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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


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.


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.


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.


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.


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.


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


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.


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.


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.


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.


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."


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)


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.


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."


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


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.


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.


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.


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.


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«


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.


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.


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.


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-


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.


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.


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.


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.


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.


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.


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.


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.


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.


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)


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.


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.


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.


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


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.


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.


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.


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


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.)


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

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