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BRANCH OFFICES
N e w Y o r %...110 E a s t 4 2n d S t . C h i c a g o...5 2 0 N o r t h M i c h i g a n A v e . P i t t s b u r g h...K o p p e r s B u i l d i n g
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L o n d o n...C a x t o n H o u s e W e s t m i n s t e r . S A V . ;
pii)?. c<1„ Tmc Pü n t o n Pu b l i s h i n g Co. , C l e v e l a n d . O h io . Jo h n A . K LmN\ o f H o a r d ; E . I .. Sh a n e r. r r p s «lent a n d I r e a s u r e r ; C». O . Ha t s. V ic e P re s id e n t; F . G . St e i n e b a c h. S e c r e t a r y .
A u(*lt B u r e a u o f C ir c u l a t i o n s ; A s s o - , l ’nl>crs *n c - 1111 d N a t i o n a l P u b lishers A s s o c ia tio n
r S Ï J ï ! 1^ . «v e ry M o n d a y . S u o s c r t p t l o n i n t h e i tS ta l e s . C u b s . M e x ic o a n d C a n a d a , o n e ' lw o y e a r s Î 6 : K u r o tie a n a n d fo r e ig n
SuS) ”oc°Ue > ear ,10‘ 8lDKle 001)163 (currenl
®ec o n (î m a t t e r a t t h e p o s to fflc e r n n » S l ? . ,in? « .H u ‘R,e r l h e A c l o f M a r c h 3. 1 6 7 9 . C o p y rig h t | p4(> j)V ,»tp p e n l o n D i'M 's h ln e C o
a
V o lu m e 107— N o . 4 J u ly 22, 1940
R E A D E R C O M M E N T S ...
H IG H L IG H T IN G T H IS ISSU E . . . .
N E W S
News of National Defense Developments 13-
Walsh-Healcy Awards for Week Ended July 6 ...
British Industry Studies Sites for N ew Factories in Canada
Provisions for New Taxes Reduces Steelmakers’ Quarterly Income ...
Steelworks Operations for W eek ...
Formation of Defense Commission's Industrial Materials Department Men of Industry...• ...
Activities of Steel Users, Makers Rehabilitating Armor Plate Plant Meetings ...
Obituaries ...
W IN D O W S O F W A S H I N G T O N ...
M IR R O R S O F M O T O R D O M ...
E D IT O R IA L — Western Hemisphere Cartel
T H E B U SIN E S S T R E N D ...
T E C H N IC A L
Today's Ball-Bearing Metallurgy— B y C. T . Hewitt
Straightening Hardened Parts— By W . P. B oyle...
If Your Wire Rope Gives Short Service . . . Know W hy— By F. L.
Spangler ...
New Building Design Features Steel Wall Surfaces
4 11
■7 18
>9 20 21 25 3°
3232 33 33
Metallurgy
Heat and Corrosion Resistant Castings, Part I— By D. W . Talbott Heal Treating
Improving Stainless— By Russel Franks and W . O. Binder.
Machining
Machine Both Burnishes and Prelubricates Valve Stem Guides Contour Milling of Aircraft Connecting Rods-Now Automatic Joining and W elding
Special Hydraulic Presses Built Easily ...
Instrumentation in Arc W elding— By Robert E. Kinkead Materials H andling
A Conveyor-Baking Setup— By Walter L . Seelbach Progress in Steelm akjng
Between Heats with Shorty ...
Open-Hearth Trends, Part 1— By W . J. Reagan...
IN D U S T R IA L E Q U IP M E N T ...
H E L P F U L L IT E R A T U R E
M A R K E T R E P O R T S A N D P R IC E S
B E H IN D T H E S C E N E S ...
C O N S T R U C T IO N A N D E N T E R P R IS E IN D E X T O A D V E R T IS E R S
-/
34 35 38 46
48 51 40
5<>
4968
5060
52 54 62 7°
73 79 80 98 104
P R O D U C T I O N • P R O C E S S I N G • D I S T R I B U T I O N • U S E
July 22, 1940 9
BANTAM N E E D L E R O L L E R S F O R M T H E M O S T C O M P A C T
A N T I - F R I C T I O N B E A R I N G S E V E R B U I L T
L J A N T A M
S T R A I G H T R O L L E R • TA R O L L E R • N E E D L E • B A L L
A h a n d fu l o f B a n t a m ’s N e e d le R o lle rs is y o u r s ta r tin g - p o in t fo r th e sm a lle st, s im p le s t a n t i - f r i c t i o n b e a r i n g e v e r d ev ised
— a b e a rin g y o u c a n asse m b le q u ic k ly a n d e a sily w ith sim p le, a u to m a tic e q u ip m e n t r ig h t in y o u r o w n p la n t.
' I f th e r e ’s a p la c e in y o u r p r o d u c t w h ere a n t i - f r i c t i o n b e a rin g s a re e s se n tia l a n d
w h ere size a n d co st a re v ita l c o n s id e ra tio n s, in v e s ti
g a te B a n t a m ’s N e e d le R o llers. T h e ir sm a ll d ia m e te r in re la tio n to s h a f t size is id e a lly a d a p te d to th e re q u ir e m e n ts o f good p r o d u c t d esig n . T h e y o fte n e lim in a te th e n e e d for sp a c e -c o n su m in g e x tra p a r ts
— s h a f t a n d h o u sin g c a n f re q u e n tly b e u se d a s in n e r a n d o u te r ra c e s. A n d c a p a c ity is e x c e p tio n a lly h ig h in p r o p o rtio n to b e a rin g siz e— for B a n ta m ’s N e e d le R o lle rs a re c a re fu lly h a rd e n e d to c a rry h e a v y lo a d s, y e t r e ta in th e ir d u c tility .
F o r N e e d le R o lle rs t h a t w ill a s su re d e p e n d a b le o p e r a tio n — o r for a d v ic e o n th e ir a s s e m b ly — T U R N T O B A N T A M . O u r e n g in e e rs w ill be g la d to w o rk w ith y o u in la y in g o u t a p p lic a tio n s to m e e t y o u r specific re q u ire m e n ts .
Ba n t a m Be a r i n g s Co r p o r a t i o n • So u t h Be n d, In d i a n a
(A b o v e ) S P E C I A L B E A R I N G S for exccp- tio n a lly se v e re d u t y o r u n u s u a l re q u ire m e n ts a re a n im p o r ta n t p h a s e o f B a n t a m ’s serv ic e. T y p ic a l in s ta n c e is th e sp ecial re c ip ro c a tin g b a ll b e a rin g illu s tr a te d , d e sig n ed fo r s h e e t p o lish in g in a s te e l m ill, w h ere re c ip ro c a tio n o f th e s h a f t is co m b in e d w ith r o ta tio n a t 1,000 R P M .
B A N T A M ’ S E N G I N E E R I N G C O U N S E L i s b ased o n y e a rs o f e x p e rien ce in th e d esig n a n d a p p lic a tio n o f e v e ry m a jo r ty p e o f a n ti- f r ic tio n b e a rin g . B a n t a m 's en g in eers w elco m e th e o p p o r tu n ity to reco m m en d th e ty p e o f b e a rin g t h r t b e s t s u its y o u r re q u ire m e n ts .
( B e l o w ) B A N T A M ’ S Q U IL L BEAR
ING m e ets th e n eed for a compact, se lf-re ta in e d u n it t h a t p acks high lo a d c a p a c ity in to lim ite d space. Fur
n ish ed w ith o r w ith o u t in n e r race;
ca rrie d in s to c k in sizes fro m Vi 10 5 M ' I-D . ( I K t o 7 r O .D .). Write fo r B u lletin H -1 0 4 . F o r N eedle Bear
in g s fo r lig h te r serv ice, ask our am*1' a te . T h e T o rrin g to n C o m p a n y . Tor- rin g to n , C o n n ., fo r C irc u la r 2 1-H.
10 /TEEL
P R O D U C T I O N • P R O C E S S I N G • D I S T R I B U T I O N • U S E
H I G H L I G H T I N G
T H I S
■ NEW orders for finished rolled steel receded somewhat la st week. Unfilled orders are suffi
ciently large, however, to insure continued heavy production for an extended period ahead. Then, heavier buying from several sources (p. 79; is indicated for com ing weeks. These include the autom otive industry, the railroads, building and heavy construction and th e defense program . Steel production—unchanged la st week (p. 21) a t 88 per cent of ingot capacity—is expected to go to higher levels in the n ear fu tu re. B ritish buying so fa r in Ju ly has been in la rg e r volume.
South Am erican dem and is lagging, due to lower purchasing power as a resu lt of sh arp ly reduced exports to Europe.
A rm am ent aw ards (pp. 15 and 22) are g ain ing in volume and diversity. A rm y and navy contracts placed since June 6 involve expendi
tu res of $1,661,891,494. A t W ashington, seasoned observ
ers (p. 22) say th a t a rm a m ent co n tracts are being placed too slowly, th a t neces
sary specifications are not available. Am ong in
teresting developm ents are the decision (p. 32) to rehabilitate the navy’s a rm o r plate plant a t South Charleston, W. Va., as rapidly as possible, and the aw ard (p. 17) of 627 lig h t tanks. . . M an
ufacturers who w ant governm ent orders are ad vised not to go to W ashington; S t e e l (p. 13) lists 73 arm y and navy procurem ent offices and indicates the n a tu re of th e ir purchases.
A rm s
Aiiards Increasing
Nom ination of P resident Roosevelt fo r a th ird term arouses no enthusiasm am ong in d u stria l
ists who see business ham pered as a resu lt of his policies. N otw ithstand-
Larnest
national defense needs, w certain facts stan d in boldBudget
relief. A ppropriations and spending authorizations a p proved and pending in th e present session of congress (p. 13) come to $20,449,511,803. A nother sign of the tim es is the increase in the number of federal em ployes who now num ber more than 1,000,000. . . U n certain ty about the
com ing tax bill m ay be cleared up soon; the tre a su ry d epartm ent is expected to rep o rt the first d ra ft (p. 22) during the week of Ju ly 22. . . E x p o rt licenses fo r m achinery are expedited (p. 15) under a new system .
In discussing today’s ball bearing m etallurgy C. T. H ew itt (p. 38) lays em phasis on the prog
ress th a t has grown out of exacting dem ands of the a irc ra ft industry. . . . D.
W. T albott (p. 40) describes a num ber of chrom ium -nickel- iron castings which are re sista n t to h eat and corrosion, p resenting d a ta of assistance to users in select
ing specifications to m eet p a rtic u la r req u ire
m ents. . . . An improved lead-base bearing a l
loy fo r gasoline and diesel engines (p. 44) is announced. . . . A m ajo r h e a t-tre atin g problem is th a t of m aintaining the original shape and stra ig h tn e ss of tools and m achine p a rts ; W. P.
Boyle (p. 46) discloses m ethods fo r stra ig h te n ing hardened p arts.
Planes Aid Progress
Open Hearth Trends
F. L. Spangler (p. 48) explains how m axim um service is obtained from wire rope. . . . W. J.
R eagan (p. 62) analyzes c u rren t tren d s in open- h e a rth steel practice. . . . R obert E. K inkead (p. 60) shows how studies in operato r behavior lead to g re a te r pro duction and superior weld quality w ith the arc welding process. . . . W alter L. Seelbach (p. 52) describes a conveyor-baking setup which speeds production and finishing of cases form ed from steel sheets. . . . Russell F ra n k s and W. O. B inder (p. 56) discuss a new low -tem perature h eat tre a tm e n t w hich improves the properties of 18-8 stainless steel. . . . Con
tinuous m illing of irre g u la r contours (p. 68) now is an en tirely autom atic operation.
July 22, 1940 11
A r e y o u h e l p i n g y o u r
BUSINESS IN YO U R HOME?
O you Help the metal industry by pro
moting in your home the use of canned food and beverages? Time was when we often overlooked our mutual interest, but today when scientific research and the cooperation of metallurgists and canners have produced the perfect food container, it is time that we do our part.
This is important, not only to canners and steel mills, but to the entire metal industry. When canned food consumption rises, the buying power o f growers and canning employees is increased; canneries require more building space and additional plant equipment, and suppliers use more metal parts and in turn buy more manufacturing equipment. An upturn
in one branch of the metal industry benefits all.
We know better than most others, that in hermetically sealed tin containers are the purity, the freshness, flavor and healthful vitamins of the finest vegetables, fruits, and other food products as well as beverages.
They are scientifically canned in their prime and perfectly preserved — always ready to be served without waste and at moderate prices.
So we urge you to help yourself and the whole metal industry by increasing the use o f pure wholesome canned foods and beverages in your home. Inland Steel Company, 38 South Dearborn Street, Chicago. Sales Offices, M ilwaukee, D etroit, St. Paul, St. Louis, Kansas City, Cincinnati.
S H E E T S S T R I P T I N P L A T E B A R S P L A T E S F L O O R P L A T E S S T R U C T U R A L S P I L I N G R A I L S T R A C K A C C E S S O R I E S R E I N F O R C I N G B A R S
INLAND TIN PLATE P r o d u c e d o n l y by the c o l d r e d u c t i o n m e t h o d
12 /TEEL
G o v e r n m e n t S p e n d i n g l * a s s e s W o r l d W a r P e a k ; T o l l e a e l i 2 0 B i l l i o n «
More Than 1,000,1)00 Persons on Federal Payrolls Defense Contracts Since June 6 Total $1,661,891,491
Western Hem isphere Trade M onopoly To He Difficult Report Progress in Acquiring Strategic Materials
W ASH IN G TO N
■ APPROPRIATIONS and spend
ing authorizations approved and pending in the present session of congress are the largest in the United S tates’ history and exceed by nearly S2,000,000,000 the peak year of the first World war.
Appropriations and authorizations this session total §20,449,000,000, ac
cording to Representative Daniel A.
Reed, New York, a m em ber of the house ways and m eans committee.
In fiscal year 1919, the previous peak, federal expenditures were
§18,522,895,000.
During the present session, which convened Jan. 3, total appropria
tions have amounted to $16,702,511,- 803, of which $10,565,511,803 was for 17 departm ental and supplem ental supply bills; $1,827,000,000 for per
m anent annual appropriations and debt interest; and $2,149,000,000 tru st funds appropriated. Total ap
propriations approved to date am ount to $14,541,511,803, w ith re
quested appropriations still in con
gress am ounting to $2,161,000,000.
Additional contract authorizations approved to date by congress am ount to $1,060,000,000, while $2,- 687,000,000 in authorizations still are pending. This m akes a total spend
ing bill for this session of congress of $20,449,511,803.
Mr. Reed pointed out that 50,000 persons have been added to civil payrolls of the federal government during the past 90 days. For the first time in our history, he said, the fed
eral civil employes now' exceed a million persons, exclusive of all m ilitary personnel and relief workers.
The peak employment in the fed
eral governm ent during the first World w ar w’as 918,000. The New' Deal passed this in 1939, two m onths before the European w ar started and alm ost a year before President Roosevelt recommended the expan
sion of this country’s national de
fenses.
A r m y , X a v y F i e l d O f f i c e s T o H a n d l e P u r c h a s i n g
■ DATA on purchasing offices for the national defense program have been compiled and published in pamphlet form by the United States department of commerce in collab
oration with the w ar and navy de
partments. Listed are 46 field pro
curement offices for the w'ar depart
ment, 27 for the navy, maps show
ing field areas for the various of
fices, and a partial list of m aterials which are being purchased by the field offices.
In a foreword to the bulletin, Louis Johnson, assistant secretary of war in charge of procurement, advises m anufacturers to deal with
the field offices and to minimize vis
its to and correspondence with Washington.
“The best way to conserve time and effort,” says Mr. Johnson, “is to deal direct with the nearest pro
curem ent officer in the field. If he finds the problem too difficult to handle, he has orders to take the m atter up with W ashington.
“The usefulness of these officers in the field extends to every phase of the problem, w hether it be surveys of plants, educational orders, infor
m ation on ‘national defense’ pro
curem ent as well as regular ‘cur
rent’ procurem ent of commodities
and equipment for the arm y and navy, o r any other m atter p ertain
ing to the present arm am ent pro
gram .”
Most of the funds recently appro
priated for national defense will be expended through the arm y and navy field offices, it is stated. The offices, and their location, are listed:
Air Corps
Most air corps procurem ent is handled through the W right field office at Dayton, O. Two other of
fices are maintained, one for the eastern district, located at 90 Church street, New York, and one for the
July 22, 1940 13
western district, at 506 S anta Mon
ica boulevard, Santa Monica, Calif.
Air corps procurem ent offices pu r
chase all flying equipm ent and the necessary’ facilities for operating the air bases. M aterials now being p u r
chased: Airplanes, and equipment, parts and fuel; ground equipm ent;
portable lighting equipm ent; p o rt
able photographic laboratories; and other aeronautical supplies and ac
cessories.
Chemical W arfare Service This branch of the arm y purchases item s having to do w ith toxic gases, gas defense appliances, incendiary w ar m aterials and the development of equipm ent for use in th at type of service. Principal purchasing of
fice for norm al current supplies is at the Edgewood arsenal, Edgewood, Md. O ther arm y chemical w arfare service procurem ent offices are lo
cated at:
Boston, 2000 P o st Office and Court H ouse building.
Chicago, 1113 P o st Office building.
N ew York, room 40-1, 45 B roadw ay.
P itts b u rg h . 1014 New F ed eral building.
San F rancisco, 117 F ed eral Office building.
Purchased through these offices are a variety of machines, including arc welders, conveyors, tu rre t lathes, electric hoists, autom atic presses, au tom atic riveting, cutting, drilling and power-driven sawing m achines and motors. O ther buying covers chem
icals, chemical plant equipment, ceramics, cotton goods, glass, mold
ed and fabricated m etals and plas
tics.
Corps of Engineers
This branch buys the m aterials ar.d equipm ent used for field work in connection with a mobilized army.
Arm y engineer procurem ent offices:
Chicago, 1117 P o st Office building.
Mobile, Ala., 212 W ilson building.
New York, 39 W h iteh all stre et.
P h ilad elp h ia, Second and C hestnut stre ets.
P itts b u rg h , 1012 New F ed eral b u ild ing.
San F rancisco, 409 C ustom house.
Equipm ent purchased: Airbrake equipment, corrugated steel arches, rubber belting, steel blocks, boilers, carpenter boxes, steel bridges, steel buildings, cable, cam eras, railroad cars, chests, compasses, air compres
sors, cranes, derricks;
Dredges, gasoline and steam en gines, forges, generator sets, hoists, draw ing instrum ents, 2 to 50-ton jacks, melting kettles, pocket knives, lathes, lighters, lithographic equip
m ent and supplies, gasoline and steam locomotives, m achine and machine tool equipment;
Magnifying equipment, electric motors, camouflage nets, pontoon bridges, hydraulic presses, protrac
tors, pumps, saw mills, searchlights, steam and gasoline-powered shovels;
S tru ctu ral steel, steel tubes and plates, surveying equipm ent, storage tanks, electric transform ers, p rin t
ing type, dump wagons, copper and steel w ire and netting.
Medical D epartm ent
Purchases all articles required for the treatm ent of patients and for general hospital use; also for the veterinary service and inspection of perishable foodstuffs. Medical de
partm ent procurem ent offices:
B rooklyn, N. Y., F ifty -e ig h th stre e t and F ir s t avenue.
Chicago, U nited S ta te s P o s t Office building.
St. I,ouls, Second and A rsen al stre ets.
San F rancisco, T he Presidio.
Item s purchased: Cleaning and preserving equipment, dental instru
m ents, diagnostic instrum ents, hos
pital fu rn itu re and equipment, lab
oratory equipm ent and supplies;
Mess equipm ent, physiotherapy equipment, surgical instrum ents, X- ray machines, o ther equipment.
Ordnance D epartm ent Procures all Items of am m unition, weapons, fire control instrum ents, tools, m achinery and supplies used in the arsenals and necessary for the rep air and m aintenance of ordnance equipment.
Arm y ordnance district offices:
B irm ingham , Ala., 302 Com er building.
Boston, 2004 P o st Office and C ourt H ouse building.
Chicago, 309 W est Ja c k so n boulevard.
C incinnati, 521 P o st Office building.
C leveland, 1524 K eith building.
D etroit. 611 F e d e ral building.
Los A ngeles, 409 C ham ber of Com
m erce building.
New York, room 1214, 90 Church street.
P h ilad elp h ia , 1417 M itten building.
P itts b u rg h , 1032 N ew F ed eral building.
R ochester, N. Y„ 1118 M ercantile bu ild ing.
St. Louis, 935 C ustom house.
San F rancisco, 118 F ed eral Office building.
Springfield, Mass., 3640 M ain stre et.
W ilm ington, Del., N em ours building (fo r explosives o n ly ).
Articles purchased: Aluminum and alum inum alloys, bars, plates, rods, shapes, sheets, strip, eastings;
Automotive equipm ent and m ain
tenance supplies, cartridge brass, chemical and physical laboratory supplies;
Copper, brass and bronze wire, bars, rods, plates, strip, castings and forgings;
Dies, molds, gages, electrical light and power supplies, electroplating equipm ent and supplies, explosives and explosive ingredients and proc
essing equipment, construction sup
plies, heat-treating furnaces and ac
cessories;
Iron and steel wire, rods, bars,
plates, shapes, forgings and cast
ings, m achines and machine took, m anufactured m etal components, optical instrum ents and accessories, paints and oils for ordnance mate
rials, spray painting equipment, w eighing scales, woodworking ma
chinery and supplies.
Q uarterm aster Corps Purchases a variety of material required by the arm y personnel, clothing, m otor vehicles, machinery and supplies. M otor vehicles are bought through the Detroit office.
D istrict q u arterm aster procure
ment offices:
A tlan ta , Ga., 1306 T w enty-tw o Mari
e tt a building.
Boston, Q u a rte rm a s te r Depot, Army Base.
Brooklyn, N. Y„ F irs t avenue and F ifty -e ig h th stre e t.
C hicago, 1819 W est P ersh in g road.
D etroit, 611 F e d e ral building.
Jeffersonville, Ind., T en th street and Meigs avenue.
P h ilad elp h ia, T w en ty -first and Johnson s tre ets.
St. Louis, Second and Arsenal streets.
F t. S am H ouston, T exas, Quarter
m a s te r Depot.
S an F rancisco, F t. Mason.
Articles purchased: Agricultural implements, ridge pole bows, but
tons, cooking outfits, furniture, kitchen apparatus, lighting equip
ment, horse clipping machines (hand and power-driven), stoves and rangas and equipm ent, field safes, scales, tableware, tools (machine and hand), and various vehicles.
Signal Corps
P urchases general equipment for communications, photographic pur
poses, meteorological studies. Army signal corps procurem ent offices:
Brooklyn, N. Y'., F irs t avenue and F ifty -e ig h th stre ets.
C hicago, 1819 W est P ersh in g road.
S an F rancisco, T he Presidio.
Purchases include: Radio equip
ment, telegraph equipment, tele phone equipment, meteorological equipm ent, photographic equipment, wire cable and miscellaneous sup
plies for communications.
The coast artillery corps purchases scientific laboratory equipment and subm arine mine equipment and supplies. Most m aterials are fur
nished by the ordnance department, q u arterm aster corps, and other branches. The coast artillery corps, largely through its field office a' F t. Monroe, Virginia, purchases such m aterials as: Anchors, land and subm arine cables, electrical equipm ent, mine cases, mooring rope, scientific laboratory equip
ment, subm arine mine equipment and supplies.
N avy D epartm ent
Purchases a wide variety of a m ilitary and nonm ilitary c h a r a c t e r
through its purchasing officers in the
14 / TEEL
following cities:
Alameda, Calli., N aval A ir S tation.
Anacostla, D. C„ N av al A ir S tation.
Annapolis, Md., N av al Academy.
Boston, N avy Yard.
Charleston, S. C„ N avy Y ard.
Dahlgren, Va., N aval P roving ground.
G reat Lakes, 111., N aval T rain in g S ta tion.
Indian Head, Md., N av al Pow der F a c tory.
Key West, Fla., N aval Station.
Lakehurst, N. J., N aval Air Statio n . New London, Conn., S ubm arine Base.
New York, N avy P u rch asin g Office, P. O. box 9, sta tio n C. (A ddress, offlecr- ln-charge).
Newport, R. I., N avy P u rc h a sin g Office (O fflcer-ln-charge).
Norfolk, Va., N aval Air S tatio n ; also Naval Supply Depot, N aval O perating
■ PRIORITIES were discussed in detail at a meeting of the machine tool industry’s defense committee, Donald Nelson, procurem ent co
ordinator, and other government officials last week.
While no announcem ent was made following the meeting, it is understood the national defense commission members favor w ork
ing out priorities inform ally w her
ever possible.
Army and navy officials general
ly believe a formal priority order should be issued.
The defense commissioners be
lieve the machine tool and other industries as well are anxious to co-operate fully in the arm am ent program and that precedence will be given defense needs.
Machinery m anufacturers appar
ently are puzzled by the Presi
dent’s proclamation m aking it necessary for them to procure licenses to export m etalw orking machinery. 1 It is said the wording is ambiguous.
The state departm ent’s control board, in charge of the licenses, states that no interpretation has yet been made, and there is none in view at this time. Officials say each
■ CONTRACTS totaling $1,661,891,- 494 have been awarded for the arm y and navy since June 6, the national defense advisory commission re ported to the President last week.
Of the total, $1,390,575,404.87 has
Base fofflcer-in-chargu).
Pensacola, F la., N aval Air S tation.
P h ilad elp h ia , N av y Y ard; also N aval A irc ra ft F actory.
P o rtsm o u th , N. H., N avy Yard.
P o rtsm o u th , Va., N orfolk N avy Y ard.
P u g e t Sound, W ash., N avy Yard.
S an Francisco, N avy P u rch a sin g O f
fice (O fflcer-in-charge).
S an Diego, Calif., N av al A ir Station, N orth Islan d ; also N aval Depot, N aval O p eratin g Base (O fficer-ln-charge).
W ashington N avy Yard and N aval R esearch L aboratory.
Yorktow n, Va., N aval Mine Depot.
Communications to navy field pro
curem ent offices should be addressed to the Supply Officer, except where otherwise noted.
shipm ent will be taken up as a specific problem, and the only way to handle the situation is for m anu
facturers to contact this office.
I t is Intimated in some quarters th a t the proclamation was made all-inclusive so th a t from tim e to tim e the governm ent can make changes as required.
In all cases application for a license m ust be filed by the m a
chine tool builder and not by the purchaser. It is reported that recommendations have been made th a t builders take no more foreign orders until an export license is secured.
It has been suggested th a t the m anufacturer send a description of the machine which he proposes to export to the arm y and navy m uni
tions board, which board will tele
graph a reply to the m anufacturer w hether or not the board will rec
ommend a license. If the reply is affirmative, the m anufacturer can proceed with the work, and make form al application as required by the President’s proclamation. This applies to standard and special machines. It is stated th at if the board replies in the affirmative, there is every indication a license will be issued.
been for the navy and $271,316,- 089.13 fo r the arm y, according to W illiam S. Knudsen, production commissioner.
M aterial covered under the con
tracts includes airplanes, tanks,
battleships, am m unition, an titan k guns, a n tiaircraft searchlights, m a
chine guns, various fire-control pre
cision instrum ents, tractors, trucks, ship propulsion m achinery, storage batteries for subm arines, airport and airstation construction and m any other item s necessary to equip the arm ed forces.
Mr. Knudsen told the President that progress has been made to
ward elim inating, for the tim e be
ing a t least, the bottlenecks in the machine tool industry. The em bargo authority has contributed substan
tially to the retention in this coun
try of vital machine tool units which otherwise might have been ex
ported.
Packard Motor C ar Co., Detroit, has agreed to m anufacture 9000 Rolls Royce aircraft engines—3000 for the United States and 6000 for G reat B ritain—according to Mr.
Knudsen. This project had struck several snags earlier—first when Henry Ford refused to make arm a
m ents for a foreign belligerent and later when Packard directors de
layed approval of the contract pend
ing fu rth er clarification of its terms.
E. R. Stettinius Jr., commis
sioner in charge of m aterials, re
ported th at through co-operation with the reconstruction finance corporation and the treasu ry his di
vision is acquiring substantial sup
plies of strategic and critical raw m aterials. Actual purchases have been negotiated and the m aterial loaded aboard ship w ithin three or four days a fte r the availability of the m aterial was made known. Mr.
S tettinius’ division has made su r
veys of the entire field of strategic and critical m aterials.
Mr. Stettinius said th a t by the end of the month a plan will have been worked out to supply m ost of our needs through the m anufacture of synthetic rubber.
One point of concentration by the m aterials division involves the pro
duction of 100-octane gasoline for aircraft: It is planned to store large quantities of this underground.
The division also is working on plans to relieve our dependence on foreign sm elters for tin.
Mr. Stettinius told a press con
ference th a t production of heavy arm or plate will be adequate to meet the enlarged naval program.
Present production capacity will be augm ented by expansions and new plants financed by the $50,000,000 already appropriated by congress for that purpose.
E stim ates of the steel tonnage to be required for the defense pro
gram are being compiled by Dr.
Theodore Yntema, of the University of Chicago. Dr. Yntema prepared the survey of the United States Steel Corp. which was presented to the tem porary national economic com m ittee some m onths ago. He
D e fe n se C o m m i s s i o n e r s F a v o r
’’I n f o r m a l " P r i o r i t i e s S y s t e m
wD efe n se C o n t r a c t s A w a r d e d S i n c e J u n e 0 A g g r e g a t e $ 1,0 6 1 ,0 0 1 ,4 0 4
July 22, 1940 15
now is working with the defense commission as an aide to Mr. Stet- tinius.
Sidney Hillm an of the labor sup
ply division reported on the progress in training w orkers; already be
tween 30,000 and 40,000 are enrolled in various courses.
Ralph Budd, commissioner of transportation, said he has urged on the Association of American
I n c r e a s e d 2 .» t o
■ PRIVATE industry is capable of rapidly increasing production of most p r o d u c t s necessary to the speedy execution of a well-planned and organized defense program , if an adequate supply of skilled labor is available.
A questionnaire survey of leading business executives by the National Industrial Conference board reveals most industries are free of bottle
necks; many expect to meet antici
pated needs without any great dif
ficulty.
It was generally reported that, so far as can now be seen, heavy capital expenditures are not needed, although In some instances substan
tial investments are likely to be re
quired to provide facilities for en
tirely new products.
Production on the whole can be greatly expanded through multiple- shift operations or by the lengthen
ing of the work week.
The most serious problem is the skilled labor supply; many execu
tives stated that activities are al
ready hampered by skilled labor shortages while others believe that they will be quickly encountered when demand becomes heavy.
Steps are being taken to correct this condition and a num ber of busi
ness leaders were confident that in
dustry could solve the labor-short- age problem, through careful sched
uling of work and through the adop
tion or extension of training pro
gram s.
In the machine tool industry, nearly all replies mentioned the existence of a skilled labor shortage at present. Industries in which re
ports of shortages or expected shortages outnum bered those of no lack of trained labor included; Au
tomotive, electrical equipment, foun
dries, hardware and plumbing, heavy machinery, nonferrous metals, rail
road equipment, steel, and wire and cable. In the chemical, clothing, con
struction m aterials, food, mining, petroleum , rubber, shoes and leather and textile industries, no im portant
Railroads “the need for full per
formance by all lines of the repair work necessary to reduce cars in bad order to not more than 6 per cent, as was agreed.”
Miss H arriet Elliott, division of consumer protection, Chester Davis, agricultural division, and Leon Henderson, division of price stabiliz
ation, also reported on the work underway by their branches.
5 0 P e r C e n í
shortages were recorded or antici
pated.
In sum m ing up the results of the survey, H. F. Browne, director of the board’s m anagement research di
vision, makes this suggestion for capitalizing on the present supply of skilled labor;
“There are at present artificial barriers to the accomplishment of this latter objective (increasing the supply) that should be examined with great seriousness and from all points of view, balancing the nation’s critical needs in this emergency against the advisability of tem por
arily relaxing provisions in legis
lation enacted at a tim e when no national crisis was in sight.
“The Walsh-Healey act . . . pro-
ffl GERMANY and her allies will have a n atural advantage over the United States in the forthcoming struggle for Latin American trade, an advantage which results from the nature of the exportable su r
pluses of the lepublics south of the Rio Grande.
Largely foodstulfs and other ag ri
cultural products, these commodi
ties are needed critically in famine- threatened Europe; many are not needed in the United States.
That any country washing to sell in L atin America m ust also buy there, long has been axiomatic.
Although the United States’ trade with these republics exceeds that of any other country, our ability to absorb more South American products — w ithout seriously dis
rupting our domestic economy is limited.
It is upon this reasoning that German commercial agents already
vides am ong other things that . . . the work week shall not exceed 40 hours. The fa ir labor standards act, passed in 1938, provided a floor for wages and stepped down the regular work week of concerns en
gaged in in terstate commerce from 44 hours in October, 1938 to 40 hours in October, 1940. Thus existing legislation will, by October, 1940, limit the re g u lar work week in com
panies engaged in government con
tract work, or in interstate com
merce of any character, to 40 hours.
“It requires no complicated mathe
m atical com putation to realize that if this restriction on working hours were relaxed for the duration of the emergency to allow a 50-hour week, the productive effectiveness of the existing supply of skilled labor would imm ediately be increased by 25 per cent; a 54-hour w'eek would mean an increase in effectiveness of 35 per cent; a 60-hour week, an in
crease of 50 per cent.
“In this way, w'ithout waiting for the weeks and m onths that will be required to train or retrain new men, the present productive capacity of industry could be substantially in
creased, and it could much more rapidly make inroads into the ap
palling deficit in defense equipment that now confronts the nation . . ■
"The restrictions would automati
cally again take effect upon expir
ation of the time agreed upon.
“The shortage of highly skilled labor is no bogie set up by those opposed to social legislation to ac
complish its defeat.”
are basing their argum ents for a larger share in the m arket. Argen
tina, for example, in 1938 sold more than 35 per cent of her surplus to Germany, Italy, Belgium, Czecho
slovakia, A ustria, the Netherlands, Poland, Norway and Denmark. Ap
proxim ately the sam e am ount went to England and France. Where else, the Nazi agents ask the Ar
gentines, can you sell your meat, w heat and corn.
Size of the foreign trade of the 20 Latin American countries is re
vealed by data fo r 1938 just com
piled by the United States depart
ment of commerce. Total exports of the 20 republics were valued at
§1,839,878,000. Slightly m ore than 30 per cent were purchased by the United States. Germany took 10.5 per cent; the United Kingdom, 16-9 per cent; France, 4 per cent; Italy,
1.5 per cent; Japan, 1.3 per cent.
Im ports by Latin American eoun-
l l o w S k i l l e d M a n p o w e r C o u ld l i e
A x i s l*ow ei\s H a v e S o m e A d v a n t a g e I n L a t i n A m e r i c a n T r a d e H a t t i e
/T E E L
tries totaled $1,467,239,000, of which the United States supplied $497,342,- 000 or 34 per cent. Germany sup
plied 16.2 per cent; Italy, 3 per cent;
Japan, 2.5 per cent; United King
dom, 11.5 per cent; and France, 3.3 per cent.
Petroleum is the leading export and shipments in 1938 w ere valued at $317,361,000. Nearly 80 per cent was produced in Venezuela, with Peru, Colombia and Mexico provid
ing the remainder. O ther exports, in order of value;
Coffee $233,501,000
Meats ... 124,137,000 S u g a r ... 115,704.000 Copper ... 100,059,000 Wool ... 92,187,000 Cotton ... 76,535,000 Metals, excl. copper, t i n 73,066,000 Hides and skins ... 62,539,000
Wheat ... 61,438,000
Linseed ' . ! ... 59,572,000 Corn ... 59,299,000 Nuts, waxes, o ils... 37,739,000 Cereals, except w heat, corn
and linseed ... 32,059,000 N itrate ... 31,478,000 Bananas ... 28,139,000 Tin ... 24,793,1X10 Cabinet woods, lu m b e r 21,705,000 Cacao ... 21,672,000 Fibers ... 9,069,000 Closing of many European m ar
kets as result of the w ar already has caused large stocks of agricul
tural products, more or less perish
able, to accumulate. This is espe
cially true in the southern repub
lics. Brazil alone has several mil
lion dollars worth of coffee in sto r
age; Argentine officials are fretting over unmarketable meats, wheat and similar products.
German agents are offering an outlet for these products—and at the same time are soliciting orders for steel, railroad equipment, a ir
planes, ships, chemicals and other products. October delivery has been promised in some cases, and cash penalties for failure to deliver as promised are offered.
S h ip y a rd s I n c . F o r m e d To R eo p en C r a m p ’s
■ Incorporation of Shipyards Inc., Philadelphia, by the H arrim an in
terests is regarded in the industry as the initial step in the reopening of the former William Cramp &
Sons’ Ship & Engine Building Co.’s yard at Philadelphia.
Company’s purposes, according to articles of incorporation, are to
“buy, construct, assemble, equip, recondition, repair, sell, im port and export vessels and parts of vessels and marine engines, tools, equip
ment, appliances, m aterials and ac
cessories of all kinds and to do any and all things in furtherance of or incidental to the aforesaid purpose.”
It is understood the yard, at which shipbuilding activities were discontinued in 1927, will be opened to recondition a large num ber of destroyers idle since the last war.
S c r a p C o n s u m p t io n U p 14 P e r C e n t in J u n e
B Iron and steel scrap consumption in the United States during June increased 14 per cent to 3,482,000 gross tons, according to estim ate of Institute of Scrap Iron & Steel Inc., New York.
This compared w ith 3,081,000 gross tons consumed in May, and 2,221,000 in June, 1939. Indicated domestic scrap for first 1940 half aggregated 18,212,000 gross tons, contrasted to 13,214,000 in first half last year.
Scrap exports thus far in 1940 have averaged 230,467, gross tons per month, compared to 295,965 tons monthly average in 1939. Ex
ports this year have averaged 7.15 per cent of domestic consumption.
A m e r ic a n C ar & F o u n d r y A w a r d e d 627 T a n k s
U American Car & Foundry Co.
has been awarded a contract by the w ar departm ent for 627 light tanks to cost $11,000,000. The tanks weigh 12 tons and carry several guns.
It is stated the at my now has 3000 tanks either in hand or on order, and an additional 3000 are to be contracted for.
B r ig g s M fg . C o. T o M a k e M e t a l A ir p la n e W in g s
DETRO IT B B ri g g s Mfg. Co. here, pi o- ducer of automobile bodies, mold
ings, plumbing ware and other prod
ucts, announces through W. P.
Brown, president, th at arrangem ents have been concluded with the Vought-Sikorsky division, United A ircraft Corp., East H artford, Conn., to supply complete wing assemblies for observation and scout planes, the first venture of a new Briggs departm ent devoted to aircraft sheet metal fabrication.
Briggs will equip a plant on Con
nors avenue here, on a 16-acre tract of land, with necessary presses, form ing rolls, riveters, etc., to han
dle this production. Standard air
craft technique will be used. The wings are of aluminum alloy, about 14 feet in length. The plant will be equipped by Sept. 1, production started in October, and first deliv
eries made in November.
Complete personnel of the Bark- eley-Grow A ircraft Corp., including plant m anager, inspectors and plant operators, will be taken over by Briggs as a nucleus of skilled labor for aircraft sheet m etal fabrication.
No inform ation can be given out on the number of assemblies to be furnished Vought-Sikorsky, or the am ount of money involved in the
contract. It is known, however, th at other aircraft m anufacturers have approached Briggs for sheet metal parts, and it is likely that fu r
ther business will be placed in the new division. Tail assemblies and other formed parts eventually will be placed in production, it is stated.
Briggs has been a leading sup
plier of bodies to both Chrysler and Ford, although the latter has now absorbed most body production into his own plants. Briggs operates a tool and die division, employing currently over 1000; a plumbing w are division which is reported grossing about $100,000 monthly;
and a large new molding and auto parts plant.
The company is known to have conducted extensive experim ents with plastics, both for automotive and aircraft requirem ents. One of the latest projects is with an air
craft fuselage of molded plastic re
inforced with magnesium alloy struts. Equipment circles have heard talk of plans to install an enorm ous hydraulic press, with platen 44 feet wide, to handle air
craft moldings in the Briggs plant.
A press of this huge size would set a new record for this type of equip
ment.
P la n e m a k e r s ' B a c k lo g O ver B illio n D o lla r s
■ Backlog of orders of 15 leading warplane producers now is estim at
ed at $1,095,259,000, compared to
$300,000,000 a year ago. The indus
try also is estim ated to have expan
sion program s, in and beyond the blueprint stage, totaling $25,000,000.
According to Aviation, orders now held by leading builders are as fol
lows:
A llis o n ... $ 4 0,000,000 A viation C orp... 4 ,131,000
Bell 22,000,000
Boeing ... 4 7.000,000 B r e w s t e r ... 44,628,000 Consolidated... ... 70,000.000 C urtlss-W rlght ... 2 0 0 ,000,000 D ouglas ... 140,000,000 G rum m an ... 9,500,000 Lockheed ... 111,000.000 M artin ... 92,000,000 N orth A m erican ... 8 5,000.000 Republic ... 15,000,000
United 200
,
000,000V ultee ... 15,000,000 T otal ...$1,095,259,000
C o n t r a c t s A w a r d e d B y N a v y D e p a r t m e n t B Bureau of supplies and accounts, United States navy departm ent, last week awarded the following contracts;
D aniel W oodhead Co., Chicago, sockets,
S15.500. . , ,
C harles F. Guyon Inc,. New York, iron p ip e $8828.71.
Independent P n eu m atic Tool Co., Chi-
'July 22, 1940 17
