%
Ν
REPORTS ON
INDUSTRIAL
MOBILIZATION
News of the nation's activity in marshaling its resources to meet the international emergency Steel m a n Reports on Success Of Mobilization Program W h e n the current economic expansion program is ac complished, this nation will be considerably better prepared to meet whatever test of strength may come—whether it is an indefinite continuance of cold war or a spreading of actual hostilities, John R. Steelman, acting director of the
Railroads and utility projects have led in tax aid approvals this year Millions of Dcllor» 1000 I
3000 112/29/51
IRON & STEEL
4000 I '•M6/2D/S2
CHEMICALS
1. When additional sources of critical minerals are needed, costs and risks of domestic exploration and develop ment may be shared by the Government with the operators. 2. When new refining of processing methods may yield greater output, reduce cost, or conserve scarce materials, research may be encouraged. 3. When private financing is inadequate for development of known ore bodies, loans may be made or guaranteed to develop or improve the facilities. 4. When a project involves an abnormal risk and an as sured market is required to induce investment, commitments may be made for government purchases of the output under certain conditions. 5. When the prevailing price is too low to maintain cur rent production or to bring new supply, premium prices may be paid. Steelman's comprehensive report also describes the in crease in flow of arms, the effect of the steel strike on mobil ization, the relaxing of certain controls, the manpower situa tion, the price and -wage control program, the free world de fense program, and our progress in civil defense. Copies of the report, "Defense Mobilization—The Shield Against Aggression," are available from the U. S. Government Print ing Office, Washington 25, D . C , for 3 0 cents:
RAILROADS NON-FERROUS METALS PUBLIC UTILITIES
In addition to employing accelerated tax amortization, there are several other ways outlined by which expansion goals are being met:
wm
MACHINERY AIRCRAFT
DPA Révises Petroleutrr Expansion Goal Upward
Cumulative total value of Certificates of Necessity issued, showing proposed investment.
CRUDE PETROLEUM & NATURAL GAS IRON MINING COAL AND COKE PETROLEUM PIPELINE ALL OTHER
Office of Defense Mobilization, states in the sixth quarterly report (and the first since he has headed O D M ) of that office. Dr. Steelman believes that as military needs are met, our expanded productive capacity can be used for raising further our own living standards and contributing to an at tack on poverty throughout the free world. Two. problems still remain before achieving expansion goals, Steelman asserts. The first involves the course to be taken when private industry is not able to finance the total expansion program outlined. Direct government plant con struction has not been authorized during this emergency, but if private concerns cannot undertake the full amount of vital expansion programs, the question of legislative au thority for government plant construction may have to be presented again to Congress. The second problem concerns the maintenance of the ex panded capacity once it is attained. At the present time, Steelman explains, there is no assurance that capacity added under the expansion program is not offset by the scrapping of other capacity already in existence. Legislation may be required to provide the means for maintaining full capacity. V O L U M E
3 0,
N O
30
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JULY
2 8,
An upward revision of that part of the interim petroleum expansion goal pertaining to production of natural gas liquids and processing facilities has been announced by DPA. The revision provides for construction of additional capacity to produce 60,000 barrels a day during the last half of 1952 and 120,000 more barrels a day in 1953. This will provide a total capaoity of about 1,040,000 barrels a day by the end of 1953. This is an increase above the goal announced last April, which provided for expanded facilities to yield 43,000 more barrels a day in the last half of 1952 and 88,000 barrels a day in 1953. DPA explains tliat the goal was adjusted to handle the natural gas liquids which will be produced as a result of the drilling program now under way. These include liquefied petroleum gases and natural gasoline, which are recovered in the processing of natural gas. IMC Announces Sulfur Allocations for MextSix Months Sulfur allocations for the last six months of 1952 have been announced by the sulfur committee of the International Materials Conference. In announcing the figures, the committee states that half of the six-month allocation constitutes the allocation for the third quarter and the other half is the fourth quarter allocation, with the proviso that the committee may review the allocation for the fourth quarter. The United States and Canada together have received an allocation of 2,307,000 long tons of which 465,000 long tons may be exported. Other allocations include: United Kingdom, total 195,000, 177,000 imported; Italy, total
1952
3111
INDUSTRIAL M O B I L I Z A T I O N
76,000, 43,OQ0 exported; France, total 75,500, 73,500 im ported; Japan, total 70,500, 49,800 exported; and Australia, total 67,500, 71,500 imported. ^Vhe^ii the allocation and the import quota differ, as in theLatterr case, the difference is explained by domestic production* or stock adjustment. Although world production of sulfur- in the last half of 1952 is expected to increase to S .2 nmillioTi long tons, it still falls short of requirements whicli are es: lima ted at 3.83 million long tons. Sixteen governments are reprreserated on the sulfur com mittee. They include AixstralLia, Belgium (representing Benelux), Brazil, Canada, Fra_3ice, the Federal Republic of Germany, India, Italy, NlexEco, INew Zealand, Norway, Sweden, Switzerland, XJnioo of Sou^Ji Africa, United King dom, and the United States. D M Ρ A Signs Copper, Fluorspar, Cryolite Agreements, Establishes Mica Depot
mica. The domestic purchase program is set to run to June 30, 1955 or until the total block, film, and hand-cobbed mica accepted by the Government has reached the equivalent of 25,000 short tons of hand-cobbed mica. Synthetic Cryolite. Arrangements have been made by DMPA for the expansion of the facilities of the AluminumOre Co. at East St. Louis, 111. Under the agreement t h e company's output will be increased by about 11,000 tons a year to help meet the needs of the expanding aluminum program. The company will sell t o the Government 4 2 , 6 0 0 short tons of synthetic cryolite during the^ period 1952 through 1956 at a base price of 13.9 cents a pound for 9 1 * cryolite. Appointments . . .
L. A. Schlueter of Arlington, Va. has been appointed5 assistant director of the chemical division of the National Production Authority. Mr. Schlueter joined NPA in De cember 1950 as chief of the coal tar chemicals, dyes, ax*d intermediates branch of the chemical division. During World War II, he served with the chemical division of t h e War Production Board. In his new position, Mr. Schlueter will assist George E. Holbrook, recently appointed director of the chemical division.
Progress in increasing otu sujppltes of vital minerals has been announced by Jess Larson, acflmiriistrator of the De fense Materials Procurement Ag^encw. Copper. DMPA has signed ^ contract with Calumet & Hecla Consolidated Copper G£" unc3er which the company has agreed to rehabilitate its Osce^ola mine in Houghton County, Mich. The company will un dertake this program at i t s o^jvn «ex— — — — — — pense and provide all necessary fac-ili- D P A A p p r o v e d 1 8 4 Certificates of Necessity ties for processing the ore. The cost to Certificates of necessity for rapid write-off of 184 new or expanded defease the company will be about $6 million. DMPA has guaranteed the com panw a facilities amounting to $158,205,732 were approved by the Defense Production negotiated floor price of 25.25
