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W e s t m i n s t e r , S . W . 1
I'u L h H ’ieC b y T h e F t N l e i K F V B U h H IN G C O -.
F e n t o n B u tlc U iiE . C l e v e l a n d , O h i o .
K-
I-. - h a n m : . F r e n i d e m a n d T r e a a u r e r : G . O . H a r e , V iu e F r e n l d e u t : I G . B t l x n e b a c h , » S e c re ta ry . M e m b e r. A u d it B u r e a u o f C ir c u la tio n * : A sso c ia te d B u alu ea* F a p e r* I n c .. a n d N a tio n a l F u b - liaben.-' A a a o c ia tio n .F u b lia h e d e v er} ' M o n d a y . B u b s e rip tio n in t h e U n ite d S ta te * , C u b a . M e x ic o a n d C a n a d a , o n e y e a r SC tw o y e a r s $C: Jiurc*j>eat) a u d io re ig u eouir& riw , o n e y e a r f 1 0. « in g le oo p len ( c u rre n t iSBUSE) 2 5 c .
B u l e r e '1 a* s e c o n d c la s s m u tt e r a t t h e p o sio flie e a t C le v e la n d . u n d e r t h e A c t o l M a rc h 3. I$r70.
C o p y r i g h t 1 0 4 0 toy t h e t e u t o n .P u b lish in g C o
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E S T A B L IS H E D 1 8 8 2
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S o p t e m b e i' 2 3 , 19 4 0 V o l u m e 1 0 7 — N o . 1 3
READER COMMENTS
HIGHLIGHTING THIS ISSUE NEWS
Ingot Capacity Held Adequate lor Deicnse Requirements Many Companies Will Reinstate, Protect Seniority ol Draftees Fairness of “Draft Industry” Law Depends on Administration Government Contract Awards for Week
Steelworks Operations for Week
Financial ...
Meetings ...
“Take Politics Out of Defense Program; Give Hoard Full Power”
Latest Organization Chart, Production Division, National Defense I mission ... ...
Men of Industry
1,259,200 Skilled Workers by July i, Federal T raining Plan Activities of Steel Users, Makers ...
O bituaries...
WINDOWS OF WASHINGTON MIRRORS OF MOTORDOM EDITORIAL—Roosevelt and Labor T H E BUSINESS TREND
TECHNICAL
Fast Steel Analysis by Sjxxtroscojx*—By A. Fisher
New SMZ Alloy Changes White Cast Iron to Strong Cray Iron Novel i look-Up Eliminates Necessity for Skilled Men
Oxyacctvlene Process Helps Machine-Tool Production Machining
Older Machines Can Handle Cemented Carbide Tools- LongweJl
Finishing
' High-Production Cleaning, Pickling and Plating Line Progress in S teclm akjn g
Control of Spangles—By Wallace G. Jmhoff jo in in g and W eldin g
Welding Fabrications for Porcelain Lnarnd Finishes
M a ter ia ls H a n d l i n g
Mass Production of Standardized Aircraft INDUSTRIAL EQUIPMENT
HELPFUL LITERATURE
MARKET REPORTS AND PRICES BEHIND TH E SCENES
CON STRUCT TON AND ENTERPRISE INDEX
T OADVERTISERS
11111 I‘I
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3.1
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24-2627 28 2«
2<I M
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86 86
i ' 15 42 45
46
57 5«
60
-By K.
-By Arthur S. Peirce
49 59
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8r 87 98 105
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1
zP 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
Septem ber 23, 1940 17
M O R E O I L S ■ •
In two of these mills the Morgoil Roll Neck Bear
ings were installed in casings designed originally for bearings of another type.
Morgoils got the job, because they
1 . Assure positive maintenance of roll setting.
2. Save power.
3. Provide a load capacity far in excess of roll neck bearings of any other type.
4. Permit the use of larger roll necks.
5. Have remarkably long bearing life.
M O R G O IL BEARINGS are becoming standard equipment for modern rolling mills and can be installed in many existing bearing cases. W rite for the Morgoil book.
R-7<5
MORGAN CONSTRUCTION CO.
WORCESTER, MASSACHUSETTS
M O RG O IL
ROLL NECK
B EA R IN G S
18 / T E E L
I ? ‘ET CL
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 t U T T O N • U S (
H I G HLIG H T I G
T H I S I S S U E
H S T E E L p roduction la st w eek (p. 27) again stood a t 93 per cen t o f in g o t cap acity, peak le v e l so fa r th is year. D em and con tin u es to sw ell fo r all p rod ucts but tin p late. F ea rin g sc a r c ity , m an y con su m ers (p. 87) sh ow a n x ie ty ov er fu tu r e req u irem en ts and are p ressin g for d eliv eries. S om e stee l, p articu larly grad es r e q u irin g sp ecia l h ea t tr e a tin g and an nealin g, h as been placed for n ex t yea r a t p rices rul
in g a t tim e o f sh ip m en t. P rod ucers talk r e a s
su rin g ly . P re sen t stee lm a k in g ca p a city , th e y b elieve (p. 2 1 ), sh o u ld prove am ple to tak e care o f all req u irem en ts and th e y see no need fo r en la r g em en t in ca p a city in th e im m ediate fu tu re. A p riorities sy ste m is seen as a p o ssi
b ility w hen arm am en t req u irem en ts approach a peak.
O nly a sm all p ercen tage o f p resen t ste e l pro
d uction (p . 21 ) is b ein g sold to th e g o v ern m en t or to co n tra cto rs w ith n atio n a l d efen se
orders. Such requirem ents, how ever, are exp an d in g rap
idly. L a st w e e k ’s aw ards (p. 24 ) w ere im p ressive for size and d iv ersity . A large se ctio n o f th e m eta lw o rk in g in d u stry h as been m obilized or is in p rocess o f b ein g m obilized.
F or one item alone, a rm y spoons, 180 tons o f s ta in le ss ste e l is needed. C onstruction work, la r g e ly lin k ed w ith th e d efen se program , is m o u n tin g rap id ly. More than a score o f ca n to n m e n ts are up fo r bids. . . The “d raft in d u stry ” p rovision o f th e com p u lsory m ilita ry train in g a ct reads re a ssu r in g ly but (p. 23) m uch d e
p ends on its a d m in istration .
180 T o n s F o r S p o o n s
P rod u ction o f 1941 m odel au tom ob iles (p. 36) is s ta r tin g a t a h ig h er ra te than a yea r ag e. . . T h e fa rm er’s in com e in 1940 (p. 39 ) is above th e 1939 level. . . P o litics rr r m u st be rem oved from in
i' a r m I n c o m e , A , .... ,. ,
d u stria l m obilization or else
H ig h e r its su cc essfu l con su m m ation w ill be d an gerou sly d elayed and p erh ap s fa il, s a y s R aoul E. D esvern in e (p.
2 9 ). . . F ed eral h o u sin g p rojects are in creasin g
in num ber and (p. 8 7) require a large am ount o f stee l. . . U nd er a recom m ended federal tra in
in g p lan (p . 4 0 ) 1,259,200 ad d ition al sk illed w ork ers w ould be av a ila b le by Ju ly 1, 15)41. . , B eth leh em p etitio n s Sup rem e Court tp. 3 2 ) not to tra n sfe r the d eterm in ation o f p rices in g o v ernm ent co n tra c ts from th e ex e c u tiv e to the ju d icial dep artm ent.
V isu al sp ectra com p arison m eth od s, s a y s an E n g lish m e ta llu rg ist (p . 16), offer an e x tr e m e ly fa st m ean s o f a n alyzin g stee l q u a lita tiv ely . W ith a ccu ra cy w ith in 20 per / • • i cent, these m eth od s a lso are
’ s u i t a b l e fo r quantitative) A n a l y s i s w ork. . . . A novel hook-up (p. 58) rem oves the need for sk ill in d u p licatin g dies. . . . W ith all oth er fa cto rs stand ard ized , sa y s W allace G. [m hoff (p. 5 4 ), a n y Increase in the tem p eratu re o f tin*
g a lv a n izin g b ath re su lts in h eavier zinc c o a t
in gs. H e str e s s e s the im portan ce o f su bm ersion tim e. . . . A new g ra p h itizin g allo y u sed as a lad le ad dition (p. 57) tran sform s w h ite cast iron in to str o n g g r a y iron. . . . A new booklet (p. 58) d escrib es copper a llo y s used in the air c r a ft production in du stry.
Jam es R. L on gw ell tells how to lest and c o n d ition old er m ach in es (p. 49 ) so as to en ab le them to hand le cem en ted carbide tools. , . . F la sh w eld in g Is b ein g e m ployed su c c e ssfu lly (p. 64 ) ill fa b r ica tin g hot w a te r tank s th at su b se q u en tly are p o rce
lain en a m eled ; an e x a c tin g be follow ed. . , , C om plete stan d ard ization , plus a good m a teria ls h and lin g sy stem , resu lted In a big in crease In production (p. 74) at a P en n sy lv a n ia aircraft plant. . , . M aking up banks o f open h earth fu rn aces (p. 4H) is fa cilita ted by an im proved d olom ite th r o w in g m ach ine. . . . A new p ro ce ssin g line clean s, p ick les and d ep o sits zinc c o a tin g (p. 50) on 400*' pounds o f sm a ll p arts hourly. . . . A new V-bell fp. 72 ) d oes not accu m u late sta tic ch a rg e s.
W e ld in g W a t e r T a n k s
procedure m ust
S eptem ber 23, 1940 19
I N L A N D S T E E L C O .
3 8 S . D earborn S t r e e t , C h ica g o • S a le s O f fic e s : M ilw aukee, D e tro it, S t . P a u l, S t . L o u is, K a n sa s C it y , C in cin n a ti
tAj„ „ MM and Skilled Men Iffffcr*' CARRY ON THE
I N L A N D T R A D I T I O N F O R Q U A L I T Y
F R O M th e d ay In lan d m ad e its first steel, em p h asis has alw ays b e e n p la c e d o n u se o f th e m o st m odern eq u ip m e n t a v a ila b le, th e m o st ad van ced p ro cesses, an d m e n o f sp e c ia l tra in in g an d great s k ill—th e com b in a tio n w h ic h assu res h ig h e st u n ifo r m q u a lity o f ste e l m ill p ro d u cts.
B e c a u se o f th is tr a d itio n m o st o f In la n d ’s steel- m ak in g an d fin ish in g e q u ip m e n t h as b e e n rep laced w ith in th e p ast fe w years. T y p ic a l o f r e c e n t im p ro v e
m en ts are: m o d ern b la st fu rn a ces; n e w o p e n h earth fu rn a ce s; a b loom in g m ill o f e x c e p tio n a l sp eed and fle x ib ility ; n e w 4 4 -in . a n d 7 6 -in . c o n tin u o u s sh e e t and strip m ills ; la te st ty p e s o f c o ld r e d u c tio n m ills, a c o m p le te ly r e b u ilt g a lv a n iz in g d ep artm en t; n ew tin m ills fo r p ro d u c tio n o f tin p late b y th e m o d ern
co ld r e d u c tio n m eth o d ; an d , n e w fu rn a ce an d m ill con trol d e v ic e s th a t a u to m a tic a lly gu ard q u a lity and u n ifo r m ity . T h e I n la n d s te e l m ill is as m o d er n as an y in th e w o rld .
O p eratin g th e In la n d m ills are s te e l m a k ers and m eta llu rg ists w h o k n o w an d p r o d u c e u n ifo r m , h ig h q u a lity s te e l. T h e y are m e n w h o h a v e a d d ed m u ch to th e sc ie n c e o f s te e l p ro cessin g , an d th e y can b e co u n ted o n fo r im p o rta n t a d v an cem en ts to m e et th e n eed s o f th e fu tu r e .
M an y u sers o f s te e l p ro fit b y th e I n la n d tr a d itio n for h ig h u n ifo r m q u a lity . I t saves th em tim e a n d m oney.
L e t I n la n d ’s m o d er n m ills and sk ille d m e n go to w ork fo r y o u .
S H E E T S • S T R IP • T IN P L A T E . B A R S • P L A T E S • FLO O R P L A T E S • S T R U C T U R A L S • P IL IN G • R A IL S • T R A C K A C C E S S O R IE S • R EIN FO R C IN G B A R S
I n g o t C a p a c i t y H e l d A d e q u a t e F o r D e f e n s e R e q u ir e m e n t s
L i t t l e O p e n H e a r t h E x p a n s i o n E x p e c t e d i n N e x t T w o Y e a r s . M a n y C o m p a n i e s t o R e i n s t a t e , P r o t e c t S e n i o r i t y o f D r a f t e e s . F a i r n e s s o f “ I n d u s t r y C o n s c r i p t i o n ” D e p e n d s U p o n A d m i n i s t r a t i o n . A r m y , N a v y A w a r d s f o r W e e k T o t a l $ 4 7 2 ,0 5 9 ,6 0 4 .
E3 DOES the United S tates face a PiObable sh ortage in steslm ak in g cap acity? W ill it be necessary to build m ore open hearths to supply steel for the w arships, tanks, air
planes, ordnance and m unitions plants and other national defense needs?
T h ese q uestions w ere raised last w eek by anonym ous "governm ent econ om ists” who predicted ingot ca
pacity would becom e one of the
"bottlenecks” in our arm am ent plan.
The answ er, o f course, depends on the as y et unknow n steel re
q uirem ents of the program , re
quirem ents which now are being com piled by d efen se com m ission e x perts.
H ow ever, the in du stry’s statistics sh ow a com fortable cushion be
tw een actual production capacity and the h igh est recorded consum p
tion. R ated in got capacity, accord
ing to A m erican Iron and Steel in
stitu te figures, is 81,828,958 net tons.
H igh est actual production (which m ay be considered syn onym ous w ith dom estic consum ption plus exp orts) w as 60,829,752 tons. Aver
age for the past ten years w as 36,906,682 net tons.
M any Furnaces Obsolete E ig h ty per cent operations would produce slig h tly m ore than 65,000,000 n et tons a year, 5,000,000 tons m ore than p eacetim e requirem ents in the in du stry’s best year and nearly 30,- 000,000 tons above thg ten-year aver
age. N in ety per cent operations would produce- 73,000,000 tons.
E xp erts on open-hearth practice doubt that the industry with pres
ent equipm ent could average 90 per cent o f capacity for a year and believe it w ould do w ell to average 80 per cent. This is d espite a cu r
rent operating rate o f 93 per cent and record averages of 93.4 and 90.8 per cent in 1919 and 1920, respec
tively.
Many of the larger open-hearth plants are considered obsolete by engineers; som e w ere laid down before the turn of the century.
Only 27 furnaces w ere built in the past eight years. In contrast the early years of World war I ushered in large scale exp an sion in steel- m aking capacity, 105 open hearths being com pleted in 1916 and 102 in 1917.
In addition to obsolescence, pro
duction m ay be lim ited by a sh ort
age of the m ost efficient charging m aterials and by a lack o f highly skilled personnel. A leading en g i
neer says open-hearth steel produc
tion depends on four factors, rated as follow s: Furnace, 30; plant, 10;
raw m aterials, 20; and personnel 40.
As operations approach capacity, a sh ortage in raw m aterials and skilled operators is lik e ly 'to result.
Open-hearth designers, as well as steel com pany execu tives, do not anticipate any considerable exp an sion o f open-hearth capacity, at least not in the next tw o years.
T hey believe that an average oper
atin g rate o f between 80 and 90 per cent w ill produce sufficient steel for both normal and arm am ent needs.
T hey also believe the sh ortage, if any, w ill be felt first in ironm aking capacity.
Irving S. Olds, chairm an o f the
United S ta le s S teel Corp., su b stan tiated this view last w eek at P itts
burgh when he said: "I believe the elasticity w ithin the steel In
dustry will permit an am ple supply of stee l when needed, although som e system of priorities m ay be n ecessary.”
E. G. Grace, president of Helhk'- hem Steel Corp., recently stall'd Ids belief that steel capacity Is "reason
ably adequate." Officials o f the national d efen se advisory com m is
sion have expressed sim ilar view s.
All recognize, of course, expansion will be necessary in arm or plate, forging, shipbuilding and other war m aterial facilltlrs.
The difference betw een the am ount of steel we can product' and the am ount required for normal purposes, it Is believed, should be adequate for the projected arm a
m ent program , spread oyer several years.
ARMAMENT PROGRAM TAKING SM AI.I. PART OF STISEI. OUTPUT
Only a sm all ^percentage of present steel production is being sold to the governm ent or to con
tractors with national d efense or
ders, Irving S. Olds, chairm an, U ni
ted S tates Steel Corp., said last w eek, Mr. Olds, with II. V. F all- less, president of the corporation, and a group o f other officers and directors made a tour o f the corpor
ation ’s properties in P ittsburgh, Chi
cago and Birm ingham , Ala,
Production and delivery o f the desired d efen se m aterials will be made in a shorter tim e and at less
S eptem ber 23, 1940 21
cost if th e job is m anaged by pri
vate enterprise, Mr. Olds asserted.
There is no basis fo r ch arges of a "sitdown strik e o f capital” or of in d u stry’s "refusal to co-operate”
w ith th e governm ent.
U. S. S teel has m et w ithou t delay every requirem ent of th e govern m ent in th e n ational d efen se pro
gram , he said, and in sisted that in du stry m ust not be held resp on si
ble for delays in the program . G reater developm ent by th e stee l industry in the fu tu re w as pre
dicted by Mr. Olds.
"During the h earings b efore the tem porary national econom ic com m ittee le ss than a yea r ago the thesis w as advanced that industrial progress in the United S tates has reached its zenith— that no frontiers are le ft for b u sin ess to conquer—
that as a consequence our earlier econom ic notions about b usin ess m ust be com p letely revam ped.
“I am not a b eliever in an y such d efeatist argu m en ts. U n less w e are to have a com plete departure from th e sy stem o f private enter-
n HOW em p loyes plan to protect the jobs o f em p loyes drafted for m ilitary service, and how th ey plan to fill th e gaps that the draft m easure w ill create is revealed in a su rvey by the research bureau of the A m erican M anagem ent associa
tion, N ew York.
W eeks before the Burke-Wads- w orth bill reached the conference stage, m any com panies had begun su rv e y s o f their personnel to de
term in e how m any em p loyes would be affected. M any then proceeded to form ulate policies regarding the treatm ent of em p loyes called into service.
(Under th e selectiv e service law , an em p loyer is obliged to consider as on furlough or leave of absence all selectees taken from his em p loy and to grant to them such insurance or other benefits as he custom arily grants to em p loyes on su ch statu s.
H e is under obligation to restore them to their jobs w hen they have finished their service, or to a “posi
tion o f lik e seniority, statu s, and pay u nless th e em p loyer’s circum stances have so changed as to m ake it im possible or unreasonable to do so.”
D uring se lec te es’ absence, an em ployer m ay not fill their places with m em bers o f the com m unist party or the G erm an-Am erican Bund.)
C overing a large group o f typi
cal m anu factu ring and other com panies, the report reflected policies
p rise w hich developed th is country and m ade it th e en vy of the indus
trial world, I am confident that A m erican business, if given a fair chance, w ill con tinu e to develop and to go forw ard; that A m erican r e source and in gen u ity w ill produce new inventions and new p rocesses, opening up new lin es o f industrial activity; that private capital w ill be required and w ill be available for th e financing o f th ese n ew en terprises, as w ell as for tak in g care o f the norm al grow th and d evelop
m ent o f estab lish ed industries.
"The stee l in du stry h as not stood still in th e past. I do not anticipate it w ill do so in th e fu tu re.”
O ther m em bers o f th e party in
cluded: Enders M. Voorhees, chair
m an, finance com m ittee; S ew ell L.
A very; Philip R. Clarke; Leon Fraser; W illiam A. Irvin, form er president; T hom as W. Lam ont; N a than L. M iller, gen eral counsel;
Ju niu s S. M organ; George A. Sloan;
Robert C. S tan ley, president, In ter
national N ick el Co.; and G. Cook Kimball.
affectin g m ore than 300,000 hourly- paid and salaried em ployes.
Conditions differing from one com pany to the other m ake im possi
ble a uniform policy. H ow ever, ju d gin g by th e returns, the aver
age conscripted em p loys in the large and m ore p rogressive com panies w ill be treated as follow s:
H e w ill be assured o f rein state
m ent. T his assu ran ce m ay how ever carry the qualification that the em ploye m u st be honorably dis
charged from m ilitary service and that he is m en tally and physically fit at the tim e h e m akes h is claim for reinstatem ent. S om e concerns plan to giv e this assu ran ce but w ill add such qualifications as: “If no national or b usiness catastrophe has occurred,” “if the individual w ould still be em ployed under nor
m al conditions,” or “if the applica
tion is m ade w ithin a certain period a fter discharge from the arm y.”
H e w ill probably be reinstated at the sa m e rate o f pay.
H is sen iority righ ts w ill be m ain
tained.
I f his com pany has a pension plan, he w ill be given credit during his absence for continuous service.
H e w ill also be given group pro
tection under h is group-insurance plan. S om e com panies q u alify this prom ise w ith such statem en ts as,
"unless the man g e e s into active com bat,” “u n less the problem be
com es too ex te n siv e ,” or “as lon g as th ere is no increase in the ratio.”
H e w ill not be paid the difference betw een h is arm y pay and h is reg
ular pay. A num ber of com panies still provide for th e paym ent of m en undergoing sh ort periods of m ilitary training, and such pay
m ent w ill be m ade to m en leavin g for the lon ger periods.
T h e em p loye w ho is hired to fill the place of the conscripted em ploye w ill be inform ed that his job is tem porary, as w ill em p loyes who are prom oted to fill such positions.
M ost v exatiou s problem s are those of rein statem en t and th e m ainte
nance o f sen iority rights, accord
in g to report.
C areful p lans are being m ade to protect the sen iority rights o f con scripted em p loyes but the report takes note of the difficulty that m ay arise in connection w ith union ju r is
diction.
IN L A N D TO SU PPLE M E N T P A Y OF EM PLOYES D R AFT ED
Inland S te el Co., Chicago, an
nounced last w eek its plan to su p p lem en t incom e o f em p loyes su b ject to th e national guard’s first call to service or to the d raft by m on th ly p aym en t o f an am ount equal to base service pay.
T h e com pany w ill also m aintain w h atever group life insurance such em p loyes m ay have at tim e o f enilst- m ent or call to service. E m ployes in m ilitary training fo r th e year w ill retain their seniority, accord
in g to the com pany.
CHARGES PU BLIC M ISLED ON P R E P A R E D N E SS PROGRESS
N am e-calling in con gress and un
fair criticism o f the n ation al de
fen se com m ission and th e govern m en t h ave m isled the A m erican public on th e sta tu s o f our pre
paredness program , according to F rederick S. B lackall Jr., president and treasurer, Taft-Pieroe M fg. Co., W oonsocket, R. I.
“Today N ew England is a m ad
h ouse o f activity, related directly or indirectly to defense. I am am azed w hen I read som e o f the statem en ts attributed to con gress
men airing their view s on the a l
leged 'lack o f co-operation’ by m an
ufactu rers . . .
"M anufacturers in N ew England h ave been w ork in g w ith arm y and navy d efen se boards and ordnance d epartm ents for M-day. It has been ten or 15 years sin ce w e had our first unofficial talks about tool
in g and m anu factu ring program s.
F ive years ago w e had a sk etch y program , but definite su rv ey s w ere m ade to determ ine w hat N ew E n g
land could produce in the d efen se sch em e.”
Mr. Blackall w arned a g a in st ex
pectation of com plete d efen se in less than tw o or three years.
M a n y C o m p a n i e s W i l l R e i n s t a t e . I*i*€»teet S e n i o r i t y o f D r a f t e e s
22 / T E E L
F a i r n e s s o f “ D r a f t I n d u s t r y "
L a w D e p e n d s 011 A d m i n i s t r a t i o n
■ M A N U FAC T UR ER S m ust accept and execute, on “fair and ju st”
term s, orders for m aterials or prod
ucts needed in the national d efense w hen called upon to do so by the President, under th e term s o f the selectiv e service bill as finally en acted.
R efu sal to accept and execu te such orders is punishable by a fine of not m ore than $50,000 and im prison
m ent o f not m ore than three years.
A ct also provides the President can take over and operate a m anu
factu rer’s plant, eith er directly or through a contractor, for refu sin g a d efen se order. T he governm ent is required to pay “fair and ju st”
rental for plant and facilities.
T h e section as passed represents considerable m odification o f the se n a te ’s original proposal w hich pro
vided for “seizu re” and condem na
tion o f plants, w ith the governm ent retaining title after the em ergency had passed.
Com pliance Is O bligatory Its fairn ess w ill depend to large exten t upon its adm inistration. The com plete section o f the selective service bill relatin g to industrial conscription follow s:
“Sec. 9—T he Presid en t is em powered, through the head of the w ar departm ent or th e navy depart
m ent o f the governm ent, in addi
tion to th e present authorized m eth ods o f purch ase or procurem ent, to place an order w ith an y individual, firm, association, com pany, corpor
ation, or organized m anufacturing industry for such product or m a
terial as m ay be required, and which is o f the nature and kind usually produced or capable o f being pro
duced by such individual, firm, com pany, association, corporation, or or
ganized m anu factu ring industry.
“Com pliance w ith all such orders for products or m aterial shall be ob ligatory on any individual, firm, association, com pany, corporation, or organized m anu factu ring indus
try or th e responsible head or heads th ereof and sh all tak e precedence over all other orders and contracts theretofore placed w ith such individ
ual. firm, com pany, association, cor
poration, or organized m anufactur
in g industry, and an y individual, firm, association, com pany, corpor
ation, or organized m anufacturing industry or the responsible head or heads th ereof ow ning or operating an y plant equipped for the m anu
factu re o f arm s or am m unition or parts o f am m unition, or an y neces
sa ry su pp lies or eauipm ent for the arm y or navy, and an y individual, firm, association, com pany, corpora
tion. or organized m anufacturing in d ustry or th e responsible head or heads th ereof ow ning or operating an y m anu factu ring plant, w hich, in
the opinion o f the secretary o f war or the secretary o f the navy shall be capable o f being readily trans
formed into a plant for the m anu
facture o f arm s or am m unition, or parts thereof, or other necessary su p plies or equipm ent, w ho sh a ll refu se to giv e to the United S tates such preference in the m atter o f the ex e
cution o f orders, or who shall re
fu se to m anufacture the kind, quan
tity, or quality o f arm s or am m uni
tion, or the parts thereof, or any nec
essary supplies or equipm ent, as ordered by the secretary of w ar or the secretary of the navy, or who sh all re fu se to furnish such arm s, am m unition, or parts of am m unition, or other su pp lies or equipm ent, at a reasonable price as determined by the secretary o f w ar or the secre
tary o f the navy, as the case m ay be, then, and in either such case, the President, through the head of the w ar or navy departm ents of the governm ent, in addition to the present authorized m ethods of pur
chase or procurem ent, is hereby au thorized to take im m ediate p osses
sion o f any such plant or plants, and through the appropriate branch, bureau, or departm ent of the arm y or navy to m anufacture therein such product or m aterial as m ay be re
quired, and any individual, firm, com pany, association, or corporation, or organized m anufacturing industry, or the responsible head or heads thereof, failin g to com ply with the provisions of this section sh all be deemed gu ilty of a felony, and upon conviction shall be punished by im prisonm ent for not m ore than three vears and a fine not exceeding $50,- 000.
“The com pensation to be paid to any individual, firm, com pany, a sso ciation, corporation, or organized m anufacturing industry for its prod
ucts or m aterial, or as rental for use o f any m anufacturing plant w hile used bv the United S tates, shall be fair and iust; provided, that nothing herein shall be deem ed to render inapplicable existin g state or federal law s concerning the health, safety, security, and em p loy
m ent standards o f the em ployes in such plant.”
M a n u f a c t u r e r s ’ G r o u p S u r v e y s D e fe n s e P l a n t s a D eclaring that m anufacturers a l
ready have invested m illions of dol
l a r in plant and m achinery, tools and other equipm ent for d efense work w ithout assu ran ce o f exactly how the work w ill be paid for or under ju st w h at conditions it w ill have to be done, H. W. P ren tis Jr., president, N ational A ssociation of M anufacturers, la st w eek said m an
agem ent o f industry does not need to be “conscripted.”
"It already has volunteered," he
declared, “and th e introduction o f m ore b usiness into governm ent rather than m ore governm ent into b usiness is w hat is really pushing ahead our program o f national d e
fen se.”
Mr. P rentis sp oke at a region al m eetin g o f the association at the H otel Astor, N ew York, Sept. 18.
The association president an nounced that the organization, its industrial council and 2-13 affiliated organ izations are conducting a n a
tion-wide su rvey to reveal all u n known d efen se p oten tialities o f sm all and large plants. A nother phase o f present research is an eco
nom ic study of w ar financing, price and labor controls, Mr. P ren tis said.
This has been instituted by Dr. Karl T. Compton, president, M assach u se tts In stitu te o f Technology, C am bridge, Mass., and chairm an o f the association ’s advisory com m ittee on scientific research, and should be com pleted this month.
In addition to Mr. Prentis other sp eak ers at the dinner session in
cluded W alter B. W elsenburger, execu tive vice president, N ational A ssociation o f M anufacturers, and Dr. Joseph R. Slzoo, C ollegiate Church o f St. N icholas, N ew York.
U n c e r t a i n t y C it e d a s C a u s e o f D e fe n s e L a g H "To m eet the em ergen cy which began with the outbreak of th e w ar last Septem ber, R evere has appro
priated in the last year over $1,500,- 000 for rounding out of plants and' equipm ent,” said C. Donald Dallas, president, R evere Copper & B rass Inc., N ew York, last w eek.
"We cannot take the risk o f goin g further than this because first, if we built a new plant it would not be in production for over a year, and w e do not know w h eth er at the end o f that tim e w e would have any orders for It or not; second, if w e did have orders, we know In ad
vance that profits m ade w ould be largely taken by taxes, and a t the end o f the em ergen cy we m ight h ave to borrow m oney at the banks to pay for taxes, besides h aving a w hite elephant on our hands.
“It is this so rt o f uncertainty that is slow in g up the d efen se pro
gram a g a in st the w ish es of m anu facturers w ho are an xious to co
operate. It appears a lto g eth e r Il
logical on the face o f th in gs to risk delaying preparedness because of our eagern ess to tax profits on arm am ent and essen tial fabricated and sem ifabricated m anu factu rers w hen other m anu factu rers o f non- essen tial products and lu xuries report individual net earnings far larger than all the earn in gs o f the entire brass and copper fabri
catin g industry or airplane in dustry."
Septem ber 23, 1940
A r m y , N a v y A w a r d s $ 4 7 2 , 0 5 » , 6 0 4 : 7 3 . 4 P e r C e n t I s f o r A i r c r a f t
■ U N IT E D STA TES w ar depart
m ent la st w eek announced aw ards m ade under 1941 appropriations up to and including Sept. 7, totaled
$804,041,212.54. L istin g o f m oney sp en t, by departm ent:
O r d n a n c e d e p a r t m e n t . . . . $ 3 9 7 , 3 0 8 , 2 1 4 . 3 6 A i r c o r p s ... 1 7 9 , 5 0 2 , 0 6 9 . 6 6 Q u a r t e r m a s t e r c o r p s . . . . 1 6 7 , 1 9 6 , 6 7 6 . 0 0 S i g n a l c o r p s ... 2 2 , 4 4 6 , 3 6 6 . 7 3 C o r p s o f e n g i n e e r s ... 1 9 , 1 9 0 , 2 2 7 . 4 9 C h e m i c a l w a r f a r e s e r v i c e . 1 6 , 9 4 8 , 1 0 8 . 4 0 M e d i c a l c o r p s ... 1 , 3 9 0 , 6 2 3 . 1 9 C o a s t a r t i l l e r y c o r p s ... 5 8 , 9 2 6 .7 1
T o t a l ...$ 8 0 4 , 0 4 1 , 2 1 2 . 5 4
W ith $40,062,294 announced previ
ous w eek and this w eek ’s awards, total to date under 1941 appropria
tions is $1,316,163,110.
W ar departm ent la st w ee k an
nounced follow in g contract awards:
A v i a t i o n M f g . C o r p . , L y c o m i n g d i v i s i o n , W i l l i a m s p o r t . P a . , a i r p l a n e e n g i n e s , 5 5 , 1 2 0 , 9 9 7 . 5 0 .
B e e c h A i r c r a f t C o r p . , W i c h i t a , K a n s . , t r a i n i n g p l a n e s , s p a r e p a r t s , $ 1 3 , 1 1 5 , - 1 3 8 . 1 3 .
B e l l A i r c r a f t C o r p . , B u f f a l o , p u r s u i t a i r p l a n e s a n d s p a r e p a r t s , $ 1 9 , 8 9 6 , 6 6 8 . B o e i n g A i r c r a f t C o . , S e a t t l e , b o m b e r s a n d
s p a r e p a r t s , $ 5 9 , 7 6 2 , 8 5 0 .
B o e i n g A i r p l a n e C o . , S t e a r m a n A i r c r a f t d i v i s i o n , W i c h i t a , K a n s . , t r a i n i n g p l a n e s a n d s p a r e p a r t s , $ 6 , 9 3 4 , 0 9 6 .
C u r t i s s - W r i g h t C o r p . , C u r t i s s A e r o p l a n e d i v i s i o n , B u f f a l o , 5 4 0 p u r s u i t p l a n e s a n d p a r t s , $ 1 9 , 6 8 8 , 2 8 7 . 1 4 ; S t . L o u i s A i r p l a n e d i v i s i o n , R o b e r t s o n , M o ., 1 5 0 p l a n e s a n d p a r t s , $ 1 6 , 6 3 1 , 1 8 5 . 8 8 .
D o u g l a s A i r p l a n e C o . , S a n t a M o n i c a , C a l i f . , t r a n s p o r t a i r p l a n e s a n d s p a r e p a r t s , $ 2 0 , 2 2 9 , 1 8 4 . 1 6 .
F l o u r C i t y O r n a m e n t a l I r o n C o . , M i n n e a p o l i s , p o n t o n e q u i p m e n t , 5 1 , 1 6 9 , 6 1 0 . G e n e r a l E l e c t r i c C o . , S c h e n e c t a d y , N . Y „
s e a r c h l i g h t s , $ 7 , 7 7 7 , 5 0 0 .
L e a c h B r o s . , O s h k o s h , W i s . , p o n t o n e q u i p m e n t , $ 6 8 1 , 5 0 0 .
L o c k h e e d A i r c r a f t C o r p . , B u r b a n k , C a l i f , p u r s u i t p l a n e s a n d s p a r e p a r t s , $ 1 5 , 6 4 6 , - 4 5 0 . 8 1 .
M a r t i n , G l e n n L „ C o . , B a l t i m o r e , b o m b e r s a n d s p a r e p a r t s , $ 1 4 , 2 6 9 , 6 4 6 . 3 1 .
P a c k a r d M o t o r C a r C o . , D e t r o i t , R o l l s - R o y c e a e r o n a u t i c a l e n g i n e s , $ 6 2 , 4 4 8 , 0 0 0 . R e p u b l i c A v i a t i o n C o r p . , F a r m i n g d a l e , L o n g I s l a n d , N . Y „ p u r s u i t a i r p l a n e s a n d s p a r e p a r t s , $ 5 6 , 4 9 9 , 9 2 4 . 3 6 .
S p e r r y G y r o s c o p e C o . , B r o o k l y n , N . Y „ s e a r c h l i g h t s , $ 9 , 0 7 5 , 1 5 0 .
V u l t e e A i r c r a f t I n c . , D o w n e y , C a l i f . , a i r p l a n e s a n d p a r t s , $ 2 9 , 4 9 4 , 6 3 3 . 4 4 . W r i g h t A e r o n a u t i c a l C o r p . , P a t e r s o n ,
N . J „ a i r p l a n e e n g i n e s , $ 6 , 8 2 9 , 1 4 4 . 3 5 . O r d n a n c e D e p a r t m e n t A w a r d s A c m e M a c h i n e r y C o . , C l e v e l a n d , f o r g i n g
m a c h i n e s , $ 2 7 , 3 8 4 .
A l l e g h e n y L u d l u m S t e e l C o r p . , W a t e r - v l l e t , N . Y ., a n n e a l e d s t e e l r o d , $ 4 2 , - 7 7 7 . 2 1 .
A m e r i c a n H o l l o w B o r i n g C o . , E r i e , P a . , c o p p e r n i c k e l a l l o y c y l i n d e r s , $ 1 3 3 , 3 1 1 . 3 6 . A m e r i c a n S a w ' M i l l M a c h i n e r y C o . , H a c k e t l s t o w n , N . J . , m a c h i n e s , $ 1 9 5 5 . A u t o c a r C o . , A r d m o r e , P a . , h a l f t r a c k
v e h i c l e s , $ 7 , 2 7 1 , 1 0 3 .
B e t h l e h e m S t e e l C o . , B e t h l e h e m , P a . , a n n e a l e d s t e e l r o d , $ 4 2 , 9 8 2 . 8 0 .
B . G , C o r p . , N e w Y o r k , s p a r k p l u g s ,
$6300.
B l a k e l e e , G . S . , & C o . , C i c e r o , 111,, m a c h i n e s , $ 1 9 , 0 2 6 .
C a r p e n t e r S t e e l C o . , R e a d i n g , P a . , a n n e a l e d s t e e l r o d . S 4 2 , 8 4 5 . 7 3 .
C h a s e B r a s s & C o p p e r C o . I n c . , W a t e r - b u r y , C o n n . , a m m u n i t i o n c o m p o n e n t s ,
$ 1 0 , 2 8 3 . 2 0 .
C i n c i n n a t i M i l l i n g M a c h i n e & G r i n d e r s I n c . , C i n c i n n a t i , g r i n d i n g m a c h i n e s ,
$ 1 6 , 1 5 7 . 9 4 .
C o l t ’s P a t e n t F i r e A r m s M f g . C o . , H a r t f o r d , C o n n . , i n f a n t r y w e a p o n s , $ 2 , 7 9 6 , - 0 5 6 .
C o n t i n e n t a l M o t o r s C o r p . , M u s k e g o n , M i c h . , a u t o m o t i v e e n g i n e s , $ 1 1 , 4 1 2 , 0 0 0 . C i u e i b l e S t e e l C o . o f A m e r i c a , N e w Y o r k ,
a n n e a l e d s t e e l r o d , a r t i l l e r y m a t e r i e l ,
$ 1 4 5 , 7 3 0 . 7 3 .
E s s l e y , E . L „ M a c h i n e r y C o . , C h i c a g o , m a c h i n e s , $ 3 0 , 3 4 8 .
F e d e r a l S c r e w W o r k s , C h e l s e a , M i c h . , a m m u n i t i o n c o m p o n e n t s , $ 2 2 , 5 7 5 . G u i b e r s o n D i e s e l E n g i n e C o . , C h i c a g o ,
a u t o m o t i v e e n g i n e s , $ 2 , 9 1 5 , 0 9 5 . 8 6 . G e n e r a l E l e c t r i c C o . , E r i e , P a . , a r t i l l e r y
m a t e r i e l , $ 1 , 7 5 9 , 8 2 6 .
G e n e r a l M o t o r s C o r p . , D e l c o P r o d u c t s d i v i s i o n , D a y t o n , O ., a m m u n i t i o n c o m p o n e n t s , $ 1 1 0 , 1 1 4 . 7 9 .
G o o d r i c h , B . F „ C o . , A k r o n , O . , t r a c k f o r h a l f t r a c k v e h i c l e s , $ 1 , 4 0 9 , 4 3 9 .
G r e e n l l e l d T a p & D i e C o r p . , G r e e n l l e k i , M a s s . , g a g e s , $ 3 7 7 4 . 2 0 .
H a r v e y M e t a l P r o d u c t s C o r p . , C h i c a g o , a m m u n i t i o n c o m p o n e n t s , $ 1 4 5 , 8 0 0 . H e n d e y M a c h i n e C o . , T o r r i n g t o n , C o n n . ,
s h a p e r s , $ 5 0 2 8 .
I n t e r n a t i o n a l N i c k e l C o . I n c . , H u n t i n g t o n , VV. V a . , c o p p e r n i c k e l a l l o y r o d s a n d c y l i n d e r s , $ 1 8 4 , 0 3 0 . 1 0 .
K a r p M e t a l P r o d u c t s C o . I n c . , B r o o k l y n , N . Y ., b a t t e r y c o n t a i n e r s , $ 1 3 2 8 . 6 4 . K e l l y , J o h n P . , P h i l a d e l p h i a , c a s t i n g s ,
p a t t e r n s , $ 1 3 5 4 . 9 8 .
K e u f f e l & E s s e r C o . , H o b o k e n , N . J . , l i r e c o n t r o l e q u i p m e n t , $ 1 4 4 0 .
L a p o i n t e M a c h i n e T o o l C o . , H u d s o n , M a s s . , b r o a c h i n g e q u i p m e n t , $ 3 8 , 7 4 1 . 6 0 . L i n d b e r g E n g i n e e r i n g C o . , C h i c a g o , f u r
n a c e s , $ 4 , 3 7 3 . 3 0 .
M a c k M o l d i n g C o . I n c . , W a y n e , N . J . , a m m u n i t i o n c o m p o n e n t s , $ 1 2 1 , 3 7 1 . 5 0 . M a t t i s o n M a c h i n e W o r k s , R o c k f o r d , 111.,
r i p s a w s , $ 2 2 6 8 .
M e s t a M a c h i n e C o . , P i t t s b u r g h , a r t i l l e r y m a t e r i e l , $ 8 , 3 9 0 , 0 0 0 .
M i d v a l e C o . , N l c e t o w n , P a . , a r t i l l e r y m a t e r i e l , $ 1 , 2 6 0 , 3 0 8 .
M i l l e r P r i n t i n g M a c h i n e C o . , P i t t s b u r g h , i n f a n t r y w e a p o n s , $ 5 0 3 , 7 2 7 .
M o d e r n T o o l & D i e C o . , P h i l a d e l p h i a , g a g e s , $ 3 2 , 2 2 0 .
M o o r e , G e o r g e W „ B o s t o n , a m m u n i t i o n c o m p o n e n t s , $ 1 7 6 0 .
N a t i o n a l P n e u m a t i c C o . , R a h w a y , N . J . , a r t i l l e r y m a t e r i e l , $ 5 , 7 6 3 , 7 5 3 . 9 3 .
N e w E n g l a n d A u t o P r o d u c t s C o r p . , P o t t s - t o w n , P a . , a m m u n i t i o n c o m p o n e n t s ,
$ 3 4 7 0 .
N l l e s - B e m e n t - P o n d C o . , P r a t t & W h i t n e y d i v i s i o n , c h a m b e r i n g , r i f l i n g m a c h i n e s ,
$ 1 5 6 , 7 8 0 .
O i l W e l l S u p p l y C o . , O i l C i t y , P a . , a m m u n i t i o n c o m p o n e n t s , $ 2 4 6 , 2 6 2 . 5 0 . O n s r u d M a c h i n e W o r k s I n c . , C h i c a g o ,
s p e c i a l m a c h i n e r y $ 1 2 , 1 4 2 .
O t i s E l e v a t o r C o . , B u f f a l o , p a r t s f o r a r t i l l e r y c a r r i a g e s , $ 3 4 8 0 . 4 4 .
P e n n s y l v a n i a F o r g e C o r p . , P h i l a d e l p h i a , a r t i l l e r y m a t e r i e l . $ 1 0 9 , 0 2 5 .
P e t e r s E n g i n e e r i n g C o . . P h i l a d e l p h i a , g a g e s , $ 2 6 5 0 .
P r e c i s e T o o l & M f g . C o . , F a r m i n g t o n , M i c h . , g a g e s , $ 5 9 4 0 .
P u l l m a n - S t a n d a r d C a r M f g . C o . , H a m m o n d , I n d . , i n f a n t r y w e a p o n s , $ 8 3 8 , 1 5 0 . R e v e r e C o p p e r & B r a s s I n c . , B a l t i m o r e , . a m m u n i t i o n c o m p o n e n t s , $ 4 3 9 1 . 4 0 , ,
• R h e e m M f g . C o . , C h i c a g o , a m m u n i t i o n c o m p o n e n t s , $ 3 2 6 , 5 4 1 .
S c o v t l l M f g . C o . , W a t e r b u r y , C o n n . , a m m u n i t i o n c o m p o n e n t s , $ 2 3 6 4 . 6 0 .
S t a n d a r d M a c h i n e r y C o . , P r o v i d e n c e , R . I . , p r e s s e s , $ 6 8 0 9 .
S t a n d a r d P r e s s e d S t e e l C o . , J e n k i n t o w n , P a . , a m m u n i t i o n c o m p o n e n t s , $ 2 9 0 , 1 9 0 . S t e a c y - S e h m i d t M f g . C o . , Y o r k , P a . , a s
s e m b l i n g , c r i m p i n g m a c h i n e s , $ 2 4 0 0 . T r a n s u e & W i l l i a m s S t e e l F o r g i n g C o r p . ,
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$ 2 5 6 4 .
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U n d e r w o o d M a c h i n e r y C o . , S o u t h B o s t o n , M a s s . , p o w e r r a m m e r s , $ 1 1 , 2 5 5 .
U . S . T o o l C o . I n c . , A m p e r e , N . J . , m i l l i n g m a c h i n e s , $ 7 3 7 7 . 5 0 .
U n i t e d S t a t e s G a u g e C o . , N e w ' Y o r k , g a g e s , $ 3 6 0 6 .
V i n c o C o r p . , D e t r o i t , g a g e s , $ 7 5 , 0 9 6 . 9 7 . W a n g T e x t i l e C o . , N e w Y o r k , a m m u n i
t i o n c o m p o n e n t s , $ 9 0 8 1 . 4 5 .
W h e l a n d C o . , C h a t t a n o o g a , T e n n . , a r t i l l e r y m a t e r i e l , $ 1 , 5 0 0 , 0 0 0 .
Y o r k S a f e & L o c k C o . , Y o r k , P a . , a r t i l l e r y m a t e r i e l , S 3 , 6 3 3 , 9 1 8 . 9 7 .
Q u a r t e r m a s t e r C o r p s A w a r d s A l d r i c h , W . J . . S a n A n t o n i o , T e x . , c o n
s t r u c t i o n a t N o r m o y l e Q M D e p o t , T e x . ,
$ 6 2 , 8 4 2 .
C e n t r a l C a l i f o r n i a C o n s t r u c t i o n C o . , S a n F r a n c i s c o , g a s d i s t r i b u t i o n s y s t e m a t S t o c k t o n A i r p o r t , C a l i f . , $ 5 9 8 3 .
C h a m b e r l a i n & S t r a i n , S a n A n t o n i o , T e x . , c o n s t r u c t i o n .o f w a r e h o u s e s a t F t . S a m H o u s t o n , T e x . , $ 1 5 7 , 1 3 0 .
D u n n C o n s t r u c t i o n C o . I n c . , & J o h n S . H o d g s o n C o . , B i r m i n g h a m , A l a . , c o n s t r u c t i o n a t F o r t M c C l e l l a n , A n n i s t o n , A l a . , 5 3 , 3 3 5 , 9 7 7 .
D e t r o i t I n c i n e r a t o r C o . , D e t r o i t , i n c i n e r a t o r a t F t . K n o x , K y „ $ 1 5 , 0 1 5 .
E u r e k a E l e c t r i c C o . , S a n F r a n c i s c o , l i g h t i n g s y s t e m a t M c C l e l l a n F i e l d , S a c r a m e n t o , C a l i f . , $ 2 0 4 0 .
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L a F o u n t a i n , A . A . , I n c . , H a c k e n s a c k , N . J . , h o s p i t a l g r o u p , b u i l d i n g s , F t . D I x , N . J . , $ 1 , 7 1 3 , 1 0 0 .
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L o w r y , J o h n , I n c . , N e w Y o r k , o r d n a n c e b u i l d i n g s a n d u t i l i t i e s a t P i c a t i n n y a r s e n a l , N . J . , $ 9 1 0 , 4 5 4 .
M a c n s o n s , S a n F r a n c i s c o , w ’a t e r d i s t r i b u t i o n s y s t e m a t S t o c k t o n A i r p o r t , C a l i f . , S 1 7 . 4 8 7 .
M i l l e r , A . J . , A u t o C r u i s e r C o . , B r a d e n t o n , F l a . , t r a i l e r s , $ 2 0 , 1 9 6 . 8 2 .
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$ 9 5 2 , 9 5 0 .
W a l s h C o n s t r u c t i o n C o . , L o n g I s l a n d C i t y , N . Y ., t e m p o r a r y b u i l d i n g s , C a m p E d w a r d s , F a l m o u t h , M a s s . , $ 7 , 2 4 0 , 4 6 2 . W a t t & S i n c l a i r , P a l m P e a c h , F l a . , s h o p
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C h e m i c a l W a r f a r e S e r v i c e A w a r d s A m e r i c a n T y p e F o u n d e r s S a l e s , C o r p -
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B l a w - K n o x C o . , P i t t s b u r g h , d i s p o s a l r e a c t o r , $ 4 4 1 6 .
C o n n e r y C o n s t r u c t i o n C o . , P h i l a d e l p h i a , t a n k s , h o p p e r s , $ 1 5 7 5 .
C r o w n C a n C o . , P h i l a d e l p h i a , c h e m i c a l c o n t a i n e r s , $ 7 1 , 3 5 4 . 6 0 .
