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OFFICIAL WEEKLY BULLETIN OF DEFENSE AGENCIES IN THE OFFICE FOR EMERGENCY MANAGEMENT
WASHINGTON, D. C. SEPTEMBER 23, 1941 VOLUME 2, NUMBER 38
DEFENSE PROGRESSMANPOWERUnited States Army, Sept. 18 1,597,810Navy and Marine Corps, Sept. 1— 352, 678Nonagrlcultural workers, July.— 89,241,000Percent increase since June 1940. 10.8
Bixteen defense Industries, July. 2, 544, 000Percent increase since June 1940. 53.
8
FINANCEJant 1940-Stptanber 15. 1941 (Preliminary-)
Authorized program $58, 536, 000, 000Army 24, 607. 000, 000Navy 16, 978, 0Q0, 000Other agencies 14,961,000,000
PRODUCTIONJuly 1940-Auiuit 31. 1941 (Eitimalti)
Paid on contracts $7,272,000,000Military aircraft in August 1, 854Combat vessels in August 2
Merchant ships in August 8
Wuk ended September 13
Significant defense strikes -'"*« Wmkmin progress during week 7 6,635
Number settled 1 1,800
INDUSTRIAL FACILITIESIn the United States financed
by the Federal Governmentand Great Britian*3-month
TOTALS
JUNEJULY I
AUG.1940
: This figure Includes
r British commitment*
i previous to June 1940
$110,000,000
$738,000,000
1941 $790,000*00
$716,000,000
JUNE fi^v^JULY F3tf^lr3AUG.
$14*0.000,000
* Each disc=$200,000,000 in commit-
ments for industrial facilities.
In this issueReview of the week in defense 2
ALLOCATIONS BOARDSteel for ships, not pleasure • 3
PRIORITIES
Homes for defense workers first 5
CIVILIAN SUPPLY
Passenger cars cut 48.4 percent • S
PRICE ADMINISTRATION
Ethyl alcohol prices curbed 10
PURCHASES
Fewer types, more steel 16
AGRICULTURE"Food is our fifth column" 18
TRANSPORTATIONBus travel's place in defense 19
LABORJobs await "priority unemployed" 20
HOUSING14 new defense areas get mortgage aid . . . . 21
MEDIATION BOARDLight workers return ; truce in mines .... 22
414528°—41
U. S. SUPERINTENDENT OF DOCUMENTS
SEP 25 1941
• DEFENSE • September 23, 1941
Review of the Week in Defense
The adjustment of American life to a
defense economy took on speed last week.
The Supply Priorities and Allocations
Board, ruling that ships are more im-
portant than pleasure driving, rejected
at least until next spring a formal appli-
cation for steel plates to build a fexas-
to-New York petroleum pipe line. At the
same time, SPAB indicated some seamless
tubing might be available for the line.
Striving to bring production up to
maximum defense and essential civilian
needs, SPAB charged its executive direc-
tor with the task of expanding the out-
put of every critical material. A study
was launched by the Office of Production
Management to increase steel from ex-
isting facilities by reducing the number
of types and shapes.
Cars for December curtailed
OPM announced that December pro-
duction of passenger automobiles would
be curtailed 48.4 percent below that of
December 1940, to conserve materials.
The Priorities Division arranged to give
defense ratings to 200,000 privately
financed defense housing units. Guns
and tanks and shells will not be permitted
to absorb the materials essential to house
the workers without whom the guns and
tanks and shells cannot be made; and
nondefense residences, if they compete
with necessary building for supplies, must
wait.
Other priority action was taken to keep
present facilities of the Nation in opera-
tion. Receiving this aid were public util-
ities, textile machines, mines, and a
limited quantity of repair parts for light
trucks and automobiles. Priorities were
granted also for the manufacture of air-
craft instruments and accessories.
The Materials Branch of OPM mean-
while ordered a reduction in the use of
chlorine for bleaching of paper.
Labor conferences held
The Labor Division held a series of
conferences in Detroit and Associate
Director General Hillman, OPM, an-
nounced six statements of policy which
labor and management will be expected
to follow in dealing with labor problems
coming out of the automobile curtail-
ment. Similar conferences on the silk
industry brought commitments for rehir-
ing of 335 workers in Scranton and pros-
pects of jobs for 1,000 in the Wilkes-
Barre area, all displaced because silk
imports have stopped.
At the suggestion of the National De-
fense Mediation Board, Kansas City
Power and Light Co. employees returned
to work pending an investigation of is-
sues in dispute. A 30-day truce was
reached in the "captive mine" strike.
The Board opened hearings in 4 other
cases and received certification of 2 new
ones.
OPA sets ceilings
The Office of Price Administration set
maximum prices on 12 classes of ethyl
alcohol in lots of 500 gallons or more;
on waste paper east of the Rockies; and
on byproduct foundry and furnace coke,
which are important to iron and steel
products.
OPA also revoked its ban on the Sep-
tember 15 price increase in Pennsylvania
anthracite at the mine, and obtained
agreement from the producers not to
boost prices further without prior con-
sultation and agreement of that office;
called a meeting to discuss costs and
prices of Pennsylvania grade crude oil;
stated that a rise of less than 4 percent
in the prices of rayon yarn did not jus-
tify upward revision of the rayon grey
goods ceiling; and announced a new for-
mula to adjust the cotton grey goods
ceiling to the market price of "spot"
raw cotton.
New localities get FHA financing
President Roosevelt approved the ex-
tension of 90 percent mortgage insurance
under Federal Housing Administration's
Title VI to 14 additional defense lo-
calities.
Transportation Commissioner Ralph
Budd appointed two committees to work
with SPAB and OPM on supplies for con-
struction of railroad freight cars and
steam locomotives.
The Office of Civilian Defense issued
a guide for protection of plants against
air raids, and urged immediate organi-
zation for the purpose.
Quotas and priorities assigned
to makers of spare parts for
passenger cars, light trucks
Two additional orders affecting auto-
mobile manufacturers were issued Sep-
tember 20 by Priorities Director Nelson.
These orders, covering the production of
repair parts for passenger cars and light
trucks, are part of the broad program of
priorities and limitations in the auto-
motive field, which has been worked out
in the Office of Production Management
by the Divisions of Priorities, Labor, and
Civilian Supply.
One of the orders announced is Limi-
tation Order L-4, and the other Prefer-
ence Rating Order P-57. They are de-
signed to assure the continued operation
of passenger cars and light trucks now on
the roads.
Limitation Order L-4 provides that a
producer of spare parts for passenger
cars and light trucks may make during
the period from September 15 to Decem-
ber 31, 1941, 60 percent of the number
of parts sold by him for replacement pur-
poses during the period from January 1
to June 30, 1941.
Preference Rating Order P-57 extends
priority assistance in securing the ma-terial needed to manufacture the author-
ized amounts.
• • •
RAILROAD CARS
It was erroneously stated on this page
of last week's Defense that Commis-
sioner Budd has notified the shipping
public that the railroads will be 200.000
cars short of their goal for the approach-
ing peak season. The figure should have
been 20,000, as it appeared on the Trans-
portation page. Mr. Budd has stated
that the supply of new cars will be that
far short on October 1 of the ownership
planned at the time orders were placed
for car construction.
The Transportation Division points
out that it does not follow necessarily
that there will be in October a reported
failure to meet shippers' orders to the
extent of 20,000 cars. Some of the lag
can be made up through increased repair
of unserviceable cars and more through
increased efficiency in car handling which
Commissioner Budd is urging upon ship-
pers, receivers, and railroads.
OFFICIAL BULLETIN of the Office for EmergencyManagement. Published weekly by the Division of
Information. Office for Emergency Management, andprinted at the United States Government Printing
Office, Washington, D. C.
Subscription rates by mall: 75ii for 52 Issues; 25t
for 13 issues; single copies 6f, payable In advance.
Remit money order payable directly to the Superin-
tendent of Documents, Government Printing Office,
Washington, D. C.
September 23, 1941 • DEFENSE •
SPAB acts to expand output of
all critical materials; copper,
aluminum, magnesium first
Expanded production of every critical
material to meet the needs of the all-out
defense program is called for in a policy
announced September 16 by the Supply
Priorities and Allocations Board.
The executive director was instructed
to leave no stone unturned by any agency
of Government in the drive to bring pro-
duction of the Nation's basic materials
up to maximum defense and essential
civilian needs.
Immediate efforts under the SPABprogram will be concentrated on alumi-
num, magnesium and copper.
Asks speed in existing plans
In each case, SPAB directed that ex-
pansion of capacity already planned but
not yet actually set in motion be com-pleted as soon as possible.
In the case of magnesium, existing
plans call for expansion of production
by approximately 364,000,000 pounds per
year.
In aluminum, existing plans call for
an increase in production of 600,000,000
pounds per year. Negotiations for the
building of the new capacity are pro-
gressing well, SPAB announced, and em-phasis will be placed on getting the newplants built and into operation as quickly
as possible.
Would cut unnecessary uses of copper
Expansion of copper production wascalled for through a broad campaign de-
signed both to increase the available
supply and to reduce the demand for the
metal. SPAB estimated that between
250,000 and 350,000 tons could be saved
annually by cutting down on unneces-
sary uses, and instructed the executive
director to seek to bring that reduction
into effect. It also ordered a study of
plans to increase domestic production
through a variety of methods for getting
greater production out of existing
American mines.
• * *
MATS OF CHARTS
One-column mats of the pictorial sta-
tistics appearing each week on the cover
of Defense are available to newspapers
and other publications on request to the
Distribution Section, Information Divi-
sion, Office for Emergency Management,Washington, D. C.
SPAB defers application for plates for
pipe line; believes some tubing available
The Supply Priorities and Allocations
Board announced September 16 that it
had received formal application for a
priority rating to construct the "national
defense pipeline" from New York to
Texas, and that after careful considera-
tion It had reaffirmed its previous de-
cision that no plan involving the Immedi-ate use of steel plate can be considered.
Steel plate is vitally needed for the
construction of ships, and SPAB tookthe position that it is more important in
this emergency to provide for ship con-struction than to insure plenty of gaso-
line for pleasure driving on the Easternseaboard.
Attitude more favorable on tubing
Ralph K. Davies, deputy oil adminis-trator, appeared before SPAB at its
meeting September 15 to present the ap-plication for priorities on the needed ma-terials—approximately 180,000 tons of
steel plate and 190,000 tons of seamless
steel tube.
Informing Mr. Davies that steel plate
cannot be spared, the Board took a morefavorable attitude in regard to the useof seamless tubing. Billets from whichthe tubing Is extruded are not under as
heavy demand as steel plate, and studies
Aid announced for makers
of aircraft accessories
Priorities Director Nelson announcedSeptember 17 Preference Rating OrderP-52, which will be used to extend pri-
ority aid to certain manufacturers of
aircraft Instruments and accessories.
The rating to be received by a manu-facturer of aircraft accessories, covering
deliveries to him of material which will
be physically incorporated in his fin-
ished product, or which is necessary to
its manufacture, will be based on the
recommendation of the Army and NavyMunitions Board.
The preference rating assigned maybe extended by the producer to his sup-
pliers by executing a copy of the order;
i. e., by signing the acceptance and filing
It with the Aircraft Section, OPM, andfurnishing one additional signed copy to
each of his suppliers.
A supplier wishing to extend the rating
to his subsuppliers may do so in the samefashion.
have indicated that it would be possible
to produce enough tube for at least part
of the pipeline without upsetting defense
requirements if production schedules
were properly adjusted to defense con-
tracts in the tube mills.
OPM to make study
SPAB requested the Office of Produc-
tion Management to make a further
study of the project to determine
whether, if sufficient seamless tube is re-
leased, the necessary pumps, valves,
motors and other accessories can be pro-
duced fast enough to be ready for use
when the tube is ready.
The Board also agreed that if permis-
sion is given to construct the pipeline cut
of seamless tube, the situation in regard
to plate will be reviewed by SPAB next
spring.
At its previous meeting SPAB had con-
sidered the general subject of the pipe-
line, and in the absence of any formal
application for a priority rating hadvoted as a matter of policy not to permit
the diversion of steel plate for pipeline
construction. The September 16 action
constituted a reaffirmation of that stand
and a formal notification to the Deputy
Oil Administrator that priorities for
steel plate could not be granted.
British management-labor
mission's itinerary announced
The Office of Production Managementannounced September 16 the itinerary
of the joint management-labor mission
representing the British Government, in
this country at OPM's invitation to
study United States Industrial methodsand relationships.
The eight members, four labor repre-
sentatives and four management repre-
sentatives, will visit principal centers of
defense production and confer with
leaders of industry and labor.
THE ITINERARYSeptember 18—Washington (Luncheon
with OPM); September 19—Philadelphia;September 20—Philadelphia and Camden;September 21 and 22—Pittsburgh; Septem-ber 23—Buffalo; September 24—Cleveland;September 25, 26, 27—Detroit; September 28,
29, 30—Chicago and vicinity.
October 1—Milwaukee; October 3—Denver;October 6, 7—Los Angeles; October 8—SanDiego; October 9—San Francisco; October 11,
12, and 13—Seattle; October 15—Indianapo-lis; October f6—Cincinnati; October 18-19
—
Washington; October 20—Baltimore; Octo-ber 21-22—New York.
• DEFENSE • September 23, 1941
Over 6V4 of 7 billion Lend-Lease dollars
allocated, President says in second report
Following are excerpts from the Presi-
dent's message to Congress, September
15, accompanying his second report on
activities under the Lend-Lease Act:
I am submitting this report pursuant tosection 5 (b) of the Lend-Lease Act of March11, 1941, which provides that the Presidentreport to the Congress every 90 days on theoperations under that act.
The Lend-Lease Act was passed by theCongress Just 183 days ago. One hundredand sixty-seven days ago the Congress ap-propriated $7,000,000,000 to carry out ournational policy of giving every possible ma-terial assistance to the countries resistingaggression.The effective expenditure of this large
sum in furtherance of our announced policyhas presented tasks of large proportions.We have surveyed the needs of the countrieswe are aiding. We have correlated this pro-gram of aid with the procurement programsof our own Army and Navy. We have ar-ranged with our industries for the produc-tion of the great quantities of materialinvolved.The War Department, the Navy Depart-
ment, the Treasury Department, the Agri-culture Department, and the Maritime Com-mission are the agencies principally chargedwith the actual procurement of the sup-plies. They are now far along with theirtask.
Over six and one-quarter of the $7,000,-
000,000 appropriated have now been allo-
cated, upon the recommendation of theseagencies, for specific materials and services.
Their procurement machinery has been con-stantly at work, locating producers and plac-ing contracts. Over three and cne-halfbillion dollars of legal commitments have al-
ready been made. Contracts will soon beplaced for the entire $7,000,000,000 appro-priation.
Contracts have been placed and work hasstarted on nearly a billion dollars of bom-bardment aircraft. New ways have beenstarted and work is in progress for about one-half a billion dollars of new merchant ship-ping. New facilities to speed the productionof guns, ammunition, and other defense ar-
ticles have been started under contracts tol al-
ing about $262,000,000. Over $430,000,000 hasbeen allocated, and over $250,000,000 has beenobligated, for the purchase of milk, eggs, andother agricultural products.
Aid growing daily
Daily the aid being rendered is growing.Through the month of August the total dol-lar value of defense articles transferred anddefense services rendered, plus expendituresfor other lend-lease purposes, amounted to$486,721,838.
Food and steel and machinery and gunsand planes have been supplied in increasingquantities. Agricultural commodities worth$110,606,550 have been transferred to thecountries we are aiding. We have transferredto the United Kingdom more than 44.000,000pounds of cheese, more than 54,000,000pounds of eggs, more than 89,000,000 poundsof cured pork, more than 110,000,000 poundsof dried beans, and more than 114,000,000pounds of lard. We have transferred to themmore than 3.000.000 barrels of gasoline andoil. We have sent them many tanks. Mer-chant and naval ships and other transporta-tion equipment are being transferred in grow-ing amounts.A substantial number of cargo ships and
tankers have been chartered to the use ofthose countries whose defense is vital to ourown. Our yards are repairing allied merchantships. We are equipping allied ships to pro-
tect them from mines; and we are armingthem, as much as possible, against aircraft,
submarines, and raiders.
Wide range of technical help
We have also, by repairing and outfittingtheir warships, helped the British and allied
navies keep clear the vital sea lanes uponwhich depends continued resistance to Axispiracy. The repair of the battleship Malayaand the aircraft carrier Illustrious are out-standing examples of this naval assistance.
Over the whole range of technical and ma-terial assistance required by modern warfarewe are, under the lend-lease program, render-ing effective help. Important defense infor-mation is being supplied to Britain and the
HIGHLIGHTS
of President Roosevelt's second mes-sage on Lend-Lease activities:
ALLOCATIONS: Over 6 'A billion
dollars of the 7 billions appropriated.
COMMITMENTS: Over 3'/2 billion
dollars.
BOMBER CONTRACTS: Nearly a
billion dollars.
AGRICULTURAL PRODUCTStransferred: Value, $110,606,550.
AIDED: Britain, China, Dutch East
Indies, Poles, Dutch, Norwegians,
Greeks, Belgians, Yugoslavs.
othsr nations fighting the Axis Powers. Ourtechnicians are instructing the Allies in theassembly, operation, and maintenance of thetools coming from our factories. Across theUnited States and across Africa our planeferry service Is linking the arsenals of Amer-ica with democracy's outposts in the MiddleEast. On our airfields thousands of Britishpilots are being, and will continue to be,
trained, and already we are preparing a similarprogram to help the Chinese.We have supplied equipment for. the Yun-
nan-Burma Railroad and for the BurmaRoad in order to speed the flow of arms andmaterials to the heroic Chinese people. Inaddition to materials of war we are fur-nishing China with medicine and technicalassistance to fight the ravages of malaria.A military mission has also been dispatchedto China In connection with the supplyingof lend-lease aid.
Must step up production rate
The $7,000,000,000 appropriated for pur-chasing defense articles has been availableless than 6 months, and actual transfersfrom these funds have necessarily been lim-ited to articles which could be purchasedin a finished state or produced in that time.The speed with which future lend-leasetransfers will be made depends largely onthe speed with which our industries deliverthe goods. The rate of our production mustbe accelerated, and every step to achievethat end must and will be taken.These lend-lease deliveries are not, of
course, the only materials which have beenmoving from our shores to the countries re-sisting aggression. Prior to the Lend-LeaseAct, large contracts were placed here byGreat Britain and by other countries from
their own resources. Deliveries under thesecontracts are moving across the sea alongwith lend-lease articles. The true measureof the volume of war supplies moving fromour shores Is reflected in our total exports.
Thus, since the beginning of the war, about$4,400,000,000 worth of goods have been ex-ported to the British Empire.The British Empire has received the bulk
of our aid. But we have also extended as-
sistance to the many other countries en-gaged in the same struggle. China and theDutch East Indies are receiving ever-increas-ing quantities of supplies. The exiled gov-ernments of the countries under the Naziyoke are sharing in the program. We arealready outfitting Polish troops who aretraining in Canada for action overseas. Weare also providing, directly or indirectly, aidfor the Dutch, the Norwegians, the Greeks,the Belgians, and the Yugoslavs. We knowthat every group which yields to or collabo-rates with the Nazis makes our own defensethat much more difficult. Likewise eachgroup that resists Nazi aggression helps tokeep the war from our own hemisphere.
Western Hemisphere defense
a prime factor
The defense of the Western Hemispherehas been a prime consideration in our lend-lease program. Not only are we helping theEuropean countries which stand athwart theNazi path toward the Western Hemisphere,but we are also giving direct lend-lease aidto the countries of this hemisphere. We arestrengthening Iceland, where our troops andships now stand guard over the approachesof the North Atlantic, and we have alreadyembarked upon a comprehensive programof material aid to the countries of Centraland South America to strengthen the com-mon defense of our good neighborhood.The gallant resistance of the Russian
people has been of enormous help to all
peoples resisting the Nazi war machine. It
has completely upset the Nazi time scheduleand has destroyed the myth of Nazi invinci-bility. We are using the energies of ourGovernment to make available supplies whichare urgently needed by Russia. By speedingdeliveries and by arranging the quickesttransportation of American materials, we aremoving to strengthen the important Russianfront. The Soviet Government's purchaseshere are being made with its own fundsthrough its regular purchasing agency.The people of the United States know
that we cannot live in a world dominatedby Hitlerism. They realize that there canbe no real peace, no secure freedom, untilwe have destroyed the evil forces which seekto work us woe. Through their chosen rep-resentatives, they have declared a firm andunalterable policy to build up an impregnabledefense for this hemisphere, and to furnishunstinted material aid to the countries fight-ing against Nazi aggression and tyranny.
Not an act of charity
We are not furnishing this aid as an actof charity or sympathy, but as a means ofdefending America. We offer It because weknow that piecemeal resistance to aggressionIs doomed to failure; because the ruthlesswar machine which now bestrides the con-tinent of Europe can be combated only bythe combined efforts of all free peoples andall strategic points where the aggressor maystrike.
The lend-lease program Is no mere sideissue to our program of arming for defense.It is an integral part, a keystone, in ourgeat national effort to preserve our nationalsecurity for generations to come, by crush-ing the disturbers of our peace.
Planes, tanks, guns, and ships have begunto flow from our factories and yards, and theflow will accelerate from day to day, untilthe stream becomes a river, and the river atorrent, engulfing this totalitarian tyrannywhich seeks to dominate the world.
September 23, 1941 • DEFENSE •
PRIORITIES . . .
Priority aid to be granted for 200,000
privately financed defense housing units
Details of a broad plan to grant priority
assistance for the construction of 200,-
000 privately financed defense housing
units were announced September 19 by
Priorities Director Nelson following ap-
proval of the plan in principle by the
Council of the Office of Production Man-agement. The order implementing the
plan was to become effective September22.
The new procedures, worked out byOPM officials in collaboration with
Charles F. Palmer, Defense Housing Co-ordinator, will assure priority aid for
200,000 privately financed homes for de-
fense workers. Other arrangementshave already been made for granting
priority assistance to 100,000 publicly
financed units.
Projects under way put first
To expedite the building of essential
defense housing, project preference rat-
ings will be granted. The highest rating
of those to be available for housing will
be assigned to defense projects whichwere already under construction on Sep-tember 1, 1941, and for remodeling andrehabilitation, which create living ac-
commodations for additional defense
workers. Lower ratings will be granted to
new construction for rent, and a still
lower rating for new construction for
sale. All defense housing ratings, how-ever, will be in the defense, or A class.
Certificates of rating will be extended in
the field for privately financed projects bythe field offices of the Priorities Division,
upon the recommendation of the De-fense Housing Coordinator.
Single rating for scarce materials
By the use of project ratings, the Di-
vision of Priorities can assign one rating
which can be used to secure delivery of
scarce building materials (which appear
on the Defense Housing Critical List),
and which will go into any one defense
housing project.
A list of defense areas has been de-
veloped in which there is an acute short-
age of housing for defense workers. De-fense housing within these areas, bothpublic and private, may be granted pri-
ority assistance.
The Defense Housing Critical List in-
cludes a number of materials, products,
and items essential to housing construc-
tion. The project ratings will apply only
to items which appear on the list, andin such quantities as the Director of
Priorities authorizes.
FHA offices to take applications
To obtain a preference rating for de-
fense housing projects, the private
builder should file an application withthe local office of the Federal HousingAdministration. The Director of Priori-
ties is making this use of the facilities of
the FHA as a ready means of immediateassistance. This special service of the
FHA is completely divorced from and hasno connection with its underwriting ac-
tivities as a mortgage insurance agency.
Copies of the application form may be
obtained from these offices, or from local
home financing institutions.
To qualify for the priority assistance
extended under the new plan, construc-
tion must be confined to family units of
a value not in excess of $6,000, if for sale,
or for which the monthly shelter rental
does not exceed $50. These figures repre-
sent top prices for housing to receive as-
sistance under the plan. Construction
In lower brackets to meet the economicsituations of workers in different cate-
gories will be encouraged, and it is ex-
pected that in most cases the costs
involved will be substantially lower. Ex-ception to the limits set will be permitted
only in special circumstances.
No application for aid will be consid-
ered by the priorities officials until it hasbeen demonstrated that the homes in-
volved are designed for and are readily
available to defense workers, at prices
within their reach and at locations con-
venient to their employment, and that
the dwellings conform to minimumstandards as developed by the DefenseHousing Coordinator. It must also be
demonstrated that such housing is being,
or will be, built in such a way as to use
minimum quantities of scarce materials.
Before any specific privately financed
project can be given a rating, it mustqualify as defense housing and be ap-
proved by the office of the DefenseHousing Coordinator.
When this has been done, and the De-fense Housing Coordinator has recom-mended a project, a rating may be as-
signed in the field by the Priorities Divi-
sion to the particular job involved on aproject rating form.
This rating will be given to the builder
of private housing. The builder can ex-
tend the rating by executing (signing)
a copy of the order and serving it on his
suppliers. The suppliers in turn can ex-
tend the rating to their own suppliers in
the same way.
The decision to give preferential status
to defense housing—thus putting hemesfor workers ahead of other homes—wasannounced originally some weeks ago.
The plans announced September 19 con-stitute steps to put the program into
effect.
With the impact of the defense pro-
gram upon the national economy, hous-
ing operations in every field have been
affected by the shortages in the products
manufactured from critical metals, with-
out which livable housing cannot be pro-
duced.
Copper, for example—used for wiring,
roofing, gutters and plumbing supplies
—
has become increasingly tight. Zinc
—
used for galvanizing—is also short.
Steel and iron products also have been
subject to delayed deliveries, and the
materials used in hardware are likewise
scarce. These difficulties, of course, have
been due to the greater need of arma-ment for national defense.
Workers are essential too
Yet plants manufacturing tanks, guns,
shells, and other essentials of national de-
fense, cannot be operated, and ships can-
not be built without workers, and work-
ers must have places to live. The pro-
duction of housing has been in competi-
tion with the production of other defense
essentials, and was delayed because the
scarce materials needed for both werediverted by priorities from housing into
other uses.
Because of this, a decision had to be
made to regulate the flow of critical ma-terials to insure the necessary supply for
housing.
The construction of new defense plants
and the development of new industrial
areas have shifted the centers of em-ployment.
This makes it necessary to provide new,
adequate, and convenient housing for
workers—close to the job—even if this
means additional difficulties for the con-
struction of other residential housing not
essential to the success of the national
defense program.
• DEFENSE • September 23, 1941
Order gives vital utilities A- 10 rating for
maintenance, repair, operating supplies
A maintenance, repair and supplies
order designed to help thousands of pub-
lic utilities in the Nation was issued Sep-
tember 17 by Priorities Director Nelson.
The new order permits utilities covered
by the plan and their suppliers to use
an A-10 rating to facilitate deliveries of
maintenance and repair materials and
operating supplies which are vitally
needed for defense and essential public
services.
Services affected
Utilities which may use the new order
are those engaged in one or more of the
following services:
(1) Supplying electric power directly
or indirectly for general use by the public.
(2) Supplying gas, natural or manu-factured, directly or indirectly for gen-
eral use by the public.
(3) Supplying water directly or indi-
rectly for general use by the public.
(4) Public sanitation services, but not
Including manufacturers of public sani-
tation products.
(5) Supplying central steam heating
directly or indirectly for general use by
the public.
Three classes of materials
The A-10 rating can be used by the
Utility or by the supplier—subject, of
course, to the limitations of the order
—
to obtain three classes of material:
(1) Maintenance material
—
neededfor the upkeep of property and equipment
in sound condition.
(2) Repair material—needed for res-
toration of property and equipment to
sound condition after wear and tear,
damage, destruction or the like.
(3) Operating supplies—material es-
sential to the operation of the utility
involved and which is generally carried
in the company's stores and charged to
operating expenses.
The rating assigned by this order can-
not be used for plant expansions or newimprovements, or for expansion of the
service area of the utility. However, the
rating may be used in some cases to pro-
vide for connections for new consumersto the existing utility system and also
for materials needed to relieve serious
overloads.
A producer before using the preference
rating to expedite deliveries, must exe-
cute two acceptance blanks attached to
the order (P-46) and must file one ex-
ecuted copy of the acceptance with the
Power Branch of the Office of Production
Management, retaining the other copy.
Suppliers, however, must not execute the
acceptances.
The producer or his supplier, in order
to apply the preference rating, must en-
dorse on his purchase orders the follow-
ing statement:
"Purchase order for utilities opera-
tion, maintenance and repair, preference
rating A-10, pursuant to Preference Rat-
ing Order No. P-46."
If this procedure is followed in ac-
cordance with the terms of the order,
the endorsement on purchase orders will
put the preference rating into effect.
Inventory provisions
The order includes provisions to keep
producers' inventories at practical work-
ing minimum levels. The order also in-
cludes certain provisions of a technical
nature designed to restrict purchases and
withdrawals from inventories to certain
1940 levels, except when special circum-
stances are involved.
The new order is designed especially
to cover problems which have arisen in
the utilities field and includes a number
of technical provisions designed espe-
cially for utility problems. The order
itself, therefore, must be read carefully
by all those affected by it.
Load greater, materials scarcer
The impact of the defense program
has caused serious shortages in many ma-terials and supplies used by utility com-
panies and has also greatly increased
the load on their facilities. A number
of companies have experienced difficulty
not only in obtaining supplies for newwork but also in obtaining materials for
repair and maintenance work.
It is essential to set up a system so
that the utility companies covered—pub-
licly and privately owned—may keep
their facilities and systems in good run-
ning order. The present plan is designed
to do that, but does not, of course, in-
clude any provisions for expanding opera-
tions or for new operations.
The order contemplates that the Di-
rector of Priorities will, in the near
future, certify specific quantities of ma-terials to which the rating may be ap-
plied by the utilities to whom the rating
has been assigned.
In connection with this, utility com-panies will be required to file reports
on inventory and other information onwhich the certification may be based.
A-10 rating granted to makers
of textile machine repair parts
Because of the great importance to
the defense program and to civilian wel-
fare of the continued effective operation
of textile mills, Priorities Director Nel-
son announced September 16 Preference
Rating Order P-53, granting the assist-
ance of an A-10 rating to manufacturers
of maintenance and repair parts for tex-
tile machinery.
The manufacturer of such parts should
make application for the rating uponForm PD-88, which should then be
mailed to the Textile Branch, Office of
Production Management, Washington,
D. C.
Rating can be extended
After the producer has received a pref-
erence rating under the Textile Ma-chinery and Equipment Maintenance
and Repair Order, his suppliers may in
turn require the assistance of a rating
to make possible their deliveries to the
producer. At the time of filing his ap-
plication, the manufacturer should state
the number of copies of the order which
he desires to have furnished to him, so
that he may apply the rating to deliveries
to him by his suppliers, and to enable
his suppliers in turn to apply the rating
to deliveries to them by their subsup-
pliers. A supplier, however, may apply
the rating only to material which will
be physically incorporated into finished
parts for maintenance and repair work.
No copies of the order will be furnished
by the Priorities Division directly to anysupplier, or subsupplier.
Operations at peak
Defense requirements and increased
consumer purchases in the past year
have resulted in peak operation of fabric
manufacturing mills. Cotton spindle
activity, for example, was 123 percent
of capacity in July. In July 1940, the
figure was only 86 percent of capacity.
Normal, or "capacity," operation of a
cotton spindle is 80 hours per week.
There has been a similar increase In
activity of wool and worsted spindles.
Wool spindle activity today is running
about 50 percent higher than a year
ago. Worsted spindle operation has
jumped 60 percent in a year.
In 1939, there were over a half million
workers in the fabric manufacturing in-
dustry—including cotton, wool, worsted,
rayon, and silk—and the figure has in-
creased substantially since then. Value
of output of the industry in 1939 was
close to 2 billion dollars. According to
the Census of Manufacturers, there were
2097 plants operating during the year.
September 23, 1941 • DEFENSE •
Alloy steel, alloy and wrought
iron under added regulations
A supplementary order providing addi-
tional specific regulations over alloy steel,
alloy iron and wrought Iron was issued
September 16 by Priorities Director
Nelson.
The new order is Supplementary Order
M-21-a. The M-21 order is the one
which provides full priority control over
steel products.
Alloy steel of all kinds is already sub-
ject to priority control under the terms of
General Preference Order M-21. How-ever, the present order Includes a defini-
tion of alloy steel and alloy iron andspecifically authorizes the Director of
Priorities to issue directions to any pro-
ducer as to deliveries he may make or the
kinds of alloys he may produce.
The order stipulates that deliveries un-
der toll agreements—now in effect or to
be entered into—must be specifically au-
thorized by the Director of Priorities.
The supplementary order also revokes
General Preference Order M-5, Supple-
mentary Order M-5-a, and Supplemen-tary Order M-5-b, all relating to nickel-
bearing steel which is now Included underorders M-21 and M-21-a.
• • *
Preferences authorized to help
ships build repair inventory
An amendment to Division Adminis-
trative Order No. 7, which permits the
United States Maritime Commission to
assign preference ratings in certain cases
when material involved is to be used for
Maritime purposes, was announced Sep-tember 16 by the Division of Priorities.
The amendment, technical in nature,
permits the Maritime Commission to
establish and assign preference ratings
to deliveries of material for inventory
purposes and emergency repairs, to ship
chandlers and ships in service.
The original administrative order did
not refer to ship chandlers and ships in
service. However, a large percentage of
repair materials for merchant ships is
obtained from ship chandlers and manyrepairs are carried out on shipboard so
that ships in service must maintain a
repair inventory so as to be able to makerepairs at sea. Ship chandlers and ships
In service have been having difficulty in
obtaining necessary repair materials andfor that reason it has been decided to
permit the Maritime Commission to as-
sign ratings in these cases, as well as in
other cases already provided for.
A-l-a rating given mines for emergency
repairs, A-8 for supplies, maintenanceA maintenance, repair, and supplies
plan which will help approximately 15,-
000 mines to boost their production for
defense was announced September 18
by Donald M. Nelson, Director of Priori-
ties.
The order permits mining companiesto use a rating of A-l-a—the highest de-
fense rating—to expedite deliveries of
materials needed for emergency repairs.
A rating of A-8 may be used by mineoperators and their suppliers to obtain
material required for emergency inven-
tory purposes or for operating supplies
or for ordinary maintenance work.
State officials to help
A special plan has been developed to
administer and operate the order. TheGovernor of each State has been asked
to designate a State official, preferably
an official dealing with mining opera-
tions, to help administer the order in his
State.
It is expected that the State official in
each case will be known as the Emer-gency Coordinator of Mines. This offi-
cial will submit to the OPM a list of the
active mines in the State. He will also
receive in his office each month a list of
all purchases made under the terms of
the order by the mines, and he will re-
port any excessive purchases or irregu-
larities to the OPM for investigation.
After consideration of the lists sub-
mitted by the Emergency Coordinator in
each State, the Priorities Coordinator for
Mines will assign serial numbers to all
mines approved.
Method of use
Dr. Wilbur A. Nelson, Priorities Coor-
dinator for Mines in the Office of Pro-
duction Management, v/ill administer
the order.
Purchases made by mines for repair
parts, maintenance items, and operation
supplies will carry an endorsement on the
purchase order certifying that the pur-
chases are made under the terms of the
new order, P-56. No special forms are
required in connection with the applica-
tion of the rating to deliveries.
Suppliers of mining operators can ex-
tend the rating by a simple endorsement
and a reextension can be made to other
suppliers in the same manner.
A mine operator or a supplier in order
to apply the A-8 rating, must endorse a
statement on the original and all copies
of each purchase order for material to
be used for the purposes specified, certi-
fying that the order is placed in accord-
ance with the terms of the new plan.
A mine operator before he can apply
the A-l-a preference rating for emer-gency repairs must first ask permission
by telephone, telegram, or letter fromthe Priorities Coordinator for Mines.
Telegram authorization by the Coordi-
nator will be sufficient to permit pur-
chase of the necessary materials underthe emergency A-l-a rating.
About 15,060 mines eligible
Around 15,000 mines of all kinds will
be eligible for inclusion. Gold placer
mines are excluded, but other placer,
dredge or hydraulic mines producing
products other than gold are included.
Open pits and strip mines are included,
and this will include producers of manybuilding materials.
The order includes provisions to re-
strict inventories to proper levels.
It also includes a provision saying that
every person affected by the order shall
make every effort to conserve critical
materials by conservation, simplification,
standardization, or any other program
developed by the Office of Production
Management. The Director of Priori-
ties may from time to time issue specific
directions as to conservation and stand-
ardization practices. The Provisions of
Preference Rating Order P-22 (the gen-
eral repairs order for essential indus-
tries) are revoked insofar as they relate
to mines.
(Note.—In an order filed in the "Fed-
eral Register" it was stated that a
rating of A-3 could be used for repair
and maintenance orders by the mines.
This is incorrect. The proper rating is
A-8 and an order so stating will be issued
shortly.)
• * *
Repair plan interpreted
An interpretation of the repair plan
for essential industries announced on
September 9 was issued September 15 by
Priorities Director Nelson.
The interpretation applies in the case
of an organization which has two or
more plants, not all of which fall
within the classification of essential in-
dustries which may use the repair plan.
In such a case, the interpretation says,
the special preference rating may be
used to get repair materials only in those
plants which fall within the classifica-
tions set forth in the original order.
• DEFENSE • September 23, 1941
CIVILIAN SUPPLY . . .
December passenger autos cut 48.4
percent below same month of 1940
December production of passenger
automobiles will be curtailed 48.4 per-
cent below last December's output to
conserve scarce materials for national
defense, the Office of Production Man-agement announced September 15.
The announcement was made at a
meeting of the automotive defense in-
dustry advisory committee and labor
representatives with Leon Henderson,
Director of OPM's Civilian Supply Divi-
sion, and officials of other interested
Government agencies.
Manufacturers will be allowed to pro-
duce 204,848 passenger cars during De-
cember, compared with 396,823 during
December last year.
Taken together with a 26.5 percent
curtailment ordered previously for Au-
gust, September, October, and Novem-
ber, this means an over-all curtailment
of 32.2 percent during the first 5 months
of the model year that began August 1.
Production for the 5-month period will
be 1,023.217 cars, compared with 1,510,-
167 during the same time last year.
51.5 percent cut for large companies
The December curtailment will aver-
age 51.5 percent for the larger com-
panies—General Motors, Chrysler, and
Ford—while only 15.3 percent for the
other companies—Studsbaker, Hudson,
Nash, Packard, Willys-Overland, andCrosley. The small average percentage
of reduction for the other companies is
due to the fact that Crosley is being
allowed to assemble a considerable num-ber of cars for which parts have long
been fabricated and to the further fact
that Hudson and Willys-Overland hadunusually low production in December
last year.
The increased curtailment for the in-
dustry as a whole during December is
timed to coincide with increased need
for automobile workers in aircraft engine
and other defense plants. Representa-
tives of labor, management, the OPM,the armed services and local officials are
working together to transfer displaced
workers to defense jobs in a swift andorderly manner, to protect their sen-
iority rights, to give preference in hiring
to those displaced, and to give special
consideration In the placing of defense
contracts to communities threatened
with severe dislocations.
As part of this effort, a meeting was
held September 15 in Kenosha, Wis., de-
signed to provide defense work for dis-
placed workers and to arrange for their
registration, retraining and reemploy-
ment.
PASSENGER CAR QUOTAS
December 1941 as compared with produc-
tion in December 1940 (for nonmili-
tary use)Percent-
Allot- Produc- age de-ments, tion, crease in
General Motors Decern- Decern- allot-
Co.: ber 1941 ber 1940 mentsChevrolet 45.180 92.657 51.2Buick 16.402 33,505 51.1
Pontiao 14,358 27,629 48.0Oldsmobile... 11,753 23,924 60.9Cadillac 2,874 6,424 55.3
Total, Gen-eral Mo-tors Cor-poration.. 90.567 184,139 50.8
Chrysler Corpora-tion:Plymouth 25. 184 49, 146 48. 8
Dcdge 11,863 24,776 52.1
Chrysler 6,028 15,510 61.1
DeSoto 4,196 9,716 56.8
Total, Chry-sler Cor-poration . 47, 271 99, 148 52. 3
Ford Motor Co.:Ford 32,307 65.844 50.9Mercury 4,426 10.777 58 9
Lincoln-Zephyr 1,276 2,688 62.5
Total, FordMotor Co. 38. 009 79, 309 52. 1
Total,GeneralMotors ,
Chrysler,and Ford. 175,847 362.596 61.5
Other motor com-panies:Studebaker— 8,834 10.823 18.4Hudson 6,476. 5,148 25.8Nash 5,500 10,001 45.0Packard 5,771 7,401 22.0Willys-O v e r-
land 1,944 819 137.4Crosley 476 35 1,260,0
Total,othercompa-nies 29,001 34,227 15.3
Grandtotal 204,848 396.823 48.4
The possibility of placing additional de-
fense work in Flint, Mich., and other au-
tomobile centers is also being investigated
thoroughly.
Announcement was made at the meet-
ing with the automotive industry commit-
tee that production of light trucks (those
less than V/2 tons) for nonmilitary pur-
poses would be curtailed 9 percent during
the 4-month period of August, Septem-
ber, October, and November. This meansthat approximately 87,000 light trucks
may be produced for civilian use during
the 4 months, compared with about 96,000
during the same period last year. Exact
quotas by companies have not yet been
worked out.
If OPM allows this light truck produc-
tion rate to continue for the full model
year, a question to be decided subse-
quently on the basis of the material situa-
tion then prevailing, the yearly produc-
tion for civilian purposes will amount to
261,000, compared with 370,000 in the last
model year, or a reduction of 30 percent.
Much of the facilities released by the
light truck curtailment may be shifted to
production of light military vehicles.
Priorities action
Donald M. Nelson, Director of the Pri-
orities Division, issued September 15 a
General Limitation Order putting the
light truck curtailment into effect. At
the same time he issued another General
Limitation Order giving legal effect to the
passenger car curtailment announced on
August 21 for the months of August, Sep-
tember, October, and November.
Total production of light, medium and
heavy trucks during the current model
year is expected to be substantially in ex-
cess of last year's, due to vital transpor-
tation and military needs.
Manufacturers of heavy motor trucks,
medium trucks, truck trailers, certain
passenger carriers, and replacement parts
for these vehicles have been granted a
preference rating of A-3 to help them ob-
tain materials.
The committee was told also that the
Priorities Division is preparing a prefer-
ence rating order to aid manufacturers in
obtaining materials for replacement parts
for passenger cars and light trucks.
Materials for trim to be limited
Officials informed the committee that
passenger car manufacturers would be
requested shortly to discontinue the use
of critical materials in nonfunctional
September 23, 1941 • DEFENSE •
parts, such as trim, by a date to be desig-
nated later.
The priorities assistance to be given
manufacturers of replacement parts for
passenger cars and light trucks will not
only help to maintain essential trans-
portation service but will assist the au-
tomobile dealers, enabling them to
increase operations of their service
departments.
Almost 2,000.000 of the 4,500,000 trucks
now on the highways are in the light
truck class. Farmers, who own the
largest number of these vehicles, use
them to haul livestock, vegetables, poul-
try and dairy products to market. Pub-
lic utility companies rely almost exclu-
sively on .light trucks to haul crews and
equipment for the repair of power and
telephone lines. Daily distribution of
newspapers, groceries, bakery products,
and department store goods within cities
depends largely on light truck transport.
Milk also is delivered by light trucks
In most cities.
Quotas based on last 3 years
The passenger car allotments for De-
cember were determined and distributed
among the parent companies on the basis
of their production during the last three
model years.
Although the August allotments to-
taled more than actual production dur-
ing the same month last year, this will
be offset by the allotments for Septem-
ber, October, and November and the
curtailment for this 4-month period as
a whole will amount to 26.5 percent as
announced on August 21. The Decem-
ber quotas announced September 15 will
bring the over-all curtailment for 5
months to 32.2 percent.
* * •
Railroads' coal stock pile
reaches 8,066,000 tons
To lighten transportation demands for
coal shipments during the fall and win-
ter peak period, the Nation's railroads
have built a stock pile of coal which on
September 1 had reached 8,065.000 tons,
OEM Transportation Commissioner Buddannounced September 15.
On September 1 last year, the coal
stock pile was 5,654,000 tons.
The Advisory Commission to the Coun-cil of National Defense urged in Maythat railroads build a stock pile of coal
during the summer, on the recommen-
dation of Commissioner Budd.
Anthracite men to consult OPA on any rise
over September 15 price; ceiling revoked
Leading Pennsylvania anthracite pro-
ducers at a conference September 17 with
OPA Administrator Henderson, agreed
not to take any further action relative
to price advances following that of Sep-
tember 15, without prior consultation
and approval of OPA. After the meet-
ing, Mr. Henderson announced the revo-
cation of emergency price schedule 27,
fixing the prices of anthracite coal at
levels prevailing on August 15. This ac-
tion was taken following the submission
of full and comprehensive data support-
ing the price advance.
The emergency ceiling was imposed on
September 12, when members of the in-
dustry failed to supply information for
individual companies supporting the
proposed September 15 Increase.
Henderson issues warning
Leading anthracite producers had in-
creased prices on September 15, the ef-
fective date of the ceiling, in violation
of the price schedule. Mr. Hendersonstated that he had made clear to the
members of the industry that such action
represented a wholly unjustifiable act of
defiance and one that would not be tol-
erated in the future.
"I cannot condemn such arbitrary ac-
tion too strongly," Mr. Henderson Btated.
"If followed by other industries It wouldthreaten the whole basic structure of
price stabilization."
Effort to cooperate promised
The mine operators present at the
meeting stated that in the future they
would make every effort to cooperate
with the Office of Price Administration.
Attending the meeting were:
C. F. Huber, president, Glen Alden Coal
Co.; F. W. Leamy, vice president, TheHudson Coal Co.; Donald Markle, presi-
dent, Jeddo-Highland Coal Co.; J. B.
Warriner, president, Lehigh Navigation
Coal Co.; L. R. Close, president, The Le-
high Valley Coal Co.; H. J. Connolly,
president, Pennsylvania Coal Co.; C. W.Stone, sales manager, Susquehanna Col-
lieries Co.; R. E. Taggart, president, ThePhiladelphia & Reading Coal & Iron
Co.
18 named to waste materials
dealers' advisory committee
Appointment of 18 men to the waste
materials dealers defense industry ad-
visory committee was announced Sep-
tember 17 by the Bureau of Clearance of
Defense Industry Advisory Committees.
Members were selected by Paul C.
Cabot, Government presiding officer of
the committee, after a meeting with
members of the industry on September 3.
The committee is as follows:
Nat C. Myers, Myers-Lipman Wool StockCo., Inc., New York City; Milton Linden, Gla-ser-Yoffee, Inc., Chelsea, Mass.; Ben Chapman,J. Chapman & Sons, Chicago; Harry Gold-stein, L. Goldstein & Sons. Philadelphia; Jo-seph H. Tyroler, Tyroler Metals, Inc., Cleve-
land; George Birkenstein, George Birken-stein Corporation, Chicago; David Dickson,Penn Paper & Stock Co., Philadelphia.
Sam Hershman, I. Hershman & Co., Inc.,
New Haven, Conn.; J. V. Spachner, PloaeerPaper Stock Co., Chicago; Edward B. Fried-
lander, The Lowenthal Co., Chicago; HermanMuehlsteln, H. Muehlstein & Co., Inc., NewYork City; Erwin M. Desser, Desser Tire &Rubber Co., Los Angeles; Joseph Schapiro,
S. Schapiro & Sons, Inc., Baltimore; A. J.
Levine, A. Edelstein & Sons, Toledo; A. Nicol-
letti, D. Bennedetto, Inc., New York City;
Edward Solomon, Max Solomon Co., Pitts-
burgh; Frank A. Alter. Harry Alter & Sons,Davenport, Iowa; Benjamin Schwartz, Schi-avone-Bonomo Corporation, Jersey City, N. J.
Mrs. Evans to head
Consumer Relations
Appointment of Mrs. May ThompsonEvans as chief of the Consumer Rela-
tions section, Consumer Division, Office
of Price Administration was announced
September 18 by Miss Harriet Elliott,
Associate Administrator of OPA.
Mrs. Evans will direct the work of the
consumer relations staff in securing con-
sumer cooperation in the total defense
effort, interpreting the OPA program to
the consuming public, assisting adjust-
ments In daily buying and living habits
made necessary by the defense program,
and in securing direct knowledge of con-
sumer problems and reactions as a basis
for Government policy and action.
Mrs. Evans comes to OPA from the Of-
fice of Civilian Defense where she served
as a special assistant on civilian volun-
teer service and consulted with defense
councils and civic and professional or-
ganizations on national defense activi-
ties.
Previously, she was director of the
North Carolina Employment Service and
State director of the National Reemploy-
ment Service.
10 • DEFENSE • September 23, 1941
PRICE ADMINISTRATION . . .
Ceiling set on 12 classes of ethyl alcohol
in lots of 500 gallons or moreMaximum prices approximating the
levels that have generally prevailed dur-
ing the third quarter of the current year
are imposed on 12 leading classifications
of ethyl alcohol, an indispensable raw
material to the defense program and
civilian industry, in a schedule an-
nounced September 17 by OPA Adminis-
trator Henderson.
A top price of 24 V2 cents a gallon "at
works" is set for "Specially Denatured
2B," the basic formula among the 12
classifications covered, in tank car lots
in Eastern territory. Differentials are
established for the 11 other formulae.
In the past 12 months the tank car
price of ethyl alcohol "SD2B" has risen
from 20 V2 cents to 24 V2 cents a gallon
and is threatening to increase still
further. On August 30, Mr. Henderson
requested the trade not to increase the
prices of industrial solvents, including
ethyl alcohol, above the level of July 29,
1941, without prior consultation with his
office.
Majority complied with request
The majority of producers and dealers
adhered to this request, but, unfortu-
nately, a number of small transactions
took place at considerably higher prices.
One of the largest producers quoted a
price of 49 cents a gallon for the "3D2B"formuia in connection with a proposed
defense order, while another manufac-
turer added 5 cents a gallon to his price
for the same type.
Supplies of ethyl alcohol are not suf-
ficient to satisfy demands of the defense
program and civilian industry. Further
price increases under these circumstances
can only be inflationary in character,
OPA held.
A conference was held with membersof the industry on September 12, 1941,
at which OPA was assured that the 24%-cent per gallon price on the "SD2B"formula was the list price quoted by the
great majority of producers during the
third quarter and one which they planned
to continue through the final quarter of
1941.
Enters into scores of defense products
Ethyl alcohol enters into scores of
products now being made under the de-
fense program, including such vital ma-terials as smokeless powder, cordite, anti-
freeze, and drugs. There is scarcely any
branch of civilian industry which does
not use ethyl alcohol, directly or indi-
rectly, in the manufacture of innumer-
able articles of commerce.
"Completely denatured" alcohol, of
which three formulae and one propri-
etary type are covered by the schedule, is
ethyl alcohol fully denatured for gen-
eral use and is sold mainly for anti-
freeze purposes.
"Specially denatured" alcohol is ethyl
alcohol suitably denatured for use as a
raw material for chemical and other
manufacturing operations.
Applies to lots of 590 gallons or more
Most of the ethyl alcohol used by in-
dustry is manufactured by the fermen-
tation of blackstrap molasses, a byprod-
uct of cane sugar mill operations. Grain
is another source of ethyl alcohol, while
large supplies also are obtained syn-
thetically from gases produced in the
"cracking" of petroleum.
The ceiling prices apply only to trans-
actions in quantities of 500 gallons or
more and manufacturers are required to
file monthly with OPA sworn state-
ments that all such sales daring the pre-
ceding calendar month were made in
compliance with the schedule. Maxi-
mum prices are computed on the basis of
tank car lots in Eastern territory and
premiums are stipulated for smaller
quantities. The addition of 4 cents a
gallon is permitted in computing prices
in Pacific territory.
OPA to watch small sales
While the price schedule does not ex-
tend to quantities of less than 500 gallons
end does not formally apply to jobbers,
dealers, and other middlemen, Mr. Hen-
derson stated, OPA will keep a careful
watch over all such transactions. Pro-
ducers and sellers are requested not to
alter or amend to the disadvantage of
their customers any of the prices, dis-
counts, terms of trade, etc., which pre-
vailed during the third quarter of 1941.
Buyers are urged to report to OPA any
substantially unfavorable revisions that
producer? or sellers attempt to impose as
compared with the prices, terms, andconditions laid down in price lists in ef-
fect during the third quarter of the cur-
rent year.
Pennsylvania crude prices
to be discussed September 24
Pennsylvania grade crude oil produc-
tion costs and prices will be discussed
at a meeting to be held in Washington
September 24, OPA Administrator Hen-derson announced September 18.
A schedule of maximum prices for
Pennsylvania grade crude has been in ef-
fect since August 23.
The meeting, which will be in room332, Federal Trade Commission Building,
Constitution Avenue at Sixth Street
NW., will be open to producers, sellers,
and refiners of Pennsylvania grade crude
oil and any other members of the oil
trade who may be interested.
Mr. Henderson pointed out that at the
time the Pennsylvania grade crude price
ceiling was issued, he announced the pro-
ducers would be given every opportunity
to demonstrate to his office "that higher
prices are justified in the public
interest."
"I had hoped that precise cost data
pertinent to this question would be sub-
mitted in advance of any meeting with
members of the industry to permit study
and analysis by my staff," the Adminis-trator added. "Very little material hasbeen received to date. I should like to
see a substantial amount of additional
information come in before the date set
for the meeting.
"Obviously, any further action onPennsylvania grade crude oil prices mustbe taken by OPA on the basis of ade-
quate facts and figures submitted for
proper analysis."
* * +
Weltner named assistant
director of price division
Appointment of Philip Weltner, of
Atlanta, Ga., as assistant director of the
price division, OPA, was announced Sep-
tember 16 by Leon Henderson, OPA Ad-
ministrator.
Mr. Weltner, consultant to the Ten-
nessee Valley Authority on commercial
utilization of research, will handle or-
ganizational problems of the price divi-
sion, and will assume responsibility for
directing its work in the lumber, build-
ing materials and other important fields.
September 23, 1941 • DEFENSE • 11
Liquidation permitted for
preceiling sugar futures
Permission to liquidate futures con-
tracts was granted September 20 to per-
sons who established their long or short
positions prior to August 14, 1941, the
date on which the raw sugar price sched-
ule became effective, in a supplement to
the schedule Issued by OPA Administra-
tor Henderson. This action also vali-
dates previous liquidations of such con-
tracts.
One of the effects of this supplement
will be to enable such holders of Sep-
tember futures contracts to make or take
delivery of actual sugar without violating
the schedule. The exception also ap-
plies to contracts for other delivery
months entered into prior to August 14.
• • •
Amendment simplifies filing
of priorities forms on steel
An amendment to General Preference
Order M-21, making less burdensome the
filing of forms by producers and pur-
chasers of steel, has been announced by
Priorities Director Nelson. The amend-
ment makes some procedural changes.
One change permits the War and Navy
Departments, and warehouses, to file re-
ports of all orders in a single group clas-
sification placed during a single month
on one PD-73, instead of filing a form at
the time of placing each order. In each
case, the form must be filed with the pro-
ducer on or before the fifth of the follow-
ing month.
Another paragraph in the amendmentprovides that when steel is shipped by a
producer direct to a customer of a ware-
house, Form PD-73 is to be filed by the
customer and not by the warehouse.
In the case of export sales, the amend-ment calls for the filing of Form PD-73with the Iron and Steel Branch of the
OPM, as well as with the producer. Thetwo paragraphs dealing with export sales
read as follows
:
On all export sales as denned In group E of
Form PD-73, Form PD-73 shall be filed notonly with the producer but also with the Ironand Steel Branch, Office of Production Man-agement.On all export sales as defined In group E of
Form PD-73 (except sales to purchasers in theDominion of Canada) where orders areplaced prior to December 1, 1941, Form PD-73may be filed by the accredited agent or exportdivision of the producer in the United States.
Ceiling prices announced for waste paper
east of Rockies, effective October 1
Acting to stabilize a seriously disturbed "This patriotic segment of the Industry,
price situation, Leon Henderson, ad- however, has been unable to keep prices
ministrator, OPA, on September 20 fixed within those established by the agree-
maximum prices for all grades of waste ments because of the large numbers of
paper sold In the area east of the Rocky operators who have put high prices be-
Mountains. fore national welfare, and have therefore
The maximum prices, set forth in attempted in every way and by every
Price Schedule No. 30, become effective subterfuge to circumvent the price
October 1, 1941, and were determined agreements."
after an exhaustive investigation and The maximum prices per short ton es-
after numerous conferences with repre- tablished for all grades of waste paper
sentatives of all branches of the trade, f. o. b. point of shipment to mill, whether
They are in line with the prices prevail- loaded on car, truck, or other means of
ing on June 16, 1941. conveyance, are as follows:
The prices established in the schedule, No j m jXed paper 913.00
Mr. Henderson emphasized, are the max- Super-mixed paper 14. oo
imum prices that consuming mills can oveHssue^new^!"""!"™"!!! 17.00pay their shippers at point of shipment. Old corrugated containers. 16.00
Prices to be paid by wholesalers, brokers, °Id kraft corrugated containers.... 27. 00
, ,New corrugated cuttings 18.00
and dealers should be below these maxi- box board cuttings. 14. 50
mum prices White blank news 33. 00Extra manilas 37.00
Doesn't apply west of Rockies Sew
,
m,anl
Jal^
vel0Se
.
cuttlne6-— 54. 00rv J No. 1 hard white shavings 50.00
Mr. Henderson explained that maxi- Hard white envelope cuttings 60.00
mum prices are not being established in ££ ^l^vlngs^"?:""."" si', bothe area west of the Rocky Mountains No. 1 heavy books and magazines.. 31.50
because investigation has shown that at ~lf?„!^ ™" V,i;;: « ™.
Overissue magazines 33.50the present time no inflationary price No. 1 mixed or colored ledger 38. 50
rise is threatened in that area. No. 1 white ledger 42.50_. _ . . . .. ... No. 1 assorted kraft (old kraft) 30.00
Since the effective date of the schedule New 100 percent kraft cuttings 62. 00
is October 1, ample time is being given New 100 percent kraft corrugated
for the completion of existing contractscu mgs
and the liquidation of inventory. For The hiShest Qualities of the above-
this reason, no provision was included llsted grades are deflned in the schedule.
to permit completion of contracts after No service charges permitted
October 1 at prices higher than those The maximum prices take into accountset forth in the schedule. the baling and other costs borne by tneThe defense effort has placed an in- waste paper producer> and no dif-
creasing burden upon the country's iel-entials or service charges may be
waste paper supply—a burden made added LoWer prices than those set forthgreater because the war has shut off the ln the schedule may be charged, de-channels of trade through which wood manded, Paid or offered,pulp was imported. Waste paper is a Whiie the SCheduIe purports to coverbasic raw material in the manufacture all grades of waste paper sold east of theof containers for many types of civilian Rocky Mountains, Mr. Henderson ex-goods and war materials. plained that in the event any claim is
It is anticipated that the supply situ- made that a grade has been omitted, OPAation will be relieved shortly by the na- wouW accept an affidavit setting forth all
tional waste paper conservation pro- relative data concerning the allegedgram and by the usual seasonal pick-up omission from the person or personsin collections during the fall months. making such a claim. The omission, if
Voluntary program frustrated any. would be corrected if investigation
n 1 _«. /^oa v. * showed that such action was justified.For several months OPA has at-
tempted, through individual voluntary * * *price agreements, to prevent unwar-
RfbNn QAIF INrRFASFSranted price increases. These voluntary DvNU SALE, llXtKLAdnd
agreements will continue in force until Sale of $4,453,748 ln Defense Savings
the effective date of the schedule. Stamps during August showed an In-
"The responsible dealers and mills crease of 30 percent over sales for July,
have evidenced an admirable willingness the Treasury Department has an-
to cooperate," Mr. Henderson said, nounced.
12 • DEFENSE • September 23, 1941
furnace coke
put under ceiling near present levels
Prices for byproduct foundry coke andbyproduct furnace coke, important ele-
ments of cost in the manufacture of
iron and steel products, are frozen at
approximately current levels in Price
Schedule No. 29 announced September 19
by OPA Administrator Henderson.
The new schedule will go into effect
as of October 1, 1941.
Pig iron, iron and steel scrap, and semi-
finished and finished iron and steel prod-
ucts already are covered by ceilings andthe latest move is considered essential to
continued stability of the iron and steel
price structure.
Only byproduct foundry and furnace
coke are covered by the present schedule.
However, Mr. Henderson said, promptaction will be taken to establish ceiling
prices for beehive, domestic or other
kinds of coke, when and if it becomesnecessary.
Beehive coke under study
Beehive coke, in particular, is the sub-
ject of study by OPA to determine the re-
lationship between price and available
supply. Cost changes in the industry anddemand for beehive coke over the re-
mainder of 1941 are among the principal
points being looked into.
Prices of byproduct furnace coke andbyproduct foundry coke are now from $1
to $1.25 a ton above levels prevailing ayear ago.
Establishment of ceiling prices on by-
product furnace coke and byproductfoundry coke follows extensive consulta-
tion with members of the industry. Theexisting price structure, which, in effect,
is maintained in the OPA schedule, wasstated by the producers to be satisfactory
and many of their suggestions as to
regional differentials and trade practices
have been followed.
Byproduct foundry coke is a large size,
high quality coke that is used by found-
ries in the production of iron and steel
castings. It is made from bituminous
coal by the steel companies, by merchantovens and by public utilities.
Byproduct furnace coke is used in blast
furnaces which make pig iron out of iron
ore and limestone. Like foundry coke,
It is made by steel companies, merchantovens, and by public utilities. At present,
few producers are selling byproduct fur-
nace coke on the open market.
Domestic coke and water gas coke are
not metallurgical types and have no im-portant bearing on the price structure
of the iron and steel industry.
Maximum prices for byproduct foundry
coke, P. O. B. oven in cars, range from$8.50 to $12.25 per net ton of 2,000 pounds,
depending upon the location of the ovenplant. However, the complexity of the
prevailing price structure is recognized byseveral exceptions to the general pro-
visions.
In order not to disturb, for the time
being, existing relationships between coke
producers and foundries using particular
grades of coke, the schedule allows prices
above the ceiling to be charged under cer-
tain conditions. To qualify under this
exception the seller (1) must have re-
ceived from such a foundry a price in ex-
cess of the ceiling price during the 6
months ending September 15, 1941, and(2) must file with OPA on or before Sep-tember 27, 1941, a list of the foundries to
which the exception applies, together
with the prices at which past sales were
made.
There is considerable doubt as to
whether it is desirable to continue this
provision as a permanent part of the
schedule. The entire matter will be
studied by OPA as soon as detailed infor-
mation on existing relationships of this
type has been accumulated.
Some exceptions madeAny producer or buyer of foundry coke
in a position to establish that the ex-
ception is causing undue hardship mayapply to OPA for relief under Section
1345.6 of the schedule, which provides
that "persons complaining of hardship or
inequity in the operation of this schedule
may apply to the Office of Price Adminis-
tration for approval of any modification
thereof or exception therefrom."
The maximum price, F. O. B. oven, onbyproduct furnace coke, according to the
schedule, shall be 75 cents per net ton
above the weighted average price, P. O. B.
oven, at which deliveries were made dur-
ing the first quarter of 1941. Theweighted average price means the aver-
age of the prices for which byproduct
furnace coke was sold during the first 3
months of 1941, weighted by the tons sold
at each price. Producers and sellers of
byproduct furnace coke are required to
file with OPA on or before September 27,
1941, their prices and quantities sold dur-
ing the first quarter of 1941.
Above-ceiling copper scrap contracts madebefore August 19 may be filled conditionally
Contracts entered into prior to August
19, the effective date of the copper scrap
schedule, calling for delivery of scrap
acquired at prices in excess of the maxi-mums, may be completed at higher thanceiling prices without awaiting receipt
of formal permission from the Office of
Price Administration, Leon Henderson,
administrator, announced September 19.
However, the administrator cautioned,
sellers must make application for formal
permission and should the necessary
permission be finally denied, must re-
fund to the buyer any amounts received
over and above the maximum price for
the type of scrap involved.
Buyers should inform OPABuyers who accept delivery under these
conditions should notify OPA of the
names and addresses of their sellers andof the grades and quantities of each
grade of scrap delivered, together with
the prices paid.
This new procedure is considered nec-
essary to facilitate an uninterrupted
flow of copper scrap to smelters. Smelt-
ers have called the attention of OPA to
the fact that dealers who had accumu-lated inventories at higher than ceiling
prices before the schedule became effec-
tive have been reluctant to make deliv-
eries of this scrap without first having
obtained specific permission of OPA to
settle at contract prices above the maxi-
mums. Since the formalities of applica-
tion necessarily consume some time, the
flow of scrap has been interrupted.
No change in basic policy
Mr. Henderson pointed out that this
procedure is of an emergency character,
extending only to copper scrap, and does
not represent any change in basic policy.
Trade reports to the effect that whole-
sale exceptions have been granted fromthe copper scrap ceiling prices are in-
correct, the administrator said, and he
emphasized that the schedule remains
in full force and effect.
Much of the delay in the issuance of
permits, the administrator stated, has
been occasioned by failure of some appli-
cants to follow the printed instructions.
As a result, numerous permits have hadto be returned for additional informa-
tion. Applicants are requested to exer-
cise reasonable care in this connection
to the end that action by OPA may be
expedited.
September 23, 1941 • DEFENSE • 13
New formula adjusts grey goods ceilings
to market price of "spot" raw cotton
Ceiling prices that will be automati-
cally adjusted in direct relationship to
the market price of "spot" raw cotton will
be established for the types of cotton
grey goods now covered by Price Sched-
ule No. 11 under a new formula an-
nounced September 19 by OPA Adminis-
trator Henderson.
Discussions will be held with repre-
sentatives of the combed and carded
cotton yarn trade in the immediate fu-
ture with a view to similarly tying in
yarn prices with the price of cotton.
The grey goods formula was developed
by OPA after lengthy consultation with
a cotton subcommittee of the CottonTextile Advisory Panel, representing all
branches of the grey goods trade. It
received the unanimous endorsement of
the panel at a meeting September 18
and will be applied to all constructions
of grey goods now included in the sched-
ule as soon as an appropriate amend-ment can be drafted and issued.
Until a revised schedule is issued, how-ever, present ceiling prices for grey goods
will remain in full force and effect.
As applied to standard print cloth, the
type of cotton goods used as a base in
the present grey goods schedule, the newformula provides for a change of V2 cent,
upward or downward, in the ceiling price
for every change of 43 points in the
price of "spot" raw cotton on 10 spot
markets as reported by the Departmentof Agriculture.
The starting base will be 43 cents a
pound for standard print cloth and 15.99
cents a pound for cotton. On the basis
of current market prices for cotton, this
would mean a maximum price of 44 V2
cents a pound for print cloth.
Decision to tie the prices of yarns andgrey goods to the price of cotton wasreached by OPA after raw cotton prices
had moved up 2 cents a pound from the
levels that prevailed on July 19, 1941,
when the ceiling price of print cloth
was placed at 43 cents a pound. Paced
with this substantial increase in rawmaterial costs, the yarn and cloth manu-facturers requested that OPA give con-
sideration to further adjustments in the
ceiling prices.
At a meeting of the Cotton Textile
Advisory Panel on September 9, OPA re-
quested that a cotton subcommittee be
designated by members of the panel to
Slight rise in rayon yarn doesn't justify
change in grey goods ceiling, OPA holds
Increases averaging somewhat less
than 4 percent in the prices of rayon
yarn announced by a leading producer
were made with full knowledge of < the
Office of Price Administration, Adminis-
trator Henderson stated September 17.
OPA had previously entered objections
to somewhat larger advances proposed
by certain branches of the trade. Thepresent raises are not large enough to
justify any upward revision of the re-
cently established rayon grey goods
ceilings, OPA said, since that schedule
made allowance for moderate increases
in costs. Rayon yarn prices, on the
other hand, have not changed impor-
tantly over the past 2 years, although
costs of the producers have risen during
this period.
"The near-capacity level of operations
enjoyed for many months by yarn mills,
together with the current price increase,
is expected to enable producers to con-
tinue to supply the requirements of the
weaving and hosiery trades without any
further advances in the price of yarns.
Should prices rise further, we are pre-
pared to take immediate action," Mr.
Henderson stated.
The administrator disclosed that con-
sideration is being given to relaxing the
requirement in the rayon grey goods
schedule that sellers include in sales
contracts full details of construction of
the fabrics. Complaints have been re-
ceived from the trade that this require-
ment works hardship in the case of
style innovators.
Attention was called to a statement
made by Mr. Henderson at the time the
grey goods price schedule was issued in
which he said it was expected that the
prices of various constructions not cov-
ered by ceiling prices would fall into line
with the goods included in the schedule.
OPA is watching both the grey goods
and finished goods markets closely, the
administrator said, in order that promptaction may be taken if it becomes neces-
sary.
explore the question of an automatic sys-
tem of adjustments with Price Admin-istration officials. Subcommittees also
were named at that time to advise on
the various constructions which it is
planned to add to the grey goods
schedule.
Automatic adjustment aids flow
In commenting on the new system of
adjusting cotton textile ceilings, Mr.
Henderson stated that they were not
predicated on the probability of any con-
tinued rise in the price of raw cotton.
"But the prices of raw cotton are deter-
mined," Mr. Henderson stated, "by cur-
rent demand and supply conditions andby the policies of the Government with
reference to Government-owned sur-
pluses. So long as this is the case there
is the prospect of certain upward anddownward fluctuations in the price of
raw cotton. At the present time to freeze
this market when the supply position is
basically good would be an unnecessary
inteiference with the system of free
prices. But in the past these fluctuations
have necessitated changes in the ceiling
prices for cotton grey goods and during
the period that changes were under con-
sideration the flow of commodities wasnecessarily slowed down or disrupted.
This automatic adjustment obviates the
occasion for any such delays and is ex-
pected to facilitate the flow of textiles
under the price ceiling. It is a special
plan to meet a special situation and the
Office of Price Administration has no
present plans to apply the system to
other commodities."
Additional types to be added
Among the new constructions which it
is planned to add to the schedule as soon
as the various price differentials can be
worked out are: chambrays, coverts, den-
ims, poplins, piques, drills, twills, jeans,
and additional constructions of carded
broadcloth. The print cloth group will
be reclassified to give more detail.
These additional types of goods were
selected with the advice of the subcom-
mittees of the Cotton Textile Advisory
Panel. Upon their inclusion in the
schedule, it is estimated that over 80
percent of the cotton textile industry's
entire range of fabrics will be covered by
ceiling prices.
Provision will be contained in the en-
larged schedule to allow for the extra
costs involved in production of so-called
"specification" goods, i. e., fabrics madeto order to suit the special requirements
of certain customers.
14 • DEFENSE • September 23, 1941
Consumers need more data on merchandise
for intelligent buying, panels decide
Plans for helping consumers in their
buying problems in the current national
emergency by providing more adequate
information about merchandise were dis-
cussed by the advisory panel on consumer
goods distribution and use at a meeting
held September 18 in the Consumer Divi-
sion of the Office of Price Administra-
tion and Civilian Supply.
It was the recommendation of the panel
that action be taken to bring more data
to consumers about contents of mer-
chandise and its use and care as rapidly
as possible in order that buying might
be done more intelligently and strategic
materials conserved. This would be done
by more and better labeling.
Subcommittees to plan program
In addition to this type of informa-
tion, it was agreed that consumers should
also be provided with data on quality
deterioration, where this has taken place.
Subcommittees have been appointed
which will plan for a program of action
to be taken up at the next meeting of
the panel. In the development of this
program it was agreed that the close
cooperation of consumers, retailers, man-ufacturers and the Consumer Division
of OPA is necessary.
The governmental and institutional
purchasing agents' panel discussed ways
and means by which purchasing in these
organizations could be put on a more
scientific basis. Wider dissemination of
available information which is obtain-
able both from Government and from
associations in the field was planned. Asmall committee was set up to develop
this distribution of data.
The standards advisory panel dis-
cussed three household appliances—the
mechanical refrigerator, the washing
machine, and the electric flat iron. A re-
port was received from the committee of
the American Standards Association,
which is working on a project of simpli-
fication at the request of the ConsumerDivision in order that strategic mate-
rials may be conserved. Only general
phases of the subject were discussed at
the panel meeting. Pinal recommenda-tions will wait upon the report of the
committee of the American Standards
Association.
The three panels are expected to meet
again on the third Friday of next month.
Retail anthracite prices should stay
at about September 15 level, OPA believes
The Office of Price Administration has,
pending further study of the anthracite
situation, decided not to stand in the
way of increases in mine prices through
September 15 which the industry con-
tends are necessary to cover the opera-
tors' higher wage and supply costs.
Prices at the mine have been advanced
5CV Per ton over those prevailing last
winter on the large sizes of coal, and 25<t
per ton on buckwheat. A new wage
agreement signed in May granted mine
workers a general 10 percent wage
increase.
However, the Office of Price Adminis-
tration is also concerned about retail
price advances which have shown a
tendency to outrun the prices at the
mine.
Retailers in some areas have been tak-
ing more than their usual mark-up. In
some cases, the increase of 500 per ton
In the mine price has been used as an
excuse for a $1.00 per ton increase in
prices charged by retailers to their cus-
tomers. Retailers' gross margins (the
difference between the retail price andthe mine price plus freight) have in-
creased 20 percent since last Septemberin some major anthracite consumingcities.
That retailers' labor and equipmentcosts may have increased somewhat over
last year is acknowledged by OPA fuel
authorities.
Anthracite mine operators have agreed
not to make any advances in the mine
prices above those effective on Septem-ber 15 except after consultation with the
Office of Price Administration. With the
mine price stabilized, consumers have aright to expect retail prices to level out at
about the September 15 level. Consumersfaced with advancing retail quotations
after that date are asked to report themto the Office of Price Administration.
Domestic hide prices
corrected by new amendment
The Office of Price Administration
acted September 18 to correct an error in
an amendment issued September 13, 1941,
establishing price differentials for all
grades and classifications of domestic
hides under Price Schedule No. 9, Hides,
Kips, and Calfskins.
As issued, the maximum price sched-
ule for hides other than packer classifi-
cations sold on an unselected basis listed
maximum prices of 14 V2 cents for
trimmed and 14 cents for untrimmedhides from branded steers and cows. Anamendment, effective September 18, cor-
rects these prices to 14 cents and 13 V2
cents, respectively.
The new amendment also establishes a
maximum weight of 30 pounds for "coun-
try" kipskins—skins weighing more thancalfskins but less than hides, and whichare of irregular pattern or show pro-
nounced inferiorities.
• • •
Consumers asked to resist
antifreeze price increase
The practice of a large distributor of
ethyl alcohol antifreeze in raising his
retail price from $1.00 to $1.50 a gallon
recently is nothing more nor less thanprofiteering, Office of Price Administra-
tion chemical authorities state. Theyurge motorists to refuse to pay the
higher price.
OPA placed a ceiling on completely de-
natured ethyl alcohol last week, estab-
lishing a tank car price of 24 ]/20 Per
gallon.
This raw material price does not justify
a retail price increase. There have beenno. other antifreeze production cost in-
creases that warrant this advance, OPAexecutives explain.
Suppliers of the branded products whoraise their ethyl alcohol antifreeze prices
50e per gallon are simply taking advan-
tage of the heavy demand on ethyl alco-
hol for defense purposes and capitalizing
on their expectations of increased civilian
purchasing power.
OPA chemical authorities are asking
consumers to help them forestall infla-
tionary price rises, by refusing to buy the
anti-freeze at unreasonable price levels.
If, after shopping around at service sta-
tions, auto supply stores, or mail order
houses, consumers are unable to secure
supplies at a reasonable price, they are
asked to report instances of profiteering
to Leon Henderson, OPA administrator.
September 23, 1941 • DEFENSE • 15
News for Retailers
Shoe Prices
In interpreting for shoe retailers the
new amendment to the hide price sched-
ule, OPA leather executives call attention
to the fact that the amendment does not
Justify any change in the price of leather
or leather products.
In the original schedule, effective June16, 1941, a ceiling price of 15 cents per
pound was fixed for domestic hides. Un-der the new amendment, differentials
varying from l2 to 4 V2 cents per pound
are graded downward from a top price
of 15 ' 2 cents according to the grade of
hides, kips, or calfskins.
The general level of prices during re-
cent months is not being affected by the
amendment, but differentials generally
prevailing prior to the institution of the
June ceiling are reestablished.
At the time the first hide schedule wasinstituted hide prices were undergoing
an alarming advance in price. After
the June ceiling was established 10 out
of the 12 classifications of packers hides
finally advanced to the ceiling price of
15 cents per pound and tanners were re-
quired to buy combination lots of differ-
ent grades of hides whether they hada use for them or not. This tended to
increase the costs of small specialty tan-
ners particularly.
The cost of leather in a medium priced
women's shoe represents approximately
37 V2 cents, and in a medium priced men's
shoe 40 percent or more of the factory
price. The inflationary movement in hide
prices would have resulted, therefore, in
substantial increases in the price of
shoes, if the two hide schedules had not
been issued.
Reports from the annual leather showheld last week in New York indicate that
there may be some advances in spring
shoe prices, but OPA leather authorities
consider increases due to leather costs
to have been minimized.
In his recent speech before the Na-tional Shoe Retailers Association style
conference at the Waldorf-Astoria, Mer-rill A. Watscn, executive vice president
of the Tanners' Council of Americapointed out that production of shoes for
the first 7 months of 1941 was 286,000,000
pairs, or 25 percent above the same period
in 1940, but that sales data indicate that
the total retail volume for the first 7
months this year was only 15 percent
above 1940. Purchases for the ArmedServices took only a very small percent-
age of the output. The increase in pro-
duction substantially exceeded the actual
absorption of shoes by consumers.
Mr. Watson cautioned retailers that
holding more inventory might seem de-
sirable at present, but the time invariably
comes when stocks are a profoundburden.
Latest statistics of the Department of
Commerce indicate that the cost value of
inventories held by 2,500 chain shoe
stores (the only type of stores on whichdata are available) rose about 2 percent
during July and was about 8 percent
higher at the end of the month than the
month-end total for July 1940.
In discussing the import situation, Mr.Watson said that hides and skins are
available for the United States in the
various world markets, to a greater ex-
tent probably, with one or two excep-
tions, than in normal periods. Totaling
up accessible world resources, the Tan-ners' Council executive estimated a po-tential supply for the United States of
10,000,000 to 12,000,000 cattle hides, of
3,000,000 to 4,000,000 calf and kip skins,
30,000,000 to 50,000,000 sheepskins, andperhaps 50,000,000 goatskins. However,he pointed out that the potential avail-
ability of supplies centers largely on theproblem of shipping.
Harold M. Florsheim, adviser on shoes
and leather in the Division of Purchasesof the Office of Production Managementspoke at the retailers' meeting, sayingthat while controls and priorities havenot involved shoes, in order to avoid com-plications of this type, "it is essential andnecessary that full cooperation be given
the Government on a voluntary basis."
Offerings of leather by tanners ex-
hibited less color variation than usual, in-
dicating that spring shoes will appear in
a narrower range of tones.
In addition, the women's style commit-tee of the National Shoe Retailers Asso-
ciation recommended to the manufac-turers at a meeting coincident to the
leather show that styles be simplified in
order to reduce the number of patterns
and lasts required.
Such trends should be of particular
value to retailers, since excessive style
variations in shoes lead to heavy inven-
tory-to-sales ratios, a major problem of
the shoe retailing business.
With the reduction in the variety of
leather colors, there may very well be
an increase in the hand-staining of shoes
in shoe stores. This antiquing process
offers a further advantage in that it tones
down slight surface or grain aberrations
that would discourage the use of other-
wise good upper leather.
Another result of the effort to conserve
leather is perhaps reflected in the promo-tion of the Norwegian moccasin style of
shoe. This design permits the use of
smaller pieces of leather than in ordinary
types of shoes and leads to a saving in
material.
Shirt Simplification
The first simplification of lines andproducts in the clothing field is expected
as the result of a meeting of the Na-tional Association of Shirt and PajamaManufacturers September 11.
A resolution urging the industry to
work out a course of simplification for
men's shirts and pajamas was unani-
mously adopted by the meeting, whichwas attended by 40 manufacturers fromvarious sections of the United States.
The Consumer Division of OPA is
participating in this latest move of the
industry, and is expecting to make stand-
ardizing recommendations on a numberof important factors, among which are
variety of design, color, and fabrics;
wrapping material and method of pack-
ing, standardization of sizes and shrink-
age factors; and accurate and informative
labelling.
The simplification movement is receiv-
ing impstus from defense agencies which
see in such a program a means of saving
plant, labor, or materials for defense pro-
duction, of expanding output of scarce
civilian commodities to prevent infla-
tionary price increases, or of avoiding
quality deterioration of products with
fixed ceiling prices that are experiencing
rising material costs.
Concerted action by manufacturers to
simplify their lines and products will not
call forth antitrust prosecution as long
as certain conditions are met, according
to Assistant Attorney General ThurmanArnold.
In a letter to Under Secretary of Com-merce Wayne C. Taylor recently, Mr.Arnold said:
"I understand from your plan of pro-
cedure that simplification and standardi-
zation proposals will originate with de-
fense agencies, the Department of Com-merce and industry, and that confer-
ences will be held with representatives of
specific industries and interested Govern-
ment agencies to obtain advice and in-
formation on particular proposals.
"In my view, continued adherence to
the specific purpose of simplification will
not raise any questions under the Fed-
eral antitrust laws."
16 • DEFENSE • September 23, 1941
PURCHASES . .
.
OPM moves to reduce number of specifications
to get more steel from existing facilities
Increased production of steel from
existing facilities during the national
emergency by concentration on a mini-
mum number of steel specifications, com-
positions, sizes and shapes is expected
to result from a new project launched
by the Office of Production Management.At the request of OPM, three national
organizations—the American Society for
Testing Materials, Society of Automotive
Engineers, and the American Iron and
Steel Institute—will carry out the project
with the collaboration of the War andNavy Departments, under the general
supervision of OPM. An administrative
committee to direct the work has been
formed of representatives of these five
bodies with advisers from other inter-
ested organizations, and is headed by
C. L. Warwick, consultant in the Gov-
ernment Conservation Branch of the
Purchases Division, OPM, and Secretary-
Treasurer of the A. S. T. M.
To establish emergency specifications
The goal as defined by the administra-
tive committee at its first meeting on
September 12 is to establish, as promptly
as possible, National Emergency Steel
Specifications, which in effect involves
the selection of the minimum number of
steel specifications, compositions and
sections necessary to meet the require-
ments of national defense, both direct
and indirect.
It is believed that the productive ca-
pacity of the steel industry, and of the
manufacturing industries using steel for
defense equipment, can be materially in-
creased within present facilities by con-
centration of production upon a reduced
number of steels, particularly with re-
spect to alloy steels. Consideration will
necessarily be given to nondefense re-
quirements for steel in establishing the
list of National Emergency Steel Specifi-
cations.
For use in priorities
It is the intention of OPM, through
Its Iron and Steel Section, to use the list
as an aid in administering steel priorities
and allocations.
The administrative committee indi-
cated that the purpose is not to write
new specifications, but primarily to se-
lect from existing specifications the
practical minimum, in order to get maxi-
mum production of planes, tanks, guns,
ships, and ail other defense equipment.
A classification of steel products has
been made, and committees of technical
representatives of both users and pro-
ducers of steel are being organized to
handle the work. The committees oncarbon and alloy steel plates, and on
aeronautic steels, will be the first to get
under way. These committees will take
full advantage of the extensive stand-
ardization which has already been ac-
complished in this field.
After review by the administrative
committee, the recommendations of the
technical committees will be referred to
OPM.The members of the administrative
committee are as follows:
Chairman—C. L. Warwick, OPM consultant.
Representing the American Society forTesting Materials—N. L. Mcehel, manager,Metallurgical Engineering, Westinghouse Elec-tric and Manufacturing Co.; alternate, JeromeStrauss, vice president, Vanadium Corpora-tion of America.
Representing the Society of Auto-motiveEngineers—F. P. Gilligan, secretary-treas-urer, Henry Souther Engineering Co.; alter-nate. J. B. Johnson, chief, Materials Section,Air Corps, U. S. A.
Representing the American Iron and SteelInstitute—E. C. Smith, chief metallurgist,Republic Steel Corporation; alternate, C. M.Parker, Secretary, Committee on Manufac-turing Problems, American Iron and Steel
Institute.
Representing the War Department—Lt.
Col. W. R. Slaughter, U. S. A., chief. Ord-nance and Steel Divisions, ProductionBranch, OfBce of Under Secretary of War; al-
ternates, MaJ. J. H. Prye, D. S. A., Ordnance,War Department; Lt. J. H. Fitch, U. S. A.,
Standards Division Planning Branch, Office of
Under Secretary of War; J. B. Johnson.Representing the Navy Department—Lt.
Comdr. E. C. Forsyth, U. S. N., Eureau of
Ships, Navy Department; alternate. Lt. Comdr.J. E. Sullivan, U. S. N. R., Bureau of Aero-nautics, Navy Dept.
Other alternates to be appointed.Advisers are as follows:
H. S. Rawdon, chief, Division of Metallurgy,National Bureau of Standards; alternate,
W. H. Swanger, Metallurgist, National Bu-reau of Standards.
N. F. Harriman, vice chairman. FederalSpecifications Executive Committee, Pro-curement Division, Treasury Department.
J. W. McNair, engineer, American Stand-ards Association.
H. LeRoy Whitney, executive consultant,
Iron and Steel Section, OPM; alternate, G.B. Waterhcuse, consultant, Iron and Steel
Section, OPM.C. E. Stryker, Standards Coordination
Branch, Aircraft Section, OPM.C. W. Test, steel industrial specialist, Civil-
ian Allocation Division, OPM.E. J. Ilergenroether, consultant, Conserva-
tion and Substitution Section, OPM.K. D. Williams, principal materials engi-
neer (metallurgical). Bureau of Ships, NavyDepartment.
$302,322,126 War Department
contracts cleared September 1
1
through September 1
7
Defense contracts and letters of in-
tent totaling $302,322,126 were awarded
by the War Department and cleared by
the Division of Purchases, Office of Pro-
duction Management, during the period
September 11 through September 17.
This compares with a total of $428,835,-
709 for the previous week.
Contracts and letters of intent for
construction amounted to $107,411,594;
contracts for equipment and supplies to
$36,826,073; contracts for ordnance to
$10,293,959 and contracts for aircraft to
$147,790,500.
A compilation of announcements for
the week follows:
CONSTRUCTIONMion Construction Co., Atlanta, Ga.; con-
struction of Advanced Twin Engine FlyingSchool at Columbus, Miss., airfield; $4,212,319.
Frederick Snare Corporation, New YorkCitv; channel dredging at Jersey City, N. J.;
$734,620.James I. Barnes, Logansport, Ind.; con-
struction of motor repair shops and class
rooms at Camp Lee, Va.; $525,137.The Caye Construction Co., Brooklyn, N.
Y.; construction of four air corps hangarswith boiler houses, at Presque Isle, Maine;$593,000.
Hill & Combs. San Antonio, Tex ; changeorder to original contract covering extensionto depot supply building at Duncan Field,
Tex.; $519,246.The Weatherhead Co., Cleveland, Ohio;
nonmechanical building machinery andequipment; $1,018,200. (Defense Plant Cor-poration agreement of lease.)
Hollev Carburetor Co., Detroit. Mich.; addi-
tional building with necessary machinery andequipment for manufacture of aircraft car-
buretors; $661,415.
E. I. duPont de Nemours & Co., Wilming-ton, Del.; construction and equipment of
plant at Choteau, Okla., and 1 year's produc-
tion of smokeless powder and diphenylamlne;$84,235,594.
General Motor6 Corporation (Hyatt Bear-
ings Division), Harrison, N. J.; acquisition of
additional machinery and equipment for
existing plant to be used In manufacture
of aircraft engine bearings; $567,000. (De-
fense Plant Corporation agreement of lease.)
ORDNANCE
Radiart Corporation, Cleveland, Ohio; nose
bomb fuze: $1,610,350.
Rheem Manufacturing Co., New Orleans,
La.; shells: $1,034,250.
Thibodaux Boiler Works, Thlbodaux, La.;
shells; $900,000.Kilgore Mfg. Co., International Flare-Signal
Division, Tipp City, Ohio; pyrotechnic pistols;
$600,472.Oliver Farm Equipment Co., Chicago, HI.;
shells; $2,832,732.
R. Wallace & Sons Mfg. Co., Walllngford,
Conn.; cartridge clips; $980,400.
Minneapolis Mollne Power Implement Co.,
Minneapolis, Minn.; shells; $2,335,766.
(Continued on page IT)
September 23, 1941 • DEFENSE • 17
War Department contracts
(.Continued from page 16)
AIRCRAFT
Vega Airplane Co., Burbank. Calif.; air-
planes and spate parts; $147,790,500.
EQUIPMENT AND SUPPLIES
General Eiectrlc Co.. Radio & Television De-partment, Schenectady, N. Y.; radio trans-
mitting equipment: $14,669,142.
Belmont Radio Corporation. Chicago. 111.;
radio receivers and equipment; $2,106,758.
J. L. Stifel & Sons. Wheeling, W. Va.;
4.800.000 yards cotton herringbone twill cloth;
$1,671,840.Riverside & Dan River Cotton Mills, New
York. N. Y.; 2.000.000 yards cotton herring-
bone twill cloth; $688,350.Cone Export & Commission Co., New York,
N. Y.; 1,600.000 yards cotton herringbone twill
cloth In Greensboro. N. C„ mill: $562,880.
General Motors Corporation. Allison Divi-sion, Indianapolis. Ind.; engines and spareparts: $8,501,605,Fargo Motor Corporation, Detroit, Mich.;
%-lon trucks; $2,809,561.Highway Trailer Co.. Edgerton, Wis.;
2-w'neel semitrailers; $553,384.Yellow Truck & Coach Manufacturing Co.,
Pontiac. Mich.; 2 <A -ton trucks; $4,016,563.
Progressive Coat & Apron Mfg. Co.. Phila-delphia. Pa.: 390.000 bakers' and cooks' coats;
$587,400.Hlckok Electrical Instruments Co., Cleve-
land. Ohio; thermometer indicators;
$658,590.
LETTERS OF INTENT
CONSTRUCTIONDouglas Aircraft Co.. Inc., Santa Monica,
Calif.; construction and acquisition of emer-gency plant facilities for fabrication of air
frames for heavy bombardment airplanes;$12,619,096.
F.iirchild Engine & Airplane Corporation,Hagerstown. Md.: construction and acquisi-tion of additional plant facilities for fabrica-tion of wings for airplanes; $1,675,967.
• * *
Eggs produced at highest
rate since 1930
Stimulated by the Department of Ag-riculture's food-for-defense program,
egg production in this country during
the first 8 months of 1941 was the largest
since 1930, according to the Agricultural
Marketing Service. Production in Au-gust, equivalent to nearly 8,500,000 cases,
was the largest for the month since 1929.
The rate of egg production per layer dur-
ing August reached a record high of
12.25 eggs.
Farm laying flocks during August were
only 1 percent larger than last year andthe 10-year average. However, the num-ber of layers will gain from 3 to 10 per-
cent over last year during the next few
months as the 9-percent larger crop of
pullets enters the laying flocks.
Hatchery production of baby chicks
during August set a new high record of
20,805,000 chicks for the month, an in-
crease of 67 percent over production in
August last year and 56 percent above
the previous high in August 1939.
Nine subcommittees named for industry
committee on shoes, leather products
The Bureau of Clearance of Defense
Industry Advisory Committees an-
nounced September 18 the appointment
of nine subcommittees for the defense
industry advisory committee on shoes,
leather products, hides, skins and
leather.
Members of the subcommittees were
selected by Harold Florsheim and Major
J. W. Byron, Government Presiding Offi-
cers.sfrom nominations made by mem-bers of the Steering Committee of the
Defense Industry Advisory Committee at
a meeting on August 22.
Shoe manufacturers subcommittee
J. F. McElwain, J. F. McElwain Co., Boston,
Mass.; F. J. O'Donnell, Joseph M. HermanCo., Millis, Mass.; H. L. Nunn, Nunn-BushCo.. Milwaukee, Wis.; Frank Weyenberg,Weyenberg Shoe Mfg. Co., Milwaukee, Wis.;
Charles E. Allen, Allen-Squire Co., Spencer,Mass.; L. B. Sheppard, Hanover Shoe Co.,
Inc., Hanover, Pa.; Fred Emerson, Dunn &McCarthy, Inc., Auburn, N. Y.; Roger Selby,
Selby Shoe Co., Portsmouth, Ohio; H. O.Rondeau. H. O. Rondeau Shoe Co., Farming-ton, N. H ; L. V. Hershey. Hagerstown Shoe& Legging Co., Hagerstown, Md.; Chas. F.Johnson, Endicott-Johnson Corporation,Endicott, N. Y.; John Bush, Brown ShoeCo., St. Louis, Mo.; Maxey Jarman. GeneralShoe Corp., Nashville. Tenn.; and Byron A.
Gray, International Shoe Co., St. Louis, Mo.
Retailers subcommittee
Owen W. Metzger, Wetherhold & Metzger,Allentown, Pa.; John C. Talbot, J. C. PenneyCo., New York City; Marcus Rice, May De-partment Store, St. Louis, Mo.; L. F. Tuffly,
Krupp & Tuffly, Houston, Tex.; David S.
Hirschler, Hofheimer's Inc.. Norfolk, Va.; A.W. Fish. William Filene's Sons Co., Boston,Mass.; F. J. Schell, Sears, Roebuck & Co.,
Chicago. HI.; Max Friedman. A. S. Beck ShoeCorporation. New York City; Ward Melville.Melville Shoe Corporation. New York City;A. H. Billet. Rival Shoe Co., New York City;
Oscar Thompson, Thompson, Boland & Lee,Inc , Atlanta Ga.
Last manufacturers subcommittee
Harry Darragh, Vulcan Corporation, Ports-mouth. Ohio; George Stevens, I.ynn Last Co.,
Lynn, Mass.; Joseph W. Holmes, United LastCo., Boston, Mass.; and Chas. W. Marcille,
Western Last Co., St. Louis, Mo.
Rubber footwear and rubber materials
for shoes subcommittee
H. S. Marlor, U. S. Rubber Co., New YorkCity; C. L. Muench, Hood Rubber Co.. Water-town, Mass.; C. H. Baker, Goodyear FootwearCorporation. Providence, R. I.; H. S. Post,
Goodyear Tire & Rubber Co., Akron, Ohio;and M. Bernstein, Panther-Panco Co., Chel-sea, Mass.
Tanners' supplies technical subcommittee
Dr. Fred O'Flaherty, Tanner's Research Lab-oratory, University of Cincinnati, Cincinnati,Ohio; G. W. Schultz, Proctor ElKson Co.,
Elkland. Pa.; and Adolph Schubert, B. D.Eisendrath Tanning Co., Racine, Wis.
Upper leather subcommittee
V. G. Lumbard. Ohio Leather Co., Girard,Ohio; Carl F. Danner, American Hide &Leather Co., Boston, Mass.; Edwin A. Gallun,A. F. Gallun & Sons Corporation. Milwaukee,Wis.; Wm. B. Elsendrath, Monarch LeatherCo., Chicago, 111.; D. S. Stauffer, InternationalShoe Co.. St. Louis, Mo.; W. E. Thorpe, ParisTanning Co., Inc., South Paris, Maine; RalphL. Pope, Northwestern Leather Co. Trust,Waukegan, 111.; Harold Connett, SurpassLeather Co., Philadelphia, Pa.; H. N. Good-speed, A. C. Lawrence Leather Co., Peabody,Mass.; Myron Laskin, J. Laskln & Sons, Inc.,
Milwaukee, Wis.; Kurt C. Friend, J. Grcene-baum Tanning Co., Chicago, 111.; H. Hill,
Ashtabula Hide & Leather Co., Ashtabula,Ohio; and Michael F. McGrath, DudleyLeather Co., Lynn, Mass.
Technical shoe subcommittee
on specifications
Seward M. Paterson, J. F. McElwain Co.,
Nashua, N. H.; J. E. Qutnn, InternationalShoe Co.. St. Louis. Mo.; F. J. O'Donnell.Joseph M. Herman Shoe Co., MUlis, Mass.;
and C. Chester Eaton, Chas. A. Eaton Co.,
Brockton, Mass.
Hide and skin subcommittee
P. C. Smith, Swift & Co., Chicago, 111.;
G. D. Fitch, Wilson & Co., Chicago, 111.;
George Stark. Stark & Wetzel, Indianapolis,
Ind.; Lee Jackson, Springfield Pkg. Co.,
Springfield, Mo.; Newton Bissinger, Eissinger
& Co.. San Francisco, Calif.; A. L. Webster,A. L. Webster & Co., Chicago. 111.; E. L. Mc-Kendrew, Armand Schmoll, Inc., New YorkCity; Milton Katzenberg, Jacob Stern Co..
Philadelphia, Pa.; Walter Stern, H. Elkan &Co., Chicago, 111.; and Owen Howe, Sands &Leckie, Boston, Mass.
Sole leather subcommittee
A. M. Pierce, Leas & McVltty, Inc., Phil-
adelphia, Pa.; E. W. Pervere, Howes Bros. Co.,
Boston, Mass.; J. Silverstein, Toxaway Tan-ning Co., Rosman, N. C; R. Comloquoy, PineGrove Tanning Co.. Philadelphia, Pa.; AllenBennett, Graton & Knight Co., Worcester,Mass.; Ray Laub, George Laub's Sons, Buffalo,
N. Y.; Henry Boyd, Armour Leather Co., Chi-cago, 111.; H. Fitzgibbons, E. P. FitzgibbonsCo., Whitman, Mass.; and S.iul Bloom, S. H.Frank & Co., San Francisco, Calif.
• • •
ORE MOVEMENT
Reports from the four principal ore-
handling railroads for the week ended
September 13 showed they loaded into
boats at upper lake ports 2,467,298 tons
of ore as compared to 2,246,888 tons
leaded during the corresponding week
in 1940.
For the 1941 season of navigation to
date these same railroads have loaded
into boats a total of 54,109,417 tons as
compared to 41,010,396 during the cor-
responding period of 1940, an Increase
of 13,099,021 tons.
18 • DEFENSE • September 23, 1941
AGRICULTURE {Information furnished through Office of Agricultural Defense Relations,
U. S. Department of Agriculture)
"Food is our fifth column," Wickard
tells farmers in calling for production
Asserting that "this is our war," Sec-
retary of Agriculture Wickard last weekdescribed food as a "whole arsenal of
weapons in this struggle for humanfreedom."
Speaking at Salt Lake City, Utah, in
the first of four regional meetings called
to plan 1942 food production, Wickardcalled on American farmers to "carry
through a huge production program in
the months ahead to serve both the na-
tional welfare and their own interests."
"The agricultural production goals for
1942," Wickard said, "take into account
the needs of the American people and the
demands which probably will result fromIncreased purchasing power. They makeallowances for distribution to the under-
privileged at home; for export throughcommercial channels; and they allow
for the production we must have if weare to meet our commitments to the
British.
Goals provide for reserves
"There is one more thing provided
for in these goals which has not previ-
ously been included on such an extensive
scale in national plans for agricultural
production. Our production goals for
1942 include allowances for stock piles
or reserves of food. We will translate
the Ever-Normal Granary of feeds into
an Ever-Normal Granary of food—food
right there ready to eat."
"Why build these stock piles of food?Well, food is a whole arsenal of weaponsin this struggle for human freedom. It
Is the driving force behind high produc-tion by munitions workers, and high per-
formance and morale among soldiers
and sailors. Food is even more than that
to people who are being deliberately
starved. To people in that desperate fix,
food right out there in sight, already pro-duced, ready to go into frying pan oroven, will be a most powerful persuaderof discontent and rebellion.
"Food is our fifth column"
"For all except the favored Nazi fewand the fighting men and war industryworkers, meat and milk and eggs andtomatoes and lard and cheese are dread-fully scarce even in Germany. Thesefoods are practically unknown to the av-erage family in the conquered countries
that have been looted.
"What do you think is the effect uponthese people looking across the channel
from half-fed France or Holland and see-
ing the British still getting enough to
eat? I think the effect Is the equivalent
of about 10 field armies. Food is our
fifth column.
"They'll work and fight"
"When the conquered peoples see whatAmerica is supplying the British in the
way of food, and know there's morewhere the British supplies came from, I
think these people in the conqueredcountries may do more than hope for
victory of the democracies; they'll workand fight for it.
"In the day of victory when the na-tions sit down at the peace table, ourfood stock piles ready to be drawn on by
the famished people of the old world will
give great force to our views. For theywill show once and for all that democracybuilds for the needs of common men. Nobetter demonstration could be given thanteamwork by American agriculture andAmerican Government to build up food
reserves while Hitler is doing his level
best to destroy the possibility of Europe'sproducing enough meat or milk or eggs
for years to come.
"As we go about our plans for puttingmore cows and pigs and hens to workmaking food out of our stored abundance,Hitler is killing off the herds and flocks
of Europe. It will take years to build
them back so they will supply the OldWorld again. In the meantime, we will
be relied upon by scores of millions of
human beings for adequate nourishment.
Our national self-interest, and our
humanitarian instincts challenge us to
do this job and do it on a scale that will
write history."
Farmers urged to limit requirements
of machinery to "things absolutely needed"American farmers this week were
asked to prepare for possible shortages
or substitutions in the farm machineryand equipment they are accustomed to
buying. At the same time, they wereurged to limit their requirements to
"things absolutely needed" so the mate-rials, particularly metals, can be used
for armaments to "destroy the menaceof Hitlerism."
The message came from L. L. Needier,
chief of the Farm Equipment and Sup-plies Division, Office of Agricultural De-fense Relations, Department of Agricul-
ture, in a radio talk on the National
Farm and Home Hour. Excerpts follow
:
"We are in the midst of a Nation-wide campaign to produce the foodneeded by our own people and by thenations resisting aggression. At thesame time, we find that the very things
needed to operate the farms of the Na-tion are also necessary for our arma-ment program. Consequently, we arefacing shortages of one kind or anotherthat will force us to use unfamiliar sub-stitutes and, in some cases, to make outwith what we already have in operation.
Not enough to go around
"This is true in spite of the fact that
agriculture is considered semimilitaay.
It is true in spite of the fact that mate-rials necessary for the production of
parts for the repair and maintenance of
existing farm equipment have been given
a full defense rating by the priorities
officials. It is true in spite of the fact
that materials for the production of
specified new farm equipment have beengiven the highest civilian rating.
"There simply is not enough of some of
the needed materials to go around. Wehave the priority ratings, all right, butif the needed materials are not there, or
if what is there is needed for strictly mili-
tary purposes, we will not be able to get
all we want. Some of you may rememberas a child having eaten at the secondtable when the family had unexpectedcompany. In this instance, Defense is
the unexpected company, but we will
agree, it must be first and fully served.
"We know that farmers will makeevery effort to do a good job with the
machinery and supplies obtainable. Webelieve we will be able to provide for
all needed repair and maintenance parts.
We hope farmers will make every effort
to limit their requirements of supplies
and machinery to things absolutely
needed. In this way they can make avital contribution to our national effort
to destroy the menace of Hitlerism."
September 23, 1941 • DEFENSE • 19
TRANSPORTATION . .
.
Budd outlines bus transport's place in
defense, says service should be kept upSpeaking before the National Associa-
tion of Motor Bus Operators in Chicago,
September 18. OEM Transportation
Commissioner Ralph Budd declared:
"Bus transportation is one of %he Na-
tion's most useful arms of service for
peace and for preparedness, and if that
time should come it will be an equally
useful arm in time of war. It deserves
to be preserved in full vigor and enlarged
capacity."
Further excerpts:
Early this year it became apparent
that one of the real problems confront-
ing you was that of obtaining repair
parts to maintain existing buses, and
material to build new buses with which
to handle the growing business. . . .
Requirements relatively small
My own position on the question of
priorities for new buses and repair parts
has bsen that the requirements are rel-
atively so small, the necessity for getting
new buses is so obvious, and the desira-
bility of keeping the existing equipment
in good running order is so self-evident,
that there should be no restrictions on
the number of buses that may be built;
that the manufacturers should be per-
mitted to use materials to fill orders for
new buses, and, of course, to keep the
old ones in good running repair.
For seme time past I had assumed
that the place of buses in the travel
plans and travel habits of the Nation
had become established and well under-
stood, but the necessity for conservation
of certain critical materials which has
arisen in the last year has made it nec-
essary to scrutinize and question the
relative importance and essential char-
acter of many undertakings.
, The very advanced design of modernbuses through the use of aluminum fo-
cused attention upon them because of
the need for that metal in airplanes.
Even though bus operators and builders
were quick to change their designs so
that aluminum virtually was eliminated,
the relative importance of building buses
as compared with using the steel, rubber,
and other scarce materials for various
defense purposes has raised the question,
"how necessary are buses anyway?"
Measured by the yardstick of patron-
age, intercity buses are certainly neces-
sary. They will carry perhaps 450 mil-
lion people this year. Nearly as manybus rides will be made by school children
in noncommon carrier buses, and those
in urban buses will exceed 4 billion.
There is no question but the public finds
the bus a useful and desirable means of
travel. In number of riders, intercity
bus travel alone now rivals the total by
railway.
Much of the present bus travel is di-
rectly and indirectly due to the Nation's
defense program. The building of newfactories and the enlargement of old ones
for defense manufacturing has created
transportation problems and added traf-
fic to existing transport agencies in manyplaces all over the country. The han-dling of employees to and from these newand enlarged plants during construction,
as well as after they are in operation,
has been carried on by various means,including intercity buses, extension of
urban transit, private automobiles, andsome railway shuttle trains. Manytraining camps are served by intercity
buses and the movement of selectees to
induction and reception centers is moreand more by this mode of travel.
• • •
CARLOADINGS REACH NEW PEAK
Revenue freight carloadings during the
week ended September 13 reached a newpeak for the year with a total of 913,952
cars, an increase of 13.6 percent over the
804.265 cars loaded during the corre-
sponding week in 1940. Increases wereregistered in all major commodities ex-
cept livestock which showed a decrease
of 16.8 percent. The details follow:
CARLOADINGS—WEEK ENDED SEPTEMBER 13
20 • DEFENSE • September 23, 1941
LABOR . .
.
Hillman states policies on auto labor
for management and unions to follow
After a series of labor-management
conferences in Detroit, Associate Director
General Hillman, OPM, issued on Sep-
tember 17 six statements of policy which
both management and labor will be ex-
pected to follow in handling labor prob-
lems arising from curtailment in passen-
ger automobile production.
The statements of policy issued by Mr.
Hillman follow:
(In these formulations of policy and
procedure, Statements 1 to 5 are to be
considered as subject to the general pro-
visions listed in Statement 6.)
STATEMENT NO. 1
Where a man working on nondefense
production is laid off and obtains defense
employment with another company, andthat fact is certified to his former com-pany, he will not have to report back for
civilian production work in order to pro-
tect ills seniority so long as he retains
the defense employment to which he wascertified. If he shifts from one defense
employment to another, there must be
a recertification as to his new defense
employment. Employers concerned with
the application of this policy will workout arrangements which will result in
the maximum possible acceleration of
the defense program.
STATEMENT NO. 2
Transfer of employees to defense workshall be by seniority in the following
order:
First, those fully qualified for skilled
or semiskilled jobs on the basis of past
experience and training.
Second, those who can qualify within
the period normally given to new em-ployees.
When management and representa-
tives of the workers are agreed that noemployees or an insufficient number of
employees with seniority are available in
the first group, new, fully qualified em-ployees will be hired.
STATEMENT NO. 3
When hiring new employees for de-
fense work, qualified applicants working
on nondefense work with seniority in lo-
cal industry will be hired before workers
coming from other localities. When so
hiring, the qualified applicant with the
longest seniority record will receive pref-
erence.
The senior employees among those
working in plants where employment is
decreasing who can be spared; who elect
to accept such defense employment; andwho are found acceptable will be the first
released with full protection of their
seniority rights.
STATEMENT NO. 4
Skilled tradesmen laid off, partially
employed, or employed at occupations
other than their trade or its equivalent
in defense usefulness, will be released
upon their request, with protection of
their seniority rights, for full time de-
fense work (40 hours per week) at their
trade. The need for these workers in
defense employment will be certified to
the worker's employer.
STATEMENT NO. 5
The above policies are to be construed
as a pattern for industry and labor to
follow and are not retroactive. It is un-derstood that their application is a local
community problem and must be worked
out on the basis of cooperation between
plants in a community and the workers
involved.
The operating machinery to effect this
point will be set up at an early date.
STATEMENT NO. 6
—
General Provisions
1. Recall of employees.—An employee
loaned or laid off, whether unemployed
or currently employed on defense or non-
defense work, must report back for de-
fense employment to the company with
which he holds his original seniority, if
and when called, on notice of at least
one week. Recall of employees to de-
fense work presupposes, and manage-
ment will endeavor to provide, full time
employment, contingent upon the avail-
ability of the essential tools, material
and facilities. Skilled tradesmen will
be subject to recall only for full time
defense employment at their trades or
the equivalent.
2. Defense training.—For the purpose
of these policies, defense training is to
be considered defense employment, pro-
vided there is an understanding between
the employer and the employee that the
employee is being trained for a specific
payroll job.
Way prepared for rehiring
1,000 in Wilkes-Barre area
Associate Director General Hillman
announced September 18 that as a re-
sult of a meeting between James Ros-
sell, OPM labor relations assistant, and
industrialists in Wilkes-Barre andHazleton, Pa., at least 1,000 power ma-chine operators could be employed in
garment manufacturing plants in that
area.
The meeting, which was attended by
31 employers, was called by Mr. Hillman
to discuss methods by which the more
than 2,000 workers displaced in Wilkes-
Barre silk industries could be located in
other jobs or retrained for new kinds of
employment.
Mr. Rossell announced that he would
recommend to Mr. Hillman that train-
ing programs, sponsored by the OPMLabor Division, be set up quickly to
qualify the displaced silk workers andothers for the power machine jobs.
The training programs will use existing
training facilities and where necessary
obtain machinery for the classes to be
established.
Employers eager for workers
Some employers attending the Wilkes-
Barre meeting said the shortage of
power machine operators was acute and
they would be more than eager to hire
any displaced silk worker who has been
qualified by training.
Mr. Rossell pointed out that under
training programs already in operation,
fully qualified and skilled power ma-chine operators have been trained within
several weeks in other kinds of garment
manufacture and some workers have
been taught necessary skills in as short
a time as 3 days.
The employers were also urged to
make a survey of present and anticipated
labor needs and to make this informa-
tion available to Mr. Hillman and the
State Employment Service. Trade-
union leaders, at a later session, were
requested to make certain that all
workers whose jobs are threatened are
registered at the employment offices.
The employers agreed they would set
aside age limits in consid3ring the quali-
fications of displaced silk workers for
power machine operating jobs.
September 23, 1941 • DEFENSE • 21
Jobs promised for 335
displaced Scranton workers
Progress in dealing with the silk in-
dustry's priority unemployment situa-
tion in the Scranton, Pa., area was re-
ported by Associate Director General
Sidney Hillman September 17 as the re-
sult of a meeting of labor groups and em-
ployer representatives with OPM Labor
Division officials.
James Rossell, assistant chief, Labor
Relations Branch, informed Mr. Hillman
that the meeting in Scranton September
17 brought commitments from 14 em-
ployers present to hire 335 power-sew-
ing-machine operators as soon as they
are available.
There is an immediate need for 550
power machine operators in the area,
where between 1.500 and 2,000 silk work-
ers have been displaced as a result of the
stoppage of silk imports from Japan.
The meeting also developed the fact
that 50 cigar workers were needed in
the area, with an eventual need of 150,
along with the need of training courses
to prepare workers for this occupation.
Carl Holderman, director of the NewJersey Joint Board, Textile Workers of
America, and an OPM Labor Division
official, declared that the hiring of 550
power machine operators would neces-
sarily involve the hiring of 200 additional
workers—helpers and assistants—in the
shops in which these people were placed.
• • •
Defense Housing Branch
established by Labor Division
Establishment of a Defense Housing
Branch in the Labor Division of the Office
of Production Management, and appoint-
ment of Joseph P. Tufts, Pittsburgh, as
its chief, were announced September 19
by Associate Director General Hillman,
OPM.Mr. Tufts' duties will be to advise Mr.
Hillman on needed housing for maintain-
ing an adequate supply of labor in de-
fense areas, and to provide Defense
Housing Coordinator Charles F. Palmer
and other defense housing agencies with
information and advice necessary to de-
velopment of the defense housing
program.
Mr. Tufts will serve as a member of
OPM's Housing Priorities Section and
of the OPM Labor Supply Committee.
Theodore A. Veenstra, of Harrisburg,
Pa., will assist Mr. Tufts as economic
analyst.
HOUSING . .
.
90-percent mortgage insurance
approved for 14 new localities
President Roosevelt last week ap-
proved 14 new localities in which homesmay be financed under the liberalized
insurance provisions of Title VI of the
National Housing Act, upon the recom-
mendation of Defense Housing Coordina-
tor Palmer.
The act permits 90-percent mortgage
insurance to operative builders on multi-
unit developments in localities "in which
the President finds that an acute short-
age of housing exists or impends which
would impede national defense activi-
ties."
Title VI was designed to speed pro-
duction of defense housing by private
industry. This type of financing com-
plements existing PHA facilities in the
home-financing field.
The housing which is expected to be
made available through this legislation
is intended to alleviate shortages of
housing in defense areas. Workers
whose earnings amount to $1,800 to $3,000
annually can, economically, buy or rent
the moderately priced homes built under
this title.
In his letter to the President, Mr.
Palmer recommended that this financing
948 homes for defense
completed in week
Charles F. Palmer, Coordinator of De-
fense Housing, has announced that 948
new publicly financed homes for families
of defense workers and enlisted person-
nel were completed during the week end-
ing September 13, making a total of 34,778
now ready for occupancy.
With 3,175 homes going into construc-
tion during the week, the total of pub-
licly financed homes now being built or
completed reached 88,553.
Federal funds have already been al-
lotted for 111,545 defense homes.
FHA-inspected privately financed
homes for defense workers, started dur-
ing the week, totaled 4,886. Since Jan-
uary 1941, 156,447 such homes have gone
into construction.
The total number of dormitory units
for occupancy by single defense workers
has reached 4,931.
method should not be utilized in excess
of defense housing needs as determined
by the Division of Defense Housing Coor-
dination.
Newly approved areas
The following are the newly approved
areas and the defense activities most
important in each:
Arkansas.—Fort Smith, Army camp.
Georgia.—Valdosta, Army air school.
Louisiana.—Baton Rouge, Army air
field chemical plant; Minden-Shreveport,
Air base ammunition plant.
Minnesot a.—Minneapolis-St. Paul,
Ordnance components.
Missouri.—Joplin-Neosho, Army camp.
Oklahoma.—Enid, flying school.
Pennsylvania.—York, Artillery com-
ponents.
South Carolina.—Sumter, Air Corps
flying school.
Tennesse e.—Chattanooga-Cleve-
land, TNT plant.
Texas.—Cuero, contract flying school;
Denison-Sherman, Air training school;
Midland, Twin engine and bomber air
school; Lubbock, Twin engine air train-
ing school.
President finds need for
7,390 defense homes
President Roosevelt determined Sep-
tember 19 that a need exists for 7,390
homes for families of industrial defense
workers and enlisted personnel in ten
localities, upon the recommendation of
Charles F. Palmer, Coordinator of De-
fense Housing.
In addition, the President approved
provision of 2,850 dwelling units under
the temporary shelter program of the Di-
vision of Defense Housing Coordination.
Localities and the number of units
programmed for each are as follows:
Permanent.—Long Beach-San Pedro
Harbor, Calif., 1,400; San Francisco,
Calif., 40; Springfield, Mass., 300; Hous-
ton, Tex., 150; Morgantown, W. Va., 150;
Buffalo, N. Y., 3,100; Seattle, Wash.,
1,500; Ouantico, Va., 250; New Haven,
Conn., 300; and Philadelphia, Pa., 200.
Temporary shelter.— Vallejo, Calif.,
500; Baltimore, Md., 1,500; Radford-
Pulaski, Va„ 750; Huntsville, Ala., 100.
22 • DEFENSE • September 23, 1941
MEDIATION BOARD . .
.
Kansas City power emtruce reached in "capt
The National Defense Mediation Board
last week (September 15-21) worked out
a formula for ending the Kansas City
Power & Light Co. strike; obtained a
truce under which 43,178 miners re-
turned to work at "captive" mines in
three States; opened hearings in four
cases, of which two were of Nation-wide
interest; received certification of twoothers, and extended the scope of its
commission studying the Douglas fir
industry.
Bituminous coal—"captive" mines
On Monday. September 15, 43,178 minersIn Pennsylvania, West Virginia, and Ken-tucky went on strike for a union shop in the"captive" mines of the steel industry. Fridaynoon, the United Mine Workers of America,CIO, which called the strike, and the opera-tors of the coal mines accepted a recommen-dation of the Mediation Board for a 30-daytruce during which time they would attemptto work out a solution of the dispute beforethe Board. John L. Lewis, UMW president,promised that production in the mines wouldbe back to normal by Monday.
The Mediation Board took Jurisdiction overthe dispute under the broad terms of thebituminous coal certification of last April.
It promptly sent telegrams Monday to bothparties asking for immediate resumption ofproduction. The following day, Mr. Lewisanswered for the UMW that the union "will
defer consideration of this subject until it
can be discussed at the hearing." WilliamH. Davis, chairman of the Board and of thebituminous coal panel, told reporters that hedid not consider this answer as a refusal butrather as a matter to be discussed at the hear-ing the following day.
Some 60 representatives of the operatorsand union appeared for the first day of hear-ings Wednesday, at which time Mr. Lewis pro-posed a formula for a 30-day truce. Negoti-ations before a panel composed of Mr. Davis,Walter Teagle, representing employers, andHugh Lyons, representing employees, resultedFriday noon in acceptance of a Board recom-mendation containing the following fourprovisions:
1. That the United Mine Workers of Amer-ica agree with the Board that It will recom-mend the return to work of the men now onstrike in such mines for a period of thirty(30) days, and thereafter until the expira-tion of three (3) days' notice In writing givenby the parties on either side.
2. That both parties agree with the Boardto accept for said period the provisions ofthe Appalachian Agreement.
3. That the United Mine Workers of Amer-ica agree with the Board that during suchperiod the provisions of the AppalachianAgreement which require membership In theUnited Mine Workers of America as a condi-tion of employment shall be inoperative.
4. That during such period the Board re-tains Jurisdiction of the controversy and willcontinue with the parties collective bargain-ing negotiations in an endeavor to arrive ata mutually satisfactory agreement.The Carter Coal Co., a commercial coal com-
pany at which a strike was called at the sametime as In the "captive" mines, accepted the
oyees return to work;
ive" mine dispute
recommendations with the proviso that fourprovisions of the Appalachian Agreement Inaddition to the union clause be Inoperativeduring the truce period. The UMW agreedto make this exception. Hearings will beresumed Wednesday, September 24.
Bituminous coal—Alabama
The parties to the dispute between theAlabama commercial operators and theUnited Mine Workers carried on direct nego-tiations during the early part of the weekand then adjourned for 3 days to give rightof way to the "captive" mine dispute. Negoti-ations were resumed Friday afternoon andcontinued Saturday and Sunday.
Kansas City Power & Light Co.
On September 15 a panel, composed of
George Stocking for the public, Rolland Ham-ilton for employers, and Herbert Woods forlabor, opened hearings in the dispute be-tween the Kansas City Light & Power Co.,
Kansas City, Mo., and two unions—the In-ternational Brotherhood of Electrical Work-ers, AFL, and the Independent Union ofUtility Employees. The AFL union was seek-ing bargaining rights In two departments ofthe company, which supplies electric powerand light to the entire area, including sev-eral defense projects. The Independent Un-ion has a contract with the company cov-ering these two departments. A charge thatthis union is company-dominated is pendingbefore the National Labor Relations Boardwhich has instituted contempt proceedingsagainst the company. A hearing is set beforethe Eighth Circuit Court of Appeals October11. After 2 days of hearings, the Board rec-
ommended that the parties permit the is-
sues to be resolved by these legal processesunder the Wagner Act without cessation ofoperations.
Five hours after the Board made these rec-ommendations, the men went on strike atthe plant, plunging Kansas City Into totaldarkness for 4 hours. The following morn-ing, Board Chairman Davis publicly appealedto the men to return to work and calledupon the officers of the AFL and the IBEWto exert all their influence to that end.
"The National Labor Relations Act," Mr.Davis said, "which has been described as theMagna Charta of trade unionism In theUnited States, gives to this union an orderlymethod of obtaining the recognition forwhich It is now striking—It Is labor's ownAct. In this emergency the universal andungrudging acceptance of the letter andspirit of the Act by employers is a compellingobligation. It Is an equally compelling obli-
gation on the part of labor to seek and followits legal remedy In preference to direct actionin such cases as this. All the pressure of
public opinion is called for to enforce theseobligations."
Dr. Stocking, panel chairman, worked outa formula for ending the strike, which hadthe approval of Edward J. Brown, IBEWpresident; George Meany, secretary-treasurerof the AFL, and H. A. Kuhn, company vice-
president. Mr. Brown transmitted this pro-posal to the strikers Thursday afternoon andurged that they accept It and return to work.It was ratified at a union meeting early Fri-
day morning.
The formula called for a return to workwithout discrimination and the appointmentof a Board representative to Investigate the
controversy and make recommendations.Dr. John A. Lapp of Chicago was appointedto this task on Saturday.
Curtiss-Wright Corporation &Duquesne Light Co.
A jurisdictional dispute over the installa-tion of electrical equipment at the $5,000,000Curtiss-Wright Propeller plant at Beaver, Pa.,came before a panel of the Board September16. Members of the AFL Building and Con-struction Trades Council stopped work onconstruction of the plant September 10 inprotest over employment of Duquesne LightCompany employees, represented by the Inde-pendent Association of Employees of theDuquesne Light Company and AssociatedCompanies, for this installation work. Hear-ings were held for 4 days before the panel ofCharles Wyzanski, John Connelly, and RobertWatt. The Independent Union signed astatement withdrawing in the Interest ofnational defense all claim to the Curtiss-Wright work. The offer by the IndependentUnion was made on the understanding that it
will not be used as a precedent against it "inany current or future controversy." It wasunanimously ratified Saturday night.
Lamson & Sessions Co.
Representatives of two plants of the Lam-son & Sessions Co. of Cleveland, Ohio, and theUnited Automobile Workers of America, CIO,came in for hearings September 17 beforeFrank Graham, Roger Lapham, and EmilRieve on their dispute over wages and a unionshop. A threatened strike had been post-poned at the request of the Board at the twoplants, which make aircraft parts. Hearingswere still going on at the close of the week,but many minor points of differences havebeen settled, clearing the way for the twomain issues mentioned above.A dispute over wages, union shop clause
and vacations brought in representatives ofthe Aluminum Co. of America, Vancouver,Wash., and the Aluminum Trades Council,AFL, on September 18. A threatened strikeof 730 men had been postponed at theBoard's request. After 2 days of hearings, bothparties returned home to await recommenda-tions which will be issued before the end ofthis week by the panel which heard the case
—
Walter T. Fisher, Cyrus Ching and HerbertWoods. Until that time, both sides haveagreed to maintain the status quo.
Twin District Council
The Board September 19 launched an In-vestigation of the entire Douglas Fir IndustryIn Washington and Oregon. The commissionoriginally appointed by the Board to investi-gate a dispute in the Puget Sound area ofWashington between the Twin District Coun-cil and the International Woodworkers ofAmerica, CIO, will enlarge the scope of Its
inquiry by including the rest of the industry.This decision was made because of the requestby lumber and sawmill operators and by AFLand CIO unions in these two States that suchan investigation be made In an attempt todraw a blueprint to stabilize the whole in-dustry. Dexter M. Keezer, Wayne Morse, andPaul Eliel compose the commission.
New cases
The two cases certified to the National De-fense Mediation Board last week were: BendixAviation Corporation of South Bend, Ind.;
In dispute with the United Automobile Work-ers of America, CIO; and the Hendey Ma-chine Co. of Torrington, Conn., also In dis-
pute with the United Automobile Workers.
September 23, 1941 • DEFENSE • 23
CIVILIAN DEFENSE . . .
Immediate air raid protection planning
urged for plants; OCD issues guides
Immediate planning for protection
against air raids was urged upon indus-
trial plant managers and local defense
authorities September 16 by Mayor F. H.
LaGuardia, TJ. S. Director of Civilian
Defense.
In a planning guide entitled "Protec-
tion of Industrial Plants and Public
Buildings" the OCD warned the Nation
that "even though the possibility of en-
emy air attack may be remote it is essen-
tial that protective organization bedeveloped at once to guard against the
disruption of normal activities and the
safety of the personnel in an emergency."The general plan outlined in the OCDguide provides for the security of every
employee and for the maintenance of ahigh production rate.
Dispersion of operations urged
Recognizing that the effect of a bombis local, the OCD urges that so far as is
economically possible industrial opera-
tions should be dispersed and duplicated
among many small piants or buildings.
Similarly each plant should be prepared
to protect itself, independent of outside
assistance. Closest cooperation betweenplant managers and local governmentalauthorities and defense councils is urged.
The protective organization for each
plant or public building as outlined in
the planning guide consists of a plant
defense coordinator and four heads of
divisions. The divisions are fire, police,
medical, and maintenance services. Pro-vision is made in the office of the coordi-
nator for communications with the civil
air-raid warning system, control of
transportation facilities and liaison with
local governmental authorities. The co-
ordinator has full responsibility for pre-
paring plans, organizing and equipping
squads and training personnel. Duringan emergency he has control of the dis-
patch of all squads with whom he re-
mains in contact by telephone or throughcyclists and runners.
Water supply should be studied
The OCD urges as first duties of the
plant fire chief that he remove all rub-
bish from roof spaces, and study the ade-
quacy of water supply. It is recom-mended that all men assigned to fire bri-
gades should be taught the latest meth-ods of fighting fires and dealing with
incendiary bombs and that fire watchersquads should be organized. Rescuesquads of specialists such as engineers,
carpenters, bricklayers, and welders are
urged. Their duties may be extended to
include emergency handling of utility
services. They must be able to work in
silence with hand signals and must be
trained in first aid.
Under the specifications set up in the
planning guide, the plant police chief
directs all police activities, the work of
air-raid wardens and aircraft observers
and training in gas defense. He also
is in control of traffic and the handling
of unexploded missiles. It is recom-mended that air-raid spotters be placed
on top of a substantially constructed
building in order to command an ex-
tensive view. Air-raid wardens are
entrusted with the task of evacuating
employees from plants to air-raid shel-
ters and making certain that specified
lights are extinguished during blackouts.
Medical services outlined
The OCD recommends that plant med-ical services be supervised by a physician
who is qualified to handle poison-gas
cases and that he be made responsible for
the training of all employees in first aid.
Provision also is made for the appoint-
ment of an engineering chief whose duty
is to supervise protection of building
equipment and supplies. The OCDurges immediate preparation of plans for
air-raid shelters, blackouts, and camou-flage. Technical pamphlets giving ex-
act information on these subjects are
being prepared.
Pamphlet describes 15
defense service groups
The Office of Civilian Defense issued
September 17 an illustrated pamphletshowing in colors the insignia of fifteen
defense services with a description of
the duties of each group.
"Every able-bodied citizen has a part
in the defense of the United States,"
Mayor P. H. LaGuardia, Director of
OCD, wrote in the foreword to the pam-phlet. "Any attack upon this country
must find each citizen assigned to his
or her place, trained in the duties in-
volved, and resolute to carry out those
duties regardless of the danger to be
faced.
"For some enrolled services, long prep-
aration and group training are required
to assure effective group action. Per-
sons assigned to work that involves co-
operation with others must be identified
by an easily recognized arm band or
sleeve insignia.
"Groups and services for which special
training is necessary are described briefly
in this pamphlet. Members of these
services will be enrolled and pledged to
service by the local defense council andwill perform their duties voluntarily,
without pay."
The fifteen services described are:
Air Raid Wardens, Auxiliary Police,
Bomb Squads, Auxiliary Firemen, Fire
Watchers, Medical Corps, Rescue Squads,
Nurses' Aides Corps, Staff Corps, Mes-
sengers, Drivers' Corps, EmergencyFood and Housing Corps, Decontamina-tion Corps, Demolition and Clearance
Crews, and Road Repair Crews.
What do soldiers read?-—survey showsWhat do soldiers read?
Mostly tabloids and comics, according
to the findings of a recent survey sum-marized in the forthcoming issue of the
Recreation Bulletin of the Office of De-
fense Health and Welfare Services.
This investigation, made under the di-
rection of Dr. Lyman Bryson of Colum-bia University, with the cooperation of
the Army, brought to light facts regard-
ing the reading habits of 100 men at
Fort Dix—a cross section from all parts
of the country and from varying eco-
nomic and social backgrounds.
The most popular form of reading was
comics, and more than 60 percent of the
men questioned had shifted their news-
paper reading toward tabloids. Maga-zine reading, with the exception of "pic-
ture papers," showed a slump.
A good many men, however, do enjoy
more meaty reading. Of the books read,
more than 70 percent were biographies,
ranging from "Mein Kampf" to "How to
Commit a Murder." Some of the most
popular titles were "Out of the Night,"
"Mussolini," and "Readers' DigestReader." In fiction, "westerns" were
far and away the most popular.
24 • DEFENSE • September 23, 1941
Poo! rayon released to former silk users
unable to get fair share by other meansThe Silk Substitution Section, OPM,
announced September 15 plans for re-
lease of the pool of rayon yarn which
has been built up to relieve "undue hard-
ship" cases among manufacturers whose
operations have been affected by the
Silk-freezing order.
This pool has been accumulating since
August 4, shortly after the silk-freesing
program went into effect. At that time,
rayon manufacturers were instructed to
set aside 10 percent of their production
for former silk users. A portion of that
10 percent, amounting to W2 percent of
total yarn production, was segregated to
build up the pool for "undue hardship"
cases.
For immediate use
Manufacturers who prove that they
are entitled to relief from this source
will now be able to get rayon yarn fromthis pool, the section announced. Every
attempt will be made to spread the avail-
able amount among the greatest possible
number of legitimate applicants. It was
emphasized that manufacturers able to
get their fair proportion of rayon
through regular trade channels will not
be allowed to share in the pool.
Detailed information required
Allocations to jobbers will be madeonly if definite proof is furnished that
the yarn is for immediate delivery to
knitters or weavers, thereby resulting in
the immediate employment of workers.
Aside from allocations to jobbers, noyarn allocated will be permitted to be
resold in yarn form except on further
specific authorization by the Division of
Priorities, OPM.Forms with which to apply for
amounts from this pool of rayon yarn
may be obtained on request from the
Silk Substitution Section, OPM. These
require detailed information as to the
silk and rayon yarns consumed during
each of the months from January 1941
through August 1941.
• • *
"Grade B" pig tin classified
in amendment to tin schedule
Formal amendment to the tin price
schedule classifying as "Grade B" pig tin
which assays 99.80 percent pure, but con-
tains impurities exceeding the tolerances
permitted for Grade A tin, was promul-
gated September 20 by the Office of Price
Administration.
The ceiling price for Grade A tin is 52
cents a pound, while Grade B sells at a
discount of three-eights of a cent.
The definition of Grade A tin in the
price schedule is "99.80 percent or higher
percentage of purity, meeting the speci-
fications set forth in 'Specifications and
Proposals for Supplies, No. S-14,' issued
December 15, 1939, by the U. S. Treasury
Department, Procurement Division,
. .." Specifications of the Procure-
ment Division set forth the percentages
of lead, arsenic, and other impurities al-
lowed in Grade A tin.
Sherwood named assistant
OEM Liaison Officer; Dort
heads Administrative Services
Wayne Coy, liaison officer for Emer-gency Management, announced last weekthat Sidney Sherwood, formerly Director
of Central Administrative Services, has
been appointed as Assistant Liaison Offi-
cer for Emergency Management.Mr. Coy also announced that Dallas
Dort has been appointed Director for
Central Administrative Services for OEM.Mi. Dort was formerly Assistant Com-missioner of the Work Projects Adminis-
tration.
• * *
Albert J. Browning appointed
special assistant to SPAB
Donald M. Nelson, Executive Director
of the Supply Priorities and Allocations
Board, announced September 18 the ap-
pointment of Albert J. Browning, of Chi-
cago, as a special assistant to handle vari-
ous problems in connection with the
SPAB program.
Mr. Browning was deputy director of
the Division of Purchases, Office of Pro-
duction Management, from the time
OPM was set up until last April. Previ-
ously he had served under Mr. Nelson in
the National Defense Advisory Commis-
sion.
President of United Wall Paper Fac-
tories of Chicago, Mr. Browning left
OPM last spring because of the pressure
of his business. He is one of a number
of men whom Mr. Nelson is "drafting"
for service under SPAB.
OFFICE FOR EMERGENCY MANAGEMENT
Central Administrative Services: Dallas Dort,Director.
Defense Am Reports Division: MaJ. Gen.James H. Burns, Executive Officer.
Defense Communications Board: JamesLawrence Fly, Chairman.
Defense Housing Division: C. F. Palmer,Coordinator.
Information Division: Robert W. Horton,Director.
National Defense Mediation Board: Wa H.Davis, Chairman.
Office of Scientific Research and Develop-ment: Dr. Vannevar Bush, Director.
Office of Civilian Defense: Fiorello H.LaGuardia, Director.
Wayne Cot, Liaison Officer
Office of the Coordinator of Inter-Ameri-can Affairs: Nelson Rockefeller, Coordi-
nator.
Office of Defense Health and Welfare Serv-
ices: Paul V. McNutt, Director.
Office of Price Administration: Leon Hen-derson, Administrator.
Consumer Division: In charge of HarrietElliott, Associate OPA Administrator.
Supply Priorities and Allocations Board:The Vice President of the United States,
Chairman; Donald M. Nelson, ExecutiveDirector; The Secretary of War; The Secre-tary of the Navy; William S. Knudsen;Sidney Htllman; Harry Hopkins; LeonHenc'.erson.
Transportation Division of the ApvisortCommission : Ralph Budd, Commissioner.
Office of Production Management:William S. Knudsen, Director General.Sidney Hillman, Associate Director General.
Secretary, Herbert Emmerich.General Counsel, John Lord O'Brian.
Production Division: W. H. Harrison,Director.
Purchases Division: Douglas C Mac-Keachie, Director.
Priorities Division: Donald M. Nelson,Director.
Matep.ials Division: William L. Batt,
Director.Civilian Supply Division: Leon Hender-
son, Director.Contract Distribution Division: Floyd B.
Odium, Director.Labor DmsioN: Sidney Hillman, Director.
Research and Statistics Bureau: StacyMay, Chief.
Bureau of Clearance of Defense IndustryAdvisory Committees: Sidney J. Wein-berg, Chief.
U. S. GOVERNMENT PRIMING OFFICE 1941
OFFICIAL WEEKLY BULLETIN OF DEFENSE AGENCIES IN THE OFFICE FOR EMERGENCY MANAGEMENT
WASHINGTON, D. C.
DEFENSE PROGRESSMANPOWERUnited States Army, Sept. 25 1,599,500Navy and Marine Corps, Sept. 1__ 352, 678Nonagricultural workers, July 39,241,000Percent increase since June 1940. 10.
8
Sixteen defense industries, July. 2, 544, 000Percent increase since June 1940. 53.
8
FINANCEJant 1940-Scptmbti 15, 1941 {Pithimnmy)
Authorized program $56,536,000,000Army 24, 607, 000, 000Navy 16, 978, 000, 000Other agencies 14,951,000,000
PRODUCTIONJuly 1940-Muguil 31. 1941 (Ej/imolfO)
Paid on contracts $7,272,000,000Military aircraft in August 1, 854Combat vessels in August 2Merchant ships in August 9
li ttk indtd ScptanbtT 20
Significant defense strikes SHte Workmin progress during week 11 6, 735
Number settled 2 1, 500
DEFENSE HOUSINGDWELLING UNITS BUILT
JAN. /* WITH GOVERNMENT FUNDS1941 £§ (Number completed each month)
709
FEB. Mi1,201
MAR. &&&2,909
aug. &mm&&&m&&9,084
Each syrr>bo! = l,000 dwelling units
SEPTEMBER 30, 1941 VOLUME 2, NUMBER 39
In this issueReview of the week in defense
PRIORITIES
Nation-wide check on compliance . .
CONTRACT DISTRIBUTION
Remedy for "priorities distress" applied
MEDIATION BOARD88,666 return to jobs or postpone strikes
PRICE ADMINISTRATIONCeiling imposed on acetic acid . . .
HOUSING
A plenty of homes to be built—Palmer
AGRICULTURESecretary Wickard on farm prices . .
CIVILIAN SUPPLY
A yardstick for parts manufacturers .
PURCHASES
For plant expansion : $1,183,705,000 .
CIVILIAN DEFENSE
"Pots and pans" enough for 1,900 planes
HEALTH AND WELFARE
An army of nurses needed
2
3
4
7
12
16
17
19
20
22
23
417322'
OCT 20 19«
• DEFENSE • September 30, 1941
Review of the Week in Defense
As the latest analysis showed an Amer-
ican defense program and foreign war
orders in the United States totaling over
60 billion dollars at the end of August,
new emphasis was placed last week on
distribution of abundant work and scarce
materials.
Priority compliance check-up
The Priorities Division of OPM an-
nounced that representatives of 200 Gov-
ernment field offices would visit indus-
trial plants to see if priorities regulations
were being complied with, so that the Di-
vision can "see to it . . . that supplies
are directed from violators to that real
majority of American industry, which
patriotically cooperates." Priorities Di-
rector Nelson warned that existing orders
must be obeyed. He said that any
changes in the system would be gradual,
with an expected increase in emphasis on
direct allocation, "typically by issuing in-
structions as to how much of what can
be shipped to whom."
The Priorities Division also announceda new plan to set aside rayon yarn for
former silk users by length instead of
weight, and to distribute it by suitable
types; and issued interpretations and ex-
planations of orders concerning research
laboratories, plant repairs, and alloy iron.
The Supply Priorities and Allocations
Board authorized preparation of a plan
for expansion of the dairy industry, to
meet United States and British food
requirements.
Field offices to aid small business
The Contract Distribution Division pre-
pared to set up field offices in all principal
industrial cities to help small business
get defense work; asked 56 major defense
contractors to appoint subcontracting ex-
ecutives; and announced the first big re-
sults in relieving community distress,
with the War Department's award of a$987,000 defense contract to an aluminumplant in Manitowoc, Wis. The financial
section of the Division opened a cam-paign of cooperation with local banks andother lending institutions to see that nodefense work, either already awarded, or
desired by the Armed Services, fails of
completion through a manufacturer's
lack of funds.
Defense Housing Coordinator Palmer
explained that housing priorities meanthere will be a plenty of dwellings to be
built, but practically all for defense
workers.
The Office of Price Administration fol-
lowed up its regulation of ethyl alcohol
prices with a ceiling on bulk sales of an-
other industrial solvent, acetic acid.
OPA also announced that a formal sched-
ule of maximum prices on paperboard
east of the Rockies would be effective
October 1, and made a temporary adjust-
ment in iron and steel scrap prices in
certain areas to encourage the flow of
scrap out of regions remote from fac-
tories.
The Civilian Supply Division gave auto-
mobile spare parts makers a yardstick to
determine what rating should be applied
to materials when the ultimate destina-
tion of the parts cannot be determined.
Leading officials for the industry branches
of the Division were named.
Organizational changes
Other organizational developments in-
cluded appointment of key men in the
new Materials Division; arrangement of
the Purchases Division in industrial
branches; selection of iron and steel sub-
committees; and naming of 9 membersto a cordage industry committee.
Members of the Seafarers Interna-
tional Union and the Sailors Union of
the Pacific returned to work, and work-
ers at Consolidated Aircraft postponed a
threatened strike, both at the request of
the National Defense Mediation Board.
Other workers who similarly complied
brought the week's total to 88,666.
Many more nurses needed
The Office of Civilian Defense, jointly
with OPM, announced that the Nation's
housewives had given enough aluminum"pots and pans" to make more than 1,900
fighter planes.
OCD and the Office of Defense Health
and Welfare Services reported progress
in instructing nurses and nurses' aides,
but emphasized the need for a great armyof new nurses as the demands of the
Services rapidly depleted the number of
available to keep civilians in good health.
• * •
U. S. defense program, plus
foreign orders, over 60 billion
Analysis of appropriations for national
defense and of foreign government warorders in the United States shows a total
of $60,016,000,000 by the end of August.
Of this figure United States appro-
priations, contract and tonnage authori-
zation, and Reconstruction Finance Cor-
poration commitments amounted to
$56,357,000,000, and foreign orders in the
United States, most of which were Brit-
ish, came to $3,659,000,000.
The largest single category was air-
planes, amounting to $12,518,000,000, or
20.8 percent of the total. Ordnance,with $11,937,000,000 allotted, called for
19.9 percent. Third largest item was$11,512,000,000, or 19.2 percent of the
total, for marine construction, of which$8,154,000,000 was for naval vessels and$3,358,000,000 for merchant vessels. In-
dustrial facilities, including machineryand real estate, are costing $0,954,000,000,
or 9.9 percent of the authorized program.
Allotments for construction of posts,
depots, fortifications, and residential
housing come to $4,783,000,000 or 8 per-
cent, while appropriations for all other
purposes total $13,312,000,000 or 22.2 per-
cent of the total. This classification in-
cludes combat equipment other thanordnance, clothing and supplies, pay,
subsistence and travel of both the armedforces and civilian defense employees.
• * *
Hillnian to tour
Pacific Coast plants
Associate Director General Hillman of
OPM will visit the Pacific Coast Oc-tober 1 through October 10 or 12 to in-
spect defense plants, and to speak before
the national convention of the AFLBuilding and Construction Trades De-
partment in Seattle, October 1.
DEFENSEOFFICIAL BULLETIN or the Office for EmergencyManagement. Published weekly by the Division ofInformation, Office for Emergency Management, andprinted at the United States Government PrintingOffice, Washington, D. C.
Subscription rates by mail: 75< for 52 issues; 25£
for 13 Issues; single copies 5<t, payable In advance.
Remit money order payable directly to the Superin-
tendent of Documents, Government Printing Office,
Washington, D. C.
September 30, 1941 • DEFENSE •
200 field offices of U. S.
agencies to check on
priority compliance
Nation-wide surveys, designed to obtain
factual data which will be useful in en-
forcing priorities orders and regulations,
are being undertaken by the compliance
and field service section of the Division
of Priorities with the cooperation of some200 field offices which other Governmentagencies have agreed to make available.
Representatives of the Department of
Labor (Wage and Hour Division), Com-merce Department (Bureau of the
Census), Treasury Department (Procure-
ment Division) , and Federal Trade Com-mission (Chief Examiners' Division) will
visit plants of both defense and nonde-
fense manufacturers to check on how pri-
orities regulations are being complied
with.
The data to be gathered by these agen-
cies will be purely factual and any en-
forcement activities growing out of the
survey will be handled directly by the
Division of Priorities.
Number of violations indicated
One of the first jobs to be done with
the help of the field offices of other Gov-ernment agencies will be a check-up
among plants using critical materials, in
which there are now serious shortages.
Information in the hands of the Pri-
orities Division indicates that a numberof violations have occurred. In somecases, it is indicated that certain manu-facturers have used preference ratings to
obtain critical materials which were sub-
sequently used for nondefense purposes.
In other cases preference ratings havebeen used to buy material for stock piling
in violation of priorities regulations whichstate that excess inventories shall not bemaintained.
It is believed that the number of willful
violators is relatively small. Because of
the critical shortages which exist, how-ever, such violations may make it difficult
for a defense manufacturer to obtain asufficient quantity of a given material for
defense production.
It is desirable, therefore, to see to It at
once that supplies are directed from vio-
lators to that real majority of Americanindustry, which patriotically cooperates,
so that it may not be penalized by the"cheating" and illegal activities of a few.
The Priorities Division has its own field
offices which will participate in surveys.
These offices, plus the regional and dis-
trict offices of other Government agencies,
will give the Priorities Division over 250
field offices through which necessaryInformation can be obtained.
Priorities must be obeyed, says Nelson;
changes gradual; direct allocation stressed
Following the announcement of a
Nation-wide survey of compliance with
priorities regulations, Priorities Director
Nelson issued a statement September 28
saying that all existing preference rat-
ings, orders, rules, and regulations mustbe scrupulously obeyed in order to pre-
vent interference with or unconscious
sabotage of the defense program.Mr. Nelson said:
Recent reorganization of the Nation's
defense agencies, together with specula-
tion about increased emphasis on alloca-
tion of raw materials, have given rise to
some misunderstandings. It is well to
review the facts and see where we stand
today.
A number of priority rules and regula-
tions, preference rating orders, and other
legal documents, have been issued since
the first of the year in the interests of
defense—that is, in the interests of all
of us.
These remain in effect. They will con-
tinue to remain in effect until and unless
circumstances warrant changes from time
to time in the future.
Wholehearted compliance is the very
essence of the priorities system, and any-one who does not comply, whetherthrough ignoranee or intent, takes a po-sition against the public good.
From time to time we will make efforts
to simplify the priorities system whenevernecessary. We believe that, when scat-
tered, individual problems become broad,
general problems, they must be handledalong broad, categorical lines. Our lim-
ited blanket ratings are examples of suchbroad treatment.
Will be no sudden changes
But this does not mean that we expect,
at any time, to make sudden, abruptchanges in the priorities system. Thevarious instruments now used—the pri-
ority certificates, blanket and project rat-
ings, allocation orders—will be continued.
They have proven their usefulness. Andany changes or additions to be made will
be made gradually.
One development which can be ex-
pected to work itself out over a period of
months is an increased emphasis on di-
rect allocation of materials. Since thestart, the Priorities Division has allo-
cated some materials—aluminum andnickel, for example—in which serious
shortages exist.
As these shortages increase, as the de-fense load steps up, allocation will haveto be used more and more. We will have
to know exactly what requirements are
and where these requirements exist; wewill have to know what the supply is; wewill have to make decisions as to whichamong competing consumers for a scarce
material will get it, which uses will be
aided, which will be cut.
When allocation is carried out fully,
—
typically by issuing instructions as to howmuch of what can be shipped to whom
—
this provides a clear-cut and exact wayof dividing up any given scarce material.
To the extent that allocation is used, it
tends to diminish the need for use of
preference rating certificates, especially
among those primary consumers who are
specifically selected to receive material.
In making such allocations, of course,
consideration is always given to the enduse of the material desired by a particular
consumer. Thus a company using alumi-
num for airplanes enjoys a better stand-
ing than one using aluminum for less
essential purposes.
Allocation and classification emphasized
When this field of operations has beenfully explored, we can give more empha-sis to two things: (1) Allocation of rawmaterials into industrial channels, and(2) some method of classifying end uses
of these materials in accordance with
the interests of defense. Allocation onthe one end, classification on the other
—
these are two basic aspects of any sound,
simple priorities system. We are already
doing both to some extent; we expect to
do more along the same line. To the
extent that this works out, we can expect
to diminish the need for individual pref-
erence rating certificates, althoughneither the certificates nor any other part
of the present system are likely to be
given up altogether.
To sum up:
1. There will be increased, emphasis onallocation of materials and classification
of end uses.
2. The priorities instruments used nowwill continue to be used as parts of the
system.
3. Changes made will be worked out
gradually, over a period of time.
4. All existing regulations and orders
and certificates must be scrupulously
obeyed, and violators will be held to ac-
count, punitive action being used if nec-
essary.
We recognize that the priorities system
has caused some hardships. We will try,
in anything we do, to avoid causing anyhardships which can be avoided.
• DEFENSE • September 30, 1941
CONTRACT DISTRIBUTION .
Field offices in all principal cities
to help small business get defense workFloyd B. Odium, Director of the new
Contract Distribution Division of the
Office of Production Management, issued
the following statement at a press con-
ference September 26:
Offices of the Contract Distribution
Division of OPM will be opened in all of
our principal industrial cities as fast as
the necessary manpower can be organized.
These field offices will be organized
along State lines. Each State will have
at least one office and some States sev-
eral others reporting to the main State
office. In all cases the location and num-ber of offices will be related to the amountof industrial facilities existing in the area.
In addition to the 39 offices that the
Division took over from the former De-fense Contract Service of OPM and is
now operating, offices are being opened
immediately in Hartford, Conn.; Provi-
dence, R. I.; Columbus, Ohio; andIndianapolis, Ind.
Offices will be opened soon in a num-bsr of othsr cities, including Albany,
N. Y.; Dayton, Ohio; Portland, Maine;
Rochester, N. Y.; Spokane, Wash.;
Springfield, II!.; Springfield, Mass.; Tren-
ton, N. J.; Wichita. Kans.; and Youngs-town, Ohio.
Existing small branch offices at Harris-
burg, Wilkes-Barre, and Allentown, Pa.,
will be enlarged.
Exact addresses of new offices will be
announced as rapidly as they are ready
for business.
Bane helps establish omces
This program will be carried on with
all possible speed until coverage is ade-
quate for the enormous job assigned to
the Division. Mr. Prank Bane, Executive
Director of the Council of State Govern-ments, has been loaned to us by that
organization to assist in establishing the
new offices.
The work of the Division will be decen-
tralized to the fullest degree possible
through these field offices so that nosmall manufacturer need feel it neces-
sary to come to Washington. The offices
will be staffed with men well qualified
to help small business get defense con-
tracts. They will cooperate closely with
all State agencies working toward the
same objective, and in all the principal
offices there will be representatives of the
Army and Navy and the Labor Division
of OPM.Purchases to be made by various gov-
ernmental agencies will be known to
these offices and the information madeavailable to the small businessmen.
Large prime contractors who are willing
or anxious to find plants that can dowork for them under subcontracts will
also be known to these offices, and the
HIGHLIGHTS
of Mr. Odium's statement:
FIELD OFFICES: In addition to the
39 originally operating, officss will be
established in all the principal indus-
trial cities.
BIDDING: Arrangements are being
made whereby bidding may be by areas
in certain cases. Competitive bidding
may be suspended where there is se-
vere community distress.
CLINICS: Contractors and prospec-
tive subcontractors will confer.
EXHIBITS: Small business will be
shown what it can do.
CONVERSION: When a plant withpriority distress can be converted to
defense production, Contract Distribu-
tion will recommend promptly to the
War or Navy Department or MaritimeCommission, which are cooperating,
that the plant be given a contract.
ADVICE: The small manufacturer
seeking defense work should go to the
nearest Contract Distribution Office,
with complete information about his
existing facilities.
small factory owners will be advised. In
turn, the facts concerning idle or pros-
pectively idle small plants and machineswill be marshalled through these offices
so that effective work on behalf of small
business can be done by the ContractDistribution Division with the central
planning and purchasing agencies of the
Army, Navy, and Maritime Commissionand with large companies having hugeorders that can be broken down into
many subcontracts.
Much has been accomplished
An undertaking of this magnitudetakes time, but much has already beenaccomplished.
Purchasing divisions of the Army,Navy, and the Maritime Commissionhave received directives from their top
officials to intensify the spreading of
defense work.
Arrangements are being madewhereby bidding may be by areas in
certain cases. In some cases, such as
that of severe community distress re-
sulting or threatened by shortages of
raw materials for nondefense work,
competitive bidding may be suspended
altogether.
Manitowoc, Wis., is the first exampleof a community receiving defense workquickly after certification by the OPMthat it faced serious "priorities unem-ployment." Action taken in this case
has been previously announced. Othersimilar situations are under study andin process of certification.
Big contractors responding
Big prime contractors are also re-
sponding promptly to my request of afew days ago that they designate top
men within their own organizations to
intensify subcontracting operations andto work in close touch with the Contract
Distribution Division. Several of themhave already taken action along these
lines.
The two advisory committees called
for by the Executive ordsr of September4, which created the Contract Distribu-
tion Division, have been organized. Inthem we are enlisting some of the best
brains in the country.
Small business committee
Walter W. Finke, of Minneapolis, pres-
ident of the United States Junior Cham-ber of Commerce, has accepted chair-
manship of the small business committeeand the following have already agreedto serve as members of the committee:
Ben Abrams, president, Emerson Radio &Phonograph Corporation, New York City;Boyd Bridgewater, president, BridgewaterMachine Co.. Akron, Ohio; W. B. Connell,manager. West Side Machine Works, Inc.,Kansas City, Kans.; Alfred C. Gaunt, presi-dent, Merrimac Mills. Metheun, Mass.; P. W.Grassell, president, Wilson Steel & Wire Co.,Chicago; I. L. Johnson, president. PacificSteel Casting Co., Berkeley, Calif.; H. C.Keiner, president, Keiner-Williams StampingCo., Richmond Hill, N. Y.; A. D. Kennedy,president, Davidson-Kennedy Co., Atlanta,Ga.; S. Alva Moog, secretary, St. Louis SpringCo., St. Louis, Mo.; Thomas J. Starke, presi-dent, Richmond Engine Co., Richmond, Va.;John H. Wilson, president, John Wilson Man-ufacturing Co.. Wichita Palls, Tex.; D. R. Yar-nall, Yarnall-Waring Co., Philadelphia.
Engineering committee
George S. Armstrong of George S.
Armstrong & Co., New York City, presi-
September 30, 1941 • DEFENSE •
dent of the Association of Consulting
Management Engineers, Inc., has accept-
ed chairmanship of the engineering com-mittee and the following outstanding in-
dustrial, management, and production
engineers have already agreed to serve
as members:
Edwin G. Booz. Booz. Pry, Allen & Hamil-ton, 135 South La Salle St., Chicago. El.;John M. Carmody. Administrator, FederalWorks Agency; Wallace Clark. Wallace Clark& Co., 50 Broad St., New York, N. Y.; WalterW. Colpitts, Coverdale & Colpitts. 120 WallSt., New York. N. Y.; Morris L. Cooke, techni-cal consultant. Labor Division, Office of Pro-duction Management; Harry Arthur Hopf. H.A. Hopf & Co., 500 Fifth Ave., New YorkCity; William S. Ford. William S. Ford, Inc.,Milwaukee. Wis.; J. R. Lotz, president. Stone& Webster Engineering Corporation, 90 BroadSt., New York City; Herbert G. Moulton, con-sulting engineer. 20 Pine St., New York City,representing the American Institute of Min-ing & Metallurgical Engineers; Edmund A.Prentis, Spencer. White & Prentis, New YorkCity, representing The American Society ofCivil Engineers; George T. Trundle, Jr., theTrundle Engineering Co.. 1501 Euclid Ave.,Cleveland Ohio; D. J. Walsh, Jr., Sanderson &Porter. 52 William St., New York City; JohnA. Willard, Bigelow, Kent. Willard & Co., 75Federal St.. Boston, Mass.
In addition, this committee will include
one representative each, yet to be named,for the American Society of MechanicalEngineers, the American Institute of
Chemical Engineers, and the AmericanInstitute of Electrical Engineers.
Committees meet this week
The engineering committee will meetin Washington September 30, and the
small business committee October 2.
They will advise the division with re-
spect to organization for the huge task
before it and solution of specific prob-
lems.
Robert L. Mehornay, of Kansas City,
who directed the former Defense Con-tract Service of OPM, has agreed at myrequest to remain temporarily as a con-
sultant during the expansion period. Heis giving us most valuable and patriotic
assistance.
John M. Whitaker, who has been con-
sultant to Price Administrator Leon Hen-derson in charge of the formation of in-
dustry advisory committees, has beenappointed to be my executive assistant.
The best technical and administrative
manpower available is being assembled
by the division and additional appoint-
ments will be announced as soon as pro-
cedural requirements are met.
The objective of the division is first,
last, and always to get defense produc-tion work spread out among the small
plants of the country. This not only will
help little business as such, along withlabor, but will also speed up defense
production.
Preparing for production clinics
Among other things the division is pre-
paring to conduct a great number of de-
fense production clinics and to provide
practical exhibits of "bits and pieces" that
will help small businessmen determinewhat defense items they can make.The clinics at which prime contractors
and prospective subcontractors meetacross the table for discussion and actual
subcontract negotiations have provenhighly successful where tried. They will
be organized in numerous Industrial
centers.
Exhibits to be taken about the country
NEW FIELD OFFICES
READY FOR BUSINESS
Four of the new field offices being
opened by the Contract Distribution
Division are ready for business.
These offices and their addresses are
as follows:
Columbus, Ohio—305 Spahr Build-
ing, 50 East Broad Street.
Indianapolis, lnd.—Circle Tower.
Hartford, Conn.—Phoenix BankBuilding, 805 Main Street.
Providence, R. I.—Industrial Trust
Building, Westminister Street.
will show the operators of small factories
what is needed and give them a clearer
picture than they can obtain from speci-
fications and blueprints. Some of the
exhibits will be transported from point to
point. Other locations, including such
centers as New York, Philadelphia, Cleve-
land, Chicago, St. Louis, and San Fran-cisco, will be selected for permanent ex-
hibits in which, of course, the "bits andpieces" shown will be changed from time
to time as different needs develop.
Conversion is urgent problem
The most urgent problem is the con-
version to defense production of factories
being cut off from civilian production onaccount of shortages of raw materials
and priorities. Such cases are being cer-
tified to us by the Labor Division of the
Office of Production Management and weare giving first attention to the problem
of determining whether the facilities in-
volved can do defense work. In cases
where they are adaptable we will recom-
mend promptly to the War or Navy De-
partments or the Maritime Commission
that they receive contracts.
With defense orders that will take
many months to fill piled up in someplaces, and with defense materials need-
ed badly at many qualified small plants
now idle or partially so, the answer is
simple and overdue. It is to spread the
work, spread the benefits of the work,
and speed up production.
Big manufacturers can do their partright now, on their own, by passing asmuch work as possible on under subcon-tracts. Simple work should not be re-
tained and difficult work subcontracted.It's got to be done the other way aroundIf we're going to mobilize all our resources
and finish this defense job in time.
While the organization work involvedis exceedingly great the job Is beginningto take form. Results will be cumulative.At the start selection must be made of themost critical of many urgent problems.
Until we get the division more fully or-ganized my advice to small manufacturersseeking defense work is simply this: Goto the Contract Distribution Office near-est you with full information as to yourplant's equipment. These offices will doall they can with their existing facilities
to help you get defense work either fromthe Government, or as subcontractors,from existing prime contractors.
Offices previously established are lo-
cated in Federal Reserve Banks andBranch Banks in the following cities:
Atlanta, Baltimore, Birmingham, Boston,Chicago, Cleveland, Dallas, Denver, Detroit;El Paso, Tex.; Helena, Mont.; Houston, Tex.;Kansas City, Mo.; Little Rock, Los Angeles;Louisville, Ky.; Memphis. Nashville, New Or-leans, New York City, Oklahoma City, Omaha,Philadelphia, Pittsburgh; Portland, Oreg.;Richmond, Va.; Salt Lake City, San Antonio,San Francisco, and St. Louis.
Other previously established offices are
located as follows:
Buffalo, Traders Bank Building, Room 212,Main and Swan Streets. Charlotte, N. C, NewLiberty Life Building. Cincinnati, UnionTrust Building, Room 804. Des Moines, 505Crocker Building. Jacksonville, 504 Hilde-brandt Building. Milwaukee, 1124 First Wis-consin National Bank Building. Minneap-olis. 240 Rand Tower Building. Newark, 176Sussex Avenue. Seattle, National Bank ofCommerce Building.
• * *
800 REA cooperatives invited
to aid rural defense
OCD Director LaGuardia expressed
gratification September 25 at the an-
nouncement that 800 Rural Electrifica-
tion Administration cooperatives
throughout the United States have been
Invited to participate in rural and coun-
ty defense councils. The cooperatives
include two-thirds of the 3,000 counties
In the United States.
Mayor LaGuardia said that the nine
regional directors of the Office of Civilian
Defense and the State defense councils
would welcome the active participation
of the REA cooperatives because of their
particular facility in promoting the de-
fense program in the rural areas.
• DEFENSE • September 30, 1941
Aluminum plant given
of $987,000 to combat
New machinery established to spread
defense work into factories and commu-nities threatened with severe "priorities
unemployment" produced results Sep-
tember 24 in the first case considered.
The War Department awarded a $987,-
000 contract to the Aluminum Goods
Manufacturing Co. of Manitowoc, Wis.,
following certification by the Office of
Production Management that the com-
munity of Manitowoc was suffering se-
vere unemployment due to lack of
aluminum for "pots and pans." Skilled
labor forces of value to the defense pro-
gram were in danger of being scattered
unless the community obtained addi-
tional defense work.
With the approval of Under Secre-
tary Robert P. Patterson, Major Gen.
E. B. Gregory, the Quartermaster Gen-
eral, made the award upon the recom-
mendation of the Contract Distribution
and Labor Divisions of OPM and the
Army Contract Distribution Division
headed by Lt. Col. Ray M. Hare.
Other companies get awards too
Defense work was provided in the sameaward for a number of other aluminumgoods manufacturers who, although their
firms or communities have not been cer-
tified for special treatment thus far,
cannot obtain further aluminum for non-
defense production. These companies
and the awards to each were as follows:
Aluminum Cooking Utensil Co., NewKensington, Pa., $608,600; Landers, Prary
& Clark, New Britain, Conn., $222600;
Massiion Aluminum Co., Massilon, Ohio,
$101,337.50; Illinois Pure Aluminum Co.,
Lamonte, 111., $160,000.
The awards cover aluminum canteens,
canteen cups, and meat cans, all part of
the soldier's field equipment.
The community of Manitowoc, Wis.,
was the first certified by the OPM for
"priorities unemployment" relief because
it is heavily dependent for its livelihood
on the aluminum goods manufacturingindustry. In 1940, over 2,000 of the 3,900
employees in manufacturing industries in
Manitowoc were employed in the alumi-
num goods industry.
With the curtailment of the flow of
aluminum for nondefense production,
sweeping reductions in employment have
defense contract
local unemployment
occurred in the aluminum working plants
of the community. Since last March the
Aluminum Goods Manufacturing Co.,
largest producer of aluminumware in the
country, has laid oft 563 of its force of
2,583 employees. This situation threat-
ened to grow much worse as inventories
were exhausted. Recently the companyreceived a contract for one million 37
mm. shell casings but continuous use of
machinery available for this work would
employ only a small part of the normalworking force.
Odium asks 56 major defense companies
to appoint subcontracting executives
It was announced last week that Floyd
B. Odium, Director of OPM's new Divi-
sion of Contract Distribution, had asked
each of 56 companies holding major de-
fense contracts to appoint an executive
in charge of subcontracting. Mr. Od-ium's letter to the companies follows:
Recently, the President appointed meDirector of the Division of Contract Dis-
tribution. The most important duty of
this new division is to bring about as
quickly as possible a wider distribution
of defense orders among small businesses
and small communities, and to speed the
defense effort. The enormity of this
undertaking is exceeded only by its im-
portance to the preservation of this
country's way of life.
Orders piled up in a few plants
Orders for defense goods have piled
up in a comparatively few of the larger
more efficient plants of our country. Atthe same time many smaller plants able
to work, but lesser known to Procure-
ment Offices or less efficient have been
v/ithout work.
Because of the tremendous all out de-
fense effort, thousands of small busi-
nesses which have been busy up until
now face a shut down due to lack of ma-terials for civilian production.
Thousands of communities depend onthe operation of these small businesses.
The personnel of these small enter-
prises represents the solid backbone of
our country. They are our church lead-
ers, our civic workers, our charity heads,
our supporters of fraternal and public
spirited organizations.
You can well imagine the social catas-
trophe and economic dislocation whichmight follow if these small enterprises
are put out of business.
"We must have practical action"
Such a tragedy must not happen andwith your help it will not happen. Let-
ter writing will not help. We must have
practical action at once. As a first step
in this practical action, I request you,
if your company has not already done so,
to appoint one of your ablest executives
to take charge of subcontracting to small
enterprises and organize it intensively
within your ranks. I want this man also
to be appointed to act as liaison officer
between my division and your company.He will bring your problems to us andour problems to you.
This new responsibility is both a chal-
lenge and an opportunity.
It is a challenge to big business to
quickly organize itself so that it cansubcontract on a large scale.
It is an opportunity to show the Na-tion that big business is a friend of little
business and that in this great crisis it
served as little business' best friend.
May I have your immediate action.
Please notify me at once the name of
your executive selected.
These are the companies to which Mr.
Odium's letter was sent:
Bethlehem Steel Corporation. New YorkShipbuilding Corporation, General MotorsCorporation. Curtiss-W right Corporation,Newport News Shipbuilding & Dry Dock Co.,
E. I. duPont de Nemours & Co., Inc., Glenn L.
Martin Co., Consolidated Aircraft Corpora-tion, United Aircraft Co., Douglas Aircraft
Inc., United States Steel Corporation, Seattle
Tacoma Shipbuilding Co., Boeing AirplaneCo., Bath Iron Works, General Electric Co.,
Ford Motor Co., Electric Boat Co.
North American Aviation, Inc., Cramp Ship-building Co., Sperry Corporation. BendixAviation Corporation. Western Cartridge Co.,
Consolidated Steel Corporation, Los AngelesShipbuilding and Dry Dock Corporation,Baldwin Locomotive Works, American Carand Foundry Co., American Woolen Co.,
Chrysler Corporation, Packard Motor Car Co.,
Tampa Shipbuilding Co., Inc., Republic Avia-tion Co., Grumman Aircraft Engineering Cor-poration, American Locomotive Co., IngallsShipbuilding Co.. White Motor Co., LockneedAircraft Corporation, Vultee Aircraft. Inc.,
Fairbanks Morse & Co., Continental MotorsCorporation.
Gulf Shipbuilding Corporation, Stevens,J. P. & Co., Western Electric Co., Inc., MooreDry Dock Co.. Atlas Powder Co., Diamond T.
Motor Co., Studebaker Corporation, Manito-woc Shipbuilding Co., Hercules Powder Co.,
Lake Washington Shipyards, Savage ArmsCorporation. Bell Aircraft Corporation. Todd& Brown, Inc., Norihern Pump Co.. Willa-mette Iron & Steel Corporation, Crucible SteelCo. of America, Arma Corporation.
September 30, 1941 • DEFENSE •
MEDIATION BOARD . .
.
Seamen call off 10-day strike;
threatened aircraft walk-out postponed
Through the action of the National De-
fense Mediation Board last week (Sep-
tember 22-28), a total of 88,666 meneither returned to work or postponed
threatened strikes. There has been only
1 week In the Board's history when this
figure has been exceeded. That was the
last week in April when 400,000 coal
miners returned to work and 160,000 em-ployees of General Motors postponed a
threatened strike at the Board's request.
The Board also obtained a settlement in
one case; made recommendations in three
more; reached an interim agreement in
one case, and received certification of two
new cases. At the close of the week there
was a work stoppage in only one Board
case, involving 1,400 men. In 80 addi-
tional cases, a total of 879,600 men were
at work.
Seamen call off strike
Most important action of last week was thesuccessful request by the Board that the Sea-farers International Union and the SailorsUnion of the Pacific, both AFL, call off their10-day strike which had tied up 26 shipsbound for defense bases in the West Indies.Shortly before the Board wired the partiesSeptember 24 asking them to end the strike.
President Roosevelt told a press conferencethat the ships must move and expressed hisbelief that the Mediation Beard would sett'e
the controversy, which was over the amountof the war bonus to be paid the men. TheMaritime Commission had seized three of thevessels. Hearings were set for September £9.
The unions agreed to postpone a threatenedstrike of 20,000 men on all the lines undercontract with the Seafarers InternationalUnion.
Consolidated Aircraft Co.
The Board last week succeeded In obtain-ing postponement of a threatened strike of22,000 employees of the Consolidated AircraftCo. of San Diego, Calif., over a demand ofthe International Association of Machinists,AFL. that wages be increased 10 cents anhour. The company had signified its willing-ness to grant a 5-cent Increase and the casewas certified September 24. It is set forhearings October 2.
Bituminous coal—Alabama mines
and captive mines
Hearings in the dispute between the Ala-bama coal operators and the United MineWorkers of America, CIO, continued all weekthrough Friday, at which time they wererecessed until October 2. The hearings Inthe captive mines dispute reopened Wednes-day, September 24, continued through Sep-tember 26, then adjourned to October 7.
Full production was resumed in the captivemines on Monday, September 22, under theterms of a 30-day truce recommended by theBoard.
Bendix Aviation Corporation
On September 24, hearings were openedIn the dispute between the Bendix AviationCorporation. South Bend, Ind., and theUnited Automobile Workers, CIO, over thedisplacement of men by women at lowerwages. The union claimed that the com-pany had violated their contract. A strikeof 8.400 workers threatened for September16, had been postponed at the request of theEoard. The company is the Nation's larg-est producer of aviation carburetors. Apanel composed of Charles E. Wyzanski, Jr.,
Cy Chlng, and James B. Carey obtained anagreement from both parties to allow aBoard representative to make a binding de-termination as to whether the contract hadbeen violated. The Board appointed GeorgeW. Taylor, Impartial umpire for the UAWand the General Motors Corporation. IfMr. Taylor holds against the company, thewomen will be given the same pay as menon the job, the increases to be retroactiveto the date of their employment.The Board also recommended that the
parties should begin promptly to discus3plans which the company has for installinga training and upgrading program. Thesediscussions should include, the recommenda-tions state, "appropriate guarantees to theworkers and appropriate steps to aid themaximum production of defense material "
The Board will appoint a representative tosit In on these negotiations as a mediator.The recommendations vere accepted by bothparties, subject to ratification by the unionmembership.
Kendey Machine Co.
The dispute between the Hendey MachineCo., Torrington, Conn., and the United Au-tomobile Workers, CIO, came before a Boardpanel of Walter Stacy, Charles Adams, andEmll Rleve on September 26. A strike of1,429 workers since September 5 had beencalled off at the Board's request and the menreturned to work September 22. The plantIs making machine tools. The union wasasking for a wage increase, a union shop, anda 10c differential for the night shift. Twodays of hearings resulted in an agreementSaturday that the Board appoint an Inves-tigator to study, at the company's expense,the feasibility of putting an incentive planInto the plant which would both Increaseproduction and raise the earnings of em-ployees. The firm of Stephenson, Harrisonand Jordan of New York has been appointedand after their report Is made, hearings willbe resumed.
Consolidated Edison Co.
On September 25, the Board Issued rec-ommendations in the dispute between theConsolidated Edison Co. of New York, theInternational Brotherhood of ElectricalWorkers, AFL. and the Brotherhood of Con-solidated Edison Employees. The Boardfound that Local 3's claim to Jurisdictionover the electrical work on the jobs at Water-side and Sherman Creek was not well takenand recommended that there be no changein the present allocation of that work, whichhad been allotted to the Independent union.The Board found no basis for recommendinga particular line of demarcation to governthe allocation of future work as betweenthe two unions. However, to avoid a gen-eral strike which would cripple the Greater
New York area, the Board recommended thatwhen such a controversy arises in the futureand a fair solution cannot be worked outby the parties, they avail themselves of theoffices of the New York State MediationBoard.
Marlin-Rockwell Corporation
The Marlin-Rockwell Corporation and theUnited Automobile Workers, CIO, came inSeptember 22 for further hearings beforethe panel of Frank Graham, Cy Chlng, andHugh Lyons. Two days of hearings lastingto 1:30 a. m. the second night resulted ina complete contract being signed by bothparties. The contract included the termsof the Board's recommendations for settlingthis dispute and the men returned to workon the night shift September 24. A strikehad been called at this plant September 19to protest against the refusal of the com-pany to accept the recommendations ofthe Board on wages for women and vacationswith pay. The strike involved 1,225 workersmaking ball bearings for plane motors.When the meetings ended last week withthe signing of the contract, both partiespledged themselves to cooperate fully in thefuture.
Aluminum Co. of AmericaOn Friday, September 26, the Board issued
recommendation in the dispute betweenthe Aluminum Co. of America, Vancouver,Wash., and the Aluminum Trades Council,AFL. The main issue in the dispute wasthe union shop, over which a strike of 730workers had been threatened only to bepostponed at the request of the Board.The Board recommended that the unionshop demand be deferred pending negotia-tion of a master agreement covering not onlythe Vancouver plant but also other plantsof the company where the AFL is the recog-nized collective bargaining agency.
• • •
Nine members appointed to
cordage industry committee
Appointment of nine men to a Defense
Industry Advisory Committee for the
hard fiber cordage industry was an-nounced September 26 by the Bureau of
Clearance of Defense Industry Advisory
Committees.
This industry manufactures cordage
from Manila fiber, which is a strategic
fiber used In making rope for the Navy,
and Maritime uses, and also manufac-tures binder twine, used largely for agri-
culture.
Personnel of committee
Membership of the committee follows:
E. W. Brewster, treasurer and general man-ager, Plymouth Cordage Co., North Plymouth,Mass,; F. P. McCann, vice president, TubbsCordage Co., San Francisco, Calif.; E. D. Mar-tin, general manager, Hooven & Allison Co.,Xenia, Ohio; S. W. Metcalf, president, Co-lumbian Rope Co.. Auburn N. Y.; 6. HowardRugg, E. T. Rugg Co., Newark, Ohio; JohnU. Barr, Federal Fibre Mills, Inc., New Or-leans, La.; W. C. Cating, Jr.. vice president,Catlng Rope Works. Inc., Maspeth, N. Y.;
H. A. Whltlock, president, Whitlock CordageCo., New York City; and Waldo Reiner, WallRope Works, Inc., New York City.
• DEFENSE • September 30, 1941
PRIORITIES . .
.
Priorities for dairy industry's expansion
will be provided to speed vital foods
Because of the need for expanding
dairy production to meet United States
and British food requirements, the Sup-
ply Priorities and Allocations Board an-
nounced September 25 that special at-
tention will be given to the provision of
equipment necessary for this expansion.
Executive Director Donald M. Nelson
has been authorized to prepare a pri-
orities plan, in cooperation with the
Departent of Agriculture, whereby ma-
terials needed for manufacture of equip-
ment required for a moderate expansion
of the dairy industry may be obtained.
Contingent on conservation
Provision of these materials is to be
made contingent, however, upon adop-
tion by the industry of methods for sav-
ing scarce materials through conserva-
tion, substitution, and the simplification
of equipment.
Expansion is needed chiefly in the pro-
duction of evaporated and condensed
milk, cheese, and dried milk.
Because of the pressure of domestic
and Lend-Lease needs, SPAB agreed
that some expansion of these productive
facilities is called for.
Further consideration will be given to
other farm equipment, whose manufac-
ture involves the use of various critical
materials vitally needed for defense.
SPAB directed Mr. Nelson to work with
the agricultural implement industry and
the Department of Agriculture to de-
termine the minimum needs, by general
classifications, of manufactured items
which agriculture must have in order to
produce the required volume of food-
stuffs. SPAB hopes that savings can be
made through conservation, substitu-
tion, and simplification; through the re-
pair of existing equipment where possible,
and through a more efficient use of
equipment now on hand, so that agricul-
ture's needs may be met.
Conflict in orders eliminated
for zinc producers
Priorities Director Nelson has issued an
Interpretation clearing up a contradic-
tion that has existed between the terms
of General Preference Order M-ll, which
sets forth the manner in which produc-
ers of zinc must ship to customers, and
the paragraph in Priorities Division
Regulation No. 1 which made mandatory
the acceptance of all defense orders.
The necessity for this interpretation
arose from the fact that under the terms
of the zinc order a producer, after set-
ting aside a stipulated amount for the
zinc pool, must ship to each of his cus-
tomers a pro-rata amount of his commit-
ments to them. If, after making deliver-
ies to one customer, the producer were
required to accept a defense order, it
might make impossible compliance with
this requirement. It has been ruled,
therefore, that to this extent Regulation
No. 1 does not apply to producers of zinc.
Persons needing metallic zinc, zinc ox-
ide, or zinc dust to fill defense orders, whoare experiencing difficulty in obtaining
these materials, should make application
to the Zinc Branch of the OPM for allo-
cations, as in the past.
Alloy iron as used in M-21-a
does not include ferro-alloys
Supplementary Order No. M-21-a is-
sued by the Division of Priorities on Sep-
tember 16 relates to "Alloy Iron, Alloy
Steel, and Wrought Iron."
The iron and steel section of the OPMsaid September 26 that alloy iron as
used in the order does not include ferro-
alloys, as has been assumed in some
quarters.
Alloy iron as used in the order meansiron castings containing any one or more
of the alloying elements mentioned in
the order in excess of the percentages
fixed.
• • •
OCTOBER ZINC POOL
The emergency zinc pool for October
was announced September 26.
Producers of metallic zinc will set aside
an amount equal to 27 percent of their
August production. This will amount to
approximately 20,400 short tons.
Producers of zinc oxide and metallic
zinc dust are not required to set aside any
part of their production for October use.
General Metals Order No. 1
revoked; restrictions remain
General Metals Order No. 1, issued by
the Priorities Division of the Office of
Production Management on May 1, 1941,
was revoked September 23 in an order
signed by Priorities Director Nelson.
The general metals order placed 16
metals and types of metals under inven-
tory control. Since then a number of
these materials, including copper, and
iron and steel products, have been placed
under mandatory industry-wide control,
and removed from the provisions of the
earlier order.
Priorities regulation No. 1
contains same restrictions
The termination of General Metals
Order No. 1 does not lift the restrictions
it imposed, however, as these are included
in Priorities Regulation No. 1 issued
August 27, 1941. The paragraph dealing
with inventories of all materials, includ-
ing metals, reads as follows:
Unless specifically authorized by the Direc-tor of Priorities, no person shall, after theeffective date of this regulation, knowinglymake delivery of any material whatever, andno person shall accept delivery thereof, in anamount, quantity or number which will in-
crease for any current month the inventoryof such material of the person accepting de-livery, in the same or other forms, in excessof the amount, quantity or number necessaryto meet required deliveries of the products of
the person accepting delivery, on the basis
of his current method and rate of operation.
* • *
How to apply for research
laboratory priorities
There has been some misunderstand-
ing among research laboratories as to
the proper method of applying for the
A-2 preference rating assigned to deliv-
eries of materials and equipment to them.
In Preference Rating Order P-43.
All applications should be filed on PD-88, and directed to the Chemical Branch,
Office of Production Management, Wash-
ington, D. C.
The fact that the National Academyof Sciences is being asked by the Priori-
ties Division to pass upon certain appli-
cations does not mean that any requests
should be addressed directly to the Acad-
emy by laboratories interested in the
plan. All correspondence should be with
the OPM Chemical Branch.
September 30, 1941 • DEFENSE •
End of fiscal year in 1940
is "working minimum" model
in granting repair priorities
Preference Rating Order P-46 issued
by Priorities Director Nelson on Septem-
ber 17, 1941, stipulated that the assist-
ance which it extends in securing repair
parts could not be used until a producer's
inventory and stores of material of the
same class had been reduced to a prac-
tical working minimum. This minimumwas set as that on hand on December 31,
1940.
Because it has been found that a num-ber of public utilities have fiscal years
other than the calendar year, the order
has been amended to authorize a pro-
ducer to use the closing day of its fiscal
year which ended during 1940, as the
basis for determining a practical working
minimum Inventory.
• * *
Plants in foreign countries
excluded from repair orders
Priorities Director Nelson issued Sep-
tember 26 interpretations to the tworepair orders, P-22 and P-46, which ex-
tend priority assistance in obtaining ma-terials for essential repairs, to certain
listed industries and public utilities.
The interpretations restrict the appli-
cation of priority ratings to property andequipment located within the continental
United States, its territories, and pos-
sessions. Plants operated in foreign
countries by American interests do not
qualify under the terms of the orders.
* * •
Plant repair rating can
be applied to old orders
Priorities Director Nelson announcedSeptember 20 an interpretation of Pref-
erence Rating Order P-22. This order,
issued on September 9, assigns a priority
rating of A-10 to materials for essential
repairs to plants in certain listed essen-
tial industries.
Under the terms of the interpretation,
It is now permissible to apply the A-10rating to orders which had been placed
previous to the issuance date of the
priorities order.
Order sets aside rayon yarn by length,
distributes types according to needs
An order changing the manner in
which rayon yarn is to be made available
to former users of silk and setting up aformula by which the supply can bedivided equitably among former silk andrayon users was issued September 25 bythe Division of Priorities, on recommen-dation of the Silk Substitution Section.
The order replaces the temporary pro-
gram worked out immediately after thesilk freezing order went into effect, andis to become effective October 1.
In substance, it directs that the quan-tity of rayon yarn which is to be set
aside for former silk users is to be meas-ured by length instead of by weight; it
also changes the method of distributing
this yarn so that both hosiery and non-hosiery manufacturers can get the type
of yarn best suited to their needs.
Viscose or cuprammonium yarn
Thus, instead of setting aside 10 per-
cent of total production, in pounds, the
producer of viscose or cuprammoniumyarn is instructed to set aside fine yarnequal to the production of 9 percent of
his active spindles—excluding from this
total the spindles necessary to fill any de-
fense contracts he may hold. Yarn thus
set aside is to be disposed of as follows:
An amount equal to 0.9 percent of totalspindle production is to be held for disposi-tion according to specific instructions fromthe Director of Priorities. This continues thepool of yarn built up for "undue hardship"cases, which the previous program built upby taking iya percent of total production inpounds.An amount equal to 0.45 percent of total
spindle production is to be made availableImmediately for purchase by former silk
users who make articles other than hosiery.
The balance of the amount set aside—7.65percent of total spindle production—is tobe made available Immediately for sale tohosiery manufacturers.
Acetate rayon regulations
Similarly, the producer of acetate
rayon is required to set aside fine yarn
equal to 5 percent of his total active
spindle production—with spindles needed
to fill defense contracts again excluded
from the count. This yarn is to be dis-
posed of as follows:
An amount equal to 0.5 percent of totalspindle production goes Into the "unduehardship" pool.An equal amount Is to be made available
lor immediate sale to hosiery manufacturers.The balance
—
i percent of total spindleproduction—is to be made available Imme-diately for sale to former silk users who makeproducts other than hosiery.
In this way, the bulk of the viscose
and cuprammonium yarn is set aside for
hosiery manufacturers, who state thatthis type of rayon is best suited to their
needs, while most of the acetate yarngoes to nonhosiery manufacturers, whoin turn say that type is preferable for
their uses.
Old "hardship" pool held for release
Producers who have in their possessionyarn set aside for "undue hardship" cases
on the old V/2 percent basis are in-
structed to continue to hold this until it
is allocated by the Director of Priorities.
If it is not allocated by November 1, it
may be sold to any purchaser.
None of the yarn held in the "unduehardship" pool may be sold except whenspecifically authorized by the Director of
Priorities. The order provides that amanufacturer who accepts an unauthor-ized delivery of such yarn, or who other-wise violates the provisions of the order,
may be prohibited from obtaining fur-
ther deliveries of yarn from the pool.
Basic monthly poundage established
An important part of the order is theprovision of a basic monthly poundagewhich the former silk user may buy. Aformula is set up by which all purchasesof the yarn set aside under this programmust bear a direct relation to the pur-
chasing manufacturer's, jobber's or con-
verter's previous consumption of silk, the
relation varying with the denier, or size,
of the yarn.
Purchasers are required to fill out cer-
tificates, giving the information fromwhich it may be calculated whether the
amounts being bought are within the
basic monthly poundage limit; and norayon producer or jobber may make a
sale of yarn set aside under this order
unless he first receives a certificate from
the purchaser. A manufacturer maynot buy from all sources put together
more of the reserved yarn than his basic
monthly poundage; nor may he own, con-
trol, or hold in inventory at any time an
amount of reserved yarn in excess of that
poundage.
* • •
10,000 ARMY NURSES NEEDED
More than 10,000 nurses are needed for
the Army Nurse Corps, the War Depart-
ment announced September 18.
10 • DEFENSE • September 30, 1941
Defense housing critical list
In announcing September 19 that pri-
orities would be granted for 200,000 pri-
vately financed defense housing units,
(see Defense, September 23) the Pri-
orities Division issued a list of materials
to which the preference ratings were ap-
plicable.
The list is printed below:
1. This list is based upon the critical po-
sition of the materials involved as of the date
of issue hereof and since that position maychange at any time this list is subject to re-
vision whenever affecting circumstances war-rant such action.
2. Herein included are all items for whichpriorities assistance will be given for theconstruction of defense housing, includingGovernment owned, or assisted, and privately
financed. Any materials under priority con-trol not listed herein and which may bedeemed essential in a given project by those
constructing it, shall be handled as an in-
dependent item for priority consideration andwill be considered on its merits in relation to
that project.3. Any material not requiring priority as-
sistance may be used in any defense housingproject at the discretion of those construct-
ing the project, provided such use of the ma-terial is consistent with any other regulation
that may govern the project.
4. The preference rating granted to a proj-
ect will apply only to the materials listed
herein and only in such quantities as theOffice of Production Management may permitunder the order granted. This limitation, un-less otherwise defined shall lie within thelimits of good practice.
STEEL AND IRON
—
to include only:
1. Reinforcing steel, including rods, mesh,fabric, tie wire, and accessories, for concreteand masonry construction.
2. Structural members
—
to include only(a) Bearing plates, under 6 pounds; (b) Joist
hangers—multifamily dwellings only; (c)
Anchors, bolts, tie rods, dowels, and cleats;
(d) Angle Unties—over openings in veneermasonry walls only.
3. Steel stairs, rails, etc.—only for multi-family dwellings where necessary for fire
hazard protection—concrete preferred. Un-coated ferrous metal.
4. Insect screen mesh
—
made only of (a)
Painted steel; (b) Thin coat galvanizing andlacquered.
• 5. Fire doors and their frames for multi-family dwellings only—wood cored with terne-plate covers.
6. Roofing devices, flashings, half-roundgutters, hangers and downspouts
—
to includeonly: (a) Steel not heavier than 26 gauge,uncoated or phosphate treated and painted,or zinc coated by electrical process and phos-phate treated and painted, or 2 poundlead; (b) Gravel stops, as for item "a" orasphalt dipped steel; (c) Roof ventilators(aspirator type) as for item "a"; (d) Termiteshields for infested areas only—as for item"a"; (e) Wire basket strainers only for
downspouts connected to sewer lines—zinccoated; (f ) Scuppers, and downspout connec-tions for flat roofs—ferrous metal zinc coated.
7. Lath
—
to include only: (a) Ferrousmetal, paint dipped. Limited to fire-resist-
lng partitions, ceilings and soffits, and towall tile bed base, and where gypsum lathand gypsum plaster is not permitted; (b)
Corner reinforcing—ferrous metal, paintdipped. Limited to not more than 2>/2 inchlap on each surface of internal angles and oneach surface where different kinds of plaster
base abut each other. Corner beads for
vertical corners only, paint dipped ferrousmetal generally, zinc coated only where ex-
posed to moisture or extreme conditions of
humidity; (c) Exterior stucco base, wovenor welded fabric, nonmetallic coated; zinc
coated before fabrication, optional in Cali-
fornia coastal district only.
8. Builders and cabinet hardware—withparts of steel or iron only except necessary
bushings and pin tumbler assemblies of brass
or bronze and, optionally, latch bolts, deadbolts, and stop buttons in exterior lock as-
semblies of brass or bronze; knobs, pushplates, drawer and other pulls of glass or
other nonmetallic material. Exposed steel
parts for exterior use. Japanned or primedfor painting, lacquered over phosphate coat-
ing or cadmium coated, and excluding fin-
ishes of zinc coating, nickel or chromiumplating except as below noted: (a) Nails,
screws, bolts, nuts, and washers ferrous metalgenerally uncoated; zinc coated, optional, for
roof coverings and wall ties only; (b) Wall
ties zinc coated for masonry veneer over
frame construction; (c) Pulleys and sash
balances: (1) uncoated Japanned or primedfor painting ferrous metal; (2) electroplated
WHAT HOUSING PRIORITIES
WILL MEAN
to builders and to the public is discussed
by Defense Housing Coordinator Charles
F. Palmer on page 16.
zinc on ferrous metal spiral and similar sash
balances; (3) weights, cast Iron; (d) Self-
releasing fire exit-devices, as for builders'
hardware above; (e) Wood Venetian blind
hardware and shade fixtures, ferrous metal,
primed for paint or lacquered.
Note.—Hardware used exteriorly under ex-
treme exposure conditions—as in salt air,
zinc coated in lieu of as above listed.
9. Glazing points, zinc.
ELECTRICAL—to include only:
Note.—Roughing-in material limited to the
recommendations of the electrical supplies
industry on file In the Priorities Section, OPM.1. Underground materials.
2. Overhead materials.
3. Entrance (main) service switch andmeter pan or receptacle.
4. Meter.
5. Circuit breaker type distribution panels.
6. Fuse type distribution panels including
fuses.
7. Interior wiring method: (a) For non-fireproof construction— (1) Knob and tube,
wire and fittings; (2) Wire, and nonmetallic
sheathed cable; (3) Flexible metallic conduit
and armored cable, zinc coating limited in
thickness to that of standard electroplate for
this material; (b) For fireproof construction
—
(1) Wire; (2) Rigid steel conduit, enameled;
(3) Flexible metallic conduit or armored cable,
coated as above noted.
8. Conduit fittings, outlet boxes and wiring
devices—number limited, see Note.
9. Plates—switches and convenience out-
lets, nonmetallic.
10. Lighting fixtures—except aluminum andsolid brass or bronze, copper and brass plat-
ing permitted: (a) Indoor fixtures, light
gauge spinnings, stampings, and drawings;
nonmetallic (glass, plastics, porcelain, etc.)
wherever practicable; (b) Outdoor fixtures
and standards, cast and wrought ferrous metalonly.
11. Electrical accessories: (a) Wiring, bells,
buzzers, push buttons, and transformers
—
multifamily dwellings only; (b) Lock re-
leases—multifamily dwellings only; (c) En-trance door communication—multifamilydwellings only; (d) Public telephone systems.
PLUMBING AND GAS DISTRIBUTIONSYSTEMS
—
to include only:
1. Cast or stamped ferrous metal, enameledand vitreous ware plumbing fixtures, the lat-
ter wherever practicable.
2. Fixture Fitting3 and Trimmings—Basemetal limited to ferrous metal, yellow brass
and zinc die castings with plating of flashed
copper and nickel or unplated.3. Drainage and Venting Systems—to in-
clude only: (a) Cast iron pipe and fittings;
(b) Galvanized steel pipe, wrought iron pipe
and malleable fittings generally nonmetalliccoated; (c) Ferrous metal and brass tubingtraps, clean-cuts and connections for fixtures
(Brass limited to minimum necessary).4. Water Distribution Systems
—
to includeonly: (a) Galvanized steel or wrought iron
pipe and malleable fittings, or cement linedcast iron pipe and fittings—lead whereverpracticable, inside buildings only; (b)
Valves—iron and (brass limited to minimumnecessary and used for seats only whereverpracticable)
.
5. Water heaters (storage type) and hotwater storage tanks
—
made only of: (a) Gal-vanized sheet—only where local conditionsnecessitate; (b) Black steel, painted; (c)
Coated steel (enamel or glass lined); (d)
Brass valves, connections and controls for
water heaters: (e) Copper coils for storagetype hot water generators and heat exchang-ers—multifamily systems only.
6. Water softeners for multifamily dwellingsonly, to have painted steel exteriors, in-teriors as for water heaters, etc.
7. Gas distribution system
—
only for itemsnoted below: (a) Black steel pipe and fit-
tings; (b) Valves as for water distributionsystems.
HEATING AND VENTILATING EQUIP-MENT
—
to include only:
1. Boilers
—
furnaces only for items notedbelow: (a) Boilers—ferrous metal with brasssafety devices and cocks, limited to minimumpracticable; (b) Furnaces—ferrous metalwith zinc coated casings, interllners andbaffles for gravity furnaces and with zinccoated interliners where used in forced warmair furnaces; (c) breechlngs—ferrous metalnonmetallic coated; (d) floor furnaces, spaceheaters, stoves and other similar heating de-vices, wherever practicable and where theymay replace the above; (e) vents for heatingequipment in demountable houses—ferrousmetal, nonmetallic coated.
2. Accessories
—
consisting only of: (a)
Pumps: (1) Water circulators; (2) condensa-tion;" (3) Vacuum R. L.; (b) Fans, blowersand motors—centrifugal—forced warm air
systems only. Propeller—large exhaust onlarge multi-family units; (c) Oil storage
tanks, ferrous metal—nonmetallic coated,
*lze limited to minimum necessary, for ex-
ample, not to exceed 275 gallons capacity for
plants serving less than five families; (d)
expansion tanks for hot water systems—fer-
rous metal, nonmetallic coated.
3. Distribution materials
—
consisting only
of: (a) piping—ferrous metal, uncoated; (b)
fittings—cast ferrous metal, uncoated; (c)
valves; (1) vent, (2) gate, (3) globe, (4)
cocks (all to be ferrous metal wherever prac-
ticable, yellow brass elsewhere, no plating);
(d) traps—central steam systems for multi-family dwellings only: (1) boiler return; (2)
blast: (3) bucket; (4) float and thermostatic;
(e) ducts and connections: (1) ferrous metalphosphate treated and painted or untreated;
(2) bright tin; (f) Hangers and brackets: (1)
strap iron; (2) cast iron.
4. Radiators, convectors and registers
—
only
for: (a) radiators and convectors of cast iron,
without metal enclosure; (b) valves: (1)
radiator, yellow brass unplated; (2) air valves,
yellow brass unplated; (c) traps—radiator, for
multifamily dwellings only, yellow brass un-plated; (d) registers and grilles: (1) stampedor cast ferrous metal; (2i fabricated steel
optional for large units in floor.
September 30, 1941 • DEFENSE • 11
6. Firing Equipment—only for: (a) oil, gas
and coal burners.Note.—Oil burners eliminated from eastern
seaboard area.
6. Control Equipment—only for: (a)
damper regulators; (b) thermostats; (c) pres-
sure controls; (1) Pressure reducing valves
—
multifamily only: (2) pressure stats; (3)
pressure relief valves; (d) relays.
Note.—Above items to be reduced to mini-mum and plating eliminated.
HOUSEHOLD EQUIPMENT—to include
only:
1. Ranges and refrigerators (as available
In the industry) ; 2. Incinerator hardware andfittings—ferrous metal, nonmetallic coated,multifamily dwellings only. Incineratorproper, of nonmetallic material only; 3. Ref-use receptacles— metal cans, zinc coated,
modified as per Federal specifications or
phosphate treated and painted.
LAND DEVELOPMENT ITEMS—only as
noted below:
1. Wells—Reinforcing mesli for dug well
slabs only.2. Wells Casings—Ferrous metal, zinc coated
only where local conditions make necessary.
3. Pipe lines and connections for water andgas distribution systems, as below: (a) Pipeand fittings, ferrous metal; zinc coated pipeonly in smaller sizes or where local condi-tions require; (b) Fire hydrants—Ferrousmetal with brass limited to minimum neces-sary for working parts; (c) Valves and stopcocks—Ferrous metal where possible, other-wise with brass working parts; (d) Valvesboxes, small—Cast ferrous metal.
4. Storage reservoirs
—
only for (a) reinforc-
ing steel, (b) elevated steel tanks and sup-ports.
5. Manholes—Ferrous metal covers andframes and step bars
—
for streets only.6. Water and sewage treatment plants to
include only: (a) reinforcing steel; (b) castor other ferrous pipe; (c) valves and fittings;
(d) septic tank fittings, ferrous metal non-metallic coated. Tanks, nonmetallic only.
7. Drainage and culverts to include only:(a) Reinforcing mesh, (b) Inlet frames andgratings—cast ferrous metal, (c) ferrousgaskets and bands where required for rein-forced concrete drainage pipe, (d) ferrousmetal angles for inlet throats In gutters.
8. Pumps
—
to include only: (a) Shallowand deep well, (b) pressure tank—Phosphatetreated ferrous metal painted, zinc coatedwhere local conditions require it.
9. Electrical service; extensions from dis-tribution systems—Overhead and under-ground materials of metal or with metalliccomponents (except metal light standards).
• * *
PRIORITY AID GIVEN
IN GULF HURRICANE
Producers of Manila rope throughout
the country were advised September 23
by Priorities Director Nelson that de-
mands for rope arising as a result of the
then impending Gulf Coast hurricane
had been placed in the same category as
defense orders and given full priority.
Nelson wired producers that orders upto midnight September 26, for "Manila
rope required to meet needs which mayarise in the coastal area of Texas andLouisiana by reason of the impendinghurricane shall be deemed to be defense
orders within the meaning of GeneralPreference Order M-36."
Defense housing critical areas
The following areas are those in which
defense housing priority action as an-
nounced September 19 can be taken:
Alabama—Anniston, Birmingham, Chllders-burg-Sylcauga-Talladega. Gadsden, Mobile,Montgomery, Muscle Shoals, Phenix City,
Selma; Arizona—Litchfield Park, Tucson; Ar-kansas—Hope, Little Rock-Jacksonville, Ft.
Smith.California—Los Angeles, Bakersfleld, Fresno,
Monterey, Oceanside-Fall Brook, San Diego,San Francisco and East Bay Cities, San LuisObispo, San Miguel-Paso Robles, Stockton,Vallejo; Colorado—Denver.Connecticut—Bantam, Bridgeport, Hartford,
Merlden, Middletown. New Britain-Bristol,New Haven, New London, Stamford, Water-bury; Delaware—Wilmington; District of Co-lum bia—Washington
.
Florida—Cocoa, Jacksonville. Key West, OpaLocka, Orlando, Panama City, Pensacola,Starke, Tallahassee, Tampa, Valpariso, WestPalm Beach.
Georgia—Albany, Atlanta, Augusta, Colum-bus, HinesviUe, Mat;on, Roseville, Savannah,Toccoa, Valdosta; Idaho—Boise
Illinois—Alton. Chicago-Waukegan, Daven-port-Rock Island, Joliet-Wilmington, Rantoul,Rockford. Savanna; Indiana— Anderson,Charleston-Jefierson-Louisville, Ky., Conners-ville. Ft. Wayne, Gary-Hammond, Indianap-olis. La Fayette, La Porte-Kingsbury, Madison,South Bend, Evansville. Ind.-Henderson, Ky.Iowa—Burlington, Council Bluffs, Des
Moines; Kansas—junction City, KansasCity, Parsons, Wichita; Kentucky—Louis-ville-Charlestown.
Louisiana—Alexandria, Baton Rouge, LakeCharles, Leesville-DeRidder, New Orleans,Shreveport; Maine—Bangor, Bath, Portland;Maryland—Aberdeen, Annapolis, Baltimore,Eikton. Hagerstown.Massachusetts—Boston, Falmouth, Green-
field, Pittsfield, Springfield-Holyoke, Wor-cester; Michigan—Bay City-Saginaw, BattleCreek, Detroit-Ypsilanti, Lansing, Midland,Muskegon, Pontiac; Minnesota—Minneapolis-St. Paul.
Mississippi—Biloxi, Columbus, Greenville,Hattiesburg, Jackson, Meridian, Pascagoula;Missouri—Joplin-Neosho, St. Louis, Spring-field, Waynesville-Rolla; Nebraska—Omaha-Council Bluffs.
Nevada—H awthorne. Las Vegas; NewHampshire—Manchester, Portsmouth: NewJersey—Bayonne-Staten Island, BoundBrook-Perth Amboy, Dover, Newark-Kearny-Elizabeth, New Brunswick, Patterson-Passaic,Trenton; JVeu> Mexico—Gallup.New York—Bethpage-Farmingdale, Bing-
hamton, Brooklyn-Long Island City, Buffalo-Niagara Falls, Dunkirk, Elmlra, Greenport,Massena, Poughkeepsie, Rochester, Schenec-tady, Sidney, Syracuse, Troy-Watervllet-Al-bany, Utlca-Rome, Watertown; North Caro-lina—Charlotte, Fayetteville, Jacksonvllle-Morehead City, New Bern, Wilmington.Ohio—Akron, Canton-Massilon-Alliance,
Cincinnati, Cleveland. Columbus, Dayton,Hamilton-Middletown, Lorain-Elyria, Mans-field, Ravenna-Warren, Sandusky, Sidney,Springfield, Steubenville, Toledo, Youngs-town-Sharon, Pa.; Oklahoma—Enid, Lawton,Oklahoma City, Tulsa: Oregon—Astoria, Her-miston, Pendleton, Portland.Pennsylvania—Allentown-Bethlehem-Phil-
ipsburg, Beaver County, Berwick, Coatesvllle,Corry, Ellwood City, Erie, Harrisburg-Middle-town, Johnstown, Latrobe-Greensburg, Mo-nessen - Charleroi, Norristown - Bridgeport,Philadelphla-Camden-Chester, Pittsburgh-New Kingston, Pottstown, Sharon, Tltusvllle,
Warren-Irvine, Willlamsport, York.Rhode Island—Newport, Quonset Point;
South Carolina—Charleston, Columbia, Spar-tanburg, Sumter; Tennessee—Bristol-Kings-port, Chattanooga-Cleveland, Knoxvllle-Alcoa,Memphls-Mllllngton, Milan-Humboldt-Jack-son, Nashville, Tullahoma.
Texas—Abilene, Beaumont-Orange-Port Ar-thur. Brackettville, Brady, Brownwood, CorpusChrlsti, Cuero, Dallas-Fort Worth, Denison-Sherman. Dumas, El Paso, Frceport, Galves-ton, Harllngen, Houston, Lubock, Midland,Mineral Wells, Palacios, San Angelo, San An-tonio, Texarkana, Vernon, Victoria, WichitaFalls.
Utah—Ogden, Salt Lake City; Vermont—Springfield-Windsor; Virginia— Dahlgren,Newport News, Norfolk-Portsmouth, Peters-burg-Hopewell, Pulaski-Dublin-Radford.Washington—Bremerton, Everett, Keyport,
Longview-Kelso, Seattle, Spokane, Tacoma;West Virginia— Charlestown, Morgantown;Wisconsin—Belolt, Green Bay, Madison, Man-itowoc. Milwaukee. Oshkosh, Racine-Kenosha.
Alaska—Fairbanks, Anchorage. Ketchikan,Kodiak, Sitka; Hawaii— Honolulu; VirginIslands— Charlotte-Amolie; Puerto Rico—Aquadilla, San Juan.
• * *
Action restricts use of chlorine
for bleaching paper
Reduction of the use of chlorine in
the manufacture of pulp and paper has
been ordered in a directive issued by the
Materials Branch, OPM. Chlorine is used
as a bleaching agent in the production of
paper.
The directive, effective September 22,
orders pulp and paper manufacturers to
limit consumption of chlorine in bleach-
ing rag stock (paper stock made fromrags and clippings from textile mills) to
80 percent of the amount used in the first
half of 1941 and to 70 percent in the
manufacture of semibleached grades.
Use of chlorine for these purposes wasreduced to 90 percent of average con-
sumption by voluntary action of manu-facturers several months ago.
Does not affect processing
The directive does not apply to certain
types of pulps in which chlorine is a
processing rather than a bleaching
agent.
Supplies of chlorine are being con-
served to meet the requirements for
national defense and essential civilian
needs. Principal military uses for
chlorine are in bleaching cotton linters
for smokeless powder and in the chemi-
cal warfare area. Essential civilian
needs include water purification, sew-
age treatment, refrigerant gases, prepa-
ration of products for medicinal use, andthe preservation and processing of food
products.
Restrictions in the amount of chlorine
used for bleaching affects the color of
writing papers, gloss and other papers
for magazines, and high-grade paper for
books.
12 • DEFENSE • September 30, 1941
PRICE ADMINISTRATION . . .
Ceiling placed on acetic acid bulk sales;
maximum prices near third-quarter level
Ceiling prices covering bulk sales of
acetic acid, one of the most widely used
products in the field of industrial sol-
vents, are established at about third-
quarter levels in Price Schedule No. 31
announced September 25 by OPA Ad-
ministrator Henderson.
The schedule will go into effect on
September 29, 1941.
The latest action follows by 10 days
the issuance of a maximum price sched-
ule for ethyl alcohol, another leading
solvent. In addition, Mr. Henderson
disclosed that schedules fixing the top
prices that may be charged for wood
alcohols and other industrial solvents
were in course of preparation and would
be announced in the near future.
How prices have risen
The defense program and a high level
of civilian activity have combined to
create a substantially increased demandfor acetic acid. Tank-car price of the
synthetic product rose from about 5 cents
a pound in the second quarter of 1941
to 6 cents in the third quarter and a
further increase to 6'/2 cents a pound
has been announced for the final quarter.
Bulk price of the natural product madefrom wood held at around 5 cents a
pound during the second quarter and
part of the third quarter, then rose
sharply to 7'/2 cents a pound and has
continued to advance, with some sales
reported at 10 cents a pound and higher.
Exploration of the situation by OPA,which included a conference on Septem-
ber 12 with representatives of the natu-
ral and synthetic acetic acid trade, has
disclosed no justifiable reasons whyacetic acid prices should be allowed to
advance beyond third-quarter levels.
Maximum prices established in the
schedule are 7 'A cents a pound for acetic
acid of wood origin and 6'/4 cents a
pound for the synthetic type when sold
in tank cars. These are delivered prices
and apply to "glacial" acetic acid, that
is. acid testing 99.5 percent or ever, andto weaker acetic acid of commercialgrade in terms of 100 percent acid con-
tent.
Freight in excess of 32 cents per 100
pounds may be charged to the buyer in
the case of acid of wood origin.
P. o. b. prices ranging from 3.18 cents
to 8.70 cents a pound are stipulated for
various concentrations of technical and
pure acetic acid, whether wood or syn-
thetic, when sold in barrels or drums in
carload quantities. For acid of U. S.
Pharmacopeia grade or chemically pure
acid, maximum prices of 10 'A and 13 V2
cents a pound, respectively, may be
charged.
Differentials are established for carload
sales in carboys or cases and for less-
than-carload sales of 3,000 pounds or
more in barrels, drums, carboys, or
cases.
By limiting application of ceiling prices
to sales of 3,000 pounds or more, the
schedule will affect only manufacturers
of acetic acid or very large jobbers. It
is expected that prices for smaller lots
sold by jobbers and dealers will reflect
only the normal margins of mark-up for
their services. Should dealer prices get
out of hand, Mr. Henderson stated, the
schedule may be amended to cover
smaller quantity transactions.
Used for hundreds of products
Acetic acid (CH-COOH) is a colorless
chemical compound used in the manu-facture of hundreds of industri-' prod-
ucts, including rayon yarn, photographic
film, plastics, transparent wrapping ma-terials, lacquers, varnishes and white
lead. It is also used in medicinal drugs.
Synthetic acetic acid is derived princi-
pally from carbide, while the "natural"
type is made by a wood distillation
process in the course of which wood al-
cohol and charcoal are also recovered.
Production of the synthetic type Ls con-
fined to a few large chemical companies,
which consume a great part of their out-
put in the manufacture of other products.
It is estimated that of a total 1941 output
of 165,000,000 pounds of synthetic acid,
only about 45,000,000 pounds will have
been sold in the open market by the
producers.
Natural type made by more companies
Natural acetic acid is made by a large
number of companies. Production for
1941 is estimated at 55,000,000 pounds,
most of which will have been offered for
sale.
Some of the large wood acetic acid
producers can compete effectively with
the synthetic manufacturers, but there
are a number of small makers whose costs
are higher than the bulk of the industry.
Recognition of the problems of these
small businesses is reflected in the price
differential established by OPA between
the synthetic and natural types of acid.
The new schedule requires sellers of
acetic acid to submit to OPA monthly
sworn statements that all sales of 3,000
pounds or more during the preceding
month were made in compliance with the
maximum prices.
• * *
Paperboard ceiling to
be effective October 1
Maximum prices now prevailing under
voluntary agreements covering all grades
of paperboard sold by leading producers
east of the Rocky Mountains will be
incorporated shortly into a formal price
schedule, OPA Administrator Henderson
announced September 23.
The schedule, which is nearing com-pletion, will go into effect on October
1, 1941, when the present voluntary
agreements will expire.
Ceiling prices for the three base grades
will be the same as those specified in
the voluntary agreements, i. e., $45 a
ton for chipboard, $60 a ton for single
manila lined board, and $75 a ton for
white patent coated news board. Dif-
ferentials, up and down, in line with
the present agreements will be estab-
lished for the other types, depending
upon weight, grade, and quantity.
All types of paperboard used in the
manufacture of set-up paper boxes, fold-
ing cartons, and shipping containers will
be covered. Top prices for the shipping
container grades will be stated in dol-
lars per 1,000 square feet, rather than
in dollars per ton, as are the grades
used in set-up paper boxes and folding
cartons.
Issuance of the price schedule for
paperboard sold east of the Rockies will
follow recent announcement of maxi-
mum prices upon the principal grades
of wastepaper, the main source of raw
material for the production of paper-
board. The wastepaper schedule also
will go into effect on October 1.
OPA has no present intention of es-
tablishing ceiling prices for board sold
west of the Rockies, since the voluntary
agreements with West Coast manufac-
turers do not expire until December 31,
and have been operating satisfactorily.
September 30, 1941 • DEFENSE • 13
Some wholesale prices rising faster than
in World War I, consumers warnedSome wholesale prices are rising more
rapidly in this defense production period
than they did in the first World War,according to Miss Harriet Elliott, Asso-
ciate Administrator, OPA, in charge of
the Consumer Division. In an address
on the subject, "The Consumer Faces In-
flation." before the Pennsylvania State
Defense Council conference on consumerand nutrition problems, held at Harris-
burg, Pa., Miss Elliott compared the
movement of wholesale prices in the first
2 years of the last war and the first 2
years of the current war.
"In the first 2 years of the first WorldWar," said Miss Elliott, "food prices went
up 18.4 percent. In the first 2 years of
this war food prices have gone up 29
percent.
"Farm products went up 12.6 percent
in the first 2 years of the last war. This
time they have gone up 43.1 percent.
"Textile prices went up 43.6 percent in
that period during the last war. This
time they have gone up 28.6 percent.
"Building materials went up during the
first 2 years of the first World War 27.2
percent. This time they have gone up
16.7 percent."
Further excerpts from Miss Elliott's
talk follow:
Now let me tell you about some specific
things, things that consumers buy, things
that bring home in terms of our daily
experience these big and impressive per-
centages.
Take overalls. The wholesale price of
overalls last month was 35 percent higher
than it was in August 1939. Work trou-
sers at wholesale were up 37 percent.
Wool rugs were up 23 percent. Sheets,
up 42 percent. Butter, up 48 percent.
Canned pink salmon, up 52 percent.
Dried beans, up 76 percent.
Buyers have not felt full impact
The full impact of these price increases
hasn't yet reached you as a buyer at re-
tail. But they will reach you and noth-
ing that can be done now can prevent
your cost of living rising in the next few
months, for the retailer who has paid
these higher wholesale prices cannot sell
at his old prices and stay in business.
Consumers must ward off inflation
The most serious problem facing con-
sumers today, according to Miss Elliott,
is the threat of uncontrolled inflation.
"Upon the consumer," said Miss Elliott,
"falls the responsibility for warding off
inflation and if he fails, it will be he who
will reap the whirlwind of the disaster
that will follow."
"There Is a hopeful side to this pic-
ture," continued Miss Elliott, "The hopelies in the fact that inflation can be con-trolled. Prices are not, like the tides of
the ocean, controlled by some mysterious,
economic moon. They are controlled bymen acting in their own interests and
often acting without knowledge of the
consequences of their price quotations.
"It is necessary to substitute in a warproduction economy a control of prices
to replace the controls of free compe-tition that war production, by its very
nature, destroys. In a democracy, that
control must be exercised by the Govern-ment on behalf of the welfare of the
Nation as a whole. Price control is not
an additional or new element in our
economy. It is a necessary substitute
for the active competition that has been
temporarily lost."
Flow of "remote" iron
encouraged by special
An experimental program designed to
bring quick delivery to steel mills andfoundries of iron and steel scrap scat-
tered throughout areas of the UnitedStates remote from consuming centers
was announced September 26 by OPA Ad-ministrator Henderson.
Trade estimates of the quantities of
"remote scrap" in Florida and the eight
Western States affected by the programrange from 500,000 to 2,500,000 tons. It
is considered highly important to bring
as much of this tonnage as possible to
consuming points before winter weatherin the West makes its collection difficult.
The program allows considerably higher
shipping point prices for "remote scrap"
and permits consumers to pay greater
transportation charges to bring "remotescrap" to their plants.
Both of these measures are embodiedin an amendment to the iron and steel
scrap schedule. This amendment will
expire on December 31, 1941.
Maximum shipping point price, $12
The amendment sets a maximum ship-
ping point price of $12.00 a ton for No. 2
heavy melting scrap in Florida and all
States west of the Mississippi River, ex-
cepting California, Oregon, and Wash-ington. Price differentials above and be-
low $12.00 for other grades of scrap will
be those already established for St. Louis.
The new shipping point prices are con-
siderably higher than those set in the
present schedule for scrap from the nine
States. Hov/ever, except for a few iso-
lated cases, existing shipping point prices
in other States west of the Mississippi
are not affected.
A separate section defines as "remote
scrap" all kinds and grades of scrap,
other than railroad scrap, having a ship-
ping point and point of origin within
and steel scrap
allowances
Florida, Oklahoma, Texas, Arizona, NewMexico, Nevada, Wyoming, Idaho, andMontana. It is stipulated that the max-imum price of any grade of "remote
scrap" delivered to the plant of a con-
sumer may be $5.00 a ton above the top
delivered price which he has heretofore
been permitted to pay.
Can absorb more of shipping costs
Heretofore, the maximum delivered
price of scrap from the nine States
affected has been the shipping point price
fixed in the schedule, plus transportation
costs to the nearest consuming plant,
plus a further $1 a ton.
By increasing the extra allowance to
$5 in the case of "remote scrap," OPApermits consuming plants to absorb $4 a
ton more in transportation costs than the
highest such charge allowed heretofore.
In special situations, according to the
amendment, consumers may pay even
more than the $5 extra freight allowance,
provided they apply for and obtain per-
mission to do so in advance from the
Office of Price Administration.
All deliveries against contracts madeunder the amendment must be completed
by December 31, 1941. Purchasers of
"remote scrap" are required to file, under
oath, a detailed report of each trans-
action within 10 days after purchase.
Further, consumers are obliged to file
with OPA certified copies of their bills of
lading immediately upon delivery of any"remote scrap."
Nothing in the amendment affects
shipping point prices or delivered prices
east of the Mississippi River, excepting
in Southern Florida. Sellers in certain
of the Western States not included in the
"remote scrap" areas still will be able to
dispose of their scrap in nearby markets
within existing ceiling prices.
14 • DEFENSE • September 30, 1941
Consumers protest higher prices for bread;
war not largest factor, says Miss Elliott
Letters from consumers throughout the
United States protesting advances in re-
tail bread prices have been • increasing
continually, Harriet Elliott, Associate
OPA Administrator, in charge of the
Consumer Division, announced last week.
As many complaints were received by
the Consumer Division during the first 2
weeks of September as during the entire
7-month period between last January andmid-July.
Retail bread prices advanced from 7.9
cents in August 1939 to 8.3 cents in
August 1941 for the average 1-pound loaf.
To a large extent this advance is theresult of an increase in ingredient costs
averaging roughly >/2 cent and, in somelocalities, a rise in wages for labor overthe level that prevailed in August 1939
just previous to the start of the war.The largest single factor in increasing
bread-ingredient costs has been higherprices for flour.
The price of flour
This rise in flour prices, Miss Elliott
pointed out, has not been caused by thewar or the defense program. It is large-
ly the result, she said, of legislation en-acted by Congress last spring, providingfor loans to farmers on wheat, corn, cot-ton, tobacco, and rice to establish 85 per-cent of parity prices. (Parity is the es-
timated price at which a farmer would
have to sell a bushel of wheat or a bale
of cotton, for instance, in order to buyas much industrial goods and services
with that bushel or bale as he did in
1909-14.) In the case of wheat, the law
provided for mandatory price-supporting
loans to cooperating farmers equal to anaverage of 98 cents a bushel, comparedwith last year's loan rate of 64 cents.
Reflecting this higher loan rate, the
price of flour rose 5 percent at retail
between April and August and 16 percent
at wholesale, although flour prices usually
drop at this time of the year. Duringthe same period last year, for instance,
the retail price of flour went down 8
percent, and the wholesale price de-
clined 24.6 percent.
Home-made bread cheaper
Consumers should remember that if
they have the time and are willing to
take the trouble, they can make bread
at home that is better for them andcheaper than the usual store bread, Miss
Elliott pointed out.
She made the following comparisonbetween the cost of ingredients and the
nutritive value of the usual 1-poundloaf of store bread and home-bakedbread. The home-baked bread figures
are based on two different recipes pre-
pared by the Bureau of Home Economics.The first is made with milk, the secondwith water.
Scrap schedule changes affect
Cincinnati, log roads, minesAmendments to bring about a parity
among consumers who purchase iron andsteel scrap in the Cincinnati market, andto create an incentive for the sale ofscrap rail and rerolling rail by mines andlogging roads, have been made to the ironand steel scrap schedule, OPA announcedSeptember 23.
The first change provides a shippingpoint price within the Cincinnati basingpoint of 80 cents a ton below the basingprice for all grades of scrap excepting sixcasting grades. This revision was madebecause of the great variation in switch-ing charges within the Cincinnati basingpoint. It does not detract from the ad-vantages obtained by local steel millsfrom the previous amendment establish-ing Cincinnati as a basing point, but doesremove certain inequalities that resulted
to those consumers with plants outside
the basing point who have historically
purchased scrap in the Cincinnati mar-ket.
The other revision provides an attrac-
tive price at which mines and logging
camps can sell scrap rail and rails for
rerolling. It is stipulated that the maxi-mum shipping point prices for this type of
scrap shall be the ceiling prices set in
the schedule (which apply specifically to
scrap of railroad origin), "except thatthe maximum shipping point price needin no case be less than $13.50 per gross
ton for scrap rail and $15 per gross tonfor rails for rerolling." In addition, theformalities generally required from rail-
roads upon the sale of scrap rail or re-
rolling rail are eliminated when the seller
Is a mine or logging road.
Ingredients (in ounces)
September 30, 1941 • DEFENSE • 15
News for Retailers
Merchants' Stake in Waste-Paper
Drive Explained
Triple-edged action to increase sup-
plies and head off price rises of the pack-
aging materials that merchants buy in
considerable quantities is being taken by
the Office of Price Administration.
A price schedule effective October 1
has been provided to prevent price rises
of waste paper, basic raw material in
the manufacture of containers; ceiling
prices, to be effective October 1 for paper-
board, are being prepared; and a Nation-
wide campaign to increase the supply of
waste paper is now under way.
It is in the last phase of the program
that retailers can do the most to help
an increase in paperboard production,
OPA officials say, since the waste paper
that accumulates in retail establishments
Is large in amount and high in quality.
In the past many retailers have col-
lected waste paper and sold it to scrap
dealers. These merchants have been
one of the best sources of corrugated
containers, and the better grades of
wrapping paper for the scrap trade.
Others, however, have not provided for
collection of th&'r waste paper and have
burned it or thrown it away.
In light of the present shortness in
supply, however, it is hoped that this
wasteful practice will be reconsidered.
The defense effort has placed a double
burden on the supply of raw materials
for paper-container manufacture. De-
mand has increased at \he same time
that a large part of the supply has
diminished.
The imports of wood pulp which for-
merly provided a substantial part of the
raw material for paperboard have been
cut off by the war.
Increased quantities of paper con-
tainers are now needed domestically for
both civilian and military requirements,
while large amounts of waterproof
paper boxes are required to ship Lend-
Lease supplies to Great Britain and other
countries.
Defense now takes one-fourth of the
more than 8,000,000 tons of paperboard
which it is estimated will be manufac-tured in the United States this year.
By the end of 1942 it will be utilizing upto two-thirds of an estimated 9,000,000
tons.
A joint campaign by the Office of Pro-
duction Management and OPA to save
part of the estimated 50 percent of the
Nation's production of paper that is nowburned up or thrown away, has been in-
stituted in 33 of the principal cities east
of the Rocky Mountains. This is being
supplemented by the activities of the
Boy Scouts, who will carry on waste
paper collection drives in every commu-nity that has a scout troop. Since re-
tailers are one of the large groups that
will benefit from an increased supply of
cartons and paper boxes, it is expected
that they will be active in the local col-
lection campaigns.
Retailers Promote Defense Stamp Sale
Treasury officials look forward to fol-
lowing up the successful "Retailers For
Defense Week" with programs for retailer
participation in the sale of Defense Sav-
ings Bonds and Stamps at Thanksgiving
and Christmas.
A large poster entitled, "Let's BeThankful For America", will be distrib-
uted to 1,000,000 merchants throughout
the country as a part of the extensive
Thanksgiving program.
In connection with the Christmas cam-paign, a "Retailers for Defense" card will
be issued giving storekeepers the oppor-
tunity to participate in a program of:
(1) The payment of all Christmas bo-
nuses to employees in defense savings
bonds and stamps; (2) the offering of
facilities to their employees for the buy-
ing of defense bonds and stamps, and (3)
the promotion of the sale of stamps to
the public.
A Christmas promotion for merchants
will urge them to further the purchase of
bonds and stamps by their customers as
Christmas gifts.
In addition a 4- by 6-inch window de-
calcomania transfer with the slogan
"Buy Defense Stamps Here" will be sent
to retailers.
Complete figures on the recent sales
of stamps are not yet available, but pre-
liminary figures from two sections indi-
cate extensive gains as a result of the
"Retailers for Defense Week" in New
York City as follows: Third week In Au-gust, $69,700; fourth week in August,
$87,500; first week in September,
$113,100; second week in September,
$137,700.
In Canton, Ohio, sales of stampsjumped from $1,000 a week to $16,000.
OPA Studying Work Clothing Prices
Chambray, cotton coverts, and denims,
widely used fabrics for work clothing are
now being added to the Office of Price
Administration cotton textile price sched-
ule. Inclusion of these three construc-
tions is expected to head off increases in
the price of work clothing attributable to
advances in the price of fabric.
After the establishment of the ceiling
on standard print cloth and other higher
grade goods earlier this year, fabrics used
in work clothes moved into positions con-
siderably "out of line" in relation to the
ceiling.
Under the revised schedule, these con-
structions will be brought into a normalrelation to standard print cloth and tied
to the market price of "spot" raw cotton
on 10 markets.
The new formula provides for changes,
upward or downward, in ceiling prices for
every change of 43 points in the price of
cotton.
Other new constructions now being
added to the schedule £re: poplins,
piques, drills, twills, jeans and additional
constructions of carded broadcloth.
With these additions, four-fifths of all
cotton textile grey goods will be under
price ceilings. Constructions still outside
the schedule are canvas and duck. Therehas been a strong demand for these two
fabrics as the result of heavy Governmentpurchasing, but their prices so far have
been in proportion to ceiling prices.
Advances in the cost of work clothing
have been particularly marked in the last
2 years. Bureau of Labor Statistics fig-
ures indicate that from August 1939 to
August 1941 the wholesale price of work
trousers has increased 37 percent, while
the wholesale price of overalls has gone
up 35 percent.
Textile officials of the Office of Price
Administration announce that they are
now making a careful study of the work
clothing situation with a view to later
action as needed.
Other finished goods now being studied
for the possibility of inclusion under a
price ceiling are pillow cases, sheets, and
towels.
16 • DEFENSE • September 30, 1941
HOUSING . .
.
There'll be plenty of new homes to build,
says Palmer, but mostly for defense
There will be plenty of new homesto build, Defense Housing Coordinator
Palmer said in a radio interview Septem-
ber 29, but practically all of the con-
struction will be for defense workers.
He was explaining the effect of the newpriority action for privately built defense
housing, In the third of a series of Mon-day evening "OEM Defense Reports" be-
ing delivered on time donated by the
Firestone Tire and Rubber Co. The in-
terview follows in part:
Q. Mr. Palmer, I recall something that
Mr. Nelson said—to the effect that pri-
orities meant that a lot of us would have
to go without. Does this new housing
priority ruling mean that we are going to
go without new homes?
A. No. We are going to have plenty
of new homes—and we are going to go
right ahead remodeling the old ones as
well. But, from now on, practically all
of that home construction will be for
defense workers—to furnish shelter for
the men and women employed in our
defense.
Scarcity is the restrictive factor
Q. By that'you mean from now on the
Government will prevent the use of cer-
tain materials needed by home build-
ers—things like copper and steel andzinc?
A. Not at all. The scarcity of those
materials will restrict their use in homebuilding. The Government's job is sim-
ply to control that scarcity—see to it
that those materials go to the places
where they are urgently needed—de-
fense areas.
Q. How will this control be exercised,
Mr. Palmer?
A. By means of a sensible use of the
priorities we have established on cer-
tain critical materials.
Q. I see.
A. In other words, If John Jones
wants to build a summer home in the
woods and Bill Brown intends to build
a house alongside an airplane plant to
rent to the family of a defense worker,
Bill Brown gets his materials first, andJohn Jones must wait.
Q. I think we can all see the reason
for that, Mr. Palmer.
A. It is just—as Mr. Nelson said
—
making first things come first. Plants
making tanks and guns cannot be oper-
ated without workers and workers musthave homes.
Q. But take the case of a friend of
mine—he's been putting up small homesfor sale. He seems to feel that the Gov-ernment has been inconsistent in this
matter of housing.
A. In what way?
DEFENSE HOMES COMPLETEDNOW TOTAL 36,560
Charles P. Palmer, Coordinator of De-
fense Housing, announced September 25
that 1,782 new publicly financed homesfor families of defense workers and en-
listed personnel had been completed dur-
ing the week ending September 20,
making a total of 36,560 now ready for
occupancy.
With 1,945 homes going into construc-
tion during the week, the total of pub-
licly financed homes now being built or
completed reached 90,498.
Federal funds have already been al-
lotted for 118,935 defense homes.
FHA-inspected privately financed
homes started during the week totaled
982. Since January 1941, 161,429 such
homes have gone into construction.
The total number of dormitory units
for occupancy by single defense workers
has reached 5,206.
Q. Well, he claims that a short while
ago, Washington authorities were en-
couraging home building—t h r o u g hfinancing aid and so on—and induced
a lot of people to become builders. Andnow, the Government is trying to close
them up. Is that true, Mr. Palmer?
A. No; our Government isn't trying to
close up the builder, even during the
emergency. What we are doing is di-
verting their efforts to where they're
most needed. In fact, what we are really
doing is finding the builder's customers
for him.
Q. Does this make it impossible, Mr.
Palmer, for people outside defense areas
to build homes?
A. Not impossible—there is no law that
says that John Jones can't buy copper
gutters and galvanized Iron and brass
hardware for that summer bungalow, but
they are going to be very hard to find.
Q. But, isn't It true, Mr. Palmer, that
a home can't be built without such ma-terials?
A. In a good many cases, substitutes
can be found. Wooden gutters for
example were used in this country for
generations. In Eome materials like cop-
per wiring where no substitute is avail-
able, allowances will be more generous.
But it will be defense homes first, in any
case.
Q. Another thing, Mr. Palmer—sup-
pose this builder friend of mine decides
to follow the Government's lead andbuild homes for defense workers. Wheredoes he find the information?
A. He simply goes to his local lending
Institution—the place where he always
does business. He will find there com-plete lists of critical materials. Also, a
list of defense areas where homes are
needed.
Must apply to get rating
Q. Will he have to make application
for preference rating, Mr. Palmer?
A. Yes, he will find application forms
there, too. We are using FHA field of-
fices to speed the work along although,
of course, this plan is completely divorced
from FHA financing. Our Office of De-
fense Housing Coordination passes onall applications.
Q. How many of these defense homesdo you figure, Mr. Palmer, will be needed?
300,000 houses needed quickly
A. We will be in need of 300,000 houses
in defense areas in a hurry. The Gov-ernment plans to build 100,000 of those
itself in places where private industry
would find it impracticable to build.
Q, That leaves 200,000 houses for pri-
vate builders to put up. That should
keep a good many workers busy at their
trades, Mr. Palmer.
A. We are seeing to that. We have a
twofold job on hand here. One is to see
that the building industry—the second
largest industry in the country—is kept
going during this emergency. Carpen-
ters, bricklayers, plumbers, electricians
—
a whole army of workers, must be kept
In their jobs. But our other objective
is even more important—to see to it that
their fellow - workers — the men and
women who are turning out the guns and
planes to defend this democracy of ours—your home and mine—will themselves
have decent homes worth living in and
worth defending.
September 30, 1941 • DEFENSE • 17
AGRICULTURE (.Information furnished through Office of Agricultural Defense Relations,
V. S. Department of Agriculture)
Wickard urges consumers' cooperation
in boosting agricultural production
Secretary of Agriculture Wickard last
week described American consumers as
"the most fortunate in the world" as he
gave assurance that the Nation's farms
would "produce abundantly for our ownpeople and other peoples resisting
Naziism."
The assurance was given in addresses
before conferences of farm leaders andGovernment agricultural workers in Chi-
cago and New York. The conferences
were the second and third of four re-
gional meetings called to plan for 1942
farm production. The first conference
was held in Salt Lake City. The fourth
is being held in Memphis, Tenn., Sep-
tember 29 and 30.
Excerpts from Mr. Wickard's NewYork address follow: Agriculture's part
in this defense program is vital. Thefarmer is worker and manager in the
basic defense industry. Without his pro-
duction, there can be no other produc-
tion. Enough food must be supplied
American workmen and soldiers and sail-
ors and American homemakers and chil-
dren. Over and above that, there mustbe adequate food for the fighters andthe workmen and the civilian population
of Britain, whose energy and morale are
the guarantee of continued resistance to
Hitler.
American consumers the most fortunate
American consumers are the most for-
tunate in the world. Almost everywhere
else on the globe consumers are going
on short rations. In many of the wartorn countries we are told, malnutrition,
tuberculosis, and deficiency diseases are
on the increase because of the shortage
of food. That will not happen in Amer-ica. Here we have the facilities—andwe intend to use them—to produce
abundantly for our own people and other
peoples resisting Naziism.
The best guarantee that consumershere will have adequate supplies of farmproducts is to pay a fair return for the
work and investment of farmers. Whenprices get too low, then some of the farm-ers have to quit, production falls off, andprices eventually are forced to levels that
even the producer may admit are un-reasonably high.
Food and clothing prices have gone upin recent months. The rise has been
accompanied by a clamor from several
directions. But let me point out three
things:
Number one—The rise in the prices of
farm products may seem high in per-
centage terms. But that's because farm
prices for so long have been bargain
prices. Farm prices started to rise from
a very low point.
Number two—The rise in retail prices
of food and clothing is not entirely due
to the rise in farm prices. For example,
a consumer may be paying 25 cents more
for a cotton shirt than a year ago, but
less than a nickel goes to the cotton
grower. The farmer is getting only
about one-fourth of a cent more for the
wheat that goes Into a pound loaf of
bread than he got a year ago. Any in-
crease in price of a loaf of bread that
amounts to more than one-fourth of acent Is due to more money paid to some-one besides the wheat farmer.
Number three—While food prices at re-
tail have gone up, and remember the
farmer gets only a part of the price rise,
they have not gone up nearly so muchas consumer income.
Taking the latest figures we have, in
mid-summer of this year, and comparing
them with 1929, which looms as the year
of greatest prosperity for the Nation as
a whole—food prices this summer have
been only 80 percent as high as in 1929,
while the income of people off the farm
was 114 percent of the 1929 figure.
Farm products stand
Lend-Lease activities,
M. Clifford Townsend, director, Office
of Agricultural Defense Relations, De-
partment of Agriculture, last week told
the American Farm Bureau's Northeast
Training School that this Nation has
"resolved that the United States shall be
not only the arsenal but the larder for
the campaign against Naziism." Other
excerpts from Mr. Townsend's speech at
Jackson's Mill, W. Va., on September 26,
follow:
In the feeding of the nations resisting
aggression, American farmers already
are playing a vital role but they are
destined for even greater contributions
in the months ahead. The importance
of food in winning this war is clearly
revealed in the Lend-Lease figures sent
to the Congress by the President. In the
report on Lend-Lease activities, ship-
ments of food stood out like a beacon light.
In the newest Lend-Lease bill, the amountallocated for agricultural products is
greater than for any other single purpose.
We have already promised to send the
British alone during 1942 dairy products
that will require between i\'z and 5 billion
pounds of milk; about a half billion dozen
eggs; 18 million pounds of poultry meat
—
mostly chicken; and almost a billion anda half pounds of pork and lard. We have
agreed to send almost a million and a
quarter tons of fruit and more than 2'/2
million cases of canned vegetables. There
out among
says Townsendare other commodities included in our
fcod commitments to the British, but
these are the principal items.
For the first time in the history of agri-
culture in this country, production goals
ior all essential farm commodities have
been established.
Under ordinary circumstances, these
production goals would be no great strain
en American agriculture. But these are
no ordinary times. It is going to take
all of the well-known ingenuity of the
American farmer, plus plenty of hard
work, to deliver on our production goals,
particularly on the products we get from
milk.
Must surmount obstacles
This is true because it is axiomatic
that in a war economy we run short or
run out of raw materials, labor, and trans-
portation. This one is no exception.
Already severe shortages have developed
in most metals, in many chemicals, in
paper and paper products, and in nu-
merous other essential materials. In-
creasing difficulty in obtaining nonmili-
tary supplies, labor, and transportation
can be anticipated as the tempo of de-
fense production increases. Therefore,
if the food production goals so vital to
the success of the defense program are
to be attained, farmers must be prepared
to reach them in spite of these and manyother obstacles which may arise.
18 • DEFENSE • September 30, 1941
TRANSPORTATION . .
.
Refrigerated warehouse space gains
221,000,000 cubic feet in 20 years
Harry D. Crooks, consultant on ware-
housing, Transportation Division, OEM,reports receipt from the Department of
Agriculture of the preliminary report on
the survey of refrigerated warehouse
space. This survey is very comprehensive,
including not only public warehouses, but
privately operated space such as is lo-
cated in meat packing establishments.
Total 765,000,000 cubic feet
The gross space in all cold storage
warehouses and meat packing plants in
mid-June of this year totalled 765 million
cubic feet. This represents an expansion
of 221 million cubic feet in the last 20
years. The Industry shows a steady
growth in this period with the exception
of the years 1933-35 when some aban-
donment of obsolete warehouse space
occurred. The increase in cold storage
space by types of facility is as follows:
Millioncubic feet
Public cold storage 176Private cold storage 28Private cold storage doing some public
business 9
Meat packing establishments 26Meat packing establishments doing some
public cold storage business "18
Total increase (1921-1941) 2211 Decrease.
Space occupancy as of mid-June this
year varied considerably by type of plant;
private cold storages, where cooler space
predominates, include a large number of
one-crop houses, such as those devotedto storing fresh fruits. At the date of
the survey private plant space was only
27 y2 percent occupied. On the other
hand, meat-packing plants, in which all
working space is included, were operat-
ing at about 94 V2 percent of capacity.
Emergency space available also
In addition to the refrigerated ware-house space of approximately 764 '/2 mil-lion cubic feet, there were reported ap-proximately 20 million cubic feet of spacein use as storage exclusively for ice andabout 13 million cubic feet of similar
apace in plants not now in use, but whichcould be placed in usable condition im-mediately should the need arise. Mostof this additional space—33 million cubicfeet—could be used for food storage inan emergency.
The report shows an occupancy of 53.1
percent in the country as a whole as of
June 16, 1941. The monthly report as of
June 30, 1931, showed an occupancy of
62 percent. The figures are not truly
comparative because of the inclusion of
apple and other one-crop houses in the
June 16 survey.
Complete report coming
A complete report covering all phases
of the survey and including break-downs
by States, regions, and important cities
will be issued in the near future.
Copies of the current report may be
secured from the office of the Warehouse
CARLOADINGS IN UNSEASONAL
DECLINE; STRIKES A FACTOR
Freight carloadings for the week ended
September 20 totaled 907,969 cars, an in-
crease of 11.6 percent over the 813,329
cars loaded during the corresponding
week in 1940 but a decrease of 6,623 cars
under the preceding week in 1941. This
unseasonal decrease was principally due
to loss of coal production by reason of
strikes in a number of anthracite minesand in the bituminous captive minesserving the steel industry. The details
by important commodities follow:
CARLOADINGS WEEK ENDEDSEPTEMBER 20
September 30, 1941 • DEFENSE • 19
Two committees to work
with SPAB and OPM
on railroad materials
Ralph Budd. Transportation Commis-
sioner, OEM. announced September 18,
appointment of two committees to rep-
resent the Transportation Division in
working with the Supply Priorities and
Allocations Board and the Office of Pro-
duction Management on matters relating
to the supply of materials required for
construction of railroad, freight cars and
steam locomotives. Members of the
committees are:
Committee foe the Carbuilding Indus-try—C.. A. Liddle. president, Pullman-Stand-ard Car Manufacturing Co.. Pullman Build-
ing. Chicago. 111.; C J. Hardy, president,
American Car & Foundry Co., 30 Church St.,
New York, N. Y.: Lester N. Selig, president,
General-American Transportation Corpora-tion, 135 South LaSalle St., Chicago. 111.;
Edwin Hodge. Jr., president, Greenville Steel
Car Co.. Greenville. Pa.; A. Van Hassel, presi-
dent. Magor Car Corporation, P. O. Box 418,Passaic, N. J.; P. A. Livingston, president,Ralston Steel Car Co.. East Columbus, Ohio;and J. F. MacEnulty, president, Pressed Steel
Car Co., 2500 Koppers Building, Pittsburgh,Pa.Committee for the Steam Locomotive In-
dustry—W. K. Farrell. general purchasingagent, American Locomotive Co., 30 ChurchSt., New York. N. Y.; W. H. Harman, vicepresident. The Baldwin Locomotive Works,Philadelphia. Pa.; L. A. Larsen, vice president,Lima Locomotive Works. Inc., Lima. Ohio;G. W. Alcock. secretary. The Locomotive In-stitute. 60 East 42d St.. New York, N. Y.
* * *
Denim and broadcloth
standards to be developed
Standard definitions for denim and
broadcloth, materials widely used in
manufacture of work clothes and other
low-cost clothing, will be developed by a
committee to be appointed by the Ameri-
can Standards Association as the result
of a meeting held September 27 in the
Office of the Consumer Division, OPA.Called by the American Standards As-
sociation in response to a request from
Miss Harriet Elliott, Associate Adminis-
trator of OPA in charge of the ConsumerDivision, the meeting adopted a resolu-
tion calling for formulation of the defini-
tions. The meeting was attended by rep-
resentatives of the cotton fabricating
industry, consumer organizations, and
Government agencies interested in for-
mulating standard definitions for con-
sumer goods.
CIVILIAN SUPPLY . . .
Yardstick determines A-3 or
A- 10 for spare-part materials
A yardstick to be used by manufactur-
ers of automotive replacement parts in
estimating the proportion of materials
used in interchangeable parts to which anA-3 preference rating may be applied andthat to which an A-10 rating may be ap-
plied was adopted September 23 by the
Division of Civilian Supply.
The yardstick is to be used only in
cases where the manufacturer cannot
determine whether the interchangeable
parts are intended for use in heavy andmedium trucks and passenger carriers
with a seating capacity of 15 or more, onthe one hand, or in passenger cars andlight trucks, on the other hand. A rat-
ing of A-3 has been assigned to replace-
ment parts for heavy and medium trucks
and passenger carriers with a seating ca-
pacity of 15 or more. An A-10 rating has
been assigned to replacement parts for
passenger cars and light trucks.
The manufacturers were requested, in
a letter from Reavis Cox, supervisor of
industry branches of the division, to use
in the indeterminate cases the figure of
20 percent to estimate the proportion of
materials used in interchangeable parts
to which an A-3 rating may be applied,
and 80 percent for materials for inter-
changeable parts to which an A-10 rat-
ing may be applied. The letter also said:
"It may be that you as an individual
manufacturer have means of information
from which you can calculate a more ac-
curate ratio than 80 percent-20 percent
for your own business in interchangeable
replacement parts. In the event that
you can make such a calculation, and in
the event that such calculation reveals
that less than 20 percent of your inter-
changeable parts fall into the A-3 cate-
gory, you are to use such lower percent-
age in ordering materials under the A-3rating. In the event that your experi-
ence enables you to determine that morethan 20 percent of your interchangeable
replacement parts fall into the category
carrying an A-3 rating, you should com-municate with the Automotive Branch,
giving such figures as are available to
justify your use of such higher percent-
age. This office will make a careful
study of your request as quickly as pos-
sible, and should it appear that your re-
quest to use such increased percentage
is justified, this office will then grant you
permission to use such increased per-
centage as may be determined to be
justified."
Cox to supervise industry branches in
Civilian Supply; five chiefs appointedAppointment of Dr. Reavis Cox as Su-
pervisor of Industry Blanches, and of the
chiefs of five industry branches in the Di-
vision of Civilian Supply was announced
September 23 by Joseph L. Weiner, Deputy
Director.
Dr. Cox, chairman of the marketing de-
partment of the Wharton School of Fi-
nance and Commerce, University of
Pennsylvania, has been serving as assist-
ant director of the division. In his newpost, he will have general supervision
over the nine branches recently set up in
the division.
Jesse L. Maury, former head of the non-ferrous metals section, was named chief of
the Electrical Appliances and Consumers Dur-able Goods branch.
Nathaniel G. Burleigh, former head of theagricultural, forest and general products sec-
tion, was named chief of the Industrial andOffice Machinery branch.Barton Murray, who drafted the civilian al-
location program for rayon yarn and who hasengaged In other activities In the textile
field under the Division of Civilian Supply,was named chief of the Rubber and RubberProducts branch.Maury Maverick, who has been serving as an
assistant and consultant to Leon Henderson,administrator, Office of Price Administration,was named chief of the State and Local Gov-ernment Requirements branch.John L. Haynes, who had been specializing
in the lumber and building materials field
of civilian supply, was named chief of theLumber and Building Materials.
Norbert A. McKenna, who became chief of
the Pulp and Paper branch when it was underthe Production Division of the Office of Pro-duction Management, will continue to serve
as head of that branch. Under a recent re-
organization, its functions were transferred
to the Division of Civilian Supply.
Mr. Weiner stated that he expects to an-nounce in the near future the names of thechiefs of the three remaining branches. Atpresent, in order to take care of the immediatenecessities of these branches, Mr. McKennaand Mr. Haynes have been asked to serve tem-porarily as acting chiefs of the Printing andPublishing branch and the Plumbing andHeating branch, respectively. Andrew Ste-
venson, of the Automotive, Transportationand Farm Equipment branch, Is acting chief
of that branch.
20 • DEFENSE • September 30, 1941
PURCHASES . .
.
93 Certificates of Necessity for plant
expansion issued to 83 corporations
A total of 93 Certificates of Necessity
were issued to 83 corporations from Sep-
tember 1 to 15, inclusive, the National
Defense Advisory Commission an-nounced last week. These certificates
were issued in connection with the con-
struction and acquisition of new plant
and manufacturing facilities, the esti-
mated cost of which was $27,197,000.
This brings the total issued through
September 15 to 2,412. The cost of facil-
ities covered to date was estimated at
$1,183,705,000.
First half of September:
Ahlberg Bearing Co., Chicago, 111., ball androller bearings; $148,000.
Allis-Chalmers Manufacturing Co., WestAllis, Wis.; propulsion turbines: $270,000.
Aluminum Company of America, Pittsburgh,Pa.; fabricated aluminum products, pig alu-minum and carbon electrodes; $1,041,000.
The American Crucible Products Co., Lorain,Ohio; bronze and babbit bearings; $10,000.American Hoist & Derrick Co., St. Paul,
Minn.; cranes, winches, hoists, etc.; $199,000.American Locomotive Co., New York, N. Y.;
forgings, equilibrators for gun carriages;
$579,000.American Steel Castings Co., Chicago, 111.;
castings; $16,000.Armour and Company of Delaware, Chicago,
111.; dried egg products; $19,000.Armour and Company of Illinois, Chicago,
111.; dried egg products; $15,000.The Atchison, Topeka and Santa Fe Rail-
way Co., Topeka, Kans.; transportation of per-sons and property; $17,000.Atwood & Morrill Co., Salem, Mass.; high-
pressure valves for naval vessels; $199,000The Babcock & Wilcox Co., New York, N Y.;
steam boilers; $16,000.Bailey-Walker China Co., Bedford, Ohio;
vitrified china dishes; $14,000.Baker Brothers, Inc., Toledo, Ohio; boring
and drilling machines; $50,000.The Bauer Brothers Co., Springfield, Ohio;
machining of shells; $89,000.Bellingham Plywood Corporation, Belling-
ham. Wash.; Douglas fir plywood, hardwoodplywood and veneers; $313,000.Bendix Radio Corporation, South Bend, Ind.;
dynamotors, band change motors, etc., essen-tial to manufacture of aviation radio equip-ment; $20,000.Bower Roller Bearing Co., Detroit, Mich.;
aircraft engine bearings, small metal parts foraircraft engines; $133,000.Edward G. Budd Manufacturing Co.. Phila-
delphia, Pa.; doors, hatches, and scuttles fornaval vessels; $105,000.Callaway Mills, LaGrange, Ga.; canvas cot-
ton, duck and plied yarns; $407,000.Central Sugar Company. Inc., Decatur, Ind.;
storage of soybeans; $208,000.Clearing Machine Corporation, Chicago, 111.;
hydraulic presses, press brakes, dies, cushions,etc.; $45,000.
Coastal Refineries, Inc., Taylor, Tex.; gaso-line and other petroleum products; $17,000.
Collins Radio Co., Cedar Rapids, Iowa; radiotransmitting and receiving equipment; $9,000.Combustion Engineering Co., New York,
N. Y.; marine boiler units, oxidation units andfabricated products; $132,000.
Continental Roll & Steel Foundry Co., EastChicago, Ind.; cast steel armor castings;$149,000.
The Cushman Chuck Co., Hartford, Conn.;chucks for machine tools; $13,000.
C. R. Daniels, Inc., New York, N. Y.; spunyarns, cotton duck, sliver and yarn; $62,000.Domestic Egg Products, Inc., New York,
N. Y.; dried egg products; $124,000.Dresser Manufacturing Co., Olean, N. Y.;
forgings, machined shells, and marine steamengines; $89,000.
Duluth, Missabe & Iron Range RailwayCo., Duluth, Minn.; transportation; $2,-348,000.
Elgin, Joliet & Eastern Railway Co., Chi-cago, TJ1.; transportation; $4,920,000.Farmers Mutual Elevator Co., Humboldt,
Minn.; grain storage; $11,000.Firth-Sterling Steel Co., McKeesport, Pa.;
tool steel; $35,000.
L. S. Fisher Construction Co., Inc., Wood-ward, Okla.; handling and storing of grain;$59,000.The Fitzsimmons Co., Youngstown, Ohio;
cold drawn steel; $25,000.Foote Gear Works, Inc., Cicero, 111.; gears
for tanks and diesel engines; $21,000.General Machinery Corporation, Hamilton,
Ohio; marine engines; $160,000.General Mills, Inc., Minneapolis, Minn.;
ordnance material; $691,000.Goddard & Goddard Co., Detroit, Mich.;
machine tools; $16,000.The Goodyear Tire & Rubber Co., Akron,
Ohio; reclaimed natural and synthetic rub-ber compounds; $38,000.Hammond & Irving, Inc., Auburn, N. Y.;
steel forgings; $26,000.Illinois Central Railroad Co., Chicago, 111.;
transportation; $7,399,000.Jones & Laughlin Steel Corporation, Pitts-
burgh, Pa.; pig Iron and steel; $40,000.M. W. Kellogg Co., Jersey City, N. J.; heat
(Continued on page 21)
War Department contractsDefense contracts totaling $92,008,762
were awarded by the War Departmentand cleared by the Division of Purchases,
September 18 through 24. This com-pares with $302,322,126 the previous week.
Contracts for construction amountedto $23,089,585; contracts for equipmentand supplies to $17,207,730; contracts for
ordnance to $18,420,588; and contracts
for aircraft to $33,290,859.
ORDNANCE
Midvale Co., Nicetown, Philadelphia, Pa.;steel forgings; $3,096,948.
Sheffield Corporation, Dayton, Ohio; multi-cheks; $638,035.
Continental Motors Corporation, Muske-gon, Mich.; parts for tanks; $1,235,523.
Campbell, Wyant, and Cannon FoundryCo., Muskegon, Mich.; universal track car-riers; $3,094,900.Wagner Electric Corporation, St. Louis, Mo.;
shot; $1,530,000.Armstrong Cork Co., Lancaster, Pa.; shells;
$3,062,000.Stedfast & Roulston, Inc., Boston, Mass.
(for manufacture at The R. K. LeBlond Ma-chine Tool Co., Cincinnati, Ohio); lathes;$1,353,182.Kohler Co., Kohler, Wis.: shells; $1,750,000.Waterbury Clock Co., Waterbury, Conn.;
fuze bodies; $970,000.The Broderick Co., Muncie, Ind.; shells;
$1,690,000.
CONSTRUCTIONThree contractors: Pearson & Dickerson
Contractors, Inc., Oswald Bros., and J. A. Cas-son Co., Phoenix, Ariz.; construction at Litch-field Park, Ariz.; $924,690.Hughes-Foulkrod Co., Philadelphia, Pa.;
construction of storehouses and office buildingat Frankford Arsenal, Pa.; $577,800.
F. N. Thompson, Raleigh, N. O; constructionof buildings, open and closed shed bays andfencing of critical areas at Camp Davis, N. C.J
$794,594.Forcum James Co., Memphis, Tenn.; con-
struction of recreation buildings, Camp Liv-ingston, La.; $532,680.
A. K. Adams Co., Atlanta, Ga.; constructionof administration building, Atlanta GeorgiaGeneral Depot; $671,920.
Military Chemical Works, Inc., Kansas City,Mo. (a wholly owned subsidiary of Pittsburg
and Midway Coal Mining Co.) ; prime contractfor construction and operation of JayhawkOrdnance Works at Baxter Springs, Kansas, aplant which will manufacture anhydrous am-monia and ammonium nitrate; $18,981,901 (it
Is estimated that $10,193,600 will be for con-struction and $6,513,100 for procurement ofproduction equipment)
.
Corbetta Construction Co., Inc., Nev; York,N. Y.; construction of warehouse, ColumbusGeneral Depot, Ohio; $606,000.
AIRCRAFT
Vultee Aircraft, Inc., Downey, Calif.; air-planes, engines, propellers and spare parts;$12,384,083.Northrop Aircraft, Inc., Hawthorne, Calif.;
airplanes and spare parts: $18,411,812.Fairchlld Engine and Airplane Corporation,
Ranger Aircraft Engines Division, Farming-dale, L. I., N. Y.; engines and spare parts;
$2,494,964.
EQUIPMENT AND SUPPLIES
Air Cruisers, Inc., Clifton, N. J.; life rafts;
$1,561,400.Switlik Parachute & Equipment Co., Tren-
ton, N. J.; parachutes and equipment;$1,787,055.Emerson Electric Manufacturing Co., St.
Louis, Mo.; turret assemblies; $8,025,000.The Sparks-Withington Co., Jackson,
Mich.; mooring kits and signal assemblies;$522,901.Blackhawk Mfg. Co., Milwaukee, Wis.; jack
assemblies; $554,484.Diamond T Motor Car Co., Chicago, 111.;
4-ton trucks; $4,098,570.Hillsdale Mfg. Co., Hillsdale, Mich. (Mills:
Hillsdale and Coldwater, Mich.); 900,000 can-vas leggings; $658,320.
SUBCONTRACTS
Broderick and Gordon, Denver, Colo.; con-struction of Utah Ordnance Plant at SaltLake City; architects and engineers, Smith,Hinchman & Grylls, Detroit. Mich., and RoyceJ. Tipton. Denver, Colo.; $17,769,597. (TheRemington Arms Co., Inc., of Bridgeport,Conn., is prime contractor as previouslyannounced.)Two contractors: Freeto Construction Co.
of Pittsburg, Kans., and F. H. McGraw &Co., Hartford, Conn.; construction of Jay-hawk Ordnance Works at Baxter Springs,Kans.; architects a id engineers. ChemicalConstruction Corporation, New York City;$10.193.6C0.
September 30, 1941 • DEFENSE • 21
Certificates of Necessity
{Continued from page 20)
treating and bending of pipes for Navalvessels; $77,000.
Kellogg Commission Co., Minneapolis,Minn.; grain storage; $7,000.
Keokuk Electro Metals Co.. Keokuk, Iowa;silvery iron; $1,631,000.
Kilby Steel Co.. Anniston. Ala.; machiningof shells; $120,000.The Langley Instrument & Machine Co.,
San Diego, Calif.: airplane parts; $8,000.
Lebanon Steel Foundry, Lebanon, Pa.; cast-
ings for tank armor, turbines and pumps,for ships; $107,000.LeTourneau Co. of Georgia, Toccoa, Ga.;
machining of shells; $13,000.Maine Steel. Inc., South Portland, Maine;
shipbuilding hardware: $3,000.
Master Machine & Tool Co., Chicago. 111.;
machine tools. Jigs, fixtures; $12,000.Minor Walton Bean Co.. Grand Rapids,
Mich.: storing and processing of beans;$17,000.The Mosler Safe Co.. Hamilton. Ohio; ma-
chine tool parts; $17,000.National Lead Co.. St. Louis, Mo.; calcined
zinc concentrates; $434,000.The National Tool Co., Cleveland, Ohio;
machine tools: $68,000.New Orleans Terminal Co., Washington,
D. C: transportation; $17 000.
North Electric Manufacturing Co., Gallon,Ohio; automatic telephone switchboards,dials, power equipment, etc.; $1,000.Northwest Steel Rolling Mills. Inc., Seattle,
Wash.; steel billetts; $102,000.Omaha Cold Storage Co. Omaha, Nebr.;
spray process dried eggs; $20,000.
Pan American Refining Corporation, NewYork. N. ,Y.; gasoline; $30,000.
Pelton Steel Casting Co.. Milwaukee, Wis.;
steel and alloy castings; $58,000.
The Pennsylvania Railroad Co., Philadel-phia. Pa.; transportation; $133,000.Romec Pump Co.. Elyria. Ohio; pumps;
$5,000.Rustless Iron & Steel Corporation. Balti-
more, Md.: stainless steel products; $352,000.Shell Oil Co.. Inc.. New York. N. Y.; gaso-
line, oil and petroleum products; $413,000Sloss-Sheffleld Steel & Iron Co, Birming-
ham. Ala.; coal coke, byproducts of coke, andpig Iron; $28,000.
Solvay Process Co., Syracuse, N. Y.; am-monium and sodium nitrate; $1,338,000.
Stockham Pipe Fittings Co.. Birmingham,Ala.; machining of shells; $3,000.
Tacoma Transit Co., Tacoma, Wash.; trans-portation; $130,000.
Taylor Refining Co., Taylor, Tex.; gasoline
and petroleum products; $34,000.
Textile Proofers, Inc., Jersey City. N. J.;
flreproofing and waterproofing of tent, tar-
paulin, etc.; $2,000.
Trackson Co., Milwaukee, Wis.; earth mov-ing machinery; $105,000.The Van Dorn Iron Works Co., Cleveland,
Ohio; processed rolled homogeneous armorplate; $38,000.
Vinco Corporation, Detroit. Mich.; gauges,gears, and checking devices: $37,000.
The Waco Aircraft Co., Troy, Ohio; aircraft
and parts; $65,000.O. S. Walker Co.. Inc., Worcester, Mass.;
magnetic chucks and grinding machines;$5,000.Walworth Co., New York. N. Y.; valves and
fittings; $70,000.Whiting Corporation. Harvey. 111.; cranes,
rotary metal working machinery, and cuoclas;$24,000.Wico Electric Co. West Springfield. Mass.;
aircraft magneto, parts for same, and engi-neering service: $81,000.Willamette Iron and Steel Corporation,
Portland, Oreg.; reconditioning and conver-sion of vessels, manufacture of engines;$152,000.Wyman-Gordon Co., Worcester, Mass.;
forgings for airplanes, aircraft propeller as-semblies; $1,088,000.
Purchases Division organized into
industrial branches in OPM system
Organization of the Division of Pur-chases into Industrial branches in line
with the recent redistribution of
branches and sections within the Office of
Production Management was announcedSeptember 25 by Douglas C. MacKeachie,Director of Purchases.
For industries in which defense pro-
curement of finished goods is a majorproblem, the industrial branches in the
Division of Purchases assume primaryresponsibility for all defense problems,
including questions of civilian supply andsimplification and conservation, andmake recommendations on priorities
matters. For certain other industries,
the Division of Purchases takes respon-
sibility only for advising Governmentagencies on procurement, with respon-
sibility for matters like priorities andcivilian supply lodged elsewhere.
The Division will maintain purchasing
specialists with the other Divisions of
OPM, and will continue to have purchas-
ing advisers with other Governmentagencies.
Deputy Director of the Division is Ar-
thur Newhall, of Meadville, Pa.
Mr. Newhall is on leave from his po-
sition as executive vice president of
Talon, lac, a position which he assumed2 years ago.
Executive officer of the Division is
Philip F. Maguire, who comes to this
post from his previous position as assist-
ant administrator of the Surplus Market-ing Administration, Department of Agri-
culture.
Principal industrial branches
Principal Industrial Branches of the
Division are as follows
:
Food Supply Branch: Howard Cunning-ham, assistant director of purchases, incharge. Mr. Cunningham has been handlingsubsistence problems for the Division forseveral mcn'hs; in private life he is directorof purchases for the National Biscuit Co.John Martin remains in charge of all per-
ishable foodstuffs, as head of the perishablefoods section.The chief of the nonperishable foods sec-
tion will be announced later. In this sec-
tion are the canned and dehydrated foodsunit, headed by John Baxter: the bakeryproducts unit, headed by John T. McCarthy,and the grocery and package goods unit,
whose head will be announced later. Addi-tional commodity units are in process of
formation.Textiles. Clothing and Equipage Branch:
R. R. Guthrie, assistant director of purchases,in charge. Mr. Guthrie is director of Allied
Stores Corporation and lives in Paducah, Ky.He retains his old OPM post as executivedirector of the Post Exchange Committee.
Sections in this Branch include: Textiles
and fibres section, Frank Walton, chief; chief
consultant, J. A. Rice; shoes and leatherproducts section, Harold Florsheim, chief;
hides, leather and skins section. JosephByron, chief; clothing section, Robert J. Dil-lon, chief; equipage section, name of chief tobe announced later.
Containers Branch: Walter Shorter, assist-
ant director of purchases, In charge. Sales
manager of the specialties division of the In-ternational Paper Co., Mr. Shorter came to
OPM last winter as assistant to the Director
of Purchases, and later served for several
months as purchasing consultant to the pulpand paper section in the Production Division.
This Branch contains the following sec-
tions, the chiefs of which will be announcedlater: metal containers section, glass andplastics containers section, paper and fibre
tcntainers section, fabric containers section,
wood containers section.
Health Supplies and Fire EquipmentBranch: W. Emmett Bittner, assistant di-
rector of purchases, in charge. Mr. Bittner
is on leave as director of purchases for the
Diamond Alkali Corporation of Pittsburgh.This branch contain-; the health supplies
section and the fire equipment section, whosechiefs will be announced later.
In addition, the Branch also contains three
procurement advisory sections, which are re-
sponsible for advising Government agencieson procurement problems. These are thecoal, coke and petroleum section, the motortransport section and the Industrial equip-ment section. Chiefs of these sections will
be announced later.
Equipment and Supplies Procurement Ad-visory Branch: James MacPherson. assistant
director of purchases, in charge. Mr. Mac-Pherson is on leave from his position as sec-
retary-treasurer of the California-ArabiaStandard Oil Co. of San Francisco.
All of the sections in this Branch are re-
sponsible for advising Government agencies
on procurement problems and for coordinat-ing purchases by various Government agen-cies. The sections include: lumber andbuilding materials; plumbing and heating;air conditioning and refrigeration; electrical
goods; paints; furniture; general supplies.
Chiefs of the sections will be announcedlater.
In addition to the branches concerned withindustry problems, there are two others:Contract Clearance Branch: Hiram S.
Brown, assistant director of purchases, incharge. In this Branch are the pre-clearancereview section, H. B. Hayden, chief; the cost-
analysis section, T. H. Sanders, chief, andthe contract clearance section, whose chief
will be announced later.
Accounting and Distribution AdvisoryBranch: Eric Camman, chief; M. Peloubet,assistant chief; F. C. Weed and W. R. Rosen-berger, consultants.Continued under the Purchasing Division
are the post exchange committee and the ad-
visory committee which functioned under theformer set-up.A staff of priorities specialists headed by
J. W. Peters will advise the various branchesand sections which handle priorities problems.A group of experts from the Bureau of Re-
search and Statistics, headed by M. L. Mc-Elroy, will be at the service of the PurchasingDivision.
Consultants to the Purchasing Division in-
clude Sidney J. Weinberg, A. D. Whiteside,
S. F. Teele. Austin Grimshaw, Amos Parrlsh,
and Elmo Roper.The Division's legal staff includes Alexander
B. Hawes, Fairfax Leary, and B. C. Schmidt.
Ma]. Gen. W. C. Baker serves as liaison
officer between the Purchasing Division andthe War Department. Rear Admiral CharlesConard Is liaison officer between the Division
and the Navy Department.
22 • DEFENSE • September 30, 1941
CIVILIAN DEFENSE . . .
"Pots and pans" collection yields enough
aluminum for over 1,900 fighter planes
The Nation's housewives donated to
the Government from July 21 to 29
enough aluminum to make more than
1,900 fighter planes or 350 four-motored
bombers, it was announced September
24 by the Office of Production Manage-
ment and the Office of Civilian Defense.
With returns from the Nation nearly
all in, the estimated gross collection total
of "pots and pans" amounted to 11,835-
139 pounds, or about one-third of a
pound per occupied dwelling. Office of
Production Management experts esti-
mated this would yield about 7,000,000
pounds of aluminum for defense produc-
tion. The balance between these two
figures represents other materials, pri-
marily iron and steel, which were at-
tached to the aluminum articles.
97.4 percent allocated
Of the gross collection 97.4 percent or
all but 310,000 pounds, already has been
allocated to smelters having defense
preference ratings. This assures the use
of the aluminum collected in defense
plants.
The highest gross collection of anyState was recorded by New York where
housewives contributed 1,050,000 pounds
of pots and pans. Second highest State
was Pennsylvania with a recorded total
of 900,000 pounds, and Massachusetts
was third with 699,150 pounds.
Highest contributors per dwelling wasreported by Rhode Island where 1.088
pounds per occupied unit were contrib-
uted to the collection. Second highest
per dwelling contribution was reported
by Nevada with 0.744 pound per unit,
and Utah was third with 0.716 poundper dwelling.
Fell short of estimates
The total collected throughout theNation fell considerably below OPM esti-
mates. These estimates were basedupon the per capita yield from test cam-paigns conducted in Richmond, Va., andin Dane County, Wis., which campaignswere organized thoroughly and con-
ducted intensively. Several factors ap-
parently contributed to a less successful
yield throughout the Nation.
Besides yielding enough aluminum to
materially improve an emergency short-
age of scrap metal at defense smelters,
the campaign has taught valuable lessons
for the guidance of OPM officials in
planning for the salvaging of other scrap
and waste materials.
Totals by States
Totals by States follow:
State
September 30, 1941 • DEFENSE • 23
Civilian Defense. Upon completion of
the course, aides will be entitled to wear
the uniform of the Volunteer Nurses'
Aides and the insignia designed by the
Office of Civilian Defense and the Ameri-
can Red Cross. They then will be en-
rolled in the Volunteer Nurses' Aide
Corps and will be assigned to assist nurses
in hospitals, clinics, health departments,
and field nursing services. The nurses'
aides must give 150 hours of volunteer
service annually to maintain member-ship in the corps and to be permitted to
wear the uniform. The 150 hours of
service annually must be given within a
3-month period.
Women between the ages of 18 and 50,
with a high school education, or its
equivalent, and who are physically fit,
are urged by Mayor LaGuardia to makeapplication for the Volunteer Nurses'
Aides course at their local Red Cross
chapter.
Many hospitals give aide training
Training already is being given in thefollowing hospitals:Connecticut—Bridgeport, Bridgeport Gen-
eral; Greenwich. Greenwich Hospital; Munici-pal Hospital; New Haven. New Haven Hospital;Norwalk. Norwalk General Hospital.
Georgia.—Savannah. St. Josephs Hospital.Maine.—Rockland. Camden County Hos-
pital; Knox. County Hospital.Maryland.—Annapolis. Annapolis General
Hospital; Baltimore, University of MarylandHospital: Johns Hopkins Hospital.
Massachusetts.—New Bedford, St. Luke'sHospital: Northampton, Cooley Dickinson Hos-pital; Worcester, Worcester City Hospital;Hahnamann Hospital, Memorial Hospital,Mercy Hospital.New Jersey.—Elizabeth, Elizabeth General
Hospital; Monmouth County, Monmouth Me-morial Hospital; Morristown, Morristown Me-morial; Passaic. Passaic General Hospital.New York.—BronxvUle. Yonkers General
Hospital; Brooklyn, Kings County Hospital;New York City, Bellevue Hospital. Montefiore,New York Infirmary for Women and Chil-dren, Post Graduate; Poughkeepsie. VassarBrothers Hospital. St. Francis Hospital;Nassau County. Nassau Hospital, NorthCounty Hospital, Meadowbrook Hospital;Rochester, Strong Memorial Hospital, St.Mary's Hospital. Rochester General Hospital,Genesee Hospital. Highland Hospital; Water-town. House of Good Samaritan, Mercy Hos-pital; Westchester County, White PlainsHospital, Grasslands Hospital. New RochelleHospital, Mt. Vernon Hospital. Port ChesterHospital. Northern Westchester Hospital, St.Agnes Hospital.
Pennsylvania.—Pittsburgh, PresbyterianHospital, Montefiore Hospital, University ofPittsburgh. St. Margaret's Hospital, AlleghanyHospital, Magee Hospital; Philadelphia,Philadelphia General Hospital. PresbyterianHospital. University of Pennsylvania Hos-pital. Bryn Mawr Hospital.Rhode Island.—Providence, Rhode Island
Hospital, Butler Hospital, HomeopathicHospital.
Virginia.—Clark County. Winchester Hos-pital; Norfolk, Norfolk General, St. Vincent's.
Washington. D. C.—Georgetown Hospital,Emergency Hospital.
The following cities are also beginning
training courses: Los Angeles, Calif.;
Chicago. 111.; Detroit. Mich.; KansasCity and St. Louis, Mo.
HEALTH AND WELFARE . .
.
Nurse training expanded, but
thousands are needed, Parran reports
Calling the shortage in nurses a threat
to the Nation's greatest resource—that
of manpower—Dr. Thomas Parran. Sur-
geon General of the United States Pub-
lic Health Service and a member of the
Health and Medical Committee in the
Office of Defense Health and Welfare
Services, reported over the National Ra-
dio Forum for September 22 on progress
in recruiting and training nurses for na-
tional defense.
Progress outlined
With Federal help through $1,250,000
recently appropriated by Congress, hos-
pitals and nursing schools all over the
country are already expanding nurses'
training along three major lines, ac-
cording to Dr. Parran. He reported
that:
"Eighty-eight of the Nation's nursing
schools can accept 2,000 more students
this year. These schools are in 36 of
our States, in Hawaii, and in Puerto Rico.
In addition, 67 schools in 32 States will
offer brief refresher courses to 3,000 in-
active registered nurses who want to re-
turn to duty . . . Through Federal aid
26 institutions will be able to give post-
graduate courses to 500 additional
nurses; the majority of these are pre-
paring to become head nurses andteachers, the leaders in the new nursing
army . . . The response of the nursing
schools has been tremendous. Unfor-
tunately, the funds now at our disposal
made it possible to select only a fewschools for Federal aid . . . But many of
the best schools in the country were
able to expand without our help, andI am happy to say, they have done so."
Services take 600 a month
The nursing army, numbering nowsome 300,000, needs to increase its ranks
by 10,000—and more. Dr. Parran stated
that "... even in normal times there
are 10,000 nurses needed who are not
there. Never before in our peacetime
history has America had 2 million menunder arms. Every month, more than
600 nurses are drawn from civilian life
to serve the Army and the Navy. De-
fense industries and Army camps are
drawing people from one section of the
country to another. Towns that housed
a thousand have become the homes of
tens of thousands. These new citizens
bring with them all the health problems
of the swift-growing congested areas."
"We need three where we have one"
This shortage is particularly acute in
Dr. Parran's own field—that of public
health. The Senior Nursing Consultant
of the Public Health Service, Pearl Mclver,
who was one of the four participants in
the Forum, pointed out that: "... In
1940—for the first time in 6 years—the
number of public health nurses in this
country did not increase. There are less
than 24,000 of us now—employed by all
types of agencies. And, to do a good job,
we need three wherever we now have one.
Every State and Territorial Health De-partment as well as our own Federal serv-
ice has vacancies. There are not enough
qualified nurses to meet peacetime needs,
and we have the additional demands of
national defense ..."
Representative Frances Payne Bolton
of Ohio, speaking from 30 years' experi-
ence—she is a trustee of the Frances
Payne Bolton School of Nursing in
Western Reserve University—made a
plea to parents and daughters: ".. . to
consider nursing as the finest possible
opportunity open to the young women* of
America today. You who are parents
can rest assured that in our accredited
Schools of Nursing your daughters'
health and welfare will be safeguarded,
and that they will find opportunity for
scholarship and inspiration for service.
To you girls I would like to say that the
years ahead are going to be hard years
when life will demand a disciplined
strength and courage from us all. Nurs-
ing offers you a chance to prepare your-
selves for such living as no other training
dees."
Jobs won't end with emergency
In summarizing the Forum, Dr. Par-
ran emphasized the fact that the thou-
sands of student nurses in this country
can look forward to jobs that will not
end with the present emergency.
(Young women interested in nurse
training should be referred to the Nurs-
ing Information Bureau, 1790 Broadway,
New York City, or to the United States
Public Health Service, Washington,
D.C.)
24 • DEFENSE • September 30, 1941
Key men appointed for new Materials
Division; Branch chiefs remain
Selection of key personnel for the newDivision of Materials, headed by W. L.
Batt, has been completed, the Office of
Production Management announcedSeptember 27.
The executive staff consists of A. I.
Henderson and Philip D. Reed, deputy
directors; C. E. Rhetts, Washington,
D. C, executive assistant to Mr. Batt;
and Dr. C. K. Leith, Madison, Wis., tech-
nical consultant.
Mr. Henderson was deputy chief of the
Materials Branch of the Priorities Divi-
sion from July 1940 until May of this
year when he took a leave of absence.
Mr. Reed long has been identified with
the materials program, having been in
charge of Subdivision E of the Priorities
Division under E. R. Stettinius, Jr. Mr.Henderson and Mr. Reed are from NewYork City.
Under the revised setup, Mr. Reed will
be in direct charge of strategic materials,
all or part of which must be imported.
Branches under his direction include
Cork and Asbestos, Tungsten, Manga-nese, Mica-Graphite, Nickel, Copper andZinc, Tin and Lead, and Miscellaneous
Minerals. A separate branch covering
the stock pile and shipping program also
is under his direction. It is headed byPhilip W. Parker of New York City. C. H.Mathiessen, Jr., Pasadena, Calif., is as-
sistant to Mr. Reed.
Critical materials, in which expanded
U. S. production is under way, consti-
tute the particular field of which Mr.Henderson will have charge. These are
aluminum and magnesium, iron andsteel, chemicals, and power.
F. W. Gardner to head Rubber Branch
No changes have been made in the
chiefs of the various branches, with the
exception of rubber which has been
taken over by the Division of Civilian
Supply. F. W. Gardner, of New York
City, former assistant in charge of cork
and asbestos, is chief of that new branch.
The other branch chiefs are:
Aluminum and Magnesium—A. H.
Bunker, New York City; Chemicals
—
E. R. Weidlein, Pittsburgh, Pa.; Iron andSteel—A. D. Whiteside, New York City;
Power—J. A. Krug, Morris, Tenn.;
Nickel—D. A. TJebelacker, Englewood,
N. J.; Tungsten—H. K. Masters, NewYork City; Copper and Zinc—J. A.
Church, Westport, Conn.; Tin andLead—Erwin Vogelsang, New York City;
Mica-Graphite—H. C. Sykes, New YorkCity; and Miscellaneous Minerals—R. J.
Lund, Racine, Wis.
* • *
Knowlsen to have charge
of Priorities operations
Priorities Director Nelson announcedSeptember 23 the appointment of J. S.
Knowlson, of Chicago, to be deputy di-
rector of priorities in charge of opera-
tions. Mr. Knowlson succeeds Thomas B.
McCabe, who will take up new responsi-
bilities on the staff of Lend-Lease Ad-ministrator Edward R. Stettinius, Jr.
OPM to cooperate with banks
in financing defense contracts
Bradley D. Nash, representing the
financial section of OPM's Contract Dis-
tribution Division, on September 28. out-
lined to the Defense Loans Committee
of the American Bankers' Association a
program to cooperate with lending in-
stitutions in financing defense contracts.
Mr. Nash's statement, in part:
The Office of Production Managementthrough the financial section of the Con-
tract Distribution Division recognizes
the responsibility of the financial com-munity, public and private, to see that a
manufacturer who has a prime or sub-
defense contract or whom the armedservices wish to see receive such con-
tracts, shall not fail in the attempt to
complete the job because of a lack of
money. This office expects to cooperate
with the commercial banks, the Recon-struction Finance Corporation, and the
Federal Reserve banks to the end that
these prime and subcontractors may be
brought in touch with all available
financing facilities. Moreover, this
financial office intends to discuss anyrequests from prime or subcontractors
that come before it with the contractor's
local bank. If the manufacturer's bank
cannot make the requested advance, this
office will do its best, with the assistance
of every available private and Govern-
ment financial agency, to meet the con-
tractors' financial requirements.
The Contract Distribution Division
urges the banks to encourage their man-ufacturing customers to whom such ac-
tion is appropriate, to form prime or
subcontract groups.
OFFICE FOR EMERGENCY MANAGEMENT
Central Administrative Services: Dallas Dort,Director.
Defense Aid Reports Division: MaJ. Gen.James H. Burns, Executive Officer.
Defense Communications Board: JamesLawrence Fly. Chairman.
Defense Housing Division: C. F. Palmer,Coordinator.
Information Division: Robert W. Horton,Director.
National Defense Mediation Board: Wm. H.Davis, Chairman.
Office of Scientific Research and Develop-ment: Dr. Vannevar Bush, Director.
Office of Civilian Defense: Fiorello H.LaGuardia, Director.
Wayne Cot, Liaison Officer
Office of the Coordinator of Inter-Ameri-can Affairs: Nelson Rockefeller, Coordi-nator.
Office of Defense Health and Welfare Serv-ices: Paul V. McNutt, Director.
Office of Price Administration: Leon Hen-derson, Administrator.
Consumer Division: In charge of HarrietElliott, Associate OPA Administrator.
Supply Priorities and Allocations Board:The Vice President of the United States,Chairman; Donald M. Nelson, ExecutiveDirector; The Secretary of War; The Secre-tary of the Navy; William S. Knudsen;Sidney Hillman; Harry Hopkins; LeonHenderson.
Transportation Division of the AdvisoryCommission: Ralph Budd, Commissioner.
Office of Production Management:William S. Knudsen, Director General.Sidney Hillman, Associate Director General.
Secretary, Herbert Emmerich.General Counsel, John Lord O'Brian.
Production Division: W. H. Harrison,Director.
Purchases Division: Douglas C. Mac-Keachie, Director.
Priorities Division: Donald M. Nelson,Director.
Materials Division : William L. Batt,Director.
Civilian Supply Division": Leon Hender-son, Director.
Contract Distribution Division: Floyd B.Odium, Director.
Labor Division: Sidney Hillman. Director.Research and Statistics Bureau: StacyMay, Chief.
Bureau of Clearance of Defense IndustryAdvisory Committees: Sidney J. Wein-berg, Chief.
U. 5. GOVERNMENT PRINTING OFFICE, 1941