[Defense : Official Weekly Bulletin of Defense Agencies in the Office for Emergency Management. Vol. 2, No. 33]
[From the U.S. Government Publishing Office, www.gpo.gov]
DEFENSE
OFFICIAL WEEKLY BULLETIN OF DEFENSE AGENCIES IN THE OFFICE FOR EMERGENCY MANAGEMENT
WASHINGTON, D. C.
AUGUST 19, 1941
VOLUME 2, NUMBER 33
DEFENSE PROGRESS
MANPOWER ⁴
United States Army, Aug. 14_____ 1, 545,400
Navy and Marine Corps, Aug. 1— 340,931
Nonagricultural workers, June--- 88,790,000
Percent increase since July 1940- 9. 5
Sixteen defense Industries, June. 2,440, 500
Percent increase since June 1940- 47.6
FINANCE
June 1940-July 1941 Authorized program__________$48, 087,000,000
June 30, ¡941
Commitments for defense plant expansion_____________$3,402,000,000
PRODUCTION
July 1940-July 1941
Paid on contracts__________$6,325,000,000
Military aircraft in July-__ 1,460
Combat vèssels in July______ 20
Merchant ships in July______ 8
Week ended August 9 Strikes Workers
Significant defense strikes
in progress during week_____ 9 26, 925
Number settled_____________- 3 2,375
In this issue
Review of the week in defense................2
Gasoline restriction begins ....... 3
PRODUCTION
Defense outgrows prime contractors .... 4
MEDIATION BOARD
Davis denies asking closed shop..............6
LABOR
Combating defense unemployment...............7
PRIORITIES
Vanadium under full control . .............10
PRICES AND CIVILIAN SUPPLIES
Everyone suffers by inflation—Miss Elliott . . 11
PURCHASES
Week’s contracts: $256,808,229 ..... 18
TRANSPORTATION
Buried rails to yield defense metal.........19
AGRICULTURE
Farm organizations united for defense . , . . 20
HOUSING
Week’s completions: 2,130...................21
CIVILIAN DEFENSE
100,000 volunteer nurses’ aides wanted ... 22
407363e—41
2
★ DEFENSE ★
August 19, 1941
Review of the Week in Defense
The first step toward rationing gasoline in eastern United States was taken last week by the Office of Price Administration and Civilian Supply upon recommendation of Petroleum Coordinator Ickes.
Administrator Leon Henderson ordered deliveries of gasoline cut 10 percent below July consumption, turned over enforcement to OPM. OPACS explained that the program is an “interim measure” to be followed by “more severe curtailments.”
OPACS’ action came after Secretary Ickes had stated that deliveries of gasoline on the Atlantic coast rose 8 percent the week ending August 5 despite the closing of service stations at 7 p. m. daily. The oil conservation program was necessitated by the shortage of oil tankers, many of which are now carrying gasoline to England.
Price actions
Henderson cut prices of Southern pine lumber $3 a thousand feet, fixed a maximum price for pig tin, put a ceiling on sugar to forestall speculation, and slashed prices that may be paid for burlap 20 percent below recent New York quotations.
Two advisory panels were set up in the OPACS Consumer Division to suggest ways and means for better protection of the quality of consumers’ goods and for conserving materials essential for defense.
Meanwhile, OPM Director General William S. Knudsen told the N. Y. Division of Commerce Production Clinic:
“We have ... reached the point where material requirements for the defense program might interfere with civilian requirements to an important extent.”
Anticipating greater defense production in the months ahead, Knudsen asked for a speeding up of subcontracting. He called the placing of $26,000,000 worth of subcontracts in the last two months “a fair start.”
Iron ore fleet recommended
OPM recommended construction of an emergency fleet of 25 iron ore boats at a cost of $50,000,000 to the Maritime Commission, and received industry proposals
for expansion of 12,000,000 tons in steel ingot capacity.
The Great Lakes boats are needed to transport ore for the 6,508,950 tons of additional pig iron production recommended by OPM.
As OPM announced July’s military aircraft production to be 1460, Production Division officials and steel and iron company executives discussed means for doubling capacity for finishing aircraft and other alloy steels.
Steps to make available thousands of tons of unused street car and railroad rails, many imbedded in city streets, were taken by Ralph Budd, OEM Transportation Commissioner.
Tank production speeded
The Priorities Division moved to speed up production of light and medium tanks by issuing two preference ratings on behalf of three Government arsenals and 11 companies engaged in 100 percent defense work.
Vanadium, essential as an alloy in making high-strength cast iron and steel forgings, was placed under full priority control.
Responding to many inquiries, the OPM released a statement explaining that discarded silk stockings have no value as defense material.
Further supplies of rayon to manufacturers of silk products other than hosiery were allocated by the special joint commodity section on silk of OPACS and OPM.
Employer-labor disputes in defense industries continued to occupy official attention as William H. Davis, chairman of the Defense Mediation Board, explained the board’s recommendations in the Federal Shipbuilding & Drydock Co. strike at Kearny, N. J., while awaiting White House action.
Aircraft officials meet
OPM Associate Director Sidney Hillman met August 18 with union and management officials of the southern California aircraft industry. Representatives of 15 major defense firms in the Philadelphia area and 15 labor leaders were to meet in Philadelphia August 19.
OCD Director F. H. LaGuardia designated an OCD official to participate in a State-wide black-out in New Mexico September 12 and announced 100,000 volunteer nurses’ aides will be trained within the next year by the Red Cross and major hospitals of the country.
★ ★ ★
MONTHLY DEFENSE PAYMENTS PASS BILLION MARK
Monthly disbursements by various agencies of the United States Government for national defense passed the billion-dollar mark in July. As shown in the chart on this week’s cover, the preliminary total on a checks issued basis was $1,100,000,000, as compared with $994,200,000 in June, and $176,-900,000 in July 1940.
In this compilation by the OPM Bureau of Research and Statistics, transfers of funds from one department or agency of the Government to another are reckoned as disbursements, and are not accounted for when paid out by the department to which they were transferred.
In January 1941 a large transfer from the War Department to the Navy Department had the effect of increasing total disbursements for January and decreasing the figure for February. In general, however, the transfers are for small amounts which have little effect upon the relative positions of the monthly totals.
★ ★ ★
AUTO MAKERS TO MEET ON
FUTURE PRODUCTION
Eighteen manufacturers of automotive vehicles and parts have been invited to attend a meeting in Washington August 21, with representatives of the Office .of Production Management and the Office of Price Administration and Civilian Supply “for the purpose of discussing future automobile production.”
DEFENSE
OFFICIAL BULLETIN of the Office for Emergency Management. Published weekly by the Division of Information, Office for Emergency Management, and printed at the United States Government Printing Office, Washington, D. C.
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August 19, 1941
★ DEFENSE ★
3
OPACS cuts gasoline to 90 percent of July
Because of the shortage of transportation facilities available for moving gasoline to the Atlantic Coast area, deliveries of gasoline from suppliers were limited August 16 to 90 percent of the July level through a civilian allocation program issued by Leon Henderson, Administrator, Office of Price Administration and Civilian Supply.
The action was taken in response to a recommendation from Harold L. Ickes, Petroleum Coordinator for National Defense.
More severe cuts expected later
It means that beginning immediately the amount of gasoline available to consumers in the Atlantic coast area will be 10 percent smaller than during the like period of July. The allocation program provides, however, that deliveries to certain users whose needs are essential shall not be reduced beyond "minimum necessary requirements,” thus increasing somewhat the severity of the curtailment for ordinary civilian users.
The program is intended as an interim measure pending the development of a further plan for allocating the distribution and consumption of motor fuel. It is expected that more severe curtailments will be necessary in the future.
Voluntary measures failed
In asking that OPACS take this action Mr. Ickes stated:
"During the week ending August 5 deliveries of gasoline by 17 major suppliers in the Atlantic coast area increased by 8 percent despite the intensive efforts of this office to obtain voluntary public cooperation in reducing gasoline consumption. This alarming continued increase in deliveries of gasoline, in view of the shortage of oil transportation facilities, threatens to leave the Atlantic coast area without sufficient petroleum products for essential transportation, power, and heat. It is imperative, therefore, that immediate steps be taken which will conserve effectively the supplies of petroleum products in this area in order that national defense and essential civilian requirements may be met.”
Essential uses provided for
Because of the need to assure continuance of essential public services and the production of foodstuffs the program names four groups of uses which are to be allotted “not in excess of the mini-
delivery in East level
mum necessary requirements.” They Include:
(1) The operation of commercial vehicles so classified by law.
(2) The operation of vehicles necessary for the public health or safety, including ambulances and vehicles operated by physicians.
(3) The operation of farm machinery and motor trucks used for farm purposes.
(4) The operation of vehicles owned or operated by Federal, State, or local Governments.
With the exception of the four groups of users receiving special treatment, it is required that deliveries by service stations shall be made in a manner which will spread necessary curtailment proportionately among different consumers and different classes of trade. Deliveries to service stations must also be made proportionately throughout each month and service station operators must distribute their deliveries proportionately throughout each day.
In announcing the program Mr. Henderson made it clear that action was taken'only because of the acute situation which is developing due to transportation shortages.
★ ★ ★
Two pipe line plans under consideration
The oil industry’s plan for the longest single pipe line system in the world—an 1,820-miIe hook-up which will pour 250,-000 barrels of crude oil dally into the New York-Philadelphia area—has been submitted to Defense Petroleum Coordinator Harold L. Ickes by 11 of the Nation’s large oil companies.
While the plan contemplates an immediate start on the new network and probable completion within 9 months, its effect on the East’s oil supplies will not be felt soon enough to be a factor in solving the immediate petroleum problem.
The Coordinator also had under consideration last week an application to secure necessary rights-of-way, as provided in the Cole Pipe Line Act, for a 1,200-mile line from Baton Rouge, La., to Greensboro, N. C. The company interested revealed that most of the materials needed are available, that contracts for construction have been let, but that it is unable to secure certain portions of the right-of-way, especially in Georgia.
“Clinic” August 26 to give news men priorities background
A priorities clinic for newspaper men and editors of trade journals and magazines who handle information on the priorities system is to be held on August 26 in Washington by the Priorities Division, OPM.
The school is to be held so that editors, writers, and others who handle information about the priorities system and its effect may obtain all necessary background information.
The sessions will be held in the auditorium of the United States Chamber of Commerce Building, Connecticut Avenue and H Street, NW., beginning at 9 a. m. and will last all day.
The agenda will include a discussion of Office for Emergency Management and Office of Production Management organization, the legal background of the priorities system, functions of the Army and Navy Munitions Board, program and activities of the Priorities Division, requirements of General Preference Orders, and other basic information relating to priorities.
The clinic will be in charge of Mason Manghum, chief of the industrial contact unit, compliance section, Priorities Division. Mr. Manghum can be addressed at the Office of Production Management, Washington, D. C.
The program will include an open forum for questions and answers on the priorities system.
★ ★ ★
AIRCRAFT MANAGEMENT, LABOR CALLED TO MEET
Southern California airplane union and company officials were invited by OPM’s Associate Director General Hillman, to meet with him in Washington, August 18, to discuss "matters open between management and labor” in the aircraft industry of their region.
Officials of United Auto Workers, CIO, the International Association of Machinists, AFL, and the independent United Aircraft Welders of California were invited in Hillman’s telegrams, along with the ranking executives of the seven major companies in the area. Assistant Secretary of War for Air Robert A. Lovett, Assistant Navy Secretary Ralph A. Bard, Chairman W. H. Davis of the National Defense Mediation Board, and Theodore P, Wright of the OPM Aircraft Section, also were asked to attend.
4
★ DEFENSE ★
August 19, 1941
PRODUCTION...
Defense job so big now, prime contractors must see they can’t do it alone—Batt
The defense program has grown to such proportions that prime contractors must realize by now they cannot handle It all without the aid of subcontracting, W. L. Batt, Sr., Deputy Director, Production Division, OPM, told the Defense Clinic at Brooklyn, August 14. Excerpts from Mr. Batt’s speech follow:
This country is very rapidly moving Into what is commonly described as a wartime economy. That is to say, an economy directed—forcibly if necessary—toward a single objective: The greatest and quickest possible production of war equipment.
In specific relation to subcontracting there is one aspect of the transition period to which I should like to call your attention. Up until a few months ago there was no very great pressure for a program of intensive subcontracting. Many large contractors were reluctant to engage in subcontracting for a number of reasons—because they were held responsible by the armed services for the quality and performance of the finished product, because it is always easier to do a job yourself, and for a variety of other reasons. The Army and Navy themselves did not take a forceful attitude on the subject of subcontracting, again principally because they have a very vital interest in the quality of fighting equipment produced for them and they therefore preferred—understandably— to deal with those corporations whose experience, management, and performance were a matter of record.
The attitude was apathetic
A large segment of industrial enterprise, which might roughly be described as the medium-sized organizations, were not particularly anxious to engage in Government work. By and large they were busy with normal business, with the production of peacetime goods which they regarded as permanent and profitable business, and they were not inclined to be bothered with the annoyances of meeting rigid Government specifications and inspection standards. The Office of Production Management, while it looked favorably upon subcontracting as an important production technique and while it established the Defense Contract Service to promote this technique,
found itself somewhat limited by the rather apathetic attitude on all sides.
Today that picture is sharply changed. The program has grown to such proportions that the prime contractors must by now realize that they cannot handle the amount of work involved without farming out an ever increasing proportion of it. The Army and Navy are giving indications that they now consider it necessary to bring into the program a much greater number and variety of industrial facilities than they had heretofore contemplated in anything short of actual war, and those concerns who weren’t so interested in defense work are now faced with serious shortage of materials which leads them to turn hurriedly in search of defense work in some, form or another.
There are certain things the Government can do. It can where necessary alter procurement practices. It can impose certain restrictions in the awarding of prime contracts. It can conduct surveys and studies. It can serve as an agent to bring together the prime contractor and the potential subcontractors.
The main duty is industry’s
But the main burden of this job lies on the shoulders of industry itself. The major work of breaking down a piece of war matériel into its component parts, letting out subcontracts for products, laying out the production lines, planning the schedules, smoothing the flow of materials and parts into the assembly points—that is principally the job of the men who manage and run the plants of America. This responsibility must be accepted and carried through by them. By carrying through I mean for instance that the responsibility of a prime contractor who engages another factory to supply him with parts or assemblies does not end with the signature of a contract. He frequently must work with that subcontractor, to whom the job is probably unfamiliar, must assist him in working out his production problems, give him the benefit of his experience, and, if necessary, lend him personnel. We shall only achieve our maximum output by the way which is familiar in this country— by individual enterprise, initiative, ingenuity, cooperation, and effort—more effort—and these in larger doses than ever before.
Emergency lake fleet of 25 ore boats urged by OPM to Maritime Commission
Construction of an emergency Great Lakes fleet of 25 iron ore boats at an estimated cost of $50,000,000 was recommended to the Maritime Commission August 18 by the Office of Production Management.
Production Director Biggers advised the Commission that the boats would be needed to transport ore for the 6,508,950 tons of additional annual pig iron capacity which the OPM recommended recently.
Urgently needed for defense
In a letter to Admiral E. S. Land, Chairman of the Maritime Commission, Mr. Biggers said:
“It is essential that the construction of these boats be completed at the earliest possible date and we cannot emphasize too strongly their urgent need in the defense program. The highest possible preference ratings should be arranged for these boats so that all materials will be available as rapidly as needed.”
In case the OPM subsequently approves a major over-all expansion of the steel industry, such as it now has under consideration, an additional and larger ore boat program will be necessary.
The boats covered by the current recommendation would have a net carrying capacity of 12,000 to 13,000 long tons each. Their combined yearly capacity, on the basis of 30 trips per season, is estimated at 8,750,000 long tons or 9,800,000 net tons.
Would burn coal
They would be approximately 600 feet long and 60 feet wide, with a speed of 11 to 11% land miles per hour loaded and 12 to 13 land miles per hour light, and would be equipped with triple or quadruple expansion steam engines using coal for fuel.
It is planned to have the fleet built by the beginning of the 1943 navigation season.
★ ★ ★
1,460 PLANES IN JULY
The Office of Production Management announced August 12 that military aircraft manufacturers delivered 1,460 airplanes during July.
August 19, 1941
★ DEFENSE ★
5
Proposals for 12,000,000-ton increase in annual ingot capacity answer OPM’s call
Proposals for an increase of more than 12,000,000 tons in the steel industry’s annual ingot capacity have been received thus far by the Office of Production Management in response to its recent request that producing companies submit expansion plans.
This was disclosed August 14 at a meeting of the steel defense industry advisory committee with officials of the OPM and other interested Government departments and agencies.
Other companies preparing plans
In addition to the expansion proposals already received, several companies are just now preparing programs.
Further, additional proposals to expand Bessemer steel capacity are expected and the OPM will ask makers of alloy steels shortly to submit further alloy steel expansion programs.
Expansion of Bessemer capacity has been proposed as a means of maintaining and increasing steel production despite a shortage of scrap iron and steel. Steel made in Bessemer converters requires very little scrap.
Additional proposals to install electric furnaces for the production of alloy steel will be requested because the expansion programs submitted thus far do not include sufficient facilities of this type to meet all prospective requirements, especially those for aircraft, military vehicles and other phases of the defense program.
Expansion steps recommended by OPM
Expansion steps already recommended by OPM were summarized as follows:
1. Armor plate and heavy forging facilities at the Duquesne and Homestead, Pa., plants of the Carnegie-Illinois Steel Co. to speed up the naval building program.
2. An initial expansion of approximately 6,500,000 tons in annual pig iron capacity.
3. Installation of a 780,000-ton high speed plate mill at the Sparrows Point, Md., plant of the Bethlehem Steel Co.
Report on proposals in 2 weeks
A report on the other pending expansion proposals, including recommendations as to what action should be taken regarding them, is expected to be completed within 2 weeks.
Capacity for finishing aircraft steels must be doubled, conference indicates
Capacity for finishing aircraft and other alloy steels probably will have to be doubled to meet requirements of the defense and lend-lease programs, it was indicated August 12 at an informal meeting of Government officials with steel and iron company executives.
The group discussed various phases of the program being developed by the Office of Production Management to expand capacity of the steel industry generally.
Quick expansion desired
There was general agreement that expansion of facilities for finishing aircraft tubing and other alloy steel required by the Army and Navy should be undertaken as quickly as possible. Another group of steel men interested particularly in this problem will confer with interested Government officials early next week in an effort to get this program under way in the very near future.
Air conditioning of blast furnaces as a means of increasing pig iron production quickly, and thus helping to relieve the existing shortage of pig iron, was another subject discussed on August 12. It is expected that blast furnaces in the Birmingham, Ala., area will be air conditioned rather generally, atmospheric conditions in that section making such a step clearly advisable. Air conditioning equipment also may be installed at some blast furnaces at the Sparrows Point, Md., plant of the Bethlehem Steel Co., the Inland Steel Co.’s plant at Chicago, the Jones & Laughlin Steel Co.’s plants in the Pittsburgh area, and possibly at other mills in the Pittsburgh region.
These installations would be experimental, to throw further light on the advisability of air conditioning in the areas mentioned. Jones & Laughlin has had a favorable experience with initial installations.
Conditioning successful in Birmingham
The meeting was told that air conditioning, by reducing and controlling the moisture content of air blown through the blast furnaces, has increased pig iron production of some furnaces in the Birmingham area an average per year of 7 percent or more: Experience with scattered existing installations in the North has varied widely, it was said, and additional experimentation is desirable there.
In addition to representatives of OPM’s Steel Branch, the Army and Navy and the Office of Price Administration and Civilian Supply, those present included: Quincy Bent, vice president, Bethlehem Steel Co., Bethlehem, Pa.; H. A. Berg, president, Woodward Iron Co., Woodward, Ala'.; W. B. Gillies, vice president, Youngstown Sheet & Tube Co., Youngstown, Ohio; J. E. Lose, vice president, Carnegie-Illinois Steel Corporation, Pittsburgh; F. B. Lounsberry, vice president, Allegheny Ludlum Steel Corporation, Watervliet, N. Y.; G. E. Rose, president, Wisconsin Steel Co., Chicago; Wilfred Sykes, president, Inland Steel Co., Chicago; C. M. White, vice president, Republic Steel Corporation, Cleveland; and Willard S. Haring, vice president, Alan Wood Steel Co., Conshohocken, Pa.
Shoe and leather steering committee formed
The Bureau of Clearance of Defense Industry Advisory Committees, OPM, announced August 11 formation of a steering committee for the Defense Industry Advisory Committee for shoes, leather products, hides, skins, and leather.
The following persons are to be members of the steering committee:
Byron A. Gray, president, International Shoe Co., St. Louis; Maxey Jarman, president. General Shoe Corporation, Nashville, Tenn.; J. F. McElwain, president, J. F. McElwain Co., Boston, Mass.; H. L. Nunn, president, Nunn-Bush Co., Milwaukee; F. J. O’Donnell, treasurer-secretary, Jos. M. Herman Shoe Co., Millis, Mass.; Paul C. Smith, vice president. Swift & Co., Chicago; E. L. McKendrew, vice president, Armand Schmoll, Inc., New York City; Carl Danner, president, American Hide & Leather Co., Boston; W. B. Eisendrath, vice
president-treasurer, Monarch Leather Co., Chicago; Claude Nathan, vice president and general manager, Eisendrath Glove Co., Chicago; A. M. Peirce, vice president, Leas & Mc-Vitty, Inc., Philadelphia; E. W. Prevere, tanning materials buyer, Howes Bros. Co., Boston; Joseph W. Holmes, general manager, United Last Co., Boston; J. C. Talbot, supervisor of shoe buying, J. C. Penney Co., St. Louis; Owen W. Metzger, president, Wetherhold & Metzger, Allentown, Pa.; Marcus Rice, merchandise man and buyer, The May Co., St. Louis; H. S. Marlor, president, Footwear Division, U. S. Rubber Co., New York City.
A meeting of the steering committee has been called for August 22, at 10:30 a. m. Harold M. Florsheim and Maj. Joseph W. Byron, both of the clothing and equipage branch, OPM, have been jointly designated as Government presiding officers for the committee.
6
* DEFENSE ★
August 19, 1941
MEDIATION BOARD ...
Davis denies ship recommendation would force men to join union
With no abatement of hearings in sight for its members, the National Defense Mediation Board last week (August 11-17) made recommendations in one case; appointed special agents to investigate issues in two others; reached an agreement in a fourth; obtained an agreement to return to work pending Board hearings in a fifth case, and received certification of two additional cases.
Federal Shipbuilding & Drydock Co.
L. H. Korndorff, president of the Federal Shipbuilding and Drydock Co., on Monday, August 11, released a statement in which he asserted that the Board had recommended a “closed shop.” At the request of Secretary of the Navy Frank Knox, William H. Davis, chairman of the Board, wrote a letter on August 13 clarifying the issue in which he pointed out that the Board had recommended neither a closed shop nor a union shop nor any provision which would compel anyone to join the union.
In a statement issued Saturday, August 16, Mr. Davis pointed out that the maintenance of membership clause which the Board had recommended in this case was widely used in American labor agreements and “gives stability and develops disciplined and responsible conduct.”
“The records of the Mediation Board show,’’ Mr. Davis said, “that the clause is not at all regarded by the Mediation Board as appropriate in all cases. On the contrary, it has been recommended only for special reasons developed by the facts in particular cases. In a majority of the cases in which the issue of union security has been raised, the Board has made settlements or made recommendations which include no union security clause of any kind.
“The Mediation Board was set up to prevent interruption of defense production. It was instructed to and it does explore every possibility of working out a mutually satisfactory agreement by mediation. If despite all effort it fails in mediation, it is instructed to offer the parties voluntary arbitration of any part or all of their dispute. If that fails the Board is authorized to make an investigation with findings of fact and to formulate recommendations for the settlement of the dispute. It has been and will be the purpose of the Mediation Board to make fact findings that are accurate, and recommendations that are fair and just in the light of the facts as they are found in each case. The Board profits by criticism and welcomes enlightened discussion which may help it in its emergency task of substituting reason for force in industrial dis
putes which affect the defense of our country.”
Ohio Brass Co.
After 4 days of hearings, a panel composed of Judge Walter Stacy, representing the public, John Connelly, representing employers, and Clinton Golden, representing labor, made interim recommendations August 14 in the dispute between the Ohio Brass Company, with plants in Mansfield and Barberton, Ohio, and the United Electrical, Radio and Machine Workers of America, CIO. The recommendations provided for the return to work of 600 employees of the company at the Barberton plant where they had been on strike since June 10.
On the opening day of the hearing, the National Brotherhood of Operative Potters, AFL, claimed a majority in the Barberton plant and filed a petition with the National Labor Relations Board for certification. The UERMWA, which had been certified by the N. L. R. B. as the sole bargaining agency 2% years ago, has been attempting to negotiate a contract with the company ever since.
The Mediation Board recommended that this question of appropriate bargaining agency be disposed of by the N. L. R. B. and that in the meantime the men return to work. The Board also recommended that any wage increases later negotiated with whatever union is certified be made retroactive to the day the men return to work.
The company employs 700 workers at its Mansfield plant and 600 at the Barberton plant making bushings for transformers and generators, and suspension insulators for the Bonneville Power Administration. It has a $300,000 contract with the Ordnance Department of the Army at Mansfield.
Consolidated Edison Co. of New York
The hearings on the dispute between the Consolidated Edison Company of New York and the International Brotherhood of Electrical Workers, AFL, was adjourned for two weeks on August 15, after two days of hearings. The adjournment was called to give a special representative of the Board an opportunity to investigate the issue in dispute and to make findings of fact. The Board appointed Arthur S. Meyer, chairman of
the New York State Board of Mediation, as its representative. Hearings before a panel made up of William H. Davis for the public, George Mead for employers, and George Lynch for labor will reconvene in two weeks to consider Mr. Meyer’s findings.
The dispute arose over the question of whether certain electrical construction work for the company should be done by the IBEW or by regular employees of the company. All 6,500 electrical construction workers in New York City went on strike July 29 to enforce the union’s demands. The strike was called off after the case had been certified to the Mediation Board.
Todd Galveston Drydocks, Inc.
On August 15, hearings were begun in the dispute between the Todd Galveston Drydocks, Inc., of Galveston, iex., and the International Brotherhood of Boilermakers, Iron Shipbuilders and Helpers of America, AFL, and the Galveston Metal Trades Council, AFL, where a strike since July 15 had been called off at the request of the Board. The issues in the case were a written agreement and union security. The next day, August 16, an agreement was reached before a panel consisting of Walter T. Fisher as public member, Rolland Hamilton as employer member, and James Wilson as labor member. The terms of the agreement, which is subject to union ratification, were not made public.
The company employs 1,850 men for ship repair work and several ships are in the yard at the moment for repairs that had been held up by the strike.
Lincoln Mills
The recommendations of the Board in the dispute between the Lincoln Mills, Huntsville, Alabama, and the Textile Workers Union of America, CIO, were not made public, but a special agent has been appointed to investigate the wage question and report to the Board. The agent, Mr. Francis Goodell, an industrial engineer from Washington, D. C., is now in Huntsville for this purpose.
John A. Roebling Sons Co.
The hearings in the dispute between the John A. Roebling Sons Company and the Steel Workers Organizing Committee, CIO, reconvened on August 11 and are still going on. The parties are now bargaining collectively with no panel members present.
August 19, 1941.
★ DEFENSE ★
7
LABOR ...
Meetings held in three cities to seek defense reemployment
Associate Director General Hillman announced August 15 that representatives of 15 major defense firms and 15 labor leaders from the Philadelphia area would meet with OPM officials in Philadelphia August 19, to take up the problem of providing employment for displaced workers from the silk industries and for other workers in plants whose operations have been curtailed by defense priorities.
OPM Labor Division officials expected the conferences to formulate an inclusive program of reemployment, retraining for defense industries, and registration with State Employment offices of all qualified workers for job-openings in that area’s defense plants. Preliminary surveys indicate expanding defense industries will soon need as many or more workers than are being displaced, and hence the task is largely to match men to jobs.
Many nondefense manufacturing plants in the area are likely to have to
curtail operations, soon because of the defense program’s need for their raw materials, notably copper, one of the most widely used of metals.
Reemployment and retraining activities are already under way in this area, along with a program to keep the silk mills operating with American yarns, and the conference Tuesday was expected to explore means of expanding these activities, along with the possibilities of “farming-out” subcontracts of defense awards to the smaller factories.
This is the third industrial area into which Mr. Hillman has moved to find jobs for workers displaced by effect of the defense program. The first was in Tonawanda, N. Y., where employes of the Chevrolet plant were laid off to permit the plant to convert to airplane engine production. The second was in Cleveland, Ohio, center of the Ohio-Wisconsin aluminumware industry, where thousands of workers have been laid off because of shortages in aluminum.
War, Navy, and Maritime Commission contracts forbid labor discrimination
Appointment of Lawrence Cramer of New York, former Governor of the Virgin Islands, as executive secretary of the President’s Committee on Fair Employment Practice, was announced August 12 by Mark Ethridge, chairman of the committee.
The committee was created by Executive order on June 25, and its members were appointed July 23. The order charged it with receiving complaints of discrimination in defense employment because of “race, creed, color, or national origin.”
Contracts guarantee equal chance
Mr. Ethridge also announced that War, Navy, and Maritime Commission officials, in response to a committee request of July 31, were conforming with the President’s executive order by inserting a provision in all future contracts binding the contractor against discriminations. Cramer will consult with government officials to work out means of enforcing this provision.
Mr. Ethridge’s committee received from Robert C. Weaver, head of the Negro Employment and Training Branch of OPM’s Labor Division, a report that 27 big defense contractors have changed their employment policies with regard to minority groups since the President issued the order. Eleven of these firms make military plane parts and equipment.
Ethridge said discrimination charges were widespread enough to justify hearings which Cramer will arrange in the near future. These will be held on the Pacific Coast, in the Midwest, in the East and Southern States, with the purpose of discovering the extent and character of present discriminations, and determining the basis of subsequent action.
Members of the committee, in addition to Chairman Ethridge, are William Green, AFL, Philip Murray, CIO, David Sarnoff, Radio Corporation of America, Earl Dickerson, Chicago attorney, and Milton Webster, vice president, Sleeping Car Porters Union.
Rayon pool opened to nonhosiery use; OPM, OP ACS seek distribution formula
Through an interim amendment announced August 16, rayon yarn producers are permitted to release immediately to former silk users, other than hosiery manufacturers, a substantial amount of the rayon yam accumulated under the recent allocation order of the Office of Price Administration and Civilian Supply.
The allocation program required rayon yarn producers to set aside one-tenth of their daily output and stocks on hand. Of this, 70 percent was earmarked for hosiery manufacturers and 30 percent for other users of silk and for rayon weavers upon whom the program might impqse undue hardship. The amendment, which is effective only until midnight of August 31, 1941, allows rayon yarn producers to sell at once half of the 30 percent thus pooled to manufacturers, jobbers, or converters other than hosiery manufacturers whose products had been made largely or wholly of silk.
Permanent formula sought
During the stopgap period between now and August 31, the special joint commodity section on silk set up by OPM and OP ACS will review the entire problem centering about the use of rayon, with a view to evolving a permanent formula for equitable distribution of rayon yarns.
The present amended program does not contemplate any further governmental action as a prerequisite to the sale of the rayon yam involved to the classes of purchasers mentioned. If orders received as result of the amendment exceed the amount of yarn so set aside, producers of rayon yam are to use their own judgment in deciding what orders to fill, until such time as further programs are announced.
Equitable treatment asked
However, the special joint commodity section urged, after meeting representatives of silk-using industries, that rayon makers distribute sales as equitably as possible. The section also asked that each buyer of rayon restrict his purchases to amounts not in excess of current needs and not buy, from all sources combined in any one week, more yarn than the approximate equivalent of the weekly average amount of silk or rayon, or silk, nylon or rayon combined, used by him during June and July 1941.
8
★ DEFENSE ★
August 19, 1941
PRIORITIES ...
Revised, expanded critical list contains over 300 items and classes
A revised Priorities Critical List was issued July 14 by the Priorities Division, OPM.
The list contains over 300 items and classes of items on deliveries of which Army and Navy contracting officers may assign preference ratings.
Except for certain specified items which are subject to industry-wide control by the Priorities Division, most of the materials which appear on the list are subject to priority control only in the sense that Army and Navy orders for these items may automatically be assigned preference ratings.
PRIORITIES CRITICAL LIST
(As revised to: July 7, 1941)
Parts and accessories.—The Items that appear on this list shall be deemed to include all fabricated, mechanical or electrical component parts and accessories necessary for the completion, maintenance or mechanical operation thereof, excluding raw materials unless specifically included in the list.
Supervision.—It should be carefully noted that all copies of preference rating certificates authenticated by the two services are reviewed by the Priorities Division and erroneous use of this list will result in cancellations of certificates by the Priorities Division.
Allocation.—Material which has been subjected to industry-wide control and allocation by the Priorities Division will be governed by specific orders from the Priorities Division which may to some extent modify the effect of preference ratings previously issued. Items indicated by a (1) are those which to the date of this edition have been subjected to allocation by the Priorities Division.
New items.—Italicized items on this list are those which appear for the first time with this edition.
Metals.—It will be noted that all metals except a few precious ones are now covered by this list.
Revision.—This list is subject to revision once each month. In order to receive consideration at the time of making any monthly revision, requests for additions, subtractions or modifications must be received by the Priorities Committee of the Army and Navy Munitions Board or the Director of Priorities of the Office of Production Management on or before the fifteenth day of the preceding month.
List of materials
Acetone; aiming circles; aircraft—all types Including lighter-than-air, complete; aircraft detection equipment; aircraft laboratory and test equipment; altimeters—all types; aluminum and aluminum alloys (pig or fabricated) ;¹ ambulances (service specification); ambulance boats; ammonia, anhydrous; ammunition (small arm and large caliber), all types; angledozers—tractor powered; anti-aircraft equipment; antimony;
armour plate; auger—earth (power); autoclaves (laboratory)—field and hospital.
Bags—barrack, sea, cantie, powder, sterilizing water, sleeping; balloon—observation or barrage; barges; barometers; batteries— radio, ship, fire control; battery chargers— portable; bearings—roller and ball; belt— ammunition link, cartridge; binaural trainers; binoculars—monoculars, spy glasses, field glasses, spotting glasses; blankets— wool; boards—deflection, fire adjustment, plotting (all types), range correction, spotting, chart; boats—aircraft rescue, picket, crane, assault, ambulance, Eagle, landing, motor torpedo, utility (QMC and AC), subchaser, target (armored) , motor launch, radio control, lighters, D. B. (distribution box); boilers—power plant, heating; bombs; bombing training and target assembly; booms; borax;¹ boric acid;¹ box — ammunition; brass—pig and fabricated; bridges—foot (all types), steel (portable), pontoon (all types); bronze—pig or fabricated; bull-dozers— tractor powered.
Cable, electric and telephone, all kinds Including assemblies; cable, balloon barrage; cadmium; calibration sets, bomb sight; optical elements for; calipers, micrometer; cameras—aeronautical, gun, triangulation, motion picture, and still; camera control—gun; candles—chemical; canisters—service, diaphragm, optical; caps—field and winter, watch; carts—hand drawn, reel, chemical mortar, ammunition, weapon; case—inspectors, navigation, pilots, bombardiers; castings—brass (over 150 lbs.), aluminum; catapult—aircraft; charger—-gun (hydraulic); chemicals—chemical warfare, explosives, medicinal; chest—service types; chlorine; chromium;¹ cipher devices and machines; cloth—rubberized, wool, dark blue melton or kersey, O. D., flannel, cotton, twill, wind resistant, khaki; clothing—flying, chemical protective, uniforms, hospital, mechanics, laboratory; cobalt; coils—service specifications; combat vehicles; compressors (air) — power driven; computers—intermediate and major calibers, time and distance, line of position, aerial dead reckoning, time conversion, altitude correction; condensers, steam— radio, electrical; cone assembly 6” metrogon lens; containers—galvanized, portable refrigerated; control equipment for electric motors, automatic; cooking outfit—mess and field copper—pig fabricated;¹ cordage and twine—hemp, jute, oakum, abaca, sisal, henequen, flax, silk, cork; ¹ corrector—percentage, fire control; cotton—canvas duck, webbing; cotton linters; cranes; cresols—cresylic acid (meta-para, B. P. 200-210 C; less than 2% ortha); cutters—wire, and carriers (special service types); cylinders—chemical (portable) ; compressed gas or air.
Demustardizing equipment—chemical warfare; diamond point tools; dies—forging; diamond; diesel engines, all types; distribution boxes; diving apparatus; drawers— woolen, half-wool, half cotton; drydocks— floating.
Energizers—aircraft electric; engines, internal combustion and steam, for ship propulsion; explosives, Including chemical components.
Ferrous alloys, all types; fibre—abaca, sisal, henequen, hemp, flax, cotton linters, jute; finders—radio direction, height, depression position, vertical view, range; fire control instruments and equipment; fire prevention and fighting equipment, all types; flares; flashlights (service types); flash ranging set; floodlighting equipment; flying equipment;
forgings—brass, aluminum; formaldehyde; frequency meter set, radio; fuel—aviation, Diesel, 50 cetene number and up; furnaces— heat treating electric; fuzes and primers; fuze-setters.
Gages, inspection; gas—decontamination apparatus and equipment, masks; gases— chemical warfare; gastight doors and frames; generating units, service types; generators, electrical and motor dynameters, including N. E. M. A. standard types, meeting A. I. E. E. specifications and rules; glasses—field, spotting, binoculars, spy, monoculars; gloves— leather, wool; goggles (service types); grader, road: self-propelled; grenades; guns—all types and calibers (including carriages and mounts), limbers, and caissons.
Halowax (plasticized chlorinated naptha-lene) for insulating wire; hammers, power driven; head and chest set: communication; height finders; helmets (service types); hexamethylene tetramine; hoist—ammunition; hoists power or hand; howitzers—all types and calibers, with limbers, caissons, carriages, and mounts.
Impregnite (I and S); insignia—uniform; instruments—battery commander, electrodiagnostic, observation optical (all types—complete), stereoscopic training; surgical and dental, surveying, aximuth and aximuth mills, self-synchronous (engine), drafting; Insulation, steatite; interphone equipment: (aircraft, vehicular); iridium; iron and steel products, including rolled, drawn, forgings, castings, and pig iron including alloy steels; insulating, fire, brick.
Jigs and fixtures.
Kits—first aid, repair (C. W.), toilet.
Laboratory equipment—hospital and field; lamp equipment—signal; lead; leggings— canvas; lenses requiring grinding except eyeglasses; lighters and barges; lighting equipment—electric (portable), service types, hangar, flying field; locators, sound—antiaircraft (CAC); lockers—steel; locomotives— diesel, gasoline, electric; lubricant—diesel engine, special “RPM-Delo” or equivalent.
Machine, blasting; machine guns — all types and calibers with mounts, sights, and tripods; machine and metal-working tools;¹ machines — addressing and duplicating all types, including plates (except aluminum), type, platemaking equipment; machinery— forging, power-driven, for casting, cutting, grinding, hoisting, melting, metal pressing, welding, refrigerating; magazines—small arm ammunition; manesium and alloys—pig or fabricated;¹ manganese or spiegeleisen; mapping equipment—service types; marker beacon receiving equipment; masks — gas, oxygen; mattress, all types; megger insulation testing sets; mercury; mess outfits— field, barracks, ship; meter sets—frequency (seacoast); meters—electric, drift, methanol; mines—antitank, drifting or anchored; mine equipment—submarine; mine planters and yawls; mirrors: magnifying; molybdenum; monel metal; mortars—all types and calibers with carriages, mounts; motion-picture projection and sound equipment; motors electric, except fractional horsepower; motors for pontoons; motorcycles—solor or side car (service types);
Naphthaline; neatsfoot oil; neoprene;¹ nets — antisubmarine, camouflage; nickel alloy steel;¹ nickel—pig or fabricated; nonferrous alloys, all types;
Oakum, marine; octant—bubble type; oil— castor and fuel (Diesel 50 ceteme and up); optical elements and instruments; oxygen manufacturing unit, portable.
Packing, flax; paper. Chart; parachutes— service types; phenol; photographic laboratory equipment, aerial and ground; phythalic anhydride; plates multilith, zinc; polyvinyl chloride (and co-polymers containing at least 90% vinyl chloride) plasticized or unplasticized; ¹ pontoon equipment; potassium
August 19, 1941
★ DEFENSE ★
9
perchlorate; potassium permanganate; projectors—signal (ground); pumping sets, all types; purification unit—water; Pyrotechnics—service types.
Radio-apparatus (sending and receiving)— all types; radio direction finders; radiosondes and equipment; range—field, complete with equipment; rangefinders; ranging equipment—sound; reels, firing; remote control equipment, for guns and searchlights; reproduction equipment—map (all types); repurification plant, helium (portable); resistors, electrical for vessels; rifles—magazines, machine, automatic, semi-automatic; rubber, synthetic—rubberlike synthetic materials; rubber: raw, processed, and fabricated.
Saddle—pack (cargo and riding); scabbard—small-arms; scale—prediction; scrapers—tractor drawn; searchlights; searchlight control instruments; sextants, navigation; ships—all types, complete; ship plates and shapes (see iron and steel products); sights and related equipment; silk, parachute; small arms—all types and calibers; smoke—-toxic, and equipment for use; smoke screen apparatus; socks—woolen, cotton-wool; sodium hydro sulfite; sodium suifoxalate; sound equipment—underwater; sound locators— antiaircraft; sphygmomanometers; splint surgical; spotting sets; steel, semi-finished, finished and fabricated, including alloys; * stereoscopes—all types; stereoscopic testers; sterilizers^ hospital and field; stoves, tent; submarine mine cable—steel; submarine safety and escape devices; switchboards, power complete assembly; synthetic resin moulding powders.¹
Table (plotting); tags—identification; tanks—cartridge; combat, all types and models, powder; targets, tow; telegraph sets (service specifications); telephones—all special service types: radio, and equipment; tents, service types; testing outfits, boiler water; theodolites; thermometers, industrial; thermostatic controls for refrigeration and air-conditioning machinery; time interval apparatus; tin; tools; hand, precision; portable, power driven; special engine; torpedo; torpedoes; tractors—military; trailers—2, 4, and 6 wheel, assorted; bomb; trainer—binaural, stereoscopic; instrument flying and landing (ground); transformers, electric; trlcresyl phosphate (less than 17° ortha); trucks— motor (all special service types), electrical Industrial; tungsten, ferro tungsten and tungsten ore;¹ tungsten carbide; turrets, gun.
Underwear—half cotton, half wool.
Vanadium and vanadium alloys; vehicles (service types); vest, life preserver.
Watches, service types; welding rod; whet-lerite; winch, balloon; wire—service types (see cables; field (S. C.)); for electrical instruments.
X-Ray equipment; medical, industrial.
Zinc;¹ zinc hydrosulfite.
¹ Subjected to allocation by Priorities Division.
² Steel products are covered by a special order requiring preferential treatment of defense orders and permitting users to file a formal complaint of any inability to obtain delivery or place orders. Nickel alloy steel and Tungsten alloy steel are subject to industry-wide control.
★ ★ ♦
ORE MOVEMENT
Reports from the four principal ore-handling railroads through the week ended August 9 showed that they have loaded into boats at upper lake ports this season a total of 42,152,892 gross tons of iron ore.
New section to consolidate compliance, field and inventory control activities
Creation of a new Compliance and Field Section within the Division of Priorities, to consolidate and coordinate the program and activities of the compliance section, the priorities field service, and inventory control, was announced August 13 by Priorities Director Stettlnius.
The new control section will be headed by L. J. Martin, assistant deputy director, and will combine and handle all the functions hitherto performed separately by the operation units named.
Working with Mr. Martin as senior consultant will be E. C. Laird, Jr.; and J. H. Ward will be assistant to Mr. Martin. L. Edward Scriven will direct operations of the compliance unit and the field service organization Mr. Ward, Mr. Laird and Mr. Scriven are assistant deputy directors.
Manghum heads education unit
Mason Manghum will head an industrial contact and education unit of the new section.
Offices aid producers
Under the direction of Mr. Scriven, who will continue to direct activities in Field Offices, the following offices have already been opened: Boston, New York, Philadelphia, Atlanta, St. Louis, Kansas City (Branch of St. Louis),'Chicago, Cincinnati, Cleveland, Denver, San Francisco, Pittsburgh, Dallas, Detroit, Los Angeles, and Seattle.
Complete facilities have been provided in each of these offices for assisting producers and manufacturers.
The district offices also are to be used by all of the industrial branches and commodity sections of OPM for checking inventories or for any other special work in connection with priorities.
Mr. Manghum, in supervising the work of the industrial contact unit, is arranging a series of regular priorities training courses for businessmen and for members of their staffs who have been assigned to priorities matters.
2 percent of September pig iron to be pooled for urgent needs
Priorities Director Stettlnius on August 14 instructed all producers of pig iron to set aside 2 percent of their production during the month of September in a pool out of which allocations can be made to fulfill urgent needs.
The 2 percent pool for September will amount to between 90,000 and 100,000 tons.
★ ★ ★
Iron, steel, other products removed from Order No. 1
Iron and steel products, aluminum scrap, ferro tungsten, ferro-chromium, and calcium silicon have been removed from the Inventory control exercised by General Metals Order No. 1, Priorities Director Stettlnius announced August 14.
Because these Items have been placed under Industry-wide priority control in a series of orders which include prohibition of excessive inventory buying, the amendment to the General Metals Order was Issued.
Preference given to makers of light and medium tanks
In order to expedite production of light and medium tanks, Priorities Director Stettlnius issued August 12 two preference rating orders on behalf of 3 Government arsenals and 11 manufacturing companies engaged in 100 percent defense work. The orders assign priority ratings of A-l-d to medium tank requirements and A-l-f to deliveries for light tank production.
The light tanks carry 37 mm. and .30-caliber guns and are used for scouting and mopping up operations. The medium weight tanks with their heavier armament of 75 mm. and 37 mm. weapons, are designed for breaking through enemy lines, and for antitank and antiartillery activity.
Issuance of the priority ratings was made necessary by a greatly stepped-up production schedule which doubles previous estimates of tanks to be ready by the middle of 1942.
These orders greatly simplify the acquisition of essential materials and products by manufacturers of tanks and of the motors, guns and other equipment needed for them. The preference ratings they make available may be extended by the prime contractors to their suppliers and subcontractors.
10
★ DEFENSE ★
August 19, 1941
Vanadium under full priority control; shortage of 2,150,000 pounds indicated
Vanadium has been placed under full priority control in an order signed by Priorities Director Stettinius.
The order assigns a rating of A-10 to all defense orders for vanadium to which this rating or a higher one has not been specifically granted, and requires the acceptance of such orders in preference to nondefense orders.
Vanadium has been subject to inventory control provided by General Metals Order No. 1, issued May 1, 1941, from which it is now removed. The new order requires that after September 1 a manufacturer wishing to purchase vanadium must file a statement of the uses to which it is to be put, not later than the 25th of the month preceding that of the specified delivery.
Restrictions on deliveries
It also restricts deliveries to an amount not in excess of that necessary to a manufacturer to fill his orders on the basis of his current method and rate of production. This restriction does not apply to exports licensed by the Administrator of Export Control, or to vanadium imported by a processor.
Apparent domestic consumption of vanadium in 1940 was approximately 3,000,000 pounds. The current rate of production would indicate that 3,750,000 pounds in finished form will be made available in 1941 as against an estimated need of 5,900,000 pounds for the year. Requirements for 1942 are expected to reach 7,150,000.
Pulp and paper committees named
Formation of three divisional committees which later will be subcommittees of an over-all pulp and paper defense industry advisory committee was announced August 16 by the Bureau of Clearance of Defense Industry Advisory Committees, OPM.
N. A. McKenna, of the Division of Production, has been designated Government presiding officer.
Pulp, paper, paperboard committee
W. J. Alford, president, Continental Paper Co., Bogota, N. J.; D. K. Brown, president and general manager, Neenah Paper Co., Neenah, Wis.; Hugh J. Chisholm, president, Oxford Paper Co., New York City; J. M. Conway, president and general manager, Hoberg Paper Mills Co., Green Bay, Wis.; Douglas Crocker, vice president, Crocker, Burbank & Co. Association, Fitchburg, Mass.; R. J. Cullen, president, International Paper Co., New York City; Sidney Frohman, president and general manager, Hinde & Dauch Paper Co., Sandusky, Ohio; E. E. Grant, president, Crystal Tissue Co., Middletown, Ohio; Ralph Hayward, president, Kalamazoo Vegetable Parchment Co., Kalamazoo, Mich.; Arthur L. Hobson, president, St. Croix Paper Co., Boston Mass.; Amor Hollingsworth, president, Penobscot Chemical Fiber Co., Boston, Mass.; J. W. Kieckhefer, president and general manager, Kieckhefer Container Co., Camden, N. J.; Cola G. Parker, vice president, Kimberly-Clark Corporation, Neenah, Wis.; John L. Riegel, president and general manager, Riegel Paper Corporation, New York City; J. D. Zellerbach, president, Crown Zellerbach Corporation, San Francisco.
Paper products divisional committee
F. C. Ash, treasurer, Sealright Co., Inc., Fulton, N. Y.; Walter J. Bergman, vice president, Lily-Tulip Cup Corporation, New York City; James L. Coker, president, Sonoco Products Co., Hartsville, S. C.; H. S. Dennison, chairman
of board, Dennison Manufacturing Co., Framingham, Mass.; Willard J. Dixon, vice president and secretary, St. Regis Paper Co., New York City; Willard Henry, president, Southern Advance Bag & Paper Co., Chicago, Ill.; Irving Hill, president and general manager, Lawrence Paper Co., Lawrence, Kans.; E. V. Johnson, first vice president, - United States Envelope Co., Springfield, Mass.; George Mellen, general manager, wall paper division, Imperial Paper & Color Corporation, Glen Falls, N. Y.; Vasco Nunez, vice president, Nashua Gummed and Coated Paper Co., Nashua, N. H.; D. H. Patterson, Jr., president, Fiberboard Products, Ihc., San Francisco; J. H. Paterson, general manager, F. N. Burt Co., Inc., Buffalo, N. Y.; C. A. Reed, president and chairman of board, C. A. Reed Co., Williamsport, Pa.; J. Thurston Roche, president. Southern Central Co., Memphis, Tenn.; R. E. Rutledge, vice president, Sutherland Paper Co., Kalamazoo, Mich.
Printing and publishing
Fred Bohen, president, Meredith Publishing Co., Des Moines, Iowa; Donald L. Boyd, Standard Printing & Publishing Co., Huntington, W. Va.; George P. Brett, Jr., president MacMillan Co., New York City; A. L. Grammar, president, Street & Smith Publications, Inc., New York City; J. S. Gray, editor, Monroe Publishing Co., Monroe, Mich.; Leslie H. Jackson, vice president and treasurer, Stecher-Traung Lithograph Corporation, Rochester, N. Y.; Edwin Lennox, president, American Colortype Co., Chicago; James H. McGraw, Jr., president and chairman of board, McGraw-Hill Publishing Co., New York City; Fleming Newbold, vice president and manager, Evening Star Newspaper Co., Washington, D. C.; E. W. Palmer, president, Kingsport Press, Kingsport, Tenn.; Marvin Pierce, vice president, McCall Corporation, New York City; Paul G. Stromberg, publisher, Ellicott City Times, Ellicott City, Md.; S. E. Thomason, publisher, the Chicago Times, Chicago; Elmer G. Voigt, vice president. Western Printing & Lithographing Co., Racine, Wis.; Lee C. Werden, vice president, Cuneo Eastern Press, Inc., of Pennsylvania, Philadelphia.
Producers urged to assign staff priority officers
Priorities Director Stettinius issued a statement August 12 suggesting that manufacturers and producers specifically assign special members of their staffs to handle priority matters.
Many producers and manufacturers have already appointed priority specialists on their staffs to handle priority problems, so that all priority matters can be cleared through one central office.
Mr. Stettinius said:
“As the defense program continues, and as shortages increase in a number of scarce materials, manufacturers and producers will find themselves faced with an increasing number of procedure problems.
“The solution of these problems may be expedited if some member or members of the staff are assigned specifically to the handling of priority problems and procedures.
“If this is done, the manufacturing plant will always have available competent advice, within its own organization, on how priority problems may be handled and expedited.”
★ ★ ★
Order permits processing of silk wet by midnight August 2
Silk processors may continue the processing of any silk the soaking of which was commenced or completed before midnight, August 2, 1941, under the terms of an interpretation of General Preference Order M-22, issued August 9 by Geoffrey Smith, assistant general counsel, OPM.
The interpretation was issued after silk throwsters and other processors, at meetings with the OPM-OPACS special joint commodity section on silk, had expressed some confusion as to the precise meaning of the term “raw silk” in the silk freezing order previously issued.
As amended, the order forbade the processing of raw silk after August 2, 1941. For the purposes of the order, after wetting has started the silk is no longer considered raw. If silk had been wetted down before midnight of August 2, the processing can be carried through. Of course, when it reaches the thrown state it is subject to the restriction that thrown silk can be further processed at no higher weekly rate than that in the week ending July 26.
August 19, 1941
★ DEFENSE ★
11
PRICES AND CIVILIAN SUPPLIES . . .
Prices beginning to react feverishly, control bill is vital, says Miss Elliott
Speaking before the North Carolina League of Municipalities, Durham, N. C., August 15, Harriet Elliott, Associate Administrator in charge of the Consumer Division, OP ACS, declared: “Our best domestic protection against the terrors of a totalitarian economy is a price control plan which will provide that the dollar of the working man, the salaried employee, the farmer and the businessman will still buy a dollar’s worth of goods or services . . . Morale and defense production cannot grow or flourish in an atmosphere where the headlines daily scream “prices going up.”
Excerpts follow:
There will shortly begin in Congress a vital debate. The stage for it is being set in the hearings on the Emergency Price Control Bill in the House of Representatives. The theme of this great debate will be inflation and the way in which this dread disease of money can be controlled.
No more important decision has faced the American people and the Congress since this defense emergency began. Our President, in sending his message to Congress on inflation, said that we stand, as we did in the closing months of 1915 “at the beginning of an upward sweep in the whole price structure.”
Prices show feverish reactions
We are alarmed about the possibilities of inflation at the present time because prices are beginning to show feverish reactions. But that is a symptom and not a cause. If we look for the cause we find something else. A good illustration is furnished by silk hosiery as to how Inflation works.
One morning a few weeks ago we all woke up to find that imports of silk had been cut off. Women practically mobbed the hosiery counters to buy as much as they could afford.
Here you have a true inflationary situation. The supply is greatly diminished. Just as many people are anxious to buy as before. But the goods are lacking. Under those circumstances, unless price controls are exercised by law there will be price rises. Multiply that situation enough times and we will have serious trouble on our hands.
Without additional powers it may be possible to limit price increases to moderate amounts for some months hence in a fairly wide range of commodities produced by a few large prominent corporations. But if a few prices are controlled, and others are allowed to run free, there is obvious inequity and unfairness.
Along with increased employment has gone larger aggregate salaries, wages, and dividend payments. But a lot of things are now interfering to prevent increased production from keeping pace with increased buying power. Manufacturers aren’t getting enough basic materials and in some cases they can’t get skilled labor. When there is a scarcity of raw materials, manufacturers tend to bid up the prices in order to get at least some of the available supply. Retailers likewise are sometimes willing to pay a premium for goods in order to get deliveries. Then consumers rush in and try to buy up everything in sight.
Partial remedies
One of the partial remedies for this situation which is looming up ahead is to Increase taxes on consumers so as to balance the supply of money and the supply of goods. There is also open to all of us a plan of voluntary rationing of our incomes. We can do this by buying defense bonds and stamps with the
DEFENSE SAVINGS STAMPS soon will be on sale in retail stores throughout the country. Secretary Morgenthau announced the program after a meeting at the Treasury Department August 12, when executives of associations representing more than a million stores pledged immediate participation.
The retailers also endorsed “Retailers for Defense” Week, September 15 to 20, when the stores of every State will concentrate their efforts to enlist customers to buy Defense Savings Stamps. Before that time, most stores from coast to coast are expected to have Defense Stamps on sale.
money we would otherwise put into goods that* we can do without.
But valuable as taxes and the buying of stamps and bonds may be in preventing inflation they alone will not do the job. The time has come when we must have a broad and clear statutory basis for effective price control.
The Consumer Division of the Office of Price Administration and Civilian Supply is charged with the job of consumer protection. This price control bill, so modified and amended as Congress may deem necessary, is vitally necessary in carrying out our work of protecting the consumers of this country.
Wage earners and salaried workers constitute the largest single group affected by inflation but its ruinous effects penetrate to all groups and to all kinds of business.
The simple fact is that in the period from 1915 to 1918 while most wage earners received higher wages, they could buy less with them. Actually, their salaries were being whittled away by inflation, in some industries as much as 35 percent. Wage rates, both piece and time rates, characteristically lag behind changes in the cost of living.
Inflation is not only disastrous to consumers but to other sections of our economy. In 1917-18, inflation increased the cost of the war by a sum estimated at 15 billion dollars.
Business not immune
Nor is business immune to the effects of inflation. In 1920-21, the deflation which followed the inflation of the war years forced business firms to write down the value of their inventories by nearly 11 billion dollars.
The farmers have suffered just as heavily as any other group from inflation. The collapse of farm prices which followed the war not only decreased cash farm income and drastically deflated the value of farm'acreage but it also greatly increased the burden of farm debt.
Nor do municipalities enjoy immunity from the dangers which threaten the other groups which I have been discussing. Municipalities are the nerve centers of both our social and political life; they provide transportation, police protection, health protection, communication and fire protection without which modern urban life could not go on. But all of these can be undermined by inflation and the efficiency of city administrations corroded.
12
* DEFENSE ★
August 19, 1941
OP ACS cuts Southern pine lumber prices $3 per thousand board feet
Prices of Southern pine lumber, which stands with Douglas fir at the top of the list of primary construction materials, are reduced roughly $3 per thousand board feet from recent high levels by Price Schedule No. 19 announced August 16 by OPACS Administrator Henderson.
Simultaneously, Mr. Henderson disclosed that ceiling prices for Douglas fir lumber, which is generally competitive with Southern pine, will be established in the near future. A meeting to discuss such a schedule with representatives of the Douglas fir lumber industry has been called by OPACS for August 20 in Portland, Oreg.
Effective September 5
The Southern pine lumber schedule will go into effect as of September 5,1941.
Preliminary to its determination of ceiling prices, OPACS consulted with representatives of the Southern pine lumber industry at a conference on August 6 and subsequently met with numerous individual members of the trade. Discussions similarly were had with Government agencies concerned, including the Procurement Services of the War and Navy Departments; Forest Service of the Department of Agriculture; Federal Works Administration; Department of Commerce; Division of Purchases of OPM; Department of Justice; and the Procurement Division of the Treasury Department.
Cost considered exorbitant
Mr. Henderson stated that lumber prices have been a matter of serious concern to him for almost a year and have occasioned several warnings against unjustified increases. Such stability as these warnings achieved was dissipated in June of the current year, when a new succession of price increases began. Prices of No. 2 common boards advanced from $22 per thousand board feet in July 1940, to $30 per thousand, f. o. b. mill, in July 1941. Today the cost of this and other types of lumber to the general public and to the defense program is exorbitant.
OPACS ceiling action, applied to the present annual scale of lumber buying, means a saving to civilian consumers and to the Government of more than $20,000,000 a year. At the same time the Southern pine lumber industry is accorded a schedule of prices adequate to permit continued profit.
The price schedule applies only to sales from mills or concentration yards. Wholsale or retail yard prices, currently inflated, are expected to fall into line promptly.
“If this does not occur,” Mr. Henderson said, “the ceiling will be extended to cover all wholesale and retail sales.”
Costs of finishing and dressing, as well as expenses of distribution, are reflected in the schedule. Because of this latter factor, it*is expected that mills will continue wholesalers’ margins and other discounts now prevailing. Thus, present industry practices need not be disturbed.
Important to defense
Southern pine, sometimes called yellow pine, includes longleaf, slash, shortleaf, loblolly, and several other species of less importance. Southern pine lumber is employed in all kinds of building construction and has an important use in the defense program, particularly for cantonments and defense housing in the South and East.
About 95 percent of Southern pine is cut in ten States: Alabama, Texas, North Carolina, Mississippi, Arkansas, Louisiana, Georgia, Florida, South Carolina, and Virginia, ranking in importance in that order.
The price schedule recognizes no difference between longleaf and shortleaf pine in the grades and types covered. Long and large timbers, which are usually made of the longleaf variety, are excluded, as are certain other sizes. It is expected that the prices of these sizes will fall into line with the prices for the kinds and grades of lumber included in the schedule. Should this not follow, Mr. Henderson stated, the schedule will be extended to take them in.
Maximum prices are established for siding, ceiling, flooring, finish, boards, shiplap, fencing, dimension, and small timbers.
★ ★ ★
McCormick appointed to OPACS price division
Cyrus McCormick, grandson of Cyrus H. McCormick, inventor of the reaper, has been appointed price executive of the automobile and truck section of OPACS’ price division, Dr. J. K. Galbraith, assistant administrator in charge, announced August 10.
Aluminum scrap schedule changed to aid reconversion
Manufacturers using certain forms of wrought aluminum will be able to make more uniform arrangements for reconversion of their scrap into finished material under a provisional amendment to Price Schedule No. 2, Aluminum Scrap and Secondary Aluminum Ingot, announced August 16 by OPACS.
Heretofore, the price schedule operated to oblige converters to charge a higher conversion fee for some forms of wrought aluminum plant scrap, especially sheet scrap, than for others. As result of the amendment, the same low fee can be charged for all types of wrought scrap, other than forging scrap, thus permitting the converter to reflect his lower costs of handling this type of scrap as compared with the ordinary run of unsegregated material. Provision is made to prevent toll charges from rising out of proportion to the existing prices for scrap and ingot.
Plan is to reduce degrading
To obtain the benefit of the amendment, wrought aluminum scrap, excluding forgings, must be segregated as to alloy and delivered by the make of the scrap to a processor for reconversion into material similar to that from which the scrap was derived and , pursuant to a written agreement for the return of an equivalent amount of refabricated material. Further, the toll agreement must be approved by the Director of Priorities.
★ ★ ★
Prices for lead scraps soar; hoarding hampers output
Prices of lead scraps have risen to a point where their normal relationship to the price of virgin lead has been lost and some hoarding of scrap is taking place apparently in anticipation of even higher prices, OPACS Administrator Henderson announced August 16.
“Most collectors and dealers are cooperating by turning over their scrap rapidly, a course that must be continued if unnecessary dislocation of the smelting and fabricating branches of the industry is to be avoided,” Mr. Henderson said.
“We cannot permit the ‘ output of essential lead products to be hampered by hoarding. Should ceiling action by my office become necessary, the maximum prices imposed will be considerably below current levels.”
August 19, 1941
★ DEFENSE ★
13
Ceiling on pig tin, 52 cents for Grade A, imposed to meet price inflation
Moving to meet the inflationary situation in tin prices created by concern over shipments from the Far East, OP ACS Administrator Henderson, issued a price schedule August 15 establishing a ceiling price of 52 cents a pound on “Grade A” pig tin and lower prices for certain other grades.
Tin is widelyused as a plating and alloying material in production of both armaments and civilian goods. The price, therefore, has an important bearing on cost of both the defense program to the Government and of consumer goods to the public generally.
Establishment of a maximum price is in line with the warning issued by Mr. Henderson on July 28 to the effect that a price ceiling might be set in the near future. At that time tin prices had moved up from around 53 cents to 55 cents a pound after rising gradually from the buying level of 50 cents established
by the Metals Reserve Co., an RFC subsidiary.
Differentials for various grades
The price schedule, which was prepared after discussions with trade representatives, establishes differentials for various grades of pig tin, for freight rates from various points of shipment, and for sales in lots of less than 5 gross tons. The latter differentials are intended to facilitate continued distribution of tin through jobbers to small consumers.
The schedule also provides for exemptions, under various restrictions, for firm commitments entered into prior to August 16, 1941, for sale of pig tin at prices higher than the maximums.
The schedule does not establish maximum prices for special shapes, such as small tin bars and tin anodes, but makers are expected to continue to sell them at not more than their customary and normal premiums over pig tin.
Mercury supply above consumption, prices expected to go down, Henderson says
There is every prospect that presently quoted prices for mercury, about $192 a flask, will be forced down in the near future by substantially augmented supplies that have become available to civilian users of the metal, OP ACS Administrator Henderson announced August 15.
“Prices quoted currently are completely out of line,” Mr. Henderson said. “In my opinion there is no reason for any private buyer to pay present prices. They should be readjusted to substantially lower levels, reflecting the new supply situation.”
The entire Mexican output of over 2,000 flasks a month is now accruing to the Government’s stockpile and domestic mines have been relieved for the present from their obligations to add to the .Government’s supplies. This has released several hundred flasks a month for civilian consumption and available supplies have been increased further by additional domestic production.
This change in what had been a tight situation has operated- to increase supplies to a point above the current rate of consumption, Mr. Henderson stated.
The OPACS administrator suggested that anyone compelled to pay the high
current prices for his legitimate requirements of mercury should communicate with his office giving full information as to the nature and amount of requirements; use to which his product ultimately will be put; stocks on hand; prices quoted to him for mercury, and prices quoted by him for his finished product.
★ ★ ★
Liquidation asked for open exchange positions in rubber
Liquidation of open positions in rubber on Commodity Exchange Inc., New York, at prices prevailing at the close of that day’s trading was requested August 12, by OPACS Administrator Henderson, in a telegram addressed to the Board of the Exchange.
Since rubber dealers are no longer permitted to enter into purchase contracts in the Far East for their own accounts, the rubber futures market is no longer needed for hedging purposes, Mr. Henderson pointed out. For this reason, the Board of the Exchange since June 23 has prohibited all trading in rubber except for the purpose of settling contracts that were open on that date.
20 waste paper users agree to limit prices in bids
Twenty companies operating plants in the New York area and consuming large quantities of waste paper have agreed individually with the Office of Price Administration and Civilian Supply not to bid more for the three low grades of waste paper used in their manufacturing processes than the “New York” prices settled upon by OPACS and waste paper dealers at a meeting on July 25, 1941.
These prices, which continued quotations that prevailed on June 16,1941, are $11.50 per ton for No. 1 mixed paper; $13 per ton for No. 1 baled news; and $16.50 per ton for used corrugated boxes; all f. o. b. cars, New York.
The agreement on bids went into effect as of 2:30 p. m., Friday, August 8, 1941, and will continue in force until October 1,1941, when existing arrangements with waste paper dealers expire. The manufacturers were to adjust any open contracts immediately and to receive no tonnage against such contracts after 7 a. m., August 11, 1941 except in conformance with their agreements.
Less for truck deliveries
Parties to the new agreements include producers of paperboard, celotex, building paper and roofing felt as follows: Robert Gair Co., International Paper Co., United Paperboard Co., Certain-Teed Products Corporation, Flintkote Co., Barrett Co., Fort Orange Paper Co., and Johns-Manville Corporation, all of New York City; National Folding Box Co., and New Haven Pulp & Board Co., both of New Haven; Federal Paper Board Co., Inc., Bogota, N. J.; Robertson Paper Box Co., Montville, Conn.; Clifton Paperboard Co., Clifton, N. J.; Celotex Corporation and United States Gypsum Co., of Chicago; Container Corporation of America, Philadelphia; Schmidt & Ault Paper Co., York, Pa.; Continental Paper Co., Ridgefield Park, N. J.; McEwan Bros., Inc Whippany, N. J.; and Kieckheser Container Co., Camden, N. J.
After a field investigation, OPACS has determined that differentials below the maximum prices for the three low grades of waste paper are warranted in the case of deliveries by truck, as against shipments by railroad cars. Hence, in the case of sales where delivery is made f. o. b. truck, the price to the buyer is 50 cents a ton less than the maximum price stipulated for each grade of waste paper under these agreements. Brokerage fees are to be absorbed by the seller and in no case are to be added to the selling price.
14
★ DEFENSE *
August 19, 1941
Reports of stocking price rises pour in; pay no more, Miss Elliott counsels
Harriet Elliott, Associate Administrator of OPACS, said on August 10 that many retailers and wholesalers of hosiery and other silk products had been taking advantage of the prospective shortage to gouge the public with unjustified price increases.
“Many of the Nation’s retailers and wholesalers have patriotically refrained from raising the price of silk products on the basis of the raw silk shortage,” Miss Elliott said. “But many others are deliberately taking advantage of the situation to reap windfall profits for themselves and do an injustice to their customers by raising prices although the cost of their existing stocks has not changed in the slightest.”
Complaints from all sides
Miss Elliott said that citizens in all parts of the country were writing to her and reporting substantial increases in the retail price of hose. “Retailers are reporting increases in wholesalers’ prices and wholesalers report increases in manufacturers’ prices,” Miss Elliott said. In this way unpatriotic self-interest is being pyramided all along the line.
Consumers should refuse to pay higher prices for silk hose, Miss Elliott advised. Pointing out that production of rayons, cottons, and nylons suitable for hosiery is being expanded, Miss Elliott urged consumers to buy hose for current needs only and vigorously to protest higher prices.
Protests from consumers
Among the protests being received by Miss Elliott are the following:
Philadelphia: “I wish to report a hosiery dealer who has raised his prices from 79 cents a pair to $1. This sort of cheating should be stopped.”
New York: “--------Hosiery Co. had his hosiery at $7.60 per dozen a few weeks ago. Now he charges $10 per dozen. He is a wholesaler and had his stock for many months.”
Paterson, N. J.: “Yesterday, in -------- Hosiery Shop, my sister and I purchased stockings at 47 cents per pair. Today they are 59 cents . .. They are taking advantage.”
Ferndale, Mich.: “The---------Shop has raised the price on extra-length hosiery 10 cents. That being in effect, I refused to make a purchase.”
Washington, D. C.: “I was in the-------- Shoe Store Saturday and distinctly heard the clerks quote $1.35 as the price
of nylon hose, selling regularly for a year at $1.35. The price jumped this morning (Monday) 15 cents to $1.50 a pair... I was told the hose were exactly the same.”
New York: “Prices in the hosiery market have gone from $6 a dozen to $12 a dozen. It is a highway robbery.”
Flushing, N. Y.: “I bought four pairs of Nylon hose at $1.65 a pair that sold at $1.35 a pair an hour earlier in the day.”
Louisville, Ky.: “When I asked the clerk for the same hose which I bought for 50 cents a pair she told me that they were now 69 cents. I very angrily refused to pay that price and the clerk informed me that I might as well pay---- (store) the additional price as all the merchants had raised the price on their stock.”
★ ★ ★
Discarded stockings not useful to defense at present
In response to numerous inquiries about the possible usefulness of collecting discarded old silk stockings to provide material for defense purposes, the Office of Production Management, August 13, made public the following statement by Frank Walton, chief of the textile branch.
“Silk fiber obtained from garnetting or reclaiming the fiber from old silk hosiery has a very limited use, if any, as a fabric for powder bags.
“Due to the necessity for stripping the fiber of dye and chemicals and other foreign matter, the fibers and the fabric thus obtained lack tensile strength and do not meet specifications for these bags.
“Research, of course, is constantly going on and it is impossible to say what the future developments will be. For some time experiments have been made to try to utilize this waste fiber, but without much success. These experiments of course will be continued. Unless and until some new means of using the fiber is found, no military end can be gained by the collection of discarded silk hosiery.”
Mr. Walton remarked that some public confusion has developed because of the term “silk waste.” Silk waste as the trade uses the term is the byproduct of silk mills or waste reclaimed from handling raw silk. It can be made into fiber for powder bags. The term is not applied to silk fiber reclaimed from hosiery.
Ceiling of 3.5 cents a pound on raw sugar combats speculation; supply plentiful
Moving to protect the American public from “rampant” speculation in sugar which has been pushing prices far above levels considered justified by large supplies in hand, OPACS Administrator Henderson announced August 12 a ceiling of 3.5 cents per pound on 96 degree raw sugars, duty paid, New York.
This is the price which prevailed in mid-July prior to the recent excessive speculative advance. It is 0.3 cent per pound under the price of 3.8 cents prevailing on August 11.
Refined sugar ceiling to be considered
Action was taken after consultation with officials of the Department of Agriculture and other Government agencies. Section 201 of the Sugar Act directs the Department to determine sugar requirements “so that the supply . . . shall not result in average prices to consumers in excess of those necessary to maintain the domestic sugar industry as a whole.” Plans have been laid for conferences with processors and refiners to consider the question of placing a ceiling on refined sugar prices.
Deliveries up 30 percent
The total supply of sugar for 1941, which has been made available by the Secretary of Agriculture under the sugar quota law, is 7,769,621 short tons, raw value. This supply exceeds by over a million tons the actual consumption of last year and is sufficient to give consumers the highest per capita consumption on record. Supplies already received to date from offshore areas or marketed by continental areas of production are in the aggregate far greater than in other years. Hie total deliveries of sugar for January-June, 1941 are up 919,000 tons or about 30 percent in excess of the first half of last year.
Don’t pay more, consumers told
“Consumers should not under any condition permit themselves to be cajoled into paying more for sugar in retail stores than at the present time,” Mr. Henderson added. “There is more than enough sugar for everyone. Speculators have been endeavoring all through the year to reap a profit at expense of consumers throughout the country by frightening them with scare reports of one kind or another, although the actual situation is one of unusual abundance, not scarcity.”
August 19, 1941
★ DEFENSE ★
15
News for Retailers
Consumer Reaction to Retail Price Policy
Price administrators of the Office of Price Administration and Civilian Supply are concerned over the wasteful and harmful dislocations to our economy that can be caused by consumer hoarding and speculative price increases on the retail level.
Although some retailers and manufacturers may acquire short-run profits from participating in speculative price increases, leading retailers as well as OPACS officials point out that during a long-run inflation businessmen and nearly everyone else stands to lose.
Many merchants remember unfortunate experiences in the period of depression following the last war when they were caught with swollen inventories at inflated prices. OPACS officials point out that retailers who boost prices unnecessarily or stimulate advance buying may expect to forfeit consumer confidence and good will.
Hosiery Price Protests
Latest in a long line of consumer price complaints received by the Consumer Division of OPACS is the flood of letters during the past two weeks protesting retail silk stocking price advances. Excerpts from some of these letters appear on Page 14.
General Price Complaints
General consumer price complaint letters reaching the Consumer Division are growing in number. The increase from May to June was over 50 percent. Complaints during the first half of July almost equalled the total number of letters received during June.
In many cases resentment is directed toward retailers, fixing whole or part responsibility for the increases on their heads. In other instances, wholesalers, manufacturers, producers, or the Government are considered at fault.
Most of the letters protested rising food costs, particularly those in which national surpluses have been reported, but many objected to price increases or
quality deterioration in clothing and durable consumer goods.
Reaction of some of the consumers may be of interest to retailers. Comments from several letters follow:
Newark, N. J.—“We use a great deal of canned tomato juice—our dealer told us we had better buy two or three cases as there was going to be a shortage. That is ridiculous and should be stopped. At a time like this, people should not be kidded into spending their money for large supplies of things.”
Oklahoma City.—“If there isn’t something done about unnecessary price raises among wholesale and retail merchants (all over the U. S. A.) we are going to have a wonderful surplus of food products in a few months’ time. There is absolutely no need for this. Nothing scarce here but money.”
Lubbock, Tex.—“Please do not think I am a busybody, and trying to cause any trouble, but I do hate to see our good American people who are trying to buy bonds and willing to sacrifice our boys if it is necessary let some dad blasted food merchant . . . get rich through our bellies.”
“Now It Is a Merry-Go-Round"
Portland, Oreg.—“In Portland, the ‘speculative rise’ in meat products started with the retailers—not with the packers, but it only took them about six weeks to catch up with the retailers; now it is a merry-go-round between the two, and the consumer is caught between them.”
Fort Eustis, Va.—“Today I drove to Yorktown, Williamsburg and stopped at several highway restaurants; they are charging 150 and 200 for dime beer and since last Thursday hot dogs have gone up from 50 to 100. These were the only articles checked but everything else I am told has been advanced considerably. . . . The selectees make a very small salary and I for one hate to see profiteering at their expense. . . . This practice in areas near large Army Camps seems to me to be a direct violation of the President’s proclamation on profiteering.”
University City, Mo.—“My father makes about $20 per week with no pros
pect of earning more. . . . with everything going up, but wages remaining the same for us, what are we to do? We are not getting even the barest necessities of life—enough of the right food, at least. We are not the only family in the same position. Just how can we continue to exist? How can we be strong and healthy? Do we not need a strong people for our national defense?”
West Hempstead, Long Island, N. Y.— “We are thoroughly convinced there has never been anything like the high-handed and utterly unprincipled moves made by all classes of tradesmen in boosting the prices of all kinds of basic materials overnight. Our members have letters to show that prices of many needs in everyday life have been put up, by large percentages, for no good reason.”
Milwaukee, Wis.—“I get to Platteville, Wis., often. . . . have a store there. I discovered that they have advanced prices considerable on items that have been in stock over a year. They just cross off the original price and write in an advanced figure. Noted an outboard motor and gladstone bags that I was interested in. To charge more for new items is right if the material is of recent acquisition and is to be expected if advances have been made in the wholesale price but to mark up old stock is not honest nor called for. They are making their regular profit plus this extra, which is all velvet or just plain robbery.”
Check Up On Shortage Rumors
The number of retailers who unduly boost prices or encourage consumer hoarding is comparatively small, OPACS officials point out. In many of these cases retailers are made the unwitting pawns of speculators higher up, who stand to reap profits from panics. OPACS officials suggest that retailers guard against such practices by checking shortage rumors with Government reports, or by making inquiry direct to OPACS itself.
In contrast to the professional speculators, who make money on both rising and falling prices, retailers have a stake in maintaining stable prices and volume. Price fluctuations and shortage rumors create wide variations in volume, but no net increase to total sales over a long period. From the long-run point of view, the retailer, with fairly fixed costs for labor and rent, has nothing to gain from disturbances to normal trade.
16
★ DEFENSE ★
August 19, 1941
Reserve Board to regulate credit to consumers; OP ACS to be consulted
The President, by Executive Order published in the Federal Register August 13, designated the Board of Governors of the Federal Reserve Board to regulate consumer credit in the interest of national defense. The administrator of the Office of Price Administration and Civilian Supply or an alternate named by him is to be one of a committee to consult with the board in coordinating the board’s efforts with other phases of national defense and in protecting the national economy.
Text of the order follows:
Declaration of necessity and purpose
Whereas a .rge volume of credit is being devoted to financing and refinancing purchases of consumers’ goods and services through extensions of credit that usually are made to individuals and to a large extent are on'an instalment payment basis; and
Whereas the conditions under which such credit is available have an important influence upon the volume and timing of demand, not only for the particular goods and services purchased on credit but also for goods and services in general; and
Whereas liberal terms for such credit tend to stimulate demand for consumers’ durable goods the production of which requires materials, skills, and equipment needed for national defense; and
Whereas the extension of such credit in excessive volume tends to generate inflationary developments of • increasing consequence as the limits of productive capacity are approached in more and more fields and to hinder the accumulation of savings available for financing the defense program; and
Whereas the public interest requires control of the use of installment credit for financing and refinancing purchases of consumers’ durable goods the production of which absorbs resources needed for national defense, in order (a) to facilitate the transfer of productive resources to defense industries, (b) to assist in curbing unwarranted price advances and profiteering which tend to result when the supply of such goods is curtailed without corresponding curtailment of demand, (c) to assist in restraining general inflationary tendencies, to support or supplement taxation imposed to restrain such tendencies, and to promote the accumulation of savings available for financing the defense program, (d) to aid in creating a backlog of demand for consumers’ durable goods, and (e) to restrain the development of a consumer debt structure that would repress effective demand for goods and services in the post-defense period; and
Whereas in order to prevent evasion or avoidance of this order and such regulations as may be prescribed to effectuate its purposes, means should also be available for regulating the use of other installment credit and other forms of credit usually extended to consumers or on consumers’ durable goods; and
Whereas it is appropriate that such credit be controlled and regulated through an existing governmental agency which has primary responsibilities with respect to the determination and administration of national credit policies:
Now, therefore, by virtue of the authority vested in me by section 5 (b) of the act of October 6, 1917, as amended, and by virtue
of all other authority vested in me, and in order, in the national emergency declared by me on May 27, 1941, to promote the national defense and protect the national economy, it is hereby ordered as follows:
Administration
Section 1. (a) The Board of Governors of the Federal Reserve System (hereinafter called the Board) is hereby designated as the agency through which transfers of credit between and payments by or to banking institutions (as defined herein pursuant to section 5 (b) of the aforesaid Act) which constitute, or arise directly or Indirectly out of, any extension of credit of a type set out in section 2 (a) of this order shall be investigated, regulated, and prohibited.
(b) The Board shall, whenever it deems such action to be necessary or appropriate, take any lawful steps herein authorized and such other lawful steps as are within its power to carry out the purposes of this order, and may, in administering this order, utilize the services of the Federal Reserve Banks and any other agencies, Federal or State, which are available and appropriate.
(c) In order to facilitate the coordination of the Board’s functions under this order with other phases of the program for national defense and for protecting the national economy, there shall be a committee consisting of the Secretary of the Treasury, the Federal Loan Administrator, and the Administrator of the Office of Price Administration and Civilian Supply, or such alternate as each shall designate, and such other members as the President shall subsequently appoint. The Board shall maintain liaison with the committee, and in formulating policies with respect to down-payments, maturities, terms of repayment, and other such questions of general policy shall consult with the committee and take into consideration any suggestions or recommendations it may make.
Regulations
Sec. 2. (a) Whenever the Board shall determine that such action is necessary or appropriate for carrying out the purposes of this order, the Board shall prescribe regulations with respect to transfers and payments which constitute, or arise directly or indirectly out of, any extension of instalment credit for the purpose of purchasing or carrying any consumers’ durable goods except a residential building in its entirety; and the Board may in addition, to the extent deemed by it to be desirable and feasible in order to prevent evasion of such regulations as may be so prescribed or in order to control forms of credit the use of which might defeat the purposes of this order and such regulations, prescribe regulations with respect to transfers and payments which constitute, or arise directly or Indirectly out of, (1) any other extension of instalment credit, or (2) any other extension of credit for the purpose of piurchasing or carrying any consumers’ durable goods, or (3) any other extension of credit in the form of a loan other than a loan made for business purposes to a business enterprise or for agricultural purposes to a person engaged in agriculture. Such regulations may be prescribed by the Board at such times and with such effective dates as the Board shall deem to be In accordance with the purposes of this order.
(b) Such regulations may from time to time, originally or by amendment, regulate or prohibit such transfers and payments or exempt them from regulation or prohibition and may classify them according to the
nature of the transactions or goods or persons involved or upon such other basis as may reasonably differentiate such transfers and payments for the purposes of regulations under this order, and may be made applicable to one or more of the classes so established; and, without limiting the generality of the foregoing, such regulations may require transactions or persons or classes thereof to be registered or licensed; may prescribe appropriate limitations, terms, and conditions for such registrations or licenses; may provide for suspension of any such registration or license for violation of any provision thereof or of any regulation, rule, or order prescribed hereunder, may prescribe appropriate requirements as to the keeping of records and as to the form, contents, or substantive provisions of contracts, liens, or any relevant documents; may prohibit solicitations by banking institutions which would encourage evasion or avoidance of the requirements of any regulation, license, or registration under this order; and may from time to time make appropriate provisions with respect to—
(1) The maximum amount of credit which may be extended on, or in connection with any purchase of, any consumers’ durable good;
.(2 ) The maximum maturity, minimum periodic payments, and maximum periods between payments, which may be stipulated in connection wtih extensions of credit;
(3) The methods of determining purchase prices or market values or other bases for computing permissible extensions of credit or required down-payments; and
(4) Special or different terms, conditions, or exemptions with respect to new or used goods, minimum original cash payments, temporary credits which are merely incidental to cash purchases, payment or deposits usable to liquidate credits, and other adjustments or special situations.
(c) On and after the effective date of any regulation prescribed by the Board with respect to any extension of credit of a type set out in section 2 (a), and notwithstanding the provisions of any other proclamation, order, regulation, or license under the aforesaid Act, all transfers and payments which are in violation of such regulation shall be and hereby are prohibited to the extent specified in such regulation.
(d) Neither this order nor any regulation issued thereunder shall affect the right of any person to enforce any contract, except that after the effective date of any such regulation every contract which is made in connection with any extension of credit and which violates, or the performance of which would violate, any provision of such regulation (other than a provision designated therein as being for administrative purposes), and every lien, pledge, seller’s interest in a conditional sale, or other property interest, subject to the provisions of such contract or created in connection therewith, shall be unenforceable by the person who extends such credit or by any person who acquires any right of such person in such contract; provided that such disability shall not apply to any person who extends such credit, or acquires such right for value, in good faith and without knowing or having reason to know the facts by reason of which the making or performance of such contract was or would be such a violation.
Reports
Sec. 3. Reports concerning the kinds, amounts, and characteristics of any extensions of credit subject to this order, concerning transfers and payments which arise out of any such extensions of credit, or concerning circumstances related to such extensions of credit or such transfers or payments or to the regulation thereof, shall be filed on such forms, under oath or otherwise, at such times and from time to time, and by such persons, as the Board may prescribe by rule, regulation, or order as
August 19, 1941
★ DEFENSE *
17
necessary or appropriate for enabling th» Board to perform its functions under this order. The Board may require any person to furnish, under oath or otherwise, complete Information relative to any transaction within the scope of this order, Including the production of any books of account, contracts, letters, or other papers, in connection therewith in the custody or control of such person.
Definitions
Sec. 4. For the purposes of this order, unless the context otherwise requires, the following terms shall have the following meanings, provided that the Board may in its regulations give such terms more restricted meanings:
(a) "Person” has the meaning set forth in section 5 (b) of the act of October 6, 1917, as amended.
(b) “Transfers and payments” means "transfers of credit between and payments by or to banking institutions.”
(c) “Banking institution” means any person engaged as principal, agent, broker, or otherwise, in the business of making or holding extensions of credit and includes, without limitation, any bank, any loan company, and finance company, or any other person engaged in the business of making or holding extensions of credit whether as, a vendor of consumers’ durable goods or otherwise.
(d) “Consumers’ durable good” includes any good, whether new or used, which is durable or semi-durable and is used or usable for personal, family dr household purposes, and any service connected with the acquisition of any such good or of any interest therein.
(e) “Extension of credit” means any loan or mortgage, any installment purchase contract, any conditional sales contract, or any sale or contract of sale under which part or all of the price is payable subsequent to the making of such sale or contract; any rental-purchase contract, or any contract for the bailment or leasing of property under which the bailee or lessee either has the option of becoming the owner thereof or obligates himself to pay as compensation a sum substantially equivalent to or in excess of the value thereof; any contract creating any lien or similar claim or property to be discharged by the payment of money; any purchase, discount, or other acquisition of, or any extension of credit upon the security of, any obligation or claim arising out of any of the foregoing; and any transaction or series of transactions having a similar «purpose or effect.
(/) An extension of credit is an extension of “installment credit” if the obligor undertakes to repay the credit in two or more scheduled payments or undertakes to make two or more scheduled payments or deposits usable to liquidate the credit, or if the extension of credit has a similar purpose or effect, or if it is for the purpose of financing a business enterprise which makes such extensions of credit.
(g) An extension of credit is "for the purpose of purchasing or carrying any consumers’ durable good” if it is directly or indirectly for the purpose of financing or refinancing the purchase of any consumers’ durable good or is directly or indirectly secured by any consumers’ durable good, or if the extension of credit has a similar purpose or effect, or if it is for the purpose of financing a business enterprise which makes such extensions of credit.
Penalties
Sec. 5. Whoever willfully violates or knowingly participates in the violation of this order or of any regulation prescribed hereunder, shall be subject to the penalties applicable with respect to violations of section 5 (b) of the said act of October 6, 1917, as amended.
Burlap ceiling brings prices 20 percent under New York spot market quotations
Prices farmers and industrial users pay for burlap bags and other types of burlap are expected to be reduced substantially from present inflated levels as result of a price ceiling on burlap approximately 20 percent below recent quotations on the New York spot market announced August 16 by OPACS Administrator Henderson.
Burlap used in this country is virtually all imported from India. The material is widely used in packaging feed, fertilizer, and agricultural and industrial products, and in the manufacture of floor coverings, automobiles, furniture, and other goods. During the past 12 months the price of burlap in New York or enroute to this country has more than doubled. Prices of burlap bags have likewise shown a very sharp increase.
Factors contributing to price rise
The price increase in this country has been due in part to higher prices in Calcutta, in part to higher shipping and insurance costs, and in part to a wholly unjustified increase in the margin between what importers pay for burlap and what they sell it for.
The schedule of ceiling prices is in two parts, the first establishing maximums for deliveries made on or before December 31,1941, of 17 different constructions
of burlap, and the second establishing maximum prices on the same constructions delivered on or after January 1, 1942. The maximum prices which will go into effect January 1 are 5 percent lower than those which will prevail in the earlier period.
The maximum prices for the period ending December 31, 1941, are approximately 15 percent above the Calcutta prices of July 29. This mark-up of 15 percent is adequate to cover increased shipping and insurance costs and to maintain importers’ margins at their normal level.
Calcutta prices not affected
No ceiling action is being taken at present in regard to the price which importers may pay to Calcutta suppliers. This is in line with advice of a trade advisory group, including both importers and bag manufacturers, who were consulted by OPACS officials in preparing the price schedule. It is believed, however, that imposition of the ceiling will have a salutary effect on prices charged for burlap in Calcutta. Should this result fail to eventuate further steps will be taken promptly.
Imposition of the ceiling is also expected to produce a downward movement in the price of second-hand bags to their normal price relationship of 30 to 40 percent under the prices of new bags of similar kind and quality.
OP ACS asks steel industry for complete data as basis for any ceiling shifts
Questionnaires were mailed August 15 to 225 members of the steel industry to obtain for the Office of Price Administration and Civilian Supply complete and accurate statistical data on which to base decisions on any adjustments that may become necessary in the ceiling prices established for iron and steel products.
Data on steel production by tonnage and forms, raw materials consumed, sales by products, income and expense accounts, financial position and pay rolls from each of the producers, will provide OPACS with an over-all picture of the iron and steel industry, as well as of the difference in character of operations and financial results of the individual companies.
Because the information is required promptly, the questionnaires request only such data as should be readily available from records of the steel companies for the year 1940 and the first two quarters of 1941.
Four schedules in questionnaire
Four schedules are incorporated in the questionnaire. They are: (1) Consolidated profit and loss statements; (2) purchases, production, and sales; (3) wages, salaries, man-hours, employment, and major wage and salary rate changes; (4) consolidated balance sheets, and (5) historical data as to production, profits, etc., from 1936 through 1940 and for the first two quarters of the current year.
18
★ DEFENSE ★
August 19, 1941
PURCHASES...
$256,808,229 War, Maritime contracts
cleared August 7 through August 13
Defense contracts amounting to $256,-808,229 were awarded by two government agencies and cleared by the Division of Purchases, Office of Production Management, during the period August 7 through August 13. This compares with $231,-754,498 for the previous week. Of the latest total, $214,058,229 was awarded by the War Department and $42,750,000 by the Maritime Commission.
Contracts for construction amounted to $149,941,113, for equipment and supplies to $12,896,342, for ordnance to $46,-473,823, for shipbuilding to $42,750,000 and for aircraft to $4,746,951.
Contracts awarded during the period were:
CONSTRUCTION
Two contractors: Henry Ericsson Co., construction, and Nimmons, Carr and Wright, architects and engineers, both of Chicago, Ill.; design and construction of a Central Ordnance Regulating Station, near Momence, Ill. Station will include 20 warehouses and 176 magazines to supply ammunition components to loading plants; $4,884,029.
Six contractors: Pearson & Dickerson, Inc., Tanner Construction Co., J. A. Casson Co., Oswald Bros., Lee Moor Contracting Co., and Phoenix-Tempe Stone Co., all of Phoenix, Ariz.; construction of aprons, runways, etc.. Mesa Military Airport, at Higley, Ariz.; $1,878,061.50.
General Tire Engineering Co., Jackson, Miss. (Subsidiary of General Tire and Rubber Co., Akron, Ohio); management of construction, including supervision of sub-contracts for architect-engineer services and procurement of equipment, of Mississippi Ordnance Plant at Flora, Miss. Plant will load charges for 105 and 155 mm. howitzers and 155 mm. guns; $11,970,202.
Harry B. Friedman, Fort Worth, Tex.; construction of a Quartermaster Depot on a site near Fort Worth. Contract covers construction of 496,800 square feet of warehouse area, shops, etc.; $1,627,490.
J-M Service Corporation, New York, N. Y. (Subsidiary of Johns Manville Corporation); management of construction, procurement of equipment and operation of plant when constructed, of Kansas Ordnance Plant, Parsons, Kans. Plant will load 105 mm. howitzer shells, 155 mm. shells, 100-lb. bombs, fuses, boosters and detonators; $27,111,620.
Two contractors: Frank Messer and Sons, Inc., Cincinnati, Ohio, construction, and Allied Engineers and Architects, Lexington, Ky.; construction of Signal Corps storage depot at Avon, Ky.; $2,036,500.
T. L. James and Co., Inc., Rustin, La.; construction of an Advanced Single Engine Flying School at Lake Charles, La. Construction of 125 temporary buildings with necessary utilities; $1,604,236.
Permanent Construction Co., Chicago, Ill.; construction of warehouse at Rock Island Arsenal, Ill.; $1,657,300.
M. B. Kahn Construction Co., Columbia, S. C.; additional construction at overseas discharge and replacement depot at Charleston, S. C., $552,700.
Aeronautical Products, Inc., Detroit, Mich.;
for additional plant facilities used In the manufacture of aircraft parts; $36,908.
Elastic Stop Nut Corporation, Union, N. J.; additional machinery and equipment to be used for the manufacture of self-locking nuts; $608,736.
Singer Manufacturing Co., New York, N. Y.; additional machinery and equipment for use In the company’s plants at Elizabeth, N. J., and Bridgeport, Conn., for the manufacture of artillery fire control equipment; $665,000.
Commercial Solvents Corporation, New York, N. Y.; construction and management of anhydrous ammonia plant at Dixie Ordnance Works, Sterlington, La.; and 1 year’s output of ammonia; $9,250,000.
Remington Arms Co., Inc., Bridgeport, Conn.; construction and management of armor piercing and tracer ammunition of .30 and .50 caliber type, and output of plant for 1 year; $86,058,331. (Subcontract of $18,500,000 for designing and construction; $11,985,000 for purchase of machinery and equipment.)
EQUIPMENT AND SUPPLIES
Homelite Corporation, Port Chester, N. Y.; gasoline engine driven generators; $2,141,298.
J. Lasking & Sons Corporation, Milwaukee, Wis.; sheep shearling (fleece); $786,448.50.
Fairchild Aviation Corporation, Jamaica, N. Y.; cameras and equipment; $619,298.75.
Singer Manufacturing Co., New York, N. Y.; additional machinery and equipment for use in the company’s plants at Elizabeth, N. J. and Bridgeport, Conn, for the manufacture of artillery fire control equipment; $665,000.
Elastic Stop Nut Corporation, Union, N. J.; additional machinery and equipment to be used for the manufacture of self-locking nuts; $608,736.
Collins Radio Co., Cedar Rapids, Iowa; radio transmitting equipment; $524,200.
Western Electric Co., Inc., Kearny, N. J.; radio receiving and transmitting components; $2,483,007.12.
J. P. Stevens & Co., New York, N. Y.; 3,398,352 yds. cotton twill for uniforms; $1,340,649.86.
Ford Motor Co., Dearborn, Mich.; % ton 4 by 4 trucks; $971,750.
American Bleached Goods Co., Sayesville, R. I.; 2,635,000 yds. wind-resistant cotton cloth; $1,227,374.
Brown Shoe Co., St. Louis, Mo.; 150,000 pairs of service shoes; $504,000.
Charles A. Eaton Co., Brockton, Mass.; 150,000 pairs of service shoes; $520,580.19.
International Shoe Co., St. Louis, Mo.; 150,000 pairs of service shoes; $504,000.
ORDNANCE
American Brake Shoe & Foundry Co., American- Forge Division, Chicago, Ill.; shell forgings; $507,960.
Gabriel Co., Cleveland, Ohio; shell bodies; $610,000.
Dresser Manufacturing Co., Bradford, Pa.; shell forgings; $962,500.
Oliver Farm Equipment Co., Springfield* Ohio; metal packing crates; $804,100.
Kilby Steel Co., Anniston, Ala.; shell forgings; $6,127,200.
Electric Household Utilities Co., Chicago, Ill.; booster parts; $755,590.
Murray Mfg. Corporation, Brooklyn, N. Y.; shell bodies; $1,792,000.
Regina Corporation, Rahway, N. J.; bomb nose fuze; $548,895.
Armstrong Cork Co., Lancaster, Pa.; cartridge cases; $520,000.
John Dunlap Co., Carnegie, Pa.; cartridge cases; $970,000.
Pullman Standard Car Mfg. Co., Butler, Pa.; shell; $915,000.
W. 0. Norris, Manufacturer, Inc., Tulsa, Okla.; shell; $574,024.
National Supply Co., Spang-Chalfant Division, Ambridge, Pa.; steel forgings; $5,093,130.
Weatherhead Co., Cleveland, Ohio; fuzes; $599,500.
Gisholt Machine Co., Madison, Wis.; lathes; $668,500.
American Can Co., New York, N. Y.; fiber containers; $7,087,755.17.
American Brass Co., Kenosha, Wis.; brass cups; $16,047,668.60.
Pittsburgh Steel Co., Allenport, Pa.; shell; $1,890,000.
AIRCRAFT
Fairchild Engine and Airplane Corporation, Fairchild Aircraft Division, Hagerstown, Md.; airplanes and parts; $4,746,951.
MARITIME COMMISSION
SHIPBUILDING
Lake Superior Shipbuilding Co., Superior, Wis.
Leatham Smith Coal and Shipbuilding Co., Sturgeon Bay, Wis.
Oldenbach Shipbuilding Corporation, Rochester, N. Y.
Basalt Rock Co., Inc., Napa, Calif.
Pacific Bridge Co., San Francisco, Calif.
Each of the above companies received contracts under Lend-Lease funds, for the construction of nine single-screw "coaster” cargo vessels, about 2,800 deadweight tons each, at an average price of approximately $950,000 per vessel; total cost, $42,750,000.
★ ★ ★
MacPherson appointed assistant director
Appointment of James MacPherson of San Francisco as assistant director of purchases in charge of the Equipment and Supplies Branch was announced by Purchases Director Nelson.
Mr. MacPherson, who is on leave of absence from his position as secretarytreasurer of the California-Arabia Standard Oil Co., replaces Donald G. Clark, who has been detached for special assignment as consultant on Army procurement problems.
★ ★ ★
DCB CONSERVES AIRCRAFT FREQUENCY FOR DEFENSE
Communication needs of aircraft in connection with defense have prompted the Defense Communications Board to have the Federal Communications Commission withdraw the frequency 3105 kilocycles which had been assigned to scheduled aircraft and substitute 3117.5 kilocycles, for private use.
August 19, 1941
★ DEFENSE ★
19
TRANSPORTATION...
Export rail movement for July reaches highest point in recent years
Cars of export freight unloaded at Atlantic, Gulf, and Pacific ports in July this year totaled 61,255 cars, an increase of 17.7 percent over the 52,041 cars unloaded during July 1940, according to reports made available to Ralph Budd, Transportation Commissioner, by the Association of American Railroads. This is the largest number of cars unloaded in any month since the statistics were inaugurated following the start of the present war in the late part of 1939.
The cars of grain (included in above figures) unloaded in July this year for export totaled 6,273 cars compared with 2,260 during the same month in 1940.
Congestion avoided
No congestion or delay to traffic exists at any of the Atlantic, Gulf, or Pacific ports due to the cooperation and advance planning of all concerned—railroads, steamship lines, port authorities, exporters, and shippers. The heaviest movement is and has been to the North Atlantic ports, but despite this there is
and has been ample railroad storage space available at all ports. In November 1939, having in mind the congestion which occurred in 1917 and 1918 at our ports, the Association of American Railroads appointed a Manager of Port Traffic to watch the situation from day to day and week to week at all ports, and clothed him with authority to control the movement through issuance of embargoes at any time when the volume of receipts at a port results in an undue accumulation of cars under load. Working cooperatively with all concerned in the handling of export freight, it has so far been possible to handle a tremendous increase in tonnage without the necessity, for restrictive measures of any kind with the exception of embargoes controlling movement to grain elevators at ports.
New York above 1,000 daily
At the Port of New York the number of cars unloaded for lighterage in July 1941 averaged 1,085 daily. This was the third consecutive month in which unloadings exceeded 1,000 cars dally. In July 1940, aver-
Steps taken to tap 232,000 tons of abandoned rails buried in city streets
Steps are being taken to scrap street car and railroad rails which have been abandoned and left imbedded in city streets, Ralph Budd, Transportation Commisioner in the Office for Emergency Management, announced August 15.
The purpose is to make the rails available to steel industries urgently needing additional scrap iron and steel for defense production.
More than 232,000 tons of scrap iron are imbedded in city streets,. it is indicated by a survey made by Charles Gordon, urban transportation consultant on Mr. Budd’s staff. The survey covered members of the American Transit Association of which Mr. Gordon is managing director.
WPA assistance considered
A plan is under consideration whereby the Work Projects Administration would aid in providing the necessary funds for removing the rails and making necessary repairs to the streets involved.
Coincident with announcement of this undertaking, the Office for Emergency Management asked the country’s railroads to check their entire systems and make available quickly all possible scrap.
OEM appeals to railroads
The OEM asked the railroads, which normally supply about 23 percent of all commercial scrap, to consider especially the following suggestions to increase the normal supply:
1. Remove railroad sidings, branch lines, and industrial tracks where they are not actually needed for present or prospective business. Appropriate action by public bodies is requested to facilitate this program.
2. Check equipment and dismantle promptly cars and locomotives that are not to be repaired.
3. Check miscellaneous facilities such as junk tools, bridges, and buildings, and dismantle those no longer needed to make available all metal for scrap.
age unloading of cars for lighterage was 876 daily.
Eastbound freight, of which approximately 88.3 percent was for export, lightered at New York in July 1941 totaled 830,603 tons, compared with 724,864 tons in the preceding month and 658,007 tons in July 1940. This was an increase of 14.6 percent compared with June 1941 and an increase of 26.2 percent compared with July last year. This was the heaviest eastbound tonnage handled in any one month since the Association began compiling statistics in November 1939.
Westbound lighterage tonnage, most of which is import traffic, in July 1941 totaled 244,004 tons compared with 254,410 tons in the preceding month, and 127,126 tons in July 1940. Illis was a decrease of 4.1 percent compared with June 1941, and an increase of 91.9 percent compared with July last year.
Eastbound and westbound lighterage tonnage combined handled in July totaled 1,074,-607 tons, exceeding the 1,000,000 mark for the first time since the Association began compiling its statistics in November 1939.
Decrease in Boston
Cars of export freight, other than grain, unloaded at Boston in July totaled 847, compared with 966 in July last year, or a decrease of 12 percent. There was an increase of 115 percent in the number of cars of coastwise and intercoastal traffic unloaded at the port, compared with July last year.
At Philadelphia, 3,590 cars of export freight, other than grain, were unloaded in July, compared with 3,467 last year, or an increase of 4 percent. There was an increase of 22 percent in the number of cars of coastwise and intercoastal traffic unloaded at the port, compared with July last year.
Cars of export freight, other than grain, unloaded at Baltimore in July totaled 3,408, compared with 4,037 in July last year, or a decrease of 16 percent.
★ ☆ ★
Carloadings 20.8 percent above corresponding week of 1940
Revenue freight carloadings during the week ended August 9 totaled 878,549, an increase of 20.8 percent over the 727,073 cars loaded during the corresponding week in 1940, but a decrease of 4,516 cars under the preceding week of 1941.
CARLOADINGS—WEEK ENDED AUGUST 9
1941 1940 Percent
increase
Grain and grain prod- 46,887 41,386 10.9
ucts________________
Livestock____________ 10,021 10,732 >6.6
Coal__________________ 166,429 125,857 32.2
Coke................. 13,056 10,283 27.0
Forest products...... 49,118 36,174 35.8
Ore................... 76,697 70,209 9.2
Merchandise, 1. c. 1... 156,684 149,467 4.7
Miscellaneous........ 360,657 282,765 27.5
Total........... 878,549 727,073 20.8
Cumulative (32 25,021, 469 21,181,985 18.1
weeks).............
> Decrease.
20
★ DEFENSE ★
August 19, 1941
AGRICULTURE...
(Information furnished through Office of Agricultural Defense Relations, U. S. Department of Agriculture)
Farm organization committee for defense named at President’s suggestion
President Roosevelt regards food as “a weapon against Hitlerism just as much as munitions” and believes that “food Will continue to be a weapon in all efforts toward securing a more orderly, prosperous and peaceful world.”
The President’s views were expressed In a letter thanking Secretary Wickard for a report on the effectiveness of the Department of Agriculture’s Food-For-Defense Program. In response to a suggestion in the President’s letter, Secretary Wickard named the presidents of four leading farm organizations as a committee on agricultural production for defense and related matters.
Dated July 25, the Presidential letter was made public August 12. It follows:
Dear Mr. Secretary.—I want to thank you for your letter of July 24th. The Information it gives about increases in the production of vital foods and feeds is reas-suring. In this time of crisis, food is a weapon against Hitlerism just as much as munitions and food will continue to be a weapon In all efforts toward insuring a more orderly, prosperous and peaceful world.
I am glad also that national farm programs have given us machinery whereby we can increase production without repeating the errors of the last World War. During that struggle, in an effort to produce food and feed, we sinned gravely against our soil. The dust storms and the eroding of millions of acres of once fertile land told us in later years the extent of our error.
Meeting situation by orderly production
Our lack of preparedness during the last World War made the establishment of a food administration necessary. Thus far in this war we have not needed a food administration, and I see no reason to believe we will need one in the future. Agriculture is meeting the situation much more satisfactorily by increasing production in an orderly way so that our own needs and the needs of our friends can be met without causing scarcity or unduly high prices.
Farmers have responded quickly
As you have told me, farmers have responded quickly to appeals for increased production. When democracy is in danger, our farmers always have rallied to its defense, and they always will. All they ask in return for their increased production is fair prices and assurances of protection after the emergency has passed. I think farmers should have these assurances insofar as we are able to give them.
As you pointed out, we need not only abundant production for ourselves and for other nations resisting aggression, but we need reserves to meet emergencies which can as yet be only dimly foreseen. The monstrous forces that Nazism has loosed upon the world are ravaging many lands. The first task is to beat down these forces and then to repair the damage they have done
to the best of our ability. In this process of rebuilding and rehabilitation, food will be essential.
I know you will not hesitate to increase production of vital food to the extent necessary to protect ourselves against existing emergencies and prospective emergencies of the future. I am well aware that the farm programs are flexible. I have pointed out on several occasions that they could be used to step up production just as readily ¿3 they could be used to adjust burdensome surpluses. The Ever-Normal Granary is a part of the programs, and because of the Granary we have today the feed which enables us to produce additional quantities of food.
So far as farmers are concerned, I believe they can rest assured that they will receive fair prices for their products and that they will be protected after the crisis is past. The time has come to reward abundance to the fullest possible extent.
I appreciate the information about the organization of the defense boards. They should enable the Department to better concentrate its resources on defense efforts. I am certain also that you are utilizing to the fullest extent the agencies outside the Department. As an example, I am sure you will arrange for the fullest cooperation with the Office of Civilian Defense and its Volunteer Participation Committee.
In this connection, I remember very clearly the indispensable assistance that the farm organizations gave the Government during the first World War. Since they are the spokesmen for hundreds of thousands of farmers, these organizations are in position
to tell the Department what the producers want and need and to tell producers what the Government wants and needs.
I know that you are advising with officials of the leading farm organizations from time to time. To be certain, however, that we utilize the experience and resources of the farm organizations in the most effective way, I suggest that in consultation with Chairman La Guardia and the Office of Civilian Defense, you name representatives of farm groups to constitute a farm organization committee on agricultural production for defense and related matters.
Very sincerely yours,
(signed.) Franklin D. Roosevelt.
Farm organization committee named
The farm organization committee is composed of James G. Patton, president of the Farmers’ Educational and Cooperative Union of America; Edward A. O’Neal, president of the American Farm Bureau Federation; Louis J. Taber, Master of the National Grange; and Judge John D. Miller, president of the National Cooperative Council. The appointments were made after consultation with the Office of Civilian Defense.
The committee will meet regularly with the Secretary of Agriculture and other Department officials to aid with the defense production effort and to give assistance in other matters where the experience and resources of the farm organizations will prove helpful in meeting defense needs.
T. R. Reid appointed
OCD liaison officer
T. Roy Reid, Assistant to the Secretary, has been appointed by Secretary Wickard to serve as the Department of Agriculture’s .liaison officer with the Office of Civilian Defense.
★ ★ ★
Col. Edgar S. Gorrell to succeed C. R. Smith as consultant
Ralph Budd, Transportation Commissioner, announced August 16 the resignation of C. R. Smith as consultant on domestic air transportation in the Transportation Division, OEM, and appointment of Col. Edgar S. Gorrell in his place.
Colonel Gorrell is president of the Air Transport Association of America. He holds degrees from the U. S. Military Academy at West Point, the Massachusetts Institute of Technology and Norwich University.
Campbell named associate regional housing coordinator
Appointment of O. W. Campbell as associate regional coordinator of the Division of Defense Housing Coordination was announced August 13 by C. F. Palmer, Coordinator. Mr. Campbell becomes a full-time assistant to Winters Haydock, coordinator for the western part of the United States.
Mr. Campbell, formerly of the League of California Cities, and more recently a field representative of the Office for Civilian Defense, will represent the Division of Defense Housing coordination in California, Nevada, Arizona, and New Mexico. His office will be located in Berkeley.
Mr. Scarborough’s territory will include Oregon, Washington, Utah, Idaho, and Montana. Mr. Haydock, the regional coordinator, who is stationed in Washington, D. C., will supervise these areas.
August 19, 1941
* DEFENSE ★
21
Two new panels to seek ways of protecting quality of goods, conserving resources
Advice on ways and means for better protection of the quality of the things which consumers buy, and for conserving resources essential for defense will be given by two advisory panels which are being set up in the Standards Section, Consumer Division, OPACS.
Miss Harriet Elliott, Associate Administrator of OPACS in charge of the Consumer Division, made the announcement of this new activity.
Standards advisory panel
The standards advisory panel, one of the two, will be made up of a limited number of representatives of commercial and private standards—formulating, standards-promulgating and stand-ards-using companies whose work is in the consumer goods field. This panel will confer with member of the standards section of the Consumer Division on simplification of materials and lines of production, utilizing of standards and specifications already drawn, promoting grades and sale by quality-identifying labeling systems wherever by such means significant savings in materials, plant capacity, shipping or other costs can be effected and wherever there may arise in connection with materials or capacity shortages, serious problems of quality deterioration, use of substitute materials or unduly rapid price advances in consumer goods.
Purchasing agents advisory panel
The second or governmental and institutional purchasing agents advisory panel will include purchasing agents of several cities, States, and universities. The functions of this group, in addition to those outlined above, will include advising the staff of the standards section on the formulation of programs designed to increase the use of standards, specifications and scientific purchasing methods in governmental, institutional and university purchasing offices.
In addition to these two panels, technical committees have been established within the Government along commodity lines with members drawn from such agencies as the Bureau of Standards, the Agricultural Marketing Service,, the Pure Poods and Drug Administration and the Bureau of Home Economics. The work of these committees together with the two panels now being formed, will provide information Miss Elliott said, “for our work with the price and
civilian allocation section of OPACS and other Government agencies as well as data for our advice to the general public on how to save in the use of materials and equipment.”
Will hold joint meeting August 22
The first meeting of both of these new panels, Miss Elliott said, will be a joint session to be held in Washington August 22, at the headquarters of the Consumer Division. This new program of work will be carried on under the direction of Dr. Robert A. Brady, chief of the standards section and economic adviser to Miss Elliott. It is planned to have each panel meet on the third Friday of each month.
Those who have been invited to attend the first meeting of the standards advisory panel are as follows:
Paul G. Agnew, American Standards Association; Jules Labarthe, Kaufman Department Store, Pittsburgh, Pa.; Inter-Mountain Consumer Services, Inc., Denver, Colo.; Harold G. Brightman, Bamberger Department Store, Newark, N. J.; Consumers’ Union, New York, N. Y.; T. V. Hauser, vice president in charge of merchandising, Sears Roebuck, Chicago; Consumers’ Research, Inc., Washington, N. J.; C. J. Huber, U. S. Testing Company, Inc., Hoboken, N. J.
Those who have been invited to attend the first meeting of the governmental and institutional purchasing agents advisory panel are as follows:
Theodore M. Johnson, supervisor of purchases, New York University; Walter N. Kirkman, director, Department of Budgets and Procurement, State of Maryland; Joseph W. Nicholson, purchasing agent, City of Milwaukee, Milton R. Maddux, purchasing agent, County of Hamilton, Ohio; Russell Forbes, purchasing agent, City of New York; and Mr. Abbott, purchasing agent, Purdue University,
2,130 defense homes completed in week; 1,025 put under construction contract
Considerable progress was reflected in the Defense Housing Program for the week ending August 9, C. F. Palmer, Coordinator of Defense Housing, announced. Over 2,000 homes were completed, 1,025 placed under construction contract, and approximately 7,000 started by private builders under FHA inspection.
Of the 2,130 homes reported completed for the week, 150 are located at East Alton, Ill.; 150 at Quonset Point, R. I.; 200 at Warren, Ohio; 150 at Birmingham, Ala.; and 121 at Orange, Tex. All of these homes were built by the United States Housing Authority for civilian workers.
The Public Buildings Administration reports 150 homes completed at River-
side, Calif., and 101 at Tampa, Fla., for enlisted personnel.
At Long Beach, Calif., 600 homes were placed under construction contract by the Navy for civilian workers. The Federal Works Agency contracted for 250 homes at Pittsburgh, Pa., and 100 at Benicia, Calif.
Of the 561 dormitory units made available for immediate occupancy under the temporary shelter program, 378 are located in Hartford, Conn., and 183 in Baltimore, Md. These rooms are for single, industrial workers.
As of August 9, approximately 110,000 homes had been allocated out of public funds for defense workers and enlisted personnel. More than 79,000 of these homes have been placed under construction contract, and over 28,000 completed.
STATUS OF PUBLIC DEFENSE HOUSING CONSTRUCTION, AUG. 9, 1941
Funds allocated Contracts Completed
awarded
Aug. 9 Aug. 2 Aug. 9 Aug. 2 Aug. 9 Aug. 2
Number of States and Territories___________.............. 49 49 47 47 34 83
Number of localities________--___......................... 171 171 154 153 85 83
Number of projects_______________________________________ 420 420 281 278 118 112
Number of family dwelling units (regular)________________ 109,688 109,688 79,490 78,465 28,084 25,954
Civilian industrial workers in private defense industry. 49, 615 49,515 29,948 29,523 6,217 5,155
Civilian industrial workers in Government plants---- 19,201 19,201 15,597 14,997 4,133 4,133
Other civilians, employed by the Army and Navy.... 10,642 10,642 8,804 8,804 3,660 3,191
Married enlisted personnel....________________________ 30,330 30,330 25,141 25,141 14,074 13,475
Number of familv dwelling units (trailers)_________________ 4,154 4,154 3,634 3,634 1,675 1,675
Civilian industrial workers in private defense Industry. % 534 3,534 3,234 3,234 1,675 1,675
Civilian Industrial workers in Government plants.---. 620 620 400 400
Number of units for single persons........................ 9,591 9,591 7,124 7,124 4,231 3,670
NUMBER OF NEW HOMES STARTED UNDER FHA INSPECTION
Jan. 1,1941, through Aug. 9,1941_............_____—..........— 131,595
Week ended Aug. 9, 1941..................................... - 6,594
22
★ DEFENSE ★
August 19, 1941
CIVILIAN DEFENSE . . .
OCD announces project to train 100,000 volunteer nurses’ aides in next 12 months
Training of 100,000 volunteer nurses’ aides within the next 12 months, in collaboration with the American National Red Cross and the major hospitals of the country was announced August 17 by OCD Director LaGuardia.
The program is preparatory to a great expansion in hospital beds which may be required during the national emergency at a time when the already overburdened nursing facilities of civilian hospitals are seriously impaired, due to the demands of the military and naval establishments and the increasing needs of public health and industrial hygiene services.
Through the training of large numbers of paid subsidiary hospital workers by NYA, WPA, and other agencies, the increasing deficiency in hospital personnel now is being met in part.
Augments professional nursing services
The training program for volunteer nurses’ aides is designed to expand the effectiveness of trained nurses in hospitals, clinics and field nursing services by supplying qualified assistants who can work under their direction. The curriculum of instruction has been prepared by the Medical Division of the Office of Civilian Defense, the American National Red Cross, and the Federal Security Agency. Eligibility is limited to women between the ages of 18 and 50 who have had a high school education or its equivalent, and who are physically fit.
What the course covers
The course will require 80 hours of intensive instruction over a period of 7 weeks. The first half of the course will be given in the local Red Cross chapters in collaboration with local hospitals and nursing organizations. This will constitute a probationary period and will require 2 hours of instruction daily on 5 days a week for 4 weeks.
The remainder of the course will consist of supervised practice in a hospital designated by the Office of Civilian Defense and the Red Cross as a training center. The American National Red Cross will assist the hospital in providing competent instructors and nursing supervisors.
Those who complete the course will be enrolled in the Volunteer Nurses’ Aide Corps of the American National
Red Cross with assurance that they will be given important duties in civilian defense. They will retain their membership in the corps only as long as they continue to render adequate volunteer service during the national emergency. This is defined as 150 hours of volunteer service in a hospital, clinic, or field nursing organization in at least one 3-month period in each calendar year.
The Office of Civilian Defense and the American National Red Cross will provide for this continuing volunteer service by arrangement with local hospitals and field nursing agencies. The Red Cross will maintain a placement bureau to allocate volunteer nurses’ aides to the following types of nursing services: hospitals and clinics, visiting nurses, health departments, school health services, and industrial clinics.
Many opportunities for service
By serving as assistants to qualified nurses, the volunteer nurses’ aides will
New Mexico to stage blackout on Sept. 12; will serve as State-wide test for Nation
Mayor F. H. LaGuardia, Director of the Office of Civilian Defense, on August 17 designated Col. William W. Sterling, representative of the commanding general of the Eighth Corps Area, to act as his representative during the State-wide black-out in New Mexico on September 12, under the auspices of the New Mexico State Council of Defense.
The black-out in New Mexico will be the first test of this kind on a State-wide basis in the Nation. Conclusions drawn by observers for the Office of Civilian Defense will be studied carefully and the results will be made available to each of the other States in the Union.
To focus attention
The purpose of the black-out is to test plans, to focus public attention on the civilian defense program, and to establish a basis for training and coordination of public and volunteer defense workers.
Direction of the black-out will be under the State military department, in cooperation with State and local defense councils.
Twelve of the larger cities in the State will be “bombed.” As the demonstration progresses the Volunteer Air Raid Spotters and Air Raid Wardens will swing into action. Hie auxiliary police and fire services will be mobilized to cooperate with the regularly established police and fire departments. Volunteer ambulances, nurses, nurses’ aides, etc., will be mobilized. State police and the auxiliary police will cooperate to stop all automobile traffic and to require motorists to
extinguish headlights for the duration of the black-out.
Border State chosen purposely
Significance of the demonstration in New Mexico lies in the fact that it is a border State, with considerable areas of sparse population and potentially the section through which “an invasion” of the United States conceivably might be initiated.
OCD cooperating
The Office of Civilian Defense in Washington, through its regional director, R. E. Smith, of the Eighth Civilian Defense Area in San Antonio, is cooperating with the New Mexico State Council of Defense in perfecting the demonstration.
The State defense council, collaborating with the local defense councils and the State guard has mobilized all village, township, city, and county officials; the Red Cross; the American Legion; police and fire departments; Rotary, Kiwanis, and Lions Clubs, and other service organizations; the Boy Scouts; and representatives of women’s organizations for the demonstration. Besides serving as a test for the Nation it is expected that the State-wide black-out will provide the basis for the permanent defense machinery in the State.
Plans for the black-out have been worked out in minute detail and have the approval of Director LaGuardia, and the Military, Naval and Social Security representatives on the Board for Civilian Protection of the Office of Civilian Defense.
August 19, 1941
* DEFENSE ★
23
continue their training. In event of sudden emergencies they then will be available immediately for reassignment to hospital or field duty by the Office of Civilian Defense. There will be opportunity for a number to serve as members of the Mobile Medical Field Units now being organized in hospitals along both seaboards and in industrial centers in the interior, according to plans announced recently by the OCD.
Volunteer nurses’ aides will wear the uniform and insignia of the Office of Civilian Defense. The insignia for nurses’ aides will be a red cross within the triangle and circle of the Office of Civilian Defense, indicating that the aide was enrolled and trained by the Red Cross in civilian defense.
Applicants may enroll at the Red Cross Chapter Houses and the courses will begin in each locality as hospital arrangements are completed.
The program was devised by the Medical Advisory Board of the Office of Civilian Defense which comprises:
Dr. George Baehr, medical director, United States Public Health Service, chief medical officer of the OCD; Dr. Robin C. Buerki, Madison, Wis., past president, American Hospital Association; Dr. Elliott C. Cutler, Boston, Mass., professor of surgery at Harvard Medical School; Dr. Oliver Kiel, Wichita Falls, Tex., Texas State Board of Medical Examiners; Dr. Albert McCown, Washington, D. C., assistant medical director, American Red Cross; Dr. Fred W. Rankin, Lexington, Ky., president-elect of the American Medical Association.
★ ★ ★
McKenna heads Paper, Pulp, Printing and Publishing Branch
Appointment of Norbert A. McKenna of New York City as chief of the Paper, Pulp, Printing, and Publishing Branch of the Office Production Management was announced August 15 by W. L. Batt, Sr., Deputy Director of the Production Division.
Mr. McKenna has resigned as vice president of the United States Plywood Corporation, in charge of its moulded plastic plywood division. Prior to his connection with that company he was a partner in the banking firm of Eastman, Dillon and Company from 1936 to 1940 and president of American Airports Corporation.
INTER-AMERICAN AFFAIRS ...
1,600-page guide to give complete tourist information on American republics
Nelson A. Rockefeller, Coordinator of Inter-American Affairs, announced August 17 that a two-volume tourist guide to the other American Republics is being prepared under the sponsorship of the Coordinator’s Office.
The guidebook, designed to serve and stimulate the growing tourist trade among the nations of the Western Hemisphere, is being edited by Earl Parker Hanson, biographer and author of several books oh Latin America. The publication of the guidebook was initiated in the Coordinator’s committee on publications, headed by Munroe Wheeler and John Peale Bishop.
To contain full information
In addition to giving full information on such matters as travel opportunities, regional attractions, transportation facilities and local accommodations, the guidebook will stress culture, history, art, architecture, and archeology, in order to foster among travelers an appreciation of the cultural achievements of the nations of Central and South America and the Caribbean area.
Each volume of the guidebook will consist of approximately 800 pages and 350,000 words, illustrated with photographs, maps and statistical information. Volume I, which will be issued first, will deal with the following countries: Argen-
tina, Brazil, Chile, Peru, Bolivia, Ecuador, Paraguay, and Uruguay. Volume II will cover Mexico, El Salvador, Nicaragua, Haiti, Dominican Republic, Honduras, Panama and the Canal Zone, Cuba, Guatemala, Costa Rica, Venezuela, and Colombia. It is planned that both volumes be published by the spring or early summer of next year.
Advisory council helping
An advisory council is helping in preparation of the guidebook. This council consists of Dr. Leo S. Rowe, director of the Pan American Union; Francisco Hernandez, chief of the Pan American Union Travel Division; Dr. Lewis Hanke, director of the Hispanic Division of the Library of Congress; Raye Platt, director of Hispanic studies of the American Geographical Society of New York; Philip Ainsworth Means, author and archeologist, and Dr. Waldo G. Leland, director of the American Council of Learned Societies, and the members of the committee on publications.
Commenting on the guidebook, Mr. Rockefeller said:
“In the truest sense of the word, this is a cooperative effort. The consulates of all the other American Republics have been consulted and are cooperating wholeheartedly. The entire travel trade has likewise been most helpful.”
Rockefeller announces changes in press section
Changes in the staff of the press section of the Coordinator’s Office were announced August 16 by Nelson A. Rockefeller, Coordinator of Inter-American Affairs.
Francis A. Jamieson, formerly with the Associated Press, has been named chairman of the press section, which is concerned with news work in the other American Republics. Mr. Jamieson will continue as director of the Division of Information. Harry W. Frantz, on leave of absence from the United Press Associations, has been named director of the press section.
Duncan Aikman, on leave of absence from the newspaper PM, has been named
special adviser in the press section. Karl Bickel, former president of the United Press, has resigned as chairman of the press section, but will remain as special adviser to the Coordinator.
★ ★ ★
TEXTS OF ALL ORDERS
AVAILABLE WEEKLY
Requests are being received for the weekly Supplement, which prints the texts of all official orders issued by defense agencies under the Office for Emergency Management. The Supplement will be mailed free of charge to any paid subscriber of Defense who addresses the Distribution Section, Division of Information, OEM, Washington, D. C.
24
★ DEFENSE ★
August 19, 1941
Committee formed to advise 0PM on non-metallic minerals
E. R. Stettinius, Jr. announced August 15 the creation of a special technical committee to advise the Office of Production Management on nonmetallic minerals.
The new group is a special subcommittee of the advisory committee on metals and minerals which was appointed by the National Academy of Sciences. Clyde E. Williams, director of the Battelle Memorial Institute, Columbus, Ohio, is chairman of the general advisory committee on metals and minerals.
Members of other special subgroups of the advisory committee—ferrous minerals and ferroalloys, metals, conservation and substitution, and tin smelting and reclamation—have already been appointed.
The newly announced nonmetallic minerals group, staffed by some of the country’s outstanding specialists in this field, has the following membership:
R. P. Heuer (chairman), General Refractories Co., 1600 Real Estate Trust Building, Philadelphia; Paul Tyler (secretary), United States Bureau of Mines, Washington, D. C.; L. E. Barringer, General Electric Co., Schenectady, N. Y.; B. C. Burgess, United Feldspar & Minerals Corporation, Spruce Pine, N. C.; W. S. Landis, American Cyanamid Co., 30 Rockefeller Plaza, New York, N. Y.; G. R. Mansfield, U. S. Geological Survey, Washington, D. C.; Robert B. Sosman, U. S. Steel Corporation, Kearny, N. J.
John D. Sullivan, Battelle Memorial Institute, Columbus, Ohio; Frank J. Tone, Carborundum Co., Niagara Falls, N. Y.; William M. Weigel, Missouri Pacific Railroad Co., Missouri Pacific Building, St. Louis, Mo.; M. M. Leighton, State
Legislation sought for voluntary physical rehabilitation of 40 percent found unfit
A Government-financed voluntary physical rehabilitation program for selectees rejected for Army service has been recommended by the Commission on Physical Rehabilitation, and steps are now being taken through appropriate channels to obtain necessary legislation, Federal Security Administrator McNutt announced August 15.
The seven-member commission was appointed by Mr. McNutt to make a study after medical examinations under the Selective Service Act indicated that more than 40 percent of examined men are being classified as unfit for general military services.
The commission reported to Mr. McNutt that it had been informed authoritatively that the Army would maintain its present high physical standards of eligibility and would not undertake a rehabilitation program.
Proportion rejected alarming
In approving the report of the commission, the administrator said the proportion of registrants rejected because of physical defects was rather alarming in view of the extraordinary demand which the over-all defense program is making upon manpower.
“While this program is directed primarily toward making more men available for military service,” Mr. McNutt said, “it has far greater implications on
the future public health of the country, particularly in relation to the opportunities for the replacement of these registrants into civilian pursuits after the emergency is over.”
Alternative is lower standards
“In the opinion of the Commission,” the report stated, “the alternative to such a voluntary program is lower physical standards of eligibility for selective service and compulsory physical rehabilitation after induction into the Army. Action is required along the lines of one or the other of these alternatives for the present standards of physical eligibility have reduced the Nation’s reservoir of eligible registrants to a number far lower than had been anticipated.”
The Rehabilitation Commission is composed of Dr. George Baehr, chairman, clinical professor of medicine, Columbia University, New York City; Dr. Arthur W. Allen, chief, East Surgical Service, Massachusetts General Hospital, Boston; Dr. Frederic A. Besley, professor of surgery, Northwestern University of Medical School, Waukegan, Ill.; Dr. Channing Frothingham, chief of medical service, Faulkner Hospital, Boston; Dr. Harry S. Gradle, chief of staff, Illinois Eye and Ear Infirmary, Chicago; Dr. John J. O’Rourke, dean. Dental School, Louisville, Ky.; and Dr. M. T. MacEarchern, associate director, American College of Surgeons, Chicago.
Geological Survey Division, University of Illinois Campus, Urban, Hl.; G. A. Bole, Orton Ceramic Foundation, 1445 Summit St., Columbus, Ohio; R. B. Wittenberg, International Agriculture Corporation, 61 Broadway, New York, N. Y.; Oliver C.
Ralston, U. S. Bureau of Mines, College Park, Md.
The new group is now preparing reports for the Office of Production Management on graphite, mica, asbestos and other strategic minerals.
OFFICE FOR EMERGENCY MANAGEMENT
Central Administrative Services : Sidney Sherwood, Director.
Defense Aid Reports Division: Maj. Gen. James H. Burns, Executive Officer.
Defense Communications Board: James Lawrence Fly, Chairman.
Defense Housing Division: C. F. Palmer, Coordinator.
Health, Welfare, Nutrition, Recreation, and Related Defense Activities : Paul V. McNutt, Coordinator.
Information Division: Robert W. Horton, Director.
Wayne Coy, Liaison Officer
National Defense Mediation Board : Wm. H. Davis, Chairman.
Office of Scientific Research and Development: Dr. Vannevar Bush, Director.
Office of Civilian Defense: Fiorello H. LaGuardia, Director.
Office of the Coordinator of Inter-American Affairs: Nelson Rockefeller, Coordinator.
Office of Price Administration and Civilian Supply: Leon Henderson, Administrator.
Consumer Division: In charge of Harriet Elliott, Associate OP ACS Administrator.
Transportation Division of the Advisory Commission : Ralph Budd, Commissioner.
Office of Production Management:
council
William S. Knudsen, Director General.
Sidney Hillman, Associate Director General.
Secretary of War Henry L. Stimson.
Secretary of the Navy Frank Knox.
Secretary, Herbert Emmerich.
General Counsel, John Lord O’Brian.
Production Division: John D. Biggers, Director.
Purchases Division: Donald M. Nelson, Director.
Priorities Division: E. R. Stettinius, Jr., Director.
Labor Division : Sidney Hillman, Director.
Research and Statistics Bureau: Stacy May, Chief.
U. S. GOVERNMENT PRINTING OFFICE: 194!