[Defense : Official Bulletin of the National Defense Advisory Commission. Vol. 2, No. 9]
[From the U.S. Government Publishing Office, www.gpo.gov]




★ OFFICIAL BULLETIN of the NATIONAL DEFENSE ADVISORY COMMISSION Washington, D. C. Issued Weekly


            ★ MAR. 4, 1941 . VOL. 2, NO. S



Authorization for exportation to Great Britain and Northern Ireland of certain articles without the requirement of an individual license
   Under the provisions of Presidential Proclamation 2143, approved July 2, 1940, the Secretary of State is authorized to issue or deny export licenses, covering articles or materials, subject to export control, in accordance with specific directives communicated to him by the Administrator of Export Control.
   In accordance with directives issued by Brig. Gen. Russell L. Maxwell, Administrator of export control, the Department of State, on March 3, notified all Collectors of Customs that general licenses, in accordance with the provisions of Executive Order 8640, have been issued, permitting the expoftation to Great Britain and Northern Ireland of a number of the articles and materials subject to the requirement of a license.
   Collectors of Customs, under these instructions, are authorized to permit any exporter, without the requirement of an individual license, to export to Great Britain and Northern Ireland any of the licensable articles and materials on the following list:
  License No.—*
     GAA2for aluminum.
     GAB 2 for antimony.
     GAC 2 for asbestos.
     GAD 2 for chromium.
     GAE 2 for cotton linters.
     GAF 2 for flax.
     GAH 2 for hides.
     GAJ 2 for manganese.
      GAK 2 for magnesium. GAL 2 for manila fiber. GAO 2 for molybdenum. GAP 2 for optical glass. GAR 2 for quartz crystals. GAU 2 for silk.
     GAW 2 for toluol.
     GAY 2 for vanadium.
     GAZ 2 for wool.
     GBA 2 for ammonia.
     GBB 2. for chlorine.
     GBC 2 for dimethylaniline.
     GBD 2 for diphenylamine.
     GBE 2 for nitric acid.
     GBF 2 for nitrates.
     GBG 2 for nitrocellulose.
        (Continued on page 11)
     296492°—41

Letter from Mr. Knudsen to holders of defense contracts urging recruiting of workers through State employment offices of the United States Employment Service

   The following letter was sent February 27 to all holders of defense contracts:
   Some months ago the National Defense Advisory Commission called the attention of employers having defense contracts to the desirability of recruiting their workers through local State-operated employment offices of the United States Employment Service. Recent developments in the labor market and the increasing emergency growing out of the defense, program now make it more necessary than ever that employers having defense orders utilize the public employment service.
   Some employers have observed the Commission’s recommendations; others, instead of fully utilizing the local labor supply through the medium of their local public employment office, have engaged in labor scouting and Nation-wide advertising, and have needlessly duplicated existing recruitment and placement facilities. These practices result in unnecessary migration of labor, high rates of labor turn-over, disturbances of established labor standards in local areas, and other wasteful and inefficient practices which the Nation cannot afford when every effort must be bent toward full and efficient utilization of all of our resources.
   All employers are urged to use publicemployment offices for the recruitment of workers. No employer should attempt by any methods to recruit labor from outside his local area or engage in any advertising, local or otherwise, without first consulting with the local public employment office as to the necessity of such action and as to the methods to be employed.

   The public employment service consists of a Nation-wide network of 1,500 local offices established for the purpose of assuring full utilization of the local labor supply. The service maintains a Nation-wide clearance system through which needed labor may be obtained after the exhaustion of the local supply. Its representative is available at all times to assist an employer with his particular labor-procurement problems. It cooperates closely with labor organizations whenever employers have agreements or understandings with such organizations.
   The Office of Production Management expects you to make the maximum practicable use of the public employment service, to inform the local office of that service in advance of your labor requirements, and to refrain from engaging in recruitment efforts outside of your locality. May we count on your voluntary cooperation and the observance of these recruitment practices designed to further our national-defense effort.
      Sincerely,
William S. Knudsen.



            INDEX


Page
Appeal to holders of idle machine tools.___________________________ 2
Priorities..-___________________ 3, 4
Purchases__________________________ 5
Production_________________________ g
Housing__________________________   7
State and local cooperation.:___    8
Labor supply report________________ 9
Labor division____________________ 10
Agriculture_____________________12,13
Consumer Division_______________14,15
Transportation____________________ 16

2

★ DEFENSE ★

March 4, 1941 -

DEFENSE

OFFICIAL BULLETIN published weekly by the Division of Information for the Advisory Commission to the Council of National Defense, and printed at the United States Government Printing Office, Washington, D. C. Published with the approval of the Bureau of the Budget (Rule 42, J. C. P.). This issue contains announcements made from February 25 to March 3.

SUBSCRIPTION RATES, BY MAIL
75 cents for 52 issues; 25 cents for 13 issues; single copies 5 cents, payable in advance. Remit money order payable directly to the Superintendent of Documents, Government Printing Office, Washington, D. C.

★

NATIONAL DEFENSE

ADVISORY COMMISSION
Ralph Budd, Transportation Chester Davis, Agriculture.
Harriet Elliott, Consumer Protection.
Leon Henderson, Price Stabilization.
ₑ Sidney Hillman, Labor.
William S. Knudsen, Industrial Production.
Edward R. Stettinius, Industrial Materials.
Frank Bane, State and Local Cooperation. Robert W. Horton, Information.
Stacy May, Research and Statistics.
Paul V. McNutt, Coordinator of Health, Welfare and Related Defense Activities.
William H. McReynolds, Secretary of the Commission.
★  ★ ★
Nelson Rockefeller, Coordinator of Commercial and Cultural Relations Between the American Republics.



            FEBRUARY QUOTA FOR NURSES FILLED


  The War Department announced February 24 that the February quota of 325 nurses needed to staff hospitals at Army training centers at Fort Devens, Mass., Indiantown Gap, Pa., and Camp Forrest, Tenn., has been reached.

Urgent appeal for the immediate sale of idle machine tools to manufacturers working on defense contracts; unprecedented demand in the armament program

  An urgent appeal for the immediate sale of idle machine tools to manufacturers working on defense contracts was issued March 1 by Mason Britton, chief of the machine tool section, Office of Production Management.
  The unprecedented demand for machine tools in the armament program makes it essential that during the critical period ahead every available piece of machinery be placed at the immediate disposal of defense production, Mr. Britton stated.

Large numbers idle
  It is well known, he declared, that there are large numbers of idle machine tools in the factories and shops of the Nation. In other cases, duplicate machines are employed part time where one machine could do the work now being done by-two, and the second one sold for use in important defense work.
  “Owners of such equipment,” Mr. Britton stated, “will perform a patriotic service to the defense program and the entire country if they will offer for immediate sale all machine tools that are not engaged in current production.”

Direct or through dealers
  Such sales can be made either direct to defense contractors or through secondhand machiné tool dealers who are in a position to recondition them and contact manufacturers in need of such equipment.
  In this connection, it is pointed out that since the Price Stabilization Division of the National Defense Advisory Commission has established maximum prices for second-hand machine tools, such equipment can no longer bring exorbitant prices.
  At the same time, with the large demand for machine tools that now exists, reasonable prices can be obtained.

Demand for heavier types
The most urgent demand is for boring mills, planers, radial drills, lathes, and milling machines, especially machine tools of the heavier type. Such equipment is known to be idle or semi-idle in the automotive, railroad, canning, min

ing, textile, paper, printing equipment, and other industries.
  “Despite the remarkable record of the machine tool industry in expanding output of new equipment from a value of $200,000,000 in 1939 to an estimated $750,000,000 in 1941, the need for more machine tools is extremely urgent,” Mr. Britton declared.
  “In view of tt^e necessity of immediately expanding the production of armaments,” he stated, “this appeal is being made to the patriotism of every owner of a single idle machine tool.”

★  ★ ★

Warning from Mr. Henderson that first “ceiling price” for machine tools went into effect March 1
  At the same time, buyers and sellers of second-hand machine" tools were warned by Leon Henderson, Commissioner of the Price Stabilization Division, National Defense Advisory Commission, that the first “ceiling price” established by the Government during the present emergency went into effect March 1.
  This schedule, issued February 17, sets maximum prices at which various classifications of machine tools may be sold.
  “From now on,” Mr. Henderson said, “businessmen will be able to buy these machine tools at reasonable prices whether they buy through dealers or direct.”
  The price limitations apply to both dealers and manufacturers who wish to dispose of surplus machine tools. An owner who tries to dispose of machine tools at a price above the maximum will be in violation of the order whether he sells to a dealer or direct to a user.
  Copies of the price schedule have been sent to more than 550 dealers in secondhand machine tools, and reports are now coming in from these dealers listing their stocks on hand and the prices at which they are being offered.
  Reports on tools sold during March must be submitted to the Division by the dealers on or before April 10.

March 4, 1941

* DEFENSE ★

3

PRIORITIES . . .

Aluminum and machine tools brought under formal priorities; those used in filling British orders given same status; other materials, metals, and commodities now under various types of priorities

   Aluminum producers and machine tool builders on February 24 were put under a mandatory priority status, E. R. Stet-tinius, Jr., Director of Priorities, announced. He said the steps taken, made necessary by the national defense program, represent the first industry-wide, mandatory priority action by the Priorities Division.

British requirements have equal status
   Supplementing this action, the Priorities Division on February 28 issued instructions that orders for aluminum and machine tools to be used directly or indirectly in filling British defense requirements should be given equal standing with orders for the Army and Navy.

Various types of priority action
   A classified list of important raw materials, metals, and other commodities on which priority action has been taken by the Division also was issued. Mr. Stet-tinius pointed out that the imposition of formal priorities is only one of several steps which can be taken, and said that his division, in actual practice, has employed a number of other techniques to meet specific problems. Actions taken so far by the Priorities Division fall into three broad classes:
  I.   Formal priorities.—Cases in which priority ratings have been formally applied by the Division.
  II.   Allocations.—Cases in which the principle has been employed on a broad scale, action being taken in the form of specific allocations, with or without actual issuance of ratings.
   in. Cooperation.—Cases in which the general principle of the system has been applied informally and on a voluntary basis.
   The list given out by Mr. Stettinius follows:

Formal priorities
  1.   Machine tool builders.—Because of the vital necessity for rapid expansion of

the machine-tool-making industry, many machine-tool builders have been given a blanket priority privilege for the acquisition of machinery and other equipment. Manufacturers of gages also were given a blanket rating for the acquisition of equipment. This blanket status expires March 31, 1941, though it can be extended if necessary.
  2.   Machine tools.—The makers of machine tools were requested on January 31 not to fill orders for customers without priority ratings after the end of this month. This action has now been made mandatory. Requests for ratings from a number of schools and other educational institutions engaged in training workers have not been granted, on the ground that the equipment is. more es-sentiaMn defense plants. Efforts are being made to handle this phase of the problem by aiding such institutions to locate and acquire second-hand tools adequate for training purposes.
  3.   Aluminum.—Aluminum producers have been ordered to serve defense needs ahead of civilian needs, except as otherwise directed on specific allocation, based on submission of order books to the Priorities Division once each month, as described below under the heading of Allocations.
  This action was made necessary by adverse changes, such as the indication that large quantities of scrap aluminum were being withheld from the market; the step-up in the British military program which caused a complete shut-off in January of-the 3,000,000 pounds of aluminum ingot per month which we were getting from Canada; the increased demand of aluminum fabricators; the tendency of industrial users to pile up inventories; and the increased demand on aluminum supplies by civilian consumers.
  4.   Foreign orders.—A number of orders placed in this country by foreign govern

ments, largely in the machinery and equipment field, have been granted priority ratings, and certificates have been issued.
' 5. Vital defense plants.—In cases where the quick expansion of plant facilities has been considered vital because these plants were producing defense material, companies have been granted priority certificates for various kinds of equipment needed in their expansion.
   So far, including both foreign orders and domestic contracts, the Priorities Division has issued more than 1,500 priority certificates in addition to the blanket ratings mentioned above. The Army, and Navy Munitions Board, of course, has issued many thousands of ratings for “critical list’’ contracts.

Allocations
  1.   Aluminum. — Certain aluminum forgings and fabricated parts are on the critical list, and therefore subject to automatic rating by the Army and Navy. In addition, aluminum generally has now been subjected to mandatory priority action to make sure that defense needs get first call. Aluminum producers have been ordered to submit all order books once each month, for allocation of available aluminum in the interests of defense, an action which, in the light of the present shortage, will mean some diminution in the supply available for ordinary civilian purposes. Additional action has been initiated to see that all necessary scrap flows promptly to defense channels.
  2.   Magnesium.—This metal, like aluminum an important defense commodity, has been given complete preferential status for defense needs. In mid-Feb-ruary producers were instructed to fill only defense orders for the following 90 days.
  3.   Neoprene.—The Priorities Division has supervised the allocation of this synthetic rubber, highly useful in defense production, to see that it is properly distributed to defense purposes.
  4.   Commercial aircraft.—While it is obvious that the military aircraft program is of paramount importance, it is the policy of the Priorities Division to see that the reasonable needs of the civil aviation industry are met, and to aid the air lines in maintaining their high safety standards and their standards of main


4

★ DEFENSE ★

March 4, 1941

tenance. This whole question is now being considered jointly by representatives of the Priorities Division and representatives of the Army and the Navy.

Cooperation
  1.   Zinc.—The tight situation in the production and the industrial utilization of zinc has led to general but informal action by the Priorities Division. Zinc producers, after conferences with officials of the Priorities Division, have taken effective steps to facilitate the flow of zinc into military brass, and nondefense consumers have been urged to cooperate voluntarily and to effect substitutions and economies. So far, no formal priority action has been taken, though the question is still under consideration.
  2.   Potassium perchlorate.—This chemical enters into both military and civilian channels. It is used for military flares, for public safety flares, and for the production of fireworks. Because of the shutting off of European shipments, there will not be enough to go around to all consumers. The producers have agreed to supply all military needs first, to take care of manufacturers making safety flares, and to make necessary cuts in the quantities flowing to nondefense purposes.
  3.    Structural steel shapes.—Efforts to expedite the flow of structural steel shapes into defense construction were inaugurated when consumers began to experience difficulties in obtaining these necessary construction supplies on short delivery. As a result of a conference between representatives of the Priorities Division and the steel companies, producers have undertaken to fill defense orders as promptly as possible.
  4.    Stainless steel.—This product, into which nickel enters as an important part, is widely used for both defense and civilian purposes. Slow deliveries have developed, and the Priorities Division is taking preliminary steps to try to ease this situation. No formal priority action has been taken. The leading producers of stainless and other nickel steels, at the request of the Priorities Division, have agreed to give first call to defense needs and to give technical advice to their clients which may help to reduce the amount of nickel required under present specifications.
  Other metals, probably due for some degree of priority action, but not yet formally acted upon, are nickel itself and tungsten.
  The list given out by Mr. Stettinius does not cover “automatic” assignment of

preference ratings by the Army and Navy Munitions Board and officers and inspectors of these two services. The latter, for administrative efficiency, are authorized to grant certain “automatic” preference ratings for items on the “critical list.”
  This list, jointly maintained by the armed services and the Priorities Division, sets forth specifically those items on which such “automatic” ratings may be granted. The list is chiefly made up of completed military items and does not include raw materials and many other commodities ordinarily used in civilian channels.
  All other priority questions are administered directly by the Priorities Division of the Office of Production Management, in which the President has reposed his statutory authority for the priorities system.

Priorities action flexible
  Mr. Stettinius said that the list given out February 24 represents merely the present approach being followed in the specific cases mentioned. The action in any case can be quickly modified, relaxed or strengthened, and it is apparent that a number of changes may have to be made.
  In addition to the steps mentioned, various other approaches are being used in some cases and considered for Others, such as blanket low ratings to put appropriate defense activities bodily ahead of conflicting civilian activities, Mr. Stettinius said. These may come more into use, if and when this seems wise. The priorities system is not a rigid one, he pointed out, and can be adapted to meet situations as they present themselves, and the approach can and will be changed as the problems change.
  “It is very important,” said Mr. Stettinius, “that the system should work efficiently to implement the acquisition of material by the armed forces, always keeping in mind the continuing needs of the regular civilian economy. We can adopt any technique which seems to meet these tests. We are trying to make the treatment fit the situation and not trying to fit the situation to a preconceived treatment.”
  Mr. Stettinius added that, while every priority action taken is almost certain to cause difficulty for someone, at least temporarily, all efforts are being made, with the aid of labor advisers and other consultants, to avoid unnecessarily throwing men out of work or injuring established industrial activities.

Investigation of the difficult situation in tungsten by the minerals and metals group; tool steel manufacturers urged to give consideration to the use of substitutes
  An investigation of the difficult situation in tungsten, an injportant defense metal because of its broad uses in the manufacture of high-speed cutting tools and military products, has been inaugurated by the minerals and metals group of the priorities Division, Office of Production Management.
  E. R. Stettinius, Jr., Director of Priorities, announced that the problems involving tungsten supplies were discussed at a meeting in New York attended by representatives of the tool steel industry and by Dr. Samuel S. Stratton, general assistant director of the minerals and metals group, and by Walter Tower, producers’ representative on the steel priorities committee.
Substitutes
  The tool steel manufacturers were urged to give every consideration to use of substitutes for tungsten wherever possible and to suggest the desirability of such substitutes to their customers.
  This would include the use of mplybde-num tool steels or other alloy combinations which have been proved to be acceptable substitutes in many processes.
  Emphasis was given to the necessity for filling defense orders for tungsten tool steel ahead of nondefense requirements. The producers agreed to make every effort to do so. A close check is to be kept on the tungsten situation, however, so that additional steps can be taken when and if necessary.
Strategic metal
  Tungsten is listed as a “strategic metal”—that is, one which is not produced in sufficient quantities in this country to serve all defense purposes. Large supplies have come in the past from China, recently over the Burma Road, but these shipments are now somewhat uncertain and any developments which cut them off entirely would present serious problems.
  In addition to its uses in the manufacture of cutting tools, tungsten is used in the production of small armor-piercing projectiles and armor plate. It is also used in the manufacture of valves for internal combustion engines, for electriclight filaments, and for a number of other civilian purposes.

March 4, 1941

★ DEFENSE ★

5

PURCHASES ...

Compilation of defense contracts cleared and awarded, February 20 through February 26

   Defense contracts totaling $54,887,403 were awarded by the Army and Navy and cleared by the Division of Purchases, Office of Production Management, during the period February 20 to February 26, inclusive.
   This compares with $143,028,815 for the previous week, and $33,491,192 for the period ended February 12. Contracts amounting to $500,000 or mor^ are cleared by the Division of Purchases of the Office of Production Management.
   Cleared contracts awarded by the War Department during the latest period totaled $30,644,001, and by the Navy Department, $24,243,402.

EQUIPMENT AND SUPPLIES

Navy

   The International Nickel Co., Inc., New York, N. Y., nickel, copper alloy, $1,473,090.10.
   Edward G. Budd Mfg. Co., Philadelphia, Pa., pipes, smoke and upstakes, lower and upper, $567,862.
   Breeze Corporation, Inc., Newark, N. J., starters, aircraft, $540,260;

CONSTRUCTION

   J. F. Fitzgerald Construction Co., Boston, Mass., construction of pier at Navy Yard, estimated cost, $725,000.
   Two contractors: F. H. McGraw & Co., Hartford, Conn., and Purdy and Henderson Co., Inc., New York, N. Y., construction of aviation facilities at Naval Air Station, Bermuda, estimated cost, $9,150,000.
   Chambersburg Engineering Co., Chambersburg, Pa., expansion of ship-building facilities, $661,000.
   Worthington Pump and Machinery Corporation, Harrison, N. J., expansion of shipbuilding facilities, $600,000.
   Lake Washington Shipyards, Houghton, Wash., expansion of shipbuilding facilities, $700,000.
   American Tool Works Co., Cincinnati, Ohio, expansion of shipbuilding facilities, $740,571.71.
   Monarch Machine Tool Co., Sidney, Ohio, expansion of shipbuilding facilities, $500,000.
   Birdsboro Steel Foundry Machine Co., Birdsboro, Pa., expansion of shipbuilding facilities, $600,000.
   Camden Forge Co.,•'Camden, N. J., expansion of shipbuilding facilities, $3,125,619 (original contract far $2,873,695 previously announced, supplemental, $251,924).
   George A. Fuller Co. & Associates, dredging, bulkhead, tender pier, temporary facilities, etc., at Naval Air Station, Argentia, Newfoundland, $4,860,000.


CONSTRUCTION

War

  American Brass Company, Waterbury, Conn., construction of plant, machinery and equipment at Kenosha, Wis., for the manufacture of ammunition brass and ammunition cups, $4,750,000.
  Bridgeport Brass Co., Bridgeport, Conn., construction of plant, machinery and equipment at or near Indianapolis, Ind., for manufacture of cartridge cases, $11,500,000.
  Brecon Loading Company, Wilmington, Del., management services, training personnel, and operation of an artillery ammunition bag-loading plant, $14ₜ394,001.
  The following contracts were announced on February 15 by the Office of Production Management, but not Included in a previous compilation:

CONSTRUCTION

War

  Three contractors: Peter Kiewit Sons Co., Omaha, Nebr.; George W. Condon Co., Omaha, Nebr.; and Woods Bros. Construction Co., Lincoln, Nebr., for construction of completely integrated aircraft manufacturing and assembly plant and air field at Fort Crook, Omaha, $8,078,000.
  Four contractors: William A. Smith Construction Co., Inc., Houston, Tex.; Sharp and Fellows Contracting Co., Los Angeles, Calif.; Armstrong & Armstrong, Roswell, N. Mex.; and L. R. Allison Co., Albuquerque, N. Mex., for construction of an ordnance depot at Fort Wingate, N. Mex., $8,378,000.
  Two contractors: Dunn Construction Co., Inc., Birmingham, Ala.; John S. Hodgson & Co., Montgomery, Ala., for construction of an ordnance depot at Anniston, Ala., $8,491,592.
  Broderick & Gordon, Denver, Colo., for construction of a small-arms ammunition plant at Denver, Colo., to be operated by Remington Arms Co., Inc., $13,206,390.

SHIP CONSTRUCTION

  Federal Shipbuilding and Drydock Co., Kearny, N. J., construction of C-2 type, steam-propelled cargo ships, $19,355,000.

           ★  ★ ★

        New food consultant for

        Division of Purchases

  Appointment of Gerrit Vander Kooning, of Grand Rapids, Mich., as consultant on food' procurement and distribution problems was announced February 24 by Donald M. Nelson, Director of the Division of Purchases.


        Lumber manufacturers will cooperate in building stock pile

  An important step to stabilize lumber prices at a fair level through acquisition by the Army of an extensive lumber stock pile was announced March 1 by Donald M. Nelson, director, Division of Purchases, Office of Production Management.
  His announcement followed meetings of southern and west coast lumber manufacturers with the Construction Division of the Quartermaster Corps. The plan is endorsed by the Division of Purshases and the Price Stabilization Division of the National Defense Advisory Commission, whose representatives attended the meetings.
Manufacturers cooperate
  The stock pile will be built up with the cooperation of lumber manufacturers, who have agreed to make and carry the necessary stock until the Army calls for it. Prices were established by competitive bidding, and the lumber will be. invoiced and paid for at the time of shipment.
  The Army will continue to buy lumber in the usual way for current needs, both under the existing construction program and under any new ones which may be started. The stock pile will be drawn on whenever there are unexpected demands for immediate deliveries; thus the Army will not have to come into the market suddenly with large rush orders, and will not have to face a possible shortage.
           ★  ★ ★

        Appointment of Douglas C. MacKeachie as Deputy Director of the Division of Purchases

  Appointment of Douglas C. MacKeachie as deputy director of the Division of Purchases was announced February 24 by Donald M. Nelson, Director of the Division.
  Mr. MacKeachie, who has been serving ' as assistant director and chief of the subsistence section of the Division, has been advising the Quartermaster General’s Office on the procurement of foodstuffs, and has been devising plans for the greatly expanded buying program which the increase in Army strength makes necessary. Before coming to the
  He succeeds Deputy Director Albert J. Browning, who is returning to his position as president of United Wall Paper Factories of Chicago.

6

★ DEFENSE ★

March 4, 1941





                PRODUCTION...





Announcement of the appointment of seven district coordinators of the Defense Contract Service

  Appointment of seven district coordinators of the Defense Contract Service was announced February 28, by Robert L. Mehornay, Director of the Service.
  These are the first appointments of field personnel under the recently organized unit of the Division of Production, Office of Production Management.
  The facilities of the Federal Reserve System, including part of its personnel, who have been serving as field agents for the Office of Small Business Activities, will continue to be utilized in expanding the field offices of the Defense Contract Service which, has taken over the functions of the Office of Small Business Activities.

Staffs planned
  The coordinators will have adequate staffs, consisting of district managers and technical, engineering, and financial' experts, who will provide decentralized assistance to prime and subcontractors and potential contractors.
  In announcing these appointments Mr. Mehornay said:
  “The Defense Contract Service will provide every defense contractor and potential contractor with a source of information and assistance reasonably close to his own plant.
  “It is our hope that this service will greatly stimulate the subcontracting of defense orders, thus contributing to our expressed aim of utilizing every available manufacturing facility, spreading the defense load geographically, and minimizing housing ,and other social problems * that would arise from excessive centralization of defense work.
  “Naturally, the field offices of the Defense Contract Service will work in close cooperation with Regular Army and Navy field representatives and local offices of other branches of the defense program.”
  Appointments announced are—
  Frank H. Neely, chairman of the board of directors of the Federal Reserve Bank, Atlanta, Ga.; and executive vice president and secretary of Rich’s Department Store, Atlanta.

Mr. Neely will be coordinator for the Atlanta area.
  Raymond C. Force, chairman of the board of directors of the Federal Reserve Bank, San Francisco, Calif.; and chairman of the executive committee of the Caterpillar Tractor Co., San Leandro, Calif. Mr. Force will be coordinator for the San Francisco area.
  Albert M. Creighton, chairman of the industrial advisory committee of the Federal Reserve Bank, Boston, Mass.; and director of the Boston Woven Hose & Rubber Co., Boston. Mr. Creighton will be coordinator for the Boston area.
  George C. Brainard, chairman of the board of directors of the Federal Reserve Bank, Cleveland, Ohio; and president of the General Fireproofing Co., Youngstown, Ohio. Mr. Brainard will be coordinator for the Cleveland area.
  R. B. Shepard, deputy chairman of the Federal Reserve Bank, of Minneapolis, Minn.; and president of Finch, Van Slyck, & McConville, St. Paul, Minn. Mr. Shepard will be coordinator for the Minneapolis area.
  Clarence W. Avery, director of the Detroit branch of the Federal Reserve Bank of Chicago; and president and chairman of the Board of the Murray Corporation of America, Detroit, Mich. Mr. Avery will be coordinator for the Detroit area.
  Thomas S. Gates, president of the University of Pennsylvania. Dr. Gates will be coordinator for the Philadelphia area.

★  ★ ★

Nickel held by industrial consumers will be surveyed
  A comprehensive survey of the amount of nickel held by industrial consumers is being undertaken by the Bureau of Mines at the request of the Office of Production Management, W. A. Harriman, Chief of the Materials Branch, Office of Production Management, announced February 25.
  This survey is being made as a result of frequent reports that a tight situation exists in the supply of nickel. Informal investigations have led to the belief that some consumers are seeking to acquire unnecessarily large inventories.

Nickel consumption
  Mr. Harriman pointed out that approximately 85, percent of all nickel produced in the world is obtained from Canada, and previous estimates have

indicated that sufficient supplies would be available for all defense and civilian requirements. Nickel consumption during the last quarter of 1940 averaged 14,000,000 pounds per month but imports for the year were at the rate of 10,000,000 pounds per month. At the present time imports are at the rate of 14,500,000 pounds per month.
  It is expected that the survey now being instituted will provide a statistical basis for whatever action may be deemed appropriate.


★  ★ ★

*

Estimate that steel production facilities will be adequate for the fiscal year beginning July 1; investigation of the price of producing copper
  President Roosevelt last week made public estimates by the Office of Production Management showing that steel production facilities for the fiscal year beginning July 1 will be adequate to meet all demands of civilian and defense con-sumefs in this country and of embattled democracies abroad.
  Steel production capacity, estimated at an annual rate of 87,500,000 tons on January 1, precludes any necessity at present of imposing a priority system on the industry, the President said.
  The United States Tariff Commission, acting on request of the NDAC Price Stabilization Division, ordered an investigation into the cost of producing copper.
  Loan Administrator Jones announced the Metals Reserve Corporation has bought an additional 35,500 tons of copper ore from South America, 85 percent of which will come from Chile, to bring the total of copper commitments to 235,000 tons.
  Mr. Jones announced also the Corporation has contracted with the Manganese Cooperative Producers Association Co., of Helena, Ark., to provide the Government with 100,000 tons of grade A manganese during the next 3 years.

March 4, 1941

★ DEFENSE ★

7





                HOUSING...





Announcement of allocations for defense housing approved by the President

 C. F.’Palmer, Defense Housing Coordinator, has made public the following allocations for defense housing, approved by the President:

                    February 26,1941. The President,
     The White House.
  Mr. President: Pursuant to Executive Order No. 8632, dated January 11, 1941, and the “Regulations Governing Defense Housing Coordination,” dated the same day, there is submitted herewith a Locality Program Report for each of the places listed below, which outlines the housing situation in its relation to the national defense program. These Locality Program Reports which I recommend for your approval have been developed in cooperation with departments and agencies concerned, and include such of their recommendations as are deemed feasible. To the extent indicated in these reports, an acute shortage of defense housing exists, which requires action under Public 781, Seventy-sixth Congress (sec. A), Public 781, Seventysixth Congress and Public 849, Seventysixth Congress (sec. B), or solely under public 849, Seventy-sixth Congress (sec. C).


SECTION A

                    Approximate number of family   
                           dwelling units          
       Place         Present     Previ-   Herewith
                     program     ously     recom- 
                       for       recom-    mended 
                     defense     mended    under  
                     housing      for      Public 
                    (including  Federal   No. 781 
                     7 needs      con-            
                     already   struction          
                      being                       
                       met)                       
Key West, Fla^.....        120         60       20

The Locality Program Report for Key West anticipates that the remainder of the need not programmed for Federal


construction will be met through privately financed construction.


SECTION B

                       Approximate number of falnily    
                               dwelling units           
                       Present                Herewith 
                         program     Previ-    recom-  
                           for       ously     mended  
        Place            defense     recom-     under  
                         housing     mended    Public  
                       (including     for      No. 781 
                          needs     Federal      and   
                         already      con-     public  
                          being    struction   No. 849 
                          met)                         
Riverside, Calif______                                 
San Francisco, Calif-                                  
San Miguel, Calif.                                     
   (including Paso     275                    125      
Robles, Calif.)_____            75                   75
Jacksonville, Fla.___          150                  150
Valparaiso, Fla______        1,044                   30
Charlestown, Ind.      100                150       100
  (including Louis-    500                664       100
ville, Ky.)_________   255                400       255
Alexandria, La______   150             »2,300       150
Leesville, La..______  139                          139
Shreveport, La._____   250                    250      
Waynesville, Mo.       250                    150      
(including Rolla,      485                           35
Mo.)______________     * 3,362                512      
Great Bend, N. Y...                                    
Harrisburg, Pa______                                   
Island Oahu, T. H_.                                    
11,400 units for single men also programmed and pre-    
viously approved for Federal construction.              

  The Locality Program Report for Jacksonville, Fla., anticipates that the remainder of the need not programmed for Federal construction will be met through privately financed construction.

section o

                     Approximate number of family   
                            dwelling units          
       Place          Present                      
                      program     Previ-           
                        for       ously    Herewith
                      defense     recom-    recom- 
                      housing     mended    mended 
                     (including    for      under  
                       needs     Federal    Public 
                      already      con-    No. 849 
                       being    struction          
                        met)                       
Alameda, Calif______                               
Miami, Fla__________                               
Muskegon,'Mich____   1,200                 200     
Wilmington, N. C.    600                   200     
(including Holly     850               600 300     
Ridge, N. C.)_____   400               200 375     
Sidney, N. Y........ 250            *2,300 200     
Harrisburg, Pa______ 485               300 450     
Island Oahu, T. H..  *3,362                550     
Radford, Va. (in-    450                   150     
cluding Pulaski,                                   
Va.)_______________                                

¹1,400 units for single men also programmed and previously approved for Federal construction.

  Where the total programs for the above localities exceed the total of Federal construction recommended, the Locality Program Report for that place anticipates that the remainder of the need will be met through privately financed construction, or modernization of existing vacant units. With respect to those portions of each program for which action under Public, No. 849, Seventy-sixth Congress, is indicated, it is respectfully recommended that you find an acute shortage of housing to exist within the meaning of that act.
  The reasons upon which the recommended Government housing programs are based vary to some extent in each case. They are stated in detail in each Locality Program Report and can generally 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 activities. 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.
  In addition, the following programs requiring none of the above mentioned actions are submitted for your approval: Fort Ord, Calif., Tampa, Fla., Joliet, Ill., Fayetteville, N. C., and Orange, Tex.
  Upon your approval of the programs recommended in these Locality Program Reports, and your approval of the enclosed allocation request, and upon your findings as above recommended, each Federal agency will be advised of its part in each proposed program
  Respectfully,
                     C. F. Palmer, Coordinator.

★ ★ ★


            INDUSTRIAL ACTIVITY


  The Board of Governors of the Federal Reserve System reports that industrial production in January was 139 percent of the 1935-39 average because of increased activity in industries making aircraft, machinery, ships, and other defense products.

8

★ DEFENSE ★

March 4, 1941





                STATE AND LOCAL COOPERATION ...





Provision by two legislatures for State defense agencies— Nebraska Advisory Committee, and New York’s State and local defense councils
  By action of the Legislatures of Nebraska and New York, legal provision has been made for State defense bodies to cooperate with defense agencies of the Federal and other State Governments and to coordinate State and local defense activities. . In Iowa, similar legislation was signed by Gov. George A. Wilson on February 8 (House bill No. 192; see Defense, February 25).
  The measure permitting creation of the Nebraska advisory defense committee was approved by Gov. Dwight Griswold on February 15 (bill No. 232, 1941 regular session). On February 19, Gov. Herbert H. Lehman of New York signed the bill that sets up the State council of defense and authorizes city and county defense councils (ch. 22, Laws of 1941). Both State acts became effective immediately.
Broad fields of operation
  Although the Nebraska and the New York defense agencies differ in a number of respects, both have authority to supervise surveys of matters relating to defense including, but not limited to industrial materials and facilities; production and manufacturing facilities; transportation facilities; agriculture, food supply and land use; labor supply and training, labor relations and human resources, professions, trades and skills; housing; consumers and consumer protection; hospitals, health and sanitation facilities; educational facilities; recreational areas and facilities; welfare; and finance.
  In addition, the New York council is specifically charged with similar activities with respect to mobilization and coordination of the police and firefighting forces of the State for protection of the people against fire, flood, famine, violence, riot, insurrection, disaster, sabotage, and subversive activities; protection of civil liberties, and maintenance of law and order.
  The New York defense council also has specific power to analyze State laws in

Conference of mayors pledges support of national defense effort; urges great national system of waterways • and connected roads

  Resolutions relating to national defense and friendly cooperation between cities of the United States and Canada were adopted by the regional meeting of the United States Conference of Mayors in St. Louis on February 21. This action was taken by some 400 municipal officials, of whom approximately 225 were mayors of cities in the area between the Alle-ghanies and the Rocky Mountains.
  The regional conference was welcomed by Mayor B. F. Dickman of St. Louis. President of the United States Conference of Mayors is Mayor F. H. LaGuardia of New York.
  Former Mayor Daniel W. Hoan of Milwaukee, representing the Division of State and Local Cooperation of the National Defense Commission, spoke on cities and the defense program.

Pledge of cooperation
  Pointing out that the “full power and might of the Nation cannot be attained without the prompt, stanch, unhesitat-

ing, unreserved, and unlimited support of the cities,” the èonference unanimously pledged “the loyal allegiance and devoted cooperation of the citizens of all our communities to the Government of the United States in the great undertaking of preparation for national defense.”
  The conference offered the services of its organization to promote defense production through the policy of farming out of subcontracts by prime contractors. This procedure, it was stated, will not only increase output but will also improve the morale of the country’s small business and labor forces by facilitating their participation in the national defense program. The conference also emphasized its interest in a program of civil defense for cities.

Waterways transportation system urged
  A great national system of waterways and connected roads “sufficient to meet any reasonable demand either from a, military or civil crisis,” was urged to supplement rail transportation.

the light of its plans and program and recommend such legislation as may be necessary to carry them out. Nebraska’s advisory committee may recommend legislation in its reports to the Governor.
  Both the Nebraska committee and the New York council are authorized to obtain the cooperation and assistance of State and local governmental agencies. Both must utilize insofar as possible the services and facilities of existing public agencies, although each is authorized to employ staff assistance.

Difference in status
  Major differences between the Nebraska and New York acts relate to organization and status of the State defense agencies. Nebraska’s advisory defense committee is to be appointed' by proclamation of the Governor in time of emergency or public need to serve at the Governor’s pleasure. In a similar manner, the Governor may dissolve or suspend the committee and

reestablish it thereafter. The Governor is chairman of the committee and is required to designate one of the members as vice-chairman. Appointments are to be made without regard to political affiliation, but with reference to special knowledge of subjects in the fields of committee work.
  In New York, the defense council as established by law consists of the Governor (chairman), Lieutenant Governor, temporary president of the senate, speaker of the assembly, minority leader of each house, and such other members as the Governor may appoint by and with the advice and consent of the senate. Gubernatorial appointees hold office during the pleasure of the Governor. The Governor has power to designate a council member to serve as vice chairman.
  In both States, the members serve without compensation, although they may be reimbursed for traveling and other necessary expenses.

March 4, 1941

* DEFENSE ★

9

Additional thousands of workers hired; lack of space, equipment, raw materials, and skilled workers delays employment expansion in many cases; vocational and in-service training increases—according to Social Security Board summary for February

  As a result of the defense program, large-scale employment increases have been maintained and additional thousands of workers have been hired in most States, even though the actual rate of increase in employment in manufacturing industries may have slackened somewhat, the bureau of employment security, Social Security Board, has reported.
  Construction employment has been maintained at a high rate in most areas despite adverse weather, and has been little marked by the usual seasonal declines. Lack of materials and skilled building craftsmen, however, has slowed down some projects already under construction, and has retarded initiation of others.

Employment increases retarded in many plants
  Hiring in many manufacturing establishments has been deferred because of lack of space and equipment for more workers, despite maximum utilization of facilities through overtime and extra shifts. Shortages of key skilled workers have prevented employment increases in many plants, and in others expansion of production and pay rolls has been delayed by scarcities of raw materials.

Construction jobs plentiful
  On completion of large construction jobs now under way—factories, Army camps, housing projects, supply bases, dams, etc.—thousands of construction workers will be laid off; but a large volume of additional construction is already scheduled for some months to come, so that many workers released from completed jobs may find work with little difficulty.
  Although local stringencies in a few skilled crafts have delayed some projects, the supply of construction workers still


appears to be adequate. Effective use of clearance machinery by public employment offices has been of considerable help in transferring construction workers to localities where local shortages have developed.

Labor shortage in manufacturing industries
  In manufacturing industries, on the other hand, shortages have become more pronounced, particularly in aircraft and shipbuilding. Stringencies of skilled metal tradesmen are also common. Limited supplies of semiskilled workers are reported in a few localities, small reserves in others. In practically no area have unskilled workers been hard to obtain, although low wages and poor working standards have resulted in a withdrawal of workers in some areas.

Heavy labor demand expected
  The trend toward stringency appears likely to be aggravated during the next 3 months, when a heavy demand for workers in the defense industries is in prospect. A large proportion will have to be skilled or semiskilled. The relatively small number of lay-offs expected to occur will make available only a negligible supply of skilled workers; most of those needed will have to be obtained from some other source.

Training courses improved
  Employment offices report steady increases in the number of private and public vocational training courses being offered, and in the number of persons enrolled. More and more employers have instituted in-service training and are assisting in the training of young persons even before they are employed by the respective companies. Earlier criticisms of the training programs have resulted in better selection of courses,


based on analysis of employers’ needs as indicated by Employment Service findings; but training is still hampered by lack of facilities, instructors, and, in some cases, even trainees. It is clear from the latest reports of the State employment offices that the present rate of turn-over in training courses is far less than enough to fill current needs for skilled labor. Even in the case of semiskilled workers, there is a possibility that stringencies will become serious in the near future unless the output of training courses is stepped up considerably.

Employment requirements lowered
  In some of the occupations in which employers have indicated that shortages exist, there are reported to be good workers available who, because of either race or nationality, are not being hired. Employers have dropped age limits, lowered physical requirements, accepted workers of lower skill and less experience, employed women in jobs hitherto held only by men, but they are almost consistently turning down qualified noncitizen skilled workers, even in industries where citizenship is unessential.
  Competition for workers has resulted in numerous wage increases, especially in low-wage industries.

★ ★ ★

Army purchases of certain foods will be centralized at New York, Chicago, and San Francisco
  By centralizing the purchase of certain canned and nonperishable foods for use by the rapidly expanding Army, a considerable saving will be effected, and much confusion avoided, the War Department announced February 22.
  Under the new plan, all purchases of the specified products will be centralized at one of the three Quartermaster depots at New York, Chicago, or San Francisco. The purchasing will be done as follows:.
  New York—all tea, coffee, sugar, extracts, spices, jams, pickles, syrups, baking powder, and certain other items.
  Chicago—all canned vegetables, red sour cherries, flour and flour products, rice, beans, dried peas, canned meats, evaporated and dried milk, and a number of other items.
  San Francisco—all canned fruit (except those mentioned above), dried fruits, and canned fish.

10

★ DEFENSE ★

March 4, 1941

LABOR DIVISION ...

Release of the new pamphlet entitled “Labor Speeds Defense”, setting forth the progress of the Labor Division

  The Labor Division of the National Defense Advisory Commission has just released a new pamphlet entitled Labor Speeds Defense, setting forth the Division’s progress in designing and putting into effect its various programs since the beginning of the defense effort.
  Among the first responsibilities that faced Sidney Hillman, Defense Commissioner in charge of the Labor Division, when he took office last June was that of insuring an adequate supply of labor for defense industries, and to avoid work stoppages insofar as possible.

Labor Policy Committee
  In this latter respect, the support of organized labor was immediately enlisted with the appointment of a Labor Policy Advisory Committee composed of 16 representatives from the AFL, the CIO, and the Railroad Brotherhoods. In a statement pledging labor’s full support to the national defense program, this committee declared in part:
  “Labor recognizes fully that if the democratic way of life is to be preserved, and enlarged, our country must prepare itself for total defense—morally and materially.”
  This statement has been translated into action.
  For instance, in industries making the engines and machine tools so vital to our national security, strikes in 1940 were responsible for only 1 day of idleness for every 6 years of work.
  The pamphlet contains two tables of strike statistics prepared by the Bureau of Labor Statistics. One shows the trend of strikes from 1914 through 1940. The other compares the number of man-days worked with the number of man-days idle due to strikes in 1940 for 11 industries vital to national defense. The average strike loss in these industries was one-quarter of 1 percent of the total time worked.

Employing the unemployed
  One of the first and biggest problems confronting the Labor Division was so do all in its power to employ the Unemployed. *

   After the registration by the United States Employment Service and organized labor of some 5,000,000 men and women throughout the Nation, industry absorbed over 2,000,000 in 6 months, a monthly average of 337,000.
   Awake to the possibility of a shortage of skilled labor as a result of this step-up in employment, the Labor Division helped to foster vocational guidance courses in the Nation’s schools to refresh the skills of persons who long since had been forced to follow-other lines of endeavor. This was done in cooperation with existing governmental agencies such as the Works Progress Administration, the United States Office of Education, and others.
   This service has proved invaluable to defense industries which are constantly drawing on these schools for labor that has received rudimentary instruction in shop practice.
   Another program instituted by the Labor Division to assure an adequate supply of skilled labor was that of Training within Industry—a system of training employed workers on the job to make the fullest use of their highest skill.

Training at Allison
In many instances this has simplified the problems facing defense industries in hiring a tremendous additional force. For example, the Allison Division of General Motors, flooded with orders for its liquid-cooled motors, used this type of upgrading plan for training new workers. Within a comparatively short time, the company was able to enlarge its working force from 1,200 to 7,500 without serious difficulty, despite the fact that nearly one-third of the new employees were completely green. Officials of the company declare that some of those who had handled nothing more complicated than a wheelbarrow before going to work at the plant, have been moved up, rung by rung on the ladder of skills until they are now performing highly technical operations on the final assembly line.
   To quicken defense production, to bring economic aid to the “ghost towns” of America, and to ease the difficulties of

readjustment when the emergency is over, the Labor Division has also sponsored a system of “farming out” defense orders among the thousands of smaller shops throughout the Nation. Quick reconnaissance surveys uncovered the fact that a high percentage of the Nation’s productive capacity was lying dormant in smaller cities and towns throughout the country. They also showed that declining industries and technological improvements had reduced to idleness not only tools and machines, but also a vast reservoir of skilled hands ready and willing to use them.
  “Test checks” by trained engineers on the staff of the Labor Division resulted, to cite a single instance, in the mailing out of a list of partly idle plants in 15 cities in the Ohio River region to 500 firms holding Government contracts. In all cases skilled workers were available.

Local stimulation
  A program of stimulating local communities to assess their idle resources in men and machines was also launched. Community groups of this character are urged to organize, and are advised to “pool” their facilities and to solicit orders—as subcontractors—from the large firms having defense awards. Already several such pools are in operation. Each pool, functioning on a nonprofit basis, acts as sole agent for the community’s equipment and manpower, dividing up the work among the various local units in accord with their respective ability to produce.
  To facilitate the most efficient production of ships for our Navy, Commissioner Hillman appointed the Shipbuilding Stabilization Committee, composed of representatives of organized labor, shipbuilding employees, the Navy, and the Maritime Commission.

        ★ ★ ★

        60-mile-long caravan to move the Forty-fifth Division

  The War Department used a caravan of Army trucks 60 miles long to transport the major part of the Forty-fifth Division from Fort Sill, Okla., to their new station at Camp Berkeley, near Abilene, Tex., February 28, 1941. The 223-mile move to the new camp was made in 1 day, by the more than 10,500 men in the first major move. More than 1,400 vehicles of all sizes were employed.

March 4, 1941

★ DEFENSE ★

11

Settlement of the strike at the Lackawanna, N. Y., plant of the Bethlehem Steel Co.
  At 8:30 p. m. February 27, less than 24 hours after a strike had been called at the Lackawanna, N. Y„ plant of the Bethlehem Steel Co., William S. Knudsen, Director General, and Sidney Hillman, Associate Director General, of the Office of Production Management, announced at a special night press conference that they had submitted a proposal to representatives of both the union and management for settlement of the controversy.
  Both sides accepted the proposal, and, at 3 p. m. the following day the strike, which had been called by the Steel Workers Organizing Committee, CIO was ended and the first of the plant’s 14,000 workers filed back through the factory gates.

Participants
  The proposal submitted by Mr. Hillman and Mr. Knudsen followed a day of conferences with representatives of the union and the company. Participating in these conferences, in addition to the two OPM officials, and Company and union spokesmen, were Cyrus Ching, industrial and public relations director of the United States Rubber Co., and E. D. Bransome, president of the Vanadium Corporation of America, both of whom are industrial advisers on Mr. Hillman’s staff; John Owens and Thomas Burns, CIO labor relations consultants, also of his staff. Mr. Ching and Mr. Burns had returned that morning from a 24-hour on-the-spot survey of the controversy.

Text of telegram
  The proposal was sent by telegram to Philip Murray, president of the CIO and chairman of the Steel Workers Organizing Committee, Van A. Bittner, regional director of SWOC, and to the Bethlehem Co. Following is the text of the telegram:
OFFICE OF PRODUCTION MANAGEMENT, IN THE INTEREST OF THE NATIONAL DEFENSE PROGRAM, IS PROPOSING THAT ALL EMPLOYEES OF THE LACKAWANNA PLANT OF THE BETHLEHEM STEEL CO. BE FULLY REINSTATED AS SOON AS RESUMPTION OF OPERATIONS WILL PERMIT [STOP]. ALSO THAT A CONFERENCE WILL BE IMMEDIATELY HELD BETWEEN THE LACKAWANNA PLANT MANAGEMENT AND OFFI


CIALS OF THE SWOC WITH A VIEW TO ADJUSTMENT OF MISUNDERSTANDINGS AND GRIEVANCES THERE [STOP]. THE OPM WILL EXPLORE WITH THE NATIONAL LABOR RELATIONS BOARD tHE POSSIBILITY OF HOLDING AN ELECTION TO DETERMINE THE BARGAINING AGENCY AT THE LACKAWANNA PLANT [STOP].


★ ★ ★


Export Control

(.Continued from page 1)

  License No.—
      GBH 2 for soda lime.
      GBI 2 for sodium acetate.
      GBJ 2 for strontium.
      GBK 2 for sulphuric acid.
      GBL 2 for bromine.
      GBM 2 for ethylene.
      GBN 2 for ethylene dibromide.
      GBO 2 for methylamine.
      GBQ 2 for beryllium.
      GBR 2 for graphite electrodes.
      GBW 2 for copper and products.
      GBY 2 for nickel and products.
      GBT 2 for cobalt.
      GCA 2 for aircraft parts.
      GCB 2 for armor plate.
      GCC 2 for shatter-proof glass.
      GCD 2 for plastics, optically clear.
      GCF 2 for fire-control instruments.
      GEA 2 for petroleum—crude oil.
      GEB 2 for gasoline. •
      GEC 2 for tetraethyl lead.
      GED 2 for lubricating oil.
      GEE 2 for naphtha.
      GFA 2 for iron and steel scrap.
      GGA 2 for iron ore.
      GGB 2 for pig iron.
       GCC 2 for ferromanganese, spiegeleisen, ferrosilicon, ferrochrome, ferrocolumbium, ferrocarbon-tltanium, ferrotitanium, ferrophosphorus, ferromolybdenum, ferrotungsten, ferrovanadium.
      GHA 2 for ingots.
      GHB 2 for billets.
      GHC 2 for blooms.
      GHD 2 fpr slabs.
      GHE 2 for sheet bars.
      GHM 2 for wire rods.
      GHP 2 for drums and containers.
      GHT 2 for tanks.
      GMA 2 for structural shapes.
      GMB 2 for steel piling.
      GMC 2 for plates.
      GMD 2 for skelps.
      GME 2 for rails.
      GMF 2 for splice bars and tie plates.
      GMG 2 for bars.
      GMH 2 for hoops and baling bands.
      GMJ 2 for pipe and tubes.
      GMK 2 for drawn wire.
      GML 2 for nails and staples.
      GMM 2 for barbed wire.
      GMN 2 for woven wire fence.
      GMO 2 for bale ties.
      GMP 2 for fence posts.
      GMR 2 for black plate.
      GMS 2 for tine plate.
       GMT 2 for iron and steel sheets (including stainless steel sheets).
      GMU 2 for strip.
      GMV 2 for wheels.
      GMW 2 for axles.
      GMX 2 for track spikes.
      GMY 2 for castings.
      GMZ 2 for forgings.
  (Licenses Nos. GHA 2 to GMZ 2 relate exclusively to iron and steel products.)

   License No. GDG 2 for the export of the following specifically enumerated machine tools and allied products:
    Pipe threading machines.
    Metal cutting band saws.
    Power driven hack saws.
    Keyseating machines.
    Disc grinding machines.
    Car wheel and locomotive wheel presses. Burring machines—gear.
    Chamfering machines—gear.
    Burnishing machines—gear.
    Planers—crank.
    Bench power presses.
    Saw sharpening machines.
    Filing machines.
    Pipe bending machines.
    Thread chaser grinders.
    Burnishing machines.
    Riveting machines.
    Grinding machines—portable with flexible shaft.
    Centering machines.
    Arbor presses (hand, air, and hydraulic).
    Nibbling machines.
    Grinders—lathe tool.
    Gear lapping machines.
    Gear shaving machines.
    Polishing machines.
    Heat treating furnaces.
    Foundry machines.
    Cold saws up to a capacity of 10-inch round stock.
    Twist and other drills.
    Reamers.
    Milling cutters.
    Hobs.
    Taps.
    Dies.
    Die heads.
    Shear knives.
    Abrasives and abrasive products containing emery, corundum, or garnet, as well as abrasive paper and cloth.
    Plastic moulding machines and presses. Measuring machines.
    Gauges.
    Testing machines.
    Balancing machines.
    Hydraulic pumps.
    Tools incorporating industrial diamonds.

★   ★ ★

New company enters field to produce aluminum at Bonneville and Grand Coulee dams
   Bonneville and Grand Coulee dams will step up production of aluminum by delivery of Columbia River power to a new plant to be constructed by the Reynolds Metals Co. in the Pacific Northwest, Secretary of the Interior Harold L. Ickes announced February 25.
   A 20-year contract to supply 40,000 kilowatts of hydroelectric power has been signed by R. S. Reynolds, president of the company, and Bonneville PiJwer Administrator Paul J. Raver, Secretary Ickes said.
   The Reynolds Metals Co., which is entering a field long dominated by the Aluminum Co. of America, will begins construction of the aluminum plant immediately. The plant will have an initial capacity of 40,000,000 pounds of aluminum a year. Signing of the contract raises the amount of aluminum produced by Bonneville and Grand Coulee to 190,-000,000 pounds a year.

12

★ DEFENSE ★

March 4, 1941

AGRICULTURE...

Industry urged to produce to capacity— peacetime pursuits will absorb expanded defense production facilities; increase in farm production may be necessary, Dr. Galbraith tells National Farm Institute

  Warning that the easy part of the national defense program is drawing to a close, Dr. J. K. Galbraith, economic adviser to Commissioner Davis, February 21, called on the Nation to get spiritually prepared for the sacrifices this national effort will require. He spoke before the National Farm Institute at Des Moines, Iowa.
  “National defense is either a deadly serious business or one that we can afford to forget,” Dr. Galbraith said. “Either the United States is in danger or it is secure. If we are in danger— and it is the judgment of the people that we are—then it is possible that one day in the future we may look back on these discussions of the effect of defense on the welfare and fortunes of various groups with a great deal of regret. Perhaps we may feel as the British doubtless feel now about their war preparation during the Chamberlain period—a period when their most modern steel mill was partly closed down because it endangered the steel market.
  “If we are actually threatened one day we will not be happy over discussions we may have had about plants and factories that we did not build because we were not sure that we would need them, and could not be sure what would happen to them afterward. If some supplies run short or are unobtainable, we may begiji to wonder if the margin of safety was calculated with the worst in mind.”
  With the exception of the men who leave jobs to go into the Army, and the cotton, wheat, and tobacco growers and others who have lost their export markets, few real sacrifices haye been made, Dr. Galbraith pointed out.

Defense implements can be turned to peaceful pursuits
Urging that the industries of the country produce to full capacity, Dr. Gal

braith said: “There is no good reason why we must worry about these new mills and factories falling idle some day in the future. If we know how to use them to produce the implements of war, we can learn how to keep them going in the production of the good things of peace. If the common man Can buy beef and pork chops because he has a defense job, surely he can be given a job which will enable him to keep on buying when the world again becomes secure.”
  Dr. Galbraith asked industry to sacrifice some of its desire for security against future competition and overproduction, in order to fill the needs of the years immediately ahead. He urged trade-unions to face the possibility of an excessive number of skilled workers sometime in the future, a condition which may result from present expansion.

Must watch food stocks
  Dr. Galbraith said that farmers in some areas may need to increase the production of meats, dairy products, and other commodities. With passage of the lend-lease bill promising to remove the dollar barrier to the purchase of farm commodities, the time has come when our food stocks must be watched with care, he warned.
  Up to the present time, the agricultural program has been a rather un-dramatic part of the defense effort, Dr. Galbraith said. However, during World War I there was an expansive food administration which urged farmers to produce more and consumers to consume less, he pointed out. In Germany and England the subject of food supplies constitutes almost as important a part of the news as do military subjects.
Dealing with the paradox of want amid plenty, Dr. Galbraith said that a child who must go without breakfast is having


a bad education in patriotism no matter what he learns in school. He reminded the farmers that it is good business to bring together the surpluses on one hand and hungry people on the other, and charged them with continuing responsibility in this direction during this period of expanding employment and business activity.

Utilize rural labor reserve of South and West
   Advocating enlargement of the training program in rural areas and the bringing of industry to areas where there is a surplus of rural labor, Dr. Galbraith said:
   “Through the South some hundreds of thousands of farm people are now either unemployed, partially unemployed, or they are producing cotton and tobacco for an export market which has been suspended. A similar situation holds in many areas to the west of the Mississippi. Many of us have hoped that we would have a substantial number of the new defense industries established in those areas. It is something that has been very close to the heart of Commissioner Davis. There have been difficulties and some very serious ones, in carrying out this program. But some progress has been made. As labor shortages appear in the industrial areas more and more attention will be given to the rural labor reserve of the South and West.”


★ ★ ★


        Army strength will pass the million mark during March

  Secretary of War Stimson has announced that between 130,000 and 150,-000 selectees will be called for service during March, putting the Army’s strength beyond the million-man mark. Mr. Stimson estimated the Army’s present strength at 951,000 officers and men, a peacetime record.
  Approximately 105,000 of the selectees called during March will be assigned to replacement centers. All but one of the 21 new centers are expected to be ready to train selectees by April 1, Mr. Stimson said. The balance of the men will go directly into existing Army and National Guard units.


March 4, 1941

* DEFENSE *

13

Advisory staff for study of agricultural-chemical requirements of defense program

  Commissioner Chester C. Davis of the Agricultural Division has made arrangements with Secretary of Agriculture Claude R. Wickard, whereby an advisory staff has been made available to Mr. P. H. Groggins, chief of the Agricultural Chemicals. Section.
  Among the important objectives of this section is the study of chemical requirements of the defense program insofar as they relate to (1) chemicals used in agriculture, such as chemical nitrogen, phosphates, potash and insecticides, and fungicides; (2) chemical and technological uses of products derived from agriculture, such as oils and fats, cellulose, insecticides, manufactured dairy products, plastics, etc.
  These studies will be compiled into various reports.
  Personnel of the advisory staff for agriculture include the following men, all of whom are members of the. staff of

the Bureau of Plant Industry under Dr. E. C. Auchter:
   Dr. R. O. E. Davis, adviser on chemical nitrogen problems. Dr. Davis is acting chief, division of fertilizer research, and in charge of nitrogen investigations.
   Dr. William H. Ross, adviser on mixed fertilizers. Dr. Ross is in charge of mixed fertilizer investigations, division of fertilizer research.
   Mr. Kenneth D. Jacob, adviser on phosphate problems. Mr. Jacob is in charge of phosphate investigations, division of fertilizer research.
   Dr. Kehneth G. Clark, adviser on potash problems. Dr. Clark is in charge of potash investigations, division of fertilizer research.
   Mr. Amon L. Mehring, who is temporarily attached to the staff of the Agricultural Chemicals Section, is responsible for the collection, tabulation, and interpretation of statistics with respect to chemicals needed both for fertilizers and munitions.

Appointments to legal staff, Office of Production Management
   John Lord O’Brian, general counsel, Office of Production Management, on March 3 announced the following appointments and designations to the legal staff of the Office of Production Management:
   Milton Katz, assistant general counsel, to act as adviser for Donald M. Nelson and his associates in the Purchasing Division. Mr. Katz has been professor of law, Harvard Law School. He will have as his assistants Alexander B. Hawes and Fairfax Leary, Jr.
   Geoffrey S. Smith, assistant general counsel, to act as adviser for E. R. Stettinius, Jr;, and his associates in the Priorities Division. Mr. Smith has been with the firm of Dochert, Smith & Clark, Philadelphia, Pa. He will have as his assistants E. Riggs McConnell and Bernard D. Meltzer.
   Frederick M. Eaton, assistant general counsel, to act as adviser for John D. Biggers and his associates in the Production Division. Mr. Eaton has been with the firm of Wright, Gordon, Zachry & Farlin, New York City. He will have as his assistants Thomas J. Lynch, Wm. Jay Hoff, and Samuel E. Neel.
   Herbert S. Marks, assistant general counsel, with special assignment to legal research and matters of legislation. Mr. Marks has been attorney for trustees, Associated Gas & Electric Corporation, New York City.
   In announcing the appointments to his staff Mr. O’Brian pointed out that all members of the existing legal staff have been retained.

Public lands serving defense purposes in areas from Alaska to Florida, Secretary Ickes says
   More than 8,100,000 acres of public domain land, scattered from Alaska to Florida, have been withdrawn for emergency military and naval purposes, Secretary of the Interior Harold L. Ickes announced February 27.
   These lands, totaling a half-million acres more than the combined areas of Massachusetts, Delaware, Rhode Island and the District of Columbia, are being used for rifle ranges, small-arms target ranges, and combat training areas for national guardsmen and regulars, tank combat training areas, antiaircraft firing ranges, aerial bombing ranges, and artillery practice grounds.
   Pointing out that the task of turning these lands over to the Army and Navy has been a continuing one for more than 2 years, Secretary Ickes said: “The fact that we had this land in such shape that we could put it to this use is another proof of the advantages of an established conservation policy.”

Plans to make available the Bureau of Agricultural Chemistry and Engineering in a consultative capacity
   Plans have been completed under which the entire scientific and technological personnel of the Bureau of Agricultural Chemistry and Engineering of the United States Department of Agriculture will be available to the Agricultural Division of the National Defense Commission in a consultative capacity to deal with the chemical and technological uses of farm products in the defense program, it was announced following a recent conference between Commissioner Chester C. Davis and Dr. Henry G. Knight, Chief of the Bureau of Agricultural Chemistry and Engineering.
   Under direction of Dr. Knight, several hundred outstanding scientists, both in Washington and the four regional research laboratories, will be utilized to aid Commissioner Davis in meeting the scientific and technological problems in the field of food packaging, food dehydration, food deterioration in storage, plastics, cellulose chemistry, cotton uses, and other agricultural defense problems.
Equipped to serve
   The Bureau of Agricultural Chemistry and Engineering is uniquely equipped to render this service. Men in charge of the research divisions recently have been recruited from industry, the universities, and other governmental agencies representing a broad background of experience. In Washington, the Bureau carries out investigations on proteins, carbohydrates, foods, leather, and tanning materials.
   At the four regional research laboratories located near Philadelphia, Pa.; at New Orleans, La.; Peoria, Ill.; and at Albany, near San Francisco, Calif.; work is carried out on the use and chemical conversion of important argricul-tural crops.
No dislocation
   Among advantages of this arrangement are that it creates no dislocation in existing research centers with resultant stoppage of work and depletion of organization. This procedure of integrating defense activities should result in a maximum of efficiency and constructive action while avoiding delays in organization and the question of priorities.
   The program is already under way with the Bureau working on a number of defense problems.

14

★ DEFENSE ★

March 4, 1941

CONSUMER DIVISION ...
Warning that investigation should precede consumer action against price rises, and that action should not be hysterical nor

based on mere rumor
  Consumers should investigate price rises attributed to the defense program to determine whether the increases are warranted, Ben Lewis, chief economist of the Consumer Division of the National Defense Advisory Commission, told a meeting of the Voteless District of Columbia League of Women Voters.
  He warned that consumer action in such situations must not be hysterical nor based on rumor if sound results were to emerge.
  “To achieve any measure of success in the aim we have set of protecting civilian welfare, we feel that cooperation of consumers is very important. This involves two propositions,” Mr. Lewis said. “First, that consumers be fully aware of the situation and its implications; second, that consumer action in the market place be both intelligent and calm.
  “We are making an effort to facilitate consumer awareness by releases to newspapers and by a bulletin service issued directly to those interested.”
Produce more goods
  “So far the effect of the defense program on price has been small, as measured by a cost-of-living index. We do have gradually increasing demand as unemployed people receive employment. This forms one side of the picture.”
  “The supply side is more complicated. The range of possibility of shortages varies from that for certain metals such as aluminum, where priorities have now been imposed with a consequent limitation of supply to consumers, to that prevailing in the food market, where supplies generally are very adequate.”

Production and supply
  “The basic problems today are production and supply. The solution lies with the spirit and energy and intelligence of the people of the country.

Prices will go up if supply does not match demand for goods, but we have a tremendous capacity for more goods if we are willing to produce or secure them.
  “If we do not meet this challenge, it is upon consumers that the burden will fall. Consumers must insist on the elimination of all barriers to the fullest and best utilization of every ounce of resources and energy on which we can lay our hands.”

★ ★ ★

Egg prices continuing seasonal decline; “best buy” compared to other protein products
  Egg prices are continuing their seasonal decline which generally occurs between November and the beginning of April, the Consumer Division reports.
  Although retail egg prices so far are averaging higher this year than last, they are still a “best buy” compared to other protein foods.
  Department of Agriculture estimates reveal that total egg production in January 1941 set an all-time record for that month; commercial cold storage holdings of eggs on February 1, were, however, 10 percent lower than a year ago.
  Eggs are on the Federal surplus commodity list and may be bought by families on relief with the free blue stamps through ordinary commercial channels, under the food stamp plan. During December, families receiving or eligible to receive public assistance secured with blue stamps 3,000,000 dozen eggs.
  A booklet of suggestions on ways of preparing eggs has been prepared by the Bureau of Home Economics of the Department of Agriculture. It Is Leaflet No. 39, “Eggs at Any Meal,” and may be obtained from the Superintendent of Documents, Washington, D. C., for 5 cents. ’

Plentiful household substitutes for aluminum — enamelware, glass, cast iron, and earthen-
ware
   Substitutes for aluminum household products are plentiful and consumers should direct their buying to such substitutes until aluminum production becomes adequate for both military and civilian needs. Miss Harriet Elliott, Consumer Commissioner of the National Defense Advisory Commission, said this week.
   Miss Elliott’s advice to consumers followed the action of the Office of Production Management in invoking priorities in the aluminum industry.
“Intelligent action”
   “The imposition of priorities on aluminum is a measure to facilitate defense production. Consumers can help conserve the Nation’s existing supply of aluminum through the use of other readily available materials and thus avoid harmful price increases in existing stocks of household aluminum goods,” Miss Elliott declared.
   “Calm and intelligent consumer action at this time will benefit both the defense program and take care of civilian needs.”
Satisfactory substitutes
   The Consumer Division and the Bureau of Home Economics of the Department of Agriculture report that there are highly satisfactory cooking utensils made out of materials not affected by the defense program.
   Such substitutes include enamelware, flame-proof and heat-proof glass, cast iron, and earthenware. Since aluminum ware is most desirable for cooking directly over heat, consumers having a supply of such utensils are urged to refrain from buying more than their essential needs. By this cooperation, other consumers would not be deprived of a necessary minimum supply, Miss Elliott said.
   Miss Elliott pointed out that manufacturers can help meet essential consumer needs of aluminum by restricting its use in unimportant items such as ornamental products.

March 4, 1941

★ DEFENSE ★

15

Labeling projects conducted to assist consumer buying; promote informative grade labeling for canned goods
   Labeling projects currently being conducted by the National Consumer-Retailer Council will materially assist consumer buying, according to the Consumer Division.
   The Council, which consists of consumer and retailer organizations, has authorized a project to promote informative grade labels for canned goods. The plan is being sponsored by consumer organizations on the Council and by the National Association of Food Chains, also a member of the Council.
Canned foods
   The project provides that the participating chain food companies use labels approved by the National Consumer-Retailer Council on their own brands of canned corn, tomatoes, peas, and peaches of “A” and “B” grades, for a 1-year test period.
   The consumer organizations have agreed to inform their local'units of the project and provide plans for consumer study of informative labeling and for cooperation with local retailers in promoting the use of the labels in retail stores. They will also try to determine whether these recommended labels enable customers to buy more intelligently, give them more protection in buying, and are preferred by them.
Blankets
   The Council has recently approved labels to be used on Chatham blankets, currently being introduced in spring showings. The labels will bear the legend: “This is the type of information recommended by the National Consumer-Retailer Council, Inc.”
   Each label carries information regarding the fiber content of the blanket, size, total weight, weight per square yard, durability, warmth, color fastness, shrinkage, and instructions for proper care.
   Information of this type, the Council points out, enables the consumer to compare blankets of different quality and different price and to “select the one best suited to her pocketbook and the specific use she wants to make of the blanket.”

Air tour of American Republics will be undertaken by InterAmerican Escadrille
   A group of private citizens interested in the development of aviation in the Western Hemisphere will leave Washington March 5 for a 3 months’ air tour of all the American Republics, Nelson A. Rockefeller, Coordinator of Commercial and Cultural Relations between the American Republics, announced March 1.
   The air tour will be undertaken by the Inter-American Escadrille, a private nonprofit organization. The Coordinator’s office has cooperated with the Escadrille in arrangements for the flight.

Survey of aviation development
   The group will contact leaders of civil aviation in each of the American Republics to obtain their views concerning the future development of aviation in their respective nations. As a background for this survey, the Coordinator’s office, in cooperation with other interested agencies of the Government, has studied most of the available data on the development and present status of civil aviation in this hemisphere.

Flight members
   The flight will be led by Maj. Gen. Frank R. McCoy, United States Army, retired, president of the Foreign Policy Association and director of the Council on Foreign Relations. General McCoy has had long experience in inter-Amer-ican relations and served as chief of several conciliatory missions concerned with hemisphere politicaland economic affairs.
   Walter Bruce Howe, who has also represented the United States on seyeral missions to the other American Republics, will’ accompany General McCoy as personal assistant and counsel.
   AlfrUo de los Rios, well-known flier and Chilean-born newspaperman, will serve as copilot and will present the program and aims of the Inter-American Escadrille.
   J. M. Farris, on leave of absence from Eastern Airlines through the courtesy of Capt. E. V. Rickenbacker, will serve as chief pilot, and Luis O. Medina, a native of Bogota, Columbia, will serve as mechanic.

Itinerary
   The mission will cover approximately 28,000 miles on the tour, going first to Cuba and thereafter, in the following or

der, to Haiti, the Dominican Republic, Venezuela, Brazil, Paraguay, Uruguay, Argentina, Chile, Bolivia, Peru, Ecuador, Colombia, Panama, Costa Rica, Nicaragua, Honduras, El Salvador, Guatemala, and Mexico.
  The mission will fly in a Grumman twin-engined amphibian.
Escadrille directors
  The Inter-American Escadrille, founded in 1935 by Mr. de los Rios, has among its directors Dr. James Rowland Angell, president emeritus of Yale University; Dr. Carlos Davila, Chilean diplomat, statesman, and newspaper publisher; Allen W. Dulles, prominent international lawyer, and James P. Warburg, economist and former Treasury official.
“Wings” for the Americas
  The Inter-American Escadrille proposes to facilitate such cooperation through the establishment of chapters or “Wings” in each of the American Republics. A detailed plan of organization has been prepared This will be presented to the Civil Aviation leaders in each country as a guide for such action as they may care to take. Each “Wing” will be com-■ pletely self-governing and merely affiliated with the international organization, the headquarters of which will be determined each year at a convention of representatives of the national Wings.
★  ★ ★
Tennis, golf, and deep-sea fishing among features to be provided in recreation areas for Army
   Sites have been selected and work will start immediately" on seven recreation areas in the Gulf coast region, which will be available for soldiers on leave from nearby camps, the War Department announced February 27.
   Facilities will be available initially for 500 men in each camp, but they probably will be enlarged later to accommodate from 2,500 to 7,500 men. Bathing beaches were regarded as essential in the selection of each area, while other recreational facilities such as golf courses, tennis courts, dancing facilities, open-air movies, and deep-sea fishing will be provided in most cases.
   Schedules of religious services for all denominations will be provided in each area.
   CCC companies will do the landscaping and other routine work in connection with establishment of the camps.

16

* DEFENSE ★

March 4, 1941





                TRANSPORTATION ...





Railroad purchases of cars and locomotives increasing; freight carloadings at present show signs of more than seasonal gains over last year; plans for additional grain storage facilities

   The railroads had on order as of February 1, 1941, a total of 41,600 new freight cars. This is the largest number of new cars on order for any corresponding date since 1926, and indicates the activity of the railroads in building up their plant to take care of defense traffic demands, Ralph Budd, Transportation Commissioner, has reported.
   During 1940, the railroads placed in service 65,545 new freight cars, 126 new steam locomotives, and 293 Diesel and electric locomotives. In addition to the new cars on order as of February 1, 1941, there were 120 steam locomotives and 118 electric and Diesel locomotives.
   A substantial increase in the number of serviceable cars available for handling of the country’s traffic is resulting from the program of the railroads, which involves purchase of new equipment and, in addition, repair of cars and locomotives which have been held in bad order In recent years because they were not needed to handle existing traffic. The number of cars awaiting repairs as of February 1 was 107,596, or 6.7 per cent, this figure being redûced from 224,603 cars on September 1, 1939.
   Up to February 1, there had been a net increase of 109,375 in the number of serviceable freight cars in the country since September 1, 1939. On the basis of normal turn-around of freight equipment, these cars are capable of handling in excess of 55,000 carloads per week.

Upward trend in freight carloadings
Freight carloadings at present show signs of more than seasonal gains over last year. The loadings in January were 7.1 per cent over 1940. Last year traffic in February, March, and April was below the level of January. This ÿear the pattern seems more likely to follow the spring loading of 1937, which was con

sistently upward. For the first two weeks of February, the increase over 1940 was 8.6 and 13.2 per cent, respectively.
  Heavier demands at present are for transportation of iron and steel products, lumber and forest products, and new automobiles and trucks, the latter of which are handled in freight cars equipped with auto loading devices.
  Despite this higher level of loadings, substantial freight car surpluses continue to be reported. As of February 1, the average daily freight car surplus reported by the railroads was 109,507, of which 42,549 were box cars and 42,014 were open-top cars.

Railroads responding to heavy automobile movements
  The present automobile and truck traffic, which is moving in the largest volume in several years, has made a heavy demand on the specially equipped cars provided for such traffic, particularly the longer (50 ft.) automobile cars equipped with loading devices, of which the supply is limited, and which are being used for heavy shipments of Government trucks. All railroads are following the matter actively in the interest of providing the most prompt and efficient handling of these cars, both in theloaded movement and the empty returnto automobile-producing centers.

Plans for grain and iron ore movement
Major commodity movements which are currently receiving consideration by the Transportation Division are the grain movement and the lake and rail iron ore movement. Present indications are that a heavy production of both winter and spring wheat will be experienced this year. The present winter wheat crop forecast for 1941 indicates the largest crop in recent years, and with an abnormal carry-over because of the loss of ex

port movement, there is a problem of storage. Until that problem is solved, transportation requirements are difficult to anticipate.
  Because of the bumper crop and the large carry-over from earlier crops, plans are now under way, in cooperation with interested agencies in the Department of Agriculture and the Agricultural Division of the Defense Commission, for a com--plete survey and for action which will provide additional grain storage facilities where needed.
  The heavy ore movement which it is desired to handle on the Great Lakes during the 1941 navigation season will be greatly helped if early navigation in these waters is possible.
  Arrangements are being made for an extra ice breaker to operate at the Soo Canal, and all indications as to mildness of temperature lead to the hope that it may be possible to start lake navigation April 15 or earlier.
  Study of the 58-year period dating from 1883 shows that the average opening date of lake navigation has been April 21, ranging from the earliest date of April 6,1902, to the latest date, May 14, 1885.

★  ★ ★

        Creation by the United States Maritime Commission of a Division of Emergency Shipping

  The United States Maritime Commission announced February 28 creation of a Division of Emergency Shipping.
  This Division will handle all emergency transportation problems, will maintain liaison with the Navy Department, War Department, Reconstruction Finance Corporation, Office of Production Management, State Department, and all other Government departments and agencies with respect to ocean transportation, and will have supervision over sales, charters, transfers, reallocations, reassignments, and requisitions of all vessel tonnage in connection with emergency transportation.
  The primary duty of the new Division ■of Emergency Shipping will be to make the most efficient possible use of available American flag tonnage.

U. S. GOVERNMENT PRINTING OFFICE: 1941