Monday, Feb. 05, 1951
Pentagon's Error?
The U.S. is repeating its early World War II mistake of expanding aluminum production too little and too late. So charged Reynolds Metals' President Richard S. Reynolds Jr., second biggest U.S. aluminum producer, before a House subcommittee. Not until three months after the Korean war started, said he, did NSRB Chairman W. Stuart Symington call for an immediate expansion of 500,000 tons a year. But when the Government got around to issuing the actual contracts, said Reynolds, his company's expansion was cut from 150,000 tons to 100,000 tons.
To find out why, Jess Larson, head of the General Services Administration, who has charge of stockpile contracts, was called in. Said Larson: he cut back Reynolds' expansion and the total expansion (to 446,000 tons) because the Pentagon's estimated needs did not justify them.
Did that mean the shortage was less grave than had been feared? On the contrary, said Larson, "there is certainly and obviously a crying need for all the metal we can get [this] year and...next...We need further expansion. However, I cannot officially do anything about it."
Meanwhile, increased defense needs will take an estimated 35% of U.S. aluminum production this year.
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