Snail's Pace

The first big layoffs because of shortages and prospective war production began to threaten U.S. industry. Nash-Kelvinator Corp. announced that by Jan. 15 it would cut back 18% of its work force, or 4,500 employees, and slash auto production by 25%. Because of other cutbacks in the auto industry, Michigan expected that the state's unemployment total, which had jumped by 13,000 to 65,000 in the latest week, would hit 150,000 by summer.

The danger of mass layoffs finally seemed big enough to speed up Washington's snail-slow letting of war contracts. A $100 million contract for military trucks was given to General Motors Corp., and a $160 million contract for medium tanks to Chrysler Corp., its biggest contract to date. The Chrysler contract, said Army Ordnance, was a starter on one of the largest tank orders ever placed by the Army. But production probably would not begin for many months, since Chrysler planned to build a new plant near Newark, Del. to make the tanks.

There was also talk of other big war contracts. Douglas Aircraft Co. was negotiating with the Air Force and the Boeing Airplane Co. to build B-47 jet bombers in an idle Government plane plant in Tulsa, Okla. It would be the first time since World War II that any company other than Boeing has produced Boeing planes --but Douglas would not be able to get into production for 18 months at least. Kaiser-Frazer Corp. was dickering to build Fairchild C-119 transports at Willow Run; even General Motors was said to have a deal cooking to build Republic F-84 jet fighters.

More material shortages for civilian users--and probably more layoffs--were in the cards. Last week the National Production Authority ordered a 20% cutback in the civilian use of tin for February, said it would again cut the supply of vital cobalt for the radio and television industry. From General Electric Co.'s new President Ralph J. Cordiner came a hint of how much war production would be stepped up in the future. Said he: G.E., whose production is already 22% in war goods, would boost the proportion to one-third or more in 1951.

This file is automatically generated by a robot program, so reader's discretion is required.