tons were alloy grades and the remainder, 75,600,000 tons, were carbon analyses. Only six years ago, 1938, the 1,654,000 tons alloy produced represented about per cent the total steel output. comparison, 1943 alloy steels were turned out nearly nine times the 1938 tonnage, accounting for 15.2 per cent total steel produced. Even so, this striking 1948 alloy perform- ance was not prominent had been anticipated early the year. With tank program full swing and shell and bullet core deliveries sw