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http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 113.5 - Neutrality Laws Violations REC'D IN FILES SECTION ..tuRgijAa FOR CIRCULATION OFFICE OF THE SECRETARY Mr. Bass/ Miss Westerezien/ Mr. Bethea/ Miss BallV Mr. Brennan/ Mrs. Bastable Mr. Carpenter Miss Fulwiler Mr. Cassil Miss Glazebrook Mr. Coe Mrs. Higdon Mr. Dedman/1/ Mr. Huber Miss Dodd Mr. Kolinski / Mr. Ellison/ v Miss Krieger o' Mrs. Fitzgerald Miss Meisert Mr. Grimes d''6/4.4v4 V/ k,erA. ,/ Mr. Paul 7 Mr. Kilgore / Miss Sloan 1/ Miss Lavelle ,/ Mrs. Smith Mr. MacDowell otiem-e--A/ Mr. HammondV - Mrs. McKnew Mr. Klinel.//''' Mr. Morrill/ Mrs. Rice Mrs. Murphy./ Mr. Surguy 10///' Miss Parkhill/ Mr. Thorn Mr. Poundstone/ Mrs. Anderson"- Mr. Pieseberg/ Mrs. Crewsi- - Mrs. Stewart v/ Miss Davis/ Mrs. Thomasonlif Miss Haislip Mr. Thompson/ Mr. Kiley 4-- http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J14. Y-tc http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • R-671-a EXECUTIVE OFFICE OF THE PRESIDENT Office of 7xovernment Reports Washington, D. C. June 14, 1940. Honorable Marriner S. Eccles, Chairman, Board of Governors, Federal Reserve System, Washington, D. C. Dear Mr. Eccles: Many questions have arisen as to the procedure to be followed in handling complaints and prosecutions of violations of laws relating to neutrality, espionage, sabotage, and kindred offenses. There are enclosed a copy of the President's statement of September 6, 1939, and a release of the Department of Justice, dated June 11, 1940, outlining in detail the procedure to be followed on matters of this character. This material is being brought to your attention for your information and for such distribution within the Federal Reserve System as you may consider appropriate. The procedure is to be uniformly followed by all Federal departments and agencies, both in Washington and in the field. Very truly yours, (Signed) Lowell Mellett Lowell Mellott, DIRECTOR. Enclosures. • R-671-b Statement of the President issued September 6, 1939, with reference to the investigation of charges of violations of Federal laws relating to neutrality, espionage, sabotage, subversive activities and kindred offenses. "The Attorney General has been requested IT me to instruct the Federal Bureau of Investigation of the Department of Justice to take charge of investigative work in matters relating to espionage, sabotage, and violations of the neutrality regulations. "This task must be conducted in a comprehensive and effective manner on a national basis, and all information must be carefully sifted cut and correlated in order to aveid confusion and irresponsibility. "Tc, this end I request all police officers, sheriffs, and all other law enforcement officers in the United States promptly to turn over to the nearest representative of the Federal Bureau of Investigation any information obtained by them relating to espionage, counter-espionage, sabotage, subversive activities, and violations of the neutrality laws." http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • H-671-c FOR RELEASE AFTERNOON PAPERS TUESDAY, JUNE 11, 1940 DEPARTMENT OF JUSTICE The Attorney General announced today that he had issued instructions to the United States Attorneys and Marshals in the United States and its Territories and Possessions outlining in detail the respective functions of the citizens, the Federal Bureau of Investigation, the United States Attorneys and the Department of Justice in Washington, D. C., in handling complaints and prosecutions of violations of laws relating to neutrality, espiohage, sabotage and kindred offenses. Noting that in connection with the existing international situation, United States Attorneys and Marshals would doubtless receive conoiderable information from individuals and groups concerning espionage, sabotage, subversive and similar activities in the United States, its Territories and Possessions, he pointed out that a definite procedure had been established under which the citizens and the various law enforcement agencies each play an appi.opriate part. this respect thc instructions stated: "The duty and function of the citizen is to report to local representatives of the Federal Bureau of Investigation all information relating to violations of this character and not to engage in investigative activity relative thereto. United States Attorneys and Marshals are likewise requested to refer reports, information and any persons having or claiming to have information of violations in this category to the nearest representative or field office of the said Bureau." http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis In -9- R-671-e The Attorney General requested that this procedure be adhered to strictly so as to avoid confusion and irrespon5ibility and to bring about an orderly and correlated handling of information received. While the cooperation of every citizen in turning over useful information to the Federal Bureau of Investigation was welcomed, Federal law enforcement agencies were instructed to discourage as far as possible individuals or groups fron engaging in counter-espionage or activities of an investigative nature, as follows: "Certain of these individuals and groups may offer their active cooperation and propose the formation of volunteer associations and citizen counter-espionage units. Counter-espionage activity by individuals or groups, without official status or responsibility, and the unauthorized assumption of any investigative functions by such groups should be discouraged. The cooperation of TAIT: office is requested to see to it that in no instance should any representative of your office directly or indirectly place the Department in the position of approving, encouraging or sponsoring activity of an investigative nature upon the part of any individuals or organizations." The protection of the civil liberties of loyal and innocent citizens and aliens, as well as the maintenance of a sound public attitude, was emphasized, the instructions stating: http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis "While it is important that those engaged in illegal acts hostile to the best interests and welfare of the American people be promptly detected and the country protected against their activities, it is equally important that the civil liberties of loyal and innocent individuals be not invaded. Care should be taken to assure aliens of complete and friendly protection under the law. The law enforcement officers of the Federal Government have important responsibilities in helping to maintain u reasonable and healthy attitude on the part of citizens of this country and in the turning of their energies and patriotism into useful and efficient channels." R-671-c -3- The procedure contained in the instructions in brief contemplates that the citizen's function is to turn over all information relating to the existence of improper activities in this field to the Federal Bureau of Investigation. The Federal Dureau of Investigation will collect and act as a clearing house of information respecting violations, make the necessary investigations and whenever it appears that a violation of a Federal law may have been committed, will bring the circumstances to the attention of the United States Attorney in the district for the purpose of taking action. The United States Attorney, while having the primary responsibility in the determination of cases for arrest and prosecution, will, except in cases of emergency, secure the prior approval of the Department of Justice in Washington before taking prosccutive action. Within the Department in Washington, a separate unit, known as the Neutrality Laws Unit, has been established to give prompt action on cases submitted to the Department by the United State,s Attorneys, to coordinate such matters in relation to the Government's other activities and to establish uniform and effective standards which will not only safeguard the national interests but will also se.Iture the rights and civil liberties of the individual. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis REC'D IN FILES SECTION ) • JUN 2 4 194Q if FEDERAL RESERVE BANK OF _NEWYORK June 22, 1940. Board of Governors of the Federal Reserve System Washington, D. C. Gentlemen: This will acknowledge the Board's letter of June 20, 1940, R-671 transmitting copy of a letter dated June 14, 1940, with enclosures, addressed to Chairman Eccles by Mr. Lowell Mellett, Director of the Office of Government Reports, outlining the procedure to be followed in handling complaints and prosecutions of violations of laws relating to neutrality, espionage, sabotage and kindred offenses. We are glad to have this information and shall be governed accordingly. Very truly yours, L. R. Rounds' Vice President -a REC'D IN FILES SECTION KINDLY CHECK YOUR NAVE AND CIRCU TE JUL 2-1940 Baldwin, Wm. N. 4/7 Ball, Mrs. Farga 't K./ Boothe, G. L. Boyer, Yrs. Rital7 Bryan, Evelyn t/ y/ Buchanan, Avelynsl Callahan, Franlç J. Caskey, M. P. if Conover, Mrs. Esther. , Craighill, Eller Daniels, M. B. vf DeLeater, John Evans, Louise, ' Farrell, John Goheen, Loretta Hainer, SybilV Hamm4414 ,—444ty Heiner, Mrsvressa ),/ Horbett, J. E. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Hurley, J. J. Jones, Marjorie Kennedy, D. Martin, Mrs. Doray' Minoan, Mrs. The Mitchell, Moore, A. Yorrissette, O. L. . Porter, J. H. I/' ,/ / Scudder, Dilver &mead, E. L..w", Smith, Mrs. JTArell Stone, H. v/ Van Fossen, J. lialker, F. A. Mary C. Wright, Zelpha 1/7 Fornip.R.131 Mr. Smead BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Office Correspondence Division Heads To Prmil Mr. Bethea 1 REC'D IN FILES SECTIO N JUL 2 -1940 Date Xune 21, 1940 Subiect: Procedure to be followed in hanaling complaints and pro secutions of violations of laws relati ng to neutrality, espionage, sabota ge, and kindred offenses. 6- 11;4-LOS( There is attached a copy of a let ter (R-671-a) dated June 14, 1940, and enclosures, on. the above subject, which Mr. Lowell Mellett, Director of the Office of Government Reports, addressd to the Chairman of the Board. Mr. Mellott has been advised tha t copies of his letter and its attachments are being brought to the attention of the personnel of the Board, and it will therefore be appreciat ed if you will have the attached mat erial circulated throughout your division. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis torm F. R. 131 I BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Office Correspondence To 11/' si)S :une 21, 1940 Date Procedure to be follov-ed in nvision Heads §4iffk of violations of laws relating to utrdity, tone, bote, kindred offenses. Mr. Betheft From http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis REC'D IN FILES SECTION JUN 2 4 1940 There is attached a copy of a letter (R-671-a) dated Tune 14, 1940, and enclosures, on the above subject, which Mr. Lowell Mellett, Director of the Office of Government Reports, addreesryd to the Chairman of the Board. Mr. Mellott has been adviced that copies of hie letter and its attachments are being brought to the attention of the personnel of the Boflrd, and it will therefore be ap2recifAed if you will have the attached materiel circulated throughout your division. jcb FILE COPY Copy of this memorandum sent to each division head except Mr. Morrill. d . Form F. R. 131 Parry v IN FILES SECTION I RECTJUN 2 6 1940 BOARD OF GOVERNORS OF THE [I/ FEDERAL RESERVE SYSTEM Correspondence Office Division Heads To From ' Dee §yiNff g3- 444 Tune ATIF Procedure to be followed in 0 of violations of laws relating to neutrality, cepionbge, sabotaf:e, and kindred offenses. Mr. Bethea DiVas. 911110arr NIR. BROWN There is attached a copy of a letter (R-671-a) dated 4'e 14, 19404 and cnclogures, on the ,above subject, wbioh 'j /We 6 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Lowell Monett, Director of the Office of Government Reports, addresard to the Chairman of the Board. Mr. Mellott has been advised that copies of his letter and its attachments are being brought to the attention of the personnel of the Board, and it will therefore be appreciated If you will have the atttinhed mf:terial circulated throughout your division* http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis FILES SECTION JUN 24 1940 R-671-a EXECUTIVE OFFICE OF THE PRESIDENT Office of Government Reports Washington, D. C. June 14, 1940. Honorable Marriner S. Eccles, Chairman, Board of Governors, Federal Reserve System, Washington, D. C. Dear Mr. Eccles: Many questions have arisen as to the procedure to be followed in handling complaints and prosecutions of violations of law3 relating to neutrality, espionage, sabotage, and kindred offenses. There are enclosed a copy of the President's statement of September 6, 1939, and a release of the Department of Justice, dated June 11, 1940, outlining in detail the procedure to be followed on matters of this character. This material is being brought to your attention for your information and for such distribution within the Federal Reserve System as you may consider appropriate. The procedure is to be uniformly followed by all Federal departments and agencies, both in Washington and in the field. Very truly yours, (Signed) Lowell Meilett Lowell Mellett, DIRECTOR. Enclosures. • R-671-b Statement of the President issued September 6, 1939, with reference to the investigation of charges of violations of Federal lav's relating to neutrality, espionage, sabotage, subversive activities and kindred offenses. "The Attorney General has been requested by me to instruct the Federal Bureau of Investigation of the Department of Justice to take charge of investigative work in matters relating to espionage, sabotage, and violations of the neutrality regulations. "This task must be conducted in a comprehensive and effective manner on a national basis, and all information must be carefully sifted Gut and correlated i,: order to avoid confusion and irresponsibility. "To this end I request all police officers, sheriffs, and all other law enforcement officers in the United States promptly to turn over to the nearest representative of the Federal Bureau of Investigation any information obtained by them relating to espionage, counter-espionage, sabotage, subversive activities, and violations of the neutrality lam." http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • R-671-c FOR RELEASE AFTERNOON PAPERS TUESDAY, JUNE 11, 1940 DEPARTNENT OF JUSTICE The Attorney General announced today that he had issued instructions to the United States Attorneys and Marshals in the United States and its Territories and Possessions outlining in detail the respective functions of the citizens, the Federal Bureau of Investigation, the United States Attorneys and the Department of Justice in Washington, D. C., in handling complaints and prosecutions of violations of laws relating to neutrality, espionage, sabotage and kindred offenses. Noting that in connection with the existing international situation, United States Attorneys and Marshals would doubtless receive considerable information from individuals and groups concerning espionage, sabotage, subversive and similar activities in the United States, its Territories and Possessions, he pointed out that a definite procedure had been established under which the citizens and the various law enforcement agencies each play an appropriate part. this respect thc instructions stated: "The duty and function of the citizen is to report to local representatives of the Federal Bureau of Investigation all information relating to violations of this character and not to engage in investigative activity relative thereto. United States Attorneys and Marshals are likewise requested to refer reports, information and any persons having or claiming to have information of violations in this category to the nearest representative or field office of the said Bureau." http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis In • -9- R-671-c The Attorney General requested that this procedure be adhered to strictly so as to avoid confusion and irresponsibility and to bring about an orderly and correlated handling of information received. While the cooperation of every citizen in turning over useful information to the Federal Bureau of Investigation was welcomed, Federal law enforcement agencies were instructed to discourage as far as possible individuals or groups from engaging in counter-espionage or activities of an investigative -Iature, as fellers: "Certain of these individuals and groups may offer their active cooperation and propose the formation of volunteer associations and citizen counter-espionage units. Counter-espionage activity by individuals or groups, without official status or responsibility, and the unauthorized assumption of any investigative functions by such groups should be discouraged. The cooperation of your office is requested to see to it that in no instance should any representative of your office directly or indirectly place the Department in the position of approving, encouraging or sponsoring activity of an investigative nature upon the part of any individuals or organizations." The protection of the civil liberties of loyal and innocent citizens and aliens, as well as the maintenance of a sound public attitude, was emphasized, the instructions stating: http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis "While it is important that those engaged in illegal acts hostile to the best interests and welfare of the American people be promptly detected and the country protected against their activities, it is equally important that the civil liberties of loyal and innocent individuals be not invaded. Care should be taken to assure aliens of complete and friendly protection under the law. The law enforcement officers of the Federal Government have important responsibilities in helping to maintain a reasonable and healthy attitude on the part of citizens of this country and in the turning of their energies and patriotism into useful and efficient channels." • -3The procedure contained in the instructions in brief contemplates that the citizen's function is to turn over all information relating to the existence of improper activities in this fiE.id to the Federal Bur(Jau of Investigation. The Federal Bureau of Investigation will collect and act as a clearing house of information respecting violations, make the necessary investigations and whenever it appears that a violation of a Federal law may have been committed, will bring the circumstances to the attention of the United States Attorney in the district for the purpose of taking action. The United States Attorney, while having the primary responsibility in tie determination of cases for arrest and prosecution, will, except in cases of emergency, secure the prior approval of the Department of Justice in Washington before taking prosecutive action. Within the Department in Washington, a separate unit, known as the Neutrality Laws Unit, has been established to give prompt action on cases submitted to the Department by the United States Attorneys, to coordinate such matters in relation to the Government's other activities and to establish uniform and effective standal.ds which will not only safeguard the national interests but will also secure the rights and civil liberties of the individual. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis C'D IN FILES SECTION • t . Mn; Kijey: JUN 2 4 1940 0) I'd like to have the attached considered 1 1/ an informal memo so tlylt I won't have to make a grnen copy. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis jcb REC'D IN FILES , CTION - JUN 2 5 1940 t? 1V.14 Mr. Lowell Mellett, Director, Office of Government Reports, Executive Office of the President, Washington, D. C. Dear Mr. Mellett: Receipt is acknowledced of your letter of June 14, 1940, with enclosures, to Chairman Eccles, outlining the procedure to be followed in handlinii7 cmplaints and prosecutions of violations of laws relatinE to neutrality, espionage, sabotage and kindred offenses. Copies of your letter and its attnchments are being brought to the attention of the personnel of the Board and are also being .- ;ent the Federal Reserve Evks for the Information of their officers and employees. Very truly yours, L. P. Bethea, :Issistant Seerotary. NI http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis job in 1cap)y • REC'D,IN FILES SECTION JUN 2 4 1940 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM R-671 4. el' WAS ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD June 20, 1940. Dear Sir: There is transmitted herewith, for the information of the officers and employees of your Bank and its Branches (if any), a copy of a letter dated June 14, 1940, with enclosures, addressed to Chairman Eccles by Mr. Lowell Mtillett, Director of the Office of Government Reports, outlining the procedure to be followed in handling complaints and prosecutions of violations of laws relating to neutrality, espionage, sabotage and kindred offenses. Very truly your;, L. P. Bethea, Assistant Secretary. Enclosures 3 TO THE PRESIDENTS OF ALL FEDERAL RESERVE BANKS t //.3 , /. 0/ http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis (e (# • http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis R-671-a EXECUTIVE OFFICE OF THE PRESIDENT Office of Government Reports Washington, D. C. June 14, 1940. Honorable Marriner S. Eccles, Chairman, Board of Governors, Federal Reserve System, Washington, D. C. Dear Mr. Eccles: Many questions have arisen as to the procedure to be followed in handling complaints and prosecutions of violations of lawa relating to neutrality, espionage, sabotage, and kindred offenses. There are enclosed a copy of the President's statement of September 6, 1939, and a release of the Department of Justice, dated June 11, 1940, outlining in detail the procedure to be followed on matters of this character. This material Le being brought to your attention for your information and for such distribution within the Federal Reserve System as you may consider appropriate. The procedure is to be uniformly followed by all Federal departments and agencies, both in Washington and in the field. Very truly yours, (Signed) Lowell Mellett Lowell Mellett, DIRECTOR. Enclosures. 2-67l-b Statement of the President issued September 6, 1939, with reference to the investigation of charges of violations of Federal laws relating to neutrality, espionage, sabotage, subversive activities and kindred offenses. "The Attorney General has been requested by me to instruct the Federal Bureau of Investigation of the Department of Justice to take charge of investigative work in matters relating to espionage, sabotage, and violations of the neutrality regulations. "This task must be conducted in a comprehensive and effective manner on a national basis, and all information must be carefully sifted out and corrciatod in order to avoid confusion and irresponsibility. "T0 this end I request all police officers, sheriffs, and all other law enforcement officers in the United States promptly to turn over to the nearest representative of the Federal Bureau of Investigation any information obtained by thorn relating to espionage, counter-espionage, sabotage, subversive activities, and violatiens of the neutrality laws." http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • R-671-c FOR RELEASE AFTERNOON PAPERS TUESDAY, JUNE 11, 1940 DEPARTMENT OF JUSTICE The Attorney General announced today that he had issued instructions to the United States Attorneys and Marshals in the United States and its Territories and Pcssessions outlining in detail the respective functions of the citizens, the Federal Jur:) - au of Investigation, the United States Attorneys and the Department of Justice in Washinn, D. C., in handling complaints and prosecutions of violations of laws relating to neutrality, evpionage, sabotage and kindred offenses. Noting that in connection with the existing international situation, United States Attorneys and Marshals would doubcless receive considerable information from individuals and groups concerning espionage, sabotage, subversive and similar activities in the United States, its Tarritories and Possessions, he pointed out that a definite procedure had been established under which the citizens and the various law enforcement agencies each play an appropriate part. this respect the instructions stated: "The duty and function of the citizen is to report to local representatives of the Federal Bureau of Investigation all information relating to violations of this character and not to engage in investigative activity relative thereto. United States Attorneys and Marshals are likewise requested to refer reports, information and any persons having or claiming to have information of violations in this category to the nearest representative or field office of the said Bureau." http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis In • -9- R-671-c The Attorney General requested that this procedure be adhered to strictly so as to avoid confusion and irresponsibility ancl to bring about an orderly and correlated handling of information received. While the cooperation of every citizen in turning over useful information to the Federal Bureau of Investigation was welcomed, Federal law enforcement agencies were instructed to discourage as far as possible individuals or groups from engaging in counter-espionage or activities of an investigative nature, as follov7s: "Certain of these individuals and groups may offer their active cooperation and propose the formation of volunteer associations and citizen counter-espionage units. Counter-espionage activity by individuals or groups, without official status ,J.c. responsibility, and the unauthorized assumption of any investigative functions by such groups should be discouraged. The cooperation of y..)ur office is requested to see to it that in no instance should any representative of your office directly or indirectly place the Department in the position of approving, encouraging or sponsoring activity of an investigative nature upon the part of any individuals or organizations." The protection of the civil liberties of loyal and innocent citizens and aliens, as well as the maintenance of a sound public aptitude, was emphasized, the instructions stating: http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis "While it is important that those engaged in illegal acts hostile to the best interests and welfare of the American people be promptly detected and the country protected against their activities, it is equally important that the civil liberties of loyal and innocent individuals be not invaded. Care should be taken to assure aliens of complete and friendly protection under the law. The law enforcement officers of the Federal Government have important responsibilities in helping to maintain a reasonable and healtily attitude on the part of citizens of this country and in the turning of their energies and patriotism into useful and efficient channels." • -3- P.-671-c The procedure contained :in the instructions in brief contemplates that the citizen's function is to turn over all information relating to the existence of improper activities in this field to the Federal Bureau of Investigation. The Federal Bureau of Investigation will collect and act as a clearing house of information r)specting violations, make the necessary investigations and whenever it appears that a violation of a Federal law may have been committed, will bring the circumstances to the attention of the United States Attorney in the district for the purpose of taking action. The United States Attorney, while having the primary responsibility in the determinaticn of cases for arrest and prosecution, will, except in cases of emergency, secure the prior approval of the Department of Justice in Washington before taking prosocutive action. Within the Department in Washington, a separate unit, known as the Neutrality Laws Unit, has been established be give prompt action on cases submitted to the Department by the United States Attorneys, to coordinate such matters in relation to the Gov2rnmc:nt's other activities and to establish uniform and effective standards which will not only safeguard the national interests but will also secure the rights and civil liberties of the individual. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis REC'D IN FILES SECTION JUN 2 5 1940 Dear Sir: for the inforwItion There is transmitted herewith, s of yJur Bank and its Branches of the officers rind employee d :Tune 14, 1940, with en(if any), a copy of a letter date es by Mr. Lowell liellett, closures, addreseed to Chairmen Eccl nt Reports, outlining the Director of the Office oi Governme complaint procedure to be followed in handling tin tions of violations of 1,Awo rela and prosecu- to neutrlJty, espionaec, sabotage and kindred offenses. Very truly yours, Enclosures 3. L. P. Bethea, Assistant Secretary. RESERVE BANKS TO TIM PRnIDETIV: OF ALL YED2RAL jcb 1111 11 rY EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF GOVERNMEN I REPORTS WASHINGTON, D C June 14, 1940. OFFICE OF THE DIRECTOR http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Honorable Marriner S. Eccles, Chairman, Board of Governors, Federal Reserve System, Washington, D. C. Dear Mr. Eccles: Many questions have arisen as to the procedure to be followed in handling complaints and prosecutions of violations of laws relating to neutrality, espionage, sabotage, and kindred offenses. There are enclosed a copy of the President's statement of September 6, 1939, and a release of the Department of Justice, dated June 11, 1940, outlining in detail the procedure to be followed on matters of this character. This material is being brought to your attention for your information and for such distribution within the Federal Reserve System as you may consider appropriate. The procedure is to be uniformly followed by all Federal departments and agencies, both in Washington and in the field. Ve truly yours, Lowell Mellett, DIENCTOIL Enclosures. (4, 7 / - a— D IN FILES SECTION JUN 2 5 1940 /14111-5 • REC'D IN FILES SECTION' JU N 2 5 1940 OD Statement of the President issued September 6, 1939, with reference to to the investigation of charges of violations of Federal laws relating kindred and s activitie e subversiv neutrality, espionage, sabotage, offenses. "The Attorney General has been requested by me to instruct till. Federal Bureau of Investigation of the Department of Justice to take charge of investigative work in matters relating to espionage, sabotage, and violations of the neutrality regulations. "This task must be conducted in a comprehensive and effective manner on a national basis, and all information must be carefully sifted out and correlated in order to avoid confusion and irresponsibility. "To this end I request all police officers, sheriffs, and all other law enforcement officers in the United States promptly to turn over to the nearest representative of the Federal Bureau of Investigation any information obtained by them relating to espionage, counterespionage, sabotage, subversive activities, and violations of the neutrality laws." http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • • REC'D IN FILES SECTION AIN 2 5 1940 I FOR RELEASE AFTERNOON PAPERS TUESDAY, TUNE 11, 1940 DEPARTMENT OF JUSTICE C The Attorney General announced today that he had issue-d instructions to the United States Attorneys and Marshals in the United States and its Territories and Possessions outlining in detail the respective functions of the citizens, the Federal Bureau of Investigation, the United States Attorneys and the Department of Justice in Washington, Di, C., in handling complaints and prosecutions of violations of laws relating to neutrality, espionage, sabotage and kindred offenses. Noting that in connection with the existing international situation, United States Attorneys and Marshals would doubtless receive considerable information from individuals and groups concerning, espionage, sabotage, subversive and similar activities in the United States, its Territories and Possessions, he pointed out that a definite procedure had been established under which the citizens and the various law enforcement agencies each play an appropriate part. In this respect the instructions stated: "The duty and function of the citizen is to report to local representatives of the Federal Bureau of Investigation all information relating to violations of this character and not to engage in investigative activity relative thereto. United States Attorneys and Marshals are likewise requested to refer reports, information and any persons having or claining to have information of violations in this category to the nearest representative or field office of the said Bureau." The Attorney General requested that this procedure be adhered to strictly so as to avoid confusion and irresponsibility and to bring about an orderly and correlated handling of information received. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • 4,111•16 Mille the cooperation of every citizen in turning over useful information to the Federal Bureau of Investigation was welcomed, Federal law enforcement agencies were instructed to discourage as far as possible individuals or groups from engaging in counter-espionage or activities of an investigative nature, as follows: "Certain of these individuals and groups may offer their active cooperation and propose ;the formation of volunteer associations and citizen counter-espionage units. Counter-espionage activity by individuals or groups, without official status or responsibility, and the unauthorized assumption of any investigative functions by such groups should be discouraged. The cooperation of your office is requested to soe to it that in no instance should any representative of your office directly or indirectly place the Department in the position of appreving, encouraging or sponsoring activity of an investigative nature upon the part of any individuals or organizations." The protection of the civil liberties of loyal and innocent citizens and aliens, as well as the maintenance of a sound public attitude, was emphasized, the instructions stating: 'While it is important that those engaged in illegal acts hostile to the best interests and welfare of the Ilmerican people be promptly detected and the country protected against their activities, it is equally important that the civil liberties of loyal and innocent individuals be not invaded. Care should be taken to assure aliens of complete and friendly protection under the law. The law enforcement officers of the Federal Government have important responsibilities in helping to maintain a reasonable and healthy attitude on the part of citizens of this country and in the turning of their energies and patriotism into useful and efficient channels." The procedure contained in the ii)et-uct:Lons in brief contemplates that the citizens function is to turn over all information relating to the existence of improper activities in this field to the Federal Bureau of Investigation. The Iederal Bureau of Irrrectigation will collect and act as a clearing house of information resneetinp violations, make the http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • -3- of a necessary investigations and whenever it appears that a violation to the Federal law may have been committed, will bring the circumstances attention of the United States Attorney in the district for the purpose of taking action. The United States Attorney, while having the primary responsibility in the determination of cases for arrest and prosecution, will, except in cases of emergency, secure the prior approval of the Department of Justice in Washington before taking prosecutive action. Within the Department in Washington, a separate unit, known as the Neutrality Laws Unit, has been established to give prompt action on cases submitted to the Department by the United States Attorneys, to coordinate such matters in relation to the Government's other activities and to establish uniform and effective standards which will not only safeguard the national interests but will also secure the rights and civil liberties of the individual. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis _ % TO_ - Lar.Mor FROM AIN 2 0 1940 REMARKS: If you agree, i.iu. you have this cirulcated for the information of the oard and staff, and send copies to the FR anks and branches--with acknowledgment to ellett from you or your office, maiiiinAgxhim advising halm that this has been given circulation in the ystem? The chairman felt that it might best take this course. ,ighile it may not be highly important, it comes officially from the "'xecutive "'Moe of the 'resiaent. So they evidently think it important. CHAIRMAN'S http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis OFFICE http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis
@FedFRASER