/

) DEFENSE cOFFICIAL WEEKLY BULLETIN OF THE OFFICE FOR EMERGENCY MANAGEMENT

OFFICE OF PRODUCTION MANAGEMENT, NATIONAL DEFENSE ADVISORY COMMISSION, DEFENSE HOUSING COORDINATOR, DEFENSE COMMUNICATIONSBOARD, COORDINATOR OF HEALTH AND WELFARE, SCIENTIFIC RESEARCH AND DEVELOPMENT, NATIONAL DEFENSE MEDIATION BOARD,

DEFENSE AID REPORTS, COORDINATOR OF COMMERCIAL AND CULTURAL RELATIONS BETWEEN THE AMERICAN REPUBLICS.

PRICE ADMINISTRATION AND CIVILIAN SUPPLY, CIVILIAN DEFENSE

WASHINGTON, D. C. JULY 29, 1941 VOLU ME 2, NU MBER 30

In this issueReview of the week in defense 2

Raw silk stocks frozen as shortage threatens 2

OPM unit to deal with all defense power problems 3

PRODUCTIONBig bomber program is behind schedule 4

LABORBuilding trades stabilization pact approved 6

MEDIATION BOARDOne dispute settled, recommendations in five 7

PRIORITIESBlanket preferences applied to locomotive building 8

AGRICULTUREMilk demand stimulates making of casein substitute 9

PRICES AND CIVILIAN SUPPLIES21 rent committees formed as costs rise 12

PURCHASESWeek's War Department contracts: $421,020,037 16

HOUSINGPresident extends aid to new vital areas 20

TRANSPORTATIONLake ore movement piles stocks higher . . 21

CIVILIAN DEFENSEInterpret policies to people, President tells committee 24

403220°—41

.. C CIIPCBINTFMnFNT OF L;

• DEFENSE • July 29, 1941

Review of the Week in Defense

Two OEM agencies moved promptly

last week to meet a threatened shortage

in silk, due to unsettled conditions in the

Par East.

Acting after President Roosevelt had

frozen all Japanese credits in the United

States, OPM Priorities Director E. R.

Stettinius, Jr., issued an order freezing

all stocks of raw silk and OPACS Ad-

ministrator Leon Henderson asked the

Commodity Exchange to suspend trad-

ing in silk futures and announced

OPACS will impose a price ceiling on

raw silk.

Plan to speed deliveries

Stettinius disclosed a plan for expe-

diting deliveries of defense materials to

important projects, another for facili-

tating production of civil aircraft for

Civilian Pilot Training Schools and

Home Guard units, and took steps to

encourage the building and repair of

locomotives, now seriously short of de-

fense needs.

OPACS revealed that fair rent com-mittees had been organized in 21 mu-nicipalities as part of a campaign to

stabilize rents in defense areas.

Farm machines get high rating

Manufacturers of farm machinery andequipment were given the "highest

civilian preference rating" by OPACS to

insure an adequate supply of materials

during August, September, and October.

Bakers were warned by Administrator

Henderson against any price increases

in excess of one cent a loaf.

Ceiling prices were imposed on brass

mill scrap, and makers of scientific ap-

paratus, such as optical, precision, test-

ing, and control instruments, and devices

to aid hearing were given civilian pref-

erence in allocation of supplies.

New high for expenditures

A new high for authorized national de-

fense expenditures of $50,785,000,000 wastabulated by the OPM Bureau of Research

and Statistics. U. S. appropriations,

contract authorizations, and RFC defense

loans totaled $47,116,000,000 and British

orders added $3,669,000,000.

Cash disbursements from this fund

reached $994,200,000 for June, an in-

crease of 9.2 percent over May.

OPM power unit created

A special power unit, headed by J. A.

Krug, on leave from TVA, was estab-

lished by OPM to handle all defense

power problems and assure power for

projected aluminum plants. A programof expansion and "power pools" wasworked out in conjunction with the Fed-eral Power Commission and representa-

tives of public and private power systems.

Director General William S. Knudsenat a press conference said that plans for

a gradual reduction of automobile pro-

duction, in lieu of an abrupt curtailment

of 50 percent, were being discussed with

the OPM industry advisory committee.

The auto makers, he said, will be given

increased defense orders where possible

to utilize men and machines released bythe reduction.

OPM recommended an increase of

6,508,950 tons in pig iron capacity as anessential step in increasing the output of

steel for defense.

The Material Coordinating Committee

of U. S. and Canada made arrange-

ments for expansion of Canadian nickel

by 20 percent. Nickel is used as an alloy

in steel to give it toughness and strength.

OPM Associate Director General Sid-

ney Hillman announced OPM approval

of a new stabilization agreement affect-

ing 800,000 AFL building trades workers

on defense projects. It covers War,Navy, and FWA construction.

A conference was held in Chicago byEli Oliver, chief labor adviser of the

OPM Labor Division, with railroad man-agement and labor to consider how400,000 maintenance workers might aid

defense.

Official insignia for 15 types of volun-

teer workers were adopted at the first

meeting of the Volunteer Participation

Committee of the Office of Civilian

Defense.

As reports were being tabulated on the

Nation's collection of aluminum scrap,

OCD estimated that more than 1,000,000

persons took part in the drive.

President Roosevelt approved 21 newlocalities in which building of defense

homes for workers earning from $1,800

to $3,000 will be encouraged by 90 per-

cent mortgage insurance.

Raw silk stocks frozen to meet shortage

threatened by Far Eastern conditions

Acting to meet a threatened shortage

caused by unsettled conditions in the Far

East, Priorities Director Stettinius July

26 issued an order freezing all stocks

of raw silk and limiting the processing

of thrown silk to levels set during the

week ending July 26.

Issued after conferences between rep-

resentatives of OPM and OPACS, the

order forbids either the delivery or the

acceptance of raw silk except by authori-

zation of the Director of Priorities. It

applies equally to warehouses and to

mills; it does not, however, prevent

deliveries from ship to importers.

Mills are forbidden to knit, weave or

otherwise process thrown silk in excess

of the totals they processed during the

week just ended.

Notification of the action was sent to

the principal silk handlers by wire.

To prevent possible dislocations of

labor, provision was made that any proc-

essor unduly handicapped by the order

could file an immediate appeal for relief.

As of July 1, stocks of raw silk in

public warehouses were estimated at

53,000 bales with another 35,000 bales in

hands of mills. Mills have recently beenusing about 5,000 bales per week.

Silk supplies of this country comealmost wholly from Japan and China.

In addition to its principal use in

the manufacture of hosiery, silk has

many uses in industry, such as in the

insulation of wire and cable.

In warfare it is used for parachutes

and waste silk is used for powder bags

of large caliber guns.

There is no domestic production of

silk although efforts have been made to

develop a domestic industry.

However, there are a number of satis-

factory substitutes for military uses.

DEFENSEOFFICIAL BULLETIN of the Office for EmergencyManagement. Published weekly by the Division of

Information, Office for Emergency Management, andprinted at the United States Government PrintingOffice, Washington, D. C.

Subscription rates by mail: 750 for 52 issues; 25*

for 13 issues; single copies 5t, payable In advance.Remit money order payable directly to the Superin-tendent of Documents, Government Printing Office,

Washington, D. C.

July 29, 1941 • DEFENSE •

OPM unit to handle all defense power

problems; creates three vast regional pools

Establishment of a special power unit

In the Office of Production Management,to handle all defense power problems,

was announced July 21 by Director Gen-eral William S. Knudsen and Associate

Director General Sidney Hillman.

The new unit is headed by J. A. Krug,

acting as OPM coordinator for defense

power. He will have full responsibility

in this field. Mr. Krug, on leave as

manager of power for the Tennessee Val-

ley Authority, has already been actively

at work in OPM on power problems for

nearly a month.

Million kilowatt demand solved

Commenting on this new unit, Messrs.

Knudsen and Hillman said:

"With the establishment of the newset-up, OPM is now equipped to handle

all defense power problems through a

single clearing office. The program has

been worked out in close collaboration

with Chairman Leland Olds and the staff

of the Federal Power Commission andwith leading representatives of public

power agencies and the private pow°r

systems.

"Through the new power unit solutions

have already been found for the prob-

lems of power supply for many pressing

defense needs including the 1,000,000

kilowatts required for the greatly en-

larged programs for aluminum and mag-nesium, the most vital defense materials.

Plans for pooling regional resources

"Mr. Krug, in cooperation with the

Federal Power Commission, has devel-

oped specific plans which are being car-

ried into effect for pooling the power

resources of three vast regions of the

country. The Southern pool will include

the 11 Southeastern States. The North-

eastern pool embraces New York, Penn-

sylvania, New Jersey, and the New Eng-

land States. In the Southwest a newnetwork of transmission lines will permit

a giant power pool in Arkansas, Okla-

homa, Texas, Louisiana, Missouri, andKansas. These arrangements make it

possible to realize almost immediately the

maximum utilization of the existing

power installations of the country.

"In addition, an agreement has been

worked out between the Aluminum Com-pany of America and the Tennessee Val-

ley Authority for the development by the

TVA of the Fontana hydroelectric project

in western North Carolina. The plans

call for commencement of this project as

soon as Congressional approval can be

obtained. This project alone will gen-

erate sufficient power to produce 150,-

000,000 pounds of aluminum annually.

Arrangements have also been made for

the installation of large amounts of ad-ditional generating capacity in the other

major existing hydroelectric projects of

the country. The Department of Inte-

rior is installing additional units in

Grand Coulee, Bonneville, and Boulder

Dams. OPM will establish the necessary

priorities to hasten all of these installa-

tions. Arrangements are also under wayin various sections of the country for

installations of additional steam electric

generating facilities.

AH pledge cooperation

"Without exception the great powersuppliers, including the Department of

Interior, the Tennessee Valley Authority,

various State and local power authorities

and the private power systems, havepledged and given their wholeheartedcooperation in the emergency program.The excellent results so far achieved havebeen primarily due to this united effort

and to the foresight of the FederalPower Commission in having assembled,prior to the emergency, comprehensiveinformation on the power supply situa-

tion throughout the country.

"The Office of Production Managementhas made a working arrangement withthe Power Commission which will permit

full utilization of the expert staff andresources of that agency. The Commis-sion is loaning several top-ranking mem-bers of its organization to work withMr. Krug's office on a full-time basis

thereby avoiding all possibility of

duplication.

"In addition to representatives of the

Department of Interior and the Tennes-see Valley Authority, other leaders amongoperating power agencies who have beenactively participating in the programinclude L. F. Scattergood, general man-ager of the Los Angeles Bureau of Powerand Light, Harry Slattery of the RuralElectrification Administration, Philip

Sporn of the American Gas and Electric

System, J. Moore of the Electric Bondand Share System, E. W. Morehouse of

the Associated Gas and Electric Trustees,

K. M. Irwin and Constantine Bary of

the Philadelphia Electric Company."With the new set-up, the expanding

defense needs for power will be underconstant scrutiny and prompt and spe-

cific recommendations will be made to

insure additional adequate steam andhydro power installations in both thepublic and private systems throughoutthe country."

Mr. Knudsen and Mr. Hillman also an-nounced that all priority questions re-

lating to the power industry will behandled on the basis of recommendationsby Mr. Krug to E. R. Stettinius, Jr., Di-rector of Priorities.

» • •

HOW IT WORKS: Mr. Krug discusses

questions of expansion, priorities, pools

and rationing of power.—Page 10.

50 billions authorized for

defense spending in U.S.

A new high figure of $50,785,000,000 for

national defense was scored up July 26

by the Bureau of Research and Statistics,

OPM. This was revealed in an analysis

of recent appropriations and contract

authorizations for defense purposes.

The total of United States Govern-ment appropriations and contract au-

thorizations, plus funds made available

to the Reconstruction Finance Corpora-

tion for defense, came to $47,116,000,000

and British orders as of June 15, 1941,

totaled $3,669,000,000.

The break-down for United States andBritish commitments in this country

shows that $11,957,000,000 has been al-

lotted for airplanes; $8,483,000,000 for

naval vessels, merchant ships and trans-

portation equipment; $8,081,000,000 for

guns and ammunition; $5,530,000,000 for

industrial facilities.

A-10 rating speeds civil

planes for training and patrol

Priorities Director Stettinius an-

nounced July 22 a ne,w priority plan de-

signed to facilitate the production of

civil aircraft for Civilian Pilot Training

Schools, for Home Guard units, for pipe-

line patrol and for other specified pur-

poses.

A preference rating of A-10 will be as-

signed to 27 producers of aircraft andaircraft items. The rating may be used

to speed delivery of material going into

repair parts and accessories of suchplanes as well as material going into newplanes to be used for the purposes listed.

The A-10 preference rating is assigned

to the producers under the terms of the

Defense Supplies Rating Plan, and pro-

ducers using the rating will operate In

accordance with the provisions of that

plan.

• DEFENSE • July 29, 1941

PRODUCTION ...

Big bomber program behind, says Knudsen;

places authority to reduce autos in OPMAfter an extensive tour of airplane fac-

tories and other defense plants, Direc-

tor General Knudsen, OPM, told the

press July 23 that:

"I think our trainer planes are com-

ing all right. Such pursuit planes as

there are are coming all right. Flying

boats are getting a fair schedule. Weare still not up to snuff on the big

bombers."

Mr. Knudsen also said at his press con-

ference that the decision on a reduction

in automobile output rests with the head

of OPM's automobile section.

Excerpts follow:

Q. Did you have a nice trip, sir?

A. A good one, yes.

Q. How do things look?

Feeling is building up

A. I saw some 58 plants. They were

divided between a few ordnance plants,

and all the airplane plants and ship-

yards. Here is what I find. The feel-

ing toward the defense program is grad-

ually building up. There is a sympathyand enthusiasm toward the program.

You understand that it was slower build-

ing up from the Middle West than it washere in the East, but I find a general

sympathetic interest in the defense pro-

gram, and as far as the manufacturers

themselves are concerned, they are all

willing. On airplanes I think our trainer

planes are coming all right. Such pur-

suit planes as there are are coming all

right. Plying boats are getting a fair

schedule. We are still not up to snuff onthe big bombers. We have to do a lot

of work to get the sub-assembly plants

going around Detroit and get the assem-

bly plants going. A lot of plant expan-

sion has taken place out there on the

coast, and with the exception of Douglas

at Long Beach, and to some extent Con-solidated, it is practically all finished.

We have got plenty of men. Of course,

a lot of them are students, you under-

stand. Some plants are short of skilled

mechanics. There was not, at the mo-ment, any equipment shortage except for

future production schedules. There wasno plant shut-down on account of lack of

material, and I felt quite hopeful except

for some big jobs. We have to do a lot

of work on that.

Q. You read while you were away about

this suggestion of the OPACS adminis-

trator?

A. Yes.

Q. What do you think of it?

A. Well, I think we will have to go

about it in a sort of cooperative way with

the industry and find out how we can

make this shift practical, you know;

take off the automobiles and go forward

on the defense job.

Q. After going forward on the defense

job or making the cut in automobiles

unless

A. The funny part of it is the auto-

mobiles are not dependent on the—the

automobiles are dependent on the

amount of critical materials we can

spare for them, such as alloyed steel

and things like that. If we can't find

any substitute for it, we are going to be

out of luck.

Q. If you didn't put it in a blanket

order, they might be able to find sub-

stitutes?

A. We are going to give them a free

play for their ingenuities to see howmuch they can do without interfering

with the defense program. Don't forget

that the defense program comes first in

every instance, as far as I am concerned.

"A chance to use their heads"

Q. But after having taken care of the

defense program, you are giving them a

free play for their ingenuity instead of

putting a ceiling on it?

A. I don't think I can stop them. Youhave got to give them a chance to use

their heads.

Q. Do you infer by that that they will

not be asked to cut 50 percent?

A. I think the cut will be discussed

and negotiated. You see, if you cut 50

percent off tomorrow, you are going to

have a lot of people walking the streets.

Q. What does Mr. Henderson's order

mean then?

A. I don't know what it means. I

haven't seen Mr. Henderson since I cameback, but I suppose he had some darngood reason for it. I don't know, but I

am sure that when the industry comesdown here, it will be talked over, and it

will be planned in the best possible ways.

Q. When is that going to be done, Mr.

Knudsen? We understand they werehaving a meeting today, the passenger

car subcommittee.

A. I think it is today or tomorrow.

Q. Aren't you going to meet with them?

A. Oh, yes, I will be there. I met with

the parts fellows yesterday.

Why it is hard to use

auto factories for defense

Q. What does it look like now that the

automobile industry will be asked to do

in the way of the defense load? Howmuch defense work are they going to be

asked to do?

A. Oh, anything we can get in there

quick, you see, that they can get tools

for. You understand, a defense job—it

is very difficult to find a defense job that

will fit the equipment they have got.

You might use a portion of it, and, of

course, the portion that we procure for

them before they can start producing.

That, of course, is the bottleneck on that

portion of the job.

Q. Mr. Knudsen, the final decision

then on the question of the automobile

curtailment will be made at this meeting

and not as a result of Mr. Henderson's

order?

Where the decision rests

A. The automobile section is runninglike this; that the industry makes recom-mendations, but the head of the section

representing the Government has to

make the decision, the head of the sec-

tion. We will naturally consult withOPACS. There isn't any reason why weshouldn't because the quantity it will be

allowed to make will have a great effect

on the price. You know that as well as I.

You know what the break-even point is

in the factory and how quantity affects

the selling price.

Q. In this case it would be Mr. Adams?A. Mr. Adams is the head of the auto-

mobile section. We will consult with

OPACS. There isn't any reason why weshouldn't.

Q. He is the man that will make the

decision on how much the cut will be?

A. After consultation with the indus-

try, and after careful analysis of the

result.

Q. Is there any conflict between OPMand OPACS on various problems, suchas whether or not OPACS in its civilian

authority may step in, and although youonly need 40 percent for defense

—

A. There is a little dispute regarding

the wording, but I think it will bethrashed out in a few days.

Q. Is their Executive order before the

President now?

July 29, 1941 • DEFENSE •

A. They have one and we have one.

Q. Have you got them together yet?

A. I think we will straighten it out in

a few days.

Q. Mr. Knudsen, going back to your re-

port on your trip, what was It you said

about the big bombers, that you were dis-

appointed in the showing that had been

made?

Bomber assemblies behind schedule

A. No, I said we haven't gotten upspeed on the big bombers yet because

they were big planes, you know, and they

were more or less in the experimental

stage when we got them, and there is a

good deal of lay-out work trying to get

them cut in sections so as to get the

minor assemblies out for them, and that

is the job that is behind.

Q. It is behind schedule?

A. Yes.

Q. How much effect is the bomberprogram having on the other ships

which are already scheduled for produc-

tion? That is, are they having to cut

down In other places in order to accom-modate the bomber program?

A. So far we haven't done it. Thequestion that came up was the question

of machine tools for regular planes, andI think we can work that out. I think

we will have plane tools before we get the

other bombers because they were or-

dered a good deal ahead of time.

Q. The over - all airplane picture,

bombers, pursuit planes and so forth,

how is it running with your schedule?

A. Fairly good.

Admiral Towers' worries

Q. Mr. Knudsen, yesterday AdmiralTowers, speaking on that very point, said

that as a result of the concentration onheavy bombers, the Navy deliveries onits own scheduled planes were falling 20

percent behind.

A. He was talking about machine tools.

He was talking about tools.

Q. Well, he was talking chiefly about

results, about the planes that had been

scheduled for Navy delivery.

A. Well, I saw his testimony in the

morning paper, and I haven't had a

chance to talk with Towers, but when I

talked with him before we went awaywe were over in the section office, and,

of course, the bombers had a higher rat-

ing, and he thought that his planes were

being interfered with, and I told him I

didn't think so because he doesn't use

the same kind of planes, you see. His

planes are small planes, but on the tools,

we will try to fix them up so they will be

taken care of.

Q. He apparently didn't feel that wayyesterday.

A. I saw it, and we might have to have

another talk with him to see whether heis really upset about it, but I thought

we could adjust it. I thought that his

tools were so far ahead of the bombers,

the bomber tools, that he wouldn't be

interfered with a terrible lot except in asingle instance where a tread mill or

something like that would go haywire onhim, but I think we can adjust it. Now,see, here is the schedule. You mustn't

take any figures down. Here is the

schedule here, and here is the trend, see.

Some months we have been up pretty

well, and then we dropped down a little

bit, and now we are a little bit below the

trend in the last 2 months, that is onplanes. Here is motors. It is a little

better on motors, and here is guns. Theguns, we have been pretty well on the line

there, but this month we have got to have

a hop-up, because we go up to this line.

* • *

0PM urges 6,508,950-ton

increase in pig iron capacity

An increase in pig iron capacity of

6,508,950 tons was recommended by OPMJuly 23 as an essential step in maintain-

ing and increasing the production capac-

ity of the steel industry.

Government financing of this step will

be required "and is so recommended by

us for the best consideration of the De-

fense Plant Corporation," the OPM said

in a letter transmitting the proposal to

Jesse Jones, the Federal Loan Adminis-

trator.

William S. Knudsen, Director General

of OPM, wrote Mr. Jones that an initial

expansion of pig iron capacity was ur-

gently required.

* • •

Weinberg names Bartlett

and Watson to staff

Sidney J. Weinberg, chief of the bu-

reau of clearance of defense industry

advisory committees, OPM, announced

July 22, that he had appointed N. T.

Bartlett as executive assistant and Ken-neth M. Watson as administrative assis-

tant consultant. The services of Mr.

Bartlett have been loaned by the De-

partment of Commerce, where he was

secretary of the business advisory council,

and the services of Mr. Watson have been

loaned by the Federal Trade Commission,

with which he was associated as an

attorney.

Parts makers told of opportunity

in 60-biIlion-dollar program

Manufacturers of automobile parts andcomponents received assurance from the

Office of Production Management July

23 that they would have an opportunity

In the immediate future to obtain a

greatly increased volume of defense work.

This assurance was given some 120

members of the industry who met to

nominate eight members of the Auto-

motive Defense Industry Advisory Com-mittee. Approval of the nominees by the

OPM and other interested Governmentagencies will complete this committee.

Eleven members nominated by passen-

ger-car and truck manufacturers have

already been appointed and announced.

OPM Director General Knudsen andAssociate Director General Hillman ad-

dressed the parts and components man-ufacturers.

It was stated that the defense program

has grown since last March from around

$30,000,000,000 to nearly $60,000,000,000

now authorized or pending in Congress.

The statement that the defense pro-

gram, authorized or pending, now ap-

proximates $60,000,000,000 was based

upon these figures: On July 15 the au-

thorized United States program, includ-

ing lend-lease appropriations, amounted

to $47,116,000,000, and British orders in

this country to $3,669,000,000. Additional

defense appropriations now pending

amount to about $8,200,000,000.

* * *

Canadian nickel output to be

expanded to aid U. S. imports

Arrangements have been completed to

expand Canadian nickel production so

that United States imports of this vital

defense material from Canada can be

increased 20 percent, it was announced

July 25, following a meeting of the Ma-terial Coordinating Committee of the two

countries.

It was reported at the meeting that

10 Canadian ships had been made avail-

able recently to transport iron ore on the

Great Lakes and that additional Cana-

dian ships would be put into this service.

The Committee was advised also that

Canada would require an increased

amount of steel from this country for

shipbuilding.

Possibility of the United States obtain-

ing increased amounts of zinc, lead, and

chlorine from Canada was discussed.

• DEFENSE • July 29, 1941

LABOR . . .

Stabilization pact between building unions

and U. S. agencies is approved by OPMSidney Hillman, Associate Director

Genera], OPM, announced July 24 that

the OPM had fully approved the newstabilization agreement between the AFLbuilding and construction trades and the

various Government agencies, including

the Army, Navy, and Federal Works Ad-ministration, which are concerned withdefense construction projects of various

kinds.

The terms of the memorandum of

agreement which will directly affect morethan 800,000 building trades workersfollow

:

Uniform overtime rates

Where a single shift is worked, 8 hoursof continuous employment, except for

lunch periods, shall constitute a day's

work beginning on Monday and throughFriday of each week. Where work is re-

quired in excess of 8 hours on any one dayor during the interval from 5 p. m. Fridayto 7 a. m. Monday, or on holidays, suchwork shall be paid for at 1V2 times the

basic rate of wages.

Uniform shifts

Where two or more shifts are worked,

5 days of 7 Vz -hour shifts from Sundaymidnight to Friday midnight, shall con-

stitute a regular week's work. The payfor a full shift period shall be a sumequivalent to eight times the basic hourly

rate and for a period less than the full

shift shall be the corresponding propor-

tional amount which the time workedbears to the time allocated to the full-

shift period. Any time worked fromFriday midnight to Sunday midnight or

in excess of regular shift hours shall be

paid for at l'/2 times the basic rate of

wages. Wherever found to be practica-

ble, shifts should be rotated.

No stoppage of work

The Building and Construction Trades

Department of the American Federation

of Labor agrees that there shall be nostoppage of work on account of jurisdic-

tional disputes, or for any other cause.

All grievances and disputes shall be set-

tled by concilation and arbitration.

Subcontractors

It shall be the policy of all Federal con-tracting agencies to require the utiliza-

tion of specialty subcontractors on those

parts of the work which, under normalcontracting practices, are performed byspecialty subcontractors subject, how-ever, to the following:

(a) When a general contractor candemonstrate that specialty work hasbeen customarily performed by his ownorganization and that his existing organ-ization is competent to perform the work,

he may be permitted to do so.

(b) Where the performance of spe-

cialty work by specialty subcontractors

will result in materially increased costs

or inordinate delays, the requirement

hereinbefore mentioned may be waived.

On negotiated contracts, the decision

as to which parts of the work will be per-

formed by subcontract will, insofar as

may be practicable, be made at the time

the contract is negotiated.

Predetermination of Wages

In predetermining the minimum wagewhich is to be paid to contractor's em-ployees on the specific construction job,

consideration shall be given to the rates

prevailing in the area from which labor

must be drawn to man the job and to newwage rates which have been negotiated

and concluded through bona fide collec-

tive bargaining processes which will take

effect at a future date.

Wage rates paid at the start of workon a project shall continue until the

completion of the project, or not morethan 1 year, and new agreements or

new determinations of wages for workin the same area will become effective

only on new jobs started or new con-tracts signed after the employer-em-ployee agreement has been negotiated.

Application of Agreement

Any contract work done for or through

any Federal agency for defense pur-

poses within the continental limits of the

United States and the Panama CanalZone shall be governed by this labor

policy.

It is understood that the provisions of

this agreement shall apply only to na-tional defense projects.

Apprentices

It is agreed that the number of ap-prentices used shall be limited to the

number agreed upon between the re-

spective unions and contractors and ap-

proved by the Department of Labor in

the case of those unions and employers'

associations that have established ap-

prenticeship standards in conjunction

with the Department of Labor and the

number of apprentices in other cases

shall conform to the usual practice pre-

vailing between the unions and the em-ployers' associations of the respective

trades.

Board of Review

There shall be constituted a Boardconsisting of a representative of the

Government agencies, a representative

of the Building and Construction TradesDepartment of the A. F. of L. and a

representative of the OPM. It shall be

the function of this Board to interpret

the provisions of this agreement, to ad-

just disputes arising hereunder, and the

findings of the Board shall be binding

on the parties to the agreement. In

case of a dispute involving a specific

Governmental agency, that agency maydesignate a representative as a tempo-rary member of the Board for the

mediation of that dispute. The Boardshall have no authority to encroach

upon or to relieve any Governmentalagency of its legal authorities and/or

responsibilities.

• • *

Conferees discuss transfer

of rail workers to defense

Eli L. Oliver, chief labor adviser onthe staff of the Labor Division, met with

a special committee of railroad presi-

dents and railroad labor executives in

Chicago on July 22 to consider the possible

transfer, by voluntary methods, of a con-

siderable number of railroad maintenance

workers to defense' industries.

• * *

Union leaders, OPM discuss

effective use of labor supply

Effective utilization of America's labor

supply was the subject of a conference

held July 25 by the Labor Supply Branchof the OPM's Labor Division with 48

labor leaders from all over the country

in attendance.

July 29, 1941 • DEFENSE •

MEDIATION BOARD .

Issues settled in one dispute,

recommendations made in five

The National Defense Mediation Board

last week (July 21-27) obtained an agree-

ment settling the issues in one case and

made recommendations In five others.

In a seventh case, it obtained an agree-

ment on a formula for settling the Issues

In dispute.

The full Board at a regular meeting

July 24, after five hours of discussion of

the Federal Shipbuilding case, remandedthe case to the panel originally assigned

to hear it.

Western Cartridge Co.

The Board on July 24 made public Its

findings and recommendations in the

dispute between the Western Cartridge

Company and the East Alton Manufac-turing Co. of East Alton, 111. and the

Chemical Workers Union—AFL In

brief the recommendations were as fol-

lows:

1. Individual contracts. — Approxi-

mately 5,100 employees of Western Cart-

ridge have executed individual contracts

which provide in the main for a 6 percent

bonus at the end of the year on condition

that the employee does not go on strike

during that time. In its recommenda-tions the Board states:

"Regardless of whether tlie Individual con-tracts are or are not valid under the NationalLabor Relations Act, the panel regards thesecontracts in their present form as being in-consistent with a sound collective bargainingrelationship."

It therefore recommended their can-cellation and repayment to each employeein the unit represented by this union the

amount he had personally paid in underhis contract.

2. Type of Shop.—The union requested

a union shop in which every present em-ployee must be and remain a member of

the union in good standing as a condition

of employment and every new employeeafter 30 days must become and remain amember of the union in good standing as

a condition of employment.The Board recommended the following:

"The company agrees that any present em-ployee who on June 24, 1941 (the date thiscase was certified) , was a member of theUnion or who has become a member of theUnion since June 24, 1941, shall as a condi-tion of continued employment maintainmembership in good standing; and any em-ployee who hereafter, during the life of thisagreement, becomes a member or Is rein-stated as a member of the Union shall asa condition of continued employment main-tain membership In good standing."

"In making this recommendation," therecommendations state, "the panel notesthat it In no way impinges upon the freedomof any Individual who has not chosen toJoin the Union. It does not exercise thetype of compulsion specifically adverted toin the Companies' brief. It does not restrictthe employer in the choice of his employees

—

a restriction to which . . . the employer ex-pressed particular opposition. It goes onlyso far as to preserve the Union in the statusIt has already achieved and may achievethrough voluntary adherence of employees.It protects the Union In Its capacity to fulfil

Its contract, and makes certain that thosewho authorized the Union to act for themwill aid their agent in performing Its obliga-tions."

3. Wages.—On July 13, while hearings

were in progress in Washington, the

Western Cartridge Co. granted a wageincrease averaging 5 percent to all its

employees other than those represented

by the Chemical Workers Union. TheBoard recommended that all the em-ployees represented by this union be

granted the same wage increase as of

July 13. The Board felt that it had In-

sufficient evidence for an intelligent

judgment regarding further increases.

It therefore recommended that the mat-ter be arbitrated, the company to pick

one arbitrator, the union a second andthe third to be named by those two. If

the three arbitrators are not named by

August 1 the Board will then name a

single arbitrator. Any wage increases

shall be retroactive to the date the hear-

ings in this case closed (July 15, 1941).

4. Vacations.—The Board recom-

mended that, since this question is so

closely allied to the question of wages,

it be arbitrated in the same manner.5. Jobs in the Smokeless Powder Divi-

sion not transferred to East Alton Man-ufacturing Co.—The Western Cartridge

Co. has set up a wholly owned subsidiary,

the East Alton Manufacturing Co., to

which it plans to transfer the jobs per-

formed by the hourly paid production

employees of the Smokeless Powder Divi-

sion, except magazine storekeepers andprobably junior physicists and junior

chemists. The Board recommended that

if these employees were not transferred

to the East Alton Manufacturing Co., the

Western Cartridge Co. should bargaincollectively respecting them with the

Chemical Workers Union.

6. Senior it y.—The Board recom-mended that both parties accept the

seniority clause negotiated on July 15.

Both parties were given until July 28

to accept or reject these recommenda-tions. Acceptance by the union was re-

ceived by the Board July 27. Membersof the panel, in addition to Mr. Lapham,were Charles E. Wyzanski, Jr., represent-

ing the public, and Edward J. Brown,representing labor.

Federal Shipbuilding and Drydock Co.

After 5 days of hearings on the dispute

between the Federal Shipbuilding & Dry-dock Co., Kearny, N. J., and the Indus-

trial Union of Marine and Shipbuilding

Workers of America—CIO, agreementwas reached July 14 on all issues except

that of union security. The entire pro-

duction of the company's 16,000 employ-

ees is devoted to the building of ships for

the Navy and Maritime Commission.

At a full meeting attended by 22 mem-bers and alternates of the Board on July

24, the union security issue in this case

was discussed for five hours. The ques-

tion had been brought to the full Boardby the panel. At the end of this discus-

sion the case was remanded to the panel

originally assigned to hear the case.

Upon further consideration, a majority

of the panel on Saturday, July 26, madethe following recommendation:

"In view of the Joint responsibilities of theparties to the National Defense, of their mu-tual obligations to maintain production dur-ing the present emergency and of their recip-rocal guaranties that there shall be nostrikes or lockouts for a period of two yearsfrom June 23, 1941, as set out in the 'AtlanticCoast Zone Standards', incorporated hereinand made a part hereof, the Company en-gages on its part that any employee who is

now a member of the Union, or who here-after voluntarily becomes a member duringthe life of this agreement, shall, as a condi-tion of continued employment, maintainmembership in the Union in good standing."

On July 24, the Board made recom-mendations in the dispute between the

Marlin-Rockwell Corporation and the

United Automobile Workers of America

—

CIO. In doing so it accepted as its ownthe findings and recommendations of

Professor Harry C. Schulman of the Yale

University Law School who had been ap-

pointed a special representative to in-

vestigate the matters in dispute. Theserecommendations provided mainly for anadditional increase of 5 cents an hour for

female employees retroactive to June 9

and for a vacation bonus for all em-ployees In the service of the company six

months or more. It recommended that

all matters in dispute between the parties

not covered by the recommendations be

the subject of direct negotiations. It

gave the parties until July 31 to accept

or reject these recommendations.

• DEFENSE • July 29, 1941

PRIORITIES . . .

Cutting tool order modified

to assure defense deliveries

Priorities Director Stettinius July 25

announced several changes in the gen-

eral preference order which directs the

use and distribution of cutting tools.

The original order was issued July 17th.

The major changes are:

(1) Cemented carbide tools are in-

cluded within the definition of cutting

tools and copies of the amended order

have been addressed to cemented carbide

tool manufacturers.

(2) No manufacturer or distributor

may accept an order for or make deliv-

ery of cutting tools unless this delivery

bears a preference rating of A-10 or

higher, except upon the specific direc-

tion of the Director of Priorities. Theoriginal order permitted deliveries of

nondefense orders if defense orders onhand had been completed.

(3) The new order clarifies the special

provisions which relate to manufacturingprocesses carried on during a 6 weeks'

period dating from July 17, 1941. Sec-

tion (h) of the new order says:

Any other provision of this order to the

contrary notwithstanding, for a period of sixweeks, commencing July 17, 1941, work onorders or contracts which are in actual pro-duction on July 17, 1941, may be continuedby a manufacturer in accordance with exist-ing production schedules, and deliveries ofsuch cutting tools, as defined herein, ashave been completed either prior to or dur-ing said 6 weeks period, may be made duringsaid period by a manufacturer or distributorto fill orders or contracts on hand on, orprior to, July 17, 1941, without regard, ineither event, to preference ratings assignedto, or delivery dates specified in, any ordersor contracts during said period. Provided,however, that nothing in this paragraphshall apply to work on, or deliveries under,orders or contracts which, at any time, havebeen, or are, assigned an AA preferencerating.

The cutting tools order was issued be-

cause of a shortage of these tools vitally

needed for defense work. It providedthat, In general, defense orders are as-

signed a preference rating of A-10 unless

higher preferences have been specifically

awarded.

The general purpose of the order is to

make sure that defense needs for cutting

tools are filled ahead of nondefense

needs.

Blanket preferences applied to

locomotive building, repair

To alleviate problems caused by aserious shortage of locomotives, the Pri-

orities Division issued July 21 twoblanket preference rating orders whichwill facilitate both the construction of

locomotives and their repair.

A preference rating of A-3 will begranted to an initial list of ten locomo-tive builders and also to about 60 repair

plants.

The two orders are similar in formto the blanket preference rating alreadygranted to freight-car builders. One of

the new orders grants a rating for de-livery of material entering into the re-

pair and rebuilding of steam, electric or

Diesel locomotives, whether for railroad,

mining or industrial use. The other or-der grants a rating for delivery of ma-terials entering into the construction ofspecified locomotives now scheduled bythe builders.

Each producer or supplier granted theuse of the new rating, may apply it to

deliveries of material entering into con-struction or repairs by executing a copy

of the appropriate order and serving it

on his suppliers.

After the rating has been applied thefirst time, additional orders may be cov-

ered merely by citation of the rating

granted originally.

• * *

Courses to be held for

priorities specialists

Priorities Director Stettinius an-nounced July 24 that the Priorities Di-vision will hold a series of training

courses during the next several monthsfor business and industrial priorities

specialists.

These meetings will be open to officials

appointed by their companies or tradegroups. A number of plants recently

have appointed members of their staffs

to specialize on priorities problems.

More than 100 priorities specialists

from the steel industry attended the first

training clinic on July 18, heard mem-bers of the Priorities Division staff ex-plain procedure, and took part in roundtable discussions on problems which havearisen in their field.

Steel industry committee

holds first meeting

Formation of an enlarged steel defense

industry advisory committee of fifteen

was announced July 22 by the Bureauof Clearance of Defense Industry Ad-visory Committees, OPM.

First meeting of the committee washeld in the Board Room of OPM, July 23.

Members of the committee are: W. F.

Detweiler, chairman, Allegheny LudlumSteel Corporation, Pittsburgh; B. F. Fair-

less, president, U. S. Steel Corporation,

New York; Frank R. Frost, president,

Superior Steel Corporation, Pittsburgh;

T. M. Girdler, chairman, Republic Steel

Corporation, Cleveland; E. G. Grace,

president, Bethlehem Steel Co., Bethle-

hem, Pa.; Edward L. Parker, president,

Columbia Steel & Shafting Co., Pitts-

burgh; Henry A. Roemer, president,

Pittsburgh Steel Co., Pittsburgh; FrankPurnell, president, Youngstown Sheet &Tube Co., Youngstown, Ohio; E. L. Ryer-son, Jr., chairman, Inland Steel Co., Chi-

cago; Hayward Niedringhaus, president,

Granite City Steel Co., Granite City, 111.;

Ernest T. Weir, president, National Steel

Corporation, Pittsburgh; Charles R.

Hook, president, The American Rolling

Mill Co., Middietown, Ohio; Robert W.Wolcott, president, Lukens Steel Co.,

Coatesville, Pa.; Elton Hoyt, senior part-

ner in Pickands, Mather & Co., Cleve-

land; W. S. Tower, president, AmericanIron & Steel Institute, New York City.

The steel industry defense advisory

committee was established by OPM to

advise and consult with A. D. Whiteside

of the Division of Production, who has

been designated Government presiding

officer of the committee.

• * *

Copper regulations clarified

Priorities Director Stettinius an-nounced July 21 that General MetalsOrder No. 1 has been amended to ex-

empt from its provisions copper-basealloys in which the percentage of cop-per, by weight, equals or exceeds the

percentage of all other metals.

The amendment was made necessarybecause inventory control of such cop-per-base alloys is already provided for

in the order providing industry-widecontrol on copper, copper products, andcopper-base alloys.

July 29, 1941 • DEFENSE •

AGRICULTURE . .

.

Food a strong weapon, Townsend tells

farmers; warns priorities will pinch

In two addresses, Director M. Clifford

Townsend of the Office of Agricultural

Defense Relations, last week outlined

agriculture's place in the defense pic-

ture and warned the Nation's farmers

that they face all of the disturbances to

be found in a "wartime" economy.

Before the Mid-West Training School,

American Farm Bureau Federation, Uni-

versity of Illinois, on July 21, Director

Townsend called for all-out production

of the food products needed by GreatBritain. Two days later, before the In-

ternational Baby Chick Association,

meeting in Kansas City, Mo., he urged

preparation against the pinch of pri-

orities.

"Food is a defense weapon"

Excerpts from the Training School

talk: "The food-for-defense program is apart—one of the most important parts

—

of our all-out defense effort. Food is

a defense weapon, one of the strongest

we have. Without food Britain and the

other nations resisting aggression can-

not continue to stand between the UnitedStates and the Hitler menace.

"This is not an age where a continent

can be isolated from war. War is not

fought by guns alone but by political andeconomic infiltration, by sudden, light-

ning movements that strike without

warning, by attacks upon the nerves of

a nation.

"You and I, as farmers, know what it

means to be protectee! against suddendangers. If a great grass fire is raging

all around our farm, we don't sit backon our porch chairs and scoff at the

danger. We dig ditches We draw our

water in buckets. We organize our folks

to stand guard.

"The fire is raging around us today,

and you and I here in the Middle Westare just as deeply concerned in the out-

come as the British farmer who is trying

to till his soil between raids."

Before the International Baby Chick

Association, Director Townsend declared

that in order to produce the food needed

for this country and Great Britain "agri-

culture must have the equipment, imple-

ments and services to carry out its work."

Receive cooperation on priorities

Other excerpts: "One of the most im-

portant Jobs of the Office of Agricultural

(Information furnisJied through Office of Agricultural Defense Relations,

U. S. Department of Agriculture)

Priorities and rationing, which may beexpected to increase greatly as our de-fense program develops, are already af-

fecting poultry equipment, milking

equipment, fencing, steel grain bins,

tractors and some farm machinery.

Must face shortages

"Nitrates, the basis for explosives aswell as for fertilizers, may be affected

soon. Other chemicals and drugs for

insecticides, fungicides, and disinfectants

are likely to be short. The shortage of

farm labor, the increased cost of thingsfarmers buy, and all of the other things

that make up a wartime economy mustbe faced by farmers planning for thefuture."

Defense Relations has been to presentagriculture's case before the defense of-

ficials who are responsible for grantingpriorities for metals, chemicals, and otherstrategic materials. We soon discovered

that this was largely a matter of under-standing, and as soon as the priorities

officials understood why agriculture

needed certain things, we received thefullest sympathy and cooperation.

"This sympathetic attitude does notmean that we can expect to get for agri-

culture everything we want or need.

Bigger output of soy protein sought to

replace casein reduced by food demandBecause of defense needs for adhesives

the Department of Agriculture is explor-

ing the possibility of increasing com-mercial production of soybean protein byutilization of a process developed by De-partment chemists. The objective is to

obtain sufficient supplies of soybean pro-

tein to make up for growing shortages

of casein, an adhesive necessary to de-fense industries and housing.

Department chemists state that the

adhesive qualities of the soybean pro-

tein are fully equivalent to casein. Thechemists began working on the problemof extracting the protein from soybeansin a commercially practicable fashion

more than 4 years ago in the SoybeanResearch Laboratory of the UnitedStates Department of Agriculture at Ur-bana, 111.

Food demand reduces casein supply

Because casein is a milk derivative its

production is limited and is becomingprogressively more limited by the in-

creased demand for milk in edible formunder the food-for-defense program andthe Lend-Lease Act. For this reason the

Office of Agricultural Defense Relations

has made arrangements for the Soybean

Research Laboratory to study the possi-

bilities of increased production of soy-

bean protein.

It is estimated that 10,000 tons of soy-

bean protein will be required annually

on the basis of present needs to make up

for casein shortages. This is three to

four times the amount now beingproduced.

Soybean protein can be substituted for

casein as an adhesive with only small

differences in the final results. Thepaper-coating Industry furnishes an out-

let for about three-quarters of the casein

consumed. Large quantities are also

used in the manufacture of plywoods,

plastics, water paints, paper sizing,

leather finishes, and insecticide sprays.

Soy protein superior in some respects

Soybean protein is considered anequivalent to casein in all of these uses.

On the other hand, it has been discovered

by the Department that soybean protein

possesses some properties superior to

those of casein.

Only one plant is now producing a re-

fined soybean protein. This plant has

made use of processes developed by the

soybean laboratory. Two other com-panies have plans for building factories

under serious consideration. One al-

ready has built a pilot plant.

In addition to its qualities as an equiva-

lent for casein, new uses have been de-

veloped for soybean protein which are

not in competition with casein. Fur-

thermore, it is expected that other newuses will be developed lor proteins like

casein and soybean, thus increasing the

total tonnage consumed by industry. In

this way it is expected that when the

present defense emergency is over there

will be room for both casein and in-

creased supplies of soybean protein.

10 • DEFENSE • July 29, 1941

Power coordinator discusses steps to meet

defense need, and their effects on public

In his July 21 press conference, J. A.

Krug, who heads the new power unit of

OPM, outlined the methods by which

enough electricity will be obtained for

defense, and answered questions about

the effects of the program on the public.

He summarized the problems and meas-

ures to meet them in a statement, which

follows in part:

The problem of providing an adequate

power supply for defense has two prin-

cipal aspects. First, we must, of course,

make certain that generating capacity is

installed to meet the phenomenal ex-

pansion of defense plants. But time is

short. Second, and much more imme-diate and perhaps more important, wemust make sure that the production of

national defense materials from existing

plants is not limited because of a lack

of electric power.

More needed at once

More power is needed, and needed at

once. It takes much longer to build anelectric generating station than almost

any of the industrial plants needed in the

defense program. Power supply must be

found for defense plants as soon as they

are completed. Aluminum and magne-sium plants, so vital in the nation's de-

fense effort, can be constructed in from

6 to 12 months. The installation of eco-

nomical generating facilities, whether

steam or hydro, requires a much longer

period—18 to 30 months with the present

schedule of deliveries. Interim require-

ments for defense power can be met only

by power pooling and the maximum use

of reserves, supplemented in some areas

by curtailment of nonessential uses. Theconstruction of interconnecting trans-

mission lines must be accelerated to per-

mit transfer and use of temporary local

surpluses and to facilitate operation with

the minimum of generating station re-

serves. The day of emergency is here.

Under the new form of organization

in the Office of Production Management,electric utilities, whether privately or

publicly owned, will be able to obtain

full consideration of their equipmentpriority problems from a single division

and obtain a decision which is final andcomprehensive.

Everything will be done (a) to makeavailable coordinated projections of de-

fense loads by areas; (b) to develop spe-

cific plans for an adequate power supply

to meet both defense and civilian powerrequirements; and (c) to develop a

practical plan for power priorities, both

as to equipment and as to available

power supply, so that the demands of

the emergency may be met without de-

lays and without unreasonable disloca-

tion of nondefense activities.

How a poo! works

The power program was discussed fur-

ther at the press conference. The open-

ing remarks in the following excerpts

refer to the operation of power pools:

A. Let me give you an example.

There is already one of these in practical

effect in the Southeast. Tire AluminumCo. has the largest plant in the coun-

try at Alcoa, Tenn. They don't haveenough power to operate that plant con-tinuously, so in normal times they just

close it down, v/hen there isn't sufficient

stream flow. The War Department hasbeen insistent that they operate all the

time, at 100 percent capacity. The TVAand the company have reached anagreement to assemble that power fromwherever it must be obtained to permit

that, so that the dozen or so transmis-

sion line interconnections between TVAand other companies are called upon to

get parts of that power in. The wayIt is worked out is that, say, somebodycalls up from Chattanooga to Little

Rock, Ark., and says, "How much powercan you send in the next week for the

account of the Aluminum Co.," and they

say "So many kilowatts, at such andsuch a price," and they say, "Okay,schedule it in this way," and they dothat with each of the other companies,

so that a certain given number of kilo-

watts can be delivered over that inter-

connected network.

Authority to order connections

Q. Where it is necessary to build newconnecting links, will that be done bythe Government?

A. No; for the most part those lines

will be built by the utilities. Some of

them are privately owned utilities andsome of them are publicly owned.

Q. So far, in the Southeast, you havesaid that the interconnections have beenvoluntary. Does the PPC order—in it-

self, is that a form of teeth? In others,

if some company does not want to do it

voluntarily, it does have to?

A. Yes; indeed It does. Under the

PPC, they have full authority to order

it, and also to fix the compensation in

connection with each company.

Q. Who would administer a powerpool?

A. Under the schemes we have in

mind now, it is not necessary that any-one administer the entire pool. Utilities

desiring power can effect the desired re-

sult by voluntary arrangements with the

other systems in the pool, but if you got

into a conflict where, let's assume that

the Aluminum Co. needed more power at

Alcoa than the systems that are inter-

connected would be willing to transfer

to Alcoa, then somebody would have to

order the systems to transfer into Alcoa

the power that was needed, and the FPChas the authority to do it under its Act,

and I think the OPM has the authority

to do that under some of the general

defense acts.

Power priorities depend on Nature

Q. Your statement says here, "TheOPM hopes to develop a practical plan

for power priorities." Do you think that

power priorities will be needed in the

next year or two?

A. Well, it is very difficult to give a

point-blank answer to that because it

depends in considerable part on howkind Mother Nature is. If we get suffi-

cient rainfall throughout the country so

that hydroelectric projects, instead of

being limited to their primary power

level, have surpluses, it probably will not

be necessary. On the other hand, if weexperience another period of drought

such as the past 6 months, I think it is

extremely probable that priorities on the

use of power will be necessary.

Q. Mr. Krug, did I understand you to

mean—coming back to power priorities

—

that we won't have them for a while?

You don't intend to ration power any

further than it has been done in order

to create a reserve?

A. You are going to have rationing of

power just as soon as you have a reduc-

tion of primary power levels on all of

the hydro systems of the country, be-

cause right now those systems are carry-

ing a lot of defense load that heretofore

has been content with part-time hydro

power. For example, aluminum produc-

tion, just in the nature of things, has

always used large amounts of secondary

power. They build up a stock pile and

they have power, and they draw on the

stock pile, and they don't have the power,

but now when the need is here for all

of the aluminum production power ca-

pacity we have all the time, you must

find continuous power, and that means

that when the secondary power disap-

pears it must take the primary power

from some other use, and that was done

July 29, 1941 • DEFENSE • 11

recently in the southeast for several

months, although now, very generous

rains in July have temporarily relieved it.

A-l-b rating for materials

Q. Is there any problem in getting the

necessary material? I am thinking of

coppei particularly.

A. Yes; copper is extremely short, andwe have been trying to plan these lines,

keeping in mind the necessity of using

minimum quantities of copper, and for

that reason some lines that probably

would be desirable have been excluded,

hoping that we can get by at least for

the present with the minimum setup.

Q. Is it fair to assume that any inter-

connection line built in response to this

pooling arrangement by FPC order will

be given a priority there?

A. Yes, all of the interconnections that

the PPC ordered in the southeast were

given by OPM an "A-l-b" rating, whichis an extremely high priority for a utility.

Q. New generating plants may comeinto that?

A. Yes.

Jurisdiction

Q. Mr. Krug, what jurisdiction, or re-

lationship will this new power unit haveover the FPC pcwer expansion program,

now, precisely? I am not quite sure as

to the

A. Well, the OPM has control of pri-

orities and equipment.

Q. Yes.

A. And will have to make certain that

defense needs are given foremost con-

sideration. We expect no difficulty

whatever in working with the Federal

Power Commission on the best locations

to put all of the new installations, be-

cause I find they are as anxious to take

into account the needs of defense as weare.

Proposed new plants

Q. Now, they got out a long list of

pioposed new locations last week.

A. Yes; they did. You will recall they

made clear in those statements that they

were subject to change and tentative,

and would clear with us to make certain

that no units were located pursuant to

that program that were conflicting.

Question of civilian curtailment

Q. Is there any immediate possibility

that amusement centers, such as movie

theatres, might have to curtail opera-

tions in the Southeast?

A. I don't think so.

Q. Is there any future possibility of

that? Just what Is the situation onthat?

A. Well, in the Southeast, as to just

what activities will be curtailed, consid-

erable has been done, and they haveworked out a rather elaborate system of

conserving power which, so far, does not

take into account any reduction in the

operation of the motion picture theatres,

except reducing the differential on air

conditioning.

Q. And they have no immediate dan-ger of power shortage?

A. No.

Operation in Southeast

Q. Mr. Krug, here you speak aboutplans to minimize nonessential uses, andfor fair and intelligent rationing of

power. Could you give any indication

of how those plans conceivably mightoperate if you find it necessary to putthem into effect?

A. I can give you an outline of howthey have worked cut in the Southeast, if

that is what you have in mind. Therethey announced the program, first, for

each class of customer, residential, com-mercial and industrial, and the first

step was Just cutting out nonessential

uses. The second step was to ask for aspecific quota from each class; and, to

take commercial customers for example,

that required that stores would turn off,

or leave off rather, all window lighting

and all display lighting, all signs, cur-

tail elevator service and things of that

kind. The industries were asked to

scale down by a blank percentage over

some preceding level.

How rationing would work

Q. What about rationing?

A. Well now, if you aie rationing youjust have to order that done; in other

words, you would have to say, "All in-

dustries, except the following, shall cut

as of this date, as to some percentage of

their previous consumption."

FPC offers detailed plan for defense power

to care for needs in years 1943-46

The Federal Power Commission's plan

referred to in Mr. Krug's press confer-

ence was submitted to President Roose-

velt July 16. Some 180 steam-electric

and hydroelectric projects throughout

the country, listed by location, capacity

to be installed and year to be completed,

were proposed to provide adequate power

for defense in 1943, 1944, 1945, and 1946.

The Commission summarized its plan

as follows:

1. Orders should be prepared for steam

and hydro turbine generators sufficient

to assure for the next 5 years continu-

ous capacity operation of the portion of

the electrical equipment factories re-

served for manufacture of commercial

generator units. Financial commitmentshould be made immediately for units

to be completed in 1943 or 1944.

Subject to OPM needs

2. The resulting annual production of

approximately 2,500.000 kilowatts of newsteam and 1,000,000 kilowatts of newhydro generating station units will makepossible orderly priority arrangements.

It will assure power supply for the max-imum defense effort as presently con-

ceived, assuming approximately 30 per-

cent displacement of normal loads.

3. The orders should be based on the

Commission's detailed program for the

location of new capacity, subject to mod-ifications dictated by the Office of Pro-duction Management's program of de-

fense production.

Fnancial responsibility on RFC4. Responsibility for the placing and

financing of these orders should be as-

sumed by the Government through asubsidiary financed by the Reconstruc-tion Finance Corporation, acting uponrecommendation of the Federal PowerCommission. Utilities, whether publicly

or privately owned, should be given anopportunity to undertake the commit-ment, either directly or on a lease pur-

chase basis, for any unit or units whichwill be provided for their respective sys-

tems. The Commission should be au-thorized to supervise the plan and to

make such arrangements for transfer of

generating units to the systems as the

situation may require.

5. The United States Corps of Engi-

neers, the Bureau of Reclamation, the

Tennessee Valley Authority and suchother agencies as are concerned should

construct a series of river basin projects,

calling for installation of approximately

1,000,000 kilowatts a year, in accordance

with the program and schedule prepared

by the Federal Power Commission on the

basis of the regional needs of the defense

program.

12 • DEFENSE • July 29, 1941

PRICES AND CIVILIAN SUPPLIES . . .

Fair rent committees formed in 21 cities;

OPACS urges quick action to head off rise

Organization of fair rent committees

in 21 municipalities in 10 States wasannounced July 23 by the rent section

of the Office of Price Administration

and Civilian Supply as part of a cam-paign to stabilize rents in defense areas

throughout the country.

The committees, headed by outstand-

ing citizens of the communities, give full

representation to all sides of the rent

question. Their formation in every de-

fense area where exorbitant increases in

rents have accompanied housing short-

ages is encouraged and guided by the

OPACS rent section, both by printed

instructions as to procedure and by afield staff prepared to render first-hand

assistance within the areas themselves.

Leadership in the campaign thus far

has been taken by citizens in Wilming-ton, N. C; South Bend, Ind.; San Diego,

Calif.; Newport News, Norfolk, Ports-

mouth, Hampton, and Virginia Beach,Va.; Ravenna and Warren, Ohio; Pon-tiac, Mich.; Alexandria, La.; Columbus,Ga.; Mobile, Sylacauga, and Talladega,

Ala.; and Hartford, New London, Gro-ton, Waterbury, and Bristol, Conn. Ad-ditional fair rent committees are beingorganized in other defense areas.

Quick action urged to head off rise

Surveys now being conducted by Fed-eral research agencies at request of theOPACS rent section and thousands of

letters of complaint show that rapid

rises in rents are under way in morethan 100 defense areas. Quick actionto head off this trend is urged by theOPACS rent section. Designation of

fair rent committees, ably led, guidedby OPACS and backed by the full force

of public opinion and the local press is

one method by which local authorities

can curb rent profiteering.

OPACS recommends that fair rentcommittees be independent bodies, ap-pointed by the mayor, some other re-sponsible municipal authority or thechairman of a local defense council.

Membership should be confined to citi-

zens having the confidence of all groupsin the community.

Consultants such as the local sanitary

officer or building inspector, or both, thelocal welfare authorities, and a repre-

sentative of the homes registration

office of the Division of Defense HousingCoordination where such offices operate,

should be available to the committees.

Municipal authorities and local branches

of Governmental agencies (National

Youth Administration, Work Projects

Administration, etc.) are providing

clerical and technical assistance.

Should determine "fair rent date"

Upon its organization, a fair rent

committee should determine a "fair rent

date," that is, a. date on which local

rents had not yet been affected seriously

by defense activities. Tenants, room-ers, and lodgers then should be invited

to file specific complaints against in-

creases with the committee. Given evi-

dence of profiteering, the committeeshould summon the landlord and com-plainant to appear for a hearing of thecase. The committee's decision shouldbe communicated to the landlord andthe latter asked to state his position.

In event of compliance, no further ac-

tion will be necessary, but if the landlord

rejects the committee's conclusions, full

publicity may be given to all facts in thecase.

By agreement with OPACS, the Divi-

sion of Defense Housing Coordinationwill refrain from registering at its homesregistration offices any dwelling unit orroom the rent for which has been de-clared unfair by a fair rent committee.

Should keep press informed

Headquarters, accessible to tenants

and landlords, are an important operat-ing feature. The local press should bekept completely informed on complaintsand actions.

Commenting on the fair rent program,OPACS Administrator Henderson stated:

"The importance of rent stabilization

to the national defense program hasbeen recognized by President Rooseveltin his Executive order establishing the

Office of Price Administration and Civil-

ian Supply. Pressure for effective action

has been increasing as the defense pro-

gram progresses.

Rent profiteering a serious offense

"Profiteering in rents in the present

state of unlimited national emergency is

a serious offense against the Nation's

welfare. By placing an unwarranted

and distressing burden upon defense

workers, families of enlisted men, civilian

personnel of military establishments andcivilian residents of defense areas, the

profiteering landlord not only adds to

family costs of living, but contributes to

price inflation. This is a catastrophe

that every thoughtful American agrees

must be averted by whatever means maybe required."

Organizing bulletins offered

The OPACS rent section and its field

staffs emphasize their readiness to give

immediate attention and support to citi-

zens in defense areas anxious to organize

fair rent committees. Two bulletins

outlining organization procedure andcontaining detailed operating outlines

are available upon request at OPACS'offices in Washington, D. C.

• * *

Materials allocated for bimetal

temperature control devices

Adequate supplies of the variety of

metals needed for the manufacture of

thermostatic bimetal, used in tempera-

ture control devices, was assured July

22 through a limited allocation programanounced by the Civilian Supply Alloca-

tion Division of OPACS.Temperature control devices are es-

sential to the manufacturing processes

of many industries and have numerouscivilian uses, such as for some types of

thermostats in home-heating plants.

Ten metals affected

The program directs that the follow-

ing metals in the quantities stated be

allocated monthly to manufacturers of

thermostatic bimetal and that, wherenecessary, the highest civilian preference

rating be assigned to such orders:

Nickel, 14.4 short tons; iron, 43.8 short

tons; silicon bronze, 9.6 short tons;

muntz metal. 2.7 short tons; chromium,1,320 pounds; manganese, 600 pounds;

aluminum, 75 pounds; cobalt, 75 pounds;

copper, 300 pounds; and zinc, 210 pounds.

The program, unless sooner ter-

minated, will expire October 19, 1941,

and will be administered by the Office of

Production Management.

July 29, 1941 • DEFENSE • 13

Henderson urges bakers to reduce

operating costs rather than raise prices

Recommendation that bakers offset

higher ingredient costs by reducing op-

erating expenses, rather than by raising

the price of bread, was made in a letter

sent July 21 to over 250 leading bakers

by OPACS Administrator Henderson.

By reducing the percentage of stale

returns, using less expensive wrappers

and cutting selling expenses, the letter

said, costs of operation can be lowered

in many instances. In addition, ex-

panding purchasing power of consumers

should act to increase sales of bread and,

hence, make for lower unit costs.

Ingredients up one-half cent a loaf

Ingredient costs to bakers have risen

roughly about one-half cent per poundloaf, according to information gathered

by OPACS. In large part, this reflects

increased flour costs resulting from leg-

islation recently enacted by Congressproviding for mandatory price-support-

ing loans to cooperating farmers equal

to an average of 98 cents per bushel onwheat, compared with last year's loan

rate of 64 cents. Higher labor costs In

some localities have added further to

bakers' operating expenses.

Recognizes local difficulties

There are a few localities where higher

costs cannot be absorbed by operating

economies, the letter recognizes, and for

that reason bakers who find themselves

in such situations are no longer being

requested to consult with OPACS before

making price adjustments.

"However," Mr. Henderson said, "since

average ingredient costs have risen only

about half a cent a loaf, fractional in-

creases in the selling price would be

more in line with cost changes thanwould increases of a full cent. In nolocality does it appear that an in-

crease of more than one cent would be

warranted."

OPACS will continue its efforts to pre-

vent unnecessary increases in bread

prices and believes these efforts will be

successful with the continued coopera-

tion of the baking industry.

Materials for scientific apparatus and

hearing-aids allocated to manufacturers

Makers of scientific apparatus and de-

vices to aid hearing were assured supplies

of essential manufacturing materials in

preference over other civilian require-

ments through allocation programs pro-

mulgated July 24 by the Civilian Supply

Allocation Division, OPACS.In addition to its importance to the de-

fense effort, scientific apparatus, such as

optical, precision, testing and control

instruments, is necessary to the mainte-

nance of efficiency in civilian industry, as

well as to civilian morale.

Defense priorities have impeded flow

In many cases, it is impossible to dif-

ferentiate between the application of

such apparatus to the defense programand to civilian pursuits. Increasingly

heavy demands from all sources and pri-

orities granted to satisfy defense require-

ments have acted to hinder the flow of

needed materials to plants making scien-

tific apparatus. The allocation programis designed to correct this situation.

A similar difficulty 'n obtaining sup-

plies is cited in the program to assist the

manufacturers of devices to aid hearing.

Without this program, which covers ma-

terials needed to make, maintain, andrepair hearing-aid equipment, the con-

tinued functioning of an industry essen-

tial to industrial efficiency and civilian

morale may become impossible.

Both programs will be administered

by the Priorities Division, OPM.

* • •

Dr. Joel Dean added

to Price staff

Dr. Joel Dean, assistant professor In

the school of business at the University

of Chicago, was appointed last weekprice executive in charge of industrial

machinery, Price Division, OPACS.Dr. Dean is an industrial engineer and

was formerly connected with McKinsey-Wellington & Co., an industrial engineer-

ing concern.

Appointment of Albert A. Thorn-brough was also announced.

Mr. Thornbrough will specialize in the

field of agricultural machinery andequipment in the heavy machinery sec-

tion under Dr. Dean.

Farm machinery given

highest civilian preference

A civilian allocation program providing

that manufacturers of farm machineryand equipment be given the "highest

civilian preference rating" for materials

to be delivered during August, Septem-ber, and October, was issued July 23 byOPACS Administrator Henderson.

Material shortages, principally in steel

farm machinery, already are threatening

the current rate of production of certain

types of farm equipment, according to in-

formation developed at a meeting July

24 between representatives of leading

farm implement manufacturers and the

OPACS Civilian Allocation Division.

Initial approach to solution of this

problem has been made by OPACS thru

the allocation program.

The program is designed to insure an

adequate supply of raw materials for

manufacture of farm machinery needed

for maintenance of the Nation's food

supply and to avoid working a hardship

on the country's farmers.

The program, which is to be adminis-

tered by the Priorities Division of OPM,provides that the quantity of materials

to be delivered for the manufacture of

farm machinery during the next 3

months shall not amount to more than

20 percent above the quantity used in

such manufacture during the corre-

sponding 3 months of 1939 or 1940,

whichever was higher. The program also

provides that the preferences granted

shall not be* used to accumulate inven-

tories.

Furthermore, manufacturers are re-

quired to conserve critical materials and

to plan production schedules in accord-

ance with the national need for different

kinds of farm equipment. The programprovides that manufacturers, in submit-

ting requests for priority ratings, must

attach statements of how they intend to

comply with the conservation and pro-

duction scheduling requirements.

Because the situation in raw materials

is likely to deteriorate further, rather

than improve over the next 3 months,

farm implement makers were urged by

OPACS to make every effort to stimulate

the maintenance and repair of existing

equipment and to employ substitutes in

their manufacturing processes wherever

possible.

During the 3 months covered by the

allocation program, OPACS, with the

assistance of the industry and the De-

partment of Agriculture, will undertake

a survey of the situation.

14 • DEFENSE • July 29, 1941

Brass mill scrap placed under ceiling;

premiums allowed on lot shipments

Ceiling prices were put into effect on

the principal kinds of brass mill scrap

in Price Schedule No. 12, issued July 22

by OPACS Administrator Henderson.

Top prices which may be charged

under the new schedule for heavy scrap

range from 9'/2 cents per pound for com-

mercial bronze containing 95 percent or

more copper to 8% cents per pound for

yellow brass. Rod ends and turnings

scale downward from the heavy scrap

ceiling prices.

Premiums for lot shipments

A premium of % cent per pound is

allowed for a lot shipment of 15,000

pounds or more at one time. If a lot

shipment of 40,000 pounds or more is

made at one time a premium of one full

cent per pound is permitted.

All ceiling prices contained in the

schedule are f. o. b. point of shipmentand apply to clean and dry scrap, free

from foreign materials and meeting the

generally accepted maximum standards

in the trade.

Provisions for quantity differentials

In reference to quantity differentials,

the schedule stipulates that a lot of

15,000 pounds may be made up of anykind or grade of heavy scrap or of anykind or grade of turnings and rod ends,

but heavy scrap may not be mixed either

with turnings or rod ends, .or both, to

make up such a lot. The 40,000-poundlots may be comprised of any kind or

grade of brass mill scrap. These pro-

visions were made to protect the small

independent brass mill which can use

only heavy brass mill scrap, and at the

same time are designed to facilitate the

quick flow of scrap which might be hin-

dered if 40,000-pound lots of heavy brass

mill scrap alone or of turnings and rod

ends alone had to be assembled in order

to earn the 1-cent premium.If quantity shipments are made by

truck, according to the schedule, the

quantity required to entitle the seller

to a premium will be considered to havebeen shipped "at one time" if the entire

lot is delivered to the buyer within twodays after the first shipment in the lot

is picked up by truck.

The premiums will compensate dealers

for sorting and accumulating scrap until

15,000- or 40,000-pound lots are assem-bled. However, any maker or seller of

scrap is entitled to similar quantity

premiums. The base maximum prices

stipulated in the schedule, of course, ap-ply to all sellers of scrap, makers or

dealers.

Dealers protected on commitments

New ceiling prices are effective as of

July 22, 1841, regardless of pre-existing

contracts. However, if necessary to pro-

tect the dealer against loss on the sale

of brass mill scrap already acquired at

prices above the new ceilings, OPACSwill grant permission to conclude suchcontracts entered into prior to July 22,

1941.

Application for such permission shouldbe made on forms available at the Office

of Price Administration and Civilian

Supply, Washington, D. C.

West Coast calfskins to be

given special price ceiling

Marketing practices of suppliers anddealers in Pacific Coast calfskins will berecognized in special ceiling prices ap-plicable to calfskins originating in that

area, OPACS Administrator Hendersonannounced July 22.

A definite supplement to Price Sched-ule No. 9 (hides, kips and calfskins) will

follow conferences with buyers andsellers of Pacific Coast skins. In themeanwhile, the following maximumprices will apply to Pacific Coast calf-

skins (all f. o. b. shipping points)

:

Pacific Coast (13 to 15 pounds) 23V2cents per pound; Pacific Coast (6 to 13

pounds) 26 cents per pound; Pacific

Coast (less than 6 pounds) $1.25 perskin.

These maximum prices make due al-

lowance for freight charges from theWest Coast and the special short trimused on calfskins taken off in that area.

Pending final adjustment of the sched-ule, compliance with the maximumprices set forth above will be treated byOPACS as compliance with Price Sched-ule No. 9. The term Pacific Coast calf-

skins refers to skins weighing 15 poundsor less and trimmed short in accordancewith established practice on the WestCoast. Kips and calfskins originating

in the Pacific Coast area, but not short

trimmed, must conform to the price

maximums established in the schedulefor packer kips and Chicago city calf-

skins, respectively.

Redesigned containers

save shipping space

The Department of Agriculture has

found that large savings in valuable

cargo space on British-aid shipments canfrequently be effected through the scien-

tific design of boxes, crates, and other

shipping containers.

Secretary of Agriculture W i c k a r d

pointed out that the Forest Products

Laboratory of the U. S. Forest Service

has had many years' experience in the

scientific decign of both wood and fiber

containers and is now helping in manyways in the design of containers for warcommodities.

He cited an example of a wooden con-

tainer for the shipment of 200-poundairplane bombs, which was recently re-

designed by the Laboratory. The rede-

signed container employs a lower priced

wood, requires less cargo space and less

lumber, weighs less, yet has greater

strength than the original container.

During the last war, the Forest Prod-

ucts Laboratory had a large unit working

on container design with representatives

attached to the office of the General Staff

and also some inspectors at the New Yorkshipping docks. Repeatedly containers

for shells, rifles, and other articles were

redesigned with savings in space.

• • •

Alumina from alunite reported

feasible by new process

Aluminum needed for defense can be

obtained in quantity in the United States

from domestic alunite deposits by a feas-

ible process, partly freeing American pro-

duction from present dependence on for-

eign bauxite supplies and limited native

bauxite, the Bureau of Mines has advised

Secretary of the Interior Ickes.

In a special report to the Secretary,

the Bureau indicated that clays, as well

as alunite, may possibly be utilized to

produce alumina for the production of

aluminum metal.

As a result of a study of confidential

data made available to the Bureau by aprivate research laboratory, metallurgists

of the Bureau have come to the conclu-

sion that the alumina from alunite ores

can be used to produce an aluminummetal equal in grade to that turned out

by present standard processes. Analysis

of cost data, Secretary Ickes was advised,

indicates that alumina from alunite canbe produced at a price that will permit it

to compete with alumina from bauxite.

July 29, 1941 • DEFENSE • 15

Cotton Textiles

The unusual phenomenon of a decrease

in the price of a finished product follow-

ing an upward revision in a wholesale

price ceiling was observed by OPACStextile officials last week.

Although a price reduction in finished

fabrics was not general following the

order of OPACS Administrator Hender-

son for an increase in the cotton grey

goods and combed cotton yarn ceilings,

the instance of a reduction of V2<t in a

percale quotation of one company was

considered. The revised ceilings fix

prices at the level prevailing during the

last week in May.

OPACS price executives point out that

the new level, while higher than the old.

is still considerably lower than the level

that prevailed during June, prior to the

establishment of the first grey goods

ceiling on June 28. They, therefore, see

no reason for price advances in consumer

goods as a result of the order itself.

There may be some increases in fin-

ished fabrics that have not yet reflected

the advance in wholesale prices during

May, but in general, OPACS officials

expect no sizeable price increases in the

summer and fall lines of consumer goods.

Power Conservation

Local power shortages arising from

heavy demands on electricity in some de-

fense areas are now expected by OPMofficials. In view of the important part

that they may be expected to play in

voluntary power conservation programs,

retailers may be interested in the oper-

ation of a recent campaign in the South-

eastern States.

Paced by unprecedentedly large elec-

tricity requirements necessary to keep

aluminum plants continually operating

at capacity, and drought limitation of

power available, power authorities

worked out a plan of cooperative reduc-

tion of nondefense consumption.

Joined in the program were the Ten-

nessee Valley Authority, major private

utility systems of the South, municipali-

ties, local business groups, and house-

holders. Although in effect only a short

time, the conservation program met with

widespread popular response.

Merchants were requested to cut their

use of electricity 25 percent through the

reduction in use of advertising signs,

window display lights, air-conditioning

systems, and purely decorative lighting in

nickel phonographs and similar devices.

Daytime use of window display lighting

was discontinued, and a slight rise in tem-perature for air-conditioned establish-

ments was suggested. Instead of the

usual "15° cooler,".merchants were asked

to lower the controls to 8° below the

outside temperature.

Electrical appliance dealers were cir-

cularized with appeals to suspend pro-

motional activities on new sales. Butsales of major appliances for replacement

use were not discouraged in cases wherethe new models would be more efficient

than the old. It was said that manynew refrigerators used only 50 percent

of the electricity of an obsolete model,

while efficient new ranges used only anestimated 70 percent of the powerrequired by an old stove.

Officials suggested the featuring of

fluorescent lamps for interior lighting,

stressing the economy of this type over

conventional lighting methods. Low-wattage bulbs for night lights were also

recommended.Service and repair men, it was pointed

out, could be kept busy on conservation

jobs, repairing refrigerators, resetting

thermostats, fixing leaky hot water

faucets. Many customers were reported

asking where such services could be ob-

tained. By providing them, officials sug-

gested, the dealers would be able to

obtain sales leads for use after the emer-gency.

Officials outlined the possibility of

using the conservation appeals in their

advertising as a means of creating good-

will for individual establishments.

Retail merchants associations in manycities of the region added individual

touches of their own to the program.

The retailers association of Knoxville,

Tenn., carried out a plan for cutting off

window lights at 8 p. m. Interior light-

ing was slated for a 25-percent reduction.

Outdoor signs suffered a complete black-

out, and air-conditioning was shut off

between 11 and 12:30, during the mid-

day peak of electric range use.

In Macon, Miss., merchants closed

their stores on Saturday night at 9 p. m.instead of midnight. All filling stations

in Aberdeen, Miss.', closed at 8 p. m.Many restaurants featured a "candle-

light" supper as a contribution to the

campaign.

As the result of the rapid adoption of

daylight saving in the area, and unusu-ally heavy July rains that added water to

storage reservoirs, the more drastic

"black-out" provisions of the programwere proclaimed at an end on July 19.

In view of the possibility of a future

shortage later in the year, however,officials urged the continuing need for

thrift in use of electricity.

By the means of long-range planning,

speeding up of generator production andinstallation, building of dams andsteam plants, and widespread electric

grid systems that transfer power fromone region to another, the new OPMpower unit is seeking to avoid serious

shortages.

OPM officials point out. however, that

such programs take time. Defense mate-rials requiring the heaviest use of powerare aluminum and magnesium, the in-

dispensable metals for airplane con-

struction. Plants to make these twometals can be built faster than the gen-

erators and dams required to supply

them with power.

Where shortages do occur, retailers

will probably find many of the methodsdeveloped in the voluntary conservation

program of the South applicable to their

own areas, and more desirable than the

alternative of compulsory rationing.

Retail Bread Prices

Advancing ingredient costs need not

raise retail bread prices nationally ac-

cording to OPACS food price executives.

A general increase in ingredient costs

to the baker of about one-half cent per

pound loaf was recognized in a recent

letter from Mr. Henderson's office to

over 250 leading bakers. Local cost

factors make this increase more in someplaces and less in others. However,

bakers were asked to meet this cost

rise, where possible, through operating

economies rather than by increasing the

price to the retailer.

Where only fractional increases in

wholesale prices are made, it is expected

that the retailer, in many instances, can

absorb the increase rather than pass it

on to the consumer in the form of a full

cent increase. Particularly should this

be possible in those localities where the

two cent mark-up prevails, and an in-

creased volume of sales has resulted

from the defense program.

Since it was made clear in Mr. Hen-derson's letter that a one cent increase

in wholesale price was the maximumwarranted by cost increases, it follows

that in no case should the increase in the

retail mark-up be more than one cent,

OPACS officials point out.

16 • DEFENSE • July 29, 1941

PURCHASES . .

.

$421,020,037 War Department contracts

cleared July 17 through July 23

Defense contracts totaling $421,020,037

were awarded by the War Departmentand cleared by the Division of Purchases,

Office of Production Management, dur-ing the period July 17 through July 23.

This compares with $143,044,916 for the

previous week.

Contracts for construction amountedto $53,783,900; equipment and supplies

$131,934,536; and ordnance $235,301,601.

The Maritime Commission did not re-

port any contracts.

Contracts awarded during the period

were:

EQUIPMENT AND SUPPLIES

Ford Motor Co., Dearborn, Mich,; l'/2 -tontrucks; $1,169,598.

International Harvester Co., Fort Wayne,Ind.; 2>/2 -ton trucks; $698,048.

Curtiss-Wright Corporation, Curtiss Pro-peller Division, Caldwell, N. J.; propeller as-semblies; $631,672.

Curtiss-Wright Corporation, Curtiss Pro-peller Division, Caldwell, N. J.; governor as-semblies; $563,148.Chandler-Evans Corporation. South Meri-

den, Conn.; fuel pumps; $921,500.Kelsey-Hayes Wheel Co., Detroit, Mich.;

oxygen cylinders, $531,319.Republic Aviation Corporation, Farming-

dale, Long Island, N. Y.; maintenance parts;$781,946.Lord Manufacturing Co., Erie, Pa.; main-

tenance parts; $695,599.Wright Aeronautical Corporation, Pater-

son, N. J.; parts for engines; $4,338,093.Sperry Gyroscope Co.. Inc.. Brooklyn, N. Y.;

maintenance parts; $526,231.United Aircraft Corporation. Pratt &

Whitney Aircraft Division. East Hartford,Conn.; maintenance parts; $1,445,769.North American Aviation. Inc., Inglewood,

Calif.; maintenance parts; $1,360,505.Consolidated Aircraft Corporation, San

Diego, Calif.; maintenance parts; $568,087.Vultee Aircraft, Inc., Vultee Field, Calif.;

maintenance parts; $1,374,115.Hood Rubber Co.. Inc., Watertown, Mass.;

flying shoes; $312,487.Converse Rubber Co., Maiden, Mass.; flying

shoes; $141,410.Arnoff Shoe Co., Inc., New York, N. Y.; flying

shoes; $325,500.Independent Engineering Co., O'Fallon,

111.; portable generators; $618,000.The Electric Storage Battery Co., Phila-

delphia, Pa.; batteries; $388,342.Wright Aeronautical Corporation, Paterson,

N. J.; tools: $838,648.

Boeing Aircraft Co., Seattle, Wash.; mainte-nance parts; $2,872,680.The Glenn L. Martin Co., Baltimore, Md.;

spare parts; $3,666,020.The Glenn L. Martin Co., Baltimore, Md.;

turret assemblies; $540,887.Federal Motor Truck Co., Detroit, Mich.;

trucks; $824,670.

Consolidated Aircraft Corporation, SanDiego, Calif.; spare parts; $4,003,941.

Continental Motors Corporation, Muskegon,Mich.; engines; $3,921,652.

General Motors Corporation, Detroit, Mich.;diesel engines; $1,137,800.

Guiberson Diesel Engine Co., Dallas, Tex.;engines; $1,049,656.Ward La France Truck Corporation. El-

mira, N. Y.; heavy wrecking trucks; $1,658,520.Chandler-Hill Corporation, Detroit, Mich.;

fuel pumps; $535,750.Standard Steel Works, North Kansas City,

Mo.; semitank trailers and dollies; $965,448.Douglas Aircraft Co., Inc., Santa Monica,

Calif.; spare parts; $1,524,863.Harrisburg Steel Corporation, Harrisburg,

Pa.; gas cylinders: $946,500.Thompson Products, Inc., Cleveland, Ohio;

fuel pumps; $861,000.Rolls-Royce, Inc., Detroit, Mich.; ball and

roller bearings; $772,288.Sperry Gyroscope Co., Inc.. Brooklyn, N. Y.;

spare parts for automatic pilots; $711,965.Lockheed Aircraft Corporation, Burbank,

Calif.; spare parts; $694,477.Standard Oil Co. of California, San Fran-

cisco, Calif.; fuel; $1,142,130.Socony Vacuum Oil Co., Inc., New York,

N. Y.; fuel; $588,437.Shell Oil Co., Inc., San Francisco, Calif.;

fuel; $70,000.Standard Oil Co.. Inc., in Kentucky, Louis-

ville. Ky.; fuel; $324,000.Phillips Petroleum Co., Bartlesvllle, Okla.;

fuel; $155,580.Aviation Manufacturing Corporation, Ly-

coming Division, Williamsport, Pa.; aircraftengines: $1,048,453.

Bendix Aviation Corporation, Eclipse Avia-tion Division; supercharger regulator assem-blies; $928,329.

Spriesch Tool and Mfg Co., Inc., Buffalo,N. Y.; shackle assemblies; $372,100.Guiberson Diesel Engine Co., Chicago, HI.;

engines; $4,264,515.Kilgore Mfg. Co., International Flare-Signal

Division, Tipp City, Ohio; aircraft signals;$1,422,824.

Aviation Manufacturing Corporation, Ly-coming Division, Williamsport, Pa.; aeronau-tical engines; $16,945,430.

Clark Tructractor, Division of Clark Equip-ment Co., Battle Creek, Mich.; tractors andspare parts; $1,568,116.

Jack and Heintz, Inc., Cleveland, Ohio; air-plane starter assemblies; $1,925,000.American Woolen Co., New York, N. Y.;

wool lining cloth; $2,496,000.Wilton Woolen Co., Wilton, Maine; wool

lining cloth; $664,875.Hayward-Schuster Co., East Douglas, Mass.;

wool lining cloth; $592,275.Wool lining cloth; contracts awarded to

four companies; $864,325.Forstmann Woolen Co., Passaic, N. J.; doe-

skin cloth; $1,037,500.American Woolen Co., New York, N. Y.;

melton overcoating cloth: 08,302,500.Melton overcoating cloth; contracts

awarded to three companies; $311,275.American Woolen Co., New York, N. Y.;

o. d. wool suiting for combat Jacket lining;$1,032,480.Guerin Mills, Inc., Woonsocket, R. I.; serge

cloth; $876,000.Metcalf Bros. & Co., New York, N. Y.; serge

cloth; $1,140,000.Lorraine Mfg. Co., Pawtucket, R. I.; serge

cloth; $813,125.Gera Mills, New Jersey Worsted Mills, Gar-

field. N. J.; serge cloth; $995,000.Botany Worsted Mills, Passaic, N. J.; serge

cloth; $2,832,200.American Woolen Co., New York, N. Y.;

serge cloth; $1,960,000.Wm. Whitman Co., Inc., Boston, Mass.;

serge cloth; $1,359,500.

Serge cloth for coats; contracts awardedto seven companies; $1,387,099.Samuel Hird & Sons, Inc., Garfield, N. J.;

serge cloth for trousers; $582,000.American Woolen Co., New York, N. Y.;

serge cloth for trousers; $3,780,000.Southern Worsted Corporation, Boston,

Mass.; serge cloth for trousers; $544,000.Serge cloth for trousers; contracts awarded

to four companies; $720,750.Wool knitted lining cloth; contracts

awarded to nine companies; $542,423.J. P. Stevens Co., New York, N. Y.; elastique

cloth for flying cadet coats; $608,600.Elastique cloth for flying cadet coats; con-

tracts awarded to two companies; $489,500.Lorraine Mfg. Co., Pawtucket, R. I.; flannel

6hirting; $509,400.American Woolen Co., New York, N. Y.;

flannel shirting; $3,062,500.Pacific Mills, Philadelphia, Pa.; flannel

shirting; $839,000.Wm. Whitman Co., Inc., Boston, Mass.;

flannel shirting; $1,293,000.J. P. Stevens Co., New York, N. Y.; flannel

shirting; $750,060.Botany Worsted Mills, Passaic, N. J.; flannel

shirting; $1,570,500.Flannel shirting; contracts awarded to

four companies; $704,509.Serge cloth for flying cadet shirts; con-

tracts awarded to four companies; $732,190.Wyandott Worsted Co., Waterville, Maine;

o. d. wool blankets; $835,000.American Woolen Co.. New York, N. Y.;

o. d. wool blankets; $3,005,000.J. P. Stevens & Co., Lowell, Mass.; o. d.

wool blankets; $668,500.Chatham Mfg. Co., Elkin, N. C; o. d. wool

blankets; $1,670,000.Peerless Woolen Mills, Rossville, Ga.; o. d.

wool blankets; $1,627,500.O. D. wool blankets; contracts awarded to

11 companies; $2,152,253.International Harvester Co., Chicago, 111.;

tractors; $2,126,899.Cheney Brothers; Manchester, Conn.; para-

chute silk; $733,750.

CONSTRUCTION

Geo. A. Fuller Co., Los Angeles, Calif.; con-struction of cantonment housing, includingutilities thereto except sewage disposal andtreatment system at Camp Lockett, Campo,Calif.; $1,227,700.James T. Taylor, Fort Worth, Tex.; con-

struction of miscellaneous buildings with en-closed walks and open covered walks at CampBarkeley. Tex.; $992,000.

J. E. Morgan and Sons, El Paso, Tex.; con-struction of post headquarters, motor repairshops, grease and inspection racks, oil

houses and wash racks at Fort Bliss, Tex.;$651,325.Frank Briscoe Co., Inc., Newark, N. J.; con-

struction of rounding out facilities at Pica-tinny Arsenal, N. J.; $508,140.Manhattan Construction Co., Muskogee,

Okla.; construction of material warehousesand toilet buildings, at Savanna OrdnanceDepot, 111.; $968,300.

H. B. Kilstofte, San Antonio, Tex.; con-struction of warehouses for San AntonioArsenal, Tex.; $539,900.

P. O'B. Montgomery, Dallas. Tex.; comple-tion of reception center at Camp Wolters,Tex.; $532,000.Two contractors: R. F. Ball Construction

Co. of Fort Worth and Central ContractingCo. of Dallas, Tex.; construction of Air Corpsbasic flying school at Sherman-Denison, Tex.;$3,087,681.

Gifford-Hlll & Co., Dallas, Tex,; additionalconstruction at basic flying school at Sher-man-Denison, Tex.; $1,981,405.Two contractors: Henderson, Black &

Greenmill Co., Troy, Air... p.nd SoutheasternConstruction Co., Ozark. Ala.; construction

July 29, 1941 • DEFENSE • 17

of advanced flying school, Dothan, Ala.; $3,-

472,295.Three contractors: Boyle Construction Co.,

Sumter, S C. the J. C. Heslep Co., Columbia,S. C. and Dawson Engineering Co. of Charles-ton. S. C; construction of basic flying schoolnear Sumter. S. C: $2,834,000.Two contractors: Nelson Brothers and

L. W. Eaton. Baton Rouge, La.; constructionof housing for Twenty-second ObservationSquadron at DeRidder. La.: $1,190,173.

Charles H. Tompkins Co., Washington.D. C: construction of Engineer ReproductionPlant designed by Porter & Lockie of Wash-ington. D. O.J at Dalecarlia Reservoir, D. C;$1,019,500.Two contractors: Paul Smith Construction

Co. of Tampa and C. C. Moore ConstructionCo., Inc., of Panama City; additional con-struction at Flexible Gunnery School. PanamaCity. Fla.: architects and engineers, South-ern Engineering and Architectural Co., Jack-sonville,' Fla.; $847,503. (Estimated cost of

project to date $3,917,920.)Ford. Bacon & Davis. Inc., New York, N. Y.;

construction of Arkansas Ordnance Plant,Jacksonville, Ark.; $21,297,768.

Bates & Rodgers Construction Co., Chicago,HI.; additional construction at KingsburyOrdnance Plant. La Porte. Ind.: architectsand engineers. Glffels & Valet of Detroit, Mich.,and Charles W. Cole, South Bend, Ind.;

$3,690,617. (Total estimated cost of plant todate $15,267,947.)M. T. Reed Construction Co., Belzoni, Miss.;

construction of basic flying school, Greenville,Miss.; $1,768,000. (Estimated eventual costwhen funds are available $4,400,680.)Two contractors: Al Johnson Construction

Co. and James Leek Co.. Minneapolis, Minn.:construction of warehouses, closed sheds, andutilities at General Depot, Utah; $992,950.

Bressi and Bevanda Constructors, Los An-geles, Calif.; construction of aprons, runways,taxiways, etc., at Mesa Military Airport,Higley, Ariz., and Victorvllle Military Airport,Calif.: $1,317,245.James I. Barnes Construction Co., Santa

Monica, Calif.; construction of fourteenwarehouse units and appurtenant facilities,

McClellan Field, Sacramento, Calif.; $782,000.A. G. Raisch, San Francisco, Calif.; con-

struction of runway paving, including metalpipe underdrains, manholes, catch basins,etc., Hamilton Field. Calif.; $513,131.

J. E. Haddock. Ltd., Pasadena, Calif.; con-struction of landing strip, runways, taxi-ways, and appurtenant facilities, Bakersfleld,Calif.; $531,895.

J. E. Haddock, Ltd., Pasadena, Calif.; con-struction of landing strip, paved runways,paved taxiways, etc., Taft Field, Taft, Calif.;

$526,174.

Two contractors: Matich Bros, and E. L.Yaeger, Riverside, Calif.; construction ofapron, runways, taxiways, and appurtenantfacilities, March Field, Riverside, Calif.;

$982,220.

O'Driscoll & Grove, Inc., New York, N. Y.;

construction of six radio buildings, ScottField, Belleville, 111.; $990,000.

Skilken Brothers, Columbus, Ohio; con-struction of standard closed sheds at Colum-bus General Depot, Ohio; $539,978.

ORDNANCENational Stamping Co.. Detroit, Mich.;

metallic belt links; $1,628,625.Edgemoor Iron Works, Inc., Edgemoor, Del.;

shells; $1,580,000.Cleveland Container Co., Cleveland, Ohio;

ammunition carriers; $633,500.Chisholm-Ryder Co.. Niagara Falls, N. Y.;

ammunition boxes; $768,750.Scullin Steel Co., St. Louis. Mo.; bomb

materiel; $1,485,000.

Republic Steel Corporation, Cleveland,Ohio; armor plate; $5,423,000.

Southern States Equipment Corporation,Birmingham, Ala.; boosters: $561,370.

Faultless Caster Corporation, Evansvllle,

Ind.; fuzes; $552,500.

General Motors Corporation, Delco ProductsDivision Dayton, Ohio; shells; $924,260.Grapho Products, Inc., Indianapolis, Ind.:

shells; $947,200.Indianapolis Drop Forging Co., Indianap-

olis, Ind.; shot: $1,800,500.Schwitzer-Cummins Co., Indianapolis, Ind.;

cartridge cases; $526,320.Servel, Inc., Evansvllle, Ind.; cartridge

cases: $561,600.Electric Vacuum Cleaner Co., Cleveland,

Ohio; fuzes; $1,438,500.Globe Machine & Stumping Co., Cleveland,

Ohio; cartridge cases; $1,137,500.Hoover Co., North Canton, Ohio; fuzes;

$1,086,400.Mulllns Mfg. Co., Warren, Ohio; cartridge

cases; $2,311,944.Chase Brass & Copper Co., Waterbury,

Conn.; cartridge cases; $1,484,625.Sargent & Co., New Haven, Conn.; fuzes;

$2,319,660.Scovill Mfg. Co., Waterbury, Conn.; car-

tridge cases and boosters; $8,048,442.Standard Container Corporation, Bloonv-

fleld, N. J.; fiber containers; $1,822,814,E. G. Budd Mfg. Co., Philadelphia. Pa.;

shells; $1,507,872.Edgemoor Iron Works, Inc., Edgemoor,

Del.; shells; $5,451,000.Hercules Powder Co., Wilmington, Del.;

powder, $2,073,438.Kramer Trenton Co., Trenton, N. J.; car-

tridge cases; $595,720.Aircraft, Inc., Santa Monica, Calif.; shells;

$730,800.Norris Stamping & Mfg. Co.. Los Angeles,

Calif.; cartridge cases; $1,935,200.Byron Jackson Co., Los Angeles, Calif.; re-

coil mechanisms; $1,395,000.Gilbert & Barker Mfg. Co., West Spring-

field, Mass.; water Jackets; $523,792.Hannifin Mfg. Co., Chicago, 111.; recoil mech-

anisms and equilibraters; $1,855,000.Vilter Mfg. Co., Milwaukee, Wis.; guns;

$1,446,518.Kelsey-Hayes Wheel Co., Plymouth, Mich.;

small arms materiel; $11,751,986.Pettibone Mulliken Co., Chicago, 111.; gun

carriages; $1,846,000.York Safe & Lock Co., York, Pa.; gun

mounts; $872,800.Westinghouse Electric & Mfg. Co., Spring-

field, Mass.; oil gears; $710,133.Continental Roll and Steel Foundry Co.,

• East Chicago, Ind.; castings; $3,252,000.General Steel Castings Corporation, Eddy-

stone, Pa.; castings; $3,450,000.American Locomotive Co., New York, N. Y.;

parts for tanks; $1,417,590.Trackson Co., Milwaukee, Wis.; truck

mounts; $942,115.American Car & Foundry Co., Berwick, Pa.;

tanks and parts; $1,787,338.Diamond T Motor Car Co., Chicago, 111.;

carriers and parts; $4,498,706.Oilgear Co., Milwaukee, Wis.; parts for

tanks; $2,105,469.

Firestone Tire & Rubber Co., Akron, Ohio;band tracks; $975,650.

B. F. Goodrich Co.. Akron, Ohio; bandtracks; $3,168,876.Goodyear Tire & Rubber Co., Inc., Akron,

Ohio: band tracks; $868,689.White Motor Co., Cleveland, Ohio; half-

track cars; $2,560,902.American Car & Foundry Co., Berwick, Pa.;

tanks; $12,543,214.Autocar Co., Ardmore, Pa.; half-track car-

riers; $4,519,532.Central Steel Tube Co.. Inc., Clinton, Iowa;

tripod mounts; $746,503.

Revere Copper & Brass. Inc., New York,N. Y.; brass cups: $11,033,602.

McCord Radiator & Mfg. Co., Detroit, Mich.;helmet liners and suspension and helmetbodies; $3,215,370.

H. W. Butterworth & Sons. Philadelphia,

Pa.; tripod mounts; $3,003,000.

Crown Cork & Seal Co., Baltimore, Md.;tripod mounts; $2,713,926.

American Car and Foundry Co., Berwick,Pa.; armor plate; $1,090,000.

National Stamping Co., Detroit, Mich.;metallic belt links; $1,037,275.

Coifs Patent Fire Arms Mfg. Co., Hartford,Conn.; small arms materiel; $1,056,585.Kelsey-Hayes Wheel Co., Plymouth, Mich.;

small arms materiel; $12,585,300.Singer Mfg. Co., New York, N. Y.; directors;

$3,432,000.Buckeye Traction Ditcher Co., Flndlay,

Ohio; transmissions: $2,348,000.Chrysler Corporation, Detroit, Mich.; tanks

and spare parts; $63,785,816.Chrysler Corporation, Detroit, Mich.; tanka

and parts; $10,781,945.

Bucyrus-Erie Co., South Milwaukee, Wis.;gun carriages; $2,807,900.

General Motors Corporation, Delco BrakoDivision, Dayton, Ohio; boosters; metalparts; $1,290,000.

General Industries, Inc., Elyria, Ohio;fuzes; $925,000.Fort Pitt Bedding Co., Pittsburgh, Pa.;

metallic belt links; $720,000.Chicago Flexible Shaft Co., Chicago, 111.;

fuzes; $901,529.

* • *

Nearly a billion for defense

disbursed in June

Disbursement." for defense by the

United States Government in June cameclose to the billion dollar mark. ChecksIssued by various eovernmental agencies

for defense purposes totaled $994,200,000.

This was an increase of 9.2 percent over

disbursements in May. The figures werecompiled by the Bureau of Research andStatistics, OPM.

Transfers of funds by the War andNavy Departments to each other andto other agencies were reported as

checks issued, and these transfers whensubsequently disbursed by the agency to

which they were transferred were notincluded in the totals.

In the tabulation presented herewith

the large increase from the December1940 to the January 1941 figure is ac-

counted for by an unusual transfer of

funds from the War Department to NavyDepartment. For the most part, how-ever, such transfers did not materially

affect the figures.

U. S. GOVERNMENT DEFENSE DISBURSEMENTS

IS • DEFENSE • July 29, 1941

191 Certificates of Necessity for plant

expansion issued to 169 corporations

A total of 191 Certificates of Necessity

were issued to 169 corporations from July

1 to July 35, inclusive, the National De-fense Advisory Commission announcedthis week. These certificates were is-

sued in connection with the construction

and acquisition of new plant and manu-facturing facilities, the estimated cost

of which was $45,813,000.

This brings the total issued throughJuly 15 to 1,910 and the number of cor-

porations to 1,679. The cost of facilities

covered to date was estimated at $1,-

055,005,000.

A compilation of firms for the first

half of July, and estimated cost of fa-

cilities follows:

Acushnet Process Co., New Bedford, Mass.;gas masks and parts; $40,000.

Aircraft Accessories Corporation, Glendale,Calif.; aircraft hydraulic equipment; $337,-000.

Aircraft Components, Inc., Van Nuys,Calif.; aircraft steel and aluminum products;$52,000.Air-Maze Corporation, Cleveland, Ohio;

aircraft and Diesel engine flame arrestorsand oil separators; $50,000.Alabama Dry Dock & Shipbuilding Co., Mo-

bile, Ala.; repair and recondition vessels; $1,-

639,000.Aldan Rubber Co., Philadelphia, Pa.; rub-

ber coated fabric; $20,000.Allegheny Ludlum Steel Corporation, Pitts-

burgh, Pa.; strip steel; $276,000.Allied Aviation Corporation, Dundalk,

Md.; aircraft component parts of plywoodstructures; $79,000.

Allied Oil Transport Co., Inc., Cleveland,Ohio; fuel oil transportation; $65,000.

Allis-Chalmers Manufacturing Co., Milwau-kee, Wis.; ship propulsion shafting and elec-

tric transmissions; $1,138,000.American Car & Foundry Co., New York,

N. Y.; valves for naval vessels; $86,000.American Forge Co., Berkeley, Calif.; heavy

forgings. $115,000.The American Foundry Equipment Co.,

Mishawaka, Ind.; foundry equipment; $142,-000.American Gas Accumulator Co., Elizabeth,

N. J.; machine tools; $30,000.American Hollow Boring Co., Erie, Pa.;

turning and boring of forged steel shafts;$23,000.American Locomotive Co., New York, N. Y.;

springs, turret rings and howitzer carriages;

$107,000.

Anaconda Wire and Cable Co., New York,N. Y.; shipboard cable; $100,000.

Archer-Daniels-Midland Co., Minneapolis,

Minn.; storage of grain; $61,000.

Armour & Co., U. S. Yards, Chicago, 111.;

dried egg products; $30,000.

Armour & Co., of Delaware, U. S. Yards,Chicago, 111.; dried egg products; $34,000.

E. C. Atkins & Co., Indianapolis, Ind.; gunaccessories and armor plate; $85,000.

Auburn Spark Plug Co., Inc., Auburn,N. Y.; aircraft magneto and spark plug parts;$27,000.

The Babcock & Wilcox Co., New York, N. Y.;refractories; $340,000.

The Baker-Raulang Co., Cleveland, Ohio;truck, tractor and crane machined parts;$73,000.

The Bassick Co., Bridgeport, Conn.; ammu-nition racks and trays; $6,000.

Bay Chemical Co., Inc., New Orleans, La.;store and load muriatic acid; $45,000.Bay State Abrasive Products Co., Westboro,

Mass.; grinding wheels, honing and oilstones; $185,000.

J. Bishop & Co. Platinum Works, Malvern,Pa.; steel tubing; $75,000.Blaw-Knox Co., Pittsburgh, Pa.; armor

castings; $296,000.Bohn Aluminum & Brass Corporation, De-

troit, Mich.; bearings for tanks, trucks, andaircraft engines; $128,000.Bower Roller Bearing Co., Detroit, Mich.;

roller bearings; $92,000.Brewer-Titchener Corporation, Cortland,

N. Y.; aeroplane parts; $22,000.Bridgeport Brass Co.; Bridgeport, Conn.;

copper and gilding metal rotating bands;$20,000.

Bridgeport Rolling Mills Co., Stratford,Conn.; cartridge brass, bronze for Insigniaand brass strip; $109,000.Briggs and Stratton Corporation, Milwau-

kee, Wis.; metal parts for fuzes and bombs;$333,000.

Charles Bruning Co., Inc., Chicago, 111.;

reproduction machines and accessories;$113,000.The Bunker Hill & Sullivan Mining &

Concentrating Co., Kellogg, Idaho; slags;$552,000.

J. H. Bunnell & Co., New York City, N. Y.;communication equipment; $17,000.

Burchell Products, Inc., New York, N. Y.;Jigs, fixtures, and tools for guns and torpe-does; $21,000.The California, Arizona and Santa Fe

Railway Co., Chicago, 111.; transportation;$22,000.The Carboloy Company, Inc., Macomb

County, Mich.; tungsten carbide for cuttingtools, dies, etc.; $394,000.The Carlton Machine Tool Co., Cincinnati

Ohio; radial drills; $36,000.The Cincinnati Planer Co., Cincinnati,

Ohio; planers and boring mills; $198,000.The E. D. Clapp Manufacturing Co., Au-

burn, N. Y.; drop forgings, dies, tools andfixtures; $28,000.

Cleaver-Brooks Co., Milwaukee, Wis.; boil-ers and sterilizers; $35,000.The Cleveland Tractor Co., Cleveland,

Ohio; military tractors; $9,000.Cleveland Twist Drill Co., Cleveland, Ohio;

drills, reamers, and end mills; $31,000.Colorado Fuel and Iron Corporation, Den-

ver, Colo.; forging for shells; $29,000.Combustion Engineering Company, Inc.,

New York, N. Y.; boilers and fabricatedproducts; $422,000.Commercial Shearing & Stamping Co.,

Youngstown, Ohio; tool brackets; $12,000.The Cooper Alloy Foundry Co., Elizabeth,

N. J.; alloy steel castings; $69,000.Crane Co., Chicago, 111.; valves; $63,000.Crescent Tool Co., Jamestown, N. Y.;

wrenches and pliers; $1,000.Cross Gear & Machine Co., Detroit, Mich.;

special machine tools; $62,000.Crucible Steel Casting Co., Cleveland, Ohio;

steel castings; $67,000.Curtiss-Wright Corporation, Buffalo, N. Y.;

airplanes; $8,000.Cushman Chuck Co., Hartford, Conn.;

chucks for machine tools; $228,000.The Deer Creek Elevator Co., Blackwell,

Okla.; storage of grain; $47,000.DeVlieg Machine Co., Ferndale. Mich.; mill-

ing and boring machines; $72,000.The Dow Chemical Co., Midland, Mich.;

magnesium metal alloys; $325,000.Dunlop Milling Company, Inc., Clarksvllle,

Tenn.; storage of grain; $115,000.

Duplex Printing Press Co., Battle Creek,Mich.; gun carriages; $1,000.

E. I. Du Pont de Nemours & Co., Inc., Wil-mington, Del.; chemicals; $235,000.

The Duriron Company, Inc., Dayton, Ohio;Duriron and Durlchlor castings: $5,000.Edgerton Milling Co., Edgerton, Mo.; stor-

age of grain; $6,000.Electric Wheel Co., Quincy, 111.; trailers and

parts; $54,000.Electro Metallurgical Co., New York, N Y •

steels; $1,176,000.Ellwood City Forge Co., Ellwood City. Pa.;

Diesel engine crankshafts; $63,000.Erie Forge Co., Erie, Pa.; steel ingots and

castings; $43,000.Erie Forge & Steel Co., Erie, Pa.; steel in-

gots and forgings; $23,000Fairfield Manufacturing Co., Lafayette,

Ind.; gears; $21,000.Farmers Elevator Co., Chappell, Nebr.; stor-

age of grain; $19,000.Firth-Sterling Steel Co., McKeesport, Pa.;

tungsten metal powder; $158,000.Fort Worth Poultry & Egg Co., Inc., Fort

Worth, Tex.; dried egg products; $89,000.The Fountain Sand & Gravel Co., Pueblo,

Colo.; mixed concrete; $14,000.The Gear Grinding Machine Co., Ham-

tramck, Mich.; gear grinding machines anduniversal Joints; $80,000.

General Electric Co., Schenectady, N. Y.;motors, generators, and dynamometers; $592,-000.General Motors Corporation, Detroit,

Mich.; shoe track assembles for tanks andgun breech housings; $401,000.General Steel Castings Corporation. Eddy-

stone, Pa.; armor grade steel castings; $370,-000.The Geometric Tool Co., New Haven, Conn.;

chasers; $79,000.Gisholt Machine Co., Madison, Wis.; tur-

ret lathes; $185,000.The Gleason Works, Rochester N. Y • ma-

chine tools; $241,000.Goodyear Tire & Rubber Co., Akron, Ohio;

removal of toxic concentration, synthetic rub-ber, tires, and tubes; $498,000.The Goss & Deleeuw Machine Co., New

Britain, Conn.; chucking machines; $135,000.Greenville Steel Car Co., Greenville, Pa.;

railroad equipment; $158,000.Gregory & Read Co., Lynn, Mass.; canvas

leggings; $7,000.Gulf Shipbuilding Corporation, Mobile,

Ala.; navy destroyers; $1,103,000.Allan Hancock College of Aeronautics,

Santa Maria, Calif.; training of pilots; $7,000.Harrisburg Steel Corporation, Harrlsburg,

Pa.: bomb bodies; $83,000.Heppenstall Co., Pittsburgh, Pa.; forgings;

$149,000.C. Hiltebrant Dry Dock Co., Kingston,

N. Y.; mine sweepers; $24,000.Houston Natural Gas Corporation, Hous-

ton, Tex.; natural gas; $25,000.Huegely Elevator Co., Nashville, Dl.; stor-

age of grain; $5,000.The Indiana Steel Products Co., Chicago,

111.;, permanent magnets; $70,000.International Elevator Co., Minneapolis,

Minn.; storage of grain; $18,000.International Machine Tool Corporation,

Elkhart, Ind.; machine tools; $50,000.Jeffersonville Boat & Machine Shop, Jeffer-

sonville, Ind.; submarine chasers; $111,000.Jessop Steel Co., Washington, Pa.; steel

products; $30,000.Jones Machine Tool Works, Inc., Philadel-

phia, Pa.; machine tools; $183,000.Kennedy-Van Saun Manufacturing & Engi-

neering Corporation, Danville, Pa.; trenchmortars and mounts; $117,000.Kindred Farmers Elevator Co., Kindred,

N. Dak.; storage of grain; $9,000.L. O. Koven & Brother, Inc., Jersey City,

N. J.; manifolds, diesel engine parts and fire

control equipment; $41,000.Lancaster Iron Works, Inc., Lancaster, Pa.;

steel barges, dredges and hulls for boats; $25,-000.Landis Tool Co., Waynesboro, Pa.; grinding

machines; $631,000.J. Laskin & Sons Corporation, Milwaukee,

Wis.; processing of sheep shearlings; $90,000.Lawson Machine & Tool Co., Maiden, Mass.;

aircraft engine parts; $117,000.

July 29, 1941 • DEFENSE • 19

LeTourneau Co. of Georgia, Toccoa. Ga.;machining of shells: $3,000.

R. G. LeTourneau, Inc., Peoria, 111.; earth-moving machinery; $31,000.Lockheed Aircraft Corporation, Burbank,

Calif.; airplanes and spare parts; $223,000.

The Locomotive Finished Material Co.,

Atchison, Kans.; projectile hoists; $146,000.M. & M. Wood Working Co., Portland,

Oreg.; fir plywood; $291,000.Merz Engineering Co.. Indianapolis, Ind.;

machine tools: $166,000.Metakloth Co., Inc., Lodi. N. J.; dyeing of

armv ducks; $10,000.The Monarch Machine Tool Co.. Sidney,

Ohio; metal working lathes; $15,000.Monsanto Chemical Co.. St. Louis, Mo.;

phenol (carbolic acid); $435,000.Morrow Milling Co., Carthage. Mo.; storage

of grain: $15,000.The Nashville. Chattanooga & St. Louis

Railway, Nashville, Term.; transportation;$27,000.National Broach & Machine Co., Detroit,

Mich.; gear shaving, lapping, measuring,grinding and testing machines; $42,000.National Tube Co.. McKeesport, Pa.; shell

forgings and unloaded shells; $103,000.Newport News Shipbuilding & Dry Dock

Co., Newport News. Va.; aircraft carriers andlight cruisers: $84,000.Northern Pacific Railway Co., St. Paul,

Minn.: transportation; $5,000.The O. K. Tool Co.. Inc., Shelton, Conn.;

machine tools; $20,000.Ohio Crankshaft Co., Cleveland, Ohio;

processing of crankshafts: $157,000.The Ohio Knife Co.. Cincinnati, Ohio; ma-

chine tools and parts; $161,000.Olmsted & Stiles, Inc., Inglewood. Calif.;

machining and fabricating of aircraft partsand accessories; $9,000.Omaha Elevator Co.. Omaha. Nebr.: storage

of grain; $55,000.Optical & Film Supply Co., Inc., New York,

N. Y.; binoculars; $41,000.Oregon-Washington Railroad & Navigation

Co.. Omaha. Nebr.; transportation; $45,000.F. H. Peavey & Co.. Minneapolis, Minn.;

storage of grain; $106,000.The Pennsylvania Railroad Co., Philadel-

phia. Pa.: transportation; $14,000.Phelps Dodge Copper Products Corporation,

New York. N. Y.; shipboard cable; $176,000.Portland Pipe Line Co.. New York, N. Y.;

pipe line transportation of crude petroleum;$5,730,000.Pressed Steel Car Co., Pittsburgh, Pa.;

forging of shells; $93,000.

N. Ransohoff, Inc.. Cincinnati, Ohio; ma-chinery for processing ammunition compo-nents: $24,000.

The Reid-Avery Co.. Baltimore, Md.; elec-trodes and moylbdenum; $50,000.

Robins Dry Dock & Repair Co., Brooklyn,N. Y.; building, repairing, and recondition-ing of vessels; $4,287,000.

Romwel Products. Inc., Mystic, Conn.;primers and clips; $45,000.

Roth Manufacturing Co.. Chicago, HI.;

steam generators, hot water heaters, portableevaporators and showers; $96,000.

Royersford Foundry & Machine Co., Inc.,

Royersford. Pa.; drill presses and steel pads;$5,000.

St. Louis Flying Service. Inc., Robertson,Mo.: training of pilots; $27,000.

St. Regis Paper Co., Tacoma, Wash.; sul-phate wood pulp; $1,075,000.Sainte Claire Tool Co., Detroit, Mich.; tools,

dies and jigs; $72,000.

Seattle Steel Co., Seattle Wash.; steel re-inforcing bars; $78,000.

Semet-Solvay Co.. New York, N. Y.; by-products of coal and coke: $98,000.Shawnee Milling Co.. Shawnee Okla.; stor-

age of grain: $55,000.

Sheffield Steel Corporation, Kansas City,

Mo.; Ingots; $400,000.

Sinclair Refining Co.. New York City, N. Y.;

gasoline; $3,300,000.

The Solvay Process Co., Syracuse, N. Y.;

chemicals; $631,000.

Southern Kraft Corporation, New York,N. Y.; sulphate machine dried pulp; $5,-

665.000.

The Southwest Grain Co., Hutchinson,Kans.; storage of grain; $10,000.

Spartan Aircraft Co., Tulsa, Okla.; train-ing of pilots; $61,000.

Standard Oil Co., Louisville, Ky.; storagetanks for gasoline; $42,000.

Steel Improvement & Forge Co., Cleveland,Ohio; aircraft parts; $93,000.

Stewart-Warner Corporation. Chicago, 111.;

bomb fuzes and metal fuze components;$4,000.

Tampa Shipbuilding Co., Inc., Tampa, Fla.;

destroyer tenders; $2,256,000.

Tennessee Coal, Iron & Railroad Co.,

Birmingham, Ala.; forging of shells; $434,000.

Texas & New Orleans Railroad Co., Houston,Tex.; transportation: $3.0C0.

Texasteel Manufacturing Co., Fort Worth.Tex.; forging and machining of shells;

$85,000.

Tletjen & Lang Dry Dock Co., Hoboken,

N. J.; repairing, converting, and recondi-tioning of naval vessels; $39,000.Twin Disc Clutch Co., Racine, Wis.;

clutches; $17,000.Union Twist Drill Co., Athol, Mass.; taps,

dies and drills; $78,000.United Aircraft Corporation, East Hart-

ford, Conn.; aircraft propellers and parts;

$949,000.United Drill & Tool Corporation, Chicago,

111.; drills, reamers, and punches; $324,000.United Gas Pipe Line Co., Shreveport, La.;

natural gas service; $409,000.United States Gypsum Co., Chicago, 111.;

roof decks; $28,000U. S. Machine Corporation, Lebanon, Ind.;

shell machining; $5,000.Van Dusen Harrington Co., Minneapolis,

Minn.; storage of grain; $115,000.The Wellman Engineering Co., Cleveland,

Ohio; designers and manufacturers of heavyequipment for steel mills, railroads, etc.;

$23,000.Winter-Truesdell-Dierckd Co., Minneapolis,

Minn.; storage of grain; $5,000.

Higher schedules issued

for cotton cloth and yarn

Amended schedules reflecting upwardadjustments in ceiling prices on cotton

grey goods and combed cotton yarn were

issued July 21 by OPACS.The revisions, made by OPACS be-

cause of increased costs in the industry,

followed meetings the previous week

with a representative group drawn from

the cotton textile advisory panel.

In the combed cotton yarn schedule,

3 cents a pound was added to the ceiling

price for single-ply in all counts and 1

cent a pound to the maximum price for

two-ply in all counts.

Broadcloth ceiling

Adjusted ceiling price for print cloth

and carded broadcloth is 43 cents a

pound; combed broadcloth is raised to a

maximum of 61 cents a pound, and three

classes of sheetings to 35 Vz cents, 36 Vz

cents, and 38 cents a pound.

Part-waste osnaburgs are divided into

two classes in the amended schedule.

Cloth made of yarns numbered up to and

including 9s are assigned a maximumprice of 29 cents a pound and cloth madeof yarns above 9s a ceiling price of 32

cents. Top price on tobacco cloth is

raised to 46 cents.

Premium for extra quality

Recognizing established trade custom,

the amended schedule allows a premiumof 1 cent per pound above ceiling prices

to be charged for fabrics made with

"feeler motion," which assures better

than ordinary quality. In addition, a

further premium of 1 cent per pound

may be charged for fabrics of shade cloth

quality.

Adjusted ceiling prices on cotton grey

goods are made effective as of June 30,

1941. Contracts entered into prior to

June 30, 1941, for the sale of cotton grey

goods at prices higher than the original

ceiling prices, but lower than the newmaximums, may be carried out in ac-

cordance with their terms. No deliver-

ies may be made, regardless of contract

terms, at prices higher than the newceiling prices without prior approval by

OPACS.Amended schedule of combed cotton

yarn ceiling prices was effective July 21.

• • *

DCB procures added radio

frequencies for pilot training

At the request of the Chief Signal

Officer of the Army, the Defense Com-munications Board, through James Law-rence Fly, chairman of the DCB and the

Federal Communications Commission,

has obtained FCC action to clear addi-

tional radio channels for the Army's

pilot-training program.

Instruction of thousands of additional

military aircraft pilots at new fields

throughout the United States involves

direct radio communication between in-

structors on the ground and fledgling

birdmen in the air. A 100-kilocycle

band formerly assigned to amateur use

will be made available for this important

national defense function on September

1, and additional frequencies will be

turned over to the airmen as needed

during the following months, until a

300-kilocycle band has been assigned.

Amateur radiotelephone networks andother organized amateur services will be

granted additional developmental privi-

leges In other existing amateur portions

of the spectrum not needed for defense

services.

20 • DEFENSE • July 29, 1941

HOUSING . . .

1,700 defense homes completed in week;

3,306 put under construction contract

More than 1,700 defense homes were

completed the week ended July 19, mak-ing an average of over 1,700 comple-

tions a week since the first of July, C. P.

Palmer, Coordinator of Defense Hous-ing, announced.

3,306 put under contract

Completions are reported at HamiltonField, Calif., with 170 homes; Stockton,

Calif., with 100 homes; and Port Dupont,Del., with 20 homes; all constructed bythe Public Buildings Administration for

enlisted personnel. The United States

Housing Authority also reported com-pletion at Birmingham, Ala., of 150homes, and at Nashville, Tenn., of 150homes; both for civilian workers.

In addition, 3,306 homes were placedunder construction contract in the week.Among these were 1,000 homes put underconstruction by the Federal WorksAgency for civilian industrial workers atSan Diego, Calif.; 992 at Vallejo, Calif.;

and 450 at Mifflin, Pa. The United StatesHousing Authority has put 300 underconstruction at Norfolk, Va., for indus-trial workers, and the Public Buildings

Administration 200 at Pine Camp, N. Y.,

for both civilian and enlisted personnel.

Under the temporary shelter program,200 trailers were completed for civilian

workers at Baltimore, Md., and 400 moreplaced under construction contract, to

be used as "stop-gap" housing at Kings-bury, Ind.; Burlington, Iowa; Jackson-ville, N. C. ; and Ravenna, Ohio.

22,627 completed in all

In addition, 248 dormitory units for

single men were contracted for at Ports-

mouth, Va., to house civilian workers em-ployed in the shipbuilding industry.

So far, the Division of Defense Hous-ing has allocated 107,643 homes in 170

localities of 49 States and Territories.

Of this number, 74,617 have been placed

under construction contract, and 22,627

have been completed.

200 homes approved for Negro workers

in Buffalo, reported to have no vacanciesConstruction of 200 nomes for fami-

lies of Negro workers in defense indus-tries in Buffalo, N. Y., has been approvedby President Roosevelt upon the recom-mendation of C. F. Palmer, Coordinatorof Defense Housing.

A report submitted to the Coordinatorby Robert R. Taylor, Racial Relations

Consultant to the Division of DefenseHousing Coordination, described in de-tail the housing situation in Buffalo as it

relates to the Negro population of thecity and the facts concerning extensive

hiring of Negro workers in defense plants.

Although the population of Buffalo de-creased slightly between 1930 and 1940,

the Negro population increased approxi-mately 5,000, or about 40 percent. Ne-groes have been moving into Buffalo to

work in the steel mills, foundries, andother industrial plants in the vicinity.

The chief defense demand for labor

in the Buffalo area is expected to comefrom the Curtiss-Wright Company,which will add about 12,000 workers to

its plant at Cheektowaga. Estimatesmade in January and February indicate

a need for about 25,000 to 30,000 workersfor Buffalo during 1941.

According to Howard A. Kelly, Direc-

tor of the Buffalo Housing Authority, ahousing survey recently completed showsthat there are no vacant dwellings avail-

able for Negroes in the Buffalo area.

• * *

President approves building

of 2,865 defense homes

President Roosevelt July 24 approvedconstruction with public funds of 2,865

homes for families of industrial workers

and enlisted personnel in eight localities,

upon the recommendation of C. F.

Palmer, Coordinator of Defense Housing.

The localities and number of homes are

as follows:

Permanent.—Manchester, N. H, 85;

Buffalo, N. Y., 200; Portland, Oreg., 85;

Beaver County, Pa., 900: Fort Eustis, Va.,

75; Seattle, 700.

Temporary Shelter.—Weldon Springs,

Mo., 320; Ravenna-Warren, Ohio, 500.

90 percent mortgage insurance

approved for 21 more localities

President Roosevelt July 24 approved21 new localities in which homes may befinanced under the 90 percent mortgageinsurance provision known as Title VI of

the National Housing Act, upon the rec-

ommendation of C. F. Palmer, Coordina-tor of Defense Housing.

For $1,800 to $3,000 salaries

The housing which is expected to bemade available through this legislation

is intended to alleviate shortages of

housing in defense areas. Workerswhose earnings amount to $1,800 or $3,000

annually can, economically, buy or rent

the moderately priced homes built underthis title.

Needs found greater than authorization

Mr. Palmer recommended that, pend-ing further determination, this financing

method should not be utilized by anycommunity to an extent exceeding needsas determined for that locality by the

Division of Defense Housing Coordina-tion. The total of these needs is already

greatly in excess of the number of homeswhich can be insured under the $100,-

000,000 now authorized by the title, hesaid.

"Unfilled needs," said Mr. Palmer,

"may be provided for through expansionof this authorization if the Congress sees

fit."

The areas approved

The following are the newly approvedareas and the defense activities most im-portant in each:

Arkansas—Little Rock; Camp Robinson;shell-loading.

Florida—Panama City; air training school;Tallahassee; flying field; Valparaiso; Armyair station.

Georgia—Atlanta; airfield; Fort McPherson.Illinois—Rantoul; Army flying school.Indiana—Evansville; ammonia.Iowa—Des Moines; small arms ammuni-

tion.Kentucky—Henderson; ammonia.Louisiana—Lake Charles; magnesium; air

training school.Massachusetts—Lynn; airplane parts; elec-

trical equipment.Michigan—Lansing; airplane parts; ammu-

nition components.Mississippi—Columbus; Air base; Green-

ville; Air base.Ohio—Toledo; airplane parts; tanks; shells.

Oklahoma—Oklahoma City; Air base.Oregon—Astoria; naval air base; shipbuild-

ing; army posts.

Texas—Freeport, magnesium metal;Vernon; Air training school; Victoria; Airtraining school.

Alaska—Fairbanks; Army air ba6e.

July 29, 1941 • DEFENSE • 21

TRANSPORTATION . .

.

Increased lake ore movement piles stocks

higher than in 1940, despite demandsReports from the four principal ore-

handling railroads through the weekended July 19 showed that they haveloaded into boats at upper lake ports this

season a total of 34,531,995 gross tons

of iron ore as compared with 22,926.165

tons during the corresponding period in

1940, or an increase of 11,605.830 tons.

On the basis that the four roads

handle 93 percent of total ore movingvia the Great Lakes, as was indicated

by the monthly figures through the endof June, It is estimated that through

July 19 more than 37,000,000 tons of

ore have been moved compared to 24,-

600.000 during the corresponding period

in 1940.

According to the report of the LakeSuperior Iron Ore Association, the con-

sumption by furnaces of iron ore to July

1, 1941, totaled 36,681,000 tons, an in-

crease of 9,350,000 tons over the con-sumption during the corresponding pe-

riod in 1940. Despite this increased con-

sumption, the increased volume of move-ment brought about by early opening of

navigation and continued maximum use

of the lake fleet has resulted in a stock

pile, July 1, more than 3,000,000 tons

greater than on the corresponding date

in 1940. In the past 2 months the ore

movement has been sufficient to take

care of current needs and at the sametime add in excess of 4,500,000 tons each

month to the stock pile, which is built

up during the season of navigation to

take care of needs during the winter

when the lakes are not open.

Carloadings rising again,

still short of June peak

Freight-car loadings during the weekending July 19 totaled 899,870, an in-

crease of 23.1 percent over the 730,460

cars loaded during the corresponding

week in 1940. While loadings increased

23,000 cars over the week ended July 12,

they failed to equal the peak of 908,664

cars loaded during the last week in June.

Compared to the corresponding weekin 1940, increases were recorded in all

major commodities with the exception of

livestock, which showed a decrease of 10.9

percent. Miscellaneous loadings, while

29.9 percent above the corresponding

week in 1940, were 16.000 cars less than

in the last week in June of this year.

The details follow:

CARLOADINGS WEEK ENDED JULY 19

Use of public cold storage

10 percent over July 1, 1940

Figures recently released by the De-partment of Agriculture, Agricultural

Marketing Service, show in 200 public

refrigerated warehouses reporting onJuly 1, vacant space totaling 50,000,000

cubic feet, of which 37,000,000 cubic feet

is cooler and 13,000,000 cubic feet is

freezer space. This shows an occupancyof 57 percent in cooler and 70 percent

in freezer and 61 percent in combinedrefrigerated space.

Comparisons follow:

22 • DEFENSE • July 29, 1941

CIVILIAN DEFENSE . . .

LaGuardia tells first civilian defense

trainees of the job ahead of them

Speaking July 11 before the first grad-

uating class in the special defense train-

ing course for police and fire officers at

Edgewood Arsenal, Md., (See Defense,

July 15), Director F. H. LaGuardia, Of-

fice of Civilian Defense, declared: "It is

our job to protect the people of our cities

and of our States. We do that in case

of fire or disease, we afford police pro-

tection and health protection. On top

of this has come this new responsibility,

and that is to give protection to the

civilian population in the event our coun-

try is attacked or becomes engaged in

war."

Further excerpts from Mayor La-Guardia's address follow:

When you return to your homes to

resume your duties you will have the

responsibility not only of training your

own department, but also training the

auxiliary forces that will be enrolled and

that we find necessary to supplement

existing fire departments, and in making

up our air raid warden service.

Can't localize war

Every one of you will be confronted

with this question: "Why is this all neces-

sary? Does the Army expect our towns

to be bombed and attacked?" Of course,

the answer is that we do not expect to

be attacked or bombed tonight:—or to-

morrow—or the day after tomorrow, but

that this specialized and highly technical

training that you have taken is necessary

today in view of existing conditions andin the face of an entirely new technique

of war.

The technique of attack has changed,

ships have been built larger, the range of

guns has increased. And now, with the

advent of aviation, there is no longer

any such thing as localizing war, andabout the safest place to be In Is a first-

line trench.

You and I are just city officials, and

we have nothing to do with shaping the

foreign policy of our Government. It is

our job to protect the people of our cities

and of our States. We do that in case

of fire or disease, we afford police pro-

tection and health protection. On top

of this has come this new responsibility,

and that is to give protection to the

civilian population in the event our coun-

try Is attacked or becomes engaged in

war.

All this is new to us, and It Is going to

take time, first, to have the necessary

training in the permanent departments

of our cities, and then to educate the

people of our cities to have self-imposed

discipline so that they will follow in-

structions and obey orders in the event

of an attack.

In addition to that, every city andcommunity will have to obtain neces-

sary equipment, and no city has that

equipment today.

We have taken an inventory based

upon the experience of the English cities.

We know that we should train an auxil-

iary fire-fighting force from three to

five times the number of the permanentprofessional fire force.

These auxiliary companies will have to

be equipped with portable pumpersplaced at strategic points, and other

necessary equipment that has been tried

and found necessary in the English cit-

ies. No city in this country and no State

that I know of, has available at this mo-ment the money with which to buy the

equipment that is necessary. And evenif we did have the money, the equip-

ment does not exist.

To standardize equipment

We must also agree on the type of

apparatus needed. We are now in con-sultation among the cities concerning

the best type of equipment that can be

obtained, again based on English ex-

perience, in order to have uniform speci-

fications and uniform equipment all

through the country.

It is my intention, as soon as this in-

ventory is completed—and I have con-

ferred with all of the Mayors of the

country and with a great many of the

Governors—to present the matter to

Congress and to seek to have Congress

provide for all the additional emergencyequipment that is required.

We estimate that it will take from a

year to a year and a half to provide all

of this necessary emergency equipment.

In the meantime, we can train our auxil-

iary fire forces.

Now, when I talk about auxiliary fire

forces, I mean companies that will be

stationed in the zone of each engine com-pany and will move out on call to fight

fires. That does not include the spot

firefighter, the incendiary bomb spotter.

That will be enrolled in the air raid

warden service. In all likelihood, in

your respective cities you will have the

responsibility of training this part of the

air raid warden service.

Must have undivided command

There is another problem that will

present itself to you in your respective

cities.

I have conferred with the heads of

most of the national organizations, andthey understand the necessity of com-plete, undivided command and discipline

in these auxiliary forces. Therefore,

these organizations can help you in en-

rolling your personnel. They can help

in some of the training. For instance,

the Red Cross in many localities will

continue its courses in nursing and first-

aid and rescue work, on a standard ap-

proved by the Office of Civilian Defense.

But when their members report for duty

to the regular establishments of the city,

they lose their identity as members of

any specific organization, and becomemembers of the auxiliary fire force or of

the air raid warden service.

Now, the Departments of the cities

are the logical departments or agencies

to take over this emergency and protec-

tive work. The fire departments, of

course, are trained to fight fires, and the

auxiliary force necessary to meet anemergency is under the direct commandof that fire department and becomes a

part of it when in action. Where, as in

the larger cities, you also have your air

raid warden service separate from the

fire department, then the Commissioner

of Public Safety, or the Police Commis-sioner or Chief, as the case may be, as-

sumes command.

Clearance and repair service

When we come to clearance, removal

of debris, rescue of people out of de-

molished or shattered buildings, those

squads do not move until they get the

clearance. Your public works depart-

ment or whatever corresponds to that,

your street repair department, your wa-

ter supply department, must all be

merged along with your utilities, the

telephone and gas companies—into your

clearance and repair service.

Your health department comes very

close to these repair squads, because if

your sewer is in close proximity to your

water main and they are both broken,

then your health division must come

July 29, 1941 • DEFENSE • 23

right in and see that there is no con-

tamination.

You will find that organizing your

repair squads will not be difficult because

every city and every community has a

pretty good nucleus in their road repair,

street repair, water supply and sewer

departments.

Your medical divisions are entirely

separate, and your health officer or head

of the hospital system or senior medical

officer would take charge of that. There

will be men and women who are trained

in first-aid among the air raid wardens.

Now, it is a big job, men. There is

much detail to it, and you have had the

advantage now of special instructions in

a highly specialized and technical branch

of civilian protection.

Provide "passive defense"

If the enemy gets by our bases, our

Army and our airforce, all we can do is

to provide passive defense, that is, to pro-

tect the people with no means at all of

fighting back. One of the most impor-

tant parts of our work is gradually but

persistently to train the civilian popula-

tion to the necessity of cooperating andfollowing instructions.

Your building departments will classify

the buildings in your cities so that the

residents of each house will know just

exactly what part of the building to go

to. The clearance of streets immedi-ately following the first alarm is neces-

sary, and everybody must be off the

street.

We do not contemplate at this momentthe building of shelters. Judging from

the English experience, shelters are being

used less and less, although the intensity

of the bombing has increased. In every

plant you should train the air raid

warden for that plant and fire protec-

tion. Every plant must have its ownemergency squads in addition to your

regular city-wide service, so that amongtheir own people they can provide the

first protection. If the plant or factory

is running 24 hours a day, there should

be 3 shifts of men and women trained

to do this work. If it does not operate

at night, then among its employees liv-

ing in the vicinity of that plant there

should be seme who are trained and dis-

ciplined to report for the protection of

that particular plant or factory, in the

event of an attack.

Instructions will come from Washington

Uniform instructions and manual of

procedure will be provided from the

Washington office. Naturally, in all the

instructions that come from Washing-ton or from your Civilian Defense Direc-

BASIC AND ARMBAND INSIGNIA FOR ENROLLED VOLUNTEER WORKERS IN CIVILIAN DEFENSE

AIR RAID WARDEN AUXILIARY POLICE

BOMB SQUAD AUXILIARY FIREMEN FIRE WATCHER RESCUE PARTY

MEDICAL CORPS NURSES AIDES CORPS MESSENGER DRIVERS CORPS

EMERGENCY FOOD AND HOUSING CREW DEMOLITION AND CLEARANCE CREW ROAD REPAIR CREW DECONTAMINATION CORPS

STAFF CORPS ENROILEE, FIRST CLASS SQUAD LEADER

AAASECTION LEADER

OFFICIAL INSIGNIA in red, white and blue, for volunteer workers to be enrolled

under the OCD program, were adopted July 24 at the first meeting of the Volunteer

Participation Committee. The basic design appears on a button, the others on arm

bands. Developed by Charles T. Coiner, consultant on design to the Division of

Information, OEM, the insignia were devised after a study of designs and colors

that provided the greatest visibility under adverse conditions. Many were tried out

in buildings wrecked by fire, and in crowds.

tor in your particular corps area, or from

your State Council of Defense or local

council of defense, remember they should

be adjusted to local conditions.

And now, as you go home, please bear

in mind that this is only precautionary,

just the same as the precautionary meas-

ures that the health departments and

police departments provide. The health

department provides measures against

epidemics, not because we expect to have

epidemics, but because we must be ready

should they come. The same is true in

your work of civilian defense.

24 • DEFENSE • July 29, 1941

President tells volunteer committee to

interpret defense policies to people

Members of the Volunteer Participa-

tion Committee of the Office of Civilian

Defense, named last week by President

Roosevelt, met Thursday, July 24, at the

White House on the invitation of Mrs.

Eleanor Roosevelt. Mayor P. H. La-

Guardia, Director of the Office of Civilian

Defense, presided at the day-long con-

ference.

Members of the committee were ad-

dressed by President Roosevelt at a pre-

liminary session. The President ex-

plained that he expected the committee

members to interpret the Administra-

tion's defense policies to the people In

their respective areas. Mr. Roosevelt

said he was not concerned with the for-

malities of procedure but that he ex-

pected results from the members of the

committee and that he would hold themaccountable.

Committee functions

Mayor LaGuardia outlined the func-

tions of the committee as follows:

To act in an advisory capacity to the

Office of Civilian Defense in formulating

policies affecting volunteer participa-

tion; to act, within their respective

areas, in advising the regional directors

of the Office of Civilian Defense in for-

mulating policies governing civilian par-

ticipation in their respective regional

areas.

Members of the committee heard ad-

dresses by Mrs. Roosevelt; Dr. GeorgeBaehr, Chief Medical Officer of the Office

of Civilian Defense; Mrs. Anna Rosen-

berg, of the committee; and Paul V.

McNutt, Administrator of the Federal

Security Agency and Coordinator of

Health, Welfare, and Related Defense

Activities.

Mayor LaGuardia explained to the

committee members that the functions

of the Office of Civilian Defense were

divided as follows:

1. A Board for Civilian Protection rep-

resenting Federal, State, and local gov-

ernmental agencies, charged with the

responsibility of planning measures de-

signed to afford adequate protection of

life and property in the event of

emergency.

2. A Volunteer Participation Commit-tee, composed of forty-five persons, five

from each of the nine regional civilian

defense areas which are coterminous

with the War Department Corps Areas.

This committee is to advise the U. S.

Director of Civilian Defense in the de-

velopment of plans and activities designed

to sustain national morale and to pro-

vide opportunities for constructive civilian

participation in the defense program.

Have no administrative authority

While these advisory bodies are to

assist in the development of plans andprograms for the Office of Civilian De-fense, they are not charged directly

with administrative responsibility. Theadministrative authority in the develop-

ment of the program resides—first, in

the U. S. Director of Civilian Defense;

secondly, in the regional directors of

Civilian Defense, appointed by him, of

whom there are nine, one assigned as

director of each of the nine regional

civilian defense areas. The regional

civilian defense areas are the first con-

tact of the national office in the field with

the States and, normally, through the

States, with localities.

The Volunteer Participation Commit-tee will serve at the national level to

advise the U. S. Director of Civilian

Defense in the formulation of policies.

Within their own regions they will func-

tion in a similar capacity with theregional directors.

As specific programs which require useof volunteers are developed by the na-tional office, they will be made available

through the regional directors to theStates and to the localities. These plans

will include programs for the training

and use of volunteers in connection withsuch civilian protection enterprises as

police and fire auxiliaries, emergencymedical services, training of air-raid

wardens, and the like. They will also

include programs having to do with giv-

ing to citizens generally an understand-ing of the entire defense effort, the crea-

tion of opportunities for every man andwoman and child to participate con-structively in the defense program, andthe sustaining of national morale. Theuse of these programs in any given com-munity will have to be determined by thecivilian defense leaders of the communityin the light of local conditions. In mak-ing the determination of emphasis onprograms in any region, members of the

Volunteer Participation Committee canbe particularly helpful.

Much expected of committee members

Ordinarily the members of the Volun-teer Participation Committee will act

on the call of the regional director cf

the area to which they are assigned.

However, each member also has a re-

sponsibility to the U. S. Director of Civil-

ian Defense to keep in touch with the

activities in his area; to assist in the co-

ordination of regional effort; and to

keep the regional and national office in-

formed of plans developed and progress

made.Mayor LaGuardia said he expects from

each member of the Volunteer Participa-

tion Committee reports on local condi-

tions and suggestions.

OFFICE FOR EMERGENCY MANAGEMENT

Central Administrative Services: SidneySherwood, Director.

Commercial and Cultural Relations Be-tween the American Republics: NelsonRockefeller, Coordinator.

Defense Aro Reports Division: Ma]. Gen.James H. Burns, Executive Officer.

Defense Communications Board: JamesLawrence Fly. Chairman.

Defense Housing Division: C P. Palmer,Coordinator.

Health, Welfare, Nutrition, Recreation, andRelated Defense Activities : Paul V.McNutt, Coordinator.

Wayne Cot, Liaison Officer

Information Division: Robert W. Horton,Director.

National Defense Mediation Board: Wm. H.Davis, Chairman.

Office of Scientific Research and Develop-ment: Dr. Vannevar Bush, Director.

Office of Civilian Defense: Fiorello H.LaGuardia, Director.

Office of Price Administration and CivilianSupply: Leon Henderson, Administrator.

Consumer Dtvision: In charge of HarrietElliott, Associate OPACS Administrator.

Transportation Division of the AdvisoryCommission : Ralph Budd, Commissioner.

Office of Production Management:

council

William S. Knudsen, Director General.Sidney Hillman, Associate Director General.Secretary of War Henry L. Stimson.Secretary of the Navy Frank Knox.

Secretary, Herbert Emmerich.General Counsel, John Lord O'Brlan.

Production Division: John D. Biggers,Director.

Purchases Division: Donald M. Nelson,Director.

Priorities Division: E. R. Stettinlus, Jr.,

Director.

Labor Division: Sidney Hillman. Director.Research and Statistics Bureau: StacyMay, Chief.

U. £. GOVERNMENT PAINTING OFFICEi 1941