E D IT O R IA L STAFF E . L . S h a n e r E ditor-in-C hief E. C. K R E U T Z B E R O
Editor
W m . M. R o o n e y I r w i n H . S u cn News Editor Engineering Editor
J. D. K n o x G u y Hubrard Steel Plant Editor M achine Tool Editor
D o n S . C a d o t A rt Editor
A S S O C IA T E E D IT O R S G. H . M a n l o v e , W . J. C a m p b e l l G. W . B i r d s a l l , F . R . B r i g g s , D . B . W i l k i n
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The M a g a z i n e o f M e t a l w o r k i n g a n d M e t a l p r o d u c i n g
V ol. 116, N o. 21 M a y 21, 1945
--- N EW S---
R econversion P a tte rn for Period O ne E volving ... 7 7
P rogressive E asin g of M anpow er C ontrols to V -J D ay E x p ected ... 80
R econversion P ricing D esigned T o E n co u rag e O u tp u t, P re v e n t Inflation . . 81
Steel P ro d u cts Shipm ents in M arch H eav iest of Y ear to D a te ... 82
S h o rter M o n th R eflected in 400,000-T on D ro p in S teel P r o d u c t i o n 83 E asin g of M ach in e Tool C ontrols F acilitates E conom ic A djustm ents . . . . 84
M ill G uides a n d Rolls D iscussed b y S teel E ngineers a t M eetin g ... 85
P ublic N eeds T o Be A cq u ain te d w ith th e F a c ts on R enegotiation ... 90
W est’s $3 Billion W a r E xpansion a n d F u tu r e U tilizatio n A nalyzed ... 99
Irv in g S. O lds H its C om pulsory P ay G u a ra n te e ... 104
--- TECHNICAL---
In creased A pplications Seen fo r In d u stria l B rushes ... 106M arked im p ro vem en ts n o ted in design a n d m a nufacture D ecarb u rizatio n in H a rd e n in g “M oly” H acksaw B lades A voided ... 109
Im p ro v e d p ro tective atm osphere u n a ffe c te d b y h ig h heat C leaning F o rgings fo r M agnaflux In sp ectio n ... I l l M eth o d provides clean and b right surface free o f scale Special D esigns, A ttach m en ts E n h a n c e U sefulness of P o w er T r u c k s 112 E nlarged carrying capacity, greater pow er broaden scope o f w ork O xyacetylene P ressure W eld in g P resents Special A dvantages ... 115
A d a p ta b ility to high-carbon a nd alloy steels d em onstrated S h o rt-C ircu it C u rren ts in In d u stria l P lants ... 124
A ccu ra te analysis o f electrical fa u lts protects plant, personnel U nusual M achining O perations R e q u ire d in M aking J e t E n g in es ... 128
Special fixtures, unusual tech n iq u es used fo r finishing parts A lloying M agnesium a t D o w C hem ical C o ... 1 3 0 S trength, durability a n d d u c tility im p a rted b y alloys
FEATURES
As th e E d ito r V iew s th e N ew s . . 73 M en of In d u stry ... . . 96P resent, P a st a n d P en d in g ... 79 O b itu aries ... . . 98
P ostw ar Preview s ... 85 W in g T ips ... . . 1 0 0 W indow s of W ashington ... 8 6 In d u stria l E q u ip m e n t ... . 136
W PB -O PA O rders ... . 89 T h e B usiness T re n d ... . . 172
M irrors of M otordom ... . 93 C onstruction and E n te rp rise . . . . 2 0 0
--- MARKETS---
H ig h Steel O u tp u t Seen fo r M onths In to F u tu r e ... 175M ark et Prices an d C om posites ...,... 176
I n d e x to a d v e r t i s e r s ... 206
1... . . . . | n g m , . ^ _
N E X T W E E K . . ,
C o n to u r H a rd e n in g of Steel G ear T eeth
E lectro n ic D rives on W in d in g R eels fo r M etal Strip D eterm in in g E le c tric F u rn a c e C apacity
F racto g rap h y — N ew M etallu rg ical R esearch Tool Flam e C u ttin g M achine G u id ed b y P lastic R ecords
-t o meet your special or specific requirements
W E L C O Collector Rings are m ade in all sizes to carry currents of 5 to 200 amperes. Two to twelve rings can be furnished on one stub— complete with brush holders, brushes, studs for supporting the brush holders and stud rings.
Write For Full Details
THE B. A. WESCHE ELECTRIC COMPANY
DEPT. SS 1628-6 VIN E S T R E E T CINCINNATI 10, OHIO
AS THE EDITOR VIEWS THE NEWS
May 21, 1945
What Do You Think?
A committee headed by Senator O’Mahoney asked 100 steel companies this question: “What level of postwar steel demand do you anticipate?” Inland Steel Co.
replied th at it estimates an average demand for ingot steel of approximately 54,000,000 net tons for the 30-year period between 1945 and 1975.
This figure affords a basis for fascinating study and speculation. Is it too high, too low or about right?
First, how does it compare with past demand? The 30-year period from 1910 to 1939, inclusive, should provide a fair indication of pre-War II demand. It includes the high output of World War I but this is offset by the abnormally low output of the early thirties. During these 30 years, the production of steel ingots averaged about 41,000,000 net tons annually. Against this average, Inland’s estimate of 54,000,000 tons for 30 postwar years represents an increase of 32 per cent or 13,000,000 tons annually. This makes the Inland estimate look reasonable.
However, if one charts a curve of steel ingot production from 1895 to 1944 and then draws a straight trend line midway between its peak’s and valleys, he will find that the trend line has risen a little more than 50,000,000 tons in 50 years. Then if he extends this line at the rate of an increase of a million tons a year through 1974, it traces a production of steel ingots which averages more than 70,000,000 tons annually for the 1945-1974 period. Under this test, Inland’s estimated average of 54,000,000 tons seems too low.
But how about population? Dividing average population from 1910 through 1939 into average production in that period, one gets a per capita consumption of about 735 pounds annually. Divide average projected population from 1945 through 1974 into Inland’s estimated average demand of 54,000,000 tons and the answer is about 770 pounds per capita per year. This increase of only 35 pounds makes the Inland figure appear to be conservative.
However there are other factors to be considered. The quality of steel is being improved steadily. Alloy steel is being used more extensively. Better design permits steel to be used more effectively. Marked advances in forming, heat treating, process
ing and machining permit steel to be used more economically. In many ways, tech
nological progress may make it possible for 54,000,000 tons of ingots in the future to render the service which required 60,000,000 tons or more in the past.
These intangibles make Inland’s estimate seem highly plausible.
CO-ORDINATE, SIMPLIFY!
From nowon representatives of industry and federal agencies will encounter a running barrage of debate regard
ing government controls. OPA has announced pric
ing policies for the transition period as follows: 1.
Continued prevention of inflation. 2. Make pos
sible full production. 3. Encourage full employ
ment. 4. Relax controls over prices as the dangers of inflation fade.
Almost everybody will agree that this statement of policy is sound, yet OPA administrators will have to be expert tight-rope walkers if they are to carry
(O V ER )
out these policies satisfactorily. If they set prices too high, inflation may get out of hand and recon
version will be disrupted. If they set prices too low they will discourage production and cause unneces
sary unemployment.
Also, OPA action alone cannot be effective; there must be co-ordination between the decisions of OPA and those of WLEy, WPB and WMC. N eed of this co-ordination is seen in the case of machine tools.
WPB has granted priority ratings so that certain manufacturers can get needed tools, but in order to deliver them, in time, builders need relief from
73
A S THE E D I T O R V I E W S THE N E W S
other agencies. Unwinding the snarl of federal con
trols will be difficult at best, but the job can be made easier if efforts to co-ordinate and simplify them can go hand in hand with a program of gradu
al abandonment. — pp. 77, 80, 84
o o a
STAMP OF APPROVAL:
Experience of industrial corporations with renegotiation of contracts has been so varied that it is impossible at this time to generalize as to the success or failure of this method of controlling profits. Officers of some companies which have gone through renego
tiation think they have received a fair deal, others are convinced they have been gypped.
A consultant who has studied this problem thor
oughly believes that manufacturers subjected to re
negotiation can capitalize their experience. As one official expressed it, “Renegotiation is an official stamp of approval. It means a great deal now; it may mean even more at some future date.”
Many laymen and a considerable number of in
dustrial employes still believe that war contractors are making unduly large profits on war work. The consultant points out that renegotiation affords a company a sound basis of fact with which to combat this misconception. This may suggest to some manufacturers an idea for public and employe rela
tions which might prove to be highly advantageous.
— p. 90
o o o
TOOLS FOR SECURITY:
At a regional meeting of the National Machine Tool Builders’Association, William P. Kirk made a point concern
ing government-owned surplus machine tools which deserves careful consideration. H e proposes that the government retain intact a substantial supply of machine tools of the types particularly needed for the production of war materiel.
“Machine tools cannot be made overnight,” said Mr. Kirk. “We recall those days early in this war when w e were charged with being the bottleneck to war production. W e broke our necks to break that bottleneck. Fortunately we were given time to do that. The aggressor struck first some place else. What if he had struck here first?”
This line of thinking is sound and timely. In World War I and II this nation had time for prepa
ration. If there is a World War H I, it is almost certain we will have no time to prepare. W e should be ready with machines and munitions. — p.84
SIGNS OF THE TIMES
; United States commercial airlines have rung up a superb war record. On war routes overseas and at home their achievements include (p. 100) 2,696,316,089 passenger miles, 707,052,264 ton miles, 308,919,761 transport miles and 1,828,007 transport hours flown . . . . Up to V-E D ay federal-owned property valued at $1,575,000,000 had been declared sur
plus. Sales have reduced this to a present inventory of about $1,300,000,000 (p. 86), over half of which consists of 14,000 unsalable damaged and obsolete planes . . . . Now that the war in Europe is over, it is possible to reveal how the United States gov
ernment, in order to get around a technicality, called upon United States Steel Corp. to buy a
$36,000,000 accumulation of surplus ordnance from United States arsenals (p. 94) and to sell it to England and France. The Corporation bought it and sold it to our Allies at the purchase price at the critical time of the evacuation from Dunkerque . . . . New wage schedules in plants reconverting to civilian production must be filed with WLB before or when installed, but approval by WLB will not be necessary before the rates go into effect. If adjustment of the rates is ordered by WLB after it has examined the schedules (p. 80) such adjust
ment will not be retroactive. At last, here is one thing that is not retroactive! . . . . WPB Chairman Krug estimates about 2,500,000 tons of steel will be released from direct war use in the third quarter.
Apparently July 1 will be an important date in reconversion (p. 77); CMP will be open-ended at that time . . . . July 1 also is the date when WMC hopes to have reclassified all labor areas (p. 80) and after which relaxation of manpower checks on new civilian production can be expected . . . . Steel ingot output in April was 7,308,579 tons (p. 83), a drop of 400,000 tons from March production due to the shorter month and coal shortage . . . . American Iron & Steel Institute has brought out a new quarterly magazine entitled “Steelways” (p. 82) which will deal with uses of steel . . . . An official of Ford Motor Co. has hinted that the company may eliminate the traditional yearly model change
over (p. 93) in favor of a continuous system of introducing improvements as they are developed.
E D IT O R -IN -C H IE F
74 / T E E L
Carloading and prompt dispatch of cars from the mill are im portant to Inland because th ey are im portant to Inland’s customers. T hese round-the- clock jobs have been intensively studied, resulting in improved packaging and carloading despite full rolling schedules, shortage o f some types o f railroad equipment, scarcity o f bracing, etc.
When an order is ready for shipment, cars of suitable types are ordered into the mill. Cars to he loaded with the product o f one mill are spotted at that mill. When carloads are composed of products from two or more mills, loading is speeded by spotting a car at one mill and trucking
the products o f other mills to th e car. Throughout each hour o f the twenty-four, expediters keep steel flowing to loading points and as soon as cars are loaded, th ey are switched to the railroad yard where th ey are assembled for quick dispatch to our customers.
We invite you to confer with an Inland ship
p in g s p e c ia lis t. H e w ill g la d ly s tu d y you r loading, unloading, and shipping problems, giving you all available assistance under the conditions of war, and helping you plan for speedier and more convenient delivery o f steel for use in tim e of peace.
Bars • Floor Plate * Piling • Plates • Rails • Reinforcing Bars « Sheets • Strip Structurais • Tin Plate • Tank Accessories
I N L A N D STEEL C O M P A N Y
3 8 S. D e a rb o rn St., C h ic a g o 3, Illin o is
SALES O FFIC ES: Cincinnati • Detroit • Indianapolis • Kansas City • Milwaukee • New York • St. Louis • St. Paul
R V E R S O R S Ï E E I
What’s the Cure?
Ever feel lik e the fe llo w a b o v e —as th o u g h y o u ’d h ave to w a lk sid e w a y s to k eep from flying? A n d a ll because o f difficulty in g et
tin g en o u g h o f a certain k in d o f steel to tid e y ou over.
As a m atter o f fact in th e se hectic tim es th is frantic co n d itio n is n ot a lw a y s im m e
d ia tely curable. H o w ev e r, it ’s a m a z in g h o w m uch r e lie f can often be secured in a m atter o f m in u tes by c a llin g R y e rso n .
W e ’re n o t i n f a l l i b l e o f c o u r s e . F o r , th o u g h w e are s h ip p in g trem en d ou s to n n a g es to w a r p la n ts and critical in d u stries from a ll e le v e n R y e rso n p la n ts —ou r stock s
are n ot a lw a y s b alan ced from a size sta n d p oin t.
But ou r stock s are s till th e n a tio n ’s la r g est. O ur p e r so n n e l is h ig h ly tra in ed and exp erien ced . O ur tech n ica l staff is ex c ep t io n a lly sk illed . A n d a ll d u rin g our 103 years o f b u sin ess, w e ’v e b een m e e tin g and o v e r c o m in g critical situ atio n s.
So if yo u find y o u r se lf ev e n r e m o te ly a p p r o a c h in g th e c o n d itio n o f th e h a rassed buyer a b o v e, rem em b er th is: P h o n e R yer
s o n —an d from ou r en d o f th e te le p h o n e w e ’ll do ev e r y th in g w ith in ou r p o w e r to tak e care o f you.
J O S E P H T. R Y E R S O N & S O N , I N C . S t e e l-S e rv ic e P la n t s at: C h ic a g o , M i l w a u k e e , D etroit, St. L o u is , C in c in n a t i, C le v e la n d , P itt s b u r g h , P h il a d e lp h ia , B u ffa lo , N e w Y o rk , B o s t o n
76 / ■ T E E L
R E C O N V E R S I O N
T h e w ar goes on! T h ese N a v y a nd Coast G uard-m anned craft are silhouetted, against a d a zzlin g sea and an om inous sky as th e y push tow ard Japanese shores. N E A photo
Pattern for Period One Evolving
M a n y w artim e restrictions revoked or m o difie d to open p a th fo r return to lim ite d civilian production. Steel industry to spend $200 m illion fo r re
converting facilities. A uto industry expects to b u ild 200,000 passenger cars in last h a lf. M a te ria ls shortages m ay be lim itin g fa c to r
G E N E R A L policies w hich w ill govern partial reconversion to civilian goods m anufacture u n til th e final d e fe a t of Japan now h av e b e e n o u tlin ed b y g ov
ernm ent authorities.
Industrialists h av e b e e n told w h a t th ey may expect in th e w ay of reconversion pricing, w age controls, m an p o w er checks and restrictions on m aterials.
W ar contracts are b e in g p a re d dow n, although a t a m ild er ra te th an m any, including W a r P ro d u ctio n B oard p lan ners, h a d an ticip ated . A larg e n u m b er of controls over m aterials a n d restric
tions on th e p ro d u ctio n of p eacetim e items h av e b een rev o k ed a n d a b o u t 1 0 0 more are scheduled to be lifted w ithin the next tw o m onths.
Steps h av e b e e n tak en to h e lp plants sw itching over to civilian goods obtain tools an d m aterials. T h e C ontrolled M a
terials P lan w ill be o p en -en d ed Ju ly 1 and m an u factu rers m ay p lace o rders for the controlled item s— steel, alum inum and cop p er— n o w fo r Ju ly delivery.
These m oves do n o t m ean th a t th e w ay for reconversion is open. M any ob
stacles m u st b e overcom e b efo re volum e o u tp u t of p eacetim e item s can start.
M any m aterials w ill co n tin u e in short supply. M achine tool backlogs now a v erag e a b o u t 8 m onths a n d deliveries of som e types, of course, w ill re q u ire m uch longer. B ottlenecks w ill d ev elo p in som e com ponents an d p arts. A nd the policies e n u n c ia te d b y th e g overnm ent agencies a re only b ro a d outlines; delays are likely w hen th e m a n u factu rer a tte m p ts to apply these generalities to his ow n p a rtic u la r case.
P rep aratio n fo r the resu m p tio n of peacetim e m an u factu re, how ever, is g e t
tin g u n d e r w ay an d m an y com panies are looking fo rw ard to Ju ly as th e actual startin g point. July I is th e d a te for o pen e n d in g the C M P, fu rth e r relaxation of m an p o w er controls, b eg in n in g of spe
cial p riority assistance to sm all p ro d u c
ers.
Sufficient steel w ill b e available to ta k e 'c a r e of req u irem en ts fo r th e w ar against Jap an , provide m aterial fo r w ar- su p p o rtin g industries a n d for reconver
sion, steel p roducers h av e prom ised.
J. A. K rug, W a r P roduction Board chairm an, estim ates a b o u t 2,500,000 tons of steel w ill b e released from d ire c t w ar use in th e th ird q u arter. T w o m illion tons of th is w ould b e assigned to essen
tial civilian pro d u ctio n w hile th e rem ain in g h a lf m illion tons w ould b e “free”
steel to b e used in m aking w ashing m achines, v acuum cleaners, typew riters, sm aller electrical g ad g ets a n d o th e r co n sum er goods w ith o u t control.
Steel sh eet w ill b e th e b ig g est w orry d u rin g th e th ird q u a rte r an d w ill continue tig h t longer th an steel generally. Sheets w ill b e in h eavy d em an d as soon as p ro d uction of civilian item s such as a u to m obiles, refrigerators, w ashing m achines an d sim ilar goods, gets u n d e r w ay. M any of th e larg e continuous sh eet m ills w ere converted to p la te m ills early in th e w ar a n d som e tim e w ill b e req u ired to co n v e rt them b ack to sh eet-strip mills.
H ow ever, som e m ills alread y h av e b e e n reco n v erted a n d th e steel industry is p lan n in g to sp en d $ 2 0 0 m illion for reco n v ertin g its facilities to h a n d le civil
ian d em an d , according to the A m erican
May .21, 1945
77
R E C O N V E R S I O N
Iro n & Steel In stitu te. T his does not include expenditures o f com panies p la n ning to bro ad en th e ir operations.
A good p a rt of th e $200 m illion w ill be sp e n t on reconverting the sh eet-strip mills.
T h e steel in d u stry ’s estim ated cost of reconversion is less th a n 1 0 p e r cent o f th e to tal sp en t since 1940 by the in du stry a n d th e g overnm ent for expansion fo r w ar p ro d u ctio n . In the p a st 4Y2 years the steel com panies h ave sp en t
$ 1 2 1 0 m illion of th e ir own funds w hile the g overnm ent has p ro v id ed $1095 m illion for w ar expansion.
W hile cancellations o f steel orders have been increasing since V -E D ay, they have not y e t reach ed the volum e an ticip ated by leaders in tire industry. C ancellations of w ar orders are expected to increase as th e y ear progresses an d a t least one large p ro d u cer is taking orders fo r steel fo r civilian goods w ith no priorities for delivery a fte r July 1. T his p ro d u c e r is not m aking an y delivery prom ises, b u t is taking orders on good faith an d w ill m ake delivery as early as possible. A n
o th e r p ro d u c e r is m aking ingots to be used fo r rolling autom obile steel, a l
though this has n o t y e t b een scheduled for rolling.
H o w m uch civilian goods pro d u ctio n w ill be possible this y ear w ill dep en d to larg e extent on cutbacks in th e w ar pro d u ctio n program an d th e m an p o w er, facilities an d m aterials th u s freed . H o w ever, H enry P. N elson, au to reco n v er
sion ch ief fo r the W PB , estim ates th a t m ore th a n 2 0 0 ,0 0 0 new autom obiles will be b u ilt th is y ear a n d th a t 400,000 will be p ro d u c e d in the first q u a rte r of 1946.
R estriction on th e p ro d u ctio n of au to m obile rep lacem en t p arts w ill b e lifted im m ediately a n d efforts w ill b e m ade to increase o u tp u t of civilian trucks, w hile m ain tain in g m ilitary tru c k p ro ductio n a t hig h levels.
H o p e R eq u irem en ts W ill D ecrease
■' C utbacks in th e m ilita ry program to d a t e . h av e resu lted in a th ird q u a rte r procu rem en t schedule o f $13,766 m illion, co m p ared w ith a n estim ated schedule of
$13,525 m illion. W PB officials are h o p e
fu l th a t fu rth e r survey of req u irem en ts m ay low er th e cu rren tly sch ed u led th ird q u a rte r program .
Military' pro d u ctio n in th e first three m onths this y ear am o u n ted to $14,452 m illion a n d o u tp u t d u rin g the second q u a rte r is expected to ru n a b o u t $14,375 m illion.
C o n tra c t cancellations so fa r since V -E D ay h ave been m ore in the n a tu re of a trickle ra th e r than the flood w hich was expected in som e q u arters.
T erm in atio n by th e W ar D e p a rtm e n t o f its c o n tract w ith S tu d eb ak er C orp. for pro d u ctio n of B-17 F ly in g F o rtress e n gines a n d p arts w ill resu lt in a com p le te shutdow n of the com pany’s avia
tion p la n t a t C hicago. A pproxim ately 26 0 0 w orkers w ill b e laid off a t C h i
cago a n d an ad d itio n al 5000 w ill ire affected a t th e F t. W ay n e an d South
B end, In d ., p lan ts of S tu d eb ak er C orp.
B uick A viation E n g in e p la n t of G en
eral M otors Corp. a t M elrose P ark , 111., is still laying off 4000 em ployes as a resu lt of cancellation of orders fo r B-24 L ib erato rs.
Pressed Steel C ar Co., C hicago, is read ju stin g schedules to accom m odate a substantial reduction in its tan k o u tp u t.
C om pany’s cu tb ack is rep o rted to involve 1500 to 2000 tanks, th e eq u iv alen t of 3 j/2 to
4
V2
m o n th s’ output.Ind icatio n s th a t autom otive com panies are expecting cancellations of tan k p ro gram s is seen in the layoff of 1 1 0 0 w o rk ers a t G eneral M otors’ F is h e r Body p lan t No. 1 in F lin t, M ich., a n d 200 a t th e F ish er G rand B lanc, M ich., p la n t an d also fo r C hrysler a n d o th er plants. T h e im m inency of such cutbacks has in ten si
fied p ressure on W ar M anpow er C om mission officials to have D e tro it reclassi
fied as a g ro u p 3 lab o r area. T h is w ould m ean th a t m anpow er controls w ould be optional a t th e discretion of th e area director, in stead of m an d ato ry as a t p res
en t u n d e r the gro u p 2 classification.
M ost of th e pressure has b e e n com ing from th e U nited A utom obile W orkers- C IO , w hose leaders co n ten d th e a re a ’s p ro b lem already is one of unem ploym ent ra th e r th an of lab o r shortage.
18,500 Jobs A vailable a t D etro it E d w a rd L. C ushm an, D e tro it area W M C director, m aintains h e still has 18,500 unfilled job openings, of w hich only 3000 a re fo r com m on lab o r and the rem ain d er fo r 700 different types of skilled an d sem iskilled w orkers.
T h e F lin t a n d M uskegon, M ich., areas h av e b e e n reclassified from gro u p 2 to g ro u p 3 areas. Chiefly responsible w ere th e F ish er layoffs a t F lin t an d layoffs by C o n tin en tal M otors C orp. a n d B org-W ar- n e r’s N o rg e D ivision a t M uskegon.
O perations o f th e G ary, In d ., arm or p la te p la n t of C arnegie-U linois Steel Corp. w ere su sp en d ed M ay 14 an d 500 of th e 570 rem aining em ployes are b e in g laid off. E m ployes w ere to ld to take vacations last w eek a n d to re p o rt again M ay 21. If sufficient orders are receiv ed in th e m eantim e, th e p lan t w ill b e p u t into operation. O therw ise, the m en w ill b e released to seek em ploy
m en t in o th e r plants.
T h e W a r P roduction B oard has b een
keep in g its prom ise to revoke or modify restrictions on the use of m aterials and facilities follow ing the fall of Germany.
O ne of the m ost im p o rtan t of these was th e revocation M ay 16 of M -126, the conservation ord er issued in M ay, 1942, to stop th e use of iron a n d steel in sev
eral h u n d re d less essential civilian ar
ticles. T his b la n k e t o rd e r c u t com
p letely across th e civilian econom y, elim
in atin g the use of steel in item s ranging from adv ertisin g accessories to wine coolers.
A t tire sam e tim e, due to requirem ents of th e arm ed services fo r alloys used in the p ro d u ctio n o f stainless steel, con
trols of stainless steel form erly exercised th ro u g h M -126 a n d o th er lim itation and conservation orders h av e b e e n m ain
tain ed th ro u g h issuance of D irection 2 to M -21. T h e n ew d irection provides stainless steel m ay n o t be processed or fa b ric a te d except:
1. O n an au th o rized C o n tro lled M ate
rials Plan p ro d u ctio n schedule.
2. W h en o b tain ed from consum ers’
idle an d excess inventories as stipulated u n d er the provisions of P riorities R egu
lation N o. 13.
3. W hen th e m etal w as in the con
sum er’s p la n t p rio r to M ay 12, 1945.
4. W h en o b tain ed from steel w are
houses as p rovided in C M P R egulation 4.
W hile m any lim itation orders have been revoked, the W PB S teel Division has w arn ed consum ers to check with orders form erly cross referen ced w ith M -126 to ascertain w h a t lim itations still apply.
A b o u t h a lf of th e lim itation, conser
v ation a n d o th e r orders h av e b een or soon w ill be revoked.
R ecen t R evocation A ctions R ecen t revocation actions are those rem oving th e controls on th e m anufac
tu re of ty p ew riters, 3 5 -m illim eter mo
tion p ictu re p rojection eq u ip m en t, com
m ercial lau n d ry dry cleaning an d tailor pressing e q u ip m en t, scale, floor sanding eq u ip m en t, p h o to g rap h ic e q u ip m en t, of
fice m achinery, m an y types of heating eq u ip m en t, com m ercial cooking and p la te w arm ing eq u ip m en t, u tility con
struction u p to $25,000, an d m any other item s (see p ag e 89).
G iving th e g reen lig h t to certain civil
ian pro d u ctio n has p ro m p ted W PB to
U nited States su p p lies are u nloaded a t Borneo as a n ew drive starts against th e Japanese. A portable steel pier facilitates th e m o v e m e n t o f veh icles and e q u ip
m e n t fro m ship to beaches. N E A photo
78 / ■ T E E L
R E C O N V E R S I O N
set u p certain n ew reconversion controls.
While W PB is p re p a re d to relax its rules governing tire acquisition of m aterials as rapidly as the su pply perm its, it w ill move to p re v e n t h oarding, p re-em p tiv e buying or b u y in g ah ead of n e e d of p ro duction.
U nder Priorities R eg u latio n 1 and C ontrolled M aterials P lan R egulation 2, a m an u factu rer in anticipation of starting or resum ing civilian pro d u ctio n is p e r
m itted to receive the m inim um a m o u n t of m aterial n eed ed fo r th e first 30 days of p roduction, p rovided no priorities as
sistance o r allo tm en t sym bol is used to get the m aterial. T h e b o ard re ite ra te d that its inventory regulations lim iting receipts of m aterials still ap p ly w h e th e r or not th e m aterial is a c q u ired w ith p ri
ority assistance or w h e th e r it is fo r Civil
ian or w ar production.
In o th e r w ords, m aterial m ust b e d i
verted first to fill rated orders b efo re it can go to a m an u factu rer w ith o u t a priority ratin g . W h e n a m a n u fa c tu re r’s contract has b een re d u ced o r canceled, the n ew inventory reg u latio n perm its him to a ccep t fu rth e r deliveries of p arts or com ponents a lread y p ro d u ced or in p ro duction a t the tim e of th e cu tb ack if the m anufacturer w ho supplies him w ith such products o r com ponents can n o t use th e particular item s to fill o th e r orders on his books.
As ind u stry m oved back to w ard a civilian econom y th e first an n o u n ce
ments of new p ro d u cts a n d p o stw ar ex
pansion of facilities fo r peacetim e p ro duction b e g a n to ap p ear. A m ong these were th e a n n o u n cem en t b y G en eral M o
tors C orp. th a t its C h ev ro let D ivision will pro d u ce a n ew lig h tw eig h t an d m ore economical car. T h e p ro ject is still in the idea stage.
In tern atio n al H arv ester Co. last w eek announced it w ill sp en d $ 1 0 0 m illion or m ore fo r n ew fa rm m achinery p lan ts when co n stru ctio n conditions p erm it.
Projects include a tra c to r p la n t on the Mississippi riv er b etw e e n A lton an d Wood R iver, 111., a n d a farm im plem ent plant a t M em phis, T en n ., a n d possibly a farm m ach in ery p la n t a n d a tracto r plant on the W est C oast. L a tin A m er
ican expansion also is b e in g considered.
Electric R an ge Production Falls Short of Program
W ar P ro d u ctio n B oard authorizations assigned fo r p ro d u ctio n o f electric ranges in second q u a rte r o f 1945 to ta l 23,372
a n d in th ird a n d fo u rth q u arters, 22,597 p e r q u a rte r. T hese com pare w ith 25,- 209 p ro d u c e d in first q u a rte r a n d 35,- 000 set u p in th e 1945 q u a rte r program . W PB is considering a p roposal to p ro vide in th e th ird q u a rte r m aterial fo r 56,- 0 0 0 ranges in add itio n to th a t n eed ed to fulfill th e q u a rte rly program .
A to tal of 567,409 non electric cook
in g stoves an d 637,506 n o n elec tric h e a t
ing stoves w as p ro d u c e d in th e first q u a r
te r of 1945.
U.S. Steel A nnual Report Show n in "M o v ie " Form
S tockholders o f d ie U n ited States S teel C orp. a t d ie ir re c e n t an n u al m eet-
ing w ere show n a m otion p ic tu re w hich translates visually th e d a ta contained in th e co rp o ratio n ’s an n u al financial report.
In a d d itio n to show ing h ow ow nership of th e corporation is h eld by h u ndreds of thousands of persons in a ll w alks of life, th e film gives an in tim ate insight into th e vast operations en tailed in pro
d u cin g steel a n d various m ateriel fo r the w ar p rogram , a n d g raphically show s the disposition of corporation incom e from sales. T h e p ictu re w as p ro d u ced w ith a v iew to sim plifying a n d tran slatin g in the m ost easily u n d ersto o d w ay the d e tailed financial an d p ro d u ctio n d a ta p ro vided in th e corporation’s form al annual rep o rt. T h e film now is b ein g show n to em ployes an d la te r w ill b e m ade avail
a b le fo r show ing to th e g en eral public.
Present, Past and Pending
a R A IL R O A D S P LA C ED O N P R O D U C T IO N URGEN CY LIST
Washington7— R ailroads, steel drum s an d pails, h av e b e e n p la c e d on th e N ational P ro d u ctio n U rgency L ist. T his places th e en tire railro ad in d u stry on a p a r w ith the m ost u rg e n t w a r production.
H CA N M A N U F A C T U R ER S' STEEL A LLO T M EN T S FROZEN
Wa shington— N o ad d itio n al steel w ill b e allocated can m an u factu rers fo r second q u a rte r, W a r P ro d u ctio n B oard officials state. T h ird q u a rte r allocations have not y e t b een decided, b u t indications are th a t th ese w ill be a d e q u a te only for pro
d u cin g cans fo r perish ab le foods a n d fo r p ro d u cts fo r th e arm ed services.
■ C H IC A G O BRID G E TO C O M P LET E LST C O N T R A C T JU N E 22
Ch ica go— C hicago B ridge & Iron Co. w ill com plete its 157th L S T a n d w ill fulfill its co n tract for construction of th ese c ra ft w h en it delivers th e last vessel Ju n e 22 from its Seneca, 111., shipyards.B G R A Y IR O N C A S T IN G D E M A N D TO C O N T IN U E H EA Y Y
Washington— P eak gray iron casting p ro d u ctio n w ill b e req u ire d fo r a consider
a b le p erio d to m e e t expanded dem ands for w ar against Japan. O u tp u t to taled 857,- 616 tons in M arch, larg est since 1941.
B STRIKE EN DS AT BETHLEHEM STEEL L A C K A W A N N A PLANT
Bu ffa lo— S trike w h ich entirely h a lte d steel pro d u ctio n an d sh arp ly cu rtailed rolling o perations a t th e B ethlehem Steel C o.’s L ack aw an n a p lan t, L ack aw an n a, N . Y., e n d e d la te last w eek.« STUDEBAKER TO BUILD $1,500,000 A U T O BO DY PLANT
So u th Ben d, In d.— Stu d e b a k e r C orp. has received governm ent ap p ro v al to erect a
$1,500,000 auto b o d y p la n t w h ich w ill rep lace certain existing capacity.
H LUKENS STEEL BLA M ES O P A FOR L O W E A R N IN G S RATE
C o a t e s v i l l e , Pa.— R o b ert W . W olcott, p re sid e n t, L u k en s S teel C o., in th e com pany’s an n u a l rep o rt, says O PA policy is responsible fo r th e relatively p oor earnings of th e com pany in th e first h alf of its 1945 fiscal year. H e b ased his opinion on O PA ’s
“p rocrastination a n d u n w a rra n te d delay” in acting up o n th e steel in d u stry ’s req u est fo r p rice relief.
■ C. D. M A R SH A L L , BETHLEHEM STEEL D IRECT O R, DIES
Pittsburgh— C. D . M arshall, 7 7, director, B ethlehem Steel C orp. an d a fo u n d e r of M cC lintic-M arshall C onstruction Co., w h ich w as a cq u ired b y B ethlehem , d ied a t his hom e in C h ester C ounty, P a., M ay 16.
■ L. E. C R E IG H T O N R ESIG N S FRO M W PB STEEL D IV IS IO N
Wa shington— L . E . C reighton, assistant d irecto r in ch arg e of alloy an d ferroalloy steel, S teel D ivision, W a r P ro d u ctio n B oard, has resigned.
■ N W LB 'S STEEL C O M M IS S IO N RULES O N W A G E DISPUTES
Wa shing ton— N atio n al W a r L a b o r B oard’s S teel Com m ission h as ru le d it w ill not h an d le disp u tes or v o lu n tary applications of overall stabilized w age rate structures su b m itted to it “piecem eal.”May 21, 1945 79
E M P L O Y M E N T
M a n p o w e r Controls To Be Relaxed
Soldiers w in n in g discharges under th e A rm y ’s p o in t system soon w ill b e aug
m e n tin g th e labor force. A b o ve, a corporal a t F ort D ix, N . / ., tries on a civilian coat to accustom h im self to his n ew civilian role after 51 m o n th s in th e A rm y.
N E A photo
F orty-eight-hour w eek in steel industry revoked. A ll la b o r areas w ill be reclassified by July J
PR O G R E S S IV E easing o f m an p o w er controls to th e end of the Jap an ese w ar w hen th ey w ill b e abolished is fore
shadow ed in events since V -E D ay.
C utbacks in w ar contracts, delays in changing ov er to th e p ro d u ctio n of civil
ian goods, and th e re tu rn of m any th o u sands of servicem en to th e lab o r force is expected to ch an g e a critical m anpow er shortage into a situation w here 2,500,000 face u n em p lo y m en t in th e next year.
T h e m an p o w er controls, n ev er p o p u lar w ith e ith e r m an ag e m en t or lab o r an d not too ab ly adm inistered, w ill becom e in
creasingly difficult to enforce as th e lab o r shortage tu rn s into a surplus. T h e W a r M an p o w er Com m ission m ay be one of th e first w ar agencies to have its w ings clip p ed . E v id en ce o f this is th e m ove o f th e H ouse A ppropriations com m ittee to c u t th e W M C b u d g e t from a proposed
$93 m illion to $62 m illion.
P au l V. M cN utt, W M C h e a d , already has an n o u n ced a program fo r th e g rad u al relaxation of controls.
By Ju ly 1 all lab o r areas in th e coun
try w ill b e reclassified. U ntil th en , m an p o w er controls in th e less critical areas (groups 3 an d 4) m ay b e lifted a t th e discretion o f th e are a directors. In th e m ore critical a reas (groups 1 an d 2) em ploym ent stabilization program s, em ploy
m en t ceilin g program s, prio rity referral fo r m ales a n d th e 4 8 -h o u r w eek w ill b e m aintained.
If u n em p lo y m en t is a p p earin g in groups 1 a n d 2 areas b efore Ju ly 1, the area directors m ay m ake use of "b la n k e t”
or open referral cards.
A fter Ju ly I som e relaxation o f m an p o w er checks on new a n d exp an d ed ci
vilian p ro d u ctio n w ill b e m ade. W hen all areas h av e b e e n reclassified on a n ew basis, all m an p o w er program s in g ro u p 2 areas w ill be m ade optional a t th e dis
cretion o f th e area m an p o w er directors.
A fter Ju ly 1, g ro u p 1 areas w ill be those in w hich m an p o w er controls are co ntinued; g ro u p 2 areas w ill be those in w hich controls are optional; a n d groups 3 an d 4 areas w ill be those in w h ich all controls w ill b e ab an d o n ed .
A p rogram is b ein g w orked o u t to cle a r th e w ay fo r p lants em ploying few er b a n 1 0 0 persons to resu m e o r expand civilian p ro d u ctio n . A sim ilar p lan is in the m aking fo r la rg e r p lants in loose la b o r areas.
E xplaining th e W M C ’s m odified tran si
tion p ro g ram b etw een n ow an d Ju ly 1, M r. M c N u tt said w orkers w ill be r e q u ire d to o b tain statem en ts of availabil
ity in groups 1 a n d 2 areas. A fter Ju ly
1, statem ents of availability w ill be n ec
essary in gro u p 1 areas an d m ay be re q u ired in g ro u p 2 areas.
T h e 48 -h o u r w eek w ill be m ain tain ed fo r establishm ents in all gro u p 1 areas w ith, as now , exem ptions fo r individual plants. In gro u p 2 areas th e 48-hour
W A G E rates in p lan ts reco n v ertin g to th e p ro d u ctio n of civilian goods are to be set by collective bargaining. T h e new rate schedules m ust b e filed w ith the W a r L a b o r B oard b efo re o r a t th e tim e th e y are installed, b u t approval b y th e W L B w ill n o t be n ecessary b efore p u t
ting th e n ew scales into effect.
T h e b o ard w ill exam ine the ra te s an d if it finds th e y are e ith e r too h ig h o r too low to conform to th e econom ic stabiliza
tion act, adjustm ents wall b e ordered.
Such adjustm ents w ill n o t b e retroactive.
T his is th e essence of W L B ’s policy on reconversion w ages as o u tlin ed b y D r.
G eorge W . T aylor, ch airm an of th e bo ard . D r. T ay lo r in a n n o u n cin g th e b o ard w as p u ttin g its chips on collective barg ain in g said th e aim w as to hasten th e process of g ettin g p lan ts w hose w ar w ork has ended into p eacetim e work.
w eek w ill be optional w ith th e areas d i
rectors.
T h e 4 8 -h o u r w eek w ill b e revoked in th e steel industry, m aking steel plants su b ject to th e sam e w ork-w eek as other p lan ts in the areas in w hich th ey are lo
cated.
In review ing w age schedules th e board has tw o d uties to p erfo rm , D r. Taylor said. O ne is to see th e re is no general raising of w ages a n d th e o th e r is to see th e re is no g en eral low ering of wages.
T h e W L B w ill continue in operation as long as th e w ar lasts, D r. T ay lo r d e clared.
“Since th e no-strike p led g e holds, a m echanism has to b e av ailab le to decide disputes, since th e y are n o t going to be d eterm in ed by econom ic force.”
P lants w hich do n o t h a v e to reconvert w ill n o t h av e to ch an g e th e ir w age sched
ules n o r file th em w ith th e b oard.
D r. T ay lo r explained th a t reco n v er
sion w ill n ecessitate n um erous changes in w age rates in p lants reconverting. An au to m ak er w ho has b e e n m ak in g tanks, fo r exam ple, w ill h a v e h a d no rate for up h o lsterers d u rin g th e w a r period.
Labor Board Places C h ip s on Collective B a rg a in in g To Fix Reconversion W a g e s
s o / T E E L
P R I C E S
Reconversion Pricing Designed To Encourage Output, Prevent Inflation
M osf civilian goods to be returned to m arket a t 1942 re ta il prices, although m anufacturers m ay be a llo w e d increases to com pensate fo r higher m aterials, parts a nd la b o r costs. Con
trols to be lifte d as in fla tio n dangers fa d e
R EC O N V E R SIO N pricing policies under w hich m ost peacetim e goods re turning to th e m ark et w ill sell a t 1942 retail prices, b u t w hich m ay provide many m an u factu rers w ith increases to com pensate fo r advances in th e costs of raw m aterials, p arts a n d labor, have been outlin ed by C h ester Bowles, price adm inistrator.
T he reconversion p ricin g problem s, Mr.
Bowles points out, centers largely in th e metal-usirig industries in the consum er- durable-goods field. In, 1941 w h en these goods w ere last in p ro d u ctio n th ey ac
counted fo r 8 'Æ p e r ce n t o f consum er expenditures. O f th e rem aining items that h av e co n tin u ed to b e available during the w ar, m ore th an 90 p e r cen t now h ave ceiling prices an d a few o th er goods or services are exem pt from price control.
" It is im p o rtan t th a t p rice control policies d u rin g th e com ing y ear enable business an d lab o r to expand p roduction of civilian goods just as rap id ly as the easing off o f w a r dem an d s m akes pos
sible. N o th in g w ill m ore surely sm other the fires of inflation th an an avalanche of civilian goods an d services,” th e OPA chieftain said.
D esigned T o M eet F o u r O bjections P ricing policies d u rin g th e transition period are b ein g d esigned to m eet four objectives:
1. C o n tin u ed p rev en tio n of inflation.
Nearly h alf th e inflationary p rice rise of the last w ar cam e a fte r th e arm istice.
OPA officials co n ten d inflationary p res
sures now are vastly g re a te r th an in 1919 and th a t w e are en terin g one o f th e m ost dangerous periods of th e em ergency.
2. M ake possible full p roduction.
Prices w ill n o t b e allo w ed to stan d in the way of m an u factu rers anxious to m ake products fo r w hich th e p u b lic is w aiting.
3. E n co u rag e fu ll em ploym ent.
4. R elaxation of controls ov er prices as the dangers of inflation fade.
OPA view s th e accom plishm ent of these objectives as an exceedingly difficult task. If prices are set too low , p ro d u c tion will b e restricted w ith re su lta n t u n em ploym ent. If prices are set too high, inflation w ill resu lt an d rap id an d orderly reconversion w ill b e d isru p ted . If OPA is too slow in fixing reconversion prices, business m en w ill be d iscouraged a n d u n certain.
T he p rice agency’s aim w ill b e to create a flexible program th a t w ill p e r
m it q u ick decisions, as m any as possible in its field offices.
T h e m a n u factu rer tu rn in g from th e p ro d u ctio n o f w ar m aterials to p e a c e tim e p ro d u cts m ay face one or m ore of th e follow ing fo u r pricing problem s:
1. H o w to p rice p roducts h e m ade
N EW P R IC E SC H E D U LE
N ew p rice schedule on carbon steel p ro d u cts is expected to b e ann o u n ced b y th e O ffice of Price A dm inistration no la te r th an M ay 23. W hile official w ord is lacking, it is understo o d increases, in clu d ing in terim advances allow ed in Jan u ary , w ill b e effected ranging from .$2 to $7 p e r ton on th e v ari
ous p ro d u cts. A n u m b e r of p ro d u cts on w hich no interim p rice re lief w as g ra n te d has b een a d d e d to th e list, it is said. E ffective d a te of th e n e w sch ed u le w as re
p o rte d to b e M ay 24.
I t w as rep o rted in th e trad e, b u t lack in g official confirm ation, th a t O PA h ad reco m m en d ed th e follow ing p ro d u c t increases: Sem i
finished steel $ 2 p e r to n ; tu b e rou n d s an d billets $4; p lates $2;
h eavy rails $3; lig h t rails $5; tie p lates $3; b ars $2; w ire rods $3;
m an u factu rers w ire $3; nails an d staples $7; b a rb e d w ire $2; b ale ties $7; enam eling an d electrical sheets $2; fo rm ed roofing an d sid ing $2; galvanized sheets $4; hot- ro lled sheets $2; an d spikes $5.
b efo re th e w ar an d w hich o th er m a n u factu rers h av e co n tin u ed to p roduce th ro u g h th e w ar.
2. H ow . to p rice p ro d u cts th a t h e m ade b efo re th e w ar, b u t w hich h ave been o u t of p ro d u ctio n durin g th e em ergency.
3. H o w to p rice new m odels of the sam e p ro d u cts he w as m aking w h en h e c o n v erted to w a r work.
4. H ow to p rice pro d u cts h e h a d not b e e n m aking befo re the w ar.
T h e fo u rth pro b lem , prices fo r p roducts b ein g m a d e fo r th e first tim e, is one w ith w h ich OPA has b e e n dealing th ro u g h o u t tire w ar. In this case the m a n u factu rer m u st apply to OPA for ceiling prices in line w ith those of its com petitors fo r th e m ost n early com p arab le p ro d u cts.
In situations w h ere th e m an u factu rer is reconverting to th e sam e m odels he p ro d u ced befo re th e w ar, p rice ceilings already exist— usually a t th e M arch, 1942 level. Provisions are in clu d ed in th e O PA program for obtaining increases w h ere m aterial a n d lab o r costs have in
creased.
W h e n the m an u factu rer is com ing o u t w ith n e w m odels, n ew ceilings m ust be calculated. T h is w ill b e done according to p ricin g m ethods w hich soon w ill b e is
su ed in d etail b y OPA. P rio r approval of th ese prices b y OPA w ill n o t b e re q u ire d b u t th e ceilings fo r th e new m odels c alc u lated in this w ay m ust be filed w ith OPA a sh o rt tim e b efore the m a n u factu rer b eg in s to sell them .
A vailability of existing ceiling prices a n d of autom atic p ricin g m ethods m eans th a t app licatio n to OPA w ill seldom be necessary except w h ere an ind u stry or an individual firm is seeking an increase in th e level of its ceiling prices. OPA p lan s to co n cen trate its efforts on the problem s of those in d u stries an d com panies w h ich believe they w ill b e u n ab le to p ro d u c e u n d e r the existing ceilings.
In d u stry -w id e adjustm ents fo r p roducts w hich h ave b een o u t of p roduction d u rin g th e w ar pose a difficult p roblem b ecau se of a lack of actu al, c u rre n t op er
atin g experience fo r d e term in in g w hat p ro d u ctio n cost w ill be. P roduction costs in th e initial stages of reconversion w ill u n d erg o a tem p o rary b u lg e as a re s u lt of low volum e an d changeover p roblem s, a n d these h ig h in itial costs w ill n o t b e used b y O PA in d eterm ining ceiling prices.
M any Im p o rta n t C hanges O ccu rred H ow ever, m any im p o rtan t changes in costs h a v e o ccurred since th ese goods w ere last p ro d u ced . O ffsetting these increases in p ro d u ctio n costs m ay b e a h u g e p e n tu p d em an d inviting a high volum e of p ro d u ctio n an d increased p ro d u ctiv ity from m en an d facilities th ro u g h experience g ain ed d u rin g th e w ar.
“I f a reco n v ertin g in d u stry req u ests us to re-exam ine its prices, w e w ill start w ith its costs and prices in th e last perio d of n o rm al p ro d u ctio n — usually 1941 or som e p a rt of it. W e w ill ta k e those costs an d ad ju st th em u p w a rd fo r tw o factors— first, law fu l increases in m a terials an d p arts prices, a n d second, la w fu l increases u p to th is tim e in basic w ag e-rate schedules o f facto ry w orkers.
T o th e 1941 costs so ad ju sted , w e w ill a d d in p lace of th e 1941 profit m argins th e m ore n early rep resen tativ e p e a c e tim e m argin received in 1936-1939.
“T h e excess of th e resu ltin g figure over 1941 prices w ill b e expressed in term s o f an in d u stry -w id e ‘increase facto r.’ T his w ill b e a p e rc e n ta g e figure b y w hich an y m a n u fa c tu re r in th e in d u stry m ay increase his 1941 price or prices. H e w ill th en com pare th e result w ith his existing ceiling p rice (w hich is usually his 1942 price). If th e 1941
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