Show PLANT CAPACITY NOT EXCESSiVe EXCESSiVe- Study Shows Margin for fOJ Increase Normal and Unavoidable By y J. J R. R BRACKETT RACKET Associated J Press Tress Financial Financil Writer Wrier NEW YORK June 24 2 ff Fj JE Excess capacity that often ofen castigated bugbear bugbear bug- bug bear ear of American Amerian industry may not be c so much of ot a bugbear after all allmay allmay almay all all- al- al may not riot in i fact fc even cven be excessive In n normal times A special study by the national Industrial in industrial In- In conr conference rence board indicates that hat so called caled excessive capacity is normal and unavoidable that more facilities for production must be bc maintained main- main than can be utilized to t meet the ordinary variations of ot business sucH as ns irregularity of ot consumption de de- de de mands A mistaken assumption of ot great great- great overcapacity the board says results results' from Crom Tom calculations of ot production p po potentiality as if i factories could and would be operated to the limit at atal atall ill all al times On this basis bais there is often oHen excess excess capacity but experience shows that no such ideal regularity of production can be expected Th The board therefore there there- there fore ore for the purposes of ot comparison Ifor for practical use calculates that actual capacity is not the technical theoretic cal cat ability of ot the factory but rather its actual best performance in a n pe period pe- pe pe nod of ot better beter than tha normal business such as a. a for instance istance the best month month- In 1929 and in 1926 Technical theoretical capacity oh steel ingot and casting production in in- in 1930 was estimated at gross tons As a matter mater of at fact only gross tons were produced in that that that-a year and in 1929 the best year production production pro pro- pro ducton was gross tons Thus production in 1930 was about 40 per percent percent percent cent of or technical capacity The Te board estimates actual capacity of ot steel ingots ingot on the basis of ot the best month in 1929 and 1926 1920 at 57 tons tons Total actual 1929 production pro ducton therefore was per cent of capacity in 1930 it ii was percent per percent percent cent in 1931 per cent cent Similarly technical automobile ca ca- has been estimated as high as x as-x as cars annually The board estimates actual practicable capacity r rat at cars Production in 1929 was wa as 84 2 per cent of ot this figure in 1930 it i was per cent in i 1931 it it was per cent cent Actual shoe capacity was pairs In 1929 per cent of this f figure were produced 73 6 per cent fri In 1930 and in 1931 Estimates of technical capacity on the other hand have reached as S high as pairs In a perfectly planned so society lel technical tech tech- capacities might have mox more mea meaning t There here would be no or few competitive c f. f machines and the other variations which business now must must meet would be eliminated or mini mini- But In the present system some economists economist hold it unfair to compare actual production with wih a technical theoretical top figure that would indicate indicate in in- i- i in many Instances a wastage even in the best of ot times ties of ot 50 per percent percent percent cent of or the capacity |