No Takers

The U.S. Government last week moved to force more competition in the aluminum industry. Effective Oct. 31, the Reconstruction Finance Corp. will take back the seven plants built for it by the Aluminum Co. of America (construction cost: $250 million). Alcoa had been operating the plants for RFC under leases which would have expired in 1947 and 1948. RFC was willing to let Alcoa continue under one condition: that the company agree to relinquish the plants at any time on 60 days' notice. When Alcoa refused, RFC canceled the leases, released the plants for sale to create "competition in the aluminum industry."

As yet, there have been no takers. Reason: the chances of getting any new competitors in the aluminum business now are almost nonexistent. The highest alltime prewar aluminum consumption in the U.S. was under 400 million pounds. Alcoa alone can produce more than twice that amount --860 million pounds. Reynolds Metals can add another 160 million. Already on hand is a war-built stockpile of a billion pounds. Thus RFC must find operators willing to take a long chance, or (more likely) shut down the plants.

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