suppliers of steel has refused to recognize it for June delivery. If the controlled materials plan does not come into being until fall, then a DO-87 rating should be issued to cover a definite period of time, should be issued early enough to apply to that period, and should be made mandatory upon steel suppliers.

E. E. Boyer, Statesville, N. C. (farm equipment manufacturer): Our failure to obtain even modest amounts of steel in time for the peanut harvest season threatens the crop of many farmers who are depending on us for equipment. "We small fellows, lacking cash, storage, and personal contacts, inevitably suffer when supplies become tight, unless some system of timely and equitable allocation is placed into effect." We are currently suffering in the materials shortage from our unequal buying position. Suppliers cater to their big customers with long buying histories; small-business men can point to neither large orders nor long histories. Shortly after NPA order M-6 was issued to assure small manufacturers of some steel, DO-97's were issued to provide steel for maintenance, repair, and operating supplies. The DO-97's quickly exhausted steel supplies, including those supposedly reserved by M-6. We have received innumerable offers to buy steel at exorbitant prices. With so much steel available on the black market it is hard to understand why our subsidiary, engaged 60 percent in defense work, cannot secure steel even with the necessary priorities.

J. W. Gotcher, Southern Farm Equipment Manufacturers, Inc.: We have utmost confidence in the Agricultural Machinery and Implements Division of NPA. NPA Order M-55 providing aluminum, copper, and steel for farm equipment for June 1951, had a number of shortcomings; it came too late, should be extended for third quarter of this year to span the gap until CMP comes into existence, did not succeed in getting steel producers to set aside quantities for our needs, should have been based on consumption in the base period (not amounts received), and was accompanied by an incomplete list of farm equipment eligible for the benefits provided. Advance information of CMP indicates the need for harmonizing certain features of that plan with existing regulations. Many businesses will be unable to provide the very technical data required by CMP Form 4-B by the May 31 deadline. There is a black market in steel operating in the South today.

John Rumicks, American Manufacturing Co. (farm equipment manufacturer), Benton Harbor, Mich.: We are idle because we cannot obtain certain required types of steel for our cultivators. Apparently a lot of steel is going to nonessential

uses.

G. D. Shawver, Innes Co., Bettendorf, Iowa: We have been buying steel from black market sources since 1947 in order to meet our production needs. DO-97 should be revised to cover a longer average period and should make allowances for inequities arising under the base period chosen.

W. E. Cornelius, Sunbeam Corp., Chicago, Ill. (farm equipment division): The base period prescribed under M-55 was not typical in our case. A manufacturer should be permitted the alternative of using his average sales for a period of 5 years from 1946 to 1950, inclusive.

T. C. Solem, Johnson Hydraulic Equipment Co. (farm equipment manufacturer), Minneapolis, Minn.: The steel shortage has prevented our making deliveries of haying equipment in time for this spring's haying season. "Today there is not a bar of cold rolled steel to be had from any source. M-55 has been worthless to me; warehouses won't accept M-55 orders because they can't assure us they are going to get any steel.

Material shortages--aluminum

Herbert Friedman, Pax Metal Corp., Los Angeles, Calif. (extruders of aluminum): In order to overcome the impact of aluminum shortage for small producers during transition period, it is suggested that independent aluminum extruders should be allowed to fabricate standard items such as rod, bar, tubing, and shapes which will later be used for defense requirements; and also to continue a larger degree of production of essential civilian items, such as aluminum window sash, door thresholds, etc. The large integrated companies are doing more fabricating themselves and not making material available to small companies as they should, he feels.

Stanley F. Bell, Strait-Line Products, Costa Mesa, Calif. (tool makers): Company requires larger allocation of secondary aluminum alloy of which he claims there is an adequate supply. Amount of alloy allowed under regulation M-7 is not sufficient to maintain present personnel.

Frank Gaines, Gaines Co., Los Angeles, Calif. (aluminum casting): Major problem is delivery of aluminum ingots. Large companies do not promise delivery

until early months of 1952, making it impossible to retain workers and business. There is insufficient aluminum apparently to meet the defense orders that have been allocated. Operations have been carried on by borrowing metal from customers.

Samuel Silverberg, Klimat-Master Aluminum Products, Cincinnati, Ohio: "The end-use restrictions amount to our death sentence * * * I prefer not to close shop, for my own interest, as well as for the interest of my 45 employ* Remove that restriction, place a percentage ceiling on us, and

ees

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then let us scramble for aluminum as best we can.

B. J. Wagner, Koolvent Aluminum Awning Co., La Fayette, Ind.: Order M-7 curtailing use of aluminum is believed to be unfair to present producers and unrealistically severe, not taking into sufficient account secondary recovery of scrap or imports.

George D. Reish, Reish Products, Inc., South Bend, Ind. (processors of aluminum foil): He believes orders prohibiting use of foil is discriminatory, allowing relatively too much, for example, for milk bottle caps, and for tobacco and cigarette packaging.

W. S. Benson, B. & W. Enterprises, Houston, Tex. (manufacturer of aluminum screens): After considerable expenditure of money and time in getting organized, they were ready to begin production in June of 1950 when the Korean War came along. "I was chopped off on aluminum and cut down. Sixty-five percent of base for the first 6 months. I did not have any base."

Alex Andrews, Consolidated Venetian Blind Co., Houston, Tex.: As largest producer of aluminum venetian blinds in the United States, the aluminum shortage is of critical concern. "Due to the fact that there are four agencies independently engaged in allocating the available supply of aluminum without clearing through one head or central office, it is our opinion that there is a pyramiding of requests and numerous duplications for eseential requirements of this critical metal."

William T. Brown, Central Cooperative, Inc., Oakland, Calif.: As a farmers' cooperative whose purchasing activities did not start until 1946, this organization finds it impossible to purchase the percentage of steel and aluminum products that, under regulation M-6 they are entitled to. Many farmers and farm cooperatives are put in real jeopardy by this situation. Smaller distributors of aluminum have not been able to get any out of the Aluminum Co. of America, even though other suppliers in other sections of the country have apparently been provided for by ALCOA. In brief, "the supplier won't sell it to us."

Paul V. Harmon, president, Precision Parts Corp., Nashville, Tenn. (Nashville nonferrous foundry, machine shop, and woodworking plant): NPA order M-7. Aluminum scrap. Alloys prepared for different types of castings usually made from secondary metal, whereas primary metal used to produce aluminum sheets. Aluminum used by small foundries produced by secondary metal refinery, who secure their total supply of aluminum from the open scrap market, which is now practically nonexistent due to Government orders (1) users of aluminum sheets must return all scraps to the prime producer, taking it off the open market (2) different branches of Government have issued orders to stockpile all Government scrap, also take this off the open market.

D. R. Kennedy, Kennedy & Bowden Machine Co., Nashville, Tenn.: NPA order M-12, NPA order M-7. Custom of job shops has been to save scrap aluminum and brass and have foundries melt it and pour it into castings for them. NPA regulations prevent scrap from being melted locally-it must be sold to a junk dealer who in turn ships it to large refineries. They supply their regular customers, generally large industries. Only alternative for a small plant in securing castings when he does not have a DO order, is to try to purchase raw material from the refinery, then have local foundry melt it and pour it into castings. E. A. Vermer, Vermer Corp., Malvern, Ark.: His firm requires about 250,000 pounds of aluminum per month, whereas Reynolds Metals Co., its only source of supply, has allocated it 5,000 pounds for the month of May. The balance the company must make up from secondary materials or the black market. There is "crying need,for another producer in the field (aluminum production), but one that is a producer only whose sole purpose is to supply the general trade."

Lewis Hamlin, Hamlin Product Co., Little Rock, Ark.: A shortage of primary aluminum seems to be combined with an increasing supply of secondary aluminum; therefore it is suggested that NPA regulations on secondary aluminum be relaxed. T. J. Bottom, president, Aluma Kraft Manufacturing Co., St. Louis, Mo.: The company finds itself caught between Government directives prohibiting the use of aluminum for awnings and inability to obtain defense contracts despite trained personnel. "NPA has controlled our vital materials with guesswork methods.

They have admitted this and find it necessary to make changes upon changes * * * We don't make any claim for the necessity of aluminum awnings. We only want to be allowed to continue in business, to keep our organization together, so that we can convert to the business that is using the aluminum, to the business that we are capable of doing."

Fred Venner, president, Southwest Manufacturing Co., Little Rock, Ark.: He maintains that aluminum shortage is due in part to excessive requirements of the aircraft industry. They are building up inventories, while small businesses are unable to obtain enough aluminum to keep in business. The small businesses for the most part are unable to obtain enough defense contracts to compensate for the cut in civilian production.

This

Sigmond Rosenblatt, National Glass Co. and Natcor Store Fronts, Taunton, Mass.: "Just after starting our store-front line, World War II hit us; postwar, we enjoyed a good rise and decided to relinquish our glass line, concentrating entirely on aluminum store fronts. In March 1950, we moved our factory to Taunton, Mass., and then a new war effort and aluminum shortage hit us. time we can't fall back on another line of business * * * We have never been able to understand why the United States refused Canada's offer to sell 400 million pounds of aluminum Our efforts to secure defense work have to date been unavailing. In order to be able to perform defense work when it does come our way, we must be able to hold our trained staff together; that will require securing just enough aluminum to keep us in business."

* *

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John B. Loveland, Indianapolis, Ind. (distributor of food-packaging materals): "Serious shortages of wrapping materials used to protect frozen foods have developed which threaten my business * We should recognize the importance of family and community food lockers in warding off inflation and the black market in foods. But people cannot stock food without proper packaging; and we are increasingly less able to supply the materials for food packaging.' Charles Grafman, Southeastern Venetian Blind Manufacturers' Association: The M-7 order restricting aluminum threatens the venetian blind industry. Since aluminum venetian blinds make many varied contributions to the economy and defense effort, the product should be classified as an essential item, thus guaranteeing an adequate supply of our raw materials.

C. G. Olson, Atlanta Ventilated Awning Co., Atlanta, Ga.: "Our death sentence was delivered by the NPA order M-7, shutting off our basic raw material, aluminum. Almost every city in the country over 25,000 population has a company that manufactures aluminum awnings; it is a nice little business, but now we are through."

G. B. Collings, chamber of commerce, Newport News, Va.: Aluminum fabricators are suffering from the metal shortage. The Government's refusal to accept a favorable offer from the Aluminum Co. of Canada did not make sense.

Stuart E. Hallett, Brown & Grist, Newport News, Va. (aluminum window manufacturers): Small businesses have been unable to compete pricewise in securing raw materials and have consequently sought Government business solely as a means to guarantee a supply of raw materials. Stockpiling by the Government, before the needs were accurately determined, has threatened many small firms. "The amounts of aluminum in the stockpiles cannot possibly be needed; but we badly need it."

L. A. Cushman, Television Associates, Manchester, N. H.: "We have been unable to secure from legitimate sources the amount of aluminum allowed us under NPA orders. Consequently we have turned to European and blackmarket sources. I recognize that I am as much guilty of violating the rules and regulations as the seller is. I recognize that fact, but it is either do that or go out of business, and I cannot afford to go out of business and neither can I afford to go without a job, as I did for a number of years.' He has had no problem in obtaining aluminum from Europe. The price of aluminum that comes back from England exceeds the ceiling price here, but they are importing (American) aluminum from Italy for less than the market price here. We also have to obtain other items such as cadmium plated nuts and bolts from illegitimate sources at premium prices. Why should automobile manufacturers have such an ample supply of scarce materials when we small-business men are being choked to death by the scarcity?'"

Material shortages-copper

E. C. Phillips, Coast Electric Co., San Diego, Calif. (supplier of electrical equipment): "Commercial and housing construction are curtailed here because of inadequate supplies of insulated copper wire. Both copper and the rubber

insulation are short. Most of the nonmetallic sheet cable is manufactured in the East and under the practice of uniform pricing throughout the country, the eastern manufacturers prefer to sell close to home (and thus avoid freight charges), therefore there is an element of discrimination against the west coast. Apparently under the restriction of demand through the DO orders, some manufacturers have surplus wire on their hands; this DO-induced surplus is feeding the black market in copper wire."

Raymond Betts, Cincinnati, Ohio, manufacturer of bronze burial caskets: "Being set up to manufacture only bronze caskets, I am a candidate for one of my own products under the NPA restrictions on bronze. * ** Unfortunately the prohibition came just when I had successfully concluded the development phase of a new process. Since my molds were completed only a few weeks

ago, I have no historical base."

Robert Langsenkamp, Langsenkamp-Wheeler Brass Works, Indianapolis, Ind. (foundry operations): "The foundry industry, basic to industrial mobilization for defense, is currently handicapped by shortages of raw materials. The stockpiles in the hands of small producers are as fully available to the defense effort as are the larger stockpiles gathered together by the Government, if not more so. Furthermore, producer stockpiles are more widely distributed and accessible to the foundry industry. It is our belief that copper is being needlessly stockpiled. Foundries are now finding it necessary to import pig iron and to secure pig copper from the black market."

Thomas A. Robertson, Mosler Lock Co., Covington, Ky.: "Cut-back of materials is the chief problem of the company. In the production of locks, it has been impossible to find satisfactory substitutes for brass and bronze."

Ernest G. Kramm, manager, Northern California chapter, National Electrical Contractors Association, Oakland, Calif.: To help electrical contractors get needed copper, he recommends that until a controlled materials plan goes into effect, the specialty contractor be immediately removed from both the inventory control and percentage use of restrictions as now written into the M-12 order. Jack Rawlins, National Electrical Contractors Association, Los Angeles chapter: Contractors' inability to obtain copper wire in many instances is putting them out of business. He would like to have "some of the blocks in front of us" eliminated so "we can get some of this material."

Edward Strasser, representative of the Fireplace Goods Manufacturers of the Pacific coast, Los Angeles, Calif.: Most western fireplace goods manufacturers, represented by Mr. Strasser, started up after World War II; now in this period of shortages, eastern outfits, where most of the brass comes from, have taken over the brass for themselves with very little left for the western market. The NPA order of March 1, was unfair to western brass consumers because they had very small inventories compared to those of the East. These manufacturers have also been unable to get defense contracts.

John Taylor, Taylor Cable Products, Kansas City, Kans. (manufacturer of battery cables): Sources of supply come from big business which has cut down drastically on shipments, notably of copper.

Roy W. Beaumont, Beaumont Furnace & Sheet Metal Corp., San Francisco: Copper shortage is making it impossible for this corporation to complete construction projects on which it was the successful bidder. The NPA regulation M-12, with the first quarter of 1950 base is working great hardships on the company. The use of galvanized iron instead of copper would not be satisfactory in many cases. Contractors that used substantial amounts of copper in the first 6 months of 1950 are in a much more favorable position than those that used little. Favors putting contractor jobs on a priority basis and then allowing the successful bidders to obtain what materials are necessary to complete contracts with high priorities.

Edward W. Duff, Universal Mono-Tabular Co., Dallas, Tex.: "We are the sole producers of a piece of equipment required in the printing business for turning out ruled forms. Since the equipment calls for finely drawn copper wire, we are in serious trouble now as a result of the copper shortage."

Henry King, of the Naugatuck Valley Industrial Council, Waterbury, Conn.: One of the greatest problems for small-business men in this area is the scarcity of metals, particularly copper. The basic cause of the present copper shortage is continued stockpiling of copper which he believes is both unwise and unwarranted. As a result there has been a loss of production, layoffs, and productive capacity that cannot be quickly regained. Shortages and dislocations such as these bear most heavily on the small-business man with his limited resources, limited sources of supply, limited diversity of product and limited capacity for

adjustment.

Does not anticipate any benefits from CMP because this plan will

not give us any more copper and that is our basic problem.

Material shortages-Chemicals

F. B. Thomas, Bundy Thomas Co., Covington, Ky. (paint manufacturer): Uncertainty in obtaining such raw materials as titanium pigments and white lead the main problem of the company. He recommends setting up a Government subsidized plant for refining titanium and corroding lead to serve some 1,300 paint manufacturers who are not among the Big Ten. Temporarily there should be restriction or curtailment of exports of titanium.

Horatio L. Wilkinson, the Debevoise Co., Brooklyn, N. Y. (paint manufacturer): Titanium pigments have been unavailable. Each of the two main suppliers, DuPont and Titanium Pigment Corp. (subsidiary of National Lead), have been eminently fair in the distribution of their pigment to the industries they serve, both of them doing it upon a quota basis of past consumer orders. A contributing cause of the titanium and resin shortages is the Armed Forces practice of buying ahead of actual need. If they would schedule their deliveries over a period of time that more readily coincides with their consumption needs, more paint would be available for essential civilian requirements. Government procurement and export policies in regard to flaxseed, the source of linseed oil, may also produce a shortage of that important paint ingredient.

Bernard I. Gillman, S. L. Gillman Paint Co., Atlanta, Ga. (paint manufacturer). "Our supply of white pigments, crucial in paint production, has been practically shut off since their classification as critical raw materials. Without a DO rating, we cannot get delivery from the pigment producers. They have taken the attitude that it is more convenient to sell in larger lots and consequently we little fellows are being squeezed out."

Alfred Gus Karger, American Printing Ink Co., Cincinnati, Ohio: There are four dominant firms in the United States which control the production of titanium dioxide, a critical ingredient of printing inks and paint bases. While they could not possibly have identical production costs, nevertheless they have regularly charged identical prices. And with the development of the emergency, they have started to squeeze the little fellows out of business. Each of the four resorted to the same strategem of basing point delivery quotas on customer purchases during a certain period of time, regardless of whether purchases during that base period were normal or not. There is supposed to be a shortage of titanium dioxide, but apparently enough is being produced to allow exports to neighboring countries which are then reexported back to us at prices four to five times the standard price. Many advertisements have been received of the material available at black market prices. The allocation of the material should be compulsory upon the manufacturers, to prevent them from arbitrarily deciding who shall remain and who shall not remain in business.

N. A. Backscheider, manufacturer of plastics, Cincinnati, Ohio: Competing with the rubber industry for benzol, the plastic industry has been short-changed by the notion that plastics are a substituted product. They should be correctly regarded as prime products. But the industry cannot make its full contribution (which includes replacing aluminum in certain uses) unless adequately supplied with benzol. Louis L. Potomac, Alsyntic Co. of America, manufacturers of reinforced plastics, San Diego, Calif.: "The scarcity of such materials as benzene-based chemicals and glass-fibers threatens the life of the reinforced plastics industry. All those materials are now covered by DO orders, and as yet military contracts with DO ratings have not come through in sufficient quantity to replace the curtailed production for civilian uses. Plastics compete with the synthetic rubber industry and others for benzene derivatives; the Government should recognize the defenseimportance of plastics in allocating these critical materials. But in addition, NPA should consider allocating enough raw materials to resin manufacturers to allow them not only to supply our defense orders, but a reasonable portion of our normal civilian business.'

Jack Burnbaum, Bradford Novelty Co., Cambridge, Mass.: "We are currently receiving amounts of polystyrene that will not even give us 50 percent of our production last year. We have had to drop four-fifths of our employees a year. In the past we dealt with subcontractors who secured their own plastics with which to make our moldings; but now, when we go direct to the plastic suppliers they refuse to take orders on the grounds we have never bought from them before. The Government, not the polystyrene manufacturers, should allocate the material." Charles J. Dietrich, Absorene Manufacturing Co., St. Louis, Mo.: Next to difficulties experienced under price-control regulations, securing of scarce materials, particularly soda ash is a chief problem.