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251 Personal Attention Internal Revenue Agent in Charge It is essential that we be furnished immediately with certain information concerning the corporations listed below for the years 1939, 1940, 1941. 1. The amount of profit reported (not as determined by you unless the audit has been completed and the case closed by ageement) before and after computation of Federal taxes. 2. The excess profits tax credit used by the taxpayer as well as the average base period net income or invested capital for each year depending upon the method used in arriving at the excess profits tax credit claimed. 3. The names and amounts paid to corporate executives for each of the several years who received compensation of $10,000 or more in any one or more years. 4. If available (a) the net profit derived from Government contracts reflected in the total net profit reported, (b) the gross Government contract price, and (c) cost of performing the contract. 5. If profits are reflected on basis of partial completion, the percentage of the contract price reflected in gross income and the percentage of contract completion. It is essential that this information be procured and forwarded to this office to be available not later than Friday, April 17, 1942. To the extent that the data herein required may not be obtained from returns or copies of your reports, which will be particularly true with respect to the year 1941, you will solicit the cooperation of the principal corporate officers in supplying same. It is not anticipated that there will be difficulty in obtaining the information requested from the corporations. Should there be, this office should be notified immediately. -2- 252 COMPANIES HAVING GOVERNMENT BUSINESS PRIMARILY WAR DEPARTMENT COMPANIES General Motors Corporation Curtiss-Wright Corporation Douglas Aircraft Corporation Consolidated Aircraft Corporation Glen L. Martin Aircraft Company LOCATION OF AGENT IN CHARGE Detroit Upper New York Los Angeles Los Angeles These firms had over $500,000,000-each in Government contracts outstanding on Baltimore Seattle December 31, 1941. General Electric Company Sperry Corporation Los Angeles Baltimore Los Angeles Upper New York Brooklyn This group had from $100,000,000 to $500,000,000 each in Government contracts outstanding on Bendix Aviation Corporation Republic Aircraft Company Indianapolis December 31, 1941. Brooklyn Boeing Aircraft Company Ford Motor Company Lockheed Aircraft Corporation E. I. Dupont de Nemours Corporation North American Aviation Corporation (Totor Corporation Cartridge Company The Aviation Corporation (Vultee) American Woolen Company American Car and Foundry Company Bell Aircraft Corporation Baldwin Locomotive Company Detroit Detroit Springfield,I11. Upper New York Second New York Second New York Buffalo Philadelphia Standard 011 Co. of New Jersey Continental Motors Corporation Second New York Beech Aircraft Company Studebaker Motor Car Company American Locomotive Company Packard Motor Car Company Savage Arms Corporation Diamond T. Motor Car Company Wichita Detroit Indianapolis Second New York Detroit Buffalo Chicago This group had less than $100,000,000 but more than $67,000,000 each in Government contracts outstanding on December 31, 1941. -3- 253 COMPANIES HAVING GOVERNMENT BUSINESS, PRIMARILY WITH NAVY AND MARITIME COMMISSION Corporation Location of Agent Bethlehem Steel Corporation Philadelphia New York Shipbuilding Co. Newark Newport News Shipbuilding Co. Seattle Tacoma Shipbuilding Richmond United Aircraft Corporation United States Steel Corpn. Company Sun Oil Company Bath Iron Works Gruman Aircraft Company Electric Boat Company Cramp Shipbuilding Co. Consolidated Steel Corpn. in Charge New Haven Brooklyn Second New York This group had from $100,000,000 to $500,000,000 each in Government contracts outstanding on Dec. Philadelphia 31, 1941. Philadelphia Boston Detroit Alabama Dry Dock and Ship Co. Westinghouse Electric and Manufacturing Co. Pittsburgh San Francisco St. Paul Los Angeles Shipbuilding Los Angeles Gulf Shipbuilding Co. Nashville Western Pipe and Steel Company Government contracts outstanding on Dec. 31, 1941. Seattle Nashville and Dry Dock Co. $500,000 each in Second New York Ingallis Shipbuilding Co. Moore Dry Dock Company Northern Pump Company These firms had over San Francisco This group had less than $100,000,000 but more than $67,000,000 each in Government contracts outstanding on Dec. 31, 1941. 254 -4- ADDITIONAL COMPANIES SUGGESTED TO DONALD NELSON APRIL 14th BY MARITIME COMMISSION AND SUBMITTED TO TREASURY BY MR. NELSON - Corporation Location of Agent in Charge Houston Shipbuilding Corpn. Houston, Texas Oregon Shipbuilding Corpn. Portland, Oregon Robbins Dry Dock and Repair Company Brooklyn, New York General Machinery Corpn. Hamilton, Ohio American Engineering Company Philadelphia, Penna. 255 (20 GC:L&R:JMcK A-368468 APR 15 1942 My dear Mr. President: I am submitting herewith for your consideration, with the recommendation that it be approved by you, a proposed Treasury decision authorizing and providing rules and regulations for the inspection of certain excise tax returns filed with respect to excise taxes imposed by the Internal Revenue Code, or imposed by the Revenue Acts of 1932 and 1934. This is to provide a general authorization for such inspection in the same manner and to the same extent as provided for the inspection of income tax returns in the general Treasury Decision 4929, approved by you on August 28, 1939. The inspection of these returns may be made to 256 -2such extent as you may authorize in rules and regulations promulgated by you. Faithfully yours, (Signad) B. Secretary of the Treasury. The President, The White House. 4:55 4/17/42 n. m.c. . LET 257 (T. D. ) TITLE 26 - INTERNAL REVENUE CHAPTER I SUBCHAPTER E, PART 458, SUBPART I INSPECTION OF EXCISE TAX RETURNS Regulations governing the inspection of exaise tax returns. TREASURY DEPARTMENT, Washington, D. C. APR 15 1942 TO COLLECTORS OF INTERNAL REVENUE AND OTHERS CONCERNED: Section 458.610 Introductory. (a) Section 55 (a) (2) of the Internal Revenue Code, as amended, provides: "And all returns made under this chapter, Subchapters A, 3, D, and E of Chapter 2, subchapter B of chapter 3, chapters 4, 7, 12, and 21, subchapter A of chapter 29, and chapter 30, shall constitute public records and shall be open to public examination and inspection to such extent as shall be authorized in rules and regulations promulgated by the President." (b) Section 55 (Title I) of the Revenue Act of 1932, as amended by section 218 (h), Title II, of the National Industrial Recovery Act, approved June 16, 1933 (48 Stat. 195, 209), provides: "Returns made under this title shall be open to inspection in the same manner, to the 258 -2same extent, and subject to the same provi- sions of law, including penalties, as returns made under Title II of the Revenue Act of 1926; and all returns made under this Act after the date of enactment of the National Industrial Recovery Act shall constitute public records and shall be open to public examination and inspection to such extent as shall be authorized in rules and regulations promulgated by the President." (c) Section 55 (a) (Title I) of the Revenue Act of 1934, provides: "Returns made under this title shall be open to inspection in the same manner, to the same extent, and subject to the same provisions of law, including penalties, as returns made under Title II of the Revenue Act of 1926; and all returns made under this Act shall constitute public records and shall be open to public examination and inspection to such extent as shall be authorized in rules and regulations promulgated by the President." Sec. 458.611 Inspection of excise tax returns. Pursuant to the above-mentioned provisions of law excise tax returns filed with respect to any tax imposed by chapter 7 or 12 or 21, or subchapter A of chapter 29, or chapter 30, of the Internal Revenue Code, or filed after June 16, 1933, with respect to any tax imposed by Title IV, V, or VII of the Revenue Act of 1932, or filed with respect to the tax imposed by Title IV of the Revenue Act 259 -3of 1934, or by any of the above-mentioned provisions as amended, shall be open to inspection to the same extent as provided with respect to income tax returns in subpart B of sections 4630.31, 463C.32, 4630.33(a), 4630.34, 4630.35, 4630.36, and 4630.37 of subpart D of Treasury Decision 4929, approved August 28, 1939, as amended by Treasury Decision 4991, approved July 20, 1940 [26 C.F.R., 1939 Sup., 458.301 to 458.307, both inclusive, 458.331 to 458.337, both inclusive, 1940 Sup., 458.333(a)7. (This Treasury decision is issued under the authority contained in section 55 (a) (2), as amended, of the Internal Revenue Code (53 Stat. 29, 26 U.S.C. 55, 1940 ed.); section 55 (Title I), as amended, of the Revenue Act of 1932 (47 Stat. 189); and section 55 (a) of the Revenue Act of 1934 (4a Stat. 680).) signed) M. as Secretary of the Treasury. APPROVED: THE WHITE HOUSE. 260 TREASURY DEPARTMENT WASHINGTON OFFICE OF COMMISSIONER OF INTERNAL REVENUE INTERNAL REVENUE APR 8 -1012 REFER TO MEMORANDUM FOR THE SECRETARY: There is transmitted herewith, with the recommendation that it be approved, a proposed Treasury decision which provides rules and regulations for the inspection of certain returns filed with respect to excise taxes imposed by the Internal Revenue Code or by the Revenue Acts of 1932 or 1934. A request has been made by the Secretary of the Interior that permission be granted to inspect returns in connection with the tax on gasoline and on the transportation of crude oil, etc. by pipe line. In accordance with the provisions of section 55 (a) (2), as amended, of the Internal Revenue Code, section 55 (a), as amended, of the Revenue Act of 1932, and sec- tion 55 (a) of the Revenue Act of 1934, certain excise tax returns, including those the inspection of which is requested by the Secretary of the Interior, constitute public records and shall be open to public 261 -2Memorandum for the Secretary. examination and inspection to such extent as shall be authorized in rules and regulations promulgated by the President. A general Treasury decision, T. D. 4929, approved by the President on August 28, 1939, regulates the inspection of returns under chapter 1, subchapters A, B, and D, of chapter 2, chapter 3, chapter 4, chapter 6, and subchapter C of chapter 9, of the Internal Revenue Code, relating to income returns, personal holding company returns, unjust enrichment returns, declared value excess-profits returns, estate tax returns, gift tax returns, capital stock tax returns, and returns of employment tax on employers. It is now proposed to have a general Treasury decision, approved by the President, authorizing the inspection of certain excise tax returns not covered by Treasury Decision 4929 and providing rules and regulations for such inspection to be made to the 262 -3Memorandum for the Secretary. same extent and subject to the same provisions and limitations as provided with respect to income tax returns in Treasury Decision 4929. Gay Commission Heloring Attached: Draft of proposed Treasury decision. Letter to the President. cc - Mr. Daniel Bell 263 April 15, 1942 9:53 a.m. HMJr: Hello. Frank Ireby: Good morning. HMJr: Hello, Frank. I: How are you? HMJr: Fine. Secretary speaking. I: Yes. HMJr: Look, Frank, you said something and I only half heard it as you were leaving. You said something about that there were thirty-two concerns out there that ought to be seen on this issuing agent stuff. I: Yes, sir. I think we ought to call the thirty- two biggest companies, and I'd like to call them together in the Federal Reserve Bank over here, and then have this gentleman of yours come here. HMJr: You think it would be better to do the thirty-two at one time? I: Well, you know, we've got them all at one time in there and we got them all to go for the payroll savings plan at one time. HMJr: I see. I: And I think that it would be an inspiration HMJr: I see. I: I can kind of lay the ground work to get one or two of the big fellows to agree to do it before if the entire thirty-two at one time said, "All right, we'll do this, too." they come in, you see. HMJr: Well, will you know during the day whether General 264 2 Motors want us to come out there or not? Yes. Yes. In fact, they're calling me right now, and I'm going to talk to them this morning, and I'm going to talk to Rether, too. I: The other thing, Mr. Secretary, is what they've all said to me. I met with fifteen of the largest corporations with the Army here last week Yeah. HMJr: , I: and the thing that they objected to, they said, "We'11 put in the - we'll become issuing agents if you'll straighten out this Comotroller General, who 1e getting us all jimmed up here by not paying us for the amount of money that we deduct each week for the purchase of defense bonds. The Comptroller General said that they wouldn't pay them that until they'd purchased the actual bond. HMJr: Well, did you tell that to anybody? I certainly did. I talked to - in fact, one of the fellows from the union found it out through Ford's, and the C.I.O., and he called Washington when you were out of the city, when you were in Tucson - when you were out in Arizona. HMJr: Well, this Mr. Mills is coming out. I'm going to have him do that and nothing else. I: Well, if you'll do that, I'll get all these fellows into the picture; but that - the order of the Comptroller General, they just simply said, "Frank, we want to do this job of taking on the issuing, but my gracious, this other job is just getting us all jimmed up here." HMJr: Now, when you know for sure that it's all right with Reuther I: Yes. and if - and on this General Motors thing HMJr: I: Yes. 265 - -3 - I: put in a particular party call for me, collect. All right. HMJr: District 2626. I: District 2626. HMJr: See? I: All right. HMJr: Just as soon 88 you know. I: I'll do it. I'm on it right now, and I'm going HMJr: to talk to these people right away this morning. HMJr: Collect call, particular party, asking for me because I might be out - District 2626. I: All right. I know, Mr. Secretary, that when you know this, we can get this thing straightened out and you'll be astounded at the increase in these bond sales. HMJr: I: Well The corporations - I believe here that the corporations like Chrysler and General Motors and Ford have got millions upon millions of dollars get up here now, but they just haven't been able to purchase the bonds. They - through their mechanics, you see. HMJr: Well, anyway, you I: We can get this straightened out quick if I set this meeting and you send the gentleman out. HMJr: Did you go home with the boys on the train? I: No, the General Motors boys stayed. HMJr: Ch, all right. I: And the material that's downstairs there, I told them would be all right so that they wouldn't lose it for that meeting. 266 -4HMJr: Were they perfectly happy? Oh, I want to tell you something. They were so steamed up (laughs). I told them what a real HMJr: I: HMJr: fellow you were. I said, "He's always said this is a selling job," # and they said, "Well, then he's talking right down our alley." Well, it 1s. I said, "Well, he said that months ago." " Well, I'm sick and mad over the fact that we haven't got this issuing business straightened out, but believe me, I will. I: Here's a - I'11 read you a letter right here now, from Holland, Michigan. Right on my desk from the Holland Evening Sentinel, and this is a newspaper, and it's right here now from the editor and he's complaining of the same thing. HMJr: Okay. I: See? HMJr: All right. I: I'll call you. I'll get it straightened out, and I'll call you, as you say. HMJr: Right. Thank you. I: Thank you very much. HMJr: Good-bye. I: Good-bye. cc - Mr. Foley. 267 April 15, 1942 9:59 a.m. HMJr: Hello. Operator: Mr. Welles. HMJr: Summer Hello. Welles: Hello. HMJr: Summer. W: Good morning, Henry. HMJr: How are you? W: Fine, thanks. HMJr: W: Summer, I was just prepared to answer your letter of April 8, where you asked us to issue a license to have two vessels sail for North Africa. Well, for the time being, naturally, we'll have to leave everything in abeyance, Henry. HMJr: W: HMJr: W: HMJr: Well, that's why I I would have sent you word last night to that effect except that I've been hoping to get some word from Leahy, and I haven't yet got it. Well, would you make a note that I'11 hold up answering your letter Yes. and issuing the license until I hear from you further. W: Yes, indeed. HMJr: How's that? W: Many thanks. HMJr: I thank you. W: That's right. 268 -2HMJr: Thank you. W: Good-bye, Henry. 269 April 15, 1942 10:00 a.m. FINANCE Present: Mr. Bell Mr. Haas Mr. Buffington Mr. Hadley Mr. Baker Mr. Murphy MR. BELL: Before we get into the financing, may I take up a little item? H.M.JR: Surely. MR. BELL: Two items. Do you think we ought to call the loan to China war expenditure? I assume it is. H.M.JR: What would you call it? MR. BELL: I think it probably ought to go under national defense. H.M.JR: Where else could it go? MR. BELL: We could call it an asset, and keep it out of the budget altogether, but I don't think it should be. I think it should be called an expenditure for war. Put under national defense heading, with caption, "Loan to China." H.M.JR: Under national defense heading-- MR. BELL: Show up in this caption, "National Defense, and, "Loan to China" right in here. 270 -2H.M.JR: But you would call it "Loan to China" under "National Defense." Very nice. MR. BELL: Would you prefer to keep the words "National Defense," or change them to "War Expenditures"? H.M.JR: War Expenditures. MR. BELL: You would rather have it that way. H.M.JR: Yes. MR. BELL: Personally I like "National Defense," it covers a lot. H.M.JR: That is really not on a war basis. Let's get everything on a war basis. MR. BELL: All right. Now, that loan to China two hundred million will go out today, and it will show up in the daily. It comes out Friday morning, so you might want to announce it tomorrow at your press conference. H.M.JR: Give something to Chick he can give out Thursday. I don't want one unless you do. MR. BELL: No, I just thought something for you to announce at your regular press conference. H.M.JR: Thank you. Just let it go out the regular way. MR. BELL: Now you sent me this memorandum, "Send out a thousand post cards" - a thousand in each Federal Reserve District, and just send them at random to the people. H.M.JR: Well, I would pick up whatever the twenty-five dollar bonds are, the most recent that have come in, pick up the most recent. I mean, I don't know whether they come here. 271 3- MR. BELL: Eventually they come here. Of course, they won't come here for, what is it, thirty to sixty days? H.M.JR: Where do we get it: MR. BELL: Federal. 11 H.M.JR: Send them a wire and ask them to do it for us. Now while you are on that, Mr. Bell, what I would like to do - I don't know whether to raise it now. I checked with the boys that went to the West Coast, and Szymczak was very helpful, and I would like to ask the Federal Reserve Board to designate somebody like Szymczak to work with us on this question of making, you know, these companies fiscal agents. MR. BELL: They have designated John McKee as a liaison officer with Treasury. He has been working on some phases of it right along. H.M.JR: If that is the case, we send this man out I would like to ask John McKee to go out, the first case to Detroit with Mills. MR. BELL: You would like to have him go out there today then? H.M.JR: I am waiting to hear from - I just spoke to our man Frank Iseby. He says he will call me back. He hadn't heard. What he wants to do is, he said, "It is a waste of time." He wants to get thirty-two CORcerns together - they will have it all paved in advance and do thirty-two at one time, the biggest, spend a whole day on it, get them all together, line them all up, just the way you would get them to put in pay roll deduction. I think on a thing like that it would be very nice to have John McKee go out with Mills. MR. BELL: Mills is gone. H.M.JR: No, because General Motors asked him not to. They wanted to first talk to their comptroller. 272 4- MR. BUFFINGTON: I called him and told him. H.M.JR: No, he didn't go. My conversation with along this thing - what do you think of sending McKee out? MR. BELL: That is all right. I am not much impressed with representatives of the Federal Reserve Board, to be frank with you. H.M.JR: Well, I think if there is any weakness in their organizations, we can't do anything about it, and they can. MR. BELL: I think we can do a lot about the weakness in the organization so far as the fiscal agent is concerned. H.M.JR: You check, Dan. I would like in this one case to have him go out there and get the picture. I have been fooling around with this thing since January, and haven't got anywhere. MR. BELL: You don t want me to ask him until you get this? H.M.JR: No. I will leave it in your hands. We are short on man power, and they have lots of it over there raring to go. MR. BELL: Well, all right. I thought you ought to take a look at this financial picture ahead of us for the next few months. H.M.JR: I would like to. MR. BELL: And see if we can't work out some kind of a schedule, at least up to June 30, on dates. We estimate that we will spend on national defense three billion dollars in April, and that figure will rise at the rate of approximately two hundred million dollars a month until it reaches four and a half billion in December. That makes approximately thirty-four billion dollars that 273 -5we will spend on national defense in nine months. Now, there is another two billion dollars which the Governmental corporations will spend, making all told about thirty-six. Now the Budget told us yesterday that they estimated that this spending in December might reach six billion dollars for national defense. H.M.JR: Let me just interrupt you. I may go to Detroit on this myself. I may go myself. There is going to be thirty-two corporations, and I may go. Go ahead. MR. BELL: Well, along the line, I think maybe if you are going to have thirty-two corporations, that maybe somebody better go and make a little more strenuous appeal than I think maybe Mills would be to a group that way. I think he would be all right sitting down to a desk, but talking to a group, I am not so sure. H.M.JR: Who would you suggest? MR. BELL: George Buffington. H.M.JR: I don't want George on this thing. MR. BELL: Mills might do all right. I just haven't seen him under those conditions. MR. BUFFINGTON: I think he will. MR. BELL: O.K. H.M.JR: George walked out on me this morning - not walked out on me, but with me. As soon as we get this thing, George has plenty to do to go out in the field and talk with insurance companies. MR. BELL: I was just thinking on one occasion-H.M.JR: You and I go together. I would go anyway. I could be forceful on this thing. MR. BELL: That is swell. 274 -6H.M.JR: I am going to go myself. I am not going to get licked on this thing, and I have been licked on it now since we started. Go ahead. MR. BELL: As I say, the Budget is now considering revising their estimates. They have been in touch with the War Production Board, and the War Production Board thinks that the national defense expenditures will reach six billion dollars in December, and that is a billion and a half above our estimates, and they are estimating that the total expenditures for national defense in 1943 will be seventy-five billions instead of fifty-six billions. H.M.JR: How close was Stacy May the last time he was here? Remember, I told you what he said, gave you some figures. MR. BELL: I don't remember. H.M.JR: Did I give it to you? MR. HAAS: Yes, and I called him about those. H.M.JR: These expenditures? MR. HAAS: Yes, I called him and he said those weren't an estimate. He says those were what it would be, making certain assumptions. He put it that way. M.JR: I wonder how close he was looking back. Look up your record, and let Bell and me know, because he is coming over this afternoon for an hour this. afternoon. MR. HAAS: I don't have it. H.M.JR: Miss Chauncey might have it. Go ahead. MR. BELL: We estimate that we will go out of April with a balance of one billion seven after having borrowed a billion and a half this month. 275 -7H.M.JR: Go out with how much? MR. BELL: A billion seven. We will need two billion dollars in the month of May, and two billion dollars in the month of June. H.M.JR: That is what we expected? MR. BELL: That is right, except May, we thought a billion and a half. That takes us out of May with a billion five sixty, out of June with a billion six seventy. That contemplates five hundred fifty million dollars in April for Defense Savings "Bonds, six hundred million in May, and five hundred fifty in June, and we have got in this picture only an average of about six hundred million dollars for the balance of the year. Of course, if we go to the billion, that will go up and cut down our borrowing, but in the next seven months eight months - on this schedule - and I think it is probably conservative. We have got to borrow nineteen billion dollars. H.M.JR: From when to when? MR. BELL: From May to December, inclusive. H.M.JR: From May to-- MR. BELL: To December inclusive, that is eight months. H.M.JR: The rest of this calendar year. MR. BELL: Yes. H.M.JR: Do you mind doing that thing once more, starting from the beginning? It didn't soak in. MR. BELL: This schedule shows expenditures for national defense of three billion in April, and I increase them approximately two hundred million dollars a month. When we get to December, it shows an expenditure for that month of four billion five fifty million. And I say that 276 -8the Budget and the War Production Board are working on new estimates, and they think that the expenditure in December might go as high as six billion dollars, and they think maybe the expenditures for 1943 fiscal year might go as high as seventy-five billion dollars as compared with the present Budget estimate of about fiftysix. I say that we contemplate here on this basis borrowing two billion dollars in May, and two billion dollars in June, and we will have to borrow two billion dollars and up every month up to June, making a total of about nineteen billion dollars that we will have to borrow between May 1 and December 31 on this basis. Now, that also contemplates only an average of about six hundred million dollars for Savings Bonds, and an average of about two hundred fifty million dollars a month for tax notes. We go out of April with one billion seven hundred million, go out of May with one billion five hundred million, go out of May with one billion five sixty, and out of June with one billion six hundred seventy million. H.M.JR: If we do two billion in May? MR. BELL: If we do two billion in May and two billion in June. Now these are the questions I think we have got to consider at this time. We have got on July 1 a maturity of two hundred seventy-six million dollars in RFC notes, we have a maturity on September 15 of three hundred forty-two million dollars in Treasury notes, and there is an eight hundred seventy-five million dollars-H.M.JR: Which is it, what month? MR. BELL: July 1. September 15 is Treasury notes, and on July 1 there is callable eight hundred seventyfive million, two and a quarter Home Owners' Loan Bonds, and they have to be called. The notice of the call has to go out by May 1 if we are going to call them. Now, the Home Owners' Loan will have by June 30, three hundred million dollars in cash in the Treasury, that is, will have a cash credit of that amount; and of course, it would like to get the benefit of that reduction in interest. They would like to see us call those bonds so that they can reduce their debt by some three hundred million 277 -9dollars. They would give us a note for five hundred some dollars. H.M.JR: I have got a very simple solution on that, Call every third bond, three hundred million dollars. on Home Owners' Loan, simply call every third bond. MR. BELL: You could call every six months, every interest date. H.M.JR: No, but I mean call a third of their issue. If it is eight seventy-five, get three hundred million dollars, a third, let them pay that off. When they accumulate some more money, we will call some more. MR. BELL: But, if you do that, it means that we have to put back into our cash position here two hundred ninety some million dollars. In other words, we have to raise the cash with which to pay that off. They have accumulated the cash in the Treasury, but we have used it. It has been in our balances. H.M.JR: That is all right, but looking at it from their standpoint, they get three hundred million dollars on hand. I would call a third of the issue, let them pay off a third. We will raise that much more. MR. BELL: That is what we will have to do. H.M.JR: But, I mean, I am throwing that out. None of these things are decided. It seems to me - if I was their banker, and they came to me and said, "Mr. Morgenthau, I have an issue - I have three hundred million dollars. I would like to retire three hundred of that." Say in October you retire three hundred, and from their standpoint that would be-- MR. BELL: That would be all right from their stand- point. H.M.JR: I think it is fair from their standpoint. Of course, they would like to get rid of the whole eight hundred seventy-five and get on the Treasury basis, like we have given every other corporation. We can't do that now. 278 - 10 - MR. BELL: I think these are two questions-- H.M.JR: I mean this is a preliminary, but that is the way I would do it. MR. BELL: I wonder if you want to consider it from this angle for a moment, that - at least consider calling the whole eight seventy-five, say on April 29, giving notice of call; and in the week of May 4, raise our new money and give consideration to a short and a long bond at that time. H.M.JR: Don't let's confuse the two things. MR. BELL: I am giving you a schedule of dates I want to get in your mind, something for us to study in the next week or ten days, a schedule of financing. H.M.JR: You would have to raise three billion. MR. BELL: No, the week of the fourth, two billion dollars, and I would like to consider with this group a long and a short bond, a banking bond and a long bond for insurance companies. They want it very badly, I think. On the week of the eighteenth, refund all of those securities that we have been talking about, the eight seventy-five, the two seventy-six, and the three forty-two, which would be a billion four ninety-three. H.M.JR: Not so good. MR. BELL: I am saying consider it. Then the first week in June, we consider that as a possibility for the further cash in that month. H.M.JR: Dan, let me tell you this. Nothing is settled. This is the first we will have of a half dozen trial runs, and we have got to keep the financing down to once a month. We can't be doing this thing twice a month. 279 - 11 MR. BELL: You have got to meet the refundings. You have got to meet the RFC, and the September-H.M.JR: But when do they come due? MR. BELL: July 1 and September 15, and you have got to have financing in both of those months, cash. H.M.JR: I expect to finance every month, but only once. God, I thought when I first came here - I thought I was a smart boy to do it once in three months, but I am not going to do it twice a month. MR. BELL: I am afraid we may have to, some of these refundings. We want to keep our cash and refunding separate. H.M.JR: O.K. I am not saying anything, but you look at it, let's leave this thing - look at it another way, leave the Home Owners' Loan, call a third, let them pay off a third, which means we have got to raise three hundred million dollars more, and then we take up those other things of ours in the month that they come due. How long will it be before Home Owners' Loan have another three hundred million dollars? How fast do they collect that stuff? MR. BELL: Probably a year. H.M.JR: Well, within a year they pay off another. MR. BELL: Expect to have the whole issue paid off by '44, '45. H.M.JR: That is good financing from their stand- point. As they get the money in, they pay it off. That is the way a business would do it. MR. MURPHY: The HOLC is selling at a premium of eight thirty-seconds above a zero yield to first call date, and it would be very disappointing to the holders of the bonds if they were called. 280 - 12 H.M.JR: Now listen, Henry-- MR. BELL: If they are all-MR. MURPHY: If they were called and paid in cash- H.M.JR: I can not run Treasury financing on the expectations of these people and these rights that they put on. I have got to look at this thing as to what is good from the standpoint of the Treasury and what is good for these corporations. I mean, I have got to be fair to these corporations. I think what I am suggesting for Home Owners' Loan is good sound finance. MR. BELL: I don't think Henry disagrees. I think what he thinks I ought to do is do what we have done in the past, and that is refund one third of them rather than pay off cash, and I think that is as broad as it is long, from our standpoint. H.M.JR: You want to hang on to the three hundred million dollars. MR. BELL: I have already spent it. H.M.JR: That is what the Republican party accuses us of doing with Social Security money. MR. BELL: We spent that, too. H.M.JR: We had better stop saying that six months before election. MR. BELL: We spent that, and it is just a credit as far as they are concerned. H.M.JR: Could I just change the subject a minute? MR. BELL: I would like to throw out two other things on financing to be considered by this group. In view of our program ahead of us, I would like to study the possi- bilities of the large bond issue, four or five billion dollars, get funds for say two months ahead in that manner, 281 - 13 - give the market a sixty day rest, and study also whether we should have more in this next sixty days or another certificate issued. That is the schedule for just sixty days ahead, and I think it is about as far as we can see. H.M.JR: Now on the bill think, I would like to, just as soon as possible, increase it to two hundred million a week. I asked you to have me a chart for the base period. MR. HAAS: I have got it. H.M.JR: Where is it, with the isinglass cover on it? You got to do better George. I tell you what I am going to do. This is the first run. I am not in too good shape this morning. MR. BELL: I didn't expect you to make any decision today other than give as sort of a schedule to work on. It is a bit job ahead of us. H.M.JR: I am going to start with you again tomorrow morning at nine fifteen on the same subject. MR. BELL: All right. H.M.JR: I have another five minutes, but we will start on that thing again tomorrow morning. Then I wish you would be thinking about - I never had explained to me what this five-year tap issue is or the twenty-year tap issue. I would like that explained to me tomorrow morning. I take it by now it is decided what kind of a twenty year tap_you want. MR. BELL: No, I wouldn't say so. We haven't been very successful in selling it to you, and I think probably the reason for that is that we have all been sort of luke warm on it. H.M.JR: No, you haven't tried to sell me the - but I feel this way - among all rules of thumb - I think that in May and June we ought to try to clean up all the idle 282 - 14 - balances that there are in this country. Now, whatever they are, we need four billion dollars, and let's settle this argument once and for all. Now, I was very much pleased that forty percent of these last issues went to corporations. I thought that was good. MR. HAAS: That included insurance companies. MR. BELL: Thirty percent. MR. HAAS: That included insurance companies. They should be separated. H.M.JR: Sixty percent went to banking institutions. MR. BELL: You mean all others, that is right. H.M.JR: I figured fifty-nine point three went to banking institutions, and I figured forty percent. Is that right? MR. BELL: That is right. That includes individuals and everything. H.M.JR: How much? MR. BELL: Metropolitan subscribed for one fifty. Of course they didn't get but seventy-five of it. H.M.JR: I don't know just where the idle balances are. That is one of the reasons I don't want George tied to something else. I want to use him to find out; and then having found out where the idle balances are, as near as I can remember, the only persons with idle balances are the breweries. I haven't found out where they are or what kind of a piece of paper do they want. They were very frank with us before; those that said, "Take it," took it; and those that didn't, didn't. MR. BELL: Utilities might have some. MR. BUFFINGTON: Not a lot. MR. BELL: They can't invest, they can't spend all their money for maintenance and depreciation. Some of them have been in to see me, and told me they haven't been able to do that. 283 - 15 - H.M.JR: Well, Dan, again, you have got time after tomorrow morning or certainly Friday morning. We ought to have some idea in our own mind what kind of a piece of paper we are going to offer them, so that next week George could go out into the field and see some of these people and say, "Now, we have got this kind of merchandise; does this interest you?" you see, that is what I had in mind. That is what I am saving you (Buffington) for, so that you can go out and see what they would invest in; two, "If we gave you this kind, would you invest in them?" But certainly between now and the first of July I want to answer this argument opposite the Federal Reserve Board. "If there are any Idle balances, gentlemen, we are going to mop up every single dollar of them wherever they are." And I would like to clear the issue so we can settle that argument once and for all. I don't know. I am starting from scratch. MR. BELL: I think this problem before us is so big I think we had better start out now without waiting until the week before, put a lot of time on financing. From here on it is so big we just can't do it over night any more. H.M.JR: I said at nine fifteen tomorrow morning. MR. HAAS: This is a close shave. To make it practical so you can get something out of it, I sent Murphy out there is a table which goes with it, shows each one in a differential over the base. The base is that date. That is the date you talked about. This mark here, you see, as they move it, the yields move up. MR. BELL: What is the red line? MR. HAAS: That is your base underneath. H.M.JR: Which is the base? MR. HAAS: The red. MR. BELL: Fluctuating is the black? 284 - 16 - MR. HAAS: That is right. H.M.JR: Here on the very short, it increased-MR. around. HAAS: That is right, and there, the other way H.M.JR: Up here? MR. BELL: The yields have increased down here on securities and on the long end the yield has gone down. H.M.JR: That gets out to sixty-eight. MR. HAAS: If you had this table, I thought we would have a memorandum pointing out the high lights to you so at a glance you can see what is going on. H.M.JR: I think it is very - don't you think it is useful? MR. MURPHY: Very much so. H.M.JR: That is a good idea of yours, George. (Laughter) Have you made one for Mr. Bell? MR. HAAS: No, sir, we will though. H.M.JR: Let's just quit right now, and we will do it again tomorrow morning. MR. BELL: Another thing we ought to take up tomorrow morning is limitations on "F" and "G." We ought to settle that question. H.M.JR: I will give you forty-five minutes tomorrow morning. 285 Mr. Stacy May's figures as of March 7, 1942 January, 1942 $21 billions spent on the war February, 1942 $2 billions 6 (tentative figure) June, 1941 $4 billions December, 1941 $51 billions march stent - 3 bellion was effort was ffant will$43 billion more X 194-1 titalabout 50 billim for 1942 whole year 286 Salee of Treasury Notes - Tax Series A and Tax Series B August 1941 to March 1942 Classified by denomination (Par amounts in millione of dollars - As reported by the Federal Reserve Banke) Series and denomination Tax Series A $25 50 100 Aug. Dec. .4 .2 .3 4.1 2.0 3.3 .5 .3 .6 .9 in 1.0 2.4 3.4 47.6 1.4 2.5 42.5 6.1 3.3 5.4 57.3 3.6 .6 .3 .5 8.7 1.3 .6 5.0 11.7 112,1 408.5 1,012.6 1.8 2.5 38.2 .2 500 * 1,000 Total-Tax Seriee A Total Mar. Feb. Jan. .2 .2 Tax Series B $100 82.7 312.1 817.6 171.5 1,000,000 1,048.0 12.1 39.8 71.8 19.0 77.0 6.4 23.2 48.7 11.5 34.0 1.1 10.9 33.4 74.5 31.5 80.0 Total-Tax Series B 2,444.2 221.6 124.7 231.9 3,022.4 Total-Both Series 2,486.7 227.7 128.0 237.3 3,079.7 500 1,000 10,000 100,000 500,000 office of the Secretary of the Treasury, Division of Research and Statistics. $500 and $1,000 denominations not sold prior to Jenuary 1942. 233.5 1,239.0 April 15, 1942 Classification by Type of Purchaser of the Sales of Treasury Notes 287 Tax Series A and Tax Series B August 1941 to March 1942 (Par amounts in millions of dollars - As reported by the Federal Reserve Banks) Type of purchaser and month Individuals 1 Tax Series Tax Series Total B A 50.0 21.1 20.4 14.3 36.7 66.0 27.3 25.6 17.8 42.1 March 4.9 60.7 23.8 23.9 66.1 26.7 28.8 Total 49.5 250.9 300.4 1,024.9 1,028.6 260.3 411.5 301.9 303.1 261.2 412.1 302.5 303.5 161.6 August September October November December January February Corporations August September October November December 16.0 6.2 5.2 3.5 5.4 5.4 2.9 3.7 .9 .6 .6 .4 January February .7 March .5 160.9 100.9 208.0 7.8 2,771.5 2,779.3 19.7 7.1 1,074.9 1,094.6 5.8 4.1 5.8 281.4 431.9 316.2 339.8 288.5 437.7 320.3 345.6 March 6.1 3.3 5.4 221.6 124.7 231.9 227.7 128.0 237.3 Total 57.3 3,022.4 3,079.7 Total Total sales August September October November December January February 4 Office of the Secretary of the Treasury, Division of Research and Statistics. 1 / Includes partnerships and fiduciaries. 101.3 208.5 April 15, 1942 288 April 15, 1942 12:04 p.m. HMJr: Hello. Operator: Mr. Houghteling. HMJr: Hello. I Lawrence Houghteling: Hello, Mr. Morgenthau. Lawrence Houghteling. HMor: H: Go ahead. I talked to R. J. Thomas this morning. He's in town - at least he left at noon - he was in town for the President's conference - and he knew nothing about the General Motors plan, and was, in fact, rather hostile. He said that he thought the General Motors were trying to put a fast one over on the unions, which had been working on their - had been urging them to install a payroll plan for a good many months. HMJr: Yeah. H: And they - of course, they had made their own commitment first for fifty million, and then for a hundred million, and - but he - I could answer you that he'd never heard of their plan. They hadn't consulted him. HMJr: Yeah. H: Then I called Walter Reuther in Detroit. HMJr: Yes. H: He's the head of the General Motors branch of the U.A.W., , and he said yes, that he had been consulted, but about the time that they started this preliminary teaser campaign, when the plan was all put together, and that he said then, "Well, it's a good plan, all right. From the payroll savings standpoint it's a workable plan, and you' done an awful lot of work on it, but you're not considering the union participation at all." 289 -2HMJr: Yeah. And they said, "Well, perhaps we're wrong about this, we've got it all set un and it's too late to change now." H: HMJr: Yes. Now, he has been invited by Mr. Anderson to come down tomorrow, and he's coming. He has an appointment with the President at eleven- H: thirty, and he suggested that he thought it would be fine if he and Mr. Anderson could talk to you together, because he thought that the one thing that would put the plan over would be closer joint cooperation with the unions in forming of joint committees and some recognition that the employees had some organization which was interested in what they were doing. HMJr: H: Right. Well, now, I tell you what you do. You make an appointment - well, I can change that, I'll have to change it - for Anderson and Leuther, is it? Reuther. R-e-u-t-h-e-r. HMJr: I know. H: Yeah, Walter Reuther. HMJr: Hello. H: Yes. HMJr: Tell them I could see them - it wouldn't take more than fifteen minutes - would they be in at nine o'clock? H: Tomorrow morning? HMJr: Yes. H: I should think so. HMJr: I don't think that train gets in until eightfifty, or something, from Detroit. I'm not sure. Find out. 290 3H: Yes, I'll find out. If HMJr: And let Mrs. Klotz know. H: I'11 do that. HMJr: If they can, I could see them at nine o'clock. H: Yes. HMJr: The two of them. H: Would it be worthwhile to have Mr. Thomas in? HMJr: H: HMJr: Gee whi z, I don't know. If there's going to be any question about it, I'd rather call off the whole thing, going up on the Hill. Yes. Well, I I - frankly, I don't like Thomas. I mean, I was out there. God, he was so jealous of this person and that person, and he wasn't nice to these two little union fellows that I had in here, at all. H: HMJr: Yeah. They were both members of the anti-Thomas faction, I believe. Oh. Well, now, if there's going to be any trouble, I'd rather call off the whole damn thing. H: Yes. Well, I just HMJr: Is Thomas in town? H: HMJr: Thomas has gone to Buffalo, but will be back in the morning. Well, I mean, if it's going to be - if they haven't done the thing with the unions, rather than go uo and do this whole thing, I'd rather call it off, but then I'll have a hard time explaining. H: Yes. 291 4HMJr: Do I have to have Thomas? H: No, you don't have to have Thomas. HMJr: H: HMJr: H: HMJr: What? You don't have to have Thomas at all. Reuther represents the workers in the General Motors Yeah, I know Reuther. Reuther likes me. Yeah. Because I'm the only person that's been for his plan for over a year. H: Yee. HMJr: I get along fine with Reuther. H: Yes. HMJr: But, God, I - this fellow Thomas - I just - he's too high up in the unions for me. H: Yes. Well, I - that was just my suggestion tentative suggestion, and I - which I withdraw. Mr. Thomas, I know HMJr: H: Well, isn't Reuther in charge of the C.I.O.? Reuther is in charge of the Automobile Workers in the HMJr: Well, I'd have perfect confidence going up H: Yeah. HMJr: But I'd be scared to death to go up there with there with Reuther. Thomas. H: Yeah. All right, sir, and I'11 try to get them HMJr: At nine o'clock tomorrow. H: at..... nine o'clock tomorrow morning. 292 -5HMJr: H: Are you happy about this? I'm fairly happy about it. I think it's what's happening all the time. The big companies don't like to bring the unions in. HMJr: H: HMJr: I know. We'11 do it this time. We'll teach them a little something. It'11 get around. Yeah. I'd hate to after I've told the President I'm going up on the Hill and he approved it, and I've told the committee - I think it would be a mistake - as long as you're sure that Reuther will go down the line. H: HMJr: H: Yeah, I think he will. Well, I think we can - I think he'd appreciate my bringing him in the picture now. Yeah, I think so. HMJr: All right. H: I'll call them up. Do you want me to be present? HMJr: Oh, yes. H: All right, fine. HMJr: H: And then you let Mrs. Klotz know. I'11 let Mrs. Klotz know. HMJr: Thank you. H: All right, fine. 293 April 15, 1942 12:12 p.m. HMJr: Ronald Hello. Ransom: Hello, Henry. Ronald Ransom. HMJr: Yeah, how are you? R: Fine. How are you these days? HMJr: Okay. R: You know you are still, I'm glad to say, on our consultative committee on Regulation W, which is the Regulation of Consumer Credit. HMJr: R: Oh, yes. Well, I'd forgotten it. Well, you're lucky to have forgotten it, but I'm reminding you of it. HMJr: R: Yeah. This is the situation. In connection with what I am told - this is all heresay - there's to be a sort of over-all administrative bauble to combat inflation - there may be a request that the regular terms of the regulation be tightened. Roughly, there is some - there is an estimate that there's some ten billion dollars of consumer credit outstanding at the present time, of all types. HMJr: Yeah. R: That's the Department of Commerce figure, and I expect it's pretty rough. The thought 1e that if some billions of that could be equeezed out by regulation during the balance of the year, there's that much pressure taken off of the burden of Government, tax-wise and otherwise, to combat inflation. HMJr: R: Yeah. All of this is highly theoretical and professorial, but nevertheless it does get itself into the general picture. 294 -2HMJr: Yeah. The question now is what we can do with Regulation W as part of such a program as the press says is to be now formulated. R: HMJr: Yeah. And I have had in mind the thought that probably R: the maximum we could do would be to be sure that at the end of the year that outstanding was down, say, four billion dollars. Our own boys think that it would be down about two billion dollars by natural reduction, unless the pressure was so strong elsewhere as to force people into borrowing to meet their wants. HMJr: Yeah. So that would mean we would have to tighten it up about two billion dollars more than otherwise would come out. R: HMJr: Yeah. It's a pretty neat operation in controle, but it's one, I suspect, we're going to have to R: try. HMJr: R: Yeah. Now, in the process of working on this, and I am told we haven't much time, I didn't want to get even that far along in thinking without calling it to your attention. HMJr: Well, the more you can scueeze out of it, the better I'd like it. If you can do four, wonderful. R: Yes. If we can hold it to four on balance, you'd think that that was about as much as this particular mechanism of control ought to be asked to do. HMJr: Well, I wouldn't want to say that without 295 -3- going into it further; but if you want anybody to talk to about it from us, send for George Haas. He's been following that for me. R: HMJr: R: Fine, Henry. I'll talk to George about it and tell him what our thinking is Will you? 80 that he'11 know and be advised as to what we propose as an amendment. I'm very much opposed to the amendment getting out in front of the procession, but it ought to follow along with whatever is to be the Government's program. We went to do our part. HMJr: Okay. R: All right. HMJr: Thank you. 296 April 15, 1942 2:08 p.m. HMJr: Hello. Operator: Mr. Morgenthau, that message for Mr. Kuhn, HMJr: You did? Operator: She told me, and I just plain forgot. HMJr: Well, what'11 we do? What do you do to I forgot to give that to Mr. FitzGerald. your son when he forgets? Operator: (Laughs) I chastise him. HMJr: Well, do that to yourself. Operator: All right. I'm sorry. HMJr: Yeah, because I would have liked to have had him for lunch. Operator: I'm awfully sorry. Tell that to Mr. Kuhn, will you? I will. And Mr. Schwarz hasn't returned HMJr: Operator: from lunch. . HMJr: All right. Okay. Operator: I'm sorry. HMJr: When he comes, I want to see him. Operator: Right. 297 April 15, 1942 2:11 p.m. HMJr: Hello. Operator: Mr. Houghteling. Go ahead. HMJr: Hello. Lawrence Houghteling: Hello, how are you? HMJr: H: HMJr: Mr. Houghteling. Yeah. I think it would be nice if you could arrange to see Mr. Phil Murray today and explain to him that this whole General Motors thing descended upon me yesterday. H: HMJr: Yeah. And I took it for granted that they'd cleared it with labor. H: Yeah. HMJr: But to make sure that they had, we took the H: Yes. HMJr: Now, labor was left out, and we are bringing H: Yeah. initiative to find out. labor into the picture. HMJr: See? H: Yeah. HMJr: And if it hadn't been for action that I've taken, labor would have been left out entirely. H: Yes. I will do that. HMJr: Now, that's number one. And then number two, 298 2- and the reason I'm going up on the Hill is, tell him that the President is for this volunteer plan, but I'm going to try to sell it to the Congress H: Yeah. and I'm using General Motors as a vehicle HMJr: H: Yeah. to do it. HMJr: H: Yes. HMJr: See? H: Yes. HMJr: And when we go up there, that I'll see that Reuther gets a good chance. H: HMJr: H: Yeah. But I'd like to get that over to him today. Yeah. Well, I emphasized that in talking to Thomas this morning. HMJr: H: HMJr: Well, I want to get it to Philip Murray. You want to get it to Murray. All right, I'11 get in touch with Mr. Murray right away. If you please. H: All right. Thank you. HMJr: Thank you. 299 April 15, 1942 2:30 p.m. Cong. Doughton's Secretary: Mr. Morgenthau? HMJr: Talking. S: I called Mr. Doughton just a moment ago. This is his secretary. HMJr: S: Yes. I told him what you said, and he said he would cell you back. He wasn't sure yet. I told him what hours you were going to be busy, 80 he said he'd take that into consideration and call you back as soon as possible. HMJr: I thank you. S: You're welcome. Good-bye. 300 April 15, 1942 2:50 p.m. Robert Doughton: Hello, Henry. HMJr: Hello, Bob. D: Yeah. About your General Motors witnesses. HMJr: Yes. D: I'll tell you what the situation 18. HMJr: Yeah. D: We put them on the calendar - Mr. Paul will be on the first witness in the morning. HMJr: Yeah. D: Your folks will be on next. Now, you have about as good an idea as we do about how long we'll keep Paul on the stand. It might be an hour; it might be all morning; it might not be but thirty minutes, but I thought perhaps your people might be interested in his testimony, so that's now the best I can tell you. He 11 be on first, and they'11 be on second, on the calendar. How long he'11 - how long members of the committee will keep him on the stand and cross-question him, I don't have any way of knowing. HMJr: D: Well I'd say certain not before eleven o'clock. If he did, we'd fill in with somebody else, unless it suits you better to come in the afternoon. HMJr: D: No, we have Cabinet in the afternoon. How's that. HMJr: I have Cabinet. D: Well HMJr: But they could be up there; and if you thought 301 -2Paul was going to get through, you could have somebody call me and I could hop in the car and come up, you see, myself. D: And you'd have them up here. HMJr: I'd have them there anyway. D: HMJr: Well, then I'11 have my clerk keep in touch with me, and I'll keep him advised as to the situation and let you know in time to get you here. Yeah, and I'd like to be there and - but in any case - because I'd kind of like to introduce them. I thought I'd come up and introduce them to the committee. D: Well, that'd be fine. It'11 be fine. I hope you can. HMJr: I can hop up there in ten minutes, you see. D: Well, we'll give you ten minutes' notice, at least. HMJr: D: HMJr: You give me - give me - well, to be safe, give me fifteen minutes' notice. We'11 give you fifteen minutes' notice, if we have to get up and stretch our limbe. And I could hop uo there, and don't you think even if - do you suppose we could interrupt Paul if he was going too long? D: Going too long? Yes, I think 80. HMJr: What? D: We'11 do that. HMJr: I mean, if he was going too long, couldn't we interrupt him long enough to let these boys tell their story. It won't take very long. D: They think about thirty minutes, didn't they? 302 -3That's the outside. HMJr: Yeah. Well, if we see that we can't get through with Paul in time for them to get on and get through by one o'clock, why we 11 try to hold D: him up. What time does Paul go on? HMJr: Ten o'clock promptly. D: Well, I'll tell these General Motors boys to be there by ten-thirty. HMJr: D: That'11 be fine. HMJr: How'e that? D: That'11 be all right, fine. HMJr: And then you let me know D: . I'11 keep you advised about when - and e'11 try to get - I'll speak to the boys about it and if he, Paul's, not likely to get through, why we can let him take a recess, you know. HMJr: That's right. D: T mean, in time to hear them in the morning. HMJr: That's right. D: Well, say HMJr: Yee. D: .....I had a very satisfactory, 9 very pleasant conversation in conference with the President this morning. HMJr: D: Yeah. I got - I don't know whether you knew about it or not - he called me down there. I supposed when I got down there I'd find you and Eccles and Henderson and Smith and Senator George, and I don't know how 303 4 many more. I got down there, and there was nobody there but me. You know how I feared and trembled about whether he'd called me down there to give me a general reprimand. HMJr: Well, what did he tell you? Was it about the part that affects me on the D: Yeah, that's what I was going to tell you about. HMJr: Yeah. D: Well, the first thing he discussed chiefly here was - it all just seemed to be kind of general was this question ofcompulsory savings. HMJr: Yeah. What did he tell you? D: He told me they were up there trying to get him to recommend some legislation for compulsory savings. HMJr: D: Yeah. And wanted my opinion about it, and before I got time to express my opinion, he made a better speech against it than I could. HMJr: D: I see. And after he got through, I said, "Mr. President, you made a better speech on it than I could. I'm in full accord with every word you say. I think it would be a mistake at this time. I think it would be an indication of desperation, and that the people - a lot of them - wouldn't appreciate it and that it would work a hardship on some people, and I think it would be a mistake at this time. HMJr: Yeah. D: And I found he felt just the way you felt about it, and then we discussed other matters in general, all about just how we were getting along on the tax bill and 304 -5HMJr: D: HMJr: D: Did you get - did he touch on lowering the exemptions? Never named that. Did he talk about lowering the exemptions? I say, he never named that. HMJr: How about a sales tax? D: He talked about that generally. He's not much in favor of it. He don't like the name. If we could give it some other name, I think he'd take it a good deal more gracefully, if he had to. HMJr: Uh huh. No, he'e just like I am. He don't want a sales tax if he can help it, but he talked about increasing the excise taxes. HMJr: Yeah. D: About spreading out and getting greater number and all that kind of thing, and I told him this, it might, in favor of sales tax, get the money any other way, that I thought we'd go along - my idea was to take up first the tax on corporations and see how much we thought we could get, and on individual income tax, and on down - the major ones - and then we'd see where we were. And then I would come down and talk with him again HMJr: D: Yes. before we got to the sales tax question if we're going to get to it. HMJr: Did he say anything about raising the present amount of money above what D: He asked me if we thought we could get that amount. First said nine, and I said, "You include in that the two billion Social Security," and he said, "Yes." "Well," I said, "We're not 305 6 considering that at all, now. I don't know whether we re going to get the seven or not." I said, "We're going to try mighty hard to, Mr. President, but I don't know whether we can get it or not without a sales tax. I couldn't tell you until we get a chance to run over the list." HMJr: Well, did you go away satisfied? D: I never had a more satisfactory or pleasant interview in my life. HMJr: D: Uh huh. He's looking fine, and he's just as fine every way as he could be and I was well pleased and he's just corroborating your position in about everything that was discussed, and HMJr: D: HMJr: D: Was it about the way I told you on Saturday? That's about the way, and I was afraid he was calling me down there, you know wanting - and in view of what I'd seen in the papers about wanting to increase the amount of the statute we were raising now, and in view of the inflation question, all that primarily, but I found that if there was nothing of that kind in his mind at all, he kept it concealed from me. But it was just about the way I told you? It looks to me like you had a fine session with him, and everything is working mighty fine now. HMJr: I was in there this morning before you. D: Did you know he sent for me? HMJr: Well, he was kind of lonesome for you. D: What? HMJr: He was kind of lonesome. 306 -7D: HMJr: D: Well, he didn't seem to be in any hurry. We sat there and talked twenty or twenty-five minutes. No, he was kind of lonesome for you. (Laughs) Well, I've been mighty anxious to see him, but his time is so much more important than mine I hadn't bothered him. Well, we had a fine session, I'11 say that. Well, I'11 look out for you tomorrow. HMJr: D: All right. Good-bye. 307 April 15, 1942 3:00 p.m. HMJr: Hello. Mrs. Anna Rosenberg: Hello. HMJr: I'm honored. R: What? HMJr: R: Is this the Admiral? This is the Admiral. HMJr: (Laughe) R: That's the new title I had this morning HMJr: (Laughs) I see. R: .....for taking some buffeting about with the Maritime Commission. HMJr: Oh. R: But I think we got something done this morning. HMJr: Are you getting them straightened out with the R: HMJr: R: labor? Yeah. Yeah. Yeah. There are lots of people have quite a cause for complaint. HMJr: Yeah. R: And I think Macauley's very good, and the President put all personnel in his hands HMJr: Yeah. today, 80 I think it was all right. R: HMJr: Good. 308 -2R: Look, we're up, and a terrible storm broke out on this wage thing. I've had nothing but calls from Murray and Green. HMJr: R: Yeah. Green thought the President didn't say anything about he did. wage freezing to them, and Murray thought HMJr: You mean last Friday? R: Yes. HMJr: Yes. R: So they asked me, and I read to them what I I jotted a few notes down, because I knew there'd be controversy about what he said. HMJr: Yeah. R: And he definitely did speak about it. HMJr: He did. R: Oh, yes. HMJr: Yes. R: He said to them that he's got to freeze the cost of living, and into that goes the cost of labor. HMJr: Yeah. R: It's not the first time. Ever since their firet meeting, he's been talking to them about it. HMJr: R: Yeah. Well, Murray came over to see me this morning with Lee Pressman, and you never heard such a storm in your life. HMJr: R: I see. Oh, they're just about ready to go - be a revolution. God knows what not. And they won't hear of it 309 -2 voluntarily, either. oh, they won't do it. HMJr: R: HMJr: R: They won't. "oh, Lord," they of said. what's the sense it?" "Voluntarily - well, Yeah. So I think he's going to have a pretty tough time tomorrow. HMJr: Well, I'm sorry, because he's got so many tough R: Yes. HMJr: I really - I..... R: HMJr: R: times. Yes, I think And he was - he's tired today. Uh huh. He was - yes, I thought he was tired. He talked in good humor, because whenever he talks of shipbuilding HMJr: Yeah. R: .....he got into fairly good humor. HMJr: Oh, he was in a grand humor; but the man's tired. He 8 got R: Yes, he is tired, and HMJr: He's got reason to be. R: He's got too much on again tomorrow HMJr: Yeah. and Watson said to me, "Nothing but labor, R: labor, labor." HMJr: Yeah. R: Well, I'm afreid he chose this himself. 310 -4HMJr: Yeah. Well, I - of all the people around, you know, I'm - you know where I stood. R: Yeah. HMJr: What? R: What about - what do you think, can it be done HMJr: R: HMJr: with freezing prices if nothing else 18 done? Do I - you mean from the standpoint of inflation? Yeah. Do I think so? R: Yeah. HMJr: Yes, I do. R: You mean that you could freeze prices and not freeze wages or anything else, and it will go? HMJr: I think this. I happen to have great confidence in the American people. R: Yeah. HMJr: And also in labor. R: Yeah. HMJr: And I think if the appeal was made to the country, without request for any lesiglation R: For no wage increases? HMJr: Yeah. If the cost of living was stabilized. R: Yeah. HMJr: See? R: HMJr: And what do you do if they don't listen and a man's price is frozen? Pardon? 311 -5- HMJr: What do you do if a man's price 18 frozen, and his labor will not answer the appeal? If labor won't? R: Yeah. R: HMJr: Well, then, it's always time to go. You see, these people are, Mrs. Rosenberg, they've suddenly gotten hysterical. R: HMJr: R: HMJr: R: HMJr: Yes. They're what I call "the budget group". Yes. What is the excitement all of a sudden? I mean they - there is a man by the name of Gilbert who's advising Yes. (Talks aside) Do you mind just stepping out one minute? Just a second. R: Yes. HMJr: There's a man named Gilbert who's advised Henderson - does his thinking on this. R: Yes. HMJr: Last fall he was terribly excited. Then about November he said, We're going to have a depression in the spring." Mustn't do anything, see? R: HMJr: Uh huh. Now all of A sudden the world is going to collapse if we don't do something - inflation, inflation, inflation - and then with Bernie Baruch feeding all this stuff to the press R: Yes. HMJr: .....and the Vice President's gone ga-ga on this thing. 311 -5- HMJr: What do you do if 0 man's price is frozen, and his labor will not answer the appeal? If labor won't? R: Yeah. R: HMJr: Well, then, it's always time to go. You see, these people are, Mrs. Rosenberg, they've suddenly gotten hysterical. P: HMJr: R: HMJr: R: HMJr: Yes. They're what I call "the budget group". Yes. What is the excitement all of a sudden? I mean they - there is a man by the name of Gilbert who's advising Yes. (Talks aside) Do you mind just stepping out one minute? Just a second. R: Yes. HMJr: There's a man named Gilbert who's advised Henderson - does his thinking on this. R: HMJr: Yes. Last fall he was terribly excited. Then about November he said,"We're going to have 2 depression in the spring. Mustn't do anything, see? R: Uh huh. HMJr: Now all of A sudden the world is going to collapse if we don't do something - inflation, inflation, all this stuff to the press inflation - and then with Bernie Baruch feeding R: HMJr: Yes. and the Vice President's gone ga-gR on this thing. 311 -5- HMJr: What do you do if a man's price is frozen, and his labor will not answer the appeal? If labor won't? R: Yeah. R: HMJr: Well, then, it's always time to go. You see, these people are, Mrs. Rosenberg, they've suddenly gotten hysterical. R: HMJr: R: HMJr: R: HMJr: Yes. They're what I call "the budget group". Yes. What is the excitement all of a sudden? I mean they - there is a man by the name of Gilbert who's advising Yes. (Talks aside) Do you mind just stepping out one minute? Just a second. R: Yes. HMJr: There's a man named Gilbert who's advised Henderson - does his thinking on this. R: HMJr: Yes. Last fall he was terribly excited. Then about in the spring. " Mustn't do anything, see? November he said,"We're going to have 2. depression R: HMJr: Uh huh. Now all of a sudden the world is going to collapse if we don't do something - inflation, inflation, inflation - and then with Bernie Baruch feeding all this stuff to the press R: HMJr: Yes. .....and the Vice President's gone ga-gR on this thing. 312 -6-- R: I understand Eccles is along with him. HMJr: Eccles, and Professor Hanson. R: Yeah. HMJr: Well, I'll say it to you, every one of these people are theorists - none of them are practical fellowe - and I don't see anything right in the offing that a month or two's going to make any difference. R: of course, it would be awfully wise if he could wait until a certain time with any of this. HMJr: R: HMJr: R: You mean After the fall. Oh. Well, I think that's too long. Too long. HMJr: But I R: Well, why doesn't he let - I, from what I understood he said he's got to do something HMJr: R: Yeah. because if he doesn't, Congress will. Well, why not let Congress if they want to? I doubt if they'11 do anything. HMJr: Well, I - that I don't know. But this theory that the Smith group uses R: HMJr: R: HMJr: Yeah. that he's got to take the ball away from them - well, that's the bunk. No, I think if he'd let them have some of the responsibility. Sure, and I - just as a guess, I question whether they would take it. 313 -7R: I don't think they will. HMJr: I question whether they would take it. And by the time, in a few months, if he has to take action, the whole country will be with him because it will be necessary. HMJr: But - yes, if this thing - after all, it's like all of these things. If the housewife will get mad enough about this thing, she'll force the issue: but she's - up to now they're not angry enough. R: HMJr: No. They're - they haven't gotten really excited about it. And I don't think - you see, I differ from him I don't think he can get the legislation that he wants. R: HMJr: R: No, I don't think he will. He can't lick the farm bloc. He has put the enforced savings out already, you know. HMJr: What's that? R: The enforced savings he told them was out. HMJr: Yee, he told me that this morning. R: Yes. HMJr: He's given me - he's given me a green light, that he was for the volunteer, and I'm going up and he told Congressman Doughton this morning tomorrow with Reuther of C.I.O. and General Motors, before the committee, to show them what General Motors' employees and company's going to do. It's the most wonderful plan you ever saw. R: Well, I think that if you could get - the labor people will sit down with you and work out any 314 -8plan you want. HMJr: R: oh, yes. I told them that this morning. I said, "You have the Secretary of Labor in the Secretary of the Treasury." HMJr: R: HMJr: Well..... They'11 work out anything he wants them to do, they told me 80. Well, the Railroad Brotherhood - I can't do it this week - twenty-one asked me to come and sit with them this week. R: HMJr: Yes. And just today Thomas, of the Automobile Workers, said, "We've got the first fifty million; we're now going after the second fifty." If R: Good Lord! HMJr: And it's - as I told them, it's the one thing that labor's happy about. It would be a crime to take it away from them. R: It's one thing the whole country feels - that they have a chance of doing something. Civilian Defense is not giving them any satisfaction. HMJr: R: HMJr: R: HMJr: None. The only thing that's giving them satisfaction is to be able to buy bonds. Now, the other thing I was amazed to find MacLeish is for forced savings. He can't see any morale in the bond thing. That's what's wrong with our whole Can't see anything. So I've got to go to work on him now. 315 -9R: HMJr: R: Well, that is what's wrong with our whole morale building division. Yeah. They don't realize that the actual ability to do something to people is the greatest morale building you can give them. HMJr: I read a little thing by - I don't know who the man - his name is Weir. He's the chief copywriter for Lord and Thomas, in New York. R: HMJr: Yes. I never heard of him. And he wrote this, and I R: HMJr: sent for him. He's coming down tomorrow. Yes. He said, "I'm sick and tired of hearing about the bluebirds over the white cliffs of Dover." R: Yeah. HMJr: He says, "To hell with the bluebirds! Won't somebody write something about the vultures over Berchtesgaden. R: Oh, that's marvelous! HMJr: What? R: That's marvelous! HMJr: Ien't that wonderful? R: Well, I saw Albert Lasker HMJr: Yes. the other day, who just came back from R: across. HMJr: Yes. R: And I think that - this is Lord and Thomas, you know. He's head of Lord and Thomae. 316 - 10 HMJr: R: HMJr: R: He's the head of it, yes. And he said this, he said, "Goebbles has built his entire information - his whole propaganda on American publicity methods." Yes. He said, "In America"- in American advertising methods. HMJr: Yes. R: He said, "In America, we can seek out com- pletely what the public wants, and we try to reform them." HMJr: Yes. R: He had. a talk with Archie and Archie told him that he doesn't - he's not going to give the people the type of thing they want. He sent him the Crosley ratings to show him what the public wants - how you can sell them something. HMJr: R: HMJr: R: Yeah. He said he's - it's time the public be taught something. Well, this is no time for it. No. Well, look, I'm He's got some marvelous ideas. You ought to they '11 be glad to work with you any time, I know it. HMJr: Lord and Thomas? R: Yeah. HMJr: Well, this Mr. Weir is coming tomorrow. He's chief copywriter - I never met him - but he wrote something which struck the bell with me. R: It certainly does. 317 - 11 HMJr: R: And - well, I'm here. If you think I can be of any help. I don't know. I'11 call you right after the meeting tomorrow, and let you know what happened. HMJr: R: Will you do that? Yes. I'm sure he'll say quite a few things at the meeting, and I'll call you right up. HMJr: I'd love to know. R: All right. HMJr: Thank you. R: Good-bye. 318 April 15, 1942 When Anna Rosenberg, Judge Rosenman and I had lunch at the White House on Friday, April 10th, she tried to get me to change my position from "no ceiling" on wages to "a " ceiling" on wages, and I refused. She said that we must have a ceiling on wages. Now the fat is in the fire, but reading her telephone conversation with me today, you never would guess that last Friday she was for a ceiling on wages. 319 April 15, 1942 4:06 p.m. HMJr: Hello. Operator: Lindeay Warren. HMJr: Hello. Operator: Go ahead. Lindsay Warren: Hello. HMJr: Mr. Warren. W: How are you, Mr. Secretary? HMJr: How are you? W: HMJr: All right. Good. Mr. Warren, I need a little help. You may or may not know about our volunteer payroll deduction plan that we have in the various factories and 80 forth. W: Yes. HMJr: For War Bonds. W: Yes. HMJr: Well, we've just run into something out in Detroit with the Ford Company. We' re trying to get them to act as agents for us so that they can issue the bonds the same day the men want to take them out of their payroll. W: Yes. HMJr: But the Ford Company are evidently having some trouble. I think - I don't know whether they've got a cost plus contract, or something. I haven't got it quite straight myself, and I believe your department has said that a payroll deduction from a man is an incomplete payment, and therefore you don't pay the Ford Company the full amount. I don't know whether I've got 320 -2 the that story line. straight, but it's something along W: HMJr: Yes. Now we're just about ready to really go to town on this thing with the Companies and with the unions to get real deductions from the pay at the source, you see? W: HMJr: Yes. And there's evidently some ruling, I believe, that somebody's made in your department on this thing. W: HMJr: W: Yes. And I need some help. Do you suppose you could see Mr. Bell and Mr. Foley sometime tomorrow and go into this thing with them and see if you can't help us out on this? Mr. Secretary, for the very first time since September HMJr: Yes. I'm obliged to leave here tomorrow for two days; but suppose that I get them to talk with the general counsel HMJr: W: All right. at any time at their convenience tomorrow; and, of course, we'll act on it immediately. HMJr: Could you do that? W: Yes. Of course, I will. HMJr: Well, that would be wonderful. Because this W: thing - it's really got me worried. Yes. Well, I don't recall the exact thing right now that you mention. -3HMJr: W: HMJr: W: HMJr: W: HMJr: 321 Well, will you tell your general counsel? Yes. You couldn't see them still today? I'm leaving right now, although I could - I could stay here. Well, I don't want - you're driving, are you? Yes. Well, I don't want to inconvenience you. What's your general counsel's name. W: HMJr: W: HMJr: McFarland. Well I'll BO to see him right now. Tell him, and will you tell him that Bell and Foley will contact him. W: Yes. HMJr: And that - if there's some way - even 1f they've W: Yeah. HMJr: got to bend the law a little bit. So that we can get this thing. And the President's terribly interested in this plan, and I've been talking with him about it again this morning. W: Yes. HMJr: And where we're blocked now is, the men want it, and the companies want it, but we can't get the bonds to them quick enough, you see, unless the companies will act as issuing agents. W: Yes. HMJr: And some ruling that you've made seems to block us on that front. 322 -4W: HMJr: Yes. Well, I'11 look into it right now, and I'll go to see Mr. McFarland right now. Well, that's awfully nice, and sometime I hope to see you. W: Thank you. HMJr: Thank you. W: Thank you. 323 April 15, 1942 4:21 p.m. HMJr: Hello. Operator: Go ahead. HMJr: Hello. Frank Iseby: Yes, sir. HMJr: Frank. I: Yes, sir. HMJr: I want to let you know that I personally called up the Comptroller General myself. I: HMJr: Gosh, that's fine. And he has left instructions, while he had to leave town tonight, with the General Counsel to see our boys tomorrow, and Bell and Foley themselves are going to go over there tomorrow. I: Fine. HMJr: And we ought to have that thing licked tomorrow. I: Gosh! HMJr: Now, are you coming down Friday? I: Yeah. HMJr: You are? I: Yes. HMJr: Well, I'm going to try to lick the t before you come. I: Golly, if you do that, that' 11 be the biggest job that's been accomplished. 324 -2HMJr: Well, that's I: I'm right over here in the Federal Reserve HMJr: Well I: I just came over here to see the operations, to see what their capacity was. Well, the Comptroller General said he never heard of the thing before. HMJr: Bank right now. I: Oh, gee. HMJr: So I: Fords' will be very grateful to you. HMJr: Who? I: Ford. HMJr: Well I: Because it's been a headache for them. HMJr: But you are coming down Friday. I: Yes. HMJr: And don't be afraid to yell your head off about whatever your Post Office troubles are. I: Well, by golly, all right. All right. We'11 get those two licked, and I'm going to tell you we'll double them. HMJr: All right. Well, don't worry about the just keep shouting until you get it. I: Well, you're just grand. HMJr: All right. I: You're grand. 325 -3HMJr: All right. I: Thanks very much. HMJr: Okay. I: Bye-bye. HMJr: Thank you. TREASURY DEPARTMENT 326 Office of the Secretary Washington APR 15 1942 TREASURY DEPARTMENT ORDER NO. 45. The name of the Defense Savings Staff, established by Treasury Department Order No. 39, dated March 19, 1941, is hereby changed to War Savings Staff, effective immediately. (Signed) 1. The Secretary of the Treasury. HNG/mff n. m.c. Capies ashamp 327 April 15, 1942. Mr. Dan Bell Secretary Morgenthau Please send out 1,000 postal cards to each of the 12 Federal Reserve Districts - return postal cards, 1,000 to each District. Ask the people how long they had to wait to get their Defense Bonds and any other questions you want on them. I'd like this put in the mail not later than Friday night. Please show me a postal card with the questionnaire on it before it goes out. There ought not to be any trouble in arranging to have it printed and in the mail Friday night; 1,000 return postal cards to all the Federal Reserve Districts. Let me know just how long it does take. Like so many of these things, it will get us beyond the question of argument. I want the postal cards sent back to us here in Washington. If possible, these cards should go only to people who have bought "K" Bonds and those who bought $25.00 denominations. 4/17- Mr Bill reported Done"- 327 April 15, 1942. Mr. Dan Bell Secretary Morgenthau Please send out 1,000 postal cards to each of the 12 Federal Reserve Districts - return postal cards, 1,000 to each District. Ask the people how long they had to wait to get their Defense Bonds and any other questions you want on them. I'd like this put in the mail not later than Friday night. Please show me a postal card with the questionnaire on it before it goes out. There ought not to be any trouble in arranging to have it printed and in the mail Friday night; 1,000 return postal cards to all the Federal Reserve Districts. Let me know just how long it does take. Like so many of these things, it will get us beyond the question of argument. I want the postal cards sent back to us here in Washington. If possible, these cards should go only to people who have bought "E" Bonds and those who bought $25.00 denominations. 4/17- Mr. 328 April 15, 1942 Mr. Kuhn and Ted Cemble Secretary Morgenthau Please check up and let me know this afternoon if there is any literature, advertisements or posters which are in the making, as I want to make sure that they are in tune with my new objectives. If Kuhn, Gamble, Mahan and Vincent Callahan will get together, I'd like to go over what they have in the making. - See muting 4/17/42-11:00 A.M. 329 April 15, 1942 My dear Mr. Postmaster Generals I have your letter of April 8th, and - designating Secret Service Agent William D. Comlay to cooperate with a Post Office Inspector in investigating the matter of effors in the contents of books of defense savings stamps of the ten cent and twenty- five cent denominations. Mr. Camley will be available at once for this assignment. Sincerely, (Signed) H. Rorgouther Secretary of the Treasury. The Honorable, The Postmater General. Photo jor n.m.c. fill to Thompson mineja By Messenger Brown 4:45 TREASURY DEPARTMENT office of the Secretary Secret Service Division MEMORANDUM April 11, 1942 To: Mr. W. N. Thompson From: Chief, U. 3. Secret Service There is returned herewith a letter addressed to the Secretary of the Treasury by the Postmaster General, dated April 8, 1942, concerning errors in the contents of defense savings stamp books manufactured by the Bureau of Engraving & Printing. In accordance with the request contained therein, our Agent William D. Cawley has been designated to cooperate with a post office inspector in conducting an investigation of these errors. Enclosure DEP . OFFICE Office of the Justmaster General Washington. D.C. S STATES SECURITY April 8, 1942. Thereform The Honorable, The Secretary of the Treasury. My dear Mr. Secretary: The Post Office Department has received several complaints from costmasters and purchasers of defonac savings stamp books of the ten cents and twenty-five cents denominations, manufactured by the Bureau of Engraving and Printing, concerning errors in the contents of the books and banded packages thereof. The facts show that some books and packages are deficient of content while others have an overage. The practice has been to refer complaints of this kind to the Bureau of Engreving and Printing. That Bureau has not accepted responsibility for errors of the cheracter mentioned on the ground that its system of preparing the books and the absence of overages tend to preclude errors. There appears to be no fund from which the Treasury Department can make good losses to purchasers, and as a result it has not been possible to adjust these complaints. Since unadjusted complaints reflect on the Postal Service, I ha ve directed the Chief Post Office Inspector to undertake an investigation of the matter. It will be appreciated, therefore, if you will designate a representative of your Department to cooperate with a post of- fice inspector in making a joint investigation. It will be further appreciated if you will advise me promptly of the name of the person SO designated. Very truly yours, drown Owana Postmaster General. CE DEPARTMENT Office of the Justinaster General Washington, D.C. S STATES SECURITY April 8, 1942. Thereporn The Honorable, The Secretary of the Treasury. My dear Mr. Secretary: The Post Office Department has received severel complaints from postmasters and purchasers of defense savings stomp books of the ten cents and twenty-five cents denominations, manufactured by the Bureau of Engraving and Printing, concerning errors in the contents of the books and banded packages thereof. The facts show that some books and packages are deficient of content while others have an overage. The practice has been to refer complaints of this kind to the Bureau of Engreving and Printing. That Bureau has not accepted responsibility for errors of the character mentioned on the ground that its system of preparing the books and the absence of overages tend to preclude errors. There appears to be no fund from which the Treasury Department can make good losses to purchasers, and as a result it has not been possible to adjust these complaints. 3ince unadjusted complaints reflect on the Postal Service, I have directed the Chief Post Office Inspector to undertake an investigation of the matter. It will be appreciated, therefore, if you will designate a representative of your Department to cooperate with a post of- fice inspector in making a joint investigation. It will be further appreciated if you will advise me promptly of the name of the person so designated. Very truly yours, From aware Postmaster General. 332 Summary 333 Summary of Operation of Payroll Savings Plans in Firms With Defense Supply Contracts of $2 Millions or More Part I. Classification of Total Contracts Total contracts in 565 firms $26.9 billions Contracts in 450 firms with payroll savings plans in operation $25.7 billions Percent 95.5 Part II. Data for Firms Submitting Complete Reports Number of firms submitting complete reports Number of employees in these firms Number of employees participating in payroll savings plan Percent of employees participating 1 Total payroll of firms submitting complete reports 1 Estimated payroll of employees participating 1/. Amount deducted from pay 1/ Percent deducted from pay 1 Amount deducted per employee participating 1/ Office of the Secretary of the Treasury, Division of Research and Statistics. 1 Latest reports, many of which are for February. 250 2,285,169 1,062,068 46 $443,390,903 $205,733,379 11,338,598 5.5 $10.68 April 15, 1942 334 Company with plans 335 Operation of Payroll Savings Plans in Firms with Defense Supply Contracts of $2 millions or more Amount of defense E1 Segundo, Calif Consolidated Aircraft Corp San Diego, Calif Ford Motor Co., Detroit, Mich Glenn L. Martin Co., Baltimore, Md Boeing Aircraft Co., Seattle, Wash Newport News Shipbuilding & Drydock Co. Newport News. Va. New York Shipbuilding Corp. Camden, N.J. nited States Steel Corp. New York, N.Y. I.duPont de Nemours Co., Wilmington, Del. Lockheed Aircraft Corp., Burbank, Calif Chrysler Corp. Detroit, Mich General Electric Co. Schenectady, N.Y North American Aviation, Inc. Inglewood, Calif Goodyear Tire & Rubber Co., Akron, Ohio Sperry Corporation, Brooklyn, N.Y Bendix Aviation Corp. Bendix, N.J Seattle-Tacoma Shipbuilding Co Seattle, Wash Sun 011 Company, Philadelphia, Pa California Shipbuilding Corp Los Angeles, Calif Baldwin Locomotive Works, Burnham, Pa Western Cartridge Co., E. Alton, Ill Permanente Metals Corp. San Jose, Calif. ings plan Number of employees Percentage Percentage of of salary employees participating $2,368.0 1,808.1 1,309.9 1,005.7 Feb. Feb. 837.5 None 820.5 750.8 706.3 681.8 Feb. Jan. Dec. Feb. 40,000 98,758 30,000 32,750 636.5 512.3 506.8 492.4 Feb. Mar. Feb. Feb. 23,963 20,506 297,957 62,410 484.9 478.8 427.0 None Feb. Feb. 363.8 300.0 None None 296.8 293.7 Feb. Feb. 25,787 41,198 48 293.6 251.7 Mar. Mar. 9,702 18,006 10 46 238.5 218.7 214.7 212.5 Feb. 21,910 16 Feb. 220,234 Mar. employees participating Average deduction per employee participating 6 * 194,545 35,900 24 7 62 4 * 66 5 39 6 56 6 67 6 45 4 34 6 * 46,960 127,050 25,000 1,698 13.11 10.05 * * 8.29 11.88 10.50 15.72 7.23 10.75 * 78 5 84 5 * * # * 6 56 5 9 5 11.23 10.93 12.64 11.45 18.98 11.45 2.00 1 * * 4 4 (continued) Office of the Secretary of the Treasury, Division of Research and Statistics. ( According to reports of War Production Board; data are for March 1, 1942 for the first 95 companies, and as of January 1, 1942 for the remaining companies. Data not available. $13.26 * None Jan. deducted for 29 None . General Motors Corp. Detroit, Mich Curtiss-Wright Corp. Buffalo, N. Y Bethlehem Steel Co., Bethlehem, Pa United Aircraft Corp., E. Hartford, Conn. Douglas Aircraft Co., Inc. contracts 1 (In millions of dollars) latest report on payroll say- * Name and address of company Month of . 9.23 336 Operation of Payroll Savings Plans in Firms with Defense Supply Contracts of $2 millions or more (Continued - 2) Brewster Aeronautical Corp Long Island City, N. Y Bath Iron Works Corp. Bath, Maine Consolidated Steel Corp Los Angeles, Calif Aviation Mfg. Corp. Williamsport, Pa American Car & Foundry Co., Milton, Pa American Woolen Co. Skowhegan, Me Alabama Drydock & Shipbuilding Co Mobile, Ala Bell Aircraft Corp. Buffalo, N. Y Electric Boat Co., Bayonne, N.J Standard 011 Co., of N.J. Bayonne, N.J Northern Pump Co., Fridley, Minn South Portland Shipbuilding Corp South Portland, Me Westinghouse Electric & Mfg. Co East Pittsburgh, Pa Cramp Shipbuilding Co., Philadelphia Pa Studebaker Corp South Bend, Ind Ingalls Shipbuilding Co. Birmingham, Ala International Harvester Co., Chicago, Ill Continental Motors Mich Packard Co. Corp. Detroit, Detroit, Motor Car Mich Dravo Corp., Cleveland, Ohio Beech Aircraft Corp. Wichita, Kansas of employees participating 204.0 195.3 191.1 190.0 180.9 Mar. 5,354 44 178.2 175.3 Feb. None 11,374 48 175.2 None 170.4 169.9 158.5 Feb. Mar. 157.7 None 133.8 133.2 129.5 128.5 None None Feb. Mar. 15,175 6,100 125.5 Feb. 3,700 123.5 121.8 117.1 114.4 Mar. Mar. 1,954 6,374 113.4 109.2 106.9 102.6 94.0 None None Feb. Mar. 12,500 28,214 participating 48 per employee participating $ 6.83 4 6.60 4 8.66 7 * 10.11 5 * * 2,430 * * 51 None 789 12.30 6 * 6.14 8 5 * * # . * * * 51 6.58 28.05 3 85 9 . 48 8.02 4 60 None Mar. Mar. employees Average deduction * None Jan. Percentage of salary deducted for 18.86 8 * Grumman Aircraft Eng. Corp. Bethpage, N.Y White Motor Co., Cleveland, Ohio employees Percentage 3,210 * * 4,900 19,038 None None * Oregon Shipbuilding Corp., Portland, Ore Number of * Kaiser Co., Inc. American Locomotive Co., New York, N.Y contracts 1 (In millions of dollars) latest report on payroll savings plan * Name and address of company Month of 3 Amount of defense * 41 32.34 16.57 12 71 6 * (continued) Office of the Secretary of the Treasury, Division of Research and Statistics. April 15, 1942. (b) According to 95 companies, and . as of January 1, 1942 for the remaining companies. Data not available. 337 Operation of Payroll Savings Plans in Firms with Defense Supply Contracts of $2 millions or more (Continued - 3) Amount of defense Name and address of company contracts 1/ (In millions of dollars) Colt's Patent Fire Arms Mfg. Co. Hartford, Conn Houston Shipbuilding Corp. Houston, Tex Tampa Shipbuilding Co., Inc. Tampa, Fla Fairbanks, Morse & Co., Beloit, N. Y Hercules Powder Co. Hopewell, Va Los Angeles Shipbuilding & Drydock Corp latest report on payroll savings plan Mar. None Jan. Mar. Number of employees Percentage of employees participating 13,388 Percentage of salary deducted for employees participating 4,600 17 165 30 . * . * * 39,827 Delta Shipbuilding Co., New Orleans, La Auto Ordnance Corp. Bridgeport, Conn Diamond T Motor Car Co., Chicago, Ill 79.6 72.9 72.9 Mar. Mar. Mar. 7,200 1,444 1,745 34 6 57 5 72.7 Mar. 5,736 20 71.9 69.5 69.2 69.0 68.6 None B. F. Goodrich Co., Akron, Ohio Allis-Chalmers Mfg. Co., West Allis, Wisc. Firestone Tire & Rubber Co. Akron, Ohio High Standard Mfg. Co., New Haven, Conn Crucible Steel Co. of America, New York, N.Y Federal Cartridge Corp Williamette Iron & Steel Corp Portland, Ore 3,780 9.57 8.20 5 Feb. Phoenix Securities Corp . 6 None Ryan Aeronautical Co., San Diego, Calif American Tel. & Tel. Co., New York, N. Pullman, Inc., Butler, Pa Kelsey-Hayes Wheel Co. Detroit, Mich $ 3.64 * 83.4 80.7 80.6 Savage Arms Corp. Utica, New York participating 2 Gulf Shipbuilding Corp., Chickasaw, Ala United States Rubber Co., Atlanta, Ga Western Pipe & Steel Co., San Francisco, Calif per employee 9 None Jan. Average deduction . 86.2 San Pedro, Calif ( 91.9 89.9 88.1 86.8 Month of * * 45 6.73 4 90 9.54 11.68 9.14 6 22.40 11 * Mar. Feb. Feb. Mar. 1,879 18,588 16,053 7,230 Jan. Dec. 2,389 23,800 * 12 8 29 52 Jan. Mar. 24,000 3,280 22 3 12 10 59.6 57.5 Mar. 24,172 55 4 None 56.3 None * 82 3 25 4 * 8.54 5 18.16 8 67.6 67.4 64.3 63.0 62.7 None 17.83 15.28 9 20 6.45 7.85 * 5.98 22.43 7.09 (continued) Office of the Secretary of the Treasury, Division of Research and Statistics. April 15, 1942. (t According to reports of War Production Board; data are for March 1, 1942 for the first 95 companies, and as of January 1, 1942 for the remaining companies. Data not available. 338 Operation of Payroll Savings Plans in Firms with Defense Supply Contracts of $2 millions or more (Continued - 4) Amount of defense Empire Securities, Inc. Anaconda Copper Mining Co. Butte, Mont A. 0. Smith Corp. Milwaukee, Wisc Nash-Kelvinator Corp. Detroit, Mich Standard 011 Co. of California, San Francisco, Calif Northrup Aircraft, Inc., Hawthorne, Calif. Federal Machine &Welder Co., Inc Warren, Ohio Mack Trucks, Inc Jacobs Aircraft Engine Co. Pottstown, Pa Lima Locomotive Works, Inc., Lima, Ohio Kennecott Copper Corp., New York, N.Y Lake Washington Ship Yards, Houghton, Wash. York Safe & Lock Co., York, Pa Pressed Steel Car Co., Inc., Pittsburgh, Pa Caterpillar Tractor Co., Peoria, Ill Triumph Explosives, Inc., Elkton, Md International Business Machines Corp New York, N.Y Arma Corp., Brooklyn, N. Atlas Powder Co., Wilmington, Del Fairchild Engine & Airplane Corp Farmingdale, N.1 Associated Shipbuilders, Seattle, Wash Bausch & Lamb Optical Co., Rochester, N.Y. Eastman Kodak Co. Rochester, N.Y General Engineering & Dry Dock Co Alameda, Calif American Brass Co. Waterbury, Conn Manitowoc Shipbuilding Co. Manitowoc, Wisc contracts 1 (In millions of dollars) 56.2 52.5 51.0 47.9 latest report on payroll savings plan Number of employees None None Dec. Percentage of employees participating Percentage of salary deducted for employees participating $ * . 12 Jan. 34 2 47.6 Feb. 18,875 16 6 46.6 Feb. 6,850 15 9 46.5 45.9 45.7 Mar. 300 91 45.6 45.5 45.2 45.1 None None Mar. Feb. 41.7 None 41.6 41.0 Feb. None 30.36 4.46 11.92 14.63 11.45 5 * 1,364 73 * 3,500 3,655 13.66 6 * * * * * 30.27 12.49 14 11 75 6 * 15,552 36 None 9.92 6 * 33 4 Feb. 5,084 2,600 100 10 39.0 Mar. 4,140 31 34.8 34.3 32.9 Jan. Jan. 4,000 1,360 32.8 None 32.3 32.0 Feb. Mar. 2,000 17,900 16 30.6 Mar. 3,676 44 Jan. participating # . 12 40.8 39.5 per employee * 6,500 2,103 Mar. Average deduction None 9.74 20.58 7.53 5 * * Name and address of company Month of * * # (continued) Office of the Secretary of the Treasury, Division of Research and Statistics, 75 30.57 7.70 11 4 12.14 7 April 15, 1942. 1/ According to reports of War Production Board; data are for March 1, 1942 for the first 95 companies, and as of January 1, 1942 for the remaining companies. Data not available, 339 Operation of Payroll Savings Plans in Firms with Defense Supply Contracts of $2 millions or more (Continued - 5) Amount of defense Name and address of company contracts 1 (In millions Month of latest report on Number of Percentage of employees Percentage of salary deducted for payroll sav- employees participa- Mar. 9,809 74 General Cable Corp. Bayonne, N.J 30.4 30.3 30.4 29.1 28.9 Mar. Feb. 7,226 5,650 J. P. Stevens & Co., Lowell, Mass R. C. A. Mfg. Co., Inc, Camden, N.J 28.8 27.4 Jan. Dec. 466 12,464 Jan. 500 American Shipbuilding Co., Cleveland, O. 26.8 25.5 24.7 None Fairchild Aviation Corp. Jamaica, N.Y 24.1 23.7 Feb. Mar. 1,005 1,920 Heil Co., Milwaukee, Wisc Richmond Shipbuilding Corp Richmond, Cal. Pusey & Jones Corp. Wilmington, Del Buffalo Arms Corp., Buffalo, N.Y Budd Wheel Co., Detroit, Mich 23.5 23.0 22.6 22.5 21.6 Feb. Feb. 2,100 9,900 Jan. Dec. Mar. 2,447 3,000 3,777 79 6 Miehle Printing Press & Mfg. Co Chicago, Ill Finger Mfg. Co., Elizabeth, N.J National Pneumatic Co., Inc. Rahway, N.J Revere Copper & Brass, Inc. Bristol, Conn. 21.3 21.1 20.9 20.4 Mar. 2,530 79 7 Mar. 9,468 90 Defoe Boat & Motor Works, Bay City, Mich. Stewart-Warner Corp., Chicago, Ill Cleveland Tractor Co., Cleveland, Ohio Mesta Machine Co., Pittsburgh, Pa Botany Worsted Mills, Passaic, N.J 20.4 20.3 19.6 19.1 19.0 Feb. 1,926 50 Jan. Jan. 4,000 5,987 94 Mergenthaler Linotype Corp. Brooklyn N.Y. 18.9 18.9 Mar. 2,667 62 American Oerlikon Gazda Corp Providence, R. Proctor & Gamble Defense Corp Humboldt, Tenn Norris Stamping & Mfg. Co Los Angeles, Calif Lansdowne Steel & Iron Co., Gadsden, Ala None None ting employees participating per employee participating $ 8.04 4 * * . 20.05 6.25 13 4 40 3 * * 70 3 * 5.16 * None # * None None * 30.76 16.70 20 29 39 9 99 4.71 7.50 3 16 5 * * 13.09 15.67 * * . Scovill Mfg. Co. Waterbury, Conn Day & Zimmerman, Inc. Burlington, Iowa Mack Mfg. Co. Allentown, Pa Emerson Electric Mfg. Co., St. Louis, Mo. ings plan * of dollars) Average deduction # 7.60 4 5.13 3 . None None * * * None (continued) Office of the Secretary of the Treasury, Division of Research and Statistics. . * * 6.40 5 11.93 6 * April 15, 1942. 1/ According to reports of War Production Board; data are for March 1, 1942 for the first 95 companies, and as of January 1, 1942 for the remaining companies. Data not available. 340 Operation of Payroll Savings Plans in Firms with Defense Supply Contracts of $2 millions or more (Continued - 6) Amount of defense Name and address of company Worthington Pump & Machinery Corp Harrison, N.J contracts 1/ (In millions of dollars) Month of latest report on payroll savings plan Number of employees Percentage of employees participating 18.5 Jan. 7,544 18.3 18.2 Mar. Feb. 1,065 4,122 Mar. 255 Jack & Heintz, Inc., Bedford, Ohio 18.2 18.2 18.0 17.6 16.9 Jan. 550 Buda Co., Harvey, Ill 16.6 Feb. 2,141 16.6 16.0 15.9 Feb. Mar. Mar. 15,699 6,316 1,325 70 15.5 Feb. 1,240 31 15.3 Mar. 2,010 85 14.8 None Hudson Motor Car Co. Detroit, Mich Commercial Iron Works, Portland, Ore Standard Steel Works, Kansas City, Mo Chase Brass & Copper Co. Inc. Euclid, Federal Motor Truck Co., Detroit, Mich 14.8 13.8 13.8 13.8 13.4 Feb. Mar. Mar. Pacific Mills, Boston, Mass 13.3 13.1 12.9 12.7 12.7 None Basalt Rock Co., Inc. Napa, Calif William Whitman Co. Inc. Boston, Mass Square D Co., Elmhurst, N.Y Phelps Dodge Copper Products, Corp New York, N.Y Bridgeport Brass Co., Bridgeport, Conn Goss Printing Press Co., Chicago, Ill Busch Sulzer Bros. Diesel Engine Co St. Louis, Mo Continental Roll & Steel Foundry Co East Chicago, Ind Savannah Machine & Foundry Co Savannah, Ga Motor Wheel Corp., Lansing, Mich Cesana Aircraft Co., Wichita, Kansas Harrisburg Steel Corp Harrisburg, Pa American Finishing Co., Memphis, Tenn 39 52 h 72 28 54 12.00 2 # 89 9.39 5 38 4.92 10.02 21.34 3 70 * 5 7 16.27 7 26.50 g * * 12,011 22 997 18 683 None Mar. Feb. Dec. 6.86 4 * None Feb. 7.10 6.35 5 70 None Feb. participating 19.65 22.01 11.28 g 10 g 5 * * Koppers Co., Baltimore, Md participating per employee * Binghamton, N.Y Electric Storage Battery Co. Cleveland, O. employees Average deduction . Link Aviation Devices, Inc Percentage of salary deducted for 722 2,852 3,230 2,250 82 4 . . 26 63 7.29 * 9.42 17.21 4 10 * None * (continued) Office of the Secretary of the Treasury, Division of Research and Statistics. April 15, 1942. 1/ According to reports of War Production Board: data are for March 1, 1942 for the first 95 companies, and as of January 1, 1942 for the remaining companies. Data not available. 340 Operation of Payroll Savings Plans in Firms with Defense Supply Contracts of $2 millions or more (Continued - 6) Amount of defense Name and address of company Worthington Pump & Machinery Corp. Harrison, N.J contracts 1, (In millions of dollars) Month of latest report on payroll savings plan Number of employees Percentage of employees participating 18.5 Jan. 7,544 18.3 18.2 Mar. Feb. 1,065 4,122 Mar. 255 Jack & Heintz, Inc., Bedford, Ohio 18.2 18.2 18.0 17.6 16.9 Jan. 550 Buda Co., Harvey, Ill 16.6 Feb. 2,141 Bridgeport Brass Co., Bridgeport, Conn Goss Printing Press Co., Chicago, Ill 16.6 16.0 15.9 Feb. Mar. Mar. 15,699 6,316 1,325 70 Busch Sulzer Bros. Diesel Engine Co St. Louis, Mo Continental Roll & Steel Foundry Co East Chicago, Ind 15.5 Feb. 1,240 31 15.3 Mar. 2,010 85 14.8 None * * Hudson Motor Car Co., Detroit, Mich Commercial Iron Works, Portland, Ore Standard Steel Works, Kansas City, Mo Chase Brass & Copper Co., Inc. Euclid, Federal Motor Truck Co., Detroit, Mich 14.8 13.8 13.8 13.8 13.4 Feb. Mar. Mar. 12,011 22 997 683 18 Pacific Mills, Boston, Mass 13.3 13.1 12.9 12.7 12.7 None Koppers Co., Baltimore, Md Basalt Rock Co., Inc. Napa, Calif William Whitman Co., Inc. Boston, Mass Square D Co., Elmhurst, N.Y Phelps Dodge Copper Products, Corp New York, N.Y. Savannah Machine & Foundry Co Savannah, Ga Motor Wheel Corp., Lansing, Mich Cessna Aircraft Co., Wichita, Kansas Harrisburg Steel Corp., Harrisburg, Pa American Finishing Co., Memphis, Tenn participating # 52 4 72 4 6.86 # 28 None Mar. Feb. Dec. 7.10 6.35 5 70 54 12.00 2 None Feb. participating 39 None Feb. per employee * Binghamton, N.Y Electric Storage Battery Co. Cleveland, O. employees Average deduction # Link Aviation Devices, Inc Percentage of salary deducted for 89 38 9.39 5 4.92 10.02 21.34 3 70 5 5 * 722 82 * * 7 16.27 7 26.50 8 . * 19.65 22.01 11.28 8 10 8 # 7.29 4 * # 2,852 3,230 2,250 None 26 63 9.42 17.21 4 10 * (continued) Office of the Secretary of the Treasury, Division of Research and Statistics. April 15, 1942. 1, According to reports of War Production Board: data are for March 1, 1942 for the first 95 companies, and as of January 1, 1942 for the remaining companies. Data not available, 341 Operation of Payroll Savings Plans in Firms with Defense Supply Contracts of $2 millions or more (Continued - 7) Amount of defense Name and address of company contracts 1 (In millions of dollars) Month of latest report on payroll savings plan Number of employees Percentage of employees participating Percentage of salary deducted for employees participating National Cash Register Co. Dayton, O 12.6 12.6 Arestone Steel Products Co., Akron, O 12.4 12.3 Jan. 11.9 11.8 Feb. Mar. 1,950 69 5 550 84 6 11.7 11.5 Jan. Mar. 1,160 11.4 11.4 11.3 None None Jan. 5,000 10.9 Jan. 1,709 10.5 10.1 None Edward G. Budd Mfg. Co. Philadelphia, Pa Minneapolis, Honeywell Regulator Co. Minneapolis, Minn Keuffel and Esser, Hoboken, N.J Hayes Industries, Inc. Jackson, Mich Steel Products Engineering Co. Springfield, O Borg-Warner Corp., Bellward, Ill Guiberson Diesel Engine Co., Chicago Ill. Cooper-Bessemer Corp. Grove City, Pa Gera Mills, Garfield, N.J Gilbert & Barker Mfg. Co Springfield, Mass Wellman Engineering Co. Cleveland, O Rheem Mfg. Co., Inc. Richmond, Cal Duplex Printing Press Co., Battle Creek, Mich Air Associates, Inc., Bendix, N.J Republic Steel Corp., Birmingham, Ala Gibbs Gas Engine Co. of Florida, Jacksonville, Fla National Stamping Co., Detroit, Mich American Type Founders, Inc Fitchburg, Mass Hayward Schuster Co., Inc East Douglas, Mass Goodyear Aircraft Corporation, Akron, O. Pacific Bridge Co., Alameda, Cal Edo Aircraft Corp., College Point, N.Y Jan. Mar. 3,869 8,751 2,547 51 per employee participating $14.49 7.20 7 99 3 17 8 13.85 None 668 * * 39 * * 8 * 2,400 10.0 Mar. Mar. 1,184 1,224 9.7 None 9.6 9.5 Mar. 9.2 Mar. 350 12 9.1 8.9 8.9 8.9 Mar. Jan. 1,777 1,815 25 1,196 * . 9.36 4 * 63 * 8.00 3 * * 12.49 9.16 7 62 5 g . * 16.86 10 * None Mar. * * None 8.22 12.68 * . Jan. 10.1 Average deduction 1,296 17.56 9 6.63 5 * * * 49 5 10.53 (continued) Office of the Secretary of the Treasury, Division of Research and Statistics, April 15, 1942. 1, According to reports of War Production Board; data are for March 1, 1942 for the first 95 companies, and as of January 1, 1942 for the remaining companies. Data not available. 342 Operation of Payroll Savings Plans in Firms with Defense Supply Contracts of $2 millions or more (Continued - 8) Amount of defense Name and address of company contracts 1, (In millions of dollars) Month of latest report on payroll savings plan Number of employees Percentage of employees participating Percentage of salary deducted for employees participating Uxbridge Worsted Co., Inc. Uxbridge,Mass General Railway Signal Co. Rochester,N.Y. Buckeye Traction Ditcher Co., Findlay, Electric Auto-Lite Co., La Crosse, Wisc R. Hoe & Co., Inc., New York, N. 8.8 8.8 8.7 8.6 8.6 Mar. Feb. Feb. None National Fireworks, Inc., Elkton, Md Higgins Industries, Inc. New Orleans, La. 8.4 8.3 Jan. Mar. Mar. Mar. 403 93 Mullins Mfg. Co., Warren, O 8.2 8.1 2,400 22 Philco Corp. Philadelphia, Pa Aircraft Radio Corp. Boonton, N.J Texas Steel Mfg. Co., Fort Worth, Tex Fruehauf Trailer Co., Detroit, Mich 8.0 7.8 7.7 7.6 Dec. 6,277 Feb. Jan. 332 14 331 59 7.6 Jan. 721 83 7.5 7.5 Feb. 475 75 None Cincinnati, 0 McCord Radiator Mfg. Co., Detroit, Mich Danly Machine Specialties, Inc Cicero, Ill 7.5 7.4 Mar. Mar. 1,230 1,463 65 7.3 Feb. 1,543 47 International Shoe Co. Marshall, Mo National Supply Co. Pittsburgh, Pa Peerless Woolen Mills, Rossville, Ga Elgin National Watch Co., Elgin, Ill New Britain Mch. Co., New Britain, Conn 7.3 7.2 7.2 7.1 7.1 7.1 Feb. 4,046 2,953 1,747 4,395 3,301 36 4 83 4 88 4 96 * Geo. Lawley & Sons, Corp., Neponset, Mass General Steel Castings Corp. Eddystone, Pa 7.1 7.1 7.1 Mar. Feb. 6,344 20,321 96 7.1 Mar. 990 83 United Engineering & Foundry Co Alameda, Cal Aetna Standard Engineering Co Ellwood City, Pa Yoder Co., Cleveland, O Sigmund Eisner Co. Freehold, N.J R.K. Le Blond Machine Tool Co. Hoover Co., North Canton, O Can New N.Y American Consolidated Co.,Tool York, Corp Machine Rochester, N.Y (continued) None * Mar. Feb. Jan. Mar. per employee participating . 3,182 60 770 58 12,026 33 600 * 3,226 14 None Average deduction * 8.24 4.22 4.46 5 3 3 * # 18.34 8 8.19 10.51 5 AND 6 . * * * 6.57 7.67 5 4 5.96 2 14.37 7 * 32 61 15.61 8 3.61 6.82 3.82 12.81 6 None * None * Office of the Secretary of the Treasury, Division of Research and Statistics. 15.58 6.88 6 4 * * # 11.15 6 * 18.12 8 April 15, 1942. 1/ According to reports of War Production Board: data are for March 1, 1942 for the first 95 companies, and as of January 1, 1942 for the remaining companies. Data not available. 343 Operation of Payroll Savings Plans in Firms with Defense Supply Contracts of $2 millions or more (Continued - 9) Amount of defense contracts 1 (In millions of dollars) Herring Hall-Marvin Safe Co Hamilton, o Easy Washing Machine Corp. Syracuse, N. Pump Engineering Service Corp Cleveland, 0 Wyandotte Worsted Co., Waterville, Me International Nickel Co., Inc Huntington, West Va Crosley Corp., Cincinnati, 0 Federal Screw Works, Chelsea, Mich Kinner Motors, Inc. Glendale, Cal Teletype Corp., Chicago, Ill Armstrong Cork Co., Lancaster, Pa Norwalk Lock Co., Norwalk, Conn latest report on payroll savings plan 33 6.9 6.9 Mar. Feb. 923 22 586 66 6.8 6.8 6.7 6.7 6.7 Feb. 2,575 76 Mar. Mar. 6.4 6.4 Kearney & Trecker Corp., West Allis, Wisc. Campbell Wyant & Cannon Foundry Co Muskegan, Mich Cincinnati Milling Machine, Cincinnati O Link-Belt Co., Chicago, Ill Shell 011 Co., New York, N.Y Walter & N.J. Hurd Lock Mfg. Kidde, Co., Co., Adrian, Inc. Bloomfield, Mich Tecumseh Products Tecumseh, Mich & GeneralShip Engine Co., Works, East Boston, Mass (continued) deduction employees per employee participating None Mar. Mar. Feb. 980 260 54 5 6 650 13 5,001 20 8,147 67 6.3 Feb. 4,000 6.2 6.2 6.1 6.1 None 5.9 None 12.00 21.43 7 5.92 4 * 25.45 16.96 13 7 11.82 5 40 49 74 7.71 12.70 3 4 * * 6,550 7,557 23,709 * 10.51 9.95 51 32 None Feb. Mar. 6.23 4 11 # 6.3 5.9 5.9 5.9 18.18 4.06 8 77 10,583 1,547 4,100 Mar. 2.21 1 * Jan. Jan. Mar. Dec. Feb. participating * None Mar. Average salary None Geo. Borg Corp. Chicago, Ill Hopkins, Minn ting 1,394 None Minneapolis Moline Power Implement Co. deducted for participa* 6.4 6.4 Joshua Hendy Iron Works, Sunnyvale, Cal employees 530 Otis Elevator, Buffalo, N.Y. United Shee Machinery Corp. Beverly, Mass. Percentage of of Feb. Feb. None Hamilton Watch Co., Lancaster, Pa employees Percentage 7.1 6.9 6.6 6.6 6.5 6.5 6.5 Sterling Engine Co. Buffalo, N. Bullard Co. Bridgeport, Conn Number of * Name and address of company Month of NO 6 * 3,500 1,074 Office of the Secretary of the Treasury, Division of Research and Statistics. 34 79 . 5.25 21.92 3 10 * April 15, 1942. According to reports of War Production Board; data are for March 1, 1942 for the first 95 companies, and as of January 1, 1942 for the remaining companies. Data not available. 344 Operation of Payroll Savings Plans in Firms with Defense Supply Contracts of $2 millions or more (Continued - 10) defense Name and address of company Jones & Laughlin Steel Corp Pittsburgh, Pa Lights, Inc. & Ziebarth Fritz Co. Alhambra, Cal Wilton Woolen Co., Wilton, Me Oliver Farm Equipment Co., Chicago, Ill contracts 1 (In millions of dollars) 5.8 5.8 5.7 5.7 Month of latest report on payroll savings plan Feb. Jan. Mar. Feb. Lorraine Mfg. Co. Pawtucket, R. I 5.7 Mar. Utica Knitting Co., Clayville, N. Y 5.7 5.6 5.6 None None Albina Engine & Machine Works, Portland, Ore Federal Telegraph Co. Newark, N. J Mar. Number of employees Percentage of employees participating 33,600 per participating participating $ 8.64 5 . * 798 93 26 2,681 49 300 employee * 4,100 * Average deduction employees 83 75 * Percentage of salary deducted for 8.02 4.87 7 3 * 6.23 6 * * . Amount of * 6.66 62 7 (continued) Office of the Secretary of the Treasury, Division of Research and Statistics. April 15, 1942. 1/ According to reports of War Production Board; data are for March 1, 1942 for the first 95 companies, and as of January 1, 1942 for the remaining companies. Data not available. 345 Operation of Payroll Savings Plans in Firms with Defense Supply Contracts of $2 millions or more (Continued - 11 ) Amount of defense Name and address of company contracts 1 (In millions of dollars) Lionel Corp., Irvington, N. J $ 5.6 United Engineering Co., Ltd. Month of latest report on payroll savings plan Number of employees Percentage of employees participating San Francisco Cal Folmer-Graflex Corp. Rochester, N. Y Weston Electrical Instrument Corp. Newark, N. J Food Machinery Corp., Dunedin, Fla Parish Pressed Steel Co. Reading, Pa Byron Jackson Co., Los Angeles, Cal Case, J. I. Co., Racine, Wisc deducted for employees participating per emplovee participating . None N. Y 5.5 5.5 None None 5.5 Mar. 2,015 56 5.5 Mar. 542 93 360 100 1,000 11 5.5 None 5.4 Mar. Feb. 5.5 5.4 5.4 5.3 5.2 . . . . 933 61 5.2 Brown and Sharpe Mfg. Co., Providence, RI Wheeler Shipyard, Inc. Brooklyn, N. Y.. 5.2 5.2 5.2 Mar. Feb. Mar. 10,500 2,451 Fleetwings, Inc., Bristol, Pa 5.1 5.1 None Mar. 2,819 3,110 76 National Electric Products, Pittsburgh, Pa. Mathis, John H. Co., Camden, N. J Jeffrey Mfg. Co. Columbus, Ohio Fairforest Finishing Co. Spartansburg, s.d. Ferro Stamping and Mfg. Co., Detroit, Mich. 5.0 5.0 5.0 4.9 4.9 Mar. Mar. Mar. Mar. Mar. 2,254 55 456 10 2,570 79 Cal-Aero Corp., Glendale, Cal West Point Mfg. Co., Fairfax, Ala Fedders Mfg. Co., Buffalo, N. Y 4.9 4.9 4.8 4.8 4.8 None * Wise Mills, N. C. Cramerton Inc., Cramerton, Kilgore Mfg. Co., Tipp City, Ohio Mar. . . . . 6 13.72 . 6,550 427 600 508 8,070 48 6.96 3 35 7 75 5 55 13.86 7.94 11.34 NO . 57 84 7.62 4 5.92 19.36 9.78 7.84 9.03 3 8 4 7 4 . 11 None Feb. Feb. 4.35 9.43 3 None None Jan. 5.63 3 5 Blaw - Knox Co., Pittsburgh, Pa Pollak Mfg. Co. Arlington, N. J 7.99 . None Feb. Chain Belt Co., Milwaukee, Average deduction $ Aluminum Co. of America. Pittsburgh, Pa. Taylor Wharton Iron and Steel Co. High Bridge, N. J Okonite Murray Mfg. Co., Corp. Passaio, Brooklyn, N. J Percentage of salary 5.21 6 . 2,010 75 6 373 27 2 5.95 1.99 (continued) Office of the Secretary of the Treasury, Division of Research and Statistics. April 15, 1942. 1/ According to reports of War Production Board; data are for March 1, 1942 for the first 95 companies, and as of January 1, 1942 for the remaining companies. *Data not available. 346 Operation of Payroll Savings Plans in Firms with Defense Supply Contracts of $2 millions or more (Continued - 12) Amount of defense Name and address of company Clark Equipment Co., Battle Creek, Mich. Waterbury Clook Co., Waterbury, Conn. Standard Container, Inc. Bloomfield,N.J. Timken-Detroit Axle Co., Detroit, Mich. Automatic Electric Co., Chicago, I11 Colorado Fuel and Iron Corp. Denver, Col. contracts 1 (In millions of dollars) $ 4.7 4.7 4.7 4.7 4.6 Month of latest report on payroll savings plan None Mar. Number of employees 4,649 2,612 Percentage Percentage of of salary employees participa ting 60 Mar. Mar. 6,300 3,952 43 Feb. Feb. 11,204 1,559 56 participating 7.51 4 54 Mar. Brown Shoe Co. Inc., St. Louis, Mo. 4.4 4.4 Mar. National Acme Co., Cleveland, Ohio Collins and Aikman Co. New York, N. Y Reynolds Metals Co., Richmond, Va Remington Rand, Inc. Bridgepert, Conn Nineteen Hundred Corp., St. Joseph, Mich. 4.4 4.3 4.3 4.3 4.3 Mar. Feb. Feb. 153 825 56 Apex Electrical Mfg. Co. Cleveland, Ohio. 4.3 4.3 4.3 Mar. Mar. 1,594 49 950 95 4.2 Feb. 840 4.2 Mar. Feb. 2,314 1,368 Mar. 682 None per employee * 4.5 Nashua Mfg. Co., Nashua, N. H. participating None Mar. Mar. Ingersoll Rand Co. Athen, Pa Lukens Steel Co., Coatesville, Pa employees . 4.5 4.5 4.5 4.5 4.5 Stillwater Worsted Mills, Harrisville, RI. deducted for Average deduction 4.96 3.46 2 2 89 9.40 6.74 ? 6 * . * 5,500 5,261 79 5 900 39 5 405 77 11.00 5.97 * 5 National Forge and Ordnance Co. Irvine, Pa Bannes-Duluth Shipbuilding Co. Duluth, Minn Trailer Co. of America, Cincianati, Ohio. Bauer Brothers Co., Springfield, Ohio United States Hoffman Machinery Corp. Syracuse, N. Y Walworth Company, Greensburg, Pa Ames Worsted Co. Lowell, Mass. Barnes, W. F. & John Co., Rockfort, Ill. Aluminum Industries, Inc., Cincinnati,O. Barium Stainless Steel Corp. Canten, Ohio 4.1 4.0 4.0 4.0 . 4,335 59 12.46 6 * * * 9 None None None 7.11 3 None None None 9.05 1.86 10.99 2 8 6.56 8.44 6 4 * 58 79 6 84 4 35 7.62 5 9.59 4.40 13.66 7 . * 120 * (continued) Office of the Secretary of the Treasury, Division of Research and Statistics. April 15, 1942. 1 According to reports of War Production Board; data are for March 1, 1942 for the first 95 companies, and as of January 1, 1942 for the remaining companies. Data not available. 346 Operation of Payroll Savings Plans in Firms with Defense Supply Contracts of #2 millions or more (Continued - 12) Amount of defense Name and address of company Clark Equipment Co., Battle Creek, Mich. Waterbury Clook Co., Waterbury, Conn. Standard Container, Inc. Bloomfield, N.J. Timken-Detroit Axle Co., Detroit, Mich Automatic Electric Co., Chicago, I11 Colorado Fuel and Iron Corp., Denver, Col. Stillwater Worsted Mills, Harrisville, RI. Ingersoll Rand Co. Athen, Pa Lukens Steel Co., Coatesville, Pa Nashua Mfg. Co., Nashua, N. H. contracts 1 (In millions of dollars) Month of latest report on payroll savings plan 4.7 None 4.7 Mar. 4.7 4.7 4.6 None 4.5 4.5 4.5 4.5 4.5 Number of employees of employees participating 4,649 2,612 Percentage of salary deduction employees employee deducted for participating * 6,300 3,952 Feb. Feb. None Mar. 11,204 1,559 Average per participating * 60 7.51 4 . Mar. Mar. Mar. Percentage * 54 4.96 3.46 2 43 2 9.40 6.74 89 7 56 6 . . 5,500 5,261 79 5 900 39 5 405 77 11.00 . 5 5.97 National Forge and Ordnance Co. Irvine, Pa Bannes-Duluth Shipbuilding Co. 4.5 Mar. Brown Shoe Co., Inc., St. Louis, Mo. 4.4 4.4 Mar. National Acme Co., Cleveland, Ohio Collins and Aikman Co. New York, N. Y Reynolds Metals Co., Richmond, Va Remington Rand, Inc. Bridgepert, Conn. Nineteen Hundred Corp., St. Joseph, Mich. 4.4 4.3 4.3 4.3 4.3 Mar. Feb. Feb. 153 825 56 Apex Electrical Mfg. Co. Cleveland, Ohio. 4.3 4.3 4.3 Mar. Mar. 1,594 49 950 95 4.2 Feb. 840 58 4.2 4.1 Mar. Feb. Mar. 2,314 1,368 79 6 84 4 682 35 Duluth, Minn. Trailer Co. of America, Cincinnati, Ohio, Bauer Brothers Co., Springfield, Ohio United States Hoffman Machinery Corp. Syracuse, N. Y Walworth Company, Greensburg, Pa Ames Worsted Co. Lowell, Mass Barnes, W. F. & John Co., Rockfort, Ill. Aluminum Industries, Inc., Cincinnati,O. Barium Stainless Steel Corp., Canten, Ohio 4.0 4.0 4.0 . 4,335 59 12.46 6 * . 9 1.86 10.99 2 8 6.56 8.44 6 4 None None None 7.11 3 None None None 9.05 . 7.62 5 9.59 4.40 13.66 7 . 120 * (continued) Office of the Secretary of the Treasury, Division of Research and Statistics, April 15, 1942. 1 According to reports of War Production Board; data are for March 1, 1942 for the first 95 companies, and as of January 1, 1942 for the remaining companies. Data not available. 347 Operation of Payroll Savings Plans in Firms with Defense Supply Contracts of #2 millions or more (Continued - 13 ) Amount of defense Name and address of company General Machinery Corp., Hamilton, Ohio Crown Cork and Seal Co. Inc. Philadelphia, Pa Struthere-Wells Titusville Corp. Titusville, Pa Breeze Corp. Inc., Elizabeth, N. J Nashville Bridge Co., Nashville, Tenn Indian Motoreycle Co., Springfield, Mass. contracts 1, (In millions of dollars) $4.0 4.0 4.0 Month of latest report on payroll savings plan Mar. Mar. Feb. Number of employees Percentage of employees participating 3,466 77 3,450 61 750 23 Percentage of salary deducted for participating participating $14.31 6 7.05 5 8.07 5 None * None . 3.9 Mar. 1,000 45 4 3.9 Mar. 1,460 31 6 3.9 3.9 3.9 None None Feb, 1,214 1,150 2,000 3.9 Feb. 474 3.8 3.8 Jan. 1,900 3.8 3.7 None None 3.7 3.7 None None 3.7 Jan. 3.6 None Nevins, Henry B. Inc. City Island, N.Y. Gar Wood Industries, Inc., Detroit, Mich. 3.6 3.6 Mar. 494 24 Feb. 3,822 38 Feb. Mar. 279 15 DeLaval Steam Turbine Co., Trenton, N. J. 3.6 3.6 Clintonville, Wise per emplovee employees 4.0 3.9 Four Wheel Drive Auto Co. Average deduction . . . 9.06 7.91 Electric Household Utilities Corp. Chicago, I11 Gisholt Machine Co., Madison, Wise Spencer Lens Co., Buffalo, N. Y Equitable Equipment Co., Inc. New Orleans, La Foster Wheeler Corp. Carteret, N. J Cable Raincoat Co., Boston, Mass. American Brake Shee and Foundry Co. New York, N. Y Noblitt-Sparks Industries, Columbus, Ind. Scullen Steel Co. St. Louis, Mo Worth Steel Co., Claymont, Dela Auto Specialties Mfg. Co. St. Joseph, Mich Sullivan Dry Dock and Repair Corp. Brooklyn, N. Y. Cowdrey, C. H. Machine Works, Fitchburg, Mass * * * . 46 2.29 * * 7.55 4 9 None . . * . . . . . 1,301 85 6.53 4 . * 2,300 77 20,52 11.92 8 6 16.05 8 . (continued) Office of the Secretary of the Treasury, Division of Research and Statistics. . April 15, 1942. According to reports of War Production Board; data are for March 1, 1942 for the first 95 companies, and as of January 1, 1942 for the remaining companies. Data not available. 348 Operation of Payroll Savings Plans in Firms with Defense Supply Contracts of #2 millions or more (Continued - 14 ) Amount of defense Name and address of company Niles Bement Pond Co West Hartford, Conn Chas. A. Eaton Co. Brockton, Mass Beaumont Mfg. Co. Spartansburg, 8. C Sellers, Wm. and Co., Inc. Philadelphia, Pa contracts 1/ (In millions of dollars) $3.6 3.6 3.6 Month of latest report on payroll savings plan Jan. Mar. Number of employees Mar. 3.5 3.4 3.4 3.4 None of employees participating Percentage of salary deducted for Average deduction employees participating 5,813 67 800 75 4 797 27 11 None 3.5 Percentage per employee participating $21.90 5.06 9 24.36 Aluminum Cooking Utenail Co New Kensington, Pa Endicott Johnson Corp., Endicott, N. Y. Corbitt Company, Henderson, N. C. Erie Forge Co., Erie, Pa Mar. None None . 19,324 . * 61 3.39 3 * 497 * Universal Boring Machine Co. Hudson, Mass 3.4 Mar. A. D. Juilliard Co., Inc. New York, N. Y. 3.4 3.3 None Hobart Mfg. Co., Troy, Ohio Forstmann Woolen Co., Passaic, N. J Buoyrus-Erie Co., South Milwaukee, Wisc. Reeblings, John A. Sons, Trenton, N. J. Collyer Insulated Wire Co. Pawtucket, R.I 3.3 3.3 3.3 3.2 3.2 Onaha Steel Works, Omaha, Nebr. 3.2 3.2 3.1 3.1 3.1 Mar. 3.1 3.1 3.0 3.0 American Mfg. Co. of Texas Fort Worth, Texas Mueller-Brass Co., Port Huron, Mich Bridgewater Machine Co. Akron, Ohio Sparks-Withington Co. Jackson, Mich Boott Mills, Boston, Mass General Bronze Corp., Long Island City, NY Rosenbloom, 8., Inc., Baltimore, Md. Kingston Products Corp. Kokoma, Ind Matam Corp., Brooklyn, N. Y. Butterworth, H. W. and Sons Co. Philadelphia, Pa (continued) 3.0 Mar. 185 None Mar. None None 12.74 6 * 180 None None None Mar. None 29 99 10.38 4 * . * . . . . . . 7,000 28 . 11.22 6 . 690 * 218 66 . 41 9.45 7 . 17.79 7 . 1,500 . . None None 1,181 . . . . Mar. 675 59 7.00 5 None None Office of the Secretary of the Treasury, Division of Research and Statistics. April 15, 1942 1/ According to reports of War Production Board; data are for March 1, 1942 for the first 95 companies, and as of January 1, 1942 for the remaining companies. Data not available, 349 Operation of Payroll Savings Plans in Firms with Defense Supply Contracts of #2 millions or more (Continued - 15 ) Amount of defense Name and address of company contracts 1 (In millions of dollars) Cunningham, James Bons and Co. Rochester, N. Y $3.0 Month of latest report on payroll savings plan None Number of employees Percentage of employees participating 3.0 3.0 3.0 Mar. Mar. Mar. 8,817 1,800 1,500 27 3.0 3.0 2.9 2.9 2.9 Mar. Mar. 1,190 29 230 98 2.8 2.8 2.8 None 2.8 Feb. 2.8 2.8 None Jan. 230 2.8 2.8 Mar. 930 None 1,737 2.8 None 2.8 2.8 None Mar. Standard Pressed Steel Co. 2.8 None Walker Mfg. Co. of Wisconsin 2.7 Feb. 440 32 2.7 Mar. 4,176 71 2.7 None Sargent and Co., New Haven, Conn Schwitzer Cummins Co., Indianapolis, Ind. Continental Gin Co., Birmingham, Ala Long, W. F., Dallas Texas. C. H. Wheeler Mfg. Co. Philadelphia, Pa. Crane Co., Chicago, I11 Kent Mfg. Co., Clifton Heights, Pa Miller Printing Mach. Co., Pittsburgh, Pa. John Wood Mrg. Co., Inc., Philadelphia, Ps. Paragon Worsted Co., Providence, R. I. Ryan School of Aeronautics, San Diego, Cal Graybar Electric Co., Boston, Mass Prudential Worsted Co., Philadelphia, Pa. Progressive Coat and Apron Mfg. Co. Philadelphia, Pa Mine Safety Appliance Co. Pittsburgh, Pa. Badger, E. B. and Sons, Co. Boston, Mass. Harrington and Richardson Arms Co. Worcester, Mass Butler Mfg. Co. Kansas City, Mo Jenkintown, Pa Jackson, Mich Stromberg-Carlson Telephone Mfg. Co. Rochester, N. Y Leakeville Woolen Mills, Inc. Charlotte, N. C Feb. employees participating per employee participating 7.05 4.55 9.62 4 31 Me 6 87 16.83 7.02 10 6 . None Feb. None deducted for Average deduction . Pittsburgh Steel Co. Pittsburgh, Pa salary . . * Percentage of 16,711 58 9.76 5 . * * . 850 7.50 55 5 * None 25.78 13 14 450 * 100 3.87 5 * . . . 557 . . 96 6.89 4 * 7.14 3 6.23 5 * (Continued) April 15, 1942 Office of the Secretary of the Treasury, Division of Research and Statistics. According to reports of War Production Board: data are for March 1, 1942 for the first 95 companies, and as of January 1, 1942 for the remaining companies. Data not available. 350 Operation of Payroll Savings Plans in Firms with Defense Supply Contracts of $2 millions or more (Continued - 16 ) Amount of defense Name and address of company Flour City Ornamental Iron Co. Minneapolis, Minn American Laundry Machinery Co. Cincinnati, Ohio North Star Woolen Mill Co. Minneapolis, Minn Morton Mfg. Co. Chicago, I11 Eaton Mfg. Co. Cleveland, Ohio Cleveland Pneumatic Tool Co. Cleveland, Ohio contracts 1 (In millions of dollars) $2.7 LeRoi Co. West Allis, Wise Tredegar Co. Richmond, Va Seely Tube and Box Co., Newark, N. J Pepperell Mfg. Co., Lewiston, Maine National Malleable and Steel Casting Co. Cleveland, Ohio Vilter Mfg. Co. Milwaukee, Wise. Yale and Towne Mfg. Co., Chicago, I11 Briggs and Strattan Corp. Milwaukee, Wise Reliance Mfg. Co., Chicago, Ill Laskin, J. and Sons, Milwaukee, Wise Harley-Davidson Motor Co. Milwaukee, Wise Broad Brook Co. Broad Brook, Conn. United States Motor Corp., Oshkosh, Wisc. Black Hawk Mfg. Co., Milwaukee, Wise American Bantan Car Co., Butler, Pa Hall Scott Motor Car Co., Berkeley, Cal. Muncie Gear Works, Muncie, Ind. Irving Air Chute Co., Inc. Buffale, N.Y. Monarch Machine Tool Co., Sidney, Ohio.. National Weaving Co., Inc., Lowell, N.C. latest report on payroll savings plan Mar. Number of employees 324 Percentage of employees participating 2.6 Mar. 549 56 Mar. Feb. 600 75 7,544 74 Feb. 2,700 40 2.6 2.6 None 2.6 2.6 2.6 2.5 Mar. Mar. Mar. Mar. 2.5 Feb. 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.4 2.4 2.4 2.4 2.4 $ 4.08 7.76 10.06 11.13 6 . 9 25.19 . . 48 4 18 10 470 21 1,214 68 6,800 64 . . 6 750 5.99 13.70 10.80 4.72 7 5.96 4 . 7.95 50 5 * None * Jan. 505 Jan. 2,003 None None None participating 6 579 6,686 per employee * * None None participating . None Feb. employees Average deduction 3 None 2.6 2.6 Percentage of salary deducted for 46 2.7 Van Norman Machine Tool Co. Springfield, Mass Month of 93 500 Mar. Feb. 650 None 250 Feb. Feb. 1,707 30 775 * . 56 * * . * . * * * . . * 15 * . 11 23.00 * * * # * . 7 50 20.27 8.14 11 9 (continued) Office of the Secretary of the Treasury, Division of Research and Statistics. April 15, 1942 1, According to reports of War Production Board; data are for March 1, 1942 for the first 95 companies, and as of January 1, 1942 for the remaining companies. Data not available. 351 Operation of Payrell Savings Plans in Firms with Defense Supply Contracts of $2 millions or more (Continued - 17 ) Amount of defense Name and address of company Mt. Vernon-Woodberry Mills, Ind. contracts 1 (In millions of dollars) Month of latest report on payroll savings plan Number of employees Percentage of employees participating Percentage of salary deducted for deduction employees employee participating Average per participating $2.4 Mar. 710 46 11 $11.55 2.4 Feb. 231 19 12 26.98 2.4 Mar. 641 87 4 2.4 2.4 2.4 2.4 Mar. Feb. Feb. 450 12 1,800 25,000 83 None Thompson Products Inc. Cleveland, Ohio R.T.C. Shipbuilding Corp. Camden, N. J B. G. Corp., New York, N. Y. Axelson Mfg. Co. Los Angeles, Cal 2.4 2.3 2.3 2.3 2.3 Union Bleachery, Greenville, S. C Treadwell Construction Co., Midland, Pa. Harbour Boat Building Co Los Angeles, Cal International Machine Tool Corp. Indianapolis, Ind Bushey, Ira 8. and Sons, Inc. Brooklyn, N. Y Reo Motors, Inc., Lansing, Mich Texas Co., New York, N. Kennedy-Van Saun Mfg. Co., Danville, Pa. Joseph N. Eisendrath Co. Marinette, Wise General Time Instrument Corp. LaBalle, I11 Denison Engineering Co., Columbus, Ohio. 8. A. Woods Machine Co. Boston, Mass American Hoist and Derrick Co. Boston, Mass Crosby Co., Buffalo, N. Y. Fuld and Hatch Knitting Co., Cohoes, N.Y. Mfg. Texas Crocker-Wheeler Electrical Mfg. Co. Seripto Mfg. Co., Atlanta, Ga Taylor Bedding Co., Taylor, Ampere, N. J Hillsdale Mfg. Co., Hillsdale, Mich None 9 . . * . 4,800 27 7 None 161 . . Mar. 1,875 16 Feb. 108 16 2.3 2.3 Mar. Mar. 1,013 13 350 100 2.3 2.3 Mar. Feb. 4,176 71 337 34 2.3 Mar. 827 61 2.2 2.2 2.2 Mar. None 1,410 53 None . 2.2 2.2 Mar. Mar. 475 600 10 2.2 2.2 Mar. Mar. 1,260 47 5 911 22 4 13.74 3.92 14.41 3 9 9.01 4.76 11 3 6.23 11.42 5 7 9.27 5 18.80 8 * * * 36 . . Feb. . 9.82 10.57 16.68 5 64 . 10.21 6 . Baltimore, Md. 4.03 5 2.67 3 10.46 2.78 (continued) Office of the Secretary of the Treasury, Division of Research and Statistics. April 15, 1942 1/ According to reports of War Production Board; data are for March 1, 1942 for the first 95 companies, and as of January 1, 1942 for the remaining companies. Data not available. 352 Operation of Payroll Savings Plans in Firms with Defense Supply Contracts of $2 millions or more (Continued - 18) Amount of defense Name and address of company contracts 1/ (In millions of dollars) Easter Rolling Mill Co., Baltimore, Md. Kellogg Switchboard and Supply Co. Chicago, Ill Belmont Radio Corp. Chicago, Ill 011 Gear Co., Milwaukee, Wise Monroe Auto Equipment Co. Monree, Mich. Cleveland Container Co. Cleveland, Ohio Weather Head Co., Cleveland, Ohio LaFrance Industries, Philadelphia, Pa Union 011 Co., Les Angeles, Cal International Silver Co., Meriden, Conn. McKiernan-Terry Co., Dover, N. J Rockbestas Products Corp. New Haven, Conn Holtzer Cabot Electric Co., Boston, Mass. Miami Shipbuilding Co. Miami, Fla Hood Rubber Co. Inc., Watertown, Mass Connectiout Telephone and Electric Corp. $2.2 Month of latest report on payroll sayings plan Feb. Number of employees Percentage of employees participating 672 None None None 530 2.2 2,2 2.1 2.1 2,1 Feb. 726 47 99 20 2,406 21 525 85 8,000 11 Feb. Feb. 2.1 2.1 None 2.1 2.1 None Mar. * None Feb. 2.1 2.0 participating . . . 1,104 6 * * 69 3 4 Mar. Mar. 1,200 1,595 89 2.0 2.0 None . . . Dec. 333 86 9 2.0 None 578 Fulton Sylphon Co., Knoxville, Tenn. 2.0 2.0 None None 1,800 Steel Improvement and Forge Co. Cleveland, Ohio Marathon Rubber Products Co. Wausau, Wise. Colberg Boat Works, Stockton, Cal 2.0 2.0 Feb. None None None Beaird, J. B. Corp., Shreveport, La Pressed Steel Tank Co., Milwaukee, Wise. 2.0 2.0 28 * 5.62 5.85 5.79 11.04 27.56 8 13 * 9.27 . . . 274 ** . 651 32 14. 40 7 * . * # * . # . Office of the Secretary of the Treasury, Division of Research and Statistics. 6.94 3 . 13 Picker X-Ray Corp. Cleveland, Ohio Sklar, J. Manufacturing Co. Long Island City, N. 5 * . . 14.92 4.15 9.29 8 6 . . . * 5,423 Globe Machine and Stamping Co., Cleveland, Ohio April 15, 1942. According to reports of War Production Board: data are for March 1, 1942 for the first 95 companies, and as of January 1, 1942 for the remaining companies. Data not available. participating . . Goodman Mfg. Co., Chicago, Ill per employee * . Meriden, Conn Average deduction $ 6.62 4 . None 2.1 2,1 employees 82 2.2 2.2 2.2 Jan. Feb. Percentage of salary deducted for 353 Company no plans reported 354 Companies with Defense Supply Contracts of $2 millions or more for which the operation of Payroll Savings Plans has not been reported to Washington Amount of defense Name and address of company Republic Aviation Corp., Farmingdale, N.Y Moore Dry Dock Co. Oakland, Calif United States Cartridge Co., St. Louis, Mo Carl L. Norden Inc. American Republics Corp, Houston, Texas North Carolina Shipbuilding Co., Wilmington, North Carolina Pennsylvania Shipyard, Inc., Beaumont, Texas. Todd & Brown, Inc., La Porte, Indiana Hooven-Owens-Rentschler Co., Hamilton, Ohio Iowa Transmission Co. Waterloo, Iowa Marietta Mfg. Co., Point Pleasant, W. Va Munitions Mfg. Corp., Poughkeepsie, N. Y Reeves Bros. Inc., New York, N. Y Wheland Co., Chattanooga, Tennessee General Machinery Ordnance Corp. S. Charleston, West Virginia Leathem Smith Coal & Shipbuilding Co., Sturgeon Bay, Wisconsin Edgemoor Iron Works, Inc., Edgemoor, Dela American Propeller Corp., Toledo, Ohio Nordberg Mfg. Co., Milwaukee, Wisc Harmon-Herrington Co. Inc., Indianapolis, Ind. Charleston Shipbuilding & Dry Docks Co Charleston, South Carolina J. L. Stifel & Sons, Wheeling, W. Va. Chatham Mfg. Co., Elkin, North Carolina Kilby Steel Co., Anniston, Ala Consolidated Shipbuilding Co Morris Heights, New York (continued) contracts 1 (In millions of dollars) $227.2 120.0 98.5 60.0 56.6 35.5 32.6 26.8 25.1 21.5 18.9 17.6 16.1 14.2 13.3 13.0 12.8 12.2 12.1 11.1 10.8 9.3 9.1 8.4 7.6 Office of the Secretary of the Treasury, Division of April 15, 1942 Research and Statistics. 1 According to reports of War Production Board; data are for March 1, 1942 for the first 5 companie 8, and as of January 1, 1942 for the remaining companies. 355 Companies with Defense Supply Contracts of $2 millions or more for which the operation of Payroll Savings Plans has not been reported to Washington (Continued - 2) Amount of defense Name and address of company Winslow Marine Railroad & Shipbuilding Co. Seattle, Washington Penn. -Jersey Shipbuilding Corp Camden, New Jersey Submarine Signal Co., Boston, Mass Air Cruisers, Inc., Clifton, N. J Detroit Harvestor Co., Toledo, Ohio Pettibone Mulliken Corp., Chicago, Ill Greenport Basin & Construction Co. Inc Greenport, New York Robertshaw Thermostat Co., Youngwood, Pa Jeffersonville Boat & Machine Co. ( Jeffersonville, Indiana Herman, Joseph M. Shoe Co., Millis, Mass Tokheim 011 Tank & Pump Co., Fort Wayne, Ind. Champion Shoe Mfg. Co., St. Louis, Mo Feltex Corp., Detroit, Michigan Globe Shipbuilding Co., Superior, Wisc Crawford-Austin Mfg. Co., Waco, Texas Switlik Parachute & Equip. Co., Trenton, N.J. Bowser, S. F. & Co., Inc. Ft. Wayne, Ind Trojan Powder Co., Allentown, Pa. Universal Building Products Corp Dallas, Texas Spartan Aircraft Co., Tulaa, Oklahoma Luders Marine Construction Co. Stamford, Connecticut Leaco-Neville Co., Cleveland, Ohio American Bleached Goods Co., Biltmore, N. C. (continued) contracts 1 (In millions of dollars) $7.6 7.5 6.9 6.5 6.3 5.8 5.2 5.2 5.0 4.9 4.9 4.8 4.7 4.6 4.5 4.4 4.4 4.3 4.3 4.1 4.0 3.9 3.7 April 15, 1942 office of the Secretary of the Treasury, Division of Research and Statistics. ( 1/ According to reports of War Production Board; data are for March 1, 1942 for the first 5 companies, and as of January 1, 1942 for the remaining companies. 356 Companies with Defense Supply Contracts of $2 millions or more for which the operation of Payroll Savings Plans has not been reported to Washington (Continued - 3) Amount of defense Name and address of company Guerin Mills Inc., Woonstock, R. I Lincoln Bleachery, Lonsdale, R. I Avondale Marine Ways, Inc., Avondale, La Froemming Bros., Milwaukee, Wise Chandler Evans Corp., South Meriden, Conn Gardner & Warring Co., Inc., Florence, Ala Weaver Shipyard, Orange, Texas Ward La France Truck Corp. Elmira, N. Y Homelite Corp., Port Chester, N. Y Metcalf Bros. & Co., New York, N. Y Horton Mfg. Co., Bristol, Conn Hannifin Mfg. Co., Chicago, Ill San Jacinto Shipbuilders, Inc. Houston, Tex. Durham Mfg. Co., Muncie, Pa Pennsylvania Forge Co., Philadelphia, Pa Unexcelled Mfg. Co., New York, N. Y Graniteville Co., Bridgeton, N. J Johnson & Johnson, Chicago, Ill Balch-Morris, Inc., New York, N. Y Leach Co., Oshkosh, Wisc contracts 1 (In millions of dollars) $3.7 3.6 3.6 3.5 3.4 3.3 3.3 3.2 3.2 3.1 3.0 3.0 3.0 3.0 3.0 3.0 2.8 2.9 2.8 2.8 Excel Foundry & Machine Co., Fall River, Mass. 2.8 2.7 2.7 2.7 Port Newark Shipbuilding Corp., Savannah, Ga. 2.7 Alliance 011 Corp., New York, N. Y Bell Co., Worcester, Massachusetts Aluminum Products Co., La Grange, Ill (continued) Office of the Secretary of the Treasury, Division of Research and Statistics. April 15, 1942 1 According to reports of War Production Board; data are for March 1, 1942 for the first 5 companies, and as of January 1, 1942 for the remaining companies. 357 Companies with Defense Supply Contracts of $2 millions or more for which the operation of Payroll Savings Plans has not been reported to Washington (Continued - 4) Amount of defense Name and address of company Standard Tube Co., Detroit, Michigan Brown Shipbuilding Co., Houston, Texas Canister Co., Phillipsburg, N. J Columbiana Boiler Co., Columbiana, Ohio S. M. Jones Co., Toledo, Ohio Lite Mfg. Co., New York, N. Y Stadium Yacht Basin, Inc., Cleveland, Ohio Cane Export & Commission Co., Greensboro, N.C. Platzer Shipbuilding & Drydock Co. Houston, Texas Tube Turns, Inc., Louisville, Kentucky (In millions of dollars) $2.6 2.6 2.6 2.6 2.6 2.6 2.6 2.6 2.6 2.6 Independent Engineering Co, Inc. O' Fallon, Ill. Embry-Riddle Co., Miami, Florida. Boldt Anchor Chain & Forge Co., Chester, Pa Hird & Sons, Inc., Garfield, New Jersey Oneida Ltd., Oneida, N. Y 2.5 2.5 2.5 2.5 Hollison Mills, Inc., Braintree, Mass 2.5 Cannonsburg Steel & Iron Works, Cannonsburg, Pa 2.6 Columbus Auto Parts Co., Columbus, Ohio 2.5 2.4 2.4 2.4 F. L. Jacobs Co., Detroit, Mich Bell & Howell Co., Chicago, Ill 2.4 2.4 2.4 Collins Radio Co. Cedar Rapids, Iowa Cannon Mills Co., Kannapolis, N. C Gallaway Mills, La Grange, Ga. Cummins Diesel Engine Corp. of N. Y. Bronx, N. Y 2.3 Pottsville, Pa. 2.3 Condenser Service & Engineering Co., Inc., (continued) office of the Secretary of the Treasury, Division of Research and Statistics. ( contracts 1 April 15, 1942 1 According to reports of War Production Board; data are for March 1, 1942 for the first 5 companies, and as of January 1, 1942 for the remaining companies. 358 Companies with Defense Supply Contracts of $2 millions or more for which the operation of Payroll Savings Plans has not been reported to Washington (Continued - 5) Amount of defense Rice Bros. Corp., E. Boothbay, Maine. Lanett Bleachery & Dye Works, Lanett, Ala South Coast Co., Newport Beach, Calif George Wood Sons & Co., Millville, N. J Burger Boat Co., Manitowoc, Wise Lavine Gear Co., Milwaukee, Wisc Lake Superior Shipbuilding Co., Superior, Wisc. Bishop & Babcock Mfg. Co., Cleveland, Ohio International Arms & Fuse Co., New York, N. Hancock Allen College of Aeronautics, Santa Monica, Calif Hilte Brant Drydock Co. Inc., Kingston, N. Y Waucantuck Mills, Uxbridge, Mass Penn Foundry & Mfg. Co., Inc., Waynesboro, Va Boyt Harness Co., Des Moines, Iowa Tallassee Mills, Tallassee, Ala Robert Jacob, Inc., New York, N. Y Hoyl & Patterson, Inc., Pittsburgh, Pa : Name and address of company contracts 1 (In millions of dollars) $2.3 2.3 2.2 2.2 2.2 2.2 2.2 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.0 2.0 2.0 (continued) office of the Secretary of the Treasury, Division of Research and Statistics. April 15, 1942 1 According to reports of War Production Board; data are for March 1, 1942 for the first 5 companies, and as of January 1, 1942 for the remaining companies. 359 SUMMARY 360 Operation of Payroll Savings Plane In Firms With 5,000 or More Employees Part I. Classification of Firms and Employees Firms Number a. With plans b. Without plans C. Total Percent Employees Number : Classification Percent 463 96.1 7,341,980 98.0 19 3.9 146,600 2.0 482 100.0 7,488,580 100.0 Part II. Data for Firms With Plans Submitting Complete Reports Number of firms submitting complete reports Number of employees in these firms Number of employees participating in payroll savings plan Percent of employees participating. 1, Total payroll of firms submitting complete reports 1 Estimated payroll of employees participating 1 Amount deducted from pay 1/ Percent deducted from pay 1 Amount deducted per employee participating 1 Office of the Secretary of the Treasury, Division of Research and Statistics. Latest reports, most of which are for February. 264 5,033,344 1,949,512 39 $876,528,374 $335,074,987 $17,069,263 5 $8.76 April 15, 1942 1 361 COMPANIES HAVING 5,000 OR MORE EMPLOYEES WITHOUT PAYROLL SAVINGS PLAN 362 Companies Having 5,000 or More Employees In Which a Payroll Savings Plan Is Not in Operation 1 Name and address of company Number of employees Mason & Hanger Co., Richmond, Kentucky Nonquit Mills, New Bedford, Massachusetts American Tobacco Co., New York, N. Y, Cannon Mills Co., Kannapolis, North Carolina Matson Terminals, Inc., San Francisco, Calif Atlantic Co., Atlanta, Georgia Premier Worsted Mills, Boston, Mass Champion Paper & Fibre Co., Hamilton, Ohio Alex Smith & Sons Carpet Co., Yonkers, N. Y Coastwise Line Corp., San Francisco, Calif United Biscuit Co. of America, Chicago, Ill 20,655 11,500 11,008 10,000 9,819 7,228 7,121 6,216 6,193 6,185 Fraser-Brace Engineering Co., New York, N. Y M. T. Stevens & Sons Co., North Andover, Mass Grace Line Inc. - Delaware, New York, N. Y 6,073 5,936 5,936 5,713 5,603 American News Co., New York, N. Y Hygrade Sylvania Corp., Salem, Mass Rath Packing Co., Waterloo, Iowa 5,579 5,506 5,200 5,129 Stokely Bros. & Co., Inc., Indianapolis, Indiana. Hearst Publications, Inc., San Francisco, Calif Office of the Secretary of the Treasury, Division of Research and Statistics. April 15, 1942 1 According to reports of the State Administrators of the Defense Savings Staff. 363 COMPANIES HAVING 5,000 OR MORE EMPLOYEES WITH PAYROLL SAVING PLAN 364 Operation of Payroll Savings Plans in Companies Having 5,000 or More Employees Month Name and address of company United States Steel Corp., New York, N.Y. General Motors Corp. Detroit, Mich Bethlehem Steel Co. New York Pennsylvania Railroad Co., Philadelphia Pa. General Electric Co., Schenectady, N.Y New York Central System, New York, N.Y Ford Motor Co. Dearborn, Michigan Sears Roebuck & Co. of New York, Chicago, I11 of Number of report employees latest Feb. Feb. Feb. Feb. Feb. Feb. Jan. 297,957 220,234 194,545 150,368 127,050 117,999 98,758 Percentage of employees participating 6 14 5 12 5 Feb. None Feb. Feb. 73,000 66,578 66,239 62,508 62,410 Feb. Feb. Feb. Mar. 61,083 57,600 54,732 53,144 None Mar. Feb. 53,000 52,834 49,000 Feb. 48,133 12 Railway Express Agency, Inc. New York, N. Y Jan. Feb. 21 F. W. Woolworth Co. Inc. New York, N.Y J. C. Penney Co., New York, N. Y Aluminum Company of America, Pittsburgh, Pa None None None 47,000 46,960 45,543 44,000 43,239 participating 13.26 13.11 6.96 10.93 7.16 8.29 . * 49 4 7.64 * * . E.I.du Pont de Nemours Co. Wilmington, Del None 4 66 77,570 Republic Steel Corp., Cleveland, Ohio Western Electric Co. Inc. New York, N.Y. S. S. Kreage Co., Detroit, Michigan 7 84 Feb. Average deduction per employee $ 7.23 30 85,706 Swift & Company, New York, N.Y. for employees participating 45 None Westinghouse Electric & Manufacturing Co. East Pittsburgh, Pa Percentage of salary deducted 27 6 34 6 12.13 10.75 The Great Atlantic & Pacific Tea Co New York, N.Y Southern Pacific Lines, San Francisco, Cal Baltimore & Ohio Railroad Co. Baltimore, Md. International Harvester Co., Chicago, Ill Lockheed-Vega Aircraft Co. Burbank, Cal Montgomery-Ware & Co. Inc Chicago I11 Union Pacific Railroad Co. Omaha, Neb Atchison, Topeka & Santa Fe Railway Co Chicago, Ill Chrysler Corp. Detroit, Mich 49 3 14 4 15 5 3.87 7.48 7.90 98 * 53 # 4 66 5 6 4.41 8.66 11.05 4.95 11.23 (continued) Office of the Secretary of the Treasury, Division of Research and Statistics. Data not available. April 15, 1942 365 Operation of Payroll Savings Plans in Companies Having 5,000 or More Employees (Continued - 2) Bendix Aviation Corp. South Bend Ind Consolidated Aircraft Corp. San Diego Cal United States Rubber Co. New York, N. New York Telephone Co., New York, N. Y Pacific Telephone & Telegraph Co. San Francisco Cal N. J. Worsted Mills, Garfield, N.J Prudential Insurance Company of America, Newark, N. J Illinois Central Railroad, Chicago Ill United Aircraft Corp. East Hartford Conn Jones & Laughlin Steel Corp. Pittsburgh Pa. Western Union Telegraph Co. New York, N. Boeing Aircraft Co., Seattle, Wash Consolidated Edison Company of New York, New York, N.Y International Shoe Co., St. Louis, Mo Missouri-Pacific Lines, St. Louis Mo Louisville & Nashville Railroad Co Louisville, Ky Chicago, Milwaukee, St. Paul Pacific Railroad Co. Chicago Ill Number of report employees latest Feb. Feb. 38,521 38,444 26 Feb. 38,444 88 Mar. Feb. Feb. Feb. Feb. 36,830 35,900 33,600 32,800 32,750 Feb. Feb. Feb. 32,554 32,242 32,000 Feb. 31,400 22 Feb. Feb. Dec. 17 27 None Illinois Bell Telephone Co. Chicago I11 Feb. Feb. Mar. Feb. Feb. 29,132 28,454 28,214 27,883 27,800 Gulf 011 Corp., Pittsburgh, Pa employees participating 42,127 41,198 40,000 39,827 39,572 Union Carbide Co., New York, N.Y Southwestern Bell Telephone Co. St. Louis, Mo Oregon Shipbuilding Corp. Portland, Ore American Woolen Co., New York, N.Y of Feb. Feb. Feb. Feb. Mar. 30,755 30,700 30,000 30,000 Curtise-Wright Corp. New York, N.Y Glenn L. Martin Co. Baltimore, Md Percentage Percentage of salary deducted for employees participating Average deduction per employee participating $ 7.08 56 11.76 45 4 83 4 7 88 5 4 8 62 5 83 5 28 2 39 6 59 31 14 no 6 4 6.73 8.15 10.11 7.90 7.90 8.54 10.05 8.64 5.35 11.88 4.68 3.73 4.64 8.08 7.09 * * 10.12 33 7 Southern Railway System, Washington, D.C of . Name and address of company 3 Month 33 5 60 6.47 6.60 6.47 10.31 (continued) Office of the Secretary of the Treasury, Division of Research and Statistics. . Data not available. April 15, 1942 366 Operation of Payroll Savings Plans in Companies Having 5,000 or More Employees (Continued - 3) Month Name and address of company Chesapeake & Ohio Railway Co Cleveland, Ohio Safeway Stores, Oakland, Cal Youngstown Sheet & Tube Co Youngstown, Ohio Southern Bell Telephone & Telegraph Co Atlanta, Ga Chicago and Northwestern Railway Co Number of report employees latest Percentage of employees participating Feb. Feb. 27,693 27,363 35 Feb. 26,587 75 26,261 13 Jan. 25,900 25,787 Armour & Company, Chicago, Ill Newport News Shipbuilding & Dry Dock Co None 25,670 Mar. Feb. None 25,500 25,000 25,000 Mar. Jan. Feb. 24,172 24,000 24,000 Mar. 23,942 27 Dec. Mar. 23,800 23,709 25 Feb. 23,530 23,193 12 Western Cartridge Co., Chicago, Ill Crucible Steel Corp., New York, N. Y Firestone Tire & Rubber Co. Akron, Ohio The Pullman Co., Chicago, I11 Chicago, Burlington & Quincy Railroad Company, Chicago, Ill B. F. Goodrich Co., Akron, Ohio Shell 011 Co., New York, N. Y New York, New Haven & Hartford Railroad Co., New Haven, Conn Metropolitan Life Insurance Co. New York None Wilson & Company, Inc. Chicago, Ill None Co. Ohio Kodak N.Y The Borden Company, New York, N.Y Erie Railroad Cleveland, California Eastman Shipbuilding Co. Rochester, Corp. Los Angeles Harbor, al Feb. Feb. Dec. 22,771 22,254 22,228 22,000 Feb. 21,910 participating 8 Feb. Feb. The Texas Co. New York, N.Y. Percentage of salary deducted for employees 7 Chicago, Ill Sperry Co., Inc., New York, N.Y Newport News, Va ( of 4 6 4 48 6 * per employee participating $ 11.96 5.23 11.13 7 13 Average deduction 7.16 6.76 12.64 * * 63 7 64 9 55 4 22 3 22 3 4 4 32 6 23 7.09 5.98 4.27 7.78 7.85 9.95 3.22 2 * 16.38 16.68 . * 6.52 5.82 4 18 3 . 16 1 2.00 (continued) Office of the Secretary of the Treasury, Division of Research and Statistics. Data not available. April 15, 1942 367 Operation of Payroll Savings Plans in Companies Having 5,000 or More Employees (Continued - 4) Month Name and address of company Norfolk & Western Railway Co. Roanoke Va Great Northern Railway Co., St. Paul, Minn Federal Shipbuilding Corp. Kearny N. J American Radiator & Standard Sanitary Corp., New York, N. Y Chicago, Rock Island & Pacific Railway Company, Chicago, I11 New York Shipbuilding Corp. Camden, N. J Wheeling Steel Corp. & Affiliates, Wheeling, W. Va New England Telephone & Telegraph Co. Boston, Mass Public Service Corp. of New Jersey, Number of report employees latest Percentage of employees participating Feb. Feb. Dec. 21,271 21,238 21,123 None 21,000 Feb. Mar. 21,000 20,506 Feb. 20,490 61 Feb. 20,455 31 5 13 3 52 3 Hercules Powder Co. Hopewell Va Kroger Grocery & Baking Co. Cincinnati, Ohio Mar. Socony-Vacuum 011 Co. New York, N.Y Feb. Feb. 19,740 19,650 Feb. Mar. 19,569 19,324 46 Mar. Feb. 19,038 19,000 71 Feb. Feb. 18,875 18,841 16 Standard 011 Company of Indiana, Chicago, Ill 5 7.16 15.72 9.25 4.70 5.28 7.35 * * * * * * San Franceso, Cal 6 6 20,321 20,319 20,208 20,000 20,000 Reading Company, Philadelphia, Pa Standard 011 Company of California, 4 67 Mar. Jan. Packard Motor Car Co Detroit, Mich 8.51 * International Paper Co. New York, N.Y Northern Pacific Railway Co. St. Paul, Minn Bell Telephone Co. of Pennsylvania, Philadelphia, Pa. Endicott-Johnson Corp., Endicott, N.Y participating * 48 None Average deduction per employee $ 6.29 14 20,386 20,321 None participating 4 Feb. Feb. Sinclair Refining Co. New York, N.Y Percentage of salary deducted for employees 8 Newark, N. J American Can Company, New York, N.Y New England Power & Service Co. Boston, Mass ( of 21 36 11 61 11.19 7 7.74 4.82 4 3 3 3 6 ** 9 37 6 6 4.22 3.39 16.57 4.36 11.92 10.75 (continued) Office of the Secretary of the Treasury, Division of Research and Statistics. Data not available. Less than 1/2 of 1 percent. April 15, 1942 368 Operation of Payroll Savings Plans in Companies Having 5,000 or More Employees (Continued - 5) Month Name and address of company of Number report employees latest Allis-Chalmers Manufacturing Co West Allis, Wisc American Telephone & Telegraph Co None New York, N.Y of Percentage of employees participating Remington Arms Co. Inc. Bridgeport, Sonn Sun Shipbuilding & Dry Dock Co. Chester, Pa. Pittsburgh Plate Glass Co. Pittsburgh, Pa American Brass Co., Waterbury, Conn Mar. Feb. Mar. Feb. Mar. 18,160 18,087 18,006 18,000 17,900 American Viscose Co. Wilmington, Del Mar. None None 17,108 17,108 17,000 17,000 16,912 Feb. Feb. Feb. Jan. 16,838 16,711 16,576 16,210 Mar. Jan. 16,000 15,943 41 Jan. 15,914 11 Feb. 15,824 25 Feb. Feb. Feb. Feb. 15,699 15,600 15,562 15,552 38 Feb. 15,500 11 Atlantic Coast Line Railroad Co., Wilmington, N.O Orane Co. Chicago, Ill Cudahy Packing Co., Chicago, Ill North American Aviation, Inc. Inglewood, Cal. Timken Roller Bearing Canton, Ohio Briggs Manufacturing Co. Detroit, Mich Bethlehem Shipbuilding Corp San Francisco, Cal Texas & New Orleans Railroad Co. Houston, Texas Phelps Dodge Refining Corp. New York, N. Y Chicago Surface Lines, Chicago Ill Continental Can Inc. New York, N.Y Caterpillar Tractor Co., Co. East Peoria, St.Louis-San Francisco Railway Co., St. Louis, Mo Ill Feb. Feb. 20 deduction per employee participating 15.28 8 . 38 4 46 5 22 6 75 4 86 5 8 4 6.99 11.45 9.00 7.70 5.87 8.54 88 3 Seaboard Air Line Railway Co. Norfolk, Va Glen Alden Coal Co., Scranton, Pa Vultee Aircraft, Inc. Downey Cal R. H. Macy & Co., Inc., New York, N.Y Average $ 18,588 18,263 Goldblatt Bros. Inc Chicago, I11 participating 18,710 Feb. None National Biscuit Co. New York, N.Y Percentage of salary deducted for employees 6 58 5 44 5 15 5 6 6 9 36 9.86 15.32 19.78 8 5.48 3 3 72 39 8.76 9.76 6.03 12.21 no 6 6 5 4.92 4.56 7.56 9.92 7.92 (continued) Office of the Secretary of the Treasury, Division of Research and Statistics. . Data not available. April 15, 1942 369 Operation of Payroll Savings Plans in Companies Having 5,000 or More Employees (Continued - 6) Month Name and address of company of latest report Number of employees Pullman-Standard Car Manufacturing Co Chicago, I11 The Delaware, Lackawanna & Western Railroad Co. New York, N. Y Standard 011 Company of New Jersey, New York, N.Y Feb. 15,373 Percentage of employees participating Percentage of salary deducted for employees participating 29 5 None Feb. 15,175 * 51 Danville, Va Colt's Patent Fire Arms Manufacturing Co Hartford, Conn Pacific Gas & Electric Co. San Francisco ,Cal American Stores Co. Philadelphia, Pa Humble 011 & Refining Co. Houston, Texas New Jersey Bell Telephone Co. Newark N. American Locomotive Co. New York, N. Y Central Railroad of New Jersey, Jersey City, N.J 14,685 None Feb. None Feb. Feb. 14,594 14,484 14,381 35 5.50 * 6.63 13 Feb. 14,326 14,325 14,246 14,222 14,109 37 Feb. 13,500 21 Mar. Jan. 13,388 13,333 None Feb. Feb. Feb. 13,293 13,183 13,052 12,500 Feb. 12,500 None None 6 76 5 40 8.12 7.04 ? * * 6 6 8.87 5.76 3.64 2 9 * * Riverside & Dan River Cotton Mills, Inc Mar. * * American Smelting & Refining Co. New York American Rolling Mill Co. Middletown, Ohio Borg-Warner Corp., Chicago, Ill Michigan Bell Telephone Co. Detroit, Mich 15,000 15,000 * Inland Steel Co., Chicago, Ill None Dec. * * Boston & Maine Railroad, Boston, Mass American Car & Foundry Co. New York, N. 15,000 15,000 6.58 * Los Angeles, Cal None Dec. * Southern California Telephone Co $ 7.74 * Virginia Public Service Co., Alexandria, Va. Burlington Mills, Inc., Greensboro, N.C participating 15,300 3 Anaconda Copper Mining Co. Butte, Montana Postal Telegraph Cable Co. New York, N. Y Todd California Shipbuilding & Richmond Shipbuilding Corp., Richmond Cal Average deduction per employee 14 47 6 4 48 3 12 2 11.74 7.32 6.83 3.59 (continued) Office of the Secretary of the Treasury, Division of Research and Statistics. Data not available. April 15, 1942 370 Operation of Payroll Savings Plans in Companies Having 5,000 or More Employees (Continued - 7) Name and address of company Yellow Truck & Coach Manufacturing Co Pontiac, Mich R. C. A. Manufacturing Co. Inc. Camden Electric Auto-Lite Co., Toledo, Ohio Continental Baking Co., Inc. New York, N. Hudson Motor Car Co., Detroit Mich First National Stores, Inc. Somerville, Mass. Proximity Manufacturing Company and Subsidiaries, Greensboro, N.C Winchester Repeating Arms Co., New Haven ,Conn R.J. Reynolds Tobacco Co. Winston-Salem N.C. Weirton Steel Corp. Weirton, W.Va Travelers Insurance Co. Hartford, Conn Atlantic Refining Co. Philadelphia Pa Ohio Bell Telephone Co., Cleveland, Ohio of Number of report employees latest Mar. Dec. Feb. Feb. Feb. 12,468 12,464 12,026 12,011 None 12,011 12,000 None None 12,000 12,000 Feb. Feb. Mar. Feb. Feb. 11,972 11,831 11,780 11,700 11,650 Percentage of employees participating Percentage of salary deducted for employees participating 23 6 70 3 33 57 4 22 8 Average deduction per employee participating $ 11.07 5.16 4.46 6.78 19.65 . * * * Month 44 79 24 507 17 7 5.04 7.79 5.58 10.34 John Hancock Mutual Life Insurance Co Boston, Mass Nickel Plate Road, Cleveland, Ohio Koppers Co. Pittsburgh, Pa Brewster Aeronautical Corp. Long Island City, N. Y ( Jan. Jan. Feb. 11,555 11,528 11,474 15 Feb. 11,374 48 Feb. 11,350 11,314 11,314 11,303 11,267 88 Allegheny Ludlum Steel Co Leechburg Pa E. G. Budd Manufacturing Co. PhiladelphiaPa. Loew's Inc. New York, N.Y Hoover Co. North Canton, Ohio Hercules Powder Co., Wilmington, Del Mar. Colorado Fuel & Iron Corp. Denver, Colo Lehigh Valley Railroad Co. New York, N. Feb. Feb. & Ill Owens-Illinois Glass Toledo, Ohio Bell Swift Company, Chicago, Co., Aircraft Corp., Buffalo, N.Y None None None None Dec. Dec. 11,204 11,184 11,060 11,006 11,000 * 4 37 3 5 6 7.45 4.86 10.11 9.75 * * * * 48 8 89 7 10 3 14.69 9.40 6.73 * 9 9 13.92 (continued) Office of the Secretary of the Treasury, Division of Research and Statistics. . Data not available. April 15, 1942 371 Operation of Payroll Savings Plans in Companies Having 5,000 or More Employees (Continued - 8) Number report employees latest Hardaway Contracting Co. Columbus, Ga Phillips Petroleum Co. Bartleville, Okla Horn & Hardart Co., New York, N.Y Armstrong Cork Co., Lancaster Pa None Feb. None. Mar. Brown & Sharpe Manufacturing Co Providence, R. I Tide Water Associated 011 Co. New York, N.Y. Wabash Railroad Co. St.Louis, Mo Northwestern Bell Telephone Co. Omaha, Neb Philadelphia Transportation Co., Philadelphia, Pa Stone & Webster Eng. Corp. New York N. Y Commonwealth Edison Co., Chicago, Ill Virginia Engineering Co. Newport News, Va Libby-McNeill & Libby, Chicago, Ill Potts & Callahan Contracting Co., Inc Baltimore, Md Federal Cartridge Co., New Brighton, Minn United Shoe Machine Corp., Boston, Mass Warner Bros. Pictures, Inc. New York, N. Y Grumman Aircraft & Engine Corp. Bethpage, L. I., N. Gary Sheet & Tin Mill, Gary, Ind H. J. Heinz Co. Pittsburgh, Pa of 10,835 10,588 10,585 10,583 3 Mar. 10,500 Feb. Feb. Feb. 10,471 10,450 10,437 None 10,362 Feb. Mar. Feb. 10,150 10,143 10,081 10,080 None 10,000 None Feb. 10,000 10,000 10,000 None 10,000 None None None None Percentage of employees participating participating 38 6 35 42 Average deduction per employee participating 11.14 6 5.92 4 13.86 4 24 3 52 5 8.34 5.10 6.19 . * * * * 97 7.75 4 . . . Consolidation Coal Co., New York, N. Y Todd-Bath & Iron Shipbuilding Corp. South Portland, Maine Feb. 10,000 10,000 9,998 Feb. 9,900 16 Scovill Manufacturing Co., Waterbury, Conn Mar. Jan. 9,809 9,800 74 Seattle-Tacoma Shipbuilding Corp. Seattle, Washington Celanese Corp. of America, Cumberland, Md Mar. Mar. 9,702 9,674 10 * * * 20 * * * 6 5 4 7.57 7.50 8.04 * , Marshall Field & Co. Chicago Ill Percentage of salary deducted for employees * Name and address of company of 7 Month 82 9 18.98 4.45 (continued) Office of the Secretary of the Treasury, Division of Research and Statistics. . Data not available. April 15,1942 372 Operation of Payroll Savings Plans in Companies Having 5,000 or More Employees (Continued - 9) Name and address of company Month of latest report General Baking Co., New York, N.Y Magnolia Petroleum Co. Dallas, Texas Pittsburgh Coal Co., Pittsburgh, Pa Spring Cotton Mille, Lancaster, S.C Murray Corporation of America, Detroit, Michigan Detroit Edison Co. Detroit Mich Proctor & Gamble Manufacturing Co Cincinnati, Ohio Kraft Cheese Co Chicago, Ill Bibb Manufacturing Co., Macon, G None Number of employees Percentage of employees participating Feb. Feb. None 9,614 9,440 9,400 9,364 Feb. 9,325 66 9,300 33 Mar. None Feb. Feb. 9,269 9,200 9,187 Percentage of salary deducted for employees participating Average deduction per employee participating . * 38 6 10 3 4 6 10.68 3.94 9.51 12.19 * * 49 3 35 8 4.67 6.04 Burroughs Adding Machine Company, Detroit, Michigan Reliance Manufacturing Co., Chicago, Ill None J. L. Hudson Co., Detroit, Michigan Feb. Mar. 9,172 9,120 9,117 9,100 Feb. Jan. 9,057 9,000 Mar. 8,886 None 8,850 8,817 8,805 8,751 Dow Chemical Co., Midland, Michigan Feb. 70 28 24 2 4 4 5.32 9.83 4.43 Cities Service 011 Company, Pepperell Manufacturing Co. Boston, Mass Curtiss-Wright Aircraft Corporation, Robertson, Mo * * * * Bartlesville, Okla 25 8 13.75 McNeil Construction Co. & Zoss Construction Co., San Diego, Cal Pittsburgh Steel Co., Pittsburgh, Pa Bond Stores, Inc. New York, N.Y National Cash Register Co., Dayton, Ohio Mar. Mar. Mar. * 31 . 7.05 4 * 99 3 7.20 (continued) Office of the Secretary of the Treasury, Division of Research and Statistics. Data not available. April 15, 1942 373 Operation of Payroll Savings Plans in Companies Having 5,000 or More Employees (Continued - 10) Month Denver, Colo John Morrell & Co. Ottumwa, Iowa Underwood Eliott Fisher Company, Inc New York, N. Y Texas & Pacific Railway Co., Dallas, Texas Missouri-Kansas-Texas Railroad Co. St. Louis, Mo Olympic Commissary Co. Chicago, Ill General Mills, Inc., Minneapolis, Minn Hudson Coal Co., Scranton, Pa International Correspondence Schools, Scranton, Pa G. C. Murphy Co., McKeesport, Pa Chase Brass & Copper Co.; Inc. Waterbury, Connecticut Studebaker Corp., South Bend, Ind White Construction Co., Inc. New York, N.Y. West Virginia Pulp & Paper Company, New York, N. Y Peabody Coal Company, Chicago, Ill Denver & Rio Grande Western Railroad Company, Denver, Colo. Otis Elevator Co., New York, N. Y & Coal & Iron Delaware & Hudson Railroad, Albany, N. Y report employees latest None of Percentage of employees participating Percentage of salary deducted for employees participating Average deduction per employee participating 8,732 $ Feb. Feb. 8,726 8,697 41 5 None 8,647 Feb. 8,618 Feb. Feb. 8,577 8,570 8,510 Feb. 8,500 None None 8,500 8,490 Feb. 8,475 None None 8,349 8,279 Jan. Jan. 8,259 8,228 Mar. Feb. 8,200 8,147 15 Mar. 8,110 97 Feb. 8,070 19 None 6.16 5.69 5 86 17 9.40 6 24 7.06 4 * * 8.14 4 7 * * * Goodyear Tire & Rubber Co. Akron, Ohio Mountain States Telephone & Telegraph Co Number . Name and address of company of 41 67 4.28 2 Lung 3 The Philadelphia Company, Philadelphia, Reading Pa 4 10.32 11.82 4.26 6.86 (continued) Office of the Secretary of the Treasury, Division of Research and Statistics. Data not available. April 15, 1942 374 Operation of Payroll Savings Plans in Companies Having 5,000 or More Employees (Continued - 11) Name and address of company Month of latest report West Point Mfg. Co. West Point, Georgia D.Juilliard & Co.,Inc., New York, N.Y Consolidated Steel Corp. Orange, Texas Grand Trunk Western Railroad Co., Detroit, Michigan Mar. Jan. Mar. Number of employees 8,070 8,063 8,042 Feb. 8,014 Feb. 8,000 8,000 7,893 7,866 Percentage of employees participating Percentage of salary deducted deduction participating participating for employees Loose-Wiles Biscuit Co., Kansas City, Mo Bausch & Lomb Optical Co., New York, N.Y Ryan Stevedoring Co. Inc., Mobile, Alabama, Aetna Life Insurance Co. Hartford, Conn J. I. Case Co., Racine, Wisconsin Agiwilines, Inc. New York, North River, N.Y. Great Lakes Steel Corp., Detroit. Mich Anchor Hocking Glass Co. Lancaster, Ohio Link Belt Co., Chicago, f11 Eaton Mfg. Co., Cleveland, Ohio None Feb. Feb. Feb. None None Mar. Feb. None 7,805 7,800 7,778 7,723 7,678 Feb. Mar. Feb. Feb. 7,655 7,584 7,574 7,557 7,544 Dec. 7,544 None None 7,537 7,526 None None None None 7,500 7,497 7,484 7,428 Mar. 7,413 Worthington Pump & Machine Corp Harrison, N. J Pennsylvania Power & Light Co. Allentown, Pa National Supply Co. Pittsburgh, Pa Moore Drydock Co., Oakland, Calif United States Gypsum Co., Chicago, Ill P. Lorillard Co., New Brands, New Y Standard Inc. Inc. York, York, N. N. Y Northrup Aircraft Mfg. Co. Los Angeles, California per employee 11 6 $ 79 8 15 5.21 17.81 6.86 Union 011 Co. of California, Los Angeles, California Walworth Co., New York, N. Y. American Thread Co., New York, N. Y Crown Zellerbach Corp. San Francisco, Cal Average 11 3 74 15 5 6 18 4 5.62 5.90 9.90 6.01 * * * * 29 2 * # 88 32 6 2 51 74 LNO . 3.84 * 10.96 2.57 10.51 11.13 . * * * # * . 6 13.97 * * 28 (continued) Office of the Secretary of the Treasury, Division of Research and Statistics. Data not available. April 15, 1942 375 Operation of Payroll Savings Plans in Companies Having 5,000 or More Employees (Continued - 12) Month Name and address of company Minneapolis, St. Paul & Sault St. Marie Ry. Co., Minneapolis, Minn Spiegel, Inc., Chicago, I11 Paramount Pictures, Inc., New York, N. Y Walgreen Co. - Illinois, Chicago, I11 Tennessee Eastman Corp., Kingsport, Tenn Kahn & Feldman, Inc., New York, N. Y Monsanto Chemical Co., St. Louis, Mo Commercial Investment Trust, Inc. New York, N. Y Kelsey-Hayes Wheel Co. Detroit, Mich American Brake & Shoe Foundry Co., New York, N. Y Delta Shipbuilding Co., Inc., New Orleans, Louisiana Electric Boat Co., Groton, Conn Philadelphia Electric Co., Philadelphia,Pa. American Steel Foundries, Chicago, Ill Johns-Manville Prod. Corp., New York, N.Y. of Number of report employees latest Feb. Feb. None Feb. Mar. None Feb. Berkshire Knitting Mills, Wyomissing, Pa Fairbanks-Moree & Co., Chicago, Ill Lehigh Valley Coal Co. Wilkes-Barre, Pa John A. Roebling Sons Co. Trenton, N. J E. R. Squibbs & Sons, New York, N. Y. 6.68 5 None 7,200 7,200 7,196 7,177 7,140 Feb. 7,062 None None 7,000 7,000 7,000 7,000 7,000 None Mar. None 9.06 7 7,200 Feb. 6.62 3.60 5 . Mar. None 6 22 7,200 7,125 7,109 7,073 participating * None Jan. participating Average deduction per employee $ 52 None for employees 34 7,230 Mar. Percentage of salary deducted 70 Mar. Feb. St. Louis, Mo participating 65 National Lead Co. New York, N. Y St. Louis Southwestern Ry. Lines, employees 7,285 None Wisconsin Telephone Co., Milwaukee, Wis 7,318 7,310 7,293 of Feb. Simmons Co New York, N. Y H. L. Green Co., Inc. New York, N. Y 7,405 7,400 7,391 7,359 Percentage 22.14 14 18.16 oz . 90 34 9.54 6 * . 4 4.66 * * * # * 4 6.98 37 * 72 3 15 * 5 3.07 8.32 * * * * # * 28 6 11.22 * (continued) Office of the Secretary of the Treasury, Division of Research and Statistics. Data not available. April 15, 1942 376 Operation of Payroll Savings Plans in Companies Having 5,000 or More Employees (Continued - 13) latest report Jan. 6,985 6,984 6,950 6,909 6,843 None Feb. The Stanley Works, New Britain, Conn Western Pacific Railroad, San Francisco, California Fuller Company, Quonset Point, R. I Southern Cotton 011 Co., New Orleans, La Yale & Towne Mfg. Co., New York, N. Y Feb. Mar. None Feb. Mar. 6,800 6,780 6,757 6,732 6,729 6,696 6,686 Houston Shipbuilding Corp., Houston, Texas, Standard 011 Co. of La. Baton Rouge, La Avondale Mills, Sylacauga, Alabama Feb. Feb. Blaw-Knox Co. Pittsburgh, Pa Feb. 6,550 McLellan Stores Co., New York, N. Y Dec. Feb. Feb. 6,550 6,546 6,540 Arlington Mills, Lawrence, Mass Mar. 6,500 6,500 6,500 6,491 6,464 Cincinnati Milling Machine Co., Cincinnati, Ohio Callaway Mills, Inc.. La Grange, Georgia The Diamond Match Co. New York, N. Y A. 0. Smith Corp., Milwaukee, Wis Bath Iron Works, Bath, Maine Singer Mfg. Co., Elizabeth, N. J participating 43 5 44 6 None None None Dec. Mar. Dec. Average deduction per employee participating 6.52 11.45 & . * 37 6,836 6,640 6,605 6,600 6,568 6,556 Deere & Co. Moline, Ill participating Percentage of salary deducted for employees 11.48 7 None None Hazel-Atlas Glass Co. Wheeling, W. Va employees * * * 64 5.96 . . 13.31 14.41 OR 7 71 6 50 5 34 5 7.95 7.32 2 * 18 5 100 3 48 3 23 * Industrial Collieries Corp. Bethlehem, Pa None employees of . * 9.56 2.61 7.02 * 1.15 * Cleveland, Ohio Feb. Mar. Feb. Percentage 1 Bigelow-Sanford Carpet Co., Atlanta, Ga Westinghouse Air Brake Co., Wilmerding, Pa. Raybestoe-Manhattan, Inc., Passaic, N. J Pure 011 Co., Chicago, I11 Colgate-Palmolive Peet Co., Jersey City,N.J. General Foods Corp. New York, N. Y National Malleable & Steel Castings Co. Number of # Name and address of company Month of * * 12 12 39 30.36 8.88 5 (continued) Office of the Secretary of the Treasury, Division of Research and Statistics. Data not available. April 15, 1942 376 Operation of Payroll Savings Plans in Companies Having 5,000 or More Employees (Continued - 13) Name and address of company of latest report Bigelow-Sanford Carpet Co. Atlanta, Ga Westinghouse Air Brake Co., Wilmerding, Pa. Raybestos-Manhattan, Inc., Passaic, N. J Pure 011 Co., Chicago, I11 Colgate-Palmolive Peet Co., Jersey City, N.J. General Foods Corp. New York, N. Y National Malleable & Steel Castings Co. Cleveland, Ohio Industrial Collieries Corp., Bethlehem, Pa The Stanley Works, New Britain, Conn Feb. Mar. Feb. None Jan. Number of Percentage employees employees 6,985 6,984 6,950 6,909 6,843 of participating Percentage of salary deducted for employees participating 6,836 Feb. None None 6,800 6,780 6,757 Feb. Mar. 6,732 6,729 6,696 6,686 participating 5 44 $ 6 6.52 11.45 . . 37 7 None Average deduction per employee # Month 11.48 . 64 5.96 * * Western Pacific Railroad, San Francisco, Fuller Company, Quonset Point, R. I Southern Cotton 011 Co., New Orleans, La Yale & Towne Mfg. Co., New York, N. Y Hazel-Atlas Glass Co. Wheeling, W. Va Deere & Co. Moline, Ill None Feb. Mar. None None 6,640 6,605 6,600 6,568 6,556 Houston Shipbuilding Corp., Houston, Texas. Standard 011 Co. of La., Baton Rouge, La Avondale Mills, Sylacauga, Alabama Feb. Feb. Blaw-Knox Co. Pittsburgh, Pa Feb. 6,550 McLellan Stores Co., New York, N. Y Dec. Feb. Feb. 6,550 6,546 6,540 Arlington Mills, Lawrence, Mass Mar. 6,500 6,500 6,500 6,491 6,464 Cincinnati Milling Machine Co., Cincinnati, Ohio Callaway Mills, Inc., La Grange, Georgia A. Smith Wis N. Y The 0. Diamond Match Corp. Co. Milwaukee, New York, None Dec. Singer Mfg. Co., Elizabeth, N. J Mar. Dec. Bath Iron Works, Bath, Maine 13.31 14.41 8 71 50 5 34 18 7.95 5 7.32 * . 5 100 3 48 3 9.56 2.61 7.02 . * 23 1.15 1 & . California * * * 12 12 39 30.36 8.88 5 (continued) Office of the Secretary of the Treasury, Division of Research and Statistics. Data not available. April 15, 1942 377 Operation of Payroll Savings Plans in Companies Having 5,000 or More Employees (Continued - 14) of latest report 20th Century-Fox Film Corp. New York, N.Y Graniteville Co., Graniteville, S. Car Ex-cell-o Corp., Detroit, Michigan New River & Pocahontas Consolidated Coal Co., Philadelphia, Pa Chase National Bank, New York, N. Y Pressed Steel Car Co., Pittsburgh, Pa Nashville, Chattanooga & St. Louis Railway Co. Nashville, Tenn Reynolds Metals Co., Inc., Richmond, Va Cramp Shipbuilding Corp., Philadelphia, Pa. Pere-Marquette Railway Co., Detroit, Mich Boston Elevated Railway Co., Boston, Mass General Steel Castings Corp., Eddystone, Pa. Standard 011 Co., Cleveland, Ohio Bridgeport Brass Co., Bridgeport, Conn Consolidated Gas, Electric Light & Power Co. of Baltimore, Baltimore, Md Continental 011 Co., Ponca City, Okla Pan American Petroleum Corp., New York, Timken Detroit Axle Co., Detroit, Mich Philco Corp. Philadelphia, Pa Sheffield Farms Co., Inc., New York, N. Y Solvay Process Co., Solvay, N. Y Western Union, San Francisco, Calif American Radiator & Standard Sanitary Co. Pittsburgh, Pa Air Reduction Co. Inc., New York, N. Y General American Transportation Corp. Chicago, Ill None None Mar. Number of employees Percentage of employees participating 6,455 6,419 6,409 None 6,402 Mar. Feb. 6,400 6,397 56 78 6,374 6,357 6,350 6,344 6,317 13 Mar. 6,316 70 Mar. Dec. Mar. Mar. None 6,300 6,277 6,252 6,250 6,250 Feb. Feb. 6,249 6,201 Mar. 6,200 8 91 Mar. Feb. Mar. Mar. Feb. None per employee participating $ * 6,392 6,376 6,300 6,300 6,300 participating Average deduction # Feb. Jan. Mar. Feb. Percentage of salary deducted for employees 2 Name and address of company . Month 6 5 3 60 8 15 5 96 6 61 4 5 32 4 16 6 19.80 4.28 7.60 5.47 18.86 9.67 6.44 11.15 6.08 10.02 7.59 10.22 . 54 2 40 3 64 4.96 5.42 8.98 2 . 79 . 5 * 8.71 (continued) Office of the Secretary of the Treasury, Division of Research and Statistics. Data not available. April 15, 1942 378 Operation of Payroll Savings Plans in Companies Having 5,000 or More Employees (Continued - 15) Month Name and address of company Long-Bell Lumber Co. Kansas City, Mo Union News Co., New York, N. Y Joseph Horne Co. Pittsburgh, Pa Harbison Walker Refractories Co Pittsburgh, Pa Butler Bros. Chicago, Ill Cluett Peabody & Co. Inc New York, N. Y. Midvale Co., Philadelphia, Pa Elgin, Joliet & Eastern Railway Co., Chicago, I11 Erwin Cotton Mills, Durham, N. Car Holland Furnace Co., Holland, Mich Liggett & Myers Tobacco Co., Inc New York, N. Y Northern Pump Co., Minneapolis, Minn of Number of report employees latest Feb. participating Feb. 6,148 Feb. Feb. Feb. 6,138 6,136 6,135 22 Mar. 6,125 46 Dec. 44 None 6,120 6,120 Mar. Mar. 6,109 6,100 95 Feb. None General Cigar Co. Inc New York, N. Y Radford Ordnance Plant, Radford, Va Rigge, Distler & Co., Inc. Baltimore, Md None None None None Feb. 6,000 6,000 6,000 6,000 5,994 None 5,994 5,987 5,952 5,946 5,946 Waldorf System, Inc. Boston, Mass General Aniline & Film Corp., New York, N.Y. employees Feb. Boeing Aircraft, Wichita, Kansas Norton Company, Worcester, Mass Alabama Drydocks, Mobile, Alabama of 6,200 6,187 6,161 None 6,084 6,058 6,010 6,000 6,000 General Refractories Co., Philadelphia, Pa. Jules Chain Stores Corp., New York, N. Y Percentage None None Mar. Percentage of salary deducted for employees participating Average deduction per employee participating . 91 6.20 5 9.15 3.01 6 19 3 * 9.02 5 3.93 5 4.70 28.05 4 85 9 97 6.36 5 . 67 12.50 6 # . * * * # 60 4.82 3 . R.K.O. Radio Pictures Inc., New York, N. Y. Botany Worsted Mills, Passaic, N. J Lever Bros. Cambridge, Mass Chesapeake & Potomac Tel. Co. Baltimore,Md. Thompson Products, Inc., Cleveland, Ohio Mar. Mar. Mar. Jan. * 94 5 44 2 96 4 20 8 6.40 7.98 5.05 15.60 (continued) Office of the Secretary of the Treasury, Division of Research and Statistics. * Data not available. April 15, 1942 379 Operation of Payroll Savings Plans in Companies Having 5,000 or More Employees (Continued - 16) Month Name and address of company Anaconda Wire & Cable Co., New York, N. Y Campbell Soup Co., Camden, N. J Beech Aircraft Corp., Wichita, Kansas Kimberly-Clark Corp. Neenah, Wis Brown-Bellows-Columbia, Corpus Christi, Texas American Hardware Corp. New Britain, Conn American Chain & Cable Company, Inc. Bridgeport, Conn Curtise-Wright Corp., Columbus, Ohio of Number of report employees latest None Percentage of employees participating Jan. Jan. Feb. Mar. 5,943 5,941 5,936 5,901 5,900 Mar. 5,887 Feb. Feb. 57 62 24 10 * . Jan. Mar. Mar. Dec. Mar. 5,853 5,816 5,813 5,800 5,800 Mar. 5,736 5,700 5,700 5,696 5,670 20 5,660 5,650 5,627 5,621 5,600 22 Mack Manufacturing Corp., New York, N. Y Jan. Fafnir Bearing Co., New Britain, Conn General Cable Corp., New York, N. Y Pocahontas Fuel Co., Inc. Pocahontas, Va Columbia Steel Co.. San Francisco, Calif National City Bank of N.Y., New York, N. Mar. Feb. None of Ga. Remington Rand Central Georgia Co., Railway Elmira, Co. N. Y Savannah, Sherwin-Williame Co. of Ohio, Cleveland, Ohio Stix-Baer & Fuller, St. Louis, Mo None Mar. 7.09 18.85 4 64 Childs Company, New York, N. Y Lit Bros Philadelphia, Pa participating 3.86 3 None None None None Average deduction per employee 12 Oliver Iron Mining Co., Duluth, Minn Western Pipe & Steel Co. San Francisco, Cal. Dun & Bradstreet, Inc., New York, N. Y Pacific Mills, Boston, Mass participating 72 5,871 5,866 5,866 Cutler-Hammer, Inc., Milwaukee, Wis Niles-Bement Pond Co. West Hartford, Conn. Corning Glass Works, Corning, N. Y Spicer Mfg. Corp., Toledo, Ohio Percentage of salary deducted for employees 11.52 8.98 6 42 5 2.36 6.16 21.90 3 26 3 67 9 * 43 16.75 6 22.40 11 * * * * * 9.48 6.25 7 40 3 & . . * 27 3 5.12 . * Mar. 5,600 5,580 None None 5,573 5,569 None 47 3.13 2 * * . (continued) Office of the Secretary of the Treasury, Division of Research and Statistics. Data not available. April 15, 1942 380 Operation of Payroll Savings Plans in Companies Having 5,000 or More Employees (Continued - 17) Name and address of company of Number of report employees latest Savage Arms Corp. Utica, N. Y Alton Railroad Co. Chicago, Ill International Silver Co. Meriden, Conn Consumers Power Co., Jackson, Mich Brewster Aeronautical Corp., Newark, N. J Fairmont Creamery Co. Omaha, Nebraska Lukens Steel Co., Coatesville, Pa Columbia Pictures Corp., New York, N. Y Tampa Shipbuilding Co. Tampa, Fla Virginia Carolina Chemical Corp Richmond, Va Dec. Mar. None Feb. None 5,568 5,560 5,557 5,518 5,500 Feb. Mar. None Feb. 5,500 5,500 5,494 5,457 Percentage of employees participating * 9 Mar. 5,354 44 Jan. 5,343 5,342 5,332 29 Glidden Co., Cleveland, Ohio Bayuk Cigar Co., Philadelphia, Pa Feb. Mar. Mar. Grand Union Co., New York, N. Y Libby-Owens-Ford Glass Co., Toledo, Ohio None Container Corp. of America, Chicago, Ill Nashua Mfg. Co., Nashua, New Hampshire Continental Motor Corp. Muskegon, Mich Hood Rubber Co., Watertown, Mass. Day & Zimmerman, Philadelphia, Pa Maryland Dry Dock Co., Baltimore, Md Mar. Mar. Feb. Feb. None Feb. 5,332 5,300 5,300 5,288 5,286 5,261 5,212 5,200 5,197 5,193 * . * * 3.64 2 8.66 8.27 5.32 1.55 5 34 89 1 43 38 I 4.35 6.00 . 43 79 4 5 * 13 4 7.12 5.97 5.71 * 23 (continued) Office of the Secretary of the Treasury, Division of Research and Statistics. Data not available. 16.07 18 White Motor Co., Cleveland, Ohio American Optical Co., Southbridge, Mass Chesapeake & Potomac Tel. Co. D. C 11.00 * * Strawbridge & Clothier, Philadelphia, Pa Feb. Feb. * 5 57 New Haven, Conn 4.27 3 5.434 5,414 5,400 5,400 5,379 Southern New England Telephone Co participating 7.13 42 None None Mar. None None Rochester & Pittsburgh Coal Co. Indiana, Pa. Average deduction per employee $ 5,449 Ohio for employees participating 19 None Sun Oil Co., Philadelphia, Pa Stewart-Warner Corp., Chicago, Ill Maxon Construction Co. Inc. Dayton, Percentage of salary deducted 5 Month 6 11.09 April 15, 1942 381 Operation of Payroll Savings Plans in Companies Having 5,000 or More Employees (Continued - 18) Month Name and address of company L. Bamberger & Co. Newark, N. J Bell Telephone Laboratories, Inc New York, N. Y of Number of Percentage report employees participating latest Mar. 5,159 Feb. Feb. Georgia Power Co., Atlanta, Ga Jan. 5,152 5,150 5,113 City Ice & Fuel Co. Cleveland, Ohio Feb. 5,106 Jan. Mar. Mar. 5,084 5,058 5,056 Mar. Mar. 5,001 5,000 5,000 Feb. 5,000 None 5,000 5,000 5,000 5,000 5,000 Ford Instrument Co., Long Island City, N.Y. International Business Machine Corp New York, N. Y Otis Steel Co., Cleveland, Ohio Thomasville Chair Co., Thomasville, N. Car. The Bullard Co., Bridgeport, Conn American Shipbuilding Co., Cleveland, Ohio. Annheuser-Busch Brewing Co, St. Louis, Mo. Chicago, St. Paul, Minneapolis & Omaha Railway Co. Chicago, Ill Coca-Cola Company, Atlanta, Georgia None R. R. Donnelley & Sons Co. Chicago, Ill Duke Power Co. Charlotte, N. Car Edison Industries, Newark, N. J Feb. None None None Fruehauf Mfg. Co., Detroit, Mich None Mar. Hanes Knitting Co. Winston-Salem, N. Car Hershey Chocolate Co. Harrisburg, Pa Mar. Jordan Marsh Co. Boston, Mass None McNeil Construction Co. Las Vegas, Nevada. May Department Stores, St. Louis, Mo Mengel Company, Louisville, Kentucky Motor Products Corp., Detroit, Mich None Wm. Filenes Sone Co., Boston, Mass Grantville Mills, Grantville, Georgia Nash-Kelvinator Corp., Detroit, Mich None Feb. None Jan. Jan. of employees participating Average deduction per employee participating $ 4.89 35 22 7 32 9 11 that 22.85 19.52 5.78 . * . 33 4 14 8 20 7 25 9 6 9.74 14.05 16.96 11.09 7.23 # * 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 (continued) Office of the Secretary of the Treasury, Division of Research and Statistics. Data not available. Percentage of salary deducted for employees April 15, 1942 382 Operation of Payroll Savings Plans in Companies Having 5,000 or More Employees (Continued - 19) Month Name and address of company Ohio Coal Co., Cleveland, Ohio Richfield 011 Corp., Los Angeles, Calif Robins Dry Dock & Repair Co. New York, N.Y St. Regis Paper Co., New York, N. Y Southern California Gas Co. Los Angeles, California Union Electric Co. & Subsidiaries, St. Louis, Missouri L. A. Young Spring & Wire Corp., Detroit, Michigan of Number of report employees latest None Mar. None None Percentage of employees participating 5,000 5,000 5,000 5,000 Feb. 5,000 None 5,000 Jan. 5,000 Office of the Secretary of the Treasury, Division of Research and Statistics. Data not available. Percentage of salary deducted for employees participating Average deduction per employee participating $ April 15, 1942 CONFIDENTIAL UNITED STATES SAVINGS BONDS Comparative Statement of Sales During First Twelve Business Days of April, March and February 1942 (April 1-14, March 1-14, February 1-14) On Basis of Issue Price (Amounts in thousands of dollars) : Series E - Total Series F - Banks Series G - Banks Total $ 42,800 $ 48,872 110,316 125,572 184,639 146,937 18,081 77,950 168,372 21,496 94,277 233,511 29,546 147,160 $242,969 $284,144 $410,218 : Series E - Banks $ 36,621 over : March : : Series E - Post Offices : February over : February Percentage of Increase or Decrease (-) March April over : : March : : : April or Decrease (-) March April : : Item Amount of Increase : Sales over : February March -$ 6,179 - 15,256 -$ 6,072 - 59,067 - 14.4% - 12.1 - 32.0 - 21,435 - 65,139 12.7 - 12.4% - 16,327 - 8,050 - 52,883 - 15.9 - 17.3 - 27.9 - 27.2 - 35.9 -$ 41,175 -$126,074 - 14.5% - 30.7% - 3,415 Office of the Secretary of the Treasury, Division of Research and Statistics. April 15. 1942. Source: All figures are deposits with the Treasurer of the United States on account of proceeds of sales of United States savings bonds. Note: Figures have been rounded to nearest thousand and will not necessarily add to totals. 384 CONFIDENT UNITED STATES SAVINGS BONDS Daily Sales - April, 1942 On Basis of Issue Price (In thousands of dollars) Post Office Date All Bond Sales Bank Bond Sales Bond Sales Series E Series E Series F Series G Total Series E Series F Series G $ 2,476 $ 10,517 $ 2,380 $ 9,608 $ 22,504 $ 12,993 $ 2,380 2,999 3,222 2,778 8,264 7,572 9,292 2,119 1,185 1,387 $ 9,608 $ 24,980 7,570 6,235 5,334 17,953 14,992 16,013 11,263 10,794 12,070 2,119 1,185 1,387 7,570 6,235 5,334 20,953 18,214 18,790 4,961 2,958 2,309 2,906 2.730 2,150 13,035 5,722 9,610 9,304 8,052 5,224 2,329 23,391 15,539 17,314 15,974 14,885 8,613 17,996 8,680 11,919 12,210 10,782 7,374 2,329 668 8,027 8,983 6,562 5,715 5,261 2,720 668 8,027 8,983 6,562 5,715 5,261 2,720 28,352 18,497 19,623 18,880 17,615 10,762 4,619 2,513 17,572 6,152 2,432 1,076 8,604 3,333 28,609 10,561 22,192 8,665 2,432 1,076 8,604 3,333 33,228 13,074 $ 36,621 $110,316 $ 18,081 $ 77,950 $206,347 $146,937 $ 18,081 $ 77,950 $242,969 Total April 1942 1 2 3 4 6 7 8 9 10 11 13 14 Total 834 1,142 955 1,573 834 1,142 955 1,573 Office of the Secretary of the Treasury, Division of Research and Statistics. Source: All figures are deposits with the Treasurer of the United States on account of proceeds of sales of United States savings bonds. Note: Figures have been rounded to nearest thousand and will not necessarily add to totals. April 15. 1942. - TO: The Secretary A Certain Warren of O.N.I. saw Harry Anslinger this morning and reported that Lieut. Cormander Spitzel is to be permitted to resign. Orders sending him to Londonderry, Ireland, have been revoked. The evidence may be turned over to civil authorities. pr. FROM: MR. GASTON 386 April 15, 1942. MEMORANDUM To: Secretary Morgenthau From: Mr. Gaston The Intelligence Unit on the request of William Power Maloney, through Elmer Irey, is checking income tax returns for several years of Hamilton Fish for the Department of Justice. The returns of one George Djamgaroff are also being checked. In this connection Maloney has given Irey a very interesting memorandum which shows that in December 1937 Hamilton Fish deplored on the floor of Congress the brutal massacre in October of thousands of Haitians by Dictator Trujillo of the Dominican Republic and in January 1938 he amplified his previous speech, reading articles of condemnation into the record. In February 1939 the Dominican Minister in Washington entered into a contract to employ Djamgaroff for four years at a salary of $50,000 as Director of Propaganda for the Dominican Republic in the United States. Djamgaroff, a White Russian, was a protege of Fish and had Fish's endorsement for the position. In March 1939 Fish went with a delegation of ten persons to visit the Dominican Republic and they were lavishly entertained by Trujillo. In July 1939 Trujillo visited the United States and was guest of honor at a banquet of the Pan-American Society, at which Hamilton Fish was the principal speaker and eulogized Trujillo extravagantly. Djamgaroff's returns indicate that his job lasted for only one year. He accounted for ap- proximately $10,000 of net earnings, charging off the rest to various types of expense, which on the face do not appear too credible. The presumption is created that he may have split with Fish. (mg 387 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE TO FROM Secretary Morgenthau April 15, 1942 Mr. White There is attached a list of memoranda and reports prepared in the Division of Monetary Research during January, February, and March, 1942. 388 Memoranda Prepared in the Division of Monetary Research during January, February and March, 1942 Series of memoranda regarding various aspects of the $500 million loan to China. Revised Outlook for Canadian Exchange Position. Conference on Lend-Lease Purchases of Completed Defense Articles in Canada, January 2. Summary of Mr. Cochran's report on his trip to China. Elimination of Nickel from 5-cent Coin. British Request that the Maritime Commission Purchase Todd Shipbuilding Facilities owned by the British. Conference in the Secretary's Office with Messrs. Murray, Pressman and Reuther of the C.I.O. Reports of the British Ministry of Economic Warfare. Series of Memoranda regarding the Rio Conference. Comparative Statement of Approximate Earnings of Stabilization Fund. Memorandum for Vice President Wallace. British Opinion in Post-War Problems. British Government Finance. U. S. Dollar-Yuan Stabilization Fund. War-production Plan introduced at Rio by Sumner Welles, Wayne Taylor and Warren Pierson. The Control of U. S. Currency outside of our Territory. Tolan Committee Report. 389 -2- Division of Monetary Research British Tax Reserve Certificates. Recent British Financial Developments. Summary of Stabilization Fund's gold transactions. Decision of Mexican Supreme Court on Subsoil Rights. Canadian Labor Problems. Lend-Lease in Reverse. British Reports on Alleged U.S.-British Treasury Negotiations. Transfer of Export Statistics Tabulation to the Department of Commerce. Exports of Possible Use to the Axis. Delivery of Gold from North Africa to Germany. London Press Reactions. TFR-300 Reports on Dr. Soong and Dr. Kung. Exchange Stabilization Agreement with Ecuador. Statements made by deserting Spanish seaman. Status of Stabilization and Gold Purchase Agreements. Comments on Vice President Wallace's letter of February 4. Statement of gold and dollar assets of the United Kingdom. United Kingdom Investments in Argentina. Brazil's Current Position. Payments on behalf of belligerent governments through Stabilization Fund Accounts. Potential visit of Dr. Garcia Montes, Minister of Finance of Cuba. Stabilization Arrangement. Shipment of Gold from Germany to Switzerland. 390 Division of Monetary -3- Research Ecuadoran Stabilization Agreement. The Census of Foreign-Owned Property. The Recent Shift to Earmarked Gold. Alvin Hansen on Full Employment after the War. Control over French Gold at Martinique. Status of Stabilization and Gold Purchase Agreements. Economic Warfare in Latin America - attaching memorandum "Procedure for Carrying out an active program of economic warfare in Latin America". Financial Mission to Honduras. Silver Prices in India. British Economic Reports. ( British Dollar Position in 1942. Digest of proposal for a loan of $30,000,000 by the United States Government to the Chinese Industrial Corp., prepared by Major Evans F. Carlson. Silver Purchase Agreements. Demand Obligations by the Government and Their Presentation for Redemption. Proposed Cuban Central Bank. Use of British Investments in Argentina to Settle Lend-Lease Claims. Memorandum attaching copies of Wheat Agreement and Convention drafted by representatives of Argentina, Australia, Canada, United States and United Kingdom. British Treasury request for information regarding further United States credit to Russia. Revision of Capital Movement Reports. Rationing of Consumer Power. 391 -- Division of Monetary Research Minimumfor Amount Additional Taxation Compulsory Saving Needed FiscalofYear 1943 to Checkor Inflation. British Income Tax on Wage Earners: Criticism of Method of Collection at Source. Export-Import Bank's Unused Loan Capacity. British War Finance. Draft of article for distribution to Latin American newspapers. War Insurance Bill. Property Owners and War Damage Act. War Damage Questions. War Damage Insurance in New Zealand. Should foreigners who are not residing in the United States be permitted to buy Defense Bonds. American Institute. Currency held by the Spanish Foreign Exchange Silver Legislation. The need for more coins in Liberia. Assistance to India with Gold and Silver. Duty on Brazilian Burlap. Exports to Continental Europe. Exports of Furs to Switzerland. Digest Background Report on Territory of Hawaii, received from Mr.ofSnider. Recent Pro-Axis Action in Argentine. Soy-Bean 011 Case. Some salient points regarding China's economic condition, particularly the problem of inflation. Bibliography on War Risk Insurance. 392 Division of Monetary -5- Research S. 2156 - Savings Certificates with Lottery Coupons. Estimated Dollar Expenditures and Receipts of British Empire excluding Canada and Newfoundland. Memorandum of William W. Welsh and Robert M. Hart for Joseph L. Weiner, Division of Civilian Supply War Production Board. Proposed issue of Cuban currency to be backed by gold deposited in the United States. Value States. of British War Materials Available for Purchase by the United The Maria Theresa Thaler. The China Trade Dollar. World Output, United States Imports and United States Industrial Consumption of Silver Since 1939. Net Silver Imports from the Pacific Area 1939 to October 1941. Paper Currency of $100 denominations and over in circulation by denominations 1933 through 1941. Forms of International Currency. The Extent to Which Enemy use of United States Currency Circulating Abroad Can be Prevented. Silver Prices in India. "The Implications of Fiscal Policy for Monetary Policy and the Banking System", by John N. Williams. Withdrawal of Large-Denomination currency. Argonaut Mining Company. Silver Consumption. Adequacy of India's gold and silver reserves. Gold and Silver for India. Payments on Behalf of Belligerent Governments in Enemy Territory. 393 -6- Division of Monetary Research Priorities for Gold-Mining Equipment. Applications Accounts. to transfer $3 million from Swiss to Spanish The Recent Shift to Earmarked Gold. Blocked Funds of Residents of the Latin American Republics. American Institute. Currency held by the Spanish Foreign Exchange Transfer of Dutch East Indian Accounts to the Netherlands Purchasing Commission. Acquisition of Swiss Francs by the Stabilization Fund. Certain Countries.United States Assets of Residents of Latin-American Revised Book on Ecuador. Brazil's Current Position. Uruguay. Criticism of the memorandum from Rockefeller's office on British Investments in Argentina. Use of British Investments in Argentina to settle Lend-Lease Claims. FBI Report on "United States Dependency on South America". Chilean opinion on the United States Economic Program in Latin America. The Treasury's Silver Accounts, the New Five-Cent Piece, and Possible Sales of Silver. A new general policy for Treasury borrowing and for control of credit. Advisability of letting the Cuban peso appreciate. Duties and Privileges of Commercial Banks in the Proposed Cuban Central Bank Law. 394 Division of Monetary -7- Research Mr. Leland Stowe's articles on the Burma Road. Suggestion that OPM or OPA take up the question of Axis goods in the United States. Proposal that silver be shipped to China as a means of assisting China's war effort. American and British loans to China. Silver Exports to the United States from China. China Program and outstanding problems. British China Program. K. C. L1 and the Wah Chang Trading Corporation. Reserve in China against legal tender. British proposals regarding China Loan. Proposal for "Chinese Government Allied Victory Loan, 1942". India's sterling debt declines. A suggestion for Chinese military mission to the United States. Highlights of the conference held by the Institute of Pacific Relations at Princeton, February 28. Status of dollar balances of subsidiaries in Japanese occupied areas of parent firms having an allied or generally licensed nationality. Burma as a supplier of strategic and critical materials. The importance of India commodities to the United States war effort. Employment and Defense Expansion. Economic Effects of the War on Egypt. United States trade and financial policy with regard to the European neutrals. France - Belgian and Polish Cold. 395 -8- Division of Monetary Research Delivery of Gold from North Africa to Germany. Industrial Production and Armament Output in 1942. Germany's Petroleum Position. The Effort. Economic Contribution of the Working Classes to the British War Possibilities for the substitution of other mineral production for gold production in the Union of South Africa. Estimates of British Dollar Receipts and Expenditures for Presentation to Congress. Manner in which American troops abroad are paid. Tabulation class. of Exports of Lend-Lease goods by countries and by Sir Frederick's request that figures on British dollar position not be published. Is British estimate of $140 million for "other goods and services urgent or ineligible under Lend-Lease" reasonable? Comments on Harris' "The Theory of Public Investment". The current prospect of Britain's dollar position. Total Lend-Lease Appropriations to date. Payment for planes from British dollar contracts diverted to United States for our own use or for shipment to Russia. Lend-Lease of Production Facilities to British Colonies. Estimates of value of undelivered materials on British Contract. Estimate of values of aircraft materials diverted from British dollar contracts by the United States Army. British Labor Policy. Gold holdings of the South African Reserve Bank. South African Gold Production 1938-1941. 396 Division of Monetary -9- Research British Food Subsidies. Comparison of Prices and Wages August 1939 and August 1941 with those in first two years of first World War in Great Britain. British Licenses under Trading with the Enemy Act. British Ministry of Economic Warfare Reports. Lord Beaverbrook on the British Political Situation. Budgetary Position of the United Kingdom, Australia, New Zealand, Union of South Africa and British India. British Financial Developments. British Reaction to Income Tax on Wages. British Women's War Work. British Treasury request for information regarding further United States credit to Russia. British Income Tax on Wage Earners: Criticism of Method of Collection at Source. German attempts to obtain control of Allied business properties in Occupied Europe. Recent Pro-Axis Action in Argentina. Provision of Material to Military Intelligence. Developments in the Economic Warfare Board. Vichy France, the main leak in the British Blockade, Exchange Control and Exchange Rates and Exchange Stabilization Funds, for publication in Encyclopedia Brittanica. Memorandum for the Vice President, attaching memorandum on "Significance of the Accumulation of Sterling Balances in London for Post-War Trade Policy" Commodities, Tariffs on which may obstruct our defense program. Canadian Labor Problems. 397 Division of Monetary - 10 - Research Proposed Canadian Loan to Great Britain. Canada's Dollar Position. Possible Political Backfire of Canadian Price Policy. Treasury Interest in Canadian Price Policy. Canadian Government Expenditures. Accumulation of Sterling Balances in London since September 1939. Significance of Soviet-Japanese Fisheries Agreement of March 20, 1942. Portugal as a generally-licensed national. Spain as a generally-licensed national. British Trade Policy toward European Neutrals. Prices of Brazilian Bonds. National Income and Employment, first quarter report, 1942. Steel Company Statistics and Data. The Problem of Hawaii's Food Supply. Bank of Portugal's Request for Gold Transfers. Notes on Argentine Politics and Personalities. Control over Imports and Exports of United States Currency. Proposed Modification of Exchange Article in Venezuelan Trade Agreement. Importation of Silver from Mexico during December. Gold Purchases and Sales by the Stabilization Fund. Banco Central de Chile's Request to Sell Gold to the United States Treasury on Delivery in Santiago, Chile. Transfer of Norwegian Earmarked Gold Account from San Francisco to New York. War Uses of Nickel. 398 Division of Monetary - 11 - Research House Appropriations Committee Hearings on Inter-American Treasury Bulletin. Ecuadoran Stabilization Negotiations. Our Stabilization Agreement with Argentina. Proposed Stabilization Operation with Ecuador. Cuban Request for Silver Certificates. International Stabilization Fund Conference. Cuban Request for Printing of New Currency by the Bureau of Printing and Engraving. Deterioration in Mexican Foreign Exchange Position. Summary of the Report of the Bank of Mexico for the year 1941. British Coinage Policy. Meeting with State Department Officials to Consider Argentine Request for Stabilization Fund Loan and Monetary Agreement. Meeting with Mr. Irogoyen to Consider Requests of the Argentine Government. Memorandum by Mr. Volentine on United States Trade Policy for Latin America. Elections in Chile. Action on Peruvian Shipment of Gold Received from Japan. Peruvian Gold Transaction. Brazilian Rubber. Study on Paraguay. Action on Bolivian Exchange Negotiations. Chilean Opinion on the United States Economic Program in Latin America. Transfers of Swiss-Owned Funds Held in the United States. Switzerland as a generally-licensed national. 399 Division of Monetary - 12 - Research Recent Developments in German War Finance. Granting of Licenses Under the British Trading with the Enemy Act, 1939. The Economic Situation in Palestine. Administrative Organization of the German War Economy. Sweden as a generally-licensed national. Disposition and Control of Currency, Securities and Similar Assets located in the Philippines. Conversion of Plants. U.S.S.R. - Lend-Lease. Soviet Cash Balances. Sweden - Contribution to the Axis. Exports Scheduled for European Neutrals. Alleged Vast Capital Influx into Mexico. Chinese Currency Costs. Alcohol from Cuba. Petroleum Exports. Joint Utilization of Resources by Canada and the United States. War Production Board and Canada. Removal of United States Tariffs as an Aid to War Production. Resumption of Upward Trend of Money in Circulation. Revised Priority Status of Gold and Silver Mines. Post-War Trade Areas and Political Stability. Abrogation of Preference Rating Orders and Canada. European Trade Relationships. Pre-War External Trade of Belgo-Luxemburg Economic Union. 400 Division of Monetary - 13 - Research Report of the Truman Committee, issued January 15, 1942. Employment Trends During 1942: Department of Commerce Report. Approved Trade Applications for Exports to Japan from the United States, reported by FFC between October 31 and December 12. Currency Holdings of Blocked Nations. Russian Funds in the New York District. Total Frozen Assets in the United States, by Major Classes. Companies Engaged in Food Parcel Service in Latin America. Application by Sveriges Riksbank to Permit a Reversal from the Blocked Account of a Danish National to a Swedish Shipping Firm as a Deposit Refund for an Unfinished Contract. Payments under General License No. 5. Exports of Unmanufactured Tobacco from the United States. Trade Relations Between the United States and the Four European Neutral Countries. Fresh Vegetable Imports from Mexico and the Proclaimed List. Control of United States Currency Abroad, with Special Reference to Latin America. Increased Coal Shipments to Portugal. Application to pay dollar check drawn by Banque Nationale Suisse, now held by the Bankers Trust Company of New York. Trade and Economic Informati on: France. Recent Intercepts on Food Parcels. Hungarian General Credit Bank. Use of Dollar Funds by Switzerland in Payment for Spanish Shipping Services. Effectiveness of the Proclaimed List in Latin America. Report of the State Department on Panama Holding Companies. 401 Division of Monetary - 14 - Research Imports ofinUnited States and Foreign Currencies in mail examined New York. Property Holdings of British Nationals. The Korean Problem. German, Italian, and Japanese Aliens entering the United States subsequent to June 1, 1940. United States Investments in Turkey and Turkish Investments in the United States. Application by Du Pont de Nemours to sell goods now on consignment in Belgium to its distributor in Spain. Sugar Consumption in French North Africa. American Participation in the Erection of an Ammunition Plant in Spain. British Applications to Receive Dollars from New York Agencies of Japanese Banks. Book Transfer of Funds by Standard 011, in connection with Norwegian Tax Payments. Communications between Chase National Bank Union, Bank of Switzerland and Banco de la Provincia. Enterprises in which Blocked Nationals have Substantial Investment that have not been required to File Form TFRE-1. Remittances to China. Use of Blocked Dollars to Purchase Diamonds and Pictures. Purchase of Mark and Lire Notes by Stabilization Funds. Dollar Currency Imports to the United States during 1941. Proposal of the International Telephone and Telegraph Company to Dispose of its Property in Spain. Royalty Payments from Blocked Danish Funds. Continental European Trade Developments during 1941. 402 Division of Monetary - 15 - Research Application to Transfer $1,000,000 from the Blocked Account "B" of the BIS to the Blocked Account of Banque Nationale Suisse, Zurich. Earmarking of Gold for the State Bank of Morocco. Dutch Applicati ons to Pay Swiss Firms. Shipment of Food Parcels to the Four Generally Licensed European Neutrals. Application by the British American Tobacco Co., Ltd., to purchase tobacco stocks from its Chinese-Hong Kong subsidiary and make payment in sterling. Import of Japanese Raw Silk from Latin America. Application for Sale of Gas y Electricidad by the Islands Gas & Electric Company. Guebelin and Company. TFR data re Property in Puerto Rico Belonging to Nationals of Spain, Germany, Italy and Japan. Proposal to transfer certain Swedish-Finnish Assets to the United States from Brazil. Furka Corporation. The Business and Organization of the Socony Vacuum oil Company, Inc., Abroad. Deposits and Security Holdings of Nationals of the United Kingdom, reported on TFR-300. Proxy Cases, involving American European Securities Co. & Pictet & Cie. Persons of Japanese Extraction in the Pacific Coast States. Application by Int. Standard Electric Corporation to subscribe to 300 shares of stock of its wholly owned Swiss subsidiary, Standard Telephone et Radio, S.A., Zurich, Switzerland. French Payment of Lawyers Fees in the United States through Offset Method. Interest Payments under General License No. 2. 403 Division of Monetary - 16 - Research Application by the Bank of Indo-China. Sale of Agricultural Machinery by a Swedish to a Swiss Subsidiary of the International Harvester Company. Application by the Bank of America National Trust and Savings Association. Brief Analysis of TFER-1 Reports filed under General License No. 50, December 1941 to February 1942, inclusive. Swiss-American Balance of Payments in 1942. Application by the New York Agency of the Bank of Montreal. Application by the Chartered Bank of India, Australia and China. Portugese and Spanish Foreign Exchange Positions. Dumping Cases Completed: Importation of Ribbon Fly Catchers from Canada. Current Reports in addition to the above: Weekly report on Exports to Russia, Free China, Burma and other blocked countries, as reported to the Treasury. Daily report on transactions in domestic stocks (compiled from S.E.C. figures). Weekly Table: "Balances and Earmarked Gold Held for Foreign Account". Weekly Table: "Net Capital and Gold Movements". Material for monthly Treasury Bulletin. Correspondence: 246 letters replied to. 404 Division of Monetary - 17 - Research In additionistoalso theprepared: above, material falling into the following categories 1. A large number of tables on various items. 2. Reports on conferences in which this Division participates. 3. Participation in preparation of some of the statements and speeches by the Secretary. 405 CODE OF FEDERAL REGULATIONS Title 31 - Money and Finance: Treasury Chapter I - Monetary Offices, Department of the Treasury Part 54 - Provisional Regulations issued under the Gold Reserve Act of 1934, as amended. TREASURY DEPARTMENT Office of the Secretary April 15, 1942 AMENDMENT TO PROVISIONAL REGULATIONS ISSUED UNDER THE GOLD RESERVE ACT OF 1934. AS AMENDED Section 54.4 is hereby amended by changing the defini- tion of the term "mint district* to read as follows: "Mint district* means one of the following areas: The mint district of Philadelphia, which for the purposes of this part consists of the States of Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Maryland, Mississippi, Missouri, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia, and the District of Columbia. The mint district of New York, which for the purposes of this part consists of the States of Connecticut, Delaware, Maine, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Rhode Island, Vermont, and Wisconsin, and Puerto Rico, the Virgin Islands of the United States, and the Panama Canal Zone. The mint district of Denver, which for the purposes of this part consists of the States of Colorado, Iowa, Kansas, Minnesota, Nebraska, New Mexico, North Dakota, Oklahoma, South Dakota, Texas, Utah, and Hyoming. -2The nint district of San Francisco, which for the 406 purposes of this part consists of the States of Arisona, California, and Nevada, and the Territories and possessions of the United States not specifically included in other mint districts. The mint district of Seattle, which for the purposes of this part consists of the States of Idaho, Montana, Oregon, and Washington, and the Territory of Alaska. Montan Secretary of the Treasury. APPROVED: THE WHITE HOUSE, April/S , 1942. 407 APR 15 1942 MEM RANDUM TO THE PRESIDENT: Annexed is a proposed amendment to the Provisional Regulations issued under the Gold Reserve Act of 1934, as amended, which has been signed by me and is submitted for your approval. The proposed amendment changes the definition of "mint district" to delete reference to the mint district of New Orleans, and to incorporate in the districts of Philadelphia and Denver the states now in the New Orleans district. The operations of the New Orleans Mint are being discontinued as a result of the fact that Congress has made no appropriation for such mint for the fiscal year 1943. The proposed action is deemed advisable because under the Provisional Gold Regulations applications for licenses are required to be filed in the mint district in which the applicant's principal place of business is located. s. Secretary of the Treasury. Ro Messenger Brow 4:45 FHIRMA1/10/42 n.m.c. que to Jhompson 408 APR 15 1942 MEM RANDUM TO THE PRESIDENT: Annexed is a proposed amendment to the Provisional Regulations issued under the Gold Reserve Act of 1934, as amended, which has been signed by no and is submitted for your approval. The proposed amendment changes the definition of "mint district" to delete reference to the mint district of New Orleans, and to incorporate in the districts of Philadelphia and Denver the states now in the New Orleans district. The operations of the New Orleans Mint are being discontinued as a result of the fact that Congress has made no appropriation for such mint for the fiscal year 1943. The proposed action is deemed advisable because under the Provisional Gold Regulations applications for licenses are required to be filed in the mint district in which the applicant's principal place of business is located. Secretary of the Treasury. Thirmd14/10/42 Re Messensure Brown 4.45 409 CODE OF FEDERAL REGULATIONS Title 31 - Money and Finances Treasury Chapter I - Monetary Offices, Department of the Treasury Part 54 - Provisional Regulations issued under the Gold Reserve Act of 1934, as amended. TREASURY DEPARTMENT Office of the Secretary April 5. 1942 AMENDMENT TO PROVISIONAL REGULATIONS ISSUED UNDER THE GOLD RESERVE ACT OF 1934. AS AMENDED Section 54.4 is hereby amended by changing the defini- tion of the term "sist district" to read as follows: "Nint district* seens one of the following areas The nint district of Philadelphia, which for the purposes of this port consists of the States of Alabama, Arkenses, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Maryland, Mississippi, Missouri, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia, and the District of Columbia. The sint district of New York, which for the purposes of this part consists of the States of Connectiont, Delaware, Maine, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Rhode Island, Vermont, and Wisconsin, and Puerte Rice, the Virgin Islands of the United States, and the Panama Camal Sono. The sint district of Denver, which for the purposes of this part consists of the States of Colorado, Iova, Kanesa, Minneseta, Nebreska, New Mexico, North Dakota, Oklahoon, South Deketa, Texas, Utah, and Fyoming. 410 -2The sint district of San Francisco, which for the purposes of this part consists of the States of Arisona, California, and Nevada, and the Territories and possessions of the United States not specifically included in other sint districts." The sint district of Seattle, which for the purposes of this part consists of the States of Idaho, Montano, Oregon, and Washington, and the Territory of Alaska. (Signed) M. Jr. Secretary of the Treasury. APPROVED: THE WHITE HOUSE, April , 1942. 411 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE APR 14 1942 TO Secretary Morgenthau E. H. Foley, Jr. Re: Amendment to Provisional Gold Regulations. In view of the discontinuance of the United States mint at New Orleans, Louisiana (by virtue of the fact that Congress has made no appropriation for the operations of such mint for the fiscal year 1943), the Director of the Mint has recommended that the Provisional Gold Regulations be amended so as to delete reference to the mint district of New Orleans and to incorporate in the districts of Philadelphia and Denver the states now in the New Orleans district. In my opinion such action is desirable for the reason that under the Provisional Gold Regulations applications for licenses are required to be filed in the mint district in which the applicant's principal place of business is located. Accordingly, I am submitting a proposed amendment. If you agree, the document should be signed by you and submitted to the President for approval. A proposed memorandum to the President is also attached. Son 7h 412 TREASURY DEPARTMENT WASHINGTON OFFICE OF DIRECTOR OF THE MINT REPLYING QUOTE INITIALS M 0 RANDUM To The Secretary of the Treasury From The Director of the Mint In view of the discontinuance of the United States Mint at New Orleans, Louisiana, which has lately been operated as an assay office, it is necessary to amend Section 4 of the Provisional Regulations issued under the Cold Reserve Act of 1934 so as to delete reference to the mint district of New Orleans and to include the states formerly within that mint district in the districts of other Mints. Accordingly, it is recommended that that part of Section 4 which relates to the definition of "mint districts" be amended to provide as follows: areas: "Mint district' means one of the following "The mint district of Philadelphia, which for the purposes of these regulations consists of the States of Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Maryland, Mississippi, Missouri, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia, and the District of Columbia. "The mint district of New York, which for the purposes of these regulations consists of the States of Connecticut, Delaware, Maine, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Rhode Island, Vermont, and Wisconsin, and Puerto Rico, the Virgin Islands of the United States, and the Panama Canal Zone. "The mint district of Denver, which for the purposes of these regulations consists of the States of Colorado, Iowa, Kansas, Minnesota, Nebraska, New Mexico, North FOR DEFENSE BUY UNITED STATES LONDS INDISTRIES Dakota, Oklahoma, South Dakota, Texas, Utah, and Wyoming. 413 Memorandum to The Secretary of the Treasury From The Director of the Mint Re: Amending Provisional Gold Regulations -2- "The mint district of San Francisco, which for the purposes of these regulations consists of the States of Arizona, California, and Nevada, and the Territories and possessions of the United States not specifically included in other mint districts. "The mint district of Seattle, which for the purposes of these regulations consists of the States of Idaho, Montana, Oregon, and Washington, and the Territory of Alaska." Such amendment provides for the transfer from the New Orleans mint district to the Philadelphia mint district of the States of Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, and Tennessee, and from the New Orleans mint district to the Denver mint district of the State of Texas. In order to afford time for the disposing of equipment, the transferring of materials to other mint institutions, and other operations incidental to the closing of the New Orleans mint, such amendment should be made effective as of April 15, 1942. No operating funds are available for the New Orleans mint after June 30, 1942. for 414 April 15, 1942. Harry White Secretary Morgenthau Please check up on Mr. McCabe of Lend-Lease and see how he's coming along with the money for the English. Thank you. done- 415 APR 15 1942 My dear Ms. Secretary: Control The Division of Foreign Pends/of the Treasury Department has received - applications involving transactions by American- over subsidiaries in Spain, Pertugal, Sweden, Switserland and Turkey. Desisions sometimes have had to be made upon the basis of information inadequate in various respects. In order able its responsibilities under the andAct Executive 8389. the Division better Many to falfillOrder trading Foreign with toofbe Funds the Central should have additional information concerning production by American-evan subsidiaries. It is different that United States Missions in the above five countifies be requested to assertain and transmit the following datas the types, quantities, and values of the output of Americanover subsidiaries in Barepean countries; the types and quantities of exports of these American-over subsidiaries and the countries to which they experts the ratio of the exporte of American-ovaed subsidiaries to the total volume of similar exports supplied the Axis by the ematrics in which the subsidiaries are located; and the types and quantities of imports which the subsidiaries receive from Axis territories. Very truly yours, (Signed) a. Morgentimes ml Secretary of the Treasury The Menorable, The Secretary of State. as Broon 4:45 Photofill n.m.c. file to Thompson 3/11/42 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE March 3, 1942 Mr. E. M. Bernstein Mr. Pehle I suggested to Tasca the other day that a letter be prepared to the State Department urgently asking them to obtain from the United States missions in the neutral countries of Europe definitive information with respect to the amount of the production of American-owned establishments being exported from the neutral countries, with an indication of the amount being exported to such countries. with such information we could canvass the desirability and the effectiveness of attempting to prevent American firms in such countries from manufacturing for export to the enemy. I suggest this matter be expedited. The Dictated to Mr. Tasca's secretary 3/4/42 417 APR 15 1942 My dear Mr. President: I am enclosing report on our exports to some selected countries for the period ending March 31, 1942. Faithfully, (Signed) R. Morgenthan, in Secretary of the Treasury The President, The White House. Enclosure By Messenger Brown 4:45 n.m.c. Copies DD weitinoffice HDW mah 4/8/42 Ret to Secip office 418 April 10, 1942 Exports to Russia, Free China, Burna and other blocked countries, as reported to the Treasury Department during the 11-day period ending March 31, 1942. 1. Exports to Russia Exports to Massia, as reported to the Treasury during the $42,000,000. Military tanks, landplanes and motor trucks were the principal items. (See Appendix 0.) 2. Exports to Free China and Burso eleven-day period ending March 31, 1942 amounted to more than Exports to Free China during the period under review amounted only to approximately $2,000. (See Appendix D.) Experts to Burna during the same period amounted to approxisately 82,000. (See Appendix E.) 3. Exporte to Transe No exports to France were reported during the period under review. 4. Exports to other blocked countries Exports to other blocked countries are given in Appendix A. Mest important were exports to Sweden amounting to about $2,000,000. 419 STRICTLY CONFIDENTIAL NOT FOR PUBLICATION SUMMARY OF UNITED STATES DOMESTIC EXPORTS TO SELECTED COUNTRIES AS REPORTED TO THE TREASURY DEPARTMENT FROM EXPORT DISCLARATIONS RECEIVED DURINO THE PERIOD INDICATED V July 28, 1941 to March 31, 1942. (In thousands of dollars) July as Period ended Karah 20 Period ended Mar. 10 6208,194 $ 28,554 $ 42,435 Pree China 52,635 8,058 2 60,695 Burna 2/ 11,105 3 2 11,110 to S. S. R. France 2/ reupied France Uneccupied Transe 6 2 28 Spain 2,633 Switserland 7,399 Total March 33 Democrica Execution - - - - - - - s/ 7 8 279,283 6 2 26 2,833 273 7,679 13,849 6 2,045 15,900 Portugal 6,932 2 478 7,411 French North Africa w 6,283 Sweden - Treasury Department, Division of Monetary Research - 6,283 April 7, 1942 V Many of the export declarations are received with a lag of several days or more. Therefore this compilation does not accurately represent the actual shipment of a particular week. The longer the period covered, the elever will these figures come to Department of Commerce revised figures. 2 From September 11, 1941 to date - IS is pressured that a large percentage of material listed here, consigned to Borna, is destined for Free China. 2 Includes both Dempied and Unoccupied France through week ending October 40 1941. Occupied and Uncoupled France separated thereafter. Includes Morence, Algeria and Tunisia. Less than 8500. 47742 420 APPENDIX B Exports from the v. s. to Free Chima, Suras and U.S.S.R. as reported to the Treasury Department July 28, 1942 - March 31, 1942 (Thousands of Dollars) Exports to Exports to Free China Burna V July 28 - Aug. 2 Aug. 4 - Aug. . Aug. 11 - Aug. 16 Aug. 18 - Aug. 23 Aug. 25 - Aug. 30 Sept. 2 - Sept. 6 Sept. & - Sept.13 Sept.15 - Sept.20 Sept.22 - Sept.27 Sept.29 - Oct. 4 can 6 - Oct. 11 Oet. 13 - Oct. 18 Oct. 20 - Oct. 25 Oet. 27 - Nov. 1 Nov. 3 - Nov. s Nov. 10 - Nov. 15 Nov. 17 - Nov. 22 Dec. 24 1 Nov. Dec. 29 6 Dec. 8 - Dec. 13 Dec. 15 - Dec. 20 Dec. 22 - Dec. 27 Dec. 29 - Jan. 3 Jan. - 10 24 Jan. 26 - Jan. 31 Job. 1 - Feb. 10 y 20 - 5/ 1 - Mar. 10 - Feb. Her. Feb. 10 Feb. Feb. 20 28 Mar. 10 - Mar. 20 Mar. 20 - Mar. 31 Total U.S.S.R. 395 309 2,735 1,023 4,280 5,217 204 2,281 3,822 110 1,225 5,312 269 4,272 1,672 2,851 1,228 3,239 791 2,337 449 684 2,333 1,157 6,845 401 58 342 88 1,021 1,364 a is 111 8 1 196 35 2 of 1,695 1,073 6,938 4,889 4,853 2,921 2,879 8,058 923 447 Jan. Jan. 12 19 5 Jan. Jan. Jan. 17 - Exporte to 2 63,296 1,054 583 1,924 5.63 4,484 4,552 2,677 3,581 2,436 3,609 123040 4,580 1,829 3,993 8,247 5,874 3,885 9,608 13,315 26,174 28,119 23 2 9,997 279,61 and 2.Figures Thesefor figures aretoinFree part China taken during free copies shipping maifeets. exports theseofweeks include 3. exports to Rangoon which are presuned to be destined for Free China. It is presence that a large percentage of exports to Burea are destined for Free China. 4. Beginning with February 1 figures will be given for 10-day period instead of week except where otherwise indicated. 5-day period 11-day period Treasury Department, Division of Monetary Research April 9. 1942 421 APPENDIX 0 Principal Exports from U. 8. to U. S. a. R. as reported to the Treasury Department during the eleven-day period ending March 31, 1942 (Thousands of Dollars) Total Exports $ 42,435 Principal Items: Military tanks and parts - medium Landplanes - Douglas A-20-0 Motor trucks and chassis Pork, salted and earned Landplanes - Curtiss P-40-E Cartridge brass sheets Dried egge Military tanks and parts - light Explosive shells (75 ma. and deterating fuses) Steel plates, sheets, and stripe Tin plate Metallie eartridges and eartridge links Insulated copper wire Molybdenite concentrates Grinding anchines and parts Name and shoulders Sole leather Explosive shells (37 sa.) Recommissance care (jeeps) - 1/4 ten Seate and shoes 6,226 6,000 3,219 2,179 11801 1,637 1,547 1,531 1,453 1,184 917 893 810 803 79 746 597 marine engines Lard Treasury Department, Division of Monetary Research 500 April 9,1942 422 APPENDIX D Principal Experts from U. 8. to Free China as reported to the Treasury Department during the eleven-day period ending March 31, 1942 (Thousands of Dollars) Total Exports Principal Item: Other industrial chemicals Treasury Department, Division of Honotary Research #2 2 Zip 9. 1942 423 APPENDIX E Principal Experts from U. s. to Burna as reported to the Treasury Department during the eleven-day period ending March 31, 1942 (Thousands of Dollars) Total Exports $2 Principal Items: Saving machine parts Therapeutic apparatus and parts 1 1 Treasury Department, Division of Monetary Research April 9. 1942 ISF/efa 4/8/42 424 APR 15 1942 My dear Mr. Secretary: I am enclosing copy of report on our exports to some selected countries for the period ending March 31, 1942. Sincerely yours, (Signed) A. #orgauthea, me Secretary of the Treasury The Honorable, The Secretary of State, Washington, D. C. Enclosure By Messanser Brown 4:45 n.m.c. HDWsmah 4/8/42 Ret. to being office 425 APR 15 1942 My dear Colonel Donovant I em enclosing copy of report on our exports to some selected countries for the period ending March 31, 1942. Sincerely yours, (Signed) K. Morgenthas, m Secretary of the Treasury Colonel William J. Donovan, Coordinator, Office of Coordinator of Information, Old National Institute of Health Building, 25th and E Streets, N.W., Washington, D. C. Enclosure By Brown 4:45 n.m.c. w hitch office HDW:mch 4/8/42 Ret to Secip office 426 APR 15 1942 My dear Mr. Perkins: I am enclosing five copies of the report on our exports to some selected countries for the period ending March 31, 1942. Sincerely yours, (Signed) 3. Morganthan. m Secretary of the Treasury Mr. Mile Perkins, Executive Director, Board of Economic Warfare, Room 3710, Department of Commerce Building, Washington, D. C. Enclosures By Messenger Brown 4:45 n.m.c. HDWsmah office 4/8/42 Ret. to Secips office 427 TREASURY DEPARTMENT INTER-OFFICE COMMUNICATION DATE TO April 15, 1942 Secretary Morgenthau FROM Mr. Haas 104 Subject: The Export Freight Situation. Lighterage freight in storage and on hand for unloading at New York declined somewhat further to 20,531 cars at the end of last week, as compared with 20,875 cars a week earlier. (See Chart 1.) Additional storage space for 7,960 carloads was available at the end of last week. The decrease in freight accumulation was due to relatively high exports as compared with receipts of freight for export. Exports from New York last week rose to an estimated total of 7,294 cars, an increase of 1,234 over the previous week and the highest since last July. (See Chart 2, upper section.) Receipts of export freight at New York last week increased by 1,229 oars to a total of 6,984 cars. (See Chart 2, lower section.) Receipts at 9 other North Atlantic ports, totalling 4,384 cars, were 56 cars less than in the previous week, while receipts at 6 Pacific ports rose sharply to a new high of 2,964 cars, as compared with 1,797 cars in the previous week. LIGHTERAGE FREIGHT IN STORAGE AND ON HAND FOR UNLOADING IN NEW YORK HARBOR* 1941 1942 CARLOADS CARLOADS Thousands Thousands 24 24 22 22 20 20 18 18 16 16 14 14 12 12 10 10 8 HUILLE JAN 8 MAR MAY JULY SEPT NOV JAN MAR MAY JULY SEPT NOV 1942 1941 Largely export freight. but about 10% represents freight for local and coastal shipment. Figures exclude grain. Office of the Secretary of the Treaser) - of - - Statistics C-303-0 EXPORT FREIGHT MOVEMENT 1942 1941 CARLOADS Thousands CARLOADS Thousands Exports 10 10 9 9 8 8 From New York . 7 7 6 6 5 5 mmm 4 4 3 3 2 JAN HILL +++ MAY MAR SEPT. JULY NOV. JAN. MAR. 2 HUID MAY JULY SEPT. NOV. 1942 1941 CARLOADS CARLOADS Thousands Thousands Receipts for Export 10 10 9 9 8 8 At New York . 7 7 6 6 5 5 N At 9 other North Atlantic Ports .. 4 3 4 3 2 2 I I At 6 Pacific Ports O o JAN. MAR MAY JULY SEPT. NOV. JAN. MAR 1941 MAY JULY SEPT NOV 1942 As estimated from date of general managers' association of New York Association of American Retroods -.--- Office of the Secretary of the Treasury -382-1 430 April 18, 1943. Dear Sussers I promised, as you know, to give you the name of some one is the Treasury who night oil is ea discussions of post-var problems. I should like to designate Dr. Barry D. White to fill this assignment and know that he will be glad to have you call upon his when the time for any meeting of the sert may be not. with cordial regards, Sincerely, (Signed) Heart Honorable Summer Velles, Under Secretary of State, Washington, D. 0. n.m.c. By Message GEF/dbs Divers 9:35 14/17/42 431 April 15. 1942. Dear Mr. Berle: Thank you for your letter of April 13th, which encloses a paraphrase of telegran no. 1697, from the American Embassy at London. I shall be glad to have Dr. Harry D. White attend the meetings, at which 11 10 planned to discuss financial and monetary aspects arising from the relations between the United States and Great Britain with Iran. Sincerely, (Signed) A. Morgentbeu, JWP Honorable Adolf A. Berle, Jr., Assistant Secretary, Department of State, Washington, D. C. filse On white By Messanger GEF/dbs Shey 11:00 RETARY OF STATE DEPARTMENT OF STATE WASHINGTON reply refer to April 13. 1942 My dear Mr. Secretary: I enclose a paraphrase of telegram no. 1697, dated April 8, 1942, from the American Embassy at London, present- ing the British point of view on certain supply, exchange, and payments questions pending with Iran. An important complex of questions in the relations of the United States and Great Britain with Iran appears to be coming to a point where some form of prompt action by this Government will be desirable. I should therefore appreciate it if Mr. Harry White or such other appropriate officer as you may designate could come to this Department at an early date to discuss financial and monetary aspects of the matter. Sincerely yours, For the Secretary of State: Adolf An Berle, Jr Enclosure DEFENSE BUY Assistant Secretary The Honorable Henry Morgenthau, Jr., Secretary of the Treasury. PARAPHA.COM OF TELEGRAM RECLIVED FROM: American Labassy, London, England D.T.: April 8, 1942, 7 p.m. NO.: 1697 Cusaday and Penrose have had informal conversations with Keynes concerning the uttitude of the Iranian Government with regard to the British transactions in Iran and it 10 clear that the british are creatly concerned over the matter. The Iranians are apparently refusing to accept sterling balances and are demunding either that cold or more goods be delivered to Iran or that the local currency shall be appreciated in terms of the pound sterling. Iran is refusial to give local currency in exchange for sterline at present rates, failing this, and accordingly local Iritish transactions LIE encountering serious obstacles. Chipping difficulties are preventing the Lritish from Lot. to any depreciation of sterling in terms of the local sending addit onal goods. The iritish are also opposed currency and to sending gold. Such & depreciation would set & different ratio of exchange between sterling and the dolier in Iran from that preveiling in other countries. Anotler result would be, so far as otl.er Middle Eastern countries are concerned, the establishment of a precedent that would Le undesirable. The ritish also believe that 4 firm stand aust be taken on M.C resent Issues since in any case concessions would Le followed by further Persian demands. The British -8 pect that, following experiences in the last war, one motive behind the present defends is a desire for highly placed persons in the government group to create oppor- tunities of post-wer enrichment for the benefit of these persons. 1th refere ce to merican Lend-Lease aid for Persis which WLS recently announced the British would appreciate cooperation in dealing with the situation. Lord Halifax, according to our understanding, is being informed on tlis question by cable. MATTHEWS 434 you 15. 19th its. P. Hr. District will you please seal the attached cable to the I Section. *For Casefar from the Becrotaty of the Breasury". 191ch 435 To Mr. L. W. Guesday American Babasay London, England From The Secretary of the Treasury Please send at once by air pouch 1942-43 Budget material, including financial statement and White Papers on sources of war finance and taxation of weekly wage earners. HJH-of 4/15/42 436 TELEGRAM SENT LM This telegram must be paraphrased before being communicated to anyone other than a Governmental agency. (BR) April 15, 1942 7 p.m. AMEMBASSY LONDON (ENGLAND) 1593 For Casaday from the Secretary of the Treasury. QUOTE. Please send at ONCE by air pouch 1942-43 Budget material, including financial statement and White Papers on sources of war finance and taxation of WEEKLY wage Earners. END QUOTE. WELLES ACTING (FL) FD:FL:BMcB 437 INCOMING CABLEGRAM From: London Date: April 15, 1942 Federal Reserve Bank of New York, New York #11 Please release approximately 290,000 fine ounces gold from our gold account for sale to U. S. Treasury. Please pay by debit of our account $10,000,000 to Guaranty Trust Company of New York for our account under advice to beneficiary. Please cable balance dollar account after this transaction. /s/ Van Asch Van Wijck Netherlands Government Treasury Received by telephone from+Federal Reserve Bank of New York 11:15 April 15, 1942 kma 8438 438 PARAPHRASE OF TELEGRAM RECEIVED FROM: AMERICAN EMBASSY, BUENOS AIRES TO : Secretary of State, Washington DATED: April 15, 1942, 9 p.m. NO. : 676 CONFIDENTIAL With reference to the Embassy's telegram no. 1223 of October 30, the Embassy has frequently urged in informal conversations with Central Bank officials that import embargoes on products of United States origin be removed on the contention that Argentina's increasingly favorable dollar exchange position would not seem to justify continuation of these restrictions. Yesterday, the Embassy was given definite assurances by the Central Bank, that on or about May 1 not only will all imports from the United States, for which no exchange is now made available, be admitted into Argentina, but that adjustment will be made in the bulk of the exchange rates to extend to products of the United States no less favorable treatment than that accorded to third countries despite the exceptions provided for in the related notes to the trade agreement. ARMOUR eh:copy 4-20-42 439 April 15. 19th w. Livesay Mr. D. W. Fall will you please send the following cable to the American Consul, Calentta, India: "Type treasury. Reference your No. 243. April s. 5 p.m. 1. Precedure outlined is telegram No. 66. February 25. 2 D.S. relative to checks drawn as the treasure of the United States is hereby extented to the Chartered Bank of India, Australia and China, Calcutta. Its New York branch has approved the transfer of these facilities to the Caleutta office. 2. The Chartered Book of India. Australia and China, Calcutta, is hereby designated a depositary of public monies of the United States is order to easey out the procedure is telegram No. 65. February 28. 2 p.a. 3. Please advise the Chartered Bank of India, Australia and China, Calouble. and other Government officials appropriate parts hereof." 440 C 0 P Y TELEGRAM SENT LM April 15, 1942 This telegram must be paraphrased before being 5 p.m. communicated to anyone other than a Governmental agency. (BR) AMCONSUL CALCUTTA (INDIA) 180 From Treasury. QUOTE. Your 243, April 8, 5 p.m. 1. Procedure outlined in telegram no. 68, February 28, 2 p.m. relative to checks drawn on the Treasurer of the United States is hereby extended to the Chartered Bank of India, Australia and China, Calcutta. Its New York branch has approved the transfer of these facilities to the Calcutta office. 2. The Chartered Bank of India, Australia and China, Calcutta, is hereby designated a depositary of public monies of the United States in order to carry out the procedure in telegram no. 68, February 28, 2 p.m. 3. Please advise the Chartered Bank of India, Australia and China, Calcutta, and other Government officials appropriate parts hereof. END QUOTE. WELLES ACTING (FL) FD:FL:IMcB Copy: 11-46-42 TREASURY DEPARTMENT 441 INTER-OFFICE COMMUNICATION DATE April 15, 1942 Chauncey TO Secretary Morgenthau CONFIDENTIAL FOR FROM Mr. Dietrich Registered sterling transactions of the reporting banks were as follows: Sold to commercial concerns 243,000 Purchased from commercial concerns & 7,000 The Federal Reserve Bank of New York sold £20,000 in registered sterling to the New York agency of the Bank of China. Open market sterling held at 4.03-3/4. with no reported transactions. The Cuban peso again improved to close at an offered rate of 7/32% premium. Until two days ago the quotation was 3/32% In New York, closing quotations for the foreign currencies listed below were as follows: Canadian dollar Argentine peso (free) Brazilian milreis (free) Colombian peso Mexican peso Uruguayan peso (free) Venezuelan bolivar 12-7/8% discount .2374 .0516 .5775 .2064 .5295 .2830 On behalf of the U. S. Commercial Company, the Federal Reserve Bank of New York purchased 9,820,000 escudos from the Banco de Portugal at the rate of 24.55 escudos per dollar ($.0407-1/2). The dollar equivalent of $400,000 was credited to the Banco de Portugal's account on the Federal's books. The Banco de Portugal was advised that the escudos would be used only for commercial requirements in connection with purchase of merchandise in the Portuguese Empire for shipment directly or indirectly to the United States. We purchased $10,150,000 in gold from the earmarked account of the Royal Netherlands Government. In order to increase the Stabilization Fund's gold balance, we purchased $3,700,000 in gold from the General Fund through the New York Assay Office. The Federal Reserve Bank of New York reported that the Java Bank shipped approximately $500,000 in gold from Java consigned to the Federal, to be earmarked 442 -2for its account. This gold was apparently shipped from Java just prior to the Japanese invasion. The Netherlands Minister in Washington authorized the Federal to receive and earmark it for account of the Jave Bank. In London, spot and forward silver remained at 23-1/2d, equivalent to 42.67 The Treasury's purchase price for foreign silver was unchanged at 35$. Handy and Harman's settlement price for foreign silver was also unchanged at 35-1/8 We made no purchases of silver today. CONFIDENTIAL A 443 Co or b. 13 BRITISH MOST SECRET (U.S. SECRET) OPTEL No. 124 Information received up to 7 A.M., 15th April, 1942. 1. NAVAL One of H.M. submarines sank a 7,000 northbound tanker south of MESSINA on (?1). The ship in Russian convoy reported in OPTEL No. 120 damaged in air attack has now sunk. Survivors have been picked up from a British ship sunk by explosion off CAPE HATTERAS. 2, MILITARY BURMA, IRRAWADDY FRONT. There has been heavy fighting along the whole front and MIGYAUNGE fell to the enemy on the 13th. There has been some in- filtration northwards but our forces still hold TAUNGDWINGYI. SITTANG FRONT. The Chinese under heavy pressure have withdrawn from SWA to THAGYA about 15 miles further north. An enemy column about 600 strong is via moving northeastwards from TOUNG 00 towards LOI YW/YADO which was reached on the 11th. Some enemy armoured vehicles and about 150 lorries are reported in the MAWLHI area. RUSSIA. There have been small scale Russian attacks in the RZHEV and YUKHNOV sectors. 3. AIR OPERATIONS WESTERN FRONT. 14th. (corrupt group) Bostons bombed a potrer station near CAEN, one hit is claimed and bombs were seen to burst on railway lines and factories. Fighters escorted these bombers and carried out 4 offensive sweeps, 4 enemy aircraft were destroyed, another probably destroyed and 5 damaged. 4 Spitfires are missing. 14/15th. 243 aircraft were despatched - DORTMUND 208, HAVRE 23, aero- dromes 8. 12 aircraft are missing. 5 crashed on land and 2 in the sea, 2 crows safe. 28 R.C.A.F., 16 R.A.A.F. and 7 New Zealand aircraft took part. 5 Canadian aircraft were among the missing. MALTA. On the 13th and 14th a total of 116 enemy aircraft attacked the GRAND HARBOUR and aerodromes. HAL FAR was rendered temporarily unserviceable. 4 enemy aircraft were destroyed and 5 damaged. We lost 2 but there was only 1 casualty to personnel. BURMA. 13th. 27 enemy aircraft caused considerable damage at KENG TUNG (120 miles northeast of NAMSANG). 14th. Tomahawks destroyed 3 enery aircraft on TOUNGOO aerodrome. ANDAMAN ISLANDS. 2 Hudsons attacked 13 flying boats in PORT BLAIR HARBOUR, 1 was left sinking, 2 were set on fire and the rest damaged. 444 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE April 15, 1942 TO Secretary Morgenthau FROM Mr. Kamarck Subject: Shipping Losses (Charts attached) returned 1. Ship sinkings in March totalled 505,000 tons. According to revised figures, losses in February, 1942, were the second highest in the war to date. In February, 603,000 gross tons were lost, compared to 647,000 tone in April, 1941, the peak month of the war. Actually, the daily rate of losses in February was about as great as in April, 1941; the higher total in April being due to a longer month. 2. Total shipping losses of Allied and neutral nations have now passed the 10,000,000 ton mark. Including Axis losses, almost one-quarter of the 1939 world shipping tonnage has been sunk. 3. Although American, British and Canadian launchings in March, 1942, totalling over 400,000 tons, were below ship sinkings, the present rate of launchings surpasses the average rate of losses in the war. Estimated launchings in March were at the rate of almost 5,000,000 tons a year, whereas losses in the war to date have averaged 4,000,000 tons a year.