Word: fleischmanns
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Over the cheers of some businessmen and the jeers of others, Defense Production Administrator Manly Fleischmann last week announced that all of U.S. industry will be subject to the Controlled Materials Plan. Beginning Oct. 1, said he, producers of civilian goods as well as arms producers will have to get their steel, copper and aluminum through Government allotment...
...operation, CMP had only applied to manufacturers directly engaged in the defense programs and to the so-called defense-supporting industries, e.g., freight-car building. Makers of such civilian goods as refrigerators and autos had been left to scramble for themselves. By putting the civilian producers under CMP, Fleischmann hoped to assure them a fair share...
DPAdministrator Fleischmann, who had predicted confusion in the first stages of CMP, was more optimistic. After a few months, said he, things would settle down and DPA would have the staff to crack down on manufacturers who are now adding to the confusion by wanton over-ordering. To the suggestion advanced by Bethlehem Steel's Chairman Eugene Grace and others (TIME, Aug. 6) that CMP should be limited to direct defense production, Fleischmann had a quick answer: "Without CMP you will get lots of refrigerators, cars and so forth, but no tools. Direct military purchases are the smallest part...
...Government was doing little to lessen the confusion. Only three weeks after assuring civilian goods producers that they would be cut back no further this year, Defense Production Administrator Manly Fleischmann last week reversed himself. He issued new steel allocations for the fourth quarter, which will slash auto output another 5% (from 65% to 60% of the first half of 1950), and pinch off production of other civilian durable goods from 70% to 65%. To add to the confusion, DPA took the same chance it had before: it allocated almost 15% more steel for the fourth quarter than will...
Where is all the steel going? Not into arms. For the next quarter, Fleischmann allocated only 1,900,000 tons, or less than 10% of the available supply, to direct defense output such as tanks, ships and guns. Eighty percent (16 million tons) will go to what the Government calls "defense-supporting programs" (see chart). Biggest takers: railroad equipment, petroleum industry, building materials...