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DIARY Book 519 April 22, 1942 -B Book Brandt, Mr. See British Purchasing Mission British Purchasing Mission Brandt, Mr. : HMJr sends word to FDR he opposes Brandt as Chairman - 4/22/42 a) Hopkins assumes responsibility of opposition: 519 Page 54,57 See Book 520, page 164 Bureau of Engraving and Printing See Engraving and Printing, Bureau of -CChurchill, Winston Autographs photograph for HMJr - 4/22/42 Clear, Warren J. - Lieutenant Colonel, GSC Far East survey report - 4/22/42 232 364 Cuba See Latin America -DDiamond T Motor Car Company - Chicago, Illinois See Inflation: Excess Profits -EEngraving and Printing, Bureau of Negroes: Cafeteria situation reported to Mrs. FDR in letter from Alvin W. Hall, Director - 4/22/42 203 a) Spingarn visits Bureau - Thompson memorandum 4/27/42: Book 521, pages 100 and 198 Excess Profits See Inflation Exchange Market Resume - 4/22/42 363 Exports Freight Situation - Haas memorandum - 4/22/42 227 -FFar East Survey report by Lieutenant Colonel Warren J. Clear, GSC 4/22/42 Fiji Islands "Bank buying rate for United States dollar notes": Inquiry of American Consul, Suva, Fiji Islands - 4/22/42.. a) See cable from Treasury to American Consul - 4/23/42: Book 520, page 144 (See also Book 521. page 185 - 4/27/42) 364 353 - F - (Continued) Book Financing, Government Conference; present: HMJr, Buffington, Baker, Hadley, Mills, Haas, Murphy, and Bell - 4/22/42. a) Tap issue as proposed by Federal Reserve Page 519 1 Board discussed 1) Reaction at American Bankers Association meeting - 4/24/42: See Book 520, page 262 2) Buffington report on interviews: Book 520, page 353 3) HMJr distinctly dubious: asks that Buffington check with Federal Reserve Board - 4/27/42: Book 521, page 1 b) Raising limit on Series F and G Bonds from $50to $100,000 (Eccles' suggestion) discussed "May Cash Market Financing" - Haas memorandum - 4/22/42. 15 22 War Savings Bonds: Payroll Savings Plan: Conference; present: HMJr, Tickton, Bell, Haas, and Mills - 4/22/42 38 a) 482 firms with over 5000 employees - report on b) McKee (Federal Reserve) consulted 1) Graves told of Federal Reserve Board Committee - McKee liaison representative 42 84 Telegrams to Governors, etc., asking for cooperation 4/22/42 81 Agents - report on - 4/22/42 86 Foreign Funds Control Purposes, objectives, and methods contained in brief presented for first time to New York Court of Appeals 4/22/42. 230 Freight, Export See Exports -IInflation Excess Profits: Excessive Salary Increases: Memorandum on and list of 4/22/42 91,146 (Western Cartridge Company - East Alton, Illinois (Diamond T Motor Car Company - Chicago, Illinois Two conspicuous examples of recent increases in compensation - memorandum - 4/22/42 149 -LLatin America Cuba: Central Bank and Stabilization Fund - second report of American Technical Mission to Cuba for the Cuban Government - 4/22/42 258 -M-Book Page 519 364 McKee, John See Financing, Government: War Savings Bonds Military Reports Far East survey report by Lieutenant Colonel Warren J. Clear, GSC - 4/22/42 British operations - 4/22/42. 365 -NNegroes See Engraving and Printing, Bureau of -0Oil See Petroleum Coordinator, Office of -P Petroleum Coordinator, Office of No position taken on modification of existing depletion allowance as applied to oil and gas 4/22/42 215 Prenosil, Stanley (Member of Cuff Links Fraternity) Miss Tully and HMJr discuss qualifications - 4/22/42.. 49 -RRevenue Revision Petroleum Coordinator, Office of: No position taken on modification of existing depletion allowance as applied to oil and gas - 4/22/42 215 -SSpingarn, Joel See Engraving and Printing, Bureau of: Negroes Speeches by HMJr Broadcast with representatives of Congress of Industrial Organizations, American Federation of Labor, United States Chamber of Commerce, Secretary of Agriculture, Lieutenant Commander O'Hare, etc.: Draft A - 4/22/42 60 B 66 C 74 # # Reading copy - 4/23/42: See Book 520, page 39 a) Guests: Book 520, page 38 -VWar Savings Bonds See Financing, Government Western Cartridge Company - East Alton, Illinois See Inflation: Excess Profits 1 April 22, 1942 10:30 a.m. FINANCING Present: Mr. Buffington Mr. Baker Mr. Hadley Mr. Mills Mr. Haas Mr. Murphy Mr. Bell H.M.JR: Yes, go ahead, Dan. MR. BELL: Well, what we ought to discuss first, I suppose, is the tap issue that has been proposed by the Federal Reserve Board. H.M.JR: All right, I have got that right here. MR. BELL: You have been over the sheets we gave you, I think. The whole Federal Reserve Board seems to be pressing very hard for this, as well as the Federal Reserve Banks, particularly Alan Sproul. I haven't found very many people on the outside that are in favor of it. I think Mr. Eccles - the day he was here and talked about it gave us the impression - I don't think he said definitely, but I think he gave us the impression that the Federal Advisory Board had also approved it, but I understand from members of the Federal Advisory Board that it was not approached, that it was only discussed in very general terms at their meeting. They weren't asked to approve it. There was very little discussion of it except a statement by one or two that they were against it, so they did not have an opportunity of approving it. I have talked to Ecker of the Metropolitan Life, talked to Harrison of the New York Life, and they are 2 -2both very much opposed to the long tap. They are not interested in the short tap. I have talked to some utility people that just happened to drop in. They would be in favor of the short tap, because they claim that they are going to have some funds accumulate as a result of restrictions put on their procurement of supplies, particularly in the maintenance field. They claim they are not going to have normal maintenance, and they will not be able to reinvest reserves for depreciation back in the plant, and they would be interested in this short tap, but I doubt if there would be a lot of money there. Personally I don't see any objection to the short tap. It might get some money, and I don't know that I would object seriously to the long tap, although I am very luke-warm on the thing. I can't figure out in my own mind just what it is going to do to the long market. Of course, it does have a limitation of a million dollars on it, or it is proposed to have a limitation of a million dollars in one year, and it would give you an opportunity to see how it would work before you took the limit off. I am sure the Federal will propose, after it is in operation for a few months - these other gentlemen have been over it as much as I have, and they can speak for themselves. H.M.JR: Dan, I think this whole thing gets down to having a field test. I think again we are talking about something that is highly theoretical, and we haven't got the slightest Idea what the people who have surplus funds - I am convinced they are not very many what they want to buy and I think the sooner that George gets out into the field, the better. MR. BELL: Well, I think that is a good idea, and George did discuss it a little on his previous trip. H.M.JR: I mean George Buffington. MR. BUFFINGTON: I discussed the short tap with about forty-five corporations, and, one, I don't see 3 -3many corporations with this accumulation of deferred maintenance, of those with whom I discussed it. I question also whether many of those corporations have enough idle funds to make it particularly attractive. We haven't made a thorough check of it. On the long tap, -market, I would say, of the insurance companies with whom I talked, would prefer a fixed coupon and fixed maturity rather than a tap issue. I don't know whether you saw those figures of the cash available on those eighty-two insurance companies or not. It was estimated-- MR. BELL: No, I didn't. MR. BUFFINGTON: It was estimated on February 28 at around three hundred eighty-three million. I talked to Mr. Smith of New England Mutual, and he says he thinks it is a little above a billion. MR. HAAS: I will have the figure this afternoon. MR. BELL: You probably are going to have a request, if you put out a tap issue, from the banks to get some issue to them that will not have to go through the market fluctuations. Burgess told you that. H.M.JR: I know. I am not going to - if we are going to do a tap issue, I am certainly not going to give it to the banks. I mean, that is out. If they kick too much, I won't do any tap issue. MR. BELL: Well, this wasn't contemplated, you know, to go to the banks, either one of these. They were eliminated. H.M.JR: If they kick too much, then we won't have any tap issue. I mean, rather than get the banks mad, I would rather not do a tap issue. I think the way to find out is this. I take it that this thing that Eccles wrote here on April 7 is about the way we would do it. I mean, has he described about the way we would do it? MR. BELL: I think so. 4 4- H.M.JR: All right, George and Murphy and the rest of you boys? Is it about the way? MR. HAAS: Which is that? I am not sure if I have seen it. H.M.JR: I hope so. MR. HAAS: Yes, I have seen it. MR. BELL: It is just old now. MR. MURPHY: There are some points of disagreement, but they are not major. H.M.JR: Well, approximately? MR. MURPHY: Approximately. H.M.JR: All right, then the thing to do is let's get out some people - I don't know whether George can do it all. MR. BELL: We can send Mills, probably. H.M.JR: No, I am glad to see Mills, but - he can sit here, but he has got all he can do on this other thing. He has got a big job on this issuing agent business. He is my issuing agent agitator. (Laughter.) MR. BELL: Would it be possible for him to do a little of both? I mean, when he is out for the other-H.M.JR: I don't think so. I think when we get these figures this morning from Tickton, he will have all he can do. I had a call in for the Under Secretary of War, and I couldn't get him, and he passed me this morning and hopped out of his car and walked down with me, and he is sending for General Carter this morning. How is he? MR. BELL: Fine. He is going to have our people over this afternoon to work on a form of letter. 5 -5H.M.JR: The weekly report shows we had four thousand concerns added to our pay-roll deduction plan in one week; and to get these big boys to become issuing agents, it will take all that Mills can do, plus John McKee. So it gets down to Buffington going out as my field tester, and how much help does he need. Now, why can't you take use your security dealers to help you? MR. BUFFINGTON: That is what I wanted to touch on. We will have in a day or two a report of the breakdown of this survey that they made of these ten thousand corporations which I would like to show you, showing the percentage of those corporations who now are borrowing or who have big requirements for additional working capital, which will tell us something, I think. H.M.JR: Well, what I want, Dan, and I think what you want, is this. Today is what, Wednesday? MR. BELL: Yes. H.M.JR: I am ready to let George start out; and if he wants to go - he can go anywhere he wants, I don't care. Let him start tomorrow so he will be back here Monday. He can take these two Federal Reserve tap issues and go out and get the security fellows ready and say, "All right, how much of either one of these pieces of paper can we sell? We want to know, see." And let's do It on the basis - there is no use saying, "How many of you want to buy a billion dollars," " because hell, we wouldn't sell fifty million dollars of that stuff, a hundred million dollars worth of that stuff: I mean, if we kept it down - how much would we sell? I thought every bank in the country would take twenty-five thousand dollars of that last thing. MR. BELL: Sixty-six million we sold of the twentyfive thousand dollars. H.M.JR: It was a disappointment to me. MR. BELL: There were a lot of country banks, of course, who were not much interested in the half percent. 6 -6They want longer bonds and higher coupons. MR. BUFFINGTON: I was wondering about making as broad a check as possible, and I don't want to suggest it unless you feel it is a good thing to do, to use these securities people to make a broad check, or do you think - Dan doesn't. H.M.JR: Why not? MR. BELL: It seems to me you have got too many people trying to learn this thing in the shortest possible time and going around and discussing it. I think if you had a dozen or twenty-five people and tell them what this is all about, and the objections, and the questions we have had on it, then you would get a much better survey. I think if you get a thousand people working on it, you are going to get-- H.M.JR: Well, I want something. You have got Thursday, Friday, and Saturday, see. Now, what can you do? Can you do New York and Chicago? MR. BUFFINGTON: Yes. H.M.JR: What? MR. BUFFINGTON: Yes, sir. MR. BELL: Have you pretty well covered Chicago? MR. BUFFINGTON: No, it has just been very spotty. I talked to seven or eight corporations, and you - I talked primarily to the big ones, and you ought to talk to utilities, insurance people, big ones and smaller cor- porations. That can be done. H.M.JR: What? MR. BUFFINGTON: That can be done by the end of the week. We could also delegate in some of these centers - 7 -7 pick out maybe ten security people if you want to use them. I have no reason to want to use them, but you could take the ten best men in those communities and sit down with them on a program and have them do it very carefully. H.M.JR: Well, if Dan is willing, I am willing. I am saying to you, "Here is a job. You have got all day to plan it." MR. BELL: I would be willing for that, because I think they will understand it, but just to say to a group of security dealers over the country, "Here is a problem. I want you to go out and discuss it--" MR. BUFFINGTON: No, I didn't have in mind, Dan, going that far. MR. BELL: I don't think you will get-H.M.JR: Well, today is the twenty-second. You would be back here on the twenty-seventh. I don't know whether we will be able to do this thing on the fourth or not. We haven't said we will do it on the fourth, have we? MR. BELL: Oh, no. H.M.JR: But you (Buffington) will be back here on the morning of the twenty-seventh? MR. BUFFINGTON: Yes, sir. H.M.JR: And then come back and say - take this tap issue with you. Do you want somebody from the Federal Reserve Board here to go with you? MR. BUFFINGTON: I don't think that is necessary, Mr. Secretary. H.M.JR: All right. MR. BELL: This doesn't necessarily have to interfere with your financing. I don't think it should, because you couldn't get this started. 8 -8H.M.JR: I thought you were going to do this I thought you were going to start this right away. MR. BELL: Well-week. H.M.JR: I thought you might want to do it this MR. BELL: I don't think so. We have got to print securities. That takes some time to get the securities out. You see, we have got no security drawn or anything on this thing. H.M.JR: That never worries me. (Laughter) MR. BELL: No, I think I would do at least the next major financing irrespective of this decision. If we get this started by June first, we will do well. H.M.JR: Well, I think we ought to find out anyway, don't you? MR. BELL: Oh, sure, I think that is the thing to do. H.M.JR: What? MR. BELL: Yes, I do. H.M. JR: Because we have been talking about this thing so much now. New York and Chicago pretty well answers the thing. MR. BUFFINGTON: Yes, I think you would get as broad a cross section in those two cities as anywhere. MR. BELL: You might go to Boston, because if your insurance companies-- MR. BUFFINTON: Well, you get the same thing in New York. MR. BELL: I mean, next week he could do that. Or you could have somebody that you know in Boston do it. 9 - -9 - MR. HAAS: It occurs to me, Mr. Secretary, that if it is not going to be done before the financing, and I kind of agree with Dan that it shouldn't be, it may be unwise to get the people all stirred up on these tap issues. It may cause some holding back on our marketable issues, waiting for something better to come out. You might as well do it right after you do this. H.M.JR: I don't agree with Dan. Supposing there was a tremendous demand for this tap issue. Well then, I might say, "O.K., gents, she is wide open. Buy all you want, the sky is the limit.' If Eccles is right, we would sell four or five billion. MR. BUFFINGTON: George, there is an indication of that-- H.M.JR: Excuse me just a second. Hold your thought. If we don't do it, George, then Mr. Eccles comes back in here Monday or Tuesday and says, "Why don't you do them a tap issue? I will say, "Well, because I can't raise any money that way." Or if he is right, and there are several billion dollars worth lying around, we will get out a tap issue. MR. HAAS: Instead of this? H.M.JR: Yes. MR. HAAS: Oh, I see. H.M.JR: We can give them a postage stamp as a receipt. I am not worrying about printing. MR. BUFFINGTON: As an indication of what you have said, the steel corporation, which I would have expected to have wanted marketable securities were very much interested in this short tap issue, and turned around and subscribed to twenty-five million of the Certificates of Indebtedness, so I don't think that discussion in any way interfered with their interest in the marketable securities. 10 - 10 - H.M.JR: The English sold about two billion dollars in one week. It was "Weapons Week," they called it, through the volunteer plan. I got a letter from Sir Frederick Phillips. They have got a wonderful sentence in there about saving by the volunteer plan and everything else, and I am sending it around to all the boosters for the volunteer plan like Wallace and Eccles, and so forth. They are all getting a copy. But it is a good letter. They call it "War Weapons Week," and then each community adopts a battleship or something. We have been talking about this thing for three months. I want to find out, George - and you can go in with Mr. Bell, and in the communities you can - I want answers in here from the Federal Reserve for the ones you can't cover, give me an estimate, how many billions of dollars are there that we could mop up in tap issues in idle funds. That is what I want, Dan. Where you can't cover it, George, you and Dan write out some telegrams and tell the people in the districts you can't cover to get it. MR. BUFFINGTON: We may, however, use a small number of these securities people for it. H.M.JR: You can do any damn thing you want so long as I have an intelligent report Monday morning, telling me how many millions of dollars there are that would like to be invested in this form of security. That is what I want. But I have got to get Eccles an answer. MR. BELL: Yes. H.M.JR: I have got to give him an answer. And you fix up cables between you and Bell to the rest of this gang, see. MR. BELL: That is all right, but I still am a little worried about the major financing. H.M.JR: That is all right. We will work on it Monday morning. There is no use talking about it today until I get this answer. MR. BELL: No. I don't want to see this thing started in place of the major financing and then have it flop. 11 - 11 - H.M.JR: I didn't say I am going to start it. I don't know. You don't know. Nobody in this room knows. MR. BELL: Well, I don't know anything about the idle funds or how much is available, but I know we are - going to be down to a billion dollars in the balance on May 15. H.M.JR: I will go with you on May 4. MR. BELL: I think it would be a little dangerous to do other types of financing and just rely on them entirely unless we have another program, either Treasury bills or something. H.M.JR: Well, maybe we will have a long tap issue for the idle funds and a five year issue for the banks. MR. BELL: You mean just a marketable issue? H.M.JR: Yes, a five year issue for the banks, and a long tap issue for the non-banks. MR. BELL: Well, I think we ought to have at this time a long bond. H.M.JR: Well, make it a tap issue. MR. MURPHY: Without a limit, Mr. Secretary? H.M.JR: No limit. MR. MURPHY: You are taking a quick dive. MR. BELL: Did you see the frown come up on Murphy's face? (Laughter) (Mr. Tickton entered the conference.) MR. MILLS: Mr. Secretary, going back to Mr. - I don't quite agree with George on this. Even if there are a small number of the investment industries in that, isn't that going to give a very wide circulation to the idea of a tap issue, and maybe interfere with a market issue later on? 12 - 12 - it? H.M.JR: You mean just going out and talking about MR. MILLS: No, if besides him some of the key investment people are brought into it. They are extremely enthusiastic, and when they go out and interview this corporation and that corporation, they could very - might leave some impression that there was this more favorable issue that could damage the market on a larger issue that has to come ahead of the tap issue. H.M.JR: Well, we have got to find out - this thing has been kicking around here now for three months, and the Federal Reserve Board is entitled to an answer from me. I keep asking Bell, "What is a long issue?" and he keeps telling me they are still figuring on it. (Facetiously) That is approximately true, isn't it? MR. BELL: I guess so, yes. H.M.JR: Now I meetwith them Monday, and I say I want to do it just the way we have always done it. And then they say, "Why doesn't Morgenthau take a look at our stuff?" see, so the answer to you and Haas is that when he goes out he has got to be careful and emphasize that this is purely exploratory, and may not be - we may not do it until July. MR. BELL: Ronald Ransom, I think, gave a good expression to it yesterday. He said this tap issue has become an obsession over in the Federal Reserve Board. H.M.JR: Yes, there you are. (Laughter) MR. BUFFINGTON: And you can cover just so much ground with limited personnel. If you want to really cover the ground and get the Secretary an answer, you have got to get enough points to get an answer. H.M.JR: Well, I think these people are raising a very good cautious note. You have got to say, "I don't know whether he is going to do it; he may not do it this 13 - 13 - month; or he may do it in July; or he may not do it at all, but if he did it, what have you got?" MR. BELL: Personally I would like to go ahead with our financing program for the month of May and let George take two or three weeks to go over this thing with outside people. He might give you a tentative report of the number of places he would be able to cover between now and Monday, but I wouldn't stop at that. I would let him cover a lot more in the following ten days. H.M.JR: Well, let him make a cautious trip. O.K.? MR. BELL: Yes. H.M.JR: Now, I would like to talk with Bell, Tickton, Haas, and Mills. MR. BELL: I take it now this ought to delay the decision on "F" and "G" limitations. H.M.JR: Yes. MR. BELL: Because if we go to a tap, I think we shouldn't go to "F" and "G." H.M.JR: I am weakening on raising the limit. I mean, do it. if you are going to do a tap, I think you shouldn't MR. BELL: I think that is the feeling here, too. H.M.JR: Anything else? MR. BELL: Anything about an open market meeting next week? H.M.JR: Let's have one Tuesday. MR. BELL: All right. H.M.JR: We will have it Tuesday at eleven o'clock. Will you tell Stephens outside? 14 - 14 - MR. HAAS: I think, Mr. . Secretary, right after your agenda on financing, something should be done on reserves. I wouldn't do it before this financing, but I would certainly do it before the next one. MR. BELL: That is right. I have both the Federal Reserve Board and the Federal Reserve Bank studying it to see whether or not something shouldn't be done in Chicago and New York. H.M.JR: You don't want to do it before? MR. BELL: I don' t know that it is necessary. You still have two billion eight reserves. H.M.JR: All right. Now let me see, if those people that I named will stay. George, you go over your trip with Bell. He will be here, only five minutes. 15 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON OFFICE OF THE CHAIRMAN << April 7. 1942. To From - - Mr. Bell Mr. Ecoles As you suggested, I am sending you herewith the letter addressed to the Secretary about which I spoke to you on the telephone this afternoon in connection with the suggestion that the limit on Series F and G bonds should be raised from $50,000 to $100,000. Tise Enclosure 16 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON April 7. 1942 Dear Henry: In reply to a request from Mr. Bell, I - submitting views on the suggestion that the limit on Series F and G bonds should be raised from $50,000 to $100,000. I feel certain that the members of the Board as well as the Presidents of the my Reserve Banks would agree with my position, since my views are in line with one aspect of the communication sent to you on January 28, 1942. A copy of this communication is enclosed. I think that the question of increasing the limit on F and G bonds should be deferred pending decisio about the longterm non-marketable issue which the Federal Reserve has proposed. The reasons for this position may be summarized as follows: (1) The 2 1/2 per cent rate carried by 12-year F and G bonds is a subsidy rate designed primarily for small savers. Fifty thousand dollars is certainly not too low a limit for this type of saver. (2) The issue proposed by the Federal Reserve would extend the maturity to eighteen years and remove the subsidy feature. It could, therefore, have a much higher limit. In fact, the million dollar limit proposed could later be raised or removed. The proposed issue would, therefore, go much farther in meeting the investors' demand than would an increase to $100,000 for F and G bonds. (3) The 18-year 2 1/2 per cent non-market issue we propose would compete much less with long-term open-market issues which you may wish to offer from time to time. Twelve year 2 1/2 per cent bonds of the F and G type, if the limit be raised to $100,000, would definitely compete with open-market issues. The 18-year issue we propose, on the other hand, would be at 2 1/2 per cent much closer to the market and would not compete on a preferential basis with longterm open-market issues. As you know, I am greatly in favor of resorting increasingly to non-market issues. I believe, however, for the reasons stated, that the purpose would be accomplished much more satisfac- 17 Honorable Henry Morgenthau, Jr. -2- April 7. 1942 torily by offering a new 18-year non-marketable issue, with the other features proposed in our memorandum, than by raising the limit on F and G bonds. Sincerely yours, M. S. Eooles, Chairman Honorable Henry Morgenthau, Jr., Secretary of the Treasury, Washington, D. C. Enclosure TREASURY FINANCING 18 The President in his Budget Message submitted to the Congress on January 7 made the following statement con corning "Borrowing and the Menace of Inflation": "Last year, defonso expenditures so stimulated private capital outlays that intensified use of private funds and private credit addod to the inflationary pressure orcated by public sponding. "Undor a full war program, however, most of the in- crosse in expenditures will replace private capital outlays rather than add to them. Allocations and priorities, necessitated by shortagos of material, are now in operation; they curtail private outlays for consumers' durable Foods, private and public construction, expansion and even ro- placements in nondefense plant and equipment. Those drastic curtailments of nondefense expendituros add, there- fore, to the private funds available for noninflationary financing of the Government deficit. "This factor will contribute substantially to financing the tremondous war effort without disruptivo price rises and without necessitating a departure from our low-interestrate policy." This statement will only be berne out by the event if, in fact, private funds diverted from their normal uses are lent to the Government during the war period. It emphasizes the necessity of taking further steps to obtain the maximum amount of borrowed funds from lenders other than commercial banks. Obtaining Borrowed Funds from Lenders Other than Commercial Banks (1) The President's Budget Message indicated that expenditures of the Federal Government during the fiscal year 1942-1943 (beginning July 1, 1942) would be approximately $60 billions. (2) On the basis of the cstimatos given in the Budget Message, including the revenue from proposed now taxes, the Federal debt will increase from $70.6 billion on June 30, 1942, to 3110.4 billion on Junc. 30, 1943, an increase of 339.8 billion. (3) The net public borrowing contemplated in the fiscal your 1942-1943 totals 033.6 billion. (4) Making allowance for possible sales of Defense Savings Bonds under th. present selling program and a not increase over the fiscal your in the amount of tax anticipation notes and depositary bonds outstanding, it appears likely that $20 to 325 billions will have to be obtained by the sale of Government securities to banks end to other lenders and invostors. 2 -- 19 (5) The grave necessity of the Treasury's taking further steps to obtain the maximum amount of these borrowed funds from lenders and in- vestors other than commercial banks is apparent, if fiscal and monetary policy is to contribute its share to the anti-inflation program. It will require more than additional pressure for the sale of the present series of Defense Savings Bonds, important as that is. (6) The principal sources of funds, other than the banking system and the small income purchasers of the present series of Defense Savings Bonds, are: (a) Insurance companies, other institutional investors of various kinds, public bodies, wealthy individuals, trustees, etc. (b) Corporations and other business concerns which, in the aggregate, may now have or may accumulate large idle balances. These two sources of funds must be tapped by the Government, and preferably should be tapped with obligations which have a special appeal for the holders of such funds but which cannot get into the commercial banking system. (7) It is sugrested that an attompt should be mado to roach those funds with two issues, extending the present sories of Defense Savings Bonds, one of longer term for insurance companies and similar long-torm invostors, and one of shorter term for business concerns (and public bodies) with temporarily idle funds. The general features of such offerings might be as statod below. (The exact rates and naturitics of those issues arc, of course, subject to review. We are in agreement that the terms of those offerings should not be inconsistent with existing open-markut rates and maturities having in mind surgested restrictions upon negotiability and other differonoos.) (a) Long-torm issue: Interest rate: 2 1/2%, Maturity: 15 years or thoreabouts, Rodemption At cost valuo with interest adjustment (as in the caso of Series E, F, and G Savings Bonds) on six months' notice ufter bond has been hold for one year, Ne rotiability: Not negotiable in considoration of redemption fcature, Callable: Not callable prior to maturity, Sales Restriction: For the present, limited sale to any one purchaser in any one year, upper limit to be not loss than $1,000,000. 20 -- 3 (b) Short-term issue: Interest rate: Rate of interest 6 months 1 year payments 3/8 5/8 1 1/2 years 2 2 1/2 3 3 1/2 li 4 1/2 Yield 7/8 1 1/8 1 3/8 1 1/2 1 5/8 1 3/2 1 7/8 2 5 0.36 0.50 0.02 0.75 0.87 0.98 1.07 1.15 1.23 1.30 Laturity: 4 or 5 years, preferably 4 years, Redemption: Redeomable -- after held six months, on 60 days' notice at any time, Negotiability Not negotiable, Callable: Not callable, Sales Restriction: Available in unlimited amounts. (8) It is also suggested that there be an immodiate increase in the supply of Treasury bills to at least $2.6 billion (not including tax period bills), which would contribute not only to the fluidity of the money market but would also provide an alternative medium for the temporary investment of idlo public and business balances. With 32.6 billion of Treasury bills outstanding, thoro would still bc an adequate margin of reserve buying power in this market to take care of emergency or temporary financing which it might be desirable or nccessary to accomplish with additional offerings of bills. It is also important that consideration regularly be given to issuing additional blocks of Trousury bills to mature in the three or four days following the quarterly tax payment datos. (9) In so far as it is nocessary to use bank credit in financing the Treasury's needs, money should be sought from banks with short-term opon markut issues, that is, with notes and bonds with maturities not CX- cooding ten years. It may be truo that the breadth of the open market will be somowhat reduced by the sale of the restricted issues suggested above. It is more certainly true that to the extent such sales are successful in obtaining for Government uso funds which otherwise would have lain idlc, the amount of the issues which it will be nocessary to place in the open market will be reduced. On balance, and over a period, it would soon most likely that the successful sale of these restricted issues would be & factor of strength, not of worknces, in the open market. 21 Pattern of Rates (1) Our experience in the last war, the experience of other countries in this war, and our present capacity for the management of the monetary and credit resources of the country, all indicate that this program should not be cast in the old pattern of rising rates of interest as the war progresses. Price control is required in the field of credit, just as in other fields, when the Government is the principal borrower in the market and the cause of its borrowing is the defense of our national existence. (2) It is, therefore, desirable, and the existing situation in the money market and the Government security market makes it practicable, to determine and establish a pattern of rates for United States Government socurities which mill fix, for the present, the general terms of Treasury financing. (3) It is suggested that the range of ratos established by such a pattorn should be, for the present, from 1/4-1/2 to 2 1/2 per cont, for obligations other than Scries E Defense Savings Bonds. The lower limit of the range and the short-torm rates in general could have somo floxibility without disturbing the maximum or long-term rate. The 2 1/2 per cont longtorm rate approximates closely enough the general pattern of rates which has already boon established, and stoors a middle course between the danger of a substantial dcalino in the priocs of outstanding securities on the one hand, and the dangor of an unattractivo program which will not draw the maximum funds from investors and investing institutions on the other. (4) Within the terms of the general financing program we suggest, the ostablishment and maintenance of such a pattern of rates does not require the excessive volume of excess reserves which has characterized recont years. It does contemplate that should excess reserves shrink to a point which endangers maintenance of the pattorn the Reserve System will provide a sufficient volumo of reserves to enable banks to assist the Treasury's financing to whatever extent is necessary. 22 Prepared by: Mr. Robbins Mr. Conrad Mr. Sandelin Mr. Foy Mr. Lindow Mr. Murphy Mr. Haas TO FROM RY DEPARTMENT FICE COMMUNICATION DATE April 22, 1942 Secretary Morgenthau Mr. Haas Subject: May Cash Market Financing Summary and Conclusions In the long run, the Treasury will have to depend primarily upon banks and individuals to purchase Government securities, as these are the only classes of in vestors whose demand may be made sufficiently extensible. A subsidiary source of funds may be unabsorbed depreci- ation reserves, etc., of corporations, but this source does not seem to have developed in an important measure as yet. Insurance companies, mutual savings banks, and other similarly situated classes of investors cannot be important factors in the long run, as their demand for Government securities must be relatively inflexible. For the present financing, the greatest reliance must be placed upon commercial banks outside of New York City. New York City banks are unlikely to make sub- stantial net additions to their portfolios because of their reserve position. The cash position of insurance companies is relatively good, and they may be expected to take a fair amount of the new securities. It would be very difficult to confine the present financing to a single issue. It is recommended that it consist of a 2 percent bond and a 2-1/2 percent bond. In view of the limited amount of non-banking funds avail- able, it is recommended that the 2-1/2 percent bond be for only $750 millions. It 18 not believed that an issue of this size would jeopardize the position of the outstanding 2-1/2's of 1967-72, while a larger issue might do so. The proposal of Dr. Burgess for a serial bond issue and that of Dr. Goldenweiser for accepting all subscrip- tions offered without allotment are considered, but it is not recommended that either proposal be adopted for the present financing. 23 Secretary Morgenthau - 2 I. Funds Available to Purchase Marketable Government Securities A. The Fundamental Situation Prospective purchasers of marketable Government securi- ties may be divided into four broad categories as follows: (1) Commercial banks, (2) Insurance companies and mutual savings banks, (3) Other corporations, (4) Individuals. These groups differ very sharply in their ability to finance the war effort, in the ease with which securities may be sold to them, and in the economic effects of such sales. Chart I shows the amount of marketable Government securities which has been absorbed during the past year by the first and second of these groups, respectively, and by the third and fourth groups combined. (1) Commercial banks. The ability of commercial banks to absorb Government securities is limited only by the willingness of the relevant Government agencies to provide them with excess reserves and, perhaps, capital funds. There are no fundamental difficulties in the way of doing this, provided that the relevant Government agen- cies cooperate for this purpose. There is no question but that the banks will buy as many Government securities as may be required of them if they are told that it is their public duty to do so and if they are provided with the requisite means. The sale of Government securities to banks is highly inflationary, however, unless offset by the liquidation of other assets of the banks or by the accumulation of bona fide savings on their books. The sale of Government securities to commercial banks under existing circumstances is 24 Secretary Morgenthau - 3 essentially a marginal resort, therefore, to be used only to the extent that the securities cannot be placed elsewhere. (2) Insurance companies and mutual savings banks. These institutions have been very impor- tant in the financing of past years. Their ability to absorb Government securities is very inflexible, however. If insurance companies should devote their entire new resources to the purchase of Government securities, they could acquire only about $2 billions a year. The total resources of mutual savings banks are actually declining, 80 that they can increase their holdings of Government securities only by switches or by using idle cash. Trust accounts, eleemosynary institutions, and State and local governments are in essentially the same position as insurance companies and mutual savings banks. Barring some major innovation in the economy -- such as over-all rationing -- the largest amount of net purchases which can be expected from all of these institutions combined will be, perhaps, $3 billions a year. (3) Other corporations. The net absorption porations and by all other investors, including of marketable Government securities by "other corindividuals, during the year ended March 31, 1942, amounted to only about $400 millions, or 7 percent of the total increase in marketable debt (Chart I). Data are not available for a further breakdown of the figures. The month-to-month movement of the figures is very much disturbed by variations in individual and corporate holdings of Treasury bills, largely for tax avoidance purposes. The figures for the complete year (from March to March) avoid this difficulty, however. Non-financial corporations may buy Government securities from three sources: (a) existing idle balances, (b) current business savings, and (c) current accumulations from unabsorbed depreciation reserves, etc. 25 Secretary Morgenthau - 4 The amount of existing idle corporate balances is highly speculative and controversial. The cream of such balances has already been skimmed off for investment in tax notes. The net absorption of marketable Government securities during the past year by all investors other than banks and insurance companies, and the re- sults of the inquiries of the investment bankers in connection with the recent certificate issue suggest, furthermore, that not much reliance should be placed on this source.* Current business savings -- meaning the excess of corporate earnings over taxes and dividends -- are negligible and are likely to * This conclusion is reenforced by the breakdown of subscriptions to the certificate issue. This breakdown is as follows: Class of subscriber Amount subscribed Percent of total (Millions of dollars) Banking institutions 1,815 59 16 All other 485 576 187 Total 3,063 100 Insurance companies Other corporations 19 6 "Other corporations" in the above table include incorporated dealers and other financial corporations. When complete data are available, it will be possible to segregate these and show the subscriptions entered by non-financial corporations alone. 26 Secretary Morgenthau - 5 continue to be so for sometime to come. Accumulations from unabsorbed depreciation reserves, etc., may become substantial during the next fiscal year, but do not appear to be important at the present time. (4) Individuals. Individuals are the only class of investor other than banks potentially capable of absorbing an amount of Government seou- rities equal to the needs of the war effort. Government bond purchases by individuals, furthermore, are non-inflationary unless made from idle funds or from the proceeds of the liquidation of other securities. Purchases of Government bonds by individuals are very hard for the Treasury to secure, however, and to the extent secured, are more likely to be in savings bonds than in marketable securities. Increased sales of Government securities to individuals, therefore, are more likely to decrease the total amount of marketable securities which it is necessary to sell than to absorb a substantial proportion of those sold. Net purchases of marketable Government securities by individuals have been small during the past year, as may be seen from Chart I. B. Funds Available at the Present Time The funds actually now available to purchase an issue of medium- or long-term Government securities issued in the immediate future may be summarized as follows: (1) Commercial banks. The most important factor in determining the appetite of commercial banks for Government securities is their reserve position. Recent fluctuations in the excess reserves of commercial banks inside and outside of New York City are shown in Chart II and recent changes in the Government bond holdings of each of these classes of banks are shown in Chart III. Excess reserves in New York City have continued tight, and New York City banks have continued 27 Secretary Morgenthau - 6 to be a poor market for any securities of longer maturity than certificates. The reserve position of out-of-town banks has also deteriorated somewhat since the last financing. . It is probable, however, that banks outside of New York City still continue to be a good market, particularly for securities in the 2 percent maturity range. The reserve position of the banks must probably be accepted as a datum for this financing. It is highly desirable, however, that action be taken with respect to it shortly after this fi- nancing and well in advance of the next cash financing. (2) Insurance companies and mutual savings banks. Insurance company cash has increased some- what since the last financing, the cash balances of the 36 large life insurance companies reporting to the Treasury amounting to $986 millions on March 31 (Chart IV). Life insurance companies, * Total excess reserves and excess reserves of banks inside and outside of New York City are shown in the following table as of October 29, 1941, the last reporting date before the increase in reserve requirements; November 5, 1941, the first reporting date after the increase in reserve requirements; and April 15, 1942, the most recent reporting date: October 29, 1941 November 5, April 15, 1941 1942 (Millions of dollars) Banks in New York City Banks outside of New York City 1,345 775 722 3,257 2,634 2,164 All member banks 4,602 3,409 2,886 28 Secretary Morgenthau - 7 therefore, may probably be counted upon for a good subscription to the new financing, partioularly if it includes a long 2-1/2 percent bond. Mutual savings banks are in a fundamentally weak position. Mutual savings banks in New York State, holding a little over half of all deposits of mutual savings banks in the United States, lost $157 millions in deposits during the first three months of this year. This is about 3 percent of their total deposits. If this experience is representative, relatively little may be expected from this quarter, except by way of switches. (In February all mutual savings banks acquired $193 millions of the new 2-1/4's of 1952-55, but increased their total holdings of Government seourities on net balance by only $50 millions.) (3) "All other investors". As may be seen from Chart I, "all other investors" (1.e., other than banks and insurance companies) have done better in the last two cash financings than was the case earlier. "All other investors" absorbed about $300 millions of the 2-1/4's of 1952-55 issued in February and kept their holdings of other marketable Government securities about constant. They can probably be counted upon to do as well or better this financing, particularly if it includes a long-term 2-1/2 percent bond. 29 Secretary Morgenthau - 8 II. Some Technical Problems As the amount of Treasury financing in prospect is 80 much larger than anything for which there is precedent, it has naturally called forth a large number of suggestions for new methods of handling it. Most of these suggestions deal with present or proposed issues of non-marketable securities, and so are beyond the scope of this memorandum. It seems, however, that consideration should be given here to two important suggestions which have been made with respect to offerings of marketable securities. A. Serial Issues Dr. Burgess has suggested that the Treasury should offer serial bonds. Such issues might have equal annual maturities from 1 to 10 years and would be offered for sub- scription "in strips" -- 1.e., equal amounts of each maturity. No subscriptions would be permitted for individual maturities. Subsequent issues of such bonds might be for a portion of the 10-year period only as, say, 1 to 5 years or 6 to 10 years, but the principle of strip" subscription would be retained. As soon as they were allotted the individual serial maturities would be separable and freely negotiable. Dr. Burgess recommends this method of offering only for issues in the maturity range of from 1 to 10 years, or thereabouts -- 1.e., for issues directed primarily to commercial banks and idle funds. He believes that this method of offering short- and medium-term securities would permit commercial banks to adjust their portfolios much more effectively than they are able to do under the present method of offering. Longer-term issues of marketable securities would continue to be handled as at present. Dr. Burgess' suggestion would, of course, greatly inties traded in the market, but this does not seem to be a major objection. Taken as a whole, the suggestion seems worthy of very careful consideration. It would seem better crease the number of individual issues of Government seouri- to hold it in reserve than to adopt it on the occasion of the present financing, however, since the market seems ready and willing to absorb longer maturities at the present time. 30 Secretary Morgenthau - 9 Another proposal which has been made for the issuance of "serial bonds" would provide that the Treasury offer simultaneously, say, five issues of securities, each with its own maturity and optional call date. Subscriptions could be made to these securities separately rather than in "strips" as in Dr. Burgess proposal. It is maintained, however, that by offering four or five securities simultaneously a better coverage could be obtained of all investor preferences. In essence, such an offering would not be one of "serial bonds" at all. It would merely be a four- or five-way issue. This seems further than it is necessary to go to meet investor preferences. Two out of the past three long-term cash financings have been one-way only; and, for reasons given in the last section of this memorandum, we believe that a two-way issue would be adequate at the present time. B. Proposal To Take All That Is Offered Dr. Goldenweiser has proposed that the Treasury, on its next cash financing, take all the money that 18 offered to it, allotting all subscriptions in full. It would, of course, be necessary to announce this in advance 80 that subscribers could adjust their subscriptions accordingly. It would probably be advisable also to leave an issue of this sort open for a few days. The major advantage claimed for this proposal 18 that it is "realistic". There is at present a sort of pseudoscarcity of Government securities existing at a time when all informed persons know that these securities will soon be available in abundance. An offering allotted in full would dispel this illusion immediately and 80 permit the market to adjust itself to the realities of the situation. There are two major disadvantages of taking such action which would be obtained from such an issue would be indeterminate and would not be known until the books were closed. at the present time, however. First, the amount of money It is much more convenient for the Treasury, as long as it is able to do so, to fix the amounts which it desires to borrow. Second, it appears inevitable that such an issue, 31 Secretary Morgenthau - 10 because of the very fact that it would dispel the illusion of scarcity in the market, would tend to put pressure on interest rates unless it were accompanied by adequate counter-measures. It is probable that the Treasury will ultimately find it necessary to allot future issues of Government securities in full. It seems, however, upon consideration of all factors involved, that it would be better to postpone this date for the time being and continue the present system for a while longer. 32 Secretary Morgenthau - 11 III. Selection of Particular Issues The following table shows the approximate maturities and premiums at which a 1-1/2 percent note, a 2 percent bond, and a 2-1/2 percent bond could be sold at the present time: Estimated Yield Basis* Probable Price (Percent) 1-1/2 percent note 1.33 100-24/32 1.81 101-7/32 2.38 101-29/32 due December 15, 1946 (4 years, 7 months) 2 percent bond due March 15, 1949-51 (6 years, 10 months8 years, 10 months) 2-1/2 percent bond due June 15, 1962-67 (20 years, 1 month25 years, 1 month) Based on closing prices, April 22, 1942. The above table does not include a 2-1/4 percent bond, as it seems desirable that this sector of the market be given a rest. (A 2-1/4 percent bond, if offered, would fall on top of the 2-1/4 percent bond of June 15, 1952-55, offered in February, or, as would probably be preferable, its terms could be altered slightly to make it a distinct issue.) 33 Secretary Morgenthau - 12 Upon the basis of the above figures and the reasoning of the preceding sections of the memorandum, it appears that it would be very difficult to confine this financing to a single issue only. A single 2 percent issue would be streamlined too much for the banks and would ignore other sectors of demand, while sufficient funds do not appear to be available for a single 2-1/2 percent issue. This dilemma was avoided in February by a single 2-1/4 percent issue which straddled both types of demand, but this sector of the market -- a compromise sector, at best -- has now been just hit and deserves a rest. The possibility of a long-term note remains to be considered. A 1-1/2 percent note such as that listed in the table would appear desirable from the standpoint of economy in interest rates. It would seem best, however, to save this section of the market until the reserve position of the New York City banks has been improved. In the meantime, the low yield on long notes serves to buttress the demand for medium-term bonds. On the basis of these considerations, it 18 suggested that the financing be divided into two issues: one of 2 percent bonds, and the other of 2-1/2 percent bonds. In view of the limited amount of non-banking funds available, it is recommended that the 2-1/2 percent bond be for only $750 millions. It is not believed that an issue of this size, on the terms suggested, would jeopardize the position of the outstanding 2-1/2 percent bonds of 1967-72, while a larger issue on harsher terms might do 80. Attachments. 34 Chart I ABSORPTION OF MARKETABLE U.S. SECURITIES, BY CLASSES OF INVESTORS Monthly, March 31, 1941 to Date 1941 1942 DOLLARS DOLLARS Billions Billions +7 +7 +6 +6 +5 +5 Commercial Banks in N.Y.G. +4 +4 Commercial Banks Outside N.Y.C. +3 +3 +2 +2 +I +1 Insurance Companies and Mutual Savings Banks 0 0 All Other Investors I -I -2 -2 MAR MAY SEPT. JULY NOV. JAN. MAR 1941 JULY MAY SEPT. NOV 1942 *Includes Guaranteed Securities Office of the Secretary of the Treasury Deleign Research and Statistics F-237 EXCESS RESERVES INSIDE AND OUTSIDE OF NEW YORK CITY 1940 1941 DOLLARS 1942 Billions 1943 DOLLARS Billions 7 7 6 6 All Member Banks 5 5 Outside of New York City Banks 4 4 3 3 Thin New York City Banks I N 1940 D JASo mm J 0 2 I 2 1941 1942 0NDJFMAMJ o 1943 Office of the Secretary of the Treasury - of - and Station F-236 36 Chart III HOLDINGS OF MARKETABLE U.S. SECURITIES BY COMMERCIAL BANKS 1942 1941 Mar. May July Sept. Nov Jon. Mor. May July DOLLARS Sept. DOLLARS Billions Billions 23 23 Total 22 22 21 21 20 20 19 19 18 18 15 15 14 14 Outside New York City 13 13 12 12 11 11 10 10 9 9 Inside New York City 8 8 7 7 6 6 Mor. May July 1941 Sept. Nov Jan. Mor. May July Sept. 1942 NOTE: The decrease in March is due to the run-off in Treasury bills. Office of the Secretary of the Treasury Division of Research and Statistics F-225-A LIFE INSURANCE COMPANY CASH HOLDINGS 1933 1934 1935 1936 1937 1938 1939 1940 * 1941 1942 1943 DOLLARS DOLLARS MILLIONS MILLIONS 1200 1200 1100 1100 1000 1000 900 900 800 800 yrs 700 600 700 600 500 500 400 400 300 300 200 200 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 *36 LEGAL RESERVE COMPANIES HAVING 82 PERCENT OF TOTAL ADMITTED ASSETS OF ALL UNITED STATES LEGAL RESERVE LIFE INSURANCE COMPANIES. 37 Office of the Secretary of the Treasury of haard - I B 253 38 April 22, 1942 11:00 a.m. DEFENSE SAVINGS BONDS Present: Mr. Tickton Mr. Bell Mr. Haas Mr. Mills H.M.JR: What have you got? MR. TICKTON: I have the information on the "E" flag and the companies - it arrived this morning. We are putting it together by plants and we will have to put it together by companies. We will put it on this table if you will let us have it back. H.M.JR: I don't know whether I will or not. MR. TICKTON: Then we will make it up over again. There are four hundred eighty-two firms over five thousand. We have checked every one of the ones that didn't have a plan and some of them came in with a plan this week. Now, there are nine that don't have the plan. This was all checked by telephone through Ted Gamble's office yesterday afternoon and those - here are the nine companies and this is what they say about them. MR. BELL: All but nine? MR. TICKTON: All but nine companies over five thousand employees have plans. Of those nine companies a couple of them were definite hold-outs. They just won't have any. MR. HAAS: American Tobacco. -2- MR. TICKTON: American Tobacco and Cannon Mills. MR. BELL: Woolworth? MR. TICKTON: No, Woolworth is in. MR. BELL: I don't think so. MR. TICKTON: Well, they claimed it was in. We had to take their word. MR. BELL: New York says it isn't in. H.M.JR: Cannon Mills, I don't get that. MR. HAAS: He has been very cooperative in the past. He sends those orders in and all that. MR. BELL: We might hold up that hundred million dollar issue for American Tobacco on Thursday if they don't come in. (facetiously) MR. HAAS: That is George Washington Hill. H.M.JR: It is down to nine? MR. TICKTON: Down to-- MR. BELL: That is pretty good. MR. TICKTON: The first part of that is by the size of the company. H.M.JR: I want Mr. Bell to have a copy of that. MR. TICKTON: O.K.. That was made this morning. I made ten copies of the one we did last week. H.M. JR: Now this, you see, is where Mills comes in, U.S. Steel, no; Bethlehem, no; Pennsylvania Railroad, no; 39 -3- New York Central, no; and so forth. MR. TICKTON: There are a hundred and thirty-eight of those four hundred eighty who are issuing agents. The rest of them aren't. H.M.JR: How many? MR. TICKTON: A hundred and thirty-eight out of that number. H.M.JR: Well, Mills, just as soon as you get this accounting thing settled, I am willing to send personal telegrams, certainly, to everybody on the first page to install it. That wouldn't be you. No, that isn't you. That is my pay-roll deduction fellow. But-- MR. MILLS: Yes, that is the issuing agents. H.M.JR: Well, you think of a way how to get these fellows in as issuing agents, will you? MR. TICKTON: A few of them are going to come in because we have readjusted our operations so that we will let them keep the duplicate stuff. That was the purpose of that telegram you signed the other day. That helps in many cases. MR. MILLS: Could this be done by Federal Reserve Districts, too? This is nationwide. MR. BELL: I don't think Woolworth is in. MR. TICKTON: I got that from the administrator and the Federal Reserve bank. I have got them both on cards so I can tell you what Federal Reserve Bank and what administrator. H.M.JR: Well, anyway, as of today, what do you think we should do about these nine? MR. TICKTON: Our administrators, you remember, 40 41 -4you sent telegrams to them. You asked Gamble to send telegrams to them last Thursday on the nineteenth, and they have pulled down to nine now, and they are working on these nine. Then I will wait for Gamble. You have got a bigH.M.JR: job to do. MR. MILLS: Just running through the head, the way to do it, if we could get them by Federal Reserve Districts-MR. TICKTON: We have got it. H.M.JR: You will do it by states, won't you? MR. TICKTON: It is already done by states. It is done by states over here. MR. MILLS: Federal Reserve-MR. TICKTON: By districts, we have got the cards all numbered by districts. MR. MILLS: That would help a lot. The Federal Reserve Banks we will probably have in this thing by the - your figures can't be right up to date. You have to count on Federal Reserve reports to them, and then if the Secretary sent out wires he might get out a wire to some where you had already put it in, and you would almost have to check the Federal Reserve districts before a wire went out or they would make a mistake. MR. TICKTON: That is right. The point is that I have got the reports up through Saturday. We - they will be up to date, but-MR. BELL: Mr. Mills should do the Federal, shouldn't he, Mr. Secretary? H.M.JR: Yes. MR. BELL: Because they are in constant touch with 42 April 22, 1942 11:07 a.m. HMJr: Hello. Operator: Governor McKee. HMJr: Hello. Operator: Go ahead. HMJr: Hello. McKee? John McKee: Yeah. HMJr: Morgenthau. Mc: Yeah. HMJr: How are you? Mc: Fine, how are you? HMJr: I'm okay. Do I understand that you're the man who's been designated to help us with getting these various companies to act as issuing agents, who have the payroll deduction plan in? Mc: On all the - in the entire program, yes. HMJr: Yeah. HMJr: I'm Exhibit A. You're Exhibit A. Mc: Yeah. HMJr: Well, now, Bell and I have got Mr. Mills working particularly on this issuing agent Mc: thing, see. Mc: Yeah. HMJr: I'd like him to come over, at your convenience, 43 -2and tell you about where we are and what we' ve been doing in Detroit. Mc: Yeah. HMJr: With the Comptroller General. Mc: Uh huh. HMJr: And then I'd like to keep you posted, and I've given Mills the job of keeping you posted. Mc: Uh huh. HMJr: What time could you see him this morning? Mc: Oh, about eleven thirty? He'll be there. HMJr: Mc: There's some reactions of this I'd like to give to you, which I think you ought to have. HMJr: Right. Mc: There is a field operation going on today that is quite elaborate. What progress it's making is subject to a lot of reactions. HMJr: Yeah. Mc: And I think you ought to have those reactions in your mind. HMJr: Yeah. Mc: I don't think we want to go too far in pressing for results to have people get disgusted with HMJr: Mc: the payroll deduction plan. That's right. Now, you just - that is so much more essential than their ability to qualify as an issuing agent to me, that we ought to go as far as we could, and then if we can't succeed, don't do anything to disturb that relationship. 44 -3HMJr: Mc: That's right. Well So sometime when you've got a few minutes, I think we ought to sit down and I'm going to send you a memorandum that I have over here that you can digest - I'11 give it to Mills so he can give it to you. HMJr: All right. Well, the only thing we feel is thatthis. some of the Fed Banks are a little sluggish on Mc: Yeah. Well, I imagine you'll find that HMJr: We've got a lot of high-powered salesmen over here full of beans and enthusiasm. Mc: Uh huh. Well, you'll find - well, you know HMJr: Mc: the Fed Banks as well as I do. No I don't. Some of them have got some of their pepper left, end and of it.some of them are pretty well at the HMJr: Yeah. Well, Mills will be over there at eleven-thirty. Mc: Okay. I'll be glad to see him. HMJr: And - do I understand that you're tagged with the whole volunteer plan? Mc: No, the presidents are. The presidents' conference - now, let me get you straight on that. HMJr: Yeah, do that. Mc: The presidents' conference appointed a committee on defense savings bonds. HMJr: Yeah. Mc: Which - that committee includes Allan Sproul as its Chairman, A1 Williams of Philadelphia, and Chester Davis of St. Louis. 45 4HMJr: Yeah. Mc: And then they asked the Board to appoint a member as a liaison between your division and them HMJr: Right. Mc: .....to transmit to the field the pertinent to that responsibility at which I sort of work with them. facts. Now, we have some of our staff detailed HMJr: Good. Mc: Now that's your set-up. HMJr: Good. Well, I'll have Mills be over there and give you this thing, and I'd like to keep you more posted and I'd appreciate if you'd do that to me, too. Mc: Fine, fine. Well, we'11 get together and get something out in order to encourage action. I do understand that there's about at least ten men out in the field in the New York district trying to do this one job. HMJr: Fine. Mc: And it. I'11 send you a memorandum of the report on HMJr: Well, of these five hundred companies employing five thousand or more, we've got all but nine now. Mc: That's fine. HMJr: I think it's wonderful. Mc: That's fine. HMJr: Yeah. Mc: Well, all right. I'll be glad to see him. HMJr: Thank you. 46 -5these people and they are having their own directors work on them in many cases. H.M.JR: Oh, yes. Mills works through the Fed. MR. BELL: Yes. H.M.JR: Because this issuing thing is definitely - and you (Tickton) can work any way you want to. MR. TICKTON: Well, the Fed is providing me with this list every week by either wire or air mail so I can get it on Monday. H.M.JR: Just remember Bell and I are holding Mills responsible to get these issuing agents in, so whatever you do, work together. MR. TICKTON: All right. I can get a daily list if you want them. MR. MILLS: No, if I could get that thing broken down by Federal Reserve districts-- MR. TICKTON: That is no problem. body. MR. HAAS: Before you send the wires out check every- MR. TICKTON: That is right. That is no problem. MR. BELL: Well, you will know from here on when they come in. MR. MILLS: Yes. If I once get started then it is just checking them off. (The Secretary held a telephone conversation with Mr. McKee of the Federal Reserve Board as follows) -6H.M.JR: You (Mills) had better take this over with you so you will have something to show him, you see. What I would do is to tell him that when this is finished tonight you will send him over a copy, you see. MR. TICKTON: O.K. H.M.JR: Why isn't it a good idea to have Mills and let Harold Graves know that anything - I didn't know that - that we want the Federal Reserve Banks to know, that Mills keeps running over there and this does it. MR. BELL: That is all right. H.M.JR: See? Will you? What? Take a note to Harold Graves, will you? "You may already know this; but if you don't, this memorandum will serve a useful purpose. Mr. John McKee of the Federal Reserve Board in Washington informs me that the twelve presidents of the Federal Reserve Banks appointed a committee to work with the Treasury on War Savings Bonds. Mr. Alan Sproul is chairman of this committee, and Mr. Williams of the Philadelphia Bank and Mr. Davis of the St. Louis Bank are members of the committee with Mr. Sproul. The Board designated Mr. McKee as the liaison officer between the Board, the Treasury, and the committee. In order to keep this committee and the Federal Reserve Board informed of what we are doing - and I don't think we have done a very good job of it - with Mr. Bell's approval, we are going to have Mr. Mills, in addition to devoting himself to getting the companies with pay-roll deduction plans to become issuing agents, act as liaison between the 47 -7- Treasury and Federal Reserve Board on War Savings Bonds. 48 Therefore, please see that he is kept posted daily so that he can inform Mr. McKee. I am very anxious that this be done, and done well.' 49 April 22, 1942 11:33 a.m. HMJr: I would like to see Mr. Roosevelt. Grace Tully: Uh huh. HMJr: And what I want to do is, we've gotten in a lot of very interesting figures on forty-one tax returns for corporations and individuals. T: HMJr: T: HMJr: Uh huh. We took fifty-three companies that have war contracts. Uh huh. Now, I don't know whether he wants to see me alone. with me. I would like to bring Paul and Sullivan T: Uh huh. HMJr: I would like to do it Thursday. T: Uh huh. HMJr: T: You might talk to him about it. All right, fine. I'll see what's happening tomorrow. You mean morning. HMJr: T: HMJr: T: HMJr: T: Yes. Is that tomorrow? Oh, yeah. Tomorrow's Thursday, as far as I know. I don't know why. I'm a day behind. You lost a day somewhere. Well, that trip down, I guess I checked that off. (Laughs) All right, I'll find out for you. Mr. Secretary, while I have you on the telephone, Stanley Prenosil, who is down here in Washington, came in to see me this morning. 50 -2HMJr: Who? T: He said that he had written - Stanley Prenosil one of the Cuff Link boys. HMJr: oh, yes. T: And said that he'd written several weeks ago to you enclosing an application, I think, for to ask if there was any chance that there'd be any vacancy for anybody with his qualifications. He's been in Wall Street, and has some financial background as well as newspaper background, and said he hadn't heard anything; 80 I told him if and when I saw you or had an opportunity, I'd mention it to you. HMJr: I don't think I ever got the letter, to be honest. T: Well, he said that - he was sending it at my direction - but not at my direction to you, but instead he was taking the liberty of sending it to you to ask you if you'd be good enough to forward it to the proper person in your department, you see. But he said he hadn't heard anything since. HMJr: What's his name? Charlie T: Stanley Prenosil. HMJr: T: Is he the fellow with the thick glasses? No. No, who's that? There's nobody in that group with thick glasses. He doesn't wear any glasses. He's bald-headed and fairly short - stocky, kind of. HMJr: Used to be a telegraph operator? T: No, no. He was a newspaper man with Steve. He covered the Navy Department during the last World War with the President, you know, and was one of that original group of Stephen, Mac, and Prenoeil and McCarthy, and so on. 51 -3HMJr: I know McCarthy. T: Prenosil is the bald-headed one. HMJr: Yeah. T: Short. HMJr: Doesn't he wear glasses? T: No. Never have seen him with them. HMJr: T: Is he the one that gets up and does poetry? No, not particularly. He may - oh, well, whenever we do, he does whatever he's supposed to do; but I mean HMJr: Well..... T: you'd know him when you see him. HMJr: I'll look it up. T: You ve been going to birthday parties with him for years. HMJr: (Laughs) T: (Laughs) HMJr: Don't scold me. T: (Laughs) But he just happened to be in Washington, he came down with some friend, and he 8 here for a day or two, and I think he wants to get out of the Wall Street picture. He says there's nothing much in it for anybody any more, and that he really does have to take care of his family. He's got a wife, and he lost a child with infantile a couple of years ago. He's had pretty tough sledding for some time. HMJr: Well, I tell you what we'll do. T: And the President, of course, would be 52 4- interested in helping him if we could find the spot, but I don't like to bother him with it if we can do it without. 2 HMJr: Tellcome him -toletmy me just see a minute - if he will office. T: Yes. HMJr: at a quarter to three A quarter to three. T: HMJr: I will have him - I'll shake hands with him and turn him over to somebody whom I hope can use him. T: Grand. HMJr: A quarter of three. T: Good. Fine, Mr. Secretary, that's very nice. I know that the President will appreciate it, because if I went in to ask him, I know he'd say, him." HMJr: T: HMJr: T: HMJr: T: HMJr: T: HMJr: "Well, ask somebody to do something for Grace, your word's very good with me. (Laughs) Thank God. Now, on this thing tomorrow He belongs to a fraternity with you, anyway. The Cuff Links Fraternity - he belongs to the Cuff Links Fraternity. I know. Which is very important. Yeah. Look, if he wants to see me alone Yeah. nice. then a bedside appointment would be very 53 -5T: HMJr: T: HMJr: Yes. If he wants the other two gents to be there, then. The office would be all right, huh? The office. And what I like, is the number one appointment in the morning. T: Right, sir. The first eleven o'clock one, huh? HMJr: Yeah. T: All right, grand. HMJr: And you send Prenosil over. T: All right, I will. HMJr: Thank you. T: Fine. Grand, Mr. Secretary. Good-bye. 54 April 22, 1942 2:10 p.m. HMJr: Grace Hello. Tully: Hello. HMJr: Grace. T: Yes, Mr. Secretary. HMJr: T: This is for the President, you, and me, only. Right, sir. HMJr: Very extra-extra. T: Yes, sir. HMJr: There's a Mr. Brandt, B-r-a-n-d-t, an Englishman T: Yeah. HMJr: who's here, has been in charge of food for the Purchasing Mission for some time. T: Yes. HMJr: They're now talking or have made him Chairman of the English Purchasing Mission. T: HMJr: Yes. Now, he either is, or he was, one of the principal partners of Lazard Freres, of London. T: Yeah. HMJr: I think it's terrible, because we've kept the J. P. Morgans and the Lazard Freres and all of those out of this war purchasing. T: Yes. HMJr: And to put a man who's a member of the English firm T: Yes. 55 -2HMJr: in charge, or Chairman, of the British Purchasing Mission, I think is God-awful. T: Uh huh. HMJr: And I wish you'd tell the President I think so. T: Yeah. Well, do you suppose he can do anything about it if they've already named him? HMJr: Well, I got it today. I think he's just in T: I see. You think your little word dropped temporarily, but this Mr. Littleton has put him in. He isn't oermanent. someplace might help. HMJr: I'm sure it would, because I know that - well, I mean, Churchill's never played with these international bankers, is what they are. T: Uh huh. Yes. HMJr: And I've kept them out of the U.S.A. end. T: Yes. HMJr: And to have them come in sitting here and on T: Yes. the inside of all of our military secrets HMJr: .....I T: All right, sir. I will pass it along and let think is awful. you know what the Boss has to say. HMJr: T: I thank you. Grand, I'11 call you. I haven't had a chance to take uo the appointment yet, because I haven't seen the President; but I expect I'll see him within a few minutes. Their lunch ought to be over very shortly, and I hope to have a few minutes then and I'11 let you know. HMJr: While he's brushing his teeth, you could talk to him. 56 -3T: "MJr: T: Yes, I will. (Laughs) All right. I tell you, people talk to him at every minute. When he's brushing his teeth, and every other time. (Laughs) You're telling me. (Laughs) Yeah. And you're telling him. (Laughs) HMJr: (Laughs) T: The poor fellow. I feel sorry for him. HMJr: Okay. T: Right. Good-bye. 57 April 22, 1942 2:41 p.m. HMJr: Grace Hello. 2 Tully: Hello. HMJr: H. M., Jr. T: H. M., Jr, nine-thirty tomorrow morning alone. HMJr: (Laughs) T: (Laughs) You asked for it either way. HMJr: T: Yeah, I'm honored. (Laughs) All right. Nine-thirty at his bed- side in the morning. HMJr: Yeah. T: You can watch the brushing of the teeth then. And on the other, the President says to get holdabout of Halifax right away and frankly talk to him it. HMJr: Me? T: Yes, sir. HMJr: Who, me? T: Yes, sir. HMJr: Oh. T: H. M., Jr. to do it. HMJr: T: (Laughs) Aw, I don't want to. No. Well, he HMJr: Why didn't he tell Harry Hopkins to do that? T: Well, I don't know. I said that you had called and that you had told me this, and 58 -2- HMJr: he said, "Tell him to get hold of Halifax right away and talk frankly to him." Just like that. T: Yes, sir. HMJr: T: Well, I think I'll wait to talk to the Boss tomorrow. (Laughs) HMJr: Anyway, I'll be there at nine-thirty. T: All right, fine. HMJr: Thank you. T: Grand. 59 MEMOBAMPUM RE: CONFERENCE OF APRIL 22, 1942, 4:30 p.m. Present: Secretary Morgenthau Ganson Purcell George Buffington Purpose: To discuss the advisability of forming a Capital Funds Control Committee After a discussion of the problem, the Secretary suggested that the matter be handled by an informal committee until such time as there seemed to be a greater need for securing an Executive Order. It was suggested that a group meet with the Secretary as problems arise to discuss them individually. The Secretary suggested that the group include D. W. Bell, Under Secretary, Lauchlin Currie, Administrative Assistant, Executive Office of the President, Jesse Jones, Federal Loan Administrator, Ganson Purcell, Chairman, Securities and Exchange, and Marriner Eccles, Chairman, Board of Governors of the Federal Reserve System. Mr. Purcell seemed to think that a meeting twice a month or at regular intervals would take care of the situation for the present. Qts. DRAFT OF SECRETARY MORGENTHAU'S BROADCAST THURSDAY, APRIL 23, 1941 AT 10 PM 1st chaft 60 9301.1. Good Evening: At the very start of this program I should like to introduce to you a modest man in uniform who is sitting alongside me in my office tonight. He is Lieutenant Commander Edward O'Hare, whom the President decorated personally last Tuesday for having brought down six Japanese bombers singlehanded. 61 Ladies and gentlemen, you may wonder why I invited Lieutenant Commander O'Hare to take part in this War Savings broadcast. I'll tell you my reason. This one man has proved that Americans can win if they have the weapons as well as the courage and the spirit to do it. You and I, as civilians, are just as deeply involved in this war as he was when he fought those Japanese flyers. They would have brought him down in flames and killed him if he had not been too quick for them. In the same way, the Nazis and Japanese will stop at nothing to bring us down -- to divide us and destroy us if they can. It is now high time for us, as individuals, to make our own declaration of war against the enemy, and to get into this war with all our heart and soul. D-A -2- 62 There is no better way for civilians to fight than to cut down spending, to save materials, and to buy War Savings Bonds. In a nation at war "spending as usual" is as dangerous as "business as usual". We can't have all we want for ourselves and still give O'Hare and the other fighting men the weapons they need. Nearly ten million Americans are now cutting down spending and buying War Savings Bonds, but with the war costing 120 million dollars every day, ten million savers are not enough. All of us have got to save and buy bonds on a vastly greater scale. All of us have got to think war and act war in our personal lives. Victory in any battle depends on every fighting man. In the same way, victory in this great War Savings 63 -3campaign depends upon every individual. All of us who earn a regular income should set aside at least ten percent of it every pay day for War Savings Bonds, and those who have been earning especially high pay in the war industries should set aside even more. The most convenient way to do this is through the payroll savings plan, under which an employee authorizes his employer to set aside a certain percentage of his pay for bonds. If you are not doing this already, your job in the war is to sign up tomorrow; if you have signed up already, then your job in the war is to increase the amount of your savings every pay day. I know that we on the home front can do our part as well as O'Hare did his. -4- 64 I know that we can reach our goal of a billion dollars in savings a month by July if every State and every county does its share. I know that we can enlist an army of 50 million savers, without coercion or compulsion of any kind. Some people say it can't be done. They said the same thing last January when the President announced our production goals of 60,000 planes, 45,000 tanks, 20,000 anti-aircraft guns and 8,000,000 tons of merchant shipping in 1942. Yet my friend, Donald Nelson, told us the other day that those goals are being reached and will be reached. Here in this room with me tonight is a man who knows something about production goals. He, too, -5- 65 announced production goals so big that some people said they could never be attained. He called upon the farmers of America last year to produce vast new quantities of food for freedom. The farmers of America answered his call and they are reaching his goals. He is here tonight with representatives of labor and industry to tell us what he thinks of our new War Savings goal. My friend and Cabinet colleague, the Secretary of Agriculture, Claude Wickard. 66 2nd april chapter 200 P.M. Good evening: Last Tuesday, at the White House, the President awarded the Congressional Medal of Honor to an outstanding American hero, a young naval aviator who flew out alone to fight nine Japanese bombers. I should like to read what the President said about him: "Without hesitation, alone and unaided, he repeatedly attacked this enemy formation at close range in the face of their intense combined machinegun and cannon fire, and despite this concentrated opposition, he, by his gallant and courageous action, his extremely skillful marksmanship, making the most of every shot of his limited amount of ammunition, shot down five enemy bombers and severely damaged a sixth D-B 67 "As a result of his gallant action, one of the most daring if not the most daring single action in the history of combat aviation, he undoubtedly saved his carrier from serious damage." " The name of that hero, ladies and gentlemen, is Lieutenant Commander Edward H. O'Hare. He is here with me in my office tonight, and I am happy to introduce him to you. 68 Ladies and gentlemen: I have invited Lieutenant Commander O'Hare to be here tonight, with the leaders of American labor, agriculture and industry, because this one man has proved that Americans have what it takes. He has proved that the American soldier or sailor of today is just as good as the men who fought and won at Belleau Wood and Chateau Thierry. He has proved that we Americans anything like can win every time if we only get an even break. Lieutenant Commander O'Hare didn't even have an even break. He went out alone, one man against nine bombers GROWN He dared to do the unbelievable, and he won. Every day the O'Hares are doing the unbelievable on far-off fronts, holding the battle line of freedom until we can overcome the head-start of our enemies. D-B -2In Lincoln's time, at the start of the War Between the States, they sang this song: "We are coming, Father Abraham, a hundred thousand strong." This time we are coming millions strong. We are coming with machines and men in overwhelming numbers, but in the meantime we can thank God for all the O'Hares, in all our fighting forces, who are keeping the flame of freedom alive. You and I, as civilians, are just as deeply involved in this war as Lieutenant Commander O'Hare was when he fought those Japanese bombers. (They would have brought him down in flames and destroyed his too, if he had not been made of hero's gold.). In the same way the Nazis and the Japanese will stop at nothing to bring us down = to divide us D-B 69 -3 - 1 70 and destroy us if they can It is now high time civilians for us, as individuals, to make our own declaration of war against the enemy, to fight and work and save with all our heart and soul. In a nation at war "spending as usual" is as dangerous as "business as usual". We can't have all we want for ourselves and still give the O'Haresy -- and his millions of unrade in ams millions of them -- the weapons they need. Nearly 1 ten million Americans are now cutting down spending and buying War Savings Bonds, but with the war costing 120 million dollars every day, ten million savers are not enough. All of us have got to save and buy bonds on a vastly greater scale. All of us have got to think war and act war in our personal lives. -4- 71 Victory in any battle depends on every fighting man. In the same way, victory in this great War Savings campaign depends upon every Individual. All of us who earn a regular income should set aside at least ten percent of it every pay day for War Savings Bonds, and those who have been earning especially high pay in the war industries should set aside even more. The most convenient way to do this is through the payroll savings plan, under which an employee authorizes his employer to set aside a certain percentage of his pay for bonds. If you are not doing this already, one of your first jobs in the war is to sign up tomorrow; if you have signed up already, then one of your first jobs in the war is to increase the amount of your savings every pay day. D-B -5We on the home front have got to do our part as well as O'Hare did his. We have got to reach our goal of a billion dollars in savings a month by July, and every State and every county has got to do its share. We have got to enlist an army of 50 million War Bond buyers. Some people say it can't be done. Well, here in my office tonight is a man who last year announced a production program so big that some people said it couldn't be done. He called upon the farmers of America to produce vast new quantities of food for freedom. The farmers answered his call and they are reaching his goals. He is here to tell us what he thinks of our new War Savings goal: my friend and Cabinet colleague, the Secretary of Agriculture, D-B Claude Wickard. 72 73 Draft C sent to Secretary's house at 6 p. m., April 22. 74 Good evening: Last Tuesday, at the White House, the President awarded the Congressional Medal of Honor to an outstanding American hero, a young naval aviator who fought alone against nine Japanese bombers. I should like to read what the President said about him: "Without hesitation, alone and unaided, he repeatedly attacked this enemy formation at close range in the face of their intense combined machinegun and cannon fire, and despite this concentrated opposition, he, by his gallant and courageous action, his extremely skillful marksmanship, making the most of every shot of his limited amount of ammunition, shot down five enemy bombers and severely damaged a sixth D-C -2"As a result of his gallant action, one of the most daring if not the most daring single action in the history of combat aviation, he undoubtedly saved his carrier from serious damage." That man, ladies and gentlemen, is here with me in my office at the Treasury tonight. I am happy to introduce him to you: Lieutenant Commander Edward H. O'Hare. D-C 75 76 Ladies and gentlemen: I`invited Lieutenant Commander O'Hare to be here tonight, with the leaders of American labor, agriculture and industry, because this one man has proved that Americans have what it takes. He has proved that the American soldier or sailor of today is just as good as the men who fought and won in 1918 "over there." He has proved that we Americans can win every time if we get anything like an even break. Lieutenant Commander O'Hare didn't have an even break. He was up there alone, one man against nine bombers. He dared to do the unbelievable, and he won. Every day men like O'Hare are doing the unbelievable on far-off fronts, holding the battle line of freedom until we can overcome the head-start D-C -2of our enemies. In Lincoln's time, at the start of the War Between the States, they sang this song: "We are coming, Father Abraham, a hundred thousand strong. This time we are coming millions strong. We are coming with machines and men in overwhelming numbers, but in the meantime we can thank God for all the O'Hares, in all our fighting forces, who are keeping the flame of freedom alive. You and I, as civilians, are just as deeply involved in this war as Lieutenant Commander O'Hare when he fought those Japanese bombers. It is now high time for us civilians, as individuals, to make our own declaration of war against the enemy -- to fight, to work, to save with all our heart and soul. D-C 77 -3 - 15. 78 In a nation at war "spending as usual" is as dangerous as "business as usual." We can't have all we want for ourselves and still give O'Hare and his millions of comrades-in-arms the weapons they need. Nearly ten million Americans are now cutting down spending and buying War Savings Bonds instead, but with the war costing 120 million dollars every day, ten million savers are not enough. All of us have got to save and buy bonds on a vastly greater scale. All of us have got to think war and act war in our personal lives. All of us who earn a regular income should set aside at least ten percent of it every pay day for War Savings Bonds, and those who have been -4earning especially high pay in the war industries should set aside even more. The most convenient way to do this is through the payroll savings plan, under which an employee authorizes his employer to set aside a certain percentage of his pay for bonds. If you are not doing this already, one of your first jobs in the war is to sign up tomorrow; if you have signed up already, then one of your first jobs in the war is to increase the amount of your savings every pay day. We on the home front have got to do our part as well as O'Hare did his. We have got to reach our goal of a billion dollars a month in savings by July, and every State and every county has got to do its share. We have got to enlist an army of 50 million C War Bond buyers. 79 -5- I Some people say it can't be done. Well, here in my office tonight is a man who last year announced a production program so big that some people said it couldn't be done. He called upon the farmers of America to produce vast new quantities of food for freedom. The farmers answered his call and they are reaching his goals. He is here to tell us what he thinks of our new War Savings goal: my friend and Cabinet colleague, the Secretary of Agriculture, Claude Wickard. D-C 80 81 STANDARD FORM No. 14A APPROVED BY THE PRESIDENT COPY MARCH 10. 1926 TELEGRAM OFFICIAL BUSINESS-GOVERNMENT RATES TELEGRAM TO GOVERNORS TREASURY DEPARTMENT WASHINGTON CHARGE TREASURY DEPARTMENT, APPROPRIATION FOR Defense Savings - Radio Sect. Expenses of Loans (The appropriation from which payable must be stated on above line) LIST ATTACHED -14117 APRIL 22, 1942 ON MAY 1 THE UNITED STATES TREASURY DEPARTMENT LAUNCHES A NEW WAR BOND CAMPAIGN IN WHICH EACH STATE WILL BE ASKED TO MEET A MONTHLY QUOTA OF WAR SAVINGS. YOUR ENDORSEMENT OF THE QUOTA SYSTEM IS A VITAL FACTOR IN THE SUCCESS OF THE QUOTA CAMPAIGN IN YOUR STATE. YOUR WAR SAVINGS STAFF STATE ADMINISTRATOR WILL GREATLY APPRECIATE YOUR SUPPORT IN INAUGURATING THE QUOTA SYSTEM BY MEANS OF A RADIO BROADCAST. HE WILL CALL ON YOU WITHIN THE NEXT FEW DAYS TO ENLIST YOUR HELP. MANY THANKS FOR YOUR COOPERATION. HENRY MORGENTHAU, JR. SECRETARY OF THE TREASURY. MLS/br 82 The Honorable Frank M. Dixon, Governor of Alabama, Montgomery, Alabama. The Honorable Sidney P. Omborn, Governor of Arisona, Phoenix, Arisona. The Honorable Homer M. Adkins, Governor, of Arkarsas, The Honorable Keen Johnson, Governor of Kentucky, Frankfort, Kentucky, The Honorable San. H. Jones, Governor of Louisiana, Baton Rouge, Louisiana. Little Rock, Arkansas. The Honorable Summer Sewall, Governor of Maine, Augusta, Maine. The Honorable Culbert L. Olson, Governor of California, Sacramento, California. The Honorable Herbert R. O'Conor, Governor of Maryland, Annapolis, Maryland. The Honorable Ralph L. Carr, The Honorable Leverett Saltonstall, Governor of Colorado, Denver, Colorado. Governor of Massachusetts, Boston, Massachusetts. The Honorable Robert A. Hurley, Governor of Connecticut, Hartford, Connecticut. Governor of Michigan, Lansing, Michigan. The Honorable Walter W. Bacon, Governor of Delaware, Dover, Delaware. The Honorable Harold E. Stassen, Governor of Minnesota. St. Paul, Minnesota. The Honorable Spessard L. Holland, Governor of Florida, Tallahassee, Florida. The Honorable Paul B. Johnson, The Honorable Eugene Talmadge, Governor of Georgia, The Honorable Forrest C. Donnell, Governor of Missouri, Atlanta, Georgia. The Honorable Murray D. Van Wagoner, Governor of Mississippi, Jackson, Mississippi. Jefferson City, Missouri. The Honorable Chase A. Clark, Governor of Idaho, Boise, Idaho. The Honorable San C. Ford, Governor of Montana, Helena, Montana. The Honorable Dwight H. Green, The Honorable Dwight Griswold, Governor of Illinois, Governor of Nebraska, Springfield, Illinois. Lincoln, Nebraska. The Honorable Henry F. Schricker, Governor of Indiana, Governor of Nevada, The Honorable E. P. Carville, Indianapolis, Indiana. Carson City, Nevada. The Honorable George A.Wilson, The Honorable Robert O. Blood, Governor of Iowa, Des Moines, Iowa. The Honorable Payne H. Ratner, Governor of Kansas, Topeka, Kansas. Governor of New Hampshire, Concord, New Hampshire. The Honorable Charles Edison, Governor of New Jersey, Trenton, New Jersey. 83 The Honorable John E. Miles, Governor of New Mexico, Santa Fe, New Mexico. The Honorable Herbert H. Lehman, Governor of New York, Albany, New York. The Honorable J. Melville Broughton, Governor of North Carolina, Raleigh, North Carolina. The Honorable John Moses, The Honorable William H. Wills, Gobernor of Vermont, Montpelier, Vermont. The Honorable Colgate W. Darden, Jr., Governor of Virginia, Richmond, Virginia. The Honorable Arthur B. Langlie, Governor of Washington, Olympia, Washington, The Honorable Matthew M. Neely, Governor of North Dakota, Bismarck, North Dakota. Governor of West Virginia, Charleston, West Virginia, The Honorable John W. Bricker, Governor of Ohio, The Honorable Julius P. Heil, Governor of disconsin, Columbus, Ohio. The Honorable Leon C. Phillips, Governor of Oklahoma, Oklahoma City, Oklahoma. The Honorable Charles A. Sprague, Governor of Oregon, Salem, Oregon. The Honorable Arthur H. James, Governor of Pennsylvania, Harrisburg, Pennsylvania. The Honorable J. Howard McGrath, Governor of Rhode Island, Providence, Rhode Island. The Honorable J. E. Harley, Governor of South Carolina, Columbia, South Carolina. The Honorable Harlan J. Bushfield, Governor of South Dakota, Pierre, South Dakota. The Honorable Prentice Cooper, Governor of Tennessee, Nashville, Tennessee. The Honorable Coke R. Stevenson, Governor of Texas, Austin, Texas. The Honorable Herbert 8. Max, Governor of Utah, Salt Lake City, Utah. Madison, disconsin. The Honorable Nels H. Smith, Governor of Wyoming, Cheyenne, Wyoming. EX 84 April 22, 1942 = MEMORANDUM TO MR. GRAVES: You may already know this; but if you don't, this memorandum will serve E useful purpose. r. John McKee of the Federal Reserve Board in ashington informs me that the twelve presidents of the Federal Reserve Banks appointed a committee to work with the Treasury on War Savings Bonds. Mr. Alan Sproul is chairman of this committee, and Jr. Williams of the Philadelphia Bank and Mr. Davis of the St. Louis Bank are members of the committee with Mr. Sproul. The Board designated Mr. McKee as the liaison officer between the Board, the Treasury, and the committee. In order to keep this committee and the Federal Reserve Board informed of what we are doing - and I don't think we have done a very good job of it - with Mr. Bell's approval, we are going to have Mr. Mills, in addition to devoting himself to getting the companies with pay-roll deduction plans to become issuing agents, act as liaison between the Treasury and Federal Reserve Board on Mar Savings Bonds. Therefore, please see that he is kept posted daily so that he can inform Mr. McKee. I am very anxious that this be done, and done well. H. M. Jr. LI 84 April 22, 1942 MEMORANDUM TO MR. GRAVES: You may already know this; but if you don't, this memorandum will serve a useful purpose. Mr. John McKee of the Federal Reserve Board in Washington informs me that the twelve presidents of the Federal Reserve Banks appointed a committee to work with the Treasury on War Savings Bonds. Mr. Alan Sproul is chairman of this committee, and Mr. Williams of the Philadelphia Bank and Mr. Davis of the St. Louis Bank are members of the committee with Mr. Sproul. The Board designated Mr. McKee as the linison officer between the Board, the Treasury, and the committee. In order to keep this committee and the Federal Reserve Board informed of what we are doing - and I don't think we have done a very good job of it - with Mr. Bell's approval, we are going to have Mr. Mills, in addition to devoting himself to getting the companies with pay-roll deduction plans to become issuing agents, act as liaison between the Treasury and Federal Reserve Board on Mar Savings Bonds. Therefore, please see that he is kept posted daily so that he can inform Mr. McKee. I am very anxious that this be done, and done well. H. M. Jr. on notes THE UNDER SECRETARY OF THE TREASURY [.. 85 WASHINGTON April 22, 1942 TO THE SECRETARY: Mr. Wilson Jones of the Federal Reserve Bank of New York telephoned me this afternoon that the Great Atlantic and Pacific Tea Company, which employs some 61,000 persons, came in this afternoon with an application from its eastern division to become an issuing agent for the sale of War Savings bonds. He advised that they were also writing to their Chicago office, requesting that that division also become an issuing agent. This company has eight divisions throughout the country but it desires to qualify only for these two divisions at this time. It expects to qualify for the other divisions as soon as these two are completed. Mr. Jones also advised me that he and Mr. Rounds had a very nice conference this afternoon with Mr. Prentiss, President of General Motors Corporation, which employs 400,000 persons. Mr. Prentiss said that General Motors was contemplating becoming an issuing agent and he merely wanted to find out how the Federal Reserve Bank of New York issues its bonds. Mr. Jones thought that Mr. Prentiss would take immediate steps to have General Motors qualify as an issuing agent. DWB DO DEFENSE BUY UNITED STATES WINGS BONDS PRESENTS Copies to: Mr. Mills Mr. Tickton 86 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE April 22, 1942 TO Secretary Morgenthau FROM Mr. Heep 40k 1. Attached to this memorandum are tables showing (1) the number of agents qualified to issue Defense Savings Bonds, Series E, at the close of business on April 18, classified by type of agent, by Federal Reserve Districts, and (2) the number of such agents on selected dates since May 7, 1941. 2. Agents, other than post offices, qualified to issue Series E savings bonds numbered 21,123 on April 18, an increase of 111 since April 11. 3. On April 18, there were 1,110 corporations qualified to issue Series E savings bonds on payroll allotment plane in accordance with the instructions contained in your telegram of December 27 to the Federal Reserve Banks. This represented an increase of 60 corporations over last week. Attachments Number of agents qualified to issue Series E Savings Bonds, May 7, 1941 1941 Credit unions All others Total other than post offices Post offices Grand total 28 : March 28 : April : 11 April 18 7,676 11,571 14,097 14,240 14,331 14,368 14,383 739 1,481 2,434 2,560 2,632 2,645 2,662 2,080 2,479 2,695 2,748 2,765 351 686 931 1,050 1,110 37 63 66 27 99 137 8,430 13,468 19,098 15,812 16,429 24,242 29,897 8 Other corporations 1 Investment industry 31 1942 : Building and loan associations Feb. : 30 7 Commercial and savings banks Jan. : : Sept. May 389 - - - 7 - 65 67 135 136 136 20,165 20,790 21,012 21,123 17,123 17,928 18,208 18,305 18,361 36,221 38,093 38,998 39,317 39,484 Office of the Secretary of the Treasury, Division of Research and Statistics. 1 In accordance with telegram of December 27, 1941. April 21, 1942 Classification of the er of agents qualified to issue Series E Savings Bonds on April 18 1942 Building: and Banks Credit loan associa tions unions Other corpora tione 1 Investment industry All others Total 2 Corporations and associations: Federal Reserve District of Boston New York Philadelphia Cleveland Richmond Atlanta 253 230 79 1 1,166 257 429 149 17 69 357 116 125 223 - - 1,189 1,029 394 353 62 8 2 196 151 48 8 1 - - 18 28 168 194 30 Chicago 1,031 2,380 486 286 327 St. Louis 1.407 166 82 56 Minneapolis 1,283 62 86 8 Kansas City Dallas San Francisco Subtotal 1,789 194 219 25 864 126 252 551 244 14,383 2,662 - 14,383 3 64 3 9 358 39 3 3 2,765 1,110 67 136 - - 67 136 2,765 Office of the Secretary of the Treasury, Division of Research and Statistics. 1 In accordance with telegram of December 27, 1941. 2 Except post offices. 1 6 - 2,662 7 2 - Post offices Grand total 14 837 - 1,110 1,414 2,087 1,321 2,008 1,433 1,423 3,525 1,719 1,442 2,235 1,318 1,198 21,123 18,361 39,484 April 21, 1942 89 CONFIDENTIAL UNITED STATES SAVINGS BONDS Comparative Statement of Sales During First Eighteen Business Days of April, March and February 1942 (April 1-21, March 1-21, February 1-21) On Basis of Issue Price (Amounts in thousands of dollars) : : : Total : Series F - Banks Series G - Banks over : February : : Series E - Total : Series E - Post Offices Series E - Banks over March : February : April over March : : : March Percentage of Increase or Decrease (-) : : April or Decrease (-) March April : : Item Amount of Increase : Sales March over February 181,463 $ 70,449 257,910 -$ 5,269 - 20,606 -$ 8,934 - 76,447 - 8.6% - 11.4 - 29.6 217,104 25,733 110,799 242,977 28,778 129,728 328,359 41,214 201,058 - 25,873 - 18,929 - 3,045 - 85,382 - 12,436 - 71,330 - 10.6 - 10.6 - 14.6 - 26.0 - 30.2 - 35.5 $353,636 $401,483 $570,631 $ 47,847 -$169,148 - 11.9% - 29.6% $ 56,246 $ 61,515 160,857 Office of the Secretary of the Treasury, Division of Research and Statistics. - 12.7% April 22, 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. CONFIDEN UNITED STATES SAVINGS BONDS Daily Sales - April, 1942 On Basis of Issue Price (In thousands of dollars) Post Office Date Bond Sales Series E Bank Bond Sales All Bond Sales Series E Series F Series G Total Series E Series F Series G Total $ 2,476 $ 10,517 $ 2,380 2,999 3,222 2,778 8,264 7,572 9,292 $ 9,608 2,119 1,185 1,387 $ 22,504 7,570 6,235 5,334 $ 12,993 17,953 14,992 16,013 $ 2,380 11,263 10,794 12,070 $ 9,608 2,119 1,185 1,387 $ 24,980 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 8,027 8,983 6,562 5,715 5,261 2,720 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 4,619 2,513 2,584 3,472 2,690 3,111 8,027 8,983 6,562 5.715 5,261 2,720 17,572 6,152 5,102 10,008 8,076 7,175 28,352 18,497 19,623 18,880 17,615 10,762 2,432 1,076 1,251 1,400 8,604 3,333 5,374 7.773 3,695 3,303 28,609 10,561 11,728 19,180 12,621 11,426 22,192 8,665 7,686 13,480 10,766 10,286 2,432 1,076 1,251 1,400 5,252 2,517 13,334 6,845 8,604 3,333 5,374 7.773 3,695 3.303 2,227 33,228 13,074 14,312 22,652 15,311 14,537 977 9,001 3,703 24,562 11,525 18,586 9,362 2,227 977 9,001 3,703 29,814 14,042 $ 56,246 $160,857 $ 25,733 $110,799 $297,389 $217,104 $ 25,733 $110,799 $353,636 April 1942 1 2 3 4 6 7 8 9 10 11 13 14 15 16 17 18 20 21 Total 834 1,142 955 1,573 668 850 948 834 1,142 955 1,573 668 850 948 Office of the Secretary of the Treasury, Division of Research and Statistics. Source: All figures are deposits with thebonds. Treasurer of the United States on account of proceeds of sales of United States savings Note: Figures have been rounded to nearest thousand and will not necessarily add to totals. April 22, 1942. Political specify 91 While America is engaged in this great war for survival, the American people are determined that the mon who risk their lives on our battle lines shall be abundantly supplied with the best weapons and equipment that can be made. However, the American people are also determined that while our sons are fighting for 821 a month, none of us who remain at home shall profit from this war. For over 20 years America has asked that the profits be taken out of war. Today America demands it. We all know that the great majority of American business men and corporations are fair and honest, and that most of them are doing a grand job. Readily and willingly they have adapted themselves to the needs and the rigors of war-time production. Tokyo, Berlin and Rome will soon know what they have accomplished. 1 am confident that we will all be proud of their achievements. However, in our rush to accelerate war-time production we have not been able to make exact estimates of cost and profit margins. Consequently there have been some unintended large profits. Then too, unfortunately, in a country as large as America there are bound to be some business man and a few corporations who have not been able to resist the temptation to "capitalise" this emergency. To correct honest mistakes, and to curb these chiselers without punishing fair mon and honest business is a difficult task, but I an sure we can accomplish it. A wide variety of proposals have been advanced to achieve this objective. Each plan advanced has its own peouliar advantages and 92 - 2likewise its own disadvantages. We know that we will not accomplish our objective by any profit limitation which will hinder the war effort or increase the cost of war. We know that we must adopt that plan which, while recapturing excess profits and unreasonable increases in private income, will not in any way impade the productive effort of the nation, either by discouraging participation by some or by lessening the efforts of those already engaged in production. After studying this whole problem and examining all the plans submitted, I am convinced that our objective of taking the profit out of war can best be accomplished by means of the proposals submitted by the Treasury to the House Ways and Means Committee. Corporate Profits: The Treasury schedule for corporate income taxes reaches a combined normal and war surtax rate of 55 percent, and an excess profits tax rate of 75 percent. when these rates are combined as they will be in the case of most corporations furnishing war material there is a tax of $68.75 on each $100.00 in the highest bracket of tax, and most of these corporate profits will be subjected to that rate of tax. of this $88.75, 88.75 will be deposited to the credit of the corporation as a post-mar rebate, to be returned to the corporation after the war, when corporations will need funds for the reemployment of labor and the re-conversion of facilities from war-time to civilian production. Such corporate tax rates will do all that is possible to keep the profit out of war without completely eliminating incentive, economy, and efficiency, and thus interfering with Bar production. 93 -3- Individual Income Taxes, The individual surtax rates proposed by the Treasury will reach all individual war profits and all salaries paid to individuals by corporations engaged in the war effort. These surtax rates are far more drastic than any we have known heretofore, though they are entirely reasonable in view of our great need for revenue. At $50,000 the combined surtax and normal tax rate is 80 percent. The highest rate of tax is reached at a net income of $100,000, at which point the combined rate if 90 percent. The surtax rates in the lower brackets will be very much higher than the present rates. In fact, the increases of individual rates are so great that a corporation executive who earned $50,000 in 1941 and whose salary was raised to $100,000 in 1942 would increase his net income after taxes by less than $1500, if the Treasury proposal is adopted. The country has recently been shocked at the revelation of the unconscionable increases in salaries and bonuses paid to executives and employees of corporations enjoying war contracts. Under the Treasury proposals most of these increases will go to the government in individual income taxes since these increases will be subjected to the new Treasury rates on individual incomes. However, we do not need to rely entirely upon these rates or upon any set of rates. There is a provision in the Internal Revenue Code which restricts the deduction for corporate tax purposes to those amounts of executives' salaries which are reasonable. Thus, in many cases in which unreasonable salaries have been paid the deduction will be lost to the corporation for tax purposes, and the amount paid will nevertheless be taxed to the 94 -4individual recipient. The net tax in such cases may be more than 100 percent of the excess unreasonable salary I believe these Treasury recomendations represent the fairest, the sefest, and the surest method yet suggested of taking the profits out of war. I urge their speedy adoption by the Congress. "Profits" April 22, 1942 MEMORANDUM It is believed that personal and corporation income and excess profite taxes furnish the best method of recapturing war profits and high wartine salaries and that the rates proposed by the Treasury are sufficiently high. This conclusion is substantisted by Treasury examination of 1939-1941 data for 55 corporations engaged in whole or in part on government contracts and selected for study by Mr. Donald Nelson of the War Production Board. I. Salaries The increased salaries being paid in numerous cases de not require the imposition of a salary limitation for the following reasons! 1. Unreasonable and unnecessary salaries are disallowed as business expense by the Bureau of Internal Revenue. The unreasonable portion in such ease is taxed both to the corporation and to the individual receiving 18. Thus, considering the combined effect of individual and corporate taxes, the payment of unreasonable salaries increases the revenue. 2. The proposed personal income tax rates are so high that taxes would take & very large part of salary increases. For example, a person receiving a 850,000 salary would have left under present law $29,561. If his salary were increased to $100,000 and subjected to the proposed rates, he would have left $31,035. Thus, his 850,000 increase would net him an actual increase of less than $1,500. Even 15 the comparison is made entirely on the proposed rates, the result is similar. Under the proposed rates, a person with a salary of $40,000 would have left after tax $20,235. If his salary 95 96 -2were increased to $80,000, he would have left $28,375. Thus, his increase of $40,000 would net him $8,140. Under the proposed bill, to have an income of $50,000 after taxes it would be necessary to have an income before income tax of $289,350. An increase of $1 of salary above $50,000 nets the recipient only 20 cente and an increase of $1 above $100,000 nets his only 10 cents. 3. In view of the psychological hare which would result from a rigid income limitation, the injustice that such a limit would create in some cases, and the difficulty under the proposed rates of securing large incomes after taxes, 11 10 believed that the Treasury proposals, combined with the present provision discllowing as & deduction unreasonable salaries, is sufficient to meet the situation. II. Profits It is believed that the proposed corporation normal tax, war surtax and excess profits tax rates are adequate and as high as should now be imposed. 1. The study shows that of 37 companies for which 1941 data were available, all but 9 were sub- jeet to excess profits tax and of those subject to such taxes, all but 4 had paid profits tax at the highest rates of tax. Thus, under the proposed rates, 24 of the 37 companies would pay the maximum gross rate of 88-3/4 percent on all further earnings received. 2. Some of the biggest and most profitable corporations, such as the motor companies, would have received in 1941 substantially less after taxes under the proposed tax rates than they did in 1939 and 1940 despite very substantial increases in net income before taxes. The income before taxes of General Motors Corporation increased by 94 percent from 1939 to 1941, while its income after taxes would have decreased by 38 percent if the 1941 profits had been taxed at the proposed rates. 97 -33. Some companies with substantial increases before taxes would show small increases after taxes. In 1941 the U. S. Steel Corporation had 1941 not income before taxes 207 percent above that of 1939, while under the proposed rates the 1941 income after taxes would have been only 20 percent higher than the 1939 income after taxes. 4. In a few cases the increase in prefite after taxes would have been large even under the proposed rates of tax. In many such cases the company had a high invested capital credit in relation to its base period earnings. Thus Packard Motor Gar Company had an increase in profits before taxes of 214 percent from 1939 to 1941 and 68 percent after taxes, computing taxes on 1941 income at the proposed rates. This situation could be corrected by reducing the invested capital credit which reduction has been favored by the Treasury and is being actively considered by the Ways and Means Committee. In some other cases the profits increased so rapidly after the base period that the income after taxes also increased substantially. Even so, the increase in income after taxes would be relatively small. One company, Consolidated Aircraft Corporation, had 1941 profite before taxes of 15 times the 1939 profits. Under the proposed rates it would have had only 2-1/2 times as such income after taxes in 1941 as in 1939. It is doubted 1f any further restriction on the profits beyond the proposed rates would be consistent with the incentive necessary for efficient production. 5. In this connection it should be remembered that under the proposed rates If a dollar of excess profits were subject to the gross maximum tax of 88-3/4 cents and the balance were paid to a stockholder with income above $100,000, the government would receive 99 cents and the stockholder 1 cent out of the dollar. RB:DSD 4/22/42 " COMPENSATION OF EXECUTIVES Explanatory statement in respect to the attached tabulations A detailed tabulation is attached for each of 44 selected corporations for which "Compensation of Executives" data are available. Each tabulation shows by company, the name, title, and amount of salary for 1939, 1940, and 1941, for executives who received $10,000 or over for 1941. Salary includes directors' fees, benuses, etc. In those instances where the large number of executives makes a complete tabulation imprastical, data are shown only for those with larger amounts of compensation. The coverage of each tabulation is indicated under "Remarks." The salary after Federal income taxes represents the compensation minus Federal income tax computed as follows: (1) Net income assumed to equal amount of salary, (2) Personal exemption of a married person allowed - $2,500 for 1939 and $1,500 for 1941, (3) Maximum earned income credit allowed for 1939. No earned income credit allowed for 1941, and (4) Normal tax and surtax rates as provided by the Internal Revenue Code applicable to the year 1939 applied to 1939. Normal tax and surtax rates as proposed by the Secretary on March 3, 1942 applied to 1941. The summary tabulation shows identical data in aggregate for each of the 44 corporations. JRT/noe April 23, 1942 98 SUMMARY OF COMPENSATION OF EXECUTIVES BEFORE AND AFTER FEDERAL INCOME TAXES FOR 1939 AND 1941 : (Calif.) Consolidated Steel (Texas) Continental Motors Corp. Gramp Shipbuilding (Hm. Cramp and # Consolidated Aircraft Corp. Consolidated Steel Corp. Ltd. : Chrysher Corp. 172,996 (59,015) 6,877 1 Boeing Aircraft Co. $ $ 85,188 146,398 10,219 sof exsecutives between Prop-5041939 and sincluded Rates 1941 I companies 265,321 114,073 17,573 1941 : # Bendix Aviation Corp. Bendix Aviation Ltd. Bethlehen Steel Corp. & Subsidiary : # Bell Aircraft Corporation $ : # Beech Aircraft Corp. 339,225 :in 1941 sover 1939 1939 : # Bath Iron Works Corp. & Baldwin Locomotive Works Net available : Aviation Corporation 173,088 10,696 155,571 184,338 15,385 sof salaries: Number :Change a : # American Hoolen Co.,Inc. # American Car and Foundry Co. American Engineering Co. American Locomotive Co. $ 92,525 $ 1941 income taxes : : building Co. : Alabama Dry Dock and Ship- 1940 : 1939 sin amount Salaries after Federal a Name of company Increase . Salaries 1 $ 103,696 70,602 11,790 s 20,507 4 (75,796) 5 1,571 1 543,588 524,250 185,025 293,871 259,250 (54,621) 12 114,545 25,800 10,052 35,000 175,200 34,280 12,500 49,210 192,747 37,360 19,251 124,167 78,202 11,560 9,199 89,167 105,057 24,318 9,614 32,096 96,651 25,320 12,588 49,093 (6,426) 5 162,250 12,000 122,825 10,750 196,200 18,000 33,950 97,871 11,996 (42,665) 6,000 140,536 11,598 1,173,283 1,731,294 1,934,458 58,864 795,500 85,855 855,034 761,175 31,271 97,833 794,488 55,811 616,846 502,115 62,109 554,044 (292,573) 90,155 891,383 (262,800) 80,000 122,161 184,567 104,567 74,657 93,569 18,912 40,400 38,471 66,000 25,600 38,372 44,000 5,628 4 30,000 29,604 52,903 22,903 28,099 29,273 1,174 2 Not available Not available Sons Ship and Engine Building Co. Not available 1,007 2,972 16,997 2 1 2 5 597 6,298 1 16 6 14 5 SUMMARY OF COMPENSATION OF EXECUTIVES BEFORE AND AFTER FEDERAL INCOME TAXES FOR 1939 AND 1941 (CONTINUED) : LOVER 1939 # : : : 188,750 161,646 2,174,679 105,083 $ 395,613 $ 253,291 1,446,781 121,000 1 Ford Motor Co. 1,228,000 1,299,101 1,466,550 available General Machinery Corp. General Motors Corp. 151,995 3,208,945 111,529 3,265,150 114,441 226,100 3,085,210 145,023 48,160 79,194 85,016 107,700 95,044 177,000 General Electric Co. Glen L. Martin Co. Gramman Aircraft and Engineering Company Gulf Shipbuilding Corp. Houston Shipbuilding Copp. Ingalls Shipbuilding Corp. Lockhood Aircraft Corp. Los Angeles Shipbuilding and Daydook Co. Moore Drydock Co. Newport News Shipbuilding and Drydock Co. 165,339 Not available Not available 101,750 (7,819) (33,279) (720,528) (23,509) 10 20 20,000 89,799 189,487 106,976 896,931 66,290 238,550 878,780 511,156 (567,625) 75,105 133,420 (18,562) 174,966 86,576 $ 197,306 140,255 (572,548)1,117,4 $ 8 98,195 96,570 48,410 43,491 44,886 108,000 475,000 22,984 367,300 78,820 99,389 67,580 166,750 (11,240) 5 67,861 6 107,000 6,000 90,803 65,365 (25,458) 5 20,580 6 (1,044,812) 185,775 (38,960) 115,552 225,697 136,142 113,565 Northern Pump Company 49,000 570,765 42,629 180,957 52,188 12,000 $62,928 90,996 108,757 88,855 172,000 412,641 95,980 195,699 125,000 71,876 51,551 64,742 38,285 230,166 56,195 104,366 (18,218) 121,840 69,652 40,441 321,565 39,567 117,584 47,964 60,850 12,886 11-w 2 Net available 315,700 500,050 Savage Arms Corp. 4 1,395 240,448 525,358 Rebins Drydock and Repair Co. 8 22 (25,239) 127,925 539,010 Republic Aviation Carp. 4 33,494 (125,735)1,798,32 New York Shipbuilding Corp. North American Aviation, Inc. Packard Motor Car Co. 5 12 116,858 754,017 72,958 Not available 101,000 10f ex- recutives 1941 between # Proposed 1939 and sincluded & Rates 1941 1 101,000 $ : 2,019,109 sin 1941 1939 Number :Change 1 : : Electric Boat Co. : E.I. duPont de Nemours and Co. 220,647 166,715 $ Douglas Aircraft, Inc. $ sof salaries: : & Not available Curtis Wright Diamond-T Motor Car Co. 1940 : 1959 1941 income taxes 1 # Name of company sin amount Salaries after Federal : Salaries 1/ Increase : . (112,152) (2,176) (91,409) 16,626 5 1 14 60 $ SUMARY OF COMPENSATION OF EXECUTIVES BEFORE AND AFTER FEDERAL INCOME TAXES FOR 1959 AND 1941 (CONTINUED) : 1939 $ 1 # # : $ # over 1939 # : : : & 1 1 Studebaker Corp. Sun 011 Company United Aircraft Corp. United States Steel (Calif.) Westinghouse Kleethie & Manufacturing Co. Westinghouse Electric Elevator Company 1 Rates 1941 158,284 1,011,416 $12,000 495,500 215,500 1,014,531 432,000 598,782 78,270 16,431 128,465 125,982 120,446 767,204 267,169 402,156 98,380 411,394 208,905 290,281 (22,066) (555,810) (58,264) 17 (111,875) 15 186,125 215,246 304,202 118,077 160,658 180,145 (80,515) 6 85,500 142,000 370,000 284,500 80,237 144,545 64,308 7 79,500 79,500 119,250 39,750 72,889 62,917 (9,972) 469,787 555,558 596,167 126,580 543,331 194,796 (148,585) 7 35,006 38,106 34,723 1,718 26,745 18,566 (10,179) 1 5,897,621.10,580,214 6,662,661 (8,717,554) 14,580,880 16,118,926 17,977,501 In general includes compensation of executintes who received $10,000 and over for 1941 and for which 1939 and 1940 data are available. However, for certain corporations with a large number of executives a higher salary level was adopted. (Prepared by Statistical Section, Income Tax Unit, for Mr. Roy Blough, Director of Tax Research, April 23, 1942.) sincluded 157,250 998,100 303,555 474,800 Not available Western Cartridge Co. Western Pipe and Steel Co. $ 1941 between of secutives : Proposer:1939 and 1 1 sin 1941 :Change Number 1 10f salaries: 1 # 1941 1 1940 income taxes Not available Seattle-Tacom Shipbuilding Corp. Sperry Gyroscope Co.,Inc. Standard 011 Co. (N.J.) Total sin amount Salaries after Federal : 1939 Increase : Salaries 1 $ 11 4 300 ALABAMA DRY DOCK AND SHIPBUILDING COMPANY $ 1941 $ $ in 1941 1939 over 1939 1941 $ Changes $ between $ Proposed $ 1939 and $ Rates $ 1941 $ $ $ $ $ $ : # $ : : # . Vice Pres. Vice Pres. $ V.P.,Seey, Treas. Total $ : G. H. Dunlap B. F. Campbell $ President 1940 of salary $ $ D. R. Dunlap J. M. Oriser 1939 income taxes $ Title Salary after Federal $ $ Name of Executive $ $ Increase in amount Salary $ 35,085 $ 54,630 $ 88,075 $ 52,990 $ 30,335 $ 29,535 $ (800) 20,199 20,199 16,842 32,432 35,558 30,951 56,998 63,230 57,018 36,799 43,031 40,176 18,580 18,580 15,693 24,315 25,527 24,318 5,735 6,947 8,625 92,325 153,571 265,321 172,996 83,188 103,695 20,507 Remarks All executives with salary of $10,000 and over are included. AMERICAN CAR AND FOUNDRY COMPANY income taxes sin amount : 1 Changes 1941 $ sin 1941 sover 1989 : 1939 $ 10f salary 1 1941 : # # $ 1940 Salary after Federal & $ # # : $ 1939 : $ 8 $ $ $ # Title Name of Executive Increase $ Salary between 1959 and 1941 : # $ # $ & a 8 Net shown. Official of Carter $ 20,288 $ & Carburetor Company 1 Net shown. Official of Carter 18,656 $ 15,332 $ (5,324) (44,672) 51,271 15,558 1,042) 20,496 15,596 2,842 21,954 15,596 27,088 $ 20,871 $ 585 $ Carbureter Company 66,000 91,000 21,328 Car and Foundry Co. 22,500 20,000 21,458 Car and Foundry Co. 24,500 22,500 21,458 Car and Foundry Co. 40,000 23,750 28,958 (11,042) 34,021 16,540 (17,481) 173,088 184,358 114,073 (59,015) 146,398 70,602 (75,796) Not shown. Official of American Not shown. Official of American Not shown. Official of American Total Remarks: There are 50 additional officers with total salary of $900,248 in 1941 for which there are no available data for 1959. ( ( (37,758) ( ( 6,900) 8,358) AMERICAN ENGINEERING COMPANY 1940 1941 of salary 2 1959 : $ 1 1 1 $ 10,696 $ 15,583 $ sin 1941 : : $ Pres. # : 1939 William V. Santer in amount a over 1959 : income taxes Changes 1941 1 Increase $ $ Salary : # Title $ Name of Executive Salary after Federal : 1 between 1989 and 1941 6,877 $ 10,219 $ 11,790 $ 1,571 17,575 $ Remarks The Vice President and General Manger with a salary of $14,563 for 1941 and $12,307 for 1940 is the only other officer with a salary of $10,000 and over, but his salary is not available for 1959. 21 AMERICAN WOOLEN COMPANY sin 1941 1939 1941 . # # : : lever 1939, between 1939 and 1963 $ # . : aChanges sof salary, , 1941 . 1940 . 1939 . Title Federal Income Taxes sin amount: # Name of Executive Salary after Increase . Salary # . , R. H. Montgomory C. H. Silver T. W. Prestwich A. B. Walls, dr. H. c. Schoor E. F. William A. H. Eddy T. E. Greenway W. M. Lamont M. G. Binstein Totals iPres.& Sales Mgr. Treasurer Clerk & Gen. Counsel Gen. Sales Mgr. Div. Mgr. Div. Ngr. Credit Mgr. Res. Mgr. Res. Mgr. Res. Mgr. Res. Mgr. Res. Mgr. 8 73,125 18,000 18,000 45,000 27,000 27,000 22,500 25,000 15,000 21,100 22,500 25,000 $ 75,000 # 125,000 # 51,875 18,000 18,000 45,833 27,750 27,000 22,500 25,000 15,000 22,000 22,500 25,000 25,000 25,000 66,000 42,000 40,000 28,000 45,000 35,000 $4,250 32,500 27,500 7,000 7,000 20,000 15,000 18,000 5,500 20,000 20,000 13,150 10,000 2,500 55,227 16,701 16,701 37,636 24,091 24,001 20,496 22,511 14,076 19,334 20,496 22,511 339,225 543,583 524,250 185,025 293,871 Remarks: Data are shown only for officers with salary of $25,000 and over. There are 14 additional officers with salary of $10,000 and under $25,000 for 1941. The total of these salaries is $225,500 for 1941. $ 8 35,565 15,040 16,040 25,845 20,795 20,255 16,195 21,635 18,655 18,415 17,815 16,015 239,250 8 (21,662) ( M. Pendleton F. S. Connett 1,661) 1,661 (11,791) 3,296 3,856) 4,301) 876) 4,579 919) 2,681) 6,496) (54,621) BALDWIN LOCOMOTIVE WORKS 1941 sof salary $ sin 1941 1939 : : $ $ 8 $ & 36,220 $ 54,240 $ 60,220 $ 24,000 $ 25,100 21,975 18,250 18,000 36,240 56,220 25,500 25,000 40,180 57,847 26,500 28,000 114,545 175,200 192,747 1942 8 # : lover 1989 1 $ : $ 8 Remarket Data are shown only for officers with salary of $25,000 and over for 1941. There are 28 additional officers with a salary of $10,000 and under $25,000 for 1941. The total of these salaries is $416,550 for 1941. :Changes # : $ income taxes : $ Totals : William H. Harmon William H. Winterroad Charles E. Acker Carlos F. Neyes Not stated Not stated Not stated Not stated Not stated 1940 Salary after Federal sin amount . $ Charles R. Brinley 1939 Increase # : $ Name of Executive : : Title # Salary & : between 1959 and 1941 31,186 $ 24,959 $ 15,080 15,872 18,250 10,000 22,590 20,080 12,520 16,701 20,286 19,566 15,625 16,196 78,202 105,057 96,631 (6,227) (2,504) ( 494) 5,106 ( 506) (6,426) BATH IRON WORKS CORPORATION 1941 sef salary # sin 1941 :Changes 1959 over 1939 1 $ $ : 1 I 15,000 $ 10,800 19,880 $ 14,400 21,780 $ 15,580 25,800 34,280 57,360 1941 & 1 # : # $ income taxes : $ # Total Pres. V. P. Salary after Federal sin amount : a W. S. Newell A. M. Main 1940 : : 8 Increase : : : 1939 & : Title Name of Executive Salary 6,760 $ 14,076 $ 4,780 11,580 between 1959 and 1941 14,544 $ 468 10,237 10,776 559 24,318 25,520 1,007 Remarks: There is an additional vice-president with a salary of $11,610 for 1941. Salary for 1959 and 1940 not available. 107 BEECH AIRCRAFT CORPORATION : 1941 : : : Pres. : Walter H. Beech sef salary sin 1941 over 1939 : 1940 : 1939 income taxes Changes : Title sin amount 1939 1941 1 : : Name of Executive Salary after Federal Increase Salary between 1939 and 1941 $ 10,032 $ 12,500 $ 19,231 8 9,199 $ 9,614 $ 12,586 $ 2,972 Remarks: This is the only officer listed with a salary of $10,000 and over for 1939, 1940 or 1941. BELL AIRCRAFT CORPORATION : : I # $ : & I 8 Total V. Pres. $ 10f salary sin 1941 over 1989 25,000 $ 10,000 55,290 $ 85,000 $ 15,920 39,167 60,000 29,167 $5,000 49,210 124,167 89,167 Remarks There are 7 additional officers with total salary of $125,875 in 1941 but for which 1939 and 1940 data are not available. 1939 : 1941 $ 22,511 $ Changes sbetween 1939 and 1943 1 # Bay P. Whitean Pres. 1 1941 1 : Lawrence D. Bell : 1940 sim amount $ $ a 1959 3 : Title income taxes : # Name of Executive Salary after Federal Increase a Salary 29,106 8 6,694 9,585 19,988 10,405 32,088 49,083 16,897 : # ,in 1941 , # sever 1939 1939 Changes 1941 , 10f salary 8 1941 . . $ # # # # # # 8 . $ Total 1940 income tems . . W. L. MeGrath President V.P. & Treas. Vice Pres. Vice Pres. Vice Pres. sin amount # D. O. Thomas Charles Marous 1939 Salary after Federal , . . Title Increase Salary . # Vineont Bendix B. R. Palmer ORATION . Name of Executive a . BENDIX AVIATION between 1939 and 1941 $ 50,000 $ $7,500 $ 60,000 8 10,000 $ 41,131 $ 24,915 8 (16,216) 20,000 27,500 59,750 25,000 18,750 20,625 27,000 18,750 30,000 83,000 45,200 50,000 10.000 5,500 3,450 5,000 18,565 24,486 35,833 22,581 16,915 17,995 21,181 16,915 (1,660) (6,491) (12,708) (5,606) 162,250 122,625 196,200 55,960 140,536 97,871 (42,665) Remarks, Date includes all officers with salary of $10,000 and ever. BENDIX AVIATION, LTD Salary after Federal : 8 Title sin amount : a 1 : a $ sef salary sin 1941 gover 1989 & 12,000 $ 10,750 $ 18,000 $ Remarks This is the only officer receiving a salary of $10,000 and over for any of the years isso, 1940 and 1941. : V. P. 1941 1959 1941 a 1940 1939 : Palmer Michels income texes $ Name of Executive Increase $ Salary a Changes sbetween 1959 and 1942 6,000 $ 11,398 $ 11,995 8 SET BETHLENEN STEEL CORPORATION AND SUBSIDIARY COMPANIES 1980 of salary, . sin amount: # sin 1941 never 1939, a . . . # a . # . F. A. Shiek J. M. Larkia Chas. R. Holton 3. P. Bender Treas. $ Pres. (Ps.) Vice Pres. Vice Pres. Vice Pres. ASec. Vice Pres. Vice Pres. Vice Pres. acempt. Vice Pres. Vice Pres. Treas. W. H. Johnstone last. See. Paul Mackall H. W. Marley Vice Pres. (Dol.) W. M. Driver R. H. Schlettman Total Asst. Sec. Asst. Comptroller Pres. of Sub. # # J. E. Gross W. H. Steart # W. J. Brown E. G. Grase C. A. Busk Q. Best R. E. MaHath 25,632 271,224 117,366 117,366 84,332 80,198 40,406 84,332 55,198 65,188 25,682 28,863 24,982 25,078 117,364 40,198 1,173,283 # 42,946 478,144 50,000 179,443 139,506 84,690 48,226 180,806 89,680 89,690 42,546 37,845 35,798 34,088 179,443 51,855 1,731,294 w 47,810 537,724 50,000 197,317 155,393 94,620 56,472 155,393 99,620 109,620 47,810 45,365 41,220 41,622 197,317 57,155 $ 22,178 1,934,458 761,175 266,500 (67,364) 79,953 71,061 44,422 16,068 71,061 44,422 44,422 22,178 16,522 16,298 16,544 79,955 16,957 1941 # 23,020 128,548 74,204 76,206 60,780 41,288 34,334 60,780 44,610 50,814 23,011 25,540 22,449 22,573 $ 22,530 8 34,100 74,837 22,856 40,796 36,606 30,389 24,200 36,004 30,969 32,087 22,580 21,737 20,577 30,683 40,796 24,346 794,486 808,116 74,20 Remarks: Date are shown only for officers with salary of $86,000 and over for 1941. There are 12 additional officers with salary of 820,000 and under $35,000 for 1961, for which salary is reported for 1989 and 1940. The total of those salaries is $271,249 for 1941. between 1930 and 1961 . 1941 # 1939 Changes 1939 . . Title income taxes . . Name of Executive Salary after Federal . Salary Increase a ( eso) (85,711) (61,348) (88,405) (86,176) (10,879) (10,115) (96,176) (15,621) (18,787) 081 3,806 1,872 1,886 (88,400) (8,828) (292,375) BOEING AIRCRAFT COMPANY & & , , $ 20,000 $ 1939 1941 $1941 $ 15,422 $ 12,940 13,810 6,067 11,000 12,000 10,035 10,800 20,000 11,000 12,000 11,135 16,000 333 2,134 14,327 10,193 10.795 8,672 1,673 12,940 8,185 8.785 8,269 10.990 83,835 90,135 31,271 55.811 62,109 667 & Remarker There are no additional officers with salary of $10,000 and over. Changes between 1939 and 8 $ : 58,864 sis 1941 lover 1939 # $ Vice Pres. Masc. V.P. 6,190 10,667 11.333 9,001 1,673 $ 20,000 20,000 sef salary : 3 . : J. P. Marray Total I Vice Pres. : President Vice Pres. $ 20,000 8 : Chairman R. J. Kinshall H. O. West : P. 0. Johnson F. P. Landas 1939 : 1941 1940 income texes sis amount 8 : # & Title , 0. L. Eggent : Name of Executive Salary after Federal : Increase : Salary $ ( 5.471) 6,873 2,010) BE 2,008) ( 403) 9,317 6,296 CHRYSLER CORPURATION $ Total $ C. E. Neicher N. J. O'Neil D. s. Iddine $ D. A. Wallace $ O. R. Shelter Carl Brow $ 100,000 $ 100,000 s 100,000 50,000 72,000 90,000 60,000 37,500 45,000 85,000 60,000 60,000 35,000 26,500 32,500 40,000 50,000 72,000 90,000 60,000 47,284 63,750 85,000 60,000 60,000 43,633 35,567 43,633 44,167 50,000 72,000 90,000 60,000 50,000 72,000 85,000 60,000 60,000 50,000 42,333 50,000 50,000 793,500 855,034 891,333 Remarks Data are shown for only those officers with salary of ever $40,000 in 1941. There are 92 additional officers with salary of $10,000 and under $40,000 with a total salary of $1,415,936 in 1941. 'ever 1939 1939 $ - 1941 $ 67,531 $ Changes $ between $ 1939 and $ 1941 1 $ Fred M. Zeder $ N. L. Weekler $ A. Yes Dear Zee in 1941 $ $ B. E. Batchinson W. Ledyard Miteball 1941 $ $ $ $ Byren C. Pay Not stated Net stated Net stated Net stated Net stated Net stated Net stated Not stated Not stated Net stated Net stated Not stated Not stated Net stated 1940 $ $ $ K. T. Keller J. R. Fields $ 1939 $ of salary income texas $ $ Title $ $ $ $ Name of Executive Salary after Federal "Increase . in amount . Salary $ 31,035 $ (36,496) 15,000 15,833 17,500 10,000 41,131 54,631 63,331 47,671 32,146 37,636 61,082 47,671 47,672 30,271 23,696 28,356 34,021 22,855 27,095 29,805 24,915 22,855 27,095 29,105 24,925 24,915 22,855 20,889 22,855 22,855 (11,166) 97,833 616,846 354,044 (262,800) - - 12,500 27,000 - (18,276) (27,536) (33,586) (22,756) 9,291 (10,541) (31,976) (22,756) (22,756) 7,416) 2,807) 5,901 CONSOLIDATED AIRCRAFT CORPORATION salary after Federal Discrease in 1941 sever 1939 Changes 1941 . a 1940 a . 1939 . 1939 a . . . . Title sary in 1941 . Salary . . # . Name of Executive income taxes amount of sal. . a 8 . # . . a 8 . , . R. H. Fleet C. T. Leigh J. L. Kelley Total Vice-Pree. President-Ngr. Vice Pres. C. A. Van Dusen . I. M. Ladden between 1939 and 1941 Vice Pres. Assistant See. 8 $ 19,505 8 16,701 18,000 20,000 14,000 16,000 12,000 8 25,630 $ $7,505 35,943 20,036 22,443 18,100 62,505 28,130 31,255 25,172 42,505 14,130 15,255 15,172 18,411 13,191 14,956 80,000 122,161 184,567 106,567 Remarks: Date are shown only for officers with salary of $25,000 and over for 1941. There are 17 additional officers with salary of $10,000 and under $25,000 for 1941, for which salary is reported for 1939 and 1940. The total of those salaries is $236,514 for 1941. 8 19,457 . 2,756 26,396 6,985 11,598 16,242 17,367 16,107 3,051 2,411 5,700 74,657 93,569 18,912 CONSOLIDATED STEEL CORPORATION. LIMITED : 10f salary 8 1939 sis 1941 sever 1939 1 : : : $ 22,000 $ 6,000 $ 14.956 11.333 5.333 3,138 22,000 12,000 10,000 8,000 5.650 5.950 13.191 6,221 4,004 40,400 33,471 66,000 25,600 38.372 1/ 1939 data for calendar year - 1940 for period January 1, 1940 to August 31. 1940 - 1941 fiscal year ended August 31, 1941. Remarks: There is one additional officer with a salary of $15,000 for 1941. but no salary reported for 1939 and 1940. sbetween 1939 and :1941 : : : : : $ 13,667 14,000 6.350 4,050 $ 16,000 Changes 1941 : : Total : : H. c. Cranfill 1941 $ : L. R. Earl Net stated Net stated Net stated Net stated : : $ D. 0. Hendereon Alden 0. Reach 1940 income taxes sis amount : $ : 1939 Increase : : : Title Salary after Federal : Name of Executive Salary 1 $ 13,825 $ ( 1,131) 13,825 8.785 7.565 2,564 3,561 44,000 5.625 634 CONTINENTAL MOTORS CORPORATION 1939 1940 # . $ W. R. Angell, Sr. Clarence Resse Total of salary 1941 income taxes 1939 in 1941 $ over 1939 Changes 1941 . Title : Name of Executive Salary after Federal Increase in amount 1 Salary Technical Adviser $ 18,000 $ 13,000 $ 12,000 12,000 16,604 40,903 $ 16,701 $ 8,785 28,903 11,398 20,488 30,000 29,604 52,903 22,903 28,099 29,273 President Remarks: 5 additional officers have salaries of $10,000 and over for 1941, but their salaries are not reported for 1939 or 1940. The total of the 1941 salaries for these 5 additional officers is $109,165. $ (6,000) between 1939 and 1941 4 (7,916) 9,090 1,174 DIAMOND T. MOTOR COMPANY $ , Nat.Aest.Rep. Chgo.Branch $ Dist. Hgr. 220,647 188,750 1939 1941 $ 60,000 $ 15,000 $ 37,636 $ 59,152 59,152 59,152 33,973 33,973 18,696 10,771 41,155 19,589 35,417 35,417 35,417 20,787 20,287 1,396 21,496 21,496 21,496 395,613 Remarks There are 13 additional officers with salary of $10,000 or more for 1941, for which salaries for 1939 or 1940 are not available. $ Changes $ between $ 1999 and $ 1941 $ $ With Ngr. 23,735 23,735 23,735 13,186 13,686 17,300 10,006 38,196 12,068 45,000 22,177 22,177 22,177 13,321 15,321 14,491 10,454 10,926 12,706 in 1941 over 1939 $ 8 $ V.P.,S.Hgr. $ Total , G. C. Stevens Parch.Agt. $ c. G. Wiriek V.P.,Ch.ingr. 45,000 $ 1941 $ $ L. P. Larsen $ T. C. Realey, Jr. F. J. Nollearn V.P.,Seey. $ $ H. c. Embarson V.P.,S.Ngr. $ $ $ C. A. Pairee Pres.,Treas. 1940 of salary" $ . $ E. J. Dumb Sidney A. Cook $ $ c. A. Tilt 1939 income texas in amount $ $ $ Title Salary after Federal $ Increase . $ Name of Executive Salary 24,915 $ (12,721) 765 12,463 12,920 16,092 9,590 2,959 7,521 32,668 11,459 24,745 24,745 24,745 18,326 18,326 12,329 8,043 20,558 12,755 174,966 197,306 189,487 3,249 3,249 3,249 5,863 5,416 (3,763) (1,547) (12,110) 1,296 (7,819) DOUGLAS AIRCHAFT COMPANY INGOBPORATEED 1941 : : : : A. E. Raymond Total & H. E. Gueria # Donald W. Deuglas Net stated Net stated Not stated Net stated Net stated in 1941 over 1939 1939 1 F. W. Conant Carl A. Cover of salary $ 9.000 $ 11.500 30,000 66,667 37,298 23,750 $ 20,500 $ 11.500 37.500 75.000 12,646 25,000 52,500 105,000 42,791 32.500 $ 8,672 22,500 38.333 5.493 8.750 26,432 51.651 166.715 161,646 253.291 86,576 Remarket Date are shown only for officers with salary of $20,000 and ever for 1941. 16 additional officers received salary of $20,000 and ever for 1941. The total salary of these 16 officers for 1941 is $198,570. 1941 1939 and $ 13,165 $ 4.494 3,016) 31.994 21,508 23,415 31.565 21,016 17,815 140,255 106,976 ( 1940 : : 1939 : Title income taxes : Name of Executive Salary after Federal : Increase in amount Salary ( 20,086) ( 10.978) ( 3,693) ( 33.279) E. I. DUPONT DE MEMOURS AND COMPANY 1 : 2,019,109 2,174,679 $ 120,470 214,470 116,930 129.990 122,670 122,690 120,470 90.970 92.990 94,890 107,620 112,601 1,446,761 (55.355) $( 664 ( 62,464) 57,0853 (451495) ( 52,445) 49,226) 18.518) 67,873) ( 62,035) ( Total Gen. Hgr. Gen. Mgr. Gen. Mgr. Gen. Mgr. Gen. Hgr. 190,187 290.766 194,587 198,582 197.176 186,698 189,248 151,866 101,864 171.493 184,115 118,095 ( William Righter E. G. Rebinson L. A. Yorkee Vice Pres. Vice Pres. Vice Pres. $ ( : ZanBayYancey # F. A. Wardenburg 1 c. N. A. Stine Vice Fres. 174,825 213,806 179.394 178,435 179.685 168,185 172,915 140,196 111.508 162,763 169.655 167,742 ( : : : # : Jc W. McCay over 1939 $ ( : : W. S. Carpenter, Jr. J. E. Crane A. B. Echole W. F. Barrington Vice Pres. President. Vice Pres. sim 1941 1941 55,141) . 95.593 109,400 97,238 96,893 97.343 93.203 94,905 82,880 71.979 91,250 93.732 93,043 (572.348) 1,117,459 Remarks: Data are shown only for officers with salary of $90,000 and over for 1941. There are 27 additional officers with salary of $10,000 and under $90,000 for 1941. The total of these salaries is $1,187,453 for 1941. Changes between 1939 and :1941 $ : J. Thompson Brown 1939 of salary # : 1941 $ : 1939 1940 : : # Title : $ : Name of Executive Salary after Federal iscans taxes Increase $ is amount : Salary $ 33,112 $ (62,481) 42,512 32.758 34,064 33.332 33.334 33.112 29.941 30,193 30,421 31,827 32,325 (66,888) (64,480) (62,829) (64,011) (59.869) (61.793) (52.939) (41.786) (60,829) (61,905) (60,718) 396.931 (720,528) ELECTRIC BOAT COMPANY between 1939 and 1941 6,000 $ 26,451 it 18,975 $ 18,975 18,975 9,365 66,290 : $ : $ I I $ : 30,000 30,000 11,000 31,000 31,000 12,083 36,000 36,000 18,000 6,000 6,000 2,000 26,431 26,431 10,506 101,000 105,083 121,000 20,000 89,799 1 Remarks: All executives with salary of $10,000 and over are included. 1941 , 36,000 $ 1 $ 31,000 $ 10f salary sin 1941 over 1959 : 30,000 $ 1941 : Total Treasurer 1940 : Changes 1959 $ T. Y. Spear H. A. Taylor V. Pres. V. Pres. $ income taxes : : H. R. Sutplin Pres. Salary after Federal sin amount : : 1989 Increase . 1 # : H. Carsi : Title Name of Executive : Salary (7,458) (7,456) (7,456) (1,141) (23,509) FORD LOPE - ANY $ 1 H. B. Hanson Total $ R. H. NcCarrell 1,228,000 $ Ned Fuller $ $ W. K. Eduanda 43,500 41,809 31,072 29,250 1,299,101 1,466,550 178,259 41,688 28,548 21,002 37,921 37,629 177,005 82,951 479000 $ 1941 $ Changes $ between $ 1939 and $ 1941 $ $ $ J. R. Davis $ Charles E. Serenson A. M. Wibel $ L. S. Sheldrick 67,873 43,005 116,082 58,874 51,223 234,757 56,102 82,983 50,237 37,010 45,027 42,964 47,653 220,005 101,051 47,000 41,500 46,350 39,585 37,269 40,505 109,466 52,812 45,175 144,620 54,582 $ $ R. I. Reberge 56,307 $ 1939 $ $ R. R. Rausch : W. F. Piech $ Herman L. Mockle 39,000 104,000 49,500 32,500 143,000 54,500 169,000 39,000 26,000 19,000 35,000 35,000 169,000 78,000 47,000 41,500 39,000 28,500 27,500 in 1941 over 1939 1 P. E. Martin $ 52,000 $ 1941 $ $ Mael B. Ford $ B. J. Graig John Granford H. C. Does Net stated Not stated Not stated Not stated Not stated Not stated Not stated Not stated Net stated Not stated Not stated Not stated Not stated Not stated Not stated Not stated Not stated Not stated Not stated Not stated 1940 $ $ $ W. J. Camaron 1939 income taxes $ $ M. L. Bricker of salary . Title Salary after Federal . Name of Executive Increase in amount Salary # 42,511 $ 26,362 $ (16,149) 21,077 32,673 24,690 23,148 44,541 24,136 28,823 22,912 19,299 21,643 21,064 22,292 43,066 31,161 22,135 20,655 21,979 20,119 19,381 (12,194) (36,453) (16,096) 7,350 11,085 9,769 33,274 69,126 40,786 28,356 83,946 44,156 93,496 33,271 23,301 17,561 30,271 30,271 93,496 57,751 39,061 35,116 33,271 25,276 24,486 238,550 878,780 511,156 15,873 4,005 12,082 9,374 18,723 91,757 1,602 (86,017) 11,237 11,010 26,027 7,964 12,653 51,005 23,051 - 5,208) (39,405) (20,020) (64,673) (10,359) 4,002) 4,082 9,207) 7,979 (50,430) (26,590) (16,927) (16,461) (11,292) (5,157) 5,105) (367,625) Remarks Date are shown only for officers with salary of $35,000 and over for 1941. There are 100 additional officers with salary of $10,000 and under $35,000 for 1941. The total of these salaries is $2,023,764 for 1941. 2 2 THE GENERAL MACHINERY CORPORATION :Changes 1941 : : : : 62,000 $ 65,000 $ 17,000 7,800 23,000 12,500 13,000 11,025 5,670 93,000 8 19,000 8,850 23,000 12,500 13,200 15,500 8,289 25,000 16,500 22,500 13,000 18,000 20,000 18,100 5,000 8,975 12,430 15,881 7,567 20,901 11,850 12,297 10,517 5,566 151,995 165,339 226,100 75,105 133,420 31,000 $ 8,000 8,700 ( 500) 500 thetween 1959 and : sand 1939 Remarks There are 8 additional officers with salaries of $10,000 and over for 1941. These salaries total $55,500. No 1939 data available. 1939 1941 $ : : : Total 10f salary : sin 1941 : Salesman 1941 # # P. C. McBath $ income taxes $ : : A. C. Mais V. Pres. V. Pres. V. Pres. V. Pres. Plant Supt. Plant Supt. : A. A. Byerloin C. T. Ziegler Frederick Rits Pres. Salary after Federal in amount 2 : : G. A. Rentschler J. E. Paterson W. A. Rentschler 1940 : : 1 Increase 1 $ # # 1939 $ # Title 2 Name of Executive Salary 48,891 $ 30,195 $ (18,696) 15,040 11,245 14,085 9,365 11,995 12,940 12,045 116,858 791) 5,678 6,868) 2,485) 302) 2,425 6,477 (16,562) GENERAL MOTORS CORPORATION of salary 1 1 sin 1941 1989 1 : & # # : # : : : : : : & $ : Anderson, Anthony C. Bradley, Albert Comptroller V. Pres. Mooney, James D. V. Pres. V. Pres. V. Pres. V. Pres. V. Pres. V. Pres. V. Pres. V. Pres. V. Pres. V. Pres. V. Pres. V. Pres. Sloan, Alfred P. Jr. Ch.of Brd. Breech, Ernest R. Brown, Donaldson Donner, Frederic G. Earl, Harley J. Evans, Ronald K. Fisher, Lawrence P. Garrett, Paul Grant, Richard H. Hogan, Henry M. Hunt, Ormond E. Date, Bayard,D. Prentis, Mayer L. Smith, John T. Spencer, Louis M. Tenner, Floyd O. Treasurer V. Pres. Dir.,Pat.See. V. Pres. Williams, William .,Jr. V. Pres. President Wilson, Charles E. Kettering, Charles F. Gen.Mgr. Total $ 62,395 258,176 86,450 258,124 47,255 102,816 120,309 206,762 39,511 206,712 65,817 206,712 105,309 206,612 88,443 200,450 258,176 27,638 88,816 55,998 258,076 258,408 $ 3,208,945 61,585 254,868 95,914 254,867 56,010 110,869 152,329 193,774 39,143 204,015 72,002 224,731 121,496 178,262 84,486 200,500 254,868 36,174 77,165 70,286 286,826 254,960 3,265,130 Changes between 1939 and :1941 : # : over 1939 1 : 1941 : : 1941 : : 1940 income taxes sin amount $ : # # 1939 Salary after Federal Increase : # # Title Name of Executive # Salary $ 54,708 235,224 92,557 227,252 85,954 99,610 129,220 184,715 43,864 146,698 88,454 274,734 94,809 138,876 70,649 200,550 227,152 40,844 45,908 96,732 527,973 226,752 3,083,210 $ 7,687)$ (22,952) : (31,656) 49,132 124,372 61,724 124,358 39,237 68,676 75,523 107,005 55,654 106,988 51,167 106,988 69,623 106,954 62,630 104,818 124,372 24,595 62,798 45,150 124,340 124,447 (125,755) 1,798,329 6,107 (30,872) 88,899 3,208) 8,911 (72,047) 4,355 (60,014) 22,637 68,022 (10,500) (67,736) (17,794) 100 (31,024) 15,208 (42,913) 40,754 69,897 $ 25,857 44,587 30,139 43,790 29,239 30,988 33,987 34,536 21,317 35,755 29,589 48,538 30,412 54,955 26,862 41,120 43,780 20,471 21,872 30,643 58,862 45,740 $ (25,275) (79,785) (31,585) (80,566) (9,998) (37,688) (41,836) (72,469) (12,337) (71,255) (21,578) (58,450) (39,211) (72,001) (35,768) (63,698) (80,592) 4,124 (40,926) (14,487) (70,478) (80,707) 754,017 (1,044,312) Remarks: Data are shown only for officers with salary (excluding bonus awards) of $25,000 and over for 1941. However, the amount of salary tabulated includes bonus awards. There are 52 additional officers with salary (excluding bonus awards) of $10,000 and under $25,000 for 1941, for which salary is reported for 1939 and 1940. The total of these salaries (excluding bonus awards) is $735,792 for 1941. - GLENN L. MARTIN COMPANY : sin 1941 1939 sChanges 1941 # : $ . : : # $ # : : # # : over 1939 . $ # Treasurer of salary . Total Vice Pres. Vice Pres. 1941 , H. F. Volmer M. G. Shook Pres. 1940 # : J.T. Hartson 1939 income taxes : # Glenn L. Martin in amount : . . Title Salary after Federal . Name of Executive Increase Salary between 1939 and 1941 $ 55,970 $ 40,200 $ 60,260 $ 26,290 8 29,488 35,857 28,124 13,578 34,570 26,563 13,108 37,408 30,220 17,135 1,551 2,096 8,557 30,914 24,979 12,814 19,426 16,994 11,569 in (11,488) (7,985) (1,245) 111,529 114,441 145,023 33,494 98,195 72,958 (25,239) Remarks One additional vice president had salary of $22,572 for 1941, but no salary reported for him for 1939 and 1940. $ 24,967 $ (4,521) GRUMMAN AIRCRAFT ENGINEERING CORPORATION $ : : 1 48,160 $ $ 24,205 $ a Changes 1941 , 26,580 21,580 , over 1939 1939 8 : $ sin 1941 $ Total Not stated Not stated 1 1941 income taxes . Leroy R. Grummen 1940 of salary Salary after Federal : $ 1939 Loon Swirbul sin amount $ Increase Salary . Title $ Same of Executive . between : 1939 and : 1941 25,759 # 23,043 # 42,097 37,097 $ 50,785 45,785 26,205 19,732 21,843 (716) 2,111 79,194 96,570 48,410 43,491 44,886 1,395 For 1941 there are 5 additional officers with salaries of $10,000 and over. The total salary of these officers is $76,043. THE INGALLS SHIPBUILDING CORPORATION 1959 & : I 25,000 $ 25,000 : 1 15,000 15,000 16,266 15,750 15,000 19,167 20,877 15,000 85,016 95,044 1959 1941 over $ 15,000 25,000 $ 25,000 18,000 - $ 22,511 $ 10,000 8,734 4,250 14,076 14,076 15,190 12,967 22,984 78,820 - Changes shetween 1980 and 1942 $ 8 $ # : A. J. Grassick : V. Pres. Gen. Mgr. of $ W. R. Guest Pres. realary in : : $ $ V. Pres. 1941 1941 8 $ a Chair.of Brd. $ 25,000 $ R. I. Ingalls, Jr. Moare B. Lanier # 1940 income taxes sia amount 8 # 1939 , R. I. Ingalls Increase 8 : # # # Title Name of Executive Salary after Federal 8 $ Salary 15,060 8 10,465 15,040 15,040 11,995 (7,471) (3,611) 964 100) 972) Shipyard Total 108,000 Remarks There are no other officers receiving a salary of $10,000 and over we 1941. 67,580 (11,240) LOCKHEED AIRCRAFT CORPORATION 1941 . : : . # a # . $ # a Totals See. in 1941 . over 1939 Changes 1939 8 . Cyril Chapellet Vice Pres. Vice Pres. Vice Pres. Vice Pres. of salary . # R. A. Ven Hake 3 C. A. Barker, Jr. Carl B. Squier Hall L. Hibbard President . Robert E. Gress 1941 : . $ 1940 . $ # 1939 iscame taxes : # . . Title in amount Salary after Federal . Name of Executive . Increase Salary between 1939 and 1941 $ 27,400 $ 44,750 8 125,000 $ 97,600 $ 24,407 18,000 17,800 17,500 14,000 15,000 30,000 26,000 26,250 25,000 25,000 90,000 65,000 65,000 66,000 65,000 72,000 47,200 47,500 51,000 52,000 16,701 16,527 16,266 18,191 12,297 29,805 25,845 25,845 25,845 25,845 9,168 15,106 9,318 9,579 12,656 15,548 107,700 177,000 475,000 367,300 99,389 166,750 67,361 Remarks: There are 2 additional officers with salaries of $22,000 and $19,000 in 1941 and $7,800 and $6,300 respectively in 1939. & 33,565 8 MOORE DRY DOCK COMPANY Salary : $ . . # $ # : : 15,000 6,000 20,000 20,000 15,000 6,750 20,000 20,000 15,000 12,000 20,000 20,000 101,000 101,750 107,000 : Pres. & Gen. Mgr. Vice Pres. Remarks: There are no additional officers with salary of $10,000 and over. $ - - 6,000 - - 6,000 : 1941 Changes thetween 1939 and 01941 : # $ 40,000 Jee. A. Meare, Jr. Total: over 1939. $ 40,000 Vice Pres. & Treas. of salary, sin 1941 $ 40,000 Nat Lovey A. R. Viner J. R. Moore 1941 # . Chm. of Board Vice Presand Sec. # 1940 1939 $ . Jos. A. Moore sin amount: a 1939 income taxes , . . . Title . Name of Executive Salary after Federal Increase : $ 34,021 8 80,235 $ (15,786) 14,076 5,884 18,411 18,411 10,468 8,785 12,940 12,940 ( 3,611) 90,803 65,365 (25,438) 2,902 ( 5,471 (1,472) NEW YORK SHIPHUILDING CORPORATION $ $ & a $ : R. S. Pruitt K. Gardner N. R. Parker Total a R. S. Campbell : sin 1941 never 1989 1989 1941 . changes thetmess 1930 and 3 # M. Lockhart, Jr. J. F. Metter of salary 11941 a # & 1941 . 1940 income taxes & # sin amount Salary after Federal & & Title Name of Executive 1989 Increase . Salary Ch. of Brd. $ 32,181 $ 66,819 $ 75,600 $ 43,469 $ 28,072 8 27,671 8 President Vice Pres. Sec., O.C. Labor Coun. Treasurer 32,105 19,582 16,400 18,000 10,707 55,655 39,791 27,027 26,528 26,528 75,600 54,000 36,500 36,000 36,000 43,495 34,418 21,100 18,000 25,293 28,052 18,056 14,428 16,701 10,245 27,671 23,715 19,185 18,975 18,975 127,925 240,448 515,700 185,775 115,552 186,142 Remarket There are 17 additional officers with salaries of $10,000 and over for 1941, for which salaries for 1959 or 1940 are not available. (401) (881) 5,688 4,707 8,752 20,500 NORTH AMERICAN AVIATION, INC : : : sim amount & sef salary $ & # 8 a # # : 1 a :Changes sbetween $1989 and alamy 1 sim 1941 sover 1989 & 1941 8 8 8 1941 1969 $ 8 1940 8 1959 $ : Title income terms : $ $ Name of Executive Salary after Federal Increase a Salary 1 8 J. H. Kindelberger J. L. Atwood R. A. Lamboth J. S. Smithers Pres. V. Pres. Treasurer Factory $ 186,110 $ 166,350 $ 155,250 $ 75,000 24,600 28,700 78,585 25,425 28,975 71,360 28,460 32,500 24,600 28,075 32,500 $59,010 325,558 500,060 Mgr. R. E. Rise Chf. Eng. Total malaries is $214,258. 8,800 56,221 22,195 25,480 7,900 22,195 17,815 ( 4,580) 225,697 115,565 (112,182) (88,980) Remarks Data are shown only for officers with salary of $25,000 and over for 1941. There are 15 additional officers with salary of $10,000 and under $25,000 for 1941. The total of these (65,086) (29,285) 5,888 7,815) 34,590 26,988 16,357 17,815 (80,880) 8,850) 8,880 8 99,656 8 $ ( ( NORTHERN FUMP COMPANY $ Salary 1939 : Title $ 1941 1940 8 Name of Executive 8 Increase in amount of salary in 1941 over 1939 Salary after Federal income Sames 1939 1942 $ 8 8 8 J. 3. Rawley, Jr. President 1Changes between 1939 and 1194 $ 49,000 $ 12,000 $172,000 $123,000 $ 40,442 $ 38,265 $ (2,176) Reserves There is an additional vise president for 1940 and 1943 with a salary for and with a salary of $43,000 for 1941 but no salary is reported for 1939. the secretary-Breasty has a salary of under $10,000 for 1941. PACKARD MOTOR CAR COMPANY sof salary $ sbetween 1959 and 1941 1 sin 1941 gover 1939 1 sChanges 1941 8 1941 8 1 1940 1989 : 2 : # : : 1939 income taxes sin amount # 2 $ : : Title 8 . # Name of Executive Salary after Federal Increase : 8 a Salary $ # : # a a a a a. T. Christopher W. M. Packer V. Pres. V. Pres. Hugh J. Ferry Treas. N. Tibbitta V. Pres. M. M. Gilman A. Macanley Pres. C. R. Paten L. W. Slack Ch. Engr. Aest. sales G. H. Brodie W. L. Griswold Mgr.of Div. J. a. Vincent Ch. of Brd. V. Pres. $ 14,481 $ R. N. Brown Total Mech. Supt. - 11,918 17,506 24,615 21,058 15,406 11,719 27,642 21,780 21,288 18,545 11,544 ( 1,701.) 1,986 21,050 45,960 $8,568 20,521 16,240 65,280 45,280 34,250 20,160 13,850 19,250 43,280 35,000 18,884 15,145 75,380 45,340 31,250 18,000 15,667 $1,080 58,500 42,000 21,030 17,480 75,420 45,340 45,670 21,540 17,088 10,080 12,550 4,382 9,420 11,100 3,238 19,292 88,520 32,962 18,664 14,287 50,849 87,888 29,703 18,558 18,058 8,970 16,575 10,800 9,084 15,500 11,775 16,258 19,500 15,225 7,288 2,925 4,425 8,643 15,461 10,515 11,182 12,715 10,586 ( 2,746) 370,765 362,928 442,641 71,876 521,585 230,158 (91,409) 709 2,180 10,160 60 Remarks Data are shown only for officers with salary of $15,000 and over for 1941. There arells additional officers with a salary of $10,000 and under $15,000 for 1941. The total of these salaries is $179,688 for 1941. 13,619 $ 17,840 $ Mgr. Statistician 5,559 $ 15,425 $ 14 $ ( Camptroller V. Pres. E. c. Mocyle J. H. Marks (18,705) (11,910) 8,280) 2,568) (25,207) (16,108) 8,441 ( 4,995) 1,512) 2,479 273 REPUBLIC AVIATION CORPORATION : 1941 : # : 1 : 1 # - Vice Fres. Vice Pres. T. Davis See.-freas. Total $ President $ 25,875 $ 36,120 8,602 3,194 4.958 42,629 1939 1941 $ : : W. Vallace Vellett A. Kartrole sef salary its 1941 lover 1939 : $ 37,280 $ 11,405 $ 23,202 16,636 25,620 12,620 19.500 24,200 13,000 10,898 21,006 8,042 $ 19.385 8.306 3.179 4,880 12.715 14.728 9.365 90.996 93.980 51,351 39.567 56.193 Remarks: There are 3 additional officers with salary of $10,000 and over for 1941, but salary for 1939 or 1940 is not reported. The total of the salaries for these 3 officers is $56.700 for 1941. Changes between 1939 and 11941 I : 1940 : 1939 income taxes : : sin amount : # Title Salary after Federal $ Name of Executive Increase . Salary $( 3,817) 4,409 11.549 4,485 16,626 ROBINS DRY DOCK AND REPAIR COMPANY . : . . # # No title . : Total Vice President Vice President sin 1941 sover 1939, # 53,869 $ 33,000 25,010 34,010 15,427 11,510 12,000 # 33,275 25,208 35,292 18,654 13,808 12,000 32,535 41,746 21,967 22,282 23,300 20,869 7,525 7,736 6,540 10,772 11,300 130,957 106,737 195,699 64,742 Remarks: Data are shown for only those officers with salary of over $20,000 in 1941. There are 5 additional officers with total salary of $60,390. 1939 Changes 1941 $ between 1939 and 1941 8 . James E. Barns President 8 of salary: . . Joseph Haag, Jr. . Francis J. Gilbride Fred D. Hosley, Sr. Chm. of Board No title , J. Herbert Todd 1941 . * . John D. Reilly 1940 . 1939 income taxes sin amount: $ . # Title . Name of Executive Salary after Federal Increase 8 Salary 28,741 22,519 29,519 14,452 10,955 11,398 $ 23,689 8 (5,058) 17,828 20,724 15,811 13,963 14,371 (4,691) (8,795) ( 641) 117,684 104,366 (15,218) 2,988 2,973 SAVAGE ARMS CORPORATION Increase $ 1941 1 # 3 $ sin 1941 # $ # : $ 1 Total Pres. V. Pres. $ : E. A. MacDonald Ch. of Brd. 10f salary : over 1959 8 : W. L. Wright F. F. Hickey # 1959 : $ 1 $ $ 1940 income taxes sin amount $ 1941 $ # $ 1939 Salary after Federal : & $ Title 8 $ Name of Executive Salary Change besteen 1999 sand 1941 1 8 26,891 $ 34,282 $ 35,740 $ 15,415 11,862 30,375 24,248 48,780 39,520 35,565 27,488 12,668 11,291 22,562 20,037 9,894 8,746 52,188 88,855 121,840 69,652 47,954 60,850 12,886 Remarks: There is one general manager with a salary and bonus of $35,000 in 1941 and $18,899 in 1940, but with no salary shown for 1959. 6,849 $ 24,005 $ 18,251 $ ( 5,754) SPERRY GYROSCOPE COMPANY, INCORPORATED , Salary $ Changes 1941 1939 $ $ $ $ 1941 in 1941 over 1939 $ $ $ $ $ $ $ $ $ $ $ 1940 income texes in amount of salary 1939 Salary after Federal $ $ # Title Increase $ $ Name of Executive $ $ between $ 1939 and $ 1941 $ $ $ , Thomas A. Morgan Reginald E. Gillmor Preston R. Baseett Robert B. Lee Berbert H. Thompson Total Ch. of Brd. President Vice Pres. Vice Pres. Secretary $ 37,484 $ 62,500 $ 28,079 $ 29,835 43,107 29,302 18,500 11,900 50,000 33,500 22,000 15,300 75,000 37,900 23,500 17,000 31,893 8,198 5,000 5,100 36,273 25,894 17,136 11,308 27,575 19,455 14,455 11,900 137,230 158,284 215,900 78,270 120,446 98,380 Remarks: 5 additional officers received salary of $10,000 and over for 1941, but salaries for 1939 and 1940 not reported. The total of the salaries of these 5 additional officers for 1941 is $87,367. $ 25,395 $ $ 34,421 (4.440) (8,698) (6,439) (2,681) 192 (22,066) STANDARD OIL COMPANY AND St IDIARIES (MM/JERSKY) $ $ 1941 $ $ $ $ $ $ $ $ $ # $ $ $ 40,000 $ 40,000 $ 40,000 125,000 80,000 90,000 50,000 75,000 55,000 42,500 35,000 45,000 40,000 50,000 45,800 60,000 42,500 90,000 33,000 125,000 80,000 90,000 55,000 75,000 49,208 47,500 35,000 45,000 45,000 50,000 45,000 54,208 47,500 90,000 38,000 125,000 80,000 90,000 998,100 1,011,416 1,014,531 558000 75,000 45,000 44,531 35,000 45,000 45,000 50,000 50,000 50,000 50,000 90,000 45,000 Remarks Date are shown for only those officers with salary of $40,000 and over in 1941. There are 154 additional officers with salaries of $10,000 and under $40,000 with a total salary of $2,404,311 in 1941. 1939 $ 'in 1941 over 1939 $ $ Total 1941 $ $ No names given 1940 $ $ 1939 income texts $ $ $ of salary $ Title Salary after Federal $ Name of Executive "Increase 'in amount Salary $ Changes $ between $ 1939 and , 1941 8 34,021 $ 20,235 8 (13,786) 33,565 28,375 29,805 23,915 27,575 21,635 21,904 18,655 21,635 21,635 22,855 22,855 22,855 22,855 29,805 21,635 (43,541) (30,356) (33,526) (17,216) (28,646) (22,846) (14,332) (11,616) (16,001) (12,386) (18,276) (14,853) (24,816) (12,981) (33,526) 12,000 77,106 58,731 63,331 41,131 56,221 44,482 35,836 30,271 37,636 34,021 41,131 37,708 47,671 35,836 63,332 28,741 16,431 767,204 411,394 (355,810) - - 5,000 - (10,000) 2,031 - 5,000 - 4,900 (10,000) 7,500 - (7,106) STUDEBAKER CORPORATION sin amount $ 1941 zin 1941 # $ : & 8 $ : : Bert Fowler P. G. Hoffman Pres. W. S. James Chief Eng. V. Pres. S.I.C. Mgr.of Div. Dec. D. Keller P. O. Peterson R. A. Vail H. S. Vance C. K. Whittaker Total Dir. of Pur. V. Pres. Chr.of Brd. Pres., Sub. 8 25,828 $ 24,000 $ 8,172 $ 84,000 $ 22,828 18,697 50,000 20,262 21,740 20,262 20,262 27,828 50,000 25,828 24,000 18,000 60,000 18,000 24,000 18,000 18,000 24,000 60,000 24,000 34,000 25,000 81,000 25,000 34,000 25,000 25,000 34,000 81,000 54,000 11,172 6,303 31,000 4,738 18,260 4,738 4,738 6,172 31,000 8,172 508,585 $12,000 432,000 128,465 Remarket Data are shown for only those officers with salary of $25,000 and over in 1941. There are 18 additional officers with salaries of $10,000 under $25,000 with total salary of $231,813 in 1941. Changes 1941 25,165 $ 20,762 17,303 41,131 18,684 19,885 18,634 18,654 24,745 42,151 23,165 267,169 between 1959 and :1941 1 1 $ K. B. Elliott V. Pres. V. Pres. Gen. Supt. 1939 sover 1959 : 1 1 R. E. Cole 10f salary : : 1940 : # 1939 income taxes : Title : Increase : : Name of Executive Salary after Federal $ $ Salary 18,335 $ 18,335 16,040 28,535 15,040 18,555 15,040 15,040 18,335 23,555 18,355 206,905 ( 4,830) 2,427 2,265) (12,596) 3,594 1,550 5,594 3,594 6,410) (12,596) (4,830) (58,264) SUN OIL COMPANY : : # : Vice Pres. Samuel B. Kokert Frank Cross Vice Pres. Sec. & Treas. Walter C. Pew Gen'1 Sales Mgr. Reg. Sales Mgr. F. S. Reitsel P. H. Harrison J. C. Welliver C. H. Thayer W. D. Mason John G. Pew Ass't. to Pres. Public Relations Chief Engineer Refinery Mgr. Management Comm. Robert W. Pack Thomas L. Foster General Mgr. Chief Counsel Totals 8 60,000 $ 60,000 60,000 60,000 35,000 68,300 20,000 21,600 21,000 20,000 25,000 18,000 21,600 20,000 20,000 25,000 60,000 80,400 46,900 68,300 26,800 28,944 39,450 26,800 25,000 28,644 28,944 26,800 26,800 25,000 474,800 495,500 598,783 Remarks: There are 27 additional officers with salary of $10,000 and under $25,000 for 1941. The total of those salaries is $413,969. Data are shown only for officers with salary of $25,000 and over for 1941. $ - 20,400 11,900 - 6,800 10,944 18,450 9,300 - 13,644 8,944 11,800 11,800 - 123,982 . Vice Pres. Vice Pres. 60,000 60,000 60,000 35,000 68,300 20,000 18,000 21,000 17,500 25,000 15,000 20,000 15,000 15,000 25,000 in 1941 # over 1939 . : Arthur E. Pew, Jr. Pres. of salary 1941 1941 . $ J. Howard Few J. N. Few J. Edgar Pew Changes 1939 $ . 1940 , 1939 income taxes . . Salary , Title Name of Executive Salary after Federal Increase in amount between 1939 and 1941 $ 47,671 8 24,971 $ (22,700) 47,671 47,671 30,271 52,582 18,411 16,701 19,251 16,266 22,511 14,076 18,411 14,076 14,076 22,511 24,971 28,495 22,167 26,495 15,798 16,589 20,135 15,798 15,096 16,483 16,591 16,798 15,798 15,096 (22,700) (19,176) (8,104) (26,087) 402,156 290,281 (111,875) (2,613) (112) 884 (468) (7,416) 2,407 (1,820) 1,722 1,722 (7,415) UNITED AIRCRAFT CORPORATION : : : $ $ : : 51,640 41,233 39.123 14,167 21.500 73.920 58,740 56,450 19,042 22,500 25,430 16,280 15,700 6,792 4.375 186,125 215,246 304,202 118,077 $ 21.753 40,089 35.808 Remarks There is one additional officer with salary of over $10,000 for 1941. but salary is not reported for 1939 and 1940. $ 27,343 34,576 11,624 16,810 27,402 24,205 24,205 12,495 14,035 160,658 130,143 $ 5.592 (12,687) (11,145) (10.371) 871 ( : 48,490 42,460 40.750 12,250 18,125 : $ 49.500 between 1939 and 1941 1 $ 73.550 : : Treasurer sis 1941 sever 1939 :Changes 1941 1 : Total : C. L. Gault Ch. of Board $ 24,050 $ 17.583 President Secretary Vice Pres. Gea. Acct. 1941 : Rayereft Walsh F. E. Buraham 1940 1939 $ : : 1939 10f salary income taxes r # JPS :in amount : # F. B. Rentachler E. B. Wilson 1 Title Salary after Federal : Name of Executive 1 Increase Salary 2.775) (30.515) WESTERN CARTRIDG. JOMPANY , $ 1941 $ Changes $ between $ 1939 and $ 1941 $ $ , $ $ $ $ $ $ $ $ $ 25,000 $ 25,000 $ 125,000 $ 100,000 5,000 15,000 14,500 9,000 9,000 8,000 $ 22,511 15,000 30,000 27,000 15,000 16,000 14,000 $ 33,565 $ 11,054 100,000 50,000 36,000 19,000 24,000 16,000 95,000 35,000 21,500 10,000 15,000 8,000 4,920 14,076 13,636 8,672 8,672 7,752 31,035 22,855 18,975 12,475 14,650 10,990 26,115 8,779 5,339 3,804 5,979 3,238 85,500 142,000 370,000 284,500 80,237 144,545 64,308 1/ Estimated by corporation. Remarks: The salary of F. W. Clin, President, is omitted, as only the 1941 salary of $150,000 is available (1939 and 1940 salaries are omitted). 1939 $ $ $ Asst.Seey. Asst.Treas. Asst.Seey. Aest.Secy. Total $ E. Pagaley $ Asst.frees. in 1941 over 1939 1941 : # E. W. Taft L. N. Peterson R. C. Smaten R. R. Casteal $ Vice Pres. See. Treas. 1940 $ J. M. Clin 8. T. Olia of salary 1939 income taxes in amount $ $ $ $ Title $ $ Name of Executive Salary after Federal Increase $ Salary WESTERN PIPE AND STEEL COMPANY 1940 : : 1939 1941 : : . : Pres. 1941 in 1941 8 27,000 # 27,000 8 40,500 18,000 18,000 18,600 18,000 18,000 24,660 27,000 27,000 . 18,280 79,500 79,500 119,250 Vice-Pres-Socifr. # 15,600 Vice-Pres. Vice-Pres. : Total Changes 1939 : over 1939, , L. N. Slater of salary, income taxes between 1939 and 1941 # 13,500 $ 24,091 $ 16,335 8 (7,756) 14,948 15,820 15,820 (7,484) 9,000 9,000 16,398 16,701 16,701 ( 881) 39,750 72,889 62,917 (9,972) Remarks: 2 additional assistant vice-presidents have a salary of $10,000 and over for 1941, but no salary is reported for these for 1938 and 1940. The total salary received by these 2 additional officers for 1941 is $31,500. . . H. H. Tallerday W. G. Aldenhagen R. D. Plagemen $ Title . Name of Executive Salary after Federal . . Increase in amount Salary 881) WESTINGHOUSE ELECTRIC AND MANUFACTURING COMPANY $ $ $ 1941 $ Changes 1 between $ 1939 and 1 1941 $ $ $ $ $ $ $ $ # Viso Pres. 1939 : $ V.P.A Coap. $ Vice Pres. over 1939 $ $ Total President Vice Pres. in 1941 1941 $ $ Resear Baybold Narold Smith $ Belgh Kelly Ma. P. Harsball Vice . 1940 $ # $ Goo. H. Dusher 1939 income texas $ . . F. A. Berrick Ch. of Brd. $ $ A. W. Robertson of salary $ Title in amount Salary after Federal $ Name of Insecutive $ Increase Salary $ 137,431 $ 164,625 8 180,645 $ 43,214 $ 81,830 47,788 45,808 46,908 42,724 56,139 118,443 54,800 54,438 55,638 51,475 54,531 130,783 59,133 57,321 58,621 55,133 3,175 33,011 11,345 11,513 11,713 12,409 $ 39,129 $ (42,701) 51,356 42,067 66,617 39,604 38,218 38,998 35,997 23,821 3363244 24,742 24,379 24,639 23,942 (18,246) (32,473) (14,862) (13,839) (14,359) (12,055) 469,787 555,558 596,167 126,380 343,333 194,796 (148,535) 97,772 Remarks Date are shown only for officers with salary of $50,000 and over for 1941. There are 13 additional officers with salary of $10,000 and under $50,000. The total of these salaries is $358,312. WESTINGHOUSE ELECTRIC ELEVATOR COMPANY 1940 1 , 1939 # # : : . : President Frank C. Reed $ 33,006 $ 38,106 1941 of salary : 1939 sin 1941 over 1939 $ : between 1939 and 1941 $ 34,723 8 1,718 $ 28,745 $ 18,566 $ (10,179) Remarks: There are no additional officers with salary of $10,000 and over for 1941. . Title Changes 1941 8 $ Name of Executive income taxes . Salary Salary after Federal . Increase sin amount . . . 146 Number and compensation of executives paid $10,000 or more, for selected corporations, 1939-1941 Executives paid $10,000 or more : 1940 1941 1939 1940 : 1939 Total compensation paid (3000) 1941 : : : : Name of company Number of executives : : 4 18 21 290 393 636 36 48 49 10 12 19 35 73 249 187 122 196 12 14 18 1,655 2,278 2,562 1 3 3 1 1 9 4 5 6 1 1 6 6 3 7 5 4 2 7 2 4 90 476 2,190 2,282 2,307 80 145 245 30 37 71 30 53 162 21 129 830 6 2 - 6 9 38 84 325 8 13 42 248 - 2 5 1 37 106 15 25 252 242 10 21 318 264 452 39 39 3,835 3,759 2,634 101 105 121 3,490 5,225 4 4 4 96 98 120 187 274 310 2,754 3,275 2,890 4,421 11 159 171 280 2,283 2,449 2,662 112 114 168 123 173 2/ 61 13 15 15 108 188 516 10 38 7 8 107 94 5 80 2/ 4 7 4 5 2. 2 5 2 1 1 8 2/ 7 6 3 1 2/ 4 4 10 5 5 4 3 2 3 Northern Pump Co. 23 23 7 North American Aviation, Inc. y 5 Dry Dock Corp. 95 95 107 128 382 605 120 165 351 286 270 235 49 36 215 477 443 643 2 1 30 20 22 7 37 91 147 151 180 209 98 142 232 4 2 10 8 8 5 5 Savage Arms Corp. 18 66 10 150 174 505 3,486 4 2. 4 1 2 6 156 185 181 3,071 3,564 19 25 422 422 664 18 42 813 841 1,013 378 281 324 42 42 United Aircraft Corp. United States Steel Corp. 11 10 7 Sun 011 Co. 368 323 298 2/ 85 2/ 142 2/ 520 8 151 80 80 33 38 35 738 798 954 6 7 4 7 4 1 18 1 1 17 Treasury Department, Division of Tax Research Part-year data involved. Not available Exclusive of stock bonus. Source: Data supplied by Collectors of Internal Revenue. LSH-py 134 99 New York Shipbuilding Co. Newport News Shipbuilding & Western Cartridge Co. Western Pipe & Steal Co. Westinghouse Electric Elevator Co. Westinghouse Electric & Mfg. Co. 748 67 17 Dry Dock Corp. Moore Dry Dock Co. Seattle Tacoma Shipbuilding Co. Sperry Qyroscope, Inc. Standard 011 Co. of New Jersey The Studebaker Corp. 465 10 15 Lockheed Aircraft Corp. Los Angeles Shipbuilding & Republic Aviation Corp. Robins Dry Dock & Repair Co. 430 92 Johnstown Water Co. Packard Motor Car Co. 26 3 Ford Motor Company General Electric Co. General Machinery Corp. General Motors Corp. 3/ Glenn L. Martin Co. Grumman Aircraft Corp. Oulf Shipbuilding Co. 388 24 Douglas Aircraft Co., Inc. E. I. du Pont de Nemours & Co. Electric Boat Co. 319 34 36 35 Continental Motors Corp. Cramp Shipbuilding Co. y Dianond T. Motor Car Co. 264 2 20 15 Bendix Aviation Corp. y endix Aviation Ltd. Consolidated Steel Corp., Ltd. y 32 12 2 Beech Aircraft Corp. Bethlehem Steel Corp. 28 1 Bell Aircraft Corp. Boeing Aircraft Co. Carter Carburetor Co. Chrysler Corporation Consolidated Aircraft Corp. 11 51 2 Bath Iron Works 538 366 3 American Woolen Co. 265 154 312 1 4 11 Aviation Corporation Baldwin Locomotive Co. 4 American Locomotive Co. 11 $ American Car & Foundry Co. American Engineering Co. 92 $ 22 20 $ Alabawa Dry Dock 20 April 22, 1942 147 PRELIMINARY Net income before and after income and profits taxes for selected companies, 1939, 1940 and 1941 (Amounts in thousands) : : : (91) 126 10 641 1,037 55,954 9,975 64,912 : 3 7 8 12 Bethlehen Steel Corp. 13 Boeing Aircraft Co. (1,091) (1,664) 44,397 1,801 68,453 1,755 14 Chrysler Corp. 15 Consolidated Aircraft Corp. 16 Consolidated Steel Corp. (Calif.) 17 Consolidated Steel Corp. (Texas) 18 Continental Motors Corp. 3/ 189 161 19 Cramp Shipbuilding Co. 23 E. I. du Pont de Memours & Co. 24 Electric Boat Co. 519 4,966 7,354 57 5,745 1,148 29 Glenn L. Martin Co. 50 Grumman Aircraft Engineering Co. (2) 31 Oulf Shipbuilding Corp. 35 Ingalls Shipbuilding Corp. 54 Lockheed Aircraft Corp. 35 Los Angeles Shipbuildin & Dry Dock Co. 36 Moore Dry Dock Co. 57 Newport News Shipbuilding & Dry Dock Co. 38 New York Shipbuilding Corp. 39 North American Aviation, Inc. 40 Northem Pump Co. 778 (7) 625 5,926 10,274 2,701 15,495 2,928 4,249 9,048 9,899 544 576 5,800 15,575 1,756 1,142 1,194 1,182 2,057 4,289 1,241 5,504 15,436 (595) 42 Republic Aviation Corp. 45 Robins Dry Dock and Repair Co. 58 464 44 Savage Arms Corp. 45 Seattle Takona Shipbuilding Corp. 2/ 4,601 46 Sperry Oyroscope Co., Inc. 47 Standard 011 Co. (N. J.) 2,947 48 Studebaker Corp. 50 United Aircraft Corp. 51 United States Steel Corp. 52 Western Cartridge Co. 53 Western Fipe and Steel Co. (calif.) 54 Westinghouse Electric & Mfg. Co. 55 Westinghouse Electric Elevator Co. 173 4,262 11,795 76,529 6,442 1,008 12,918 126,968 2,354 4,618 35,651 85,547 1,419 5,760 11,466 105,005 2,118 19,408 109,000 2,852 11,276 47,745 20,941 66,975 711 960 926 ,494 2,004 965 240,608 5,723 1,113 142,369 3,265 661 86 35 D a/ 588 500 290 5,115 5,444 9,726 4,555 142 128 557 551 884 (7) 469 1,281 5,225 2,226 7,457 7,929 2,405 1,945 7,092 6,799 279 222 841 904 2,954 1,144 (595) 6,864 1,162 5,437 a 1,920 611 352 856 1,825 861 48 381 1,255 4,621 1,042 806 25,752 202,143 5,127 2,445 4,157 9,919 65,596 12,196 76,061 (14) 5,881 83,925 234,871 701 151 b a a 396 v 195 a 240 (2) 5,149 a 299 14,661 189 174 a 299 5,516 1,422 5,967 3,586 a 995 a 233,366 (14) 24,461 & 4,644 I/ 38,218 8,188 553 a 230,177 1,007 29,941 451 a 37,953 (21)6 12,409 2,192 511 N 63,170 125 5/ 96,876 2,951 19,267 5,923 517,748 b 1,566 41 Packard Motor Car Co. 49 Sun 011 Co. 8,512 2,435 (1,684) 48,420 1,318 (240) 4,112 64 52 Houston Shipbuilding Corp. 6,318 158 16,161 2,918 3,255 47,444 (1,691) a c/ 968 5,322 210,000 266,831 3,812 4,957 28,683 6,396 14,059 866 941 1,019 1,737 16 145,010 56,490 10,639 10 17,814 1,401 4,586 110,215 26 General Electric Co. 2,764 512 455 3,024 26,758 102,316 1,585 547,250 1,769 3,368 27,288 1,579 361 5,955 22,225 274 452 57,308 a/ a 4,448 6,247 103 64,183 4,105 40,127 of 496 (91) 1,007 11,150 56,492 143,225 315 860 3,574 c/ 6,150 (68) 20,028 25 Ford Motor Co. 27 General Machinery Corp. 28 General Motors Corp. (768) 2,159 5,819 20 Curties Wright Corp. 21 Dismond T Motor Car Co. 665 (240) Proposed rates 450 255 1,144 (21)6/ a (655) (2,403) 9 $ 11 Bendix Aviation Corp. 22 Douglas Aircraft Co., Inc. $ 71 10 Bell Aircraft Corp. 12 1,057 2,501 552 3/ $ (68) 0 2,585 2,259 5,637 $ 9 Beech Aircraft Corp. 656 (768) e Aviation Corp. & Bath Iron Works (655) 634 377 1,497 4,723 1,154 9,650 21,516 $ : 1 American Engineering Co. 4 American Locomotive Co. 5 American Moolen Co. Baldwin Locomotive Works 779 286 Present rates , (2,463) American Car and Foundry Co. 2/ 1940 $ : : 1 Alabama Dry Dock & Shipbuilding Co. 2/ 457 1939 : 1940 : 1939 1941 : NO. Net income after income and profits taxes 1/ 1941 I Name of company and profits taxes 1/ : Net income before income 501 2,024 a 117,075 1,789 8,965 181,858 2,225 4,420 166,118 1,254 4,599 17,654 28,067 15,495 78,824 6,925 59,740 a 146,917 a 5,125 6,678 625 576 1,592 28 278 68,571 15,817 18,051 27,771 15,568 16,453 27,165 795 641 549 961 887 555 845 33 April 22, 1942 Treasury Department, Division of Tax Research Source: Date supplied by Collectors of Internal Revenue. ) Indicates loss. ( Not available. Loss of less than $500. M b 1940 income tax rates applicable. & 1/ 2/ 3/ Net income as reported not on a strictly comparable basis between companies. Fiscal year returns. 9 months. Changes to fiscal year basis September so, 1940. 11 months. & s/ w/th B/ 9/ 8 months. Changed to fiscal year basis August 51, 1940. 7 months. Incorporated January 19, 1940. 10 months. 9 months. 6 months. Changed to fiscal year basis June so, 1940. Calculated tax liability under present (1941) rates and under proposed 1942 rates, on the basis of 1941 income, for selected companies 148 PRELIMINARY (Amounts in thousands) : : 9 27 28 29 30 31 32 33 34 35 36 37 Income V 433 676 Inv. Cap. 538 Income N/ 16,161 42,551 5,923 711 517,748 220,087 12,409 5,468 2,192 1,112 Income 189 216 1,007 29,941 3,449 Income Inv. Cap. Inv. Cap. 778 1,118 2,701 339 New York Shipbuilding Co. 3,800 4- 15,573 4,289 1,241 5,304 8,011 4,100 15,436 25,752 202,143 801 Packard Motor Car Co. Republic Aviation Corp. Robbins Dry Dock & Repair Co. Savage Arms Corp. Sperry Qyroscope, Inc. Standard oil Co. of New Jersey Studebaker Corp. 695 815 4,321 70,282 5,128 2,044 Sun oil Co. 11,497 United Aircraft Corp. United States Steel Corp. Western Pipe & Steel Co. Westinghouse Elec. Elev . Co. Westinghouse Elec.& Mfg. Co. 83,925 12,676 11,455 222,128 Not available Income Inv. Cap. Inv. Cap. Inv. Cap. Income 301 Inv. Cap. Inv. Cap. 887 850 Income 68,571 18,800 Income Source: 1941 income data supplied by Collectors of Internal Revenue. Including credit carry-over. Inv. Cap. Inv. Cap. Inv. Cap. Inv. Cap. 1,592 234,871 Treasury Department, Division of Tax Research For 11 months For 9 months. Income Percentage proposed Number increase tax 219 F 860 54.72 75.78 48.63 10,878 5,202 15,269 1,154 2,048 55.91 70.96 41.24 2,396 4,099 7,763 27,716 80,055 25,965 9,679 105,272 39,722 4,441 19,100 23,702 32: 658 1,969 4,779 1,154 2,158 1,569 24,490 3,277 7,654 2,048 5,790 1,925 35,804 16,369 3,700 134 238 154 238 619 808 32,600 4,885 3,404 153,959 8,667 3,500 40.37 282 564 224 355 507 717 19,819 4,369 5,567 20,216 25,386 25.58 6,194 55,565 7,754 15,400 69,468 12,006 19,262 2,068 68,400 2,596 85,512 9,596 3,054 3,829 865 48,427 8,667 1,109 175,814 219,779 101,551 155,600 4,115 5,155 2,571 5,989 587 745 492 786 2,687 101,000 4,885 3,919 277,145 6,686 1,079 58 105 58 - y Dry Dock Corp. Moore Dry Dock Co. North American Aviation, Inc. Inv. Cap. Proposed rates 15,846 309 Inv. Cap. Income Income Income rates 77.42 71.06 24.69 51.50 52.99 24.10 77.42 26.69 52.61 77.42 25.99 35.44 36.77 41.90 77.42 41.57 258 4,938 375,579 9,144 1,531 103 241 427 241 427 77.42 1,068 1,547 351 470 1,255 6,502 860 1,383 5,634 2,569 1,817 2,638 12,136 2,369 27.98 995 1,419 1,855 8,774 1,335 - - 5,192 - - 8 25 26 46,253 556 1,925 7,635 - - - 7 24 45,512 4,105 210,000 420 1,551 6,099 Income Inv. Cap. Inv. Cap. 849 1941 rates 5,582 1,335 324 416 306 492 650 909 2,653 3,328 10,931 826 1,095 2,481 5,544 36,025 1,505 4,154 3,479 10,815 16,787 20,305 2,902 2,330 55,858 87,954 4,423 12,781 15,988 2,079 4,006 20,305 1,902 2,389 999 8,736 15,412 87,954 16,247 156,047 908 280 371 961 21,332 36,025 3,894 4,134 70,432 156,047 1,280 84 111 249 426 335 538 29,000 36,262 11,800 16,942 40,800 53,203 2,330 - 43,339 54,185 - - 681 12,520 42.21 38.52 77.42 44.21 27.11 24.02 27.07 77.42 34.22 77.42 26.09 77.42 33.19 61.69 $0.40 1 2 4 55.74 86.96 5 6 75.50 7 61.89 86.86 54.90 10th 82.91 11 63.78 53.63 15 83.36 14 8 9 5 6 3 4 25 2,299 Inv. Cap. Inv. Cap. Inv. Cap. Proposed 5 1 2 22 $ 21 $ 20 Ingalls Shipbuilding Corp. Lockheed Aircraft Corp. Los Angeles Shipbuilding & 11,269 7,446 Income $ 18 19 Glenn L. Martin Co. Gruman Aircraft Engineering Corp. Gulf Shipbuilding Corp. 27,288 338 5,250 $ 17 General Machinery Corp. General Motors Corp. 9,650 21,516 4,966 7,354 11,130 143,225 64,183 $ 16 Ford Motor Co. 1,154 $ 15 E.I. duPont de Nemours & Co. , 14 Dismond T Motor Car Co. rates Date of tax under : 12 15 Cramp Shipbuilding Co. 1941 rates $ : : 11 Chrysler Corp. Consolidated Aircraft Corp. 2/ : 10 Bethlehen Steel Corp. Proposed rates : Bell Aircraft Corp. 1941 : Method : Amount 1/ #Effective Total tax : : : profits taxes American Locomotive Co. American Hoolen Co. Baldwin Locomotive Co. Bath Iron Works Normal and surtax before in come and American Engineering Co. Excess profits tax : "umber Name of company Excess profits credit : income, : 1941 net 12 72.50 15 75.69 69.86 54.45 71.24 84.79 16 54.94 67.26 69.42 77.93 55.22 73.22 83.38 86.89 82.84 17.82 75.94 35.96 85.92 66.44 80.59 77.59 60.59 17 18 19 20 21 22 25 24 25 26 27 28 29 30 31 52 55 54 35 36 April 22, 1942 149 April 22, 1942 MEMORANDUM FOR THE SECRETARY Two conspicuous examples of recent increases in compensation reported by corporations engaged on government contracts are the Western Cartridge Co., East Alton, Illinois, and the Diamond T Motor Car Co., Chicago, Illinois. Western Cartridge Co. The amount paid eight executives increased from $85,000 in 1939 to $142,000 in 1940 and $520,000 in 1941. The president of the company, who drew no salary in 1939 and 1940, received $150,000 in 1941. The vice-president's compensation increased from $25,000 in 1939 and 1940 to $125,000 in 1941. The secretarytreasurer received $5,000 in 1939, $15,000 in 1940, and $100,000 in 1941. These three officers all have the surname "Olin." The salaries of the five other executives also increased, the aggregate rising from $55,000 in 1939 to $145,000 in 1941. The individual increases ranged from 100 percent to 233 percent. The effects of the tax rates in reducing the largest of the increases are shown in the following table. 1939 0 $ 25,000 5,000 15,000 (approximate) 1941 Estimated $ 150,000 125,000 100,000 30,000 : Salary Remaining after taxes Salary 1939 0 $ 22,511 4,920 13,636 1941 :proposed rates $ 36,065 33,565 31,035 18,975 Increase $ 36,065 11,054 26,115 5,339 In computing the taxes it was assumed that each executive was married with no dependents and had no other income and no deductions. 150 -2Diamond T Motor Car Co. The amounts paid officers (receiving $10,000 or more) declined from $252,000 in 1939 to $242,000 in 1940 and increased to $830,000 in 1941. The number of officers on the list increased from 13 in 1939 and 15 in 1940 to 25 in 1941. The officers appearing on the list for the first time in 1941 include two Washington representatives with compensation of $74,000 and $91,000. A third Washington representative received $11,000 in 1940 and $103,000 in 1941. In 1941 the three Washington representatives were paid a total of $268,000. Practically all officers received higher compensation in 1941 than in either 1939 or 1940. The compensation paid the top five officers increased from $130,000 in 1939 and $127,000 in 1940 to $271,000 in 1941. These include three vice-presidents each of whose compensation increased from $24,000 to $59,000. The fourth vice-president's compensation increased from $14,000 to $34,000. The compensation of the four vice-presidents includes bonuses on a basis established in 1925. The effect of the tax rates on some of the conspicuous salary increases are as follows. Computations could not be made for salaries of the Washington representatives as no report was made on the salaries, 1f any, paid them in 1939. Remaining after taxes (approximate) Salary Salary 1939 1941 1939 $ 60,000 $ 37,636 23,735 13,186 59,152 33,973 21,496 12,463 proposed Increase rates $ 24,915 24,745 18,326 : $ 45,000 1941 ($ 12,721) 3,249 5,863 151 -3Ten salaries combined which increased from $220,647 to $395,613 showed a decrease after taxes (1941 at proposed rates) of $7,819 from $197,306 to $189,387. In computing the taxes it was assumed that each executive was married with no dependents and had no other income and no deductions. 4-22 F 152 COMPENSATION OF EXECUTIVES Explanatory statement in respect to the attached tabulations A detailed tabulation is attached for each of 44 selected corporations for which "Compensation of Executives" data are available. Each tabulation shows by company, the name, title, and amount of salary for 1939, 1940, and 1941, for executives who received $10,000 or over for 1941. Salary includes directors' fees, bonuses, etc. In those instances where the large number of executives makes a complete tabulation impractical, data are shown only for those with larger amounts of compensation. The coverage of each tabulation is indicated under "Remarks." . The salary after Federal income taxes represents the compensation minus Federal income tax computed as follows: (1) Net income assumed to equal amount of salary, (2) Personal exemption of a married person allowed - $2,500 for 1939 and $1,500 for 1941, (3) Maximum earned income credit allowed for 1939. No earned income credit allowed for 1941, and (4) Normal tax and surtax rates as provided by the Internal Revenue Code applicable to the year 1939 applied to 1939. Normal tax and surtax rates as proposed by the Secretary on March 3, 1942 applied to 1941. The summary tabulation shows identical data in aggregate for each of the 44 corporations. : SUMMARY OF COMPENSATION OF EXECUTIVES BEFORE AND AFTER FEDERAL INCOME TAXES FOR 1939 AND 1941 : 2 : (Calif.) Consolidated Steel (Texas) Continental Motors Corp. Cramp Shipbuilding (Wm. Cramp and : : Consolidated Aircraft Corp. Consolidated Steel Corp., Ltd. : : : : Chrysker Corp. tecutives 1939 and Rates 1941 2 : Boeing Aircraft Co. : : companies Proposal $ 103,695 $ 70,602 11,790 -(75,796) 20,507 114,073 17,573 (59,015) 6,877 343,583 524,250 185,025 293,871 239,250 -(54,621) 114,545 25,800 10,032 35,000 175,200 34,280 12,500 49,210 192,747 37,360 19,231 124,167 78,202 11,560 9,199 89,167 103,057 24,313 9,614 32,096 96,631 25,320 12,586 49,093 (6,426) 162,250 12,000 122,625 10,750 196,200 18,000 33,950 6,000 140,536 11,398 97,871 12,995 ((42,665) 1,173,283 1,731,294 1,934,458 58,864 793,500 83,835 855,034 90,135 891,333 761,175 31,271 97,833 794,488 55,811 616,846 62,109 354,044 80,000 122,161 184,567 104,567 74,657 93,569 18,912 5 40,400 33,471 66,000 25,600 38,372 44,000 5,628 4 30,000 29,604 52,903 22,903 28,099 29,273 1,174 Not available Bendix Aviation Corp. Bendix Aviation Ltd. Bethlehem Steel Corp. & Subsidiary of ex- Change 1941 between 184,338 15,383 Aviation Corporation Bell Aircraft Corporation over 1939 1939 Number 83,188 146,398 10,219 Not available Bath Iron Works Corp. Beech Aircraft Corp. zin 1941 $ 153,571 $ 265,321 $ American Car and Foundry Co. American Engineering Co. American Locomotive Co. American Woolen Co.,Inc. Baldwin Locomotive Works : 92,325 173,088 10,696 10f salaries: : 2 : : $ 1941 : Alabama Dry Dock and Ship- building Co. 1940 income taxes : : 1939 Salaries after Federal 1 Name of company :Increase :in amount # Salaries 1 339,225 Not available Sons Ship and Engine Building Co. Not available 172,996 $ 4 5 1,571 1 12 5 1,007 2,972 16,997 2 1 2 5 597 508,115 - (292,373) 1 16 6,298 - (262,800) 6 14 2 SUMMARY OF COMPENSATION OF EXECUTIVES BEFORE AND AFTER FEDERAL INCOME TAXES FOR 1939 AND 1941 (CONTINUED) 1941 Rates between 1939 and 1941 secutives :included : : : : : over 1939 1939 : : : : : 1 1 : : : 1,299,101 General Machinery Corp. General Motors Corp. 151,995 3,208,945 111,529 Glen L. Martin Co. : 1,228,000 General Electric Co. :in 1941 : : I 220,647 166,715 Ford Motor Co. Electric Boat Co. of salaries: Number 1 of ex- :Change Not available 101,000 Douglas Aircraft, Inc. 1941 income taxes : 1940 188,750 161,646 2,174,679 105,083 E.I. duPont de Nemours and Co. :in amount Salaries after Federal : 1939 Curtis Wright Diamond-T Motor Car Co. Increase : Name of company Salaries 1 $ 174,966 $ 197,306 140,255 86,576 (7,819) (33,279) (720,528) (23,509) 10 20 20,000 89,799 189,487 106,976 396,931 66,290 1,466,550 238,550 878,780 511,156 (367,625) 165,339 3,265,130 114,441 226,100 3,083,210 145,023 75,105 133,420 (16,562) (1,044,312) (25,239) 48,160 79,194 85,016 107,700 95,044 2,019,109 Not available $ 395,613 253,291 1,446,761 121,000 (572,348)1,117,459 $ 33,494 98,195 116,858 754,017 72,958 96,570 48,410 43,491 44,886 1,395 108,000 475,000 22,984 367,300 78,820 99,389 67,580 166,750 (11,240) 107,000 6,000 90,803 65,365 (25,438) 136,142 113,565 20,590 (125,735)1,798,329 5 12 4 8 22 4 Grumman Aircraft and Engineering Company Gulf Shipbuilding Corp. Houston Shipbuilding Corp. Ingalls Shipbuilding Corp. Lockheed Aircraft Corp. Los Angeles Shipbuilding and Drydock Co. Moore Drydock Co. Newport News Shipbuilding and Drydock Co. New York Shipbuilding Corp. North American Aviation, Inc. Northern Pump Company Packard Motor Car Co. Republic Aviation Cbrp. Robins Drydock and Repair Co. Savage Arms Corp. Not available Not available 177,000 2 5 67,361 6 Not available 101,000 101,750 5 Not available 127,925 339,010 240,448 325,358 313,700 300,050 185,775 (38,960) 115,552 225,697 49,000 370,765 42,629 130,957 52,188 12,000 362,928 90,996 106,737 172,000 442,641 93,980 195,699 123,000 71,876 51,351 64,742 40,441 321,565 39,567 117,584 38,265 230,156 56,193 104,366 (13,218) 88,853 121,840 69,652 47,964 60,850 12,886 6 (112,132) (2,176) (91,409) 5 1 14 16,626 4 6 3 SUM-ARY OF COMPENSATION OF EXECUTIVES BEFORE AND AFTER FEDERAL INCOME TAXES FOR 1939 AND 1941 (CONTINUED) : of salaries: 1939 1941 : : : 1 :between of ex- : ecutives 1939 and :included Rates 1941 Proposed : :in 1941 :over 1939 : : : : : : 1941 Number :Change : : : : : : : : : : 137,230 998,100 303,535 474,800 Standard Oil Co. (N.J.) Studebaker Corp. Sun Oil Company United Aircraft Corp. United States Steel 158,284 215,500 1,011,416 1,014,531 312,000 495,500 186,125 432,000 598,782 78,270 16,431 128,465 123,982 120,446 767,204 267,169 402,156 98,380 411,394 208,905 290,281 (22,066) (355,810) (58,264) (111,875) 215,246 304,202 118,077 160,658 130,143 (30,515) 6 85,500 142,000 370,000 284,500 80,237 144,545 64,308 7 79,500 79,500 119,250 39,750 72,889 62,917 (9,972) 469,787 555,558 596,167 126,380 343,331 194,796 (148,535) 33,005 38,106 34,723 1,718 28,745 18,566 (10,179) Not available Western Cartridge Co. Western Pipe and Steel Co. (Calif.) Westinghouse Electric & Manufacturing Co. Westinghouse Electric Elevator Company 1 2 1940 income taxes Not available Seattle-Tacoma Shipbuilding Corp. Sperry Gyroscope Co. Inc. Total :in amount Salaries after Federal : 1939 Increase : Salaries 1 14,580,880 16,118,926 17,977,501 3,397,62110,380,214 6,662,661 (3,717,554) In general includes compensation of executites who received $10,000 and over for 1941 and for which 1939 and 1940 data are available. However, for certain corporations with a large number of executives a higher salary level was adopted. (Prepared by Statistical Section, Income Tax Unit, for Mr. Roy Blough, Director of Tax Research, April 23, 1942.) 5 17 11 15 4 7 1 300 ALABAMA DRY DOCK AND SHIPBUILDING COMPANY in 1941 over 1939 : 1939 : : : : : : : : : : : : : : : Total Vice Pres. Vice Pres. 1941 income taxes : : B. F. Campbell Treas. $ : J. M. Griser President V.P., Secy, of salary : D. R. Dunlap G. H. Dunlap 1940 in amount Salary after Federal : : 1939 : Title Increase : : : Name of Executive $ Salary 1941 : Changes $ between 1939 and Rates : 1941 35,085 $ 54,630 $ 88,075 $ 52,990 $ 30,335 $ 29,535 $ 20,199 20,199 16,842 32,432 35,558 30,951 56,998 63,230 57,018 36,799 43,031 40,176 18,580 18,580 15,693 24,315 25,527 24,318 5,735 6,947 8,625 92,325 153,571 265,321 172,996 83,188 103,695 20,507 Remarks: All executives with salary of $10,000 and over are included. (800) AMERICAN CAR AND FOUNDRY COMPANY 2 over 1939 : Changes between 1939 and 1941 : : : : : : : : : : % : % $ 20,288 $ 27,088 $ 20,871 $ 1941 $ 101 salary 2 :in 1941 1939 : 1940 tin amount : 1941 : 1 : : : : : : : 2 : Not shown. Official of Carter 1939 inc me taxes 2 : : Carburetor Company : Not shown. Official of Carter : : Title Name of Executive Salary after Federal Increase : Salary 583 $ 18,656 $ 13,332 $ (5,324) Carburetor Company 66,000 91,000 21,328 (44,672) 51,271 13,538 (37,733) Car and Foundry Co. 22,500 20,000 21,458 ( 1,042) 20,496 13,596 ( 6,900) Car and Foundry Co. 24,300 22,500 21,458 ( 2,842) 21,954 13,596 ( 8,358) Car and Foundry Co. 40,000 23,750 28,958 (11,042) 34,021 16,540 (17,481) 173,088 184,338 114,073 (59,015) 146,398 70,602 (75,796) Not shown. Official of American Not shown. Official of American Not shown. Official of American Total Remarks: There are 50 additional officers with total salary of $900,248 in 1941 for which there are no available data for 1939. AMERICAN ENGINEERING COMPANY : : 1 : : 1 : : 1 : Remarks: The Vice President and General Manger with a salary of $14,563 for 1941 and $12,307 for 1940 is the only other officer with a salary of $10,000 and over, but his salary is not available for 1939. :in 1941 over 1939 : $ 17,573 $ 6,877 $ 1959 1941 Changes between 1939 and : : 15,383 of salary % : $ 1941 : : : $ 10,696 : : Pres. 1940 : : 1939 income taxes :in amount : : : : William V. Sauter : Title 2 Name of Executive Salary Salary after Federal Increase : :1941 10,219 $ 11,790 $ 1,571 AMERICAN WOOLEN COMPANY 1941 of salary: sin 1941 Changes 1939 1941 : : over 1939: between 1939 and 1941 $ : 1940 $ 1939 Federal Income Taxes : Title Name of Executive Salary after Increase 1 in amount: Salary 1 : : R. H. Montgomery C. H. Silver T. W. Prestwich A. B. Walls, Jr. H. C. Scheer E. F. Williams A. H. Eddy T. E. Greenway W. M. Lamont M. G. Einstein Totals Pres.& Sales Mgr. Treasurer Clerk & Gen. Counsel Gen. Sales Mgr. Div. Mgr. Div. Mgr. Credit Mgr. Res. Mgr. Res. Mgr. Res. Mgr. Res. Mgr. Res. Mgr. $ 73,125 $ 75,000 $ 125,000 18,000 18,000 45,000 27,000 27,000 22,500 25,000 15,000 21,100 22,500 25,000 18,000 18,000 45,833 27,750 27,000 22,500 25,000 15,000 22,000 22,500 25,000 25,000 25,000 65,000 42,000 40,000 28,000 45,000 35,000 34,250 32,500 27,500 339,225 343,583 524,250 $ 51,875 $ $ 33,565 7,000 7,000 20,000 15,000 13,000 5,500 20,000 20,000 13,150 10,000 2,500 55,227 16,701 16,701 37,638 24,091 24,091 20,496 22,511 14,076 19,334 20,496 22,511 185,025 293,871 239,250 Remarks: Data are shown only for officers with salary of $25,000 and over. There are 14 additional officers with salary of $10,000 and under $25,000 for 1941. The total of these salaries is $223,500 for 1941. 15,040 15,040 25,845 20,795 20,235 16,195 21,635 18,655 18,415 17,815 16,015 $ (21,662) 1,661) ( 1,661) (11,791) ( 3,296) ( 3,856) ( 4,301) ( 876) 4,579 ( M. Pendleton F. S. Connett 919) ( 2,681) ( 6,496) (54,621) BALDWIN LOCOMOTIVE WORKS : zin 1941 : over 1939 : : : : : : : 54,240 $ 60,220 $ 24,000 $ 25,100 21,975 13,250 18,000 36,240 36,220 23,500 25,000 40,180 37,847 26,500 28,000 15,080 15,872 13,250 10,000 114,545 175,200 192,747 78,202 : 36,220 $ : : : Remarket Data are shown only for officers with salary of $25,000 and over for 1941. There are 28 additional officers with a salary of $10,000 and under $25,000 for 1941. The total of these salaries is $416,530 for 1941. Changes 1941 31,186 $ 22,590 20,060 12,520 16,701 103,057 between 1939 and 1941 24,959 $ 20,286 19,566 15,625 16,195 96,631 (6,227) (2,304) ( of salary 1 1939 % : 1941 income taxes :in amount : : : 2 : 2 Totals $ : Carlos F. Noyes : 1940 Increase : 1 2 1 William H. Winterrowd Charles E. Acker Not stated Not stated Not stated Not stated Not stated : Charles E. Brinley William H. Harman 1939 Salary after Federal 2 : Title Name of Executive Salary 494) 3,105 ( 506) (6,426) BATH IRON WORKS CORPORATION Salary after Federal income taxes :in amount 1 :of salary : :in 1941 1939 % 1941 : 1941 : : :over 1939 : : : : : 2 : : : : : : : : : $ 15,000 $ : 1940 :Increase 2 : : : $ Total Pres. V. P. : W. S. Newell A. M. Main 1939 : : Title Name of Executive Salary Changes between 1959 and 1941 19,880 $ 21,780 $ 6,780 $ 14,076 $ 14,544 $ 468 10,800 14,400 15,580 4,780 10,237 10,776 539 25,800 34,280 37,360 11,560 24,313 25,320 1,007 Remarks: There is an additional vice-president with a salary of $11,610 for 1941. Salary for 1939 and 1940 not available. BEECH AIRCRAFT CORPORATION 1 sin 1941 1 over 1939 $ 1941 :Changes between 1939 and 1941 $ 12,500 $ 19,231 $ 9,199 $ 9,614 $ 12,586 $ 2,972 1 : : : Remarks: This is the only officer listed with a salary of $10,000 and over for 1939, 1940 or 1941. : $ 10,032 of salary : 1939 : Pres. sin amount : Walter H. Beech : 1941 income taxes : : 1940 1939 : : Title Name of Executive Salary after Federal : Salary Increase BELL AIRCRAFT CORPORATION 10f salary 2 $ : : : over 1939 : : : : : : : % 35,290 $ 85,000 $ 60,000 $ 10,000 15,920 39,167 29,167 9,585 35,000 49,210 124,167 89,167 32,096 1 Remarks: There are 7 additional officers with total salary of $125,873 in 1941 but for which 1939 and 1940 data are not available. : 1941 22,511 $ Changes between 1939 and 1941 1 zin 1941 1939 : : 1941 income taxes zin amount 2 2 : Total $ 25,000 $ : : Ray P. Whitman Pres. V. Pres. : 1940 Increase : : : : Lawrence D. Bell 1939 2 : Title Salary after Federal : Name of Executive Salary 29,105 $ 19,988 6,594 10,403 49,093 16,997 BENDIX AVIATION PORATION sin 1941 Changes 1939 : of salary income taxes 1941 : # # : : : # # : # : : over 1939 : between 1939 and 1941 : $ : # V.P. & Treas. Vice Pres. Vice Pres. Vice Pres. 1941 $ E. R. Palmer 1940 : : 2 President Total 1939 sin amount : # # Vincent Bendix D. O. Thomas Charles Marous W. L. MoGrath 1 Title Salary after Federal Increase : Name of Executive Salary $ 50,000 $ 37,500 $ 60,000 $ 10,000 $ 41,131 20,000 27,500 39,750 25,000 18,750 20,625 27,000 18,750 $ 24,915 $ (16,216) 30,000 33,000 43,200 30,000 10,000 5,500 3,450 5,000 18,565 24,486 33,833 22,521 16,915 17,995 21,131 16,916 (1,650) (6,491) (12,702) (5,606) 162,250 122,625 196,200 33,950 140,536 97,871 (42,665) Remarks: Data includes all officers with salary of $10,000 and over. - 4) a BENDIX AVIATION, LTD income taxes zin amount : of salary : % tin 1941 over 1939 2 1939 Changes 1941 : : 1941 2 : : : 2 2 % : : : 2 1939 1940 Increase : Salary after Federal % : : : : 2 : : % : Palmer Nichols Title : Name of Executive Salary % between 1939 and 1941 V. P. $ 12,000 $ 10,750 $ 18,000 $ 6,000 $ 11,398 $ 11,995 $ Remarks: This is the only officer receiving a salary of $10,000 and over for any of the years 1939, 1940 and 1941. 597 BETHLEHEM STEEL CORPORATION AND SUBSIDIARY COMPANIES : $ , R. H. Sehlottman Paul Mackall H. W. Warley Asst. Comptroller W. M. Driver Total Asst. Sec. Asst. Seer Vice Pres. (Del.) Pres. of Sub. 1,173,283 42,846 # 478,144 50,000 179,443 139,506 84,690 48,226 139,506 89,690 99,690 42,846 37,843 33,798 34,088 179,443 51,535 47,810 537,724 50,000 197,317 165,398 94,620 56,472 155,393 99,620 109,620 47,810 45,365 41,220 41,622 197,317 57,155 1,731,294 1,934,458 $ between 1939 and 1941 $ 22,330 # 79,953 71,061 44,422 16,068 71,061 44,422 44,422 22,178 16,522 16,298 16,544 79,953 16,957 25,010 128,548 74,204 74,204 60,780 41,268 34,324 60,780 44,610 50,814 23,011 25,540 22,449 22,573 74,206 34,169 74,837 22,865 40,796 36,604 30,389 24,209 36,604 30,989 32,027 22,330 21,737 20,577 20,689 40,796 24,346 (58,711) (51,349) (33,408) (24,176) (10,879) (10,115) (24,176) (13,621) (18,787) 761,175 794,488 502,115 (292,373) 22,178 266,500 (67,364) $ ( : Treas. over 1939, $ : : J. P. Bender W. H. Johnstone $ 1941 : : Vice Pres. Vice Pres. Vice Pres. &Sec. Vice Pres. Vice Pres. Vice Pres. &Compt. Vice Pres. Vice Pres. sin 1941 : Pres. (Pa.) 25,632 271,224 117,364 117,364 84,332 50,198 40,404 84,332 55,198 65,198 25,632 28,843 24,922 25,078 117,364 40,198 of salary: : $ 1941 Changes 1939 : # # F. A. Shiek J. M. Larkin Chas. R. Holten Treas. 1940 : W. J. Brown E. G. Grace C. A. Buck q. Beat R. E. MoNith J. M. Gross W. H. Stewart 1939 . Title income taxes sin amount $ Salary # Name of Executive Salary after Federal Inorease : 680) 681) 3,803 1,872) 1,884) (83,408) 9,823) Remarks: Data are shown only for officers with salary of $35,000 and over for 1941. There are 12 additional officers with salary of $10,000 and under $35,000 for 1941, for which salary is reported for 1939 and 1940. The total of these salaries is $271,249 for 1941. 166 BOEING AIRCRAFT COMPANY $ $ 12,940 6,067 12,940 8,185 8,785 8,269 10,990 62,109 : : : : : : 13,810 10,035 10,800 2,134 14,327 10,193 10,795 8,672 1,673 83,835 90,135 31,271 55,811 333 667 : : Remarks: There are no additional officers with salary of $10,000 and over. , :1941 $ 18,411 20,000 11,000 12,000 11,135 16,000 :Changes :between :1939 and : 58,864 $ 20,000 1941 : : Total : H. O. West 6,190 10,667 11,333 9,001 1,673 $ 20,000 20,000 11,000 12,000 : R. J. Minshall J. P. Murray President Vice Pres. Vice Pres. Vice Pres. Exec. V.P. $ 20,000 :in 1941 :over 1939 : 1939 : : : : P. G. Johnson F. P. Landan Chairman :of salary : : : 0. L. Egtvedt : 1941 1940 income taxes : : 1939 : : Title Increase :in amount : Name of Executive Salary Salary after Federal $ ( 5,471) 6,873 ( 2,008) ( 2,010) ( 403) 9,317 6,298 CHRYSLER CORPORATION : : $ : : : $ 50,000 72,000 90,000 60,000 37,500 45,000 85,000 60,000 60,000 35,000 26,500 32,500 40,000 50,000 72,000 90,000 60,000 47,284 63,750 85,000 60,000 60,000 43,633 35,567 43,633 44,167 50,000 72,000 90,000 60,000 50,000 72,000 85,000 60,000 60,000 50,000 42,333 50,000 50,000 793,500 855,034 891,333 $ Remarks: Data are shown for only those officers with salary of over $40,000 in 1941. There are 92 additional officers with salary of $10,000 and under $40,000 with a total salary of $1,415,936 in 1941. : : $ 100,000 $ 1941 $ $ Total $ 100,000 1939 : D. S. Eddins Not stated Not stated $ 100,000 : C. E. Bleicher N. J. O'Neil Not stated Not stated Not stated Not stated 'in 1941 over 1939 $ : O. R. Skelton Carl Breer D. A. Wallace 1941 : : Fred M. Zeder : H. L. Weckler $ # A. Van Der Zee : B. E. Hutchinson W. Ledyard Mitchell Not stated Not stated Not stated Not stated Not stated Not stated Not stated Not stated 1940 : $ Byron C. Foy 1939 income taxes : $ : K. T. Keller J. E. Fields : of salary $ Title Salary after Federal $ Name of Executive : Increase : in amount Salary $ Changes $ between : 1939 and : 1941 $ 67,531 $ 31,035 $ (36,496) 22,855 27,095 29,805 24,915 22,855 27,095 29,105 24,915 24,915 22,855 20,889 22,855 22,855 (18,276) (27,536) (33,526) (22,756) 15,000 15,833 17,500 10,000 41,131 54,631 63,331 47,671 32,146 37,636 61,081 47,671 47,671 30,271 23,696 28,356 34,021 (11,166) 97,833 616,846 354,044 (262,800) - - - 12,500 27,000 - - 9,291) (10,541) (31,976) (22,756) (22,756) (7,416) (2,807) (5,501) CONSOLIDATED AIRCRAFT CORPORATION : : : : : : # Total : J. L. Kelley : C. A. Van Dusen Vice Pres. Vice Pres. Assistant Sec. $ :Changes 1939 1941 : R. H. Fleet C. T. Leigh Vice-Pres. President-Mgr. over 1939 1941 : : I. M. Laddon : 1940 : Name of Executive 1939 income taxes : Title Salary after Federal : Increase in amount of sallary in 1941 Salary between 1939 and 1941 18,000 20,000 14,000 16,000 12,000 $ 25,630 $ 37,505 $ 19,505 $ 16,701 35,943 20,036 22,443 18,109 62,505 28,130 31,255 25,172 42,505 14,130 15,255 13,172 18,411 13,191 14,956 11,398 25,396 6,985 16,242 17,367 16,107 3,051 2,411 3,709 80,000 122,161 184,567 104,567 74,657 93,569 18,912 Remarks: Data are shown only for officers with salary of $25,000 and over for 1941. There are 17 additional officers with salary of $10,000 and under $25,000 for 1941, for which salary is reported for 1939 and 1940. The total of these salaries is $236,514 for 1941. $ 19,457 $ 2,756 CONSOLIDAWED STEEL CORPORATION. LIMITE : : :over 1939 : : Total Not stated Not stated Not stated Not stated 1941 :Changes :between :1939 and : : L. R. Earl H. C. Cranfill :in 1941 1939 : : D. G. Henderson Alden G. Roach of salary : 1941 : 1940 : 1939 : Title income taxes : : Name of Executive Salary after Federal Increase :in amount Salary 1 :1941 $ 16,000 $ 13,667 $ 22,000 $ 6,000 $ 14,956 $ 13,825 14,000 6,350 4,050 11,333 5,333 3,138 22,000 12,000 10,000 8,000 5,650 5,950 13,191 6,221 4,004 13,825 8,785 7,565 2,564 3,561 40,400 33,471 66,000 25,600 38,372 44,000 5,628 1 1939 data for calendar year - 1940 for period January 1, 1940 to August 31, 1940 - 1941 fiscal year ended August 31, 1941. Remarks: There is one additional officer with a salary of $15,000 for 1941, but no salary reported for 1939 and 1940. $ ( 1,131) 634 CONTINENTAL MOTORS CORPORATION Salary after Federal : 1941 : 1 : : : : : 1 : over 1939 : : : : : Total : Clarence Reese of salary in 1941 :Changes 1939 : $ : W. R. Angell, Sr. 1941 : 1940 : 1939 income taxes : : : Title in amount : Name of Executive : Increase Salary between 1939 and 1941 Technical Adviser $ 18,000 $ 13,000 $ 12,000 $ 16,701 $ 8,785 12,000 16,604 40,903 28,903 11,398 20,488 9,090 30,000 29,604 52,903 22,903 28,099 29,273 1,174 President Remarks: 5 additional officers have salaries of $10,000 and over for 1941, but their salaries are not reported for 1939 or 1940. The total of the 1941 salaries for these 5 additional officers is $109,165. $ (6,000) $ (7,916) DIAMOND T. MOTOR R COMPANY of salary in 1941 over 1939 : Changes 1939 : between $ 1939 and : $ : : : $ : : : : $ Total 1941 $ # G. C. Stevens 1940 income taxes : # L. P. Larsen C. G. Wirick # T. C. Huxley, Jr. F. J. Hollearn $ H. C. Emberson : Sidney A. Cook C. A. Peirce $ E. J. Bush 1939 Salary after Federal $ 1941 $ $ C. A. Tilt # Title : Name of Executive Increase in amount $ : $ Salary 1941 Pres., Treas. $ 45,000 $ 45,000 $ 60,000 $ 15,000 $ 37,636 $ 24,915 $ (12,721) V.P.,S.Mgr. V.P.,Secy. V.P.,Ch.Engr. Purch.Agt. V.P.,S.Mgr. 23,735 23,735 23,735 13,186 13,686 17,300 10,006 38,196 12,068 22,177 22,177 22,177 13,321 15,321 14,491 10,454 10,926 12,706 59,152 59,152 59,152 33,973 33,973 18,696 10,771 41,155 19,589 35,417 35,417 35,417 20,787 20,287 1,396 2,959 7,521 21,496 21,496 21,496 12,463 12,910 16,092 9,590 32,668 11,459 24,745 24,745 24,745 18,326 18,326 12,329 8,043 20,558 12,755 (3,763) (1,547) (12,110) 1,296 220,647 188,750 395,613 174,966 197,306 189,487 (7,819) Dist. Mgr. Dist. Mgr. Nat.Acct.Rep. Chgo.Branch Remarks: There are 13 additional officers with salary of $10,000 or more for 1941, for which salaries for 1939 or 1940 are not available. 765 3,249 3,249 3,249 5,863 5,416 DOUGLAS AIRCRAFT COMPANY INCORPORATED 1939 in 1941 over 1939 : : : : : : F. W. Conant Carl A. Cover Donald W. Douglas H. E. Guerin A. E. Raymond Total Not stated Not stated Not stated Not stated Not stated $ 9,000 $ 11,500 $ 20,500 $ 11,500 $ 8,671 30,000 66,667 37,298 23,750 37,500 75,000 12,646 25,000 52,500 105,000 42,791 32,500 22,500 38,333 5,493 8,750 26,431 51,651 31,994 21,508 166,715 161,646 253,291 86,576 140,255 Remarks: Date are shown only for officers with salary of $20,000 and over for 1941. 16 additional officers received salary of $20,000 and over for 1941. The total salary of these 16 officers for 1941 is $198,570. 1941 Changes between 1939 and : of salary : 1941 : 1940 : 1939 : Title income taxes : Name of Executive Salary after Federal : Increase in amount Salary 1941 $ 13,165 $ 4,494 23,415 ( 3,016) 31,565 ( 20,086) 21,016 ( 10,978) 17,815 ( (3,693) 106,976 ( 33,279) E. I. DUPONT DE MEMOURS AND COMPANY : J. E. Crane A. B. Echols W. F. Harrington J. W. McCoy C. M. A. Stine F. A. Wardenburg E. B. Yancey William Richter E. G. Robinson L. A. Yerkes Total Gen. Mgr. Gen. Mgr. Gen. Mgr. Gen. Mgr. Gen. Mgr. $ 174,825 213,806 179,394 178,435 179,685 168,185 172,915 140,196 111,508 162,763 169,655 167,742 2,019,109 $ 190,187 290,766 194,587 198,582 197,178 186,698 189,248 151,866 101,864 171,493 184,115 118,095 $ 120,470 2,174,679 1,446,761 214,470 116,930 129,990 122,670 122,690 120,470 90,970 92,990 94,890 107,620 112,601 $( 54,355) : W. S. Carpenter, Jr. Vice Pres. President. Vice Pres. Vice Pres. Vice Pres. Vice Pres. Vice Pres. :Changes :between :1939 and : : J. Thompson Brown :in 1941 :over 1939 1941 : 1941 : 1940 1939 :of salary : Title income taxes 1939 :1941 : Name of Executive Salary after Federal Increase :in amount Salary 95,593 109,400 97,238 96,893 97,343 93,203 94,905 82,880 71,979 91,250 93,732 93,043 $ 33,112 $ (62,481) 42,512 32,758 34,064 33,332 33,334 33,112 29,941 30,193 30,421 31,827 32,325 (66,888) (64,480) (62,829) (64,011) (59,869) (61,793) (52,939) (41,786) (60,829) (61,905) (60,718) (572,348) 1,117,459 396,931 (720,528) 664 ( 62,464) ( 48,445) ( 57,015) ( 45,495) ( 52,445) ( 49,226) ( 18,518) ( 67,873) ( 62,035) ( 55,141) Remarks: Data are shown only for officers with salary of $90,000 and over for 1941. There are 27 additional officers with salary of $10,000 and under $90,000 for 1941. The total of these salaries is $1,187,453 for 1941. ELECTRIC BOAT COMPANY : :in 1941 1939 Changes 1941 : of salary : 1 : : over 1939 1 : : : 1 : : : : $ 30,000 $ 31,000 $ 36,000 $ between 1939 and 1941 6,000 $ 26,431 $ 18,975 $ (7,456) 30,000 30,000 11,000 31,000 31,000 12,083 36,000 36,000 13,000 6,000 6,000 2,000 26,431 26,431 10,506 18,975 18,975 9,365 (7,456) (7,456) (1,141) 101,000 105,083 121,000 20,000 89,799 66,290 (23,509) : Remarks: All executives with salary of $10,000 and over are included. : : Total 1941 : 2 T. Y. Spear H. A. Taylor : H. R. Sutplin income taxes :in amount : : : Pres. V. Pres. V. Pres. Treasurer % 1940 1939 Increase : : : H. Carsi : : Title Salary after Federal % Name of Executive Salary FORD MOTOR : : Charles E. Sorenson A. M. Wibel J. R. Davis W. K. Edmunds Ned Fuller R. H. McCarroll H. B. Hansom Total Not stated Not stated Not stated Not stated Not stated Not stated Not stated Not stated : L. S. Sheldrick 1,228,000 1,299,101 in 1941 over 1939 : Changes 1939 1941 : # R. I. Roberge Not stated Not stated : R. R. Rausch : : W. F. Pioch 56,307 40,505 109,466 52,812 45,175 144,620 54,582 178,259 41,688 28,548 21,002 37,921 37,629 177,005 82,951 47,000 41,500 41,809 31,072 29,250 : # Herman L. Mockle $ of salary : : : P. E. Martin : Jos. Galamb 52,000 39,000 104,000 49,500 32,500 143,000 54,500 169,000 39,000 26,000 19,000 35,000 35,000 169,000 78,000 47,000 41,500 39,000 28,500 27,500 : Edsel B. Ford $ 1941 income taxes : $ B. J. Craig John Crawford H. C. Doss Not stated Not stated Not stated Not stated Not stated Not stated Not stated Not stated Not stated 1940 Salary after Federal : : W. J. Cameron Not stated : 1939 M. L. Bricker : Title Increase in amount : Salary : Name of Executive PANY $ 67,873 43,005 116,082 58,874 51,223 234,757 56,102 82,983 50,237 37,010 45,027 42,964 47,653 220,005 101,051 47,000 41,500 46,350 39,585 37,269 1,466,550 Remarks: Data are shown only for officers with salary of $35,000 and over for 1941. There are 100 additional officers with salary of $10,000 and under $35,000 for 1941. The total of these salaries is $2,023,764 for 1941. $ : between : 1939 and : 1941 $ 42,511 $ 26,362 $ (16,149) 21,077 32,673 24,690 23,148 44,541 24,136 28,823 22,912 19,299 21,643 21,064 22,292 43,066 31,161 22,135 20,655 21,979 20,119 19,381 (12,194) (36,453) (16,096) 7,350 11,085 9,769 33,271 69,126 40,786 28,356 83,946 44,156 93,496 33,271 23,301 17,561 30,271 30,271 93,496 57,751 39,061 35,116 33,271 25,276 24,486 238,550 878,780 511,156 15,873 4,005 12,082 9,374 18,723 91,757 1,602 (86,017) 11,237 11,010 26,027 7,964 12,653 51,005 23,051 - - 5,208) (39,405) (20,020) (64,673) (10,359) 4,002) 4,082 9,207) 7,979) (50,430) (26,590) (16,927) (14,461) (11,292) (5,157) (5,105) (367,625) THE GENERAL MACHINERY CORPORATION : : : 165,339 226,100 : Remarks: There are 5 additional officers with salaries of $10,000 and over for 1941. These salaries total $53,500. No 1939 data available. 1941 $ 48,891 $ 30,195 $ (18,696) 5,000 8,975 12,430 15,831 7,567 20,901 11,850 12,297 10,517 5,566 15,040 11,245 14,035 9,365 11,995 12,940 12,043 75,105 133,420 116,858 ( 500) 500 791) 3,678 6,866) 2,485) ( : : : 151,995 31,000 8,000 8,700 between 1939 and ( : : 25,000 16,500 22,500 13,000 18,000 20,000 18,100 Changes 302) ( : 19,000 8,850 23,000 12,500 13,200 15,500 8,289 : 65,000 $ 93,000 $ 17,000 7,800 23,000 12,500 13,000 11,025 5,670 : zin 1941 and 1939 : 1941 ( of salary : 1939 : 1941 : : : $ 62,000 $ : : : Plant Supt. Plant Supt. Salesman Total : A. C. Wais P. C. McBath V. Pres. V. Pres. V. Pres. V. Pres. income taxes :in amount : : C. T. Ziegler Frederick Ritz Pres. 1940 Increase : 2 : : G. A. Rentschler J. E. Paterson W. A. Rentschler A. A. Byerlein 1939 : : Title Salary after Federal : Name of Executive Salary 2,423 6,477 (16,562) GENERAL MOTORS CORPORATION : : : President Wilson, Charles E. Kettering, Charles F. Gen.Mgr. Total : Williams, William C., Jr. V. Pres. 3,208,945 : Dir. Pat.Sec. : Sloan, Alfred P. Jr. : Prentis, Meyer L. 3,265,130 3,083,210 $ ( 7,687)$ (22,952) (31,656) 49,132 124,372 61,724 124,356 39,237 68,676 75,323 107,005 33,654 106,988 51,167 106,988 69,623 106,954 62,630 104,818 124,372 24,595 62,798 45,130 124,340 124,447 (125,735) 1,798,329 6,107 (30,872) 38,699 ( 3,206) 8,911 (72,047) 4,353 (60,014) 22,637 68,022 (10,500) (67,736) (17,794) 100 (31,024) 13,206 (42,913) 40,734 69,897 :1941 : Mooney, James D. 254,868 95,914 254,867 56,010 110,869 132,329 193,774 39,143 204,015 72,002 224,731 121,496 178,262 84,486 200,500 254,868 36,174 77,165 70,286 286,826 254,960 54,708 235,224 92,537 227,252 85,954 99,610 129,220 134,715 43,864 146,698 88,454 274,734 94,809 138,876 70,649 200,550 227,152 40,844 45,903 96,732 327,973 226,752 between 1939 and 2 1 : Kankle, Bayard,D. :over 1939 : : Hogan, Henry M. Hunt, Ormond E. 61,585 $ Changes 1941 : : : V. Pres. Grant, Richard H. : Spencer, Louis M. Tanner, Floyd O. Garrett, Paul : : Smith, John T. V. Pres. V. Pres. V. Pres. V. Pres. V. Pres. V. Pres. V. Pres. Treasurer Ch.of Brd. V. Pres. Fisher, Lawrence P. :in 1941 1939 : V. Pres. $ :of salary : : : Evans, Ronald K. : Earl, Harley J. 62,395 258,176 86,430 258,124 47,255 102,816 120,309 206,762 39,511 206,712 65,817 206,712 105,309 206,612 88,443 200,450 258,176 27,638 88,816 55,998 258,076 258,408 : Donner, Frederic G. : $ 1941 income taxes : : Brown, Donaldson : Breech, Ernest R. : Bradley, Albert Comptroller V. Pres. V. Pres. V. Pres. V. Pres. V. Pres. 1940 :in amount : Anderson, Anthony C. 1939 Increase : : : Title Salary after Federal : Name of Executive Salary $ 23,857 44,587 30,139 43,790 29,239 30,988 33,987 34,536 21,317 35,735 29,589 48,538 30,412 34,953 26,862 41,120 43,780 20,471 21,872 30,643 53,862 43,740 $ (25,275) (79,785) (31,585) (80,566) (9,998) (37,688) (41,356) (72,469) (12,337) (71,253) (21,578) (58,450) (39,211) (72,001) (35,768) (63,698) (80,592) (4,124) (40,926) (14,487) (70,478) (80,707) 754,017 (1,044,312) Remarks: Data are shown only for officers with salary (excluding bonus awards) of $25,000 and over for 1941. However, the amount of salary tabulated includes bonus awards. There are 52 additional officers with salary (excluding bonus awards) of $10,000 and under $25,000 for 1941, for which salary is reported for 1939 and 1940. The total of these salaries (excluding bonus awards) is $735,792 for 1941. GLENN L. MARTIN COMPANY of salary : sin 1941 1939 :Changes 1941 1 1941 : over 1939 : 2 : : : : : # : : : : : Treasurer $ : Total Vice Pres. Vice Pres. income taxes :in amount : : # : H. F. Volmer M. G. Shook Pres. : 1940 1939 Increase : $ : # Glenn L. Martin J. T. Hartson 8 Title Salary after Federal : Name of Executive Salary between 1939 and 1941 $ 33,970 $ 40,200 $ 60,260 $ 26,290 $ 29,488 $ 24,967 35,857 28,124 13,578 34,570 26,563 13,108 $ (4,521) 37,408 30,220 17,135 1,551 2,096 3,557 30,914 24,979 12,814 19,426 16,994 11,569 (11,488) (7,985) (1,245) 111,529 114,441 145,023 33,494 98,195 72,958 (25,239) Remarks: One additional vice president had salary of $22,572 for 1941, but no salary reported for him for 1939 and 1940. GRUMMAN AIRCRAFT ENGINEERING CORPORATION Increase 1939 : Changes 1941 : : over 1939 : : : : : : : : : : : Total Not stated Not stated sin 1941 : Leroy R. Grumman Leon Swirbul : 1941 1940 income taxes : : 1939 of salary Salary after Federal : :in amount Salary : Title : Name of Executive : between : 1939 and : 1941 $ 26,580 $ 42,097 $ 50,785 21,580 $ 24,205 37,097 45,785 24,205 19,732 21,843 2,111 48,160 79,194 96,570 48,410 43,491 44,886 1,395 Remarks: For 1941 there are 5 additional officers with salaries of $10,000 and over. The total salary of these officers is $76,043. $ 23,759 $ 23,043 $ (716) THE INGALLS SHIPBUILDING CORPORATION :salary in : :1941 over : : : : : : : : : : : Gen. Mgr. of 85,016 95,044 15,000 25,000 $ 25,000 18,000 : : : V. Pres. 15,000 19,167 20,877 15,000 : 1939 10,000 8,734 4,250 22,511 14,076 14,076 15,190 12,967 22,984 78,820 - - Changes 1941 : : : Pres. 15,000 15,000 16,266 13,750 1939 : 1941 Chair.of Brd. $ 25,000 $ 25,000 $ 25,000 V. Pres. income taxes :in amount : : A. J. Grassick : 1940 Increase : : : : Monro B. Lanier W. R. Guest 1 R. I. Ingalls R. I. Ingalls, Jr. 1939 Salary after Federal : : Title Name of Executive Salary $ between 1959 and 1941 $ 15,040 $ (7,471) (3,611) 10,465 15,040 15,040 11,995 ( 150) 67,580 (11,240) 964 972) Shipyard Total 108,000 Remarks: There are no other officers receiving a salary of $10,000 and over for 1941. LOCKHEED AIRCRAFT CORPORATION : 1 : : : : : : : Totals :Changes 1941 : : Sec. in 1941 : over 1939 1939 $ : : Cyril Chapellet : Vice Pres. : R. A. Von Hoke Carl B. Squier Hall L. Hibbard of salary : C. A. Barker, Jr. President Vice Pres. Vice Pres. Vice Pres. Robert E. Gross 1941 : 1940 : 1939 income taxes : Title in amount : Name of Executive Salary after Federal : Increase Salary between 1939 and 1941 $ 27,400 $ 44,750 $ 125,000 $ 97,600 $ 24,407 $ 33,565 18,000 17,800 17,500 14,000 13,000 30,000 26,000 26,250 25,000 25,000 90,000 65,000 65,000 65,000 65,000 72,000 47,200 47,500 51,000 52,000 16,701 16,527 16,266 13,191 12,297 29,805 25,845 25,845 25,845 25,845 9,158 13,104 9,318 9,579 12,654 13,548 107,700 177,000 475,000 367,300 99,389 166,750 67,361 Remarks: There are 2 additional officers with salaries of $22,000 and $19,000 in 1941 and $7,800 and $6,300 respectively in 1939. $ MOORE DRY DOCK COMPANY 1941 : : Nat Levey A. R. Viner Jos. A. Moore, Jr. J. R. Moore Chm. of Board Vice Presand Sec. $ 40,000 $ 40,000 $ 40,000 15,000 6,000 20,000 20,000 15,000 6,750 20,000 20,000 15,000 12,000 20,000 20,000 101,000 101,750 107,000 Vice Pres. & Treas. Pres. & Gen. Mgr. Vice Pres. Total Remarks: There are no additional officers with salary of $10,000 and over. 1939 over 1939: : Jos. A. Moore of salary: sin 1941 : $ - - 6,000 - - 6,000 :Changes 1941 $ 34,021 between 1939 and 1941 1 1940 : 1939 income taxes : Title Name of Executive Salary after Federal : Increase :in amount Salary $ 30,235 $ (13,786) 14,076 5,884 18,411 18,411 10,465 8,785 12,940 12,940 ( 3,611) 90,803 65,365 (25,438) 2,901 5,471) 5,471 NEW YORK SHIPBUILDING CORPORATION Changes between : 1939 and 1941 1 : 2 : : : : , 2 Total : N. R. Parker 1941 : K. Gardner 1939 : : R. S. Pruitt $ : R. S. Campbell President Vice Pres. Sec., G.C. Labor Coun. Treasurer of salary in 1941 over 1939 income taxes : J. F. Metten Ch. of Brd. 1941 Salary after Federal : : H. Lockhart, Jr. : 1940 : Title 1939 : Increase in amount : Name of Executive Salary 32,131 $ 66,919 $ 75,600 75,600 $ 43,495 43,469 $ 28,052 28,072 $ 27,671 27,671 $ (401) (381) 53,655 32,105 19,582 15,400 18,000 10,707 39,791 27,027 26,528 26,528 54,000 36,500 36,000 36,000 34,418 21,100 18,000 25,293 18,056 14,428 16,701 10,243 23,715 19,135 18,975 18,975 5,659 4,707 2,274 8,732 127,925 240,448 313,700 185,775 115,552 136,142 20,590 Remarks: There are 17 additional officers with salaries of $10,000 and over for 1941, for which salaries for 1939 or 1940 are not available. NORTH AMERICAN AVIATION, INC of salary : : : : : over 1939 : : : : : % : : $ 186,110 $ 166,350 $ 135,250 75,000 24,600 28,700 78,533 25,425 28,975 71,350 28,450 32,500 24,600 26,075 32,500 339,010 325,358 300,050 $ :Changes 1941 : :in 1941 1939 % : : : R. H. Rice V. Pres. Treasurer Factory 1941 2 : : J. S. Smithson : R. A. Lambeth Pres. 1940 income taxes :in amount : : J. L. Atwood 1939 Salary after Federal : : : J. H. Kindelberger 1 : Title : Name of Executive Increase : Salary (50,860) $ 99,656 $ ( 3,650) 3,850 3,800 56,221 22,195 25,430 26,988 16,357 17,815 ( 5,838) 7,900 22,195 17,815 ( 4,380) 225,697 113,565 34,590 $ (65,066) Mgr. Chf. Eng. Total between 1939 and 1941 (38,960) Remarks Data are shown only for officers with salary of $25,000 and over for 1941. There are 15 additional officers with salary of $10,000 and under $25,000 for 1941. The total of these salaries is $214,258. 4: (29,235) ( 7,615) (112,132) NORTHERN PUMP COMPANY 1939 : : : : President $ 49.000 : : J. B. Hawley, Jr. : 1941 1940 : : Title : Name of Executive $ 12,000 $172,000 of salary in 1941 over 1939 $123,000 Remarks: There is an additional vice president for 1940 and 1941 with a salary for 1940 of $6,000 and with a salary of $43,000 for 1941 but no salary is reported for 1939. The secretary-treasurer has a salary of under $10,000 for 1941. Salary after Federal income taxes 1939 1941 : Increase in amount Salary $ 40,441 :Changes :between :1939 and 1941 $ 38,265 $ (2,176) PACKARD MOTOR CAR COMPANY h % : over 1939 : 11,918 $ ( 1,701) 17,304 24,615 21,052 13,404 11,719 27,642 21,730 21,262 13,543 11,544 ( 1,988) 9,420 1,190 3,238 19,292 38,320 32,962 18,684 14,287 50,849 37,838 29,703 18,538 13,056 16,258 19,500 15,225 7,288 2,925 4,425 8,643 15,461 10,313 11,122 12,715 10,586 ( 2,746) 442,641 71,876 321,565 230,156 (91,409) 13,423 $ 17,840 $ 21,050 45,950 38,588 20,321 15,240 65,260 45,280 34,250 20,150 13,850 19,250 43,250 33,000 18,884 15,145 75,380 45,340 31,250 18,000 13,667 31,080 58,500 42,920 21,030 17,430 75,420 45,340 43,670 21,340 17,088 2,190 10,160 8,970 16,575 10,800 9,064 15,500 11,775 370,765 362,928 10,030 12,550 4,532 709 60 : R. N. Brown Mech. Supt. Total Remarks: Data are shown only for officers with salary of $15,000 and over for 1941. There are 15 additional officers with a salary of $10,000 and under $15,000 for 1941. The total of these salaries is $179,688 for 1941. ( : : : % : 1 Statistician Mgr.of Div. between :1959 and 1941 13,619 $ 3,359 $ 14,481 $ Mgr. G. H. Brodie W. L. Griswold Changes 1941 : : Ch. Engr. Asst.sales 1939 : : : Ch. of Brd. V. Pres. : Pres. : M. M. Gilman A. Macauley :in 1941 : : V. Pres. of salary : : : N. Tibbitts 2 Treas. $ 1941 : : Hugh J. Ferry 1940 income taxes 2 : W. M. Packer J. G. Vincent C. R. Paton L. W. Slack : G. T. Christopher V. Pres. V. Pres. V. Pres. : Comptroller E. C. Hoeyle J. H. Marks 1939 Salary after Federal : Title :Increase :in amount : Name of Executive Salary (13,705) (11,910) 5,280) 2,568) (25,207) (16,108) 8,441 4,995) ( 1,512) 2,479 278 REPUBLIC AVIATION CORPORATION Salary after Federal : : : : T. Davis Sec.-Treas. :in 1941 :over 1939 1939 : : President Vice Pres. Vice Pres. :of salary 1941 Changes :between 1939 and : 1941 : : W. Wallace Vellett A. Kartvele J. L.Mc Clane Total 1940 : 1939 : Title income taxes : Name of Executive Increase :in amount : Salary :1941 $ 25,875 $ 36,120 $ 37,280 $ 11,405 $ 23,202 $ 19,385 8,602 3,194 4,958 16,636 25,620 12,620 19,500 24,200 13,000 10,898 21,006 8,042 8,306 3,179 4,880 12,715 14,728 9,365 4,409 11,549 4,485 42,629 90,996 93,980 51,351 39,567 56,193 16,626 Remarks: There are 3 additional officers with salary of $10,000 and over for 1941, but salary for 1939 or 1940 is not reported. The total of the salaries for these 3 officers is $56,700 for 1941. $( 3,817) ROBINS DRY DOCK AND REPAIR COMPANY : : Total No title 8 : : James E. Barns sin 1941 over 1939: : : Joseph Haag, Jr. Vice President Vice President of salary: 1939 $ 33,000 $ 33,275 25,010 34,010 15,427 11,510 12,000 25,208 35,292 18,654 13,808 12,000 32,535 41,746 21,967 22,282 23,300 7,525 7,736 6,540 10,772 11,300 130,957 106,737 195,699 64,742 $ 53,869 $ Remarks: Data are shown for only those officers with salary of over $20,000 in 1941. There are 5 additional officers with total salary of $60,590. :Changes 1941 : : : Fred D. Hesley, Sr. President 1941 : # Francis J. Gilbride Chm. of Board No title : John D. Reilly J. Herbert Todd 1940 : 1939 : : Title income taxes in amount: : : 1 Name of Executive Salary after Federal Increase : Salary 20,869 $ 28,741 between 1939 and 1941 $ 23,689 $ (5,052) 22,519 29,519 14,452 10,955 11,398 17,828 20,724 13,811 13,943 14,371 (4,691) (8,795) 117,584 104,366 (13,218) 641) 2,988 2,973 SAVAGE ARMS CORPORATION of salary : :in 1941 1939 : over 1939 : : : : : : : : : : : 34,232 $ 33,740 $ 13,415 11,882 30,373 24,248 48,780 39,320 52,188 88,853 121,840 4: Change be:twen 1939 and 1941 24,005 $ 18,251 $ ( 5,754) 35,365 27,438 12,668 11,291 22,562 20,037 9,894 8,746 69,652 47,964 60,850 12,886 6,849 $ : Remarks: There is one general manager with a salary and bonus of $33,000 in 1941 and $18,899 in 1940, but with no salary shown for 1939. : : 26,891 $ : 1941 % 1941 : : V. Pres. $ income taxes : : : Ch. of Brd. Pres. 1940 Salary after Federal :in amount : : : Total : E. A. MacDonald 1939 Increase 2 2 : W. L. Wright F. F. Hickey : Title : Name of Executive Salary SPERRY GYROSCOPE COMPANY, INCORPORATED : : : : : : $ : : : : : Reginald E. Gillmor Preston R. Bassett Robert B. Lea Herbert H. Thompson Total of salary in 1941 over 1939 1941 : Changes : between : 1939 and : 1941 Ch. of Brd. $ 34,421 $ 37,484 $ 62,500 $ 28,079 $ 29,835 $ 25,395 $ (4,440) (8,698) 27,575 President Vice Pres. Vice Pres. Secretary 43,107 29,302 18,500 11,900 50,000 33,500 22,000 15,300 75,000 37,500 23,500 17,000 31,893 8,198 5,000 5,100 36,273 25,894 17,136 11,308 19,455 14,455 11,500 (6,439) (2,681) 137,230 158,284 215,500 78,270 120,446 98,380 (22,066) Remarks: 5 additional officers received salary of $10,000 and over for 1941, but salaries for 1939 and 1940 not reported. The total of the salaries of these 5 additional officers for 1941 is $87,367. 1939 : Thomas A. Morgan : : 1941 income taxes : : $ 1940 Salary after Federal : : 1939 Increase in amount : : Title $ Name of Executive Salary 192 STANDARD OIL COMPANY AND SUBJIDIARIES (NEW JERSEY) over 1939 : : : : $ 40,000 $ 40,000 125,000 30,000 90,000 50,000 75,000 55,000 42,500 35,000 45,000 40,000 50,000 45,100 60,000 42,500 90,000 33,000 125,000 80,000 90,000 55,000 75,000 49,208 47,500 35,000 45,000 45,000 50,000 45,000 54,208 47,500 90,000 38,000 125,000 80,000 90,000 55,000 75,000 45,000 44,531 35,000 45,000 45,000 50,000 50,000 50,000 50,000 90,000 45,000 $ : : : : : : 998,100 1,011,416 1,014,531 Remarks: Data are shown for only those officers with salary of $40,000 and over in 1941. There are 154 additional officers with salaries of $10,000 and under $40,000 with a total salary of $2,404,311 in 1941. 1941 : $ 40,000 1939 : 1941 : Changes : : : : 1940 : $ in 1941 : : Total : of salary : No names given 1939 income taxes : : Title : Name of Executive Salary after Federal : $ Increase : in amount Salary : between : 1939 and : 1941 $ 34,021 $ 20,235 $ (13,786) 33,565 28,375 29,805 23,915 27,575 21,635 21,504 18,655 21,635 21,635 22,855 22,855 22,855 22,855 29,805 21,635 (43,541) (30,356) (33,526) (17,216) (28,646) (22,846) (14,332) (11,616) (16,001) (12,386) (18,276) (14,853) (24,816) (12,981) (33,526) 12,000 77,106 58,731 63,331 41,131 56,221 44,481 35,836 30,271 37,636 34,021 41,131 37,708 47,671 35,836 63,331 28,741 16,431 767,204 411,394 - - - 5,000 - (10,000) 2,031 - 5,000 - 4,900 (10,000) 7,500 - (7,106) (355,810) STUDEBAKER CORPORATION 1939 :over 1939 : 24,000 18,000 60,000 18,000 24,000 18,000 18,000 24,000 60,000 24,000 34,000 25,000 81,000 25,000 34,000 25,000 25,000 34,000 81,000 34,000 303,535 312,000 432,000 18,335 $ ( 4,830) 11,172 6,303 31,000 4,738 12,260 4,758 4,738 6,172 31,000 8,172 20,762 17,303 41,131 18,634 19,865 18,654 18,634 24,745 41,131 23,165 18,335 15,040 28,535 15,040 18,335 15,040 15,040 18,335 28,535 18,335 2,427 2,263 (12,596) 128,465 267,169 : Remarks: Data are shown for only those officers with salary of $25,000 and over in 1941. There are 14 additional officers with salaries of $10,000 under $25,000 with total salary of $231,813 in 1941. 208,905 ( 3,594) ( 1,530 ( 3,594 ( 3,594) ( 22,828 18,697 50,000 20,262 21,740 20,262 20,262 27,828 50,000 25,828 23,165 $ 8,172 $ ( : : 34,000 $ :between :1939 and 1941 ( : : : : : 24,000 $ Changes 1941 : : Total Pres., Sub. : C. K. Whittaker :in 1941 : H. S. Vance V. Pres. Chr. of Brd. : R. A. Vail Dir. of Pur. of salary : : : P. O. Peterson Chief Eng. V. Pres. Mgr. of Div. 1941 : : E. C. Mendler : Geo. D. Keller : Pres. $ 25,828 $ :in amount : : P. G. Hoffman W. S. James 1940 income taxes : 2 K. B. Elliott 1939 Salary after Federal : : : V. Pres. V. Pres. Gen. Supt. Bert Fowler : Title : R. E. Cole Increase : Name of Executive Salary 6,410 (12,596) 4,830) (58,264) SUN OIL COMPANY : : : : Arthur E. Pew, Jr. Pres. Vice Pres. Vice Pres. Vice Pres. Samuel B. Eokert Frank Cross Vice Pres. Sec. & Treas. Walter C. Pew Gen'1 Sales Mgr. Reg. Sales Mgr. F. S. Reitzel P. H. Harrison J. C. Welliver C. H. Thayer W. D. Mason John G. Pew Robert W. Pack Thomas L. Foster Ass't. to Pres. Public Relations Chief Engineer Refinery Mgr. Management Comm. General Mgr. Chief Counsel Totals $ : J. Howard Pew J. N. Pew J. Edgar Pew 60,000 60,000 60,000 35,000 68,300 20,000 18,000 21,000 17,500 25,000 15,000 20,000 15,000 15,000 25,000 $ 60,000 60,000 60,000 35,000 68,300 20,000 21,600 21,000 20,000 25,000 18,000 21,600 20,000 20,000 25,000 60,000 60,000 80,400 46,900 68,300 26,800 28,944 39,450 26,800 25,000 28,644 28,944 26,800 26,800 25,000 474,800 495,500 598,782 $ Remarks: There are 27 additional officers with salary of $10,000 and under $25,000 for 1941. The total of these salaries is $413,969. Data are shown only for officers with salary of $25,000 and over for 1941. - $ - 20,400 11,900 - 6,800 10,944 18,450 9,300 - 13,644 8,944 11,800 11,800 - 123,982 : : in 1941 over 1939 1939 :Changes 1941 between 1939 and 1941 : of salary 1941 : 1940 : 1939 1 Title income taxes 1 Salary Name of Executive Salary after Federal Increase in amount $ 47,671 $ 24,971 $ (22,700) 47,671 47,671 30,271 52,582 18,411 16,701 19,251 16,266 22,511 14,076 18,411 14,076 14,076 22,511 24,971 28,495 22,167 26,495 15,798 16,589 20,135 15,798 15,096 16,483 16,591 16,798 15,798 15,096 (22,700) (19,176) (8,104) (26,087) (2,613) 402,156 290,281 (112) 884 (468) (7,415) 2,407 (1,820) 1,722 1,722 (7,415) (111,875) UNITED AIRCRAFT CORPORATION : Total : : C. L. Gault Ch. of Board President Secretary Vice Pres. Gen. Acct. Treasurer 1941 : Raycroft Walsh F. E. Burnham 1940 1939 :in 1941 :over 1939 : 1941 : : F. B. Rentschler E. E. Wilson J. F. McCarthy : Changes :of salary : 1939 income taxes :in amount : Title Name of Executive Salary after Federal : Increase Salary between :1939 and :1941 $ 5,592 $ 24,050 $ 47,583 $ 73,550 $ 49,500 $ 21,751 $ 27,343 48,490 42,460 40,750 12,250 18,125 51,640 41,233 39,123 14,167 21,500 73,920 58,740 56,450 19,042 22,500 25,430 16,280 15,700 6,792 4,375 40,089 35,808 34,576 11,624 16,810 27,402 24,205 24,205 12,495 14,035 (12,687) (11,145) (10,371) 186,125 215,246 304,202 118,077 160,658 130,143 (30,515) Remarks: There is one additional officer with salary of over $10,000 for 1941, but salary is not reported for 1939 and 1940. 871 ( 2,775) WESTERN CARTRIDGE COMPANY 1941 : between : 1939 and $ 1941 : : : : $ 25,000 $ 25,000 $ 125,000 $ 100,000 $ 22,511 5,000 15,000 14,500 9,000 9,000 8,000 15,000 30,000 27,000 15,000 16,000 14,000 100,000 50,000 36,000 19,000 24,000 16,000 95,000 35,000 21,500 10,000 15,000 8,000 4,920 14,076 13,636 8,671 8,671 7,752 31,035 22,855 18,975 12,475 14,650 10,990 26,115 8,779 5,339 3,804 5,979 3,238 85,500 142,000 370,000 284,500 80,237 144,545 64,308 1/ Estimated by corporation. Remarks: The salary of F. W. Olin, President, is omitted, as only the 1941 salary of $150,000 is available (1939 and 1940 salaries are omitted). 1939 $ : $ Total $ R. R. Casteel : R. C. Swanton : in 1941 over 1939 : : E. Pugsley L. M. Peterson Vice Pres. Sec. Treas. Asst.Treas. Asst.Secy. Asst.Treas. Asst.Secy. Asst.Secy. : : 1 : E. W. Taft 1941 : : : 1940 1 Changes : : : 1939 of salary : J. M. Olin S. T. Olin : : Title income taxes : Name of Executive Salary after Federal $ : Increase in amount Salary $ 33,565 $ 11,054 WESTERN PIPE AND STEEL COMPANY 1940 of salary: : $ : : Total Vice-Pres. Vice-Pres. in 1941 $ 24,091 $ 16,335 $ (7,756) ,456) $ 27,000 $ 27,000 $ 40,500 $ 13,500 16,500 18,000 18,000 16,600 18,000 18,000 24,880 27,000 27,000 8,860 9,000 9,000 26,595 16,701 16,701 16,968 15,820 15,820 79,500 79,500 119,250 39,750 72,889 62,917 Remarks: 2 additional assistant vice-presidents have a salary of $10,000 and over for 1941, but no salary is reported for these for 1939 and 1940. The total salary received by these 2 additional officers for 1941 is $31,500. between 1939 and 1941 1941 : over 1939: : L. N. Slater Vice-PresSectif. 1941 : : W. G. Aldenhagen R. D. Plageman Pres. Changes 1939 : : H. H. Tallerday : 1939 income taxes in amount: 1 Title Salary after Federal ( : Name of Executive Salary Increase : ( 881) ( 881) (9,972) WESTINGHOUSE ELECTRIC AND MANUFACTURING COMPANY : 1939 1941 : : $ : : : $ : : 1941 : : 1940 in 1941 over 1939 : Changes : : : : : 1939 of salary income taxes : : : Title Name of Executive Salary after Federal : : Increase in amount Salary : between : 1939 and : 1941 : : : : : A. W. Robertson Ch. of Brd. $ 137,431 $ 164,625 $ 180,645 $ 43,214 % 81,830 $ 39,129 $ (42,701) Geo. H. Bucher Ralph Kelly Wm. P. Marshall President Vice Pres. Vice Pres. Roscoe Scybold V.P.& Comp. F. A. Merrick Harold Smith Total Vice If Vice Pres. 51,356 47,788 45,808 46,908 42,724 56,139 118,443 54,800 54,438 55,638 51,475 54,531 130,783 59,133 57,321 58,621 55,133 3,175 33,011 11,345 11,513 11,713 12,409 42,067 66,617 39,604 38,218 38,998 35,997 469,787 555,558 596,167 126,380 343,331 97,772 Remarks: Data are shown only for officers with salary of $50,000 and over for 1941. There are 13 additional officers with salary of $10,000 and under $50,000. The total of these salaries is $358,312. 24,742 24,379 24,639 23,942 (18,246) (32,473) (14,862) (13,839) (14,359) (12,055) 194,796 (148,535) 23,821 34,144 WESTINGHOUSE ELECTRIC ELEVATOR COMPANY of salary : sin 1941 over 1939 1939 : 1941 8 1 # 2 1940 8 8 : : 1939 : : $ Title income taxes sin amount % : # Name of Executive Salary after Federal 1 Increase 1 : Salary 1941 changes between 1939 and 1941 : : President $ 35,006 $ 38,106 $ 54,723 $ 1,718 $ 28,745 $ 18,566 $ (10,179) Frank C. Reed Remarks: There are no additional officers with salary of $10,000 and over for 1941. 200 PRELIMINARY Net income before and after income and profits taxes for selected companies, 1939, 1940 and 1941 (Amounts in thousands) : : $ $ 665 $ 361 315 14,059 866 266,831 5,745 1,148 (2) a/ (14) 5,987 145,010 3,024 26,738 102,316 4,112 16,161 1,585 5,923 517,748 347,250 8,512 2,435 / ( 9/ 123 (240) 24,461 3,586 995 a & a 299 195 1,419 701 a 3,322 299 3,760 96,876 2,931 19,267 47,745 14,661 240 11,466 105,005 2,118 20,941 66,973 711 960 230,177 233,366 5,516 1,422 189 (2) 926 a/ a 553 19,408 109,000 2,832 11,276 2,004 240,603 5,118 5,444 985 142,569 151 86 a 29,941 ,494 3,265 55 5,149 76,061 5,723 1,113 b/ 388 661 a/ 290 500 9,726 4,555 778 142 128 537 351 (7) 469 884 3,926 2,928 10,274 4,249 5,225 2,226 9,048 9,899 7,437 7,929 2,405 7,092 344 376 15,495 3,800 15,575 1,756 1,281 6,864 1,945 279 222 4,289 1,144 1,366 (595) 58 464 4,262 11,795 76,529 6,442 9/ 904 2,954 1,042 611 5,504 48 856 1,825 2,057 15,436 581 1,233 4,621 1,008 12,918 126,968 2,354 4,618 396 806 501 6,925 8,965 117,075 181,838 2,225 55,653 85,547 12,196 (595) 25,752 202,145 5,881 5,127 2,445 85,925 234,871 4,157 9,919 65,596 / a/ 1,789 4,599 a/ a/ 1,162 5,437 8/ a 1,920 332 881 2,024 a/ 4,420 166,118 1,254 a/ 28,067 146,917 5,125 17,654 59,740 6,678 15,495 78,824 a 28 278 625 27,165 1,592 68,571 15,817 18,051 27,771 15,568 843 887 795 641 555 549 376 16,453 951 11 months. 841 1,241 33 8 months. Changed to fiscal year basis August 31, 1940. 7 months. Incorporated January 19, 1940. 6,799 8/ 9/ 1,142 1,194 1,182 Net income as reported not on a strictly comparable basis between companies. Fiscal year returns. 9 months. Changes to fiscal year basis September 30, 1940. 6 months. Changed to fiscal year basis June 30, 1940. 38,218 8,188 a (14) Not available. Loss of less than $500. 1940 income tax rates applicable. 10 months. 9 months. 37,953 (21)6/ 1,007 ( ) Indicates loss. 8/ 158 a 511 Source: Data supplied by Collectors of Internal Revenue. 6/ 48,420 1,318 4,644 64 Treasury Department, Division of Tax Research 7 37,308 1,461 63,170 2,701 48 Studebaker Corp. 5/ (1,684) 451 17,814 s/ 625 2,947 3/ 47,444 12,409 2,192 b/ 3,368 452 6,318 3/ (1,691) 3,255 175 4,601 30 United Aircraft Corp. 51 United States Steel Corp. 52 Western Cartridge Co. 53 Western Pipe and Steel Co. (Calif.) 54 Westinghouse Electric & Mfg. Co. 55 Westinghouse Electric Elevator Co. 4,105 40,127 210,000 512 (7) 45 Seattle Takona Shipbuilding Corp. 2/ 46 Sperry Oyroscope Co., Inc. 47 Standard 011 Co. (N. J.) 49 Sun 011 Co. a 105 a 2,918 174 44 Savage Arms Corp. 4/ 16 941 5,812 4,957 28,685 6,398 26,028 4,586 110,213 3,933 22,225 56,490 42 Republic Aviation Corp. 45 Robins Dry Dock and Repair Co. 1 $ (21)6 10 1,019 1,737 9 968 433 41 Packard Motor Car Co. 2/ $ 161 64,183 27,288 1,379 $ : 189 519 36,492 2 143,225 $ : 11,130 68,433 1,755 40 Northem Pump Co. & 2,764 (68) (91) 44,397 1,801 36 Moore Dry Dock Co. b 2,159 1,007 5,819 37 Newport News Shipbuilding & Dry Dock Co. 38 New York Shipbuilding Corp. 39 North American Aviation, Inc. v 274 4,448 6,247 57 (1,684) a/ a 496 7,554 (1,691) 860 3,574 6,150 10,639 126 641 rates 430 2,501 9,975 64,912 Proposed rates 1,769 71 10 654 (655) 255 1,057 1,037 33,954 1941 : Present (768) 532 (240) 20 Curties Wright Corp. 21 Dismond T Motor Car Co. 25 Ford Motor Co. 377 (2,463) 1,144 4,966 a 19 Cramp Shipbuilding Co. 26 General Electric Co. 27 General Machinery Corp. 28 General Motors Corp. 29 Glenn L. Martin Co. 30 Grumman Aircraft Engineering Co. 31 Oulf Shipbuilding Corp. 32 Houston Shipbuilding Corp. 33 Ingalls Shipbuilding Corp. 54 Lockheed Aircraft Corp. 35 Los Angeles Shipbuilding & Dry Dock Co. : 15 Consolidated Aircraft Corp. 16 Consolidated Steel Corp. (Calif.) 17 Consolidated Steel Corp. (Texas) 18 Continental Motors Corp. 2/ : : : 14 Chrysler Corp. 1,497 4,723 1,154 9,650 21,516 12 (91) 9 Beech Aircraft Corp. 2/ 10 Bell Aircraft Corp. 11 Bendix Aviation Corp. 12 Bethlehen Steel Corp. 15 Boeing Aircraft Co. 23 E. I. du Pont de Nemours & Co. 24 Electric Boat Co. 656 2,259 3,637 (68) 7 Baldwin Locomotive Works 8 Bath Iron Works 1941 1940 : 2,585 5 American Woolen Co. 22 Douglas Aircraft Co., Inc. 779 (655) 286 (768) 1939 1 : 457 (2,463) 6 Aviation Corp. 2/ ( : 1 Alabama Dry Dock & Shipbuilding Co. 2, 2 American Car and Foundry Co. 2/ 5 American Engineering Co. 4 American Locomotive Co. 1940 : 1939 Net income after income and profits taxes 1/ : Name of company No. and profits taxes 1/ 1 Net income before income a April 22, 1942 PRELIMINARY 201 Calculated tax liability under present (1941) rates and under proposed 1942 rates, on the basis of 1941 income, for selected companies (Amounts in thousands) : Proposed rates rates rates : rates : profits 1941 Proposed 1941 Proposed : Method come and Amount 1 1941 Effective Total tax : : before inp Name of company Normal and surtax Excess profits tax : income, Excess profits credit : 1941 net rates rates IFate of tax under Percentage proposed Number increase tax taxes 5 6 7 8 9 Glenn L. Martin Co. Gruman Aircraft Engineering Corp. Gulf Shipbuilding Corp. Ingalls Shipbuilding Corp. 17 18 19 Lockheed Aircraft Corp. Los Angeles Shipbuilding & 20 21 Dry Dock Corp. Moore Dry Dock Co. 22 New York Shipbuilding Co. 25 North American Aviation, Inc. 3 24 Packard Motor Car Co. 25 Republic Aviation Corp. Robbins Dry Dock & Repair Co. 26 27 28 Savage Arms Corp. Sperry Qyroscope, Inc. 29 Standard oil Co. of New Jersey 30 31 Studebaker Corp. Sun oil Co. 32 35 54 United Aircraft Corp. United States Steel Corp. $5 Western Pipe & Steel Co. 56 Westinghouse Elec. Elev Co. 37 Westinghouse Elec.& Mfg. Co. 4,105 210,000 16,161 5,923 517,748 12,409 2,192 538 Income y 42,531 Not available 5,202 15,269 48.63 40.37 6,194 55,565 9,596 16,369 5,700 2,068 68,400 2,048 1,154 2,396 7,763 2,048 4,099 9,679 105,272 39,722 77.42 5,790 1,925 55,804 27,716 71.06 24.69 31.50 4,441 80,055 25,965 19,100 134 258 154 258 2,596 619 808 85,512 32,600 4,885 48,427 2,687 101,000 3,404 155,939 4,885 5,919 8,667 77.42 1,079 4,938 375,379 9,144 1,531 Inv. Cap. 8,667 23,702 3,054 3,829 865 220,087 101,531 1,109 155,600 277,145 4,115 219,779 5,155 2,571 5,989 6,686 587 745 492 786 58 105 58 103 353 507 717 41.57 216 Inv. Cap. 1,007 29,941 3,449 Income 778 1,118 Inv. Cap. Inv. Cap. - 282 364 224 15,846 19,819 4,369 5,567 20,216 25,386 25.58 241 427 241 427 351 470 1,419 1,817 1,383 5,634 2,569 1,855 8,774 2,638 12,136 2,569 77.42 27.98 42.21 58.52 77.42 44.21 27.11 24.02 27.07 77.42 34.22 77.42 4/ 339 4- Income 4,100 Inv. Cap. Inv. Cap. Inv. Cap. Inv. Cap. 815 801 4,321 70,282 2,044 12,676 11,433 222,128 1,068 995 8,011 695 - Income Inv. Cap. Inv. Cap. Inv. Cap. Income 301 Inv. Cap. Inv. Cap. 887 850 Income 68,571 18,800 Income 5,192 1,347 1,255 6,502 - - 860 3,582 1,335 1,355 524 416 306 492 650 909 2,653 8,756 3,328 10,951 15,988 826 1,095 2,481 5,544 56,025 4,423 15,412 21,552 36,025 5,894 4,154 70,452 156,047 12,781 1,902 43,339 2,389 54,185 - 681 84 29,000 908 111 56,262 2,330 1,505 4,134 12,520 16,247 87,954 156,047 3,479 10,815 16,787 20,305 2,902 2,330 55,858 87,954 280 371 961 1,280 426 335 538 16,942 40,800 55,203 2,079 4,006 20,305 999 249 11,800 75.50 53.63 85.56 72.50 75.69 69.86 54.45 71.24 84.79 175,814 Income 55.74 86.96 61.89 86.86 Income Income 5,468 1,112 70.96 41.24 52.99 24.10 77.42 26.69 52.61 Income Source: 1941 income data supplied by Collectors of Internal Revenue. Including credit carry-over. 3,500 10,878 711 Treasury Department, Division of Tax Research For 11 months For 9 months. 12,006 19,262 509 258 7,654 25.99 35.44 36.77 41.90 77.42 189 2,701 3,800 15,573 4,289 1,241 5,304 15,456 25,752 202,145 5,128 11,497 83,925 234,871 1,592 - 3,277 75.78 53.91 26.09 77.42 33.19 61.69 50.40 7 16 Inv. Cap. 34.72 $ 6 3 4 15 General Machinery Corp. General Motors Corp. 14 433 24,490 6,099 7,635 15,400 - 676 7,754 69,468 1,925 - 15 Ford Motor Co. Income 860 658 4 1 2 E.I. duPont de Nemours & Co. Inv. Cap. Inv. Cap. $ 5 $ 11 12 $ Cramp Shipbuilding Co. Diamond T Motor Car Co. 10 4/ $ Consolidated Aircraft Corp. 2/ 849 43,312 46,253 1,969 4,779 1,154 2,158 1,569 1,531 Income 324 $ Bethlehem Steel Corp. Chrysler Corp. 2,299 219 5 Bell Aircraft Corp. 4,966 7,354 11,130 143,225 64,183 27,288 Inv. Cap. Inv. Cap. Inv. Cap. 536 420 $ Bath Iron Works 21,516 5,250 11,269 7,446 Income $ Baldwin Locomotive Co. 9,650 338 1 American Woolen Co. 1,134 2 American Engineering Co. American Locomotive Co. 8 9 54.90 82.91 10 68.78 12 54.94 67.26 69.42 77.95 55.22 75.22 83.38 86.89 11 15 14 16 16 17 18 19 20 21 22 25 24 25 26 27 28 82.84 29 17.82 30 75.94 31 35.96 85.92 66.44 80.39 52 77.59 55 54 55 56 60.59 April 22, 1942 202 Number and compensation of - part = Mrs, the subscribed I part MINI IF more # T = = = : K * I If = : 2 II If are THIS 10156 2 - D Count a = - 10 I = is = Das Code with It Case Co. = -a Itte. were The Tea Co. - - signature write = appear Street - - Thean - New Team - Co. haer The /- RDo. - International 20. a SE 2.188 Last 0 35 46 D 5 I D is 130 2 110 85 - - - 3 in Itwent - a 4 26 130 - - ADVENT Caps 461 Co. - are - 2,278 - - - . REVER Co. -10M = = 5 Dates am Ca. name Business cape ID 3 Program ALWONS Ca. Inc. 2016 over Country - 2 1.65 - 1 - Ca United - - I THE If COMA Capa. Jan.2 A Prin A - 0a OR I de 9 AMOUNT caps. : user as Co. 155 T 4 I e USCAP Days new 5 I I = S Charge 0a.2 TM 5 I - 5 = ORIGINAL I 485 = = - data 2a. VII II - If Come Days 25% 4F I D and AMOUNT 20. = . Remail case * Smith = 5 I 2 0 127 - 0 - $ E EE 24 ID 2 133 24 165 s $ .05 12.79 224546 100 20 12. 9 20 1776 .72 30 11.77 19 1.00 44.42 SEZEN - II 1 4 or - IT 12 E 2 7 - - 31 3E - + + to 2. SE 10 3F 1 a 32 35 155 25 27 127 44 II 166 7 E 14" 3 700 BE SE a 35 18 a 1 3 $ -2 4 2 10 IS 75 44 II a - 77 1.2 11 12 Division THE - - The application to - a 65 of 1 E a 100 II PS 18 9 22 = 00 38 52 51 13 S as a 1 22 32 + 22 (5) 2 I ST 2 = 18 17. 1 2 31 SS H 11 28 ST - - 2 26 .49 .85 12 51 If 2 - % - - - THE SHIE I I : ITEM THE 423 25 = : = = 2 IN : = = -2 II = = American -A touche is = DRE = - Equipmenting its . II 2000 F 7 THESE = If = - If - se 4. Dunity A = TIMG = DEPART = - Time - paut - s at - of - . . SE as 19 14 1 35 El 259 10 BE E of @ 12 2 $ 3 I- 28- 3.56 RE E in . IS 10 22 - - 100 56 24 22 ST 100 S 7 - 2 AME 203 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE TO April 22, 1942. Secretary Morgenthau FROM W. N. Thompson Mrs. Roosevelt decided that since the author of the anonymous letter could not be located, she would not ask for anyone to come to the White House. Instead she had her secretary call Mr. Hall and ask that he send her a statement showing the conditions which prevail in the cafeteria. Attached is a copy of Mr. Hall's letter to Mrs. Frece together with a copy of the statement requested. And 204 April 22, 1942. Mrs. Prudence Frece, The White House. Dear Mrs. Frece: I have talked with the members of the Board of Governors of the Bureau of Engraving and Printing Restaurant Association concerning the anonymous letter addressed to Mrs. Roosevelt, part of which you read to me over the telephone. The members of the board deeply regret that Mrs. Roosevelt was 80 addressed. They have been unable to ascertain the name of the writer of the letter. In compliance with your request I am enclosing a statement showing the conditions which prevail in the cafeteria at the present time. If any further information is needed. I shall be happy to furnish it. Yours very truly, A. W. Hall Director AVK/els 205 BUREAU OF ENGRAVING AND PRINTING RESTAURANT ASSOCIATION. April 21, 1942. A Resume of Present Conditions The Bureau of Engraving and Printing Restaurant Associ- tion is a non-profit, cooperative association, owned and operated by the employees of the Bureau of Engraving and Printing. All permanent employees of the Bureau of Engraving and Printing, without regard to race, color or creed, are entitled to membership in the Association during the period of their employment, and-are entitled to vote and are eligible to hold office without payment of initiation fees or dues. Each year the Association elects a President, Vice-President, Secretary, Treasurer, and three Governors. These officers constitute the Board of Governors, the controlling body of the Association. In addition to the Board of Governors, there is an Advisory Committee which is comprised of employees representing the various operating divisions of the bureau. Each division is entitled 206 - to elect one representative to the Advisory Committee. Each division having more than two hundred employees is entitled to elect an additional representative for each additional two hundred employees or fraction thereof in excess of an even multiple of two hundred. The lunch room or cafeteria is situated on the fifth floor of the main building of the bureau. It is modernly equipped in all respects. There are four counter lines, and it has a seating capacity for seven hundred persons. The Bureau of Engraving and Printing at the present time employs 7,500 persons, of which number 30% are colored. About 2,000 of the employees are engaged on the afternoon shift. Owing to the limited seating capacity, the luncheon period is spread over a period of two hours, starting at 11 A.M. Prior to the present controversy, counter line No. 1 was used by male white and colored; counter line No. 2 was used by male, white and colored, and an overflow of female, white and colored; counter lines Nos. 3 and 4 were used exclusively by female, white and colored. -While no rule was ever promulgated, it had been the custom, since the inception of the cafeteria of the bureau, for the colored to occupy the end zones of the dining room. There was no definite line of demarcation. Commencing last October a small number of colored girls moved into the area previously used by white girls. A controversy ensued. About the middle of January, 1942, colored girls moved into counter line No. 1, which heretofore was used by sale, white and colored. This intensified the controversy. It has been stated by white employees that colored girls will go through line No. 1, and each girl take a separate table, which, owing to the limited seating capacity, would force white men to sit at the table with them. This the white employees refuse to do. 207 -The white employees further refuse to occupy the same area with the colored employees, as the result of which a large number of white employees do not patronize the cafeteria. The reduction in patronage has made it necessary to close down line No. 3. The white employees have circulated a petition requesting that the procedure which was in vogue prior to the controversy be resumed. The petition was presented to the Board of Governors. The colored and white are engaged in practically the same kind of work. Following the incident which occurred during October, 1941, when a number of colored girls moved into the white area, a letter was received from Mr. Lawrence W. Cramer, Executive Secretary of the President's Committee on Fair Employment Practice, dated November 26, 1941, quoting an affidavit filed with the committee by Miss Melva M. Stuart. This affidavit alleged that Miss Stuart was discriminated against in connection with her employment as a printer's assistant. 208 -Again on December 24, 1941, Mr. Cramer addressed the Bureau of Engraving and Printing, stating that if the allegations made by Miss Stuart are correct, the policy of the restaurant makes invidious distinction between employees of the bureau solely on the basis of race. He further stated that it was his considered opinion that the various agencies of the Federal Government must, under Executive Order 8802, effectively eliminate employment policies based upon racial theories which we are fighting abroad. He also asked what steps had been taken to effectuate the provisions of Executive Order 8802; also A statement as to the particular steps that had been taken in connection with the case presented by Miss Stuart's complaint. In the early part of January. 1942, Mr. Cramer called at the bureau to discuss the case under consideration. During the course of the discussion with Mr. Cramer. he pointed out the necessity for discontinuing the custom of having colored employees sitting in one end of the room and the white in the other. He pointed out that this was a violation of the policy 209 -6- 210 laid down by the President in Executive Order 8802. Mr. Cramer was advised that every effort would be made to comply with the President's policy, and the management of the cafeteria would be so advised. On January 12, 1942, Mr. Cramer addressed a letter to Dean Leon A. Ransom of the Howard University Law School, advising him that the necessary S teps had been taken by the bureau to comply with the terms of Executive Order 8802 in the conduct of the cafeteria maintained by the Bureau of Engraving and Printing Restaurant Associ- ation which has been authorized to use space in the public building in which the activities of the bureau are carried on. A copy of Mr. Cramer's letter was furnished the Bureau of Engraving and Printing. Several days after Mr. Cramer's letter was dispatched to . Dean Ranson, colored girls moved into counter line No. 1, which heretofore had been reserved for male white and colored. White male employees filed serious objections to this procedure. -7Mr. Gerard Swope, Assistant to the Secretary, called in Dr. Mordecai Johnson, President of Howard University, for the purpose of discussing the racial differences in an endeavor to find a remedy for the situation. Doctor Johnson, accompanied by Mr. Spingarn of the legal staff of the department, visited the bureau, but neither was able to bring about a satisfactory adjustment. At a meeting yesterday afternoon in the Treasury Department, one of the members of the Board of Governors said that white employees were not boycotting the cafeteria, but staying away in order to avoid & race riot. He said that colored employees made insulting remarks about white people, and many were afraid that this would bring about physical combat. Another member of the board stated that male colored employees assumed an offensive attitude toward white female employees on the elevators. There have been several reports on this, but the persons guilty of the offense have not been apprehended. 211 212 -8Prior to October, 1941, no racial antagonism was in evidence among employees of the bureau in face of the fact that the employees are closely associated in their work and almost one out of three employees is colored. In a letter dated April 2. 1942, addressed to the Secretary of the Treasury by the National Negro Congress, reference was made to "reports concerning potential and actual inter-racial friction among employees of the Bureau of Engraving and Printing." The controversy which developed in the cafeteria has now spread to every work-room in the bureau and has a marked effect in lowering the morale of the entire personnel. Many employees fear the outbreak of a race riot. The white employees of the bureau are pressing for the re-establishment of the old procedure - that is, the colored employees filling up the dining room from the ends of the room. -9A suggestion was made that in order to avoid a race riot the cafeteria be closed and that only box lunches be sold, which would require employees to take the lunches to their work-room where they would eat it. Another suggestion was submitted calling for the setting aside of line No. 4 for colored, male and female, employees, employ- ing colored girls behind the counter line, and a colored assistant manager to manage the affairs of that part of the cafeteria. Another suggestion was submitted which provided for the reserving of line No. 1 for white men; line No. 2 for white women; line No. 3 for colored women, and line No. 4 for colored men. At a conference with a group of thirty-five colored employees it was ascertained that the colored would oppose any program in the cafeteria leading to the separation of races and sexes. 213