Defense : Official Weekly Bulletin of the Office for Emergency Management. Vol. 2, No. 17

[Defense : Official Weekly Bulletin of the Office for Emergency Management. Vol. 2, No. 17]
[From the U.S. Government Publishing Office, www.gpo.gov]

DEFENSE

OFFICIAL WEEKLY BULLETIN OF THE OFFICE FOR EMERGENCY MANAGEMENT

OFFICE OF PRODUCTION MANAGEMENT, NATIONAL DEFENSE ADVISORY COMMISSION, DEFENSE HOUSING COORDINATOR, DEFENSE COMMUNICATIONS BOARD, COORDINATOR OF HEALTH AND WELFARE, NATIONAL DEFENSE RESEARCH COMMITTEE, NATIONAL DEFENSE MEDIATION BOARD COORDINATOR OF COMMERCIAL AND CULTURAL RELATIONS BETWEEN THE AMERICAN REPUBLICS

WASHINGTON, D. C.

APRIL 29, 1941 VOLUME 2, NUMBER 17

In this issue

Review of the week in defense.................................................... 2
Production—Manufacturers will conserve cork......................................... 3
Labor—Great Lakes shipbuilding conference called.................................... 5
Mediation Board—Agreements reached on four cases in week............................ 6
Purchases—178 certificates of necessity issued April 1-15 ...................... . 9
Housing—President approves construction of 4,470 new units ...................... 10
Priorities—Zinc supply to be surveyed.............................................. 14
Transportation—Freight carloadings increase.................................... . . 16
Prices and Civilian Supplies—Stabilized copper prices urged........................ 18
State and Local Cooperation—Activities for defense councils........................ 22

WE, THE PEOPLE ... The opening phrase of the Constitution of the United States is utilized in the poster reproduced on this week’s cover. In red, white, and blue, the poster is being issued by the Division of Information, Office for Emergency Management, for OPM, and will be displayed in post offices, by manufacturers with defense contracts, and by State defense groups, and related organizations. Copies may be obtained on request to OEM. Two-column mats available to publishers. Size of poster, over all, 14 by 22 inches.

812891*—41

★ DEFENSE ★

April 29, 1941

Review of the Week in Defense

Labor-employer disputes and their threat to national defense held the spotlight last week. The National Defense Mediation Board, after 3 days’ negotiations, recommended acceptance of the President’s formula for reopening the coal mines. Northern operators and union representatives concurred. Southern operators refused and mediation halted.
More successful was the board in forestalling a strike at General Motors plants. The union agreed to postpone a strike vote until mediation was given a reasonable trial. A conference was called for May 5.
Raw materials vital to defense industries and prices continued to receive active attention, but all eyes were on the coal mines. Without coal, which was becoming more scarce daily, industry could not forge ahead.
Meanwhile, Sidney Hillman, Associate Director General, OPM, estimated that 2,500,000 persons had returned to work in the last year. At the same time the Labor Division sought to stabilize employer relations in the shipbuilding industry at one of a series of zone conferences. The meeting, in Chicago, followed successful negotiations on the Pacific Coast.

Prices and civilian supplies
The Office of Price Administration and Civilian Supply maintained the swift pace it set the first week. Copper and brass manufacturers were warned to reduce their prices voluntarily before OPACS established formal price schedules. Makers of farm implements were asked not to raise their prices.
The role of price controls in the Government’s efforts to forestall inflation such as that which followed the World War was explained by Leon Henderson, Administrator of OPACS, in a radio address. The Government, he said, was moving on three fronts: (1) Price controls where necessary, (2) expansion of supplies where possible, and (3) reduction of consumer consumption by higher taxes.

State and local defenses
The role of the civilian in national defense began broadening from one of “passive” protection to “active” aid to military forces.
The State and Local Cooperation Division advised defense councils to register anyone who wished to assist the Army Air Corps in “spotting” enemy aircraft. Men and women who can qualify will be called upon to watch for air raiders and to chart their courses, under military direction, so that communities in their path may be warned.

Supplies of raw materials
With defense production growing daily, OPM’s Production and Priorities Divisions intensified efforts to insure adequate supplies of raw materials for industry. A growing emphasis on substitution of materials where possible in the manufacturing of civilian goods was indicated.
Insulation manufacturers were asked to conserve cork by Eliminating it from roof-insulation, except in refrigeration. Cork is essential to defense for aircraft and automotive gaskets, and for other purposes.
As defense demands on the steel industry have increased, the problem of importing sufficient tungsten ore, used in its manufacture, has grown more serious. The National Academy of Sciences last week suggested to OPM the possibilities of substituting molybdenum, a domestic product.
Another U. S.-produced raw material, bauxite—the ore from which aluminum is made—is being mined at a 50 percent higher rate than last year, the Bureau of Mines reported. Production can be multiplied swiftly if necessary. Sixty percent of the U. S. supply now comes from Dutch Guiana, the remainder out of Arkansas.
Still concerned over an anticipated increase in the demand for zinc, the Priorities Division considered means for increasing the stock pile. A general priorities rating was suggested as a possibility.
Uncle Sam’s soldiers are going to drill in shoes of composition soles, the OPM Purchases Division disclosed. Higher

leather prices, plus a wish to experiment further in leather substitutes, induced the Army to purchase more shoes with the composition base.

Defense housing
Demountable dormitories for single persons and trailers for families were authorized by President Roosevelt to be used in six communities until more permanent shelter can be provided defense workers. The Housing Coordination Division, meanwhile, announced construction contracts for 3,428 new dwellings, bringing the total to 51,915.

★ ★ ★

New stock of Army shoes will average $3.30 a pair
A survey of bids received in the recent invitation for Army shoes indicates that the average price of the shoes bought will be approximately $3.30 per pair, Donald M. Nelson, Director, Division of Purchases, Office of Production Management, announced April 21.
It is to be noted, Mr. Nelson pointed out, that due to what the trade describes as slightly higher material costs, the price of shoes with leather sole specifications will average about $3.35 per pair. In view of this rise in price, and for the purpose of further experimentation in other materials, the Army has determined to buy a quantity of Army shoes with composition soles, the price of which will average around $3.15 per pair.
Average price for the two items, Mr. Nelson said, will be in the vicinity of $3.30 per pair, which is substantially the level that has prevailed on the last two Army shoe purchases.
Mr. Nelson further pointed out that both the Division of Purchases and the Office of Price Administration and‘Civilian Supply are carefully watching price fluctuations in the hide market, which have a direct effect on the costs of both Army and civilian shoes.

★ ★ ★

ESTIMATED ARMY STRENGTH

The War Department estimated the strength of the United States Army as of April 17, 1941, at 1,210,600, including 68,600 officers and 1,142,000 enlisted men.

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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April 29, 1941

★ DEFENSE *

PRODUCTION...

Manufacturers cooperate to conserve cork; supplies from French territory cut off

The Office of Production Management disclosed April 25 that it was taking steps with the cooperation of affected manufacturers to conserve the United States supply of cork, which is obtained from countries bordering the western Mediterranean.
Telegrams were dispatched by the Materials Branch of the Production Division to all cork insulation manufacturers, asking them to help curtail the use of corkboard for roof insulation, except for the roofs of refrigerated spaces, during the remainder of 1941. The telegrams requested that the manufacturers:
1. Fill only orders for such use, accepted on or before the date of the request, except in such instances where the OPM recommends a special exception because the order is vital to the defense program.
2. Notify distributors and dealers of the OPM’s request and seek the cooperation of the distributors and dealers.
3. Notify persons to whom quotations on corkboard for roof insulation are outstanding and attempt to enlist the cooperation of such persons in releasing the manufacturer from the quotation.
In cases where manufacturers are unable to obtain release from outstanding

quotations, they were asked to refer the facts to the Office of Production Management for its consideration.

Companies affected
Those to whom the telegrams were sent included: H. W. Prentis, Jr., president, Armstrong Cork Co., Lancaster, Pa.; R. R. John, Cork Insulation Co., 155 East Forty-third Street, New York City; F. R. Mitchell, Mitchell & Smith, Inc., Copland Avenue, Detroit, Mich.; H. H. Bruns, Mundet Cork Corporation, 65 South Eleventh Street, Brooklyn, N. Y.; and H. H. Bose, United Cork Corporation, Kearny, N. J.
All of the cork insulation manufacturers have given assurance of their cooperation.

French supply cut off
The United States is dependent for its cork supply upon Spain, Portugal, and North Africa. Shipments from French territory in North Africa, an important source, have been cut off since Germany defeated France. Purchases of cork from Spain and Portugal have been increased but it is necessary to conserve the supply for Army and Navy and essential civilian needs.

Bauxite supplies appear adequate for expanded aluminum production

A new survey by the Bureau of Mines shows that domestic bauxite production could be multiplied swiftly in case an emergency disrupted imports, the Metals and Minerals Section of the Office of Production Management reported April 24.
Bauxite is the ore from which aluminum is derived.
Pointing out that about 60 percent of the supply is now imported from Dutch Guiana while the remainder comes principally from Arkansas, with minor amounts from Alabama and Georgia, the Metals and Minerals Section issued this statement:
“As long as shipping is available, the policy will be to use the imported ores in about the same proportion as in recent

years. This is done to conserve the very limited domestic supply and to hold that supply back for possible use in an emergency when shipping might be wholly unavailable.
Domestic production increases
“It does not mean that domestic production is being held back for the sake of more cheaply available foreign ores. As a matter of fact, the production from domestic sources is being Increased to meet about its proportionate share of the largely expanded demand.
“Domestic production in 1941 is running 50 percent higher than in 1940.”
The Metals and Minerals Section said that the Bureau of Mines, at the request of the OPM, had made a survey of capacity for domestic production of bauxite and had reviewed the reserve situation.
This survey shows that domestic baux-(Continued on page 11)

New Group Resources Unit will aid small factory owners

Sidney Hillman, Associate Director General OPM, April 24 assigned M. Clifford Townsend, who is serving on Mr. Hillman’s staff as special adviser on labor and agricultural problems, to the OPM’s Defense Contract Service, where he will establish a new Group Resources Unit.
The Defense Contract Service, part of the Production Division of the Office of Production Management, is assisting the Army and Navy in enlisting suitable manufacturing plants in defense production. Its chief is Robert L. Mehornay.

Group action

The new Group Resources Unit will deal with local groups’ of factory owners formed to participate jointly in defense production.
A number of such groups have been organized, and additional ones are expected to be organized, by small manufacturers whose facilities may be inadequate individually to handle defense contracts or subcontracts but who may be able to do so by working together.

Exchange information

Hie new unit will advise such groups regarding the labor facilities, management, and production planning required to obtain contracts or subcontracts under the defense program. Existing local groups, upon request, will be informed of the various management and planning organizations that have been formed in other areas.
Existing facilities will be analyzed for specific production possibilities. Where such production possibilities exist, local organizations will be aided in contacting both the armed services and prime contractors with a view to enabling them to participate in the defense program.

Aid for upset industries

This new unit, under Mr. Townsend, will also concern itself with substitute operations for labor and manufacturers whose normal functions, through no fault of their own, may be seriously interfered with by the application of Government defense measures which limit supplies of necessary materials.
The new unit as an integral part of (.Continued on page 11)

★ DEFENSE ★

April 29, 1941

LABOR ...

Democracy strongly implemented by recent labor gains, Hillman tells textile workers

Excerpts follow from the address of Sidney Hillman to the Textile Workers Union, New York, April 24:
Democracy now faces its supreme trial against all who would destroy it. Here is labor’s own historic struggle—freedom against tyranny—magnified to world dimensions.
It was a little less than a year ago when our President, sensing the tremendous perils just ahead, spoke of the need for preparing—both to defend democracy in the world and to implement it at home. At that time he took pains to assure us that the social gains which had been realized in the United States must be cherished and preserved. He identified those gains with the cause of democracy itself.
Now almost a year has gone by. We find that we (in the United States) have broadened the base for the greater and more effective participation of the common man in the day-by-day process of making democracy work.

Employment rises
We have embarked upon a 32-billion dollar defense program. It provides for 16 million man-years of labor—equivalent to a year’s work for 16 million men. Approximately 2,500,000 people who did not have jobs a year ago are now employed. Moreover, most of those who did have jobs then, instead of working 3 and 4 days a week are today employed not only full time but, in many cases, overtime.
The hours of employment per week in the manufacturing industries of the country have risen in all industries. In the heavy goods industries, where defense orders predominate, working hours have increased by 10 percent. The increase in average hourly earnings, together with the greater employment available, has improved the weekly income of our working population.

Wage increase
In addition, many workers throughout the land, like yourselves, have received wage increases during the past year. With the press reporting a steady, substantial rise in profits for so high a per

centage of industry, due primarily to defense orders, it has been reasonable for labor to receive some share of these enlarged corporate eamings.

Permanent advance
This added wage income is of course an immediate gain. But there is a more permanent advance which has come to both labor and the Nation. This is the extension of collective bargaining and the rising number of collective bargaining agreements. These have come into being as the result of the growing acceptance by employers of the law of the land as well as their recognition of the advantages of dealing collectively with representatives of labor’s own choosing. What this means in terms of better cooperation for defense I need not detail to a convention of the Textile Workers Union. It makes for that greater productivity and that higher morale so crucial to the success of the defense program.

Active participation of labor
From the very beginning of the defense program, labor has had a higher place than ever before in the councils of the Nation. It has had widespread repre-

sentation in governmental agencies and bureaus dealing with every phase of defense. In June of last year, the AFL, the CIO, and the Railroad Brotherhoods were invited to join with me almost as soon as I arrived in Washington in the formation of a Labor Policy Advisory Committee to the Labor Division. The members of this committee have been meeting with me regularly to formulate and execute all national programs relating to labor and defense. One of their first actions was to formulate a general labor policy which is central to the Labor Division’s activity and which has been woven into the fabric of the defense program.
I do not for a moment mean to suggest that every section of this statement of policy has been observed in every instance. However, it has served both as a guide and criterion in the award of contracts.

Labor aides
From the very outset, we established our own labor relations staff, which has representation from the AFL and from the CIO. This staff consists of 13 representatives of organized labor, who give their full time to solving employeremployee problems. In all our activities, we are constantly adding to the number of our labor aides and advisers, as the defense program keeps growing.
(Continued on page 20)

Studies indicate women suited for defense work; employment of women increasing

Stating that in times of labor shortage women are in demand as production workers, Miss Thelma McKelvey, Labor Division, OPM, on April 19 outlined for the Indiana National Youth Administration the training and job opportunities for women in industry. Highlights of her address follow:
As a very natural result of the increased demand for labor, men were given first consideration in the training program because it was men industry wanted and was asking for.
The women of this country have always in times of great national emergency been ready, eager, and able to assume their place in industrial production. All studies which have been made indicate that women have been found

satisfactory in virtually every kind of job ordinarily filled by men. It cannot be said categorically that any particular job is absolutely unsuitable for women. Past experience has shown that it is in times of labor shortage that women become in demand as production workers. As a more restricted labor market develops, utilization of other sources of labor reserve undoubtedly will result, and women are the largest, most accessible source.

Labor shortage creates demand
Three distinct phases evolve in respect to women in this expansion: (1) increased buying power resulting from greater production and employment cre-
(Continued on page 20)

April 29,1941

* DEFENSE ★

Negroes employed in construction; aircraft opportunities developing

Excerpts follow from the address of. Sidney Hillman, Associate Director General, OPM, to the First Annual Conference on the Negro in Business, April 18:
America is arming to defend democracy. And we cannot defend democracy abroad unless we extend and preserve democracy at home. We can do this only if we practice democracy daily—by creating a truly democratic way of life in our schools, in our industrial plants, in the communities in which we live.
From the start of the present emergency, the directors of our great defense effort have realized that total defense would be impossible without the total utilization of all of our human resources. And we immediately directed our efforts toward this end.
But, realizing that the skills and aptitudes of Negro workers were as vital as those of all other workers for the swift and uninterrupted re-arming of this Nation, the National Defense Advisory Commission immediately tackled this problem.

Training policy
Our first step was an attempt to see that Negro workers should be qualified for defense employment when the expanding industries made their demands for labor. So when the United States Office of Education initiated a program of defense training in the summer of 1940, the Commissioner of Education an-

nounced, at the behest of the National Defense Commission that “in the expenditure of Federal funds for vocational training for defense there should be no discrimination on account of race, creed, or color.” This statement was implemented later when additional funds were appropriated for national defense training. Again at the behest of the National Defense Commission, the training legislation itself included the following provision:
“No trainee under the foregoing appropriations shall be discriminated against because of sex, race, or color; and where separate schools are required by law for separate population groups, to the extent needed for trainees of such groups, equitable provision shall be made for facilities and training of like quality.”

Employment policy
Coincident with this drive for equitable defense training for Negro workers, the Commission tackled the problem of equitable employment opportunities. The first step in this direction was the announcement of a statement of labor policy which stipulated that workers should not be discriminated against because of age, sex, race, or color.
In this, the Commission had the advice and assistance of Dr. Robert C. Weaver [now in charge of the Negro Employment and Training Section], of
(Continued on page 21)

Multi-million man-hours supplied for defense, Hillman reports to Committee

Sidney Hillman, Associate Director General, OPM, on April 21 outlined to-the Special Senate Committee for the Investigation of the National Defense Program the progress of work of the Labor Division, OPM. Excerpts from his statement follow:
When the Labor Division began its work 10 months ago, it faced an unparalleled problem. The national economy was to be put to the strain of supplying, in the shortest possible time, the greatest quantities and the highest qualities of defense materials. Many of the items called for were unfamiliar.
Our productive capacity was tremendous, but on top of it we now had to call into being a new defense industry. Many

existing industries had to be modified.
And at every point in this process, there would have to be labor—qualified labor of many different kinds.
The central task of the Labor Division has been—and remains—the task of seeing to it that that labor is provided when and where it may be needed in all parts of the country. By purposeful planning, we had to match our multi-billion dollar defense industry with the multimillion man-hours necessary to make it function.
Airplane workers increase 90 percent
The Army and Navy so far have placed contracts for $2,400,000,000 worth of planes, engines, and parts. More than (Continued on page 13)

Great Lakes shipbuilding and labor representatives begin conferences in Chicago

Sidney Hillman, Associate Director General, OPM, April 23, announced the beginning of the second in the series of zone conferences in the shipbuilding industry, designed to stabilize employerlabor relations and insure peak production of ships for the duration of the defense emergency. The conference, covering the private shipyards in the Great Lakes area, was held in Chicago, Ill.
The conference included representatives of the private shipyards of the entire Great Lakes region, representatives of the labor organizations, and representatives of the United States Navy, United States Maritime Commission, and the Labor Division of the Office of Production Management. It is sponsored by the Shipbuilding Stabilization Committee, established last November by the Labor Division of the OPM to insure the maximum production of shipping for defense.

Shipbuilding conferees
The Great Lakes conference was presided over by Walter Fisher, appointed by the OPM, as chairman. Shipbuilding companies invited include: The American Shipbuilding Co. of Cleveland, Ohio; Burger Boat Co., of Manitowoc, Wis.; Calumet Ship & Dry Dock Co. of South Chicago, Ill.; Defoe Boat & Motor Works of Bay City, Mich.; Great Lakes Engineering Works, of River Rouge, Mich.; Lake Superior Shipbuilding Co. of Superior, Wis.; Leathern Smith Coal & Shipbuilding Co. of Sturgeon Bay, Wis.; Manitowoc Shipbuilding Co., of Manitowoc, Wis.; and Toledo Shipbuilding Co. of Toledo, Ohio.

Labor conferees
Labor representatives invited include an American Federation of Labor delegation headed by Joseph McDonagh, secretary-treasurer of the metal trades department of the AFL. John Green, president of the Industrial Union of Marine and Shipbuilding Workers of America, CIO, will also attend the sessions.
Government representatives include Capt. C. W. Fisher, United States Navy; Daniel S. Ring, United States Maritime Commission; and Thomas L. Norton, executive secretary of the Shipbuilding Stabilization Committee, Labor Division, OPM.

★ DEFENSE ★

April 29, 1941

MEDIATION BOARD...

Agreements reached on four cases in week; recommendations issued on coal strike

The National Defense Mediation Board last week (April 21-27) obtained agreements to settle 4 strikes and to postpone the General Motors threatened strike. It also made public recommendations on the bituminous coal stoppage. During the week the Board received certification of 6 additional controversies. Through Sunday, a total of 21 cases had been certified to the Board. Agreements to return to work or not to go on strike had been reached in the case of 15 disputes involving 196,829 men.
The Board received certification of the bituminous coal stoppage shortly after midnight April 24. The stoppage, which began April 2 because of the failure of the United Mine Workers of America, CIO, and the operators of 8 Appalachian States to renew a biennial agreement, involves approximately 400,000 men and was the largest and most serious controversy so far certified to the Board. Hearings before a 3-man panel composed of William H. Davis, vice chairman of the Board, representing the public, Walter Teagle, representing employers, and Clinton Golden, representing labor, opened Friday morning.

Board’s final statement
The recommendations of the panel of the Board came after sessions lasting until 10:30 p. m. Friday, 1:30 a. m. the following night, and all afternoon on Sunday. The Board’s final statement, issued at 5:45 p. m. Sunday, is as follows:
The panel of the National Defense Mediation Board, designated to act in the dispute between the Bituminous Coal Operators and the United Mine Workers of America, has explored at length the matters in controversy. The proceedings have been conducted in the presence of the fact that the President of the United States on April 21, 1941, publicly recommended and urged that:
“1. The miners and operators already in agreement resume coal production under the terms of that agreement.
“2. The operators and miners who have not yet reached an agreement, enter into wage negotiations and at the same time reopen the mines, the agreement ultimately reached to be made retroactive to the date of resuming work.”
Throughout the discussion the prin

cipal point in controversy, and the one which in the judgment of the panel has prevented an agreement, was the matter of a differential in the daily wage rate, between that portion of the Appalachian coal region which lies principally in the western portion of Pennsylvania, eastern Ohio, and the northern part of West Virginia, on the one hand, and that portion of the Appalachian region which lies principally in the southern portion of West Virginia, eastern Kentucky, and portions of northern Tennessee and western Virginia, on the other hand. The United Mine Workers and the operators in the northerly portion of the Appalachian region have accepted without reservation the President’s proposal. The operators in the southerly portion of the Appalachian region have not accepted it. They have not at any time been willing to agree that wages fixed by future negotiations be made retroactive to the date of resuming work. Many formulas have been discussed. The last offer of those who have not agreed to the President’s proposal was to fix their wage scale now on the base of an addition of one dollar to the daily wage and a properly related percentage increase in other wage rates; wages not to be subject to further negotiation, and the contract to run to March 31, 1943. This offer as made did not directly mention the differential. The effect of it was that elimination of the differential could be brought about only if the Mine Workers would surrender forty cents of the one dollar increase to which the operators in the northern portion of the Appalachian region had agreed. This offer was rejected.

Two parties accept
After the most careful consideration, the panel is unable to recommend this offer as a substitute for the President’s proposal.
The panel, therefore, unanimously recommends that the President’s proposal, as made on April 21, as quoted above, be accepted today by the miners and all operators in order that production of coal essential to the national defense may begin on Monday April 28, 1941.
The Board announced that this proposal had been accepted without reser

vation by the United Mine Workers of America and by the northern operators. It was rejected by the representatives of the Southern operators, both as a group and individually.
The General Motors case was certified to the Board at 10 p. m. April 25. The following morning telegrams were dispatched to both the company and the United Automobile Workers of America, CIO, which had threatened an early strike over wage and closed-shop demands, requesting both sides to “make every possible effort to see that production is maintained with the understanding that any agreement reached in settlement of the dispute will be made retroactive to Monday, April 28, 1941.” May 2 was set as the date for hearings before the board. Early that afternoon representatives of both the company and the union wired the Board agreeing to these conditions.
The Board then requested James F. Dewey, U. S. Conciliator assigned to the case, to “proceed with negotiations with the General Motors Co. and the United Automobile Workers of America in an effort to secure a complete settlement or at least a narrowing of the issues before the hearing.” The Board also wired both the company and the union urging “both parties to exert every effort to bring these further negotiations to a successful conclusion before Friday May 2. By so doing you will contribute not only to national defense but to the relief of this willing but sadly overburdened Board.”

Cowles case settled
The first settlement reached last week was in the case of the 2-month old strike at the Cowles Tool Co., Cleveland, Ohio. The United Automobile Workers, CIO, had gone on strike February 27 over questions of wages, hours, and the union’s status. The case was certified April 5 and hearings were held April 11, 12, 21, and 22. Agreement was reached on April 22, pending ratification by the union. The Board was notified April 26 that this ratification had been made. The men were to return to work Monday, April 28.
The second agreement to return to work was reached in the case of the American Car & Foundry Co., which was manufacturing shell parts at its Buffalo plant. A strike was called April 15 involving 1,500 men and was certified to the Board April 22. The issue involved

April 29, 1941

★ DEFENSE ★

was the determination of the bargaining agency in the plant. Hearings opened in Washington April 25 with representatives of the company, of the Steel Workers’ Organizing Committee, CIO, and Federal Labor Union No. 22518 of the AFL. The Board panel April 26 made a three-point recommendation to the three parties involved “with the understanding on the part of the panel that these recommendations will be followed.” The points were as follows:
1. The strike and picket lines shall be called off forthwith.
2. The company shall reemploy all workers employed on April 15, 1941, at its Buffalo plant, without discrimination as soon as possible, insofar as work is available for them.
8. The National Labor Relations Board, in accordance with the assurances given to the National Defense Mediation Board, shall promptly investigate and, if appropriate, hear any petitions or charges presented in accordance with the National Labor Relations Act. In such proceedings all parties shall cooperate to expedite hearings, and to that end accept short notice of such hearings.
The third agreement to return to work was reached in the case of the 17-day-old strike by the Steel Workers’ Organizing

Committee, CIO, against the Birdsboro Steel Foundry & Machine Co. of Bifds-boro, Pa., over the question of the proper bargaining agency. The case, which involved 1209 employes was certified to the Board April 17, and set for a hearing April 22. However, the Board was notified on April 21 that the company, the Steel Workers’ Organizing Committee and the independent union involved had reached an agreement and that work would be resumed the next day.
Last week’s fourth settlement was reached in the case of the dispute between the International Association of Machinists, AFL. and the California Metal Trades Association. Meetings with the Board over this 18-day-old strike over wages and overtime pay, were adjourned late Friday, April 25, with the understanding that direct negotiations between representatives of the 64 firms involved and the union would be resumed in San Francisco, looking towards an early agreement. Two days later the Board learned that these direct negotiations had resulted in an agreement and that the 4,000 men involved in the dispute would return to work April 28.
A second strike was postponed April 22 at the request of the Board pending hearings in the case of the Kellogg Switchboard & Supply Co. of Chicago, Ill.

Num- Date of
ber of Date back-to- Date
Case Location Date of strike men certified work issues Status
in- to Board agree- settled
volved ment
Universal Cyclops Mar. 28 Mar. 28
Steel. Mar. 30 Apr. 2
Vanadium Corpo- Apr. 2 Apr. 14
ration of America. Apr. 2 Apr. 6
Condenser Corpo- Apr. 14 Apr. 11
ration. Bridgeville, Pa... Apr. 6 Apr. 12 Closed.
International Har- Bridgeville, Pa... Apr. 11 Apr. 22 Board investi-
vester Co. South Plainfield, Apr. 12 Apr. 19 gating issues.
Snoqualmie Falls N. J. Apr. 22 Apr. 27 Closed.
Lumber Co. Rock Falls, Ill... Apr. 19 Apr. 21 Board investi-
Allis-Chalmers Richmond, Ind.. Apr. 27 Apr. 26 gating issues.
Manufacturing Co. Chicago-Tractor. Apr. 21 Closed.
Seas Shipping Co.--- Chicago-McCor- Apr. 26 Closed.
Standard Tool Co.--- mick. Closed.
Cowles Tool Co..... Snoqualmie Jan. 31...... 1,400 Closed.
Phelps-Dodge Co.--- Falls, Wash. Feb. 10______ 225 Closed.
J. Sklar Mfg. Co.... West Allis, Wis.. Mar. 10..... 2,200 Meeting with
1. Minneapolis Moline New York City.. Jan. 21___... 250 Mar. 27 Board.
1 Power Implement Cleveland, Ohio--- Feb. 17______ 1,500 Mar. 27 Negotiating di-
3. Co. Cleveland, Ohio. Jan. 30______ 6,000 Mar. 27 rectly.
4. California Metal Elizabeth, N. J__ Feb. 28...... 5,500 Mar. 27 Closed.
5. Trades Associa- Long Island City, Oct. 28,1940 1,060 Apr. 1 Closed.
6. tion. N. Y. Jan. 22...... 7,800 Apr. 3 Closed
7. Birdsboro StSel Minneapolis, Mar. 22..... 25 Apr. 5 Meeting Apr.
8. Foundry & Ma- Minn. Jan. 27______ 650 Apr. 5 29.
9. chine Co. Hopkins, Minn. Feb. 27______ 80 Apr. 5 Meeting Apr.
10. Arcadia Knitting San Francisco, Apr. 8___... 1,800 Apr. 8 28.
11. Mills. Calif. Apr. 4______ 495 Apr. 9 Meeting with
12. Kellogg Switchboard Birdsboro, Pa„.. No strike.___ 2,100 Apr. 15 Board.
18. & Supply Co. Allentown, Pa... Apr. 7______ 1,500 Apr 15 Plant to reopen.
14. John A. Roebling Chicago, Ill...... Apr. 4______ 1,209 Apr. 17 Meeting Apr.
15. Sons Co. Trenton and Roe- Apr. 3___... 210 Apr. 17 29.
16. American Car & bling, N. J. Apr. 22 1.... 580 Apr. 21 (’)
IT. Foundry Co. Buffalo. N. Y.... Apr. 15______ 6,500 Apr. 22
18. American Potash & Trona, Calif...... Apr. 15______ 1,500 Apr. 22
19. Chemical Co. Appalachian Mar. 15..... 1,800 Apr. 23
20. Bituminous Coal.... States. Apr. 2....... 400,000 Apr. 24
». General Motors______ Detroit, Mich.... («) 160,000 Apr. 25

¹ Postponed at request of Board. s Public recommendations made.

Molybdenum suggested as possible substitute for tungsten

A preliminary report on the possibilities of substituting molybdenum for tungsten in the manufacture of steel has been submitted by the Advisory Committee on Metals and Minerals of the National Academy of Sciences to the Materials Branch, OPM, it was announced April 26.
This study was requested by the Materials Branch, in an effort to be prepared should there be any curtailment of imports of tungsten. The United States, although a large producer of tungsten, normally imports 50 percent more than it produces, and while the present tungsten supply is about enough for all uses, a curtailment of imports would result in an eventual shortage. The United States produces most of the world’s output of molybdenum and it, therefore, is more available than tungsten.

Sources of supply
China and Latin America are the chief sources of tungsten ore for this country. Other important foreign producers are Burma, Portugal, the Malay States, and Australia.
The preliminary report submitted by the Academy of Sciences states that molybdenum high-speed steels can be substituted for tungsten steels “rather sweepingly if the necessity arises.”
The Academy of Sciences report states that there will be places in which a substitution of molybdenum high-speed steels for tungsten steels will result in an impairment of quality. “For most uses, however,” the report adds, “the dislocation incident to substitution will not be caused by the inherent quality of the finished tools, if properly manufactured and heat treated, but in the heat-treatment operation. Necessity may force many shops to acquire better heattreatment facilities.”
In connection with alloy tool steels, the report makes suggestions for substituting molybdenum for tungsten but warns that such substitutions “should be approached with caution and usually only after trial.”
The same qualification is attached to suggested substitution in the case of die steels for hot working.
Substitution of molybdenum for tungsten In valve and valve insert steel and in intake valves for aircraft engines is not recommended at the present time.

★ DEFENSE ★

April 29, 1941

PURCHASES ...

Compilation of defense contracts cleared and awarded April 17 through April 23

Defense contracts totaling $412,567,925 were awarded by the Army, Navy, and Maritime Commission and cleared by the Division of Purchases, OPM, during the period April 17 through April 23.
This compares with $104,160,640 for the previous week and $166,645,661 for the week ended April 9.
Cleared contracts awarded by the War Department during the latest period totaled $28,355,381, by the Navy Department $19,412,544, and by the Maritime Commission $364,800,000.

ORDNANCE

War Department

Hercules Powder Co., Wilmington, Del.; powder; $588,087.50.

Navy

Pollak Manufacturing Co., of Arlington, N. J.; manufacture of items of ord-nace equipment; $1,156,932.

SHIP CONSTRUCTION

Maritime Commission

Sun Shipbuilding & Dry Dock Co., Chester, Pa.; 72 single-screw high-speed, Commission-designed tankers of 16,000 deadweight tons; $180,000,000.
South Portland Shipbuilding Corporation, South Portland, Maine; 16 emergency cargo carriers; $26,400,000.
Bethlehem-Fairfield Shipyard, Baltimore, Md.; 12 emergency cargo carriers; $19,800,000.
North Carolina Shipbuilding Co., Wilmington, N. C.; 12 emergency cargo carriers; $19,800,000.
Houston Shipbuilding Corporation, Houston, Tex., 12 emergency cargo carriers; $19,800,000.
California Shipbuilding Corporation, Los Angeles, Calif.; 24 emergency cargo carriers, $39,600,000.
Richmond Shipbuilding Corporation, Richmond, Calif.; 24 emergency cargo carriers; $39,600,000.

Oregon Shipbuilding Corporation, Portland, Oreg.; 12 emergency cargo carriers; $19,800,000.
CONSTRUCTION
War Department
Wilaka Construction Co., New York, N. Y.; construction of temporary buildings and utilities, Windsor Locks Airfield, Conn.; $919,000. Three contractors: Gulf Bitulithic Co., Austin Road Co., and Texas Bitulithic Co., Dallas, Tex.; construction of aprons, Ellington Field, Tex.; $1,056,643.32.
National Builders, Inc., Minneapolis, Minn.; construction of hospital, Scott Field, Ill.; $613,379.
Atmospheric Nitrogen Corporation, New York, N. Y.; construction of electric generating plant at Ohio River Ordnance Plant, West Henderson, Ky.; $1,100,001.
Franceschi Construction Co., San Francisco, Calif.; construction buildings, Bakersfield, Calif.; $909,200.
Ford J. Twaits Co., Los Angeles, Calif.; construct temporary buildings, Mather Field, Calif.; $1,311,015
Four contractors: Whittenburg Construction Co., Struck Construction Co., Highland Co., Inc., and George M. Eady Co., all of Louisville, Ky.; additional housing, hospital and water supply facilities for the armored force at Ft. Knox, Ky.; architectural and engineering services, Havens & Emerson, Cleveland, Ohio; $3,736,735.
I Goodyear Aircraft Corporation, a subsidiary of Goodyear Tire & Rubber Co., Akron, Ohio; new plant facilities for production of wings and control surfaces in connection with aircraft expansion program; $3,642,280. (Defense Plant Corporation agreement).
Navy
Thomas O’Connor & Co., Inc., Cambridge, Mass.; storehouse for shipbuilding materials at navy yard, Boston, Mass.; $700,000.
| Three contractors: Goode Construction Corporation, Blythe Brothers Co., Harrison-Wright Co., Charlotte, N. C.; construction of Marine Corps Training

Facilities at Marine Barracks, New River, N. C.; $13,000,000.
MacDougald Construction Co., Charleston, S. C.; construction of shipbuilding drydock at the navy yard, Charleston; $2,465,000.

EQUIPMENT AND SUPPLIES
War Department
Mack Manufacturing Corporation, Long Island City, N. Y.; transmission control differentials and drive assemblies for use in tanks; $9,907,427.
Mack Manufacturing Corporation, Long Island City, N. Y.; expansion of plants at Allentown, Pa., New Brunswick, and Plainfield, N. J.; $282,000. (Emergency Plant Facility agreement.)
General Motors Corporation, Chevrolet Division, Detroit, Mich.; 1%-ton cargo trucks; $4,289,613.66.
Navy
Walworth Co., New York, N. Y.; fittings, tube, and pipe flanges; $1,500,000.
Edward G. Budd Mfg. Co., Philadelphia, Pa.; inner smoke pipe; $590,612.

★ ★ ★

Cost of bread for Army in some cases too high
Cooperation of the American baking Industry in supplying United States soldiers with the best possible bread at a reasonable cost while the Army is completing its own baking facilities is being sought and obtained, Donald M. Nelson, Director of Purchases, OPM, said April 24.
Some Army forts and camps have their own bakeries, and baking facilities are being installed in others. In the meantime, Mr. Nelson pointed out, a large quantity of bread must be bought from commercial bakeries, and some will continue to be bought even after the new camp bakeries go into operation. Each soldier eats about half a pound of bread per day.

Appeal to bakers
A study of bread sales to Army camps in seven States, where approximately one-fourth of the Nation’s new soldiers are in training, has just been made by Tom Smith, special adviser on baked goods to the subsistence branch of the Division of Purchases.
Although the quality of bread being supplied the camps is good, Mr. Smith

April 29, 1941

* DEFENSE *

reported to Mr. Nelson, in some instances the cost is unsatisfactory. Efforts are now being made to adjust this situation so that all of the Army’s bread can be bought at the lowest possible figure.
Mr. Smith has written to all bakers who bid on Army bread purchases, urging them to go over their cost items carefully and then to discuss possible savings with the Camp Quartermasters who do the buying. Where savings can be made through changes in specifications and methods of delivery, the bakers have been assured that the Army officers will be receptive to any helpful suggestions.
“The baking industry has an important part to play in the defense program,” Mr. Nelson said. “It is essential that the Army be able to get good bread and that it get it at the most economical cost.”

★ ★ ★

Price and purchasing activities of defense coordinated

Full coordination of activities of the Office of Price Administration and Civilian Supply and the Purchasing Division of the Office of Production Management has been arranged by the executives of the two organizations.

Issue joint statement
Leon Henderson, Administrator of OPACS, and Donald M. Nelson, OPM Director of Purchases, April 23 issued a joint statement of principles to govern relations between the two agencies.
In identical memoranda to their staff members, Mr. Henderson and Mr. Nelson stated that they are in complete agreement on policies and objectives, and said that duplication of activities and efforts of the agencies would be avoided.

Working agreements outlined
Working agreements between the agencies will include the following points:
The Division of Purchases will inform OPACS of the procurement plans and proposals of Government purchasing agencies and departments coming within its scope which might influence price stability or affect the supply of goods for civilians.
Recommendations which OPACS may make in regard to such plans will be made through the Division of Purchases.
OPACS will keep the Division of Purchases informed of all price investiga-

178 Certificates of Necessity for plant expansion issued to 156 corporations from April 1 through April 15

A total of 178 Certificates of Necessity were issued to 156 corporations from April 1 through April 15, the National Defense Advisory Commission announced. These certificates were issued in connection with the construction and acquisition of new plant and manufacturing facilities, the estimated cost of which was $36,519,000.
This brings the total issued up to April 15 to 1,302, and the number of corporations to 1,125. The cost of facilities covered to date was estimated at $878,-942,000.
A compilation of firms for the first half of April, and estimated cost of facilities, follows:
Acme Cotton Products Co., Inc., New York, N. Y.; surgical dressings; $20,000.
Aeroquip Corporation, Jackson, Mich.; self-sealing couplings and hose fittings; $150,000.
American Locomotive Co., New York, N. Y.; Diesel engines and parts; $228,000. .
American Steel Foundries, Chicago, Ill.; steel castings, forgings and machine work; $97,000.
Anaconda Wire & Cable Co., New York, N. Y.; asbestos shipboard cable; $13,000.
The Arkansas City Flour Mills Co., Arkansas City, Kans.; storage of grain; $180,000.
The Atchison, Topeka & Santa Fe Railway Co., Topeka, Kans.; transportation; $2,000.
The Atlantic Foundry Co., Akron, Ohio; iron and steel casting molds; $71,000.
Atlas Powder Co., Wilmington, Del.; munitions; $11,000.
Auto-Ordnance Corporation, Bridgeport, Conn.; munitions, gun parts and accessories; $3,000.
The Babcock & Wilcox Co., New York, N. Y.; water tube steam boilers and parts; $366,000.
Balloffet Dies & Nozzle Co., Inc., Guttenberg, N. J.; diamond wire drawing dies; $3,000.
The Barrett Co., New York, N. Y.; transportation of anhydrous ammonia; $173,000.
Bath Iron Works Corporation, Bath, Maine; destroyers; $100,000.

Bay State Abrasive Products, Westboro, Mass.; grinding wheels and other abrasive products; $60,000.
Bendix Aviation Corporation, South Bend, Ind.; flying instruments, airplane parts and accessories; $498,000.
Birdsboro Steel Foundry & Machine Co., Birdsboro, Pa.; ship castings and presses; $49,000.
Blackhawk Manufacturing Co., West Allis, Wis.; jack assemblies; $76,000.
Boeing Airplane Co. (Stearman Airplane Div.), Wichita, Kans.; factory maintenance and truck garage service; $14,000.
Brewer Dry Dock Co., Staten Island, N. Y.; ship repairs; $122,000.
The Brown Corporation, Syracuse, N. Y.; hardened and ground steel products; $12,000.
Edgar E. Brousius, Inc., Sharpsburg, Pa.; forgings, tool steels, pig iron and diesel engine parts; $20,000.
The Buckeye Foundry Co., Cincinnati, Ohio; grey iron and semisteel castings; $13,000. *
Edward G. Budd Mfg. Co., Philadelphia, Pa.; cargo trucks and reconnaissance bodies; $454,000.
Budd Wheel Co., Philadelphia, Pa.; shells, automotive wheels and hubs; $94,000.
The Burgess Co., Inc., Beaver Falls, Pa.; projectiles; $65,000.
Burrus Mill & Elevator Co. of Oklahoma, Kingfisher, Okla.; storage of grain; $148,000.
Busch-Sulzer Bros.—Diesel Engine Co., St. Louis, Mo.; diesel propelling machinery and diesel driven generators; $215,000.
The Canton Drop Forging & Mfg. Co., Canton, Ohio; forgings for aircraft; $558,000.
Carnegie-Illinois Steel Corporation (Mingo Works, Mingo Junction, Ohio), Pittsburgh, Pa.; armor and special steel for naval vessels; $2,071,000.
Central Ohio Steel Products Co., Galion, Ohio; cargo, troop, and transport bodies; $47,000.
Chicago Grain Corporation, Chicago, Ill.; storage of grain; $442,000.
The Cincinnati Planer Co., Cincinnati, Ohio; metal planers, double housing openside and vertical boring mills; $154,000.
Cleveland Builders Supply Co., Cleveland, Ohio; wet mix concrete; $100,000.
The Cleveland Graphite Bronze Co., Cleveland, Ohio; airplane engine parts; $87,000.
The Crucible Steel Casting Co., Cleveland, Ohio; steel castings; $17,000.
{Continued on page 17)

tions and proposed regulations which might influence procurement for defense.
The Division of Purchases will not clear proposed contracts in which the prices do not conform to regulations set by OPACS, unless OPACS approves such contracts.
All facilities and information of each agency will be made available to the other, and staff members will consult freely on matters coming within the range of their activity.
Each agency will appoint a liaison officer to maintain close contact and to facilitate consultation with the other agency.

Additional lumber will be purchased for Army building

Lumber buying for Army Quartermaster construction projects will be resumed in the near future with the purchase of approximately 20 million feet of lumber for nevz buildings at Jefferson Barracks, Mo., Donald M. Nelson, Director of Purchases, OPM, announced April 24.
Although no new cantonments are in prospect, Mr. Nelson explained that additional construction for existing projects will require close to 150 million board feet.

★ DEFENSE ★

April 29, 1941

HOUSING ...

President approves construction of 4,470 additional dwelling units

President Roosevelt has approved construction with public funds of an additional 4,470 dwelling units for the families of industrial workers and the enlisted personnel upon the recommendation of C. F. Palmer, Coordinator of Defense Housing.

Spread over 10 States
The localities and the number of units which will be constructed with public funds under the coordinated defense housing program are as follows: Vallejo, Calif., 1600; New London, Conn., 300; Macon, Ga., 465; Rockford, Ill., 80; Kingsbury-LaPorte, Ind., 400; Burlington, Iowa, 375; Rolla-Waynesville, Mo., 600; Buffalo, N. Y„ 300; Jackson-Milan-Humboldt, Tenn., 300; and Dumas, Tex., 50.
These homes for defense workers designated for construction by public agencies will be built with funds provided under the $150,000,000 Lanham Appropriation Act. They will be allocated for construction to various agencies by the Federal Works Agency.

50 units for Key West
In addition, President Roosevelt approved construction of 50 dwelling units for Key West, Fla., to be built with funds provided for under the Army and Navy Appropriation Act. The Navy was designated as the construction agency. It was also suggested that 50 additional units in Key West could be provided for by private enterprise.

Defense precipitates need
In his letter to the President, Mr. Palmer stated that the reasons upon which the Government housing programs are based vary to some extent in each case but generally could be summarized as follows:
“National defense activities in the locality have caused a sudden and immediate need for the number of dwelling units indicated for occupancy by persons of limited incomes engaged in national defense activity. Such need cannot be provided for by private capital, either because the extent thereof is beyond the capacity of normal building in

the area, or the continuance of need is so uncertain or the rentals so limited that private capital cannot afford to take the risks involved.”

Demountable housing included
The letter also pointed out that in the case of four communities specific recommendations had been made for the use of demountable construction, with the Navy suggested as the construction agency in one locality. It was pointed out that such construction was deemed particularly important in the case of 1,600 units at Vallejo, Calif.; 100 units at Jackson-Milan-Humboldt, Tenn.; 200 units at Kingsbury-LaPorte, Ind.; and 600 units at Rolla-Waynesville, Mo.

Augment by private construction
In addition it was recommended that 7,100 dwelling units could be provided by private enterprise in the following localities for which public construction was designated: Vallejo, Calif., 1,800 units; New London, Conn., 100 units; Macon, Ga., 500 units, 150 of which would be built by the Defense Homes Corporation; Kingsbury-LaPorte, Ind., 150 units; Burlington, Iowa, 450 units; Buffalo, N. Y., 4,000 units; Milan, Tenn., 100 units.

Temporary housing facilities approved for 6 communities
President Roosevelt yesterday approved a temporary shelter program to apply to six defense communities, upon the recommendation of Coordinator C. F. Palmer. The shelter will be demountable dormitories for single workers and trailers for families and will be used only until such time as more permanent housing can be built.
The areas, with the number of units to be provided are: Aberdeen, Md., 200; Allentown-Bethlehem, Pa., 160; Hartford, Conn., 572; Norfolk-Portsmouth, 248; Vallejo, Calif., 726.
The Farm Security Administration will be the managing agency.

Akron, Ohio, will have 300 new defense dwelling units
Way was cleared for construction of 300 dwelling units for families of industrial workers at Akron, Ohio, April 25, by Coordinator C. F. Palmer.
In a letter to John M. Carmody, Mr. Palmer asked the Federal Works Administrator to proceed with the projected housing program which was approved by President Roosevelt on February 3, 1941.
The letter stated: “As a result of the location of additional defense plants in Akron and the resulting increased influx of labor, we believe that the local building industry is not able to meet the entire defense housing need.”

Industrial activity increases
In a special locality program report prepared by the Division of Defense Housing Coordination on January 30 it was pointed out that employment in Akron was expected to increase due to defense contracts awarded to the Goodyear Tire & Rubber Co., the Goodyear Aircraft Corporation, and the Firestone Tire & Rubber Co.
The WPA, in a survey completed this month, estimated a 0.9 percent vacancy in habitable dwellings for rent in Akron.
With increasing industrial activity it was predicted that labor would have to be imported, and it was determined that the amount of private construction has not been of sufficient volume to meet the expected demand.

★ ★ ★

MILITARY MAPS REVISED

Topographic maps of some of the most vital areas in the coastal and border defense plans of the United States are now being revised for tactical uses by WPA workers under the supervision of the Army Corps of Engineers, Howard O. Hunter, Acting Commissioner of Works Projects, has announced.
Covering an area aggregating over 200,000 square miles along the eastern seaboard, the Great Lakes States, the Mexican border, and the West coast, the maps will show natural and artificial features of the landscape on a scale of approximately one inch to the mile.

April 29,1941

★ DEFENSE *

Contracts for 3,428 dwelling units
awarded for week ended April 19

Construction contracts were awarded for 3,428 new dwelling units for defense workers and enlisted personnel the week ended April 19, Coordinator C. F. Palmer has announced.
The Public Buildings Administration assigned contracts for 665 units at Portsmouth, Va.; 300, Canton, Ohio; 300, Muskegon, Mich.; 200, Sidney, N. Y.; 200, Titusville, Pa.; 100, Hinesville, Ga.; 400, Wichita, Kans.; 150, Ogden, Utah; and 75 at Jeffersonville, Ind., for the week ended April 19. For the same period, the United States Housing Authority awarded contracts at Nashville, Tenn., for 300 units; Orange, Tex., 200; and Newport, R. I., 538.

Total contract awards
The number of contracts now awarded has reached a total of 51,915 units in 112 localities of 44 States and Territories; 32,295 of this number are for civilian workers and 19,620 are for the married enlisted personnel.
Of the 1,336 dwelling units completed the week ended April 19, 478 are located on the West Coast, 192 in the Middle

West, and 666 along the Atlantic seaboard. Seven hundred and ninety-four of the units in these widely separated areas are for civilian industrial workers, and 542 for the married enlisted personnel.
Vallejo, Calif., was in the lead, reporting 384 newly completed units built by the Navy for civilian industrial workers. The United States Housing Authority reported the completion of 178 units at Portsmouth, Va.; 92, Columbus, Ga.; 36, Newport News, Va.; 94, Bremerton, Wash.; and 18 at Norfolk, Va. The Navy reported newly constructed units at Jacksonville, Fla., 200; Norfolk, Va., 130; Indianhead, Md., 83; Great Lakes, Hl., 100; and Portsmouth, Va., 2. Nineteen dwelling units were completed in Jacksonville, Fla., by the Defense Homes Corporation the week ended April 19.
As of April 19, 8,097 units had been completed in 30 localities of 17 States and Territories. The number of family dwelling units for which funds have been allocated under the coordinated defense housing program stood at a total of 72,953.

STATUS OF PUBLIC DEFENSE HOUSING CONSTRUCTION APRIL 19, 1941

Funds allocated Contracts awarded Completed
Apr. 19 Apr. 12 Apr. 19 Apr. 12 Apr. 19 Apr. 12
Number of States and Territories___________________ 17 15
Number of localities......_____________________..... 30 27
Number of projects_______________________________ 47 47 44 43 32 29
Number of family dwelling units (regular).......... 136 136 112 103 8,097 6,761
Civilian industrial workers in private defense 260 260 182 169 1, 727 1,691
industry;______________________________________ 72,953 72,953 51,915 48,487 1,82? 1,166
Civilian industrial workers in Government 23, 980 23,980 14,723 12,823 1,383 1,286
plants_____________________________________.... 13,026 13,026 10,511 „10, 286 3,160 2,618
Other civilians, employed by the Army and 9,949 9,949 7,061 6,398
Navy_________________________________________ 25,998 25,998 19,620 18,980
Married enlisted personnel______________________ 2,035 2,035 1,859 1,859
Number of family dwelling units (trailers)__________ 1,835 1,835 1,659 1,659
Civilian industrial workers in private defense 200 200 200 200
industry______________________________________ 5,345 5,345 3,801 3,601
Civilian industrial workers in Government
plants_____________________________________
Number of units for single persons.__________.______

Use of contract service urged

Appealing to manufacturers to help the defense program and themselves by making the fullest possible use of the Defense Contract Service, OPM has published a pamphlet explaining how to use that Service, which is a branch of the Production Division. The Service has set up 36 field offices over the country to help the Army and Navy enlist every suitable factory in defense production.
“Only that way can we make more weapons now for the defenders of democracy,” the pamphlet points out. “It is the only way to get out the additional

orders that are in the making. They must be filled in record time.”
The publication directs manufacturers who believe they have machine tools and other equipment suitable for defense production to write or visit the Defense Contract Service office at the Federal Reserve Bank or branch bank for the region in which they reside. It asks that listed.
Copies of the pamphlet entitled Defense Contract Service, may be obtained from the Division of Information, Office of Emergency Management, Washington, D. C.

Conservation Unit will serve as clearing house for manufacturers and merchandisers

The Unit of Conservation OPM, announced April 25 that it would undertake to serve as a clearing house of information for manufacturers and merchandisers on the materials situation and methods of conservation.
Robert E. McConnell, chief of the Unit, said he would be glad to pass along to manufacturers and merchandisers, upon request, all the public information he has available bearing on their particular materials problems. This will include reports made to him for this purpose by other manufacturers and merchandisers, data compiled by the OPM, and suggestions made by a special committee of the National Academy of Sciences.

★ ★ ★

Bauxite supplies . . .

(.Continued from page 3) ite production can be multiplied threefold in 2 months and fivefold in 4 months, with little new equipment beyond that already at the mines or in construction, the OPM section said. A considerable part of this increased production could be obtained by merely changing operations from the one-shift per day basis to a three-shift basis. If shipping were not available, the load could be shifted on to American producers without delay.
Sufficient domestic and South American supplies of bauxite appear to be available to meet the greatly expanded aluminum production program required by the defense effort, the Section concluded.
The ore reserves in Arkansas are very limited. If all of the present demands were focused on Arkansas, the entire Arkansas supply would last only a very few years.

★ ★ ★

Group resources . . .

(Continued from page 3)
the Defense Contract Service will have full cooperation of the technical, commercial, and financial experts now making up its general staff.
As one of many duties, Peter R. Ne-hemkis, Jr., special assistant to Mr. Me-hornay, has been dealing with a number of projects in the group participation field. He will work closely with Mr. Townsend.

★ DEFENSE ★

April 29, 1941

Positive action needed for defense success; York, Pennsylvania, program cited

Addressing the Virginia State Junior Chamber of Commerce convention at Danville, Va., April 19, Samuel E. Neel, attorney, General Counsel’s office, OPM, stated in part:
The theme of your convention is “Americanism and Defense,” and it is my sincere belief that if we do not rediscover and redefine what the word “Democracy” means in our minds; if we do not restore that which kept hungry, wet men going at Valley Forge; what led others on gladly into the dark and bloody ground; what settled the prairies and forded the rivers, and if we do not translate that meaning into action, then we, as a free people, will perish and the visions of Monticello, and the Thirteen States and the Gettysburg Address will hang as trophies in the halls of the dictators.

Philosophy of scepticism
You and I are of the same generation. Not many of us are old enough to have been aware in 1914-18 of the song that filled men’s hearts and the beliefs that fed their spirits. But by the twenties we had inquiring minds and, unfortunately, a willingness to accept the philosophy of scepticism, and doubt and confusion which was spooned to us by agile teachers. Science was reality. Yes; and the material things of life. We would drink in as dogma that men were motivated for personal gain, with seldom a questioning thought. And we were quick to reject with equal facility words whose significance lay in their positive qualities; words which had no referent in the purely physical world about us; words which relied for their meaning upon tradition and forgotten ideals and simple beliefs.
“Patriotism?” “What’s in it for me?”
“Truth, Goodness, Beauty?” “Don’t be a Christer!”
“America’s Greatness and Future?” “America’s 60 Families!”
This was the then current Americanism. Its only belief was its unbelief. Its only force was its fear. Its only future was its past.
Democracy of the early settlers
It was not always so. It was not so when the Conestoga wagons were lined up in Independence, Mo., with their whiffletrees facing west. It was not so when a cloth and wire crate was rising from the dunes at Kitty Hawk.

Listen to Archibald MacLeish—
“Three generations back—the Americans had no questions about democracy. They had a job to do. They had the toughest job a people ever undertook— the job of clearing and settling and tying together with ships and roads and rails and words and names the largest area ever lived on as a single social unit by any nation at any time. They had the job of creating on an undiscovered continent a country where a hundred million men could live in freedom from the rest, and from each other * * *
“And while they had that job to do they asked no questions. They knew what Democracy was. They knew what they were, too. They were the smartest, toughest, luckiest, leanest, all-around knowingest nation on God’s green earth. Their way of living was the handsomest way of living human beings had ever hit on. Their institutions were the institutions history had been waiting for. If you had told them anyone else had a harder hold on the earth than they had, or anyone else believed in himself more than they believed in themselves, they would have laughed in your face. And gone on with their working.”

New problems
This is what we must recover. Our problems are not the same, nor will our means to achieve our ends be the same. New times demand new minds and fresh vigor. We do not have a desire to return to the “good old days,” but a desire to meet the hour and whatever it may bring with an ancient strength of spirit.

Positive action
What we shall need is to translate our vigor and enthusiasm into a positive program of action. We must gear our industrial effort to our needs, and we must make our machine produce as effectively and efficiently as humanly possible. Time is of the essence. One airplane today may be worth a dozen a year hence. The price of being late is much too costly to be considered.

The York plan
Let’s come down to earth. Here is an example of what can be done:
York, Pa., has about 57,000 people. No one line of manufacturing dominates the industrial outlook. The largest fac

tory in York today has only 1,800 employees and the second largest is the York Safe & Lock Company which normally has about 450 workers. York County has about 248 plants.
The most distinguishing thing about York, however, is that it is a community of home-owned industries, many of whose citizens have a developed sense of civic responsibility which also extends to national affairs. Thus, early in July 1940, a number of citizens under the leadership of William S. Shipley, chairman of the York Ice Machinery Corporation, became uneasy over the state of American readiness. Far too many people, Mr. Shipley thought, still had an outlook going back to the time when we were at war against England.
This group of York citizens thought that the time was near when America would have to put every ounce of its strength into the defense effort, and they believed that we should be searching out and preparing to utilize all those scattered and partly idle reserves of machinery and manpower which could, in an emergency, be drawn upon to speed defense.

Survey of facilities
Thus, on July 1, 1940, the York Manufacturers Association appointed Mr. Ship-ley and three other officers of other companies as members of a defense program committee. The committee did not have any staff and everybody served on a voluntary basis. The committee’s plan was to survey the manufacturing facilities in the York area and to have the manufacturers collaborate in setting up a pool of unused equipment so that each member of the pool could bid more boldly on defense work.
As a result of this survey, much to the committee’s surprise, they found 1,400 machine tools in 180 plants. Among the industries which did not make metal products but nevertheless had machine tools were those manufacturing cement, biscuits, artificial teeth, roofing material, paper board, bond paper, ribbons, hosiery, tapestry, tape, and shoes. A very excellent machine tool was found in a caramel factory which built its own machines.
The first inquiry made of these concerns—which was done by personal contact rather than by letter—did not even ask the various companies whether or not their machine tools would be available for use by others. The committee thought that too many of the companies

April 29, 1941

★ DEFENSE ★

might automatically have said that they were using the tools themselves.
Double shifts for tools
But by February the committee did send letters around asking all concerns to what extent their equipment would be available. Practically all of the companies responded with various suggestions, such as, that their own companies might use the tools during the day and others might use them at night.
The next thing the committee did was to find out what the available supply of skilled labor was. They made surveys of bus drivers and workers in stores to find out which among them had mechanical experience. They were surprised to find substantial numbers of skilled employees. After they had completed the survey they then approached the employers of such persons to see if they would agree to release such men for defense work and obligate themselves to take such men back wh§n their defense jobs were finished.
Union support
Then the committee sought out the support of the unions. The union men had never been in the Manufacturers’ Association. The York Ice Machinery Corporation is itself an open shop but the committee asked the AFL president to get together the business agents of all the local unions. This was done and 16 union men met the manufacturers across the table. They agreed to work together to make possible the supplying of defense industries with needed labor.
Then the committee invited 300 York citizens to a noonday meeting which was addressed by an out-of-town guest who spoke of the defense program in general. The committee invited the Rotary Club and other civic organizations to participate. It asked for support from the doctors, the lawyers, and the ministers.
Subcontracting psychology
What the committee was trying to do was develop a subcontracting psychology. The result of their work is astounding. Altogether, 34 York companies have been drawn into defense work as prime contractors or subcontractors or both. The total value of the orders obtained had by February reached $30,000,000. The York Safe & Lock Co. has become a prime contractor for some 17 or 18 different types of equipment—all on competitive bids.
What has been done in York can be duplicated in thousands of small cities in Virginia and the United States. What it takes is energy and enthusiasm. It takes what Junior Chambers have to give. Here, I suggest, is a very practical

subject for discussion at your convention, a practical way in which you all can help.
Asking whether the American people are willing to admit that the philosophy of Nazism is stronger than the courage of a free people, Mr. Neel stated:
No! We deny that implication with all the strength that is in us. But while denying it we must affirm and define “Democracy.” For it is that word which we must defend. We have been born under it. We have broadcast it throughout the world as our way of life. We stand or fall by the word’s significance.
Is it then what our enemies would have us believe? Is Democracy merely a system of increased corporate earnings— and a new automobile every year—and the best damn Coney Island in the world—and bigger and better deodorants—and the 24-hour blattings of the radio? If Democracy is this—just an accumuation of machines and money, why then let our stock piles rust and our shipways decay, for we will not need them. For such a cause men will not fight.
But if Democracy is what it meant to the Army of Northern Virginia or the Army of the Potomac; if it is the spirit of ’76 and the belief in freedom from oppression and the right to live in peace and the integrity of man’s promise and “certain inalienable rights, among those life, liberty, and the pursuit of happiness,” if that is Democracy—and I believe it is— then it is a cause for which men will fight. And it and those believing in it will triumph and endure and live.

★ ★ ★

Hillman-Committee • . .
(.Continued from page 5)
15,000 planes must be delivered by October 31,1941, with an even greater number to follow within the next 12 months. When the job began, in June 1940, only 117,000 workers were employed by the final assemblers of airplanes, engines, and propellers.
On January first, this year, the number had risen to 185,000, an increase of 58 percent. Today, 220,000 workers are employed, an increase of 90 percent. And in order to deliver the 15,000 planes by October 31, there must be more than three times the number originally employed. This means that we must still provide within the next 7 months 170,-000 workers for the airplane industry in addition to the 103,000 already added. And they all must be qualified workers.
As Secretary Knox indicated to your committee last week, our shipbuilding industry for years was virtually at a stand

still. Our schedule calls for the building of 1,120 naval and mercantile vessels, of which 266 are to be delivered by December 1941. Today our shipbuilding industry, both governmental and private, is employing 251,000 workers. Within the next 18 months we must provide 309,000 more, so that the total will be 561,000.

Machine tools
The machine tool industry often has been called the major bottleneck. This, you know, is the primary operation of all in our modern mechanized industry. The new assembly lines basic to modern mass production cannot be installed until after the machine tool industry has done its job. The work which this industry requires is supremely skilled. After a long period in which very little new plant capacity was being provided, the machine tool industry was at a low ebb of manpower. From 1930 to 1938 it used on the average only 28,000 workers. By February of this year it was employing 85,000, which was a threefold increase. Before December of this year it must have 101,000 workers. This presents an acute problem in this field, for only the highest craftsmanship can translate the blueprints of engineers into one ten-thousandths of an inch precision.
With the very first awarding of defense contracts, we [in the Labor Division] had economic and industrial engineering experts busy analyzing them to find out precisely what numbers and kinds of workers each individual contract would require—and when and where.
The Nation was emerging from a period in which a great deal of its former asset of labor-skill had become rusty or lost. One-time skilled mechanics were trying to make their livings in service stations and behind counters. During the depression a new generation had risen without acquiring the normal measure of trade skill, and certainly without normal experience in industry.
Moreover, industrial production had been rising for some time. It had reached in June of 1940 a level of 115, or 5 percent higher than in 1929. This meant that industry, in large part unrelated to defense, had already reabsorbed a considerable quota of the existing skill.

2 million workers placed
In view of this situation it is gratifying to report to you that more than 2 million workers have already been placed in industry as a direct or indirect result of the defense program.
No serious situation has yet developed in which there was an urgent need of workers that was not fulfilled.

★ DEFENSE ★

April 29, 1941

PRIORITIES...

New procedure for preference ratings announced for Civil Aeronautics orders and contracts

Orders and contracts of the Civil Aeronautics Administration may hereafter be assigned preference ratings by the Priorities Committee of the Army and Navy Munitions Board, it was announced April 18 by E. R. Stettinius, Jr., Director of Priorities, OPM.
This action has been taken, Mr. Stettinius said, because of the importance of the Civil Aeronautics Administration in the national defense program. Under the new arrangement, the Civil Aeronautics Administration may have its orders given preference ratings through the Priorities Committee of the Army and Navy Munitions Board without having to make separate application on each order or contract to the Priorities Division.

Ratings for other agencies similar
Contracts and orders of a number of other United States Government agencies are already being rated in the same way. These agencies include the Coast Guard, the Maritime Commission, the Coast and Geodetic Survey, the Panama Canal, and the National Advisory Committee on Aeronautics.
Orders of these agencies may receive preference ratings automatically, however, only when the material involved appears on the Priorities Critical List. If the material involved does not appear on the Priorities Critical List, applications for ratings may be handled through the Priorities Division of the Office of' Production Management.

All aspects zinc supply situation to be surveyed

A new examination of the supply situation in zinc is to be undertaken by the Minerals and Metals Group of the Priorities Division, OPM, it was announced April 22 by Director E. R. Stettinius, Jr.
Decision to explore all aspects of the situation was made following a meeting between members of the Minerals and Metals Group and representatives of the zinc industry.

Supply-demand reviewed
At this meeting, the present supply and demand picture in zinc was reviewed, with special emphasis on the continuing demands which may be imposed for national defense purposes.
The possibility of changes in the present method of control was among the matters discussed. Each producer of slab zinc is now required to set aside, for the month of May, an amount of zinc equal to 17 percent of March production. Out of the pool thus created, the Priorities Division can allocate to meet special needs.

Among questions to be considered during the investigation are the possibility of increasing the size of the pool, the possibility of a general priorities system for zinc supplies, or the possibility of other changes in the present controls.

Demand exceeds production
The demand for zinc for all purposes, including defense and civilian, is now running ahead of production. As a result, cuts have had to be made in the quantity of the metal going to nondefense channels. Total production of slab zinc in March from all sources approximated 73,000 tons.

★ ★ ★

MANUFACTURING FOR DEFENSE

England is using at least 50 percent of its efforts at the moment for direct defense manufacturing, Samuel Richard Fuller, Jr., Production Division, OPM, has stated.
Canada is putting 44 percent of its manufacturing effort into defense, and this year the United States will employ about 22 percent for the same purpose.

Harvard University to test durability of Army clothing

The old “squirrel in a cage” idea is being put to a new use in testing wear resistance of Army clothing, the War Department revealed April 24 in announcing that scientific tests of clothing under simulated field conditions will be undertaken by Harvard University.
Thirty volunteer soldiers will be used in an experiment that calls for the soldier to march—on a treadmill—for specified lengths of time while wearing regulation Army clothing and carrying standard equipment.
As a part of the experiment the soldier’s fatigue reaction will be checked carefully throughout the entire test.
The equipment in the fatigue laboratory of Harvard University will be altered to make possible this study of performance of men marching under various climatic conditions prevailing in the United States.
Western desert conditions
In the first test the conditions will be made to approximate those found during summer months in the western desert regions of the United States. \
Later the studies will include similar tests during which Arctic conditions will be simulated.
During the tests the marching times for the soldiers will be between 4 and 8 hours, but an individual soldier would not be used more often than once every 10 days.
★ ★ ★

HANDBOOK—“PRIORITIES AND DEFENSE”—AVAILABLE

A handbook on the operation of the priorities system is now available for general distribution upon application to the Division of Information, Office for Emergency Management, new Social Security Building, Washington, D. C.
Called “Priorities and Defense,” the booklet includes a general statement on the theory and administration of the priorities system, a question and answer section, a copy of the Priorities Critical List, the official instructions on priorities to Supply Arms and Services of the Army and Bureaus and Offices of the Navy Department, reproductions of preference rating forms, and other material.
The handbook can be made available in quantities to trade associations or other agencies which want to distribute the material to members.

April 29, 1941

★ DEFENSE ★

News for Retailers

Clothing
The men’s clothing trades have been concerned recently with rumors that the Government was quietly planning further extensive purchases. The facts are these:
Unless there is a substantial increase in the size of the Army, and this can be brought about only by congressional action, the Army is well ahead of its needs on cloth for uniforms and similar items. The “hump” of Army buying is definitely past. As far as uniforms are concerned, for instance, requirements are pretty well filled and there is no immediate prospect for large purchases in this direction.
The situation at the present time with reference to overcoating cloth and serges contracted for by the Army is as follows: From the period from July 1, 1940, to March 31, of this year, 11,082,500 yards of overcoating cloth were ordered. Of this amount, 6,074,465 had been delivered by March 31. During this same period contracts were placed for 32,565,700 yards, 18-ounce, light and dark serge. Of this total, 13,316,928 yards have been delivered. In other words, on overcoatings over half of total orders have been delivered. On serges, a little less than half have been delivered.
Retail stores have advanced their covering for fall in many cases in the belief that deliveries would be slower and that larger commitments were therefore necessary. Neither Government nor trade sources, however, give any indication that a shortage of clothing for fall and winter selling will develop. There is at this time no reason apparent why stores will not be able to get all the goods they need. Some retail organizations are, however, now covering their needs for fall to a considerably greater extent than usual, in some cases as much as 100 percent. The cloth situation is expected to grow progressively easier as Army requirements are cleaned up.
For the summer season there are some shortages in gabardines and tropical worsteds. This is due to the fact that these cloths are made in only a limited number of mills. It appears that some of these mills may also have switched to fall lines earlier than usual. Should the season be a cool one, the demand for these lighter weight fabrics will be less than now anticipated. It is also indi

cated that there are ample supplies of other lightweight summer clothing and that consumer demands can be filled satisfactorily.
Prices
Retailers and consumers as well as the Government will be beneficiaries of the plan which provides for the fuller coordination of the activities of the Office of Price Administration and Civilian Supply and the Purchasing Division of the Office of Production Management.
This new program means that neither the Army nor the Navy will buy above prices set by the OPACS. Both offices in the past have worked closely together but under this new program the relationship of the two divisions are regularized and formalized. One of the benefits for retailers and consumers will be that the prices of consumer goods will be more closely watched.
Shoes
Substitutes can, on occasion, be effectively used in defense purchases to reduce cost. This is illustrated in connection with the recent purchases of shoes.
The Army made, earlier in this year, two big purchases of shoes which aggregated 3,500,000 pairs at an average cost of $3.30 per pair. More recently bids were requested on 2,837,188 pairs but this time the lowest price which could be secured was $3.35 for shoes with full leather soles. It was discovered that satisfactory shoes with composition soles could be purchased at $3.15. The Army then proceeded to buy 548,438 pairs of shoes with composition soles, with the result that the average price for the new purchase will still be $3.30 and not $3.35 as first appeared unavoidable.
By proceeding in this manner, the Army also conserved supplies of sole leather for civilian use. As previously indicated, total Army purchases of shoes represent a comparatively small percentage of total annual production.

Wool
When the Army places orders for wool goods after the clip has been sold, the grower doesn’t always get the benefit of any price advance which may result. Wool growers and dealers recently met with Donald M. Nelson, Director of the Purchases Division of OPM and offi

cials of the Army Quartermaster Corps to discuss this situation and the buying plans of the Government this year. It was agreed that a survey should be made of the wool needs of all of the different Government departments. As soon as this survey is completed the totals will be announced so that the market will soon know the extent of probable Government purchases during the next fiscal year.

Lumber

Although the Army has bought millions of feet of lumber since the defense program started for the construction of cantonments, contrary to the usual assumption, these purchases do not bulk large in relation to annual production. Army purchases up to April 1 are now put at 818,436,000 board feet. In addition, some contractors purchased direct the lumber they used for construction work. Trade estimates put the total lumber used for camp construction at something less than 2 billion board feet.
Annual production of lumber has ranged during the last 4 years between 21.6 and 26.9 billion board feet, the last figure being an estimate of 1940. Total lumber used in camp construction to April 1 would be between 7 and 8 percent of production in 1940.
Last summer and fall the Army had to go into the market and buy huge quantities of lumber and as a result there were some sharp price increases. This advance was strongly criticized by defense officials and, as a result, prices have declined. As a means of stabilizing the market and preventing a similar upward jump in prices at some future date, a “stock pile” program was agreed upon. The Army agreed to buy 266,000,000 board feet. The producers were to pile and store this subject to call. It was to be paid for when shipped. It was further specified that one-half of the total should be on hand by May 1. It is now indicated that the mills are on schedule with reference to the production of this order.

Conservation

The Consumer Division is actively interested in the offer recently made by the mail-order houses and other large merchandisers to intensify efforts to substitute goods made of more plentiful materials for those made of scarce materials vital to defense. The Consumer Division will work through the Unit of Conservation, OPM, to see that the consumers’ interests are well protected in such substitutions as may be made.

★ DEFENSE ★

April 29, 1941

TRANSPORTATION...
Freight carloadings increase despite coal strike; railroads order 335 locomotives

The demand for railroad freight transportation is a composite of many varying factors, relating to different regions of the country and different commodities. This fact is no better illustrated than through analysis of the total car loadings for the week ended April 19, as released by Ralph Budd, Transportation Commissioner, OEM.
During that week the railroads originated a total of 708,651 carloads, an increase of 12.8 percent compared with the corresponding week in 1940.
This increase was recorded despite the coal strike which resulted in coal loadings falling off 80,000 cars compared with the corresponding week in 1940. This 80,-000 decrease represents only a proportion of the loss in carloadings due to the coal strike. With present high industrial levels, it is reasonable to assume that the loss in coal loadings during the week ended April 19 actually ran somewhere between 100,000 and 120,000 cars.
Offsetting the loss in coal shipments so far as the mass total is concerned was principally a heavy increase in ore movement due to the earlier start of navigation on the Great Lakes. Ore loadings during the week totaled 74,345 cars, a figure which was not equaled in any week in 1940. Miscellaneous car-loadings, which includes the bulk of manufactured commodities and accounts for approximately 50 percent of the total carload traffic, continue to hold gains over 1940 previously registered, there being a total of 344,833 cars of miscellaneous freight loading, an increase of 29.6 percent compared with the corresponding week in 1940.
The details of the loadings follow:

CARLOADINGS, WEEK ENDED APRIL 19, 1941

Percent
1941 1940 in-
crease
Grain and grain prod- 33,512 34,163 -1.9
ucts. _________________ 11,502 11,304 1.8
Livestock.............. 33,404 113,957 -70.7
Coal____________________ 9,152 7,525 21.6
Coke___________________ 40,894 32,096 27.4
Forest products________ 74,345 16,178 389.8
Ore...._________________ 161,009 148,150 8.7
Merchandise, 1. c. 1..... 344,833 266,095 29.6
Miscellaneous__________
Total_____..._____ 708,651 628,468 12.8
Cumulative to date, 11, 454,062 10,020,938 14.3
M weeks..............

Railroads add equipment
The railroads on April 1, 1941, had more new freight cars and locomotives on order than on any corresponding date since 1929, according to figures compiled and released by the Association of American Railroads.
On that date, class I railroads had 42,335 new freight cars on order—an increase of 21,223 compared with the number on order on April 1, 1940.
New freight cars, for which orders had been placed on April 1, 1941, included 24,627 box, 15,141 coal, 1,244 refrigerator, 1,167 fiat, and 156 miscellaneous cars.
Class I railroads on April 1, this year, also had 335 new locomotives on order, of which 166 were steam and 169 were electric and Diesel. On April 1, 1940, there were 115 new locomotives on order including 59 steam and 56 electric and Diesel. New locomotives on order on March I, 1941, totaled 298, of which 132 were steam and 166 electric and Diesel.
New freight cars put in service in the first 3 months of 1941, totaled 18,464, compared with 20,253 in the same period last year.
New locomotives put in service in the first 3 months of 1941, totaled 123, of which 27 were steam and 96 were electric and Diesel. In the same period last year, the railroads put 79 new locomotives in service, which included 16 steam and 63 electric and Diesel.
New freight cars and locomotives leased or otherwise acquired are not included in the above figures.

★ ★ ★

Survey of trucking facilities to begin in June

In order that such information would be available at a central point, in anticipation of increased Government purchases of petroleum products, American Trucking Associations, Inc., has launched a survey by means of a comprehensive questionnaire to develop information as to the availability and type of trucks transporting petroleum products. The ATA will thus help to act as a clearing house on orders for this type of Government transportation.

Announcement has been made by Thomas H. MacDonald, Commissioner of the Public Roads Administration that a Nation-wide inventory will be made of all trucks and buses available for hire or lease for transportation of troops and for other defense work. The inventory is scheduled to begin in June of this year.

★ ★ ★

War Department considering use of commercial warehouse facilities

Harry D. Crooks, Consultant on Warehousing, announces that the Quartermaster’s Office of the War Department shows interest in the use of public merchandise warehouses in areas where the capacity of present depots becomes overtaxed. They are investigating the storage of materials on a package basis, and the acceptance of warehouse receipts.
The leading corporations and banks of the country accept the receipts of hundreds of responsible warehouses all over the country. It would seem that Government agencies could tap a great reservoir of desirable storage space by acceptance of commercial practice in this respect.
The Surplus Marketing Administration, the Reconstruction Finance Corporation, and the Commodity Credit Corporation agencies such as Defense Supplies Corporation and Metals Reserve Corporation are large users of commercial warehouse space at present. Unless legally hampered, the Army and Navy and other defense agencies well might investigate these available commercial facilities and no doubt in many cases forestall expensive leasing or new construction.
★ ★ ★

Consultant will visit western steel plants

W. A. Hauck, Office of Production Management consultant on steel capacity and steel production, has left the capital on a trip to the Pacific Coast to visit steel-making plants in the Los Angeles, San Francisco, and Seattle areas, and in Utah.
Mr. Hauck will also visit plants now making heavy steel forgings as well as representative steel warehouses and shipbuilding plants.

April 29, 1941

★ DEFENSE ★

Certificates . . .

(.Continued from page 9)
Crucible Steel Co. of America, New York, N. Y.; shells; $158,000.
Dayton, Type, Inc., Dayton, Ohio; airplane parts, automatic fuze machines and ammunition box mounts; $36,000.
Des Moines Elevator Co., Des Moines, Iowa; storage of grain; $100,000.
The H. P. Deuscher Co., Hamilton, Ohio; grey iron castings, $18,000.
E. I. DuPont de Nemours & Co., Wilmington, Del.; neoprene (synthetic rubber); $7,-500,000.
Eastern Specialty Co., Philadelphia, Pa.; fabrication of sapphire materials; $30,000.
The Electric Furnace Co., Salem, Ohio; electric and fuel fired furnaces; $27,000.
Empire Steel Castings, Inc., Laureldale, Pa.; steel castings; $37,000.
Charles Engelhard, Inc., New York, N. Ÿ.; fuel air ratio indicators; $14,000.
Ex-Cell-O Corporation, Detroit, Mich.; boring, grinding, and drilling machines; $354,000.
Farrand Optical Co., Inc., New York, N. Y.; fire control optical instruments; $140,000.
Federal Shipbuilding and Dry Dock Co., Kearny, N. J.; naval vessels; $29,000.
The Firestone Tire & Rubber Co., Akron, Ohio; bullet proof gas tank lining of airplanes; $100,000.
Fleetwings, Inc., Bristol, Pa.; airplane parts and assemblies; $80,000.
Fruehauf Trailer Co., Detroit, Mich.; trailers, tractors and parts; $619,000.
The Fulton Sylphon Co., Knoxville, Tenn.; fuzes; $15,000.
The Gear Grinding Machine Co., Hamtramck, Mich.; joints, velocity and gear grinding machines; $133,000.
General Electric Co., Schenectady, N. Y.; propeller motors for aircraft; $169,000.
General Engineering & Manufacturing Co., St. Louis, Mo.; machine tools; $100,000.
General Machinery Corporation, Hamilton, Ohio; machine tools; $502,000.
General Motors Corporation, Detroit, Mich.; fuel injectors for diesel engines; $68,000.
General Steel Castings Corporation, Eddystone, Pa.; armor grade steel castings for tank parts; $25,000.
Thomas B. Gibbs & Co., Delavan, Wis.; fuse timing equipment and escapement springs; $40,000.
The Goerz Flour Mills Co., Newton, Kans.; storage of grain; $150,000.
Gooch Feed Mill Co., Lincoln, Nebr.; storage of grain; $150,000.
The Goodyear Tire and Rubber Co., Akron, Ohio; synthetic and natural rubber, rubber blocks, truck tires and tubes; $730,000.
Greenerd Arbor Press Co., Nashua, N. H.; presses for aircraft and munition manufacturers; $5,000.
Hammond & Irving, Inc., Auburn, N. Y.; steel forgings; $19,000.
Allan Hancock College of Aeronautics, Santa Maria, Calif.; ground school instructions; $14,000.
Hawaiian Gas Products, Ltd., Honolulu, Hawaii; commercial and breathing oxygen, acetylene hydrogen and nitrogen; $122,000.
The Heppenstall Co., Bridgeport, Conn.; machined steel forgings; $42,000.
Industrial Tape Corporation, New Brunswick, N. J.; cloth, paper and cellophane tape; $65,000.
International Elevator Co., Minneapolis, Minn.; storage of grain; $5,000.
International Milling Co., Minneapolis, Minn., storage of grain; $140,000.
Johnson & Johnson, New Brunswick, N. J.; cloth, paper and cellophane tape; $232,000.
Kansas City, Mexico & Orient Railway Co.

of Texas, San Angelo, Tex.; transportation; $43,000.
Kermath Manufacturing Co., Detroit, Mich.; marine engines and parts; $30,000.
Key Co., East St. Louis, Ill.; steel castings; $81,000.
Kinnear Manufacturing Co., Columbus, Ohio; steel rolling doors; $112,000.
Knappen Milling Co., Augusta, Mich.; storage of grain; $30,000.
Lake Washington Shipyards, Houghton, Wash.; net tenders, baulk tanks and seaplane tenders; $188,000.
The Lamson and Sessions Co., Cleveland, Ohio; airplane screws, bolts, nuts, rivets and kindred products; $226,000.
A. C. Lawrence Leather Co., Peabody, Mass., sheep shearlings for aviation; $26,000.
Leger Mill Co., Altus, Okla.; storage of wheat; $19,000.
Lombard Governor Corporation, Ashland, Mass.; screw machine parts; $170,000.
Los Angeles & Salt Lake Railroad Co., Omaha, Nebr.; transportation; $21,000.
Los Angeles Shipbuilding & Drydock Corporation, San Pedro, Calif.; ships for the Navy; $250,000.
Louisville & Nashville Railroad Co., Louisville, Ky.; transportation; $7,000.
J. L. Lucas & Son, Inc., Bridgeport, Conn.; rebuilding and reconditioning of machine tools; $190,000.
Manitowoc Shipbuilding Co., Manitowoc, Wis.; submarines; $300,000.
John H. Mathis Co., Camden, N. J.; net tenders; $23,000.
McGill Manufacturing Co., Valparaiso, Ind.; precision bearings; $89,000.
Miehle Printing Press & Mfg. Co., Chicago, Ill.; machine tools, gun mounts, and sights; $12,000.
Milwaukee Foundry Equipment Co., Milwaukee, Wis.; foundry, molding machines, core grinders, and presses; $15,000.
The Monarch Machine Tool Co., Sidney, Ohio; metal working lathes; $640,000.
Montana Flour Mills Co., Great Falls, Mont.; storage of grain and flour milling; $70,000.
Mueller Brass Co., Port Huron, Mich.; brass and bronze rods, copper tubing and screw machine products; $35,000.
National Carbon Co., Inc., New York City, N. Y.; graphite and carbon electrodes, $1,127,-000.
National Electric Coil Co., Columbus, Ohio; electrical coils for dynamos, motors, and electric locomotives; $24,000.
Nelson Grain Co., Inc., Claude, Tex., storage of wheat; $10,000.
John Nooter Boiler Works Co., St. Louis, Mo.; chemical, power, and nitrator tanks; $43,000.
Northern Pump Co., Minneapolis, Minn.; gun mounts and electric hydraulic equipment; $596,000.
Northwest Magnesite Co., Pittsburgh, Pa.; dead burned magnesite; $396,000.
Norton Co., Worcester, Mass.; machine tools and fused aluminum oxide; $284,000.
Orange Roller Bearing Co., Inc., Orange, N. J.; roller bearings; $53,000.
Orégon-Washington Railroad and Navigation Co., Omaha, Nebr.; transportation; $36,000.
The Paterson Leitch Co., Cleveland, Ohio; concrete reinforcing steel bars; $12,000.
Payne Furnace & Supply Co., Inc., Beverly Hills, Calif.; gas furnaces for army cantonments; $114,000.
The Pipe Machinery Co., Cleveland, Ohio; machine tool parts and special tools and gages; $13,000.
The Pittsburgh & Lake Erie Railroad Co., New York, N. Y.; transportation, $5,044,000. „ Poor and Co., Canton, Ohio; drop forgings; $194,000.
Prest-O-Lite Battery Co., Inc., Indianapolis, Ind.; aircraft storage batteries; $14,000.
The Public Terminal Elevator Co., Wichita, Kans.; grain storage; $75,000.
Pullman-Standard Car Manufacturing Co.,

Chicago, Ill.; howitzer carriages, $245,000.
Reed-Prentice Corporation, Worcester, Mass.; machine tools; $74,000.
Reliance Manufacturing Co., Chicago, Ill.; parachutes and parts; $24,000.
Rockford Machine Tool Co., Rockford, Ill.; hydraulic shapers, planers, and slotters; $108,000.
Rollway Bearing Co., Inc., Syracuse, N. Y.; straight, cylindrical roller bearings; $182,000.
Rosenbaum Brothers, Chicago, Ill.; storage of grain, $50,000.
Sampson Motors, Inc., Los Angeles, Calif.; aircraft and machine tool parts and assemblies; $53,000.
Savage Arms Corporation, Utica, N. Y.; Browning machine guns; $148,000.
The William Schollhorn Co., New Haven, Conn.; pliers, action hard tools, and wire cutters; $13,000.
Scoular-Bishop Grain Co., Omaha, Nebr.; storage of grain; $18,000.
Scovill Manufacturing Co., Waterbury, Conn.; fuses and boosters; $81,000.
Sheffield Steel Corporation of Texas, Houston, Tex.; ingots, billets, structural shapes and barbed wire; $12,000.
Shellabarger Mill & Elevator Co., Salina, Kans.; storage of grain; $159,000.
Somerset Machine & Tool Co., Inc., Plain-field, N. J.; tools, rifle, machine gun, lathe, and motor parts; $9,000.
Sperry Gyroscope Company, Inc., Brooklyn, N. Y.; bombsights, airplane instruments, and compasses; $54,000.
Standard Machinery Co., Providence, R. I.; ball thrust and eccentric ball roller bearings for gun mounts; $18,000.
L. S. Starrett Co., Athol, Mass.; machinists’ precision tools; $93,000.
Sterling Engine Co., Buffalo, N. Y.; marine engines; $125,000.
Sterling Wheelbarrow Co., West Allis, Wis.; steel molding flasks, steel bottom boards, and steel core plates; $9,000.
Strom Steel Ball Co., Cicero, Hl.; steel balls for ball bearings; $77,000.
Struthers Wells-Titusville Corporation, Titusville, Pa.; gun tubes, breech rings, and boat shafts; $649,000.
B. F. Sturtevant Co., Hyde Park, Mass.; turbine rotor blades, main drive gears, and pinions; $30,000.
Sundstrand Machine Tool Co., Rockford, Ill.; machine tools, pumps, and transmissions; $113,000.
Swanson Tool and Machine Corporation, Erie, Pa.; special tools and parts for armament and machine tool manufacturers; $35,000.
Taylor-Wharton Iron and Steel Co., High Bridge, N. J.; manganese steel castings; $63,000.
Tex-O-Kan Flour Mills Co., Dallas, Tex.; storage of grain; $391,000.
The Henry G. Thompson & Son Co., New Haven, Conn.; flexible black metal cutting band saw blades; $8,000.
Tital Metal Manufacturing Co., Bellefonte, Pa.; brass and bronze products; $189,000.
The Tool Steel Gear & Pinion Co., Elmwood Place, Ohio; gears, pinions, and sprockets; $88,000.
Triumph Explosives, Inc., Elkton, Md.; detonator fuse; $11,000.
Turbelite, Inc., Houston, Tex.; machine gun mounts and parts; $7,000.
Twin Disc Clutch Co., Racine, Wis.; clutches; $275,000.
Uniloy Accessories Corporation, Lancaster, N. Y.; tail wheel assemblies and aluminum alloy castings for aircraft; $7,000.
Union Asbestos & Rubber Co., Cicero, Ill.; asbestos pipe covering and insulation; $208,000.
Union Twist Drill Co.; Athol, Mass.; drills, taps, and dies; $35,000.
United Engineering & Foundry Co., Pittsburgh, Pa.; hydraulic forging presses; $792,000.
(Continued on page 23)

* DEFENSE ★

April 29, 1941

PRICES AND CIVILIAN SUPPLIES . . .

Copper producers urged to set prices at 12 cents; brass-ingot reductions also suggested by Henderson

“Ceiling prices on copper and on brass Ingot will not be fixed by a formal price schedule at the present time,” Leon Henderson, Administrator of the Office of Price Administration and Civilian Supply, OEM, announced April 25.
“It is recognized,” Mr. Henderson stated, “that the major portion of the copper industry has maintained a stable price of 12 cents, but that a minor section has been selling at the so-called outside price which has ranged up to 13% cents or more. This price disparity is unwarranted. Furthermore, while the amount of this outside copper is not a large percentage of the total copper sold, its price and that of copper and brass scrap and ingot seem to move together. Thus, the price of ingot has exceeded what is considered a reasonable level. Instability, therefore, now exists in a market of large magnitude.

Voluntary cooperation
“At meetings recently held in Washington,” Mr. Henderson went on to say, “members of the copper and brass ingot industries expressed the opinion that the situation is not out of hand to such an extent as to require formal ceiling prices. They urged that an attempt be made to correct the situation through cooperation of the industry with the Government.
“This office is eager that producers have the opportunity by their individual actions to stabilize the market. Therefore, it is suggested to all copper producers selling at more than 12 cents that they gradually reduce their prices until a uniform maximum price of 12 cents is established for all copper, both primary and secondary. Similarly, the suggestion is made to the brass ingot producers that they reduce their prices. Our goal is a uniform 12-cent copper price and a price for brass ingot which is in proper relation thereto.”

Price suggestions
The Office of Price Administration and Civilian Supply is now suggesting the following maximum prices to be made effective immediately:
Primary producers who are now sell

ing or offering to sell at 12 cents should continue to do so.
Primary producers who are now selling or offering to sell at more than 12% cents should reduce their selling price so as not to exceed 12% cents.
All custom smelters should sell not in excess of 12% cents.
Casting copper producers should sell at prices not exceeding 12% cents.
85-5-5-5 ingot should sell at prices not exceeding 13 cents; and other ingots at the usual differentials.

Differential question complex

“The differential suggested above between the maximum prices of custom copper and brass ingot,” Mr. Henderson explained, “should not be considered as final. The question involved is a complex one to which we have given careful consideration. We are willing to see how the suggested differential will operate in practice and, on the basis of our experience with it, reexamine the question in order to achieve the most desirable distribution of the available supplies of scrap.”

★ ★ ★

MILLIONS OF SHIRTS, TROUSERS, OVERCOATS ARE IN THE ARMY
NOW

Approximately 46,000,000 items of clothing have been procured by the Army since July 1, 1940, the War Department announced April 22. The more important items include overcoats, raincoats, trousers, shorts, and jackets.
Total procurements by the Army of certain garments have been as follows: 2,292,008 wool overcoats with roll collar; 4,747,984 wool coats; 2,770,935 raincoats; 5,994,910 wool serge trousers; 8,977,871 cotton khaki trousers; 8,613,084 wool shirts, including flannel and worsted; 10,166,153 cotton khaki shirts, and 2,780,-. 000 field jackets.
Production of practically all of these items is now running ahead of requirements.

Manufacturers of farm implements asked to adhere to present prices
Manufacturers of farm implements were requested April 21 not to increase farm machinery prices at this time, in a letter sent out by Administrator Leon Henderson. Voluntary cooperation was asked in the hope “that other steps may be avoided.”
Mr. Henderson pointed out that in announcing the steel price schedule recently he had stressed “the wide range of finished products into which steel enters as a raw material and the importance of maintaining stable prices in these finished products.”
Among the products Mr. Henderson had in mind at that time were farm machinery and equipment because of their importance as a factor in the cost of farm production.
Text of Mr. Henderson’s letter to farm equipment manufacturers follows:
As you know this office has recently taken steps to maintain steel prices at the levels which prevailed during the first quarter of this year. In announcing the Steel Price Schedule, I drew attention to the wide range of finished products into which steel enters as a raw material and the importance of maintaining stable prices in these finished products.
One of the products which I had especially in mind was farm machinery and equipment. The prices of these products are an important factor in the cost of farm production. As such they are related to the prices of our entire domestic supplies of food and fiber. Should labor supplies become scarce in certain agricultural areas as a result of the defense program farm machinery will become even more important in the farm economy.
Recently wage increases have been announced in certain parts of the industry. Moreover, I am aware that certain other cost elements have advanced. But with assured prices of the major raw material and a favorable demand in the industry generally, I feel justified in requesting that there be no increase in farm machinery prices at this time. I also request that there be no alteration in your cash discounts, trade discounts, volume discounts, carry allowances, methods of quoting prices, credit practices or other trade or price policies which would have the effect of increasing net manufacturer’s prices of individual Items. Where prices of equipment have not yet been quoted for this year, I request that you adhere to the price schedules which were last in effect. I am asking your voluntary cooperation in the hope, which I am sure we both share, that other steps may be avoided in this industry.
If carrying out this request Imposes undue hardships on your company in some particular, I will entertain a plea for its modification, and at any time I will be glad to meet with representatives of your industry to discuss questions raised by this request.

April 29, 1941

★ DEFENSE ★

Goods to be labeled for kind and quantity of wool

Labels specifying the kind and quantity of wool in consumer goods will begin to appear on wool articles this summer, reports the Consumer Division of the Office of Price Administration and Civilian Supply in the current issue of its semimonthly bulletin, “Consumer Prices.”
The new labeling program is the result of the Wool Products Labeling Act, passed by Congress last year, which goes into effect July 14. It applies to all wool products except carpets, rugs, mats, and upholstery fabrics. This law supplements the labeling of silk and rayon goods which has been in effect for several years. The wool labeling program, as outlined by the Consumer Division, follows:
Meaning of labels
The label will give information not previously available, showing whether the wool in the article is “new,” “reprocessed,” or “reused.” When a label says, for instance, that an article has “20-per-cent wool,” this means that the wool has not been used before.
A label may also say that the article includes “20-percent reprocessed wool.” This wool comes from ends of cloth, for example, which have been reduced to fiber and then rewoven. Such wool has not been used previously by a consumer.
“Reused wool” comes from wool products which have been used by consumers, reduced to fiber and then rewoven. It is perfectly sanitary.
A label may read: “20-percent wool— 20-percent reprocessed wool—60-percent reused wool.” Or the label may say “100-percent wool” or that the article contains some rayon or cotton in addition to one or more classes of wool.
An article made entirely of new wool is not necessarily better than one containing some of the other classes or fibers. The United States Army, after stringent tests, has specified overcoat material made of 65-percent new wool and 35-percent reprocessed or reused wool. On shirtings, the Army has been buying cloth made of 80-percent new wool and 20-percent cotton.

Comparisons

Since there are hundreds of grades of new wool, a good grade of reprocessed wool will be better than a poor grade of new wool. Generally, reprocessed wool is only a little less valuable than new wool, assuming similar original grades.

While reused wool is lowest in many qualities, it is satisfactory for a number of uses. The newness of the fiber plays only a minor part in determining the actual value or quality of a particular article. More important are the length of the fiber, the manner of construction, and the treatment in manufacture.
Buying information concerning durability, warmth, shrinkage, color fastness, and care is not provided for in the Wool Products Labeling Act. The Consumer Division suggests that consumer-buyers encourage the provision of such information on wool products.

★ ★ ★

Newark rent increases declared unwarranted

Rent increases in Newark, N. J., threatened because of forthcoming property tax changes, are not justified in advance of the final fixing of the tax rate, according to a statement on April 22 by Hon. Meyer Ellenstein, mayor of Newark, and Joseph P. Tufts, chief of the rent section in the Consumer Division, OPACS.
Following a letter from Mayor Ellenstein to Leon Henderson, Administrator of OPACS, Mr. Tufts conferred with the mayor and with Newark housing and welfare officials. The new tax proposals will result in slight, if any, increases in the total annual property tax, the local officials said. They declared there is no excuse for rent increases before the tax rate is set and the effects determined.

Fair rents bill
Mr. Tufts was informed that the communities of northern New Jersey are supporting State fair rent legislation based on a suggested bill issued in March by the Consumer Division. The bill will be introduced in the New Jersey State Legislature shortly.
In the meantime, Mayor Ellenstein is appointing a fair rent committee for Newark to use voluntary means for the prevention of undue increases. The committee will consist of representatives of landlords, tenants, and the public.

★ ★ ★

Unions forming consumer interests committees

Local action on consumer problems and living costs in the Philadelphia area is foreseen through a consumer interests committee, created by the Philadelphia Joint Board of the Amalgamated Cloth

ing Workers of America, Miss Harriet Elliott, head of the Consumer Division of the Office of Price Administration and Civilian Supply, reported this week.
In a letter commending the union on this step, Miss Elliott said: “When working men and women begin to study the problems of food and fuel prices, rentals, and other basic factors in the cost of living with the same seriousness they now give to the question of wages, I am sure that we shall develop sound and dependable plans of action designed to keep wages and living costs in line with each other.”
Legal controls
“We are not prepared in America, and I am sure we never will be,” Miss Elliott said, “to set up a complicated set of legal controls designed to regulate the prices of those multitudes of things which we consider essential to satisfactory living. Price control became necessary in the last war because of inordinate rises in living costs. In 1941 we hope to be able to keep prices at levels which will forestall the kind of spiraling which occurred during the last war.”
Miss Elliott said a number of other labor organizations are forming local committees to safeguard consumer interests and living standards.
★ ★ ★

Phoenix Iron Co. requests relief from steel price order

Representatives of the Office of Price Administration and Civilian Supply on April 25 inspected the books of the Phoenix Iron Co., Phoenixville, Pa, in connection with a request received from that company for relief from the steel price order issued last week.
Officials of the company state that prior to March 31 they were charging more for structural steel shapes than the prices quoted for such products by larger companies in the field. Under the price order no company is permitted to charge more than the published schedules in effect March 31 for the industry generally. The company, therefore, asked that it be permitted to continue its previous price practice although it would thus be charging more than large companies. There is no question involved in this case of passing on higher wage rates by a price increase.
In order to determine advisability of granting this request a study was made of the company’s previous price policy, its earnings record, its order backlog, and related matters.

★ DEFENSE ★

April 29, 1941

Democracy . . .

(Continued from page 4)

Strikes fewer
Of course, we have sought always to limit work stoppages so far as possible in the interests of high regular output of defense materials. You and I know how patriotically labor has responded in furthering this endeavor despite headlines which often emphasized unduly such interruptions of production as have occurred. I have said before and I say now that in spite of the vast and ever-increasing expansion in industry—a condition which in the past has always been accompanied by a rise in industrial disputes—strikes are becoming fewer and of shorter duration. This is all the more remarkable since we well know that the enlargement of defense industries has brought with it many new perplexing problems such as labor migration, adjustments of new personnel to new working condiitons, and many other factors which ordinarily give rise to industrial discord.

Other labor activities
Labor is represented and is playing a vital part in the recently established National Defense Mediation Board.
Still another activity in which labor is making a creative contribution to defense is in the training of workers, now being carried on under the auspices of the Labor Division to insure an adequate supply of qualified labor for the needs of the ever-expanding defense program. Without this training, serious bottlenecks would have developed in defense production.
In view of the importance of decent housing to the morale and efficiency of our workers we have from the very beginning pressed for the construction of adequate houses in the areas where new workers are required. In this respect we have just started to get under way. Congress has made available $300,000,000 for defense housing and an additional appropriation of $150,000,000 is pending. But our housing program will have to be much greater and more far flung. We cannot depend upon private investment. The responsibility is one that the Government must assume in a larger measure than it has done thus far.
In order to utilize local labor most effectively and to head off its unnecessary migration, the Labor Division actively

participates in the work of a Plant Site Committee.
We are seeking to guard against maladjustments that arise from priority orders, with their adverse effects upon workers. We have just established a special division in part manned by representatives from labor to protect the interest of workers whose jobs might be jeopardized because of restrictions placed upon materials for defense reasons.
Still another instance of the part that labor is playing in formulating policies for defense is the Shipbuilding Stabilization Committee which was established last autumn in the Labor Division. The Shipbuilding Stabilization Committee is made up of shipyard owners and representatives from the AFL and CIO unions whose members are employed in the shipyards, as well as spokesmen for the Navy and Maritime Commission.
As a result of the policies formulated by this committee, an agreement was signed recently covering all private shipyards on the Pacific coast which are now engaged on $667,000,000 worth of defense orders.
A conference covering the shipyards of the Great Lakes began yesterday. It will be followed next week by a conference including the shipyards of the Atlantic coast and immediately thereafter we shall hold a similar conference for the Gulf shipyards.
Democracy implemented
In the light of labor’s new importance and recognition we can again affirm that democracy, as the constant striving to improve the well-being of all its people, is becoming more strongly implemented in the United States today than ever before.
Free labor or slave labor
Yet in the world beyond our borders democracy is facing its ultimate challenge.
No American worker needs to be reminded what is at stake for labor in the present work crisis. Everything is at stake: The right to speak and think and act as free men; the right to bargain collectively; the right to worship as we choose; the right to have a voice and vote in determining our own destiny. The real issue at stake is whether free labor or slave labor shall prevail.
I do not need to tell you of the importance of an efficient national defense program in coming to grips with that issue. You know what has happened elsewhere. Neither you nor I rest under the illusion that it cannot happen here. Where is the free labor of France?

Where are its labor leaders? What has occurred in Norway and Belgium and Holland and Czecho-Slovakia and in every country where totalitarianism has blacked out civilization?
The resistance to the surge of totalitarianism over Europe is no ordinary conflict. It is the issue of life and death for freedom everywhere.

All-out production
In modern* mechanized warfare, it is the productive capacity of the workshop that counts. Our defense production, therefore, must be an all-out effort. It must be as abundant as our resources, our equipment, our skills, and our will to help. It is up to you—as it is up to all labor—to give of your best to speed the national defense program. This is no time for industry to fear the results of plant expansion. This is no time for labor to withhold the full and final measure of its contribution to defense.

Every minute counts
The future of man’s freedom today in large part depends upon the hands, the skills, the resourcefulness of American labor. These must be mobilized for our supreme effort today. The time is growing short. Every minute counts. I know that American labor will neither fail nor falter in the months ahead.
By working together in a free and voluntary fashion to counteract all threats to our democracy, we are forging the instruments which will be needed in creating the new world of peace and the dignity of man.

★ ★ ★

Women in defense ...

(Continued from page 4) ates additional opportunities in occupations which have traditionally been held by women—sales, clerical, and stenographic positions, etc.; (2) a rising wage level and an approaching or anticipated shortage of male labor results in employment of women as men become scarce for jobs requiring dexterity, care, and speed, with a minimum of strength and craftsmanship. Industry in the United States is just entering this phase and it is not yet clear how far it will go in this direction.
The third phase, the one in which Great Britain finds herself today, is that in which women enter jobs in trade, service, transportation, and manufacturing that have customarily been held by men. This influx of women into Industry re

April 29, 1941

★ DEFENSE ★

leases men for heavier, more exacting factory work, or for service in the armed forces. As yet there is no evidence of the approach of this condition in this country. At most, it may be said to be only on the horizon.

Industrial occupations
There is increasing evidence from many parts of the country of the employment of women in industrial occupations, especially in semiskilled machine operations, light assembly work, and simple inspection and packing.
Relaxation of employers’ specifications as to marital status is widely reported, and in some areas special attention is being given to the solution of problems which will arise as a result of employment of married women.

Openings for women
At the request of the Labor Supply and Training Section, a list of occupations in which women may be used has been prepared by the Bureau of Employment Security. This list includes hundreds of occupations in metal working, electrical manufacturing, automobile manufacturing, aircraft construction, and even shipbuilding. All jobs that require great physical strength, or in which working conditions were extremely unpleasant, are excluded. World War experience indicated that women, if given the opportunity, could acquire skills comparable to those of men. However, where these skills could be attained only by long experience which women have had no opportunity to achieve, they have been omitted from the list. Nevertheless, a great variety of occupations are included, such as die maker, etcher, core maker, barrel reamer, buffer, turret-lathe operator, valve grinder, welder, nail-making machine tender, etc.

Demand increases
Actual current demand, as shown by reports and indicated by actual employer orders, represents wider and wider use of women in fields formerly closed to them. As the days pass, women will furnish an increasingly important source of training material. Employers are now thinking in terms of what specific types of training will prepare women for future employment. Up to the present, these experiments have been sporadic. In any community, women may be finding jobs not heretofore open to them, but in no place is there a general trend toward wholesale employment of women in many industries simultaneously. The ultimate possibilities in this direction are still largely unexplored.

Negroes . . .

(Continued from page 5) my staff. Dr. Weaver [has had] wide experience in racial relations, gained through years of service in the Public Works Administration and the United States Housing Authority.

Construction work
At Port Jackson in South Carolina, Fort Meade in Maryland, Fort Robinson in Arkansas, and in scores of other camp constructions, Negro skilled, semiskilled, and unskilled workers were given widespread employment. More than 2,500 Negro carpenters alone were employed on these various sites at wages ranging from $8 to $12 a day, and thousands of brickmasons, plasterers, cement finishers, plumbers, roofers, power saw-operators, and other skilled and semiskilled Negro workers were and are being given employment.
At Fort Jackson, at one point during construction, more than 600 Negro carpenters were on the pay roll at the same time. The hiring of 300 Negro carpenters during the construction of the United States Army Hospital in New Orleans established a record for that craft in that city.
Up in the Ozark Mountains in Missouri—in a community in which not more than 10 Negro families lived, more than 150 Negro carpenters were given employment through the assistance of Dr. Weaver’s office. Similarly, nearly 300 Negro bricklayers were employed on a single Indiana construction job. And tens of thousands of unskilled Negro workers received work throughout the country.
The recent developments in the building construction field have been duplicated, to a lesser degree, in other fields in which Negro workers were already trained. In the iron and steel industry, for instance, there are today indications of a larger absorption of Negro skilled and semiskilled workers. Plants in several Northern areas have recently been seeking to import Negro foundry workers from Southern areas, and employment opportunities are expanding in the latter sections.
In outlining the developments in the above-mentioned industries, I do not wish to give you the impression that the Office of Production Management is interested only in advancing the Negro skilled worker in the fields in which he has already gained employment. It is our position—and I expressed it recently

in a letter to all defense contractors— that every available source of labor capable of producing defense materials must be tapped in the present emergency. And this applies to the important new defense industries as well as to the old established ones.
The Negro in aviation
The problem of equitable employment of Negroes has already been raised in the aviation industry as in all others and we intend to continue the drive there. Three important developments indicate that progress may be expected in that field. Out in California, one aircraft factory, faced with a shortage of workers, is already experimenting with a Negro unit in its plant. In Ohio, an aircraft manufacturer has indicated that he will employ at least 300 Negro workers. And in Missouri, another employer has promised to use a sizeable number of Negro workers in his aircraft plant.
★ ★ ★
Army testing new steel helmet
The War Department revealed April 19 that a new type of steel helmet is being thoroughly tested by the Infantry Board at Fort Benning, Ga. Exhaustive tests indicate it may prove superior to the present basin-shaped type now in use by the Army.
If adopted as standard equipment, the new helmet would serve a dual purpose. In addition to its protective qualities, the lining of the helmet is made of fiber designed for use as a field hat to replace the present field or overseas cap. The helmet linei' weighs less than 1 pound and is suitable for wear anywhere except in extreme northern climates.
Many improvements
The primary purpose of the new helmet is to give greater protection to the sides and back of the head. It is said to be more stable, better balanced, and therefore more comfortable to wear than the present type.
The new helmet weighs about 2^2 pounds or about 3 ounces more than the present type. Also, it is made of tougher steel.
The test helmet has a dome-shaped top and extends down the front to cover the forehead without impairing vision. It also extends down the sides of the head without interfering with the use of the rifle and other weapons, and extends down the back of the head without permitting the back of the neck to push the helmet forward when the wearer assumes a prone position.

★ DEFENSE ★

April 29, 1941

STATE AND LOCAL COOPERATION ...

Organization and duties of defense councils outlined in supplemental memorandum

The wide range of civilian defense activities in which State and local defense councils are already engaged, and suggested lines of development are summarized in a memorandum issued by Frank Bane, Director, Division of State and Local Cooperation, OEM.
Copies of the memorandum, which supplements the basic memorandum, “State and Local Cooperation in National Defense,” issued August 2, 1940, have been sent to the 44 State defense councils for distribution to the 1,000 official local councils. Defense council organization and operation and 8 fields of responsibility of the councils are discussed.
The Division of State and Local Cooperation, it is pointed out, is responsible for outlining defense plans and programs of importance to the States and localities and for guiding defense council work in the development and execution of such plans.

Suggested set-up
A number of councils already have appointed qualified, full-time executive directors. In many cases, there is now need for comparable executives for local defense councils. Each executive director, with necessary assistants, should carry four responsibilities of an auxiliary or “service” nature: (1) Information Service on all defense activities in the State;
(2) Public Relations Service—use of radio, press, speakers, and other channels to keep the public informed;
(3) Development of Organization — assistance to local officials in the organization and development of local and regional defense councils when and where required within the State;
(4) Research and Planning—A representative of the planning board in each State and locality should be designated to assist the executive director of the defense council in research and planning activities.

Council responsibilities
With technical assistance in these four auxiliary or service fields, the executive director will be in a position to expedite and coordinate programs of action for

mulated by committees of the council and also those of local or regional councils.
Outside of the service functions, the council’s tasks are to advise on policy and to assure effective coordination of Federal, State, and local effort for the achievement of defense objectives.
Specific activities of defense councils in eight functional fields include:
1. Agricultural resources and production.—In cooperation with representatives of the Department of Agriculture, the agricultural committees of some defense councils are participating in studies of agricultural conditions and resources, with a view to development of local programs for production of foodstuffs and other agricultural products consistent with requirements for domestic and foreign consumption and the establishment of emergency reserves.
2. Civil protection.—Civil protection is one of the most important responsibilities of State and local defense councils. The War and Navy Departments, the Department of Justice, and other Federal agencies are cooperating in preparing detailed technical information in this field. For successful execution, this program calls for extensive civilian participation and the full cooperation of Federal, State, and local authorities.
The first of a series of bulletins on civil defense, entitled “Suggestions for State and Local Fire Defense,” has been issued. It indicates the first steps that may be taken to assure adequate fire protection.
Other subjects relating to civil defense, to be covered in later bulletins, are: (a) Protective construction; (b) air-raid protection for the individual; (c) medical care and sanitation; (d) air-raid warning system; (e) black-outs; (/) defense against chemical warfare.
Meanwhile, State and local defense councils are developing plans for mobilization of police resources in the States and for the coordination, in the event of emergency, of the police and fire services and other regular or emergency agencies.
3. Health, Welfare, and Related Defense Activities.—Technical direction for work will be received from the Federal Coordinator of Health, Welfare, and Related Defense Activities, who has designated regional directors of the Social

Security Board as regional coordinators of defense activities in these fields. Defense councils can assist in (a) establishment of regional or local health units in defense areas, (b) collection of factual data as to the necessity for additional public water supplies and sewage systems in critical defense areas, (c) organization of adequate entertainment and recreational programs for troops off duty, (d) collection of data and analysis of problems arising from rapid increase in school attendance in defense areas, and (e) cooperation with or establishment of State and local nutrition committees.
4. Housing.—Working with field representatives of the Office of the Defense Housing Coordinator, the housing committees of many defense councils are helping in the formulation and execution of the homes registration program for defense problem areas. These committees are also assisting in the collection of factual data on which to base estimates of housing requirements.
.5. Human resources and skills.—Defense council human resources and skills committees have cooperated in a number of States with the State employment service in arranging for registration of persons for defense jobs. These committees are working with local representatives of the National Committee for the Conservation of Manpower in Defense Industries, who assist industry within their States by plant surveys, by identifying danger spots in factories, and by recommending appropriate corrective action. Several of these committees have been cooperating with established governmental agencies in making plans for defense training of public personnel and of skilled workers in defense industries. It is advisable that they be concerned also with long-range planning and studying methods of absorbing men released from employment on the defense program when the emergency passes.
6. Industrial resources and production.—Committees in this field assist the Defense Contract Service in (a) securing and making available local information with respect to tools and industrial facilities, (b) handling or directing for appropriate attention inquiries concerning the need for subcontracting facilities or the availability of production facilities, (c) rendering general advisory service and referring detailed inquiries concerning governmental financial assistance on defense orders to the district manager

April 29, 1941

* DEFENSE ★

of the Defense Contract Service, (d) servicing district officers of the Defense Contract Service in local areas, and (e) supplying pertinent information regarding prospective plant sites, when and if requested.
7. Price stabilization and consumer protection.—Committees on consumer protection have been active in a number of States and localities. Their activities include strengthening of existing machinery for consumer protection to prevent speculative accumulation, withholding, and hoarding of materials and commodities; checking of food laws; comparing and following up enforcement methods; and publicizing in various ways the national defense program of consumer protection. Technical direction of the activities of such committees is now furnished by the Office of Price Administration and Civilian Supply, established on April 11.
8. Works and facilities.—Committees in this field aid in the determination of need for additional works for water supply, sanitation, power production and transmission, and transportation facilities, the lack of which would impede the defense effort. These committees have been working in some cases with the civil protection committees of State and local defense councils on plans for protection of public works and utilities.

★ ★ ★

Volunteers for air-warning service should apply to local defense councils

State and local defense councils are to assist the Army Air Corps by conducting a Nation-wide registration of civilian volunteer aircraft spotters for observation service, Director Prank Bane has announced. This arrangement has been made by the Division at the request of Lt. Gen. Delos C. Emmons, Commander of the General Headquarters Air Force.
The aircraft warning service is divided into two major fields; first, instrumental observation conducted by military personnel; and, second, the observer corps, for which extensive use of civilian volunteers is contemplated.

Two types of observers
Two types of volunteers are sought by the Air Corps; First, men beyond the draft age or unfit for combat duty to give part-time service as outside observers; and second, fairly young men and women, comparatively free of family

obligations, for inside duty, full time if required.
The volunteer observers will be stationed at appropriate locations, both in and outside cities, and will be trained in observing and reporting movements of aircraft in a given area.
All observers in each area will report to a “filter unit.” This unit will eliminate all nonessential information and will transmit important reports to an “information center.” There the reports will be studied and plotted graphically so that calculations can be made for interception of invading bombers by pursuit aircraft.

May use own autos
Persons registering for outside observation duty will, in most cases, be required to provide their own transportation. In many instances this will involve the use of automobiles or other personally owned vehicles since spotting posts may be in areas not served by public conveyances. Men registering as-outside observers must be trustworthy citizens selected without regard to race, creed, or color.
Men and women registering for inside duty will be employed as chauffeurs, telephone operators, teletype operators, radio operators, scanners, plotters, tellers, clerks, typists, et cetera. All registrants must be dependable citizens and should be willing to enlist in event of war
No uniforms will be provided volunteer aircraft observers at the outset. An arm brassard or other simple means of identification will be used.

Many have volunteered
Many people have already notified the G. H. Q. Air Force Headquarters and the Division of State and Local Cooperation of their eagerness to participate in this work. All such offers are referred to the State defense councils. Further details as to participation of defense councils in the observation service are now being developed by the G. H. Q. Air Force Headquarters and the Division, Mr. Bane said. These arrangements are expected to be transmitted to the defense councils within the next ten days.

Additional civilian defense
In discussing this new registration service, Mr. Bane called attention to some of the strictly civilian or “passive” defense activities already under way by defense councils. A broad use of the term “civilian defense” would include all lines of the defense council organization, he said. Fire defense and emergency police mobilization programs are being per

fected. Bulletins on these subjects have been issued by the Division of State and Local Cooperation.
Other aspects of civilian defense to be covered in future bulletins are: Protective construction; air raid protection for the individual; medical care and sanitation; air raid warning system; blackouts; and defense against chemical warfare.

★ ★ ★

“Combat clothing” issued for armored force

Designed especially for the armored force, “combat clothing,” consisting of helmet, jacket, and trousers similar to the commercial overall, is now being issued in substantial quantities, according to a War Department announcement.
The basic material is khaki cotton cloth, treated to make it water repellant. The garments are lined with regulation olive-drab-melton.
The helmet fits closely over the head with a fastening under the chin and a “curtain” in the rear, partially covering the neck. The jacket is plain-cut, full in the back, patch pockets in the front with knitted wristlets and a knitted band at the neck and waist as protection against wind It is fastened in front by a zipper. The trousers are similar to the commercial overall except the legs are fastened at the bottom with tapes and a zipper closes the “bib.”
The new outfit is designed for comfort and warmth yet allows the soldier freedom of action.

4 4 4

Certificates . . .

(.Continued from page 17)
United States Rubber Co., New York, N. Y.; gas mask tubes, track block equipment for tanks and plant protection; $105,000.
Vanadium Corporation of America, New York, N. Y.; low carbon ferro-chromium alloys; $902,000.
Veeder-Root, Inc., Hartford, Conn.; counting devices and trench mortar fuses; $157,000.
Vickers, Inc. (Waterbury Tool Div.), Waterbury, Conn.; hydraulic pumps, transmissions and controls; $207,000.
Ward Leonard Electric Co., Mt. Vernon, N. Y.; electric pottery products and electric resistors and rheostats; $46,000.
Warren Steam Pump Co., Warren, Mass.; pumping machinery and plant protection; $28,000.
The Welin Davit & Boat Corporation, Perth Amboy, N. J.; davits, winches, lifefloats and lifeboats; $11,000.
Western Maryland Railway Co., Baltimore, Md.; transportation; $330,000.
Western Pipe & Steel Co. of California; San Francisco, Calif.; steel cargo vessels and lighters; $835,000.
The White Motor Co., Cleveland, Ohio; scout cars and personnel carriers; $95,000.
N. A. Woodworth Co., Ferndale, Mich.; airplane engine parts; $37,000.

★ DEFENSE *

April 29, 1941

In past year production rose about 27 percent, wholesale prices only 5 percent, and official cost of living index about 2 percent, Henderson points out

On April 24, Leon Henderson, Administrator, OPACS, made an address over the Mutual Broadcasting System network, excerpts from which follow:
This country, since last June, has produced more goods and services than it, or any other nation, ever did in a like number of months. We produced 11 percent more industrial goods than 1929. After taking out the income and production which were diverted to defense needs, the average person had more food, clothing, and other consumer items than ever before in our history.
But next year this country expects to pay out $20 billion at least for defense— instead of $4 billion, and I believe it may be more than $20 billion.
Will we get the additional $16 billion as we have since last May out of the increased production of our mines, factories, and farms? Or will we reduce our standard of living by $16 billion?
Let me say one thing for certain. If we permit wild uprushing and runaway prices to land us in inflation—then we will be compelled to take all defense effort from our stock piles of income.
A gradual rise in the price level, due to our enormously increased activity, may be inevitable—but it certainly cannot be called inflation. But it will add to the cost of defense. Roughly, every rise of one point in the level of prices now may cost the country half a billion dollars. To put it another way, a $5 rise in the price of steel per ton represents about as much as a 5-percent increase

in the corporate income tax. Try that out on your own income tax.

Sceptics discredited
Many skeptical observers say that inflation is inevitable, unless harsh measures, like Germany employs, are used in this country.
I deny this most emphatically.
In the past year, this country has had the greatest increase it ever knew in production, but wholesale prices went up only five percent while production was rising about 27 percent. The official cost of living index went up about 2 percent.
This restraint was due to a number of reasons. First, we had a surplus of men, money, and machinery. Next, businessmen recognized generally, for the first time, that rising prices interfere with production and may even destroy business. Also, the Government got to work early with its pressures to resist price rises.

Price stability hard to maintain
Now, however, the problem of maintaining price stability is becoming more difficult. Demands for raw materials, supplies, labor, shipping, power, railroad transportation—all will be intensified. And in some cases the materials and facilities available for use by plants manufacturing civilian goods will have to be curtailed sharply. That situation has already developed in aluminum, zinc, machine tools, steel, and some other items.

Basic approach
Our basic approach to this problem of maintaining price stability during a period in which defense needs are drawing more and more heavily on productive capacity of the country, is to increase the supply of goods. When that approach fails because of the time required to construct new plants, to train workmen, or to build ships, then other steps must be taken. At that point we will move in as we have in several cases already and impose mandatory price ceilings.
But let me impress this fact on you most earnestly.
We want to avoid “going to law” to achieve our goal of relatively stable prices. I have enough confidence in the patriotism of American businessmen, of farmers, and of labor to believe they will cooperate in this effort, once they understand clearly what we are trying to do and why it is important to the whole country.
In any price administration effort the important thing to remember is that one man’s price is another man’s cost and that a price rise anywhere along the line leads to cumulative price increases higher up in the production and distribution process.

Action on three fronts
The Government is moving on three fronts to maintain stability in our economic system at a time when serious dislocations are threatened by needs of the armament program—it is controlling prices where necessary, it is expanding supply of goods where possible, and it is curtailing consumer buying power to narrow the gap between demand for goods and the supply of goods which inevitably will develop as the defense program progresses.

OFFICE FOR EMERGENCY MANAGEMENT

Agriculture Division of the Advisory Commission: Chester Davis, Commissioner. ,
Central Administrative Services: Sidney Sherwood, Director.
Commercial and Cultural Relations Between the American Republics : Nelson Rockefeller, Coordinator.
Defense Communications Board: James Lawrence Fly, Chairman.
Defense Housing Division: C. F. Palmer, Coordinator.
Health, Welfare, Nutrition, Recreation, and Related Activities: Paul V. McNutt, Coordinator.

Wayne Coy, Liaison Officer.
Information Division : Robert W. Horton, Director.
National Defense Mediation Board, Clarence Dykstra, Chairman.
National Defense Research Committee: Dr.
Vannevar Bush, Chairman.
Office of Price Administration and Civilian Supply: Leon Henderson, Administrator.
Consumer Division: Harriet Elliott, Director.
State and Local Cooperation: Frank Bane, Director.
Transportation Division of the Advisory Commission: Ralph Budd, ÔOmmissîonèr.

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.

W. S. GOVERNMENT PRINTINS OFFICE: 1941