U.S. PRODUCTION

Dominion, Volume 35, Issue 270, 13 August 1942, Page 5

U.S. PRODUCTION

Behind Schedule, But Catching Up

MATERIAL SHORTAGE

Complaint Against Steel Corporations

(By Telegraph.—Press Assn.—Copyright.) (Received August 12, 7 pun.) WASHINGTON, August 11. A spokesman of the War Production Board today said that plane production might not reach President Roosevelt’s goal of 60,000 this year, but it would be close. The flow of planes would reach 8000 a month by December. While shipbuilding was also behind schedule, the outlook was good for achieving the 1942 goals, and the same applied to tanks. x The threatened- shut-downs of war plants because of shortages in raw materials have reached a point at which the War Production Board is considering establishing a section to deal specifically with complaints. It is feared that at least 1000 plants might be idle. W.P.B. officials said that some of -the cessations are necessary for a balanced war production, and. instanced ammunition lines which might be abandoned in some cases to allow the copper to be used in other war products. Lack of fabricating facilities and excessive inventories were difficulties causing a slowing up. The officials instanced lack of rolling-mill capacity which had retarded the production of steel plates.

Lack of Propellers. The Glenn Martin Aircraft Corporation has curtailed production because propellers are not available; this is not due to a lack of aluminium but a lack of manufacturing facilities. Mr. Henry Landahi, a representative of the Pacific Amercan Steel and Iron Corporation, testified to the Senate Defence Committee that the Morgan interests’ United States Steel Corporation group is blocking the development of rich iron ore deposits on the West Coast by thwarting efforts to finance the development privately or through the Government,, because that would compete with its interests. That corporation had prevented the development of the steel industry in the northwest since 1909, Mr. Landahi said. He estimated that his company could produce 500,000 tons of steel a year. Senator O’Mahoney said that Mr. Landahi’s story showed how large monopolies had extended their control in the international field. He declared that deposits in Wyoming were undeveloped for similar reasons. Smaller Firms’ Complaint. The presidents of two small steel firms testified to the committee that the larger companies are forcing smaller concerns from business by refusing them raw steel. Mr. John Hosack, president of Mahoning Valley Steel, and Mr. A. M. Oppenheimer, president of Apollo Steel, said that their plants were operating respectively 78 and 65 per cent, of their capacity. They were working entirely on war orders, but Republic Steel and other big steel corporations which had been supplying them with raw steel for many years, now refused to make supplies. Both witnesses asserted that there was plenty of steel-finishing capacity' in the country, but its full utilization was prevented by the large' companies wishing to control the industry. At a Press conference Mr. Roosevelt wag asked many questions about the lagging war production, particularly about the threatened shut-down of 1000 war plants because of shortages of materials. The President replied that he would have to ask the Army and Navy Departments, and Mr. Donald Nelson, before authenticating the report of the possible closures. A reporter asked the President’s opinion about various wildcat strikes which were occurring almost daily, though opposed by the union officers. “Where?” Mr. Roosevelt asked. The reporter replied that there was one yesterday in a Pittsburg steel mill. Asked if he ha'd seen a statement by the War Labour Board that the treason laws might have to be invoked if jurisdictional strikes continued, Mr. Roosevelt asked for furtier particulars., Asked about a conference on stabilization of wages in aircraft plants, xvhich ha'd fizzled out, Mr. Roosevelt said he ha'd not heard anything of it.

Negotiations Cease. The president of the Congress of Industrial Organizations, Mr. Murray, has announced that negotiations between the United Steelworkers’ Union and five United States steel corporations have been broken off and the case referred to the War Labour Board. He said that the corporations’ statement said it was impossible to agree to all the provisions of the socalled little steel directives, involving increased pay of 44 cents a day, a minimum daily guarantee, union security and check off. The Twentieth Century Fund has released a survey of major United ■States industries, revealing that during the first five months of the New Deal trade union membership rose from 3,000,000 to 8,000,000, and has now reached an all-time high level of 11,000,000, However, despite the spectacular progress of collective bargaining in some industries, nearly 30,000,000 American wage-earners are not members of trade unions. The latter group includes financial workers, Government employees, agricultural workers, and wholesale and retail employees.