664 MINERALS YEARBOOK, 1941

Niagara Falls, N. Y. Of the Reynolds production, Listerhill, Ala., accounted
for 79 percent and Longview, Wash., for 21 percent. Value of the aluminum
produced m 1941 averaged 16 24 cents a pound compared with 18 25 cents m
1940 Greater fabricatmg capacity paced the enlarged metal-producmg program
 Although the Government made heavy financial commitments for the expansion
of aluminum facilities, virtually all of the increased metal production and
fabrication completed by the Alummum Co of America during 1941 resulted from
expenditures of the company's own money (a $215,000,000 expansion program
was begun in 1937). Funds for plants of the Reynolds Metals Co. were obtained
from the Reconstruction Finance Corporation, which took the company's existent
alummum-fabricatmg facilities as security On June 27, 1941, the Government
announced that more aluminum would be needed to fulfill Army-Navy and Lend-Lease
requirements, and late in the summer of 1941 it began to let contracts for
the construction and operation of its own aluminum plants through the Defense
Plant Corporation.3
 The first Government expansion program (of June 27, 1941) for 303,000 short
tons of aluminum was followed by a second expansion program (announced February
26, 1942) providing for an additional 320,000 tons of metal. The Aluminum
Co. of America was the first company to enter into a contract with the Defense
Plant Corporation (August 19, 1941) for the construction and operation of
a 200,000-ton (annual) alumina plant (later extended to 500,000 tons and
recently expanded again to 650,000 tons) at Hurricane Creek, near Bauxite,
Ark., utilizing low-grade bauxite and of three reduction plants to produce
a total of 160,000 tons of aluminum. The Aluminum Co. also agreed to build
additional plants to be operated by others. The contract provides that the
company design and construct the plants at cost but without fee or profit
and that it operate them under a 5year lease and pay the corporation 85 percent
of the net profits from operation. Either party can extend its own capacity;
the lease can be canceled; and an adjustment in price of the metal will be
made if unreasonable profits are attained. In concluding negotiations the
Aluminum Co. of America agreed to reduce the price on ingot aluminum after
September 30, 1941, from 17 cents to 15 cents a pound.
 The Office of Production Management originally recommended that the remainder
of the aluminum-producing capacity under the first expansion be divided among
four other companies—Reynolds Metals Co., Olin Corporation, Bohn Aluminum
& Brass Co., and Union Carbide & Carbon Co. This program did not
materialize exactly as planned, and only the first two of these firms decided
to enter into the production of primary aluminum. Reynolds finally decided
to add only 27,000 tons of capacity to its Listerhill works, and Olin was
allocated 15,000 tons, which later was increased to 20,000 tons. Olin's subsidiary,
Kalunite, Inc., was authorized to build a 10,000-ton alumina plant based
upon alunite, which later was extended to 30,000-ton capacity. The Aluminum
Co. was allocated the production capacity that remained on the first expansion
program, which when revised to conform to the company's standard design brought
its share of this program to 256,000 tons.
' Franke, Herbert A., The Aluminum Situation: Mm. and Met., vol. 22, No.
419, November 1941, pp.
528-532.