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DIARY

Book 427

August 1 - 4, 1941

-ABook Page
Appointments and Resignations
Smith, Frank:

Early asks HMJr to place after rejection by

Securities and Exchange Commission - 8/4/41..

427

271

Argentina

See Latin America

-BBolivia
See Latin America
Business Conditions
Research and Statistics memorandum on situation
for week ending August 2, 1941

342

- 0China

See War Conditions
Coast Guard

Reservists - report on - 8/1/41
Correspondence

Mrs. Forbush's resume' - 8/4/41

109
319

- DDefense Savings Bonds
See Financing, Government

-EEcuador

See Latin America

-FFinancing, Government
Defense Savings Bonds:

Sales during May, June, and July - 8/1/41
Field Organization News Letter, No. 11 8/2/41

Treasury Hour: Kipling's "The Islanders" FDR wishes recital by Alfred Lunt - 8/4/41
a) Daughter of Kipling consents to use 8/11/41: See Book 431, page 274; Book
432, page 152

b) Maurice Evans to read it: Book 432, page 156
France

See War Conditions

112
185
315

-Book Page

Iceland
See War Conditions
India
See War Conditions

Inflation

See War Conditions

"Islanders, The"
See Financing, Government: Defense Savings Bonds

-L Latin America
Argentina:

Loss (estimated) in customs revenues from six
principal concessions now being offered 427

8/1/41

135

Bolivia:
Collaboration: Details discussed in State
Department memorandum - 8/1/41

137

Ecuador:

Stabilization credit requested - 8/4/41

357

-M-

Morgenthau, Henry, Jr.

Agricultural expedition in 1913 discussed in Gaer
note to Mrs. HMJr - 8/4/41

305

-0011

See War Conditions: Export Control

-PPetroleum

See War Conditions: Export Control
-RRevenue Revision

Press release on two series of Treasury notes to
go on sale August 1
Broadening of Base: Treasury opposition discussed

at staff meeting - 8/4/41

HMJr's proposed statement before Senate Finance
Committee: See Statements by HMJr

3-A
253

-SBook Page
Shipping
See War Conditions

Smith, Frank
See Appointments and Resignations
Statements by HMJr

Tax Bill: Proposed statement before Senate Finance
Committee

First draft - 8/4/41

427

326

- 8/6/41: See Book 429, page 77
a) Conference of Treasury group, Eccles,
Currie, and Magill: Book 429, page 1
b) Conference: present: HMJr, Blough, Kuhn,
Magill, and Shere: Book 429, page 98

Second

.

c) Conference; present: HMJr, Sullivan,
Magill, Blough, Kuhn, Bell, and
Riefler: Book 429, pages 117 and 222
Third draft: Book 429, page 145

Fourth

: Book 429, page 269

a) Conference of Treasury and Internal
Revenue groups: Book 429, page 296

b) Conference; present: HMJr, Blough,
and Kuhn: Book 429, page 306

Fifth draft: Book 429, page 351
Reading copy - 8/8/41: Book 430, page 10
Press comment - Merillat report - 8/15/41:
Book 433, page 76
Stock Market

Price movements compared of 20 "war" and 20
"peace" stocks - 8/4/41

280

-TTaxation
See Revenue Revision

-UU.S.S.R.

See War Conditions
United Kingdom

See War Conditions: Military Planning: United Kingdom
-W-

War Conditions

Airplanes:

Deliveries monthly, July 1940 to date - 8/4/41.

278

Shipments to United Kingdom and overseas

commands - British Air Commission report 8/4/41

314

- W - (Continued)
Book

Page

427

229

War Conditions (Continued)
China:

Hong Kong: Inclusion in sterling area for

foreign exchange control purposes - 8/2/41
Fox report - 8/4/41
Exchange market resume' - 8/1/41, etc
Export Control:
Petroleum: Further regulation announced by
FDR - 8/1/41

Exports of petroleum products, scrap iron, and
scrap steel from United States to Japan,
Russia, Spain, and Great Britain, week
ending August 2, 1941
Foreign Funds Control:

Personnel to be investigated before being hired:
HMJr tells Foley - 8/4/41
a) Conference; present: HMJr, Gaston,
Pehle, Foley, and Thompson - 8/4/41

362

140,234,372

89

325

274
283

France:

Free French supplies discussed by Cox and HMJr 8/1/41

Iceland:
General resume' - 8/2/41
India:

4,35
201

Lend-Lease inclusion of discussed in State
Department correspondence - 8/2/41

168

Inflation:

Prevention by increased purchase of Government
bonds (deferred income plan) discussed in
Eddy and Neisser memoranda - 8/1/41

101

Lend-Lease:

Purchases - weekly report - 8/1/41
Military Planning:
Reports from London transmitted by Halifax 8/1/41, 8/4/41
War Department bulletins:
Gun (Lewis and Bren) successes against enemy

aircraft - 8/1/41

German pioneers - employment of - 8/4/41
Purchasing Mission:

Vesting order sales - 8/4/41

Federal Reserve Bank of New York statement
showing dollar disbursements, week ending
July 23, 1941

47

142,374

145
377

306,307

308

Shipping:

LaGuardia asks HMJr to take over guarding of all
ships in New York harbor - 8/4/41
a) Additional personnel discussed

302
303

- W - (Continued)
Book

Page

427

229

War Conditions (Continued)
China:

Hong Kong: Inclusion in sterling area for

foreign exchange control purposes - 8/2/41
Fox report - 8/4/41
Exchange market resume' - 8/1/41, etc
Export Control:
Petroleum: Further regulation announced by
FDR - 8/1/41

Exports of petroleum products, scrap iron, and
scrap steel from United States to Japan,
Russia, Spain, and Great Britain, week
ending August 2, 1941
Foreign Funds Control:

Personnel to be investigated before being hired:
HMJr tells Foley - 8/4/41
a) Conference; present: HMJr, Gaston,
Pehle, Foley, and Thompson - 8/4/41

362

140,234,372

89

325

274
283

France:

Free French supplies discussed by Cox and HMJr 8/1/41

Iceland:
General resume' - 8/2/41
India:

4,35
201

Lend-Lease inclusion of discussed in State
Department correspondence - 8/2/41

168

Inflation:

Prevention by increased purchase of Government
bonds (deferred income plan) discussed in
Eddy and Neisser memoranda - 8/1/41

101

Lend-Lease:

Purchases - weekly report - 8/1/41
Military Planning:
Reports from London transmitted by Halifax 8/1/41, 8/4/41

War Department bulletins:
Gun (Lewis and Bren) successes against enemy

aircraft - 8/1/41

German pioneers - employment of - 8/4/41
Purchasing Mission:

Vesting order sales - 8/4/41

Federal Reserve Bank of New York statement
showing dollar disbursements, week ending
July 23, 1941

47

142,374

145
377

306,307

308

Shipping:

LaGuardia asks HMJr to take over guarding of all
ships in New York harbor - 8/4/41
a) Additional personnel discussed

302
303

- W - (Continued)
Book

Page

War Conditions (Continued)
U.S.S.R.

Fall of Leningrad, Moscow, Smolensk, and
Odessa before September 1 predicted by Knox 427

8/1/41

18

Military mission calls on HMJr; expresses

dissatisfaction at slowness of action in

Washington - 8/1/41
a) HMJr asks Cox to see them - 8/1/41
1) Wayne Coy instructed by FDR to

rush help: Cox tells HMJr - 8/4/41.

60

62

276

2) Conference; present: HMJr, Coy, Cox,
Colonel Famonville, and Kamarck 8/5/41: See Book 428, page 52

3) Coy's cable to FDR - 8/6/41:
Book 430, page 227
United Kingdom:

Production: Debate in House of Commons - 8/1/41.
Wool: Reserve supplies to be made available through
Reconstruction Finance Corporation discussed in

118

directive from FDR, letter from Reconstruction
Finance Corporation to Treasury, letters from
Treasury to Director of Budget and Reconstruction
Finance Corporation, and Halifax-State Department
correspondence - 8/1/41

Wool

See War Conditions

91

1

TREASURY DEPARTMENT

FOR RELEASE, LORNING NEWSPAPERS,

Friday, August 1, 1941.

The Secretary of the Treasury, by this public notice, invites
tenders for $100,000,000, or thereabouts, of 91-day Treasury bills,
to be issued on a discount basis under competitive bidding. The bills

of this series will be dated August 6, 1941, and will mature
November 5, 1941, when the face amount will be payable without inter-

est. They will be issued in bearer form only, and in denominations
of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000

(maturity value).
Tenders will be received at Federal Reserve Banks and Branches

up to the closing hour, two o'clock p.m., Eastern Standard time,
Monday, August 4, 1941. Tenders will not be received at the Treasury
Department, Washington. Each tender must be for an even multiple of

1, 000, and the price offered must be expressed on the basis of 100,

with not more than three decimals, e.g., 99.925. Fractions may not
be used. It is urged that tenders be made on the printed forms and
forwarded in the special envelopes which will be supplied by
Federal Reserve Banks or Branches on application therefor.

Tenders will be received without deposit from incorporated banks
and trust companies and from responsible and recognized dealers in
investment securities. Tenders from others must be accompanied by

payment of 10 percent of the face amount of Treasury bills applied
for, unless the tenders are accompanied by an express guaranty of
payment by an incorporated bank or trust company.
26-81

2

-2Immediately after the closing hour, tenders kill be opened at
the Federal Reserve Banks and Branches, following which public

announcement will be made by the Secretary of the Treasury of the
amount and price range of accepted bids. Those submitting tenders

will be advised of the acceptance or rejection thereof. The
Secretary of the Treasury expressly reserves the right to accept or

reject any or all tenders, in whole or in part, and his action in
any such respect shall be final. Payment of accepted tenders at the
prices offered must be made or completed at the Federal Reserve Bank

in cash or other immediately available funds on August 6, 1941.

The income derived from Treasury bills, whether interest or gain

from the sale or other disposition of the bills, shall not have any
exemption, as such, and loss from the sale or other disposition of
Treasury bills shall not have any special treatment, as such, under

Federal tax Acts now or hereafter enacted. The bills shall bc sub-

ject to estate, inheritance, gift, or other excise taxes, whether
Federal or State, but shall be except from all taxation now or
hereafter imposed on the principal or interest thereof by any State,
or any of the possessions of the United States, or by any local

taxing authority. For purposes of taxation the amount of discount
at which Treasury bills are originally sold by the United States
shall be considered to be interest.

-3Treasury Department Circular No. 418, as amended, and this

notice, prescribe the terms of the Treasury bills and govern the

conditions of their issue. Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.
-000-

3

3-A
TREASURY DEPARTMENT

Washington
FOR RELEASE, LORNING newspapers,

Friday, August 1, 1941.

Press Service
No. 26-84

7/31/41.

Secretary Lorgenthau today announced the final details with

respect to the two tax series of Treasury notes which go on sale this
Lorning at the Federal Reserve Banks. The Series A-1943 notes, in
the denominations of $25, $50 and $100, provide a return of about

1.02 percent a year, are designed to be attractive to the small taxpayer, and their presentation in payment of income taxes will be
limited to $1,200 from any taxpayer in any one tax year. The Series
B-1943 notes will be issued in denorinations of $100, $500, $1,000,
$10,000 and $100,000, will provide a return of about 0.40 percent a
year, and the amount of these notes which may be presented in pay-

ment of taxes vill be limited only by the amount of taxes due.
The owner's name and address, and the date of issue, will be

entered on each note at the tire of its issue by 3. Federal Reserve
Bank. The month in which payment is received by a Federal Reserve

Bank or Branch, or by the Treasurer of the United States, will
determine the purchase price and issue date of each note. Particular

attention is called to the fact that checks or other remittances not
immediately available should be received by a Federal Reserve Bank

or Branch, or by the Treasurer of the United States, in time to be
cleared and the funds actually available to the Tressury before the
end of a month in order to got that month's dating.

3-B
-2-

These notes are being offer a for sale to taxpayers for their
convenience in setting aside regularly the funds which will be
required to meet the unprecedented taxes they will pay next year

on this year's income. The interest earned on those notes, which

will be credited with the principal in payment of income tax lia-

bility, is expected to be attractivo to taxpayers generally. For
this reason many will doubtless purchase an amount of notes suffic-

ient to meet the estimated tax liability for the next two years, or
as much thereof as their means will permit, since the notes bear
interest to August 1, 1943, unless sooner redeemed. The notes will
be acceptable in payment of any Federal income taxes at any time
commencing with the third month after the month of purchase, but

not before January 1, 1942. If not presented in payment of income
taxes, they can be redeemed at the Federal Reserve Bank of issue
for cash, in the case of Series A-1943 notes without advance notice,
and in the case of Series B-1943 notes after 30 days from the date
of issue and on 30 days advance notice. Such P coecmption will be

at the purchase price paid for the notes. In oth.r words, the taxpayer, in this case, gets back just the amount he paid for the
notes and no more.

The official circular is attached.

3-C
THE UNITED STATES OF AMERICA

TREASURY NOTES
Tax Series B-1943

Tax Series A-1943
Dated August 1, 1941

Due August 1, 1943

Issued at Par and Accrued Interest
Acceptable at Par and Accrued Interest in Payment of Federal Income Taxes
1941

TREASURY DEPARTMENT,

Department Circular No. 667

OFFICE OF THE SECRETARY,

Washington, July 22, 1941.

Fiscal Service

Bureau of the Public Debt

I. OFFERING OF NOTES

1. The Secretary of the Treasury, pursuant to the authority of the Second Liberty Bond Act,
as amended, offers for sale, to the people of the United States, through the Federal Reserve Banks, at
par and accrued interest, two issues of nontransferable notes of the United States, designated Treas-

ury Notes of Tax Series A-1943, and Treasury Notes of Tax Series B-1943. As hereinafter provided, the notes of both series will be acceptable at par and accrued interest in payment of Federal
income taxes: Provided, however, that not exceeding $1,200 principal amount of notes of Tax Series
A-1943, and the accrued interest thereon, will be accepted from any one owner in any period of
twelve consecutive months in payment of taxes due from such owner. If not presented in payment
of taxes, the notes will be redeemable at the purchase price as hereinafter provided.

2. Descriptions of the notes of both series, and their terms are hereinafter fully set forth.
The notes will be placed on sale beginning August 1, 1941, and the sale will continue until December
31, 1941, unless earlier terminated, as to either or both series, by the Secretary of the Treasury.
II. DESCRIPTION OF NOTES

1. General.-The notes of both series will be dated August 1, 1941, and will mature August
1, 1943. The owner's name and address, and the date of issue will be entered on each note at the
time of its issue by a Federal Reserve Bank. The month in which payment is received by a Federal
Reserve Bank or Branch, or by the Treasurer of the United States, will determine the purchase
price and issue date of each note. The notes may not be transferred. No hypothecation of the
notes on any account will be recognized by the Treasury Department, and they will not be accepted
to secure deposits of public money. Except as herein provided, the notes will be subject to the
general regulations of the Treasury Department, now or hereafter prescribed, governing bonds
and notes of the United States.
2. Denominations and interest.-The notes of Tax Series A-1943 will be issued in denominations of $25, $50, and $100, and interest thereon will accrue during each month after August 1941, in
the amount of 16 cents on each $100 principal amount, that is, 4 cents on each $25, 8 cents on each

$50, and 16 cents on each $100 denomination of note. The notes of Tax Series B-1943 will be
issued in denominations of $100, $500, $1,000, $10,000 and $100,000, and interest thereon will accrue

each month after August 1941, in the amount of 4 cents on each $100 principal amount, that is 4
cents on each $100, 20 cents on each $500, 40 cents on each $1,000, $4 on each $10,000, and $40
on each $100,000 denomination of note. In no case, however, shall interest accrue beyond the
month in which the note is presented in payment of taxes, or beyond its maturity. Exchanges of
authorized denominations of each series from higher to lower, but not from lower to higher, may
be arranged at the Federal Reserve Bank of issue.
3. Purchase price, and tax-payment value.-The notes of both series will be sold at par during
August 1941, and will be sold at par and accrued interest during each subsequent month while they
remain on sale, the purchase price for a note of any denomination of either series advancing each
month after August 1941, in the amount of one month's interest on that note. Tables, showing for
15-22497

2

each month from August 1941, to August 1943, for each denomination of each series, the principal
amount of the notes with accrued interest added, are appended to this circular. The total shown
for any denomination for any month-August through December 1941-while the notes remain on
sale, is the purchase price, or cost, of the note during that month. Also, the total shown for any
denomination for any month thereafter is the tax-payment value, or the amount at which the note
will be acceptable during that month in payment of Federal income taxes as herein provided.
4. Acceptability in payment of taxes.-The notes of both series (but not more than $1,200 principal amount of notes of Tax Series A-1943 from any one owner in any period of twelve consecutive
months) will be acceptable, at par and accrued interest, in payment of Federal income taxes (current and back personal and corporation taxes, and excess-profits taxes). The conditions of presentation, surrender and acceptance of the notes in payment of such taxes are set forth in Section IV of
this circular.

5. Payment or redemption for notes of either series may not be called by the Secretary of the Treasury for redemption prior to maturity. If such notes are not presented in payment

of taxes: (1) they will be payable at maturity, or (2) they will be redeemable prior to maturity,
at the owner's option and request, as hereinafter provided in Section V and in either case payment
will be made only at the price paid for the notes.
6. Taxation.-Income derived from the notes shall be subject to all Federal taxes, now or hereafter imposed. The notes shall be subject to estate, inheritance, gift or other excise taxes, whether
Federal or State, but shall be exempt from all taxation now or hereafter imposed on the principal or
interest thereof by any State, or any of the possessions of the United States, or by any local taxing
authority.
III. PURCHASE OF NOTES

1. Applications and payment.-Applications will be received by the Federal Reserve Banks and
Branches, and by the Treasurer of the United States, Washington, D. Banking institutions generally may submit applications for account of customers, but only the Federal Reserve Banks and
the Treasurer of the United States are authorized to act as official agencies. Every application must
be accompanied by payment in full, at par and accrued interest to the month in which payment is
received by a Federal Reserve Bank or Branch, or the Treasurer of the United States. Any form
of exchange, including personal checks, will be accepted subject to collection, and should be drawn
to the order of the Federal Reserve Bank or of the Treasurer of the United States, as the case may
be. Any depositary, qualified pursuant to the provisions of Treasury Department Circular No. 92
(revised February 23, 1932, as supplemented) will be permitted to make payment by credit for notes
applied for on behalf of itself or its customers up to any amount for which it shall be qualified in
excess of existing deposits.

2. Reservations.-The Secretary of the Treasury reserves the right to reject any application in
whole or in part, and to refuse to issue or permit to be issued hereunder any notes in any case or in
any class or classes of cases if he deems such action to be in the public interest, and his action in any
such respect shall be final. If an application is rejected, in whole or in part, any payment received
therefor will be refunded. The Secretary of the Treasury, in his discretion, may designate agencies other than those herein provided for the sale of, or for the handling of applications for, Treasury

notes to be issued hereunder.

3. Delivery of notes.-Upon acceptance of full-paid applications, notes will be duly issued and,
unless delivered in person, will be delivered by registered mail within the Continental United States,
the Territories and Insular Possessions of the United States, the Canal Zone and the Philippine
Islands. No deliveries elsewhere will be made.

4. Form of application.-In applying for notes under this circular, care should be exercised to
specify whether those of Tax Series A-1943, or Tax Series B-1943 are desired, and there must be
furnished the name and address of the individual, corporation or other entity in which the notes are
to be issued; and if address for the delivery of the notes is different, appropriate instructions should
18-23497

8

be given. The name should be in the same form as that used in the Federal income tax return Ga
the purchaser. The use of an official application form is desirable, but not necessary. Appropriate
forms may be obtained on application to any Federal Reserve Bank or Branch, and banking insti
tutions generally will supply such forms.
IV. PRESENTATION IN PAYMENT OF TAXES

1. After three months from month of purchase (as shown by the date of issue on each note),
but not before January 1, 1942, during such time, and under such rules and regulations as the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, shall prescribe,
notes issued hereunder in the name of a taxpayer (individual, corporation, or other entity) may be
presented and surrendered by such taxpayer, his agent, or his estate, to the Collector of Internal
Revenue, to whom the tax return is made, and will be receivable by the Collector at par and accrued
interest from August 1941, to the month, inclusive (but no accrual beyond August 1943), in which
presented in payment of any Federal income taxes (current and back personal and corporation taxes,
and excess-profit taxes) assessed against the original purchaser or his estate, but not more than
$1,200 principal amount of notes of Tax Series A-1943, and the accrued interest thereon, may be
accepted by the Collector in any period of twelve consecutive months in payment of Federal income
taxes due from such owner. The notes must be forwarded to the Collector at the risk and expense of
the owner, and, for his protection, should be forwarded by registered mail, if not presented in person.
V. CASH REDEMPTION AT OR PRIOR TO MATURITY

1. General.-Any Treasury note of Tax Series A-1943 or Tax Series B-1943 will be redeemed
for cash at the purchase price at or before maturity. Notes of Tax Series A-1943 may be redeemed
before maturity without advance notice, but notes of Tax Series B-1943 may be redeemed before
maturity only after 60 days from date of issue and on 30 days' advance notice. The timely surrender of a note of Tax Series B-1943, bearing a properly executed request for payment, will be accepted as constituting the advance notice required hereunder.
2. Execution of request for payment.-The owner in whose name the note is inscribed must appear before one of the officers authorized by the Secretary of the Treasury to witness and certify requests for payment, establish his identity, and in the presence of such officer sign the request for
payment appearing on the back of the note, adding the address to which check is to be mailed.
After the request for payment has been so signed, the witnessing officer should complete and sign
the certificate provided for his use.
3. Officers authorized to witness and certify requests for payment.-Any officers authorized to
witness and certify requests for payment of United States Savings Bonds, as set forth in Treasury
Department Circular No. 530, Fourth Revision, as amended, are hereby authorized to witness and
certify requests for cash redemption of Treasury notes issued under this circular. Such officers
include United States postmasters, certain other post office officials, and the executive officers of all
banks and trust companies incorporated in the United States or its organized territories, including
officers at branches thereof who are certified to the Treasury Department as executive officers.

4. Presentation and surrender.-Notes bearing properly executed requests for payment must
be presented and surrendered to the Federal Reserve Bank of issue, at the expense and risk of the
owner. For the owner's protection, notes should be forwarded by registered mail, if not presented
in person.

5. Disability or death.-In case of the disability or death of the owner, and the notes are not to
be presented in payment of Federal income taxes due from his estate, instructions should be obtained
from the Federal Reserve Bank of issue before the request for payment is executed, or the notes
presented.

6. Partial redemption.-Partial cash redemption of notes of either series, corresponding to an
authorized denomination, may be made in the same manner, appropriate changes being made in the

request for payment. In case of partial redemption of a note, the remainder will be reissued with

the same date of issue as the note surrendered.

16-22497

4

7. Payment.-Payment of any note, either at maturity or on redemption before maturity, will
be made only by the Federal Reserve Bank that issued the note, and will be made by check drawn
to the order of the owner, and mailed to the address given in his request for payment. In any case,
payment will be made at the purchase price of the note, that is, at par and accrued interest (if any)
paid at the time of purchase.
VI. GENERAL PROVISIONS

1. Federal Reserve Banks, as fiscal agents of the United States, are authorized to perform
such services or acts as may be appropriate and necessary under the provisions of this circular, and
under any instructions given by the Secretary of the Treasury.
2. The Secretary of the Treasury may at any time or from time to time supplement or amend
the terms of this circular, or of any amendments or supplements thereto, and may at any time or
from time to time prescribe amendatory rules and regulations governing the offering of the notes,
information as to which will promptly be furnished to the Federal Reserve Banks.
HENRY MORGENTHAU, Jr.,
Secretary of the Treasury.
(Filed with the Division of the Federal Register, July 81, 1941)

16-29401

5

TREASURY NOTES-TAX SERIES A-1943
Purchase Price and Tax-Payment Value During Successive Months
Table, showing for each month from August 1941, to August 1943, for notes of each denomination, the principal

amount with accrued interest added. The total shown for any denomination, for any th-August through December
1941-while the notes remain on sale, is the Purchase Price, or Cost, of the note during that month. Also, the total shown
for any denomination for any month thereafter is the Tax-Payment Value, or the amount at which the note will be acceptable during that month in payment of Federal income taxes.
$50

$25

$100

PURCHASE PRICE
$25.00

August, 1941
September, 1941

25.04
25.08

October, 1941

November, 1941
December, 1941

$50.00

$100.00

50.08

100.16
100.32
100.48
100.64

50.1

25.12

50.2

25.16

50. 32

TAX-PAYMENT VALUE
$25.2

January, 1942
February, 1942

MARCH, 1942

50.

25.28

50.56
50.64
50.72

25.32

April, 1942
May, 1942

25.36

JUNE, 1942

July, 1942
August, 1942

SEPTEMBER, 1942
October, 1942
November, 1942

DECEMBER, 1942
January, 1943
February, 1943
MARCH. 1943

$50.

25.24

25. 40

50.8

25.44
25.48

50.88

101.76

50.96

25.

51.0

25.56

51.12

101.92
102.08
102.24

25.
25. 64

51.20

102. 40

51.28

102. 56

25.68
25.

51.36

102. 72

51.44

25.76

102.88
103.04
103.20

25.88

51.52
51.60
51.68
51.76

25.92

51.84

103. 52
103.

25.96

51.92

103.

25.80

April, 1943

25.

May 1943
JUNE, 1943
July, 1943
August, 1943

$100.8
100.96
101.12
101.28
101.44
101.60

103. 36

TREASURY NOTES-TAX SERIES B-1943
Purchase Price and Tax-Payment Value During Successive Months
Table, showing for each month from August 1941, to August 1943, for notes of each denomination, the principal amount
with accrued interest added. The total shown for any denomination, for any month-August through December 1941while the notes remain on sale, is the Purchase Price, or Cost, of the note during that month. Also, the total shown for
any denomination for any month thereafter is the Tax-Payment Value, or the amount at which the note will be acceptable
during that month in payment of Federal income taxes.
$100

$1,000

$500

$10,000

$100,000

PURCHASE PRICE
August, 1941
September, 1941
October, 1941
November, 1941
December, 1941

$100.00
100.04

$500.00

500.20

$1,000.00
1,000.40

$10,000
10,004
10,008
10,012
10,016

100.08

500.40

100.12

500.60

1,000.80
1,001.20

100.

500.8

1,001.60

$100,000
100,040
100,080
100,120
100,160

TAX-PAYMENT VALUE
$100.2

January, 1942

$501.0
501.20
501.40

$1, 002 00
1, 003. 20
1, 003. 60

1, 002. 40

$10,020
10,024

February, 1942

100.24
100.28

April, 1942
May, 1942

100.

501.60

100.

501.80

100. 40
100. 44
100. 48
100. 52
100. 56
100. 60
100. 64

502.00
502.20
502.40
502.80
503.00
503.20

1,004.80
1,005.20
1, 005.
1,006.00
1,006.40

100 68

503. 40

006.8

10,068

100. 72

503.60
503.
504.
504.20

1,007.20

MARCH, 1942

JUNE, 1942
July, 1942
August, 1942

SEPTEMBER, 1942
October, 1942

November, 1942
DECEMBER, 1942
January, 1943
February, 1943
MARCH. 1943
April, 1943

100.

100. 80

100.84
100.88

May, 1943

JUNE. 1943
July, 1943
August, 1943
PRINTING

502.

100.9

504.
504.

100.96

504.80
10-23407

1,002.80
1,004.00
1, 004.

10,028
10,032
10,036
10,040
10,044
10,048
10,052

10,056
10,060
10,064

1,008.00

10,072
10,076
10,080

1,008.40
1,008.80

10,084
10,088

1,009.20
1,009.60

10,092

007.6

10,096

$100,200
100,240
100,280
100,320
100,360
100,400
100,440
100,480
100,520
100,560
100,600
100,640
100,680
100,720
100,760
100,
100,

100,880
100,920
100,960

4

August 1, 1941
9:23 a.m.
HMJr:

Hello.

Operator:

Mr. Cox

HMJr:

Hello.

Oscar
Cox:

Hello, Mr. Secretary.

HMJr:

How are you feeling?

C:

Pretty good.

HMJr:

Good. Oscar, what's going on for my friend,
Pleven?

We sent over one requisition to the President
for his signature on stuff to equip boats for
the use of the Free French.

C:

HMJr:

Yes.

C:

And also, we're going to put through one
for some trucks.

HMJr:

One what?

C:

One for some trucks.

HMJr:

Yes.

C:

Policy determined. And I'll let you know
as soon as any development takes place on
them. I think the one on the boats has
probably been signed already.

HMJr:

Oh, really? Well, just as soon as you find

C:

I certainly will.

HMJr:

That's number one; and number two, Kamarck's

C:

Famonville?

out, will you let me know?

in contact with this Major

5

-2How'd you ever get hold of him?

HMJr:

Yeah.

C:

Well, we suggested to the General that he
ought to get somebody who knew something
about Russia.

HMJr:

Yeah.

C:

And 80 he scouted out in the Army and found

that this fellow who had been Attache over
there not only knew Russian, but was good.

HMJr:
C:

HMJr:

General Burns did?

Yeah. He's a good fellow, Famonville is.
Oh yes, you know that the - I understand that
the State Department had him withdrawn from

Russia.
C:

Yeah. Yeah, he's very sympathetic and he's
very smart.

HMJr:

Yeah.

C:

You probably will have to get into that thing

HMJr:

C:

at some later date.

Well, Oumansky's bringing this Russian man
that sounds like a - name like a mouth-wash over here at eleven.

Yeah. Purvis says he's a very competent guy,
this Russian.

HMJr:

C:

Yeah. Are you fellows going to do anything
for them?

Well, we're trying, but the Army and the Navy
don't want to give up anything.

HMJr:

Oh, for God'a sake!

C:

The same old problem.

HMJr:

Well, did they get any of those Curtiss P-40's
that were in England?

6

- -3 C:

The President has ordered them gotten, but
they haven't gotten them yet, and also a

squadron of aircraft out of the Army.

HMJr:

You mean to say those boxed planes, supposedly

boxed in England, that they haven't got those

yet?
C:

That's right. They're allocated, but they

haven't gotten them.
HMJr:

C:

HMJr:

Well, what're they going to do? Wait until
winter comes?

Gee, I hope not. But
But that - the impression I got - ten days ago

the President was under the impression that he

got them.
C:

Yeah, I know he was, but they still haven't
gotten them yet.

HMJr:

Have they got anything?

C:

No.

HMJr:

They haven't got anything?

C:

No. They've got a lot of stuff promised,
but they haven't gotten anything yet.

HMJr:

Well, I'll be damned.

C:

Look, can I send you a memorandum I got up
for Wayne Coy?

HMJr:

On what?

C:

On suggesting some change in this defense

setup 80 that you can get problems like that

disposed of?
HMJr:

Sure.

C:

Because I think they run into them and it wastes

7

-4so much of the President's time
HMJr:

Sure.

and it doesn't make any sense.

C:

HMJr:

Have you read July 28, "The Mirage of Production",
by Michael Strait?

C:

Yes, sir.

HMJr:

You have?

C:

Yeah.

HMJr:

Okay.

C:

Have you seen this issue of Fortune that's
coming out?

HMJr:
C:

HMJr:
C:

No.

Well, it's all on the defense program. A lot
of it's on the same stuff.
I see. Critical?
Critical, but favorable, generally, to the
President. Critical of OPM and that kind
of thing.

HMJr:

Okay.

C:

Right.

HMJr:

Good-bye.

C:

Good-bye.

8

August 1, 1941
9:28 a.m.
HMJr:

Operator:
Grace

Tully:

Hello. Hello.
I'll have her in just a minute.
Mr. Secretary, I got through to the big
man.

HMJr:

Wonderful!

T:

And the big man says he will call Sam
right away.

HMJr:

Wonderful.

T:

So I think that's taken care of.

HMJr:

What a girl!

T:

(Laughs)

HMJr:

All right.

T:

All right, sir. I'll - when I see the

President this morning, we'll see what

happened on that
HMJr:

Yeah.

and what they decided, and then I'll

T:

let you know.
HMJr:

Right.

T:

All right. Grand, sir.

HMJr:

Thank you.

T:

All right. Good-bye.

9

August 1, 1941
9:30 a.m.
HMJr:

Hello.

Operator:

Here's Miss Tully again.

HMJr:

Thanks.

Operator:

Go ahead.

HMJr:

Hello.

Grace

Tully:

Hello.

HMJr:

Yes.

T:

Mr. Secretary, our records show that he did
not speak to the Speaker last night, so my
agent must have forgotten to remind him.

HMJr:

I see.

T:

I tell you what I can do. I can see if I
can get through to the boss this morning
and ask him if he wants you to call the
Speaker and explain.

HMJr:

All right. Good.

T:

Want me to call you back?

HMJr:

Wonderful.

T:

All right. I'll ask him if he'd like you

HMJr:

to do that job. Maybe he doesn't have time
this morning to speak to the Speaker, but if
you'd do it, why that would be grand.
Right. And may I say in all seriousness,
I really tremendously appreciate the services
that you're giving me.

T:

Well, you're very welcome.

HMJr:

No, I want to say this, that in the eight

10

-2years I've been here, nobody's taken 88 good
care of me.

T:

Well, thank you very much, Mr. Secretary.

HMJr:

Thank you.

T:

And I'll call you back just as soon as I

HMJr:

Thank you.

T:

Look. Would you flash my operator again? I

get through to the boss.

HMJr:

can't do it through my apartment house here.
Just a minute.

T:

Right.

HMJr:

Just a minute.
Hello.

Operator:

Yes, sir.

HMJr:

Miss Tully wants the White House.

Operator:

Yes, sir.

HMJr:

Miss Tully wants the White House.

11

August 1, 1941
9:45 a.m.
HMJr:

Secretary
to Senator

Hello.

Walsh:

Yes, Mr. Morgenthau.

HMJr:

Look. I got your message about Senator
Walsh.

S:

Yes, sir.

HMJr:

Here's my trouble. I have Cabinet this

S:

Yes, sir.

HMJr:
S:

HMJr:
S:

afternoon at two.

And I leave right after that to go home.
Yes, sir.
But I'm free from now until twelve o'clock.
Until twelve o'clock.

HMJr:

Is there any way of getting UB together?

S:

I think there is, sir. He - the Senator

has gone to the Navy Department, and I can
reach him there and he can probably see you

immediately after he gets through at the
Navy Department, which will probably be

about half past ten or 80.

HMJr:

Well

S:

I'll have him call you, sir, from the

Navy Department.
HMJr:

Would you do that, because I really would
like to see him this morning.

S:

Yes, sir.

HMJr:

I'd be glad to come up on the Hill.

11

August 1, 1941
9:45 a.m.
HMJr:

Secretary
to Senator

Hello.

Walsh:

Yes, Mr. Morgenthau.

HMJr:

Look. I got your message about Senator
Walsh.

S:

Yes, sir.

HMJr:

Here's my trouble. I have Cabinet this

S:

Yes, sir.

HMJr:

And I leave right after that to go home.

S:

Yes, sir.

afternoon at two.

S:

But I'm free from now until twelve o'clock.
Until twelve o'clock.

HMJr:

Is there any way of getting us together?

S:

I think there is, sir. He - the Senator

HMJr:

has gone to the Navy Department, and I can
reach him there and he can probably see you

immediately after he gets through at the
Navy Department, which will probably be
about half past ten or so.

HMJr:

Well

S:

I'11 have him call you, sir, from the

Navy Department.
HMJr:

Would you do that, because I really would
like to see him this morning.

S:

Yes, sir.

HMJr:

I'd be glad to come up on the Hill.

12

-2S:

Oh no, because he'11 be down there, sir. He

HMJr:

Could you reach him there, then?

S:

Yes, sir.

HMJr:
S:

can go right to your office.

And then I'll wait until I hear from him.
All right, Mr. Morgenthau.

HMJr:

Thank you.

S:

Yes, sir.

13
August 1, 1941
9:47 a.m.
Dean

Acheson:

Hello.

HMJr:

I called and spoke to Sumner Welles yesterday
to tell him how delighted I am how this committee of yourself and Foley and Shea has
been operating.

A:

Well, you're very good. He - Sumner called

HMJr:

Yes.

me in last night

A:

and said that you had spoken to him,
and that he assumed that this had something
remotely to do with my activities and that
I was to be commended about it.

HMJr:

(Laughs) Well

A:

And I said, "Not at all. It was just everybody's work together on it. #

HMJr:

Well, that was what I hoped he'd do, but I

A:

Yeah, he did.

HMJr:

And

A:

That was very nice.

HMJr:

It's the best liaison we've ever had with

didn't know whether he would or not.

the State Department.

A:

HMJr:

Well, fine, Henry. I'm going to try and
keep it that way and improve it.
Well, it won't be difficult; and Welles seemed
very much pleased, too, 80

A:

Well, that's fine. I had a long talk with
Frank Shea yesterday.

HMJr:

Yeah.

14

-2A:

Apparently Biddle had spoken to him, and

he came to me and asked me whether I would

be very frank with him and tell him whether
I thought that he had been difficult.

HMJr:
A:

HMJr:
A:

Yeah.

And I said, well, if he wanted me to be very
frank, the only thing that I could say was
that I thought he had.
Yeah.

And I didn't think it was necessary and I
couldn't understand what the continual row
that he was trying to bring up, was, what
it amounted to. It just didn't seem to me
to be anything.

HMJr:

Yeah.

A:

So we had sort of a heart-to-heart talk about

HMJr:

Uh huh.

this

and he said he didn't mean to be diffi-

A:

cult....

HMJr:

Yeah.

and he was talking to reform. (Laughs)

A:

HMJr:
A:

Splendid.

Then he said that some time ago he'd asked
me to write a memorandum about my conversation

with you when we started this thing, and he

HMJr:
A:

Yeah.

.....and the only thing I could think of was
that this would be used for controversial

#

asked me if I had done it. And I said, "Well,
I had started to do it, and then I began to
think what in the world I was doing it for

15

-3purposes, so I tore it up and I said, "I'm

not writing any memoranda about my conversations with anybody. #
HMJr:

Oh.

A:

So we've just got to all get along together.

HMJr:

Good. All right. Hope to see you soon.

A:

Fine, Henry. Thank you very much.

I think he'11 be much better.

16

August 1, 1941
9:55 a.m.
GROUP MEETING

Present:

Miss Chauncey

Mr. Foley
Mr. Viner
Mr. Thompson

Mr. Cochran
Mr. White
Mr. Gaston

Mr. Sullivan
Mr. Blough

Mr. Schwarz
Mr. Kuhn
Mr. Graves

Mr. Bell

Mr. Odegard

H.M.Jr:

Good morning, everybody. The only thing I

have got, Harold, here, to follow up, is

Gardner Jackson't call about the meat butchers'

wanting to give us a million and a half.
Graves:

I turned that over last night to Mr. Houghteling, who already knew all about it, and he is
going to arrange for those people to come in
and see you some day next week.

(Mr. Bell entered the conference.)
H.M.Jr:

Mr. Gaston?

Gaston:

Harold spoke to me about Jesse Jones' getting
some space at Number Two Park Avenue.

H.M.Jr:

At a dollar thirty, sixty day cancellation

clause.

17

-2Gaston:

Well, our situation is that after I went up to

New York last week we rejected all the bids
we had because none of them were fully consis-

tent with our proposal. They weren't contiguous space. If we were going to take non-

contiguous space, there were some other buildings that should have had an opportunity to
bid, but we are putting out new proposals and
new bids have come in on the thing, and we
haven't sized them up yet. The cheapest space

was about that dollar thirty figure, on the
offers we got, but it was pretty bad space.

H.M.Jr:

Well, you might take a look at Number Two
Park Avenue, and the President doesn't want

us to tie up for any length of time. Those
are orders.

Gaston:

Would that mean --

H.M.Jr:

Sixty day cancellation clause.

Gaston:

Sixty day cancellation?

H.M.Jr:

Yes.

(Mr. Odegard entered the conference.)
Gaston:

All right. We asked for space in buildings

below Chambers Street, so we couldn't consider
Number Two Park Avenue.

H.M.Jr:

How many thousand feet do you want?

Gaston:

About seventy thousand.

H.M.Jr:

I said sixty, that is pretty close.

Gaston:

Pretty close, yes.

H.M.Jr:

I was fifty per cent right, Ed. I wrote it out
and forgot to tell you.

18

-3Foley:

Oh.

Gaston:

Well, I will take a look at that place.

H.M.Jr:

I don't know whose it is. It is Thirty-fourth
Street. He doesn't say --

Gaston:

No, no, not under the new numbering. They are
way down at Twenty-third Street.

H.M.Jr:

Want to make a bet?

Gaston:

The old numbering was Number One Park Avenue

Whose building is that, do you know?

at the corner of Thirty-fourth Street, but

that was changed by city ordinance. They moved
the lower numbers way down. This may be old
Number Two, but it wouldn't be Number Two now.

H.M.Jr:

I won't argue.

Foley:

It used to be right across from the Vanderbilt
Hotel. I made a good bet last night with
Frank Knox. Ten dollars. He named the amount
and the conditions. He said that before the
first of September that Leningrad, Moscow,

Smolensk and Odessa would fall.
White:

I would like to take nine dollars of that.

Gaston:

By when?

H.M.Jr:

Before the first of September. Ten dollars.
How much do you want?

White:

Nine.

Gaston:

Which way?

H.M.Jr:

Why are you so conservative?

19

-4White:

I want to leave you a buck.

Sullivan:

I would like to lose eight dollars. I will

White:

give you nine on that.
Make it ten.

Viner:

All four will fall?

H.M.Jr:

All four.

Viner:

That is not a way to make a good bet. He
ought to say three out of those four, because
they may not want one of those. (Laughter)

H.M.Jr:

I thought it was interesting. You (Sullivan)

Sullivan:

I already have.

H.M.Jr:

How much?

Sullivan:

Ten with each of us.

H.M.Jr:

Same bet?

White:

No, an additional bet.

Sullivan:

That is right.

White:

Anybody else want to lose any money?

Sullivan:

I want to lose that bet, I will tell you.

H.M.Jr:

You don't want to bet with me?

Sullivan:

Yes.

H.M.Jr:

Crowding you a little bit?

Sullivan:

Not crowding me. Nobody can crowd me. I stop

want to bet on Frank Knox's set-up?

when I have got enough. I will take another
ten. Do you want another ten?

20

-5H.M.Jr:

Yes.

Sullivan:

All right, you have got it.

H.M.Jr:

No, it isn't fair.

Sullivan:

Why not?

H.M.Jr:

It is too much. Twenty dollars is plenty.
I will get a thousand dollars' worth of satisfaction out of winning it from Frank Knox.

White:

You will get much more out of John. You will

H.M.Jr:

That is why I say it isn't fair. He is up

never let him forget it.

against the two of you, and it is enough.

White:

That is about right odds. (Laughter)

H.M.Jr:

What were you saying?

Odegard:

I just wanted to ask if these losses and gains

were taxable on the one hand, and deductible
on the other.

Bell:

They are taxable, but they are not deductible.

Sullivan:

The losses are deductible only up to the point
of your gains, and you be sure you report your
gains.

Odegard:

I was worried about you, John.

H.M.Jr:

Herbert?

Gaston:

I was going to say, about this cancellation
clause, we could put that in, but it costs
just about as much for alterations in the
space we take as a year's rent, just about,
because our stuff is so badly cut up.

21

-6H.M.Jr:

Well, this is what he wants.

Gaston:

Yes, right.

H.M.Jr:

He has a reason.

Gaston:

Yes.

H.M.Jr:

All right?

Gaston:

Yes, all right.

Foley:

When I spoke to the Russian Ambassador, he

wanted to know if we had drafts of those

notes by eleven o'clock. I told him, "I
don't know."

Gaston:

To interrupt, the Russian Ambassador wants

H.M.Jr:

This isn't the one that is in the Baltic,
is it?

Gaston:

No, she is in the Bering. She is in the -

you to know that he has offered to lend us
the icebreaker Krassin for eight months.

around Bering Straits right now.

H.M.Jr:

Going to lend it to us?

Gaston:

For eight months. Of course, she badly needs
dry docking, and they have got no place to

dry dock it and they won't need it until the

first of April.

H.M.Jr:

Can we use it?

Gaston:

I think there is a possibility if we can get
it through in time It might be some use off

the east coast of Greenland, but I am not sure.
For any spring work on the west coast, of

course, the first of April is just about the

22

-7-

time when this deal would expire, just about
the time we need it, but there might be a

chance to do some work with it in September,

which is only - I am a little doubtful whether
she could be gotten then.

H.M.Jr:

Their crew or our crew?

Gaston:

I assume our own crew. They said lend the
boat. I don't think we want a Russian crew

aboard. I don't think it is feasible, but

he just wanted you to know that.
H.M.Jr:

Thank you.

Foley:

I told him that we would have --

H.M.Jr:

No, no, it hurries me.

Foley:

Yes.

H.M.Jr:

And I want Welles to know about it.

Foley:

Yes, I know.

H.M.Jr:

Anything else?

Foley:

This Tatuta Maru is in a first class mess out

H.M.Jr:

Anything more than what you --

Foley:

Yes, there are seven or eight libels attached.
The marshals are on board and she is still

in San Francisco.

there. I was trying to get hold of Dean.
Gaston:

They weren't planning to leave until noon.

H.M.Jr:

Well, I am not - I mean, I am not interested

in the last minute. I mean, if she goes, all
right, and if she stays, let me know. You

23

-8might let me know before five minutes of two
where it stands.
Gaston:

Yes.

H.M.Jr:

When I go to Cabinet.

Gaston:

Yes.

H.M.Jr:

You might get me at five minutes of two.

Gaston:

We washed our hands of it.

H.M.Jr:

Where were you from around five to seven last
night, John?

Sullivan:

Well

H.M.Jr:

Because Mr. Doughton concentrated on me.

Sullivan:

I was in the office until about --

H.M.Jr:

About every five minutes he called me after

Sullivan:
H.M.Jr:

Sullivan:
H.M.Jr:

he got the letter.

.... quarter past six. I was home after that.

Last night?

Oh, yes. I am supposed to go up there on the
Hill but Senator Walsh was coming here at
nine and I sat here all morning waiting and
he went over to the Navy Department. He
was supposed to come over. I haven't been

able to get up on the Hill.
Well, he hasn't called me at all, sir.

Well, we will just sit. What should he do?
He can't reach the President. He can't do
this. What about publicity? It would be

terrible if it got out. I talked to Grace

Tully, and she talked to the President.

24

-9She called me. It was back and forth, back and

forth. The President wants to get it in the

papers and Doughton doesn't. My money is on
the President.
Gaston:

If Doughton can keep the news to himself alone --

H.M.Jr:

I think you will see it will begin to leak
shortly. That is the latest report. Not
from Treasury though. I have got nothing to
do with it. He talked very nice to me, still,
very friendly like. He said that three times -every time I would say, "Yes," he would say,

"What is that you said?" I would say, "Yes".
"Why don't you answer me?" "Yes." "I can't
hear you." It was a wonderful conversation.
(Laughter)

Sullivan:

Yesterday afternoon up on the Hill of course
they didn't know anything about this thing

and they were all telling me if the Secretary
doesn't get a strong statement in favor of
this thing up here, this is going to be licked.

H.M.Jr:

Well, Mr. Roosevelt is handling it personally,
so we will see what happens.

Sullivan:

We just have nothing to say about anything.

H.M.Jr:

No, how can I tell Robert Doughton what he
should do between himself and the President?

The President won't talk to him. We will

just sit.

Sullivan:

If it is put up to us whether we inspired this
or not, like the last time --

H.M.Jr:

You were out on the golf links, just tell them

Sullivan:

Well, they know that Dan and Ed and I were there'

that.

Thursday afternoon.

25

- 10 H.M.Jr:

Then say Dan inspired it.

Bell:

O.K.

H.M.Jr:

No, you don't know anything.

Cochran:

That message we received last night at six
thirty from London gave about the assurances
I think you wanted on the distribution and
so on of Lend-Lease goods.

H.M.Jr:

Did you send it to me?

Cochran:

Yes, sir.

H.M.Jr:

I read everything you sent to me.

Cochran:

This was the last one that came last night.

H.M.Jr:

What was that? I read them all.

Cochran:

That is this one.

H.M.Jr:

Thank you. Do you circularize these?

Cochran:

Oh, yes. That is being circularized this
morning, copies of it.

H.M.Jr:

It is all right, isn't it?

Cochran:

I thought it was.

H.M.Jr:

Well, circularize it and I will take it up to

Cochran:

That I gave you last night, too.

H.M.Jr:

Well, get Section One and I will take the stuff

Cochran:

Coyne sent me --

the country and read it. Where is Section One?

with me to the country.

26

- 11 H.M.Jr:

What?

Cochran:

Coyne sent me a complete series of the
Canadian Victory Bond documents.

H.M.Jr:

Oh, I would like that. Well, Bell gets
copies and Foley and White.

Cochran:

Of this too?

H.M.Jr:

Sure.

Cochran:

Oh, that is all right. And I sent copies to
Phil Young also.

H.M.Jr:

That is a good heading. Have you seen this?

Cochran:

No.

H.M.Jr:

Professor Viner, we are all balled up this

"Canada must borrow for victory." I will take
this home and look at it. Anything else?

morning with troubles, so pending when I
hear from Senator Walsh and the Russian

Ambassador bringing in General Hair Tonic at

eleven o'clock -- (Laughter). That is as near
as I can come to pronouncing it. You
pronounce it.

Foley:

Goliakoff.

H.M.Jr:

He is a first cousin of the economic adviser
to Mr. Hull, Mr. Pasvolsky.

Foley:

Same thing, a slippery name.

H.M.Jr:

So we will see, Jake, how we get along.

If you will stay behind pending when I hear
from the great Senator Walsh. Roy?

Blough:

Harry Hamann in Foreign Funds and the Secret

Service wouldn't let him keep him because he
had a mother in Hungary. Would you have any

27

- 12 objections to my taking him over?
White:

He is an able man, and came very well recommended
from the SEC, where he had been working for

many years.
H.M.Jr:

He has got a mother in Hungary?

White:

Yes.

H.M.Jr:

What the hell has that got to do with it?

White:

Well, on the Foreign Funds the Secret Service

pointed out the possibility that he may be

subject to pressure and I think that in that

area we want to be extremely careful.
H.M.Jr:

Is he an American citizen?

White:

Yes. He has been here, I should imagine,

about fifteen years or something like that.

Buckley recommended him first to me, Young's

assistant, but in Taxes he wouldn't have access

to any of that material. He is going to have
him, I understand, on state taxes. I think
that is what you mentioned to me, Roy.

Blough:

Business and corporation taxes.

White:

That is right.

Blough:

We are a little bit on the spot on that, Mr.

Secretary, because I took him away from SEC

and we got their permission --

H.M.Jr:

Who is arguing that he shouldn't go?

Blough:

Just wanted to make sure that you had no object-

H.M.Jr:

Of course not. My God, it would be a pretty

ions.

mess. Did you consult Jimmie Dunn on it?

28

- 13 White:

Jimmie Dunn? No, I never thought of that.
That would be one way of keeping him, I should

think. (Laughter)

H.M.Jr:

All right. What else?

Blough:

For the members of the group, I have copies
of the Ways and Means Committee Report on

the tax bill, if they are sufficiently interested
in it. I will be glad to hand them out after
the meeting.

H.M.Jr:

I would do that, after the meeting.

Blough:

Would you care for one, Mr. Secretary?

H.M.Jr:

I would love one. What else? Ferdie?

Kuhn:

I have nothing.

H.M.Jr:

I am going to call Ferdie "Maestro" from now

Kuhn:

I have nothing.

H.M.Jr:

Mr. Lorenz all right?

Odegard:

So far as I know. He is still sober.

H.M.Jr:

Still sober? (Laughter) Is that something?

Odegard:

I think it would be impossible for him to be

H.M.Jr:

What else?

Odegard:

That is all.

Schwarz:

on.

otherwise.

I picked these up off Fitzgerald's desk (handing
clippings to Secretary).

29

- 14 H.M.Jr:

I don't think you have been quite the same since
you had that all night session with him.

Odegard:

I haven't.

H.M.Jr:

What else?

Schwarz:

That is all.

H.M.Jr:

Harry?

White:

I have nothing.

H.M.Jr:

Harold?

Graves:

I have nothing. I take it you don't want us

H.M.Jr:

No, I have got the Russians coming in. I

Graves:

I have nothing.

H.M.Jr:

Daniel?

Bell:

I wanted to give you this letter that Henderson

at eleven.

think we will just have to let it go.

wrote on the Executive Order to control consumer
credit (July 25, 1941). I merely acknowledged

it and said I would bring it to your attention.

H.M.Jr:

I will take it to the country.

White:

Mr. Secretary, I don't know whether there

would be any occasion in which you would want

to say anything about cotton, but I think that
that is an inexcusable step for them to hold
on to that cotton.

H.M.Jr:

I agree with you.

White:

That they have, and I understand, reading the
report and talking with MacDonald of the

30

- 15 Price Committee, Wickard took no action at all.
He wouldn't even see the President about it
and nobody else saw anybody -H.M.Jr:

Have you got the facts?

White:

H.M.Jr:

Well, that is what the - that fact, yes.
I mean for me to bring it up at Cabinet, I

Bell:

There is a bill introduced.

White:

The facts are that they are not going to sell
the cotton except at a higher price. They
are holding it for a higher price.

H.M.Jr:

Well, have you got any arguments for me?

White:

Oh, yes, very definitely.

H.M.Jr:

Can you give me a memo at five minutes of two?

White:

Let me try and see if it is good enough.

H.M.Jr:

All right.

Bell:

There is a bill introduced in Congress to

H.M.Jr:

It is terrible. I think it is terrible.

Bell:

would have to be about a hundred and one per
cent sure.

freeze the cotton and the wheat.

What els e?

This price control bill of Henderson's, I

understand, is going to be handled by the

Banking and Currency Committee and that you

will probably be called to testify. I have
a suspicion, before the thing gets through,
that it will go into the whole monetary field

about like the Wagner resolution contemplated.

31

- 16 H.M.Jr:

I see.

Bell:

That may be the reason why they haven't agreed

H.M.Jr:

Good.

Bell:

So that you may have to appear before those

upon it yet. I just have that suspicion, that
they are going to get into the whole monetary
field.

Committees before you go away.
H.M.Jr:

Are we buying much silver?

Cochran:

Not very much lately. Canada hasn't given
her full quota for some months.

H.M.Jr:

If a man is a manufacturer of silver in this
country he has got to use foreign silver,
hasn't he?

Cochran:

Yes.

White:

Well, he gets it for thirty-five cents an

Bell:

He has got to unless he wants to pay seventy-

White:

No domestic manufacturer would sell it --

H.M.Jr:

Unless he is crazy. What else?

Bell:

That is all.

Thompson:

The Executive Order establishing the Economic
Defense Board provides that members may desig-

ounce less.
one cents.

nate alternates.
H.M.Jr:

Bring it up Monday, please.

Sullivan:

Mr. Secretary, while we were discussing the

32

- 17 -

rubber taxes, it was brought to our attention
that although local rubber stocks are subject

to priorities and control, there is a British

organization in New York that is writing to
all these manufacturers telling them that
they have plenty of rubber and if there is if the manufacturer has any difficulty, to
get in touch with them, and they will be glad
to supply them. I think I ought to bring that
to the attention of OPM. If there is such a
shortage of rubber, I think they ought to
have a bid on those foreign stocks. They are
writing to all of the American manufacturers
and I have one of those letters.

H.M.Jr:

Do it.

Sullivan:

McLean of New Jersey turned it over to me.

H.M.Jr:

Dan, give me a thumbnail sketch of how the
publicity and promotion stands on these
taxpayers' notes of yours.

Bell:

My! Well, the official circular was released
this morning and it is contemplated that there
would be a certain amount of radio publicity.
I can't give you the details, but I have got
a memorandum of it. It would go pretty well
throughout the country in the next ten to
twelve days and after that the publicity will
stop.

H.M.Jr:

Will stop?

Bell:

Yes.

Now, maybe at the next month we ought to get

out another little statement as to what has
been done and that they will continue and the

new price, but that is about all that is contemplated.

33

- 18 H.M.Jr:

Well, let's see how they go and we can decide.

Schwarz:

I heard a spot announcement last night on the

radio. Not the regular news flash, but the
spot announcement.

Bell:

The radio is cooperating very well. There

will be some questions which will fit into

the Savings Bond question. You remember Callahan said he thought we were over-doing that a

little and he wanted to reduce it to three

days a week and that extra three days he would

take up in tax note questions.

H.M.Jr:

Yes. O.K.

Bell:

Apparently there are a lot of inquiries and
there is a good deal of interest. We are going to get a lot of money.

White:

There was a news item about having three mil-

lion dollars worth of gold, which is illegal.
I don't know whether somebody is doing some-

thing about it. Did you notice?

Foley:

Yes.

H.M.Jr:

O.K.

34

August 1, 1941
Files
Mr. Cochras

At the 3:15 Staff Meeting hold in the Secretary's office yesterday afterthe Secretary asked Mr. Graves to tell Mr. Mask that the Treasury Department
moon, to clear the requisitions of the British which have been held up pending a
was decision on the subject of lead-leasing goods to Great Britain which may be die-

tributed through private channels is such a way as to permit "prefiteering"
answer to the question which I raised at the meeting. the Secretary stated that
we In could "give the green light" not only for the requisitions now pending. but for
such similar requisitions that may be received before the Secretary has had as
opportunity to look into the question as it now stands, and take a definite decision
in the premises.

After the Staff Meeting this morning. Mr. Viner and I were discussing this
subject, and the question aress as to whether enyone had been instructed to let the

Lead-Lease people know of the decision which was takes yesterday. With Mr. Viner
present, I telephoned the Lend-Lease office. and speke with Mr. Cox, in the absence of
of Mr. Young. Mr. Cox had received se word is regard to the Secretary's meeting

afternoon. I made 11 clear to Mr. Goz that the Secretary still reserved

yesterday his position on the general question, but did not desire that any British requisitions to

be hold up in the mostine, issefer as the Treasury is concerned. I explained
Mr. Gox that I had given the Secretary a full set of the eablegrame fres Leades,
including the one received late last night setting forth the text of a British the stateIt was the Secretary's idea that he would study these documents ever

ment. weekend, and that we would have a meeting with the British on Tuesday of next week.

I also telephoned Mr. Graves and reported my conversation with Mr. Gox. with It

agreed that Mr. Graves would ask Mr. Neek or his assistant to get is touch is

Mr. was Cox is order that there would be no possible delay incofer as the treasury
with the licenses under reference. I gave Mr. Graves some background the
concerned information on the conversations which have taken place between the British,

Lead-Lease officials and the Treasury the past for days.

After this conversation, I telephoned Mr. Bewley, Financial Counseler Morgeather of the

British Nabasay, and told his to got in touch with Mr. Dox since Secretary taking care of

had now given a clearance, incefar as the Treasury is concerned, for week. I explained
the accusulation of requisitions which we have been discussing this question, and is
clearly that the Secretary 10 reserving his position on the general week, but that be

looking into 10 at once, with the idea of resolving 11 early next of the current
did not vest the Treasury to be is any way responsible for delaying Secretary's any helpful

British requisitions. Mr. Bewley was most appreciative of the is contacting Mr.
consideration, and said that he would get Mr. Archer busy at once be difficulty
I asked Mr. Bowley to let no know personally if there night any to have a
or Goz. delay. Furthermore, I let Mr. Bevley know that the Secretary hoped

AMA

meeting with the British at 3 o'clock on Tuesday sent.
HMC:dm:8/1/41

35
EXECUTIVE OFFICE OF THE PRESIDENT

OFFICE FOR EMERGENCY MANAGEMENT
WASHINGTON D.C.

August 1, 1941.

Dear Secretary Morgenthau:

1) On our telephone conversation of this
morning about lend-lease aid to the Free French:
The President signed the directive authorizing the
United Kingdom to re-transfer aid to the Free French.
For your information, I am enclosing a copy of the
directive.

2) For your confidential information, I am en-

closing a copy of a memorandum on setting up a Council

for Defense Policy. As I mentioned, it could do better
on the Russian situation than the present set-up.
Sincerely yours,

Oscar lot

Hon. Henry Morgenthau, Jr.,
Secretary of the Treasury,
Treasury Department,

Washington, D. C.
Enclosures

36

COPY

July 31, 1941.

My dear Mr. Purvis:

By my letter of June 13, 1941, I authorized the
Secretary of the Navy to transfer certain defense articles
to His Majesty's Government in the United Kingdom, among
them the following:
Quantity

Requisition Number
166

Articles - Description

64,110,000 ft.

DeGaussing Cable

By my letters of May 16, May 22, May 31, June 9, and
June 13, 1941, I authorized the Chairman of the Maritime Commission

to transfer certain defense articles to His Majesty's Government in
the United Kingdom, among them the following:
Quantity

Articles - Description

435,000 yards

Lead Covered DeGaussing

Requisition Number
382

382-A1

Cable for tankers various patterns and
sizes

382-A3

1000

Tanker Junction Boxes
Manifolds
Engine Room Switchboards
"COS 60" Ironclad Change-

200

Manifolds
"COS 30" Ironclad Change-

1500
250
50

510

510-A

over Switches for

over Switches for Fi and
Q1 Circuits.

32450

Glands for Armour Clamp

6,807,000 ft.

DeGaussing Cable - various
sizes and patterns

and Bulkhead

37

-2- -

Quantity

Requisition Number
602

2,500,000 ft.

DeGaussing Cable - various
sizes and patterns

960

Switch panels. Type "M".

602-A
758

Articles - Description

including one 100 amp.
ammeter

864,000 ft.

Casings and Covers - 5" x 7"

786

Various

DeGaussing Instrument Parts
(Fluxmeter)

1366

2,400,000 ft.

DeGaussing Cable - Various

sizes and Patterns

Pursuant to Section 4 of the Act of March 11, 1941,
entitled "An Act Further to Promote the Defense of the United
States, and for other purposes", I hereby authorize His
Majesty's Government in the United Kingdom to transfer such
quantities of those articles as it may deem necessary to the
French Volunteer Force (Free French).
Very sincerely yours,
FRANKLIN D. ROOSEVELT (Sgd.)

Hon. Arthur B. Purvis
Chairman, British Supply Council

in North America
Willard Hotel
Washington, D.C.

38

MEMORANDUM

July 31, 1941

TO:

The President

FROM:

Wayne Coy

SUBJECT: Council for Defense Policy.

1. In the light of the public talk about setting up
one man to run the defense program, you may want to consider two

alternatives which are likely to be more workable.

2. One alternative would be to expand the Office for
Emergency Management by the addition of a very few top-notch

staff people, without administrative or operating duties, who
would act as catalytic agents in getting policy questions presented for decision to you directly, or through Mr. Hopkins, in
the most time-saving manner.

3. The other alternative would be to appoint a Council
for Defense Policy, consisting of the Secretaries of War, Navy,
State and Treasury, the Vice President is suggested so that the Council
for Defense Policy can deal with the problem of coordinating the
interrelated problems of supply, economic defense and political and

39

-2military strategy. To conserve the time of the members of the Council
who are members of the Economic Defense Board, they will doubtless, and

should, designate alternates to sit on the subordinate Economic Defense
Board.

4. To make it workable, the Council for Defense Policy should

have its own small secretariat or executive staff, maintaining liaison
with all governmental agencies concerned with national defense. The

Office for Emergency Management, or a similar staff, could do this ser-

vice job. The Secretariat at the direction of the Board, or on its
own initiative, could strip the policy issues for decision, and buttress
them with the facts necessary for decision and execution.
5. The Council for Defense Policy could determine or make recommendations to you on the following types of major policy questions:
a) Central Defense Requirements.

In developing a munitions pawer sufficient

to achieve victory over the axis powers, should
we, in conjunction with Britain and the others
fighting the aggressors, plan to match or outstrip the axis powers on the available supply
and productive capacity for guns, tanks and planes?
The Council for Defense Policy, with the assistance

of its own staff, could do all the groundwork on

-3 this, and make concrete recommendations to

you to meet the objective agreed upon.

b) Allocation between U.S., Britain, U.S.S.R.
and China, etc.

Such allocation problems are recurrently

presented. You time could be conserved if all
the relevant facts were gathered by the Council
and its staff and definite recommendations were
made to you. The present problem Vis a vis Russia

indicates how difficult it is to get the Army or
the British to give up equipment on which they
have a claim. Since there is not enough equipment presently available to supply all needs,

a high policy question is involved in the dis-

tribution of it. It would be of material and
time-saving assistance to have the facts and the
issues clearly presented to you for decision.

c) Priorities.
Once the all-out objectives or requirements

are articulated, major policy questions are still
presented in the intermediate stages such as the

40

-present. If we are to have a two-ocean

navy, should all naval items receive first
and highest priority, or, instead of having
15 cruisers, for example, would we intermediately
rather have 7 cruisers and a thousand heavy four-

engine bombers, consistent with the ultimate ob-

jective? Put another way: Should four-engine
bombers come ahead of naval aircraft patrol
ships?
d)

Political, Economic, Military and Naval Strategy.

The situation in the Far East illustrates
the close connection of all of these strategies.
For example, if Japan wants to sell us silk, should
we buy it? Have we presently enough silk for
parachutes and other military needs? If we buy

or don't buy silk from Japan, what effect will

it have on the political and military policy of
the Government?
e)

Jurisdictional Questions.
To conserve your time the Council for Defense

Policy could wither resolve such conflicts as

41

42

-those between OPM and OPACS or make concrete

recommendations on a method or methods for

avoiding such conflicts. In this connection,
consideration should be given to the possibility
of asking Congress for overall governmental
reorganization powers for defense purposes, such
as was granted in the last war by the Overman Act.

f) Other Major Defense Policy Questions.
There will doubtless be innumerable high policy
questions relating to defense which the Council

can decide or put up to you for decision.
6. Membership in the Council for Defense Policy could be

made sufficiently flexible to permit adjustments for future developments.
It might be desired to add to the Council members who would have no

fixed administrative responsibilities or to have on it an individual
having charge of most of the defense production.

OSC:d jb

7-31-41
Typed :mcb

43
Treasury Department

Division of Monetary Research
Date
To:

19

Memorandum for the Files:

.From:

On August 11, 1941, Secretary

Morgenthau gave his approval of this

letter.
H. D. White

44

OFFICE FOR EMERGENCY MANAGEMENT

DIVISION OF DEFENSE AID REPORTS
WASHINGTON, D. C.

August 1, 1941

Dear Mr. Purvis:

Section 4 of the Lend-Lease Act requires the consent of

the President to any retransfers of lend-lease articles by His
Majesty's Government. Distribution through commercial channels

in the United Kingdom and in other parts of the Empire of neces-

sity involves a retransfer and Presidential consent.
In the administration of the Lend-Lease Act the President

will expect that, insofar as practicable, lend-lease articles will
be distributed through Government agencies and, in the case of

.foods, on the free list. Where such distribution is not
practicable, the President will, before granting his consent to
commercial distribution, require assurances that:

(a) The articles to be distributed commercially, and
those into which they are incorporated, are essen-

tial to the British war effort.
(b) The commercial channels of distribution to be used
are the most effective and economical means of

assuring the efficient use of the articles or their
prompt delivery to the places where they are needed,
and

45
-2(c) No profiteering by commercial distributors of the

articles will be permitted.
Since the nature of distribution and ultimate destination

of the various articles to be commercially distributed either in
their original or in an advanced form naturally varies widely

with a particular article, it is impossible for any blanket consent
to retransfer to be given and each case must be determined on its

own facts. The following, however, are suggested as items of information which would assist the President in determining whether

the basic oriteria set forth above have been met.

(1) Destination of articles - in original and advanced
forms, e.g. United Kingdom, Dominions, colonies, etc.

(2) Intended use of articles and those into which they

are to be incorporated, e.g., military, civilian, etc.
(3) Method of distribution to be adopted, showing the
channels through which the materials pass to the user.

(4) Availability of Government distribution agencies.

(5) The status of the distributors, i.e., whether they
are acting as agents of the distributing Government
or as principals purchasing to re-sell to consumers.
(6) The extent to which Government supervision is exer-

cised over distributors to insure that the prices and
fees charged by them will be limited to a minimum
reasonable remuneration for services actually performed.

46

-3 (7) Details of distribution, e. g. , will the recipient
Government sell the articles to a manufacturer, or

will it deliver them to him gratis for incorporation
in a completed article.
More detailed information will be expected in case of distributions in the Dominions and other parts of the Empire than in
the United Kingdom in view of the strict controls known to be in
force in the United Kingdom.
The foregoing are suggestions only and are not intended to

be all-inclusive, as the necessity for further and different information will undoubtedly become apparent in particular cases. I am

confident that most cases will fall into more or less standardized
patterns, so that a method of presenting the necessary information
can be worked out which will avoid useless repetition and complication

of requisitions.
Very truly yours,

H. H. BURNS

Major General, U. S. Army,
Executive Officer

Hon. Arthur B. Purvis,
Chairman, British Supply Council
in North America,

Willard Hotel,

Washington, D. C.

dhm - Copy -Drl

47
TREASURY DEPARTMENT
PROCUREMENT DIVISION
WASHINGTON

OFFICE OF THE DIRECTOR

August 1, 1941
MEMORANDUM TO THE SECRETARY:

Weekly Report - Lease-Lend Purchases

(7/25/41 - 8/1/41)

Estimated Cost

Requisitions

194, 826, 286.27

$

Cleared by O.P.M

20, 1,993,665.00

Awaiting clearance by O.P.M.

$ 215,819,951.27

Less Requisitions for metals, where contracts
will be made for term periods and allocations
required from O.P.M.

Total Pending Requisitions for Spot Purchases

$ 98,930,860.72
$ 116,889,090.55

Purchases to 7/25/41
Purchases 7/25 to 8/1/41

$ 74, 290, 927.20
13,496,721.05

Total to 8/1/41

$ 87,787,648.25

.

Total Pending Requisitions

Following inquiries concerning availability and method of purchasing we have issued tenders for quotation on 24,000,000 ft. B.M. of

ft. B.M.
Aero
are
Spruce and 20,000,000
Fir,of
both
grade.
Wenow

making a similar study of substantial Ball Bearing requirements
approximating $4,000,000 with a possible $4,000,000 of additional
purchases, and when sufficient information is obtained negotiations

with the industry will then be effected.

In
Attachments-4

Director of Procurement
years clifton E. Mack

AUGUST 1, 1941

MEM ANDUM TO THE SECRETARY:
CONTRACT
NUMBER

REQUISICONTRACTOR'S NAME

DA-TPS-525 Willard Storage Battery Co.
DA-TPS-524

TIONER

360

Batteries

624

5,202.24

Batteries

2,220

7,836.60

The Firestone Tire & Rubber Co.

"

Bowers Battery Mfg. Co. Inc.
Armstrong Cork Co.
U. S. Gypsum Co.
Gane & Ingram

DA-TPS-374

Air Reduction Sales Co.

#

If

DA-TPS-371 Taylor-Wharton Iron & Steel Co.
The Dow Chemical Co.

DA-TPS-586

The Inland Alkaloid Co.

2,200 C cu.ft.

Cylinders

2,000

Hyoscine Hydrobromide 22 OZ.

"

Plasmochin Tablets

"

DA-TPS-444

Winthrop Chemical Co. Inc.

Atabrine Tablets

Atabrine Ampules
If

Botwinik Bros. Inc.

Douglas Airplanes

Radio Equipment & Spare Parts

"

DA-TPS-660 Transcontinental & Western Air, Inc.

for Airplanes

"

DA-TPS-656 Louis E. Emerman & Co.

Machines, Hobbing

26,900.00
13,200.00

2,200.00

426,400.00

6,170.00

Spare Engines and parts for

Eastern Air Lines, Inc.

2,200.00

120,543.00

Lathe, Turret

"

"

DA-TPS-669

6,000 M
14,000 M
24,000 bxs

Tractors and Winches

DA-TPS-599 International Harvester Export Co.
DA-TPS-635

700.00

Oxygen

Parahydroxydiphenyl 60,000 lbs

"

DA-TPS-390

26,737.07

Hyoscine Hydrobromide 10 OZ.

"

DA-TPS-475

22,275.00

Fiber Board

If

DA-TPS-691

$

750,000 Sq.Ft.

Fiber Board

If

DA-TPS-692

1,908.00

U.K. Batteries
"

DA-TPS-526

TOTAL VALUE

QUANTITY

COMMODITY

10

19,289.14
48

29,326.17
34,000.00

MEM

ANDUM TO THE SECRETARY:

-2-

AUGUST 1, 1341

REQUISI-

CONTRACT
NUMBER

CONTRACTOR'S NAME

TIONER

DA-TPS-659

Louis E. Emerman & Co.

U. K.

DA-TPS-623

S. W. Card Mfg. Co.

DA-TPS-622

Greenfield Tap & Die Corp.

DA-TPS-665

Nesbitt Machinery C 0.

11

If

DA-TPS-657 Mc Cabe & Sheeran Mchy. Corp.

DA-TPS-575

Ideal Commutator Dresser Co.

2

31,850.00

$

360

541.44

1,008

1,748.16

Mill Boring

26,500.00

Planer, Niles

40,000.00

Pipe, Culvert

If

The Armco International Corp.

Mills, Boring Vert.
Taps, Hand

"

TOTAL VALUE

QUANTITY

Tap, Hand

"

DA-TPS-620

COMMODITY

2,100 ft.

3,360.00

-

DA-TPS-65T

Landers, Frary & Clark

Etching Outfits

"

Cable

General Cable Corp.

Oliver Farm Equip. Co.

DA-TPS-388

Lancaster Iron Wks. Inc.

Bitumen Paddle Mixers

If

DA-TPS-637

Pioneer Engineering Works, Inc.

Crusher Rock

DA-TPS-639

Ingersoll-Rand Co.

Air Compressors

If

"

DA-TPS- 80

2,722.86

125

26,168.62

60

153,129.60
6,920.02
86,400.00

12

4

9

-

"

(Adj.Ded.)

Oliver Farm Equip. Co.

DA-IP--498

Lever Brothers Co.

Glycerine 2,688,000 lbs.

11

Glycerine 156,800 lbs.

"

DA-TPS-499

258.3 M. ft.

Potato Diggers

#

DA-TPS-617

36,127.50

Jugs and Vacuum Bottles

If

11

DA-TPS-600

115.00

2

The Celine Stearic Acid Co.
"

DA-TPS-594 American Cyanamid & Chemical Corp.

Trisodium Phosphate 672 cwt

31.88

376,320.00
23,394.56
1,780.80

AUGUST 1, 1941

MEY RANDOM TO THE SECRETARY:

REQUISI-

CONTRACT
NUMBER

DA-TPS-690

CONTRACTOR'S NAME

COMMODITY

TIONER

Johns-Manville Sales Corp.

Fibre Board 1,500,000 Sq.Ft.

U.K.

-

(General Cable Corp.
"

DA-TPS-633

Spencer Lens Co.
"

DA-TPS-634

16,054.20
228.00

Cable

"

DA-TPS-603

Bausch & Lomb Optical Co.

Microscopes, etc.

50

8,190.00

Microscopes, etc.

50

8,190.00

Board Kraft

"

International Paper Co.

DA-TPS-668

Schoder & Lombard Stamp & Die Co.

Stamps, Inspection Steel

DA-TPS-667

Millers Falls Co.

Drills and Vises

"

"

Screens

If

Max Levy & Co.

DA-TPS-462

Ford Motor Co.

DA-TPS-355

Simmons Machine Tool Corp.

DA-TPS-589

Marshall Field & Co.

Tractors

"

Cessna Airplane

If

DA-TPS-569

Steel Improvement & Forge Co.

China

Blankets

420,000.00

8,000 S.T.

DA-TP>-323

DA-TPS-697

44,550.00

$

Cable

II

DA-TPS-603 (General Cable Corp.

TOTAL VALUE

QUANTITY

1,320.89

1091

11,122.00

1,770.00

6

648,573.42

900

31,000.00

1

597,500.00

525,000
-

U.K.

40.00

(Adj.Ded.)
Drop Forging

If

DA-TPS-502 Steel Improvement & Forge Co.
DA-TPS-723

Laclede Steel Co.

"

Reinforcement Bars
Pipe Metal

98 G.T.

139,345.00

3,918 G.T.
80 mi.

340,724.42

50

--

MEMORANDUM TO THE SECRETARY:

REQUISI-

CONTRACT
NUMBER

DA-TPS-316-1

AUGUST 1, 1941

CONTRACTOR'S NAME

Wickwire Spencer Steel Co.

DA-TPS-273

(Adj.Add.)

Copperweld Steel Co.

DA-TPS-716

C. Tennant Sons & Co.

DA-TPS-313-1

(Adj. Ded.)

Youngstown Sheet & Tube Co.

DA-TPS-329-1

Armco International Corp.

COMMODITY

TIONER

U.K.

Wire Rod

TOTAL VALUE

QUANTITY

1,500 GT. $

40,159.90

China
Lead

"

6,000 N.T.

DA-TPS-963

531,216.00
If

General Motors Corp.
"

DA-TPS-307-1

U. S. Steel Export Co.

DA-TPS-328-1

Jones & Laughlin Steel Corp.

Tools & Dies

12,500 D.Fgs.

Carbon Steel

214,040 G.T.

4,230.00

8,531,317.42
2,255.00

"

(Adj. Add.)

519,000.00

- 36,000.00

U.K.
11

(Adj. Add.)

73,965.00

2

DA-TPS-587

115.90

(Adj.Add.) Willys-Overland Motors, Inc.

Purchases 7/25 to 8/1/41

$

13,496,721.05

51

52

August 1, 1941
10:27 a.m.
Edward

Kelly:

Hello, Mr. Morgenthau.

HMJr:

Talking.

K:

This is Congressman Kelly of Chicago.

HMJr:

How do you do, Congressman.

K:

HMJr:
K:

Thank you, sir. I just want to give you a
little information.
Go ahead.

I presume you've received a letter from
this fellow Frank C. Ratsche, President

of the Chicago City Bank and Trust Company
here a couple of weeks back.
HMJr:
K:

HMJr:
K:

Well, I may have, but
Well, it's regarding the purposes that employers
be urged to distribute bonus payments to employees
in the form of defense bonds up to ten per cent
of annual salaries.
Yes.

Now, I don't know whether you know Ratsche
or not.

HMJr:

No, I don't.

K:

Well, I know him personally.

HMJr:

Yes.

K:

And he's no good.

HMJr:

Oh, really?

K:

And I notice also in the issue of "Click" in
the month of July where he has a statement

there where he was interrogated by this fellow

53

-2Vanderbilt, the roving reporter
HMJr:

Yeah.

where he states in there that he wants

K:

to see the Nazi government predominate over
Europe.

HMJr:

Oh, really?

K:

Yeah. So I've got all that information

HMJr:

Yeah.

with his picture and everything else.

K:

HMJr:

Yeah.

K:

And I've known this fellow for thirty-five
years.

HMJr:
K:

Yeah.

And he's absolutely a no-good scoundrel, and
yesterday I answered the Secretary of the

Bankers' Association for the State of Illinois

with the same kind of a statement I'm giving
to you now.
HMJr:

I see. Well, I appreciate your giving me the
information, and we'll look into it.

K:

Yeah. Thank you 80 much, Mr. Morgenthau.

HMJr:

Good-bye.

K:

Good-bye, sir.

54

August 1, 1941
10:30 a.m.
HMJr:

Hello.

Operator:

There you are.

HMJr:

Hello.

Grace

Tully:

Mr. Secretary.

HMJr:

Grace Efficient Tully!

T:

Ahem! The President has spoken to Sam

HMJr:

Rayburn, 80 I guess it's taken care of.
So you think it'11 begin to leak?

T:

I imagine so.

HMJr:

Huh?

T:

I rather imagine that he will inadvertently
speak to somebody about it. (Laughs)

HMJr:

T:

I didn't quite get - when you told Doughton
that Rayburn and others had copies, was that
correct or were you just kidding?
No, no. We sent the complete file. We sent
a copy of the letter to Doughton and a copy

of your letter

HMJr:

Yeah.

and the enclosure, to Jere Cooper, to

T:

the Speaker, and to Senator George.
HMJr:

I see.

T:

All three. And then I said to him - as a little "And I think several other people, but I don't
remember."

HMJr:

Yeah.

T:

You see? So that he'd think it was outside
there, you see?

55

-2HMJr:
T:

HMJr:

T:

Yeah.

The whole point was to fool him a little. (Laughe)
Well, then I - he hasn't called me and I'm very

busy, so I think I'11 just keep off this.

Yes. And I think Sam Rayburn will handle it
with him in some way. I don't know how. But
I imagine that he will, and - or in some way
he'11 get it out without Doughton because
Doughton knows he has a copy.

HMJr:

Right. Okay.

T:

I suppose something will be done about it.

HMJr:

Thank you.

T:

All right, sir.

HMJr:

Good-bye.

T:

Good-bye.

I hope so, after all this.

56

August 1, 1941
10:37 a.m.

HMJr:

Hello.

Operator:

Mr. Walsh's secretary.

HMJr:

Hello. Hello.

Senator
Walsh's

Secretary:

Mr. Morgenthau, I just talked with the

HMJr:

About eleven-thirty.

S:

Yes, sir. Is that all right?

HMJr:

Yes. Can I count on that?

S:

Yes, sir. Yes, sir.

HMJr:

At eleven-thirty.

S:

Yes, sir.

HMJr:

Senator. He'll be at your office at
eleven-thirty, sir.

Yes. I'll readjust my appointments. I'll
make it all right.

S:

All right, sir.

HMJr:

Thank you.

S:

Good.

57

August 1, 1941
Files
Mr. Cochres

Mr. Knoke telephoned me from New York at 11 o'clock this morning. No told
no that Mr. Williams, the General Manager of the National Beak of Haits, was easing
is to see his es Monday ment at 10 e'slook. Mr. Knoke asked whether the treasury

would approve the sale of gold to the Central Bank of Mails if the request for
each treasaction should be made. I told his that the Treasury Department would
approve such a sale. I added that I had had se word from the State Department is

ml

regard to the prospective purchase of gold by Haiti since the date ea which I had
given to that Department the exbstance of Mr. Knoke's memoranies to - on this
subject.

HMC:da:8/1/41

58

Imgast 1, 194
Files
Mr. Cochres

AS 11 e'eleck this morning Mr. Jense telephoned me from the For Basters

Division of the Department of State. No asked whether Mr. Fee had as estra engy

of all of the commonte involved is and partiment to our Stabilization Agreement

with China which could be made available to Cause is Choughing. After

ar

cheeking with Mr. Bernetein as was arranged that his office should provide no
with a complete set of such documents which I was to ask Mr. Jense to have trease

mitted through the State Department pouch to Sease.

59

August 1. 1942

Under Secretary Bell
Mr. Cochres

Mr. Incour-Bayet, Assing Financial Commector to the French Subscry. telephoned

as from New York this morning. No saked - to soliets your personal opinion as to
how the treasury Department would feel toward the Deak of Presse investing is
Treasury Dills up to $200,000,000 of dollar funds which the Beak of France now has

on deposit with the Federal Receive Beak. Is - to - question, lesser-Sayet
said that no sale of gold to acquire dollars with which to purchase treasury bills
was contemplated.

HMC:dm:8/1/41

on

60

TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION

DATE August 1, 1941
TO

Secretary Morgenthau

FROM

Mr. Kamarck

Subject: Summary of Conference with the Russian Ambassador and

Russian Military Mission, August 1, 1941

(Present: Secretary Morgenthau, Ambassador Oumansky,

Lieutenant-General Golikoff, Deputy Chief of the

Russian General Staff, Engineer-General Respin,
A. M. Kamarck)

1. The Secretary accepted, with thanks, the offer of the

Krassin from the Soviet Government. The 10,000 ton icebreaker,

now in Bering Straits, is offered to the U. S. Government for

eight months. She needs some repairs which may take as long
as one to two months but she will proceed to the United States
under her own steam. (Mr. Gaston has been informed of your
acceptance, as you requested.)

2. The Russian Military Mission is dissatisfied with the

reception it has received in Washington. The war 18 moving
very quickly, while plans for concrete aid are moving very
slowly. The President has been very cordial but elsewhere
nothing gets done. For example, three days ago Welles was
given an expanded list of Russian requirements and he said
that the President would get it within an hour. The Mission
saw the President yesterday and he had apparently never seen
the list. The President gave a concrete promise for the
delivery of a number of fighters to the Russians. But within
an hour, doubts began to be created by the Army as to the
availability of the planes. Similarly, in Moscow, Hopkins
has been given a list of definite Russian needs but he is not
giving any concrete answers.

The Russians want fighters and modern bombers, particularly

B-24's and B-26's, but all modern bombers will help. They were
told that no P-40's are available but the British have 150If

P-40's in England, still in orates, and 50 P-40's here.
the Russians secured the P-40's which are in England, they
would be able to get them to Russia without too great difficulty.

61

-2-

Division of Monetary
Research

General Golikoff stated that while the situation at the
front is very tense, the Russian Army is fighting very well and

morale is high. Reserves of manpower are inexhaustible but the
material now being expended must be replaced. For this purpose,
all the assistance possible is necessary.
3. The Secretary stated that the Russian Mission has ample

cause for dissatisfaction. He advised them to concentrate first
on getting the P-40's from the British. One possible basis
for such a transfer might be the replacement of these fighters
for the British out of American production, on the lines of the
transfer of 100 British-owned P-40's to the Chinese.
The Secretary explained that control over airplane deliveries
is no longer in his jurisdiction, but the organization doing this
work 18 the former Treasury unit. On learning that the Russians
had not yet been put into contact with Oscar Cox, the Secretary
immediately had Cox arrange to see the Mission, together with
General Burns, Admiral Reeves and Colonel Famonville, at 2:30

this afternoon. The Mission is to report the results of this
interview to the Secretary on Monday.

The Secretary advised the Russians that Cox is very good
and the dynamo of the organization. The others are good, too,

particularly when a little pressure 18 applied. As one example
of progress made, the Secretary said that he was just informed
that the President had signed the order granting the first aid
to the Free French.

4. The Secretary informed the Russians in strictest

confidence that the main source of information on the war the
Army had was the German Military Attache. As a result, the

President receives a distorted picture giving only pessimistic

details. The Germans have been doing a good job in presenting
the German version of the news around Washington. One of the
major tasks of General Golikoff, which the Secretary was sure

he would fulfill very well, was to correct this situation.
General Golikoff should keep the Army and Navy informed of
developments at the front. In this way, the President will
then receive a more balanced picture of the war. General
Golikoff said that he will arrange to do 80 and will send the

Secretary copies of all the information he gives the Army and

Navy.

5. The Ambassador and the Generals thanked the Secretary

for his assistance and stated that they would be most grateful
if he would continue to give them help and advice.

61

2-

Division of Monetary
Research

General Golikoff stated that while the situation at the

front 18 very tense, the Russian Army 18 fighting very well and
morale 18 high. Reserves of manpower are inexhaustible but the
material now being expended must be replaced. For this purpose,
all the assistance possible 18 necessary.
3. The Secretary stated that the Russian Mission has ample
cause for dissatisfaction. He advised them to concentrate first
on getting the P-40's from the British. One possible basis
for such a transfer might be the replacement of these fighters
for the British out of American production, on the lines of the
transfer of 100 British-owned P-40's to the Chinese.
The Secretary explained that control over airplane deliveries

is no longer in his jurisdiction, but the organization doing this

work 18 the former Treasury unit. On learning that the Russians
had not yet been put into contact with Oscar Cox, the Secretary
immediately had Cox arrange to see the Mission, together with
General Burns, Admiral Reeves and Colonel Famonville, at 2:30

this afternoon. The Mission is to report the results of this

interview to the Secretary on Monday.

The Secretary advised the Russians that Cox 18 very good

and the dynamo of the organization. The others are good, too,
particularly when a little pressure 18 applied. As one example
of progress made, the Secretary said that he was just informed
that the President had signed the order granting the first aid
to the Free French.

4. The Secretary informed the Russians in strictest
confidence that the main source of information on the war the
Army had was the German Military Attache. As a result, the
President receives a distorted picture giving only pessimistic
details. The Germans have been doing a good job in presenting
the German version of the news around Washington. One of the
major tasks of General Golikoff, which the Secretary was sure

he would fulfill very well, was to correct this situation.
General Golikoff should keep the Army and Navy informed of
developments at the front. In this way, the President will
then receive a more balanced picture of the war. General
Golikoff said that he will arrange to do 80 and will send the
Secretary copies of all the information he gives the Army and

Navy.

5. The Ambassador and the Generals thanked the Secretary

for his assistance and stated that they would be most grateful
if he would continue to give them help and advice.

62

August 1, 1941
11:27 a.m.
HMJr:

Hello.

Operator:

Oscar Cox.

HMJr:

Oscar

Oscar
Cox:

Yes, Mr. Secretary.

HMJr:

Oscar

C:

Yes.

HMJr:

C:

HMJr:

C:

HMJr:

The Russian Ambassador is here with these
two gentlemen, and to my amazement they
haven't seen you.

No, they haven't.
Well, how can they get along in Washington
without seeing you?

Well, I think they can get along.
No they can't. They're absolutely - they're
absolutely bogged down.

C:

Yeah.

HMJr:

Now, it's a damned shame.

C:

Yeah.

HMJr:

Now, Oscar, the Ambassador wants to bring
these two gentlemen around this afternoon

to see you. What's a good time?

C:

HMJr:
C:

HMJr:

Any time that suits them.
Two-thirty?

Two-thirty will be fine.
(Talks aside) Is that good?

63
-2

What do you call that
C:

Second Room.
floor of
Richmond

the Federal Reserve Building, the

HMJr:

The Richmond Room?

C:

Yes.

HMJr:

It always sounds to me like a place that's
slightly disreputable.

C:

Yes. A place of ill-fame.

HMJr:

What?

C:

It's a place of ill-fame.

HMJr:

The place of ill-fame.

C:

Yeah.

HMJr:
C:

All right.
I sent you the copy of the letter on the
Free French. The President signed it.

HMJr:

What's that?

C:

The President signed the directive on the
Free French.

HMJr:

He did?

C:

Yes.

HMJr:

Oh, wonderful!

C:

And I sent you a copy this morning. You
ought to

HMJr:
C:

Does Pleven know that?

Yes. I think - well, I don't know that he
knows it definitely. You ought to tell him,
because you are largely responsible for it.

64

-3HMJr:

Well, what does he get?

C:

Well, he's starting off getting a lot of

equipment - degaussing cables and what not

for ships.
HMJr:
C:

HMJr:

C:

HMJr:

oh, grand!

And we got the trucks in the works now.
Well now, see if we can't do as much for
the Russians.

Well, we'll do our darndest.
Well, that's wonderful.

C:

Right.

HMJr:

Grand. Now, we'll have to do as much for
them.

C:

HMJr:
C:

HMJr:

That's another feather for you.
What?

I say, that's another feather for you.
Well now, in order to make life easy for

them, have General Burns and Admiral What's-

his-name
C:

Reeves?

Reeves there

HMJr:
C:

Yes.

and Major Thing-a-ma-bob

HMJr:
C:

HMJr:

Yeah.

have them all there 80 it'11 make it

easy for these people.
C:

All right, I will.

65

-HMJr:
C:

HMJr:

Send for them all and have them all there.
Fine.
See?

C:

Right.

HMJr:

Do that.

C:

I certainly will.

HMJr:

Thank you.

66

August 1, 1941
11:40 a.m.
Operator:

Go ahead.

HMJr:

Hello.

Rene

Pleven:

Hello. My respects, Mr. Secretary.

HMJr:

How are you?

P:

HMJr:

Very well, thank you. Have you had a

little vacation?
Good. Yes. I had to come back a little
early.

P:

HMJr:
P:

HMJr:

I see.

Mr. Pleven, I have good news for you.
Oh-ho.

The President signed that requisition for

you.
P:

HMJr:

P:

HMJr:

Well, Mr. Secretary, I can see your hand
in behind all this, you know. (Laughs)

But I just heard it from Mr. Cox. He called

me up so that I could let you know.
Yes. I thank you very much.

The first request that you made has been
signed.

P:

Yes.

HMJr:

And Mr. Cox was most helpful.

P:

HMJr:

on yes. You see, he has been absolutely
priceless to me.
So

67

-2P:

Has he told you that we were going to try

HMJr:

No.

P:

You see, this first recuisition is one which

HMJr:

A what?

P:

A re-transfer.

HMJr:

Yes.

P:

From the British to us.

HMJr:

Yes.

P:

And I am, on the advice of Mr. Cox, you see,

to move still closer to the line?

involves a re-transfer, you see?

we are considering the advisability of putting
now another recuisition, which this time could
be directly to us, without any re-transfer.

HMJr:

Good.

P:

And we are just measuring carefully our

steps, you see, to be sure not to go too

far.
HMJr:
P:

Yes.

But I have found him and his assistants, you
see, exceedingly helpful.

HMJr:

Yes.

P:

And I really want to tell you how grateful
I am.

HMJr:

Well, let me know when I can be of more help.

P:

Thank you very much, Mr. Secretary.

HMJr:

Good.

P:

And I hope you can still take a little reet.

68

-3HMJr:

Well, I hope about the fifteenth of August;
but I'11 be here for two weeks.

P:

You are here for two weeks?

HMJr:

Yes.

P:

Oh, I see.

HMJr:

Yes.

P:

Thank you - thank you very much.

HMJr:

Good-bye.

P:

Good-bye, Mr. Secretary.

69

August 1, 1941
12:02 a.m.
HMJr:

Hello.

Operator:

Go ahead.

HMJr:

Hello.

Lord

Halifax:

Hello.

HMJr:

Hello, Mr. Ambassador.

H:

Oh, good morning, Mr. Secretary. How are
you?

HMJr:
H:

HMJr:

Fine.

Mr. Secretary, I rang you up to know whether
there is any chance of getting you to come
and dine cuietly tomorrow night.

Well, I'm - that's Saturday.

H:

Saturday.

HMJr:

I'm sorry, I'm going home this evening.

H:

Oh, I thought you perhaps might be.

HMJr:

No, I'll be back Monday.

H:

I see. Well, then I must try and catch you
next week.

HMJr:

I'd love it.

H:

May I call you again?

HMJr:

Please do.

H:

Righto, I will. How - you'll be back on
Monday?

HMJr:
H:

I'll be back Monday.

Right. Right. Good-bye, and I'll call you

again.

70

-2HMJr:

Thank you.

H:

Good-bye.

71

August 1, 1941
12:15 a.m.
HMJr:

Hello.

Operator:

Congressman Doughton.

HMJr:

Hello.

Operator:

Go ahead.

HMJr:

Hello, Bob?

Robert
Doughton:

All right, Henry.

HMJr:

My apologies to you.

D:

Well, that's all right.

HMJr:

But

D:

I know how those things sometimes occur.

HMJr:

Well, if I could have been of any damn bit
of use to you, I'd have been on your doorstep
at seven this morning; but not being able to
be of any constructive help, I took care of
a couple of minor emergencies around here.

D:

HMJr:

I understand that. That's all right.
But I just want to explain to you - if I
could have walked up and said, "Well, now,
Bob, I think I could be helpful," I'd have
been there at seven o'clock. But I'm just
stalled, and I don't know what to say.

D:

Well, what I wanted - you know you suggested

you'd come down - I - that suited me exactly -

I thought that I'd like to get a little clarification if I could about several matters in
connection

HMJr:

Well

72
2

and I'm at a loss to know what I'd do

D:

HMJr:
D:

Well

because you see we've got this bill in
under a special closed rule, we've closed

debate today, we expect to vote Monday, and

there's a lot of things in here that looks

HMJr:

D:

like that you want us to take up and reconsider
by our committee - I'm just flabbergasted.
Well now, Bob, I've always tried to be honest
with you.

What?

HMJr:

I say I've always tried to be honest.

D:

You always have been, as far as I know.

HMJr:

D:

HMJr:

Now, my hands are tied. I can't give you
any advice that would be of any help to you.
And as I said the other day, I'm just a
hired man. I'm not elected by the people;
and if I could be of the slightest bit of
help to you, I'd have been up there at
Well, what I was - thought that it might be
helpful - there's nothing in the world that's
as great a cross to me as far as public life's
concerned, as to be in a position where I'm
not in accord with the Administration
Yeah.

and the leaders of my party

D:

HMJr:
D:

Yeah.

and the President, and the Secretary
of the Treasury and many people that I have

to work with and all that kind of thing.

HMJr:

Yeah.

D:

And I try my best, without turning over my
conscience and judgment to somebody else,

73

-3to do that, and I want to do that and I
will do that; and I'll make as great a
surrender of anything that's not a matter
of conviction and principles that any man
can.
HMJr:

Yeah.

But now then I don't know if the Treasury -

D:

if it's going to go out here now at all that the Treasury's going to be quoted as
being against this provision and this bill

requiring mandatory tax returns - joint returns

HMJr:
D:

HMJr:
D:

Yeah.

why we want to know that if we're going

to have to fight them - whether or not they
take un a neutral position now, they say they
don't favor it - well, Sullivan just never
would take a position until the last hours,
then he took a conditional position
Yeah.

and when we didn't adopt that he didn't
say then whether he was for it or against it.
If he's going to be against it, if we didn't
adopt that, he should have told us - not wait

until this last minute.
HMJr:

Yeah. Well, don't blame Sullivan.

D:

Well

HMJr:

We.....

D:

What I want - do you know now? I understand

that copies of the letter were sent to the

Speaker and to Jere Cooper
HMJr:

Yeah.

and to Senator George.

D:

HMJr:

Yeah.

74

4

D:

-

Now, do you know whether it's intended for
the influence and weight of the Administration
to be thrown in the balances against that

section of the bill, or is it going to be
left like it was first, neutral, to let us
fight it out - we got no position at all.
He wouldn't take a position - he wouldn't
take any position at all until finally in

HMJr:

D:

HMJr:

the last hour he did take a conditional position.
Yeah. That's - well, he was doing what I asked
him to do.
Well

So I mean he only did what I asked him to do.
Now

D:

Now if it's going to be understood at this
last minute that the weight of the Administration
at Treasury 19 going to be thrown in the balance
side against us, why I want to know it. If it's
going to keep hands off and be neutral, well, I
want to know that.

HMJr:

Well, Bob, I can't - as Secretary of the
Treasury sitting at the other end of the

avenue, I never - I'm not doing anything
publicly except what I do before your committee.

D:

HMJr:
D:

Well, of course, now, the Speaker's got that

letter.

Yeah. Well, he didn't get it from me.
I see he didn't. But it was sent down there
to him, the letter to me, you know.

HMJr:

I see. Well, he didn't get it from me.

D:

Evidently intended to - you see, he's opposed

to that provision in the bill.

HMJr:

But you see, what I'm trying to say is that I
wish you wouldn't push me too hard, because

75

-5my hands are tied and so are my lipe.

Well, I'm not going to push at all. I'm
just putting our situation before

D:

HMJr:
D:

HMJr:

Well

What I'm at now - I don't know what - it
looks like, it must be, that all I can do
is to call my committee together in the
morning - I can't do it now today
Yeah.

and lay that letter before them.

D:

HMJr:
D:

Well, I don't see what else you can do.
I don't see anything else I can do.

HMJr:

No.

D:

And that just draws the line, right now.

HMJr:

Yeah.

D:

HMJr:

In my opinion, confidentally - saying this
to you confidentially
Yeah.

that it raised the issue, and several

D:

of my members - I've shown it to several of

my colleagues this morning
HMJr:

Yeah.

D:

It raised it direct

HMJr:

Yeah.

D:

HMJr:

a candid issue whether or not the Congress

could legislate or whether it' 8 been a fizzle
at legislating.
Yeah. Well, I can see that.

76
6-

D:

HMJr:
D:

You can see that, and I think it's the most
unfortunate issue

Yeah.

that ever could have been raised, because

there's no use of us, not a bit of use of us

on Ways and Means Committee.
HMJr:
D:

Well, I didn't
We've been here for three months, hard work night and day, when other people can take

vacations and rest, and I've no objection glad they can - laboring and trying to raise
revenues of a department which is our constitutional and sworn duty, and then if it's to
be taken out of our hands, we want to know
it and we will know it

HMJr:

Yeah.

must know it.

D:

HMJr:

Yeah.

D:

Would you blame us?

HMJr:

No. No.

D:

It's the blamedest situation that I have

ever experienced, and I'm not responsible

for it.
HMJr:

Well, I'm not either. So - any time I've
had anything to say to any member of the

Congress, I've always said it in committee,

before the committee. I've never - I've

always addressed my remarks to the Chairman

publicly.

D:

Do you know whether the Speaker had anything

to do with that letter or not? Have it

written?
HMJr:

Bob, I've been out of town.

77

-7-

(Laughs) That's not lying, but that's not

D:

answering my question. You needn't answer
HMJr:

it unless you want to.
Well, I've been out of town.

Why, of course. But that don't mean that

D:

you don't know of anything that happened in

town, but that's your business. I don't
criticize

HMJr:

Well

D:

Yeah. Yeah.

HMJr:

Yeah.

D:

All right, Henry. I'm sorry you won't come

HMJr:

down to study it, but that's all right.
Now, wait a minute. Wait a minute. If you don't get the idea I don't want to come up,
but I - if you want to see me. Here's my
schedule. At quarter of one I go over to
sell the President the first bond, you see?

D:

Yeah.

HMJr:

Then we've got Cabinet at two.

D:

Well

NJr:

Now, I don't want you to feel I don't want
to come up.

D:

Well, that's a matter at entirely your discretion.

HMJr:
D:

But, if it'd make you any
I thought it would help if we'd talk over

this letter, but

HMJr:
D:

Well, now, if it would help you any in your
I'm sitting here 80 busy now with the bill,
that I

78

-8HMJr:

D:

If you want me up there around three-thirty

or four, I'll come up there.

Well, if I do, I'll call back; but I don't,

unless you were willing to come or think that
I've got to put it all on me. You suggested
yesterday that you would come, but it's all

right if you

HMJr:

Oh no. If it would be at all helpful, I'll
be up there around three-thirty or four.
Where will you be?

D:

Well, I'11 be on the Floor; but I don't know,
with the view you take about it that it would

be - I'm not calling for help, I'm calling

more for an understanding than I am for help.

HMJr:

D:

Well, now, how can I get hold of you around

three-thirty or four?
Call me at the Democratic cloak room. I'll
be right here.

HMJr:

The Democratic cloak room.

D:

Yeah. Confidentially, Henry, I hate to say
this.

HMJr:

Yeah.

D:

I hate to think it.

HMJr:

Yeah.

D:

I'm frankest to my friends than I am to

anybody.
HMJr:
D:

Yeah.

I feel like that under all the circumstances,
we've been hit a terrible blow below the
belt.

HMJr:

Yeah. Well, I'm sorry.

79

-9D:

And I don't believe if you were in my place,

HMJr:

you'd think otherwise.
Yeah. Well

D:

That's a confidential statement.

HMJr:

I know. Well, just as soon as I come out of
Cabinet, I'11 give you a ring.

D:

All right, thank you.

HMJr:

All right.

80

August 1, 1941
12:35 a.m.
HMJr:
Rex

Hello.

Tugwell:

Hello.

HMJr:

Hello. Rex?

T:

Hello, Henry.

HMJr:

How are you?

T:

HMJr:

Pretty good. How are you?
What are you by this - you Mr. Chancellor?

T:

Right now, I believe that's correct.

HMJr:

Wonderful.

T:

(Laughs) How are you?

HMJr:

I'm alive.

T:

Well, that's about all I can say, too.

HMJr:

I had a message you called me.

T:

HMJr:

Well, yes. Didn't Herb Gaston - I explained
it to him.

No, he didn't tell me, but he's sitting here
now. You can ask him.

T:

HMJr:
T:

Uh huh.

Did you fix it up with Herbert?
Well, I rather think 80. I was asking him

for somebody to make a study of Puerto Rico's
finances, more or less

HMJr:

Oh.

in relation to Federal finances. I know

that you've always been interested the same

81

-2as I am in the generalization of this benefit
payment.
HMJr:
T:

Oh, very much. The five hundred acre thing.
And I have an idea that they don't do very

well with their tax collections and I have

an idea that we ought to do something in the
way of finding out what the balance of payments
back and forth is

HMJr:

Yes.

and what it needs to be.

T:

HMJr:
T:

Yeah.

And I thought the Treasury might be interested
in that.

HMJr:

Yeah, we are. We'd be glad to help.

T:

Uh huh. All right, Henry, fine. That's what
I had in mind.

HMJr:
T:

HMJr:

All right, Rex.
And if it's proper
Yeah.

and if Herbert says so, I'll write you

T:

about it.
HMJr:

Good.

T:

Through channels.

HMJr:

Wonderful.

T:

All right.

HMJr:

We've always got to have our red tape.

T:

Yeah.

82

-3HMJr:
T:

All right.
All right, Henry.

83

August 1, 1941
3:43 p.m.
HMJr:

Hello.

Operator:

Congressman Doughton on the line.

HMJr:

Who?

Operator:

There you are.

HMJr:

Hello.

Robert
Doughton:

All right.

HMJr:

Now, Bob, I'm just out of Cabinet and I'd
like to come up and see you.

D:

I'd be delighted.

HMJr:

Where can I come?

D:

I think you'd better come to the Committee Room

in the Capitol, Henry.

HMJr:

The Committee Room in the Capitol?

D:

Yes. I'll leave here in about ten - twenty
minutes.

HMJr:

Well, I can get up there in ten minutes.

D:

Well, I'll be right in there.

HMJr:

Well, how do I find that?

D:

Well, you just go up to the second story.

HMJr:

Second story.

D:

Take the elevator and come to the second

story, and I'11 be standing there where you
get off.
HMJr:

Second story.

D:

Ten minutes. Yes.

84

-2HMJr:
D:

Well

Anybody can point out the committee - the

Ways and Means Committee Room there in the

Capitol. The boys there at the door can,

HMJr:
D:

where they go into the House.
What's that?

I say the boys there at the door where they

HMJr:

Well, I'll find it.

D:

Yeah. Be no trouble to find me. I'll be
looking out for you.

HMJr:

D:

HMJr:
D:

It's the Ways and Means Committee Room on the
second floor.

The Capitol on the second floor. You take
the elevator and go up to the second floor.

I'll be there.
All right.

85
Read to Secretary when he telephoned
at 11:15 a.m. 8/2/41.

DWB noted 8/4/11

86

THE WHITE HOUSE
WASHINGTON

August 1, 1941

Dear Marrinors

I have signed the Executive Order

for the regulation of consumer credit in
accordance with yesterday's discussion with
you and Loon. This is done with the understanding we reached in our conversation that
you would consult with Heary before taking
any action under the Order which night affect

the fiscal activities of the Treasury.
Very sincerely yours,
(Signed) FRANKLIN D. ROOSEVELT

Benerable Marriner 8. Ecoles,
Chairman, Board of Governors of the
Federal Reserve System,

Washington, D. c.

Copy for the Secretary of the Treasury

sent to President 87

at Cabrat
8/1/41.

88

MEMORANDUM FOR THE PRESIDENT

1. Last Tuesday the Senate passed a bill prehibiting all sales of Government-hold stocks of
cotton (amounting to 7 million bales), the prehibition
to continue until Congress should otherwise provide.
The bill is now in conference. The Conferess have not
net as yet and probably won't until the siddle of next
week.

2. Cotton prices have rises in the spet market

from 9 1/2 cents per pound on August 1, 1939 to 15.79

cents per pound last night. (The parity price of cotton

OR the fare is 16.49 cents per pound.) Had it not been
for the President's statement this week with respect to
price centrol, the price of cotton would probably new be
above parity.

3. If legislation is enasted freezing the Governsent supplies of settes from the market, and if no price
ceiling on cotton is set, we have the basis for spectacular
speculative price boom in cotton. The unfavorable crop
situation and the possibility of restriction on silk imports
favor such a been. (We have the smallest aereage since
1895, and possibility of unusually heavy bell weevil damage
threatens a smaller yield per aereage than was formerly
antisipated.)

4. In view of the danger of price inflation and in
view of the importance which cetton plays in the price
structure, it would seem that the time is inappropriate
to enect legislation of the character passed by the

Senate.

I understand the Secretary of Agriculture has indieated his informal opposition to the bill to Senator

Barkley. I as wondering who ther the time is not opportune
for a more vigerous presentation to Congress of the danger

to the price structure involved in the passage of the bill.
Even if Government cotton is not placed on the market

the more defeat of the bill freezing the cotton will of
itself constitute a desirable force tending to restrain
speculative rises in the price of cotton.

HDW:EMB/jm

8/1/41

89

FOR THE PRESS

IMMEDIATE RELEASE

AUGUST 1, 1941

1892
It was announced today that the President has directed

the Administrator of Export Control to initiate further regulation
in respect to the export of petroleum products in the interest of
the national defense.

The action will have two immediate effects. It will
prohibit the exportation of motor fuels and oils suitable for use

in aircraft and of certain raw stocks from which such products are
derived to destinations other than the Western Homisphere, the
British Empire and the unoccupied territories of other countries

engaged in resisting aggression. It will also limit the exportation

of other petroleum products, except to the destinations referred to
above, to usual or pre-war quantities and provide for the pro rata
issuance of licenses on that basis.

90

easury Department

AUG 1

1941

SCRIPTS
MANET

REGISTER

FEDERAL
1934

VOLUME 6

UNITED

NUMBER 149

Washington, Friday, August 1, 1941
time to time determine, the Board shall

The President

CONTENTS

perform the following functions and

THE PRESIDENT

duties:

EXECUTIVE ORDER
ESTABLISHING THE ECONOMIC DEFENSE
BOARD

By virtue of the authority vested in me

by the Constitution and statutes of the
United States, by virtue of the existence

of an unlimited national emergency and

for the purpose of developing and coordinating policies, plans, and programs

designed to protect and strengthen the
international economic relations of the
United States in the interest of national

a. Advise the President as to economic
defense measures to be taken or functions to be performed which are essential
to the effective defense of the Nation.
b. Coordinate the policies and actions
of the several departments and agencies
carrying on activities relating to economic defense in order to assure unity
and balance in the application of such
measures.

c. Develop integrated economic defense plans and programs for coordinated

action by the departments and agencies

defense. It is hereby ordered as follows:

concerned and use all appropriate means

1. The term "economic defense." whenever used in this Order, means the con-

to assure that such plans and programs

are carried into effect by such depart-

duct. in the interest of national defense,

ments and agencies.

of international economic activities in-

d. Make investigations and advise the

cluding those relating to exports, imports,

President on the relationship of eco-

the acquisition and disposition of mate-

nomic defense (as defined in paragraph

rials and commodities from foreign coun-

1) measures to post-war economic recon-

tries including preclusive buying, trans-

struction and on the steps to be taken

actions in foreign exchange and foreign-

to protect the trade position of the

owned or foreign-controlled property,

United States and to expedite the estab-

international investments and extensions

of credit, shipping and transportation of
goods among countries, the international

aspects of patents, international communications pertaining to commerce, and
other foreign economic matters
2. There is hereby established an Eco-

nomic Defense Board (hereinafter referred to as the "Board"). The Board
shall consist of the Vice President of the
United States, who shall serve as Chairthe

the of

the

man of the the Attorney the Treasury, Secretary General, of State, Secretary Secretary Secretary of War,

the

lishment of sound, peacetime international economic relationships
e. Review proposed or existing legislation relating to or affecting economic de-

fense and, with the approval of the
President, recommend such additional

legislation as may be necessary or
desirable.

4. The administration of the various
activities relating to economic defense
shall remain with the several departments and agencies now charged with

such duties but such administration

shall conform to the policies formulated
or approved by the Board.

of

may
with the the
appoint

Chairman and the Navy. the Secretary Secretary Commerce. approval of Agriculture, of The

Each

than the

Board. President to the other Board additional member Chairman, members of may the

an alternate from
his

designate continuing officials of Department, subject among to the the

approval of the Chairman,

and such alternate may act for such
member
in all matters relating to the
Board

3. In furtherance of such policies
and objectives as the President may from

5. In the study of problems and in the

formulation of programs, it shall be the
policy of the Board to collaborate with
existing departments and agencies which

perform functions and activities pertaining to economic defense and to
utilize their services and facilities to the

maximum Such departments and

agencies shall cooperate with the Board

in clearing proposed policies and measures involving economic defense con-

siderations and shall supply such

information and data as the Board may

Executive Orders:

Page

Economic Defense Board established

3823

Overtime compensation of cer-

tain civilian employees of

War and Navy Departments, the Coast Guard,
and The Panama Canal

3824

Vessels transferred between
Navy and Commerce De-

partments, prior order
amended

3825

Military Order:
Organized military forces of the

Government of the Commonwealth of the Philippines called into service of
the armed forces of the
United States

3825

RULES, REGULATIONS
ORDERS

TITLE 8-ALIENS AND NATIONALITY:

Immigration and Naturalization Service:

Alien Registration Act, 1940,
replacement of lost, etc.,

registration receipt
cards

3825

TITLE -CIVIL AVIATION:
Civil Aeronautics Authority:

First aid equipment for air
carrier aircraft

3826

TITLE 7-COMMODITY AND SECURITIES EXCHANGES

Securities and Exchange Commission:

Custody of securities maintained by management
3827

company

Listed and unlisted securities,

differentiation on ticker.

3827

TITLE 30-MINERAL RESOURCES:

Bituminous Coal Division:
Minimum price schedules, re-

lief granted, petitions of:

District Board 3 (2 docu3828

ments)

3830

District Board 11
(Continued on next page)
3823

FEDERAL REGISTER, Friday, August 1, 1941

3824

CONTENTS-Continued

Department of the Interior-Con.

FEDERAL REGISTER

General Land Office:

Alaska, air navigation site
withdrawal

the Administrator of Export Control
the Division of Defense Aid Reports, the
Page

3852

sion:

Published daily. except Sundays, Mondays,

and days following legal holidays by the

Division of the Federal Register The National

Archives, pursuant to the authority con-

tained in the Federal Register Act, approved
July 26. 1935 (49 Stat. 500), under regulations prescribed by the Administrative Committee, approved by the President
The Administrative Committee consists of

the Archivist or Acting Archivist, an officer

of the Department of Justice designated by
the Attorney General, and the Public Printer
or Acting Public Printer.

The daily issue of the FEDERAL REGISTER

will be furnished by mail to subscribers free

of postage. for 81.25 per month or $12.50 per

year: single copies 10 cents each; payable in
advance Remit money order payable to the
Superintendent of Documents directly to the
Government Printing Office, Washington D.C.

3831

Department of the Interior:
Bituminous Coal Division:
Beckley Fire Creek Coal Co.,
code membership rein3850

Belleville Fuels, Inc., provisional approval as a marketing agency

3850
3848
3848

District Board 10. hearing
postponed

3846

Fry. F. B., cease and desist
order

3847

Hearings. etc.:

Abney. K. D

3839

Bonds, A. E

3836

Carterville Coal Co

3841

Consumers Counsel

3846

Daisy City Coal Co

3838

Forest City Coal Co
Foster, Melvin

3842

Kieffner Coal Co
Long & Early
McCannon Bros. Coal Co.
Morris & Campbell

Norman, C.T
Norris Coal Co
Owl Coal Co
Payton. Allen

3844
3845
3839
3343
3842
3837
3840
3836
3843

Sheelor, Ed

3837

Swanton Big Vein Coal Co.

3847

Tedrow. Chester

3845

Warner. W. H. & Co., Inc

3840

Wraley, Harvey W

3844

Registered distributors, applications filed for registration as

Wyatt Coal Sales Co., registration suspended

3854
3853
3853
3854
3853

3855

3855

3850

decisions when necessary to expedite the
as may be allocated to the Board by the

President, to employ necessary personnel and make provision for the necessary
supplies, facilities, and services. The
Chairman may, with the approval of the
President, appoint an executive officer.
FRANKLIN D ROOSEVELT

THE WHITE HOUSE
July 30, 1941.
3831

(No. 88391

(F. R. Doc. 41-5597; Filed, July 31, 1941;
11:20 a. m.)

3834
3835
3834
3835
3833

require in performing its functions.

The Board may arrange for the establishment of committees or groups of
advisers, representing two or more departments and agencies as the case may

require, to study and develop economic
defense plans and programs in respect
to particular commodities or services,
geographical areas, types of measures
that might be exercised, and other related matters
6. To facilitate unity of action and the
maximum use of existing services and
facilities, each of the following departments and agencies, in addition to the
departments and agencies represented
on the Board, shall designate a respon-

sible officer or officers, subject to the
approval of the Chairman, to represent
the department or agency in its continuing relationships with the Board:
The Departments of the Post Office. the

Interior, and Labor, the Federal Loan
Agency, the United States Maritime
Commission. the United States Tariff
Commission, the Federal Trade Commission. the Board of Governors of the
Federal Reserve System, the Securities

and Exchange Commission. the National Resources Planning Board, the
Defense Communications Board, the
Office of Production Management, the

Office of Price Administration and

3850

vice and assistance of the Board, for
discharging and performing the respon.
sibilities and duties required to carry
out the functions and authorities set
forth in this Order, and to make final
thorized, within the limits of such funds

3854

Offering of notes, Series

Curtiss-Wright Corp
Douglas Aircraft Co., Inc
General Motors Corp
Northrop Aircraft, Inc
Uniloy Accessories Corp

7. The Chairman is authorized to make
all necessary arrangements, with the ad.

work of the Board. He is further au-

War Department:
Contract summaries:

NOTICES

Delta Mining Co., et al., temporary relief granted
District Board relief denied.

3852

Chicago Stock Exchange, appli-

A-1943

and Civilian Supply

stated

3852

sion:

cations granted

shall

with
the foregoing departments and
agencies.

Fiscal Service:
Page

Office of Price Administration
Cotton linters, civilian allocation program

American Republican, Inc
Barclay Craighead
Boone Biblical College
Hennessy Broadcasting Co
McCauley George W., etc
Seaboard Broadcasting Corp.
Federal Power Commission
Montana-Dakota Utilities Co.,
notice of application
Securities and Exchange Commis-

Consolidated Electric and Gas
Co., application filed
Treasury Department:

CONTENTS-Continued
TITLE 32-NATIONAL DEFENSE:

frequencies
Hearings:

may time

conduct of
for determine. the the Chairman systematic The Chairman from agencies business to provide time

Federal Communications Commis-

Amateur service, withdrawal of

Coordinator
of Information
additional departments
and and such

Civilian Supply, the Office for Coordination of Commercial and Cultural Relations Between the American Republics,
the Permanent Joint Board on Defense,

EXECUTIVE ORDER
PRESCRIBING REGULATIONS GOVERNING
OVERTIME COMPENSATION OF CERTAIN

CIVILIAN EMPLOYEES OF THE WAR Dr.
PARTMENT, THE NAVY DEPARTMENT THE
COAST GUARD, AND THE PANAMA CANAL

By virtue of the authority vested in me
by section 1 of the act of June 3, 1941.
Public Law 100, 77th Congress, I hereby
prescribe the following regulations governing the payment of compensation for
employment in excess of forty hours in

any administrative workweek to perannum field service employees whose
overtime services are essential to and directly connected with the expeditious
prosecution of the overtime work upon
which employees enumerated in section
(a) of the act of June 28. 1940. 54 Stat
676, 678, and section 1 of the act of October 21, 1940, 54 Stat. 1205. are engaged:
SECTION 1. Whenever the Secretary of

War, the Secretary of the Navy. the Sec-

retary of the Treasury. or the Governor
of The Panama Canal, as the case may in

be, shall determine that employment

excess of forty hours a week of any per- of

annum employee in the field services
the War Department, the Navy Departthe Coast Guard, or The Panama
to and
the
ment. nected Canal is with essential expeditious directly prosecution required con-

of overtime work which is being 5 (a)
of employees enumerated in section

of the said act of June 28, 1940, and 1940. sec-

tion 1 of the said act of October 21. is
and for which overtime compensation
being paid, he is authorized to provide in

compensation for such employment
excess of forty hours in any administra-

FEDERAL REGISTER, Friday, August 1, 1941

3825

EXECUTIVE ORDER
workweek at one and one-half times
tive employee's regular rate of pay.
such SECTION 2. In determining the overtime

compensation which may be paid to any 1

AMENDMENT OF EXECUTIVE ORDER No. 8798

OF JUNE 19, 1941, TRANSFERRING CERTAIN VESSELS BETWEEN THE NAVY DE-

employee under section
pay for one hour

PARTMENT AND THE DEPARTMENT OF

shall be one

By virtue of the authority vested in

as one-eighth of emhereof. computed per-annum the The such shall for be
pay for one day. pay
one ployee's three-hundred-and-sixtleth day considered of to the be em-

per-annum salary.

3. The Secretary

of the
Navy,
the
of
Secretary ployee's
SECTION
Secretary of
War, the
the Treasury, and the Governor of The
Panama Canal may designate such subordinate officers as they may deem neces-

sary to determine the per-annum employees in their respective field services
whose overtime services are essential to

and directly connected with the expeditious prosecution of the overtime work

me by the Constitution and the statutes
of the United States, Executive Order
No. 8798 of June 19, 1941, transferring
certain vessels between the Navy Department and the Department of Commerce,
is hereby amended, effective as of June
19, 1941, by substituting the United States
Navy Vessel ARGUS for the United States
Navy Vessel JAMESTOWN transferred

by the said Executive order to the Department of Commerce.
FRANKLIN D ROOSEVELT

THE WHITE HOUSE

July 30, 1941.

section 5 (a) of the said act of June 28,
1940. and section 1 of the said act of
October 21. 1940, are engaged.

SECTION 4. No overtime compensation

(No. 8838]

(F. R. Doc. 41-5551; Filed, July 31, 1941;
9:59 a. m.]

may be paid under section 1 hereof to
any per-annum employee who during his
regular hours of employment is not norengaged on work essential to and
connected with

of the work upon em-

ployees enumerated in of
directly prosecution mally section the expeditious which 5 (a)

the said act of June 28, 1940. and section 1

of the said act of October 21, 1940, are
engaged.

SECTION 5. No employee covered by the

provisions of section 1 hereof shall be
regularly required or allowed to work in
excess of forty-eight hours in any admin-

istrative workweek: Provided, That such

limit may be exceeded when it is considered by the Secretary of War, the Secre-

tary of the Navy, the Secretary of the
Treasury, or the Governor of The Panama
Canal, or such subordinate officers as they

may designate, to be necessary for the
maintenance of the production schedule
for an arsenal, shipyard, shop, or other
establishment of a similar nature, or to
meet other specific emergency situations.
SECTION 6. When in the judgment of
the head of the department concerned,
the Governor of The Panama Canal, or
the subordinate officers mentioned in section 3 of these regulations, the health or
efficiency of any employee will be im-

paired by employment for more than
eight hours a day or forty hours a week,
such employee shall not be required or
permitted to work overtime.
SECTION 7. It shall be the policy of the
agencies affected
to the
the

overtime consistent work with by requirements this absolute order minimum to of hold the

national-defense program.

SECTION 8. This order shall take effect
as of June 3. 1941, and shall be published
in the FEDERAL REGISTER.

FRANKLIN D ROOSEVELT
THE WHITE HOUSE,

MILITARY ORDER
ORGANIZED MILITARY FORCES OF THE GovERNMENT OF THE COMMONWEALTH OF THE
PHILIPPINES CALLED INTO SERVICE OF THE
ARMED FORCES OF THE UNITED STATES

Under and by virtue of the authority
vested in me by the Constitution of the
United States, by section 2 (a) (12) of

the Philippine Independence Act of

March 24, 1934 (48 Stat. 457), and by
the corresponding provision of the Ordinance appended to the Constitution of
the Commonwealth of the Philippines,
and as Commander-in-Chief of the Army
and Navy of the United States, I hereby

call and order into the service of the
armed forces of the United States for
the period of the existing emergency.
and place under the command of a Gen-

eral Officer, United States Army. to be
designated by the Secretary of War from

time to time, all of the organized military forces of the Government of the

Commonwealth of the Philippines: Provided, that all naval components thereof
shall be placed under the command of
the Commandant of the Sixteenth Naval
District, United States Navy.
This order shall take effect with rela-

tion to all units and personnel of the
organized military forces of the Government of the Commonwealth of the Phil-

ippines, from and after the dates and
hours, respectively, indicated in orders
to be issued from time to time by the
General Officer, United States Army. designated by the Secretary of War.
FRANKLIN D ROOSEVELT
THE WHITE HOUSE.

July 26, 1941

July 30, 1941.
[No. 8837]

(F. R Doc. 41-5550; Filed, July 31, 1941;

9:59 m.)

(P. R. Doe. 41-5548; Filed, July 81, 1941;
9:27 a. m.)

P.R. 8049.

TITLE 8-ALIENS AND NATIONALITY

CHAPTER IMMIGRATION AND

COMMERCE

upon which the employees enumerated in

Rules, Regulations, Orders

NATURALIZATION SERVICE

[Fourth Supplement to General Order
No. C-21]

PART 170-REGISTRATION AND FINGERPRINTING OF ALIENS IN ACCORDANCE

WITH THE ALIEN REGISTRATION ACT,
1940

REGULATIONS GOVERNING REPLACEMENT OF

LOST, MUTILATED OR DESTROYED ALIEN
REGISTRATION RECEIPT CARDS

JULY 30. 1941.

Pursuant to the authority contained
in sections 32 (c). 34 (a). and 37 (a) of

Title III of the Act of June 28, 1940

(54 Stat. 674, 674, 675: 8 U.S.C. 453 (c),

455 (a), 458 (a)), and to the powers
conferred by 190.1, Title 8, Chapter I,
Code of Federal Regulations (5 F. R.
3503), the following regulations are
hereby promulgated and published as
portions of Part 170 of said Title 8,
Chapter I. Code of Federal Regulations
(5 F.R. 2836, 3173. 3589. 4560, 4813; 6
F.R. 229, 2560)

Section 170.4 (q) is amended to read
as follows:

I 170.4 Method of registration.

(q) A receipt shall not be issued to
any person who has already obtained
one unless he surrenders his former re-

ceipt, except in case of loss, mutilation,
or destruction of the original receipt in
which event it may be replaced in accordance with $ 170.9 of this part. No
person shall use a receipt relating to
any other person (except in behalf of

his minor child or ward). If the alien

dies, permanently departs, or is deported

from the United States, his receipt shall

be returned to the Immigration and
Naturalization Service. If any person
finds a lost receipt of registration, he
shall return it to the Alien Registration
Division, Immigration and Naturalization Service, Washington, D.C.
The following new section is added to
Part 170:

Replacement of lost, muttdestroyed receipt

as hereinafter any

lated, 1 170.9 or of provided, registration.

mutilated, or may
alien been (a) Except whose lost, registration receipt destroyed card card in lieu has

apply for a new receipt

thereof. Such application shall be made
under oath or affirmation. upon a form
prescribed for that purpose, and shall be
filed with the district director of the Im-

migration and Naturalization Service
having jurisdiction over the place of the
applicant's residence.

When the application for a new
card is received by
he shall assign

receipt director, (b) the officer investigation
to any the district of the

within his
vestigating officer shall

Service of the application jurisdiction. conduct such The in- in-

FEDERAL REGISTER, Friday, August 1, 1941

3826

quiry into the circumstances surrounding the alleged loss, muttlation. or destruction of the original receipt card as to
satisfy himself that such loss, mutilation,
or destruction has occurred. If a receipt
card has been mutilated, it must be surrendered to the investigating officer before a new card will be issued. The investigating officer shall also satisfy himself that the applicant is the individual
to whom the registration record relates,
and shall make any further inquiry justified by the facts in a particular case. If
deemed advisable, written sworn statements concerning any pertinent facts
may be obtained from the applicant and
any other persons whose testimony
should be secured. Upon completion of
the investigation, the investigating officer
shall recommend the granting or dental
of the application for a new receipt card,
and If his recommendation is adverse, he
shall state the reasons therefor in writing. The investigating officer shall obtain the applicant's signature and a print

of his right index finger upon Form

AR-3a and shall type on the face of that
form the name and present address of
the applicant. If for any reason the impression of the right Index finger cannot

be taken, the impression of another

finger should be obtained and the form
suitably endorsed to show which finger
and hand.

(c) The investigating officer shall then

forward the application and any testi-

appropriate division of the Central Office
for consideration of such further action.

(e) If a duplicate receipt card on

Form AR-3a is issued, it shall be sent
direct to the applicant by the Alien Registration Division, and the office where
the application was filed shall be advised
of the final disposition of the case.
(f) Any alien child who was less than
fourteen years of age at the time of his
registration upon the basis of an application made by his parent or legal guard-

ian under 170.1 (c) or 170.1 (d) and

who desires to obtain a new registration
receipt card in lieu of a lost, mutilated,
or destroyed original may, if the alien is

less than fourteen years of age at the
time application is made, obtain a new
card through the procedure specified in
paragraphs (a) to (e) of this section.
In such cases, however, the application
for a new card shall be executed by the
child's parent or guardian, preferably the
same person who made application for
the original registration: the testimony
of the parent or guardian instead of that
of the child shall be obtained and the new

Form AR-3a, if issued, shall be delivered

to the parent or guardian. No fingerprint of the alien child need be obtained
on Form AR-3a, which shall be signed by
the parent or guardian. In any such case
in which no parent or guardian is available, the matter shall be reported to the
Alien Registration Division for special instructions concerning the procedure to be

mony taken from the applicant and other

followed in replacing the original receipt

persons, together with Form AB-3a, to
the district director having jurisdiction.
The district director or an officer designated by him shall review the record and
may. If he deems it advisable, refer the
case to the same or any other officer of
the Service for further investigation. If
no further investigation is considered
necessary. the entire record shall be forwarded to the Alien Registration Division. The reviewing officer shall indicate
whether he concurs with the recommendation of the investigating officer. and if
not, he shall state the reasons for his

card.

non-concurrence

(d) Upon consideration of the application and record in the Central Office, the

Chief of the Alien Registration Division
may. If he is satisfied that the original
receipt has been lost, mutilated, or de-

stroyed, sign the Form AB-3a, place

thereon the proper registration number,
and mark the form to show that it is a
duplicate issued in lieu of an original receipt which has been lost, mutilated, or

destroyed. Both the original date of
registration and the date of issuance of
the duplicate shall be shown on the new
card. If the said officer is not satisfied
that a duplicate should be issued, he shall
deny the application. If the record indicates that any further action is desirable
or necessary in connection with the case
of the alien, it should be referred to the

(g) Replacements of lost, mutilated,
or destroyed receipt cards in the cases
of alien seamen shall be governed by the
following:

(1) An alien who has been lawfully
admitted to the United States for permanent residence and who is by occupation a seaman may replace a lost, mu-

tilated, or destroyed Form AR-3 in the
manner specified in paragraphs (a) to

(e) of this section.
(2) An alien seaman who was registered under I 170.8 (d) may, if less than
one year has elapsed since the date of
his registration and he is in the United

States at the time of filing his application, replace a lost, mutilated, or destroyed Form AR-103 in the manner
specified in paragraphs (a) to (e) of
this section. In such cases Form AR-3a
will, If issued, be plainly marked to show
both the date of original registration of
the seaman and the date on which the
new receipt card was issued. In accordance with I 170.8 (a), an alien seaman
seeking admission to the United States
who does not present a receipt (or duplicate thereof) showing registration within
one year of the date of his application
for admission shall not be admitted until he has again been registered and fingerprinted. This one-year period shall
extend from the date of original regis-

tration, and in no case from the

in lieu of on

mutilated, which a new receipt one date lost,

or destroyed was issued.

(3) An alien seaman who was finger.

printed only, under the provisions
$ 170.8 (e), shall not be entitled to of

tain a replacement of the Form AR-103
which was issued to him at the time of

such fingerprinting. In such

by 170.8
the
again procedure has be followed prescribed if alien's cases, (e) receipt shall the

card
been lost, mutilated, or destroyed.
(SEAL]

LEMUEL B. SCHOFIELD,

Special Assistant to the Attor.
ney General in Charge Im.
migration and Naturalization Service.
Approved:
FRANCIS BIDDLE

Acting Attorney General
(F. R. Doc. 41-5549; Filed. July 31, 1941
9:35 a. m.]

TITLE 14-CIVIL AVIATION
CHAPTER I-CIVIL AERONAUTICS
AUTHORITY
[Amendment No. 122 of the Civil Air
Regulations

PART 61-SCHEDULED AIR CARRIER RULES
(INTERSTATE)

FIRST AID EQUIPMENT FOR AIR CARRIER
AIRCRAFT

At a session of the Civil Aeronautics
Board held at its office in Washington
D. C., on the 29th day of July, 1941.

Acting pursuant to the authority
vested in it by the Civil Aeronautics Act
of 1938, as amended, particularly sections 205 (a). 601 and 604 of said Act.
and finding that its action is desirable
in the public interest and is necessary

to carry out the provisions of, and to
exercise and perform its powers and
duties under, said Act, the Civil Aeronautics Board amends the Civil Air Reg.

ulations as follows:
Effective October 1, 1941, Part 61 of
the Civil Air Regulations is amended by
the addition of a new I 61.340 to read as
follows:

61.340 First aid equipment. No aircraft shall be operated in scheduled air
transportation unless equipped with &
conveniently accessible first aid kit ade-

quate for proper first aid treatment of
passengers and crew which shall contain

medical equipment and supplies ap
proved by the Administrator as suitable
and sufficient for the type of operation
involved.

By the Civil Aeronautics Board.
(SEAL)

THOMAS G. EARLY.
Secretary.

(F. R. Doc. 41-5547 Filed, July 30, 1941
4:08 p. m.)

FEDERAL REGISTER, Friday, August 1, 1941
TITLE 17-COMMODITY AND SECURITIES EXCHANGES

CHAPTER II-SECURITIES AND
EXCHANGE COMMISSION

PART 240-RULES AND REGULATIONS, SECURITIES EXCHANGE ACT OF 1934
AMENDMENT TO RULE X-12F-5

Securities and Exchange Comacting pursuant
it by the
conferred mission. The upon Securities to authority sections Exof 1934. particularly
23 (a)

Securities and Exchange Commission

hereby adopts 270.17f-2 (Rule N17F-21 to read as follows:

270.17f-2 Custody of securities
maintained by management company.
The securities and similar investments
of a registered management company
may be maintained in the custody of such
company upon the following conditions:

(a) Except as provided in paragraph
(b). all such securities and similar investments shall be deposited in a vault or

other depository maintained by a bank
or other company whose functions and

action necessary and
12 such change (f) and Act thereof, and and for appropriate the deeming proin the public interest
tection of investors and necessary for the

physical facilities are supervised by Federal or State authority.

execution of the functions vested in it

shall not apply to securities on loan

hereby

of the
by (Rule said X-12F-5] Act, amends the General Act I 240.12f-5 to Rules read
and Regulations under
as hereinafter set forth:

240.12f-5 Differentiation on ticker

(b) The provisions of paragraph (a)

which are collateralized to the extent of
their full market value, or to securities
hypothecated, pledged, or placed in escrow for the account of such registered

company in connection with a loan or

other transaction authorized by specific
resolution of its board of directors, or to

between transactions in listed and unlisted securities. Every national securities exchange and every person directly

securities in transit in connection with

or indirectly controlled by such exchange,

a sale, an exchange pursuant to a plan

in the publication or making available
for publication by ticker of quotations
or transactions in securities made or

otherwise, redemption, maturity or con-

effected upon such exchange, shall differentiate between quotations or transactions in listed securities and quotations

or transactions in securities for which
unlisted trading privileges on such exchange have been continued or extended,

by either adding the letter "L" to the
report of each quotation or transaction
in such listed securities, or by adding

the letter "U" to the report of each
quotation or transaction in such securities for which unlisted trading privileges
have been continued or extended on such

exchange. (Rule X-12F-5]

version, the exercise of warrants or

rights, assents to changes in terms of the

securities, or other transactions necessary in the ordinary routine relating to
the management of securities.
(c) The securities and investments de-

posited pursuant to paragraph (1) shall
be physically segregated at all times from
those of any other person
(d) The securities and investments de-

posited pursuant to paragraph (a) shall
be withdrawn only in connection with
transactions of the character described
in paragraph (b)
(e) No person shall be authorized or
permitted to have access to the securities

Effective July 31, 1941.

By the Commission.
(SEAL]

of reorganization recapitalization or

FRANCIS P. BRASSOR,

Secretary.

(P. R Doc. 41-5600; Filed, July 31, 1941;
11:46 a. m.]

and investments deposited pursuant to
paragraph (a) except pursuant to resolution of the board of directors of such
registered company. Each such resolution shall designate not more than five
persons who shall be either officers or
responsible employees of such company,

and shall provide that access to such

PART 270-INVESTMENT COMPANY ACT OF
1940

ADOPTION OF RULE N-17F-2

Acting pursuant to the Investment
Company Act of 1940, particularly sec-

tions 38 (a) and 17 (f) thereof, and
deeming such action appropriate to the
exercise of the powers conferred and the
duties imposed upon it in that Act, the

securities and investments shall be had
only by two or more such persons jointly,
at least one of whom shall be an officer:
except that for the purpose of paragraph
(g) the independent public accountant
shall be permitted access to such secur-

3827

withdrawing from the depository securities and investments shall sign a notation in respect of such deposit or withdrawal, which shall show (1) the date
and time of the deposit or withdrawal,
(2) the name and amount of the securities and other investments deposited and

withdrawn, and an identification thereof
by certificate numbers or otherwise, and
(3) the manner of acquisition of securities and investments deposited or the
purpose for which securities and investments have been withdrawn. Such notation shall be transmitted promptly to

an officer or director of the registered
company designated by its board of directors who shall not be a person designated for the purpose of paragraph (e)
Such notations shall be on forms serially
numbered, and shall be preserved for at
least one year.

(g) Such securities and investments
shall be verified by complete examination
by an independent public accountant re-

tained by such registered company at
least three times during the fiscal year.
at least two of which shall be chosen by
such accountant without prior notice to
such company. A certificate of such accountant, stating that he has made an
examination of such securities and investments and describing the nature and
extent of the examination, shall be transmitted to the Commission promptly after
each such examination
(h) Such securities and investments
shall at all times be subject to inspection
by the Commission through its authorized
employees or agents accompanied, unless

otherwise directed by order of the Commission. by one or more of the persons
designated pursuant to paragraph (e).
(1) All such securities and investments
which are stocks and other equity securities acquired by such registered management company after August 14. 1941. for
which the issuer or its agent maintains a
record or registry of ownership, shall be
registered or recorded in the name of
such company within 30 days after any

such acquisition: Provided, however,
That this paragraph shall not apply to
securities on loan or securities pledged in

connection with a loan or other transaction authorized by a specific resolution of
its board of directors.
Effective August 15. 1941
By the Commission.
[SEAL]

FRANCIS P. BRASSOR,

ities and investments jointly with any

Secretary.

two persons so designated.

(f) Each person designated pursuant
to paragraph (e), when depositing in or

(F. R. Doc. 41-5601; Filed, July 31, 1941;
11:46 a. m.)

FEDERAL REGISTER, Friday, August 1, 1941

MENTS EXCEPT TRUCK: AND IN THE MATTER OF THE PETITION OF DISTRICT BOARD
NO. 3 FOR THE ESTABLISHMENT OF PRICE

CLASSIFICATIONS AND MINIMUM PRICES

FOR THE COALS OF CERTAIN MINES IN
DISTRICT NO. 3

Original petitions, pursuant to section

4 II (d) of the Bituminous Coal Act of
1937, having been duly filed with this
Division by the above-named parties, requesting the establishment, both tempo-

rary and permanent, of price classifications and minimum prices for the coals
of certain mines in District No. 3: and
It appearing that the above-entitled
matters raise analogous issues: and

It appearing that a reasonable showing of necessity has been made for the
granting of temporary relief in the manner hereinafter set forth: and
No petitions of intervention having
been filed with the Division in the aboveentitled matters; and
It appearing that this action is necessary in order to effectuate the pur-

thus proposed are not those applicable to

rail shipments, to any market area, of
coals which the petition alleges are
analogous to those produced at the Post
Mine, nor are they the minimum prices
that would be applicable if the proposals

of the District Board in Docket No.

A-908 were adopted. The petition states
that the coals produced at the Post Mine
are similar to those produced at the Kano
Mine (Mine Index No. 83) of the Pecks
Run Coal Co.

It appears that the price classifications
and minimum prices, for all shipments
except truck, applicable matters and applications to stay, terminate, or modify
the temporary relief herein granted may
be filed with the Division within forty-

five (45) days from the date of this

Dated: July 11, 1941.
[SEAL]

FOR ALL SHIPMENTS EXCEPT TRUCK

ments are hereinafter set forth and
hereby made a part hereof.

It is further ordered, That pleadings
in opposition to the original petitions in
the above-entitled matters and applica-

Sise group Nos
x2

Code member

Mine name

Seam

DR

thereto Supplement R-III, and I 323.23
(General prices) is amended by adding
thereto Supplement T. which supple-

Alphabetical listing of code members having railway loading facilities, showing price classification by size group Not.)

5 4

R-II. I 323.8 (Special prices-(c) Railroad fuel prices for movement via all
lakes-al ports) is amended by adding

323.6 Alphabetical list of code members-Supplement R-I
a

(Special prices-(b) Railroad fuel prices
for all movements except via lakes) is
amended by adding thereto Supplement

Acting Director.

NOTE: The material contained in these supplements is to be read in the light*of the classifications, prices, instructions exceptions and other provisions contained in Part 323, Minimum
Price Schedule for District No. 3 and Supplements thereto.

I

betical list of code members) is amended
by adding thereto Supplement R-1, 323.8

DAN H. WHEELER

TEMPORARY AND CONDITIONALLY FINAL EFFECTIVE MINIMUM PRICES FOR DISTRICT No. 3

It is ordered, That the above-entitled
matters be, and they hereby are, con-

It is further ordered, That, pending
final disposition of the above-entitled
matters. temporary relief be, and the
same hereby is, granted as follows:
Commencing forthwith, I 323.6 (Alpha-

herein.

Order, pursuant to Rules and Regulations Governing Practice and Procedure

poses of the Act:
solidated

except truck, applicable to coals produced

at the Kano Mine should be established
for the coals of the Post Mine. These
price classifications and minimum prices
are the same as were proposed by the
District Board in Docket No. A-908 for
the coals produced at the Post Mine, and
they have accordingly been established

3

213

Arnold & Martin (E. C.

Hunt Bros

M. V. Freeport.

Bennett, Herbert

Dickeson's
Burnside #2

Pittsburgh

Fishback

Pittsburgh

Harvey, Rov.

Coyner.

Hoylman Coal Company

Redatone

Hoylman

Redatance

Provins.

Turkey Run.

Reeder, L.B.

Redstone,
Pittsburgh

Reeder

Redstone

Riddle

Pittsburgh
Freeport

Arnold)

1175
596

586

961

633

Burnside

Fineham Collins
(Ray Fincham)

Coseph Carl Boyl

70

Pittsburgh

32

31

mani.
600
710
1043
DORS
737

Martin, A.D.

Provina

Riddle, George W

Shahan Brothers Coal

Shaw

Stanley Coal Company

Ream #5

Victor Mining Company

Victory

M.V.Freeport

McKinlay

M.V.Freeport

Company.

214

Taylor Henry
212

1084

Post

(W. Koskey)

Company.

M.V.Freeport

70

Redstone

n

,

(MINE INDEX NO. 710) FOR ALL SHIP

,

FOR THE COALS OF HIS PROVINS MINE

quested the establishment of certain
minimum prices which are set forth in
cents per ton. The minimum prices

7)

CLASSIFICATIONS AND MINIMUM PRICES

unless the Director shall otherwise order.
In Docket No. A-888, instead of proposing the establishment of price classifications for his coals, for all shipments
except truck, the petitioner therein re-

J

NO. 3, FOR THE ESTABLISHMENT OF PRICE

fications for his coals, for all shipments
except truck, the petitioner therein requested the establishment of certain
minimum prices which are set forth in
cents per ton. The minimum prices thus
proposed are not those applicable to rail
shipments, to any market area, of coals
which the petition alleges are analogous
to those produced at the Post Mine, nor
are they the minimum prices that would
be applicable if the proposals of the Dis.
trict Board in Docket No. A-908 were
adopted. The petition states that the
coals produced at the Post Mine are
similar to those produced at the Kano
Mine (Mine Index No. 83) of the Pecks
Run Coal Co.
It appears that the price classifications
and minimum prices, for all shipments

J

NO. 848) FOR TRUCK SHIPMENT: AND IN
THE MATTER OF THE PETITION OF A. A.
PROVINS, A CODE MEMBER IN DISTRICT

Docket No. A-888, instead of proposing the establishment of price classi.

71

FICATIONS AND MINIMUM PRICES FOR THE

COALS OF HIS POST MINE (MINE INDEX

In days the Director from the otherwise this final Order. order sixty

It is further ordered, That the relief
herein granted shall become final sixty
(60) days from the date of this Order,

,

FOR THE ESTABLISHMENT OF PRICE CLASSI-

of the Bituminous Coal Act of 1937.

3

LOR A CODE MEMBER IN DISTRICT NO. 3.

Instituted Pursuant to section 4 II (d)

R

ING TEMPORARY RELIEF AND CONDITIONALLY PROVIDING FOR FINAL RELIEF IN THE
MATTER OF THE PETITION OF HENRY TAY-

(60) date
unless
shallof

Bituminous Coal Division in Proceedings

as

ORDER OF CONSOLIDATION AND ORDER GRANT-

It is further
That the 1ellet
herein
grantedordered,
shall become

erning Practice and Procedure before the

31

[Dockets Nos. A-888, A-904, A-908)
PART 323-MINIMUM PRICE SCHEDULE,
DISTRICT No. 3

31

DIVISION

before the Bituminous Coal Division
Proceedings Instituted Pursuant to la
tion
II (d) of the Bituminous Coal sec. Act
of 1937.

,

CHAPTER III-BITUMINOUS COAL

tions to stay, terminate, or modify the
temporary relief herein granted may be
filed with the Division within forty-five
(45) days from the date of this Order,
pursuant to Rules and Regulations Gov-

6

TITLE 30-MINERAL RESOURCES

8

3828

B

10

15

B

B

34

13
Acting Director.

DAN H. WHEELER

12
sary in order to effectuate the purposes

B[F. R. Doc. 41-5514; Filed, July 30, 1941; 10:00 a. m.)

B
11

10

9
[SEAL]
It is further ordered, That the relief

It is further ordered, That pleadings inArnold).

RakerstownMining Company

Lealle No.

Lealle Company. The

(60) days from the date of this Order,Kanswha Valley Coal Co

ant to the Rules and Regulations Gov-

adding thereto Supplement T. whichIt appearing that the above-entitled

adding thereto Supplement R-III. andrary and permanent, of price classifica-

rary relief herein granted may be filedSize groups

IN DISTRICT NO. 3

above-entitled matters and applicationsOF PRICE CLASSIFICATIONS AND MINIMUM

8
solidated.

7

DF
a

F
DE

$

F
DE

,

4
DE

3

F
DE

2
1
52
opposition to the original petitions in theDISTRICT BOARD 3 FOR THE ESTABLISHMENT

61

(c) Railroad fuel prices for movement1937, having been duly filed with this

AND IN THE MATTER OF THE PETITION OF

Pittsburgh

No.

Watson & Gooks Charles Gooks!

No.
herein granted shall become final sixtyPittsburgh

No petitions of intervention having

It appearing that this action is neces-VI-Dot Co.. The (Martin J. Newbrough)

Division by the above-named party. re-

supplements are hereinafter set forthTRUCK SHIPMENTSOriginal petitions. pursuant to section

and hereby made a part hereof.

4 II (d) of the Bituminous Coal Act of

group
fuel prices for all movements except via(Prices in cents per not too for shipment into all market areas

via all takes all ports) is amended by

Supplement R-II. I 323.8 (Special prices-

(Alphabetical list of code members) isOF ITS VI-DOT MINE (MINK INDEX NO. 218)

MATTER OF THE PETITION OF THE VI-DOT

R-I, 323.8 (Special prices-(b) Railroad

takes) is amended by adding thereto

PRICE CLASSIFICATIONS AND MINIMUM

I 323.23 (General prices) is amended byPRICES. FOR ALL SHIPMENTS, FOR THE COALS

PRICES FOR THE COALS OF CERTAIN MINES

origin

1043; Group No. 3: 212, 213, 214, 737,323.23 General prices-Supplement T

TRICT NO. 3, FOR THE ESTABLISHMENT OF

of the Act:
ner hereinafter set forth: and

questing the establishment, both tempo-

Seam

Mine

to stay, terminate or modify the tempo-entitled matters: and

the Bituminous Coal Act of 1937.Code member Index

granting of temporary relief in the man-

Dated: July 10. 1941.tions and minimum prices for the coals

with the Division within forty-five (45)

Rowan No.

Monon

days from the date of this Order, pursu-TEMPORARY AND CONDITIONALEY FINAL EFFECTIVE MINIMUM PRICES FOR DISTRICT No. 31

M. V. Freeport

Hart

Size group Non.Hart, Oliver

Instituted Pursuant to section II (d) ofFreight

been filed with the Division in the above-Rowan & Son. B.

unless the Director shall otherwise order.Shahan Brothers Coal Company a Shahan)

Pittsburgh(W.Z. Koskey).

ing of necessity has been made for the

of certain mines in District No. 3: and

Shahan No.

erning Practice and Procedure Before the

matters raise analogous issues: and

Bituminous Coal Division in Proceedings[Alphabetical Nating of code members having railway loading facilities, showing price classification by sise group Nos.)Arrold & Martin CE. c.

Rhahan Brothers Coal Company a. R. Shahan

It appearing that a reasonable show-

7

180
180
190

100

&

183

200

a

200

4

200

193

200

200

226

235
3

Pittsburgh

Pittsburgh

Pittsburgh

Pittsburgh

Barris

Redstone

Shahan

VI-Dot

B

M. Freeport

225
225
2

225

225
Lewis

Preston

Preston
Monon
County

ORDER OF CONSOLIDATION AND ORDER GRANT-

It is further ordered. That, pending

For railroad fuel prices, add these mine

For railroad fuel prices, add these mine

final disposition of the above-entitled

index numbers to the respective groups

Index numbers to the respective groups

matters, temporary relief is granted as

ING TEMPORARY RELIEF AND CONDITION-

set forth in $ 323.8 (c) in Price Schedule

set forth in 323.8 (b) in Price Schedule

follows: Commencing forthwith, 323.6

1175; Group No. 2: 633, 669. 848, 961,

ALLY PROVIDING FOR FINAL RELIEF IN THE

No. 1. Group No. 1: 586, 596, 710, 1082,

1082, 1175; Group No. 2: 633, 669, 848,

amended by adding thereto Supplement

COAL COMPANY, A CODE MEMBER IN DIS-

961, 1043; Group No. 3. 212, 213, 214,

No. 1. Group No. 1: 586, 596, 710 (a),

Vincent No

Nixon
For
1084.

Redstone
M. V. Freeport

Preston

M. V. Freeport

Victory

Hunt Bros

contained in these supplements is to be read in the light of the classifications, prices, instructions, exceptions and other provisions contained in Part 328, Mialmum

Price Schedule for District No. 3 and Supplemental thereto.

FOR ALL SHIPMENTS EXCEPT TRUCK

- 323.6 Alphabetical list of code inbers-Supplement R-IMine

Beam

Mine name

212
213
Code member

material

Albert
The

West Fork Coal & Coke Company (L. D. Perry).

For Mannaret Lillian (Fox Coal Co.)

Note:

$ 323.8 Special prices- Railroad

323.8 Special prices-(b) Railroad

matters be, and they hereby are, con-

all ports-Supplement R-III.

DISTRICT No. 3

takes-Supplement R-IL

No.

Index
Freeport

Kannedy Issac

M. V. Freeport

Ream #5

Taylor.

737, 1084.

It is ordered, That the above-entitled

(Docket Nos. A-931 and A-938

fuel prices for movement via all lakes-

PART 323 MINIMUM PRICE SCHEDULE

fuel prices for all movements except via

Banley Coal Company

Taylor,

2
2

Price
group
60

60

origin
Freight
group No

LS
LS

dist.
SubDAN H. WHEELER,James, Wm. W

217 James

Pittsburgh

(SEAL]

ordered.

III

origin

sifications and minimum prices for the

Leslle Company. The

Seam

Mine

Seam

Beech III Vein

Beech Coal Company (Files Duncan)

RELIEF IN THE MATTER OF THE PETITION

Mine

Code member

110

dist.

Code member

Beech III Vein

Beech Coal Company (Jiles Duncan)

III

110

NOTE: The material contained in these supplements is to be read in the light of the classin-Watson & Gocke

No.
Mine

index

Acting Director.Shahan Brothers Coal

Index

part hereof.

the above-entitled matter, and applica-

rates.

2

7

169

190

180

168

168

168

Mine Index No. 110 shall be included in Price Group 2 and shall be accorded the

Perry).

Schedule for District No. 11 for shipment into various market areas. It shall also be

accorded adjustments in O. b. mine prices on account of differences in freight rates

(F. R. Doc. 41-5515; Filed, July 30, 1941; 10:00 a. m.)

(Charles E. Gocke)

as those applicable to other mines in Freight Origin Group 60 having the same freight

prices shown for other mines in Price Group 2 listed in Part 331 in Minimum PriceFOR ALL SHIPMENTS EXCEPT TRUCK

cations, prices, instructions. exceptions and other provisions contained in Part 331, MinimumCompany, (L. D.

1

6
178

178

190

178

200

178
5

193

193

193

193

198

193

193

210

200

4
193

235

225

218

218

218

210

200

218
2
Size groups$ 331.5 Alphabetical list of code members-Supplement R-Iin opposition to the original petition in

Z20

218

223

223

218

205

218

218

235

Z25

223

223
County

Preston

Preston

Gilmer

and

Pittsburgh

granting of temporary relief in the man-

Mine Index No. 110 shall be accorded the same prices for railroad locomotive fuel as(Martin J. New-ner hereinafter set forth: and

shown in $ 331.10 in Minimum Price Schedule for District No. 11 as those shown forbrough).No petitions of intervention having

Mine Index Nos. 1.2. 3. 23, 30. 56, 68, 70, 73.

Marlon

Price

Lealle No.

M. V. Freeport

Shahan No. 1.

VI-Dot

Pittsburgh

Harrison

No.
Vincent No.

Pittsburgh

Harrison

220

218
221

219

223

Freight

(Docket No. A-900]

, 323.8 Special prices-(b) Railroad

tions to stay. terminate, or modify the

The following action being deemed

323.8 Special prices-(c) Railroad

fuel prices for all movements except via

temporary relief herein granted may be

necessary in order to effectuate the pur-

fuel prices for movement tia all lakes-

lakes-Supplement R-II.

filed with the Division within forty-five

all rts-Supplement R-III.

poses of the Act:

For railroad fuel prices, add these mine

(45) days from the date of this Order,

For railroad fuel prices, add these mine

It is ordered, That, pending final dis-

index numbers to be respective groups set

pursuant to Rules and Regulations Gov-thereto Supplement R-I, and I 331.10

It is further ordered, That the reliefset forth in 323.8 (c) in Price Schedule

temporary relief be, and the same hereby$ 323.23 General ces-Supplement T

fuel) is amended by adding thereto Sup-

Index numbers to be respective groups

position of the above-entitled matter.

(60) days from the date of this Order.593, 698, 1015; Group No. 2: 933; Group

Instituted Pursuant to section 4 II (d)hereinafter set forth and hereby made a

593, 698, 1015: Group No. 2: 933; Group

forthwith 331.5 (Alphabetical list of

forth in 323.8 (b) in Price Schedule

erning Practice and Procedure Before the

No. 1. Group No. 1: 218, 221, 222. 223.

Bituminous Coal Division in Proceedings

No. 1. Group No. 1: 218, 221, 222. 223,

331.10 Special prices: Railroad locomotive fuel-Supplement R-II

of 1937, having been duly filed with this

questing the establishment of price clas-

DISTRICT No. 11

Mine

Sub-

is. granted as follows: Commencing

An original petition. pursuant to sec-

Code member Index

Mine

been filed with this Division in theWest Fork Coal & Coke

Beam

TAIN MINES IN DISTRICT NO. 11

MINIMUM PRICES FOR THE COALS OF CER-

CONDITIONALLY PROVIDING FOR FINAL

plement R-II, which supplements are

No. 3: 220; Group No. 6: 219.

Dated: July 18, 1941.TRUCK SHIPMENTS

(Special prices: Railroad locomotive

No. 3: 220; Group No. 6: 219.

unless it shall it shall otherwise bePrice Schedule for District No. 11 and Supplements thereto.

of the Bituminous Coal Act of 1937.It is further ordered, That pleadings

code members) is amended by adding

herein granted shall become final sixtyTEMPORARY AND CONDITIONALLY FINAL EFFECTIVE MINIMUM PRICES FOR DISTRICT No. 11[Prices in cents per net ton for shipment into all market areas)

Company, (J. 8. ShaIt appearing that a reasonable show-

OF DISTRICT BOARD 11 FOR THE ESTAB-

ing of necessity has been made for theVI-Dot Coal Co., The

LISHMENT OF PRICE CLASSIFICATIONS AND

Division by the above-named party. re-

PART 331-MINIMUM PRICE SCHEDULE.

han).

tion II (d) of the Bituminous Coal Act

group

ORDER GRANTING TEMPORARY RELIEF AND

group No.

No.

coals of certain mines in District No. 11:

(F. R. Doc. 41-5516; Filed, July 30, 1941; 10:01 a. m.)

above-entitled matter; and

FEDERAL REGISTER, Friday, August 1, 1941
TITLE 32-NATIONAL DEFENSE
CHAPTER XI-OFFICE OF PRICE ADMINISTRATION AND CIVILIAN SUPPLY

PART 335-CHEMICALS
CIVILIAN ALLOCATION PROGRAM FOR COTTON
LINTERS

It is essential that there be provided
an increasing supply of chemical grade

cotton linters, used both in chemical
manufacture and in the making of
smokeless powder. Cotton linters are

cut from cottonseed in such a manner
that first cut or mattress linters are not
available for chemical processing. It is
therefore necessary to require that only
a limited amount of the total cut be removed in the first cut process.

Accordingly, pursuant to the powers
vested in me by Executive Order No. 8734,

cottonseed by a crushing mill that makes
only one cut.*
1335.14 Reports. Each cottonseed
oil crushing mill engaged in the produc-

tion of cotton linters shall each month
report to the Office of Production Management the manner of its compliance
with this program, and such report shall
include a certified statement of the intake
of cottonseed by such mill and its pro-

duction of lint, by grades. And every

person purchasing second cut chemical

grade and mill run linters shall each

month report to the Office of Production
Management his purchases and dispositions of such linters.
1335.15 Enforcement. This program
shall be administered and enforced by the
Office of Production Management.
Issued this 31st day of July, 1941.
LEON HENDERSON,

Administrator

particularly section 2(a) thereof, the following program is announced:

(F. R. Doc. 41-5602 Filed, July 31, 1941;

1335.11 Cutting of linters. No cot-

11.51 a. m.)

production of cotton linters and using

Notices

111335.11 to 1335.15, inclusive, issued pursuant to Executive Order No. 8734.

1335.12 Sale of linters. No cottonseed oil crushing mill making more than
one cut shall sell any of its second cut
chemical grade linters, nor shall any mill
making but one cut sell more than 20%
of its mill run linters, other than for ultimate use in the chemical industry: nor,
on and after July 31, 1941, regardless of
the terms of any contract of sale or purchase, or other commitment, entered into

prior to such date, shall any person in
possession of mill run or second cut
chemical grade linters make any deliverles thereof other than in accordance with

the foregoing. except that any person
seeking to deliver linters in accordance
with such a contract of sale entered into
prior to July 31, 1941 may apply for permission to make such delivery. Permission to make delivery may be granted by
the Director of Priorities of the Office of
Production Management, with the concurrence of the Director of Civilian Allocation of the Office of Price Administration and Civilian Supply. Provided, how.
ever, That nothing in this program shall
be construed to apply to sales or deliveries to the United States, or to the Government of any country whose defense
the President deems vital to the defense
of the United States.
1,335.13 Definitions. As used in this

cut from
means
the cut-

order, ting those of linters cottonseed "first resulting cotton by a crushing linters" first mill

that

makes more than one cut. "Second cut
chemical grade linters" means all those
linters resulting from all cuts subsequent
to the first. "Mill run linters" means all
those linters resulting from the cutting of
6 F.R. 1917.

No.149 a

1. General. The notes of both series
will be dated August 1, 1941, and will
mature August 1, 1943. The owner's
name and address, and the date of issue

will be entered on each note at the time
of its issue by a Federal Reserve Bank
The month in which payment is received
by a Federal Reserve Bank or Branch, or
by the Treasurer of the United States,
will determine the purchase price and issue date of each note. The notes may
not be transferred. No hypothecation of
the notes on any account will be recognized by the Treasury Department and
they will not be accepted to secure deposits of public money. Except as herein
provided, the notes will be subject to the
general regulations of the Treasury Department, now or hereafter prescribed
governing bonds and notes of the United
States.

2. Denominations and interest. The
notes of Tax Series A-1943 will be issued
in denominations of $25, $50. and $100.
amount of 16 cents on each $100 principal amount. that is. 4 cents on each $25.

first cut linters to a higher proportion
than 20% of its total cut.*

II. DESCRIPTION OF NOTES

and interest thereon will accrue during
each month after August 1941, in the

tonseed oil crushing mill engaged in the
more than one cut in the process shall cut

3831

8 cents on each $50. and 16 cents on each

TREASURY DEPARTMENT.
Bureau of the Public Debt.
[1941 Department Circular No. 667]
THE UNITED STATES OF AMERICA TREASURY

$100 denomination of note. The notes
of Tax Series B-1943 will be issued in
denominations of $100. $500. $1,000. $10.-

000 and $100,000. and interest thereon will

accrue each month after August 1941. in
the amount of 4 cents on each $100 prin-

NOTES, DATED AUGUST 1, 1941, DUE

cipal amount, that is 4 cents on each

AUGUST 1, 1943, ISSUED AT PAR AND Ac-

ACCRUED INTEREST IN PAYMENT OF

$100, 20 cents on each $500, 40 cents on
each $1,000. $4.00 on each $10,000. and
$40.00 on each $100,000 denomination of

FEDERAL INCOME TAXES

note. In no case, however, shall interest

CRUED INTEREST. ACCEPTABLE AT PAR AND

JULY 1941.
L OFFERING OF NOTES

1. The Secretary of the Treasury, pur-

suant to the authority of the Second
Liberty Bond Act, as amended, offers for
sale, to the people of the United States,
through the Federal Reserve Banks, at
par and accrued interest, two issues of

nontransferable notes of the United

States, designated Treasury Notes of Tax
Series A-1943, and Treasury Notes of Tax
Series B-1943. As hereinafter provided,
the notes of both series will be acceptable
at par and accrued interest in payment
of Federal income taxes: Provided, however, That not exceeding $1,200 principal
amount of notes of Tax Series A-1943,
and the accrued interest thereon, will be
accepted from any one owner in any period of twelve consecutive months in pay-

ment of taxes due from such owner. If
not presented in payment of taxes, the
notes will be redeemable at the purchase
price as hereinafter provided.

2. Descriptions of the notes of both
series, and their terms are hereinafter
fully set forth. The notes will be placed
on sale beginning August 1, 1941, and
the sale will continue until December
31, 1941, unless earlier terminated, as to
either or both series, by the Secretary of
the Treasury.

accrue beyond the month in which the
note is presented in payment of taxes, or
beyond its maturity. Exchanges of authorized denominations of -each series
from higher to lower. but not from lower
to higher, may be arranged at the Federal Reserve Bank of issue.
3. Purchase price, and tax-payment
value. The notes of both series will be
sold at par during August 1941, and will
be sold at par and accrued interest during each subsequent month while they
remain on sale, the purchase price for a
note of any denomination of either series advancing each month after August
1941. in the amount of one month's interest on that note. Tables, showing for
each month from August 1941. to August
1943, for each denomination of each series, the principal amount of the notes

with accrued interest added, are ap.

pended to this circular. The total shown

for any denomination for any monthAugust through December 1941-while
the notes remain on sale, is the purchase

price, or cost, of the note during that
month. Also, the total shown for any
denomination for any month thereafter
is the tax-payment value, or the amount
at which the note will be acceptable dur-

ing that month in payment of Federal
income taxes as herein provided.

4. Acceptability in payment of taxes.
The notes of both series (but not more

FEDERAL REGISTER, Friday, August 1, 1941

3832

than $1,200 principal amount of notes of
Tax Series A-1943 from any one owner

designate agencies other than those
herein provided for the sale of. or for

in any period of twelve consecutive

the handling of applications for Treasury
notes to be issued hereunder.
3. Delivery of notes. Upon acceptance

income taxes (current and back personal
and corporation taxes, and excess-profits

of full-paid applications, notes will be

months) will be acceptable, at par and
accrued interest, in payment of Federal

taxes). The conditions of presentation,
surrender and acceptance of the notes in

payment of such taxes are set forth in
Section IV of this circular.
5. Payment or redemption for cash.
The notes of either series may not be
called by the Secretary of the Treasury

for redemption prior to maturity. If

such notes are not presented in payment

of taxes: (1) they will be payable at ma-

turity, or (2) they will be redeemable
prior to maturity, at the owner's option

and request, as hereinafter provided in
Section V. and in either case payment
will be made only at the price paid for
the notes.

6. Taxation. Income derived from the
notes shall be subject to all Federal taxes,

now or hereafter imposed. The notes
shall be subject to estate, inheritance,
gift or other excise taxes, whether Federal or State, but shall be exempt from
all taxation now or hereafter imposed
on the principal or interest thereof by
any State, or any of the possessions of
the United States, or by any local taxing
authority.
III. PURCHASE OF NOTES

1. Applications and payment. Applications will be received by the Federal
Reserve Banks and Branches, and by the
Treasurer of the United States, Washington. D.C. Banking institutions generally
may submit applications for account of
customers, but only the Federal Reserve
Banks and the Treasurer of the United
States are authorized to act as official

agencies. Every application must be
accompanied by payment in full, at par

and accrued interest to the month in

which payment is received by a Federal
Reserve Bank or Branch, or the Treasurer of the United States. Any form of
exchange, including personal checks, will
be accepted subject to collection. and
should be drawn to the order of the Federal Reserve Bank or of the Treasurer of
the United States, as the case may be.
Any depositary. qualified pursuant to the
provisions of Treasury Department Circular No. 92 (revised February 23, 1932,
as supplemented) will be permitted to
make payment by credit for notes applied

for on behalf of itself or its customers
up to any amount for which it shall be
qualified in excess of existing deposits.
2. Reservations. The Secretary of the
Treasury reserves the right to reject any

application in whole or in part, and to
refuse to issue or permit to be issued
hereunder any notes in any case or in
any class or classes of cases if he deems

such action to be in the public interest,
and his action in any such respect shall
be final. If an application is rejected, in
whole or in part, any payment received
therefor will be refunded. The Secretary
of the Treasury. in his discretion, may

duly issued and, unless delivered in person, will be delivered by registered mail

within the Continental United States,
the Territories and Insular Possessions

of the United States, the Canal Zone and

the Philippine Islands. No deliveries
elsewhere will be made.

4. Form of application. In applying
for notes under this circular, care should
be exercised to specify whether those of
Tax Series A-1943, or Tax Series B-1943
are desired, and there must be furnished
the name and address of the individual,
corporation or other entity in which the
notes are to be issued: and if address
for the delivery of the notes is different,
appropriate instructions should be given.
The name should be in the same form
as that used in the Federal income tax
return of the purchaser. The use of an
official application form is desirable, but
not necessary. Appropriate forms may
be obtained on application to any Federal Reserve Bank or Branch, and banking institutions generally will supply such

fore advance

Tax Series A-1943 may be redeemed
B-1943

but redeemed notes maturity of before Tax without Series may notice. be. be

maturity only after 60
days from date of issue and on 30 days
advance notice. The timely surrender of
a note of Tax Series B-1943, bearing a
properly executed request for payment
will be accepted as constituting the ad.
vance notice required hereunder.
2. Execution of request for payment.
The owner in whose name the note is
inscribed must appear before one of the
officers authorized by the Secretary of
the Treasury to witness and certify requests for payment, establish his Iden.
tity, and in the presence of such officer
sign the request for payment appearing

on the back of the note, adding the

address to which check is to be mailed.
After the request for payment has been
so signed, the witnessing officer should
complete and sign the certificate provided for his use,
3. Officers authorized to witness and
certify requests for payment. Any officers authorized to witness and certify
requests for payment of United States
Savings Bonds, as set forth in Treasury
Department Circular No. 530. Fourth
Revision, as amended are hereby author-

ized to witness and certify requests for

forms.

IV. PRESENTATION IN PAYMENT OF TAXES

1. After three months from month of
purchase (as shown by the date of issue
on each note), but not before January
1942, during such time, and under such

rules and regulations as the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury,
shall prescribe, notes issued hereunder in
the name of a taxpayer (individual, cor-

poration, or other entity) may be presented and surrendered by such taxpayer, his agent, or his estate, to the
Collector of Internal Revenue, to whom
the tax return is made, and will be recelvable by the Collector at par and
accrued interest from August 1941, to
the month, inclusive (but no accrual beyond August 1943), in which presented in

payment of any Federal income taxes
(current and back personal and corpora-

tion taxes, and excess-profits taxes)

assessed against the original purchaser
or his estate, but not more than $1,200
principal amount of notes of Tax Series
A-1943, and the accrued interest thereon,

may be accepted by the Collector in any
period of twelve consecutive months in
payment of Federal Income taxes due

from such owner. The notes must be
forwarded to the Collector at the risk
and expense of the owner, and, for his
protection, should be forwarded by

registered mail, if not presented in

person.

V. CASH REDEMPTION AT OR PRIOR TO
MATURITY

1. General Any Treasury note of Tax
Berles A-1943 or Tax Series B-1943 will
be redeemed for cash at the purchase

price at or before maturity. Notes of

cash redemption of Treasury notes

issued under this circular. Such officers
include United States postmasters, certain other post office officials, and the
executive officers of all banks and trust
companies incorporated in the United
States or its organized territories, including officers at branches thereof who

are certified to the Treasury Depart-

ment as executive officers.
4. Presentation and surrender. Notes
bearing properly executed requests for

payment must be presented and sur-

rendered to the Federal Reserve Bank of

issue at the expense and risk of the
owner. For the owner's protection,

notes should be forwarded by registered
mail, if not presented in person.
5. Disability or death. In case of the
disability or death of the owner, and the
notes are not to be presented in payment
of Federal income taxes due from his
estate, instructions should be obtained
from the Federal Reserve Bank of issue
before the request for payment is executed, or the notes presented.
6. Partial redemption. Partial cash
notes of either series, corto an authorized
made
inbethe
same manner,
demption tion, responding
may
of denominabeing

for In case

redemption of a note, the
be reissued with the same date of issue
as the note surrendered.
of any note,
request appropriate payment. changes remainder made of partial in will the

either or on

fore will be made

7. Payment. maturity, at maturity Payment redemption only by be- the

Bank that
will be made by

to of the owner, and

Federal note, and Reserve check issued mailed drawn the to

thethe
address
in his for
request
order given
will pay- be
ment. In any case, payment

FEDERAL REGISTER, Friday, August 1, 1941
made at the purchase price of the note,

that is, at par and accrued interest (if

any) paid at the time of purchase.
VI GENERAL PROVISIONS

TREASURY SERIES B-1943

3833

month-August through December

notes remain is

PURCHASE PRICE AND TAX-PAYMENT VALUE
DURING SUCCESSIVE MONTHS

or
the 1941-while Purchase the Price,
Cost, of on the sale, note

month

Table, showing for each month from

1. Federal Reserve Banks, as fiscal

or as

the

any denomination

August 1941, to August 1943, for notes of
each denomination, the principal amount

shown month during for thereafter that Also, the for total any
is the Tax-Payment
Value, or the amount at which the note
will be acceptable during that month in
payment of Federal income taxes.

with accrued interest added. The total
shown for any denomination for any

may agents ized to be of perform appropriate United such and States, services necessary are author- acts under

the provisions of this circular, and under
any instructions given by the Secretary

Denomination

of the Treasury.

2. The Secretary of the Treasury may

$100

$500

$1,000

at any time or from time to time supplement or amend the terms of this cir-

cular, or of any amendments or supplements thereto, and may at any time or
from time to time prescribe amendatory
rules and regulations governing the offering of the notes, information as to
which will promptly be furnished to the
Federal Reserve Banks.
[SEAL] HENRY MORGENTHAU, Jr.

August 1941

$100.00
1941

October 1941

November 1941
December 1941

DURING SUCCESSIVE MONTHS

Table, showing for each month from
August 1941, to August 1943, for notes of

each denomination, the principal amount
with accrued interest added. The total
shown for any denomination, for any

month-August through December

$1,000.00

$10,000

$100,000
100,040

500.30

1,000.40

100.06

500.40

1,000.80

10,008

1,001.20

10,012

100,080
100,120

1,001.60

10,016

100,160

$1,002.00
1,002.40

$10,020

$100,200

10,024

10.02

100.240
100,280

501.80

1,002.80
1,003.20
1,003.60

10,036

502.00

1,004.00

10,040

502.20

1,004.40
1,004.80
1,005.20
1,005.60

Be
500.80

10,004

Tax-payment value
$100.20

May 1942

PURCHASE PRICE AND TAX-PAYMENT VALUE

$500.0

100.04

100.16

June 1942

TREASURY NOTES-TAX SERIES A-1943

$300,000

Purchase Price

January 1942
February 1942
March 1942
April 1942

Secretary of the Treasury.

$10,000

July 1942
August 1942
September 1942
October 1942
November 1942
December 1942
January 1943
February 1943
March 1943
April 1943

$501.0

100.24
100.2

501.30

100.32
100.36
100.40

501.60

501.40

502.00
502.00
502.80

503.00
503.20
503.40
503.00
504.00

1,007.20
1,007.60
1,008.00

504.20

1,008.40

503.80

May 1943
June 1943

1,006.00
1,006.40
1,006.80

504.40

July 1943
August 1943

504.00
504.80

1941-while the notes remain on sale, is
the Purchase Price, or Cost, of the note

10,082

10,044
10,048
10,052
10,056
10,060
10,064
10,068
10,072
10,076
10,080
10,084
10,068

1,009.20
1,009.60

100,320
100,360
100,400
100,440

10,002

10,096

100,520
100,560
100,000
100,640
100,660
100,720
100,760
100,800
100,840
100,880
100,920
100.9

(F. R. Doc. 41-5589; Filed, July 31, 1941; 10:13 a. m.)

during that month. Also, the total

shown for any denomination for any
month thereafter is the Tax-Payment
Value, or the amount at which the note
will be acceptable during that month in
payment of Federal income taxes.

WAR DEPARTMENT.
(Contract No. w 585 ac-45
SUMMARY OF CONTRACT FOR SUPPLIES
CONTRACTOR: UNILOY ACCESSORIES COR-

Denomination
$25

PORATION
$100

$50

Amount: $1,010,278.14

Purchase Price
August 1941
September 1941
October 1941
November 1941
December 1941

$25.00

$50.

50.08

Place: Matériel Division, Air Corps,

$100.00
100.10
100.82
100.48
100.64

Tax payment value
January 1942

February 1942
March 1942

April 1942
May 1942
June 1942

July 1942
August 1942

September 1942
October 1942

November 1942
December 1942

January 1943
February 1943
March 1943
April 1943
1943

1943

$25.20

$50

Contract for: Oxygen Regulators

$100.8

U. 8. Army, Wright Field, Dayton, Ohio.
The supplies and services to be obtained by this instrument are authorized
by, are for the purpose set forth in, and
are chargeable to Procurement Authority AC 299 P 123-30 A 0021-13, the avail-

able balance of which is sufficient to

cover cost of same.

This contract, entered into this 16th
day of June 1941.

Scope of this contract. The contractor
Oxshall furnish and deliver
ygen Regulators

for

the

con-

sideration stated one million, ten thousand two hundred seventy eight dollars
and fourteen cents ($1,010,278.14) in
strict accordance with the specifications,
schedules and drawings, all of which are
made a part hereof.

July 1943
August 1943

Approved by the Under Secretary of War

June 21, 1941.

Changes. Where the supplies to be
furnished are to be specially manufactured in accordance with drawings and
specifications, the contracting officer may
at any time, by a written order, and without notice to the sureties, make changes
in the drawings or specifications, except
Federal Specifications. Changes as to
shipment and packing of all supplies may
also be made as above provided.

Delays-Damages. If the contractor

refuses or fails to make deliveries of the

materials or supplies within the time
specified in Article 1, or any extension
thereof, the Government may by written

notice terminate the right of the con-

tractor to proceed with deliveries or such
part or parts thereof as to which there
has been delay.

Payments. The contractor shall be
paid, upon the submission of properly
certified invoices or vouchers, the prices
stipulated herein for articles delivered
and accepted or services rendered, less
deductions, if any, as herein provided.
Unless otherwise specified, payments will

be made on partial deliveries accepted
by the Government when the amount
due on such deliveries 80 warrants; or,
when requested by the contractor, payments for accepted partial deliveries
shall be made whenever such payments

FEDERAL REGISTER, Friday, August 1, 1941

3834

would equal or exceed either $1,000 or 50

percent of the total amount of the contract.

Option. The Government is granted
the right and option at any time during
the life of this contract to increase the
quantity of Regulators called for under
Item 1 by any amount not exceeding

not more than the unit
in Article

The

the further right and option at any

Regulators. price stipulated at Government 1 is for granted time said

during the life of this contract to increase the quantity of Regulators called

for under Item 2 by any amount not

exceeding at not more than

the unit price stipulated in Article 1 for
said Regulators.

Advance payments. At any time and
from time to time, after the approval
of this contract, at the request of the
Contractor and subject to the approval
of the Chief of the Air Corps as to the
necessity therefor, the Government
shall advance to the Contractor, without
payment of interest therefor by the Contractor, sums not to exceed three hundred three thousand eighty three dollars
and forty-four cents ($303,083.44) or
thirty percentum (30%) of the contract
price.

Termination when contractor not in
default. If. in the opinion of the contracting officer upon the approval of

the Secretary of War, the best interests
of the Government so require, this con-

tract may be terminated by the Gov-

ernment, even though the contractor be

not in default, by a notice in writing
relative thereto from the contracting

officer to the contractor.

This contract authorized under the
provisions of section 1 (a), Act of July
1940.

FRANK W. BULLOCK

Major. Signal Corps,

Assistant to the Director of
Purchases and Contracts.

[P. R Doc. 41-5592 Filed, July 31, 1941;
10:35 a m.)

Scope of this contract. The contrac-

tor shall furnish and deliver mainte-

nance parts for airplanes for
the consideration stated seven million
eight hundred nine thousand five hun-

dred ninety seven dollars ($7,809,597.00)

in strict accordance with the specifications, schedules and drawings. all of
which are made a part hereof.
Changes. Where the supplies to be
furnished are to be specially manufactured in accordance with drawings and
specifications, the contracting officer
may at any time, by a written order, and

without notice to the sureties, make

changes in the drawings or specifications,
except Federal Specifications. Changes
as to shipment and packing of all sup-

U. S. Army. Wright Field, Dayton, Ohio.
The supplies and services to be obtained by this instrument are authorized
by. are for the purpose set forth in, and
are chargeable to Procurement Authority
AC 28 82-3037 A 0705-01, the available
balance of which is sufficient to cover

cost of same.

This contract. entered into this 27th

day of June 1941.

Approved by the Under Secretary of War

June 30, 1941.

thereon, and further agrees to keep

property so insured, free of cost to the
Government, until the same is delivered

to the Government. Such property is to
be considered as delivered to the Govern-

ment upon its final acceptance.
This contract authorized under the
provisions of section 1 (a), Act of July 2
1940.

Assistant to the Director of

Major, Signal Corps,

materials or supplies within the time
specified in Article 1, or any extension
thereof. the Government may by written
notice terminate the right of the contractor to proceed with deliveries or such
part or parts thereof as to which there
has been delay.

Payments. The contractor shall be
paid, upon the submission of properly

Purchases and Contracts

[F. R. Doc. 41-5593: Filed, July 31, 1941

10:35 m.)

(Contract No. W 535 ac-18864: 4765
SUMMARY OF CONTRACT FOR SUPPLIES
CONTRACTOR: GENERAL MOTORS CORPORA-

certified invoices or vouchers, the prices

stipulated herein for articles delivered
and accepted or services rendered, less
deductions, if any, as herein provided.
Unless otherwise specified, payments will
be made on partial deliveries accepted
by the Government when the amount due
on such deliveries so warrants; or, when
requested by the contractor, payments
for accepted partial deliveries shall be
made whenever such payments would
equal or exceed either $1,000 or 50 percent of the total amount of the contract.

Advance payments. Advance pay-

TION, AEROPRODUCTS DIVISION

Contract for:

Propeller As-

semblies and Data.
Amount: $1,481,088.50.

Place: Matériel Division. Air Corps,
U. S. Army, Wright Field, Dayton, Ohio.
The supplies and services to be ob
tained by this instrument are authorized
by. are for the purpose set forth in, and
are chargeable to Procurement Authorities listed below, the available balances
of which are sufficient to cover cost of
same.

AC 34 P 12-3037 A 0705-01

ments may be made from time to time for
the supplies called for when the Secretary
of War deems such action necessary in
the interest of the National Defense.
Price adjustment. The contract prices

day of May 1941.

subject to adjustments for changes in

tor shall furnish and deliver

stated in this contract for Parts are

General It is expressly agreed that
quotas for labor will not be altered on
account of delays in the completion of the

Place: Matériel Division, Air Corps,

payments, if any, theretofore made

refuses or fails to make deliveries of the

Parts.

Amount: $7,809,597.00

is about to be made, such Insurance
be in a sum at least equal to the amount
of such payment plus all other partial

FRANK W. BULLOCK,

CONTRACTOR: CURTISS-WRIGHT CORPORATION, AIRPLANE DIVISION-BUFFALO PLANTS

Airplanes.

possession upon which a partial payment

Delays-Damages. If the contractor

SUMMARY OF CONTRACT 1 FOR SUPPLIES

Contract for: Maintenance Parts for

Fire insurance. The contractor
to insure against fire all property in

plies may also be made as above provided.

labor and material costs.
[Contract No. W 535 ac-20003; 5215)

made prior to the completion of this
contract, shall in the Government

Termination when contractor not in
default. If, in the opinion of the contracting officer upon the approval of the
Secretary of War, the best interests of the
Government so require, this contract may
be terminated by the Government, even
though the contractor be not in default,

AC 26 P 81-3037 A 0705-01
AC 28 P 82-3037 A 0705-01

This contract, entered into this 21st
Scope of this contract. The contrac-

propeller assemblies and data for the
stated One
One

and Fifty
strict accordance

Hundred consideration Eighty Thousand Cents Million ($1,481.- Eighty Four

schedules

all are made a

Eight 088.50) specifications, Dollars in and hereof. drawings with the

Where the

to be
furnished Changes. of which
partspecially
supplies manufac- to be
with
the

at time, by a written

tured specifications, in accordance are contracting drawings order, officer and and

to the
the drawings or

by a notice in writing relative thereto

from the contracting officer to the con-

tractor.

Partial payments. The contracting
officer may, from time to time, authorize
partial payments to the contractor upon
property acquired and/or produced by it
for the performance of this contract.

Title to property where partial payments are made. The title to all preperty upon which any partial payment is

tions, except Federal of

may changes without any notice in sureties, Specifications specifica- make

Changes as to shipment and packing above

all supplies may also be made as

provided. Delays-Damages. If the contractor the

refuses or fails to make deliveries of time

materials or supplies within the

Approved by the Under Secretary of War
June 17, 1941.

FEDERAL REGISTER, Friday, August 1, 1941
in Article 1, or any extension
the Government may

to with or

the
specified thereof, notice terminate right of by the written con-

thereof as

part tractor or parts proceed deliveries to which there such

has been delay.

The

the

invoices or vouchers,

paid, Payments. upon submission contractor of the shall properly prices be

herein for
or

if any, as

and stipulated certified accepted services articles herein rendered, delivered less

Unless deductions, made otherwise on partial specified, deliveries payments provided. accepted will

such so
Government

due by be when the on requested deliveries by the when contractor, warrants; the amount pay- or

ments for accepted partial deliveries
shall be made whenever such payments
would equal or exceed either $1,000 or

50 percent of the total amount of the
contract

Option. The Government is granted
the right and option at any time prior
to increase the quantity
of propeller assemblies called for under
paragraph (1) of Article 16 hereof to
any quantity not exceeding
Termination when contractor not in
to

default. If. in the opinion of the contracting officer upon the approval of the
Secretary of War, the best interests of
the Government so require, this contract
may be terminated by the Government,

even though the contractor be not in
default, by a notice in writing relative
thereto from the contracting officer to
the contractor.

This contract authorized under the
provisions of Section 1 (a), Act of July
1940.

FRANK W. BULLOCK,

Major, Signal Corps,
Assistant to the Director of
Purchases and Contracts.
(P. R. Doc. 41-5594: Filed. July 81, 1941;
10:35 a. m.)

Scope of this contract. The contractor
shall furnish and deliver
airplanes, spare parts therefor and data for
the consideration stated not to exceed
Ten Million Five Hundred Eighty-seven
Thousand One Hundred Ninety-two Dollars ($10,587,192.00) in strict accordance
with the specifications, schedules, and
drawings, all of which are made a part
hereof.

Changes. Where the supplies to be
furnished are to be specially manufactured in accordance with drawings and
specifications, the contracting officer may
at any time, by a written order, and without notice to the sureties, make changes
in the drawings or specifications, except
Federal Specifications. Changes as to
shipment and packing of all supplies may

[Contract No. W 535 ac-18393 (4617) ]

CONTRACTOR: DOUGLAS AIRCRAFT COMPANY,
INC.

Contract for:
Airplanes,
Spare Parts Therefor and Data
Amount $10,587,192.00

Place: Matériel Division, Air
Wright
The Army. supplies Field,and
services Dayton, to be Corps, Ohio. ob-

this instrument are authorized

the set

by, are tained are chargeable
for purposeProcureforth in, and
to the by
following

ment Authorities, the available balances
of which are sufficient to cover costs of
same:
AC 34 P 12-30 0 0706-12
AC 28 P 82-30 A 0705-12

This contract, entered into this 16th

day of June 1941.

June Approved 24, 1941. by the Under Secretary of War

erty upon which any partial payment is
made prior to the completion of this contract, shall vest in the Government.
Fire insurance. The contractor agrees
to insure against fire all property in its
possession upon which a partial payment
is about to be made, such insurance to be

in a sum at least equal to the amount of
such payment plus all other partial payments, If any, theretofore made thereon,
and further agrees to keep such property
so insured, free of cost to the Government, until the same is delivered to the
Government.

This contract is authorized under the
provisions of Section 1 (a) Act of July 2,
1940.

FRANK W. BULLOCK,

Major, Signal Corps,
Assistant to the Director of

also be made as above provided.

Delays-Damages. If the contractor

Purchases and Contracts.

refuses or falls to make deliveries of the

materials or supplies within the time
specified in Article 1, or any extension
thereof, the Government may by written
notice terminate the right of the con-

IF. R. Doc. 41-5595 Filed, July 81, 1941;

tractor to proceed with deliveries or such

[Contract No. W 535 ac-120]

part or parts thereof as to which there
has been delay.

10:35 a. m.)

SUMMARY OF CONTRACT FOR SUPPLIES

Payments. The contractor shall be
paid, upon the submission of properly
certified invoices or vouchers, the prices
stipulated herein for articles delivered
and accepted or services rendered, less
deductions, if any, as herein provided.

Spare Parts Therefor, and Data.

Unless otherwise specified, payments will

U. S. Army, Wright Field, Dayton, Ohio.

be made on partial deliveries accepted
by the Government when the amount
due on such deliveries so warrants; or,
when requested by the contractor, payments for accepted partial deliveries shall
be made whenever such payments would
equal or exceed either $1,000 or 50 percent
of the total amount of the contract.
Partial payments will be made as the
work progresses at the end of each cal-

endar month or as soon thereafter as
practicable on authenticated statements

of expenditures of the Contractor ap-

SUMMARY OF CONTRACT FOR SUPPLIES

3835

proved by the Contracting Officer.
Advance payments. Advance payments

may be made from time to time for the
supplies called for, when the Secretary
of War deems such action necessary in
the interest of the National Defense.
Price adjustment. The contract prices

stated in this contract for airplanes and
spare parts are subject to adjustments
for changes in labor and material costs.

It is expressly agreed that quotas for
labor will not be altered on account of
delays in the completion of the airplanes
and spare parts.

Termination when contractor not in
default. If, in the opinion of the con-

tracting officer upon the approval of the
Secretary of War, the best interests of the
Government so require, this contract may
be terminated by the Government, even

though the contractor be not in default,
by a notice in writing relative thereto
from the contracting officer to the contractor.

Title to property where partial payments are made. The title to all prop-

CONTRACTOR: NORTHROP AIRCRAFT, INC

Contract for

Airplanes,

Amount, $16,287,134.00.

Place, Matériel Division, Air Corps,
The supplies and services to be obtained by this instrument are authorized
by, are for the purpose set forth in, and
are chargeable to Procurement Authority
AC 299 111-30 A 0021-13, the available
balance of which is sufficient to cover
cost of same.

This contract, entered into this June
26th, 1941.

Scope of this contract. The contractor shall furnish and deliver
airplanes, spare parts and data for the

consideration stated sixteen million two
hundred eighty seven thousand one hundred thirty four dollars ($16,287,134.00)
in strict accordance with the specifica-

tions, schedules and drawings, all of
which are made a part hereof.
Changes. Where the supplies to be
furnished are to be specially manufactured in accordance with drawings and
specifications, the contracting officer may
at any time, by a written order. and without notice to the sureties, make changes
in the drawings or specifications, except

Federal Specifications Changes as to
shipment and packing of all supplies may
also be made as above provided.

Delays-Damages. If the contractor

refuses or fails to make deliveries of the

materials or supplies within the time

specified in Article 1, or any extension
thereof, the Government may by written
notice terminate the right of the contractor to proceed with deliveries or such
part or parts thereof as to which there
has been delay.
Approved by the Under Secretary of War
June 28, 1941.

FEDERAL REGISTER, Friday, August 1, 1941

3836

Payments. The contractor shall be
paid, upon the submission of properly

certified invoices or vouchers, the prices
stipulated herein for articles delivered
and accepted or services rendered, less
deductions, If any. as herein provided.
Unless otherwise specified, payments will
be made on partial deliveries accepted by
the Government when the amount due
on such deliveries so warrants; or, when
requested by the contractor, payments
for accepted partial deliveries shall be
made whenever such payments would
equal or exceed either $1,000 or 50 percent of the total amount of the contract.
Partial payments will be made as the
work progresses at the end of each calendar month or as soon thereafter as
practicable on authenticated statements

of expenditures of the Contractor approved by the Contracting Officer.

Advance payments. Advance payments may be made from time to time
for the supplies called for, when the Sec-

retary of War deems such action necessary in the interest of the National Defense.

Price adjustment. The contract prices
stated in this contract for airplanes and
spare parts are subject to adjustments
for changes in labor and material costs.
General. It is expressly agreed that
quotas for labor will not be altered on
account of delays in the completion of
the airplanes and spare parts.
Title to property where partial payments are made. The title to all property upon which any partial payment is
made prior to the completion of this contract, shall vest in the Government.

Fire Insurance. The Contractor

agrees to insure against fire all property
in its possession upon which a partial
payment is about to be made, such insurance to be in a sum at least equal to the
amount of such payment plus all other

partial payments, If any, theretofore

made thereon, and further agrees to keep
such property so insured. free of cost to
the Government, until the same is delivered to the Government. Such property is to be considered as delivered to
the Government upon its final acceptance.

DEPARTMENT OF THE INTERIOR.
Bituminous Coal Division.
(Docket No. 1732-FD]
IN THE MATTER OF OWL COAL COMPANY,

A PARTNERSHIP, CODE MEMBER, DxFENDANT

NOTICE OF AND ORDER FOR HEARING

A complaint dated May 6, 1941, pursuant to the provisions of sections 4 II

thereunder;

It is ordered, That a hearing in respect
to the subject matter of such complaint
be held on September 24, 1941, at 10 a. m.

at a hearing room of the Bituminous

Coal Division the Post Office Building,
Terre Haute, Indiana.

It is further ordered, That W. A. Shipman or any other officer or officers of the
Bituminous Coal Division designated by

the Director thereof for that purpose

shall preside at the hearing in such matter. The officer so designated to preside
at such hearing is hereby authorized to
conduct said hearing, to administer oaths
and affirmations, examine witnesses, subpoena witnesses, compel their attendance, take evidence, require the production of any books, papers, correspond-

deemed relevant or material to the inquiry, to continue said hearing from time

(F. R. Doc. 41-5596; Filed, July 31, 1941;
10:36

alleged matters whether in incidental raised the herein, specifically thereto, other

to be guided accordingly.
The matter concerned herewith is

regard to the complaint filed by said
complainant, alleging willful violation by
the above-named defendant of the Bity.
minous Coal Code or rules and regulations thereunder as follows: That during
the period March 1, 1941, to March
1941, inclusive, the defendant violated
the effective minimum prices by selling
to various purchasers including Walter
Scott, Jessie Mason, Teal Whalker, Harold Walter, Levi Gambill, and Chester
Bodwers, approximately 21,200 pounds of
coal prepared over a one-inch bar screen,

produced at the defendant's McCammon
Mine, Mine Index No. 1133 located in Sul-

livan County, Indiana, at the price of
$1.80 per ton f. O. b. the mine whereas

the effective minimum price for such coal,

Size Group No. 6, was and is $2.20 per
ton.

Dated: July 28, 1941.
[SEAL]

DAN H. WHEELER,

Acting Director.

[F. R. Doc. 41-5552; Filed, July 31, 1941;
10:04 a. m.]

to time, and to such places as be may
direct by announcement at said hearing
or any adjourned hearing or by subsequent notice, and to prepare and submit
to the Director proposed findings of fact
and conclusions and the recommendation
of an appropriate order in the premises,

and to perform all other duties in connection therewith authorized by law.
Notice of such hearing is hereby given

to said defendant and to all other parties herein and to all persons and entities
having an interest in such proceeding.

Notice is hereby given, that answer to
the complaint must be filed with the Bltuminous Coal Division at its Washington office or with any one of the statis.

Assistant to the Director of
Purchases and Contracts,

complaint
and related

ence, memoranda or other records

This contract is authorized under the
provisions of section 1 (a), Act of July 2,
Major, Signal Corps,

in addition to the matters

otherwise, and all persons are cautioned

thereto from the contracting officer to

FRANK W. BULLOCK,

All persons are hereby notified that
the hearing in the above-entitled matter
and orders entered therein may concern,

May 15, 1941, by Bituminous Coal Producers Board for District No. 11, a District Board. complainant, with the Bituminous Coal Division alleging willful
violation by the defendant of the Bituminous Coal Code or rules and regulations

before the date herein set for hearing on

1940.

allegations have consented of entry herein of and the an

appropriate
facts
alleged.order on the basis of the

by amendment of the
complaint, petition for intervention, or

Termination when contractor not in
default. If. in the opinion of the contracting officer upon the approval of the
Secretary of War, the best interests of
the Government so require, this contract
may be terminated by the Government,
even though the contractor be not in dethe contractor.

the complaint

(j) and 5 (b) of the Bituminous Coal
Act of 1937, having been duly filed on

Any person or entity eligible under

fault by a notice in writing relative

to to the

shall be deemed to have admitted

301.123 of the Rules and Regulations
Governing Practice and Procedure Before the Bituminous Coal Division in Proceedings Instituted Pursuant to sections
II (j) and 5 (b) of the Bituminous Coal
Act of 1937, may file a petition for inter-

vention not later than five (5) days

the complaint.

tical bureaus of the Division, within

twenty (20) days after date of service
thereof on the defendant; and that any

defendant falling to file an answer within
such period, unless the Director or the

presiding officer shall otherwise order,

[Docket No. 1681-FD]
IN THE MATTER OF A. E. BONDS,
DEFENDANT

NOTICE OF AND ORDER FOR HEARING

A complaint dated April 29, 1941.
pursuant to the provisions of sections

II (j) and 5 (b) of the Bituminous

on by

District No. a

Coal May Act 1, of 1941, 1937, having Bituminous been 13, duly Coal Pro- filed Dis-

trict
Division
ducers minous Board, Board Coal complainant, for alleging with the willful Bitu- Bitu-

violation by the defendant of the
minous Coal Code or rules and regulstions thereunder;
It is ordered, That a hearing in respect to the subject matter of such com-

be held on October 16, 1941. at
a hearing room
at Room

10 plaint minous a. m. Coal at Division Birmingham, of the 303, Bitu- Jef-

ferson County Courthouse,

Alabama.

It further ordered, That Travis Wil- of
liams or any other officer or officers
the Bituminous Coal Division designated
by the Director thereof for that purpose mat-

at the hearing in such

The officer so to

shall ter. preside designated authorised to preside

at such hearing is hereby

FEDERAL REGISTER, Friday, August 1, 1941
conduct said hearing, to administer
oaths and affirmations,
examine
witnesses,
compel wittheir
take evidence,
of any

memoranda or

nesses, production attendance, subpoena books, papers, other require records corre- the
or

ton. as contained in the Schedule of
Effective Minimum Prices for District No.
13 for Truck Shipments, plus an amount
at least equal, as nearly as practicable,

to the actual transportation, handling

or incidental charges of whatsoever kind

or character (exclusive of customary

costs of mine operations) from the trans-

to continue

and to

deemed quiry, spondence, relevant material said such hearing places to the as from inby
hearing time may to direct or time, any adjourned announcement hearing at or said he by

portation facilities at said mine to the

point from which all such charges were
assumed and directly paid by the pur-

subsequent notice, and to prepare and
submit to the Director proposed findings
and conclusions and the recom-

chaser.

of an
and to
of the mendation fact premises, appropriate perform all order other in

Acting Director.
(F. R. Doc. 41-5553: Filed. July 31, 1941:

duties in connection therewith author-

Dated: July 28, 1941
DAN H. WHEELER,

(SEAL)

10:04 a. m.]

ized by law.

of such hearing is hereby given

and to par-

ties and to persons

to Notice said herein defendant all all in other such and entitles
having an interest pro-

ceeding. Any person or entity eligible

under $ 301.123 of the Rules and Regulations Governing Practice and Procedure Before the Bituminous Coal Division in Proceedings Instituted Pursuant

to sections 4 II (j) and 5 (b) of the

Bituminous Coal Act of 1937, may file
a petition for intervention not later than
five (5) days before the date herein set
for hearing on the complaint.
Notice is hereby given that answer to

the complaint must be filed with the

Bituminous Coal Division at its Washington office or with any one of the statistical bureaus of the Division, within
twenty (20) days after date of service
thereof on the defendant; and that any
defendant failing to file an answer within
such period unless the Director or the
presiding officer shall otherwise order,
shall be deemed to have admitted the
allegations of the complaint herein and
to have consented to the entry of an
appropriate order on the basis of the facts
alleged.

All persons are hereby notified that

the hearing in the above-entitled matter
and orders entered therein may concern.

in addition to the matters specifically
alleged in the complaint herein, other
matters incidental and related thereto,
whether raised by amendment of the
complaint, petition for intervention, or
otherwise, and all persons are cautioned
to be guided accordingly.
The matter concerned herewith is in

regard to the complaint filed by said
complainant, alleging willful violation by
the above-named defendant of the Bituminous Coal Code or rules and regulations thereunder as follows: By selling
during February 1941, to Republic-Pratt
Coal Company, Birmingham, Alabama,

approximately tons of 1 1/2" coal,

Size No. 23,

Diamond

(Docket No. 1682-FD)

IN THE MATTER OF C. T. NORMAN,
DEFENDANT

NOTICE OF AND ORDER FOR HEARING

A complaint dated April 29, 1941, pursuant to the provisions of sections 4 II
(j) and (b) of the Bituminous Coal Act
of 1937, having been duly filed on May 1,

tions (j) and 5 (b) of the Bituminous
file a

for intervention Coal Act of not
1937,later
may than petition five (5)

days before the date herein set for hearing on the complaint.
Notice is hereby given that answer to

the complaint must be filed with the

Bituminous Coal Division at its Washington office or with any one of the statistical bureaus of the Division. within
twenty (20) days after date of service
thereof on the defendant; and that any
defendant failing to file an answer within
such period, unless the Director or the
presiding officer shall otherwise order,
shall be deemed to have admitted the
allegations of the complaint herein and
to have consented to the entry of an
appropriate order on the basis of the facts
alleged.

All persons are hereby notified that the
hearing in the above-entitled matter and
orders entered therein may concern, in
addition to the matters specifically alleged in the complaint herein, other mat-

ters incidental and related thereto,

Board, complainant, with the Bitumi-

otherwise, and all persons are cautioned
to be guided accordingly.

Board for District No. 13, a District
nous Coal Division alleging willful violation by the defendant of the Bituminous
Coal Code or rules and regulations thereunder:

It is ordered, That a hearing in respect

to the subject matter of such complaint
be held on October 16, 1941, at 10 a. m.,

at a hearing room of the Bituminous
Coal Division at Room 303, Jefferson

County Court House, Birmingham, Alabama.

It is further ordered, That Travis Williams or any other officer or officers of
the Bituminous Coal Division designated
by the Director thereof for that purpose
shall preside at the hearing in such matter. The officer so designated to preside
at such hearing is hereby authorized to

conduct said hearing. to administer
oaths and affirmations, examine witnesses, subpoena witnesses, compel their

attendance, take evidence, require the
production of any books, papers, correspondence, memoranda or other records

deemed relevant or material to the in-

quiry, to continue said hearing from

time to time, and to such places as he
may direct by announcement at said
hearing or any adjourned hearing or by
subsequent notice, and to prepare and
submit to the Director proposed findings of fact and conclusions and the
recommendation of an appropriate order
in the premises, and to perform all other
duties in connection therewith authorized by law.

Republic, Alabama, whereas the
price f.
established cable minimum O. b. the appli- mine
for such coal is $2.40 per net

$ 301.123 of the Rules and Regulations
Governing Practice and Procedure Be-

$1.85 to
No. at

Proceedings Instituted Pursuant to sec-

whether raised by amendment of the
complaint, petition for intervention, or

per bama, ton in and District per 13, ton prices delivered of $1.50 Ala-

in

fore the Bituminous Coal Division in

1941, by Bituminous Coal Producers

Notice of such hearing is hereby given
to said defendant and to all other parties herein and to all persons and entities
having an interest in such proceeding.

ant's No. 287, Group Blue located Jefferson produced Mine, County. Mine at defend- Index

3837

Any person or entity eligible under

The matter concerned herewith is in

regard to the complaint filed by said com-

plainant, alleging willful violation by the
above-named defendant of the Bituminous Coal Code or rules and regulations
thereunder as follows: By selling during
the period October 1, 1940, through February 1941, to Tombrello Coal Company.
Cardiff. Alabama, approximately 949 tons
of 1 1/2" x 0 coal, Size Group No. 23, produced at defendant's Norman Coal Co.

Mine, Mine Index No. 852, located in
Jefferson County, Alabama, in District
No. 13, at a price of $2.05 per ton delivered

to Cardiff, Alabama, whereas the applicable minimum price f. O. b. the mine established for such coal is $2.40 per net

ton, as contained in the Schedule of

Effective Minimum Prices for District No.
13 for Truck Shipments, plus an amount
at least equal, as nearly as practicable,
to the actual transportation, handling or
incidental charges of whatsoever kind or
character (exclusive of customary costs
of mine operations) from the transportation facilities at said mine to the point
from which all such charges were assumed and directly paid by the purchaser.
Dated: July 28, 1941.
(SEAL]

DAN H. WHEELER,

Acting Director.
(P. R. Doc. 41-5554: Filed, July 31, 1941;
10:04 a. m.

(Docket No. 1683-FD]
IN THE MATTER OF ED SHEELOR,
DEFENDANT

NOTICE OF AND ORDER FOR HEARING

A complaint dated April 29. 1941,
pursuant to the provisions of sections

3838

FEDERAL REGISTER, Friday, August 1, 1941

4 II (j) and 5 (b) of the Bituminous
Coal Act of 1937, having been duly filed
on May 1, 1941, by Bituminous Coal Producers Board for District No. 13. a District Board, complainant, with the Bitu-

minous Coal Division alleging willful
violation by the defendant of the Bituminous Coal Code or rules and regulations thereunder
It is ordered, That a hearing in respect
to the subject matter of such complaint
be held on October 16. 1941, at 10 a. m.

at a hearing room of the Bituminous
Coal Division, Room 303. Jefferson
County Court House, Birmingham,
Alabama

It is further ordered, That Travis Williams or any other officer or officers of
the Bituminous Coal Division designated
by the Director thereof for that purpose

shall preside at the hearing in such
matter. The officer so designated to
preside at such hearing is hereby authorized to conduct said hearing. to administer oaths and affirmations, examine
witnesses, subpoena witnesses, compel
their attendance, take evidence, require
the production of any books, papers, cor-

respondence, memoranda or other records deemed relevant or material to the
inquiry. to continue said hearing from
time to time. and to such places as he

may direct by announcement at said
hearing or any adjourned hearing or by
subsequent notice, and to prepare and
submit to the Director proposed findings
of fact and conclusions and the recom-

mendation of an appropriate order in
the premises, and to perform all other
duties in connection therewith author-

matters incidental and related thereto,
whether raised by amendment of the
complaint, petition for intervention, or
otherwise, and all persons are cautioned
to be guided accordingly.

The matter concerned herewith is in

regard to the complaint filed by said
complainant, alleging willful violation
by the above-named defendant of the

Bituminous Coal Code or rules and regulations thereunder as follows: By selling subsequent to September 30, 1940, to

Tombrello Coal Company. Cardiff, Ala.
bama, approximately 90 tons of 1 1/a' x 0
coal, Size Group No. 23, produced at defendant's Sheelor Mine, Mine Index No.

371, located in Jefferson County. Ala.
bama, in District No. 13. at a price of
$2.05 per ton delivered to Cardiff. Alabama, whereas the applicable minimum
price O. b. the mine established for such
coal is $2.30 per net ton, as contained in

the Schedule of Effective Minimum

Prices for District No. 13 for Truck Shipments, plus an amount at least equal, as
nearly as practicable, to the actual transportation, handling or incidental charges
of whatsoever kind or character (exclusive of customary costs of mine opera-

tions) from the transportation facilities
at said mine to the point from which all
such charges were assumed and directly
paid by the purchaser.
Dated: July 28, 1941.
[SEAL]

DAN H. WHEELER,

Acting Director.
(F. R. Doc. 41-5555 Filed July 31, 1941;
10:04 m.)

ized by law.

Notice of such hearing is hereby given
to said defendant and to all other parties herein and to all persons and entitles having an interest in such proceed-

ing. Any person or entity eligible under
$ 301.123 of the Rules and Regulations
Governing Practice and Procedure Before the Bituminous Coal Division in
Proceedings Instituted Pursuant to sec-

tions 4 II (j) and 5 (b) of the Bituminous Coal Act of 1937, may file a petition

for intervention not later than five (5)
days before the date herein set for hearing on the complaint
Notice is hereby given that answer to

the complaint must be filed with the

Bituminous Coal Division at its Washington office or with any one of the statis-

tical bureaus of the Division, within
twenty (20) days after date of service
thereof on the defendant: and that any

defendant failing to file an answer within
such period, unless the Director or the
presiding officer shall otherwise order,
shall be deemed to have admitted the allegations of the-complaint herein and to
have consented to the entry of an appro-

priate order on the basis of the facts
alleged.

All persons are hereby notified that
the hearing in the above-entitled matter

and entered therein may concern,

in addition to the matters specifically
alleged in the complaint herein, other

(Docket No. 1684-FD
IN THE MATTER OF DAISY CITY COAL COMPANY, DEFENDANT

NOTICE OF AND ORDER FOR HEARING

A complaint dated April 29, 1941, pur-

suant to the provisions of sections 4 II
(j) and 5 (b) of the Bituminous Coal Act
of 1937, having been duly filed on May 1,

1941, by Bituminous Coal Producers

deemed relevant or material to the in.
quiry, to continue said hearing from time
to time, and to such places as he may
direct by announcement at said hearing
or any adjourned hearing or by subsequent notice, and to prepare and submit
to the Director proposed findings of fact
and conclusions and the recommendation
of an appropriate order in the premises.
and to perform all other duties in con.
nection therewith authorized by law.
Notice of such hearing is hereby given
to said defendant and to all other parties
herein and to all persons and entities
having an interest in such proceeding.

Any person or entity eligible under

301.123 of the Rules and Regulations
Governing Practice and Procedure Be-

fore the Bituminous Coal Division in
Proceedings Instituted Pursuant to sec.
tions 4.11 (j) and 5 (b) of the Bituminous
Coal Act of 1937, may file a petition for
intervention not later than five (5) days
before the date herein set for hearing 00
the complaint.
Notice is hereby given that answer to

the complaint must be filed with the

Bituminous Coal Division at its Washington office or with any one of the statistical bureaus of the Division, within
twenty (20) days after date of service
thereof on the defendant: and that any
defendant failing to file an answer within
such period, unless the Director or the
presiding officer shall otherwise order,
shall be deemed to have admitted the
allegations of the complaint herein and
to have consented to the entry of an
appropriate order on the basis of the
facts alleged.
All persons are hereby notified that the

hearing in the above-entitled matter and
orders entered therein may concern, in

addition to the matters specifically alleged in the complaint herein, other
matters incidental and related thereto,
whether raised by amendment of the
complaint, petition for intervention, or
otherwise, and all persons are cautioned
to be guided accordingly.
The matter concerned herewith is in

Board for District No. 13, a District

regard to the complaint filed by said

Board, complainant, with the Bituminous
Coal Division alleging willful violation by

complainant, alleging willful violation by
the above-named defendant of the Bltuminous Coal Code or rules and regulations thereunder as follows: By selling

the defendant of the Bituminous Coal

Code or rules and regulations thereunder;

It is ordered, That a hearing in respect
to the subject matter of such complaint
be held on October 16, 1941, at 10 a. m.,

at a hearing room of the Bituminous

during the period October 1, 1940.
through February 1941, to Tombrello
Coal Company. Cardiff, Alabama, approximately 1202 tons of 1 1/2" x coal,

Coal Division, Room 303, Jefferson County

Size Group No. 23, produced at defend-

Court House, Birmingham, Alabama
It is further ordered, That Travis Williams or any other officer or officers of
the Bituminous Coal Division designated
by the Director thereof for that purpose
shall preside at the hearing in such matter. The officer so designated to preside
at such hearing is hereby authorized to
conduct said hearing. to administer oaths
and affirmations. examine witnesses,
subpoena witnesses, compel their attend-

ance, take evidence, require the production of any books, papers, correspondence, memoranda or other records

ant's Daisy City #1 & #2 Mine, Mine
Index No. 310, located in Jefferson
County, Alabama, in District No. 13, at

a per ton delivered to Car-

diff. whereas the

minimum
f. o. b. the
price Alabama, of $2.05 price mine applicable net estab- ton.

lished for such coal is $2.40 per
as contained in the Schedule of Effective Minimum Prices for District No. 13
for Truck Shipments, plus an amount to at

least equal, as nearly as practicable,

the actual transportation, handling kind or

incidental charges of whatsoever
or character (exclusive of customary

FEDERAL REGISTER, Friday, August 1, 1941
of mine operations) from the

facilities at
from which all
costs the transportation point such said mine charges the to
were assumed and directly paid by
purchaser.

Dated: July 28, 1941.

DAN H. WHEELER,

(SEAL)

Acting Director.

(F. R. Doc. 41-5556
Filed.
10:05 a.
m.) July 81, 1941:

[Docket No. 1685-FD
IN THE MATTER OF D. ABNEY,
DEFENDANT

NOTICE OF AND ORDER FOR HEARING

A complaint dated April 29. 1941, purprovisions of sections 4 II

of been on 1,
of the

suant (j) 1937, and to having the (b) Bituminous Bituminous duly Coal filed Producers Coal May Act
1941.
by

Board for District No. 13, a District

Board. complainant, with the Bitumi-

nous Coal Division alleging willful

violation by the defendant of the Bituminous Coal Code or rules and regulations
thereunder;

Notice is hereby given, that answer to
the complaint must be filed with the Bltuminous Coal Division at its Washington office or with any one of the statis-

tical bureaus of the Division, within

twenty (20) days after date of service
thereof on the défendant; and that any
defendant failing to file an answer within
such period, unless the Director or the
presiding officer shall otherwise order,
shall be deemed to have admitted the
allegations of the complaint herein and
to have consented to the entry of an appropriate order on the basis of the facts
alleged.

All persons are hereby notified, that
the hearing in the above-entitled matter
and orders entered therein may concern,

in addition to the matters specifically
alleged in the complaint herein, other
matters incidental and related thereto,
whether raised by amendment of the
complaint, petition for intervention, or
otherwise, and all persons are cautioned
to be guided accordingly.

The matter concerned herewith is in
regard to the complaint filed by said
complainant, alleging willful violation
by the above-named defendant of the

It is ordered, That a hearing in respect
to the subject matter of such complaint
be held on October 16, 1941, 10 a. m.,
at a hearing room of the Bituminous

Bituminous Coal Code or rules and regulations thereunder as follows: By selling

County Court House, Birmingham, Ala-

proximately 739 tons of 1 1/2" x 0 coal,
Size Group No. 23, produced at defendant's Abney Mine, Mine Index No. 278,
located in Jefferson County. Alabama, in
District No. 13, at a price of $2.05 per ton
delivered to Cardiff, Alabama, whereas
the applicable minimum price O. b. the
mine established for such coal is $2.40
per net ton. as contained in the Schedule
of Effective Minimum Prices for District

Coal Division, Room 303, Jefferson
bama.

It is further ordered, That Travis Williams or any other officer or officers of
the Bituminous Coal Division designated
by the Director thereof for that purpose
shall preside at the hearing in such matter. The officer so designated to preside at such hearing is hereby authorized

to conduct said hearing, to administer
oaths and affirmations, examine witnesses, subpoena witnesses, compel their

attendance, take evidence, require the
production of any books, papers, correspondence, memorands or other records deemed relevant or material to the
inquiry. to continue said hearing from
time to time, and to such places as he
may direct by announcement at said
hearing or any adjourned hearing or by
subsequent notice, and to prepare and
submit to the Director proposed findings
of fact and conclusions and the recommendation of an appropriate order in the
premises, and to perform all other duties
in connection therewith authorized by
law.
Notice of such hearing is hereby given

to said defendant and to all

and to all
anpersons
interest
in such
having herein
other and
proceeding. entities parties
person or
of the Rules and
Practice
and
Any Governing 1301.123
entity Procedure
eligible Regulations under Before the Bituminous Coal Division in Proceedings Instituted Pursuant to sections

II (j) and 5 (b) of the

of 1937, file a

Coal Intervention
Actlater
may Bituminous
for
not
than fivepetition
(5) days

before the date herein set for hearing

on the complaint.

No.149

during the period October 1. 1940,
through February 1941, to Tombrello
Coal Company, Cardiff. Alabama, ap-

No. 13 for Truck Shipments, plus an
amount at least equal, as nearly as prac-

ticable, to the actual transportation,
handling or incidental charges of whatsoever kind or character (exclusive of

customary costs of mine operations)

from the transportation facilities at said

mine to the point from which all such

charges were assumed and directly paid
by the purchaser.

Dated: July 28, 1941.
(SEAL]

DAN H. WHEELER,

Acting Director.
(F. R. Doc. 41-5557: Filed, July 31, 1941;
10:05 a. m.]

(Docket No. 1687-FD)

IN THE MATTER OF LONG & EARLY,
DEFENDANTS

NOTICE OF AND ORDER FOR HEARING

A complaint dated April 29, 1941, pursuant to the provisions of sections 4 II
(5) and 5 (b) of the Bituminous Coal
Act of 1937, having been duly filed on
May 1, 1941, by Bituminous Coal Producers Board for District No. 13, a District Board, complainant, with the Bltuminous Coal Division alleging willful

3839

violation by the defendants of the Bituminous Coal Code or rules and regulations thereunder:

to
such
beofon
at

It is ordered, That hearing in respect
the held subject October matter 16, 1941, complaint 10 a. m.,

at a hearing room of the Bituminous
Coal Division, Room 303, Jefferson
County Court House, Birmingham, Ala-

bama.

It is further ordered, That Travis Williams or any other officer or officers of
the Bituminous Coal Division designated
by the Director thereof for that purpose

so toto
at is

shall ter. such preside The hearing officer at the hereby designated hearing authorized in such preside mat-

conduct said hearing. to administer oaths

and affirmations, examine witnesses,
subpoena witnesses, compel their attendance, take evidence, require the
production of any books, papers, correspondence, memoranda or other records

deemed relevant or material to the inquiry, to continue said hearing from
time to time, and to such places as he
may direct by announcement at said
hearing or any adjourned hearing or by
subsequent notice, and to prepare and
submit to the Director proposed findings
of fact and conclusions and the recommendation of an appropriate order in
the premises, and to perform all other
duties in connection therewith authorized by law.

Notice of such hearing is hereby given
to said defendants and to all other parties herein and to all persons and entities having an interest in such proceeding. Any person or entity eligible under
I 301.123 of the Rules and Regulations
Governing Practice and Procedure Be-

fore the Bituminous Coal Division in

Proceedings Instituted Pursuant to sec-

tions II (f) and 5 (b) of the Bitumi-

nous Coal Act of 1937, may file a petition for intervention not later than five
(5) days before the date herein set for
hearing on the complaint.
Notice is hereby given, that answer to
the complaint must be filed with the Bltuminous Coal Division at its Washington

office or with any one of the statistical
bureaus of the Division, within twenty
(20) days after date of service thereof
on the defendants; and that any defendant failing to file an answer within
such period, unless the Director or the
presiding officer shall otherwise order,
shall be deemed to have admitted the
allegations of the complaint herein and
to have consented to the entry of an
appropriate order on the basis of the
facts alleged.

All persons are hereby notified, that
the hearing in the above-entitled matter
and orders entered therein may concern,
in addition to the matters specifically alleged in the complaint herein, other mat-

ters incidental and related thereto,

whether raised by amendment of the
complaint, petition for intervention. or
otherwise, and all persons are cautioned

to be guided accordingly.

FEDERAL REGISTER, Friday, August 1, 1941

3840

The matter concerned herewith is in

regard to the complaint filed by said
complainant, alleging willful violation by
the above-named defendants of the BItuminous Coal Code or rules and regulations thereunder as follows: By selling

during the period October 1, 1940,
through February 1941. to Tombrello Coal

Company. Cardiff, Alabama, approximately 49 tons of 1 1/2' x 0 coal. Size
Group No. 23. produced at defendants'
Long & Early Mine, Mine Index No. 346,
located in Jefferson County. Alabama, in

therefor, and resold and delivered the
same to the Ohio Edison Company at
Toronto, Ohio, at less than the effective

minimum prices therefor, and in addltion thereto failed to add at least the
actual transportation charges from the
respective mines at which the coal was
produced to the point from which all
such charges were assumed and directly

paid by the Ohio Edison, Company at
Toronto, Ohio, as follows:

the applicable minimum price the

from which all such charges were assumed

and directly paid by the purchaser.

Mini
mum

prior

Producer

Total

Co.b

tons

mine
truck
ship
ments

which
delivered to
Ohio
Edison
Co. 1

To
ronto
Ohio

8,086 40

Hitchman Coal & Coke Co.
Clean Coal Company

557

Boggs Run Mining C
City Coal Co
Reyman Coal Co
Woodsdale Fuel
Short Creek Coal Co

$1.90

$1.45

1.90

1.45

1.90

1.45

1.90

1.45

1.90

1.45

1.90

1.45

.90

1.45

Liberty Coal Co

Reliable Coal Co
Perry Coal Co
Total

294

DAN H. WHEELER,

Acting Director.
(F. R. Doc. 41-5558; Filed, July S1. 1941;
10:05 a. m.)

[Docket No. 1666-FD]
IN THE MATTER OF W. H. WARNER & COMPANY. INC., REGISTERED DISTRIBUTOR,
REGISTRATION No. 9432, RESPONDENT
NOTICE OF AND ORDER FOR HEARING

1. The Bituminous Coal Division finds
It necessary. in the proper administration of the Bituminous Coal Act of 1937
(the "Act"), to determine
(a) whether or not W. H. Warner &
Company. Inc., Registered Distributor,
whose address is 570 Union Commerce
Building. Cleveland, Ohio, located in Dis-

trict No. 4. has violated any provisions
of the Act, the Marketing Rules and
Regulations, the Rules and Regulations
for Registration of Distributors, and the

Distributor's Agreement (the "Agreement"), executed July 20, 1939, by re-

19.40

.90

The respondent, in making the sales

Agreement.

It is therefore ordered, That a hearing

pursuant to I 304.14 of the Rules and
Regulations for the Registration of Distributors, to determine whether the registration of said distributor should be
revoked or suspended, or other appropri-

ate penalties be imposed, be held on
September 11, 1941, at 10 a. m. at a hearing room of the Bituminous Coal Division
at the New Post Office Building. Room
4083, Cleveland, Ohio.

(b) whether or not the registration

should be imposed:

and for said purposes gives notice that
information in the possession of the
Division is to the effect that:
2. During the months of October, No.

vember and December, 1940, the respondent purchased large quantities of
% slack coal from Costanzo Coal Mining Company. Registered Distributor, at
prices below the effective minimum prices

consented to the entry of an appropriate
order on the basis of the facts alleged.
All persons are hereby notified that the
hearing in the above-entitled matter and
orders entered therein may concern, in
addition to the matters specifically al.
leged herein, other matters incidental
and related thereto, whether raised by
amendment, petition for intervention, or
otherwise, and all persons are cautioned
to be guided accordingly.
Dated: July 28, 1941.
(SEAL)

DAN H. WHEELER

Acting Director.

(F. R. Doc. 41-5559; Filed, July 31, 1941;

10:05 m.

[Docket No. 1736-FD
IN THE MATTER OF NORRIS COAL COMPANY.
A PARTNERSHIP, DEFENDANT
NOTICE OF AND ORDER FOR HEARING

A complaint dated May 1, 1941, pursuant to the provisions of sections 4 II

(f) and 5 (b) of the Bituminous Coal

Act of 1937, having been duly filed on
May 7. 1941, by Bituminous Coal Producers Board for District 10, a District
Board, complainant, with the Bituminous
Coal Division alleging willful violation
by the defendant of the Bituminous Coal
Code or rules and regulations thereunder;

It is ordered, That a hearing in re-

Director thereof for that purpose shall
preside at the hearing in such matter.
The officer so designated to preside at

Bituminous Coal Division Circuit Court
Room, County Court House, Marion,

such hearing is hereby authorized to con-

and affirmations, examine witnesses, subpoena witnesses, compel their attendance,

of said distributor should be revoked or
suspended or other appropriate penalties

admitted the alleged charges and to have

spect to the subject matter of such complaint be held on September 5, 1941, at

dated March 24,1939. in General Docket

1939.

otherwise Director within order, the such shall presiding period, be deemed officer unless to file shall have the an

It is further ordered, That W. A. Cuff or
any other officer or officers of the Bituminous Coal Division designated by the

duct said hearing, to administer oaths

No. 12. which was adopted as an Order
of the Bituminous Coal Division, July 1,

answer

hereinabove described, violated section 4

II (e) of the Act, the Schedule of Effective Minimum Prices, for District No. 6,
for Truck Shipment, paragraph (6) of
the Price Instructions of said Schedule,
and paragraphs (b), (c) and (e) of the

spondent, pursuant to Order of the Na-

tional Bituminous Coal Commission

that any respondent failing to

10

Dated: July 28, 1941.
(SEAL)

ser. fee thereof on the respondent: and
or

mine established for such coal is $2.40 per

net ton. as contained in the Schedule of
Effective Minimum Prices for District No.
13 for Truck Shipments, plus an amount
at least equal, as nearly as practicable,
to the actual transportation, handling or
incidental charges of whatsoever kind or
character (exclusive of customary costs
of mine operations) from the transportation facilities at said mine to the point

within twenty (20) days after date of

Price at

District No. 13. at a price of $2.05 per ton

delivered to Cardiff. Alabama, whereas

ties herein and to all persons and entities
having an interest in such proceeding
Notice is hereby given that answer to
the charges alleged herein must be filed
with the Bituminous Coal Division at th
Washington Office or with any one of
the statistical bureaus of the Division,

take evidence, require the production of
any books, papers, correspondence, memoranda or other records deemed relevant

or material to the inquiry. to continue
said hearing from time to time and to
such places as he may direct by announcement at said hearing or any adjourned hearing or by subsequent notice,
and to prepare and submit to the Director proposed Findings of Fact and Conclusions and the recommendation of an
appropriate order in the premises, and
to perform all other duties in connection
therewith authorized by law.
Notice of such hearing is hereby given
to said respondent, and to all other par-

10 a. m., at a hearing room of the

Illinois.

It is further ordered, That Charles 8
Mitchell or any other officer or officers

of Coal Division desig-

nated the
at the
in
purpose the byshall
Bituminouspreside
Director thereof hearing
for that

such matter. The officer so designated
to preside at such hearing is hereby
authorized to conduct said hearing, to
administer oaths and affirmations, examine witnesses, subpoena witnesses,
compel their attendance, take evidence,
the
require papers, correspondence, production memorands of any or books, mate- or

deemed relevant

the to continue

time to time, and to
as he may direct by announcement or

rial other ing from to records inquiry. such said places hear- at

said hearing or any adjourned hearing and

by subsequent notice, and to prepare

submit to the Director proposed findings

FEDERAL REGISTER, Friday, August 1, 1941
of fact and conclusions and the recomof an
and to

(Docket No. 1738-FD)
In THE MATTER OF CARTERVILLE COAL CoxPANY, PARTNERSHIP, DEFENDANT

the mendation premises, appropriate perform authorized all order other in

duties in connection therewith
by law.

Notice of such hearing is hereby given
to said defendant and to all other parties

herein and to all persons and entities
having an interest in such proceeding.

Any person or entity eligible under

$301.123 of the Rules and Regulations

Governing Practice and Procedure Before

the Bituminous Coal Division in Proceedings Instituted Pursuant to sections

II (j) and 5 (b) of the Bituminous Coal
Act of 1937, may file a petition for intervention not later than five (5) days before
the date herein set for hearing on the
complaint.

Notice is hereby given that answer to

the complaint must be filed with the
Bituminous Coal Division at its Washington office or with any one of the statis-

tical bureaus of the Division, within
twenty (20) days after date of service
thereof on the defendant; and that any
defendant failing to file an answer within such period, unless the Director or the
presiding officer shall otherwise order.
shall be deemed to have admitted the
allegations of the complaint herein and to
have consented to the entry of an appro-

priate order on the basis of the facts
alleged.

All persons are hereby notified that the
hearing in the above-entitled matter and
orders entered therein may concern, in

addition to the matters specifically

alleged in the complaint herein, other
matters incidental and related thereto,
whether raised by amendment of the
complaint, petition for intervention, or
otherwise, and all persons are cautioned
to be guided accordingly.

The matter concerned herewith is in

regard to the complaint filed by said complainant, alleging willful violation by the
above-named defendant of the Bituminous Coal Code or rules and regulations
thereunder as follows:
That defendant violated the Effective
Minimum Prices by selling and delivering
to Ray Minter, on or about February 18,
1941, approximately 6 tons of mine run
coal produced at defendant's mine at the
price of $1.50 per ton f. o. b. the mine,

NOTICE OF AND ORDER FOR HEARING

A complaint dated April 24, 1941, pursuant to the provisions of sections II (j)
and 5 (b) of the Bituminous Coal Act of
1937, having been duly filed on April 26,

1941, by Bituminous Coal Producers
Board for District 10. a District Board.
complainant, with the Bituminous Coal
Division alleging willful violation by the
defendant of the Bituminous Coal Code
or rules and regulations thereunder;
It is ordered, That a hearing in respect
to the subject matter of such complaint be
held on September 5. 1941, at 10 a. m. at

per ton f. O. b. the mine, whereas the
effective minimum price for such coal was

and is $1.80 per ton f. O. b. the mine.
Dated: July 28, 1941.
(SEAL)

DAY H. WHEELER

Acting Director.

(P. R Doe. 41-8860 Filed. July 31, 1941;

4 5 of

ings Instituted Pursuant to sections
may file a

Coal intervention II Act (j) of and 1937, (b) the petition Bituminous for

not later than five (5) days

before the date herein set for hearing on
the complaint

Notice is hereby given that answer to
the complaint must be filed with the Bltuminous Coal Division at its Washington office or with any one of the statistical bureaus of the Division. within twen-

ty (20) days after date of service

thereof on the defendant: and that any
defendant failing to file an answer within such period, unless the Director or the

Division at the Circuit Court Room,

presiding officer shall otherwise order,
shall be deemed to have admitted the
allegations of the complaint herein and
to have consented to the entry of an
appropriate order on the basis of the

County Court House, Marion. Illinois.

facts alleged.

a hearing room of the Bituminous Coal
It is further ordered, That Charles S.
Mitchell or any other officer or officers of
the Bituminous Coal Division designated
by the Director thereof for that purpose
shall preside at the hearing in such matter. The officer so designated to preside
at such hearing is hereby authorized to
conduct said hearing, to administer oaths
and affirmations. examine witnesses,
subpoena witnesses, compel their attendance, take evidence, require the production of any books papers, correspondence,
memoranda or other records deemed rele-

vant or material to the inquiry, to continue said hearing from time to time, and
to such places as he may direct by announcement at said hearing or any adjourned hearing or by subsequent notice,
and to prepare and submit to the Director
proposed findings of fact and conclusions

and the recommendation of an appropriate order in the premises, and to perform all other duties in connection therewith authorized by law.
Notice of such hearing is hereby given
to said defendant and to all other parties

herein and to all persons and entities
having an interest in such proceeding.

Any person or entity eligible under

301.123 of the Rules and Regulations
Governing Practice and Procedure Before
the Bituminous Coal Division in ProceedPurchaser

Date

and by selling and delivering approxi-

mately 1.2 tons of such coal on or about
February 20, 1941, at the price of $1.53

3841

All persons are hereby notified that
the hearing in the above-entitled mat.
ter and orders entered therein may concern, in addition to the matters specifically alleged in the complaint herein,
other matters incidental and related
thereto, whether raised by amendment
of the complaint, petition for intervention, or otherwise, and all persons are
cautioned to be guided accordingly.

The matter concerned herewith is in

regard to the complaint filed by said
complainant, alleging willful violation by
the above-named defendant of the BItuminous Coal Code or rules and regulations thereunder as follows:
The defendant violated the effective
minimum prices during the period subsequent to September 30, 1940, by selling

to various purchasers in Carterville, IIIInois, 3' Lump coal produced at the mine
of the defendant at the price of $2.00
per ton f. O. b. the mine, and by selling
2' x 1/2" coal produced at said mine at
the price of $1.65 per ton f. O. b. the mine,

whereas the effective minimum prices
for such coal were and are $2.15 per ton

f. O. b. the mine for 3" Lump coal and
$1.80 per ton f. O. b. the mine for 2" x

" coal. The sales so made in viola.

tion of the effective minimum prices are
as follows:
Amount

Sise

Price

Pounds

Oct. 6,1940

Nov. 1,1940
Nov.

12,725

2,000

McNem

2,000

L.1940

Jan.

2.1941

Jan

20,1941

J3n.

21,1941

Groves

4,000

Yates

4,000

Carterville Feed and Milling Co

2,000

$12.72

Lump
x 716

1.65

716
Lump
Lump

1.65
4.00
4.00

x716

Dated: July 28, 1941.
(SEAL)

1.65

DAN H. WHEELER

Acting Director.
(F. R. Doc. 41-5561; Filed, July $1, 1941; 10:06 a. m.)

FEDERAL REGISTER, Friday, August 1, 1941

3842

[Docket No. 1671-FD]

IN THE MATTER OF FOREST CITY COAL
COMPANY. REGISTERED DISTRIBUTOR.
REGISTRATION No. 3092. RESPONDENT
NOTICE OF AND ORDER FOR HEARING

1. The Bituminous Coal Division finds
It necessary. in the proper administration of the Bituminous Coal Act of 1937
(the "Act"), to determine

(a) whether or not the Forest City
Coal Company, Registered Distributor,
Registration No. 3092, whose address is
Rockefeller Building, Cleveland, Ohio,

the respondent in the above-entitled
matter, has violated any provisions of
the Act, Marketing Rules and Regulations, the Rules and Regulations for
Registration of Distributors and the Distributor's Agreement (the "Agreement")
executed April 25, 1939, by respondent,
pursuant to Order of the National Bituminous Coal Commission, dated March
1939. in General Docket No. 12. which

was adopted as an Order of the Division

July 1939: and
(b) whether or not the registration
of said distributor should be revoked or
suspended or other appropriate penalties should be imposed:

and for said purposes gives notice that

information in the possession of the
Division is to the effect that:
2. On or about February 11, 1941,
respondent purchased 54.20 tons of
11/4" x 5" egg industrial coal from Industrial Coal & Iron Company, Pittsburgh, Pennsylvania, Mine No. 7-Apex,
Code member. District No. 4. and resold

and delivered said coal to United Milk
Products Company of Cleveland, Ohio,
at its Kent, Ohio, plant. The respondent prepaid transportation charges on
said coal to said point of delivery, of

$73.71, and accepted discounts from the
effective minimum prices for such coal,
in violation of section 4 II (h) and subsections 3 and 6 of section II (1) of the

Act, Rule 1 (J) of section VII of the

Marketing Rules and Regulations and
paragraphs (c) and (e) of the Agree-

ment.

3. Between March 4 and March 20,
1941. both dates inclusive, respondent
purchased 6 carloads of coal from In-

dustrial Coal & Iron Company, Pittsburgh, Pennsylvania, and other Code
members in District No. 4. and resold
and delivered said coal to United Milk
of

plant. The
said point of delivery. and
accepted discounts from the effective
minimum prices for such coal in viola4 II (h)
4 II (1)
of section
VIIof of subsections the the Act,
Rule 3 tion and of 1 6 section
(J) of section and

registration of said distributor should
be revoked or suspended, or other ap-

1937, having been duly filed on May 15,

propriate penalties be imposed, be held
on September 12, 1941 at 10 a. m. at
a hearing room of the Bituminous Coal
Division at the New Post Office Building,

Board, complainant, with the Bituminous
Coal Division alleging willful violation by

Room 4083, Cleveland, Ohio.

Code or rules and regulations thereunder:

or officer or the
Bituminous Division by
ordered,

It any is further other Coal That officers designated W. A. of Cuff

the Director thereof for that purpose
shall preside at the hearing in such
matter. The officer so designated to
preside at such hearing is hereby authorized to conduct said hearings, to

administer oaths and affirmations, examine witnesses, subpoena witnesses,
compel their attendance, take evidence,
require the production of any books,
papers, correspondence, memoranda or
other records deemed relevant or mate-

rial to the inquiry. to continue said

hearing from time to time, and to such
places as he may direct by announcement at said hearing or any adjourned
hearing or by subsequent notice, and to

prepare and submit to the Director

proposed findings of fact and conclusions and the recommendation of an
appropriate order in the premises, and
to perform all other duties in connec-

tion therewith authorized by law.

Notice of such hearing is hereby
given to said respondent, and to all
other parties herein and to all persons
and entities having an interest in such
proceeding

Notice is hereby given that answer to
the charges alleged herein must be filed

with the Bituminous Coal Division at
its Washington Office or with any one

of the statistical bureaus of the Division.

within twenty (20) days after date of
service thereof on the respondent; and

that any respondent failing to file an
answer within such period, unless the
Director or the presiding officer shall
otherwise order, shall be deemed to have
admitted the alleged charges and to have

consented to the entry of an appropriate
order on the basis of the facts alleged.
All persons are hereby notified that
the hearing in the above-entitled matter
and orders entered therein may concern,
in addition to the matters specifically
alleged herein, other matters incidental
and related thereto, whether raised by
amendment, petition for intervention.
or otherwise, and all persons are cautioned to be guided accordingly.
Dated: July 28, 1941.
(SEAL)

DAN H. WHEELER,

Acting Director.

such ent Products at its prepaid coal Kent, Company to Ohio, transportation Cleveland, charges respond- Ohio, on

and

(e) of the
graphs keting Rules (c) and Regulations Agreement. of para- MarIt is therefore ordered,

to 304.14
of
ing pursuant That
the a Rules
hearand Regulations for the Registration of
Distributors, to determine whether the

(P. R. Doc. 41-5562: Filed, July 31, 1941;

10:06 m.)

[Docket No. 1750-FD)
IN THE MATTER OF MORRIS & CAMPBELL, A
PARTNERSHIP, CODE MEMBER. DEFENDANT

NOTICE OF AND ORDER FOR HEARING

A complaint dated May 6, 1941, pursuant to the provisions of sections 4 II (j)
and (b) of the Bituminous Coal Act of

1941, by Bituminous Coal Producers

Board for District No. 11, a District
the defendant of the Bituminous Coal
It is ordered, That a hearing in respect
to the subject matter of such complaint
be held on September 24,1941 at 10 a.m.
at a hearing room of the Bituminous Coal

Division, the Post Office Building, Terre
Haute, Indiana.
It is further ordered, That W. A. Ship.
man or any other officer or officers of the
Bituminous Coal Division designated by
the Director thereof for that purpose shall
preside at the hearing in such matter.
The officer so designated to preside at
such hearing is hereby authorized to conduct said hearing, to administer oaths
and affirmations, examine witnesses, subpoena witnesses, compel their attendance.
take evidence, require the production of
any books, papers, correspondence, mem.
oranda or other records deemed relevant

or material to the inquiry. to continue
said hearing from time to time, and to
such places as he may direct by announcement at said hearing or any ad.
journed hearing or by subsequent notice
and to prepare and submit to the Director
proposed findings of fact and conclusions

and the recommendation of an appropriate order in the premises, and to perform all other duties in connection therewith authorized by law.
Notice of such hearing is hereby given
to said defendant and to all other parties
herein and to all persons and entities hav-

ing an interest in such proceeding. Any
person or entity eligible under I 301.123
of the Rules and Regulations Governing
Practice and Procedure Before the Bituminous Coal Division in Proceedings Instituted Pursuant to sections 4 II (j) and
5 (b) of the Bituminous Coal Act of 1937.
may file a petition for intervention not
later than five (5) days before the date
herein set for hearing on the complaint
Notice is hereby given that answer to
the complaint must be filed with the Bltuminous Coal Division at its Washington office or with any one of the statis-

tical bureaus of the Division, within
twenty (20) days after date of service
thereof on the defendant; and that any

defendant failing to file an answer within
such period, unless the Director or the
presiding officer shall otherwise order,
shall be deemed to have admitted the
allegations of the complaint herein and
to have consented to the entry of an appropriate order on the basis of the facts
alleged.

All persons are hereby notified that the
hearing in the above-entitled matter and
therein may concern, in

addition matters

in the herein,

and related

leged orders entered to complaint the specifically other thereta mat- al-

amendment
for
whether complaint, ters incidental raised petition by intervention, of the or

otherwise, and all persons are cautioned
to be guided accordingly.

FEDERAL REGISTER, Friday, August 1, 1941
The matter concerned herewith is in
regard to the complaint filed by said
complainant, alleging willful violation by
the above-named defendant of the Bltuminous Coal Code or rules and regulations thereunder as follows: That subsequent to October 1, 1940, the defendants violated the effective minimum
prices by selling to various purchasers
including W. H. Dean, Sullivan Cheese
Factory. Jesse Clark, and G. Weaver, un-

known quantities of lump coal produced
at the defendants' Rock Hollow Mine,
Mine Index No. 641, located in Sullivan
County. Indiana. at the price of $1.80 per

ton: and by selling on January 30, 1941,
to Jim Unstead, Hymera, Indiana, at the

price of $1.80 per ton b. the mine,

2,100 pounds of lump coal produced at
defendants' said mine and hauled to the
place of delivery by one James Smallwood, whereas the effective minimum
prices for all sizes of lump coal produced
at the defendants' said mine are in excess
of $1.80 per ton.
Dated July 28, 1941.

by law.

Acting Director.
(F. R Doc. 41-5563; Filed, July 31, 1941;

10:06 m.)

[Docket No. 1758-FD)
IN THE MATTER OF McCANNON BROS. COAL
COMPANY A PARTNERSHIP, DEFENDANT
NOTICE OF AND ORDER FOR HEARING

A complaint dated May 6, 1941, pursuant to the provisions of sections 4 II

(j) and 5 (b) of the Bituminous Coal

Act of 1937, having been duly filed on
May 15. 1941, by Bituminous Coal Producers Board for District No. 11, a Dis-

trict Board, complainant, with the
Bituminous Coal Division alleging willful
violation by the defendant of the Bituminous Coal Code or rules and regulations
thereunder;

It is ordered, That a hearing in respect
to the subject matter of such complaint
be held on September 24, 1941, at 10 a. m.,

at a hearing room of the Bituminous
Coal Division at the Post Office Building,

Terre Haute, Indiana.

It is further ordered, That W. A. Shipman or any other officer or officers of the

Bituminous Coal

at the matthereof for

shall ter. the Director The preside Division hearing designated that in such purpose by

officer so designated to preside

at such hearing is hereby authorized to

conduct said hearing, to administer
oaths and affirmations, examine wit-

nesses, subpoena witnesses, compel their

attendance, take evidence, the
of

Board for District

to said defendant and to all other parties herein and to all persons and entitles having an interest in such proceeding. Any person or entity eligible
under 301.123 of the Rules and Regulations Governing Practice and Procedure
Before the Bituminous Coal Division in
Proceedings Instituted Pursuant to sec-

tions (j) and 5 (b) of the Bituminous

Coal Act of 1937, may file a petition for
intervention not later than five (5) days
before the date herein set for hearing on
the complaint.
Notice is hereby given that answer to
the complaint must be filed with the Bltuminous Coal Division at its Washington office or with any one of the statistical bureaus of the Division, within twenty
(20) days after date of service thereof on
the defendant: and that any defendant

period, unless the Director or the presiding officer shall otherwise order, shall
be deemed to have admitted the allegations of the complaint herein and to have
consented to the entry of an appropriate
order on the basis of the facts alleged.
All persons are hereby notified that the
hearing in the above-entitled matter and
orders entered therein may concern, in

addition to the matters specifically alleged in the complaint herein, other mat-

ters incidental and related thereto,

whether raised by amendment of the
complaint, petition for intervention. or

by

notice, and to prepare and
submit to the Director proposed findings of fact and conclusions and the

minous Coal Division at the Commissioners' Court Room, County Court
House, Evansville, Indiana

It is further ordered, That Charles 8.
Mitchell or any other officer or officers
of the Bituminous Coal Division designated by the Director thereof for that
purpose shall preside at the hearing in
such matter. The officer so designated
to preside at such hearing is hereby
authorized to conduct said hearing. to
administer oaths and affirmations examine witnesses, subpoena witnesses, com-

pel their attendance, take evidence, require the production of any books, papers, correspondence, memoranda or
other records deemed relevant or material to the inquiry. to continue said hearing from time to time, and to such places
as he may direct by announcement at
said hearing or any adjourned hearing
or by subsequent notice, and to prepare
and submit to the Director proposed findings of fact and conclusions and the recommendation of an appropriate order in
the premises, and to perform all other
duties in connection therewith author-

regard to the complaint filed by said

herein and to all persons and entities
having an interest in such proceeding.
Any person or entity eligible under

The matter concerned herewith is in

complainant, alleging willful violation by
the above-named defendant of the Bltuminous Coal Code or rules and regula-

tions thereunder as follows: That the
defendant during the period from March
1, 1941 to March 25. 1941, violated the
effective minimum prices by selling an
unknown quantity of mine run coal and
11/4" lump coal produced at the defendant's McCannon Mine, Mine Index No.
1155, located in Sullivan County, Indiana, at the price of $1.50 per ton, f. O. b.
the mine, whereas the effective minimum
prices for such coal were and are $1.80
per ton. f. O. b. the mine for mine run,
and $2.20 per ton, f. o. b. the mine for
1 1/4 lump.

Dated July 28, 1941.
[SEAL]

DAN H. WHEELER,

Acting Director.
(F. R. Doc. 41-5564: Filed, July 31, 1941;
10:06 a. m.)

(Docket No. 1761-FD]
IN THE MATTER OF ALLEN PAYTON,
DEFENDANT

or any
may subsequent hearing direct adjourned announcement hearing at or said by

It is ordered, That a hearing in re-

spect to the subject matter of such complaint be held on September 3, 1941, at
10 a. m., at a hearing room of the Bitu-

ized by law.

relevant or

and to such

trict tuminous Board, Coal complainant, Division alleging No. with 11, the a willful Dis- Bl-

violation by the defendant of the Bituminous Coal Code or rules and regulations thereunder;

otherwise, and all persons are cautioned
to be guided accordingly.

spondence. production deemed any books, or papers, other require records corre-

quiry, time to to time, material said hearing places to the as from in- he

been

by

Notice of such hearing is hereby given

memoranda

continue

(j) and 5 (b) of the Bituminous Coal
May Act ducers of 15. 1937, 1941, having Bituminous duly Coal filed Pro- on

failing to file an answer within such

DAN H. WHEELER

(SEAL)

recommendation of an appropriate order
in the premises, and to perform all other
duties in connection therewith authorized

8843

NOTICE OF AND ORDER FOR HEARING

A complaint dated May 6, 1941, pursuant to the provisions of sections 4 II

Notice of such hearing is hereby given
to said defendant and to all other parties

301.123 of the Rules and Regulations
Governing Practice and Procedure Be-

fore the Bituminous Coal Division in

Proceedings Instituted Pursuant to sec-

tions 4 II (j) and 5 (b) of the Bituminous Coal Act of 1937, may file a
petition for intervention not later than

five (5) days before the date herein set
for hearing on the complaint.
Notice is hereby given that answer to
the complaint must be filed with the BItuminous Coal Division at its Washington office or with any one of the statisti-

cal bureaus of the Division. within

twenty (20 days after date of service
thereof on the defendant; and that any
defendant failing to file an answer within
such period, unless the Director or the
presiding officer shall otherwise order,
shall be deemed to have admitted the
allegations of the complaint herein and
to have consented to the entry of an
appropriate order on the basis of the
facts alleged.

All persons are hereby notified that
the hearing in the above-entitled matter
and orders entered therein may concern,
in addition to the matters specifically
alleged in the complaint herein, other

FEDERAL REGISTER, Friday, August 1, 1941

3844

matters incidental and related thereto,
whether raised by amendment of the
complaint, petition for intervention, or
otherwise, and all persons are cautioned
to be guided accordingly.
The matter concerned herewith is in

regard to the complaint filed by said

complainant, alleging willful violation by
the above-named defendant of the Bituminous Coal Code or rules and regulations thereunder as follows: That during
the period, January 28, 1941, to February
17, 1941, defendant sold and delivered
to various purchasers, coal produced by
him at his Payton Mine, Mine Index No.
921, located in Warrick County. Indiana,

in District No. 11, at prices below the

effective minimum prices established for
such coal. as contained in the Schedule
of Effective Minimum Prices for District
No. 11 for Truck Shipments, as follows:
Effec-

Amount

Rise

to toos

Sise

Belling

tive
Mini-

group

price

mum
price

$2.20

lump

268.00

$2.30
1.85

1.70

192.18

875

screenings

Mine run
Mine run

2

7

22.76

1.40

14

36.60

1.75

1.80

1,625

1.80

ments; and
Prices
for District No. for Truck Ship-

time to time, and to such places as he

That defendant violated the Order
the Acting Director, No. 296, dated
tember 23, 1940 and the Orders of
Director, No. 297, dated October

deemed relevant or material to the inquiry, to continue said hearing from

may direct by announcement at said
hearing or any adjourned hearing or by
subsequent notice, and to prepare and
submit to the Director proposed findings
of fact and conclusions and the recommendation of an appropriate order in the
premises, and to perform all other duties
in connection therewith authorized by

and No. 307 dated December 1940

by failing to maintain and file

records
were28,
and
are required thereby.
DatedasJuly
1941.
(SEAL]

DAN H. WHEELER,

Acting Director.
(P. R Doc. 41-5565: Filed. July 31, 1941;
10:07 a. m.]

[Docket No. 1750-FD]

IN THE MATTER OF HARVEY W. WRALEY,

law.

(F. R. Doc. 41-5566
July 31, 1941;
10:07Filed,
:

Notice of such hearing is hereby given

to said defendant and to all other parties herein and to all persons and entities

having an interest in such proceeding

Any person or entity eligible under

I 301.123 of the Rules and Regulations
Governing Practice and Procedure Before the Bituminous Coal Division in Proceedings Instituted Pursuant to sections

4 II (j) and 5 (b) of the Bituminous
Coal Act of 1937, may file a petition for
intervention not later than five (5) days
before the date herein set for hearing
on the complaint
Notice is hereby given that answer to
the complaint must be filed with the Bltuminous Coal Division at its Washington office or with any one of the statis-

NOTICE OF AND ORDER FOR HEARING

A complaint dated May 13, 1941, pursuant to the provisions of sections II (j)
and 5 (b) of the Bituminous Coal Act of
1937, having been duly filed on May 28,
1941, by Bituminous Coal Producers

Board for District No. 11, a District
Board, complainant, with the Bitumi-

nous Coal Division alleging willful violation by the defendant of the Bituminous
Coal Code or rules and regulations thereunder;

It is ordered, That a hearing in re-

spect to the subject matter of such complaint be held on September 29, 1941,

at 10 a. m., at a hearing room of the
Bituminous Coal Division at the County

Court House, Shoals, Indiana

It is further ordered, That W. A. Shipman or any other officer or officers of the
Bituminous Coal Division designated by

is to

the Director thereof for that purpose

shall preside at the hearing in such matter. The officer so designated to
to

and affirmations, examine wit-

oaths conduct at such hearing said hearing. hereby authorized administer preside

nesses, subpoena witnesses, compel their

attendance, take evidence, require the

(Docket No. 1751-FD|
IN THE MATTER OF MELVIN FOSTER,
DEFENDANT

NOTICE OF AND ORDER FOR HEARING

A complaint dated May 13, 1941, pur-

suant to the provisions of sections
(j) and (b) of the Bituminous Coal Act
of 1937, having been duly filed on May
28, 1941, by Bituminous Coal Producers

Board for District No. 11, a District
Board, complainant, with the Bituminous
Coal Division alleging willful violation by
the defendant of the Bituminous Coal
Code or rules and regulations thereunder;

It is ordered, That a hearing in respect
to the subject matter of such complaint

twenty (20) days after date of service
thereof on the defendant; and that any

be held on September 29, 1941, at 10 a.m.

defendant failing to file an answer within
such period, unless the Director or the

Division at the County Court House

at a hearing room of the Bituminous Coal

presiding officer shall otherwise order,
shall be deemed to have admitted the
allegations of the complaint herein and
to have consented to the entry of an appropriate order on the basis of the facts
alleged.

DEFENDANT

DAN H. WHEELER,

Acting Director.

tical bureaus of the Division within

Dated July 28, 1941.
[SEAL]

production of any books, papers, correspondence, memoranda or other records

All persons are hereby notified that
the hearing in the above-entitled matter
and orders entered therein may concern,

in addition to the matters specifically
alleged in the complaint herein, other
matters incidental and related thereto,
whether raised by amendment of the
complaint, petition for intervention, or
otherwise, and all persons are cautioned
to be guided accordingly.

The matter concerned herewith is in
regard to the complaint filed by said
complainant, alleging willful violation
by the above-named defendant of the
Bituminous Coal Code or rules and reg-

ulations thereunder as follows: That

since October 1, 1940, defendant sold to
various purchasers, including Roy Purk-

hiser, an undetermined amount of

1 1/2' x 0 and 11/4" x 0 screenings coal,

Size Group No. 14, produced at his
Wraley Mine, Mine Index No. 435, lo-

and affirmations, examine witnesses, subpoena witnesses, compel their attendance,

take evidence, require the production of
any books, papers, correspondence,
memoranda or other records deemed rele-

vant or material to the inquiry, to continue said hearing from time to time,
and to such places as he may direct by
announcement at said hearing or any
adjourned hearing or by subsequent no-

tice, and to prepare and submit to the
Director proposed findings of fact and
conclusions and the recommendation of
an appropriate order in the premises, and

to perform all other duties in connection
therewith authorized by law.
of such hearing is hereby given
and to all

to all persons
herein to Notice said defendant and other and proceeding entities parties

at a per
in

cated District in No. Martin 11, County. price Indiana, of 60c

ton, f. O. b. the mine, whereas the effective minimum price established for such

11/2" x and 1 1/4" x screenings coal,
Size Group No. 14, was and is $1.55 per

Shoals, Indiana
It is further ordered, That W. A. Shipman or any other officer or officers of the
Bituminous Coal Division designated by
the Director thereof for that purpose shall
preside at the hearing in such matter.
The officer so designated to preside at
such hearing is hereby authorized to conduct said hearing. to administer oaths

net ton. f. O. b. the mine, as contained
in the Schedule of Effective Minimum

having an interest in such
or entity

the Rules and
Any $301.123 personPractice
of Procedureand
eligible Regulations Before under

Coal Division

Instituted Pursuant to

ings Governing the Bituminous sections in Proceed- Coal 4 II

5 of the Bituminous

Act of file a

(j) and 1937, (b) may petition for days inter- be

vention not later than five (5)

FEDERAL REGISTER, Friday, August 1, 1941
fore the date herein set for hearing on
the complaint

Notice is hereby given, that answer to
the complaint must be filed with the Bltuminous Coal Division at its Washington
office or with any one of the statistical
bureaus of the Division, within twenty
(20) days after date of service thereof on
the defendant; and that any defendant

failing to file an answer within such

period, unless the Director or the presiding officer shall otherwise order, shall be
deemed to have admitted the allegations

of the complaint herein and to have
consented to the entry of an appropriate
order on the basis of the facts alleged.

All persons are hereby notified that
the hearing in the above-entitled matter
and orders entered therein may concern,

in addition to the matters specifically
alleged in the complaint herein, other
matters incidental and related thereto,
whether raised by amendment of the
complaint, petition for intervention, or
otherwise, and all persons are cautioned
to be guided accordingly.

The matter concerned herewith is in
regard to the complaint filed by said

complainant, alleging willful violation by
the above-named defendant of the BItuminous Coal Code or rules and regulations thereunder as follows:
That since October 1, 1940, defendant
has sold to various purchasers, including
Cecil Elliot and Alva Curtis, an undetermined amount of coal of unknown size,

produced at his Foster Mine, Mine Index
No. 509. located in Perry County, Indiana,

in District No. 11, at a price of 40e per
ton, O. b. the mine, whereas the effective minimum prices established for the
coal produced by the Foster Mine range
from $2.50 per net ton, f. O. b. the mine
for Size Group No. 1. to 55d per net ton,
f. O. b. the mine, for Size Group No. 16,
as contained in the Schedule of Effective

Minimum Prices for District No. 11 for
Truck Shipments: and
That defendant violated the Order of
the Acting Director, No. 296, dated September 23, 1940, and the Orders of the
Director, No. 297, dated October 1940,
and No. 307, dated December 11, 1940,
by failing to maintain and file such records as were and are required thereby.
Dated July 28, 1941.
[SEAL]

DAN H. WHEELER,

Acting Director.
(F. R. Doc. 41-5567: Filed, July 31, 1941;
10:07 m.)

[Docket No. 1757-FD]
IN THE MATTER OF KIEFFNER COAL COMPANY, A PARTNERSHIP. DEFENDANT
NOTICE OF AND ORDER FOR HEARING

minous Coal Division alleging willful vio-

lation by the defendant of the Bituminous Coal Code or rules and regulations
thereunder;

It is ordered, That a hearing in re-

spect to the subject matter of such complaint be held on September 26, 1941, at

10 a. m., at a hearing room of the Bltuminous Coal Division at the County

Court House, Shoals, Indiana
It is further ordered, That W. A. Ship-

plainant, alleging willful violation by the
or rules and

nous above-named Coal Code defendant of the regulations Bitumi-

thereunder as follows:

purchasers,

sold That to various since October 1940, including defendant Alva

Curtis, an undetermined

x coal,
Size
at its Kleffner

Index 15, % produced 0 screenings amount
Group Mine No. of
inMine,
Dubois

No. 11, which

man or any other officer or officers of
the Bituminous Coal Division designated
by the Director thereof for that purpose
shall preside at the hearing in such matter. The officer so designated to preside
at such hearing is hereby authorized to

conduct said hearing. to administer
oaths and affirmations, examine wit-

nesses, subpoena witnesses, compel their

attendance, take evidence, require the
production of any books, papers, correspondence, memoranda or other records

deemed relevant or material to the in-

quiry. to continue said hearing from

time to time, and to such places as he
may direct by announcement at said
hearing or any adjourned hearing or by
subsequent notice, and to prepare and
submit to the Director proposed findings
of fact and conclusions and the recommendation of an appropriate order in
the premises, and to perform all other
duties in connection therewith authorized by law.

Notice of such hearing is hereby given

to said defendant and to all other parties herein and to all persons and entitles having an interest in such proceeding. Any person or entity eligible under
$301.123 of the Rules and Regulations
Governing Practice and Procedure Be-

fore the Bituminous Coal Division in

Proceedings Instituted Pursuant to sec-

tions II (j) and (b) of the Bituminous

Coal Act of 1937, may file a petition for
intervention not later than five (5) days
before the date herein set for hearing on
the complaint.
Notice is hereby given that answer to

the complaint must be filed with the Bltuminous Coal Division at its Washington office or with any one of the statis-

tical bureaus of the Division. within
twenty (20) days after date of service

thereof on the defendant; and that any
defendant failing to file an answer within
such period. unless the Director or the
presiding officer shall otherwise order,
shall be deemed to have admitted the
allegations of the complaint herein and
to have consented to the entry of an appropriate order on the basis of the facts
alleged.

All persons are hereby notified that the
hearing in the above-entitled matter and
orders entered therein may concern, in

addition to the matters specifically al-

X 1/2"

contained Indiana, No. in 11/4" 312, District located over-sise coal, actually County, Size

Group No. 10. at a price of 85g per ton,
f. O. b. the mine, whereas the effective
minimum price established for such coal
was and is $1.70 per net ton, f. O. b. the
mine, as contained in the Schedule of
Effective Minimum Prices for District No.
11 for Truck Shipments: and
That subsequent to September 30, 1940,

defendant violated paragraph 8 of sec-

tion 4 II (1) of the Act, and Rule 8 of

section XIII of the Marketing Rules and
Regulations by invoicing and selling the
aforesaid coal as %" x screenings coal.
Dated: July 28, 1941
DAN H. WHEELER,

[SEAL]

Acting Director.
(P. R. Doc. 41-5568 Filed. July 31, 1941:
10:07 m.)

Docket No. 1754-FD]
IN THE MATTER OF CHESTER TEDROW.
DEFENDANT

NOTICE OF AND ORDER FOR HEARING

A complaint dated May 13, 1941, pursuant to the provisions of sections 4 II

(j) and 5 (b) of the Bituminous Coal

Act of 1937, having been duly filed on
May 28, 1941, by Bituminous Coal Producers Board for District No. 11, a District Board, complainant, with the Bitu-

minous Coal Division alleging willful
violation by the defendant of the Bituminous Coal Code or rules and regulations thereunder;

It is ordered, That a hearing in respect to the subject matter of such complaint be held on September 29, 1941. at

10 a. m., at a hearing room of the Bltuminous Coal Division, the County
Court House, Shoals, Indiana
It is further ordered, That W. A. Ship-

man or any other officer or officers of
the Bituminous Coal Division designated
by the Director thereof for that purpose
shall preside at the hearing in such matter. The officer so designated to preside
at such hearing is hereby authorized to
conduct said hearing. to administer oaths
and affirmations, examine witnesses,
subpoena witnesses, compel their attend-

ance, take evidence, require the production of any books, papers, correspond-

leged in the complaint herein, other mat-

ence, memoranda or other records
deemed relevant or material to the in-

whether raised by amendment of the
complaint, petition for intervention. or

quiry. to continue said hearing from time
to such places as he may
announcement at
hearing or
or to direct time, any by adjourned and said and by hearing submit subsequent notice, and to prepare
to the Director proposed findings of fact

A complaint dated May 14, 1941, pursuant to the provisions of sections 4 II

ters incidental and related thereto,

Act of 1937, having been duly filed on
May 28, 1941, by Bituminous Coal Producers Board for District No. 11, a District Board, complainant, with the Bitu-

otherwise, and all persons are cautioned
to be guided accordingly.
The matter concerned herewith is in
regard to the complaint filed by said com-

(j) and 5 (b) of the Bituminous Coal

3845

FEDERAL REGISTER, Friday, August 1, 1941

3846

[Docket No. A-893

and conclusions and the recommenda-

tion of an appropriate order in the

premises, and to perform all other duties

in connection therewith authorized by
law.

Notice of such hearing is hereby given
to said defendant and to all other parties herein and to all persons and entities
having an interest in such proceeding.

Any person or entity eligible under

PETITION OF THE BITUMINOUS COAL CONSUMERS' COUNSEL FOR A CHANGE IN THE

BOUNDARY LINES OF MARKET AREAS 26
AND 30, AND AMENDMENT OF PRICE ExCEPTION 4 ON PAGE 40 OF THE SCHEDULE
OF EFFECTIVE MINIMUM PRICES FOR DIS-

TRICT No. 8 FOR ALL SHIPMENTS ExCEPT TRUCK. OR, IN THE ALTERNATIVE

FOR F. S. PRICES FROM DISTRICT No.

301.123 of the Rules and Regulations

8 FOR THE KIEFFER PAPER MILLS,

Governing Practice and Procedure Before
the Bituminous Coal Division in Proceed-

BROWNSTOWN, INDIANA, IN MARKET

ings Instituted Pursuant to sections 4
(j) and 5 (b) of the Bituminous Coal

AREA 30

NOTICE OF AND ORDER FOR HEARING

Act of 1937, may file a petition for intervention not later than five (5) days before the date herein set for hearing on
the complaint.

A petition, pursuant to the Bituminous
Coal Act of 1937, having been duly filed

Notice is hereby given that answer
to the complaint must be filed with the

It is ordered, That a hearing in the
above-entitled matter under the appli-

Bituminous Coal Division at its Washing-

ton office or with any one of the statisti-

cal bureaus of the Division, within
twenty (20) days after date of service
thereof on the defendant; and that any
defendant failing to file an answer within
such period. unless the Director or the
presiding officer shall otherwise order.
shall be deemed to have admitted the al-

legations of the complaint herein and
to have consented to the entry of an
appropriate order on the basis of the
facts alleged.

All persons are hereby notified that
the hearing in the above-entitled matter
and orders entered therein may concern,
in addition to the matters specifically alleged in the complaint herein, other mat-

ters incidental and related thereto,

whether raised by admendment of the
complaint, petition for intervention, or
otherwise, and all persons are cautioned
to be guided accordingly.

The matter concerned herewith is in
regard to the complaint filed by said com-

plainant, alleging willful violation by the
above-named defendant of the Bituminous Coal Code or rules and regulations
thereunder as follows: That during the
months of January, 1941 and February,
1941, defendant sold and delivered to
various purchasers, including H. Purkhiser, approximately 36 tons of 1 1/2" x1"
nut coal at a price of $1.65 per ton f. O. b.

the mine, and approximately 50 tons of

1" screenings coal, at a price of 60c
per ton b. the mine, produced at his
Chester Tedrow Mine, Mine Index No.
433, located in Martin County, Indiana,
in District No. 11. whereas the effective
minimum prices established for such coal
were and are $1.85 per net ton O. b. the

mine, for the 1 1/2' nut coal and
$1.55 ner net ton f. O. b. the mine for the
0 screenings coal, as contained in the

Schedule of Effective Minimum Prices for

District No. 11 for truck shipments.
Dated July 28, 1941.
(SEAL)

DAN H. WHEELER,

Acting Director.
(F. R. Doc. 41-5569: Filed. July 31, 1941;
10:07 a.m.

with this Division by the above-named
party:

cable provisions of said Act and the rules

of the Division be held on August 25,
1941, at 10 o'clock in the forenoon of
that day. at a hearing room of the BItuminous Coal Division, 734 Fifteenth
Street NW., Washington, D. On such
day the Chief of the Records Section in
room 502 will advise as to the room
where such hearing will be held.
It is further ordered, That Charles O.

Fowler or any other officer or officers
of the Division duly designated for that
purpose shall preside at the hearing in
such matter. The officers so designated
to preside at such hearing are hereby
authorized to conduct said hearing, to
administer oaths and affirmations, examine witnesses, subpoena witnesses,
compel their attendance, take evidence,

require the production of any books,
papers, correspondence, memoranda, or
other records deemed relevant or mate-

rial to the inquiry, to continue said
hearing from time to time, and to prepare and submit to the Director proposed
findings of fact and conclusions and the
recommendation of an appropriate order
in the premises, and to perform all other

duties in connection therewith author-

ized by law.

Notice of such hearing is hereby given

to all parties herein and to persons or
entities having an interest in these proceedings and eligible to become a party
herein. Any person desiring to be admitted as a party to this proceeding may

file a petition of intervention in accordance with the rules and regulations of
the Bituminous Coal Division for proceedings instituted pursuant to section
II (d) of the Act, setting forth the facts
on the basis of which the relief in the
original petition is supported or opposed

or on the basis of which other relief is
sought. Such petitions of intervention
shall be filed with the Bituminous Coal
Division on or before August 19, 1941.
All persons are hereby notified that
the hearing in the above-entitled matter
and any orders entered therein, may con-

cern, in addition to the matters specifically alleged in the petition, other mat-

ters necessarily incidental and related
thereto, which may be raised by amend.
ment to the petition. petitions of inter.

veners or otherwise,
or which be
to the

on of this

necessary granted The matter corollaries the basis relief, petition. may If any,

concerned herewith is

regard to the petition of the Bituminous
Coal Consumers' Counsel for an order

extending of

No. along the

way Brownstown

26 to westward include the boundary Market Rail. Area

or, in the

of for

extending lonia, Indiana, said boundary alternative, to and include Val.

Brownstown, Indiana; and that
on page 40 of the

Exception Effective 8 for 4 Minimum Prices Schedule District Price
No.
All Shipments Except Truck

be amended to apply to shipments to
Brownstown, Indiana. In the alterna.
tive, the petition prays that the present
Schedule of Effective Minimum Prices
for District No. 8 for All Shipments Ex.
cept Truck be modified to permit code
members in District No. 8 to sell to the
Kieffer Paper Mills, Brownstown, Indiana, in Market Area 30, at the minimum
prices established for f. a. S. delivery.
Dated July 28, 1941.
[SEAL]

DAN H. WHEELER.

Acting Director.

(F. R. Doc. 41-5570; Filed, July 31, 1941;

10:08 m.]

[General Docket No. 12]
IN THE MATTER OF PRESCRIBING DUE AND
REASONABLE MAXIMUM DISCOUNTS OR
PRICE ALLOWANCES BY CODE MEMBERS

TO "DISTRIBUTORS" UNDER SECTION 4

PART II (h) OF THE BITUMINOUS COAL
ACT OF 1937, AND ESTABLISHING RULES
AND REGULATIONS FOR THE MAINTENANCE

AND OBSERVANCE BY DISTRIBUTORS IN

THE RESALE OF COAL. OF THE PRICES
AND MARKETING RULES AND REGULATIONS PROVIDED BY SECTION 4 OF THE
ACT; AND IN RE PETITION OF BITUMINOUS
COAL PRODUCERS BOARD FOR DISTRICT
No. 10, FOR ORDER MODIFYING SCHEDULE

OF MAXIMUM DISCOUNTS THAT MAY BE
ALLOWED TO REGISTERED DISTRIBUTORS

ON COAL OF DISTRICT No. 10 MINES
RESOLD TO THE WABASH RAILWAY
COMPANY

ORDER OF POSTPONEMENT OF HEARING

The American Coal Distributors Assoclation, on July 26, 1941, having moved

that the hearing in the above-entitled
matter, set for August 4. 1941, be postponed to a date not earlier than August
26, 1941, representing that its partici-

pation in the proceedings in General
Docket No. 21 precludes It "from fairly
and properly devoting adequate time
now in the preparation of its case in
the above-entitled matter, and that the

Petitioner herein, District Board No. 10.

concurs in the said Motion for a postponement, and
It appearing that the Movant, as well

as other parties having an interest in

FEDERAL REGISTER, Friday, August 1, 1941
the subject matter of this hearing. are
engaged in the proceedings in General
Docket No. 21, and good cause having
been shown,

It is ordered, That the hearing in the
above-entitled matter, originally set for
4. 1941, at 10:00 a. m. in a hear-

of fact and conclusions and the recom-

duties in connection therewith author-

at the Swanton No. 1

ized by law.

837)
the Swanton
duced Index
No.ofmine
Big (MineVein
pro-

and to or
an interest in this

Notice of such hearing is hereby given

Coal Company.

persons are hereby the

hearing Allthe
in above-entitled
notified matter that and

to become

and same

any orders therein may

to entities ceeding all parties having and eligible herein persons parties pro-

D. ing August C., room be the Division is in hereby Washington, post-

poned to August 26, 1941, at the same
place and hour.
Dated July 30. 1941.
H. A. GRAY,

(SEAL)

of price classifications and minimum
shipments
prices for truck
for allofexcept
truck
shipments
coals to
be and

an

and to
mendation the premises, of appropriate perform all order other in

of the

Director.

herein. Any person desiring to be ad-

matters

other matters
and related

mitted as a party to this proceeding may
file a petition of intervention in accordance with the rules and regulations of

dition in incidental the petition. to the specifically concern, necessarily alleged in ad-

by amendment of
petitions
of
inal may petition, be raised thereto, interveners, the which orig- or

the Bituminous Coal Division for proceedings instituted pursuant to section

otherwise, or which may be necessary
corollaries to the relief, If any, granted

4 II (d) of the Act, setting forth the
facts on the basis of which the relief

(P. R. Doc. 41-5571;
Filed. July 31, 1941;
10:08 a. m.)

[Docket No. A-964
PETITION OF SWANTON BIG VEIN COAL COMPANY, A CODE MEMBER IN DISTRICT No. 1

gust 25, 1941.

FICATIONS AND MINIMUM PRICES FOR

The matter concerned herewith is in
regard to the petition of the Swanton

COALS OF THE SWANTON No. 1 MINE
(MINE INDEX No. 837) OF THE SWANTON

on the basis of said original

ordered, a

in the original petition is supported or
opposed or on the basis of which other
relief is sought. Such petitions of intervention shall be filed with the Bituminous Coal Division on or before Au-

FOR THE ESTABLISHMENT OF PRICE CLASSI-

of the

made, final

able It is showing further been necessity That, petition. therefor reason-

petition in the

relief is as

Commencing forthwith, the

having follows: tion matter, of the temporary pending above-entitled granted disposi-

Schedule of Effective Minimum Prices for

District No. 1 for All Shipments Except

Big Vein Coal Company, a code member

Truck, is temporarily amended by adding
thereto the following:

in District No. 1, for the establishment

BIG VEIN COAL COMPANY

3847

NOTICE OF AND ORDER FOR HEARING AND ORDER
origin
group

No.

No.

1

Seam

2

No.

Big Vein.

104

D

44

D

D

D

Swanton #1

Swanton Big Vein Coal Company, c/o R. c. Clark

837

D

prices for coals to be produced at the

dist.

$

the Bituminous Coal Act of 1937, having
been duly filed with this Division by the
above-named party requesting the establishment of both temporary and permanent price classifications and minimum

Mine name

Code member

index

4

An original petition and amendment
thereto, pursuant to section 4 II (d) of

Freight

Sub-

Mine

&

GRANTING TEMPORARY RELIEF

Commencing forthwith, the Schedule of Effective Minimum Prices for District No. 1
for Truck Shipments is temporarily amended by adding thereto the following:

Swanton No. 1 mine (Mine Index No. 837)
Sub-

to stay, terminate or modify the tem-

It is further ordered, That Joseph A.

Huston or any other officer officers
that

matter. The

at the

Swanton #1

837

to hear-

ing. to administer oaths and affirmations, examine witnesses, compel their

attendance. take evidence, the
any

rec-

deemed relevant or material the

to continue said from
and to

mit time inquiry, to time. prepare hearing and to sub-

to the Director proposed findings
No.149

Big Vein

255

230

230

220

210

pursuant to the rules and regulations

governing practice and procedure before
the Bituminous Coal Division in proceed-

fendant herein, willfully violated the

porary relief herein granted may be filed

ings instituted pursuant to Section

4 II (d) of the Bituminous Coal Act of
1937.

Dated July 30, 1941.
H. A. GRAY,

(SEAL]

Director.

[F. R. Doc. 41-5572; Filed, July 31, 1941;

plainant, alleging that F. B. Fry. the de-

provisions of the Bituminous Coal Code
(the "Code") and the effective minimum
prices, by selling, delivering and offering
to sell four (4) tons or more of 2" x 3/4'
stoker (Size Group 5) coal on February
12. 1941. produced by the defendant at
its Fry Mine, Mine Index No. 2921, located at or near Wayne County. West

Virginia, in District No. 8. to Charley
Short and Cecil Brown, truckers of coal.

[Docket No. 1639-FD]

IN THE MATTER OF F. B. FRY, CODE MEMBER, DEFENDANT
CEASE AND DESIST ORDER

ords production spondence, of memoranda, books, or papers, require other corre-

Garrett

visions of sections 4 II (j) and 5 (b) of
the Bituminous Coal Act of 1937 (the
"Act") by the Bituminous Coal Producers Board for District No. 8. com-

Notice is hereby given that applications

preside at such are

nated hereby to authorized conduct officers hearing said so desig-

44

Company, c/o R c. Clark

10:08 a. m.]

of purpose in the such Division shall preside duly designated or for hearing

1

Now, therefore, it is ordered, That a
hearing in the above-entitled matter be
held, under the applicable provisions of
said Act and the rules and regulations of
the Division, on August 29, 1941, at 10
o'clock a. m. (eastern standard time) in a

will be held.

Seam

,

Swanton Big Vein Coal

Division, 734 15th Street NW. Washington, D.C. On such day the Chief of the
Records Section in Room 502 will advise
as to the room in which such hearing

County

No.

No

above-entitled proceeding and an answer
to the aforesaid petition:

hearing room of the Bituminous Coal

dist.

3

Mine name

Index

4

Mine

Code member

District Board No. 1 having filed a
petition for leave to intervene in the

$

of the petitioner; and

A complaint, dated March 28, 1941, in
the above-entitled matter. having been
filed with the Bituminous Coal Division

(the "Division") pursuant to the pro-

at a price of $1.00 per net ton f. o. b.
truck transportation facilities at said
mine, whereas the effective minimum
price for such coal was $1.85 per net ton

f. O. b. transportation facilities at said
mine; and the complaint herein and notice of and order for hearing thereon
having been duly served on the defendant on April 21, 1941; and

FEDERAL REGISTER, Friday, August 1, 1941

3848

The defendant, by stipulation made
July 2. 1941, a true copy of which is on
file herein, having admitted the truth

[Docket No. A-525)

in the Schedule of Effective
10 for All

PETITION OF DISTRICT BOARD No. 7 FOR
REDUCTION IN THE MINIMUM PRICES FOR

Prices Except for Truck. District Petitioners Shipments Minimum

of the allegations contained in the com-

Low VOLATILE RUN OF MINE COAL PRO-

ity to sell coal produced at their mine

plaint herein and the facts set out in

DUCED IN DISTRICTS Nos. 7 AND 8. WHEN

in District No. 10 to retail dealers in the

SHIPPED FOR OFF-LINE RAILWAY Loco-

cities of Minneapolia and St. Paul, Minne-

said stipulation and having consented to
the making and entry of this order:
It is hereby found That:
1. On June 13, 1940, the defendant

filed with the Division his acceptance
dated June 12, 1940, of the Code. Said
acceptance was approved by the Division
to take effect as of June 13, 1940. The
defendant has been since June 13, 1940,

and is now a code member in District

No.

2. The defendant wilfully violated the
provisions of the Code and the effective
minimum prices established by the Division by offering to sell, selling and de-

livering four (4) tons or more of

2" stoker (Size Group 5) coal
on February 12, 1941, produced by the
defendant at his Fry Mine, Mine Index

No. 2921. located at or near Wayne
County, West Virginia, to Charley Short
and Cecil Brown, truckers of coal, at a
price of $1.00 per net ton f. O. b. truck

transportation facilities at said mine.

The effective minimum price established

for such coal was $1.85 per net ton b.

said transportation facilities at said
mine.

Now, therefore, based upon the above

findings and the defendant's above
stipulation:

It is ordered, That the defendant, his
representatives, agents, servants, employees and attorneys and all persons

acting or claiming to act in his behalf
or interest, cease and desist and they
hereby are permanently enjoined and
restrained from violating the Code and

the effective minimum prices established

ant under section 5 (d) of the Act in

respect to said violations.
Dated: July 28, 1941.
(SEAL)

DAN H. WHEELER,

Acting Director.
IF. R. Doc. 41-5578 Filed, July 31, 1941;

10:08 m.)

or over the

MOTIVE FUEL, EXCEPT VIA TIDEWATER
ORDER OF THE ACTING DIRECTOR DENYING
RELIEF

Petition having been filed with the Bituminous Coal Division pursuant to section 4 II (d) of the Bituminous Coal Act
of 1937 seeking a reduction in the off-line
railway locomotive fuel price of District

7 and 8 low volatile run of mine coals,
except via tidewater;

Petitions of intervention having been
filed by District Boards 1 and 3:

A hearing having been held in this

matter on February 6. 1941, pursuant to
an Order of the Director, before a duly
designated examiner of the Division, at a

hearing room of the Division in Washington, D.C. at which all interested per-

sons were afforded an opportunity to be
present, adduce evidence, and otherwise
be heard:

The preparation and filing of a report
by the Examiner having been waived and
the record thereupon having been submitted to the Acting Director:

The Acting Director having made

Findings of Fact and Conclusions of Law
and having rendered an Opinion, which
are filed herewith;
Now, therefore, it is ordered, That the
prayers for relief contained in the petition herein be, and are hereby, denied.
Dated July 28, 1941.
(SEAL]

DAN H. WHEELER

Acting Director.
(F. R. Doc. 41-5574 Filed, July 31, 1941;
10:09 a. m.)

by the Division;

It is further ordered, That the Division, in its discretion, may apply to the
Circuit Court of Appeals of the United
States within any circuit where such defendant resides and carries on business
for the enforcement hereof; and
It is further ordered, That this order
shall not constitute a waiver by or on
behalf of any person entitled to file a
complaint under sections 4 II (j) and
(b) of the Act, or either of them, or of
any right which they or any of them or
which the Division may have against the
defendant or of any penalty or forfeiture
to which the defendant may be subject
by reason of any violation other than
those referred to in paragraph 2 of the
findings herein, or a waiver by or on
behalf of any code member of any right
which he may have against the defend-

seek author.

[Docket No. A-780

PETITION OF DELTA MINING COMPANY,
SAHARA COAL COMPANY AND THE UNITED
ELECTRIC COAL COMPANIES, CODE MEMBER PRODUCERS IN DISTRICT No. 10, FOR

MINIMUM F. O. B. MINE PRICES FOR
F. A. S. DELIVERY FROM DISTRICT No.
10 TO RETAIL DEALERS AT MINNEAPOLIS
AND Sr. PAUL, PURSUANT TO SECTION 3
(A), SPECIAL RIVER PRICE INSTRUCTIONS
AND EXCEPTIONS, SCHEDULE OF EFFEC-

TIVE MINIMUM PRICES FOR DISTRICT No.
10, OR IN THE ALTERNATIVE FOR ESTABLISHMENT OF JUST AND EQUITABLE PRICES
MEMORANDUM OPINION AND ORDER GRANTING
TEMPORARY RELIEF

This proceeding was instituted upon
an original joint petition filed with the
Bituminous Coal Division on March 31,
1941, by Delta Coal Mining Company
("Delta"), Sahara Coal Company ("Sa-

hara"), and the United Electric Coal
Companies ("United Electric"), code

members in District No. 10, pursuant to
the provisions of Section 3 (A), Special
River Price Instructions and Exceptions

f. O.
docks sota, for for there, delivery f. at minimum to municipal b. mine

prices
a. a. delivery, and for general relief.
Franklin County Coal Corporation Old
Ben Coal Corporation, Bell & Zoller Coal
and Mining Company. Chicago, Wilming.
ton & Franklin Coal Company Peabody
Coal Company and Wasson Coal Company ("Franklin County Coal Corporation
et als."), code members in District No.
intervened in support of the petition and
ask the same measure of relief as may
be granted to original petitioners. The
City of Minneapolis, a political subdivi-

sion of the State of Minnesota, inter-

vened in support of the original petition.
District Boards 7 and 11 intervened in
opposition to the requested relief and
District Board 11 moved to dismiss the
original petition, which motion was denied by the Director. District Boards 2.
6, and 10 and Carter Coal Company, a
code member in District 7. intervened
generally, and Consumers' Counsel Division (now Office of the Bituminous Coal
Consumers' Counsel) filed a notice of
appearance.

A hearing was held on May 27, 28 and
29, 1941, and on May 29 was continued
July 15,1941. The hearing resumed
on that date and was concluded on July
22, 1941. Appearances were noted for
original petitioners, Consumers' Counsel
and all interveners and Carter Coal Com-

pany. District Board 8 appeared and
participated but did not intervene.
On May 29, 1941, during the course of
the hearing, petitioners filed a motion for
leave to amend their original petition, in
order more clearly to define the issues
involved, by requesting as alternative relief (if section 3 (A) of the Special River
Price Instructions and Exceptions, Schedule of Effective Minimum Prices for District No. 10, should be construed as being
inapplicable) the establishment of just
and equitable prices under section 4 II (d)
of the Bituminous Coal Act of 1937. District Board 7 filed a reply in opposition
On June 17. 1941, the Director granted
leave so to amend, gave notice of the
amendment and of the continuance of the
hearing, and extended the period for in-

tervention. No new petitions of inter-

vention were filed.
petitioners, filed

motion a brief,

On June supported 4. original by Board requesting 7 filed
temporary
relief. District
a brief opposing the granting of tem-

porary relief.

During the hearing. petitioners offered evidence that:
Illinois coals moved all-rail into the
Twin Cities market in substantial quantitles until about 1924, when rail Dock rates

were increased and Great Lakes

FEDERAL REGISTER, Friday, August 1, 1941
rates decreased; as a result, the Twin
Cities market was virtually lost to IIIInois coals: during the last five years the
upper part of the Mississipp! River has
been developed by the Federal Government: due to this development, and be-

cause of lower transportation charges
for river as compared to all-rail shipments, Illinois coals began to move by
barge to the Twin Cities, and beginning
in 1939 moved in continually increasing
quantities until the establishment of
effective minimum prices on October 1,
1940.

It was also testified that the cities of
Minneapolis and St. Paul. in order that
their inhabitants might enjoy the lower
river transportation rates, constructed
coal docks on the Mississippi River: that
these docks are operated as a municipal
function at moderate cost with allocation of storage space to retail coal dealers on a yearly basis; and that although
actual storage space on the dock is limited. there is ample capacity for movement of coal across the dock. storage
at inland retail coal yards."

It was further testified that: In 1939
and 1940 petitioners shipped a substantial

percentage of the Illinois coal moving by
river to the Twin Cities: in 1939 Sahara

shipped via the Minneapolis dock to
about six purchasers, including retail

coal dealers, and to its own retail

coal yard on the Minneapolis dock where
it sold to retail coal dealers and in 1940

to the dockyard of its own subsidiary,
Saline Coal and Dock Co., and to others
including retail coal dealers with inland
retail coal yards; United Electric shipped

to retail coal dealers over the St. Paul
dock: Delta's coals moved via the Minneapolis dock to Republic Coal & Coke Company, its exclusive sales agent, acting as

retail coal dealer on the dock. to retail
coal dealers and to certain consumers
taking coal over the dock direct from
barge to railroad car: interveners, Franklin County Coal Corporation et als., also

shipped by river to the Twin Cities,

Franklin County Coal Corporation and
Peabody Coal Company, at least, shipping on a regular basis and in substantial
tonnages; since October 1, 1940, neither
original petitioners nor any of the interveners have shipped coal via river to re-

tail coal dealers in the Twin Cities: in
fact, very little Illinois coal has since
been delivered to such retail coal dealers

either by river or all-rail.
It appears that under the established
minimum prices, water-borne Illinois
coals have been unable to compete with
water-borne eastern coals from Minimum
Price Area having the advantage of the

Great Lakes dock rates. Since It is esThe evidence offered was that in 1931
the movement totaled 7,896 tons. There
were no shipments in 1932 and 1933 In

a of 204,672 tons was by

testimony
is about
of Illinois coal moved to and

Federal 1940 230,000 The total tons Barge Line alone that in 1940 shipped

over the municipal dock at Minneapolis.

timated that 85-95% of the coal delivered

in the Twin Cities is water-borne, these
eastern coals present the real competition

3849

dination of established minimum prices,
or by any other means is a matter which
can only be determined after more stud-

to the coal from District No. 10.
Petitioners contended that either free
alongside prices should be granted or,
if the relationship with all-rail coals must
be maintained, that the prescribed differ-

led consideration of the record in this
proceeding. And in that connection,
pending final disposition of the petition.
the Division will also study carefully the

entials should be revised properly to take

temporary relief.

into account. not only the lower cost
of river over all-rail transportation, but
also certain cost factors involved in the
handling of river coals, and that relief
should be extended to inland retail coal
dealers as well as those having dockyards, because storage space on the municipal docks is limited and occupied only
by a few persons and because much of

the coal has customarily moved across
the docks to inland retail coal dealers'
yards for storage. There appear to be
no private coal docks and no possible locations for them within the Twin Cities
area.

Certain interveners, particularly District Board 7. opposed the granting of
any relief, temporary or permanent, urging that it would upset coordination with

eastern Lake dock coals by depriving
them of their existing competitive opportunities in the Twin Cities market by
failing properly to reflect relative market
values.

District Board 7 produced two witnesses

who testified concerning the propriety
of f. prices. One of these witnesses
stated that he was opposed to such relief

whereas another witness, representing
lake dock interests regularly shipping the
preponderant tonnages consumed in the
Twin Cities, stated that f. a. 8. prices
should be established for sales to retail
coal dealers with dock facilities at the
Twin Cities. The witnesses for District
Board 7 also testified, concerning the effect of the establishment of f. a. S. prices
upon coordination at the Twin Cities.
Entirely apart from, and without considering, the issue of re-coordination it
is appropriate, on the basis of the abovementioned evidence, to grant temporary
relief under section 3 (A) of the Special
River Price Instructions and Exceptions
in the Minimum Price Schedule for Dis-

trict No. 10. Unless petitioners are
granted temporary relief they will suffer
irreparable injury. due to the shortness
of the river navigation season. And unless such relief is granted immediately,
petitioners will be deprived of any opportunity to negotiate for the sale and
shipment of river coals during the current season. Half of the season already
having passed, substantially less Illinois
coal can be shipped during the remainder

of the season than was shipped during
1940; certainly no more. There can not
be possible prejudice, therefore, to the
eastern producers if temporary relief, as
hereinafter provided, is granted.
Whether temporary relief should be
made permanent and whether permanent relief should be granted under the
"Special Cases" provision, by a re-coor-

results which follow from the granting of

Now, therefore, it is ordered, That
temporary relief pending final disposition of this proceeding is granted forth-

with by temporarily amending the
schedule of Effective Minimum Prices for
District No. 10 for All Shipments Except
Truck, as follows

Under the Section "Prices for River
(free alongside deliveries) and Ex-River
Shipments, Special River Pride Instructions and Exceptions," "Special Cases
C," page 53, add the following provision:

Any code member producer, sales
agent or registered distributor may sell
coal for barge delivery to and over the
municipal docks at Minneapolis and
St. Paul at the minimum f. O. b. mine
prices for free alongside delivery when
shipped from the mines by rail and reloaded into barges on the Mississippi
River for transshipment on the Mississippi River to retail coal dealers for resale

at retail by such dealers located within

the switching limits of these cities,
whether such coal is for storage on the
municipal docks or at inland retail coal
yards.

Provided, however, That the relief
herein granted shall apply only to coal
shipped from the mine subsequent to
the date hereof, and
Provided further, That any code member, sales agent or registered distributor
offering for sale, selling or reselling any
coal pursuant to this Order shall submit
to the Bituminous Coal Division at 734
Fifteenth Street NW. Washington, D.C.

within five (5) days after such offer,
sale or resale, a complete description of
such offer. sale or resale as is required
by the Marketing Rules and Regulations
of the Division, Order 313. and any other
orders of the Division. The filing of this

data at the offices of the Bituminous
Coal Division in Washington, D. C. shall

be in addition to that required for filing
with the field office.
Each report or description required
herein shall be duly verified and marked
for incorporation in this docket as part
of the record in these proceedings.

It may be required from time to time
that there shall be made available for
inspection for representatives of the BItuminous Coal Division at all reasonable
times and places, all books, records, correspondence or other documents pertain-

ing to the offer for sale, sale, delivery
or other transactions of and involving
such coals.

Notice is hereby given that applications to stay. terminate, or modify the
temporary relief herein granted may be
filed pursuant to the Rules and Regu-

FEDERAL REGISTER, Friday, August 1, 1941

8850

lations Governing Practices and Procedure for the Bituminous Coal Division
in Proceedings Instituted Pursuant to
section 4 II (d) of the Bituminous Coal
Act of 1937.

Nothing contained herein shall be
deemed to constitute a ruling or expression of the Director's views concern-

ing the final disposition of these pro-

ceedings or the nature of the relief which
may hereafter be granted.
Dated July 29, 1941.
H.A. GRAY,

(SEAL)

Director.

(P. R Doc. 41-5575 Filed, July 81, 1941:
10:09 a. m.]

(Docket No. 1557-FD)
IN THE MATTER OF BECKLEY FIRE CREEK
COAL COMPANY, DEFENDANT

ORDER GRANTING APPLICATION FOR REIN-

(Docket No. 821-FD)

In THE MATTER OF THE APPLICATION OF
BELLEVILLE FUELS, INCORPORATED FOR
PROVISIONAL APPROVAL AB A MARKETING
AGENCY: IN RE: APPLICATION OF THE AP-

PLICANT FOR RENEWAL OF THE ORDER
MARKETING AGENCY
ORDER GRANTING INTERIM RENEWAL OF ORDER

GRANTING APPLICANT PROVISIONAL APPROVAL AB A MARKETING AGENCY

Applicant, Belleville Fuels, Incorporated, having filed an application with
the National Bituminous Coal Commission (predecessor of the Bituminous Coal
Division) requesting provisional approval
as a marketing agency pursuant to Order No. 6 issued by said National Bituminous Coal Commission on June 21,

The Bituminous Coal Division by Or-

An Order having been made herein on

July 18, 1941, by the Acting Director,
pursuant to stipulation of Beckley and
said District Board, dated July 16, 1941,
cancelling and revoking the code membership of Beckley and providing that
such cancellation and revocation shall
become effective six (6) days after service

uary 9, 1940, subject to renewal upon ap-

plication therefor; and

Applicant having on June 27, 1941,
filed an application for renewal of said
Order granting it provisional approval
as a marketing agency, requesting that
said Order be renewed retroactively to
January 9. 1941; and

By an Order dated July 15. 1941, a
hearing having been scheduled on said

application for renewal of the Order

granting Applicant provisional approval
as a marketing agency, at 10 o'clock in
the forenoon of August 4. 1941, at a hear-

effective date of such cancellation and re-

Now, therefore, # is ordered, That,

Beckley having filed with the Division
its application, dated July 25, 1941, for
come effective simultaneously with the

vocation of its code membership; and
appearing from said application that
Beckley has paid to the Collector of Internal Revenue at Parkersburg, West Virginia, the sum of One Thousand Nine
Hundred Seven Dollars and Thirty-seven
Cents ($1,907.37). pursuant to said Order
made July 18, 1941, as a condition prece-

dent to reinstatement of its code
membership.

It is ordered, That said application of
Beckley, dated July 25, 1941, for reinstatement of its code membership be and
it hereby is granted.

It is further ordered, That the code
membership of Beckley be and it hereby
is restored as of the effective date of said

specified respects;

pending the determination of the aforementioned proceeding. an interim renewal of the Order granting the Appli-

cant provisional approval as a marketing
agency is hereby granted as of January
1941;

It is further ordered, That the renewal

of the provisional approval hereby
granted is specifically subject to such
further orders as may be entered in this

docket.

Dated July 28, 1941.
[SEAL]

DAN H. WHEELER

Acting Director.
(P. R. Doc. 41-5577 Filed, July 81, 1941;
10:00 m.]

cancellation and revocation of code

membership.

APPLICATIONS FOR REGISTRATION

Dated July 30, 1941.
(SEAL)

AS DISTRIBUTOR
GRAY,

Director.

(P. R. Doe. 41-5576
Filed, July 31, 1941;
10:09

D.C.

(SEAL)

reinstatement of code membership to be-

Beckley on July 23, 1941; and

provisions of the Bituminous Coal Act
and the Rules and Regulations for the
Registration of Distributors, is invited
to furnish such information to the DIvision on or before August 1941. This
information should be mailed or presented to the Bituminous Coal Division
Dated July 29, 1941.

ing room of the Bituminous Coal Division, 734 15th Street NW., Washington,
D. C.: and Applicant having been required
at the same time to show cause why its
provisional approval. if renewed, should
not be modified and amended in certain

thereof on Beckley; and
Said Order having been duly served on

Any district board, code member, distributor, the Consumers' Counsel, or any
other interested person, who has peru
nent information concerning the eligibil.
ity of any of the above-named applicants
for registration as distributors under the

1940, as modified by Order of the Direc-

granted the application of the Belleville
Fuels, Incorporated, for provisional approval as a marketing agency for one
year from the date of said Order of Jan-

regulations thereunder; and

Payne, Barbourville, Ky,

der of the Director dated January 9.

A written complaint, dated February
5. 1941. having been filed herein by the
Bituminous Coal Producers Board for
District No. 7. pursuant to section 4 II
(j) and 5 (b) of the Bituminous Coal Act
of 1937 (the "Act"), alleging wilful viola-

pany ("Beckley"), of the Bituminous

Clarence
7/21/41.

784 15th Street NW., Washington, D.C.

1937; and

tor dated January 15, 1941, having

Coal Code (the "Code"), and rules and

Montevallo
Ala.,
6/2/41. Coal Mining Co., Aldrich,

GRANTING Ir PROVISIONAL APPROVAL AS

STATEMENT OF CODE MEMBERSHIP

tion by the Beckley Fire Creek Coal Com-

filed: Name, address, and date application

An application for registration as a
distributor has been filed by each of the
following and is under consideration by
the Director:

H. A. GRAY,
Director.

(F. R. Doc. 41-5578; Filed, July 81, 1941;

10:10 m.)

(Docket No. 1541-FD]
IN THE MATTER OF THE WYATT COAL SALES

COMPANY, REGISTERED DISTRIBUTOR
REGISTRATION No. 9906, DEFENDANT
ORDER OF SUSPENSION OF REGISTRATION

The Notice of and Order for Hearing
in the above entitled matter dated February 17, 1941, having been duly made
by the Director pursuant to the provisions of Section 304.14 of the Rules and
Regulations for the Registration of Distributors, promulgated by the Bitumi-

nous Coal Division (the "Division"),

pursuant to section 4 II (h) of the Bituminous Coal Act of 1937 (the "Act"), to
determine whether the Wyatt Coal Sales
Company ("Wyatt"), registered distributor, Registration No. 9906, defendant in
the above entitled matter has violated

the provisions of section 4 II (e) and
(h) of the Act, I 304.12 (b) of the Rules
and Regulations for the Registration of
Distributors, and Sections (b) and (e) of
the agreement executed by said defendant pursuant to said I 304.12 (b), and
said Notice of and Order for Hearing
having been duly served upon the defendant on February 19. 1941; and
The defendant having filed its answer

herein with the Division on March 3.
1941, and an order having been made
and entered herein, dated July 23, 1941.

permitting the withdrawal thereof; and
The defendant having by stipulation
made July 19, 1941, a true copy of which

is annexed hereto and made a part
hereof, admitted the truth of the alle-

gations contained in said Notice of and
Order for Hearing, and the facts set out
in said stipulation and having consented
to the making and entry of this order
of suspension: and
The defendant having by said stipulation waived (a) hearing on the Notice (b)

of and Order for Hearing herein:

oral argument on the filing of briefs be-

FEDERAL REGISTER Friday, August 1, 1941
fore the Director or other presiding offcer: (c) the preparation and submission
of any report, findings of fact or recomby the Director or other pre-

(d) of

or

prepmendations oral siding other argument presiding officer; officer before the and the presentation (e) Director the

aration and submission of tentative
findings of fact or proposed order by the
Director: and

The defendant by said stipulation

(a) having admitted improperly substituting. during the months of October and
November, 1940, as agent for the Beckley

Fire Creek Coal Company ("Beckley")

2717.05 tons of 3/4" slack coal pro-

duced at the Penman Mine, Mine Index
No. 140. located in District No. 7, on an

order of Bethlehem Steel Company,
dated October 30, 1940, for 2400 tons

of % slack coal at $1.75 per net

ton b. said mine, whereas the effective minimum price for said substituted

1/4" x 0 slack was $1.80 per net ton
f. 0. b. said mine: (b) having further
admitted the statements of fact and
conclusions of law contained in the
order made by the Director dated July 18,
1941, in Docket No. 1557-FD, cancelling

and revoking the code membership of
Beckley and assessing the tax payable
by Beckley at Nineteen Hundred and
Seven Dollars and Thirty-seven Cents
($1907.37), as a condition to its reinstate-

ment to membership in the Bituminous
Coal Code ("Code") and (c) having further admitted that the transactions set
forth in (a) and (b) hereof violated the
applicable minimum prices set out in the
Schedule of Effective Minimum Prices for
District No. 7. for All Shipments Except
Truck, $ 304.12 (b). 2, 3, and 5 of the
Rules and Regulations for the Registration of Distributors, paragraphs (b). (c),
and (e) of the Agreement made April 25,

1939 (the Distributor's Agreement")
pursuant to the order of the National
Bituminous Coal Commission ("Commission") dated March 24, 1939, entered in
General Docket No. 12 and adopted as
an order of the Division on July 1, 1939,
the execution of said agreement by the
defendant having been a condition precedent to the granting of the defendant's
application for registration as a distrib-

utor, Rules (a). (b). (c) and (e) and 2

of Section XI, Rule 3 of Section XII and
Rule 6 of Section XIII of the Marketing
Rules and Regulations and Section 4 II
(e) and (h) and paragraph 6 of Section
(1) of the Act.

It is hereby found that:
(1) The defendant is a corporation
organized and existing under and by
virtue of the laws of the State of West
Virginia, with its principal office located
at Charleston, West Virginia, and is engaged under the powers granted to It by

its corporate charter in the business of

selling and distributing coal.
(2) On April 26. 1939, pursuant to the

Order of the Commission dated March
4,1939, entered in General Docket No.
and adopted as an order of the Division on July 1, 1939, the defendant filed

with the Commission its application

dated April 25, 1939, for registration as
a distributor which was accompanied by
its Agreement executed April 25, 1939,

(the "Distributor's Agreement"), said
application was approved by the Division on November 18, 1939, and Certificate No. 9906 was issued to the defendant

authorizing it to act as a registered distributor and the defendant has been ever

since the last-mentioned date and is

now acting as a registered distributor.
(3) Beckley is a corporation duly or.
ganized and existing under and by virtue
of the laws of the State of West Virginia,

whose principal office is located at
Charleston, West Virginia, and is en-

gaged under the powers granted to it by
its corporate charter, in the business of
mining and producing bituminous coal.
(4) On June 19, 1937, Beckley filed
with the Commission its acceptance of
the Code dated June 17, 1937; said acceptance was approved by the Commission on June 28, 1937, to take effect as
of June 19, 1937, and was adopted as of
July 1, 1939, by the Division, and Beckley
since said last-mentioned date, has been
a code member operating the Penman

Mine, Mine Index No. 140, located in
District No. 7 in Raleigh County, West

Virginia.

(5) The defendant owns all the outstanding corporate shares of stock of
Beckley and controls its corporate acts
and doings. The defendant acted as the
duly authorized agent of Beckley in the
transaction referred to in (6) hereof.
(6) The defendant sold and substituted during the months of October and
November, 1940, as agent for Beckley
2,717.05 ton of 3/4" x slack coal produced at the Penman Mine, Mine Index
No. 140 located in District No. 7, on the
order of Bethlehem Steel Company dated
October 30, 1940, for 2,400 tons of % x 0
slack coal at $1.75 per net ton f. o. b. said

mine, whereas the effective minimum

price for said substituted 3/4' slack
coal was $1.80 per net ton f. b. said

3851

by failing to file currently as rendered,
cover

tons (6 456.9

invoices tons (6 cars), (6 to 446.59 shipments cars) of 447.75 and tons

cars), respectively made on November 11, and 14, 1940, respectively,
of said substituted 3/4' x 0 slack coal at

$1.75 per net ton b. said mine, such
invoices not having been filed until

December 28, 1940.

Now, therefore, based upon the above
findings; upon the defendant's agreement that during said periods of suspension It will not act as registered distributor and that It will not accept or receive
as registered distributor, either directly
or indirectly. any discounts on coal purchased by It from code members during
the period of suspension herein which
would reduce the price thereof below the

effective minimum price therefor and
that during said period It will observe

and faithfully abide by all the provisions

of the Act, the Marketing Rules and

Regulations, the Rules and Regulations
for the Registration of Distributors, the
Distributor's Agreement, and all applicable orders of the Division, and Reckley
having paid said tax of Nineteen Hundred

and Seven Dollars and Thirty-seven
Cents ($1907.37) to the Bureau of Internal Revenue pursuant to an order of
the Director dated July 18, 1941 in Docket
No. 1557-FD and applied to the Division
for reinstatement of membership in the
Code.

It is ordered, That the registration of
the defendant in the above entitled mat-

ter, Wyatt Coal Sales Company, as a
distributor is hereby suspended for a
period of thirty (30) days from the date
of service hereof upon the defendant
herein and that the defendant, its offcers, representatives, agents, servants,
employees and attorneys and all affillates and subsidiaries of the defendant
shall be and are hereby prohibited from
receiving or accepting any discounts from
the effective minimum prices, either directly or indirectly, on coal purchased by
them or any of them from code members

mine.

during said thirty (30) day period of

(7) That 1/4" x 0 slack coal shipped to
Bethlehem Steel Company on the order

making and entry of this order of sus-

hereof aggregating 2,717.05 tons were sold

its officers, representatives. agents, serv-

for % x 0 slack referred to in (6)
and shipped in violation of the appli-

cable minimum prices as set forth in the
Schedule of Effective Minimum Prices for
District No. 7 For All Shipments Except

Truck, 304.12 (b). (2), (3) and (5) of
the Rules and Regulations for the Reglatration of Distributors, paragraphs (b),

(c) and (e) of the Distributor's Agreement, Rules 1 (a), (b). (c) and (e) and
2 of Section XI, Rule 3 of Section XII
and Rule 6 of Section XIII of the Marketing Rules and Regulations and section
(e) and (h) and paragraph 6 of section 4 II (1) of the Act.

(8) The defendant in shipping the
1/4' slack coal to the Bethlehem Steel
Company referred to in (6) hereof, violated the Commission's Order No. 156
dated December 18, 1937, and adopted as

an order of the Division on July 1, 1939,

suspension: Provided, however, That the
pension will not prevent the defendants,

ants, employees and attorneys and all
affiliates and subsidiaries of defendant
from accepting sales commissions on coal

sold by them or any of them as sales
agent under bona fide sales contracts

filed with the Division on or before January 1, 1941: And Provided further, That
if the defendant shall not have complied
with the provisions of Section 304.15 of
the Rules and Regulations for the Regis-

tration of Distributors within the said
thirty (30) day period, said suspension

shall continue in full force and effect
until five (5) days after the affidavit requested by said Section 304.15 shall have

been filed with the Division: and
It is further ordered, That the defendant, during such said period of suspension shall continue fully to observe, abide
by and remain in all respects subject to

FEDERAL REGISTER, Friday, August 1, 1941

3852

all pertinent and applicable provisions of

the Act. Marketing Rules and Regulations, Rules and Regulations for the
Registration of Distributors, the Distributor's Agreement and all applicable
orders of the Division: and
It is further ordered, That in the event
the defendant shall hereafter violate any
of its agreements set forth in said stipulation dated July 19, 1941, a true copy
of which is annexed hereto and made a
part hereof, this matter may be reopened

and such action taken and orders entered herein as to the Director may seem
just and proper under the circumstances,
and jurisdiction of this matter is hereby
expressly reserved for such purposes.
Dated July 30, 1941
H. GRAY,
(SEAL)

the northeast bank of the Kuskokyim River
and in the south edge of the town of Old

McGrath bears

N. 45'50" W. 825 feet;
N. 47*08 E. 354 feet;
N. 48'50' W. 6458 feet. in approximate

latitude 62'57'40" N. longitude 155
87 W.

Thence by metes and bounds.

8. 67'04 W. 1050.0 feet;

8. 79'00" W., 1200.0 feet;
N. 76'24' W., 1100.0 feet;
N. 47'22" W., 1300.0 feet;
N. 32'87" W., 2185.5 feet;

N. 48'56 W., 400.0 feet more or less, to

a point on the east boundary line of
U. 8. Survey No. 1962.
HAROLD L. ICKES,

Secretary of the Interior.
JULY 16, 1941.

(P. R Doc. 41-5591: Filed, July 81, 1941;
10:84 a. m.)

Director.

(P. R. Doc. 41-5579: Filed, July 31, 1941;

FEDERAL COMMUNICATIONS COMMISSION.
[Docket No. 6159)
AIR NAVIGATION SITE WITHDRAWAL No. 165.
ALASKA

It is ordered, under and pursuant to
the provisions of section 4 of the act of
May 24, 1928, 45 Stat. 729: 49 U.S.C. 214,

that the public lands lying within the
following described boundaries in the
vicinity of McGrath, Alaska, be, and they
are hereby, withdrawn from all forms of
appropriation under the public-land laws,

subject to valid existing rights, for the
use of the Department of Commerce in

the maintenance of air navigation
facilities:
TRACT No. 1

Beginning at a point on the south boundary
of U. 8. Survey No. 1962. from which corner
No. 3 of such survey bears west 178.8 feet in

approximate latitude 62'57'80" N. longitude
155'37" W. Thence by metes and bounds,
East 1320.0 feet;

South 2990.4 feet to a stake on the left

bank of Kuskokwim River:

Thence with meanders of the left bank.
N. 73'40" W., 622.7 feet;
N. 75*00" W., 500.0 feet:

N 72'00" W. 251.7 feet to a stake

thence

North 2608.1 feet to the place of begin-

ning containing 84.8 acres

TRACT No. 2

Beginning at a point on the west boundary
of U. 8. Survey No 1962. from which corner
No. 3 of such survey bears south 2253.8 feet.
Thence by metes and bounds

8.81'14 W. 1873.8 feet to a stake on the
left bank of Kuskokwim River;
Thence with meanders of left bank,
N. 20'14' E. 171.5 feet;
N 43'14" E. 300.0 feet:
N 47'14" E. 295.6 feet to a stake: thence
N. 81'14' E. 1386.3 feet to a stake on the
west boundary of U. 8. Survey No. 1962,
thence
South, 505.9 feet along the west boundary

of
such survey to the place of beginning
containing 19.4 acres
TRACT No.

A 100-foot right-of-way. the center line as

follows:

Beginning at a point on the west boundary

line of the tract withdrawn October 1, 1940,

under Air Navigation Site Withdrawal No.
145. from which U. 8. L M. 1961, located on

1,750 to 2,050 kilocycles
3,500 to 3,800 kilocycles
8,900 to 4,000 kilocycles
7,000 to 7,300 kilocycles
14,000 to 14,400 kilocycles
28,000 to 30,000 kilocycles
56,000 to 60,000 kilocycles

112,000 to 116,000 kilocycles
224,000 to 280,000 kilocycles
400,000 to 401,000 kilocycles

Provided, however, That amateur 11.
censees located in the states of Maine,
New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut, New
York, New Jersey. Pennsylvania, Dela.
ware, Maryland, District of Columbia,
Ohio, Michigan. Indiana, Illinois, Wisconsin, Minnesota, Iowa, North Dakota,
South Dakota, Wyoming, Montana,
Idaho, Oregon. and Washington, may use

10:10 a. m.)

General Land Office.

cycle band and 50 frequencies in the
3900-4000
band upon further
order of the kilocycle
Commission:

ORDER IN THE MATTER OF WITHDRAWAL OF
FREQUENCIES FROM AMATEUR SERVICE

At a meeting of the Federal Communications Commission held in its offices in

Washington, D. C., on the 29th day of
July, 1941:

The Commission having under consid-

eration its Rules Governing Amateur
Radio Stations and Operators with particular reference to the provisions governing the use of frequencies; and
It appearing that the needs of National
Defense require the temporary re-assignment, on September 1, 1941, of one hundred and at later dates of an additional
two hundred kilocycles presently allocated

to amateur stations under II 12.111,
12.115 and 12.116, to the conduct of com-

munications necessary for the training
of military airplane pilots exclusively;
It is ordered, That on August 18, 1941,
a public hearing be held at the offices of

the Commission in Washington, D. C.,
to determine whether the adoption of
the following order will promote public

the frequencies in the band 3800-3900
kilocycles for Type A-1 emission during
the period between two hours after local
sunrise and two hours before local sunset subject to the condition that no interference is caused to government opera-

tion on these frequencies. The privilege
conferred by this proviso with respect to
any amateur or to the amateurs within
any area may be terminated at any time
without advance notice or hearing should
interference develop.

Temporary Rule 12.115 Additional
bands for types of emission using amplt-

tude modulation. The following bands
of frequencies are allocated for use by
amateur stations using additional types
of emission as shown:
1,750 to 1,900 kilocycles
1,900 to 2,050 kilocycles

A-3

7,250 tc 7,300 kilocycles

A-8
A-3

8,900 4,000 kilocycles

A-4

A-3
14,150 to 14,250 kilocycles
A-3
28,100 to 80,000 kilocycles
56,000 to 60,000 kilocycles
112,000 to 116,000 kilocycles -2A-SA-4 A-5

00 to 280,000 kilocycles A-2 A-3 A-4 A-8

400,000to401,000 kilocycles A-3 A-3 A-4 A-5

This order shall take effect September
1, 1941.

It is further ordered, That any existing

holder of an amateur radio station II-

convenience or interest or will serve public necessity or enable a fuller compliance
with the provisions of the Communications Act of 1934, as amended;
It is ordered, That " 12.111, 12.115 and
12.116 of Part 12 of the Rules and Regulations of the Commission, insofar as they

cense desiring to object to the foregoing
proposed order shall, not later than August 14, 1941, file an appearance with the

United States, be, and they are hereby,

[F. R. Doc. 41-5582: Filed, July 31. 1941;

Commission setting forth in detail the
grounds of such objection.
By the Commission.
(SEAL]

T. J. SLOWIE.
Secretary.

pertain to the continental limits of the

suspended until further order of the

10:11 m.)

commission;

It is further ordered, That the following Temporary Rules Governing Ama-

teur Radio Stations be effective during
the period of the suspension of the fore-

going sections:

Temporary Rule 12.111 Frequenoles
for exclusive use of amateur stations. The
following bands of frequencies are allocated exclusively for use by amateur stations subject to change with respect to
150 frequencies in the 3500-3800 kilo-

[Docket No. 6149]
NOTICE RELATIVE TO AMERICAN REPUBLI-

CAN, INC. (WBRY)

Application dated February 20, 1941.
for modification of C.P.; class of service,
station,

specified:
location, ating broadcast; assignment Waterbury, class of Connecticut; Frequency. broadcast; oper- and

560 kc.: power, 1 kw. (DA night
day) hours of operation, unlimited.

FEDERAL REGISTER, Friday, August 1, 1941
You are hereby notified that the Comhas examined the
and

mission scribed application has the designated above following de-

the matter for hearing for

reasons:

To determine whether completion of
construction heretofore authorized (B1P-2756) was prevented by causes not under control of the applicant-permittee.
2 To determine whether the granting

of the instant application would tend
toward a fair, efficient and equitable dis-

tribution of radio service as contemplated by section 307 (b) of the Communications Act of 1934. as amended.

3. To determine whether the granting
of this application would be consistent
with the standards of good engineering
practice, particularly in view of the expected nighttime interference limitation
to the service of Station WBRY as pro-

The applicant is hereby given the op-

portunity to obtain a hearing on such
issues by filing a written appearance in

accordance with the provisions of

1.382(b) of the Commission's Rules of
Practice and Procedure. Persons other
than the applicant who desire to be heard

must file a petition to intervene in accordance with the provisions of - 1.102. of
the Commission's Rules of Practice and
Procedure.

The applicant's address is as follows:
American Republican, Inc., Radio Sta-

tion WERY, 136 Grand St., Waterbury,
Connecticut.

4. To determine whether the proposed
directional antenna array would afford
adequate protection to the services of
Stations WFIL and WGAN, particularly
in view of the distances between said
stations and Station WBRY.
5. To determine the extent of any in-

terference which would result from

miltaneous operation of Station

WBRY as proposed, and Stations
WMCA, WFIL and WGAN.
6. To determine the areas and popula-

Dated at Washington, D. C., July 29,
1941.

By the Commission
T.J. SLOWIE,
Secretary.

(SEAL]

10:11 a. m.]

[Docket No. 6084
NOTICE RELATIVE TO BOONE BIBLICAL
COLLEGE (KFGQ)

Application dated May 21, 1941, for
renewal of license; class of service, broadcast; class of station. broadcast: location,
Boone, Iowa: operating assignment: fre-

and WFIL, should Station WBRY operate as proposed, and what other broadcast service is available to these areas

quency, 1,400 kc.: power, 100 W. day;
hours of operation, specified hours.
You are hereby notified that the Commission has examined the above described application and has designated
the matter for hearing for the following

and populations.

reason:

tions which may be expected to lose in-

terference-free primary service, particularly from Stations WMCA. WGAN

7. To determine the areas and populations now receiving interference-free
primary service from Station WBRY
which may be expected to lose such

service should this application be

granted, and what other broadcast service is available to these areas and popuNations.

8. To determine areas and populations

which may be expected to gain interference-free primary service from the
operation of Station WBRY, as pro-

posed and what other broadcast service
available to these areas and populations.

which from

9. To determine the extent of inas proposed, and WFIL as

terference simultaneous WBRY. operation would result of any Station

application No. as

areas andpopulations proposed as
wellthe
in B2-P-2894,

affected thereby and what other broadcast service is available to these areas
and populations.

10. To determine whether in view of
the facts adduced under the foregoing

issues that public convenience

will be the

and necessity interest, served by
pranting of this application.

The application involved herein will
not be granted by the Commission unJess the issues listed above are determined in favor of the applicant on the
basis by of a record duly and properly made

means of a formal hearing.

1. To determine whether public interest, convenience or necessity would be
better served through the unlimited time

operation of Station KVFD on the fre-

quency 1,400 kc. than through the continued operation of Station KFGQ.

The application involved herein will
not be granted by the Commission unless

the issue listed above is determined in
favor of the applicant on the basis of a
record duly and properly made by means
of a formal hearing.
The applicant is hereby given the opportunity to obtain a hearing on such
issue by filing a written appearance in
accordance with the provisions of 1.382
(b) of the Commission's Rules of Practice and Procedure. Persons other than
the applicant who desire to be heard
must file a petition to intervene in accordance with the provisions of 1.102
of the Commission's Rules of Practice and
Procedure.

The applicant's address is as follows:
Boone Biblical College, Radio Station
KFGQ, 924 West Second St., Boone, Iowa.

Dated at Washington, D. C., July 28,
1941.

By the Commission
(SEAL]

(Docket 61391
NOTICE RELATIVE TO SEABOARD RADIO
BROADCASTING CORPORATION (WIBG)

dated March for
class

modification Application of license; 18, of 1941, service,

broadcast: class of station, broadcast;
location, Glenside, Pennsylvania; operating assignment specified: Frequency. 990
kc.: power, 1 kw. day: hours of operation,

limited to Knoxville, Tenn.
You are hereby notified that the Com-

mission has examined the above described application and has designated
the matter for hearing for the following

reasons:

(F. R. Doc. 41-5583: Filed, July 31, 1941;

posed.

3853

T. J. SLOWIE,
Secretary

(F. R. Doc. 41-5584: Filed, July 31, 1941;
10:11 a. m.)

1. To determine whether the granting
of this application would be consistent
with the provisions of the North American
Regional Broadcasting Agreement.

2. To determine whether in view of the
facts adduced under the foregoing issue
and the issues relating to the application
for renewal of license of Station WIBG,
Docket No. 6062, public interest convenience and necessity will be served by
the granting of the instant application.
The application involved herein will
not be granted by the Commission unless
the issues listed above are determined in
favor of the applicant on the basis of a
record duly and properly made by means
of a formal hearing.
The applicant is hereby given the op-

portunity to obtain a hearing on such
issues by filing a written appearance in
accordance with the provisions of 1.382
(b) of the Commission's Rules of Practice and Procedure, Persons other than

the applicant who desire to be heard
must file a petition to intervene in accordance with the provisions of $1.102
of the Commission's Rules of Practice
and Procedure

The applicant's address is as follows:
Seaboard Radio Broadcasting Corp.,
Radio Station WIBG, Easton Road and
Mt. Carmel Avenue, Glenside, Pennsylvania.

Dated at Washington, D. C., July 28,
1941.

By the Commission.
(SEAL)

T. J. SLOWIE.
Secretary.

(F. R. Doc. 41-5585; Filed, July 31, 1941;
10:11 a. m.)

[Docket No. 6131)

NOTICE RELATIVE TO HENNESSY BROADCASTING Co. (New)

Application dated April 2. 1941, for
construction permit: class of service,
broadcast: class of station. broadcast;
location, Butte, Montana: operating assignment specified: Frequency, 1,490 kc.:

power, 250 w.: hours of operation,
unlimited.

You are hereby notified that the Com-

mission has examined the above described application and has designated
the matter for hearing for the following
reasons:

1. To determine applicant's legal.
technical, and other qualifications to

FEDERAL REGISTER, Friday, August 1, 1941

3854

construct and operate the proposed

the matter for hearing for the following

station.

reasons:

2. To determine the type and character
of the service, both program and technical, which applicant may be expected to

1. To determine applicant's legal,
technical, and other qualifications to
construct and operate the proposed

render if granted a permit to construct

the proposed station.
3. To determine the identity residence.
experience and familiarity with the needs

of the population to which it is proposed to render a local broadcast service.

of the persons having ultimate control

of the applicant.
4. To determine the practices and policies which the applicant may be expected

to follow in the operation of the proposed station. particularly in view of its
connections with the Hennessey Company. owner of a retail department store
in Butte, Montana, and the Mercantile
Stores Company, Inc., engaged in the
business of operating department stores
and owning real estate.
5. To determine whether public interest. convenience or necessity would be
served by a grant of this application and
the application of Barclay Craighead
(File No. B5-P-3103. Docket No. 6132),
or either of them.

The application involved herein will
not be granted by the Commission unless
the issues listed above are determined in

favor of the applicant on the basis of a
record duly and properly made by means
of a formal hearing.
The applicant is hereby given the op-

portunity to obtain a hearing on such
issues by filing a written appearance in
accordance with the provisions of I 1.382
(b) of the Commission's Rules of Practice
and Procedure Persons other than the
applicant who desire to be heard must
file a petition to intervene in accordance
with the provisions of I 1.102 of the Com-

the reasons? matter for hearing for the following

The applicant's address is as follows:

the past operated in accordance

station.

the Commission's Rules and Regulations with

2. To determine the type and character of the service, both program and
technical, which applicant may be expected to render if granted a permit to

Governing
Service, particularly
$9.9, 9.62 Aviation
and 9.113.

2. To determine the ultra high fre.
quency assignment most suitable for this
station.

construct the proposed station.
3. To determine whether public interest, convenience and necessity would be
served by a grant of this application and
the application of the Hennessey Broadcasting Company (File No. B5-P-3158,
Docket No. 6131), or either of them.

3. To determine whether the contin.
ued operation of this station would serve
public interest, convenience or necessity.

The applications involved herein will
not be granted by the Commission unless
the issues listed above are determined

favor of the applicant on the basis of
a record duly and properly made by
means of a formal hearing
The applicant is hereby given the op.
portunity to obtain a hearing on such
issues by filing a written appearance in

The application involved herein will
not be granted by the Commission unless
the issues listed above are determined in
favor of the applicant on the basis of a
record duly and properly made by means
of a formal hearing.
The applicant is hereby given the op-

accordance with the provisions of
1.382 (b) of the Commission's Rules

portunity to obtain a hearing on such
issues by filing a written appearance in

of Practice and Procedure. Persons other

than the applicant who desire to be
heard must file a petition to intervene
in accordance with the provisions of
1.102 of the Commission's Rules of
Practice and Procedure.
The applicant's address is as follows

accordance with the provisions of

1.382 (b) of the Commission's Rules of
Practice and Procedure Persons other
than the applicant who desire to be heard
must file a petition to intervene in accordance with the provisions of 1.102
of the Commission's Rules of Practice

George W. McCauley, d/b as Aeronau-

tical Radio Company, Roosevelt Field
Mineola, New York.

and Procedure.

The applicant's address is as follows:

Dated at Washington, D. C., July 29.

Barclay Craighead, Wheeler Block, 122
W. Broadway, Butte, Montana.

1941.

By the Commission

Dated at Washington D. C., July 28,

(SEAL]

Secretary.

By the Commission.
(SEAL)

(F. R. Doc. 41-5588; Filed, July 31, 1941;

SLOWIE,

10:12 a. m.]

Secretary.

(F. R. Doc. 41-5587: Filed. July 31, 1941:
10:12 a. m.)

FEDERAL POWER COMMISSION.

Hennessy Broadcasting Company, %
Hennessy Company, Hennessy Building.
Butte, Montana

Dated at Washington, D. C., July 28,
1941.

By the Commission
[SEAL]

SLOWIE

Secretary.

IF R Doc. 41-5586 Filed. July 31, 1941:
10:12 a. m.)

Docket No. 6132
NOTICE RELATIVE TO BARCLAY CRAIGHEAD
(New)

Application dated February 4. 1941, for

construction permit; class of service,
broadcast: class of station, broadcast;
location, Butte, Montana; operating assignment specified: Frequency. 1,500,
(1,490 kc. NARBA) power, 250 hours

of operation, unlimited
You are hereby notified that the Com-

mission has examined the above described application and has designated

SLOWIE

1941.

mission's Rules of Practice and Pro-

cedure.

1. To determine whether or not
port control radio station WQEB has air.

[Docket No. IT-5721
IN THE MATTER OF MONTANA-DAKOTA

[Docket Nos. 6151. 6152

UTILITIES Co.

NOTICE RELATIVE TO GEORGE W. McCAULEY, d/b AS AERONAUTICAL RADIO COMPANY (WQEB)

Application dated March 28, 1941, for
renewal of license: class of service, aviation; class of station, airport; location,
Roosevelt Field, Mineola, New York:
operating assignment: Frequency, 278
kc.: power, 15 watts; emission, A-3: Pts.
of Comm. ground to aircraft stations.
Application dated April 9, 1941, for

construction permit; class of service,
aviation; class of station, airport: location. Roosevelt Field. Mineola, New
York: operating assignment specified:

Frequency. add: 130,400 kc.; (Alternates

129,200 and 129,800 kc.): power, 100
watts; emission, A-3; Pts. of Comm.,

ground to aircraft stations.
You are hereby notified that the Commission has examined the above described applications and has designated

NOTICE OF APPLICATION

JULY 1941.

Notice is hereby given that on July
29. 1941, an application was filed with
the Federal Power Commission, pursu204 of the

Montana-Dakota
ant Act, to by Section under Federal Utilities the Power Co.,
a

Delaware

utilities

of on corporation the electric State and of organized gas and business carrying laws in

and Wyoming.
business office at

South the States Dakota of Montana, North Minneapolis with Dakota its

an order
$350,000.00 of
the Minnesota, principal issuance seeking of three authorizing unsecured equal
Purchase
Money Notes in
installments on or before April 1. 1943.

January 1. 1944, and October 1. 1944. the

and bearing interest at

of cent per
in the

more rate respectively, fully 2 1/2 appears per annum: application all on as

file with the Commission.

FEDERAL REGISTER, Friday, August 1, 1941
desiring to be heard or to
in reference

make Any any person protest the to 15th said

application should, on or before
1941, file

Commission a
day eral of Power August. with with the petition Commis- the Fed- or

protest in accordance

sion's Rules of Practice and Regula-

tions.
(SEAL)

LEON M. FUQUAY,

Secretary.

(F. R. Doc. 41-5590:
10:34 a.Filed.
m.) July 31, 1941;

SECURITIES AND EXCHANGE COMMISSION.

[File Nos 7-492 to 7-511, inclusive]
IN THE MATTER OF APPLICATIONS BY THE
CHICAGO STOCK EXCHANGE To EXTEND

UNLISTED TRADING PRIVILEGES TO
TWENTY (20) STOCKS
ORDER DISPOSING OF APPLICATIONS FOR PER-

Martin Company $1 Par Value Common
Stock: Nash-Kelvinator Corporation $5

Par Value Capital Stock: New York

Central Railroad Company Capital Stock,
No Par Value: Paramount Pictures, Inc.
$1 Par Value Common Stock: Pullman,

Inc. Capital Stock, No Par Value; Pure
Oil Company Common Stock, No Par
Value: Radio Corporation of America
Common Stock, No Par Value: Republic
Steel Corporation Common Stock, No
Par Value; Standard Brands, Inc. Common Stock, No Par Value: Standard Oil
Company (New Jersey) $25 Par Value
Capital Stock: Studebaker Corporation
$1 Par Value Common Stock: United
States Rubber Company $10 Par Value
Common Stock: and Yellow Truck &
Coach Manufacturing Company $1 Par
Value Class B Stock.
By the Commission

FRANCIS P. BRASSOR,

(SEAL)

Secretary.

(F. R. Doc. 41-5598 Filed, July 31, 1941;
11:45 a. m.)

MISSION TO EXTEND UNLISTED TRADING

on the 30th day of July, A. D. 1941.

The Chicago Stock Exchange having
made application to the Commission,
pursuant to section 12 (f) of the Securi-

ties Exchange Act of 1934 and Rule
X-12F-1, for permission to extend un-

listed trading privileges to twenty
securities: and

After appropriate notice a hearing
having been held in this matter in Chicago, Illinois; and

The Commission having this day made
and filed its findings and opinion herein:
It is ordered, Pursuant to section 12 (f)
of the Securities Exchange Act of 1934,
that the instant applications of such ex-

change be and the same are hereby
granted by the Commission permitting
the applicant exchange to extend unlisted trading privileges to the American
Radiator & Standard Sanitary Corporation Common Stock, No Par Value: Anaconda Copper Mining Company $50 Par
Value Common Stock: Atchison, Topeka
& Santa Fe Railway Company $100 Par
Value Common Stock; Bethlehem Steel

Corporation Common Stock, No Par
Value: Curtiss-Wright Corporation $1

[File No. 70-363
IN THE MATTER OF CONSOLIDATED ELECTRIC
AND GAS COMPANY
NOTICE REGARDING FILING

At a regular session of the Securities
and Exchange Commission, held at its
office in the City of Washington D. C.,
on the 31st day of July, A. D. 1941.
Notice is hereby given that a declaration or application (or both). has been
filed with this Commission pursuant to
the Public Utility Holding Company Act
of 1935 by the above-named party or
parties; and

therein proposed. which are summarized

below:

Consolidated Electric and Gas Company. a registered holding company,

proposes to sell to Southeastern Indiana
Power Co., an Indiana corporation the
following described securities of its subsidiary. Hoosier Public Utility Company:
(a) 17,270 shares of the Common Capital Stock of no par value:
(b) $318,750 principal amount of 6%
10-Year Note, dated July 1. 1935 and due

July 1945; and
(c) $150,000 principal amount of the

First Mortgage 5% Sinking Fund Bonds,
due December 1, 1954. with all unmatured coupons appertaining thereto attached.

The purchase price to be paid for the
foregoing securities Is the sum of the

(a) One Million One Hundred Thousand Dollars ($1,100,000)

(b) Interest on the Note and Bonds
described above, accrued to date of clos-

ing and unpaid: and
(c) An amount equal to the net earnings of Hoosier Public Utility Company

applicable to the Common Stock of
Hoosier Public Utility Company described above, from January 1. 1941 to
the date of closing. less an amount equal
to the total amount of all payments made

by Hoosier Public Utility Company to
Consolidated Electric and Gas Company

during the period from January 1. 1941
to the date of closing. representing divi-

dends paid on the Common Stock of
Hoosier Public Utility Company de-

of his interest, or may request that he
be notified if the Commission should
order a hearing thereon. At any time
thereafter such declaration or applica-

Trustee under the Collateral Trust Indenture of Central Gas and Electric
Company securing its Collateral Trust

tion, as filed or as amended, may become
effective or may be granted, as provided

in Rule U-23 of the Rules and Regulations promulgated pursuant to said Act
or the Commission may exempt such
transaction as provided in Rules U-20

(a) and U-100 thereof. Any such re-

tric Company Common Stock, No Par
Value: Interlake Iron Corporation Com-

quest should be addressed: Secretary,
Securities and Exchange Commission,

No.149-5

for a statement of the transactions

Notice is further given that any interested person may, not later than August
15, 1941, at 4:45 p. m., E. S. T., request
the Commission in writing that a hearing be held on such matter, stating the
reasons for such request and the nature

Par Value Common Stock: General Elec-

mon Stock, No Par Value; Glenn L.

All interested persons are referred to
said declaration or application. which is
on file in the office of said Commission,

following:

PRIVILEGES

At a regular session of the Securities
and Exchange Commission, held at its
office in the City of Washington, D. C.,

3855

Washington, D.C.

scribed above.

The foregoing securities are now
pledged with the City National Bank and
Trust Company of Chicago, Successor

Bonds, due 1946, (assumed by Consolidated Electric and Gas Company). and
the proceeds representing said purchase
price will be applied to acquire and retire such Collateral Trust Bonds.
By the Commission.
(SEAL)

FRANCIS P. BRASSOR

Secretary.

(F. R Doc. 41-5599; Filed July 31. 1941;
11:45 a. m.)

91

AUE 1 1941

Henorable Charles B. Henderson,
Chairman of the Board,

Reconstruction Finance Corporation,
Washington, D. C.
Dear Mr. Henderson:

This will acknowledge the receipt of your letter
of July 28, 1941, requesting that the sum of $12,000,000,
referred to in the President's Allocation No. 31, be made
available to the Reconstruction Finance Corporation.
Since Allocation No. 31 was made against a con-

tract authorisation rather than cash, it was necessary to
request the Bureau of the Budget to make arrangements for

an allocation of cash to carry out the agreement referred

to in your letter. A copy of the Treasury's letter to the
Bureau of the Budget is enclosed for your information and

files.
Very sincerely yours,
(Signed) D. W. BELL

Under Secretary of the Treasury.
Enclosure

EFBimlm 8/1/41

mr. contells

offer has complet

file-

92

JUL 31 1941

My dear Mr. Smiths

Under date of October 4. 1940, the President issued allecation No. 31 in the amount of $12,000,000 to the Reconstruction

Finance Corporation from his contract authorization contained in
the Military Appropriation Act of 1941, approved June 13, 1940,
to cover transportation and storage expenses in connection with
the establishment of a recerve supply of weel.
There is enclosed herewith a letter from the Chairman of

the Reconstruction Finance Corporation, dated July 28, 1941, n
questing that arrangements be made for making the funds avail.
able.

In a telephone conversation today, the Reconstruction
Finance Corporation has indicated that approximately 44,000,000
has already been disbursed by the Defense Supplies Corporation

and that the balance will be disbursed between this date and
December 31, 1941, or thereabouts.

Is would be appreciated, therefore, if arrangements
should be made to have a deah allocation of $12,000,000 made

to the Reconstruction Finance Corporation for the purpose
indicated.

93

In view of the fast that the funds of the Reconstruction
Finance Corporation are not carried in the appropriation accounts

upon the books of the Treasury, is is suggested that the letter

of allocation carry a provision reading substantially as follows:
"The allocation contained herein shall be made avail.
able to the Reconstruction Finance Corporation
through a check to be drewn on the Treasurer of the
United States by the Chief Disbursing Officer,
Division of Disbursement, upon requisition of the
Chairman.'

Very truly yours,
(Signed) D. W BELL

Under Secretary of the Treasury

Henorable Harold D. Smith,

Director of the Durean of the Budget,
Washington, D. C.

Enclosure

EFB:HBW

7/30/41

94

RECONSTRUCTION FINANCE CORPORATION
WASHINGTON
CHARLES B HENDERSON
CHAIRMAN OF THE BOARD

July 28, 1941

Ny dear Mr. Secretary:

Under date of October 4, 1940, the President issued
Allocation No. 31 in the amount of $12,000,000 to the Reconstruction Finance Corporation from his Contract Authorization
contained in the Military Appropriation Act of 1941, approved
June 13, 1940. The purpose of this Allocation, as stated
therein, is to provide for the establishment of adequate reserve supplies of materials determined by the President to be
essential to the national defense.

Under date of October 4, 1940, the President by letter
to the Federal Loan Administrator, copy of which is enclosed
for your information, declared wool to be essential to the
national defense and authorized the Administrator to provide
for the establishment of an adequate reserve of this material.
Under date of December 9, 1940, letters were exchanged
between the American Charge d'Affaires ad interim at London

and British Secretary of State for Foreign Affairs, which

lotters constitute an agreement between the Government of the
Unitra States and the Government of the United Kingdom for

the transcortation and storage in the United States of

250,000,000 pounds of British-owned Australian wool as a
strategic reserve for the United States Government against
possible emergency shortage of wool supplies in this coun-

try. The agreement, a copy of which is enclosed for your information, provides that the Government of the United States,

or an Agency acting in its behalf, shall be responsible for
the trans ortation and storage of the mool in this country and

shall have an option to purchase such wool.

Defence Supplies Corporation, which is a subsidiary of
the Reconstruction Finance Corporation created pursuant to
Section 5d of the Reconstruction Finance Corporation Act, as
enended, has been desimated as the Agency to act on behalf of
the United States Government in transporting and storing the
wool as provided in the agreement. Defense Supplies Corporation

95

-2has made agreements with various steamship lines for the transportation of this material from Australia and has obtained ware-

housing facilities in this country for its storage. Up to the

present time all expenses incident to this transaction have been
paid by Defense Supplies Corporation from its own funds, and it
is essential that such Corporation be reimbursed immediately for
its expenditures in order that it may have funds available for

carrying on its other activities. Likewise, additional funds

must be made available so that future expenses arising in connection with the transportation and storage of such wool may be
paid when and as they become due.

In view of the above facts, you are hereby requested to

take such action as may be necessary to make the funds provided

for in the President's Allocation No. 31 available to Reconstruetion Finance Corporation as soon as possible.
Sincerely yours,

Chairman

The Honors ble

The Secretary of the Treasury
Eashington, D. C.

96
6

THE WHITE HOUSE
WASHINGTON
.

OCT 4 1940

My dear Mr. Administrator:

Reference is made to the allocation of
$12,000,000 from my Emergency Fund which I

have today approved to the Reconstruction
Finance Corporation.

(contract
anthonyation

This is to advise you that I have determined wool to be essential to the national
defense, and you are, therefore, authorised
to provide for the establishment of an adequate
reserve of this material.
Sincerely yours,

Honorable Jesse Jones,

Administrator,

Federal Loan Agency,
Washington, D. C.

97
DEPARTMENT OF STATE

For the Press

December 10, 1940
No. 522

The following notes were exchanged between the

American Charge Affaires ad interim at London and
the British Secretary of State for Foreign Affairs
on December 9, 1940, under which a strategic reserve

of Australian wool is to be established in the United
States.

From the British Secretary of State for Foreign Affairs
to the American Charge d'Affaires ad interim at London
Foreign Office,
S. W. one,
9th December, 1940

No. W11985/79/49
Sir:

I have the honour to inform you that in order to
to establish in the United States a reserve of

enable the Government of the United States of America

Australian wool against a possible cmergency shortage
of wool supplies in the United States, the Government
of the United Kingdom of Great Britain and Northern
Ireland are prepared to enter into an agreement with
the Government of the United States in the following
terms:

(1) The Government of the United Kingdom

shall make available to the United States Governmont (or an agency acting on its behalf)
two hundred and fifty million pounds of
Australian wool as a strategic reserve for the
United States Government against a possible
shortage of wool supplies in the
Statos. The wool shall be
where it shall stored
The Government the
United to emergency in bondod the United warehouses. States transported be of

United Kingdom shall retain title to the wool,

but All or any part of the wool may be purchased
by the United Statos Government (or an agency

acting on its behalf) for uso in the United

States or may be sold to the United States
domostic trade, if and when it has been
doterminod by the United States Government

that an emergency ahortage of weel oxists in
the United States.
(2) The

(2) The Government of the United Kingdom
may withdraw wool from the reserve for shipment to the United Kingdom or other British
territory in the case of emergency shortage

of supplies in such territory, or in the
contingency of an interruption of wool textile
production in the United Kingdom for the manufacture of textiles in the United States to

meet United Kingdom emergency textile requirements, provided that (a) replacements for wool
80 withdrawn are on the way to the United

States and (b) at no time the total of the
reserve in the United States is temporarily

depleted by more than twenty per cont by such

withdrawals.

(3) At any time after the signing of a

general armistice between the United Kingdom
and Germany, the Government of the United

Kingdom shall be at liberty to dispose of the
wool remaining in the reserve, but the United
States Government and the Government of the

United Kingdom shall consult together with a
view to ensuring that the disposal of any
such wool in the United States shall be
effected under conditions which will avoid a
dislocation of normal wool marketing there.

(4) The wool for the reserve shall be

made available by the Government of the United
Kingdom f.o.b. at Australian ports, and the
United States Government (directly or through

an agency acting on its bohalf) shall thereafter accept responsibility for the safe custody
of the wool and shall pay transport, handling,
storago, insurance including war risk, and
other charges in connexion with the establish-

ment and maintenance of the wool reserve. Payments shall be made betwoon the United States
Government and the Government of the United

Kingdom on sale of wool from the resorve to
offset any savings secured by the Government
of the United Kingdom owing to the wool having
been transported to and stored in the United
Statos by the United States Government and any
loss incurred by the Government of the United
Kingdom by reason of depreciation in the value

of the wool stored in the United States as a
result of deterioration of the wool or by reason
of the position in which the wool is stored in
the United States, provided that (a) in the case
of salos in the United States no payment shall
be

be made which would reduce the receipts by the
Government of the United Kingdom for the wool
in question below the amount which would have

99

been received on sale f.o.b. Australia at the
same date, and (b) in the case of sales out-

side the United States any payments as between

the two Governments shall not involve the

Government of the United Kingdom in any net

expenditure of United States dollars in respect
thereof.

(5) It is tentatively agreed that the

250,000,000 pounds of Australian wool which
will be made available by the Government of
the United Kingdom for the reserve shall be
composed of the following: 270,000 bales of
58/60s of types normally imported into the
United States and of good topmaking Bradford

styles; 290,000 bales of 60s and fincr of
types normally imported into the United States
and of good topmaking Bradford styles; 190,000
bales of 60s and finer of good to average
Bradford styles; balance (to make up 250,000,000
pounds) of 60s and finor of average Bradford
styles; two thirds of all the 60s and finer
wools to consist of 64/60s. The counts are as
normally understood in the United States.
Although this tentative agreement on grades and

types is subject to modification following

consultation between the two Governments after
examination of samples of the wool by the United

States authorities, it shall become definitivo
if the examination of samples indicates that the
grades and types of wool included in the above
mentioned general categories are such that they

could be readily used in American mills without interruption of or delays in the production
of the mills. It is understood that the Government of the United Kingdom in estimating the

quantities evailable for the reserve have
provided for the retention of sufficient supplies
in Australia to ensure that the commercial
demnnd can be mot. It is also understood that
both the total quantity ostimated to be available
for the reserve after providing for sales abroad
and shipments to the United Kingdom, and the

distribution by types and descriptions, have
been based upon the results of the 1939-40 clip,
and that should the results of the 1940-41 clip
differ it may be necessary to vary the supply
for the reserve.
(6) Space on established British shipping
lines running between Australia and the United

Statos shall be used for the transport of the
wool so far as available. The woolimill be hade
available in Australia as rapidly as possible,
provided that the sale of wool from Australia on
commercial account or its shipment to the Wool
Control in the United Kingdom or Canada shall

100

-4-

not be prejudiced, and every endeavour shall
be made to complete the allocations in Australia
by the end of March 1941.

2. If the Government of the United States are prepared to accept the foregoing provisions, I have the
honour to propose that the present note and your reply
to that effect be regarded as constituting an agreement
between the two Governments which shall come into force
immediately.

I have the honour to be, with high consideration,
Sir, your obedient servant,
HALIFAX

From the American Charge d'Affaires ad interim at London

to the British Secretary of State for Foreign Affairs
London,

December 9, 1940

No: 2662
My Lord:

I have the honor to acknowledge the receipt of your

note no. W11985/79/49 of December 9, 1940, in which Your

Lordship is good enough to inform mo that in order to
enable the Government of the United States of America to

establish in the United States a reserve of Australian

wool against a possible emergency shortage of wool supplics in the United States the Government of the United
Kingdom of Grent Britain and Northern Ircland is prepared
to enter into nn agreement with the Government of the

United States in the following torms:
[(1) to (6) are identical with those under the same
numbers in the British note.

In reply to numbered paragraph two of Your Lordship's
note, I have the honor to confirm under instructions of
my Government that Your Lordship's statement of our understanding as set forth above is agreed to by my Government
and that the present exchange of notes is to be regarded
as constituting an agreement between the two Governments
which shall come into force immedintely.

I have the honor to be, with the highest considera-

tion, My Lord, your most obedient, humble servant,

HERSCHEL V. JOHNSON

Charge d'Affaires ad interim

I

101

TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION

DATE August 1, 1941

TO

Mr. White
EMB.

FROM G. A. Eddy

gae

Subject: Summary and analysis of "A Deferred Income Plan."

A proposal to help prevent inflation by increasing purchases of
Government bonds out of individual and corporation incomes is being advocated
by a long list of representative economists, including many who have been
sympathetic to this administration.
Essence is to neutralize some income till after emergency

The gist of the plan is simply to divert more of the public's receipts

of cash income into Government bonds, before the funds can compete for the

limited supply of consumers' goods. The money will be returned for the public
to spend after the defense period is ended.
The statement advocates increased taxation in addition to these bond

purchases. It says, however, that taxation alone will not suffice, since there
must be incentives for business and workers to put forth the extra effort needed
for defense, since the low-paid should be allowed to benefit from their enlarged
earnings, and since the whole burden cannot be borne by taxation on middle and
upper incomes.

Details left vague but need for compulsion is indicated

The statement, which is only two pages long, offers the alternative of
making the bond buying compulsory, or of leaving it voluntary. The former would
be legislation requiring purchases in relation to individual incomes, on a
progressive scale. This form of the proposal is fundamentally the same as Mr.
Keynes' Compulsory Savings Plan. It is perhaps hoped that it will be more
acceptable under the name of "Deferred Income," with no mention of Mr. Keynes.
The voluntary arrangement, it is suggested, could.be a master pact between employers and employees, supplemented by cooperation from independent business
men and farmers.
quate.

The statement expresses doubt that voluntary participation will be adeIt believes that compulsion will be necessary.

The statement contradicts itself concerning what income is intended to
be neutralized in buying bonds. At some points it speaks of segregating in the

102

-2.
form of bonds the increases in incomes due to armament expenditures. At
others it speaks of making the bond purchases like a tax, affecting incomes
much lower than the present personal income tax exemptions, and affecting

larger incomes progressively. This would neutralize parts of all existing
incomes, whether or not they were increased from their pre-war level.

In at least three respects the proposed bonds differ from the present
Savings Bonds: (1) It is apparently intended that they should not be redeemable by the owners except in case of emergency. (2) They are to mature after
the emergency rather than after 10 years. (3) No limit is mentioned on the
amount which can be bought each year by individuals or companies.

Nothing is said concerning the rate of interest.
No details are given concerning the amounts which might be required
to be purchased by persons in the different income brackets or concerning
several other important points in any compulsory plan.
Comments:

1. If the voluntary form of the proposal is chosen, it would differ
only in detail from an intensification of the present Savings Bonds campaign.
The bonds would differ in the three respects mentioned two paragraphs above.
There might be more formal arrangements and more pressure for buying bonds.

2. The economists' statement does not contribute much to the critical
question which the Treasury has been facing for a number of months, i.e., the
degree of pressure which ought to be put behind the Savings Bond campaign.
The proposal does not discuss or even mention the factors which have 80 far

caused the adoption of a voluntary basis, such as: (a) the hardship of compulsion on some individuals who require all their income to cover their obligations; (b) the desirability of having persons emerging from the lowest
income groups spend more money on food, housing, clothing, medical care,

education, etc.; (c) the legal difficulties of compulsion, including the

relation of income invested in Savings Bonds to the income tax; (d) the
general desirability of voluntary cooperation over governmental coercion.

Compulsion must be considered at much greater length than in this statement

before it is adopted, rejected, or modified.
3. Although desirable above certain limits, it seems undesirable to
urge all increases in income to be neutralized. The distribution of income is
probably more socially equable now than it was in 1939 or 1940. The recommendation to neutralize all increases of incomes above the pre-defense-period
level would prolong the advantageous relative position of those who were poorly very

well paid then and the disadvantageous position of those who were very allowed
paid or unemployed then. Increases in current consumption should be low income

for those who have increased their income but are still in the very
groups.

30

103

mean
UNIVERSITY DEPPINNSYLVANIA

Ireasury

PHILADEMPHIA

Dekin

WHARTON SCHOOL OF
FINANCE AND COMMERCE

July 22, 1941

The Honorable Franklin D. Roosevelt
Executive Offices
Washington, D. C.
Sir:

I have the honor to submit herewith a memorandum on
a proposed Deferred Income Plan for financing armament expenditures by means of compulsory savings. This document has
been circulated among a select group of American economists and
of the American

has endorsement. the are
F. Fisher,
F. A. Mills, C. Mitchell,
Sprague, and the current President of the American
five O.M.W. A. received former Fetter, presidents enthusiastic Irving Economic Among Wesley Association: signers

Statistical Association, Winfield W. Riefler.

Attached is a complete list of signers of this

memorandum.

Respectfully yours,

Hans P. Neissen

or

104

A DEFERRED INCOME PLAN
If serious inflationary disturbances are to be avoided in this country,
prompt and decisive action is urgently called for. The bases of the present critical situation are as follows. The expansion of armament production results in a
considerable increase in money incomes of large classes of the population, primarily of workers and business men who directly or indirectly benefit from armament or-

ders. Desirable as it would be, the necessities of armament render it impossible
to raise the average standard of living in proportion to the rise in money income.
Indeed, we shall be fortunate if average real income is not actually reduced as

idle resources, human and material, are more and more absorbed into the defense effort, and as some of the resources now devoted to civilian consumption are diverted
to armament purposes.

Unless the proper steps are taken to prevent it, the impact of a sharply
rising money income on a limited or possibly declining volume of goods and services

available for civilian consumption must inevitably bring about an inflationary rise
in prices, which would deprive business men and workers of a very large part of the
benefits from a rising money income, and would lay a heavy burden upon those groups
which are not able to increase their money income. Moreover, such an inflationary
rise in prices would be likely to accentuate the danger of a severe post-armament
depression, creating widespread misery among classes now benefited by the defense
program.

The logical solution for this situation would appear to be the introduc-

tion of a Deferred Income Plan. The purpose of such a plan would be to neutralize,
for the time being, the additional private purchasing power created by armament expenditure, and to make the purchasing power available to the present owners in a
later period when it might reasonably be expected to result in additional consumption.

The essential features of such a plan would be:
(a) The withdrawal of most of the current increase in incomes from the
receivers of the income.
(b) The transfer of the funds so withdrawn to the government, presumably
by their conversion into government bonds.

(c) Prohibition of the use of these bonds as collateral for bank loans
except in case of personal emergency.

(d) The transfer of the funds back to private hands and their release as
purchasing power after the present armament boom.

Two methods for putting the plan into effect might be used; it could and be
done either by legislation alone or by a voluntary agreement between workers the
business men, supplemented by legislative measures. In the first case, should plan

would require loans from all recipients of net income above a minimum that this be
set at a much lower level than is provided in the present Federal income tax; taxes
loan would be graduated according to net income, and would be additional to
now or hereafter imposed.

105
2-

AS an alternative to this compulsory method, a voluntary plan, embodying
the same essential features, might be employed. Under the voluntary arrangement,

a master agreement between workers and business men is suggested, which would

tain only to the current increase in purchasing power, and thus would not encroach perupon the standard of living of those not benefiting from armament expenditures.
The workers would contribute to the success of the plan by accepting payment in

government bonds for a large part of their additional income from longer working
hours, overtime pay, and riseu in the basic wage schedule. Business men would
make their contribution by investing their increased profits in government bonds.
Likewise, farmers and other income receivers might be induced, perhaps by supplementary legislation, to buy government bonds out of any increase in net income accruing to them.

While a voluntary plan such as this would be preferable if it could be
made effective, the difficulty of securing adequate participation would be very
great, and would probably make it necessary to rely on the compulsory solution.

A deferred income plan such as is proposed here is the most satisfactory

method of averting the danger of inflation. It does not imply that additional
taxation can be avoided. But it is certain that taxation alone could not be relied upon to prevent inflation.

To impose a 100% tax on additional profits would weaken
the business man's incentive to effect economies in armament
production.

To tax away completely the increment in money incomes of
the lower income classes without reimbursing them in the future
would be a grave injustice to a class which, as a whole, has not

yet attained an adequate standard of living, and might also undermine incentives to effective work on the defense program.
To leave the lower income classes free from any new levy
while attempting to escape inflation would impose an unreason=
able tax burden on the middle income classes, since it would be
necessary to offset the increase in incomes in the lower brackets
by a nearly equivalent reduction of incomes in the middle brack-

ets. Such a reduction of the standard of living of the middle
income classes is both impracticable and politically dangerous.

It would be impracticable because of the difficulty of effecting
so sudden and so substantial a reduction in the standard of living of the bulk of middle income receivers. Consequently, they
would be likely to draw on reserves to maintain their standard of
living, thus defeating for the time being the aim of limiting consumer purchasing power. It would be politically dangerous because an attempt to lower drastically the standard of living of
one class, at a time when the standard of certain other classes is
rising sharply, could not fail to foster class antagonism and disrupt national unity.
Without in any way prejudicing the case for additional taxation in other

forms, the undersigned economists recommend that the Congress give immediate con-

sideration to a plan of deferred income along lines indicated above, with a view
to its early adoption.

106

3-

E. E. Agger
Eugen Altschul
James Washington Bell

Richard M. Bissell,Jr.
Raymond T. Bowman

Elmer C. Bratt
Vm. Adams Brown, Jr.

Alfred G. Buehler
Arthur F. Burns
Raymond T. Bye

William J. Carson
Lester V. Chandler
Denzel C. Cline
Arthur G. Coons
M. M. Daugherty

Ritgers University
University of Minnesota
Northwestern University
Yale University
University of Pennsylvania
Lehigh University
Brown University

University of Pennsylvania
Rutgers University
University of Pennsylvania
University of Pennsylvania
Amheret College

Michigan State College
Claremont College

Joel Dean

University of Delaware
University of Chicago

J. Frederic Dewhurst

Twentieth Century Fund

Walter Egle

Howard S. Ellis
R. T. Ellsworth
Solomon Fabricant
Elmer D. Fagan

Ohio State University

University of California
University of Cincinnati

National Bureau of Economic Research

Stanford University

Arthur Feiler

New School of Social Research

Frank A. Fetter
Clyde Olin Fisher
Irving Fisher

Princeton University

H. LaRue Frain

Herbert F. Fraser
Paul F. Gemmill
Frank D. Graham

Gottfried Hsberler
Ernest H. Hahne
C. 0. Hardy

S. E. Harris

Wesleyan University
Yale University
University of Pennsylvania
Swarthmore College

University of Pennsylvania
Princeton University
Harvard University
Northwestern University

Brookings Institution

Edward Heimann

Harvard University
New School for Social Research

William V. Hewett

University of Cincinnati

Calvin B. Hoover
M. H. Hunter

Neil H. Jacoby
Frank H. Knight
Simon S. Kuznets

V. V. Leontief
Richard A. Lester
Harry J. Loman
William N. Loucks
Fritz Machlup
F. K. Mann
James W. Martin
Edward S. Mason

Max Millikan

Frederick C. Mills

Duke University

University of Illinois

University of Chicago
University of Chicago
University of Pennsylvania
Harvard University
Duke University
University of Pennsylvania
University of Pennsylvania

University of Buffalo

Washington, D. C.

University of Kentucky
Harvard University
Yale University
Columbia University

107

Columbia University
Harvard University
University of Wisconsin
University of Pennsylvania

Wesley C. Mitchell
A. E. Monroe

Walter A. Morton
Hans P. Neisser

Vassar College

Mabel Newcomer

Brookings Institution

E. G. Nourse

Yale University

Eugene Oakes

Ernest M. Patterson
S. Howard Patterson

University University of Pennsylvania
of Pennsylvania

University of Pennsylvania
Duke University

W. C. Plummer

B. U. Ratchford
Lloyd P. Rice

Dartmouth College

Winfield W. Riefler
R. G. Rodkey

Karl Scholz
Elizabeth B. Schumpeter

Institute for Advanced Studies
University of Michigan
University of Pennsylvania

Cambridge, Mass.

Edward C. Simmons
O.M.W. Sprague

College of City of New York
University of Michigan
Harvard University
Rutgers University

Willard L. Thorp

New York University
Dun & Bradstreet
General Motors Corporation

J. Philip Mernette

University of Michigan
Harvard University
Yale University

William J. Shultz

J. Wilner Sundelson
Paul Studenski
Rufus S. Tucker
Leonard L. Watkins

Ray B. Westerfield
K. M. Williamson

Wesleyan University

Charles R. Whittlesey

University of Pennsylvania

Ralph A. Young

University of Pennsylvania

William Withers

10#

SECBER

Queens College

St bW IS DE

108

August 1, 1941
Herbert Gaston

Secretary Morgenthau

Please give me a report Monday on what has been

done in regard to the President's request that we

investigate various members of the OPM. Do we simply

investigate people that they take on or do we investigate everybody as to their income taxes? Please let

me have a short report on just what we have been doing,
how many men are working on it, how many reports they
file with us, how many have been completed, and how
many uncompleted reports we have on hand; also how many

reports are turned out each week. You might make this
up to the first of August, and from now on let me have
a report on this once a month.

109
TO

TREASURY DEPARTMENT
UNITED STATES COAST GUARD
WASHINGTON

HEADQUARTERS

1 August, 1941.

MEMORANDUM FOR: Secretary Morgenthan.

In accordance with your request there is appended hereto
an analysis of Coast Guard Reservists in regard to number, ages,
1.

employment and experience.

annua he
R. R. WAESCHE.

110
ANALYSIS OF COAST GUARD RESERVISTS

Number in Service

Number of

as of 31 July, 1941

Rank or Grade

issioned officers - Reg.
ssioned officers - Temp.

draft age

77

64

26

6

Nautical Experience

Seagoing

Small

16
5

0

Hef Warrant - Regular
Hef Warrant - Temporary
rrant - Regular
rrant - Temporary
listed - Regular
listed - Temporary

0

0

3

15

0

152
25

332

254

0

0

2

0

1

0

10

4

48

0

21
0

6

162

None

61

1

1

1

Total

0

Craft

5

4

35

1

47

110

44

0

186

111

FORMER EMPLOYMENT

Comm.

Comm.

Officers
Regular
an

1

erical

Officers

Chief
Warrant
Temp.

Temp.

Warrant
Regular

11

30

17

ayer

Warrant
Temp.

3

1

6

Enlisted
Regular
41

10

95

55

11

90

1

1

7

ilder

2

7

17
4

2

exist

Total

Temp.

2

3

4

riner

Enlisted

6

1

10
40
7

2
2

corer

11

Insultant

4

15
1

1

actrician

2

1

2
5

acher

3
3

eveyor

to Driver
ch. Engineer
iter
terinarian

4
3

1

2

2

8

1

2

3

16

3

1
1

2
2

rmer

4
1

gger

1

2

1

2

1

1

umber

1
1

Employed

1

2

16

9

31

48

332

3

Total

77

26

1
3

15

162

111

A candidate for appointment as a commissioned officer - regular
Reserve - must pass a written examination in Navigation, Seamanship,
and English Composition, must have sufficient practical experience in
the operation of motorboats or yachts or on seagoing vessels to justify
the appointment, and in addition must be physically qualified. Examinations for chief warrant and warrant officers are comparable to the
scopes for similar ranks in the regular Coast Guard, except that they
do not include subjects peculiar to the Coast Guard.
Temporary commissioned and warrant officers are appointed on the
recommendation of District Commanders from members of the Auxiliary
whose boats are offered and accepted by the Coast Guard.

Enlistments, regular and temporary, are made by District Commanders
in ratings dependent on experience and ability of the applicant.
Regular members of the Reserve are exempt by law from training and
service under the Selective Service and Training Act. Temporary members
are not exempt from such training.

-2-

112
CONFIDENTIAL

UNITED STATES SAVINGS BONDS

Sales since May 1, 1941, by Months
On Basis of Issue Price

(In thousands of dollars)

June

July

:

:

:

:

:

Total

:

Series F - Banks
Series G - Banks

May

:

:

Series E - Total

:

Series E - Banks

:

Series E - Post Offices

:

Total

:

Item

$ 42,836

$ 40,788

214,190

57,745

61,729

348,373
94,052
564,053

100,581
37,817
211,420

102,517
28,876
183,134

145,274
27,359
169,498

$1,006,477

$349,818

$314,527

$342,132

$ 134,183

Office of the Secretary of the Treasury,
Division of Research and Statistics.

$ 50,558
94,717

August 1, 1941.

Source: All figures are deposits with the Treasurer of the United States
Note:

on account of proceeds of sales of United States Savings Bonds.
Figures have been rounded to nearest thousand and will not

necessarily add to totals.

MR. GRAVES' OFFICE TO

(

113

S CHAUNCEY:

In accordance with your instructions of yesterday, I have

on for

asked the Defense Savings people

to discontinue the daily reports

the post of"Any
card Bonds
requests
copies
To-Day?"

Do you want the reports on

the daily stamp sales at Treasury

House" to continue?
MFF

8/2

8/4/41

I asked Mr. Morgenthau today whether
wanted the daily stamp sales

and while.

r

to

"Treasury he said that House' he did continue, for a

I so informed Miss Finucane.
Mrs. McHugh

114
TREASURY DEPARTMENT
WASHINGTON

August 1, 1941

Memorandum for THE SECRETARY:

The following report is made of Stamp sales
at "Treasury House":
July 1-30

$22,494.75

July 31

1,190.15
Total

$23,684.90

GRAVES

115
0

P

Y

DEPARTMENT OF STATE
WASHINGTON

In reply refer to

August 1, 1941.

EA

My dear Mr. Secretary:

I enclose two copies of telegram No. 3319, dated
July 31, 1941, from the American Embassy at London,

containing a personal and strictly confidential message
for you from Ambassador Winant.

Sincerely yours,

(Signed) Herbert Feis
Herbert Feis

Adviser on International
Economic Affairs

Enclosure:
From Embassy, London,

No. 3319, July 31, 1941.
The Honorable

Henry Morgenthau, Jr.,

Secretary of the Treasury,
Washington, D. C.

COPY - dm - 8/1/41

116
C

0

P

Y

GRAY

London

Dated July 31, 1941
Rec'd. 12:35 p.m.

Secretary of State,
Washington.

3319, July 31, 6 p.m.
PERSONAL AND CONFIDENTIAL TO ACTING SECRETARY
FOR SECRETARY MORGENTHAU.

In reference to my telegram 3310, July 31 I
think you should know that accompanying the official
copy of the statement from the Chancellor I have
received the enclosed letter.

"I enclose copies of the statement which we
discussed this morning. I assume that unless you
have any further suggestions to make you will telegraph

the text to Washington and will ascertain if it is
satisfactory to the President.
The change in our export policy will require
the issue and publication of orders by the Board of
Trade and they naturally would like to know as quickly

as possible if they are to go ahead on the basis of
the statement. They would like if possible to make
the necessary orders at the beginning of next week.

117
- -2Should therefore be grateful if you would let
me know as soon as you can the result of any
communication that you send to Washington.

In connection with the Board of Trade orders it
will be necessary for then to publish an explanation
of the new arrangements. They suggest that if you
see no objection they should use for this purpose the
text of the paragraphs in the enclosed memorandum

which deal with export policy. You will no doubt
let me know how it is proposed to use the memorandum.
Signed Kingsley Wood."
WINANT.

RR

Copytalm 8-1-41
new

118

achuewhalged
by Sery 8/15/41

London, August 1, 1941.

Dear Mr. Secretary,

I am sending you herewith a copy of
"Hansard" for July. . 29th containing the Prime
Minister's speech in the debate in the House
of Commons on production. I thought you

would like to have a copy sent to you direct.
Sincerely yours,

John a wmant

The Honorable

Henry Morganthau, Jr.,

Secretary of the Treasury,
Washington, D. C.

noted by switch

and not 11/4/41

COL. 1275119
Tuesday
29th July, 1941

Volume 373
No. 91

PARLIAMENTARY
DEBATES

HOUSE OF COMMONS
OFFICIAL REPORT

Contents
QUESTIONS TO MINISTERS.

SUPPLY (17th ALLOTTED DAY]:
Considered in Committee:

Ministry of Supply : Production.
ROYAL ASSENT TO BILLS PASSED.

LONDON:

PRINTED AND PUBLISHED BY HIS MAJESTY'S STATIONERY OFFICE
To be purchased in the marmer indicated OD the back of this wrapper
Price Sixpence net

29 JULY 1941

Private Business

Oral Answers

1226

1225

Mr. Levy: Does the Minister realise the

HOUSE OF COMMONS.

-

Tuesday, 29th July, 1941.
OFFICIAL REPORT.

seriousness of this situation? No information has been received by this com-

pany that the notification was wrongly
interpreted. Does the Minister realise
that the chaotic situation is casting a very
grave reflection upon the Government as
as whole, apart from that which is cast

upon his Department, which is utterly

[Mr. SPEAKER in the Chair.]

PRIVATE BUSINESS.

incompetent?

Mr. Grenfell: I do not know that I am
inclined to argue the latter part of the

now to

CARDIFF CORPORATION BILL [Lords].

hon. Gentleman's supplementary question.
No doubt the company have had a sub-

Read the Third time, and passed, with-

stantial quantity of coal in stock, and

out Amendment.

they will receive
of coal according
the full
measure
their requirements.

EAST WORCESTERSHIRE WATER BILL

[Lords].

As amended, considered
Ordered,

That Standing Orders 240 and 262 be
suspended. and that the Bill be now read the

Third time."-[The Chairman of Ways and

Mr. Levy: Have the company been informed that the notification was wrongly
interpreted and that they will receive coal,
in order to prevent anxiety among their
men? Otherwise, the company may have
to close down.

Mr. Grenfell: Full supplies are going

Means.)

Bill accordingly read the Third time,
and passed, with Amendments.

ORAL ANSWERS TO
QUESTIONS.
COAL INDUSTRY.
SUPPLIES.

forward.

8. Mr. Culverwell asked the Secretary
for Mines whether he is satisfied that all

public utility undertakings will have
enough coal with which to carry on
during the next six weeks?
Mr. Grenfell: I cannot give, an absolute
guarantee that all public utility undertakings can be supplied with coal enough for
the next six weeks. The average amount

I. Mr. Levy asked the Secretary for
Mines whether he is aware that a noti-

of coal in stock by public utility undertakings, gas, electricity and water, runs

fication has been sent to the Elland Dyeing

to about six weeks' supply at the summer
rate of consumption, but these stocks are

Company, Limited, stating that they will
not receive any further supply of coal for
the next eight weeks, and as they have
not sufficient stocks to last for that period,
to

on work

they although will engaged have close Government their works,

and a protected firm; and what action he
proposes to take to prevent this situation
occurring?

The Secretary for Mines (Mr. David

order to coal

for under-

Grenfell): urgently needed In public provide utility

a time

takings to reduce certain for collieries deliveries were instructed to con-

In the

case these were

lar sumers of in lower question priority. instructions particu-

wrongly interpreted to mean
the complete
mistake hasalready
suspension but
been corrected,
No. 91

not evenly distributed and there are a

number of them which do not hold a fortnight's stock at the present time. There

has been a marked increase in the rate of

stocking by public utilities-notably gas
works-in the past few weeks.

Mr. Culverwell: Is not the Minister
aware some of these

thata few
public
utilities will
have only
days'and
supply,
he not take drastic action to save them
from having to close down?

Mr. Grenfell: This situation has, unfortunately, been in existence for many
months throughout last winter, but no
undertaking of any kind has stopped for
want of coal since the beginning of the
war.
A

Oral , Answers

1227

Oral Answers

HOUSE OF COMMONS

1228

Mr. Shinwell: If the supply of coal is

distributed as my
who is
has not evenly said, responsible hon. for Friend the

Sir W. Davison: Will some of this come
to Chelsea?

Mr. Grenfell: I hope so.

present situation?

Mr. Grenfell: It is impossible to convey

the desired quantities to the

various of the country. are

to make
good
in We places
coal now trying
in parts
those
stocks are lowest,

able to very

with a few weeks'

II. Major-General Sir Alfred Knox
asked the Secretary for Mines when a
sufficient supply of house coal will be
made available in the Easthampstead and
Wokingham rural districts of the county
of Berkshire?

to where be the report shortly and stocks I hope have that

to a level
places been raised
only commensurate with

other parts of the country.

Mr. Grenfell: From the information in

my can assure and

gallant
possession, Member I that during recent the hon. months

10. Sir William Davison asked the
Secretary for Mines whether he has con-

communication town

Chelsea out

hood of a serious shortage in

sidered clerk of a pointing from of the the coal likeli-

Chelsea during the coming winter months

ment recent

by reason of the failure of his Departmonths, to supply notwithstanding any coal the during fact that,

at the request of the Ministry, ample
storage accommodation approved by
them provided so that coal might be

available the
who had no

it themselves; and whether
steps will be taken to supply the coal
reserve promised to Chelsea over five
persons was during facilities coming for winter immediate storing for

months ago?

Mr. Grenfell: I am sending the hon.
Member a copy of the reply to the letter

from the town clerk of Chelsea. The
delay in increasing stocks in this and
other localities is of course due to the

been at

has

Berkshire has not suffered unduly as a

result of the reduction in available
supplies of house coal. The tonnage held

in stock by the merchants in May compares favourably with the corresponding
figures for previous months this year, and
disposals during the past three months
have exceeded the figures for the corres-

ponding period of last year. So far as
I am aware, sufficient coal has been available in the Easthampstead and Woking-

ham districts to meet current requirements. The future position will naturally
depend on the results of our continuing
efforts to increase production.
Sir A. Knox: Does the hon. Gentleman
agree that while the coal now being supplied is sufficient for current requirements

in the summer months, no reserve is
being built up for the winter, which will

be infinitely more difficult than last
winter, because people who want a lot
of coal and have not been able to acquire
stocks will then come into the market?

Mr. Grenfell: There are stocks, equal

Chelsea, general acquired shortage and I hope of St. supplies. it Mark's will be A College, possible site

before long to provide coal for it.

Sir W. Davison: Is my hon. Friend
aware that the facts as stated in the Question are vouched for by the town clerk in

a aware the

of We are not,

o-and a year in some ago. cases better than-those however,

more coal

if we can more

satisfied; we get want production, in stocks stock, and will

be correspondingly raised.

Sir John Mellor: Were not these dis-

are

persons no storage accommodapersons recent who for report, whom have and the is coal he is required that

tricts

tion in their homes?

and supplied
shouldby
not
hon. Friend
Colliery, formerly
themy
Tamworth

Mr. Grenfell: It is because I am so
anxious about the people who have no
stocking that storage of I have 3,000,000 accommodationtons
made provision on in for their Government the homes

account. There are now about one and
one-third million tons on Government
account, particularly for the people who
have no stocking accommodation of their

own.

be now considering the reopening of that
colliery?

Mr. Speaker: That does not arise on
this Question.
PIT-HEAD CANTEENS.
asked
for

is available for the

2. to Mines be Mr. made T. whether Smith any additional the provision Secretary money

of canteens at the various collieries?

Oral Answers

29 JULY

1941

Oral Answers

1230

1229

Mr. Grenfell: I would refer my hon.
Friend to the statement I made on this
subject in the House last Thursday. The

them to lose two shifts, because he alleged

they were 10 seconds too late; that this
allegation is denied; and what action he

matter is being pressed, and the necessary
legal amendments are being undertaken as

intends to take against the coal company?

soon as possible.

and am informed that the circumstances
have been considered by the pit production committee, which has endorsed the

Mr. Smith: Is it intended to get this
money? Will my hon. Friend see to this
matter and do his best to get the money
as quickly as possible?

Mr. Grenfell: I have made inquiries

action of the manager. If hon.
has
any on the
shall further information my matter, Friend
I be glad to discuss the question with

Mr. Grenfell: I rely very largely upon
the committee, the chairman of which is
a Member of this House. I am sure the

him.

committee is keen to do what it can, and
it has the full confidence of my Depart-

answer the Question whether he is aware

ment.

Mr. Smith: Will the money have to be

Mr. Sloan: Will the Minister please

that a violation has taken place of the
Essential Work Order, which gives employers no power whatever to suspend or
dismiss men for absenteeism?

found by this House?

Mr. Grenfell: It will not.
OUTPUT.

3. Mr. T. Smith asked the Secretary for
Mines what co-operation exists between the

Coal Production Council and the area
committees of the Ministry of Information
with regard to the appeals made to mineworkers for a maximum coal output?

Mr. Grenfell: In order to further the
appeals for maximum output, every effort
is made to maintain close co-operation
between the Coal Production Council and
its district production committees on the
one hand and the Ministry of Information
organisation throughout the country on the
other, both through the Ministry's headquarters in London and its regional information officers."

Mr. Smith: Is my hon. Friend aware
that there is no co-operation? Is he aware

that in Yorkshire the Coal Production
Council has been fixing a meeting and that

the Minister of Information did the same

in the same place and within days of
each other, without any consultation? Is
that not a waste of organisation power,

and ought there not to be the closest
co-operation?
POLQUHAIRN COLLIERY, DRONGAN.

5. Mr. Sloan asked the for

Mines whether
Secretary
he that,
is aware
on 25th
June, 1941, the manager of Polquhairn
Colliery, Drongan, contrary to the Essential Work Order, prevented two workmen

named Logan and Dungavel from proceeding to their work, thereby causing
No. 91

Mr. Grenfell: The answer I gave was
that I made inquiries of the pit production
committee because the committee is responsible for the decision taken.

Mr. Sloan: Is the Minister aware that
the only person who has power to deal
with the matter is the district officer, who
has never been called into question; and
is he further aware that the pit production
committee was not appointed by the men
at that colliery?

Mr. Grenfell: I hope my hon. Friend
will give me the facts privately, and I
will see what I can do. I did not know
those things at all.

Mr. Sloan: Very good, I will do so.
BONUS ATTENDANCE PAYMENT.

6. Mr. Tinker asked the Secretary for
Mines whether he is aware of the resolution carried at the Miners' Conference last
week protesting at the conditions applying
to the bonus attendance payment; and
what steps his Department are taking on
this question so as to bring about a more
satisfactory settlement?

Mr. Grenfell: I am aware of the resolution calling upon the Executive Committee of the Mineworkers' Federation of
Great Britain to take this question up with
representatives of the colliery owners; I
understand that a meeting between the
parties for this purpose has been arranged.

Mr. Tinker: Will the Minister not use
his good influence to impress upon coalowners that they should not be too hard?
Is he aware there is some feeling among
A2

Oral Answers

1231

HOUSE OF COMMONS

Oral Answers
1232

[Mr. Tinker.]
the miners at what is happening and that

Mr.cases
Oliver:ofWhat
power exists to deal
with
this kind?

if it could be removed, a better spirit
would prevail?

Mr. Grenfell: I would like to see con-

ciliation

adopted
by should
both sides
in and order imthat a better
spirit
prevail
proved production result.

Mr. James Griffiths: Will the Minister

Mr. Grenfell: There are very extensive

an was to the

powers. If my hon. Friend can prove

production that attempt of coal in made war-time, limit I have

power enough to deal with the matter.

Mr. Oliver: I will see that the Minister
has the information.

make new efforts in this matter?
Mr. Grenfell: I hope it will be discussed
at the next meeting.

Mr. McGovern: Has not the Mineworkers' Federation agreed about this
matter?

reasons
run
motor
carstothat
will

Secretary give the boats for and Petroleum why motor it is necessary whether in order he

MINE ACCIDENTS.

7. Mr. Tinker asked the Secretary for
Mines whether his attention has been
drawn to the number of accidents at the
coal face being on the increase in proportion to the number of men employed
there; and whether he will cause a special

investigation to be made to find out
whether
to
caused

PETROL RATIONING.
12. Sir Waldron Smithers asked the

through it is due machinery the excessive which prevents noise

the miner from sensing the danger which
he would otherwise do?
Mr. Grenfell: I have to state with regret
that the rate of fatal accidents at the coal

face had gone up since the war. I have
been in consultation with the inspectors
on a number of occasions and am unable
to satisfy myself that we have found an

explanation of the cause of increase.

There are a number of factors operating
with greater effect in war time which contribute to the higher number of deaths.

A was

I am
similar proceeding result with observed close investigations in 1914-1918.

and will give the House fuller information
when we return after the Recess.
UNWORKED PROFITABLE SEAMS.

9. Mr. Oliver asked the Secretary

for Mines whether his attention has been
drawn to the fact that in some mines the
more profitable seams are not now being

worked in favour of the less profitable
seams not normally in production, result-

they shall be ready for use if and when
required for work of national importance?

The Secretary for Petroleum (Mr.
Geoffrey Lloyd): As I informed the hon.
Member on 22nd June, there are a number

of considerations of which the point he
refers to is one. Unless boats and cars
are maintained in service, it cannot be
expected that they should be in readiness
for immediate use should they be needed

for work of national importance.
Sir W. Smithers: While appreciating to

the full the wonderful service given at
Dunkirk and elsewhere by these boats,
would it not be quite sufficient if motor
cars and motor boats which are not absolutely necessary were turned over for 10

or 15 minutes a week and thus kept in
good running order?

Commander Sir Archibald Southby:

Is hon. Friend aware many

themy
whopeople
use thesethat
motor
carsof
and

motor boats are officers and men from
the Forces, home on leave and getting a
little very much needed relaxation?

-

TRADE AND COMMERCE.
COTTON TEXTILE EXPORTS TO UNITED
STATES.

I3. Mr. Stokes asked the President of it
the Board of Trade, on what grounds
has been decided to be necessary to con-

ing in a loss of output; and whether he

tinue of cotton goods

can make any statement on the matter?

tiles to the the export United and America tex- of

Mr. Grenfell: I am not aware of the
practice referred to by the hon. Member.

If he has actual cases in mind, I shall
be glad to have particulars, in order that
inquiries may be made.

States of

where there is already a sufficiency
clothing?

Mr. Harcourt Johnstone (Secretary,
Department of Overseas Trade): Our need
for dollars is very great, and it is essential

Oral Answers

1233

29 JULY 1941

the we

should make the fullest use we

that can of we export interfering capacity which with essential still

possess, without

home requirements.

Mr. Stokes: Will the hon. Gentleman
say how he reconciles this statement with

President Roosevelt's advice to his

countrymen to " cut out the dollar sign
and forget the financial nonsense," and
will he also say why he has considered it

advisable to export clothing from this
country, where we have too little, to
America, where they have too much?

Mr. Johnstone: I do not think those

points call a my

hon.

Friend for may say, reply. the Treasury's Whatever need

for dollars is still very great, and if the
United States wish to buy clothes which
we can manufacture and which are superfluous to our bare requirements, there is

are of

no reason why they should not be
exported.

Mr. Shinwell: Is it not the case that we

raw

producing materials manufactured supplied by goods the United out

States of America? Is that why?
Mr. Johnstone: No, Sir.

Mr. Shinwell: Are we not producing
cotton goods from American cotton?
Mr. Johnstone: No, Sir.
CLOTHES RATIONING.

14. Mr. A. Edwards asked the President of the Board of Trade whether he
is aware that a boy's school outfit requires

200 coupons which, in most cases, it is
quite impossible to provide; and what
steps he proposes to take to remedy this
anomaly?

The Parliamentary Secretary to the
Board of Trade (Captain Waterhouse):
I would refer the hon. Member to the
Reply which I gave to the hon. Member
for Pontypridd (Mr. Pearson) on 18th
June.

not what will

Mr. Edwards: Will the hon. and gallant

to with
take Gentleman
deal say this? steps The he Answer
referred to does not state what steps are
being taken.

Captain Waterhouse: It is hoped that
schools will modify their, in many cases,
unreasonable requirements to bring them
into line with present possibilities.

Oral Answers

1234

Mr. Edwards: Does the hon. and
gallant Gentleman not realise that whatever modifications are made, there will
still be a shortage of coupons for children
going to school?

Captain Waterhouse: Already small

children get an advantage in the list

issued, and be

made for
we not contemplate provision for large school outfits.

special which children, has provision but been do there growing will

Sir Joseph Lamb: Can the hon. and
gallant Gentleman say what children are
not growing?

23. Mr. Henry Strauss asked the Presi-

dent Trade whether

arrived with

an extra of

decision regard of the to has Board yet been of issue at clothing any

coupons to expectant mothers to meet
their special needs for knitting wool and
other materials?

Captain Waterhouse: Yes, Sir. The
the
Board Ministry of of Trade, Health, in consultation the Scottish with Depart-

ment of Health and the Northern Ireland
Ministry of Home Affairs have secured
the co-operation of the local authorities
for maternity and child welfare in issuing

a special allowance of 50 coupons to
expectant mothers. The scheme will
come into force on 5th August, and full
details will be published in the Press
to-morrow.
EXPORT TRADE.

15. Mr. Hannah asked the President of
the Board of Trade whether he is satisfied

with the state of our export trade,
especially in view of markets after the
war?

Mr. Johnstone: My right hon. Friend
is never satisfied with the state of our
export trade, and he is very conscious
that war conditions make it impossible
to cultivate our overseas markets as much

as we should wish. But my hon. Friend
can be assured that the considerations he
mentions are being kept in mind.

Mr. Hannah: Does the Government
realise the supreme, enormous, colossal
and overwhelming need of looking after
our export trade, especially when peace is
restored?

WINDOW AND PLATE GLASS INDUSTRY.
18. Mr. Marcus Samuel asked the Pre-

sident of the Board of Trade, whether he

HOUSE OF COMMONS

Oral Answers

1235

Oral Answers
1236

and plate glass industry on a

be on

scale so that this country may

large window dependent foreign imports to repair not

damage after the war, and to supply our
own needs and give employment?
Captain Waterhouse: I can assure my
hon. Friend that the importance of this
industry is not being overlooked.
Mr. Samuel: Is the hon. and gallant
Gentleman aware that there might be a
certain amount of broken glass in Germany?
SMALL TRADERS.

19 and 20. Mr. Doland asked the

President of the Board of Trade (I)
whether, in view of the questionnaire issued by the committee set up by the Board

of Trade, particularly in view of one of
the 24 questions which asks trade associations if they consider that steps should
be taken to reduce the number of shops, it

is the policy of the Government to endeavour to eliminate a large number of
small shops in London and the country

to
war
shops are of
either by voluntary or compulsory means;

those the in

he will furnish figures, comparable
ping space

different given to achievable illustrate by saving eating less ship. to or

how

space be for

every IO per the imports
much shipping kinds cent. of reduction bread, could showing in saved

of tobacco generally and of American

tobacco in particular?

Captain Waterhouse: Publication of
details relating to trade statistics has been

which
rate of import
of any commodity.
a

[Mr. Samuel.] of the

is planning for the establishment

ties. suspended would I cannot since indicate the therefore outbreak the give of hostili- figure

Miss Rathbone: Is my hon. and gallant
Friend aware that present propaganda
about tobacco is most unsatisfactory, that
the appeal to the tobacco consumers to reduce their consumption for a few weeks
only, by one-fifth only, is unsatisfactory,
first, because patriotic smokers have al-

ready reduced their consumption by far
more than one-fifth and, secondly, that
they would be ready to reduce it far more
than that if they had reason to suppose it

to be essary.-[Interruption.]-May
not ask for a reply?

aware

primarily (2) whether empty the he incidence is in the of borough that owing 94I

Wandsworth, compared with 308 as at
March. 1939; and will he bear in mind

this wholesale closing of small businesses

all over the country causing great hardship to thousands of persons, when considering legislation regarding the retail

Mr. Speaker: The hon. Lady is giving
the answer to her own Question.
Miss Rathbone: In view of the unsatisfactory nature of the Reply, I beg to give

notice that I intend to raise the matter
on the Adjournment.

trading community?

GOVERNMENT DEPARTMENTS.

Captain Waterhouse: The Board of
Trade are aware that largely owing to

war a number of
that has
have circumstances had to close, and hardship shops

in some cases inevitably resulted. The

BOARD OF TRADE (STAFF).

17 Sir Percy Hurd asked the President
of the Board of Trade whether, in view

of call of the Secretary of State

to hon.
for he an
refers, was set up to examine the tion to his that men
numerous and complex problems conwho drew the

questionnaire Retail Trade Committee, which my Friend up

for

the war War urgent services, and other Ministers will issue for instruc- recruits

and women whose

fronting retail traders, and I cannot anticipate their findings. I can, however, assure my hon. Friend that the interests of
have
not

to statement made on 13th

and the refer will small him shopkeeper be the overlooked, and not I would been,

May when the appointment of this Committee was announced,

TOBACCO IMPORTS.

21. Miss Eleanor Rathbone asked the
President of the Board of Trade whether

or are called shall not

Department age groups eligible have be taken been

into or in

kept employment up activities in rationing unless
or otherbeing
departmental

they are especially certified by him to be
irreplaceable?

Captain Waterhouse: The retention of
permanent staff and the recruitment and

retention of the temporary staff of the
Board of Trade are in compliance with
the conditions prescribed in the Schedule
of Reserved Occupations and Protected

Oral Answers

29 JULY 1941

Oral Answers

1238

1237

Work. Requests for deferment of callinghave only been made for certain tem-

up officers with professional or other

cannot be con-

qualifications

factory; I did say I thought that an improvement was taking place and that,
given a chance, this matter would be got
right.

KENNET COMMITTEE.

porary specialist work who replaced. essential This for their

dition will continue to be strictly

observed.

Sir P. Hurd: Is the hon. and gallant
Gentleman aware that there is considerable resentment among those who have
been called up, often at great personal

loss, that there should be retained in
Departments like his men and women
who could easily be replaced if the effort
were made?

Captain Waterhouse: I can assure the
hon. Member that we do not retain people
who could easily be replaced-ever.

An Hon. Member: What about the
President of the Board?

24. Mr. Glenvil Hall asked the President of the Board of Trade the number of

the staffs engaged on work in Bournemouth connected with the clothes rationing, woven textiles, miscellaneous trades
orders, and concentration of production:
what proportion is composed of perma-

nent civil servants; and whether he is
satisfied that the Department there is
working smoothly and with efficiency?

62. Sir P. Hurd asked the Financial Secretary to the Treasury whether, seeing the
large number of eligible men and women
whose age groups have been called up who
are being retained in the various Departments of the Government, he will request

the Kennet Committee to consider the

feasibility of calling up all these men and

women unless they are certified by the
Minister concerned to be irreplaceable in
the Department?
The Financial Secretary to the Treasury

(Captain Crookshank) I will, with my
hon. Friend's permission, answer this
Question and No. 59 together.

Sir P. Hurd: Question No. 59 has been

deferred.

Captain Crookshank: The answer is the
same, anyhow. The Kennet Committee
yesterday submitted an interim report to
my right hon. Friends the Chancellor of
the Exchequer and the Minister of Labour
Perhaps my hon. Friend would wait until
my right hon. Friends have had an opportunity of considering it.

of staff of all grades, including minor

Sir P. Hurd: How long does my right
hon. and gallant Friend think it will be

common services staff, employed in the
Board of Trade offices at Bournemouth
on these duties is 943 of whom 208 or

wants to know whether it will be pub-

Captain Waterhouse: The total number

are in

22 are

There per cent. many permanent problems civil inherent servants.

these new duties, and I am satisfied that

before we see this interim report?
Captain Crookshank: If my hon. Friend

lished, I should like to have notice of that

Question. I should not think it would.

the Department is doing its utmost to

overcome the initial difficulties.

Mr. Hall: Is the hon. and gallant
Gentleman aware that the public, at any

rate, are not satisfied that these four

hotels are being properly run and that a

very large number of complaints are
made that the whole thing appears to be
in a most chaotic condition? Would the

President of the Board of Trade have
inquiry made?

Captain Waterhouse: I do not think
there is a case for inquiry at all. We are
well aware of the difficulties which are
inherent in the position. I did not say I
thought the position was perfectly satis-

NATIONAL FINANCE.
PURCHASE TAX (MINERS' LAMPS).

22. Mr. Gordon Maedonald asked the
President of the Board of Trade whether
he will consider, at an early date, removal
or the reduction of the Purchase Tax on
acetylene lamps used in coalmining?

The Chancellor of the Exchequer (Sir
Kingsley Wood): I have been asked to
reply. I would refer my hon. Friend to

the answer which I gave to a similar
question by my hon. Friend the Member

for West Fife (Mr. Gallacher) on 3rd
December last.

1239

Oral Answers

HOUSE OF COMMONS

Mr. Maedonald: Does the Chancellor
realise that the present position is, that
lamps provided by a colliery company are
free of tax, whereas lamps acquired by the

men themselves are subject to tax, and
will he take steps to remove that anomaly
and see that such lamps are free of tax?

Sir K. Wood: I would like to discuss
that with the hon. Member. I dare say
he knows the difficulty there is in restricting the concession to the types used in the
industry.

Sir Herbert Williams: Does not my
right hon. Friend realise that the Purchase
Tax is the main element in the spiral?
ELECTRICITY CHARGES.

54- Mr. A. Edwards asked the Chancellor of the Exchequer whether he is aware
that the cost of electric power has been
increased by 40 per cent. due to increases
in cost of coal; that the effect of this is to
inflate the cost of nearly every commodity

purchased by the Government; and at
what date he proposes to carry out his
undertaking to subsidise rising costs of
coal-power, &c., in order to stabilise
prices and wages?

Sir K. Wood: My noble Friend the
Minister of War Transport is not aware
of any general increase to the extent indicated, but he will ask the Electricity Com-

missioners to look into any particular

cases which my hon. Friend has in mind.
Among the measures taken in relation to
the charges of public utility undertakings,
the Commissioners have informed all electhat no
other than
increases creases tricity undertakers in electricity charges, further inalready announced, should be
made without the undertakers first sub-

mitting their proposals to the Commisnecessary

may have an

that sioners the with Minister supporting opportunity data so

of considering the position.

MERSEY DOCKS AND HARBOUR BOARD
(CHARGES).

55. Mr. A. Edwards asked the Chancellor of the Exchequer whether he is aware

Oral Answers
1240

Sir K. Wood: Yes, Sir. My noble
Friend consulted me before agreeing to
the increased charges referred to, The
matter was fully examined in relation to
I announced in
and in view of
the Budget which policy speech, which the extent my

to essential goods are now imported

on Government account, I am satisfied
that the increased charges will not be

prices of such the
consumer.
conflict
with the policy of the Government.
reflected in the There is, therefore, goods no to

Mr. Edwards: Is the Chancellor not
aware
puts
the of
must put the of

these goods that when he he up up prices cost

goods to the Government? Is it not impossible to stabilise prices if this method
of increasing prices of all these-commodities is continued?

I to the I
Sir K. Wood: That is a general matter.

have confined myself Reply

have given, which deals with a specific

case.

ADVERTISEMENT POSTERS.

57. Captain John Dugdale asked the
Chancellor of the Exchequer whether, in
view of the adverse effect that they have
upon the National Savings Campaign, he

will take steps to prohibit, for the duration of the war, the display of advertisements upon hoardings throughout the
country calling upon people to spend
money upon the purchase of proprietary

articles?

Sir K. Wood: No, Sir. Private adver-

by other

tising hoardings is already subject
to
severe restrictions
very the upon Paper and Controller increasing and in

ways, and I am satisfied that the National
Savings Campaign will not be adversely
affected by leaving the position as it is.

Captain Dugdale: Does not the right
hon. Gentleman consider it unfortunate
that posters encouraging people to spend
should be placed side by side with the

posters of his Department which encourage people to save?

that the Ministry of War Transport has
an increase of 60

the sanctioned
per cent.
in
DocksMersey
and Harbour
Board's

and dock rates
as
thisconflict
is in as from with 2nd the
town July; dues and,

policy of the Government, what steps he is
taking to prevent a consequent increase in
the cost of many Government purchases?

ECONOMIC WARFARE.
SPAIN (SUPPLY SHIPS).

25. Mr. Mander asked the Minister of
Economic Warfare whether, in view of
the recent attack on the democracies
made by General Franco, it is proposed

Oral Answers

29 JULY 1941

Oral Answers

1242

1241
to

continue to permit the passage of

supply ships through the British blockade
to Spain?

The Minister of Economic Warfare (Mr.
I would remind my hon. Friend

oflast
which
on the
from my

day Dalton): the Reply right he received hon. Friend Thurs-

Secretary of State for Foreign Affairs.
My right hon. Friend referred to my state-

ment of 30th July, 1940, when I laid it
down that it was not the policy of His
Majesty's Government to extend the
blockade to neutral countries so long as
supplies could reach these countries with-

out the risk of falling into the hands of
the enemy, that we were prepared to
grant navicerts on such a scale as to allow
imports adequate for domestic consump-

tion, and, further, that it was the policy
of His Majesty's Government not merely
to allow such supplies to pass through
our controls, but also to assist neutral

countries to obtain them. As regards
General Franco's speech on 17th July,

vigilance in order that nothing will reach

Spain which would increase General
Franco's power to go to war against us?

Mr. Dalton: Yes, Sir.

Mr. Garro Jones: As General Franco
does not appear to understand the posi-

ment, not

tion of the

and and intentions the British Government British Govern- do

appear to understand the intentions of
General Franco

Mr. Speaker roseCONTROL OF EXPORTS (GREAT BRITAIN
AND UNITED STATES).

26 Mr. Mander asked the Minister of
Economic Warfare to what extent progress
has been made as between Great Britain
and the United States of America in producing an agreed black list of traders?

Mr. Dalton: By a proclamation dated
has

a Proclaimed

thisspeech right hon. displayed Friend complete pointed misunder- out that
my

standing of the general war situation, and
also of British economic policy towards
Spain. He added that this speech made

it appear that General Franco did not

our own List.

17th authorised List similar July, the to preparation President Roosevelt of Statutory

This Proclaimed List is to include persons
who are believed to be engaged in activi-

ties helpful to Germany or Italy, and

desire further economic assistance for his

persons to whom the exportation of any

country and that, if this were so, His

United States is deemed to be detrimental

article or material exported from the

Majesty's Government would be unable
to proceed with their plans, and that their
future policy would depend on the actions
and attitude of the Spanish Government.

to the interests of national defence. Any
person whose name appears on the list

Mr. Mander: Does that mean that, in
the meantime, shipments are held up,

thatwe to
go
are General

debarred from obtaining, except under
special licence, United States products
which are subject to export control. In

through nothing until further will satisfied be allowed that

pursuance of this proclamation the United
States Government has now issued a list

Franco does not mean what he says?

Mr. Dalton: No, Sir. No further de-

is to be treated as though he were a
national of Germany or Italy, and is to be

of 1,834 persons in Latin America. The

cision has been taken in that sense. We
are waiting for elucidation of the inten-

majority of these also appear on our own

tions of the Spanish Government.

Mr. Shinwell: Is my right hon. Friend
aware that one of the ships despatched

ordination of the two lists. This new departure will be of the greatest value to us
in waging economic warfare, and I am
sure the House would wish to join with

actually discharged a cargo at Dakar,

me in welcoming this striking act of

Mr. Dalton: Yes, Sir, but Dakar is not

Mr. Mander: Could the right hon.

by the U.S.A., the Scheherezade,'
which is under German control?
in Spain.

Mr. Shinwell: That is worse.

Mr. Noel-Baker: Will my right hon.
Friend continue to exercise the utmost

Statutory List. I am consulting the
United States Government on the co-

American co-operation.

Gentleman say whether joint consideration is now being given to the question of
Japanese enemy trade?

Mr. Dalton: Yes, Sir.

1243

HOUSE OF COMMONS

Oral Answers

Oral Answers
1244

ITALIAN PRISONERS OF WAR.
27. Mr. Mander asked the Secretary of
State for War whether he will give an
assurance that Italian prisoners of war,
including the Duke of Aosta and other

generals, are being treated strictly in
accordance with international regulations

and that no special facilities are being
provided other than those available for
German prisoners?

that cases in which soldiers at home an
unable to obtain four periods of seven
days' leave in the year are exceptional
Mr. Bellenger: Would the hon. Gentle.

man look more closely into that, as

can assure him that there is a consider.
able discrepancy between different

in
leaves?
by any means for four leaves
the granting of universal these It is units not

within any year to be given.

The Financial Secretary to the War
Office (Mr. Sandys): Yes, Sir. There are
of course, minor differences of treatment
between German and Italian prisoners.
But these depend on the privileges allowed

to our prisoners in Germany and Italy.
Mr. Mander: Can the hon. Gentleman
say why it is that Italian officers are being
released for the purpose of attending social

functions in Cairo, and will he make
arrangements that these shall cease forthwith?

Mr. Sandys: If the hon. Gentleman will
give me particulars of these festivities, I
will look into the matter.
Captain McEwen: Is my hon Friend not
aware that there is a great deal of difference in the treatment of our prisoners of
war by Germany and Italy?

BRITISH ARMY.
LEAVE.

28. Mr. Hannah asked the Secretary of
State for War whether his attention has

Mr. Sandys: If the hon. Gentleman
will let me have particulars of any hard.
ship cases, I will look into them.
GERMAN PRISONER'S PUBLICATION.

29. Mr. G. Strauss asked the Secretary

of State for War whether he is aware
that a book is being published in America

entitled, I was a Nazi Flyer,' written
by a German prisoner of war who baled

out in this country and was sent to
Canada; that this book sets out the faith
of the Nazi soldier whether permission
was given for this book to be published;
and whether prisoners of war, under any
circumstances, are entitled to have their
writings published?
Mr. Sandys: The release for publication

of a book written by a prisoner of was
is a matter for decision by the military
authorities under whose care he is detained. I have no information regarding
the particular case to which my hon.
Friend refers, but I am having inquiries
made from the Canadian authorities.
Mr. Strauss: Does that mean that when

been. called to dissatisfaction among

a British prisoner of war is sent to

days' leave every three months, if

Canada, a book can be published without
the permission of the British authorities.

soldiers on home service that their seven

exigencies permit, is so often found to be

impracticable; and will he look into the
whole matter to be sure that leave is never

withheld where it can possibly be

granted?

Mr. Sandys: I would refer my hon.
Friend to the Answer given to my hon.
Friend the Member for Normanton (Mr.

T. Smith) on 3rd July, of which I am

sending him a copy. Leave allotments
are based on the operational requirement

that the strength of units should not
normally be allowed to fall below
more than ten

any While I am that

lishment time. by per cent. estab- at
and

courses, requirements
duties aware
mayspecial
sometimes
leadtraining
to the

postponement of leave, I am satisfied

dealing with something which he has

written?

Mr. Sandys: I have replied that I do
not know anything about this particular
case and that I am looking into it.
TOBACCO ISSUE, MALAYA.

of whether
in are now

31. Sir A. Southby asked the Secretary

troops State stationed for War, Malaya the Imperial being

issued with tobacco and matches on the
field service scale; and on what date was
such issue approved, observing, that for
some time issues of tobacco at the field

service rate have been made to men
serving in Iceland and the Orkney and

Shetland Islands but not to men in
Malaya?

Oral Answers

Oral Answers

29 JULY 1941

1246

1245

Mr. Sandys: The free issue of tobacco
and matches is normally limited to troops
engaged in active operations, but it has

extended to areas

are far removed
sources of supply.

also troops been The certain from General the normal Officer where

Commanding Malaya, recently drew
to the difficulties experienced in

was on

units on

land. this attention respect Approval by accordingly the Malayan given main-

5th July last for the free issue of tobacco

and matches to these troops.

Sir A. Southby: Can my hon. Friend
whether the delay in giving this free

the
men was to
Office or to

say issue the War to in Malaya the parsimonious due

action of the Treasury?

Mr. Sandys: Cases are dealt with as
they arise.

Sir A. Southby: Was that application
made for this issue some time ago, and
was there any delay in giving it?
Mr. Sandys: I understand the request
was made by the General Officer Commanding, Malaya, quite recently.
AEROPLANES UNDER ARMY CONTROL.

32. Mr. David Adams asked the
Secretary of State for War, whether the

Army is now furnished with sufficient

co-operative support, as opposed to the

German Army system, under which

platoons
may make direct requests for
aircraft?
Mr. Sandys: Perhaps the hon. Member
will put that question on the Paper.
DEPENDANTS' ALLOWANCES.

33. Sir William Wayland asked the
Secretary of State for War why, when a
soldier's wife enters a rate-aided institution, the dependants' allowance is immediately stopped, although the soldier con-

tinues to receive the pay of a married
man; and why the allowance is not paid
to the local authority towards the maintenance costs?

Mr. Sandys: Family allowance is issued
in order to assist a soldier in meeting the
expense of maintaining and accommodat-

ing his family. If a soldier's wife without
children enters a rate-aided institution,
her allowance is withheld. At the same
time, the regimental paymaster authorizes
the issue of full pay to the soldier, unless

he wishes a voluntary allotment to be
paid to his wife. As regards the second
part of the Question, it would be contrary

to present policy for any payment to be

made from Army funds to the local
authority in such cases.

Mr. Neil Maclean: Is it not the case

appropriate aeroplanes to make it incependent of the Royal Air Force in effecting reconnaissance and similar work?

that all these rate-aided institutions make
a charge to the inmates where they believe

Mr. Sandys: My hon. Friend appears
to be under a misapprehension. It is not

deep for the Minister to answer?

proposed to set up a separate air force for

that the charge can be met? Is that too
ROAD ACCIDENTS (EMERGENCY

the Army. All squadrons engaged on

TREATMENT).

Army continue to belong to the Royal
Air Force. Certain of these squadrons,

34. Sir W. Wayland asked the Secretary of State for War what responsibility
does the War Office accept for reimburs-

reconnaissance and similar work for the
however, which are specially equipped
and trained for Army needs, are under
the operational control of the Army; and,

as my right hon. Friend the Prime
Minister stated on 10th June, it is the
intention to increase considerably the

number of aeroplanes under Army
control.
Mr. Adams: When is it anticipated
that this last-mentioned desire will be
fulfilled?

Mr. Sandys: It is going on all the time.
Mr. Garro Jones: Is it still the case that
no Army unit lower than a division can
make a direct request to the Air Force for

an even

ing a hospital for the cost of a patient

the of the

injured cause by Army accident vehicle, may have though been

purely accidental or due to contributory

negligence on the part of the injured
person, or when the cause of the accident
is in dispute?
Mr. Sandys: When a person is afforded
emergency treatment as the result of an

accident arising out of the use of a War
Department vehicle on duty on a road,
claims are accepted against Army funds
for the cost of such treatment at the rates
and in the circumstances specified in Sec-

tion 16 of the Road Traffic Act, 1934.
notwithstanding that that part of the

Oral Answers

1247

HOUSE OF COMMONS

[Mr. Sandys.]
Act does not apply to the Crown. Refund

of other hospital expenses is considered
in connection with any claim to compenIn
sation arising out of the accident.
general, the War Office accepts liability
in respect of such expenses to the extent

to which a private employer would be

Oral Answers
1248

Mr. Sandys: Yes, Sir. All data, re
cords and materials of the Kensington
Gardens
Camouflage School of
war
are
at have the disposal been carefully of present-day examined, the camou. and last

flage officers through the medium of the
Army Centre.
Camouflage Training and Develop.
ment

liable in similar circumstances.

Sir W. Wayland: Is the hon. Member
aware that in many cases the district paymaster has refused to recognise claims
made by hospitals when an accident was

not absolutely due to the Army driver,
or where it could not be attributed either
to one side or the other, and that in such

cases compensation has often been
refused?
Mr. Sandys: The payments to be made
are laid down quite clearly in Section 16
of the Road Traffic Act. Those payments

are made.

Mr. Hannah: Are the Government fully
convinced
improved? that our camouflage cannot be

Sandys: It is being improved all
theMr.
time.
MILITIA CAMPS (COST).

were of

State Militia

36. Mr. Stokes asked the Secretary of
included for War in how the actual many expenditure camps

£22,750,000; and how many were allowed

for in the original estimate of

£20,000,000?
CAMOUFLAGE.

35- Sir John Graham Kerr asked the
Secretary of State for War, whether he is

aware that one of the few recognised
authorities in the science of camouflage
is now in His Majesty's service; whether
he is satisfied that he has been given an
official position commensurate with his
position in this highly-specialised branch
of science; and what is his official designation and where are his headquarters?

Mr. Sandys: I assume that my hon.
Friend is referring to an authority on the
biological aspect of camouflage about
whom he has written to my right hon. and
gallant Friend. This gentleman holds a
commission in the Royal Engineers. He
is now serving as a camouflage officer,

a that

am that his

Middle

as to full

capacity and holds I at General satisfied staff Headquarters, appointment in

the tionexercise
East. is suchof
provide
present scope
posifor
his abilities
and
experience.

37- Sir J. Graham Kerr asked the

for War
is
aware was
accumulated Sécretary that of valuable State knowledge whether he

during the last war in relation to

the Kensington Gardens scheme of camou-

flage; material on which it was

was in store at a
of
been
such material is still to the fore; and
founded which that he has placed informed: whether place

whether care has been taken to make it
freely accessible to camouflage officers

during the present war.

Mr. Sandys: I would refer my hon.
Friend to the answer given to him on

28th May.

Mr. Stokes: That answer gave no information at all. Will the hon Member
state what percentage of the camps it was
intended to construct were constructed?
Unless this is stated, the answer makes no
sense at all.

Mr. Sandys: The answer to which I
referred the hon. Member was given to a
Question of his which was almost identical

with the one that he asked to-day. He
had a very full reply, to which I have
nothing to add.

COURTS-MARTIAL

38. Mr. Cecil Wilson asked the Secre-

tary of State for War, seeing that it is

laid down for courts-martial, in Rules of
Procedure 87 (D), that the friend of the
accused may advise the accused on all
points and suggest the questions to be put

to the witnesses, but cannot examine or
cross-examine the witnesses or address the

court, under what circumstances the

friend may not be present in court

throughout the proceedings?

Mr. Sandys: The friend of an accused
is
to be in court
times which the accused

entitled during present himself at all

is before the court and desires his friend
to be present.

Oral Answers

29 JULY 1941

Oral Answers

1250

1249

Mr. Wilson: If I send the hon. Member
cases where this right has been refused,
will he look into them?

this complicated matter by way of question and answer. There will be an opportunity on the Scottish Estimates at the
next Sitting, when I hope to make a fuller
statement.

Mr. Sandys: Certainly, Sir.

SCHOOL CHILDREN (MEALS).

SCOTLAND.
HILL SHEEP FARMING.

and 4I. Mr. Robertson asked the
of State

he is sheep

Secretary whether 39, 40 satisfied for that Scotland, the hill (I)

industry is receiving fair prices for its
wool and mutton compulsorily sold to the

are

the
Government;
subject of and negotiation whether the with prices the in-

of
loss
accounts
hill

dustry or are they arbitrarily fixed by the
Government;

(2) the average results of his inspection
current and trading balance and sheets profit of typical and

farms in the various districts, after allowing the working farmer the wage of the
lowest-paid agricultural labourer;

(3) whether he is aware that, as a result
of the severe winter and spring, mortality
among ewes and lambs was high; and
what steps he is taking to meet the situation, which will become worse within the
next few weeks, when many hill farmers
will be compelled to sell breeding stock to
meet current expenditure?

42. Mrs. Hardie asked the Secretary of
State for Scotland whether he is aware of
the conclusions arrived at by the Ministry
of Food as to the necessary ingredients of
a balanced meal; and whether he will confer with that Ministry with a view to providing such a meal to every child at school
from September throughout the winter?
Mr. Johnston: The answer to the first
part of the Question is in the affirmative

With regard to the second part of the
Question, it is the duty of education authorities to provide meals for all necessitous

school children, and I have encouraged
authorities to extend this service to all
other school children on payment of the
bare cost of the food. At present, some
50,000 school children in Scotland are
obtaining a well balanced meal daily; and
this number, I hope, will be steadily increased.

Mrs. Hardic: While I thank my right
hon. Friend for his reply, will he put more
pressure on local authorities to provide
these meals for necessitous children, in

view of the fact that it is practically im-

The Secretary of State for Scotland (Mr.

been over
last
is a stateT. Johnston): Wool prices have already

possible for the mothers to get the food in
the shops, even if they have the money?

year's increased will figures, be and made by it 15 shortly per hoped cent. that

Mr. Johnston: I quite agree. We are
taking every step we can to encourage
the local authorities. There are difficul-

farmers' accounts show an improvement

ties about cooking equipment and so on,
but we hope that these are being rapidly

ment
on
mutton
prices. While the latest available hill
for the 1940 season as against the previous

season, I am aware that additional difficulties and financial hardships have re-

sulted from the prolonged winter of
1940-41 and the resulting loss of lambs.

are alive to the

The position Government and have already fully given

an under-

taking to provide, if necessary, special

assistance.

Mr. Robertson: Is it not quite

great should be

that
this this
wrong
out in
way?
Is itindustry
not a singled
fact that
the
figures for the two years of Government
purchase show a net loss on all the farms

overcome.
NUTRITION (WORKERS).

43. Mr. Sloan asked the Secretary of

State for Scotland whether he is aware that
the nutrition of certain classes of workers
in Scotland is inadequate, and compares
unfavourably with the nutrition standards
provided for other classes of workers; and
whether he will take steps to provide adequate and equal nutrition for all workers?

Mr. Johnston: The policy of the Government has been, and is, to provide adequate nutrition for all classes of workers.

taken out by the Department of Agri-

If, as I assume, my hon. Friend has in
mind any disparity in the provision of

Mr. Johnston: As the hon. Member

food canteens, and especially at the coal
pits, in Scotland, I can assure him that the
matter is receiving urgent attention.

culture for Scotland?

knows, it is exceedingly difficult to discuss

Oral Answers

1247

HOUSE OF COMMONS

[Mr. Sandys.
Act does not apply to the Crown. Refund
of other hospital expenses is considered
in connection with any claim to compenIn
sation arising out of the accident.

in toaextent
to
be
general, respect which the of War private such Office expenses employer accepts the would liability

liable in similar circumstances.

Sir W. Wayland: Is the hon. Member
aware that in many cases the district paymaster has refused to recognise claims
made by hospitals when an accident was

not absolutely due to the Army driver,
or where it could not be attributed either
to one side or the other, and that in such

cases compensation has often been

refused?

Mr. Sandys: The payments to be made
are laid down quite clearly in Section 16
of the Road Traffic Act. Those payments

are made.

Oral Answers
1248

Mr. Sandys: Yes, Sir. All data,
of the

are of

Gardens cords and Camouflage materials Kensington re.

School of the last

carefully

flage war at have officers the disposal been present-day examined, camou. and

through the medium of the
Army
Camouflage
Training and Develop
ment Centre.

Mr. Hannah: Are the Government fully
convinced that our camouflage cannot be

improved?

Sandys: It is being improved all
theMr.
time.
MILITIA CAMPS (COST).

36. Mr. Stokes asked the Secretary of
State for War how many Militia camps
were included in the actual expenditure of
£22,750,000; and how many were allowed

for in the original estimate of

£20,000,000?
CAMOUFLAGE.

35. Sir John Graham Kerr asked the

aware one few

is

Secretary that of State of for the War, whether recognised he

Mr. Sandys: I would refer my hon.
Friend to the answer given to him on

28th May.

of

is now

he he has
been an
commensurate his
authorities in His in the Majesty's science service; camouflage whether

position official is satisfiedhighly-specialised
position in this that given with
branch

of science; and what is his official designation and where are his headquarters?
I assume that

to an my
onhon.
the
Friend Mr.referring
Sandys: is authority

aspect
of about
written to

gallant whom biological he Friend. has camouflage my right hon. and

This gentleman holds

now astheaRoyal

a staff that

is commission serving in camouflage Engineers. officer, He a

East. and capacity holds I at General Headquarters, appointment in Middle

am satisfied that his present posi-

tion is such as to provide full scope for

the exercise of his abilities and ex-

perience.

Mr. Stokes: That answer gave no information at all. Will the hon. Member
state what percentage of the camps it was
intended to construct were constructed?
Unless this is stated, the answer makes no

sense at all.

Mr. Sandys: The answer to which I
referred the hon. Member was given to a
Question of his which was almost identical

with the one that he asked to-day. He
had a very full reply, to which I have
nothing to add.

tary of
is
laid
COURTS-MARTIAL

38. Mr. Cecil Wilson asked the Secredown of State for for courts-martial, War, seeing in that Rules it

Procedure that the friend of the
on all

37. Sir J. Graham Kerr asked the

State for War is
was

aware mulated Sécretary that of valuable knowledge whether accu- he

during the last war in

Gardens scheme
flage; the Kensington that relation of camou- to

material on which it was

was placed in store at a

has been
such of founded which he informed; whether place

material is still to the

whether
fore;
make
and
caretohas
been
taken
it
freely accessible to camouflage officers

during the present war,

to put

accused points and may suggest 87 (D), advise the the questions accused be

to the witnesses, but cannot examine or
cross-examine the witnesses or address the

court, under what circumstances the

friend may not be present in court
throughout the proceedings?

Mr. Sandys: The friend of an accused

is entitled to be court

timesduring
which
the accused
present
in himself at all

is before the court and desires his friend
to be present.

Osal Answers

29 JULY 1941

Oral Answers

1250

1249

Mr. Wilson: If I send the hon. Member
cases where this right has been refused,
will he look into them?

this complicated matter by way of question and answer. There will be an oppor-

tunity on the Scottish Estimates at the

next Sitting, when I hope to make a fuller
statement.

Mr. Sandys: Certainly, Sir.

SCHOOL CHILDREN (MEALS).

SCOTLAND.
HILL SHEEP FARMING.

is
its
the of inand 4I. Mr. Robertson asked the
of State

he is sheep

Secretary 39, 40 satisfied for that Scotland, the hill (I)

wool mutton the

whether industry and receiving compulsorily fair prices sold for to

are

Government; subject and negotiation whether the with prices the

of loss

dustry or are they arbitrarily fixed by the
Government;

the average results of his inspection

accounts and hill

42. Mrs. Hardie asked the Secretary of
State for Scotland whether he is aware of
the conclusions arrived at by the Ministry
of Food as to the necessary ingredients of
a balanced meal; and whether he will confer with that Ministry with a view to providing such a meal to every child at school
from September throughout the winter?
Mr. Johnston: The answer to the first
part of the Question is in the affirmative.
of the
Question, With regard it is to the the duty second of education part

autho-

rities to provide meals for all necessitous
school children, and I have encouraged

farms in the various districts, after allowing the working farmer the wage of the
lowest-paid agricultural labourer;

authorities to extend this service to all
other school children on payment of the
bare cost of the food. At present, some
50,000 school children in Scotland are

(3) whether he is aware that, as a result

obtaining a well balanced meal daily; and

(2) current trading balance and sheets profit of typical and

of severe

this number, I hope, will be steadily in-

what the steps he winter and is taking lambs and to spring, meet high; the mortality situaamong

hon. more

ewes was and

tion, which will become worse within the
next few weeks, when many hill farmers
will be compelled to sell breeding stock to
meet current expenditure?

The Secretary of State for Scotland (Mr.

T. Johnston): Wool prices have already
been increased by I5 per cent. over last
year's figures, and it is hoped that a state-

ment will be made shortly on mutton
prices. While the latest available hill

creased

Mrs. Hardie: While I thank my right

on
pressure Friend for
local his reply, authorities will he to put provide

these meals for necessitous children, in
view of the fact that it is practically impossible for the mothers to get the food in
the shops, even if they have the money?

Mr. Johnston: I quite agree. We are
taking every step we can to encourage
the local authorities. There are difficul-

farmers' accounts show an improvement

ties about cooking equipment and so on,
but we hope that these are being rapidly

for the 1940 season as against the previous

overcome.

season, I am aware that additional difficulties and financial hardships have re-

sulted from the prolonged winter of

are to the

1940-41 and the resulting loss of lambs.
The position Government and have already fully given alive

an under-

taking to provide, if necessary, special
assistance.

Mr. Robertson: Is it not quite wrong

great should be
out Is
it not that the

that in this this way? industry a fact singled

the two of Government
a net loss all farms

purchase figures for show years on the

taken out by the Department of Agriculture for Scotland?

NUTRITION (WORKERS).

43. Mr. Sloan asked the Secretary of

State for Scotland whether he is aware that
the nutrition of certain classes of workers
in Scotland is inadequate, and compares

unfavourably with the nutrition standards
provided for other classes of workers; and
whether he will take steps to provide adequate and equal nutrition for all workers?

Mr. Johnston: The policy of the Government has been, and is, to provide adequate nutrition for all classes of workers.

mind
food and in of
I hon. Friend has in

If, as canteens, any assume, disparity my especially the provision at the coal

Mr. Johnston: As the hon. Member
knows, it is exceedingly difficult to discuss

pits, in Scotland, I can assure him that the
matter is receiving urgent attention.

1251

Oral Answers

HOUSE OF COMMONS

Is right hon. Friend

aware
the possibility my of procuring
Mr. that Sloan:
nutritious food for miners in Scotland is
almost nil, that miners' wives are completely at their wits' end, and that they
are taking long journeys to the towns only
to find short rations there? Will he see
that the canteen system is spread as far as
possible in Scotland?

Mr. Johnston: Yes, Sir. My hon.
Friend the Minister of Mines has the subject very urgently under review. In Scot-

land we are exceptionally badly off. At
present, we have only two canteens in

active operation.

HIGHLAND FOLK MUSEUM.

44- Mr. Hannah asked the Secretary of
State for Scotland, whether he has now
taken the promised steps to prevent the
dispersal of the Highland Folk Museum?

Mr. Johnston: The possible alternative
accommodation to which I referred in my
Answer of 15th July is being examined by

the Inverness County Council. Meantime, I have asked them not to enter
upon the museum premises.

Mr. Hannah: Is not that a most unsatisfactory answer?
GOVERNMENT CONTRACTS.

63. Major Lloyd asked the Secretary of
State for Scotland whether he is aware
of the increasing resentment which is felt
among Scottish public works contractors
at the growing tendency of English firms
to obtain contracts for work in Scotland;
whether he is further aware that resident
engineers of English main contractors are
enabled to appoint direct sub-contractors
from England for work which can be more
readily carried out by Scottish contractors
in Scotland; and whether he will consult
with the Government Departments concerned with a view to safeguarding the
interests of Scottish contractors in future?

Mr. Johnston: While I have received
some general representations in the sense
of the hon. Member's Question, I have no
specific evidence of any case in which the

Oral Answers

aware to

1252

Mr. McKinlay: Is my hon,
that plants belonging right Scottish Friend
over

contractors handed have to English been requisitioned contractors, who and

have no plant of their own?

Mr. Johnston: That is another question.

If hon. Members had any evidence of
that kind
have
it. of thing, I should be glad to
Mr. Neil Maclean: Will my right hon.
Friend get into touch with the Ministry
of Supply and the Board of Trade and
see the particulars of these contracts?

Mr. Johnston: I would prefer that a
specific case should be given me.

Mr. Sloan: Is my right hon. Friend
aware that English contractors do not
come up to standard and that local con-

tractors have to carry out the work?
HIGH COMMISSIONER AUSTRALIA
(STATEMENT).
45. Mr. David Adams asked the Prime
Minister whether his attention has been
called to a recent speech made by the
British High Commissioner in Australia
derogatory to the political system of our
Russian Ally; and whether, as such statements by persons in authority may injure
our joint war effort, he has taken steps
to ensure that no further speeches of this
kind are made?

The Lord Privy Seal (Mr. Attlee): My
right hon. Friend the Prime Minister has
seen Press reports of a statement alleged

dom He
to been made

have High Commissioner by the in Australia. United King-

has ascertained from him that the facts of

the case are as follows. In reply to
questions about Communism put to the
High Commissioner at a Press conference,
he denied the prevalence of Communism

in this and

munism was
country generaily stated unpopular that Com- here.
He did not, in his reply, use the expression

to he

the Russian system," as has been
Subsequently, in reply

his Russia was

wrongly further attitude reported. Press towards inquiries, stated identical that

public interest has been prejudiced, or
contracts given out in any manner disadvantageous to Scottish contractors or
workmen. If any evidence of that nature
is available, I shall be glad to consider

sioner has been or

of it with
the view
drawing
attention
appropriate
authority
to the
matter.

misrepresented, and he has the full confidence and approval of the Government.

a to the

with that recently expressed by my right
hon. Friend the Prime Minister, who is
the fact. It is obvious
that the

from sure that the above this is completely High misreported Commis-

Oral Answers

29 JULY 1941

1253

Adams: Is not my right hon.
Friend Mr. aware that Mr. Hughes, the
Australian Naval Minister, condemned his
speech and that several thousand trade
unionists in Australia demanded the recall
of our High Commissioner?

Mr. Attlee: I have given my hon Friend
the facts.

Oral Answers

1254

Mr. Attlee: With regard to the per-

formance of the functions of the Chan-

cellor of the Duchy abroad, that has
already been answered.

Mr. Maxton: Does my right hon. Friend
think there will be any harm in the affairs

of the Chancellor of the Duchy being
managed by somebody other than himself?

Mr Maxton: Is my right hon. Friend
aware that this is not the only Member of
House in foreign parts who has made
statements?

this
controlling
to
be objectionable
some method
ofThere
ourought
representatives abroad.

MINISTERIAL DUTIES.

48. Mr. Shinwell asked the Prime
Minister whether the duties undertaken by

Lord Beaverbrook as Minister of State

have been transferred to another Member
of the War Cabinet?

CHANCELLOR OF THE DUCHY OF
LANCASTER.

47. Sir H. Williams asked the Prime

Minister what Minister in this House will
answer Questions addressed to the Chancellor of the Duchy of Lancaster when he
is abroad?

Mr. Attlee: In the absence of the
Chancellor of the Duchy of Lancaster,
such Questions will be answered in the
future, as they have been in the past, by
he Attorney-General.

Sir H. Williams: Will the AttorneyGeneral answer Questions in respect of
duties performed overseas by the Chancellor of the Duchy of Lancaster?

of was one

Mr. Attlee: It depends upon the nature

the

the general Question. high If policy it of the relating Govern- to

ment, it would have to be put to my right
hon. Friend the Prime Minister.
Sir H. Williams: Supposing it is a Ques-

Mr. Attlee: *As stated in the public
announcement issued on 29th June, the

appointment of my Noble Friend Lord

Beaverbrook as Minister of Supply
brought to. an end the special arrangements whereby the Minister of State acted
as Deputy Chairman of the Defence Com-

mittee (Supply) and as Referee on
priority questions. The announcement
also stated that these questions would in
future be handled within the organisation
of the Office of the Minister of Defence or

of the Production Executive, of which
latter my right hon. Friend the Minister
of Labour would continue as Chairman.

SOCIAL SURVEY (BLIND PERSONS).
52. Mr. J. Griffiths asked the Minister
without Portfolio whether consideration

bethetocommittee
the perupon a

sons will by given position engaged of blind

survey of social services?

The Minister without Portfolio (Mr.

tion to be put down with reference to
something that the Chancellor of the

Arthur Greenwood): Yes, Sir. The blind

Duchy is doing overseas, to whom must

are specifically covered in the Com-

it be addressed?

of by
but of

the on

mittee's preliminary plan of work.

Mr. Attlee: I have already replied to

put
hon. hon. Member Member is ingenious that point. enough to
If the

a Question with reference to the business
the the Attorney-General, Chancellor, it will be any answered question

general policy will have to be put down

to the Prime Minister.

TOWN AND COUNTRY PLANNING.

Mr. Henry Strauss asked the
without

have taken to ensure

the administration of the of

Minister the 53. Government Portfolio Restriction what steps that

Ribbon Development Act, 1935 shall pro-

ceed in conformity with long-term plan-

Sir Irving Albery: Is it not perfectly
obvious that at the present time the right
hon, Gentleman cannot perform the duties
of Chancellor of the Duchy?

and whether was

or inadvertently that
ment omitted this statute from

purpose ning policy; it the their Govern- of state- set

*ment of 17th July, 1941, setting out the

1255

Oral Answers

HOUSE OF COMMONS

1256

[Mr. Strauss.]

purpose and terms of reference of the

Council of Ministers under the chairmanship of the Right Honourable Lord Reith?

Mr. Greenwood: In settling the composition and terms of reference of the

Ministers under the chairman-

of noble

Oral Answers

taken the

ship have, Council of my of course, Friend, into the account Government

fact that the Town and Country Planning
Act is not the only statute which relates

to planning. It is. however, by far the
most comprehensive Statute in this field,
and its administration is already closely
co-ordinated with the administration of

other Acts relating to planning. The
function of the Council of Ministers is to

bring my noble Friend into closer associa-

for peace and his striving to secure the
conciliation settlement of rather international differences

than by force?

The Parliamentary Secretary to the

of to
Ministry of Information (Mr.
the

responsibility When dealing for with the question Thurtle): of

war, it is clearly
to the

peace Europe. as the hon. Mem.

desirable His in Majesty's to draw Government attention But preserve efforts

ber will realise it is equally important to
lay emphasis on the faithless and aggressive character of German policy during
the pre-war years.

Sir W. Davison: Does not the hon
Gentleman think it would be very undesirable at the present time to put

tion with the current administration of

forward the suggestion contained in the

the main body of the planning law, and
this function is accurately reflected in the
Council's composition and terms of refer-

Question, which might cause it to be

ence. My noble Friend will, however,

remain in close touch with the administration of all other relevant enactments.
Mr. Strauss: Is the right hon. Gentleman

of the opinion that the administration of
the Restriction of Ribbon Development
Act, 1935, in the past has been consistent
with good planning? Is that same system
to be allowed to continue?

Mr. Greenwood: I would like the hon.
Gentleman to await, if he would, the new

legislation on this matter, which will
shortly be before the House.

generally considered that we were longing

for peace on Hitler's terms?

Mr. Thurtle: I am not in a position to
add to my Answer, except to say that it
is the view of the Government that His
Majesty's Government's efforts to preserve

peace are best shown against the background of Hitler's perfidy and perjury.
Mr. Lambert: Is the hon. Gentlemar
aware that the object of my Question is
to show that the entire responsibility for
the horrors now existing in Europe rests
on Hitler and his associates?
Mr. Thurtle: The Government are fully

aware of that fact, and are anxious to
see that it is brought out in all propa-

BRITISH MUSEUM READING ROOM
(RE-OPENING).

61. Miss Eleanor Rathbone asked
the Financial Secretary to the Treasury
when the re-opening of the reading room
of the British Museum may be expected?

Captain Crookshank: It is to

the publicthe
service
of hoped
resume
reading
room about the end of October.

ganda.

AIR TRANSPORT AUXILIARY.
65. Mr. Garro Jones asked the Minister
of Aircraft Production on what exact basis
or calculation the Air Transport Auxiliary
Service is paid for each aircraft delivered

to the Royal Air Force?
The Parliamentary Secretary to the

Ministry of Aircraft Production (Mr.

has cost of

Montague): The Air Transport Auxiliary

PROPAGANDA BROADCASTS TO
CONTINENT.

tion no falls revenue. on the The Vote the theof organisa- Ministry

64. Mr. Lambert asked the Minister of
Information whether he will request the

to and
the efforts, in 1938 and
to

accentuate the British Continent Broadcasting in broadcasts Corporation Germany

1939, of the late Mr. Neville Chamberlain

by

of Aircraft Production. Payment is not
made on the basis of aircraft delivered.
Mr. Garro Jones: Does the cost of that
organisation include any interest paid for

the shares of British Airways on their
fixed interest-bearing securities?

29 JULY 1941

Oral Answers

Oral Answers

1257

Montague: The cost of the Air

on Vote,

be on

any
questions
Transport Mr. ifhon.
Auxiliary Friend
is borne
has the
to

he and put will my concerning good enough higher to policy, raise them perhaps

the appropriate Vote.

1258

under the Schedule of Reserved Occupa-

tions and Protected Work, admit of the

cases
to
tion. permanent reservation

grant of deferment which in

be No tantamount individual may reserva- suitable or de-

ferment of calling-up can, of be

man ofcourse, age.
guaranteed toany
military

PERSONAL INJURIES (CIVILIANS'

TRAINEES (TRAVELLING EXPENSES).

06. Mr. Ellis Smith asked the Minister
of Pensions whether he is aware that Mr.

Labour whether he is aware that persons
who go as trainees to Government train-

SCHEME).

69. Mr. Tinker asked the Minister of

B. of received
33,
a

are to
their
own
this

ing centres fares, and, called in many upon instances, pay

on-Trent, Morrey, Penkville injuries of Street, permanent Novem- Stoke-

character in an air-raid on 19th
ber, 1940; that his income is IIS. National
Health Insurance and 6s. from the Amal-

amount exceeds IOS. a week; and will he
consider making some allowances to them
to meet this expense?

why
gamatedman
the Society
of received Woodworkers; compensation;
has
not

why the delay; and will this be paid at
once with retrospective pay?

Tomlinson: I have already written
toMr. my
on now
this
been for

per case
of all
over 21 and

excess
of
Arrangements hon. have Friend in made
subject.

The Minister of Pensions (Sir Walter
Womersley): Mr. Morrey did receive compensation in the form of injury allowances
under the Civilians Scheme from the date

of his injury in November, 1940, up to
27th May, 1941, that is, for the period of
26 weeks after which an award of pension
is normally considered. I regret that in-

tinuance the
structions were not given for the con-

daily boarder week travelling trainees to be expenses paid in years the of age 5s.

all trainees living at home over 19 years
of age in Government Training Centres.
The assistance given in the case of all
other trainees is already greater than this.
Mr. R. J. Taylor: Will that payment be
retrospective where applications have
been made?

was

have now been reinstated retrospecquestion of of pension injury allowances settled, with until but they

tive effect from 28th May, 1941, and will
remain in payment until pension can be

Mr. Tomlinson: Where applications are

made for retrospective payments, they

will have to be considered on their merits.

awarded.

EVACUEES (EMPLOYMENT).

NATIONAL WAR EFFORT.
SCHEDULE OF RESERVED OCCUPATIONS.

68. Mr. Nunn asked the Minister of
Labour whether he will establish tribunals
to decide definitely what men shall be reserved as a minimum staff for business
concerns so that

can
to
in mind that difficult firms

and ments industrial be made continue arrange- output,

to with confidence
bearing continue the basis their work it is any for
on
of temporary exemptions?

The Joint Parliamentary Secretary to
of Labour

hon.

does not think that tribunals are
required to deal with this matter. The

the As Friend Ministry at present advised, (Mr. my Tomlinson): right

70. Major Sir Edward Cadogan asked
the Minister of Labour whether he can
give any information as to what proportion of evacuees, who have reached the
school-leaving age, have obtained employment in the reception areas?

Mr. Tomlinson: I am having inquiries
made and will communicate with my hon.
and gallant Friend.
INDUSTRIAL DISPUTES.

71. Mr. G. Macdonald asked the

Minister of Labour how any working days
have been lost due to industrial disputes
during the 12 months ended 30th June,
1941; and what is the comparative figure

existing arrangements for the deferment of

for any similar period during the Great
War and also for the 12 months immediately preceding the outbreak of the

the military calling-up age, number not reserved of

present war?

of a limited men
of who
are
No. 91

B

1259 Business of the House HOUSE OF COMMONS

Mr. Tomlinson: The total number of

so as re-

Written

WRITTEN

Answers

ANSWERS.

causing working stoppages days lost of in work, industrial far disputes

ported to my Department, was approxi-

mately 990,000 in the twelve months
ended 30th June, 1941, and 1,300,000 in
the twelve months ended 31st August,

1939. In the years 1915-18 the corresponding totals were approximately,
2,950,000 in 1915; 2,450,000 in 1916;
5,650,000 in 1917; and 5,880,000 in 1918.
WOMEN.

CLOTHES RATIONING.
Mr. Lipson asked the President of the
Board of Trade whether he is

on surrender of

clothing insistence and the footwear couponssold
aware at
church that for

bazaars and sales of work, will have

out to the

serious effect on social and religious work
the

72. Sir Leonard Lyle asked the Minister

of Labour whether, to avoid prejudicial
effect on home life, and especially in view
of the increased responsibilities thrown on
mothers, he will apply the conscription of

women in the first place to young single

women?

Mr. Tomlinson: It is not at present the
intention to apply conscription to women.
As regards women registered under the
Registration for Employment Order, it
has been arranged with the advice of the
Women's Consultative Committee that
women with no occupation are called for
interview before women in employment.
Within each group, single women are in-

terviewed before married women. Women
who have children under I4 years of age

living with them are not called for inter-

and exempting such purgained will of thereby all be proportion consider for rationing advantage scheme;

chases from rationing under safeguards
which should prevent abuse?

Captain Waterhouse: My right hon
Friend could not justify an arrangement
which would permit a limited section of
the public to obtain more than their fair
share of rationed goods at the expense of

the rest of the community and of the
normal channels of retail trade.

COAL DISTRIBUTION.
Mr. Denville asked the Secretary for
Mines how he proposes to deal with the
distribution of the-necessary coal for al
household purposes when enough coal is
being produced for those purposes?

view.

NEW MEMBER SWORN.

Percy Gott Barstow, Esquire, for the

County of York, West Riding (Pontefract Division).

BUSINESS OF THE HOUSE
Ordered,

Mr. Grenfell: Special attention is being
given to the need for the most equitable
distribution of coal for all household purposes, and I have no doubt that opportunities for stocking will be afforded to
all consumers when adequate supplies
become available.

WAGES AND PRICES (WHITE
PAPER).

That this day, notwithstanding any-

thing in Standing Order No. 14. Business in
Committee of Supply may be taken after the
hour appointed for the interruption of Business and that the Proceedings of the Committee of Supply be exempted, at this day's
Sitting, from the provisions of the Standing
Order (Sittings of the House)." -[[[he Prime
Minister.)

and

MESSAGE FROM THE LORDS.

That they have agreed toFinancial Powers (U.S.A. Securities)

Bill and War Damage (Extension

of Risk Period) Bill, without
Amendment.

Major Adams asked the Prime Minister
whether he will allow a day for a Debate
on Command Paper 6294 on the subject
of inflation?

Mr. Attlee: I would refer my hon. and

Friend to the statement I
made
course
of the which
gallantthe
during
Business

-

statement on Thursday last.

NATIONAL FINANCE.
PURCHASE TAX.

Mr. Thorne asked the Chancellor of the
the Exchequer whether he can give any

29 JULY

Written Answers

1941

Written Answers

1261

information in connection with the charges

1262

the places to which civil servants and
their offices have been evacuated.

a

Company, made against Bethnal the Green, Beaucraft for Furniture Purchase

MINISTRY OF FOOD (TRADING

Tax evasion; and what was the value of
the goods on which the tax had been

ACTIVITIES).

evaded and the total loss to the revenue?

Sir K. Wood: This firm was charged
with furnishing false tax returns, producing and using false documents and
making false statements in connection with
the tax. The value of the goods involved
was not less than £4,200, on which the
tax evaded was about £1,400.
INCOME TAX (WIDOWERS).

Mr. Hannah asked the Chancellor of the
Exchequer whether he realises the hard-

ship to widowers still having to keep up
their houses being taxed as single men;
and will he consider some relief?

Mr. Rostron Duckworth asked the Par-

liamentary Secretary to the Ministry of

Food what profit has accrued to the Government in respect of the trading activities of his Department in commodities in
short supply?

Major Lloyd George: The Ministry of

as a in the a

Food's trading activities must be

substantial whole
andhas
aggregate
very
loss
beenregarded
incurred
in

carrying out the Government's policy of
subidising certain essential foodstuffs.
Profits have, however, arisen
to the

selling at the

of commodities mainly owing on necessity certain

penny per in the of
fixing retail lb., and prices early days nearest

Sir K. Wood: As my hon. Friend is no
doubt aware a deduction of tax on £50
can be claimed by a widower in respect
of a resident housekeeper. I cannot see
my way to propose any further special

are offset against the heavy losses incurred
in subsidising other foodstuffs.

GOVERNMENT DEPARTMENTS.

FOOD SUPPLIES (SMALL

CIVIL SERVANTS (BILLETING).

Sir L. Lyle asked the Parliamentary Secretary to the Ministry of Food

relief to widowers.

Mr. Roland Robinson asked the Secretary to the Treasury, to what extent the

of has
and whether

been he compulsory will adopted billeting in the country; Civil Servants

state the general policy and the

chief areas affected?

Sir K. Wood: I regret that I have no
statistics to show the precise extent to
to

the war to requisitioning of stocks. Such
profits are not substantial in amount in
relation to the Ministry's activities, and

TRADERS).

whether, before deciding to eliminate as
purveyors of rationed food, traders with
fewer than 25 registered customers, he

formed any estimate of the number of
such traders; and, if so, whether he will
state what it was?

Major Lloyd George: The answer to

tion was

the
in

course civil which it to has compulsory been necessary powers have billeting reI

in a few cases

that only servants. very understand, however, has this

expedient been adopted. The

been to enlist the of

the policy householders
has goodwill
concerned
and I general

to
has been
ful. say It that is it generally am success- glad

hoped that householders and

of houses will consuch assistance as

are tinue proprietors
to render boarding they
to giveable
in this

must out

matter, modation but for I point very that difficult accom-

people transferred to carry
out essential work must be secured, and
only in the last resort is recourse had to
last compulsory powers. With regard to the

in part of the question, it would not be
the public interest to publish a list of
No. 91

first is in part the negative. of my hon. It Friend's impossible Ques-

to form any such estimate until the new
registrations were completed.

Sir L. Lyle asked the Parliamentary
Secretary to the Ministry of Food the
number of small shopkeepers in Bournemouth who are likely to be affected by
the regulation withdrawing food rations
from shopkeepers who have fewer than
25 registered customers; whether he will
lay upon the Table of the House copies
of the instructions designed to bring to

the notice of the Food Committee his
promise of considerate treatment; and

whether. in the case of any adverse decision, these traders will have any right
of appeal?
B2

Written Answers

1263

Written Answers

HOUSE OF COMMONS

Major Lloyd George: The answer to the

of hon. Friend's is
number
of small
first that part
the my shopkeepers
Question in

who are likely to be

the arrangement to

affected Bournemouth by the which recent he

refers will not be known until

re-registration of customers with individual
shopkeepers has been examined. In reply

126

the fact that membership of the Home
Guard relieves a member of the obligation

of attending a fixed number of hours on
fire-watching?

Captain Margesson: This proposal has
been considered, but it was decided that

it would not be practicable to enforce

to of which
thereference is

such a condition universally, as members
of the Home Guard engaged in essential

confidential. In the case of an adverse

vented from attending parades for reasons

instruction the second to part Question is made the

-

decision the trader concerned may appeal
to the divisional food officer.

BRITISH ARMY.
LOST EQUIPMENT (DEBITING).

Mr. Ness Edwards asked the Secretary
of State for War whether he is aware that

the Paymaster of the Royal Engineers

has debited the accounts of certain mem-

bers of that unit with sums up to £II for
equipment lost whilst these men were
swimming for their lives from ships that
were sunk in the Dunkirk evacuation;
and whether he will take the necessary

occupations may on occasion be prebeyond their control. I would, however,
remind my hon. Friend that a battalion
commander in the Home Guard has the
power to discharge members of his battalion who wilfully disregard their obligations, and I think that in matters of this
kind we must rely upon his judgment.
POST-WAR RECONSTRUCTION.
Mr. Daggar asked the Minister without

Portfolio, whether he will give particulars and personnel of the various bodies
undertaking surveys in connection with

post-war problems; and the degree to

steps to cause these sums to be refunded
to the soldiers concerned?

which his Department is financing them?

Mr. Sandys: I have made thorough inquiries but am unable to trace any case

for me to provide my hon. Friend with
a list of all the surveys which are being
undertaken by independent agencies in

in which a soldier's account has been
debited in respect of equipment lost, in
the circumstances to which my hon.
Friend refers. I shall be glad therefore if
my hon. Friend will supply me with the
particulars of the cases upon which the
allegation contained in his Question is
based.

AUXILIARY TERRITORIAL SERVICE
(UNIFORM).

Mr. Quibell asked the Secretary of
State for War, whether, in adopting the
new Auxiliary Territorial Service uniform,
arrangements will be made to ensure that

there is no waste of any of the old type
uniforms now in stock?
Captain Margesson: Yes, Sir.
HOME GUARD.

Mr. Isaacs asked the Secretary of State

for War whether he has considered, or
will consider, the advisability or practicability of making it a condition of membership of the Home Guard that members

must accept an obligation to attend a
fixed minimum number of attendances at
parades each week or month, in view of

Mr. Greenwood: It would be impossible

connection with post-war problems. The
only, survey which is receiving financial

support from the Government is the

Social Reconstruction Survey instituted
under the auspices of the Nuffield College

authorities. Full particulars of the personnel employed by the Survey and of
the financial support which the Government is providing towards the expenses
of the Survey were given in my answer
to the hon. Member for Cambridge University (Mr. Pickthorn) on 2nd July.
Mr. Daggar asked the Minister without

Portfolio whether, in a consideration of
to deal with the

it have

plans is intended to post-war regard situation, to the

recommendations of the Royal Commission on the Distribution of the Industrial
Population; and whether he will consider
such plans to be of immediate importance
and urgency?
Mr. Greenwood: The Government have

of the on
had under

already Report Royal Commission consideration the the

Distribution of the Industrial Population

Written Answers

Written Answers

29 JULY 1941

1265

the light of the changes in the indus-

in situation since the report was pretrial pared Plans for dealing with the post-

situation in this and other fields are

being war examined with full regard to the
importance of the issues involved.

Mr. Daggar asked the Minister without
Portfolio whether it is proposed to await
the result of any post-war reconstruction
surveys before laying before Parliament

plan for dealing with the problems
any that will arise after the war, such as unemployment due to the existence of special

areas; and, if not, when it is proposed to
produce such plans for discussion in the

explore the possibility of arranging for the
transfer of these men from enemy countries to Switzerland?

Mr. Law: If my hon. and gallant Friend
means a one-sided arrangement under
which, while the British party are transferred to Switzerland, the German party
are to remain in British hands, there is no

ground for supposing that the German

Government would accept it. His

Majesty's Government are, however,

examining every possibility of overcoming
the transport difficulty which is the main

complete all the preliminary investigations
which are necessary before any plans for

with
are prothe House, and they

dealing duced to post-war problems in particular

a full study

-

before
are issues making involved
producing of all the plans complex for

dealing with unemployment.

MEDICAL SUPPLIES, HANKOW.
Mr. Nunn asked the Secretary of State

for
Affairs aware
that British at
Foreign the dispensary whether he Hankow is has

been obliged to close down its business

-

obstacle to any arrangement on a
reciprocal basis.

House?

Mr. Greenwood: The Government will

1266

GREAT BRITAIN AND SPAIN.
Mr. Shinwell asked the Secretary of
State for Foreign Affairs whether the
recent speech by General Franco has been
the subject of communication between His
Majesty's Government and the Govern-

ment of the United States of America;
and whether it is proposed to take any
action.

Mr. Law: The answer to the first part
of the Question is in the affirmative. Hon.

Members will be aware that General
Franco's speech has already been the sub-

of at con-

ject of a statement

owing to the refusal of the Japanese

Acting Secretary State by the I have United his Press at States

authorities to permit the shipment of essential supplies; and whether he will take up
the matter with the Japanese Government
and also with the International Red Cross

nothing to add to the statement which my
right hon. Friend made on 24th July.

ference on 23rd July. present
Mr. Shinwell asked the Secretary of

made to

State Affairs whether he has

Society?

Mr. Law: The Hankow dispensary
ceased business last April owing to diffi-

culties arising out of the closure of the
Yangtse. Special efforts to helprathis
British firm were made by His Majesty's
Consuls-General at Hankow and Shanghai,
and some shipments of medical supplies
were permitted to Hankow for the dispen-

sary. Owing, however, to great delays,
and to the fact that no miscellaneous goods
were allowed to be shipped, the turnover

for any Foreign representations the Spanish

Government on the recent speech by
General Franco; and whether any reply
has been received?

Mr. Law: No, Sir. The attitude of His
Majesty's Government should, however,
be clear to the Spanish Government from
my right hon. Friend's statement in reply
to the hon. Member for East Wolverhampton (Mr. Mander) on 24th July.

became insufficient to keep the firm in
business.

CIVIL DEFENCE.
EMERGENCY MEDICAL SERVICES.

PRISONERS OF WAR
(REPATRIATION).

Sir A. Knox asked the Secretary of
State for Foreign Affairs whether, pending

an agreement for the repatriation of
badly-wounded prisoners of war, he will

Sir H. Morris-Jones asked the Minister of
Health what progress has been made with

the recently

forproposal,
the services
1,000
securing announced
of by doctors him,
from the United States of America to help

in the medical services of this country?

1267

Written Answers HOUSE OF COMMONS

Written Answers
1268

Miss Horsbrugh: The scheme to which
my hon. Friend refers has not yet become
fully operative. According to information
recently received from the American Red
Cross some 80 United States doctors who

have applied under the scheme are at
present being considered for acceptance,
in addition to one who has already arrived

is at work
and
incivilahospital
and
four who are on their way to this country.
CAMOUFLAGE.

Sir J. Graham Kerr asked the Home
Secretary what steps are taken to ensure

Men and
boys-I4,204,000,
141,000
deposit
contributors,including
Women and girls-7,243,000, includ.
ing 155,000 deposit contributors.
The total sum paid out in benefits in the

year ended 31st December, 1940, was
£34,197,000, the accumulated funds at
the 31st December, 1940, amounted to

by or on to

£146,799,000, and the amounted invested
£61,224,000. behalf The of Approved expenditure Societies in the

year ended 31st December, 1940, on sick.
ness,
was:-disablement and additional benefits

that experimental results obtained by

Service Departments in relation to

Men

camouflage are made known to other

camouflage are discussed by the technical
sub-committee of the camouflage committee
which has met regularly at frequent intervals since its formation and on which the
Services Departments are represented.

NATIONAL HEALTH INSURANCE

Mr. Thorne asked the Minister of
Health how many people came under the
health insurance system in Great Britain
and Northern Ireland for the year ending
1940, giving separate figures for men and
women; how many rank as deposit con-

tributors; the total income paid out in
benefits; the accumulated funds; the
amount invested by or on behalf of the
approved societies; the expenditure on
sickness and disablement benefit, giving
separate figures in weeks and separate
figures for men and women; expenditure
on additional benefits in cash and other
benefits; the amount standing to the credit
at

or how

number of societies of societies the last branches; valuation; the many total

societies had deficiencies, and their membership; and how the deficiencies were
made good?

Miss Horsbrugh: The figures
are respect of Great
below
is in Britain given as
it not possible in the time available to
include those for Northern Ireland At
31st December, 1939 (the latest date for
which such information can be given), the

number
of insured persons was as
follows:-

t

Sickness benefit

Disablement
benefit.

£

Mr. Mabane: All results obtained by the

Services from experimental work in

Total

8,114,000
3,781,000

4,024,000

1,479,000

304,000

2,029,000

/

Departments interested so that the country

may obtain full value from such results?

Women

12,138,000
5,810,000

Additional benefits
Cash

Non-cash

1,783,000
2,416,000

(Separate figures in weeks are not available).

As regards the remaining parts of the

Question, the fifth valuations of the
approved societies will be completed during the coming autumn, and it is expected

that a short report by the Government
Actuary, incorporating some statistics of
the results, will be available early next
year.

INDIA (AEROPLANE ENGINES).
Sir W. Smiles asked the Secretary of
State for India whether any aeroplane
engines are now manufactured in India?
Mr. Amery: No, Sir.
HOUSEHOLD WASTE
(COLLECTION).
Mr. Evelyn Walkden asked the Parlia-

mentary Secretary to the Ministry of
Supply what were the amounts of kitchen
waste collected by each local authority in
the months of January and June, 1941, in

the counties of Lancashire, Surrey and
Yorkshire?

Mr. Harold Macmillan: The following
list gives the tonnages of kitchen waste
food sold during the months of January
and June, 1941, by those local authorities
in the Counties of Lancashire, Surrey and
Yorkshire who are making collections:-

29 JULY 1941

Written Answers

Written Answers

269

Tons sold.

LANCASHIRE.

Esber

Liverpool

38

182

224

Manchester
Oldham

Guildford
Hambledon

85

Preston

7

9

Rochdale

-

Total

25

I

Southport

11

14

10

I

Salford

58

-

Godstone

29

7
21

388

517$

15

9

Warrington

Rural Districts

170

92

28

Woking

2

Bury

13

9

4

Merton and Morden

19

Burnley

-

Frimley and Camberley

Haslemere

8

Bootle

5

2

5

5

58

Bolton

9

21

-

Farnham

32

43

18

1

31

26

50

6

Blackburn
Blackpool

Carshalton

Coulsdon and Purley

9

-

January. June.

Urban Districts

Tons sold.
June
January

County Boroughs

1270

60

82

YORKSHIRE

Wigan

Tons sold
Boroughs

County Boroughs
Barnsley

Bradford
Dewsbury
Doncaster

7

24

I

-

#

2

4

6

1

Hoyton with Roby
Kearsley

It

3

Oswaldtwistle
Ramsbottom

3

I

17

West Houghton

2.

IO

10

Pudsey
Redcar

-

12

20

Ripon

-

17

This

-

Tyldesley
Urmston

-

Scarborough

4

9

Todmorden

Whitefield

Ig

19

17

Ossett

4

Thornton Cleveleys

14

10

Keighley
Morley

6

61

10

-

Harrogate

2

130

105

-

Brighouse
31

31

41

Bridlington

I

Horwich

46

13

164

Boroughs
Batley
Beverley

5f

8

Fulwood

338

38

1

2

Denton

Droylsden

297

2

Brierfield

Leeds

Sheffield
York

2

-

Adlington

190

Middlesbrough
Rotherham

-

Abram

255

3

Urban Districts

55

Hull

5

Stretford

10

I

-

Radcliffe

Halifax
Huddersfield

33

32

6

-

Nelson

27

I

5

Fleetwood

10

11

8

133

9

15
16

Farnworth

150

8

12

7

12

12

7

Crosby
Darwen

51

18

8

441

Accrington
Colne

January. June

4

Urban Districts

Featherstone
Guisborough

25

20

18

153

61

10

Flaxton

-

30

Total 1,103 1,240
6

-

Rural Districts

to

I

26

Wath-upon-Dearne

-

2

9

37

2

31

Sowerby Bridge

Wombwell
Worsborough

I

41

I

22

15

was

2

-

-

I

Sutton and Cheam

Stanley

I

Reigate

Surbiton

Silsden

28

131

16

2

5

Malden and Coombe

3

19

Kingston-on-Thames
Mitcham

1

Guilford

Rothwell

I

Epsom and Ewell

Godalming

1

15

2

6j

Shipley

Beddington and Wallington

16

I

Barnes and Richmond

-

Ilkley
Mexborough
Mirfield
Rawmarsh

1

57

Boroughs

I

January. June.
County Borough
Croydon

-

Hoyland Nether

Tons sold

-

I
I

SURREY

48

I

I

1,074

-

4

590

5

Total

Baildon
Bingley
Castleford
Denholme

5

-

Blackburn

6

Rural Districts

441

Written Answers

1271

HOUSE OF COMMONS

Written Answers
1272

PETROL COUPONS (THEFT,
MORDEN).

Mr. Thorne asked the Parliamentary
Secretary to the Ministry of War Trans-

volunteers for training sufficiently in
vance
I am

it to meet the demand
should of be their possible needs, satisfied that ad.

for milkers in full.

whether he can any

in

port connection with give the 300,000 information petrol

GERMAN SCHOOL-BOOK.

coupons that were stolen from the Depart-

ment's office at Morden, Surrey, on
Thursday last?

Colonel Llewellin: Some 43,500 coupons

to the value of about 250,000 units of
motor fuel were stolen. I am pleased to

inform the House that practically the

-

whole of the coupons have been recovered
and that an arrest has been made.

AGRICULTURE.
WOMEN'S LAND ARMY.

Major Leighton asked the Minister of
Agriculture what number of members of

the Women's Land Army have been
placed in employment during recent

Mr. Boyce asked the President of the
Board of Education whether he is now
in a position to make a statement regard.

ing the removal of the pro-Nazi book,
Das Neue Deutschland, from the list
of those prescribed for the Oxford and
Cambridge Higher Certificate for 1942?

Mr. Butler: Yes, Sir. I am informed
that, in deference to the views of the
Board of Education, the Oxford and
Cambridge Joint Board have decided to
withdraw the book in question.

DOCKYARD APPRENTICES (PASS
LIST).

Sir A. Maitland asked the Financial

weeks; and whether that employment is
temporary or permanent in character?

Secretary to the Treasury on what
grounds the editor of the Sheerness

Mr. Hudson: During the month of May,
1,678 members of the Women's Land

of the successful candidates at the recent

Army were placed in employment in
England and Wales and, during June, a
further 1.801 members. No member of
the regular force of the Women's Land
Army is placed in employment except on
the understanding that the work will be
regular throughout the year.
MILKING INSTRUCTION

Sir G. Jeffreys asked the Minister of
Agriculture the number of members of the

Women's Land Army or women unattached thereto who have since the start

of the war, learned or been taught how
to milk cows; and whether he is satisfied
with the measures of extension of this
knowledge?

Mr. Hudson: No exact analysis of

Women's Land Army trainees is avail-

able, but it may be taken that of the
15,000 members of the Land Army now at
work, approximately one-half are in employment which includes milking. I am

not in a position to give information

about women outside the Women's Land
Army who may have gained experience
in milking since the outbreak of
to provide
tion farmers will able milking war. instruc- If
apply for Women's Land Army

Times and Guardian was refused a list

open competitive examination for the
entry of apprentices for His Majesty's
dockyard?

Captain Crookshank: In view of the
paramount necessity for paper economy,
it was decided to reduce to a minimum
the number of copies of this list to be

printed, as it is a document of 70-80
pages. Candidates themselves do not
receive a copy of it, but only an extract
giving details of their own performance.
No copies were furnished to any news
papers.

HEYSHAM-BELFAST STEAMER
(SAILING TIMES).

Dr. Little asked the Parliamentary
Secretary to the Ministry of War Transport whether, in order to lessen the time
required for the journey from London to
Belfast, via Heysham, which is causing
much discontent. he will arrange for the
train from Leeds to arrive at Heysham
shortly after the train from London, thus
obviating a considerable wait there?
Colonel Llewellin: I am informed that
the intervals between the arrival of the

three trains connecting with the boa

29 JULY

Written Answers

Written Answers

1941

1274

1273

Heysham are arranged so as to
ensure from sufficient time for the completion

the formalities necessary before

of embarkation, and that it is impracticable the

reduce the interval between

to arrival of the first train and the sailing
of the boat. I am ready to discuss the
matter with my hon. Friend, as it is, of
course, not in the general public interest
or in the particular interest of passengers
on these boats to discuss in public the
times of sailing.

-

ROYAL NAVY (CONVOY
SIGNALMEN).

Lieut.-Commander Gurney Braithwaite asked the First Lord of the Admiralty whether he is now in a position to
make a statement regarding facilities for

to pass the

of yeoman after

convoy rating leading convoy signalmen of signals for

a suitable period of sea service?

Mr. Alexander: Yes, Sir. It has been
decided to provide these facilities as soon

as practicable. It is hoped to promul-

July, 1941, was on the roll of employees
available as pilots, or, if the total number
cannot be given, what percentage of the
above-mentioned roll was represented by
the total of each rank as classified?

Mr. Montague: It would not be in the
public interest to disclose the number of

pilots employed by the Air Transport
Auxiliary. Percentages of the total num-

ber of employees holding the ranks
classified on the 2nd July, 1941, represented by the total of each rank and the
percentages available as pilots are as
follows:-

Captain, 1.8 per cent., of which 52.5
per cent. are available as pilots.
Junior Captain 3.2 per cent., of which
100.0 per cent. are available as pilots.

First Officer, 42.5 per cent., of which
90.9 per cent. are available as pilots.
Second Officer, 20.6 per cent., of which
73.0 per cent. are available as pilots.
Probationary Cadets, 31.9 per cent., of
of which 100.0 per cent. are available
as pilots.

gate details shortly.

AIR TRANSPORT AUXILIARY.
Mr. Garro Jones asked the Minister of
Aircraft Production the total revenue of
the Air Transport Auxiliary Service in
each quarterly or other convenient period
for which records are available and the
source of that revenue?

Mr. Montague: I would refer my hon.
Friend to the answer which I gave to-day

in reply to a similar Question on this
matter.

Mr. Garro Jones asked the Minister of
Aircraft Production what total number of

each rank of Air Transport Auxiliary
Service employees, as classified on 2nd

-

CEYLON (IMMIGRATION).
Mr. David Adams asked the Under-

Secretary of State for the Colonies
whether he can make a statement on the

position of immigration into Ceylon of
non-Ceylonese labour?
Mr. George Hall: Discussions have been

proceeding for some time past between
the Governments of India and Ceylon re-

garding the immigration of Indian

labourers into the island. A conference

was held at Delhi last November, in
which representatives of both Governments took part, but no settlement was
reached. There is reason to hope that
negotiations may be re-opened in the
near future.

Supply: Committee

1275

HOUSE OF COMMONS

-Production
1276

The Prime Minister (Mr.

ORDERS OF THE DAY.

22nd
this year I
House January of Churchill): explained On to

the the system of

at
my
be
those
who
gotten is the
which it was

SUPPLY.

adopt. and production I have administration proposed to

stated these in detail and

[17TH ALLOTTED DAY.]
Considered in Committee.

length, studied and again I hope by statement have may for-

is the to

[SIR DENNIS HERBERT in the Chair.]

CIVIL ESTIMATES, 1941.

which, followed it, in since, because general and it it system system we have

and in principle, I propose to adhere. Changes in personnel are

UNCLASSIFIED SERVICES.

caused from time to time by the of

in are
of

MINISTRY OF SUPPLY.

events provement. and by Changes the duty machinery continual march im.

PRODUCTION.

experience, and,

Motion made, and Question proposed,
That a sum, not exceeding 90, be granted
to His Majesty, to complete the sum necessary

of
on
31st
day
for
penses exex-

to the which will come in course
payment defray of of March. the during charge Ministry 1942, the of year Supply. the ending salaries including and the

penses of the Royal Ordnance Factories.

The Chairman: There are on the Order

Paper to-day four Votes for four major
Ministries-the Ministry of Supply, the

Ministry of Aircraft Production, the
Ministry of Labour and National Service,

and the Admiralty. I understand these
Votes have been put down in the belief,
no doubt a correct belief, that the Committee desire to have a general and wide
discussion in Committee of Supply on the
subject of Production. The Rules of De-

bate in Committee of Supply would
normally make this quite impossible, but,

the be the
wish Committee, the Chair will
of

under emergency of the the circumstances period, if it and in view general

raise no objection. But I feel bound to
add that the very rapid, I might call it

these from

the in cause
exotic, Rules growth of Debate of Supply departures may

hon. Members, as well as the Chair, very
great trouble in future, when it becomes
necessary again to enforce some of these

Rules. I trust that the Committee, there-

fore, will bear in mind that this is not
merely an ordinary departure, but is an
extraordinary departure from our Rules
purposes an

the has

place
these I
come-and

taken for In view the of in rapid of growth emergency which period.

to bear this

Members the time has departures, in should mind-when like think hon.

to some in
have to

some be the given consideration making will probably alterations

Rules of Debate in Committee of

Supply.

we to learn.
is we
mind
and

while enjoined agreeable live by to the ought human naturally, Change gives
to

But,

if is convinced, and those to
ardent satisfaction, Parliament and anxious sometimes public short-lived, opinion.

whom it has given its confidence are con-

vinced,. that the system is working well
and smoothly, then I say change for the
sake of change is to be deprecated. In
war-time, especially in vast, nation-wide,
and in some respects world-wide organisa-

tion, continuity and stability must not be
underrated. If we were perpetually to be
altering our system or lending ourselves

too lightly to that process, we might
achieve the appearance of energy and
reform only at the expense of the authority
of individuals and only to the detriment of
the smooth working of the machinery, and

at a heavy cost in output, which is the
sole objective. Therefore, it is at the
point where I left off this subject when I
discussed it with the House in January
that I take up my theme to-day.

must the

There are two *main aspects in which
organisation production of planning be considered. and control, First, and,

secondly, the actual conditions present in
the factories. Let us see first of all what
was, and what is, the system upon which
the high administrative control of our war
effort proceeds. The foundation must, of
course, be a single, co-ordinated plan for
the programmes of the three Services
based upon our strategic needs. In my
capacity as Minister of Defence, without
which I could not bear the responsibilities
entrusted to me for bringing about a suc-

cessful outcome of the war, in that

capacity, I prepared for the War Cabinet
during the first three months of this year

a revised general scheme, bringing
together the whole of our munition pro-

29 JULY 1941

Supply: Committee

1277

the highest at
we to aim. purpose
and import programme, and pre-

duction which scribing ought reasonable For this target

I was furnished with the forward programmes of the various fighting Departments, very much in the same way as the
Service Estimates are brought before the
Cabinet and the Treasury in the autumn

in of proand

grammes time orally peace. I discussed in writing Chiefs these of with those the

Ministers and Service
Departments. The programmes were also
examined by my own statistical Depart-

now

of of
the

Lord and

the

ment Cherwell, under Professor through Lindemann, the machinery

peace-time which, the Office as Committee House the Minister knows, of Imperial embodies of Defence, Defence

organisation. The work of these organisations proceeds ceaselessly. The strategic

-Production

1278

I do not believe they bear any proportion
worth mentioning to their individual and
concerted efforts. It must be remembered

that a very high proportion of our war
production is carried out in factories work-

ing solely for one Department That is
naval
ing true firms, of aircraft ordnance factories, factories, automobile shipbuild-

factories and many others.

the the of

A system has also been worked out for
either to

ments, or, cases, to two or more

engineering allocation in firms, other of capacity single depart- private

Departments in stated proportions. Probably half the factories concerned and certainly more than three-quarters of the men
employed are working now, at this time,
for one single Department. The Admiralty

has its many firms, with their factories
dating from long ago and kept alive dur-

ing our rotten periods by Admiralty orders.

of

considered

mittee, which meets every day,

aspect production by the Chiefs is also of Staff continually to advise Com-

upon or direct the conduct of the war.
The general scheme, or War Supply
Budget for the year 1941, a series of
printed documents agreed with the Service
Ministers and comprising a perfectly clear

apportionment of resources and tasks,
received the final approval of the War
Cabinet on 31st March, and thereafter
became mandatory on all Departments.
There is. of course, no absolute finality
in this scheme. Within its general framework revision and adjustment under the

The Air Ministry has been striving for a
great many years to build up an aircraft
industry in this island pending the day
when Parliament should decide to have an
Air Force equal to any within striking dis-

tance of these shores. The War Office,
always in time of peace the drudge and
starveling of British defence, had its own
ordnance factories and was at last on the

eve of the war accorded a Ministry of
Supply and this Ministry of Supply has
of course extended over a very large part
of the remaining British industry.

At the point which we have now

pressure of events are continuous.

reached in our munitions development

So much for the framework of the
general layout. The execution of this

almost all firms and factories are working
under the complete control of the Government at the fulfilment of the approved and
concerted programmes. They are either

scheme on the military side is confined to

the three great Supply Departments,
namely, the Controller's Department of
the Admiralty, the Ministry of Supply and
the Ministry of Aircraft Production. The

work has been parcelled out, and it
remains for them to do it. The picture so
luridly drawn of the chaotic and convulsive struggles of the three Supply Departments, without guidance or design, is one

no doubt be to our
has no relation to
The question however arises

enemies, the which facts. will but happily pleasing

whether in their execution of the approved
scheme the three

been in on
through excess of zeal have

have the contrary, either wanting Supply energy. Departments or,

with each tres-

upon each other's There

passed quarrelled are no other domain. or have

doubt instances of friction at the

fringe of these powerful organisations, but

working directly or indirectly in the
sphere of war production, or they are ministering to our domestic and other needs.

In this domestic field also, however, a

very complete and searching organisation
under Government control has been instituted. At the present moment, the whole

industry of the country with inconsiderable exceptions, which may soon be linked
up and absorbed, is assigned its function

under Government authority. There are
no doubt a number of minor aspects of
our national life which have not yet been

effectively regimented. When and as
they are wanted, their turn will come. We

are not a totalitarian State but we are
steadily, and I believe as fast as possible,
working ourselves into total war organi-

sation. When we are given vivid in-

1279

Supply: Committee

HOUSE OF COMMONS

-Production

1280

[The Prime Minister.]
stances of lack of organisation or of interdepartmental rivalry in some of the shops

competent persons who work night and
day on both sides of the ocean, in this
sphere is, I am glad to say, steady and

and factories, and when these are all

progressive.

bunched together to make an ill-smelling

Now I come to the home scene. What
are the relations of the three Supply Departments in the vast fertile production
field of this busy island? I have already
said that for their chief production each of
the Fighting Services through its Supply
Department or Ministry to an overwhelm.

it is as well to

the of

posy, area just disputation is limited, remember circum- that

scribed and constantly narrowing.
In order to regulate the imports of commodities from abroad in accordance with

the policy prescribed by the War Cabinet, we have, as I explained six months
ago, the Import Executive comprising the
heads of the Importing Departments, and
presided over by my right hon. Friend the

President of the Board of Trade, and

formerly by him when he was Minister of

Supply. This is working very smoothly
and I am not aware of any troubles or
disputes which have arisen. I should certainly hear of these soon enough if there

were any. By the side of this Import

Executive we have the North American

Supply Committee with its elaborate
corresponding organisation in the United
States. We are always trying to tighten
up and make more precise and definite the
work of our Purchasing Commissions in
the United States. I should certainly not
pretend that there is not a great deal of
room for improvement and refinement,
but it would be a mistake to suppose that
the efficiency of our Purchasing Commissions under the supreme control of
Mr. Purvis has not reached a very high

level or that it is not constantly being
shaped and sharpened. A year ago, six
months ago, there were a lot of troubles
and discordances but latterly, although
again I should be the first to hear of them,

my information is that they have very
largely died away.

We have of course to come to very

clear-cut agreements with our American
friends and helpers. They are making an
immense effort for the common cause and

they naturally ask for the fullest and
clearest information about what is happen-

ing to their goods and whether there is
waste or misdirection. It is our duty to
satisfy them that there is no muddle, or
that muddle is reduced to a minimum and

ing extent commands its own factories and

labour. Nevertheless, there is an inevitable region of debatable ground of firms
which serve several Departments at once
Many of them are small sub-contracting
firms or firms which make components.
Besides this, a process of change is con-

tinually going forward to meet the
rapidly varying demands of the war. A

firm is resigned by the Admiralty and can

be transferred either to the Ministry of
Aircraft Production or to the Ministry of
Supply. Particular lines of production
acquire special urgency or importance as
we gain experience from the fighting or as
new ideas come along. One line of production dries up because it is no longer
needed; another opens or grows in scale.

Obviously there is rivalry in this part of
the field between the Supply Departments.
There ought to be rivalry and there ought
to be zealous competition within the limits

of the programme prescribed. It is this
zealous competition, limited though it be
to a fraction of our industry, which presents the hard cases and sometimes the
bad instances of which so much is made.

It is among other things for the purpose of resolving the disputes and rivalries

of the Departments in this limited field

that the Production Executive was called

into being in January. The Minister of

Labour, himself a contributory factor as
Minister of Labour to the work of the rest
of the Executive and himself a Member
of the War Cabinet, presides over a committee of six, three of whom are the heads
of the Supply Departments, and the other

two are the President of the Board of
Trade and the Minister of Works and
Buildings. As I explained to the House

ordering of imports and of the British

six months ago, all the members of this
body have every interest to agree. They
may have different interests to advocate
because they have different duties to discharge, but it is a delusion to suppose

purchases in the United States, and in
the relations of the very large number of

sponsibility and try to work together for

that they are getting value for their
money. We welcome their criticism because it is at once searching, friendly and

well informed. The improvement in the

that they do not feel a corporate re-

1281

29 JULY

Supply: Committee

and for the execu-

the programmes

the tion common of purpose approved

entrusted to them. If they agree they
have the power to act. Each can make
his contribution to the common action
immediately and the movement of labour
and materials can be ordered there and

then. If there is a difference which
cannot be settled by agreement or compromise, any Minister of Cabinet rank,
and they are all such, has the right of
appeal to the War Cabinet, or, as between

the Service Supply Departments, in the
first instance to me as Minister of Defence.
During my tenure I have seen some very
sharp differences but those differences have

now no

never been so sharp as they were, as I
well remember having lived through it, in

the of the last war. All I can
or

question days is that of departmental for the last four rivalry months dis- say

pute has been brought to me or the War
Cabinet from the Production Executive.
I give the assurance to the House to-day
that in the high controlling organisation
there is now no dispute in progress about

priorities of labour, raw materials, fac-

tory space or machine tools. Do not

suppose however that this remarkable
fact is the result of inertia or decay. On
the contrary, as I shall show before I sit
down-I am afraid I shall have to make
a somewhat prolonged demand on the
patience of the Committee, the subject is

-Production

1941

1282

principle, and priorities are becoming
little more than a stimulus upon its de-

tailed assignments.

It is at this point and in this setting that

I will deal with the suggestion that a
Ministry of Production should be formed.

Several speakers referred to this in the
recent Debate, and apparently it is regarded by some of our most

newspapers as an easy and solu-

tion of difficulties.
speedy
important
our There
is however
a difference among the advocates of a
Ministry of Production. Some ask that

there should be a complete of
of the

or or

the
Air Departments
theSupply
Ministry
and themerging
War Admiralty,
be one

that shop, there vast should Department great Office, emporium common and

serving all fighting needs. That would
be very pretty if we were not at war.
Others, recoiling from the frightful disturbance and confusion which would
accompany the transition and the danger
of upsetting so much in the midst of war,
are content to ask for one Minister, presumably assisted by a secretarial staff,

who should be interposed between the
Prime Minister and Minister of Defence

and the three Supply Departments.
Nothing would be easier than for me to
gratify this request by asking one of my

colleagues in the War Cabinet to call
himself Minister of Production and to
duplicate the work of general apportion-

of great importance and must be dealt
with comprehensively-production in all
its forms is gaining steadily and swiftly,

ment which I already do. But, so far

present high altitude, in momentum.

cause of delay.

not only in volume, but, even at its
I may say, while I am on the point,

that much of this talk about the difficulties

of settling priorities is a back number.
The whole business of priorities has under-

gone a complete transformation. We

have no more of these arrogant, absolute

priorities in virtue of which one Departall that there was of

and left the

lesser ticular ment claimed commodity nothing for a par-

the IA is still mainparticular of

for indispensable priority needs of others.
tained Although but largely

as aircraft, and tanks it

for tion certain such psychological spheres reasons, produc-

exercised in the manner

war or in the of

from helping me in my task, or helping
the Departments in theirs, this would be
an additional complication, burden and
Moreover, the relations of this Minister
of Production with the three Supply De-

partments would be most unsatisfac-

tory. He would either have to trust
them and use them, as I do, for the pur-

pose of executing the prescribed programmes, or he would be left to break
into these Departments, interfere with
their work and try to get things done by
his personal exertions. The Ministers at
the head of these Departments are men
of energy, experience and knowledge.
They work night and day, and they have

powerful, far-reaching, swift-running
machinery at their disposal. If, in the
sphere assigned to them, they cannot

is of this, no the longer The last early crude months now,

execute the programme with which they
are charged, I do not myself see how a

to a large extent replaced the scale of
priorities.
Allocation is the governing

super Minister from outside, with his
skeleton staff, could do it for them. If

method of allocation of labour.
materials, and facilities has modified and

1283

Supply: Committee

HOUSE OF COMMONS

[The Prime Minister.]
the new Minister's control were nominal,
and did not affect the Ministerial respon-

sibility of the heads of the Supply Departments, it would be a farce and a fraud
upon the public to which I will not stoop.
If. on the other hand, the Minister of Production attempted to lay strong hands on

the internal administration and day-today work of these Departments, they
would confront him with a knowledge
superior to his own and far more intimate,

and all the resulting differences would

have to come to me, with very great fric-

tion to the administrative machine and
additional burdens upon the head of the
Government.

Furthermore, these matters cannot be
considered without reference to the personalities involved. I have not been told
who is to be this superman who, without
holding the office of Prime Minister, is to
exercise an overriding control and initia-

-Production
128

are many things that go wrong and ought

senses
of
superbe
hethe

to be put right, but does anyone in his

up cases breakdowns
the the suggest hard Minister, that this that should and should take task

by direct intervention from above? All

he could do would be to refer complaints

the to

or scandals that came to his notice to
the heads of the three Supply Depart-

ments, not

he, no power to remove or

having Ministers and, if he involved, did would get satisfaction, have change

come to me, on whom rests the respon-

sibility of advising His Majesty in such
matters.

For good or ill, in any sensible organisation you must leave the execution
of policies already prescribed to the responsible Ministers and Departments. If

they cannot do it, no one can. It is to

them that complaints should be addressed

Supply and the three Ministers of Supply.

It is to them that Members should write
Any case of which full particulars are
provided-I must add that proviso-will
be searchingly examined. We do not

Where is the super-personality who, as
one of the members of the War Cabinet,

stand here to defend the slightest failure
of duty or organisation. But let us have

tive over the three Departments of

will dominate the vast, entrenched, established, embattled organisation of the Admiralty to whose successful exertions we

owe our lives? Where is the War
Cabinet Minister who is going to teach the

present Minister of Aircraft Production
how to make aircraft quicker and better
than they are being made now? Who is
the War Cabinet Minister who is going
to interfere with Lord Beaverbrook's con-

trol and discharge of the functions of
Minister of Supply duly and constitution-

ally conferred upon him? When you

have decided on the man, let me know
his name, because I should be very glad
to serve under him, provided that I was

satisfied that he possessed all the

Napoleonic and Christian qualities attri-

buted to him. In the conduct of vast,
nation-wide administration there must be
division of functions, and there must be
proper responsibility assigned to the de-

partmental chiefs. They must have the
power and authority to do their work, and
be able to take a proper pride in it when

it is done, and be held accountable for
it if it is not done.
Moreover, as I have tried to show, such

as exist are the

out in the a

difficulties summit but not country found at in

minority of smaller firms and factories.
I do not for a moment deny that there

the facts. A kind of whispering campaign has been set on foot; there is
flood of anonymous letters. Vague and
general charges are made. And all this
fills our shop window, greatly to our detriment. It is impossible for me, within the
limits of this Debate, to deal with various
specific allegations which were made by
Members in different parts of the House
in the two preceding days of this Debate.
Such a treatment of the matter would
be entirely out of proportion, and I should
have to trespass upon the Committee altogether unduly.
I turn aside, however, for a moment to

deal with one particular aspect of the
problem of production, namely machine
tools. The Times," in its leading article
this morning, makes the valuable sugges-

tion that a census of machine tools

throughout the country should be held.
There have already been three-in June,
1940, in November, 1940, and a partial

census of the principal firms in June,
1941. The Supply Ministers are responsible for the use of machine tools to the

best advantage. There is, however, a.
controller of machine tools, Mr. Mills, a
business man of the highest repute, whose
sole duty is to supervise their employment

by all Departments. By the joint agreement and good will of the three Supply

1285

Supply: Committee

29 JULY 1941

Departments, this gentleman has independent powers. He has his own repre-

sentatives throughout the country.

-Production

1286

part of our common organisation for war

production has been more thoroughly
and
examined than the
of tools. No one can be
precisely right
hon.Member
engaged, question
asmachine
my Friend
the
for

Although he is actually under the Ministry
of Supply, he can remove any machine
tool that is idle from any Department or
factory and transfer it to another, and he
is continually exercising these powers. He

day without feeling that this is, as it

exercised them on several occasions against

were, the ganglion nerve, the centre of the

the late Minister of Aircraft Production

whole of supply. I said just now that I
cannot go into details of many of the

before the recent changes in the Govern-

ment took place. This functionary is
given these powers with good will by
people who wish to submit their Depart-

ments to his use of them.

There are, however, three limiting
factors in the use of machine tools. The

first is any shortage that may exist of
skilled labour, which we are striving by
every method to overcome. The second is
the undoubted difficulty we have found in

(Mr.

Carnarvon knows, in Boroughs munition production Lloyd for George) one

cases which hon Members brought up in

the Debate. If they will write about

them, they will be gone into in detail.
There was, however, one charge made

as
and
it
affects requires

by my hon. Friend the Member for

North Aberdeen (Mr. Garro Jones) which,
it has the United had wide States publicity supplies, as

to be answered. My hon. Friend said:
The sad feature of the United States

working to the full extent night shifts
under conditions of air attack. It is the
third limiting factor which gives rise to

supply of aircraft is that whereas orders were
energetically placed in the last two years or
more for airframes and engines, those who

the complaints which are made. I am not
an expert in these matters, but I am told
that there are between 200 and 300 kinds

that supplies of maintenance equipment and
ancillary equipment were provided. What is
the result? Of one type of aircraft imported
from the United States, complete and operationally ready, there are several hundreds or
were a few weeks ago-lying unpacked in
inland warehouses, in their crates, for the sole
reason that those who placed the orders on

of machine tools in our census. Their
effective use is governed by certain precision machine tools of which there is a short-

age. I need not say how intense are the
efforts to break down these vexatious
bottle-necks. Moreover, the precision
tools of which there is a shortage vary
sometimes with the varying demands of
war production, and sometimes the block
is found here and sometimes there. Thus,

when people go about the country and
see at some garage or factory or in some

small firm a number of machine tools
of the lower grades, or of peace-time
specialised types, lying idle and write to
their Member about it, the explanation is
not that the supply of machine tools is not
organised to the highest degree, not that
the Government do not know about these
machine tools, where they are and what
they are, not that they do not in general
know about them and have them on their

census list, it is because, owing to the
shortage at key points of special precision

types, many of these tools cannot be
brought into action, and there would be
no sense in crowding out the factories with
redundant machinery.

That is a digression which I have made
because I have read with some interest
the thoughtful article which appears in the

Times this morning. Hardly any

placed them forgot at the same time to ensure

behalf of the Ministry of Aircraft Pro-

duction did not order the necessary ancillary

equipment."-[Onn REPORT, 9th July,

1941; col. 204, Vol. 373-]

So far as aircraft on British orders are

have en-

concerned, this statement is quite untrue.
All

British always orders been placed for American with spare aircraft

gines and spares for airframes. There
has been no failure or oversight of this
kind in ordering British aircraft.
The mistake into which my hon. Friend

has fallen arose from an exceptional
event. When the French collapsed, all
their contracts for aircraft in the United
States were taken over immediately, for
what they were worth, by the Minister of
Aircraft Production. There was not an
hour's delay. These aircraft had to be
accepted in the condition in which they

were prepared for the French, under
French orders. This is the case to which

I am sure reference was made in this
passage of my hon. Friend's speech. They

had to be accepted in the condition in

which the French had specified them and

in which they were delivered by the
American manufacturers. This was a
windfall, but it had its drawbacks. For

Supply Committee

1287

HOUSE OF COMMONS

[The Prime Minister.]
instance, the French Tomahawks arrived
without spare engines or spares for their

airframes, exactly as my hon. Friend

pointed out. They were built to take

French guns. Their wireless sets did not
tune with ours. Their instruments were

on the metric system. They were not
armoured according to our conditions.
They differed in many ways from our
methods of control and manoeuvre. Instead of pushing some lever forwards, you
had to pull it backwards, which our pilots
found most inconvenient.
As swiftly as possible these aircraft have
been modified and brought into use. The

cannibal system was frequently resorted to of necessity, leaving lots of them

partly gutted, but practically all of these
French American aeroplanes are in use
and have been most satisfactory in opera-

tion. Now there is the whole of that

story that has been paraded as a typical
scandal and example of how we do our
business.

Mr. Garro Jones (Aberdeen, North)
No one would be more delighted than I
to feel that British aeroplane orders were
complete with operational equipment. My
right hon. Friend has told the Committee
that the types ordered for the French were
not complete with operational equipment.
Did I understand him correctly to say that

the types ordered for British use were
complete with their operational equip-

ment?

The Prime Minister: Yes, I said that as

plainly as I could. I said that the suggestion that they had not been ordered
with their operational equipment was untrue, and I adhere to it. Everything that
has been ordered on British account has
been ordered complete. The aeroplanes
ordered on French account were lacking
in this equipment. An inquiry addressed
to the Minister concerned would have
elicited an immediate explanation, but
when allegations of this sort are given the
utmost publicity in Parliament by a Member speaking from the front Bench opposite, uninformed American readers-here

is where the serious part comes-must
come to the conclusion that there is disorganisation and incapacity in the conduct
our

so to be

opinion, of munitions damaging business, us, would and this

understanding. based entirely on It misconception is not, I am and glad mis- to

-Production

1288

say, shared by the American authorities
I presided at a recent meeting attended

by Mr. Harry Hopkins, the Lease-Lend
authority, to whose words we listened
with so much comfort the other night.
He, with his full knowledge and attended
by expert American officers, dwelt upon

the trials and difficulties attending the
modification of aircraft from the United

States on French account and expressed
satisfaction with the arrangements we had
made to overcome them. But outside this
circle, who know all the facts, inside the
United States, where there is a vigorous
campaign against the policy pursued by
the President and the majority, I fear that

harm has been done, and it cannot be
easily overtaken or healed.
What are the other elements which pro-

duce oscillations or discordances in the
process of production? They arise, of
course, out of the changing conditions of
the war. As new needs arise, new direc-

tions have to be given, which undoubtedly cause disturbances in the flow
of production, but I must say I have the
feeling that the British machinery of production, vast and intricate though it be,
is capable not only of flexible adaptation
but of sustaining successfully a number
of inevitable jerks. These take place, for
instance, largely in the sphere of aircraft

production. The Minister of Aircraft

Production explained to the House on the
second day of this Debate the constant
changes in the design of aircraft which

arose from the progress of our aeronautics and our experience of manufacture

and war. He showed how it was sometimes inevitable that there should be a

break in the continuity of production
because one type had failed and another
had proved itself, because one type was
being faded out and another being worked
in, and how this must happen when you

run the risk of ordering off the drawing
board and carrying out large orders on
the basis of the pilot model without having
the time to go though all the processes
which in peace-time make the completion
of the aeroplane from the moment of its
conception a matter of five or six years.

It is a difficult question to decide when
the mass production of a particular type
should be discarded in favour of a new and

better type, and to what intensity such a
process of transformation should be car-

ried. I think on the whole, at this

29 JULY

Supply: Committee

1289

-Production

1941

1290

craft
of
athe
slowly
work
to
may
be discarded after too a run at the

and constructive. I have read the Seventeenth Report of the Select Committee

peak level-no
doubt for very good
fine reasons, greater bomb

conditions admittedly in satisfactory. with These the

moment, we have carried it a bit far. Airup particular peak of type short production which

so

National Expenditure. It deals on

filling factories.
are farthefrom

Since the war began great
in

to meet the

without been built time out-of-the-way factories districts, have
capacity, Simplification reasons, very greater and continuity speed and of serial forth. pro-

the

duction are, of course the basic factors
necessary in securing flow of output, and
it is a question of balancing between the

They amenities have of working population. needs and

mastery of the air, leadership and com-

their Although millions
full of proper
standards.
many
shells
theremaking
are still
several

mand
be
achieved a interminable error of

two sides. All the same, believe me,
in except design by cannot process possibly of

old
comes
You cannot even you
types. trial and Something afford to and miss better the it, scrapping along. if

have to pay, and pay heavily, in numbers
of output or dislocation in a section of the
workshops. The struggle for air mastery

requires vast numbers, but those vast

numbers could not succeed alone unless

not by any means yet reached
capacity and
we have been

millions of shells and their components,
including fuses, which are not yet filled.

no need for
exertion,
for But greater there
is because alarm, in but this rather war

we
are
at
men
as
m war, so at Nor
wefiring
a great
have the last
shells battlefront largely ground. and not,

are on an enormous

we are not on scale.

scale, engaged. but We making firing continuously any

It is important to remember in the battles

the forward leading types constantly

in the desert the difficulties of getting

achieve the highest level of enterprise and

ammunition to the places where the guns
are, and since the front in France broke

perfection. Combat in the air is the

quintessence of all physical struggle. To
lose primacy in the quality of the latest
machines would be incompatible with the
attainment of that command of the air in
quality and in quantity upon which a large
part of our confidence is founded.
am glad to tell the Committee that our
spring and summer fashions in aircraft

ary than were
are year

this German production farther ahead of contempor- they
year.

ourawhen
he
and we

felt ideas last from The fighter enemy aeroplanes borrowed many

too, but in the

we confronted him in with

borrowed have their from mettle him year ago, upshot

which in

and, above armaour with
even
an
sense
and ments have left added,
pilots gun of
technical the old,

fighter speed, ceiling aircraft all, performance, 1941

would take too to

as I could of the
causes of oscillation

superiority describe, smaller easily It do, some long

of the and

supply the
execution Navy
which show
Army affect
programmes.
I could
in a

would the Com-

a certain measure of

with way mittee which that I think satisfy change,

resulting dislocation, is inevitable

strenuous
conditions
of but
I under
do
the
war,
not propose to enter upon either of
those fields to-day.

Let me come, on the other hand, to
an example of criticism which is helpful
No. 91

down there is no field of fire for our
artillery. Therefore, what we have witnessed is not, as in the last war, as I

so me,
asthehon.
of intense
to

Friend know effort to before feed well the and guns did from feeling my day right day,

but we are piling up large and satisfactory
reserves with no corresponding outflow to

drain them off at the present time. Let
me say nothing which would in any way
remove from the minds of those engaged
in the filling factories the view that catching up with the filling of the already large
stores of components, fuses and shell-cases

is not a work of prime and high order and
of national importance.
Representatives of the Select Committee visited the filling factories in June and

they produced a number of extremely
shrewd and valuable suggestions dealing
with transport, hostels, canteens, Sunday

work and piece-work. We agree with
nearly all of them. We will adopt almost

all of them. We agree with them the
more readily and we can adopt them the
more speedily because, as I see from the

records, on 7th January and on 5th

February, in my capacity as Minister of
Defence, I presided over two successive
meetings of the Supply Committee on this
very subject. Almost every one of these
proposals had already been ordered to be
put into operation months before, and has

been or is being carried into effect with
C

Supply: Committee

1291

-Production

HOUSE OF COMMONS

[The Prime Minister.]
very great improvement, in spite of the

many difficulties attendant upon the

1292

be voting against the Government or still
less
because the party Whips are acting
as tellers.

bringing into action of these great new
plants in out-of-the-way districts under

We are often told that the House of
Commons thinks this or
feels that,'

I have here a detailed account of all
that had been set on foot or that had

Newspapers write: The general feeling
was of grave uneasiness, There was
much disquiet in the Lobby," etc. All

the conditions which prevailed last winter.

been done before the Select Committee
visited the factories. I will send it to the

chairman of the Committee for their

further observations. It is too long
for me to read to the Committee in

detail, but it shows that great minds some-

times think alike, and that the Government great minds had a good long start
of the great minds of the Select Committee. The report of the Select Committee is the kind of criticism that one
wants-not mere vague abuse and prejudice, in which only bad citizens and
bad people indulge in times like these, but

helpful and constructive suggestions,
many of which were contained in the
speeches made from the Front Bench
opposite.

to to

I leave the first part of this subject,

comings dealing with alleged discordances be attributable and short-

faults or weaknesses in the high control,
and I come to the more general charges
of slackness and inefficiency in the factories themselves, whether due to local

lack of management or to lack of zeal
in the workpeople. There is a certain
class of member of all parties-yo can
count them on your fingers and toes
who feel, no doubt quite sincerely, that

their war work should be to belabour the
Government and portray everything at its
worst, in order to produce a higher efficiency. I see that a Motion has been put
on the Paper calling specifically for the
appointment of a Minister of Production.
I consider that to be a perfectly proper
step for the Members concerned to take.
I regret only that the Motion cannot be
moved in this form to-day. If the Mem-

this is telegraphed all over the world and
produces evil effects. No-one has a right
to say what is the opinion of the House

having
to
a
Members
are because of the
of Commons. We suffer now from not
which able divisions. very to contribute, small We minority have of Debates,

time. They express their anxiety and

grievances and make our affairs out as
bad as they possibly can, and these bulk
unduly in the reports which reach the
public or are heard abroad. These Members do not represent the opinion of the
House of Commons or of the nation, not
do their statements give a true picture of
the prodigious war effort of the British
people. Parliament should be an arena
in which grievances and complaints become vocal. The Press also should be a
prompt and vigilant alarm bell, ringing
when things are not going right. But it

is a very heavy burden added to the
others we have to bear if, without a vote
being cast, the idea should be spread at

home and abroad that it is the opinion
of the House of Commons that our affairs
are being conducted in an incompetent

and futile manner and that the whole
gigantic drive of British industry is just
one great muddle and flop.
People speak of workmen getting £6, £7

or £8 a week and not giving a fair return
to the State. It is also asserted, on the
other hand, that the workmen are eager
to work, but that the mismanagement
from the summit is such that they are
left for weeks or even months without the

raw 'material, or the particular comor the

for their task. may

ponent require special direction We which which be deals quite they

bers who have fathered it do not feel
satisfied with the reasons I have given
against creating a Minister or a Ministry
of Production, I hope that they will not
hesitate to go to a Division by moving a
nominal reduction of one of the Votes
we are discussing. That is the straight-

sure that in an organisation
with so many millions of people under all
the stresses of the present time and in
view of the present conditions, as well
as the inevitable oscillations of war-time
which I have mentioned, there are a great
many faults, but we must try sedulously
to eradicate those faults and to raise the
harmony and cohesion of our whole pro-

should be deterred in war-time from doing

ductive

forward and manly course. No-one
his duty merely by the fact that he will

effort. Here again, it is im-

portant to preserve a sense of proportion

29 JULY 1941

Supply: Committee

1293

and not to be led away by thinking that
hard cases, wrong deeds and minor or
local discordances represent more than a

and of

very small fraction of our war performIt is no less important-indeed, in

a it is even more to
the nation as wère these

-Production

1294

was said, becomes
discussion
out there. the subject of lively

Australian troops are bearing with
great distinction much of the brunt of the

fighting in the Middle and

to Australians
thatvery
be
painful
East, ita be to
must told
we are
only making

ance. sum way up condemn if it the expressed important-not whole effort in

at home to put

in In America,
such a
meat and drink

discordances and failures. That is my
complaint about the recent Debate and

effort their here hands. proper three-quarter weapons

the use made of it by certain sections of
the Press and the results upon our own
self-confidence and still more upon opinion
friendly, hostile or balancing in foreign

Americans
are
tionist statement forces.
is to being
the asked
Isola-

countries?

Mr. A. Bevan (Ebbw Vale) Who said

to
pay
taxes,
toand
up
their
to alter
their

to motor
of all in to
reduce food, much their heavier daily lives, give

help and I cannot

when are on

and pleasures Britain, kinds, cars, indulgencies help order being

seems to British

that?

we are
a
to ourselves.

am
the
effect was

deeply that what disturbed be high they authority told

tile impression. When I read the Debate,
that was the effect it had upon me, and I
set myself to present a complete picture

but gone to of the

in come
myof

What is important is whether it is true;
but how difficult to decide because, after
all, this is a double expression of opinion
first, as to whether it is 75 per cent. or
not, and, secondly, 75 per cent. of what?

The Prime Minister: I am quoting no

particular of the person. Debate I to saying give that that hos-

to the Committee. I was distressed at
this aspect of the matter. I therefore

ventured to ask the House to resume the
Debate, and I should be glad to have the

matter a on

this

footing brought and to with plain these issue. preliminaries It is

on the

factories, subject, dealing namely, that with I the what second is to going the sphere remark of in

my hon. Friend the Member for Kidderminster (Sir J. Wardlaw-Milne), who said
75 per

our are to

I am aware that, in making that

that well cent. people of their possible only working efficiency. up

statement, my hon. Friend did not wish
to attack the Government or in

to national

he This senembarrass has been ill-used. the defence; particular any in fact, way

tence has been wrested from its context

as the

and from the whole character of his
on National

with know-

Select speech. ture, he Committee holds Nevertheless, Chairman Expendi- of
a

ledge. and is A credited very responsible exceptional position

statement like this, coming from

him, although uttered with the best of
motives, is serious, when it is broadcast

context. I of
Australia, for

its apart effect from in its have instance, to think where

party politics are pursued with same
as was exhibited
ourforerunners
robust indetachment
the by
this House in the seveneighteenth

ment teenth like and
this,out
centuries.
A statetaken
of its context,

or in a very summarised version of what
No. 91

its no him,

hearted Friend's
effort makinghas
help only
three-quarter
My from
hon.
allegation
been
wrested

context. it has I have all parts quarrel with country

and to all quarters of the world; but
nothing can be done about that

I have tried to find a datum line, and I

take as the datum line the three months
after Dunkirk. Then, it will be admitted,
our people worked to the utmost limit of
their moral, mental and physical strength
Men fell exhausted at their lathes, and

workmen and working women did not

take their clothes off for a week at a time.
Meals, rest, and relaxation all faded from

their minds, and they just carried on to
the utmost limit of their strength. Thus
there was a great spurt in June, July and

August of last year. Immense efforts
were made, and every semi-finished
weapon was forced through to completion,

very often at the expense of immediate

future production, producing an altogether abnormal inflation of production.
So let us take those three months as the
datum line; you could not have a harder
test.

Now is it true that we are only working 75 per cent of that? There are certainly one or two reasons why we cannot
wholly recapture and maintain indefinitely the intense personal efforts of a

year ago. First of all, if we are to win
this war-and I feel solidly convinced
C

1295

-Production

Supply: Committee HOUSE OF COMMONS
[The Prime Minister.]

1296

will be brought. I know of the great

that we shall- it will be largely by staying power. For that purpose you must
have reasonable minimum holidays for
the masses of the workers, there must,
as my hon. Friend himself urged in his
speech, be one day in seven of rest as

arrangements which have been made to

a general rule, and there must be, subject

Every made, and is

emergencies which know no law, a few
breaks and where possible one week's

more asheas his
he never

his Lord lot Haw-Haw. consolation will be than If hard gets from gets any me,

and
made, to effort supplement will be this deficiency, deserts, being
I

to coping with bottle-necks and with

send us food in nourishing, varied and
more interesting quantities. Therefore
there is no need to tell me I am helping

holiday in the year. Since what I will
call the Dunkirk three months datum

and

period, we have undoubtedly relaxed to
that extent. Sunday work is practically
eliminated, and brief periods of leisure
have been allowed to break the terrible
routine strain of continuous employment.
I am quite sure that if we had not done
so, we should have had a serious crack
which would have cost far more in production than these brief periods of rest

and more tensely nourishing than in 1941.

from labour.

Next, allowances must be made for the

very severe change in the diet of the
heavy manual worker. It is quite true
that no one has gone short of food; there
has been no hunger, there has not been

the confusion of the last war at some

periods, but no one can pretend that the
diet of the British people and especially
of their heavy workers has not become
far less stimulating and interesting than
it was a year ago. Except for our Fighting Services, we have been driven back
to a large extent from the carnivore to the

herbivore. That may be quite satisfactory to the dietetic scientists who would
like to make us all live on nuts, but undoubtedly it has produced, and is producing a very definite effect upon the
energetic output of the heavy worker.
[Interruption.] The Noble Lord knows
I could discuss a great many matters in
Secret Session, but he is one of the first
to get up and say he would like to have
these discussions in public, under conditions where nothing can be said by the

1942 more stimulating

rations share the in the Minister hope will of of the Agriculture be Minister that of Food our

That is the second reason. The first
is the need for some relaxation; then
there is this question of food, which has

come upon us gradually and which is
serious. I wish it to be known all over

the United States that it is serious,
because it encourages them in their

actions. The third reason is this: Look

at all the dilution we have had. It is
estimated that one-third more people are
working in the war industries than there
were a year ago. A great many of these

are trainees and newcomers. It would

not be wonderful if they failed to preserve

the same level of output per pair of
human hands as was achieved by the
skilled craftsmen of a year or 18 months
ago. Naturally they will improve. They
are improving, but dilution means a reduction in efficiency per pair of human
hands in the earlier stages.
Then, fourthly, there has been a great
dislocation by reason of the air raids, by
which the Germans hoped to smash up
our industries and break down our power

of resistance last autumn and winter.

Air-raid destruction, extraordinary
blitzes on our ports and manufacturing
centres, the restrictions of the black-out
the interruption and delays of transporta-

tion, all played their delaying and dislocating parts. The remedy and countermeasure which was proposed and carried
when

Government in answer to the kind of

through vigour by possible Supply Departments, with such extreme with

criticism with which he associated himself. We want more meat in the mines
and the foundries, and we want more

craft Production in the van as the in-

cheese. Why should that gratify Lord

Haw-Haw? Lord Haw-Haw should also
bear in mind the statement of Mr. Harry
Hopkins the other day, on the intention
of the Uinted States to see that we get
our food, and of their intention to keep
clear the sea-lanes by which our food

the

Lord Beaverbrook and the Ministry of Airspiring force, took the form of dispersion.

This was a matter of life and death, in
the aircraft industry as well as in other

key war industries. The great Bristol
firm, for instance, was dispersed into
nearly 45 such centres. I could give you
and the enemy too- score of instances
of the dispersion of firms to 20, 30 or 40

29 JULY

Supply: Committee

1297

such centres. All this has been an
obstacle to the smooth running of produc-

tion. It has placed us, however, in a
position in which we are immune from
from enemy air raids in

1941

-Production

1298

money for the critics. A handful of Members can fill a couple of days'
charges against our war
and disparaging
Debateor
section
effort, withof
every ardent
disaffected

the can take it up, and
a

our

we

of mortal munitions. aircraft damage production We may and suffer, other branches may

be retarded, we can no longer be

stinking can Press cry fish
cacophonous
the chorus whole of
all dismal
round
the

made,

destroyed. When a great firm like the

said answer to must show be nothing world. must But no be

Bristol firm is divided and dispersed, consider the trials of the workpeople and the

prodigy of national zeal, which excites the
astonishment of friend and foe, which will
command the admiration of history, and
which has kept us alive.

problems of the management. Workpeople by the thousand have to be moved
from their homes, plant has to be shifted,
ruined factories have to be reconditioned,
domestic affairs have somehow or other to
be adjusted, often with great sacrifice and
hardship, and it is a marvel what has been

done to overcome these grievous and
novel difficulties. That they hamper the
pace and intensity of production was

a have
inevitable.

I have now described to the Committee

fallen
usof solid since the factors Dunkirk which period,
number upon

all of which have tended to obstruct and
reduce output. I should like to give the
Committee some facts and figures to show
how far we have succeeded, by improved
organisation and by the smoother running

of our expanding machinery, in overcoming these adverse currents which I

have set out at length. But here I

encounter a new difficulty. I am told we
cannot have these Debates in Secret

Session; they must be in public. The
Germans must read in two or three days
every word we say, and therefore I cangive actual figures. In addition, I am told
by my hon. Friends to Let us have none
of those comparative percentages; let us
not be told that we are producing half as
much again or double what we produced
because we were pro-

last or like

this it. ducing time As nothing last year, year something

my hon. Friend said, it is a Lan-

cashire saying that Twice nowt is
nowt." So, according to these critiçs, I
am inhibited from all vindicatory com-

parisons. I must not say how much

better we are than at this time last year
when, after all, we had been at war for IO
and so were

something. I must not how

much or making
better
months,
weIIare
than
at the presumably say

last nor how our
compares month ofthe
the with
war,
peak
oftwenty-third
the last output
is

because hanged.
it contended
haveeasy
war,
Well,
Sir, thisconditions
is rather

the giant war effort, the

I defy these tyrannical I

intend to make comparisons, prohibitions. both with

the datum

peak of the last

the troubles I have enumer-

Despite similar Dunkirk and all periods period and with war. the

ated, the Ministry of Supply output in

greater three the

the last three months has been one-third
our

Army Force are larger, the

Dunkirk and than period. Air in the Though months of Navy,

Ministry has one-third more people work-

ing in its factories. Thus, despite dilution, dispersion, reduced food, the blackout, and all the troubles I have described,

each man is turning out, on the whole,
each day, as much as he did in that time

of almost superhuman effort. Let me
present the balance-sheet. One-third
more workers and one-third more output

is quits. But all the adverse factors I

have described have somehow or other
been cancelled out by superior development of our machinery and organisation.
We have made, in the last three months,
more than twice the field guns we made
in the Dunkirk period. The ammunition
we are turning out is half as much again.
The combined merchant and naval shipbuilding now in active progress is bigger,

not only in scale but in current daily

volume of execution, than it was at any
period in the last war, and, of course, the
work now is immeasurably more complex
than it was then.

In aircraft production it is foolish to

calculate the

these
have
though only by
largely
number increased, of machines, be-

cause machine 5,000
and

however, either by the test or
another, one 75,000 takes man-hours. of numbers man-hours, Judged,

man-hours eventuating in aircraft producincrease even above the spurt

of a ago is

tion, period increase thethis
sinceGovernment
year substantial. took office The

is enormous, and I should be proud to
tell the Committee what it is. I am not

1299

Supply Committee

HOUSE OF COMMONS

-Production
1300

[The Prime Minister.]
going to do so, because the enemy do not
tell us their figures, much as we should
like to have them. The Committee must,
therefore, be content with my assurance
that progress and expansion on a great

of collecting workers from unessential
industries, we shall produce even more.

But years the
level
year of the

achievedventure
is, I to reach,
in the in fourth
two last only war
to submit,
an achievement

which deserves something better than

scale are continuous, and are remorselessly

flouts and jeers.

spurred on. This progress has been accomplished under the fire of the enemy,
under air assault, which Hitler was led

We are told how badly labour is behav.
ing, and then a lot of people who never
did a day's hard work in their lives are

to believe would shatter our industries and
reduce us to impotence and subjection.
It has been done in spite of the difficulties
of dispersion, and has been done not only

with no sacrifice in quality but with a

gain in quality, both actual and relative.
Now that the air battles are developing
again in scale and intensity we can claim

that
are at as
ahead the as we

our of fighters enemy when least defeated much

him a year ago.

As for the bombers, in the year that has
passed, in British production alone, taking
no account of the now rapidly expanding
United States imports, we have doubled
our power of bomb discharge on Germany
at 1,500 miles range, and in the next three
months, though this time taking account
of the American reinforcements, we shall

double it again. In the six months after
that we shall redouble it. Besides all this
we have ploughed the land, and, by the
grace of God, have been granted the
greatest harvest in living memory, perhaps
the greatest we have ever known in these

Islands. So much for comparison with
the high level of the Dunkirk period.

Now I turn to some comparisons with
the last war. That was a terrible war. It

lasted 52 months; there was frightful
slaughter; there was an immense British
effort; there was a complete final victory.
We are now in the twenty-third month.
We have lost large stocks of equipment on
the beaches of Dunkirk, our food has been
rationed, our meat reduced, we have been
bombed and blacked out, and yet, even in
this seventh quarter of the war, our total
output of war-like stores has been nearly

as as our of
seventh

ter war, and has equalled our

duction twice of the in great last the corresponding total output quar- pro-

production in the fourteenth and culminating quarter of the last war. We have rather

more workers in the metal industry than
we had then. When all those now workand
factories ing to complete become available, equip our and new the

Ministry of Labour has completed its task

out after them. Again I claim to look

back to war. we

had

and
two years nearly
12,000,000 working days were lost
many in the the bitter last final and devastating In that war strikes,

through labour disputes. So far, in the
whole 23 months of this war, we have lost
less than 2,000,000 days. I was anxious
to have the latest information about trade
disputes in the country. I received, a few
minutes before I rose to speak, a report

that at II o'clock to-day there was no

stoppage of work of any kind arising from

a trade dispute in any part of Great
Britain. It is the fashion nowadays to
abuse the Minister of Labour. He is a
workman, a trade union leader. He is

taunted with being an unskilled labourer
representing an unskilled union. I dare
say he gives offence in some quarters; h
has his own methods of speech and action
He has a frightful load to carry; he has

job to do which none would envy. He
makes mistakes, like I do, though not so

ata peron
vast
and steady volume the

many or so serious-he has not got the
same opportunities. At any rate he is
haps producing, rather this expensive moment, of faithful terms, though effort,

like of which has not been seen before

And if you tell me that the results he
produces do not compare with those of
totalitarian systems of government and

society, I reply by saying, We shall

know more about that when we get to the
end of the story."
I daresay that some of our critics will

not of it
in

complacency. like this kind Living talk. comparative They call idle-

ness, they wish to lash the toilers of body

and mind to further exertions. To state
facts which are true and encouraging is to
be accused of a cheap and facile optimism.

Our critics do not like it; neither do the
Germans, but for different reasons. But
I consider that if, for days on end, the
whole national effort is disparaged and
insulted, and if, all over the world, we are
depicted by our friends and countrymet

1301

29 JULY 1941

Supply: Committee

as slack, rotten and incompetent, we are
entitled, nay, it becomes a pressing duty,
to restore the balance by presenting the
truth.

-Production

1302

some extent become available to them.
all these restrain rejoicing and forbid the
It would be

us suppose that Russia or
going to win this war for us. The

for States slightest to is relaxation. the madness United

A number of Votes have been put down
as a basis of this Debate. I do not think
I shall be out of Order if I place our dis-

in its to
of the war we for

aspects cussion relation before which the separate Members general
a
short Recess, during

will be able to regain contact with their
constituents and Ministers to give undivided attention to their work. When I

invasion season is at hand. All the
Armed Forces have been warned to be at

concertutmost
pitch by Ist to

retain We have the
September
tovigilance
reckon
with ameanwhile. and

have to a

desperation. criminal
We reckon
gambler's
bywho
a mere
gesture
haswith
de-

creed the death of 3,000,000 or 4,000,000

oftowar,
my all we
a very

look out upon the whole tumultuous scene

warning to the House country.

duty this conclude ever-widening by giving and to I the feel serious it

We must be on our guard equally against
pessimism and against optimism. There
are, no doubt, temptations to optimism.

It is the fact that the mighty Russian
State, so foully and treacherously assaulted, has struck back with magnifi-

cent strength and courage, and is
inflicting prodigious and well-deserved
slaughter for the first time upon the Nazi

armies. It is the fact that the United

States, the greatest single Power in the
world, is giving us aid on a gigantic scale
and advancing in rising wrath and conIt
viction to the very verge of the war.
is the fact that the German air superiority
has been broken, and that the air attacks
on this country have for the time being

almost ceased. It is the fact that the

Battle of the Atlantic, although far from
won, has, partly through American inter-

in our

that the Nile

vention, favour. It moved is the fact impressively Valley

is now far safer than it was 12 months
ago or three months ago. It is the fact
that the enemy has lost all pretence of

of Russian and German soldiers. We

stand here still the If

gether. fails and It is if only
champions.
all will we fall
fail, toby afall,superb,
intense

and prolonged effort of the whole British

Empire that the great combination of
about three-quarters of the human race
against Nazidom will come into vehement

and dynamic life. For more than a year

we have been all alone: all alone, we have

had to guard the treasure of mankind.
Although there have been profound and
encouraging changes in the situation, our
own vital and commanding responsibilities
remain undiminished; and we shall dis-

charge them only by continuing to pour
out in the common cause the utmost endeavours of our strength and virtue and,
if need be, to proffer the last drop of our
heart's blood.

Mr. Erskine Hill (Edinburgh, North):
We have just heard a speech which I
think will long remain with all of us. It
is not easy to follow a speech of that sort
by making new suggestions even though
meant constructively. The Prime Minister told us that he welcomed constructive
criticism, and I assure him that any criti-

theme or doctrine, and is sunk ever

cism that I make will be along those
lines. I am not one of those who think

deeper in moral and intellectual degradation and bankruptcy, and that almost all
his conquests have proved burdens and

that our war effort should be despised or
that all workers, employers, and indeed
all the citizens of this country, have not

sources of weakness.

played a great part. But it is important
that we should consider not only what
has been done, but how we can bring
about improvements. It may be that the

But all these towering facts,
we are entitled to must
us for a moment to that
massive

not which worst
lead The
is dwell
suppose on,
over.
formidable

the vast dethe structive of Nazi Germany, mass of power
munitions that they have made

the skill and

of their the

or audacity captured, striking courage, forces,

of their

prostrate condition of so
peoples under their yoke, the resources of so many lands which may to

great tion, ruthlessness the centralised war-direc- many

percentage of efficiency is not so high as
my hon. Friend who was referred to in the
Debate suggested, or that production has

descended so low. It may be that the
work we are doing is more satisfactory.
But I am sure that it would be the wish
of the Prime Minister that we should all
get together and consider whether we can
make a greater effort and whether we can

1303

Supply: Committee

HOUSE OF COMMONS

-Production
1304

only to the aspect which was closely dealt

with by the Prime Minister, but to the
actual machinery in the Ministry itself, to
see whether that can be improved.

It seems to me a mistake, which we
cannot rectify at this stage altogether,
that the system has been built up upon a
Civil Service which was good in peace-

time, which was the best that could be
got together, and which had traditions of
the highest possible order. I cannot feel

that we ought not to consider why we
may not be reaching that 100 per cent.
which we would desire to attain. Is the
machine at fault or is it the staffing of

that machine? I would say that it is
obviously both. Our Civil Service was
conceived and evolved for small-scope
peace-time operations when the production of the nation was the work of private
effort. You have to build up on that to a
much higher stage, it seems to me. For
those purposes, while the Civil Service

was admirable, I venture to think that
there is in war-time something to be desired. You cannot, I admit, alter that in
war-time. The change is too great, but
there is something you can do. When you

come to the other side of the case, the
personnel, it seems to me that the standards of the Civil Service should be put
on the basis of efficiency. You cannot do
that unless you insist that for the time
being, as the workers have been willing

to
union
as been to
make concede the employers their trade have regulations, willing

every concession they can, as the

middle-class shopkeepers have been called

upon to make concessions greater probably than those made in any other sphere,

the civil servant should play his part. I
suggest that the civil servant would be
only too anxious to do so, and would be
willing to depart from some of those rules
which seem to me to make for inefficiency.
It is essential, and this country will insist
upon it, that there should be no favoured

circles, where if a man fails he can be
kicked upstairs, or at any rate kicked only

along the passage.

The country demands that for the time
being promotion should be by merit and

not by seniority. It is difficult to say

these things, knowing the
Service,
and the
of the Civil high
important

traditions

part they have played, but I think some-

thing might be done in that direction

which would actually strengthen the
working of the Ministry of Production
and other Departments. These
promotion was

could the be cured if of defects altered

and question dismissal for ineffici.

ency during the war was taken into
account. What is the fault? There are

many servants, but
are
a not think

number excellent who Civil do for them. there

are the

who are too
to
are
the
who their

the selves. " No-men,' There only Yes-men willing and

The will be impeded unless
obstruct, national cannot effort make and there up own officials minds,

the ordinary rules are altered for the

period of the war.

I should like to say a word about the

most vital question facing a of
this

moment, in

wants Production at the The thing bearing Ministry country mind

more
You
a better than the

we have to

the great tanks dangers and guns. cannot face, have are
as

tanks short-dated and policy policy of getting Government's many

guns as we can produce
during the next few months. I think we
are in grave danger. The Russian situa-

tion may be better than many of us

feared, but it stands out as a menace to
us. If anything happens there suddenly,
and the tiger springs back, we shall be
in mortal danger again. For that reason
I agree with the policy of the Government
in putting in a peculiarly active Minister

to look after this Ministry. I agree with

the policy of three members on the Tank
Board. This number will be better than.

13 for getting things done quickly.
do not know anything about them personally, except that everything I have

heard leads me to think they will be
active. But there have been delays. I

know tank pro-

has some
one there
the
A

duction of has many been instances held up. where suggestion

should been be made by simplification, works that and

Tank Board has been asked to consider

it. The answer comes back, Do

nothing to these tanks for four or five
weeks. Do not proceed with the work
until we have made up our minds."
could give the Minister instances of this
if they were required. The result is that
until you get decision, work is held up.
There must be quick decision when decision is wanted.

There is another thing I would like to
say on this question of production. What

I

improve our system. One must look not

I

[Mr.Hill.]

Supply: Committee

1305

29 JULY

a great many people in industry
inordinate
is worries the be filled number up. of I forms know which the

-Production

1941

1306

right hon. Gentleman referred would not
have gone round the world. The Prime
Minister concluded his speech
to the House

have Ministry to are trying to do their best, but I

timely placency warning this against to-day com- by a

whether they cannot have simplified
forms and reduce their numbers. With
staffs and other difficulties, the

that the fact that this important matter

would ask them to think again and see

with the
up

is one

short necessary, responsibility of filling which ought forms, to however be dis-

to a

on important matter. I feel

has been raised is of value, and I agree
with him that it is proper that our great

of is is
effort should be known and focussed as it

has been focussed to-day. The

start war which

Germany's production in absolutely production vital. subject It

successes rather than in-

pensed memorandum Ronald wherever issued Matthews, in possible. response President In
letter
by Sir

of the British Chambers of Commerce,
that point was raised, and a promise was
given that the Ministry would look into
it. I hope they will, because this seems
to be one of the ways by which you can
give less work to the staff. This war can
only be won by 100 per cent. effort on
the part of everybody, and I hope the
Government will be content with nothing
less, whether it be from heads of Departments or the workers in the Departments
themselves. We can only get that when
there is complete discontent with any-

and class

thing a

per

distinction. by but rising We high above have standard questions put away of efficiency of 90

cent. of this question: let us put it away
altogether. We must lay down a standard
applied to everyone that there must be
no inefficiency anywhere and that any
inefficiency will be dealt with ruthlessly
and effectively. The Prime Minister is a
great leader, and he deserves the weapons

with which he can lead us to victory.
The test which ought always to be ap-

plied is one of results. I think the

the the

appointment of a man of extreme energy
excellent.

hon, to this Friend Ministry is present President My of right

Board of Trade was excellent too when
he was at the Ministry of Supply. Let us

not
to
results.
Let
us to see more
not be be afraid afraid judge there by is no

toleration because a is nice fellow.

interest is the which

must to obtain. in that

The national be allowed man only a Only test

way
we shall
allowPrime
our Minister
to lead
us to the victory we all so much
desire.

Colonel Colville (Midlothian and

Peebles): We have

and
statement
stimulating
reassuring
listenedfrom
to a
Minister. If I

a of that

had the the Prime speech calibre may been made say so, at

conclusion of the Debate three weeks
ago, the cry of stinking fish to which the

on the of her

gave men. dividual her I merits part any fighting

disagree with the proposal made
by some hon. Members that there should

be a Minister of Production. My right

hon. Friend the Prime Minister dealt with
that proposal, and he gave as one of his

principal reasons-I thought he put it
very high-f for rejecting the proposal the
question of personality I do not think that

should be the principal reason. If, in
fact. the proposal itself were desirable
and if it were impossible to find a master
Minister to control Lord Beaverbrook, the
Prime Minister would have two courses
open to him, one to remove Lord Beaver-

brook from the Ministry, and the other
to make him the master Minister. But
the Prime Minister does not agree that
it is a desirable proposal, and I am in
agreement with him.

My reasons for opposing the proposal
for a separate Minister of Production are
these. In the first place, let us be clear
that it would not be a Minister for long;
there would be a Ministry. No Minister

ever works alone for more than 10

minutes; he soon gather round him an
advisory staff, and then follows the great
paraphernalia which is necessary to uphold a Ministry of rank and importance,
and, shortly, there is another Department

of not

in being. I speak with knowledge and
confidence when I say that the industries
at

Ministry this country the present do time. want If produc- another science
tion
were regarded as an expert
outside the responsibility of the Ministries
which have to secure supplies for their
services, the Army, the Navy and the Air
Force, I believe that the responsibility of
those Departments would be lessened,

and that the new Ministry would

tend to become a check or a filter
rather than a spur to their activities. That system would not work
in an industrial concern. To make one

Supply: Committee

1307

HOUSE OF COMMONS

[Colonel Colville.]
director alone the expert on production,

for
forofnot

no responsibility for the other

having phases supply-would activity design, make for for labour, smooth

running. No, Sir, the Departments must
have that responsibility in full and must
exercise it. Therefore, the super imposition of a new Department-for that is, in

fact, what I believe it would becomewould not help us at this stage. There
must, of course, be the machinery for giving final decisions as to priorities which the
Prime Minister has outlined to the Committee.

I want now to make one or two

criticisms on the way in which certain
Departments at present discharge their
functions. The supply side of the War
Office, that is, the Ministry which supplies
the Army with its main requirements, has
in my view not developed such satisfactory
arrangements with industry as have the
Admiralty or the Ministry of Aircraft Production. As the Prime Minister said, that
is to some extent due to the fact that the
Army's growth has been more rapid and
recent through a period of rapid change

and quick expansion. The Admiralty
have had long and tried connections with
industry which are now working as satisfactorily as they did in the last war. But
the Ministry of Aircraft Production have
had to deal with the problem of rapid and

-Production
1308

the manufacturers are having some diffi
in the

am to the

of culty testing. with the I Ministry referring is testing matter

of metals, such as special steels. The

Admiralty have their own staff of inspectors, and as I have said, their long contact with industry has led to smooth running. The Ministry of Aircraft Production

and be
generally work on the principle that,
having decided on the firm which to

carry select
approve out the of work someone for them, in the they firm to is

their representative and carry out the
tests to their specifications, and this

system works satisfactorily. On the
other hand, the Ministry of Supply for
the War Department almost always in
sist on the tests being carried out by their

own staff, and from time to time there
are considerable delays in having the
materials tested. This is a point of detail
rather than of general principle, but it is
a most important point, which I hope will

be looked into. The Prime Minister re-

ferred to many firms which work only for
one Ministry or Service, but equally there
are great firms and combines which work
for all Services and have experience of
all methods, and it is on the basis of that

experience that my suggestions are
offered.

changing production, and to my mind

the was
effective,
the

they have been more successful than the
Ministry of Supply in adapting themselves

of priority is in dispute at the moment.
I will offer this observation, however; no

sweeping statements, because I know that

doubt it is essential that the highest

to the problem. I do not want to make

With regard to priorities, I agree that
present and I machinery interested ought to to hear be

Prime Minister say that no major question

the Ministry of Supply have had an

priority should go to the Ministry of Aircraft Production, as control of the air has

cult task, but I maintain that there are

proved the key to success not only in
land, but in sea operations, but I am

immense measure of success in their diffipoints on which they could learn and take

an example from what is done by other
Ministries.

For instance, to give some illustrations,
the difficulties experienced by manufac-

turers in the aircraft industry owing to
changes of design have been considerable,
but they have not been so great, I believe,
as those of the manufacturers working on

tanks for the War Office. The changes
in design, both in defensive armaments
and in weapons, have caused considerable, and I believe, preventible, delays in

the output of tanks. Obviously, I cannot go into details in this Debate, but I
hope that with the machinery which has
been set up, an improvement is already
taking place. Another direction in which

bound to say that I am disturbed at the

low degree of priority which appears
almost invariably to be given to Army
supplies as compared with those for the
other Services. Obviously, in a public
Debate I cannot give specific instances,
but I would like to discuss the matter with

the Minister concerned. From my experience during the last 12 months in
connection with the building up and
training of the Home Guard, I can say
that the degree to which that force has
been equipped through the Ministry of
Supply is no small achievement; it is,
indeed, a very great achievement The
Home Guard is now a force to be reck-

oned with in the matter of armament.

29 JULY 1941

1310

the widest publicity. It shows the

Nevertheless, there have been points of

our

should magnitude of production effort great and

priority both in relation to imports and
home production in which it has been

spur us on. Just over a year ago
the present Government was formed to

found impossible to get any further, and
it would appear that the degree of priority

to State. There

give representation, on an adequate scale,

to a wide range re-

comes that

Ministers with

that all Government parties in the very joined great

experience of industry, from both the

quirements accorded Services. fairly well of behind Army

of the other two

managerial and labour sides, who gave
hope to the people of this country that
they would be able to secure the maximum effort in its broadest sense from industry. There is still much scope for their
capacity in the months to come.

If the Committee accept the view, as
I have not the slightest doubt they will,
that a new Ministry of Production would
not, in fact, accelerate production, I hope
that the Government will not go away
with the idea that everybody is fully content with the present state of affairs. We

Mr. John Wilmot (Kennington):
would not have ventured to take part in
this Debate but for the fact that the small

have been stimulated and reassured by the

Prime Minister's statement, but the Prime
Minister is the last person to wish us to

experience I have had in production
during the war has led me to believe there
are certain disharmonies in harnessing to
the work of national war production the
diverse elements of a system of private

fall into a state of complacency. I believe that with the existing machinery an

early improvement can be looked for.
and I believe that a greater national

industry. The Prime Minister said that

effort from all is still possible. The Prime
Minister referred to the immense spurt
that followed Dunkirk, a spurt which he

almost all firms to-day were under
Government control all those, at any

rate, which were engaged on any kind of
major war work. He stated that the field

wisely said one could not expect to be
maintained indefinitely, though we have

of this conrol was continually widening
and that as need arose more and more
were regimented. It seems to me that in
carrying out this colossal operation dis-

now reached a higher rate of production
through expansion; but when one looks

back to the time following Dunkirk,

everybody- I refer to all sides

harmony must inevitably arise, and it is to
that point that I wish to direct the atten-

of industry and not to one side only-was
making an immense personal effort.
wonder whether that degree of effort is
still with us. Evidence that perhaps it is

I

tion of the Committee. The board of
directors of a limited company engaged

wholly upon war-time production find

not comes to us in curious ways.

themselves in many instances in a

Recently, I had experience of an exercise

curiously dual position. No doubt after
victory has been won there will be differ-

a number
ofwas
not
with
one part of which was to test security,

ing opinions on various sides of the House

as to what is the best or the most ideal
form of industrial management and control, and we shall continue as we always
do to debate, modify and compromise in
our search for the best. This is not the

and people itnot
had for
found that
their identity
very large cards
them,
any
sinister
reason,
but from

pure carelessness. It may be asked what
that has to do with production. The point
is that one would not have found such a

thing in the months following Dunkirk,

time to debate these academic questions,

and I do not think the same state of alertness and effort exists to-day as was the

because We have now to attain in the
shortest possible time the maximum production from the present machine.

case at that time. I would point out, in
passing, that no-one got through without a

It to me that the position of the

card, and that all those without had to
report to police stations to prove their
identity, so that should give little con-

a columnist who might
I

could
think fidence
he to fifth easily slip through

-Production

I

1309

Supply: Committee

mention this, however, as an indication
that the whole country does not realise the

degree of alertness and of effort still required. The picture painted by the Prime
Minister is one which, I know, will have

of a company
difficult.
over-

management extremely seems limited They have the produce is

whelming loyalty to the State to

from their machinery, plant and the

workmen under their management the
maximum output regardless of all other
circumstances. But side by side with that
they have not been relieved of their legal
and moral obligations to the owners of

1311

HOUSE OF COMMONS

Supply: Committee

-Production
1312

[Mr. Wilmot.]
their capital. Anyone engaged in day-today industrial management will realise

in the factories. They have been urged,
and they have agreed, to give up and to

waive for the duration of the

how often and in how many diverse
aspects this duality is a hampering
circumstance, and various devices
have been invented in an attempt
to circumvent it. In some instances

old-established union conditions and and hardly-won war trade They their

Government controllers, with limited and
partial authority have been placed inside
the works. The contract system by which
firms compete by tender for contracts is
still in operation, and there is the Excess

way parts of our industrial machine there
is always the lingering feeling that they
are, in part, making this sacrifice for the
old management, which they remember as

Profits Tax to put a limit on excessive
war profits. Necessary and desirable as
it is to limit the profits arising from war
conditions, I think the operation of the
contract system and the absence of direct
profit motive is very often inequitable and
hampering. Over and over again one must
come across instances where managements
find themselves caught between these dual

loyalties. The loyalty to their shareholders requires them to look beyond the
war to the conditions in which they will
find themselves in competitive industry
after the war. The Committee will see at
once that there is a much more urgent
and compelling loyalty, but at the same
time the legal obligation of the directors
remains. It seems to me that it would
be advisable to consider when a firm is
engaged wholly upon war production
whether those in charge should not be re-

lieved from the embarrassment of that

war, any a

for the duration

dual position, at rate, and be placed in position of the

where they have one loyalty and one
loyalty only, and that is loyalty to the

State.

Circumstances are arising every day

attention to this A
me
other
which manufacturerwas
compel telling
aspect.
the
day certain reasons
into
where cently that there moved for is his factory he an has area re-

a plentiful supply of female
labour. He tells me he could quite conveniently employ large numbers of women

save wear and tear
automatic
and That and irreplaceable
upon
valuable
certainly behis
tomachinery.
his

iftionforward
towould
industrial
he afterthe
looks
advantage
competiwar,
when
he
unimpaired, but it
would his machinery would to-day have
exhaust the supply of

a way which would be

labour contrary
in available
directly
to the interests
of war production
as a whole. That seems to me to be
one instance of the effect of this duality.

Its effect is also to be seen on the workers

practices.
the

to achieve

but more out of the

have quately in done the and smaller this speedily in and order more victory, ade.

may of

persons of

profit. being the It be in that pursuit the operations private

the system taken that
that
remains objection, taxation in the but undoubtedly have away feeling

minds of the workers, and

it is certainly a hampering consideration
in securing maximum output.
I have seen in recent months a consider.

able wastage of time and machinery as
the result of an intermittent flow of orders
coming into various industrial establishments. A contract is proceeded with at full
blast, and an effective and efficient team
of machines and workers is assembled and

got in production. The contract is completed, and nothing takes its place. The
men are discharged and drafted off on
other work and into other localities, and
in a week or a fortnight a fresh contract

is placed. The utmost urgency is at-

tached to it, but the firm finds itself now
denuded of workers, its plant standing
idle, and no one can be obtained to oper-

ate it. The invaluable team which has
been built up for that particular job in
that particular way has been dissipated
and lost, and very valuable time is spent
building it all up again, in order to do a
precisely similar job on a new contract.
It would be an immense economy if some
system could be devised whereby there
was not this gap when the whole mechan-

ism was broken up and dispersed. It
seems to me that it is at this stage in the
detailed application of the broad principles
which the Prime Minister has shown have

been so successful-it is in attention to
those details that we can drive our production ahead to the maximum.
Mr. Marcus Samuel (Putney): I was
very pleased indeed when the Prime Minister informed us of the Government's de-

cision to have another day's Debate on
production. If the two days' Debate had
taken place last year, it would have resulted in a change of Government. The
present Ministry, if not a Ministry of all

1313

Supply: Committee

29 JULY

the talents, is certainly a Ministry of all
or

could not

when the change place. Many of

critics the critics most be took absorbed of them. immediately, All the

them were included to make the Government a Government of all parties, and
there were many purely political appointments. Some of the appointees seem to
have only been qualified successes, and I
think I can say without fear of very much
contradiction that some have not come up

to their political reputations and have
proved to be labourers not worthy of their

hire. If that two days' Debate has
proved one thing more than another, it
has shown that, whilst it may possibly
have done a minimum amount of good in
this country, it certainly has done harm
abroad. It has given- the enemy every
reason to rejoice. Outside this country

not our
of
free
maintained that we speak freely in

1941

-Production

1314

themselves into a sort of unofficial Ministry for the Co-ordination of Offence
criers of stinking fish in the market place.
This bit I believe is unnecessary and a wee

wrongheaded. It does not produce
more guns, ships or tanks. These efforts
do not give anyone confidence.
I recently attended a meeting called by
two Members of the House to meet repre-

sentative shop stewards from a number
of munitions factories engaged in war

work, ostensibly to give instances of
delay and inefficiency in organisation
leading to the impeding of production.'
I was surprised to see how very young

many of these shop stewards are and how

little experience they can possibly have
had in this so-called skilled work which
they are doing, and still less of the intri-

cate working of a factory. But it was
quite evident that they were all now,

people do speech-and should understand I have always less methods

thank God, in dead earnest to put in their

war-time than in peace-time-not only we
in the House, but the newspapers and the
general public. The enemy is listening all

carefully and asked a number of questions, and I could see that many of these
men before the war and since had been

friends take us too literally, whilst the
enemy notes and gloats and takes our

been misled and misinformed, and, as
I thought, they had not yet quite got a

the time, and our friends, too. Our

troubles too optimistically.

I have always found Ministers as

as us to

not in

Although anxious I any do of believe put things suppressing right.

free speech and criticism, I think we can

and do exaggerate and magnify our
ourselves. In

we can we have stocks
timeeverything.
troubles almost and We
scarify have
truly say peaceof
onlyto

are
to
for
item,
a or a the

ask for goods and pay for them to get
them. In war-time we have stocks of
increased nothing. demands We always every short, single owing

of or even to a

heaviest from bolt piece machinery, screw or a nut to

pint of beer. Some of the critics of the

Government-th left-overs "-cannot

forget their

course, Ministers are where

we all

the Order

and, are of because peace-time political belong habits, they to

days, when our lives the

in Ministers these Ancient welcome constructive of Stone-Throwers. criticism

the State are balance.

one to be and

There future is of only thing in the done, and

us all to work to stick

and to stick to my

together that for together, work. In
view certain Members, with the best intentions, have joined forces and formed

best efforts to win the war. I listened

affected by outside influences. They have
fair and complete perspective of the scene,
They seemed disposed to lay about them

mercilessly, claiming the delinquencies
and inefficiency of the managements in
organising production, and unable quite
to rid their minds of peace-time prejudices
and predelections. The same attitude
applies in some cases to the managements as regards labour.

Letters to the Press and speakers in this

House show the enormous and endless
difficulties with which the managements
have to contend. Every item they produce, besides being in short supply, is, so
to speak, wrapped up in a whole series of
papers. A study should be made of how

to cut out some of the clogging, time-

wasting demands of the octopus and hide-

bound bureaucracy which is living on the
fat of the land, or as much as they can

get, and producing nothing. I pointed
out to the shop stewards that we must not

forget that there have been millions of
tons of shipping lost; towns have been

blitzed and factories damaged and

destroyed, that railways have been
damaged and transport delayed; and that,

in spite of all the damage done, those
without much experience and with a
limited viewpoint, however anxious to help

1315

Supply: Committee

HOUSE OF COMMONS

1316

and woman working. If they were satis.

[Mr. Samuel.]

their country, must clear their minds of
vision and predeliction and

that and is

peace-time
musthave
not criticise
Many into the of these idea
must
beenunfairly.
schooled

andour
that
as a consequence
wrong men
economic
political systemsorts
all

of troubles and faults arise. During the
speeches it became clear that many of the
old-established businesses of which they
spoke, with their practical knowledge and
traditions, have an enormous advantage

over the newer factories put up for war

purposes. There is no doubt that this
affects production and cannot be overcome
at the start or acquired in a day.
I asked the shop stewards to remember

that, even if everything had been perfectly planned, these war incidents must
undoubtedly at times create difficulties,
even bottle-necks, changes of direction,
loss of materials, shortages here and sometimes over-supplies there; and on top of all
this we have the ever-increasing demands
on every industry in the country connected

with war work. We are all the time workThe
ing against time and destruction.
Germans had seven years' preparation and
had accumulated reserves which they are
now dissipating much faster than they can
replace them, and the same troubles must
be coming to them while we are now over-

coming ours. We cannot expect 100 per
cent. production at any time much less

under war conditions. It seems

-Production

to

me

that to make calculations of exact theoretical percentages under these conditions is
to use false values, seeing that there is no
such thing as 100 per cent. perfection and

that a certain incalculable amount of
shortage must be due to causes over which
neither the workers nor the managements
have any control.

I believe it would pay the Prime

fied that difficulties and delays were

is to

sometimes inevitable and were not due to
bad management, they would work to-

gether to minimise the troubles and to

overcome as as

mutual wanted, confidence them above far between all, is possible. workers nationalise What and

management which is so obvious in some

firms and wholly lacking in others. It
is evident that the old-established firms
with their traditions and experience have
great advantage over the newer firms put

up for war purposes, but I believe that

confidence can be forthcoming throughout

industry and that it can give us the increased production we want. The less
recrimination and destructive criticism
the better. There should be no victimisation of managements, shop stewards or

other workers. The attention of the
Ministers concerned should be called to

specific cases. All parties concerned
should be given the opportunity to know
what the country expects of them, and
they should be given the opportunity of
putting into practice the only remedy for

our troubles work together, to stick

together and to stick to work. Lord
Beaverbrook has been mentioned. For

what I have heard and read of that
gentleman he gets things done ruthlessly

and regardless of. consequences. The
Prime Minister knows him and trusts him.

No doubt he says to himself, I want
aeroplanes now. I want tanks now. I
will get them by hook or by crook or by

Beaverbrook, and Beaverbrook gets

them.' I have a feeling that we can
thank Providence there are not Beaverbrook quads or worse still, quintuplets
-each ruthlessly getting on with his job
at all costs. One Beaverbrook may be

able to stand, but four or five of them
would produce chaos. The Admiralty

to speak to the shop stewards and workers

seems to get what it wants by less violent
and disturbing methods.

over the air in order to encourage them

I want to make what I believe is a

Minister, who is our plus V. broadcaster
and to say how much he appreciates what

they are doing and are prepared to do:

and at the same time to talk to the

managements and ask them to cast aside

all peace-time prejudices and to keep in
close touch with their work people so
that men and women could be encouraged
to understand their position and to put in

their best work. It is important that in
every factory in the land not only the
managements but the workers should

know how much depends on every man

House into

It is the

practical goes suggestion. Recess, Members that when should each

take a busmen's holiday and that

one of us who receives complaints should
himself go and see the manufacturers and

workers and talk to them, explain our

position and try to straighten things out.
See what might be accomplished if 400
or 500 of us lent a helping hand in this
way instead of limiting ourselves merely
to being letter boxes to receive complaints

Supply: Committee

29 JULY 1941

or loud speakers to voice them. Nothing

short of sticking together, working together and sticking to work will see us
through. I see that the hon. Member for

of him
asa sort
of
seems

Seaham (Mr. Shinwell) is present. I have
spoken Moans. To-day the he unofficial to No Minister be doubt he
of
Lord High Execrationer.

acts with the best intention and as a
supporter of the Government, but

I that nothing help
the
strong
hope enemy and that I the have hon. said Member's will

execrations will be directed direct to Ministers in their capacity as Ministers because

-Production

1318

the war wishes to disparage his efforts or
to suggest that he is, in any way, lacking

in those gifts so to

I

1317

think country he in would these necessary difficult times. guide But the

be the first to agree that
no one has a monopoly of wisdom. Each
of us in this Committee has a responsibility
to make his contribution. Mere carping
criticism, mere fault-finding, is easy when

we see and

to make it should
a constructive character. I endorse
what the right hon. Gentleman said about
the great efforts made, particularly after

have be of criticism flaws here there, but always if we

Dunkirk, I should like next to pay a

the enemy gloats when these sort. of
speeches and questions are delivered in the

House. The last thing any of us would
wish to do is to give information to the
enemy.

a
women
last
war.
as can it is
special tribute to the women. We hear

to
in of
theare
war.doing
I am referlot what of As what far the I see, did in the nothing

country they in this many not parts

Sir Percy Harris (Bethnal Green, South-

West): I think anybody who heard the
speech of the Prime Minister on our war
production will agree that this extra day's
Debate-an exceptional thing-has been

ring to their work as bus-conductors or

porters work in the

factories. but to I their
have
munition
seen
women
doing

foundry work of a heavy character-

well worth while. Criticism of our pro-

refined women who had never done rough

comes, must not be interpreted as an
attack upon either the Government in

materials and doing jobs of a most dangerous character.

ductive effort, from whatever side it
general or the Prime Minister in particu-

work in their lives handling heavy
Although I agree with the Prime

lar. I am convinced that the one man
who is indispensable to victory is the

Minister about the inadvisibility of quoting
percentages, I am convinced that we are

Prime Minister, not only because of his

still a long way below our peak in pro-

immense influence in our own country and

duction. I think that is a good thing, and
should be an encouragement, because we

the confidence which the mass of the

on

account people have of his in his great personality, influence but in the

United States of America and throughout

our Dominions. There is no alternative

Prime Minister. He has rival. It
very
in the
last
a
Member different
of nofor
war.
was two
was
Parliament
at Ileast
years in the last war.
then
rivals Prime Ministers Both had our half-a-dozen war-time

the post. When Mr.

the
of
that
on, even when the hon.

was
I remember the
ing Prime and for Minister Asquith lobbywent Member for Carnarvon
and canvassing names right

was Prime

in the mind

were Lloyd always George) public Boroughs Minister the names there (Mr.

or four men who
the need arose.
of of his three place if could There have filled was,
course, Mr. Asquith himself, there was

another ex-Prime Minister then sitting in
the House, Mr. Balfour, there was Mr.
Bonar Law and, of course, the present
holder of the office.

The present Prime Minister reigns

supreme, and no one who wants to win

want our enemies to realise, and our

friends to appreciate, that we can do still
more if we strengthen our organisation, in
the light of the great experience gained
during the last two years. We started late
in the race, and it is difficult to make up
leeway except by a terrific spurt. There

was a terrific spurt a year ago, as the
Prime Minister has pointed out, but we
want more of those spurts if we are to
reach the peak of our production. After
all, the Ministry of Supply was started
only one month before the war-two years
too late. I remember a speech by my
right hon. Friend the Member for Carnarvon Boroughs, I think in 1937, pressing for the production of jigs and tools.
If his advice had been followed, some of

the difficulties and problems which
Ministers of Supply have had to face
would have been largely prevented.

There is another factor which we
ought not to ignore. When war broke
out we had hardly recovered from IO

1319

Supply: Committee

HOUSE OF COMMONS

[Sir P. Harris.]
years of industrial depression. You cannot have the luxury of 2,000,000 idle
men and expect to resume all at once
efficient industrial production. The engineering and shipbuilding trades were
special sufferers in that depression. Many

of the more enterprising spirits in those
trades left them for other occupations.

-Production
1320

referred, but perhaps my sub-committee

one more cautious

is reluctant of to the rush ones. It
into print and publish
reports, but it has been about the
country studying on the spot the

of and shipyards.

even
more
it has
been
the factories
important,
Perhaps
inter- work
managers men.
we have not

My right hon. Friend the Minister of

efforts viewing Committee to the orthodox and confined Upon our the

Labour has made gallant efforts to seduce
them back. But it is one thing for a man

to us us

to leave an industry and quite another
thing to get him back into his old job;
and we must also recollect that many of
those who remained in the shipbuilding
and engineering trades lost a lot of their
mechanical and industrial skill owing to
long periods of idleness. The same consideration applies to managers, foremen
and charge-hands. Such workers cannot
be made in a minute. Anyone who knows
anything about industry knows that they
have to be discovered, and trained. Even
under the pressure of war you cannot
always put your hands on the right men

to fill gaps in the ranks of managers,

foremen and charge-hands.

the 1922 big
same contractors.

It slumps is the of with and 1929 many During

industrial undertakings changed hands,
and in place of trained directors with an

inner knowledge of the industry-often
an hereditary knowledge-there came in
as directors financiers whose concern
primarily was to look after the financial
interests of the shareholders. That is a

cannot what
I fromwemen
in is
into for

channels. We
outside

one we received

encouraged and give people from information, to On e have come the
of

evidence hand and, of lack have planning and serious bad

progress, on the other, of bad time.

keeping. Every sub-committee has had
similar evidence and you cannot divorce

the two problems. In failure to dove
tail a job responsibility starts at the very
top, and goes right down to the men.
We have had evidence of men hanging
about
of bad

because
of industries had not been well thought out. This
because the planning organisation their and

is brought about largely through weak-

nesses

to men on or the bonus
and to at the piecework very top. It applies equally system

men on hourly jobs. The men

are discontented and they find it difficult
to understand why there should be slack

time. I do not want the impression to

get around that this is universal. It
varies from place to place. One of the
very serious causes is that there is an impression in factories, workshops and ship-

yards that the work is being done upon
a cost-plus basis. Men are saying,

factor have which heard ignore, some but areas

does not make much difference to the boss
or the company because the Government

financial have been brought directors industry that

wrong principle, but human nature being

rather sinister. The new

have to pay That is a thoroughly

reasons, are rarely seen by the
their visits
employees far between. because are few

what it is, it is very natural. It does not

and Generally, their visits

apply to all shipyards and factories alike.
but varies from area to area and from unit

thefinancial
interests
the look after
monthly and of
only shareholders

to unit. If management is bad in peace
time and a shipyard or factory is badly

are then to

or the banks.

We have to realise all these things

we are about
our
of them still

some finest yards, factories,

production, have when of but talking the in spite increasing we

workshops and mechanics in the world.
Of course, generalisation is dangerous,
and conditions vary from
workshop
to
tory and from factory
workshop.
to facfault it is difficult
and

portion Where I there blame is between management to apmen.
am a member of a Select Com-

mittee to which the Prime Minister

run, soon to account
by
as
not
and
to
tion when
competition, it is very it brought does get orders

therefore is quite different goes the in wall. war-time, The posi- but
not only
is there no competition,

every factory is badly wanted and there
is a shortage of plant and buildings.
The Government have a responsibility

to level up the laggards and the lame
ducks and to bring weak organisations up

to the best standards. Managements
should be pooled and weak ones weeded

Supply: Committee

29 JULY 1941

-Production

1322

1321

of tanks, and now there is a great tank

Much can be done by the exploita-

stunt with a suspicion that it may

out. tion of local sentiment. Take shipyards,

for instance. There are certain obvious
areas such as Clydeside, Merseyside,
Tyneside and the Bristol Channel. There
no reason why the Government,

theasmen
is done in of
their vast powers,

seems using most competent should together not in bring those

for instance

be at the expense of shipbuilding. I suppose it is inevitable, human nature being
what it is, that forceful personalities at
the head of Departments shall naturally
wish to assert the rights of their particular
section in order to produce the goods they

to The Minister a and
a
have made undertaken challenge, find. very Prime proper

and the whole area

challenge. He said to the Committee,

areas, industry, put production the in the concentration cotton trade, under

You talk a lot about a Minister of Pro-

one control. This would present a great
opportunity for the exploitation of local

duction-produce your man." I agree
that that is a very right and proper challenge, and if we had half a dozen men

sentiment. There is very strong local feel-

ing that the best ships are built on the
There is

that the best are on the

of the calibre of the Prime Minister I think
we should be able to answer it easily. But,

Clyde. ing and equally the ships strong built local be feel-

just as the Prime Minister, as Defence

about Tyneside and other places. The

Minister, co-ordinates the strategy of the
three Services, I think the Committee will

Merseyside; same can said

one
and
organising the ability at

local sentiment could be exploited and the
various

up to yards standard and machine which by shops utilising would brought be

the Government's disposal. I believe
would result in increased production and

it

inthe

agree that it would be a great thing to
have someone in a similar position to co-

ordinate production for the three Services. We need some guiding hand to
co-ordinate our effort and eliminate the
feeling that very often our production is

lopsided and is not thought out in the

organisation of labour. would be a

interests of the war as a whole.

mistake if the Committee got the idea that
private companies only are at fault. There
ave been great complaints of Government
factories and the Prime Minister admitted

I am very glad to see the Minister of
Labour here. He has a difficult, and I
would like to add, a thankless task. No

for

him of a lack of energy, enthusiasm or
drive, but I do think there is a case for a

dustry improved and planning that it and would progressing It improve in

the want

making reports the of necessary of provision foresight in

housing, transport and food. It might
be well to bring the private and the
Government factories into more intimate

association by making use of the best
available ability and capacity.
I was interested to hear the Prime Min-

ister refer to that vexed word priority,
but he brushed aside, as a bit of a farce
the suggestion that there was competition
between the Departments. Nevertheless,
we have heard some very strange stories
about representatives of one Department

going down to a dockyard and pinch-

ing the supplies, machine-tools or
for

no doubt. I am

one envies him his job and no one accuses

properly thought-out wage policy. That in-

testing White Paper published only the
other day shows that his purpose is good
and his objects sound, but when it comes
to translate them into practice I am afraid
he cannot claim at any rate this time an
equal success. Obviously, if there is not
enough material to go round and if wages
go up, and if one section of industry has

a lot of money to spend, it must run up
prices, and I realise it wants courage to
grasp the nettle. During the last war great

courage was shown. I do not want to
under-estimate the difficulties. One of
the greatest tributes that could be paid to

the present Minister of Labour was a

industrial at a

to those difficulties are

statement made to-day that there was no

got over and that the Departments are
a happy family working together without unhealthy competition. Still, rightly

tribute
to and
him,if all. he That has done is
great great
dispute

through materials hear over-zeal, that needed another Department, being glad

or wrongly, there is an absence of a long-

term policy, and a feeling that we are
thinking too much in terms of the needs
and necessities of the moment. There
was a great push for planes at the expense

nothing else he will have justified his
occupation of his present position.
If we are to prevent inflation, if we are
to keep prices at a steady level, the Minister will have to take a more active part
and not leave it to sectional bargaining.
D

No. 91

Supply: Committee HOUSE

1323

OF COMMONS

[Sir P. Harris.]
He will have to recognise that a common

standard is required in war-time if the
burden of war is to be evenly spread.
If one section, owing to special conditions

and a special demand for their skill or
owing to a shortage in their particular
trade, gets a high standard of wages, it
reacts right through the industry and
causes discontent, and we well know that

in certain sections very high wages are
being paid, due maybe to the demands
on those sections of employment. All I
am pleading is that the great power and
influence which the Minister has has an
intimate relation to the problem of inflation and the need to prevent the setting

in motion of that spiral which we saw in

the last war. In spite of the efforts of

the Chancellor of the Exchequer to keep
down prices we still see an inevitable up-

ward tendency. I believe the Minister
would have the approval of labour and
of trade unions, as well as of the whole
House, if in the discharge of his duties
he gave a real lead and put forward a

clearer and more incisive labour and
wages policy.

Dr. Edith Summerskill (Fulham,
West): Would not the hon. Gentleman
agree that workers are being paid at a
standard rate, and that they only get what
he calls large wages because some of them
work twelve hours a day for seven days a
week? Does he therefore suggest cutting

down the wage rates or the hours of

labour?

-Production
1324

the people and, above all, maintain the

health
womenand
and physical
children. condition of the
Mr. Silkin (Peckham): I am sure that
the Committee must have listened to the
Prime Minister's speech with very con.
siderable satisfaction. It was indeed
gratifying

the of

we are in

successful to efforts hear that of the tremendous making very and

tions.

was not entirely

Minister's direction But speech, I felt, of the right that production he through the Prime muni-

directing himself to the criticisms which

had been levelled-and I think, quite
properly, because it is a function of Par
liament to make such criticisms. I think
he did not direct himself to the criticism
that, although great efforts had been made
and increasing efforts were being made, the
maximum effort was not yet being put forward, and that in fact it was possible for
this country to make even greater efforts

than it was making at the present time
The speeches of hon. Members in the
Debate three weeks ago were, in the main
directed to that point, and when my hon.
Friend the Member for Kidderminster (Siz
J. Wardlaw-Milne) stated that the country
was making not more than 75 per cent.

of the efforts which it was possible
make, he was not in any way belittling the
great efforts which were being made and
will continue to be made.

I want to point to specific cases in
which, I think, improvement could be
made, and which are having the effect of
reducing our effort below the maximum

of which we are capable. The Prime
Sir P. Harris: I certainly do not suggest
cutting down the rates of wages. I wish
labour and the whole nation to have good

real wages which depend on inflation
being prevented. That is the fundamental
thing, in the interests of labour, of women
and of the whole community. It means
that we should prevent the tendency of
prices to move upwards, which, in spite
of all our efforts in the way of subsidies

and rationing, they are doing. I there-

Minister said that there was now no conflict between Departments, and that they
were working smoothly and in the closest

co-operation. He referred to the fact
that there was complete agreement about

their programmes. I do not think it has
ever been suggested that there was any
great dispute between Departments about

their programmes. I do suggest that

there is considerable difference of
opinion, or competition, in the carrying

fore say that I believe it to be in the best
interests of labour that a clearer and more
incisive wagerpolicy should be laid down
by the Minister to protect the interests of

out of these programmes, and particularly

the mass of the and
people,
to prevent
to see

the
perfectly
Committee. well known That is, every that the Member Ministry of

are
are
country. At a time like this it is
the sectional increases increases, they general that throughout if there

vital to keep prices steady and stop inflation if we are to keep up the morale of

in connection with dealing with labour.
I want to suggest something which is
to

is, on to

of

Aircraft holding Production unnecessarily has been. other and skilled still Delabour
which is necessary for

partments. My right hon. Friend the

Minister of Labour knows that there has

Supply: Committee

1325

29 JULY 1941

been a survey of labour in the Ministry
of Aircraft Production factories, and that
indeed thousands, of skilled

have been are super-

to the
workers fluous
hundreds, requirements found who of those
factories. It may be that there have been
reasons for holding on to these skilled

workers. Perhaps they were being
retained because it was thought that they
be needed, if orders and work came
but I do

of
has
labour for making use of these

might along, Labour suggest ample that machinery the Ministry skilled and

workers during the time they are not
used in their own factories.

Hefactories
hasaretomore
to

being other fully power transfer where they those workers

needed. It can be done temporarily,
until such time as the aircraft factories
are ready to use these skilled men again.
If that sort of thing goes on, if thousands
of skilled workers are not being used to
the fullest extent in the factories in which
they are employed, it cannot be said that

we are putting forward our maximum
effort, and to the extent that that is true,
our effort is being weakened.

Another direction in which labour is

being misused is by the Ministry of
Supply. The hon. Gentleman who spoke

for the Ministry of Supply in the last

Debate referred to the fact that there had
been an agreement by which workers had

been given priority, for certain Royal
Ordnance factories, for a period of some

months, and that that period was extended. Owing to the fact that this period
was limited, the Ministry of Supply made
requirements for labour far in excess of

what they really needed. In a number
of factories there were far more workers
than could be used, with the result that,
in some cases, women were found to be
knitting and men playing cards day after

day. It is no use my right hon. Friend
the Minister of Labour shaking his head.

The Minister of Labour (Mr. Ernest
Bevin): There have been so many of these

statements made. I would appeal to my
hon. Friend to send me the names and
addresses of these places in fairness to the
the
the
management bers send them and to me men. as Chairman If hon. of Mem-

Production Executive, I will have every
case investigated.

-Production

1326

Mr. Silkin: I will let
I can assure him
statements Friend
know. my right that these hon.
are absolutely

It is no use him
his been head. verified. They
and admitted
shaking have
havetrue,
been
by

representatives of his own Department.

Mr. Bevin: If an hon. Member has

a factory, has not
done
duty,
and
sent
found his that public
in why
particulars he
to the Minister in order that the Minister
may investigate?

my these
do

in

Mr. Silkin: I consider that I am

public and duty I shall in stating facts doing here,

proper use of the facts the
to-day, national
making
theright
my public
in
interest.
The
hon.duty
Gentleman is perfectly aware that I am not able
to state in public where the factories are.
It is perfectly true, and there is no dispute

about it, that there are factories where

more labour has been asked for than the
factories could absorb, week after week,
until the Minister of Labour ascertained
the facts and reduced the supply of labour

by half. In the meantime, there were

hundreds of workers in a number of factories for whom no work was available.
They could not be absorbed, partly because the equipment was not available,
and secondly, because the Ministry of
Supply had forgotten the fact that, when
large numbers of workers are employed,
supervisory staffs are needed, and they
had not applied for the supervisory staffs
I hope that is not going to be denied, because it is a fact.

The Joint Parliamentary Secretary to
the
millan): Ministry Is the of hon. Supply Member (Mr. Harold speaking Mac.

of

Royal Ordnance factories or of contracting
factories?

Mr. Silkin: I am speaking of Royal
Ordnance factories. Those are facts
which, incidentally, I have ascertained
from representatives of the hon. Member's own Department.

Mr. Logan (Liverpool, Scotland
Division) Has the hon. Member made
any complaint to the Department?

Mr. Silkin: I am making my own
speech.

Mr. Logan: I know the hon. Member is

making his own speech, but I have a
Mr. Ness Edwards (Caerphilly): That
will be something new.
No. 91

right to intervene and to ask what speech
he is making. What does he mean by it?
D2

1327

Supply Committee

HOUSE OF COMMONS

-Production
1328

Mr. Silkin: I have ascertained the facts
only in the last few days.

Mr. Harold Macmillan: Has the hon.
Member communicated this information
about staffing to my right hon. Friend or
to me?

Mr. Silkin: The hon. Gentleman knows
I have not communicated with him.

require, perhaps, 2,000 workers, no other

factory making things in a lower priority
can get any labour at all until those

I as an

It

workers quote have this been provided. example-that may 2,000 there be

are half a dozen factories whose production is very greatly impeded because

or men.

or men could

need increase those two two their three three they If they could greatly they get

Hon. Members: Why not?

Mr. Ness Edwards: Is it any use?
Mr. Silkin: I have ascertained the facts
by evidence from the hon. Gentleman's
own Department. These facts are known
to his own Department.

Mr. Bevin: May I ask whether this investigation was made by the hon. Member as a member of the Select Committee.

If so, is not evidence given by our

officials confidential until revealed to the
Ministry and to the House of Commons?

Mr. Silkin: I am not disclosing details
of the evidence. I am disclosing facts
which are known. I consider that I am
perfectly entitled to state the facts on this
occasion.

Mr. Bevin: The hon. Member is in a
privileged position.

Mr. Silkin: I turn from that point but
I do submit that, if these facts are true,
as I say, it does disclose a very unsatisfactory state of affairs, and shows that we

output, but, under instruc-

tions given to divisional controllers, or,
at any rate, because of the way in which

those instructions are interpreted by
divisional controllers, any priority that
is given must be fully satisfied before fac.

tories of lower priority are provided with
labour. That may not be the desire of
the right hon. Gentleman, but I suggest
that he should investigate the position
to satisfy himself that the prorities are
being operated in the way he desires. I
think a little inquiry will satisfy him that
they are not.

It has been suggested that idle time in
factories is a relatively small matter, but

I am informed-an this is not based on
evidence which has been given to the
Select Committee-that in some of the
Royal Ordnance factories men are idle
for two or three weeks at a time, waiting
for material, or for some other cause.
recognise that the difficulty over material

is a serious one, but we are to-day
acclimatised to the difficulty. I suggest it
is time that we prepared for those difficulties which we know are likely to arise.

are not putting forward our maximum

One cannot help the non-arrival of

The Deputy-Chairman (Colonel Clifton

to be taken into consideration. I suggest
also that there is considerable delay in
transporting material from one place to

effort.

Brown): Is the hon. Member talking
about evidence given before the Select
Committee on National Expenditure?
Mr. Silkin: It has been given.

The Deputy-Chairman: That is quite
out of order. The report has not been
published, and the evidence may not be
discussed until that report is laid before

the House.

Mr. Silkin: I am very sorry, Sir. The

report is in draft. The next fact with
which I wish to deal is the statement of

the Prime Minister that the Priority

Executive is now dissolved. There is no
question that when a priority is given for
a commodity, anything else is frozen out.
I suggest that when a priority is given for
a commodity and a factory say that they

material which has to come from

America, but it is a factor that ought

another, and that some of the delay is
avoidable. Cases have been brought to
my notice in which it has been necessary
to transport materials very quickly, and
it has been decided to use road instead
of rail transport, for the sake of speed;
but, having come to that decision, the
Departments concerned have decided to

invite tenders for transporting the

material, which has caused some delay.
Delay also arises in transport because of
contradictory instructions given by different officials. The contractor may be ordered
to send material by road and also to send

it by rail. He is put in a difficulty, and

does not send the material at all until he
has ascertained which way he is to send
it. I ask the right hon. Gentleman to look

1329

29

Supply: Committee

JULY

-Production

1330

because I am sure that there is no Member of the House who has any other desire

into this question of transport. It would
be

1941

as

than to help in this vitally important

sation very could valuable be informed if his transport long organi- in ad-

question of production.

vance as possible when it is necessary to
transport goods.

Sir John Wardlaw-Milne (Kidder-

I think production could be speeded up
and increased, if considerably more attention were paid to the placing of contracts.

minster): We haveaheard
most to-day from the
speech

I am informed that in certain areas far

our scheme of
war as the

comprehensive whole Prime of Minister dealing interesting with and the

more contracts have been placed than the

contractors are able to carry out in a

it munitions and from of production Government of the see

reasonable time. I understand that these
contracts are placed by the headquarters
of the Ministry of Supply sometimes without consultation with the regional repre-

the war. I have no quarrel at all with
that speech. I have no doubt it will be

the point of view of what the
Prime Minister considers is the extent of
the effort of the country harnessed to win

sentatives, and that if there had been
such consultation, the Ministry would

of great benefit if, indeed, any false impression has gone about in other countries
as to the determination of everyone in this

have been informed that it was very difficult for the firms concerned to carry out
the contracts. There is an area organisation which, I understand, was set up for
the express purpose of advising the Min-

country to secure the defeat of Hitler.
But my right hon. Friend will, I

me say that to some it

forgive that
seemed
if not
I amdeal
of sure,
us
he did
with the
the Debate

istry of Supply on the capacity of an

ago. one of his

area, but this organisation is not being

used to the extent it could be. I have

weeks questions said raised In in sentences some indeed three

he that the criticisms made then were

referred to the placing of contracts with
firms which are quite incapable of carry-

matters of detail. Well, they may be

ing out the work because they have

matters of detail, but they are very essential matters, attention to which make for

already too much in hand; there are also
cases of contracts having been placed with

total production, and while I do not in
the least quarrel with the Prime Minister's
statement regarding the tremendous effort
which is now being made, I am bound to
say that some of us feel that the criticisms
made have not yet received an answer.
The Prime Minister also stated in one
of the early passages of his speech that
almost all factories were under the direct

firms which, by reason of their lack of

organisation, their lack of machinery and

their lack of experience, are unable to
carry out the contracts.

of

I know of a firm which has a very small
workshop, housing a few machine tools,

run a mechanic and a

was
a contract
of
This by firm
semi-skilled
given £100,000
boy.
to manufacture gun mountings, work

are of out

which they had never done before, which
or with

available. I suggest that if
there had been consultation with the

with they they their have quite machinery incapable carrying the labour

regional representatives the contract would
I

not have been placed with that firm.
have mentioned some of the methods
which I think would make for increased
production. I suggest that what I have

is I to
the that

my
hon. these
are made in the
belief that are with the
to
improve
in
that they will be taken in the

Committee assure said justifies doing. work would the like Select

honest criticisms right Friend good faith, that in

or indirect control of the Government. I
do not quarrel with that, but do not let

that be put forward as something by
which we are asked to believe that all
these factories are working to perfection.
I may be wrong, but it seemed to me that
the Prime Minister almost suggested that

as these factories were working under
direct or indirect Government control,
everything was perfectly all right and that
no criticism could possibly arise.
Mr. Harold Macmillan: I think what the
Prime Minister was arguing was that as

these factories are under the control of
the Government, the question of interDepartmental rivalry does not arise.
Sir J. Wardlaw-Milne: My hon. Friend

sole the hope desire they production, true, and

is, I believe, mistaken. I think he is

spirit in which they are offered, and not

dealing with another point, to which I
will refer later. I do not want to labour

in any carping spirit. I hope that this
general Debate will have the same effect,

the matter unduly, however, but my right

1331

Supply Committee

HOUSE OF COMMONS

Royal Assent

1332

[Sir J. Wardlaw-Milne.]
hon. Friend said that a great many factories were under the direct or indirect
control of the Government, and the impression he gave me was that everything
therefore must be right in these factories.

spondence with people of all kinds and
also with many Members of this House,
and at any rate I am entitled to say this,
that among all those with whom I have
had contact about this matter there was
only one case and that very guardedly.

Peckham (Mr. Silkin), who does excellent
work as chairman of the Select Committee's Sub-committee on Home Affairs, has
special opportunities of knowing that all is
not perfect in Government factories any
more than in other factories. There is no
reason to suppose that it would be so. In
a later part of his speech the Prime Minister said that in many cases Government
Departments work through their own con-

estimate. Many have suggested that I

The hon. Gentleman the Member for

in which I was not confirmed in my
was over-optimistic.

Whereupon, the YEOMAN USHER of the
BLACK ROD being come with a Message,
the CHAIRMAN left the Chair
Mr. SPEAKER resumed the Chair.

ROYAL ASSENT.

tractors. There is no doubt that that is

largely true, especially in connection with
the Admiralty, for whom certain contracIn
tors have worked for many years.
those cases there is closer liaison between

the Department and the factory than

would otherwise be the case. But a
remark of the Prime Minister's with which
I especially want to deal was his reference to an estimate I made in this House
that the country as a whole was not working at more than 75 per cent. of our total

possibilities of production. That statement was not made three weeks ago for

the first time. I made it in this House
on 22nd May, and again on 10th June of

this year, and at that time it was not
challenged at all. With the permission
of the Committee I would like to repeat
the words I used on roth June. I said:
if I had to guess what was the figure
of efficiency of our effort to-day, I would not

put it higher than 75 per cent. of the full
possibilities of the n."-[OFFICIAL RE.
PORT, 10th June, 1941; col. 132, Vol. 372.]

I never for a moment suggested that any

one branch of engineering or one particular factory was not working to full
capacity. Of course there are cases of
that kind. I know some factories which

Message to attend the Lords Commissioners.

The House went; and, having re-

turned

Mr. SPEAKER reported the Royal Assent
to:

I. Colonial War Risks Insurance
(Guarantees) Act, 1941.

2. Financial Powers (U.S.A.
Securities) Act, 1941.

3. War Damage (Extension of Risk
Period) Act, 1941
MEASURE TO RECEIVE THE ROYAL
ASSENT.

Diocesan Reorganisation Committees
Measure, 1941
SUPPLY.

Again considered in Committee.
(Sir DENNIS HERBERT in the Chair.)

Question again proposed,

That a sum, not exceeding £90. be
granted to His Majesty, to complete the sum
necessary to defray the charge which will come
in course of payment during the year ending

could not produce another 5 per cent. or
even 2 per cent. output, but I would not

on the 31st day of March, 1942, for the
salaries and expenses of the Ministry of
Supply, including expenses of the Royal

moment that I vary in the least from the
conviction I held and expressed on 10th

that the estimate which I made in the

like the Committee to think for one
June. Taking our total effort, we are

still short of what we can do, and the
great advantage of these Debates will be

if, as a result of them, the nation is

brought to realise that we must get that

extra production. Since I made that
speech I have had many hundreds of
contacts, both personally and by corre-

Ordnance Factories.

Sir J. Wardlaw-Milne: I was explaining
House on two occasions previous to the
recent Debate, and which was referred to
by the Prime Minister to-day, was an estimate of what I considered to be the total
possibilities of the nation harnessed to the
production of munitions of war. I do not
suggest, and I have never suggested, that
it was anything more than an estimate.

It

1333

Supply: Committee

29 JULY 1941

-Production

1334

surprised that that has been the case; but

could not be. It would be quite impossible

I really cannot believe that in Australia
or in America our cause can be permanently harmed by earnest criticism in

to give figures on a basis that would

I my
right
in my statement.
an actuary or an accountant, and

I that was one

this House, and by our our

to apply and

satisfy gather quite understand it-which of the difficulties this

determination in every showing remedy

every means our power and to make

hon. morning Friend dealing the Friend Prime with Minister had

every sacrifice necessary to secure the

teresting figures of the increase in the
number of people working for victory in
the country now as against a year ago.
He said that there was one-third more
our

greatest possible effort of which this

sidering that of

thought it could only be harmful, if at
all, to a limited extent in the United

My right hon. gave some very in-

country is capable. I cannot believe that
in the end we suffer by having made our

object plain, especially among our
brethren in Australia, and I should have

was more, con-

people production working there one-third in had factories been and difficulties and that

the black-out, air attacks, and so on, the
situation was not at all unsatisfactory. To
me a comparison of that sort, if I may say
so with the very greatest respect to my

States. I appreciate that my right hon.
Friend was kind enough to say it was
not the speech I made but words taken
from it and divorced from their context.

right is hon. Friend, question is quite of comparing meaningless.

One appreciates that there are great difficulties for newspapers in these days, and

This
not a one
time period with another There is
nothing with which one can compare. It
can only be a question of one's own idea
based on the evidence one can secure as
to what the country could do.

does me the honour of reading my speech
on the last occasion could possibly say I
failed to appreciate the difficulties facing
the Government or that I attributed blame
recklessly either to the Government, to
employers, or to employed.
In that speech I referred to three points

One of the objects I had in view in the
speech which I made and I can assure
hon. Members that I gave that estimate
only after very careful consideration-has
been achieved, because it has brought to
the notice of the Government that a very
large number of people are not satisfied

that we are pulling at the full 100 per
cent. rate, which ought to be the case in

our war effort. I also stated before
business was interrupted that I had had

many contacts and that no one has

particularly which show that I was not
putting forward merely carping criticism.
Firstly, I referred to our unpreparedness
when the war started and that our difficulties to-day are proof of the earnestness

of our efforts to avoid war in 1939.

suggested I was pessimistic in making
that statement- if anything it was said
that I was over-optimistic. An immense
number of new factories which did not
come into
I do year.
not operawant
tion previously during exist the last have

to quarrel with the Prime Minister's

but,
I do not fact
our is one-third than

figures__I am very glad he is so satisfied-

I

ago output is entirely satisfactory. think more the
a that year personally,

one appreciates that every Member of
Parliament has to be particularly careful
in what he says in time of war. At the
same time I do not think anyone who

think we could do better than that.

Secondly, I dwelt on the time required
for the change-over from peace to war
conditions. It is surely quite clear also
and here. I am referring to an earlier
remark made in the House by the Prime
Minister that my remarks could not be
taken as being criticism of the present
Minister of Supply or the present Presi-

dent of the Board of Trade. I believe
that both these gentlemen have done
excellent work, but that does not in the

have had an adverse effect in Australia

least detract from the point I am making,
namely, the necessity to drive home to
the people of this country that there is
still more that we can do, and that we
are not doing all we can and putting in
that little extra which is necessary if we
are to win in reasonable time. To me,
reasonable and careful criticism of that

or America. The Committee will not
think it strange, perhaps, if I say I am

kind is the duty of the House of Commons.
If we are not fighting for free discussion

The Prime Minister also spoke of the
these

in much
theI in

of other
the effect remarks which
remarks speakers of mine had had, and

regret, any remarks of mine should

particularly Australia. that I very United regret, States and deeply

1335

Supply: Committee

HOUSE OF COMMONS

-Production
1336

[Sir J. Wardlaw-Milne.]
in the House of Commons, for free speech

and for a free Press, indeed, I do not
know what we are fighting for, and, of all

people, I believe my right hon. Friend
the Prime Minister would be the first to
support me in that view. Clearly it must

be
to
we
say, our
our but object equally be it is careful duty in what to try,

not to find fault with the Government,
but to spur them on to obtain that extra
production which is so necessary and to
point out where changes are required. I
have not always seen eye to eye with my

important work he is doing. I am
the Minister of Labour will not desire sure the

Committee to believe he is entirely satis.

fied with the present position of affairs
We all know there is a great deal more
still to be done in training labour and in

placing it.

There is one point, however, upon
which I must dwell for a moment.
to it

fact, was one main his

Prime it Minister referred of the points again of The

speech. It relates to the desire in some

parts of the House and among a

a of

outside to the

right hon. Friend in political matters. I
differed entirely from his view in one particular question some years ago, but he
has had no better friend or stronger sup-

dealt referred with I spoke that here point guardedly ago

porter in the last months since he took

to avoid the difficulties which exist-and

country owes him a great debt for his

determination, drive and initiative which
are of inestimable value, but at the same
time, however gifted one man may be,
one cannot help feeling that the country
might benefit if that task could be a little
more spread over others and his heavy
burden correspondingly reduced.
I do not wish to draw attention to-day
to matters to which I referred on the last
occasion. It is noticeable, however, in
connection with the references I made

then that there has been a change, a
minor change perhaps, in the working of
the Essential Works Order. I am not suggesting it is as a result of the remarks
made during that Debate, but at any rate
it has been a change which I hope will
lead to a more satisfactory working of that

legislation. I am very tempted to deal

with some of the difficulties of the Minister

of Labour and his Ministry, such as the
inadequate training facilities in factories,
vacancies in the training centres, and the
further measures required to successfully
harness the willing labour of hundreds of
thousands who for the first time in their

lives are devoting themselves to very

arduous work under disagreeable and often
repugnent conditions. The Prime Minister
seemed to me to want to shield the Minister

of Labour. The Minister of Labour is of
a very stalwart structure, and he seems to

me to be well able to stand on his own
I do not know of anyone attacking him
although I do not think he can possibly
expect to be free of criticism in a time like
this when all of us are so deeply interested

in obtaining the maximum results in the

a few weeks
rather

I to the necessity for co-ordination

everyone knows they exist-between
Government Departments and between
Departments and various factories, and
came to the conclusion that there seemed

then no other way out of the difficulty
except by the appointment of a Ministry

of Munitions. I was well aware of the
fact that a complete change-over of this
kind at this stage of the war was a matter
which would have to be very carefully

considered There is no doubt that
would be apt to hold the machine,

a but even

haps for weeks. only for I have few therefore days
up possibly
perbeen
consider-

ing since then whether there is not
another measure which could be put for
ward as a constructive proposal to enable
the Government to deal with the various
difficulties which I and other Members

have enumerated to-day and on the
previous occasion.

It seems to me that there is an alterna-

tive which might be tried. The Minister
of Labour has made certain alterations
in the Area Boards. I agree with the last
speaker that these changes have not gone
far enough to make any radical alteration

in the present procedure. These Area
Boards, or Regional Boards, as they are
now called, are still mainly advisory. In

that capacity I do not think we will get
very much further help from them.
suggest that the Government might consider giving real power to these Regional

Boards to act in their areas under one
Minister in Whitehall-I do not care what
you call him- a Minister of Munitions or
a present member of the War Cabinet free
from Departmental work and in control of

the Production Executive What we

I

up his present heavy responsibilities. The

appointment When number of people of Ministry Munitions see great

1337

Supply: Committee

29 JULY

want is not advice but action in the
regions. They have the knowledge there
of production capabilities in their areas,
and, if we could get a Board consisting
of representatives of the different Ministries, presided over by a leading local industrialist as chairman and a leading
trade unionist as deputy-chairman, or
vice versa, with power to act in their area,

I believe we might make a very great
advance in securing all the district was
capable of producing; in the removal of

bottle-necks and in the transfer of

capacity from one part or unit in the area
to another. It would be essential that the
chairman, acting for the Board, should
have power to refer directly to one Minis-

ter in Whitehall. What we want to stop
is the present system by which problems
are referred back from the area to each

-Production

1941

1338

Time is passing. It is a little sad that,
after twenty-three months of war and
three years or more since we started to
rearm, we are still only directly fighting
Hitler, though very effectively, in the air.

us the facts. I do not

a
we lose
caste
in
Let moment
face that anywhere
think for
facing them. It
a although the

tremendous the usand
worldthe
long by time, has task taken was

get our stride, and it is

sad, one,say,
to I into
change-over
no a mean little
that
we are not

we are to-day,

achievements on are.
than great
furtherever
our
I doany
notaswant

the Prime Minister in

a
case,
he
again
similar toas
have
kindhad
of say, to
say in
the case of that we could
it because
we hadCrete,
not got
guns.the
not Why hold

have we not got the guns? Some of the
reasons why we have not got them yet

Department of the Government independently, from the Ministry of Supply

to the extent necessary are the very
matters which the Prime Minister dis-

representative to the Ministry of Supply,
from the Admiralty representative to the
Admiralty, and thus delay decisions and

missed to-day as details. It is these details

that a too
hold up output. If the Government feel
an

complete Ministry upset of Munitions at the present means stage

of the war, I suggest that they should
make these Area Boards very much
stronger than they are at present and give

them power to control production within
their areas and to refer directly to one
Minister where there is a necessity to

settle some question of policy. I am
deeply concerned at the inadequacy of the

present area organisations and I think a
policy of decentralisation on some such
lines is the only possible alternative to

that count. I want a determined effort by
every executive and every workman to get

the largest output possible and to avoid
waste of time, labour or material. It must
be unpatriotic to waste one's efforts and
to allow others to waste valuable days and

months. If we have brought that home
to the people, as well as bringing the
difficulties and problems actively before
the attention of the Government, we have
done some good.

Mr. Shinwell (Seaham): The Prime

to make the people of the country
also realise the position. If we can make
people appreciate the importance of their

Minister, in opening the Debate, made a
characteristic speech. I am bound to say
that it was a remarkable dialectical effort,
and with much of what was said about the
immensity of our task, the final outcome
of the war, the background of our production effort and the response of labour,
I am in complete accord. Indeed, so are
we all. But if the speech was intended
as a considered reply to the recent Debate
on production and the many criticisms
made on that occasion, it was singularly
unsuccessful. We expected a considered
reply to the allegations made in the last
Debate. Apart from one or two allegations to which the right hon. Gentleman

own delays individual stoppages, damage the fault by

response replied, that received said, and the that only

a Ministry of Munitions.

I have said that the first object of my
former speech had been achieved, and

that was to bring to the notice of the
Government the fact that many people in
the country are not satisfied with what we

are at present doing. I think I might

almost claim that second in
has also been and
that these is Debates my achieved, object
effort, the done
or orwhether
of
slackness on the of

we can make
man
workmen, managements
if every
part and
woman realise that it is individual effort
that counts, we shall have gone far to

achieve what we want.

no more was

we was our

criticism, which emerged from all quarters
of the House, would be duly considered.
The Prime Minister has again failed to
appreciate the fundamental nature of the
complaint which has emerged in almost

1339

Supply: Committee

HOUSE OF COMMONS

-Production
1340

[Mr. Shinwell.]

every one of the production and manpower Debates. May I, therefore, direct
attention to what I regard as the real
and fundamental issue? It can best be

appreciated if it is put in a series of
questions. Do the facts-_ emphasise the
facts-of our actual production justify the
acceptance of the view that the position is
satisfactory, having regard to the gigantic

task confronting the nation? Have we
organised the whole of our potential industrial capacity in the war effort? Is
there any substance in the complaint
made about idle and under-employed
labour in factories and about inefficiency
of managements? If the munitions position was showing a steady improvement
under the control of the late Minister of
Supply, why was he supplanted by Lord

Beaverbrook? To these question we

have received no adequate replies.

Before I deal with the questions I must
make reference, following what was said
by my hon. Friend opposite, to another

factory. We have had percentages and
statistics which are meaningless and con.

vey nothing. In the nature of the case
nothing can be conveyed by these statis.
tics. Occasionally we have heard state.
ments by Government spokesmen in reply

to criticisms which express

state of our

satisfaction with Frequently
munitions complete
progress.
wethehave
read

speeches by Ministers which were
supremely optimistic. The speech of the

Minister for Aircraft Production in the

last production Debate was a truly

remarkable effort in optimism. It was so
asy-going, so complacent and so self.
assured, probably because, as the Prime
Minister remarked when announcing today's Debate, it was not a considered

statement. Ministers are expected to
make considered statements. If they are
unable to do so, it seems likely that they
have much to learn about their jobs. On

the other hand, we frequently hear

challenges to the Committee. He invites
us to Divide and again Divide, and pre-

accounts of our munitions position which
show that the Government are fully alive
to the inadequacy of our production effort.
Statements do not lose their force because
they are made behind closed doors, and
in public Ministers manage to let the cat
out of the bag.

sumably to Divide as often as we please;
he is ready to meet the challenge. There

A superabundance of evidence goes to
prove that we could make a fuller use of

issue that emerged from the Prime

Minister's speech. If I may say so, my
right hon. Friend is very prolific in his

has, however, never been any specific
challenge to the Government. Surely it
cannot be supposed that when questions
are asked or criticisms emerge in this free

and democratic Assembly, the only
response vouchsafed by the Prime Minister
is to be the acceptance of a challenge. As

far as I am personally concerned, I am
willing to Divide the House at least twice
a week on a fundamental issue if it does
emerge, but not on the terms stated by the
Prime Minister. With Whips of all parties

fettering private Members, it is easy

enough to challenge hon. Members. The
challenge is easy when all the cards and,
indeed, all the trumps are stacked on your
side. I resent these challenges that emerge

from my right hon. Friend. There is no
occasion for them. Whether he challenges
us or not, however, criticism will be continued if there is just occasion for it, but

not with any desire to impair the war
fabric or embarrass the Government.
In spite of what the Prime Minister said,

and, indeed, in spite of this Debate, it is
still not clear whether the Government
regard the munitions position as satis-

our productive effort. Speeches and
articles by responsible trade union
leaders, many of which I have collected
and could quote, statements by workers
and by production experts and documents
issued by the Select Committee provide a
powerful case for criticism which, even
allowing for the many difficulties which
the Government have encountered, is impressive and cannot be easily dismissed.
I propose to take my stand on the ground
provided by the Government themselves
Take, for example, the admissions-for
they were admissions, vital admissionsmade by the Prime Minister during the

Debate on the Cretan episode. Was it
not conclusive that the primary difficulty
was to provide a sufficiency of arms in
all theatres of our Near Eastern operations? This is what the Prime Minister
said among other things:
A man must be a perfect fool who thinks
that we have large quantities of anti-aircraft
guns and aircraft lying about unused at the

far as are

time. I will about aircraft in a

concerned, and as our

moment, present but, large so speak expanding anti-aircraft guns is is

present production, every single gun

1341

at some necessary point or other, and
for many

is all competed

action eagerly future production for by rival months behind claimants ahead each

with very often. massive cases

one

-Production

JULY 1941

Supply: Committee

of them. [OFFICIAL REPORT, roth June,

1941; col. 142. Vol. 372.)

1342

alone. He more than any other man is
conscious of the need for attack if the
enemy is to be brought to book.

notenter
war simply
for the
the purpose
We did

of defending this island. On the other
we expect

That was a quite recent announcement, a

vital and damaging announcement.was
It

in secret so

should made, not be noted that but the criticises in statement public, the critics that
when
the Prime Minister

for making known to the country and the
world our deficiencies, he must himself

take a share and a large share of the
responsibility when he is guilty of making
be
pronouncements
urged that the of this first character. consideration It may in

relation to the Cretan episode was
strategy. But it is surely clearly established that our strategy is largely, if not
wholly, determined by our capacity to
produce and deliver munitions.

There is a stronger and more recent

criticism. The Prime Minister, in a

in his

are our resources

and hand, Minister if indicated invasion, speech as the to-day, Prime

are we so
event, pledges why of conserving
active prolific
for inready
that our
support
and so
in promising assistance? If all we have
in munitions barely suffices for the deshores, with some

fence
these
provision
for ourofinForces
the Near
East
which
itself is known to be inadequate in the
event of large-scale operations, why pretend that the production position is satisfactory and show resentment in the teeth
of criticism? Facts are facts, whatever
the Government may say, and the suppression of criticism will not enable the
Government to take the initiative. That
can only be achieved when we have an
efficient scheme of production and a flow

courageous broadcast six weeks ago, made

of munitions on a colossal scale has

an immediate response to the wan-

emerged.

by Hitler on Soviet Russia

It occurs to me, and I recall what the
Prime Minister said during his speech,

ton act of aggression committed
Since

then we have proceeded further.
We have declared Soviet Russia
AS our Ally. That was a wise decision.
Furthermore, we promised to render all

to our new

possible struggle against aid the enemy. Ally Why in have her

we so far failed to render assistance of a
substantial kind? The air attacks on the
Western Front have been
have
the

they any event. would presumably If Government magnificent, occurred main- but in

tained that these attacks

that would itself be a
taken for serious place, would
not ground have
We

enough to that he would

that the Government are relying too much
on the flow of munitions from the United

States. If so, it is a grave blunder. I
listened with great interest to the statements of our American friends on this
side. Their optimism does credit to their
intentions and sincerity, but we cannot
expect the industries of the United States
to repair the deficiencies of our own fac-

tories. That is asking from them more
than they are capable of giving. Moreover, should America be embroiled in war

with Japan, it is doubtful whether we

Front, to throw our

can expect to receive a flow of munitions
on the present scale. Therefore, to say
that there is a vast improvement on the

Why has he

gradually bringing the nation to full pro-

wish Minister
to well
criticism. say diversion
know the Prime
create
a substantial
on

the into
Western
strength
attack
and helpthe
to relieve

the Prime has

right Russian hon. Allies, Friend Minister failed? our My

courage, he has the
of the
the such firm conviction ambition, urgent need and the for

an onslaught. He would be the first
man to join issue with the enemy on this

front. Why is he so reluctant? Surely
the
answer is that he has everything but
the means.
It may be urged that we have to conserve our resources because of the possidoes bility of invasion, but the Prime Minister

not rely for final victory on defence

position a year ago, and that we are
duction, is not enough.

It may be that the Government have
a target figure in guns and tanks and in
all forms of munitions, and that the target
figure is being reached every month. That

may be so, although it may sometimes

happen that the target in a particular
category appears to have been reached
when, in fact, for want of spare parts or
for some other cause, they cannot be put
into commission. A tank is not really a
tank until it is fully equipped with guns,

Supply: Committee

HOUSE OF COMMONS

-Production

[Mr. Shinwell.]
electrical equipment and all other acces-

received any consideration. Moreover,

sories, more than a ship becomes a

basic factories paid far to female too low failed those the to

engines any launched but event, has not it

attract labour from other industries. That
is why registration became essential

shipinstalled.
when itInisany
the
is
always possible to reach a target figure

without difficulty if the figure is comparatively low. Everything depends onIf
the target set by the Government.
the Government believe that 1,000 guns
a month-that is merely an illustrationare sufficient, and that figure is reached,
they may feel satisfied, but the number
may be far short of what is actually re-

quired. It may be necessary that the
target figure should be revised and increased.

I should like to refer to a Debate in this
House on 7th August last year. On that

occasion I, with other hon. Members,
made a demand for the complete mobilisation of all our resources for the war effort.

That demand received support in many
quarters and elicited the reply-in August
last, let it be noted-that the Government
had a plan and that it was working to
their complete satisfaction. Subsequent
events seem to indicate that whatever the
plan was it proved inadequate for our purposes, or perhaps the Ministers responsible

for operating the plan never had a real
chance of bringing it to fruition. At any
rate, after all the talk of planning and the
promise of full mobilisation, at the end of
nearly two years of war and fifteen months
of the life of the present Government, we

have failed to achieve anything like the
full use of our resources.

wage workers in

was and

for

our new is

a may earn more

is new
my I

workers hear week, that and in the while basic they factories wage only female 38s.

has led to stress and strain which has
Treasury, who know

caused but not the the fault fault difficulties. of of the right That, hon. believe, Friend,

nothing about such matters, and
apparently never realised that girls earning £3 and sometimes £4 a week in nonessential trades were not disposed to enter
munition factories and, when they were

compelled
to do so, became unwilling
workers.
Moreover, when the managements in
concerns

no in-

was no authority to dis-

private tervene. Minister of There Labour proved had power difficult to the

place them or to take over the factories
apart from the famous declaration by the
Lord Privy Seal, which is now a standing

joke all over the country. On the other
hand, my right hon. Friend the Minister
of Labour was step by step compelled to
use compulsion on the workers without
exercising any compulsion on the employers. That is not only an anomaly but
is an impediment to production. No, Sir,
the blame does not reside in the Minister
of Labour or, for that matter, in any other
Departmental Minister. It is elsewhere
that we must search for it.

Let me give another example. The

Who is to blame for this state of affairs?
In the opening speech of the Debate my

late Minister of Supply, now the President

tribute to the Minister of Aircraft Produc-

one will agree, a man of the highest
integrity. In a statement issued by his

right hon. Friend paid a well-deserved

tion. May I remind the Committee that
barely twelve months ago the Minister of

Labour received the unstinted and
unanimous applause of hon. Members
opposite? Now many of the same people
who applauded him seek to condemn him,

not to blame for the
never had the

but position.
which
he is enabled
He has authority
present
would
have
him to
deal

with the situation. His task has been to
provide the labour, not to organise the
supply whether of munitions. Indeed, it is doubtful
my right hon. Friend was ever

consulted about the location of the new
ordnance factories. They were placed in
remote areas, Housing was apparently
never considered; transport certainly never

of the Board of Trade, is a man with
remarkable business record and, as every-

Department following upon a Debate is
Secret Session he gave a fair exposition
of the work of the Ministry of Supply.
He showed how it was gradually to be
built up by an ordered production plan.
not

a

1343

After produced? nine months, He has what has produced he actually

scheme which commends itself to the War

Cabinet or to the Prime Minister, and
certainly not that vast range of munitions
which everybody had been entitled to expect. All that he has succeeded in producing is Lord Beaverbrook. That is all

that has emerged. Why has Lord
Beaverbrook emerged? Is it because the
position is satisfactory? Is it because the

Supply: Committee

1345

29 JULY

plan has succeeded, that smooth-working

plan of which we heard so much in the
Prime Minister's speech to-day? Is
because the plan has succeeded and we
are now able to build up the tanks and
guns which we require for a great effort?
Or is it because the plan has failed, and
must be done rapidly to make

it

was some-

had return
to bewas there.
up
something
leeway? late It Minister suggested of Supply
where
thatthethe

cause to there nobody the Minister Board else of to Trade go
Surely
the Prime could have

selected somebody from his entourage to
fill that post without arousing additional
comment.

What is Lord Beaverbrook expected to
do at the Ministry of Supply? Apparently

he has reconstructed his Tank Board.
Presumably he has done so because there

and
was with
the was
was something wrong with the old lot,

-Production

1941

hon. Member for Kidderminster (Sir J.
Wardlaw-Milne) that it may not be right
a proposal of this

some
modified
be
but to
introduce
kindproposal
might now,
acceptable. I have no desire
of Supply, Aircraft

tion the Ministries Labour, to Produc- abolish

or but I want these Depart-

ments to work to a common pattern, to
eliminate all competition and to abolish

all overlapping in production. The
Ministry of Supply will never be a successful organisation until there has been a substantial transfer of the functions of other

Departments to that Ministry. There is

undoubtedly too much I

an example.
The
will provide overlapping,
Ministry
and

Supply the of Pro-of
manufacture

of the and as
although duction and of both different Ministry Aircraft
The machines,

certain
the
manufactures some

facture Supply explosives and Admiralty types. shells, both as Ministry well manu-

old if there lot, there something something wrong wrong

somewhere. Immediately Lord Beaverbrook emerges he removes the old gang

and introduces a new lot. Is Lord

guns now in the coastal

shells Ministry ammunition for ex-naval of for Supply guns, while

defences. The Ministry of Aircraft Pro-

duction manufactures bomb

of does the

Beaverbrook expected to act as a bull in

a china shop and to barge around the
place? We have heard stories of his
arging. Is he expected to remain for the
purpose of boosting-up production. When

the booster is finished, is he to retire on
his laurels, or is he to be sent to another
Department to boost things up there, as
the universal booster for the Government?
He still remains a member of the Production Executive. Who is to co-ordinate the
activities of the Production Executive?
Will Lord Beaverbrook allow himself to be
co-ordinated? I wonder whether my right
hon. Friend the Minister of Labour would
care, in a confidential comment across the
Floor of the Committee but so that

can to the an

utterly body frank
hear,
give Committee
everyidea
of what
he

to do on the
he presides with so much dis-

which Beaverbrook Council expects Lord over
tinction.

Mr. Bevin: I can tell you what he will

have to do.

Mr. Shinwell: Already? Such language

to my Beaverbrook?

a to run a munitions

for Minister Lord grandiose I do not ask
department. In that respect I differ from

some of my hon. Friends. I ask for a

Minister in the War Cabinet untrammelled
by departmental considerations, to preside

over the Production Executive and coordinate their activities. I agree with the

1346

the fuses. cases, The
although filling and the Ministry supplies Supply

Ministry of Supply manufactures all small
arms and ammunition. Surely this constitutes a prima facie case for more unified
organisation?

was the of

In the last Debate on production, a

demand factories. I believe made
it for
was
a pooling
very prac-

tical proposal. This served to elicit a

superficial response from the Minister of
Aircraft Production, who regarded it as an
effort to purchase outright the whole of the
engineering industry. It is nothing of the
sort. There are several impediments to
increased production, but one of them is
the fact that several of the managements

-I do not put it higher than that- are

reluctant to release labour and other resources for the use of their competitors;
sometimes they conceal their reserves for

fear of losing them to other firms. The

plain fact is that they are afraid of

diminishing their earning capacity. The
remedy is to pool the firms engaged in
certain fields of productive activity, thus
providing compensation to shareholders
and giving each firm an assurance that
none will gain at the expense of another.
That would remove much of the present
difficulty, but that is not nationalisation,
although I am bound to say that if the
Government find that production is being

1347

Supply: Committee

HOUSE OF COMMONS

[Mr. Shinwell.]

retarded by private firms, the obvious
course is to take them over, at least for

-Production

completely vindicated by events and need
offer noDebate.
apologies for the strictures in the
recent

the duration of the war.

A few words now on the question of
labour supply. I have no doubt that the
Minister of Labour has done all in his
power to increase training, but I doubt
whether the position is yet satisfactory.
Perhaps he will tell us what numbers are
at his disposal. Several weeks ago we
accepted proposals for the concentration

of industry. The main purpose was to

release labour from non-essential indus-

tries for work on munitions. What is
the result? It is reported that we have
secured, or are about to secure, the services of about 115,000 persons. That is

a ridiculously small number. The estimated labour force in non-essential indus-

tries that could be made available is
from 700,000 to 750,000 persons, so that
all we have been able to secure is about

I5 per cent. Again, we run up against
the difficulty that obstacles are placed in
the way by firms who see their livelihood
disappearing and by workers who prefer

to remain in their old trades earning
reasonable wages instead of going on
munitions, where the basic wage for a

man is 63s. and for a woman 38s.
weekly. Not until the principle of com-

are compelled to pay high prices for
port costs, it will be seen that some of

the troubles are of the making of the

Treasury
and not of the Ministry of
Labour.
This is not in reality a production
Debate. We are not called upon to offer
constructive proposals, and I shall tell the
Committee why. Because, as the Prime

Minister observed in the course of his
speech, every proposal that has emerged
in the course of the past year or 18 months

I

critics has been made out. They

themselves. The faults are not always

on one side. But whether in the Govers-

ment, or on the other benches in this
House, our objective is the same, It
to construct out of our vast resources the
arms required to give the death blow to
the menace of Hitlerism. On that issue
there is common agreement, whatever else

may divide us. We have the skill of
our craftsmen, the willingness of million
of our workers of less skill but none the

less useful, our technical ability and
capacity of organisation and, by no means

least, the support of powerful Allies
That, properly used, is a powerful and
formidable combination. Let us make
certain it is effectively organised
harnessed to the national effort.

Members who wish to speak may not be
given an opportunity to do so. My intervention is for two reasons, first, because
happen to be intimately associated with
a number of industrial concerns through

out the country which are engaged in
Government work, and, secondly, be
cause, no less than the Prime Minister
himself, I felt. that the recent Debate 00
supply was calculated to give a wholly
false impression of the magnitude of our
national effort.
In the present Debate, in summing up

was already well known to the Government and had been considered. I do not
want to advance constructive proposals,
only to be told six months hence that the
Government knew all about them before I
had thought of them. If the Government
know everything, there is not much room

are

there is some acid about, let it not

forgotten that Ministers, not excluding the
Prime Minister, have indulged in its use

minutes, as I know that a number of

billets, and have sometimes heavy trans-

for the critics in this House. Indeed,

August we have consistently offered
gestions to the Government in a helpful
and constructive spirit. If, on occasion

Mr. Leslie Boyce (Gloucester): do not
propose to intervene for more than a few

pensation is accepted shall we overcome
this difficulty, and when it is considered
that workers who must leave their homes

wonder if there is much room for Parliament itself. I affirm that the case for the

It is the function of this House to offer

criticism, and I hope they will never
abandon
it. I maintain that since last

his condemnation of the results which
have been achieved by our production
Departments, the hon. Member for Kid
derminister (Sir J. Wardlaw-Milne) said,

in effect, Here we are at the end of
23 months, and we are only hitting Hitler

in the air." Has he never heard of the

work of the Royal Navy? Does he blame
the Ministry of Supply or the industries of
this country for the immense amount of

equipment left behind at Dunkirk,When
or
Norway, Greece, or Crete?

1349

29 JULY

Supply: Committee

have regard to the fact that this country
started its war production effort some five
or six years after Germany, when we have
regard to the enormous change-over that
has had to take place in our factories and

workshops from a peace-time to a war
production, apart altogether from the

hundreds of new plants that have had to
be laid down, I submit to the Committee
the result which has been achieved up to
date, when taken as a whole, has been
truly remarkable.

-Production

1350

Whether we are producing aeroplanes,

tanks, guns or any other form of munitions, we should adopt as a winning
motto: Get your prototype right before
you go into production. This involves,

among other things, having actual

machines built and undergoing a whole

series of trials, the manufacturer receiving, day after day, modifications in
design as the result of those trials, before

he can start production. But production
need not necessarily be held up seriously

But nobody in his senses, least of all
the Prime Minister, pretends that we have
yet had time to reach the maximum effort

of which this nation is capable. There
is ample evidence that most of the shortcomings mentioned in this or the previous
Debate are known to the Government,

and are receiving attention. They are
being brought to the notice of the Govern-

ment by trade associations and industrialists all the time whenever they arise.
I believe the gap between the percentage

of output which the hon. Member for

Kidderminster mentioned and the maximum output of which we are capable, is
closing more quickly than the hon. Member would lead us to believe.
In the recent Debate on production the

hon. Member for North Aberdeen (Mr.
Garro Jones), like other hon. Members,

with the that

was held to

made industry considerable being play up owing fact

numerous alterations in designs. I know
from bitter experience what it is to have
a pile of blue-prints

such alterations
just after whenyou
morning
morning
arecontaining
hoping arriving
to receive
in-

to go ahead with
There
structions
production.
have been times when
some of us
have been extremely irritated by that;
times when, if I had not been a Member
of Parliament, I should perhaps have been

sorely tempted to seek out a Member of
Parliament and elicit his assistance. But
we learned our lesson and modified our
views at the time of the Battle of Britain.
We then realised-some, perhaps for the

first time that if it had not been for the
alterations which had been made in the
designs of the Spitfire and of the Hurricane which gave them superiority in performance, no amount of skill on the part
of the industrialists and workers and of
the pilots could possibly have saved this
country.

1941

on that account, provided that the mo.
ment the machine has reached a certain

standard of performance, the manu-

facturer is allowed to go ahead and produce, say, 50 or 100 of that type. Later
modifications may be conveniently in-

corporated in the next series. In that

way the country will get the best of both

worlds. The R.A.F. and the Army will

get the machines on which to start their
training, and, in due course, when the
real fighting units come off the production

line, they will incorporate all the latest
improvements. Fortunately, at least so
far as my experience goes, the Supply
Departments are acting more and more on

this principle, which I am certain is the
right one.

There are many such practical points
on which I would wish to touch if there
were time, but I have reason to believe
that in most cases the Government are
well aware of them and are giving them
their attention. I would, however, like
to emphasise one very important point,
and that is that if we are to maintain an
even and uninterrupted flow of aeroplanes, tanks, guns and munitions, there
must be continuity of orders so that factories should have sufficient time to retain
or engage the necessary labour, to plan
and programme the production through

their shops, to order and obtain the

materials required so that they can be
put through their machine shops and got
ready as component parts for assembly,
and to enable them to obtain the necessary jigs, tools, templates, etc., so that
the time taken in changing from one production job to another is reduced to the
absolute minimum. In years gone by we
have suffered through orders being held

back and only brought to us at a time
when we had no alternative but to stand

men off. I am glad to say, however,
that in recent times, and particularly during the tenure of the present Government,

1351

Supply: Committee

HOUSE OF COMMONS

Production
1352

[Mr. Boyce.]
things have greatly improved in that re-

and I feel that during the last Debate
the Committee was not altogether treated

spect. I have mentioned the matter
again to-day in order to bring it further
to the attention of the various Departments concerned, so that any delay of
this kind which may still operate to pre-

vent the even flow of production may be
eliminated altogether in the future.
1 am very glad indeed that the Government, and Parliament, as has been shown
by the various speeches made to-day,

realise that whereas overtime is necessary
in the present national emergency, it has

when so many of our liberties have been
surrendered, it is all the more important

that the Executive should value the
critical and informative function which
Parliament is expected to exercise. I can-

not help feeling that my right hon
Friend, had he consulted his Sancho
Panza, his Parliamentary Private Secre-

tary, might have had a conversation
something like this:

been proved to be a physical impossibility to work men for seven days a

How sayest thou so? quoth Doe
Quixote; Dost thoy not hear the horses

week and to maintain increased output.
I know of a number of cases where the
seven-day week has been attempted, and
the output, with the best will in the world,

has actually fallen below that of the
normal week's output.
It has been repeatedly said that more
than 90 per cent. of the managements and
men who are engaged in industry at this
moment are putting their backs into their
jobs in the great drive for victory on the

workshop front. To that view I heartily
subscribe. But I would like also to pay
a very well-deserved tribute to the inimensely valuable contribution being
made to industry by women. It is within
my knowledge that many hundreds of
women, who are temporarily engaged in
industry to-day, and who do not expect
to be continued in industry after the war,
are proving themselves punctual, metho-

dical, industrious and efficient. In a
matter of days, or at most weeks, they
have mastered the most complicated
machines and are working accurately to
the finest limits. In acknowledging, as
we gladly do, the work which our fellow
men are doing at this time, I hope we
shall not be slow to acknowledge our increasing indebtedness to the women for
the part they are playing in the national

neigh, the trumpets sound, and the beat of

drum? I hear nothing else said Sancho
than a great bleating of many sheep

When my right hon. Friend said it would

be open to us to take up the quarrel,
I think he was making a great mistake
As the hon. Member for Seaham (Mr.
Shinwell) said, there is no quarrel here:
we are all on the same line; we want to
get our production up to its very maximum. Again to-day, my hon. Friend the

Member for Kidderminster (Sir J.
Wardlaw-Milne) said that he considered

that our production was below what it
might be. I think every hon. Member
who represents an industrial constituency

must come to that conclusion. Without
going into figures or percentages, there
is no doubt that we could do more, and I
cannot see that it can do us any harm to
let that fact be known in Australia, the
United States, or anywhere else. It must
be admitted that in the United States there
are doubtless certain people and newspapers who are always prepared to take
any damaging statements out of their con

text and use them against us. No Mem
ber of Parliament is unfamiliar with that

type of procedure, but I do not think
much harm is done by it, and I think that
any harm that is done will be much more
than counterbalanced by the guidance and
instruction which the Government will re

effort.
I

Commander Bower (Cleveland)
think the resumption of this Debate today will be proved to be extremely valuable because I cannot help feeling that
my right hon. Friend the Prime Minister
had a wrong impression of the amount of
interest which was being taken in the
question of production, not only in this
House but throughout the country. Parliament, Press and people have been
taking a very lively interest in the matter,

with that regard and courtesy which
deserves. After all, at the present time,

ceive from hon. Members when such
criticisms are made.

I do not want to refer at any length to
deficiencies in our production, but there
is one point I would like to bring to the
attention of my right hon. Friend the Minister of Labour. Owing to the Essential
Work and other Orders, it is true to say
that, broadly speaking, no employer is
master in his own business to-day. That

Supply: Committee

1353

29 JULY

1941

-Production

1354

may or may not be a good thing, and I
do not propose to argue it now; what I

there are many of them, who have said

say is that somebody must be master and
there must be some form of discipline and

friendly way, so long as they find something which should be criticised.

control. After studying matters in my
own constituency, my view is that the

they intend to go on criticising in a
Mr. Lawson (Chester-le-Street): The

measure
has
been in

control of the management has been in a

am many

large and I put quite its place. vitiated, convinced That and that is nothing unhealthy, in

instances that in itself causes a loss of
production.

Committee may remember that when the
Prime Minister made his
the last

effect that Debate statement had caused to the

some disturbance abroad, I interjected
that it had caused some disturbance in

this country. That was not because
one

There is another small point to which
I want to refer. My attention has been

have not

inactive the
question
of
it
was in the country that no really
this of the House, criticism and I expects so, been, criticism as the in

drawn to one or two instances where civil
servants performing extremely useful jobs,

those
to
know
been
in

details
which very they thoroughly, have got to and know in all which the

and working like them, with have them suddenly have got

promoted and removed to another sphere
of action for which they have been much
less suited. I suggest that in such cases,
without depriving the civil servants of the
extra emoluments which arise from their
promotion, they might easily be retained

Committee thought knows, production-but myself because on

adequate answer had been given to the
points raised. I thought that some of the
points would not have been very difficult

to answer. The feeling in the countryand I had seen something of it in the

Press as was illustrated by a conoverheard

the reaction
and the versation which which indicated I accidentally among

people following what was said during

the previous Debate. Part of the con-

in the same jobs where they would

versation, which I heard in a bus, was on

probably be much more useful in the war
effort than they would be in new and un-

these lines: Well, we have pulled our
guts out for the last year; we have done
all we can, and if this is the way they are

accustomed jobs.

going to talk about us, then to Halifax
with the lot of them am sorry to say
the word used was not Halifax. That

Lastly, I wish to refer to the question

of anti-aircraft guns, which the hon.
Member for Seaham touched upon a few
moments ago. I had personal experience
of this. There is no secret in the matter.

was the attitude of the workers.
The hon. Member for Kidderminster
(Sir J. Wardlaw-Milne) drew attention to
the fact that he had been balanced in his

Last autumn the Navy were extremely
short of anti-aircraft guns and I under-

criticism He was. He stated, for

stood that was because they were wanted

instance, that the Government had

for the Army. But a few months later
the Prime Minister stated openly in this

were of anti-

guns, this was after

aircraft
two House
that the
and Army
short
nearly
years
of war.
I think
that
state
of
I

affairs was very regrettable indeed.
only mention it because Crete was a very
great shock to us, particularly when some
of the facts became known and we found
out how very acute the shortage vas in

spite of all the time for preparation. I
cannot
the satisa state
of I

fied believe with that believe Government affairs like are that.

if they are criticised for such
deficiencies and resent this criticism, it is
the duty of Parliament to say they resent
such resentments. There is no hostility
to this Government at all. All Parliament
wants to do is to exercise its proper func-

worked wonders in the last year, and I
am going to show that they have done so,
in spite of some criticisms I have heard.
That fact did not emerge, however. What

did emerge in the Press, and it was not

only hinted at, was the question of
absenteeism, and questions affecting the

workers generally. I am not going to
excuse any worker who does not do his

duty. I am not such a fool as to say

there are not workers who do not do their

duty. I have not been in industry for
the better part of my life without knowing

that. But I say, that the critics of the

tions of guidance. I wish to associate

workers seldom pay any attention to a
considerable section of society which
never does any work at all, which has
sufficient wealth to get as much food as
it likes, which can roll in its motor cars

myself with all those hon. Members, and

to certain places and pay for what it

No. 91

E

1355

Supply:

Committee

HOUSE OF COMMONS

Production
1356

[Mr. Lawson.]
gets, and very often get what is denied
to other people. We do not hear much
about that class. Neither do we hear that
in the past year the mass of the workers

I have said previously in the House tha
I do not think there is sufficient authority
in those who represent the Government

matters of production. I do not think

have, in the main, almost exhausted

Government have been given sufficient
credit for the setting-up of the Production
Executive, the Advisory Committees and

Night after night, week-end after weekend, they go out on night duty, helping

the Regional Committees. That was
wise move. There was more wisdom
behind it than the Committee generally
appreciates. The Advisory Committee

themselves in order to contribute towards
the nation's need. They have done more.

in civil defence, taking part in route
marches, practices and manoeuvres with

the Home Guard. I think we might

has the effect of harnessing the experience

sometimes spend a little time in telling
the world what our workers have done in

that in

the last year, instead of limiting ourselves
to criticism of their activities. One would
have thought from some of the speeches
to-day that the Government had been in

office for the last four or five years, or
at least since the war had broken out.
It looks to me as though some critics
are trying to cover the defects of previous
Governments by casting the sins of those
Governments upon the present Government.

What was the position twelve months
ago? We had lost the bulk of our equipment in France and the Low Countries.
We had a call for old shot guns for the

Home Guard- were we not pleased
when we got a varied assortment of arms
from America? We welcomed that gift as

though it was a veritable factory armaments works in itself. We were grateful
for what we got. We are very grateful
to America for all she has done and for
all that is coming. We appreciate the
magnificent fight that Russia is putting up

now and the benefit that it is giving us.
But we still realise that we have to depend
upon ourselves. If we have improved our

position-and we have, as the Prime

Minister said-we have to remember, too,
that the enemy has improved his position.

He has the whole of Europe at his disposal, and we have not learned much if
we do not know that the enemy is just as
ruthlessly efficient in things economic as he

is in the military and air spheres? Speed
is the keynote of things as far as we are
concerned, and the Government, and particularly the Prime Minister, cannot sufficiently emphasise to the people of this
country that one day that enemy will turn
upon us. He will come back in desperation, and we shall need to be armed much
better than we are at the present time if
that does take place.

of industry generally on the part of em
ployers and workers to the Production
Executive. That was badly needed. The

IRegional
want Committee does the same thing

all parts on the fact that who
there the of is the Minister something House of like Labour unanimity to realise

ever acts as chairman of the Production
Executive must have time to do the work

and authority to act. Both here at the
centre and in the regions I have a sense

of a lack of authority. Statements and
complaints were made in the last two
days Debate, but, as the Prime Minister

showed to-day, some of them were

a little out of date. The right hon
Gentleman has only begun to operate

as chairman of the Production Executive
Some of the troubles and scandals tha
were related in the Committee happened
some time ago. When complaints can be

put to the Advisory Committee by the
employers' side of industry, the committee

get to know what is wrong, and they get
plenty of quick information. They come

up, too, from the workers' side. It is
expected that these meetings, representative of the workers and the employers, will

keep the Production Executive informed
of what is happening in the country. The

right hon. Gentleman the Minister of
Labour has not the time to deal with
these things. It is no good saying there
is a staff to deal with them, because they

are matters which need the personal
attention of the Minister.
Then take the regional position; the
same thing applies there. It was in the
regions that I saw the scheme at work
I have proposed that there should be
somebody in a region directly responsible

and free to act with authority in place

of relying upon a committee. What hap
pens in the region is that an employer

sits in the chair and the difficulties are
talked over. That employer is usually
man who is the executive of a company

29 JULY

Supply: Committee

1357

if not the manager. When he leaves that
meeting he goes back to his own work
and the whole organisation is left in the

hands of civil servants. They may be
or they may be bad, but the fact
there

in in

good remains charge the is region. nobody They with get authority plenty

of circulars. That is the trouble. Instead of someone with authority being
appointed to act, so many circulars are
sent from Department after Department
that if all are to be read there will be no
work done. I do not mind saying that if

I read all the circulars I get on Civil

Defence matters, I should get no work
done, and I may tell those who write
them that I do not read half of them. We
shall only cut down the issue of circulars

by putting in charge someone who is
really responsible.

I do not think the Prime Minister has
heard the last of this question of a Ministry of Production, in spite of the explana-

tion he has given to-day. It is the old
question of the Ministry of Munitions over
again, and I think he will have to answer
the case in a much more effective fashion
than he has done to-day, and also meet
the point that we are now in a situation
where we have not the incentive of private

profit-making on the one hand, or the
wholesale nationalisation of factories on

the other. I think that is a point which
will call for an effective answer before
very long.

I am glad that the right hon. Gentleman the Member for Devonport (Mr.
Hore-Belisha) has come back to the Com-

mittee, because I want to speak frankly
upon another side of the matter which
has not been raised at all to-day. It is
not without significance that for the first

-Production

1941

1358

That statement made in this House has
usually been cheered, but I notice that
very great caution this
ask myself the

spective there I always is of question: afternoon. Irre-

which party? I notice, for
instance, that the last Ministers were
chosen in certain parts of this House, and

all of us had our opinions about them,
but when it came to the meagre-

sure the comI am not quite

The under Deputy-Chairman: which Vote present

ments of the hon. Gentleman come.

was it

Mr. Lawson: I was speaking about
criticism
been the
had Government which and had pointing levelled out that at

generally been side-tracked on to
labour. As a matter of fact, there is a
definite attempt on the part of certain
hon. Members to try, by much pushingoff of criticism, to lay the whole of the
blame upon Labour for the position in
steel production. It is an old party game.
All I can say is that the Prime Minister
showed an understanding 12 months ago
of the stage of development at which this

country had arrived when he asked
Labour, both political and industrial, to
join the Government. It appears to me
that it is not yet quite understood that
Labour is not now in mean street, either
politically or industrially. Something like
a miracle has happened in this country.
In this industrial age there is more combustible material lying about than ever
before in our history, explosive material,
which has destroyed many nations. The
miracle is that this country is more united

now than ever before in its history. If
there is anywhere an impression abroad
that labour can be kicked out and yet kept

for
not
pursue
that,
to
the broke the
Government

hon. Friend

day Minister storm of the of Labour. of formation criticism My of right this upon

in. all I can say is that that is heading

with endisaster. very except great I say do pleasure that want I the have united to watched

the Minister of Labour can answer for

deavour of the people of this country to

himself in any rough-and-tumble, but the

increase output and to strengthen our defensive organisation. That unity and that
temper represent the people of the counI do not believe that any section of

since

understand
that matter day. has
gone I further that
than that something

a Cabinet is in and,

can in the

not without that the

from like Press, what shadow I see, particularly being

who have been are

Ministers tically it all is Labour Ministers. meaning ousted There prac- has

been a kind of straw ballot taken, which
often coincides with what are called the

the Sometimes we

have rumours heard in the Lobby. statement that Ministers

ought to be chosen irrespective of party

will for a moment anyone

who to

try. society tries separate the various tolerate elements

of this Government.

In conclusion, as some of the older
there was a

not before was

Members very here long know, ago, artillery drawn time
mechanised,
when each gun was by

six horses. The Committee will perhaps
excuse me for saying that I was one of

1359

Supply: Committee

HOUSE OF COMMONS

1360

Lawson.

production. The greatest antidote to in
flation takes place, and there is a greater
production for the war effort. Therefore,
it is Government policy.

the unfortunate people who had to ride
the horses. I never made much of a soldier, but I had much tribulation in learning to ride my horses, and I think I was
about as brave about that as were some
of the gentlemen who wore red tabs. One

thing I learnt was that one had to forget
oneself and think of the team; if not, one
was soon in a tangle, there was soon
trouble and maybe disaster. The horses

had to move together. It was a great

I

art to get everything working together.
thought that was a lesson which we had
learnt effectively for the period of the war,

Production

but I am beginning to have my doubts.
At any rate, we did learn then, for our
own sakes, to forget ourselves and remem-

ber the team. The moral of that is obvious, and if nothing else I have said is
remembered, I recommend that to this
House both in this and in future Debates.

The Minister of Labour (Mr. Ernest
Bevin): I do not think there are many
points in to-day's Debate which I am
called upon to answer in detail. There
are, however, one or two points from previous Debates which I should like to deal

with, as the Vote of the Ministry of

Labour was not down on those occasions
and I think it is better that I should clear

them up now. There was a statement
made by the hon. Member for East Fife
(Mr. Henderson Stewart) regarding piece-

work earnings which, if allowed to go

Mr. Henderson Stewart (Fife, East):
cannot recollect that I mentioned anything about piece rates. I did not mean
to refer to piece rates at all. I was talking
about total wages earned, and the point
was trying to make was whether there
was to be any limit to the total wages
earned
in a diminishing consumption
market.
Mr. Bevin: The hon. Member was refer.
ring to the speech I made which dealt with

piece work in the building industry. I
made a speech in Manchester, and the
hon. Member quoted from it. I dealt in
it with the transference of a body of men,

after 100 years, to payment by results.
In the interests of the war effort I have
persuaded them to go over to the system
of payment by result- no mean task, even

for an unskilled labourer. Therefore, I
have said to the men that when the piecerate is fixed in the building trade, I do not
mind how many bricks they lay, or what

they earn; what I want is production
That is Government policy, and to tha
the whole Cabinet adheres.
Mr. Stewart: That was not the report

printed in the Times."

Mr. Austin Hopkinson (Mossley):

unanswered, may cause some uneasiness

there a guaranteed minimum?

among the vast number of people in the
country who are on payments by results.

Sir Joseph Nall (Manchester, Hulme):
I was present at the meeting to which the

Payments by results, if they are to be
successful in their application, must rest
on absolute confidence. There is no other

way in which they can operate. It was
said on that occasion that I had caused
some uneasiness by the statement which I

had made publicly that I did not mind
what was earned on payment by results
so long as it was represented by production. We were asked whether or not that

represented Government policy. My
answer to the hon. Member is " Yes,

emphatically. When a rate is fixed
through the procedure existing in
industry, and the people increase
their output, it is not our concern,
from that point, what they earn. We
assume that the industry will fix the rate

justly if the proper machinery is used.
But the more the people increase their
earnings, the lower they make the costs of

Minister has referred, and I think I am
entitled to say that no one at that meeting
could possibly have misconstrued what be

said. It was perfectly clear to everyone
who listened that he wished that those

who did put their backs into the job
should get the proceeds to which they
were entitled.

Mr. Bevin: There is another point
which was made in the last Debate by my

hon. Friend the Member for Kidderminster (Sir J. Wardlaw-Milne) with
regard to the difficulty of fixing rates.
This is a vexed problem. Anyone who
has had any experience of rate-fixing
knows how difficult it is to forecast exactly

what production will be, but I think that,
if the procedure laid down by the Employers Federations and the trade unions
of the country is followed, and people

Supply: Committee

29

JULY

not go in madcap fashion fixing rates,
and then complaining of other people
afterwards, it will be kept on a fairly good

-Production

1941

1362

announced in the Budget, to create a
situation in which adjustments will not

be necessary I think that is the best

level. It may be that, as a result of the
expedition of workers, the outcome is

policy to follow.

greater production and, again, what looks

should not say on behalf of anybody,
but I cannot yet remember that I am
here, after so many years in another

like abnormal earnings. But I am
always a little puzzled about these

abnormal earnings. I really think it is

time that this class distinction came to an

end. If somebody gets £1,000, £2,000
or £3,000, it is purely a conception, it is
purely a tradition, but if a workman gets
over £5. somebody thinks the world is
coming to an end. For Heaven's sake,
let us get into our minds that the thing
that matters is cost.

May I refer, while on this wages
problem, to the White Paper, and deal

with the point put by the right hon.
Baronet the Member for South-West

a on because
of the danger of inflation? That was
could Bethnal not Green stop (Sir be put P. Harris). wages, He asked,

what was tried in the last war, and it

caused inflation. In 1917 the then
Government decided that they would get

the chairman of the arbitration tribunal
to announce that it was Government
policy that further increases should not be

granted. What happened? My right

hon. Friend the Prime Minister will well
remember, because it nearly ended his
political career. The moment the safety
valve of unfettered arbitration was taken

away, disastrous disputes followed

throughout the country. I beg hon.
Members not to single out one class in the
community and say that for them arbitration should be fettered.
It has been assumed always that
increase follow prices. Actually, wages always wages

prices up and follow prices down.
I make a present of that fact both ways.
When prices go up, wages go up; and

down, in

come down and have

to when follow prices them great difficulty wages

adjustment may result. We discovered
that at the end of the last war. That is
the difficulty. Therefore, on this occa-

sion we have made stabilisation the
fundamental policy. The White Paper
says that if prices remain as they are
now, so-and-so should be taken into

account, but that if prices up,

the door to
you of cannot close jump adjustment right
wages. We hope, by the methods we

have adopted and by the policy which

the Chancellor of the Exchequer

May I say on behalf of perhaps I

place. [Interruption.] I think Transport
another

say on of

like to House is this, however, place. behalf I would

industry. Before I came here there were
many discussions on this problem
believe that both sides in

I

1361

importance of to

avoid seized such of the difficult
are
times industry
as theytrying
experi-

enced from 1918 to 1926. Adjustments
upward may be popular- speak from
sorry experience. Adjustments down-

ward are not an easy matter. We do
not want to create a situation at the end

of this war in which wage policy will
throw out of gear internal production,
the quick revival of our export trades,
coal and everything else. In that sense

we are trying with the help of employers,
of the trades unions, of the Treasury and
everybody else to keep the balance. That
you will avoid inflation altogether is very

doubtful and you must have a strong
machine at the end of this war to control speculation and every factor which
could disturb the quick return to stability

and trade. I think, therefore, that the
right hon. Gentleman the Member for
South-West Bethnal Green will agree that
this matter has been carefully studied in

all its aspects in order that we may be
able to grapple with this problem.
During the last Debate it was said that
I, as Minister of Labour, was unskilled.
I would like to take the opportunity now
of saying that I do not think any greater
honour has ever been done to me than the

making of that remark by the hon. Member for Mossley (Mr. Hopkinson). I am
the proudest man in the country to think
that for nearly 40 years my lite has been
spent with unskilled labourers. After all,
the old navvy is not unskilled. He has
done much for civilisation by the roads
he has cut, by the railways he has laid
and by the great works he has constructed

throughout the British Empire. It has
been a pleasure to serve him and to be

one of his kind, and I do not want to

be anything else. It was a great honour
the hon. Member did me, and one which
I appreciate, more especially when I think

1363

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HOUSE OF COMMONS

-Production
1364

[Mr. Bevin.]
of the dockers of to-day. A few decades
ago they were among the outcasts and
the rejected, but to-day they are in the
forefront of the organised artisans of the

third is to bring within the orbit of the
main manufacturer every possible manu.
facturing unit in the vicinity. That is the

guiding line. When contracts are running and things are proceeding in the way

world. Therefore, I want to thank the

in which they have to do, it is not easy
to make a break. You cannot afford to

hon. Member for Mossley most sincerely
for calling public attention to the fact that

I am an unskilled labourer. But it is

a little hard when a man tries to be a
cynic and only reveals that he is a cad.

fundamental things that we did in relation

to production was this. After Dunkirk,
we found ourselves in a very

I would like to deal now with the ques-

tion of the Ministry of Production.
cannot, of course, add anything to the
statement of policy outlined by my right
hon. Friend the Prime Minister to-day,

I

but I should like to make a few observations from my own personal experiences.
I doubt very much-and I will place it no

higher than that-whether there is any
half-way house between the present form
of organisation and a complete Ministry
of Munitions. It is no use constantly trying to find a compromise. The task always

and I say it as coming new to Government, although, I hope, unbiased-to
keep responsibility down. I have done a
little organisation in my time, and I would
utter this word of warning. It is so easy

to pass the responsibility up. If you
create organism upon organism, there is
a tendency for the responsibility to be
passed upwards into a bottleneck instead
of being held down to the circumference.
We have been working with the Regional
Boards, and we have been trying to carry
out principles of devolution, I admit not
with complete success. There are many
industrialists in the Committee who have
carried through great mergers, and I suggest that there is not one of them who,
in his experience of mergers, has been able
to level out everything in less than four or

five years. Whenever I took a society
into my large union, I always allowed
three or four years before I could get the
whole thing smoothed out and working
properly. When you get to government,
and it is a question of creating a complete
organism, merging and reshaping so many

things, it is not easy to keep the sense of
responsibility down to the circumference.
I urge that the matter be considered in
that light.
As I have said, we have been carrying
out devolution, which is bound up with
three things. The first is the right distribution of materials, the second is the
full use of industrial capacity, and the

make a break, and you have to change

the changing orders go on. One of the

tion certainnot it

essential of short materials. supplies I of do grave vital think posi- and

is any good crying about the past or
blaming anybody. For instance, if any.

body asks me who was responsible for the

British policy leading up to the war, I
will, as a Labour man myself, make

confession and say, All of us. We

refused absolutely to face the facts. When
the issue came of arming or rearming mil-

lions of people in this country, people
who have an inherent love for peace, we
refused to face the real issue at a critical
moment. But what is the good of blam-

ing anybody? We cannot make our
action retrospective whatever we do. We
have to start from now and try to do the
best we can. We found ourselves, then,
in the terrible position of being short of
supplies of alloy steel- the key, the linchpin. We found ourselves in a position in
which priorities were not working back

to the other side, to the point of shipment. Orders and priorities abroad were
not quite working together.

Why was that? I do not blame
anybody. There were so many fields of
supply open to us until Norway went and,

suddenly, France went. When the Continent and the near points of supply were
closed to us, we found ourselves suddenly
up against a position which nobody had

anticipated or even provided for in the
strategy of war. I am putting the thing
quite frankly. That was the problem.
We had before us the whole list of supplies. We curbed in one direction where
we could manage for so many weeks, we

built up in another direction. I cannot
give figures to the Committee, but there is

not a manufacturer or a member of a
Regional Board who will deny that the
problem of raw materials, and the free

flow of materials, even with the Battle of
the Atlantic going on, has been largely

solved. I do not believe that a single
works in this country is held up, unless

is
ofBattle
we

29 JULY

Supply: Committee

1365

there is a hitch in transport. I think that

have had to contend over the last
a the great Atlantic accomplishment, and everything with with the else

194%

-Production

1366

ing back in any effort it could make.
think that that is a mistake. It does not I
matter what you say to us here, because

we know each other. If may say so,

few months.

with all kindness, we know what value to

cing
a very
thing to do. was an

line will to that which
that taking
Myin
different
I took
LabourFriend
con-

There was then the question of balanmaterials It and food, not easy decision critical

to
raw
and build

East,

balance up supplies materials in the in Middle the country,

and choose between IS. 4d. or IS. worth
of meat for the people of this country. I
have been frank with the workers in the
country, and I have told them why their

ration has gone down. When they find

the Cabinet took the decision to supply the
troops in the Middle East with equipment
at the expense of their rations, they cheer

and say we have done the right thing.
There is no reason why they should not be

told. This balancing was going on every
day and every week, first on the labour
side and then on the production sidecould we run this, or could we run that,
and so on. The Prime Minister said dark
as the cloud has been, difficult as is the
issue we have yet to face, yet with these
resources, with the resourcefulness of our
Forces and the contributions made to us in
many ways we can see a little of the silver

lining. At any rate our people will be
better off this winter than they were last
winter. I have had very great difficulty
in handling the mines problem for this
very reason. There is no use in disguising
the fact. As was so well put this morning
at another meeting, it would probably be
better if the men could have 2s. 6d. worth
of meat to conserve their energy than take
another 10,000 men back into the mines.
We were conscious of what had to be faced
in dealing with the problem.

ing to

It has been asked, why are we not help-

hon.

Russia Friend more? the Member I would for Seaham say (Mr my

Shinwell) that it is very clever to say that
my right hon. Friend's speech was dialecti-

cal, but I doubt the wisdom of such a

place upon what is said. hon.

agree I am not a

ferences for years. I used to say, Do

not carry silly resolutions, because either
will bank their

or may result in

them, other people they unnecessarily policy upon

destroying confidence."

country never the

same upon what

person interpretation in another Remember places a

you say an

wrong
and entirely that what impression. may After convey you long say,

experience of international work. and I
have tried to do my best in the international sphere-I say that there is one
language of consumption abroad and

another for consumption at home, and we
should use language sparingly, when it is
to be consumed abroad, because of the
difficulties which may arise.

I should like to take this opportunity

to review briefly the kind of steps
one has had to take in dealing with the

was
of ofMinister
this
problems of my Department. First, I

That into three parts.
mobilising given task the divided the task labour itself by the Prime country.

First there were the Services. The
Cabinet and the Defence Committee laid
down in their wisdom how many men and

women had to be found for the three

Services We have a population of

44,000,000. You have to delete your

working population out of that, strained
to its utmost limit, of about 17,000,000,
and out of your 17,000,000 you must
allow, over a certain period, for a certain
number of people of certain ages, and
they must be of a certain physical standard. So you have to estimate health
standards, the rejects and the rest of it,
before you can get down at all to your
working population.

statement as he made. Surely it is known

But there is another difficulty to over-

what problems are facing the Army in
thatquestion
it is because
regard tive? to To the imply
taking

come in connection with the Services. The
number of Service tradesmen who have to
be provided is about 10 times as great as

the initiative on the Continent of Europe
at this moment-and that is the inference
a little unfair to the productive side.
It is also unwise, when Russia is fighting

in any previous war. There has been a
good deal of criticism about the number
of skilled men who have gone into the
Services. I invite any industrialist to go
through the servicing depots of the Air

of the initia-

we have
failed in production that we are not taking

for her very life, to let her think for a
moment that the British Cabinet is hold-

Force establishments and tell me whether

they have ever found it possible to run

1367

Supply: Committee

HOUSE OF COMMONS

[Mr. Bevin.]

industry on as low a percentage of
journeymen as that with which the Air

Force has managed to build up that great
organisation since the war broke out. It

is an amazing achievement. The overwhelming proportion of the people repair-

ing our aircraft are semi-skilled and
trained since the war broke out in terms
of months, and, not only that, but they
are being continuously transferred to the
seats of war, with new men coming along
for training. I take my hat off to the Air

Force. They have done an amazing
work. I have no doubt that, as the
mechanical expansion of the Army takes
place, we shall find, when the Committee
has inquired into it, a very similar result.

When I am asked, Why are you letting
these people in? two things have to be

done with this labour force. You not
only have to have the men to fight, but
you have to have the men to keep them
on the road and keep them intact, which
means so much when the fighting takes
place. Then there are the women on these

vital Services. I cannot give the figures,

but it runs into thousands. They also

have to come out of the reserves of

women-power for industry.
If there is one thing that this nation has
had a tremendous dividend upon, which

has revealed itself in the training for industry and the training that has taken
place in the Services, it is the great educa-

tional system of the country for the last
30 or 40 years. Although far too many of
these people, far more than ever ought to
be allowed again, passed into non-productive occupation, and have had to be
taken back out of non-productive occupation into this productive effort, the ability,

the agility and the marvellous way in

-Production
1368

irritation and difficulty that had to
overcome in the short-term policy. During
the time that that was proceeding we were

working out a long-term policy.

One of the tremendous difficulties that
was
us was

was I

From parts in the

to meet be
Debates facing all there of the criticism the House labour that turnover. earlier

men from one

stopping another. To from moving that there had was to place not

some sort of Order, and I produced for
the Cabinet the Essential Work Order, I
think I can claim that no one has found
an alternative to it, although I have tried
in discussions with industry to see whether
anything else could be devised. Its main
purpose was to tie people to their jobs and
put transfer on an orderly basis. Another
object of it was to say to the citizen, You
are not tied, as it were, to another citizen;

you are tied to a responsibility to the
State." The Committee must make up its

mind on it. The criticism of this Order

has largely been on the ground that I have
not restored the system of the old leaving

certificate in the hands of the employer.

I have had to have regard to the last
war. After all, I went through all the
disputes at that time. The right hon.
Member for Carnarvon Boroughs (Mr.
Lloyd George) and the hon. Member for
Dumbarton Burghs (Mr. Kirkwood) will
remember that the leaving certificate produced the most bitter trouble on the Clyde
and the right hon. Gentleman had to go
down and address the men and virtually

make it inoperative. It is no good

good
a to
and to man

making orders we cannot enforce.

With that experience, I tried, in the

course, old British say, way, If to I tie ride the middle

the job, I give him security, but, on the

which they have adapted themselves in

other hand, I expect him to observe cer-

basic educational value of the teaching
that they have received in our elementary
and secondary schools. Without it, this
great labour force could never have been
built up. The second thing one had to do
was to look at the immediate short-term
policy, which was to transfer people from
place to place as speedily as one could.
That led to a great deal of improvisation,
and I have no doubt it was the basis of
a good deal of the criticism. We could

that is an unreasonable position. I want
to assure the Committee that the Order
is working extremely well. Applications
are coming forward from industry after
industry to be brought under the Order
so that they can get stability. It has not

learning their work is a tribute to the tain obligations. I do not think that

not stop to put a long-term policy into
operation while we had the Dunkirk posi-

tion and the Battle of Britain facing us.

Therefore, there was a good deal of

secured the retention in

it has the of

merely industries but given of Ministry people

Labour and the Production Executive a
chance to know how many people are re-

tained, and it makes the discovery of
superfluity of labour much easier. It is
said that the Order takes away discipline.
The best industries in this country do not
rely upon sacking to impose discipline.

X

1369

Supply: Committee

29 JULY 1941

not often sack politicians to get
Possibly I
discipline. We do shall in know time it dis-

reason, but I do not at

have appeal

Highly

the cover moment. the developed introduced industries

and the like. I

into London transport the
in system boards this country introduced before the

in the days passenger
was

last was war, always right-although when the it it dis-

covered he was often wrong-and has
worked admirably. We reduced dis-

missals in the transport industry to below
2 per cent.

All that is needed is that industry shall
work the system. Trade unionists should
not confine themselves to making critical

at their many of

have tested and be

For cried,

which speeches well-founded I conferences, years they found have not to

Give us more power of control, give us

more power and responsibility. I would

reply, Do not shy at it now that it is
in

your hands. But the exercise of

power and responsibility means taking

as as

If are power

and responsibility

ones. unpleasant you decisions for going discipline well to share in pleasant indus-

try, it means not only telling a fellow that
he is a good chap; sometimes it means

sacking him. That both sides should
shy-off working this Order shows a little
touch of the inferiority complex, and I

would beg both the unions and the

employers to face up to the position. Here

is a foundation on which to work, even
though it has been introduced as an Order

in war-time. I wish I had had the advantage of it at the end of the last war

to assist in securing stability instead of the

chaos which existed when peace came

about. I seriously urge that this Order
should not be treated as though it were
something of no value. I believe that it
is of great industrial value and can be a
complement to the new developments in
industrial relationships which have come
into being in the last few years.

May I now say a word at the risk of

being told that sometimes I lecture
employers? They lectured me for years,

lectured me so often what
were to before I asked for

But, I want

the they increase. going say joking that apart, I knew

more attention paid to management up
to works management level, or we shall
fall behind. We have had criticism about

handling this sudden development of
Governmental activity. the hon. Member
for Kidderminster was quite right-there

-Production

1370

is a great difficulty in building up supervision, getting managers, foremen, costings clerks and so on. In that respect the
handicap has been terrific. Such people
cannot be created in a moment. Opportunities have been provided at the tech-

nical schools, and I ask employers to
release their men to take advantage of
these new opportunities. To do so will
pay them a thousandfold. I should like
to see management become a profession.
I would like to see the old barriers broken
down, so that when a good trade unionist

who has the confidence of his fellows in
industry is to be promoted, he will not
be told that he has to leave his society
That places men in a terrible difficulty.
I would make a suggestion which would

help us for the rest of the war. I would
ask employers not to raise a barrier. Tell
such a man, if you like, that he must not
take part in his trade union activities, but
do not place him in the position of choosing whether he will be disloyal to his pals

or render service to you. Remember
that the man who has come upwards from
being a shop steward to taking responsibility has an urge within him for a place

in the sun and for taking responsibility

in industry. If industry is wise, it will
exploit that urge and develop it, and so
break down the barriers between the
management and the operative side in
this country. Indeed, if that is done, a
victory will have been won not only for
the war period, but for the rehabilitation
of industry after the war and for avoiding
many of the troubles that we might other-

wise have to face. I urge that there
should be a new and enlightened
approach to these problems of management in order to make an effective contribution to our effort at this moment.
I have been asked about the concen-

tration of industry. I will send my hon.

which he is

Friend which will correct the im-

too late to any

pression figures to-night has quote obtained, of but them. it

I will try to show what has been done in

that respect. There again, a new spirit
is coming. I will cite an example of one
great firm from which about 2,000 young
women can be released. Discussion took
place between the firm and my divisional
controller, and the firm is going to carry
on until I am ready to take those young

women one by one, two by two or by
dozens, and transfer them in an orderly
way. That is a great, patriotic and wise

Supply: Committee

HOUSE OF COMMONS

[Mr. Bevin.]

thing to do. The employer in that great
establishment says, For the rest of the

war I will retain every woman who is

not of the correct physical standard for
your factories, and I will take everyone
who falls ill and finds that she cannot
carry through. I will carry on the best

I can, and I will give you the best of
my staff for your great factories. Let
that spirit and example imbue others

throughout the country. In another
case, a firm saw the men, who were needed

to return to the mines, gave them a
gratuity and wished them well. It told

them that if they were not wanted, they
could come back again. It is not only
the Ministry of Labour that can do this
transferring. I want to get a co-operative will between employers and everybody in the country, to facilitate the work
of the officials of my Ministry, of whom
the State has a right to be proud. The
officials of the Ministry of Labour have
made no mean contribution to the war
effort and to the handling of the tremendous task which the Government impose

upon us.

If I might summarise, I would put the

matter a
it

my duty in few to simple keep the words. following I conceived objec-

tives in mind: the complete organisation

of labour for the service of the State:
transference of labour on a short-term

policy to meet immediate needs; buildingup of reserves by registration and otherwise for a long-term policy. I would say

to the hon. Member for Kidderminster
that I want to have more than a 25 per
cent. capacity in the kitty all the time,
so that when the last emergencies have to
be met, there is a last reserve of produc-

tion to carry them through. Therefore, I
want to keep that registration in reserve,
in advance of the defence and productive
plans, so as to avoid waiting for supplies.
I want to establish such conditions of employment as will give a sense of justice,
remove grievances and prevent disputes,

I want to prevent labour turnover, and
to provide the most effective methods of
transfer, to establish arbitration for the
settlement of differences, and to devise
such conditions as will preserve the morale

of our people and see this conflict
through.

All that is based on the conception that
this war is a people's war. I believe, and
I know from the information that comes

-Production
1372

to me, that the policy that has
in this

this applied to with labour country during been

war, great care and design,

produced
general
satisfaction
people of
Britain.
It has among

response and

amazing fidence from the in feeling brought COD. an

working
masses of the
has

mean to

United opinion contribution States, there, which and shaping represented public no

is reflected in their

attitude towards this country. It has
meant a great deal to the Russian masses,
and has countered the belief in their minds

that this was an Imperialist war. It has
in

we have
this last

industrial seeing brought the hope problems approach to millions during Europe, made year, who, to

see that we are not merely fighting to
overthrow Hitler, but that Britain is going
to take her place again in the vanguard
of social and economic progress; that we

are striving not merely to preserve

liberty, but to utilise all that it means to
lay the foundation of a more just age in
the upward progress of civilisation. That

is the great thing which has emerged from
this struggle and which has inspired our
inner workings. We declare that we will
carry on to the bitter end to remove the
Nazi regime and its spirit of aggression
and domination; we will weave into the
fabric of society the spirit of freedom and
equality for all. Where we have to give,
we will give generously; where we have to

win, we will win and make our victory
secure for future generations to enjoy.

Mr. Austin Hopkinson (Mossley):
think it is rather unfortunate that when

I

1371

this Debate was originated a fortnight ago,

it was held to be out of order to discuss
any questions of labour in connection with
production. However, that embargo has
now been removed, and I should like the
Committee to bear in mind that we in Parliament are not concerned with the faults
or follies of individual firms or of indivi-

dual workmen. I think, if I may say so,
that far too much attention has been paid

during this Debate to that side of the
question, which does not really concern
Parliament. What concerns Parliament
are Ministers' faults, and those troubles in
industry and failures of production which

have been due in to mistakes on

the of the Ministers In

the Debate I to
part previous any way endeavoured concerned.

point out that the last Minister of Aircraft
Production had made certain very grave

Supply: Committee

1373

29 JULY 1941

1374

Mr. Hopkinson: I have no wish to con-

mistakes, mistakes in many cases inherited

tinue this topic. There were various

from his predecessors, and by giving an

of one omission on their part, I

to get a new

the a corps
in to control the
that it should
Minister was example able promise be made from good. the

I

refer order to setting-up of design technical of aircraft. of

When we came to the question
labour, which, admittedly-becar it is
shutting our eyes to the fact-i

most unsatisfactory coun-

at the time, was out

try in no a use present state it forward in this ruled view
of
order. I began to put a

which it was impossible to enlarge upon
to that Ruling of the Chair. What

the was my
to

quoting upset owing something Minister which of of the Labour had A.E.U., been said who
me
by an official
remarked that there was a certain feeling
I

against unskilled labourers. That

described as snobbery, for snobbery it is,
although I justified it to some extent as
being based on pride in craftsmanship.

There was a great cry from above the

Gangway-

Mr. A. Bevan (Ebbw Vale): The hon.
Member did not call it snobbishness then.

Mr. Hopkinson: I did, and if the Com-

mittee insist upon it, I will quote my

actual words. I said:
It was unwise to put in charge of the

whole labour force of this country a man who.

the craftsmen say, is only an unskilled

labourer after all. Members may think that
the craftsman is a snob. So he is, but there
is something more than snobbery in his resentment at being dominated by the unskilled

labourer. Pride in craftsmanship may be

allied to snobbery, but it is one of the most
valuable things we have got in this country.
-[OFFICIAL REPORT, 9th July, 1941; col. 241.

Vol. 373.]

Mr. Bevan: You did not yourself des-

cribe it as snobbishness

Mr. Hopkinson: I said that the man
was a snob. What more the hon. Member wants than that, I do not know.

Mr. Bevan: You did not say that.
Mr. Hopkinson: When hon. Members
state what is not quite correct, and will
not be convinced when they get the actual

quotation, I cannot do more. I said-

Members may think that the craftsman
is snob."

I added So he is.'

Mr. Bevan: You did not say that

before.

-Production

other points of the labour situation which
I wish to bring to the notice of the Com-

mittee with a view to getting them put

right. From the very start the A.E.U.
has been mishandled by successive
Governments. To go right back to the
summer of 1938, when times were becoming critical, it will be remembered
that the then Prime Minister sent for the

heads of the T.U.C., and told them
candidly the state of affairs and asked for

their assistance. But the heads of the
A.E.U. were told to see the Minister for
the Co-ordination of Defence. Everyone
who understands the A.E.U. knows that
the A.E.U. and the T.U.C. have been at
loggerheads from time immemorial Taking the T.U.C. to the Prime Minister and
the A.E.U. to the Minister for the Co.
ordination of Defence, started the whole
thing wrong. That is the sort of thing
we are entitled to criticise the Govern-

ment for doing. In the case of the
Minister of Labour himself-and I am

sorry to see he is not here-members of

the A.E.U. criticise him personally

and his actions in the past,
particularly his actions in respect of the
A.E.U. The A.E.U. know that the right
hon. Gentleman has been a notorious
poacher, and, therefore, he is not persona

grata with the A.E.U. The opinion of

the A.E.U. ought to be regarded in these

days, for they are the key to the whole
situation. I hope I have made it clear
that what I wanted to put forward to the
Committee, and what I now put forward,
is simply what a certain number of per-

fectly faithful and experienced trade

unionists are saying. I do not presume
to say whether they are right or not; but,
as a matter of practical politics, it is desirable that the views of a very important
class in the country should be put before
the Committee and before the Government.

To refer to the speech of the right hon.

Gentleman, there was one passage on
which I think I can correct him from experience. That was where he said that
the discipline of sacking was unneces-

in There, course,

nonsense.
sary was just industry. talking of The Commit- the he

tee knows that for the last 15 years
whole of the profits of my firm have gone
to the men I employ. But if the discipline
that can be imposed by sacking could not

1375

Supply: Committee

HOUSE OF COMMONS

[Mr. Hopkinson.]
have been used in normal circumstances,
there would never have been any profits

for the men to take. That sort of talk
does immense harm. The Essential Work
Order, as other Members have said, is

wrecking the discipline of industry.

-Production
1376

Hitler uses propaganda as a very powerful
weapon,
we must a
are to stronger
weapon than and hiswe
if forge

his vision propaganda. and Our propaganda overcome lacks

imagination. This is

war; a war between
Cross

and ordinary evil, between it is the and good the no

Everyone knows that, in the engineering

Swastika. The occupied countries of

men are trustworthy. But, of course, as

Europe were not beaten so much on the

trade particularly, the majority of the
in every other section, not even excepting

the War Cabinet itself, there are people
whom you cannot trust, and without dis-

cipline you get nothing out of them.

What is so futile in these Debates is for
hon. Members above the gangway to get
up and talk as if there were nobody on
an income of less than £10,000 a year
who was deficient in industry or in patriotism. There are just as many loafers in
the lower ranks of industry as at the very
top-and I cannot say worse than that.

I shall go on as I am doing if, after
mature consideration, I come to the con-

clusion that there are Ministers of the
Crown who are really a danger to the
country in its present position. In that
case, I shall never scruple to get up here,

no matter what sort of row is kicked up
above the Gangway, and endeavour to get

those Ministers replaced by people who
will not wreck industry, as the Minister
of Labour is doing to-day.

Sir Waldron Smithers (Chislehurst): I
know it is unpopular to speak at this late
hour, but I have been here all day, and
there is one point I wish to make. It is
a point which has hardly been mentioned

all through the Debate, but I was de-

lighted to hear the Minister, in that fine
peroration, talking about assisting the
morale of the people. The hon. Member
for Chester-le-Street (Mr. Lawson) gave

field of battle or in the field of produc-

reason
so
nowarenot

tion; they were defeated morally, and the
valiantly why the is Russians because Hitler doing has

been able to break their morale.

The Chairman: That does not arise out
of the Vote before the Committee to-day.

Sir W. Smithers: We must do all we
can to mtaintain the morale of our people
and so get maximum production. To put

it at the lowest, do the people of this
country realise that if we lose this war

there will be no wages and no trade unions

and that we shall all be slaves?

Mr. Maxton (Glasgow, Bridgeton): And
no Stock Exchange.
Sir W. Smithers: Think of the effect 00
morale of the "V" campaign, which has
been electrical in its

The Chairman: I am sorry, but I must
remind the hon. Member that that is outside to-day's Vote.

Sir W. Smithers: Then I will say no
more, except that I am sorry it is not
recognised that the maintenance of the
morale of our people has the biggest effect

on the production of armaments.

team. Unless we mobilise and unite

Motion made, and Question, "That the
Chairman do report Progress, and ask
leave to sit again,' put, and agreed to.[Mr. Grimston.]

spiritual and moral forces with the same
faith and vision as we are mobilising the

upon the next Sitting Day

a remarkable example of team spirit when
he described how he once rode in a gun

Navy, the Air Force, the Army and in-

Committee report Progress; to sit again

dustry, we shall be fighting with one hand
tied behind our back. Did hon. Members

on de-

hear Mr. Harry Hopkins in

broadcast Sunday night? his After brilliant

The remaining Orders were read, and
postponed.

scribing all the material articles sent to

this country, he added a remarkable

sentence. He said:

The biggest job the President has done
has been to alter the industrial state of mind.
It isare.
the mind we have that makes the people
we

It being after the hour appointed for the
Adjournment of the House, Mr. DEPUTYSPEAKER adjourned the House, without

Question put, pursuant to the Standing
Order.