MANUFACTURING: Real War Orders

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One sure way for belligerents to get commitments for the delivery of war goods from U. S. manufacturers who are unwilling to risk expanding for war trade, is for the buyer to put up the capital. Known examples of that practice in World War II are the 50% plant expansions of Wright Aeronautical and Pratt & Whitney, for which France has agreed to pay $4,500,000 to $5,000,000 in surcharges on the engines delivered to them for warplanes.

Last January, in its annual report, Atlas Powder Co. revealed that its new TNT plant at Wilmington was booked to capacity—through this year and into the first half of 1941—by rearmament orders of the U. S. Government and others. Last week, in a report to SEC, Atlas revealed how the belligerents have managed to get a preferred place on its TNT order books: $1,427,000 has been lent to Atlas by France and England, interest free, to be used for building a new TNT plant. All its output is to go to the Allies for shells, bombs, torpedoes, etc. Its location: Atlas refused to say.