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Annua! Report


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O rganization o f the Departm ent*
Secretary of Commerce...............................
Under Secretary of Commerce..................
Assistant Secretary for Foreign and Do­
mestic C om m erce..................................
Assistant Secretary of Commerce............
Solicitor (A cting)........................................
Executive Assistant to the Secretary . . .
Director, Office of Program Planning . . .
Director, Office of Publications...............
Director, Office of Budget and Manage­
ment ..........................................................
Director, Office of Personnel Administra­
tion .............................................................
Director, Office of Administrative Services .
Director, Office of Industry Cooperation 2.
Director, Office of Technical Services . . .
Director, Bureau of the Census...............
Administrator of Civil Aeronautics . . . .
Director, Coast and Geodetic Survey . . .
Bureau of Foreign and Domestic Com­
merce :
Director, Office of Business Eco­
nomics ...........................................
Director, Office of Domestic Com­
merce .................................................
Director, Office of International
Trade .................................................
Director, Office of Field Service . . .
Commissioner of Patents ............................
Director, National Bureau of Standards .
Chief, Weather B ureau...............................
Inland Waterways Corporation:
President ..............................................
Chairman of the B oard.....................

Charles Sawyer.
C. V. W h itney .
T homas C. B laisdell , J r .
T homas W. S. D avis .1
M atthew H ale .
B ernard L. Gladieux .
R alph D. H etzel, J r .
D onald R. B urgess.
F rancis R. Cawley .
Oliver C. S hort .
G erald R yan .
E arl W. Clark .
J o h n C. G reen .
J ames C. Capt .3
D. W. R entzel .
L eo O tis Colbert.
M. J oseph M eehan .
H . B . M c C oy .

R aymond C. M iller .4
Carlton H ayward.
L awrence C. K ingsland .5
E dward U. Condon .
F. W. R eichelderfer .
A. C. I ngersoll, J r.
S outh T rimble , J r.

*As of June 30, 1949, except as otherwise noted.
1Took office October 14, 1949; previous incumbent, John R. Alison, resigned
March 31, 1949.
2 Office liquidated September 30, 1949, under provisions of Public Law 6, 81st Cong.
3 Retired August 9, 1949; deceased August 30, 1949. Philip M. Hauser, Acting
Director, effective August 9, 1949.
4 Took office October 10, 1949; previous incumbent, until April 14, 1949, Thomas C.
Blaisdell, Jr.
“Resigned November 1, 1949; succeeded by John A. Marzall, November 2, 1949..



31th Annual Report
o f the
ecretary of Commerce
D epartment of Commerce,
Office of the S ecretary,

Washington, December 30,1949.
To the Congress of the United States (through the President) :
Submitted herewith is the Annual Report of the Secretary of Commerce
for the fiscal year ended June 30, 1949. The opening section presents a
general discussion of the broad setting of economic and policy developments
in which the Department performed its functions. This is followed by a
summary report of the principal activities of the several bureaus and offices
during the year.

G eneral D evelopm ents

New Levels of Production and Employment
The fiscal year 1949 saw the national economy reach new peacetime levels
of production and employment and all-time levels of income. Physical out­
put for the year was limited, however, by a decline of industrial production,
amounting by the fourth quarter to 10 percent, from the postwar peak
reached in the second quarter. Thus, while the trend of agricultural pro­
duction continued upward, industrial production averaged slightly less than
for the preceding year. Average civilian employment for the year rose
by about one-half million, however, and both the gross national product and
the national income increased by 7 percent. Only about half of this increase
could be attributed to the rise of prices, which persisted into the early
months of the year.
The Postwar Background
The marked downturn of industrial production was a major feature of the
first general decline to be experienced since the end of hostilities in 1945.
During 1945-46 there had been a sharp contraction of production, as recon­
version of the economy from war to peace was begun. Both business and
consumer expenditures expanded steeply, however, reflecting the backlogs of
investment and consumption needs backed up by unprecedented amounts of
corporate reserves and liquid personal savings. The decline in output which
had resulted from the slashing of Government expenditures to about one-third




of their wartime peak was thus moderated very significantly in its impact
on total economic activity, and unemployment was prevented from rising to
serious levels.
By late 1946 the “turn-around” of business had thus been substantially com­
pleted with a minimum of difficulty. Readjustments during the next 2 years
were even more limited in their consequences. Although they entailed major
declines, first in the building of inventories and later in the volume of net
foreign investment, the contraction of one factor was in each case fortunately
accompanied by an expansion of the other. Expenditures in other categories
continuing strong, the result was to sustain activity generally and, as already
noted, to carry industrial production to a new peacetime high in the second
quarter of fiscal 1949. Indeed, demand pressed so heavily upon supplies as
to force prices upward throughout most of this period, so that, with physical
activity somewhat increased, the dollar value of the national output moved up
to new all-time record levels.
The First Postwar General Decline
Inventory and Price M ovem ents

The first half of fiscal year 1949 brought this period of expansion to
a close and during the second half a general decline began, in which the
dominant factor was marked liquidation of inventories. The forerunner of
this decline was the sharp price drop in basic commodities which had occurred
in February 1948. Following a brief rebound, the decline of these sensitive
prices was resumed and was reflected during the summer by a halt in the rise
of wholesale and retail prices. The changed prospect for price movements
must be regarded as a principal factor both in the backing up of inventories
during the second quarter of the fiscal year and in the sharp reversal of
inventory policy thereafter, a reversal which turned inventory accumulation
at a rate of 9 billion dollars a year into liquidation at a rate of 1.4 billion
dollars in the final quarter.
As this shift in inventory position developed, all other categories of business
expenditures, with the sole exception of net exports, also declined, although
moderately. Consumer expenditures as a whole declined slightly. The com­
bined effect was to offset the slight rise in Government expenditures and net
exports and to reduce the gross national product from a peak annual rate
of 270.3 billion dollars in the second quarter of the fiscal year to one of 259.6
billion dollars in its final quarter, with the decline not yet halted as the year
closed. This reduction was hardly greater than that of inventory investment
alone, a fact which underscores the critical importance of this factor during
the period.
Although average wholesale prices reached a peak early in the fiscal year,
this was not true of all commodity groups. The lowering of the general index
was caused by declines that were chiefly concentrated in foods and farm prod­
ucts, reflecting the substantial improvement in the world supply of critical
commodities such as grains. Some prices, on the other hand, notably those of
the metals, continued to rise into the third quarter. It was this evidence of
continued upward pressure on prices that caused the President to recommend,
as a precautionary measure, the reinstitution of authority to impose price
controls. By the end of the fiscal year, however, the decline had been felt in
all lines and the inflationary period that had begun with the ending of price



controls in 1946 was recognized as at an end. In June 1949, wholesale
prices, although still 37 percent above the level of June 1946, were 9 percent
below their postwar peak; consumer prices, 27 percent above the June 1946
level, had declined 3 percent.
E ffects on D epartm ent Programs

The disappearance of inflationary pressures upon critical commodities was
reflected also in the programs of the Department. The improvement in the
world grain situation relieved the President’s Cabinet Food Committee, in
which the Secretary of Commerce had participated actively, of its responsi­
bilities. The easing of shortages also permitted, by the end of the fiscal year,
the removal of a large number of items from the positive list for export con­
trol and the substantial cutting back of allocations, under the voluntary
agreements program, of scarce commodities for domestic use. The program
developments are discussed at appropriate points below.
Unemployment turned up early in 1949, rising above 3 million for the
first time in nearly seven years. This trend continued throughout the period
but was reversed during the summer. The most serious consequences of this
development were felt, however, not in the economy generally, but in a lim­
ited number of areas where “pools” of serious unemployment appeared. Im­
mediately after the close of the fiscal year this situation was recognized by
the President in an emergency program designed to correspond to the nature
of the problem, a program in which the Department played a central role.
Factors of Economic Strength
Sustained Incom e and C onsum ption

The moderate character of the impact of the growth of unemployment upon
the economy generally is demonstrated by the fact that personal income de­
clined by only 4 billion dollars, or 2 percent, from its peak in the second
quarter, and consumption expenditures declined only half as much as this,
the entire shrinkage of consumption being felt in the nondurable goods lines.
Stability of wage income for the employed and the expansion of unemploy­
ment benefit payments for the unemployed were important factors in limiting
the decline of personal income and of consumption. Associated with the
slight rise in expenditures on consumer durables was a continuation of the
sharp expansion of consumer credit which had begun late in 1945.
Business and G overnm ent Expenditures

Reinforcing the well-sustained level of consumption were domestic business
spending for all purposes other than inventories and expansion of both Gov­
ernment expenditures and the net export surplus. Except for inventory in­
vestment, domestic business expenditures declined only 2.2 billion dollars, at
an annual rate, while the two increasing factors added nearly 4 billion dollars
to the national total. This expansion thus almost fully offset all factors of
decline except the major shift in inventory investment. Although profits de­
clined substantially from the peak reached in the first quarter, business con­
struction and equipment plans appeared to be dominated by a tempered
optimism toward the business outlook rather than by current adverse develop­



impact of Government Programs
In the Government sector, the liquidation of wartime programs and the
assumption of new' peacetime obligations of both military and economic char­
acter had brought a reversal of the decline in Federal expenditures in the first
quarter of 1948. The prospect of continuation of these obligations was a
factor of grow'ing importance because of both their direct impact on economic
activity and their indirect influence through business decisions with respect
to investment programs.
The impact of these Government programs w'as felt very significantly in
the volume of exports as well as in the categories of direct expenditures.
The increase of the export surplus which began in the second quarter of the
fiscal year primarily reflected an expansion of exports and only in lesser
degree a reduction of imports. By the final quarter of the period, exports
were 13 percent higher than in the first quarter. Not only did exports to
the countries included in the program of the Economic Cooperation Admin­
istration rise more than twice as fast as exports to all other areas, but ex­
ports to these other areas were in considerable degree made possible by EGA
financing through the countries receiving direct assistance.
The Department continued to w'ork closely with the ECA, in the develop­
ment of whose initial program it had participated very extensively, and in
this connection to give particular attention to the fullest feasible sharing
of small business in the exports generated by the ECA program. It also
participated extensively in the interdepartmental development of programs
to effectuate “Point Four” of the President’s Inaugural Address, which dealt
with technical assistance to the peoples of underdeveloped areas of the W'orld
and with the promotion of conditions which would stimulate the flow of
private investment into these areas.

Sum m ary o f the Year’s O perations
Business Advisory Council
During the fiscal year 1949, the Business Advisory Council met with the
Secretary of Commerce and other Departmental officers on seven different
occasions. In addition, a number of committees on special subjects held
meetings and rendered reports to the Council and to the Secretary. One new
standing committee was created to advise with the Department of Commerce
and the Department of State on problems arising with respect to Latin Amer­
ica. This committee has met on the average of every five weeks for frank
discussion of important policy questions.
In January 1949, Mr. James S. Knowlson, Chairman of the Board, StewartWarner Corp., succeeded Mr. John L. Collyer as Chairman of the Council.
Nine new members were invited to serve during the period.
On June 30, 1949, the Council was composed of the following officers
and active members:


James S. Knowlson, Chairman, Chicago,
Donald K. David, Vice Chairman, Bos­
ton, Mass.
Marion B. Folsom, Vice Chairman,
Rochester, N. Y.
John M. Hancock, Vice Chairman, New
York, N. Y.
William E. Levis, Vice Chairman, To­
ledo, Ohio.
W. L. Batt, Philadelphia, Pa.
John D. Biggers, Toledo, Ohio.
♦ Edward E. Brown, Chicago, 111.
Howard Bruce, Baltimore, Md.
Paul C. Cabot, Boston, Mass.
J. T. Cecil, Bristol, Tenn.-Va.
♦ Charles S Cheston, Philadelphia, Pa.
♦ John L. Collyer, Akron, Ohio.
Fred Rogers Fairchild, New Haven,
Benjamin F. Fairless, New York, N. Y.
Henry Ford, II, Dearborn, Mich.
Jacob France, Baltimore, Md.
Fred H. Haggerson, New York, N. Y.
W. H. Harrison, New York, N. Y.
Paul G. Hoffman, Washington, D. C.
♦ John Holmes, Chicago, 111.
♦ A. W. Hughes, New York, N. Y.
♦ G. M. Humphrey, Cleveland, Ohio.
♦ Austin S. Igleheart, New York, N. Y.
Alfred W. Jones, Sea Island, Ga.
Emory Scott Land, Washington, D. C.


Fred Lazarus, Jr., Cincinnati, Ohio.
Geo. H. Love, Pittsburgh, Pa.
George C. Marshall, Washington, D. C.
M. Lee Marshall, New York, N. Y.
Thomas B. McCabe, Washington, D. C.
John L. McCaffrey, Chicago, 111.
Earl M. McGowin, Chapman, Ala.
John P. McWilliams, Cleveland, Ohio.
Geo. H. Mead, Dayton, Ohio.
W. J. Murray, Jr., New York, N. Y.
Ernest E. Norris, Washington, D. C.
A. Q. Petersen, New Orleans, La.
John L. Pratt, Fredericksburg, Va.
Gwilym A. Price, Pittsburgh, Pa.
Edgar M. Queeny, St. Louis,_Mo.
Philip D. Reed, New York, N. Y.
Winfield W. Riefler, Washington, D. C.
Walter M. Ringer, Minneapolis, Minn.
C. R. Smith, New York, N. Y.
John W'. Snyder, Washington, D. C.
*A. E. Staley, Jr., Decatur, 111.
♦ Robert T. Stevens, New York, N. Y.
R. Douglas Stuart, Chicago, 111.
John C. Virden, Cleveland, Ohio.
J. Carlton Ward, Jr., Farmington, Conn.
Sidney J. 'Weinberg, New York, N. Y.
♦ Langbourne M. Williams, Jr., New York,
N. Y.
Roger Williams, New York, N. Y.
Charles E. Wilson, Detroit, Mich.
James W. Young, Pena Blanca, N. Mex.

Office of the Solicitor
The Office of the Solicitor, the chief legal officer of the Department, provides
legal services to the Secretary and other Departmental officials. The Office
exercises general supervision over the work of the Bureau and Office legal
staffs, where the major part of the Department’s legal work is done, and
handles all the legal problems of those units which do not have legal staffs.
One of the major responsibilities of the Office of the Solicitor is the direc­
tion and coordination of the Department’s legislative program, including also
the Department’s reports on legislation proposed by other sources. This
function is carried out in close collaboration with policy making officials in
the Department and the affected Bureaus and Offices.
During the fiscal year 1949 requests for comments on 382 bills were re­
ceived from the committees of the Congress, 133 reports setting forth the views
of the Department were prepared and submitted to the Congress, and 18 other
proposed reports were transmitted to the Bureau of the Budget for clearance.
Twenty-six legislative proposals drafted in the Department were submitted
to the Eighty-first Congress, of which four had been enacted by June 30,1949,
and eleven had been reported out of committee or passed in one house. These
legislative proposals included legislation in support of the 1950 census, the
Export Control Act of 1949, and legislation relating to aviation. In all, 480
legislative proposals affecting the Department were referred to the Office
during the year.
♦ Member of the Executive Committee.



All contracts approved by the Secretary were reviewed by the Office. The
number of contracts, leases, licenses, bonds, agreements, and similar con­
tractual matters reviewed during fiscal 1949 was 256.
The Office also prepared or reviewed all requests for opinions from the
Attorney General or Comptroller General, and other matters submitted to
those officials, including reports on litigation. During the fiscal year 191
matters being referred to these officials were handled. The number of legal
opinions and other legal memoranda and correspondence during the year
amounted to 490.
Important matters of a nonroutine nature handled by the Office during
the year included: Advising the Secretary and the Department’s Loyalty
Board in connection with the Loyalty Program under Executive Order 9835 ;
assisting the Inland Waterways Corporation in connection with its program
of transferring its terminals to private operation and its rehabilitation pro­
gram; and assisting the Office of Industry Cooperation in carrying out the
Voluntary Agreement Program under Public Law 395, Eightieth Congress.
Office of Program Planning
The Office of Program Planning carries central staff responsibility for
reviewing, for the Secretary, the Under Secretary, and the Assistant Secre­
taries, the programs of the operating bureaus and offices for the purpose of
assuring fullest integration with the broad programs and policies of the
Department. Many of the problems assigned to this small staff unit entail
joint action or study by more than one of the Department’s constituent bureaus
or operating offices. Often they involve coordination of several Department
activities or policies with those of other Government agencies. Another im­
portant area of activity is comprised of new and emerging problems which
do not clearly fall within any of the existing assignments of the line organiza­
Close liaison is maintained between the staff of program specialists and the
heads of the bureaus and operating offices. They advise and assist in the
formation of policies and programs during their planning stages so as to
minimize duplication of effort, insure complete coverage, and promote full
integration of departmental action. The Office also reviews questionnaires
and economic and statistical reports requiring clearance by the Bureau of
the Budget. By direction of the Secretary, the Office is responsible, further,
for program liaison work with other Federal departments and establishments,
including the constituent parts of the Executive Office of the President. This
involves membership representing the Secretary or the Department on inter­
departmental boards and committees as well as less formal contacts.
Major problems on which the Office was called upon to work during fiscal
year 1949 included:
(а ) Assistance in developing departmental views and recommendations
on the report of the Hoover Commission concerning the Department of
(б ) Comprehensive review of the program of the Bureau of Foreign and
Domestic Commerce, including the preparation of a report recommending
relative program emphasis among the main areas of activity.
(c) Collaboration on a review of the export control program.
(d) Initiation of a study of a departmental program in the field of air
transportation economics.



(e) Development, in cooperation with appropriate bureaus and offices of
the Department, of the broad outlines of a proposed Point Four program;
and membership on the interdepartmental Advisory Committee on Technical
(/) Consideration of the functions that might be performed by the Depart­
ment with respect to industrial mobilization planning. Advice to the Secre­
tary on the operations of the National Security Resources Board, membership
on the Interdepartmental Staff Group of the Board, and participation in the
review by a Board committee of NSRB objectives and program.
(g) Advice with respect to Commerce participation in Air Coordinating
Committee activities, particularly as regards policies for mobilizing air trans­
portation ; and membership on several ACC subcommittees.
(h) Special assignment by the Secretary with respect to coordinating
testimony of Federal agencies in support of the St. Lawrence seaway and
power project joint resolution.
(t) Collaboration with a technical subcommittee of the Department’s
Business Advisory Council in drafting a manual on job stabilization.
(/) Advice to the Secretary in connection with his factfinding tours on
the economic situation and participation in those tours.
(jfc) Participation for the Department in interagency drafting of the
Economic Stability Act of 1949, and in preparing supporting testimony and
Office of Publications
The Office of Publications coordinates the publications and informational
activities of the Department. It also acquaints business and the general
public with the Department’s publications and other services.
In view of hesitant business activity during the latter half of the fiscal
year 1949, the Office gave special attention to disseminating the facts de­
veloped within the Department on the state of the national economy. The
position of small business during the adjustment and the Department’s
services to small-business men received particular emphasis.
Publications activities of the Office centered on extension of the clearance
procedure, whereby projects of the bureaus and offices leading to books or
other publications are reviewed to prevent duplication and assure that essen­
tial projects are undertaken. During the year, 111 projects involving peri­
odicals, series of publications, books, and pamphlets were cleared and a
number of others were revised or dropped. Special studies were made in
the Industry Reports series, and substantial revision was brought about in
the reporting of foreign-trade information in cooperation with the producers
of the World Trade in Commodities series. On the basis of its surveys of
publications programs, the Office also participated in the allocation of the
Department’s printing funds.
Editorial activities continued as a natural complement to the projectclearance procedure. The Office of Publications assisted bureaus and offices
in the preparation of business releases and other publications, made detailed
studies of various periodicals and recommended revision in format and treat­
ment of subject matter, reviewed about 200 articles, speeches, and other man­
uscripts for conformance with departmental policies, and edited numerous
additional manuscripts.
A thorough study resulted in the establishment of a uniform policy gov­
erning the sales and free distribution of the Department’s publications and



limiting the number of free copies. Accordingly, additional publications
were placed on a sales basis. The value of Department of Commerce pub­
lications sold by the Superintendent of Documents again exceeded that of
any other department or agency. Including publications and charts sold
directly by the Department, sales in the fiscal year 1949 totaled $1,367,000.
Contributing to the sales record were various folders and displays de­
signed by the Office of Publications to inform businessmen and others of
the Department’s services and publications. Late in the year the Office
inaugurated a series of public-service announcements for which numerous
radio stations have donated time. These announcements call attention not
only to departmental publications but also to the services available in the
Department’s field offices. By working directly with the field offices on
such projects, and with; trade associations, public libraries, and other
agencies, the Office of Publications helped place the informational services
of the Department more readily at the disposal of American business. As a
further means of giving the public convenient access to the Department’s
store of information, the Office developed and transferred to the Library for
completion a project for the cataloging of all Commerce publications of
recent years.
The News Room distributed to correspondents reports and studies of the
Department bearing on virtually every phase of business and industry and
the foreign and domestic commerce of the United States. Mail distribution
of press releases and other free informational statements was surveyed in
detail with a view to assuring that pertinent material reaches organizations
such as trade journals and associations which wish to receive and give it wide
secondary distribution.
A member of the Office of Publications staff again served as Chairman
of the Publications and Manuals Subcommittee of the Air Coordinating Com­
mittee. This extra activity provided representation for the Department at
staff level in the preparation of the United States’ position on projects of the
International Civil Aviation Organization.
Office of Budget and Management
The Office of Budget and Management is responsible for reviewing and
approving all budget estimates for the Department; controlling the funds of
the Department, and assuring that the expenditure of funds for the execution
of departmental programs follows basic legislative authority; reviewing
organizational structure and developing organizational plans to meet the
current and evolving needs of the Department, and making continuing studies
of functions and organizational relationships; conducting operations audits
and investigations of the administrative and operating practices, procedures,
and methods of the Department; and, in an operating capacity, performing
a complete physical accounting and auditing service for the offices in the Office
of the Secretary, Office of Technical Services, and Bureau of Foreign and
Domestic Commerce, and rendering a central fiscal advisory service to all
bureaus and offices of the Department.
Program R evision

During fiscal year 1949 the Office of Budget and Management, in its third
full year of operation, continued emphasis on the revision and perfection of
the Department’s budget formulation and budget execution programs, par­



ticularly with respect to the new performance budgeting concept, and greatly
expanded its activity in the management field under the impetus given the
management program by the reports of the Commission on Organization of
the Executive Branch and the President’s management improvement pro­
gram. These new programs have given added weight to the effectiveness
of the amalgamation of budgeting and management, as practiced in the
Department of Commerce.
The Office of Budget and Management was requested by the constituent
bureaus and offices of the Department to consider budgetary estimates
totaling $609,667,862 during the fiscal year 1949. After review by this
Office, the Secretary of Commerce approved a total sum of $524,299,817 for
transmittal to the Bureau of the Budget. In addition to the annual budget
estimates, 32 separate supplemental budgets were reviewed, consolidated,
and transmitted by this Office. This Office participated in the justification of
these estimates before the Bureau of the Budget and the Congress; and once
appropriations were made therefrom, prepared and controlled apportion­
ments and in some cases allotments, administered personnel ceilings, and
prepared and transmitted the budgetary and fiscal reports required by the
Bureau of the Budget, the Treasury, and the General Accounting Office.
In the field of budget formulation, the Office collaborated actively with the
Bureau of the Budget in evolving the basis for a departmental performance
budget and presented the fiscal year 1951 budget estimates, in part, on the
performance basis. This work was carried on through the departmental
Budget Officers Conference, which was organized in 1947, and which con­
tinued to be very active during the past year, in addition, considerable time
and study were given to budget execution under the performance budget,
particularly with respect to work measurement bench marks and financial re­
porting. Further refinements in these fields will be developed during the
current year. In this connection, the Office of Budget and Management
organized an intradepartmental Committee on Fiscal Management to collab­
orate with the Joint Accounting Committee of the Bureau of the Budget,
Treasury Department, and the General Accounting Office, and the Accounting
Systems Division, General Accounting Office. This committee enables the
bureaus and offices of the Department to keep abreast of new activities in the
accounting field, especially as they affect budgeting.
The corollary group to the Budget Officer’s Conference, the Council for
Administrative Coordination, established by the Office of Budget and Man­
agement during fiscal year 1947 to give the bureaus and offices a voice in the
formulation of top management policies and practices, continued to serve a
useful purpose during the fiscal year. This year the group sponsored a study
of staffing standards for the common administrative services. Department­
wide studies were completed during fiscal year 1949 in the following fields:
Property management, voucher examination, and pay roll, leave, and retire­
ment. These studies resulted in improved operations and will be extended
in fiscal year 1950 to personnel, fund accounting, and other administrative
activities. In addition, the Council participated in devising departmental
administrative regulations with respect to legislative reporting, surplus prop­
erty, reporting obligations, allowances and compensation abroad, distribu­
tion of publications, and other matters.



O rganization Analysis

In the organization field, members of the staff participated in the analysis
of the reports of the Commission on Organization of the Executive Branch
of the Government (Hoover Commission) and assisted in the preparation
of the Secretary’s comments on the Department of Commerce report and the
first four reports dealing with Management of the Executive Branch, Budget­
ing and Accounting, Personnel Administration, and General Services. In
addition the staff participated in departmental organizational and budget
planning in relation to the seventeenth decennial census, the pilot consolidation
of certain commodit)' units in the Bureau of Foreign and Domestic Commerce,
the development of the Department’s foreign industrial development pro­
gram, the cut-back in the export control program, the liquidation of the Office
of Industry Cooperation, the reorganization of the field establishments of the
Weather Bureau, development and establishment of the Air Navigation De­
velopment Board, and substantial reorganizations within the Civil Aeronau­
tics Administration, the Office of Technical Services, the Inland Waterways
Corporation, and the Office of Domestic Commerce.
The Office of Budget and Management also continued during the year to
operate a system for coordinating the issuance of all internal management
documents having wide applicability through the Department of Commerce.
M anagem ent Studies

The following listing illustrates a few of the numerous management studies
and investigations begun or completed during fiscal year 1949 by staff mem­
bers of the Office of Budget and Management:
1. Participated in the pretesting of the procedures and organization
planned for the seventeenth decennial census. Time spent in actual enumer­
ation in one of the pretest areas resulted in recommendations improving
schedule content, training of enumerators, and organization of field offices.
2. Assisted the Civil Aeronautics Administration by surveys both in Wash­
ington and the field on budgeting and accounting practices for the purpose
of recommending more effective internal management and better presentation
of budget data.
3. Consolidated the printing establishments of the Bureau of Standards
and the Census Bureau with the centra! departmental printing plant pursuant
to new regulations of the Joint Committee on Printing.
4. Established Working Capital Fund reserves for leave costs and equip­
ment replacement and placed the fund on a sufficiently sound basis to enable
it to encompass increased work without an additional capital appropriation.
5. Completed installation of and refined a departmental fiscal reporting
system whereby, quarterly, the obligation status of all funds available to the
various bureaus and offices is reflected by approved plan and rate of obliga­
tion, and developed and pretested a system of program activity reporting
designed to reflect activity performance progress.
6. Reviewed a number of proposed procedural revisions proposed by
operating offices of the department and assisted them in effecting savings in
excess of a quarter million dollars.
7. Conducted department-wide studies of pay rolling, voucher auditing,
and property management activities to assist the bureaus to achieve an effi­
cient operation and adhere to staffing standards established for these activities.
8. Made studies of the export control program resulting in changes in the



review process, and in commodity licensing and enforcement activities, lead­
ing to a more effective operation at a smaller cost.
9. Performed a detailed study of the administrative activities of the
division offices of the Bureau of Standards as related to its central services
and made recommendations to improve their integration and coordination.
Work-Load, Statistics

Work-load statistics for the fiscal year are indicative of the work of the
Division of Accounting Control in its task of performing a complete fiscal
accounting and auditing service for the offices in the Office of the Secretary
and the Bureau of Foreign and Domestic Commerce and rendering a central
advisory fiscal service to all bureaus and offices of the Department. These
records show that the Division audited 25 reimbursable experimental con­
tracts, involving thirteen field investigations; 17 time and attendance surveys,
entailing visits to over 100 offices and inspection of the records of 106 time­
keepers; 8 complete cost audits and surveys of field installations and vessels
of the Department; maintained 650 general ledger accounts and 1,500 allot­
ment accounts, requiring more than 115,000 postings from approximately
37.000 documents; issued and accounted for 1,800 travel orders; audited
11.000 vouchers requiring examination of 85,000 documents; prepared and
processed 5,500 schedules and processed over 6,000 collection items; main­
tained pay roll, leave, and retirement records for an average of 2,100 em­
ployees; and audited and processed more than 55,000 time and attendance
reports. In addition, complete reconciliation was made of the tax, bond,
and retirement accounts of the Office of the Secretary and the Bureau of
Foreign and Domestic Commerce covering transactions over a period of years.
Table 1 presents a consolidated statement of moneys received and disbursed
by the Department during the fiscal year.

T able 1.— Consolidated Statement oj Moneys Received and Disbursed by the Department
B ureau or office

T otal appropria­
tions and

during current
fiscal year

$9,569,108. 57
11,716, 057. 43
283,934, 339. 59
12, 095, 069. 71
28,500. 001.93
397, 648,737. 72

$6, 444,142. 57
10, 190, 859. 90
151,491,869. 24
10,263, 492. 50
11,576,362. 17
239,989, 428. 72

O ffice o f P e r s o n n e l A d m in istra tio n

The fiscal year 1949 witnessed further development of the program to
decentralize personnel administration in the Department on a controlled
basis, the purpose being to achieve both optimum utilization of personnel staff
and facilities, and improvement in efficiency and economy of operations. In
addition, problems caused by large-scale reductions in force, the complete
reorganization of one constituent unit of the Department, the planning of
unique and large-scale operations in connection with the forthcoming de­
cennial census, and the establishment and expansion of substantive programs
required constant staff attention.



Under the established policy of decentralized personnel management, the
Office of Personnel Administration performed the following staff functions
for the Secretary :
(1) Staff planning, including the formulation, issuance, and interpreta­
tion of policies, regulations, and standards to govern the administration of
personnel activities throughout the Department;
(2) Staff review, including inspections at all echelons, for compliance with
Department policies, regulations, and standards, and to determine the ade­
quacy of the personnel program at all levels in the Department; and
(3) Staff assistance, including the rendering of advice and assistance on
operating problems, as necessary, to primary organization units.
Associated with these staff functions, the “line” mission of the Office of Per­
sonnel Administration continued to consist of: (1) Performance of certain
general personnel work for the Department at large; (2) provision of a cen­
tral point of contact for Members of Congress, other Government agencies,
the public, and others on personnel matters affecting the Department; and (3)
provision of personnel operating services (through the Personnel Operations
Division) on a consolidated basis to certain designated small offices to achieve
for them the economies of large-scale operations and to eliminate duplicating
M anagem ent Im provem ents

Efforts to refine the methods of processing the voluminous paper work of
Federal personnel administration in the Department were continued. Dur­
ing the year, a fuller realization of this and other staff objectives was made
possible through the initiation of a program of systematic review of personnel
operations in the actual work situation in the various primary organization
units. The review program was designed to improve the general efficiency and
economy of personnel operations, to make available to Bureau personnel
officers objective and impartial appraisals of their programs and current
information as to new developments in the various personnel specializations,
io ascertain and obtain compliance with Civil Service Commission and De­
partment personnel policy and procedures, to assist personnel officers in
arranging organization, staff, and procedures to operate effectively within
staffing standards, and, in general, to facilitate the development and mainte­
nance of technically sound, efficient, and progressive personnel programs
in the primary organization units. The Personnel Methods Division also
cooperated with the Bureau of the Budget in making a pilot installation of a
standard personnel processing and records system in several areas serviced
by the Personnel Operations Division.
The orderly dispatch of the functions of personnel administration previ­
ously assigned to the primary organization units of the Department has sub­
stantiated the wisdom of the decentralization program, and, during the past
year, additional authority for the processing of personnel actions has been
delegated to various operating levels. To provide current and comprehen­
sive information and instructions to the bureaus to assist them in the efficient
and uniform administration of their increased responsibilities, this Office
has continued to maintain the chapter of personnel regulations of the Depart­
ment’s Manual of Orders on an up-to-date basis, to prepare and distribute
supplementary materials as required, and to provide interpretations of laws,
Executive orders, decisions of the Comptroller General, civil service rules



and regulations, and Department personnel policy and procedure. Current
maintenance of the personnel regulations of the Department required the
revision of nine administrative orders, and the issuance of a new order estab­
lishing policies and procedures governing preappointment loyalty checks on
applicants for sensitive positions.
To supplement these regulations a current revision of the Employee Hand­
book was also prepared and issued to all employees. Further, bureau per­
sonnel officers and their staffs were kept abreast of current developments,
through the continued periodic issuance of Information Bulletins, in which
current regulatory changes, personnel policy decisions, new statutory require­
ments, etc., were set forth. In addition to these materials, the Office of Per­
sonnel Administration this past year developed and issued a new manual, the
Personnel Action Processing Guide, for use by the personnel office staffs of the
several primary organization units. The guide presents comprehensive infor­
mation and instructions, including exhibits, concerning the preparation and
processing of all types of personnel actions. This issuance is believed to be a
significant new development in the Federal personnel field, and greatly facil­
itates the accurate, expeditious processing of personnel actions on a uniform
basis and in full compliance with statutory and regulatory requirements.

The official tabulation of organization and employee strength of the De­
partment from its establishment in 1903 through fiscal year 1949 is shown
in table 2. On July 1, 1949, there were 40,468 paid employees in the De­
partment, including 6,104 part-time workers (8*940 employees who work
without compensation are not included in this figure). In table 2 are shown
the geographic distribution of employees by States within the continental
United States and in the Territories and possessions and the number and per­
centage of veterans included in each geographic total.
E m ployee Programs

Practical training programs were conducted extensively throughout the
Department during the past year to increase the efficiency and effectiveness
of employee work performance. The various bureaus and offices of the
Department conducted continuous programs of indoctrination training for
new employees, skills refresher courses in typing and stenography, efficiency
rating training, and supervisor and administrative management training pro­
grams in both the departmental and field services. Technical training
courses were conducted in the areas of operation and maintenance of aircraft,
flight training, aviation safety, traffic control, communications, public health
services, export control, trade promotion, current business practices, meteor­
ology, weather observation and forecasting, machine tabulation, docket-clerk
training, and trade-mark examining. All of these programs have contributed
to improved employee work performance and increased efficiency of oper­
The Department continued its cooperation with the Civil Service Com­
mission in connection with the administrative intern program designed to
provide selected employees with work experience that will lead to the fullest
possible development and use of their skills and administrative abilities.
Four Commerce Department employees were selected by the Civil Service
Commission to participate in the program for the past year.
8 6 6 1 7 4 — 50 ------- 2

T able 2. — Employment and Organization Changes from February 1903 to July 1, 1919 1
Office of the Secretary. . .
Bureau of C orporations 3.
Bureau of M anufactures 4.
Bureau of Labor 4..............
Bureau of lighthouses ®. .
Bureau of the Census. . . .
C o a s t a n d G e o d e tic
Bureau of Statistics 4. . . .
Bureau of M arine Inspection and N avigation 8. .
Steam boat In sp e c tio n
Service 8.............................
Bureau of Fisheries u.........
Bureau of Navigation 8. . .
Bureau of Im m igration 4.
Bureau of S tand ards.........
Bureau of Foreign and
C hildren’s Bureau J...........
U. S. P atent Oifice.............
Bureau of Mines 10............
Civil Aeronautics AdminRadio Division 12...............
F e d e ra l e m p lo y m e n t
Stabilization Board 13. .
U. S. Shipping Board
Bureau 14...........................
Inland W aterw ays Cor-


1904 1912 1917 1922







123 158 172 183 125 201 141 159 179
62 129
100 93
5,116 5,713 5, 909 5, 758 7,814 5, 071 4, 132
1,393 1, 335 1,247 1,664 2, 687 4, 043 3,914 2, 196 Ì, 728 712,687
314 344 790 978 992 1,280 3, 439 985 1, 347 1,329
212 262 321 366 358 420 643
290 397 452 462 617 1,193 936 1,200
73 82 167 230 240 192
1,211 1,658
71 280 518 968 768 1,035 709 926 946
95 233 595 1, 145 1,538 1, 052 856 897
1,228 1,425 1, 302 1, 372 1,383 1,341
971 882
272 2, 685
3, 447 2,950 3,212








8, 671 6, 936 4, 925 4, 600 76, 489
1,521 2, 097 2,781 2,415 1,924







5, 861

4, 411 4,315
2,285 2,628

7 2, 733

Î, 190 1, 720 2, 267 2, 326 2,311
853 946 853 824 809
1,326 1,399 1,228 1,273 1,267


2, 522 2, 809
2,137 1,905
1,826 2, 005


6,019 8,056 10,120 11,492 10,847


14,884 17,056



3,137 2, 544 2, 602 2, 667
5,653 6,142 6, 612 6,876 ó; 754 7,499 7,907 7,938
T o ta l.......................... to 1 0 ,12oj9,21oj9, 964 9, 613 11,355 14, 889 20,608 19,964 16,28 ljl 0,388 21,560 29, 669]30,206 31,743 32,838 37,247 77 36,935 is 38, 503 40,935

Office of Surplus Prop-





P atent Office....................................... 1925 to present— transferred from Interior D e­
partm ent by Executive Order of Apr. 1, 1925.
Inland W aterw ays C orporation. . 1939 to present— transferred from W ar D epart­
m ent, July 1, 1939.
W eather B ureau................................ 1940 to present— transferred by Reorganization
Plan IV , June 30, 1940.
Civil Aeronautics A dm inistration.
(Aeronautics Branch, 1927 to 1934—nam e changed to Bureau of Air Commerce,
Julv 1, 1934 to 1938— transferred to Civil Aeronautics A dm inistration Aug. 22,
13 Transferred to Federal Radio Commission July 20, 1932, by Executive Order 5892.
15 Transferred to N ational Resources Planning Board by Reorganization Plan I, July 1,
14 Transferred to U. S. M aritim e Commission Oct. 26, 1936, by act of June 29, 1936 (49
Stat. 1985).
18 Transferred to Reconstruction Finance Corporation Nov. 5, 1945, by Executive Order
16 Only total figure available.
17 During the 1946 fiscal year there were transferred to the D epartm ent of Commerce
a large portion of the Foreign Economic A dm inistration, part of the Smaller W ar Plants
Corporation, the Office of Civilian Defense, and the Office of Production, Research and
D evelopm ent of Civilian Production A dm inistration. All have been liquidated and the
few continuing functions absorbed in the D epartm ents regular organization.
18 During 1947, segments of the Office of Price A dm inistration, Office of W ar M obiliza­
tion and Civilian Production Adm inistration were transferred to the D epartm ent and have
been gradually liquidated.
1« T his figure does not include 8,940 employees who worked w ithout compensation for
the D epartm ent, nor are such persons included in other figures on the table. It docs
include 6,104 part-tim e workers who actually worked a total of only 1,370 man-m onths
during June 1949.


1 O n or about July 1 of each year.
* Created by act of Feb. 14, 1903 (32 S tat. 826), as D epartm ent of Commerce and Labor.
* Transferred to Federal T rade Commission, M ar. 16, 1915, by act of Sept. 26, 1914
(38 S tat. 718).
4 Consolidated with Bureau of Foreign and Dom estic Commerce upon its establishm ent
by a ct of Aug. 23, 1912 (37 S tat. 407).
1 Labor functions removed and placed in new D epartm ent of Labor by act of M ar. 4,
1913 (37 S tat. 736).
8 Transferred to Treasury D epartm ent by Reorganization Plan II, July 1, 1939 (origi­
nally established as Lighthouse Service).
11n addition to the num ber of regular employees listed, the Bureau of the Census also
employed the following num bers of tem porary census employees to take special censuses
during the years indicated:
1940.................... 100,000 (approxim ation).
1945.................... 31,226.
1949.................... 6,424.
* Consolidated with and nam e changed to Bureau of N avigation and .Steamship Inspec­
tion June 30, 1932, and on M ay 27, 1936. Transferred to Treasury D epartm ent M ar. 1,
1942, by Executive Order 9083.
«Transferred to Interior D epartm ent July 1, 1939, by Reorganization Plan II.
10 Transferred to Interior D epartm ent Apr. 23, 1934, by Executive Order 6511 of Feb.
22 , 1934.
li Current Bureaus and Offices:
Office of the Secretary..................... 1903 to present.
Bureau of the C ensus....................... 1903 to present.
Coast and Geodetic S urvey........... 1903 to present.
Bureau of S tand ards........................ 1903 to present.
Bureau of Foreign and Dom estic 1912 to present— Act of Aug. 23, 1912.




T a ble 3. — Geographic Distribution of Employees in the Continental United States and

in the Territories and Possessions and Number and Percentage of Veterans Included
{as of Dec. 31, 1948)

T otal N u m ­ P er­
ber ber of cent
C ontinental U nited States num
of em ­ veter­ veter­
ployees ans

M aryland.................................
M assachusetts........................

New Jersey ..............................
N orth D a k o ta .........................
O h io ..........................................


4, 575

35. 3
32. 3
45. 6
41. 7
58. 0
45. 3
43. 6
35. 4
49. 1
53. 3
43. 8
30. 6
39. 4
51. 3
54. 1
57. 5

T otal N um ­ P er­
ber ber of cent
C ontinental U nited States num
of em ­ veter­ veter­
ployees ans

37,072 15,625

42. 1

T erritories and possessions
of the U nited States

Swan Island. W est Indies. .



52 . 7

T otal (Territories
and possessions!. . 2, 684


58 .6

The Employee Utilization Division initiated a study of the uniform effi­
ciency rating system within the Department to obtain data relative to needed
improvements in the evaluation of employee performance. Questionnaires
were distributed to all supervisors of three or more employees, and to repre­
sentative employees in the various primary organization units. The response
to these questionnaires, constituting an appraisal of current administration
and uses of efficiency ratings, and suggestions for improvement, will form
the basis for development of a Departmental employee performance evalua­
tion system and be useful to the Civil Service Commission and the Congress
in their consideration of the same subject.
In the areas of substantive program activity, the fiscal year 1949 saw
the successful continuance of the Employee Suggestion Program, and initia­
tion of the newly established Honor Awards Program in the first annual De­
partment of Commerce awards ceremony. Operation of the suggestion
program during the past year resulted in: (1) The submission of 2,148 sug­
gestions; (2) adoption of 136 suggestions; and (3) payment of $3,093 for
suggestions which made possible an estimated annual dollar savings of $66,672
for the Department. Following the nomination of candidates by the primary
organization units, and their consideration by the Employee Awards Board, 16
employees were selected to receive the Exceptional Service Award for out­
standing contributions to the public service, the Nation or humanity; and
110 employees were selected to receive the Meritorious Service Award for



service of unusual value to the Department. Exceptional and Meritorious
Award certificates and gold and silver medals, and appropriate length of
service awards were presented to recipients at the honor awards ceremony
attended by Government notables, Department officials, the families of award
recipients, and Department employees with 20 years of service. The pro­
gram was enthusiastically received and is expected to be of increasing im­
portance to the further improvement of employee morale and the encourage­
ment of sustained excellent work performance.
O perational Activities

Reorganization of the Civil Aeronautics Administration required the con­
sideration and allocation of many new positions, and the survey of many
organization areas in that bureau. The Classification and Wage Division
gave staff advisory assistance in this regard, and reviewed and obtained Civil
Service Commission approval of high-level positions established in conform­
ance with organization planning and the realignment of bureau functions.
In addition, the Division completed studies leading to the establishment of a
proper grade structure for several thousand CAA positions of air traffic
controller and development of allocation standards for the communications
and meteorological series. Through membership on the Interdepartmental
Lithographic Board, it also assisted materially in the establishment of new
uniform wage rates for Federal employees engaged in lithographic and print­
ing trades in the Washington, D. C., metropolitan area, and the preparation
and issuance of an Evaluation Standards Manual for Printing Plant Jobs.
The Department continued to administer the extensive examining program
necessitated by the Civil Service Commission’s delegation of responsibility
for conducting civil-service examinations to the operating agencies. During
the past year, a total of 43 examinations were planned and conducted by the
several primary organization units as follows: Bureau of the Census, 5;
Coast and Geodetic Survey, 2; Patent Office, 3; Weather Bureau, 2; Civil
Aeronautics Administration, 19; and the Personnel Operations Division, 12.
The Personnel Operations Division continued to provide personnel oper­
ating services on a consolidated basis to certain small offices of the Depart­
ment. Reduction in funds available for the export control program, the Divi­
sion of Liquidation, and other activities resulted in several large reductions
in force in the area serviced by that Division. With the assistance of the
Personnel Assignment Board and the effective operation of out-placement
service, the Division was able to place all but a few of the affected employees.
Office of Administrative Services
The Office of Administrative Services directs the application of adminis­
trative service policies and procedures throughout the Department, furnishes
all administrative services required by the Office of the Secretary and the
Bureau of Foreign and Domestic Commerce, and provides the other primary
units of the department with all administrative services which such units have
not been authorized to furnish themselves.
Principal organizational components of the Office of Administrative Serv­
ices are the Division of Printing Services; the Division of Operating Facili­
ties; and the Special Services Staff. Major accomplishments of each are
detailed below.



Division o f P rinting Services

In addition to carrying out its responsibilities of reviewing and coordinat­
ing the printing, duplicating, and forms standardization for the Department,
the Division of Printing Services performed similar services for several other
agencies, among which were the Air Coordinating Committee and the Atomic
Energy Commission. Because of the unusual facilities of the Division of
Printing Services, it was unnecessary for these two agencies to establish their
own organizations for printing services.
Several special printing programs were carried to completion. The most
outstanding of these were those involving the Census of Manufactures and the
Census of Business. The Census of Manufactures, taken in the fiscal year
1948, was tabulated and resulted in 51 State and Territory reports, 82 indus­
try reports, and 4 final bound volumes. Approximately 800 copies of each
State and industry report were printed with an average of 16 pages each.
The forms for the Census of Business were designed, drafted, compiled, and
printed during the fiscal year. There were 20 large forms ranging from
10,000 to 6,000,000 copies each and 30 smaller forms in varying quantities.
Pretest forms wTere designed and other preliminary wTork on the Seventeenth
Decennial Census was started.
Division o f O perating Facilities

The Division of Operating Facilities placed 7,349 orders involving an ex­
penditure of approximately $922,677; examined 182 contracts approximating
$6,857,486 which were submitted by the several offices of the Department;
repaired, overhauled, or cleaned 5,813 typewriters; issued approximately
$167,085 worth of stock to the various bureaus and offices of the Department;
and made 6,304 shipments weighing a total of 477,347 pounds.
The Division acquired an estimated $380,921 of surplus property from
other agencies and an estimated $29,300 of forfeited property, without cost.
Through the property utilization program, the Department was saved an esti­
mated $224,598 by the filling of requisitions from Department surplus. This
division also acted on a total of 716 surveys of public property involving prop­
erty valued at approximately $7,173,346; and declared surplus property
amounting to $302,881 to the War Assets Administration and the Bureau of
Federal Supply.
Through cooperation between the Department and the General Services
Administration in the assignment of Government buildings, the Division
released three privately owned buildings leased to the Government in the
metropolitan area of Washington, totaling 33,874 square feet.
At the close of the fiscal year, the Department library had a total of
337,881 volumes in its cataloged collection. During the fiscal year, the
library loaned 77,548 volumes; answered 22,623 reference requests; pro­
vided reading room service for 26,139 readers; borrowed 2,486 publications
and loaned 2,803 publications to other libraries; cataloged, classified, and
processed for their permanent collection 9,302 publications and withdrew
4,006 volumes which were no longer of value; received currently during
the year a total of 2,673 periodical titles, including foreign and domestic
official and nonofficial publications, of which 843 volumes were bound; and
completely revised the special collection of city and telephone directories by
replacing old issues with current editions and preparing a new card catalog
as a guide to the collection.



In January 1949, the library began a new monthly publication, the Library
Reference List, and started a display shelf of new books to provide admin­
istrative and research personnel with information concerning new publica­
tions immediately after their addition to the library. In February 1949, the
Library assumed responsibility for publishing the Business Service Check List
following its transfer from the Office of Publications.
Special Services Staff

The Special Services Staff provides an information center for the various
bureaus and offices of the Department housed in the Commerce and 18 other
buildings, as well as other agencies and organizations located in the Depart­
ment of Commerce Building. Among the latter are the Civil Aeronautics
Board, the Air Coordination Committee, the Business Advisory Council, the
Inland Waterways Corporation, and the Small Business Committee.
During the fiscal year, this office received an average of 230 visitors and
715 telephone inquiries a day. Continued realinement of, and additions to,
the functions of the various bureaus and offices of the Department made it
necessary for this office to maintain numerous functional charts and direc­
tories of the units comprising the Department. In addition approximately
10,000 individual records were maintained.
Office of Industry Cooperation
The Office of Industry Cooperation was established January 22, 1948, by
Department Order 96, to assist the Secretary of Commerce in carrying out
the functions delegated to him under Public Law 395, Eightieth Congress, and
Executive Order 9919. Under this authority, the Office of Industry Co­
operation consulted with representatives of industry and business with a
view to encouraging their making of voluntary agreements regarding priority,
allocation, and inventory controls of scarce commodities which basically
affected the cost of living or industrial production.
Such agreements were developed after consultation with supplying and
consuming industries and after public hearing. Before being placed in oper­
ation, they required approval by the Attorney General and the Secretary of
Commerce. Such approval granted certain immunities from antitrust and
Federal trade liabilities. Public Law 395 specified that these agreements
should cease to be effective not later than March 1, 1949, and should not
provide for price fixing. Public Law 6, Eighty-First Congress, extended the
termination date of the agreements to September 30,1949.
Under the Director, the Office had seven negotiating divisions: (1) Iron
and Steel; (2) Agricultural Machinery and Equipment; (3) Petroleum, Gas,
and Oil Equipment; (4) Transportation Equipment; (5) Building Mate­
rials; (6) Nonferrous Metals; and (7) Chemicals; and four staff advisory
officers—Departmental mobilization, congressional relations, legal, and spe­
cial projects. The Labor Advisory Staff of the Secretary’s Office was used
for pertinent advice when needed.
Industry Advisory Com m ittees

In administering the program, the OIC placed much reliance upon Indus­
try Advisory Committees. These committees, which were representative of
the industries considering or participating in a voluntary plan, maintained
a continuing review of the situations giving rise to the need for plans and
made recommendations to the OIC with respect to proposed plans or plans
already in effect. The close cooperation between the OIC and industry in



the voluntary agreements program is indicated by the committee activity.
As of the end of the year, there were 27 advisory committees in operation,
of which 12 were appointed during the fiscal year. Over the course of the
year, the advisory committees held 36 meetings; there were 26 exploratory
meetings held prior to the formation of advisory committees; and there were
33 meetings of Task Committees. There were also numerous informal meet­
ings with various industry groups in order to consider mutual problems
stemming from or relating to materials shortages. Also, during the year,
the OIC held 24 public hearings on proposed plans and proposed changes
in existing plans.
Voluntary Plans in E ffect

The fiscal year opened with 4 voluntary plans already in effect: Steel for
Freight Cars; Steel for Atomic Energy Commission Projects; Steel for Warm
Air Heating Equipment; and Pig Iron for Housing. During the year, 15
additional plans for the allocation of steel products were approved and put
into effect. The highest tonnage allocated was for the month of May 1949,
when the various steel plans called for 581,233 tons. Thereafter, tonnages
under the plans were modified downward due to the easing steel situation.
The plans, their date of approval, and their tonnages as of the month of
May follow:
Plan '

Freight cars.....................................................
Warm air heating equipment....................
Atomic Energy Commission projects
Factory-made steel houses 2......................
Tank and oil field production equipment
Barges and towing vessels ........................
Armed forces..................................................
Anthracite mining machinery industry .
Federal aeronautical agencies....................
Oil tankers......................................................
Merchant vessels .....................................
Mining machinery industry ...............
Manganese ore cars......................................
Oak Ridge pipe line.....................................
Grain bins.......................................................
Federal reclamation projects ...............
Economic Cooperation Administration .
Baseboard radiation.....................................
Pig iron for housing a...................................

Date of ap

for May

30, 1948 238, 823
21, 1948 26,400
22, 1948 16, 414
18, 1948
25, 1948 18, 530
25, 1948 25,000
25, 1948 102,505
25, 1948
17, 1948
21, 1948 40, 380
5, 1948 15,414
3, 1949 31,785
3, 1949
28, 1949
4, 750
21, 1949
8, 400
24, 1949 11,315
24, 1949 33,319
4, 1949
28, 1948 84,505

1 All involved the allocation of steel for the uses shown except the one plan covering pig iron for housing.
3 T his plan called for 59,000 tons, Septem ber 1948-Februarv 1949. T he actual set-aside reached only
some 35,000 tons for the period and, although the plan was extended through M ay 31, no allocations were
m ade during the extension period.
1 T he peak in this plan was reached in A ugust 1948, w hen 106,830 tons were allocated.

O ther Areas o f Activity

A large portion of the OIC activity was directed toward the consideration,
analysis, negotiation, and administration of the voluntary plans put into
effect. In addition, however, the OIC was continually confronted with



various proposals, requests for aid, and other problems which necessitated
action. The chief areas of activity were as follows:
P roposals R eviewed.—In addition to the plans developed, upward of a
score of proposals for voluntary plans came to the OIC during the year.
Each proposal was carefully analyzed and considered. A number of the
proposals were held under consideration pending further developments
within the economy; some the OIC found not practicable; in others, the pro­
ducing or the consuming industries involved did not consider a plan neces­
sary; in others, the need for a plan was eliminated by a change in the supply
situation, or by other arrangements. The fact that OlC considered the vari­
ous proposals meant that Government and industry jointly endeavored to
solve some of the more pressing shortage problems, and the mutual consid­
eration is believed to have been helpful.
P articipation in S tock-piling Raw Materials.—The OIC continued its
close work with the Munitions Board toward the objective of stock-piling
strategic raw materials. A number of meetings were conducted by the OIC
with appropriate industry groups in order to consider whether a voluntary
plan would be desirable in attainment of the target. Although no voluntary
plans were developed, the OIC presented the stock-piling problem to industry
and was effective in obtaining industry cooperation in solving the problem.
Iron and Steel S crap.—The very large steel production of the period
was constantly jeopardized by scrap shortages. The OIC attempted to alle­
viate the shortage through fostering and promoting a domestic scrap drive,
and by tapping foreign sources (Germany). Both efforts were successful,
and steel production was not cut back during the year because of scrap
S pot A ssistance.-—Numerous requests were made upon OIC to give “spot
assistance” in order to alleviate serious shortage problems where voluntary
plans were inappropriate or could not be developed as rapidly as the prob­
lem warranted. In such cases, providing the public interest would be served,
the OIC used its good offices to help solve the problem. One example of
this type of activity was aiding municipalities to obtain critically needed
steel products for municipal uses.
Program. Liquidation

During the latter part of the fiscal year some of the allocations under the
voluntary plans were not fully taken up. As this situation became more
general it was reflected in the planning carried out by the OIC with the
assistance of a Reduction in Quantities Committee, whose recommendations,
when adopted, became effective after 60 days. In view of the rapid easing
of shortages, the allocations which became effective in June were substan­
tially below those of May and by the end of the fiscal year the Office was
ready to begin final liquidation of its program, a process scheduled for com­
pletion by September 30.
Office of Technical Services
The Office of Technical Services continued to service the business commu­
nity and the Federal Government through a wide range of functions which
included the maintenance of a clearing house of technical reports from United
States military and captured foreign sources, a Technical Advisory Service
of special value to smaller firms, and staff work for the National inventors



Council, a voluntary group of distinguished scientists and engineers which
seeks the aid of independent inventors in the solution of technical problems
for the Federal agencies. The cooperative services of Government labora­
tories, the Library of Congress, and 400 private industrial organizations per­
mitted the maintenance of these basic services with an appropriation of
$200,000. Particularly helpful was the action of the Library of Congress in
assuming mechanical functions having to do with the handling of photo­
duplicate orders.
Though reductions in funds required issuance of the Bibliography of
Scientific and Industrial Reports (renamed July 1, 1949, the Bibliography
of Technical Reports) on a monthly rather than a weekly basis, and listings
accordingly were reduced about 75 percent, orders for photoduplicate copies
of reports dropped only about 40 percent, an indication of the cumulative
demand established for these materials. Sales of mimeographed and multilith report copies under the trust fund, established during the latter half of
the preceding year, climbed sharply, and totaled $8,580 in one record month.
Final reports for almost all of the research projects initiated with the funds
authorized during fiscal 1947 were submitted, and all attracted wide interest.
Some 3,000 copies of a detailed final technical report of a single project in
the construction field were sold within a 2-month period. Despite the cessa­
tion of Department of Commerce financial assistance for these research
projects, in most cases the work was carried forward by private resources
mobilized because of the deep and widespread interest aroused by the report
issued at the end of the period of Government sponsorship.
To cope with its budget reduction, the Office of Technical Services adopted
a tighter administrative structure, with two divisions replacing the former
three. The Library Division handled all work having to do with the opera­
tion of the OTS collection of technical reports, the so-called “PB” collection,
including notification to the public; while the Analysis Division conducted
operations requiring professionally trained personnel, such as the Technical
Advisory Service and the National Inventors Council.
Library Division

The collection of technological reports from Federal, foreign, and other
nonconfidential research sources grew by a total of 10,415 items during
fiscal year 1949. Each one of these items was cataloged, indexed, and
included in the monthly issues of the Bibliography of Scientific and Indus­
trial Reports. Because of staff limitations, only 1,356 of these items were
published with abstracts, most such abstracts having been furnished by the
source from which the report was received.
As in the past, except for reports available under the trust fund, items
were deposited in the Library of Congress after listing, where photoduplicates
were available on order. In the case of trust fund reports, copies were
printed by mimeograph, multilith, or similar process, and sold from a stock
maintained in the Commerce Building. Prices were established at levels
sufficient to recover reproduction costs, and receipts were used to reimburse
the trust fund, in accordance with congressional authorization.
Total sales of reports and publications during the fiscal year aggregated
$207,375, of which $48,745 was accounted for under the trust fund.
To insure the regular, prompt acquisition of the best technical reports from
current Federal research, special negotiations were carried on by personnel
of the Library Division with the Air Force, the Quartermaster General, the



Canadian National Research Council and similar organizations. This pro­
gram has met with continuing success, and has greatly improved the quality
of materials being added to the “PB” collection.
On the other hand, steps were taken to sort out worth while materials from
the vast quantity of foreign technical material acquired from allied investi­
gations in Germany, and the balance was farmed out for inspection by mili­
tary organizations which agreed to notify OTS of reports significant enough
to warrant general public notification.
Analysis Division

Absorbing functions of sections in the former Review and Inquiry Di­
visions, the Analysis Division was composed of experts in four technical
fields, with their necessary clerical assistants: Electrical, mechanical, chem­
ical, and materials technology.
Each one of the specialists handled all professional problems arising in
his own field. This included advice and consultation on acquisition and
dissemination programs operated by the Library Division; answering of pro­
duction-problems inquiries under the Technical Advisory Service program;
and the routing of inventive suggestions received in response to problems
distributed by the National Inventors Council.
Approximately 31,500 simple reference inquiries were handled directly
by the Library Division. Five hundred and fifty Technical Advisory Service
queries, however, were answered by the Analysis Division, and 3,400 Na­
tional Inventors Council evaluations were prepared. During the fiscal year
the council authorized the release of 94 new problems to United States
Bureau of the Census
It is with deep regret that the retirement of Mr. J. C. Capt as Director of
the Census on August 9, and his death on August 30, 1949, are recorded here.
Mr. Capt became Director of the Census in May 1941, taking over at a time
when the office operations of the Sixteenth Census were at their peak. He
successfully guided the destinies of the Census Bureau through the trying
period of World War II, during which time the Bureau rendered invaluable
statistical service to the various war agencies. After the war, the réévalua­
tion of the Census program in the light of current needs led to improved
basic legislation placing the program of the Bureau on an improved basis.
Mr. Capt was ill for a year before his retirement. The staff of the Bureau
and his many friends throughout the Department mourn his loss.
In addition to carrying out the continuing program of current statistics,
census activities during the fiscal year were concentrated upon completion
of the 1947 census of manufactures, planning and initiation of the 1948
census of business, and planning and major preparations for the censuses of
population, housing, and agriculture to be taken in 1950. Significant de­
velopments in methods and concepts have taken place in each of the major
censuses. Particularly important among these are the more extensive use
of testing of alternatives in arriving at the formulation of census procedures
and the design of schedules, and steps taken to appraise the quality of the



results through a postenumeration survey. The latter involves an intensive
canvass of a scientifically selected sample of representative small areas in
order to check the completeness and accuracy with which a census has been
carried out.
The reduction in funds available during the past year at a time when in­
creasing public interest created a demand for postwar population and eco­
nomic statistics necessitated a thorough review of the Bureau’s current pro­
grams. This review attempted to retain and place emphasis upon those statis­
tical series which were of the greatest usefulness to businessmen, manufac­
tures, the Congress, colleges and universities, and the general public.

1947 Census of Manufactures.—The 1947 Census of Manufactures was
completed and all reports had been sent to the printer by the end of fiscal
year 1949. Preliminary releases had been issued for all important industries
and for each of the States. Industry reports were expected to be available
by the end of September 1949, and the final industry volume, combining
all the industry reports, was expected in December. The final State reports
were to be issued in October and November and the State volume in January
1950. The third and final volume in the series, the general summary, would
be available early in 1950.
New features of this census included use of social security records for
improving coverage and integrating statistics; use of precanvass and post­
enumeration surveys to improve efficiency of the operations and to check on
the results; use of a simplified schedule for small firms; publication of value
figures for product groups as well as for specified products; and other
changes designed to improve the usefulness of the statistics and to decrease
the possibility of their misuse.
1948 Census o f Business.—-Provision was made for a Census of Business
at 5-year intervals in Public Law 671 (62 Stat. 478; 13 U. S. C. 121-123),
approved June 19, 1948. The Census of Business, covering the year 1948
and conducted in 1949, is the first since 1939. Since this canvass was oper­
ated on preparatory funds only until May 24, 1949, only about one-third of
the reports had been collected in the field by June 30, 1949, and editing had
just been started.
The 1948 census covers the United States, Alaska, and Hawaii. It covers
all retail and wholesale trades, as well as selected groups of service businesses
including personal, repair, and business services, hotels and places of
Although much of the information collected in this census is similar to that
for previous censuses, there are important differences in scope and procedures.
Report forms were distributed during the field canvass to be completed and
mailed to the field offices by the respondents. Only limited data were col­
lected from all small retail establishments, but more detailed data were col­
lected from every tenth small independent retailer, and from all the large
retailers and all units of multiunit and chain organizations. Other procedural
changes included preliminary editing of report forms in field offices; the use
of a postenumeration survey to measure accuracy and completeness of cov­
erage; and payment of field enumerators on a per diem rather than a piece
price basis, accompanied by the development of production controls.
Seventeenth Decennial Census (Population, Housing, and Agricul­
ture).—Preparatory work for the Seventeenth Decennial Census included



pretesting and evaluation of alternative procedures, the preparation and test­
ing of schedules and instructions, the planning of a complete field organiza­
tion and set of procedures, and the development of plans for recruiting and
training an army of field and office workers, many of whom must have special
technical qualifications and training.
Legislation authorizing a decennial Census of Housing was in the final stage
of enactment as the year closed, becoming effective July 15, 1949 (Public
Law 171). A request to the Congress for a supplemental appropriation for
the Census of Housing Operations, including a survey of residential financ­
ing, was ready for transmittal by the President promptly upon final approval
of this measure.
New features planned for the 1950 census include the use of a 20 percent
sample of population, households, and farms to obtain additional informa­
tion at the same time that the basic data will be collected on a 100 percent
basis. Results from the 20 percent sample will yield information for coun­
ties and other small areas. In most areas the Census of Agriculture will be
taken by a self-enumeration technique. Schedules will be distributed
through post-office facilities and respondents will be requested to have their
schedules completed by the time the enumerator visits their farm, thereby
reducing enumeration time considerably. Forty-one sectional or regional
schedules will be used for the census of agriculture.
The schedules and procedures for these censuses were extensively tested to
insure maximum efficiency under the conditions which exist in the taking
of a large-scale census.

Standard Metropolitan Areas.—In cooperation with the Bureau of the
Budget and other Federal agencies, work was continued to establish a set
of “standard metropolitan areas.” Each area consists of a central city of
50,000 or more population and one or more whole counties closely integrated
in their daily economic activities. These standard metropolitan areas have
been favorably received by many users and will replace a number of different
types of metropolitan areas that previously have been used in different
Foreign Trude Statistics.•—As a result of continued reduced appropria­
tions, fiscal year 1949 continued to be a year of retrenchment in the amount
and quality of the foreign trade statistics. It was possible, however, to reprint
Schedule B, Statistical Classification of Domestic and Foreign Commodities
Exported from the United States, and to prepare copy for a new Schedule A,
Statistical Classification of Imports into the United States.
Advisory Committee on Stale and Local Government Statistics
A new Advisory Committee on State and Local Government Statistics was
established to advise the Census Bureau with regard to the compilation and
reporting of State and local government data. Members of this group are
nationally known and represent varied interests in governmental affairs—
States, cities, civic and taxpayers’ groups, research agencies, teachers and
writers in the field of economics, and public finance officers.
Industry Statistics.—A significant development in this program was the
use of Public Law 671 which gives the Bureau authority to place on a man­
datory basis annual surveys collecting needed information of the type col­
lected in complete censuses. During fiscal year 1949, four annual surveys
in the textile and apparel fields were conducted on this basis.



International Statistics.—The Census Bureau continued its program
of cooperation with foreign statistical and census offices and technicians
during the past year. Under this program statistical officials of the other
American Republics are brought to the United States for training in census
procedures and statistical methods. Officials from 20 Latin American coun­
tries received organized instruction in census methods under the American
Republics program of the Interdepartmental Committee of Scientific and
Cultural Cooperation. Similarly, technicians of the Census Bureau were
detailed as consultants to census and statistical offices of Latin America at
the request of the governments involved.
Statistical Abstract.—A new volume, entitled Historical Statistics of
the United States 1789-1945 (House Document 330, 80th Cong.), was com­
pleted during the year. This supplement to the Statistical Abstract, prepared
with the cooperation of the Social Science Research Council, presents about
3,000 series of statistics carried hack year by year as far as data are avail­
able. Statistics from virtually all statistical agencies of the Federal Gov­
ernment are represented and data are included from many private sources.
Technical Services.—The report on statistical activities made by the
National Bureau of Economic Research for the Commission on Organization
of the Executive Branch of the Government (Hoover Commission) recom­
mended “That the Census Bureau be designated the service agency for pri­
mary collection and tabulation of repetitive data not requiring highly special­
ized knowledge of subject matter, and that the Census field offices be used
to the fullest extent possible by other agencies, in order to achieve greater
centralization in collection than now prevails.”
This recommendation reflected recognition of the fact that significant
progress had been made in the Bureau in the development and use of efficient
survey methods, in the development of a trained field organization that
might serve also as a nucleus for expanded activities, and in the development
of a specialized technical and administrative organization competent in the
technique of collecting and compiling statistics. Practical evidence of those
advances is to be found in the technical services rendered by the Bureau
during the past year.
The staff of the Bureau continued its extensive work on designing samples,
formulating questionnaires, studying errors of response and improving the
efficiency of clerical operations. Geographic concepts for presenting sta­
tistics have been developed and improved. In addition to the standard met­
ropolitan areas mentioned above, the closely built-up areas around the large
cities have been determined for use in the 1950 censuses of population and
housing. As the result of extensive work with basic maps and aerial photo­
graphs, data relating to unincorporated areas and of census tracts will be
considerably more extensive in the next census.
The work performed by the Bureau’s machine tabulation organization was
the equivalent of handling 1 billion punch cards. Work continued on an
electronic computing system being developed and built for the Bureau that
will speed up tabulation and computation many times. The National Bureau
of Standards has cooperated with the Bureau of the Census in this develop­
The field organization was engaged in the 1947 Census of Manufactures,
the 1948 Census of Business, in the testing for the 1950 Census of Population,
Agriculture, and Housing, in addition to its participation in the regular cur­
rent work of the Bureau.




As of the end of the fiscal year, 9,157 employees were engaged on the
work of the Census Bureau. Of these, 2,323 were employed for general
administration, current census statistics and age and citizenship certification.
The staff was supplemented by 6,609 employees, largely temporary, for the
Census of Manufactures, Census of Business and the Seventeenth Decennial
Census. Work for other agencies and trust fund work provided for 225
employees on June 30.
Civil Aeronautics Administration
Fiscal 1949 was a year of activity and challenge for the Civil Aeronautics
Administration. It was a year of particular importance and activity in the
technical phases of civil aviation, reflected in all programs of the CAA.
Significant developments were made in connection with the long-range
master plan of all-weather air navigation and traffic control known as the
RTCA (Radio Technical Commission for Aeronautics) Special Committee
Report No. 31. This plan, adopted by all agencies in the United States
concerned with this aspect of aviation, has become the guide for future
development and construction of airways designed to serve civil and military
needs in peace or in war. Because of the great importance of the program
and the need for its implementation at an early date, the CAA undertook to
build as rapidly as possible the approximately 400 very high frequency
omni-directional radio ranges (VOR) necessary to blanket the United States.
By the end of the fiscal year, 162 of these ranges had been commissioned and
140 were operating on a test basis.
The Office of Federal Airways, at the year’s end, had completed approxi­
mately 59 percent of its program for converting the 60,000-mile airways
system to VHF (very high frequency).
As a part of the CAA effort to achieve widespread understanding of the
aims of the RTCA program, four major exhibits were prepared by the Office
of Aviation Information to illustrate these new devices and plans—one was
shown at the opening of New York International Airport, two at the CAA
experimental station in Indianapolis, and one at the Eighteenth International
Aeronautical Salon in Paris. Many high officials and key aviation personnel
from all parts of the world received their first real knowledge of these new
developments through such exhibits.
Safety Programs

Toward improvement in the problem of safe landing of aircraft at airports,
15 instrument landing systems (ILS) were commissioned during the year,
making a total of 87 such installations in operation in the continental United
States on June 30. A new system of guiding planes to the landing strip, the
Slope Line Approach Lighting System, was developed by CAA and adopted
as the United States standard.
New patterns and procedures were developed for handling with greater
safety and efficiency aircraft traffic at airports, both in the air and on the
ground, which have led not only to greater safety, but also to a reduction of
complaints regarding the noise nuisance near airports.
The Office of Aviation Safety, as an important step in accident prevention,
put into operation a system of daily reporting by air carriers of operational
difficulties. These reports reach CAA within 24 hours, and within another
24 hours are in the hands of all air carrier operators. By the end of the



third day everyone in the United States directly concerned with operating or
manufacturing aircraft has information upon which corrective action can
be taken. Plans are being pushed to extend this procedure to nonscheduled
The CAA experimental station at Indianapolis gave particular attention
and study to fire hazards during the year. The results of a number of studies
and tests providing the latest technical data for the prevention of fire in
aircraft are distributed to aircraft operators, manufacturers, and Government
agencies each month.
New procedures, including a system of continuing checks, were developed
which promised to provide accurate, up-to-date aircraft records and statistics
in the future.
Prom otional Programs

As part of the CAA program to promote civil aviation in general, the use
of aircraft for industrial and agricultural purposes was stressed during the
year by CAA Aviation Safety agents working with operators in the field.
The CAA issued 3,000 waivers for such operations as dusting, spraying, seed­
ing, and fertilizing by air during the year. The CAA and the Department
of Agriculture cooperated to a great extent in developing regulations govern­
ing these activities. A new booklet entitled “Industrial Flying” was issued
by the CAA which outlines many new uses of the airplane in agriculture and
Excellent progress was made on the Federal aid airport program in fiscal
1949. By June 30, 1949, the end of the third fiscal year of the 7-year pro­
gram, the Administrator of Civil Aeronautics had made tentative allocations
for work at 965 airports amounting to $103,774,079, which in turn will be
matched by sponsors’ contributions in the amount of $109,178,105, making a
total program under way of $212,952,184. As of the same date, the Ad­
ministrator had approved grants amounting to $83,834,935 in Federal funds,
covering 830 projects, for work at 664 locations. Under the Federal Aid Air­
port Act, annual appropriations amounting in the aggregate to $520,000,000
can be made to the Administrator over a period of 7 fiscal years.
Internationally, CAA influence grew rapidly and aided materially in the
adoption of world-wide standards upon which uniformity in flying aids and
policies is being built. Through special missions, participation, and leader­
ship in international conferences and indoctrination of hundreds of impor­
tant aviation officials visiting from many foreign governments, the knowGdge
and experience of CAA’s veterans in all branches of the industry were shared.
One important result has been the continued success of United States repre­
sentatives in having United States standards, methods, and equipment adopted
as world standards, to the benefit of American aviation.
Other Programs

The continued expansion of international air transportation was reflected
in the certification of 4 new United States flag air carriers, bringing the total
to 24 as of June 1, 1949, and in the issuance of operations specifications to 5
new foreign flag air carriers, bringing the total in this category to 31.
The CAA operated a fleet of 144 aircraft up to September 30, 1948, when
the active fleet was reduced to 85. During the year the CAA, for its official
purposes, flew a total of 56,016 hours, of which 29,229 hours were flown in



CAA-owned aircraft and 26,787 hours in aircraft rented from private or com­
mercial operators.
During the year, the Office of the General Counsel received 2,768 reports
of violations from CAA regional attorneys which, added to the 1,398 viola­
tion reports carried over from the previous year, made a total of 4,166 en­
forcement cases to be handled during the year. There was a decrease in
violation cases received of 20 percent from the preceding fiscal year when
there were 3,473. The violations, while fewer in number, were of a more
serious nature, as 464 airman certificates were revoked in fiscal 1949 as com­
pared with 205 the year before.
The air education program continued to grow during the year, with CAA
educational advisors assisting the aviation education programs in 48 States,
the District of Columbia, and the Territory of Alaska. There were 18,794
loans of films on various aviation subjects for 36,271 showings to an audience
totaling 1,271,306, which represents an increase in loans of approximately
27 percent over the previous year.
Many demonstration, indoctrination, and test flights of airplanes equipped
with the cross-wind landing gear were made during the year to American
and foreign civilian and military personnel and the public.
Basic research on the development of an objective flight check for the Air­
line Transport Pilot Rating was completed, and results to date indicate that
the objective flight check is not only practical but highly reliable.
At the CAA-operated Washington National Airport activity increased
steadily during the year. Scheduled air-line passengers reached a new high
of 1,310,922, an increase of 159,469 over the preceding year, and plane
arrivals and departures increased during the year by 16,054 to a total of
169,206. High-intensity lights were installed at the airport during fiscal
The CAA continued in its effort to air-mark the country adequately. By
the end of the fiscal year 1,232 markers had been installed, making a total of
4,358 markers completed in 47 States since June 30,1946.
Organizational D evelopm ents

A reorganization of CAA was accomplished during the year, having as its
purpose “the streamlining through the grouping of like activities so as to
achieve maximum unity of direction and fixed responsibility.” The Office of
Aviation Development, charged with promoting civil aviation, particularly
in the fields of aviation education, the training of foreign nationals, encour­
agement of private flying, the marking of air routes, and the general promo­
tion of the use of civil aviation, was activated on June 1.
The increasingly important commitments of the United States Government
in sharing its technical knowledge abroad, in servicing and inspecting United
States flag carrier operations overseas, and in servicing foreign air carriers
flying into United States territory necessitate the successful execution of CAA
international and overseas policies and programs. To this end, an inter­
national region was organized during the year under which many of the world­
wide CAA operations have been brought together. The new region will have
responsibility for activities under Public Law 647 which authorizes United
States aid to foreign countries in operating air navigation facilities; under
the International Civil Aviation Organization’s program for joint support
of facilities required in international air commerce; for CAA missions in
8 6 6 1 7 4 — 50 -




foreign countries; and for operating certificates of United States flag carriers
on major international routes.
United States Coast and Geodetic Survey
The Coast and Geodetic Survey performs a wide variety of essential serv­
ices for the advancement of marine, aviation, commercial, and industrial
interests of the country. It surveys and charts the coastal waters of the
United States and its possessions; provides a framework of geodetic control
in the interior of the country to be used as starting points for mapping and
engineering construction; collects and publishes data on tides and currents;
compiles and publishes aeronautical charts for civil and military aviation;
makes observations of the earth’s magnetism; and investigates earthquake
activities and their destructive effects. The Bureau is primarily a field
organization administered from Washington where the basic field data are
processed and the results made available to the governmental agencies and
to the public in the form of maps, charts, and technical publications.
H ydrography and Topography

During the year, 17 ships and several shore-based parties were engaged on
survey operations along the Atlantic, Gulf, and Pacific coasts of the United
States and in Alaska, collecting basic data for the compilation and revision
of the nautical chart. Surveys in Alaska were accelerated in view of the
strategic importance of the area. Much of the work is in isolated regions,
and each field party must operate as an expedition.
Aerial photographs were taken in Alaska and of numerous coastal areas
in the continental United States. Topographic maps are compiled from
aerial photographs by photogrammetric methods and used in the compilation
and revision of nautical and aeronautical charts. These photographs provide
a wealth of detail for mapping and other engineering purposes.
Surveys were completed for 137 airports in the United States for use in the
production and maintenance of the aeronautical instrument approach and
landing charts. The information was used in the compilation of airport
obstruction plans for the benefit of the aviation industry and for administra­
tive use by the Civil Aeronautics Administration. Obstruction plans for 301
airports are now available.
Geodesy, Tides, and M agnetism

The basic geodetic network of horizontal and vertical control was extended
in a number of States and in western Alaska. Requests for control surveys
from civil agencies far exceeded the allotment made available for this work,
and only those projects of the highest priority could be undertaken. One
of the major activities during the past year was the continuation of triangu­
lation and leveling surveys in the Missouri River Basin for studies in con­
nection with flood control and reclamation projects.
Continuous tidal observations were made at 132 seaports in the United
States and possessions and in foreign areas for the study of the variation in
mean sea level and for tide prediction. A comprehensive current survey of
Tampa Bay, Fla., was begun. Tidal current charts were published for
Delaware Bay and River, giving the direction and velocity of the current
for each hour of the tidal cycle. As part of the oceanographic work of the
Bureau, observations of temperature and density of sea water were taken at
97 tide stations in the United States and in foreign countries.



The magnetic survey of the United States was continued for the purpose
of determining the geographic distribution of important magnetic elements
for use on nautical and aeronautical charts and for use by land surveyors
engaged in retracing old property lines. Continuous photographic records
of the changes in the principal magnetic elements were obtained at seven
magnetic observatories operated by the Bureau. Work was continued on
collecting and computing data for the compilation of the world isogonic
Seism ology

In the work of earthquake investigation, 71 seismograph stations were
operated in the seismic areas of the United States and in South and Central
America, 15 of which were maintained in collaboration with universities and
scientific institutions. During the year, 185 earthquakes were located in
the United States, the most important of which was the Puget Sound earth­
quake on April 13, 1949. For further use of data collected, the Bureau
assisted in the formation of an earthquake engineering research institute in
California, organized to conduct investigations in the undeveloped fields of
structural dynamics and aseismic design.
The development of the system for warning the Hawaiian Islands of an
impending seismic sea wave was considerably advanced during the past year.
This is a joint undertaking of the Coast and Geodetic Survey with the Na­
tional Military Establishment and other agencies. Five seismic sea wave
detectors were installed in the Pacific area and in Alaska as part of the 18
wave-reporting stations to he established in the system. In addition, visiblerecording seismographs were installed at 3 magnetic observatories as an
essential part of the system.
Nautical and Aeronautical Charts

To meet the varying needs of the navigator, upward of 900 different
nautical charts, ranging from large-scale harbor charts to small-scale sailing
charts, have been available. Nearly a million charts were printed during
the year, requiring approximately 8 million hand corrections for essential
information to bring the charts to date of issue. The program of charting
the Gulf Intracoastal Waterway, from Carrabelle, Fla., to the Mexican border,
was half completed at the end of the year, bringing the total published charts
of this important waterway to 15. A new Loran general chart was published
to meet the needs of the large fishing fleet operating out of Boston and
Gloucester. Seven new charts were printed of sections along the Atlantic and
Pacific coasts and of Alaska.
To meet the needs of civil and military aviation, the Bureau has provided
several series of aeronautical charts, totaling 905 different charts in all.
A new series of radio facility charts, to provide coverage on a large and uni­
form scale, was published to replace the former series. Several new charts
were developed in cooperation with the Civil Aeronautics Administration to
simplify air traffic control problems at major air terminals and for use with
new navigational facilities. Sixteen million aeronautical charts, of which
over 9 million were airport and radio facility charts, were printed during the
year. Maintenance of all aeronautical charts is an important part of this
activity. A constant flow of information must go to aviators regarding
changes in aids to navigation and in other vital aeronautical data affecting,
our airways. Flight checking is necessary to maintain charts in a current
condition. Public safety requires the use of up to date and reliable charts.



Technical Im provem ents and Cooperation

A number of improvements were made during the year in instruments and
techniques that will result in higher accuracy and greater efficiency in the
work of the Coast and Geodetic Survey. Electronic methods are being in­
creasingly used in hydrographic operations for measuring distances. A new
model of the electronic position indicator, designed in the Bureau, was tested
under service conditions, and a maximum range of 290 nautical miles was
recorded in the Gulf of Mexico. In the field of earthquake investigation, a
method was developed for calibrating galvanometric seismographs^ by im­
posing a wide range of frequencies on the seismometer pendulum. New type
unifilar suspensions for strong-motion accelerographs were installed in all
equipment on the west coast to insure more accurate recording of destructive
The Bureau participated for the ninth consecutive year in the cooperation
with the American Republics program sponsored by the Department of State.
During the year, 18 training grants in Coast and Geodetic Survey methods
were awarded to representatives from 7 countries. Five technical missions
of the Bureau visited 11 countries and rendered advice on planning and
operation of broad programs of surveying and mapping and geophysical in­
Under the Philippine rehabilitation program, authorized by the Seventyninth Congress, the Bureau maintained a staff of experts in the Philippines to
assist in field survey operations and to train selected groups of Filipinos.
Two groups, of 10 trainees each, also received instruction and training in
survey methods in the United States.
The Bureau cooperated with various Federal agencies and with a number of
foreign governments in furnishing basic data and expert technical advice for
the prosecution of specialized projects. Nine base pendulum stations for de­
termination of gravity were established and additional gravity meter observa­
tions were made in six countries of South America. The establishment of
the photogrammetric test area by the Bureau near McClure, Ohio, for im­
proving the accuracy and reliability of nine-lens photographs, is being used
for various studies by many Federal mapping agencies, research organiza­
tions, universities, and photogrammetric companies. The assistance which
can be rendered to science, engineering, and industry is being increasingly
recognized. Normal functions of the Bureau play an important part in the
protection of life and property at sea and in the air. Its activities are fur­
ther aimed to meet the public needs involved in large peacetime projects
for the multiple use of waters in our main river basins and for acceleration
of the national mapping program.



Bureau of Foreign and Domestic Commerce

As the crest of the postwar boom was reached and passed, the Office of
Business Economics was confronted with the problem of determining the
nature and extent of adjustments resulting from divergent trends in the
emerging peacetime economy.
By channeling its regular flow of material on business indicators, gross
national product, national income, and the balance of international payments
toward a searching appraisal of the business situation, OBE provided the
business world and Government agencies with basic data for the measure­
ment of economic activity at a time when important forces in the economy
were receding from their inflationary peaks. During the period covered by
this report, the monthly Survey of Current Business published by OBE
showed that the economy as a whole continued to operate at a very high level.
Business use of the analyses and statistics published monthly increased
with the return of more competitive conditions in most areas. Subscriptions
to the Survey of Current Business reached the highest point in the last
decade. Many of the statistical series carried in earlier years only on an
annual basis are now firmly established on a quarterly schedule. This prac­
tice reflects a successful effort to meet the needs of business concerns and
trade journals, their economists and advisers, for timely and meaningful
presentation of the economic indicators developed in the OBE. Included
in this category are the national income and gross national product figures ;
the balance of international payments; surveys of business intentions to
invest in new plant and equipment; and data on the size of the business
population—with the rate of establishment and discontinuance. On a more
frequent basis of reporting are such other vital business facts as retail sales,
persona! income and its source, business inventories, dividend payments,
and new orders.
Balance o f International P aym ents

The impact of international monetary difficulties, and the problems attend­
ant thereto, on the domestic economy was measured in the balance of inter­
national payments—a basic tool for analyzing the United States position in
world trade which OBE has maintained since 1922. In addition to the
current data published quarterly, a detailed record for recent years was
issued as a bulletin entitled “The Balance of International Payments of the
United States, 1946-48.” Therein OBE presented the facts as to the amounts
the United States contributed to and received from other nations during the
postwar period of rehabilitation and reconstruction. The bulletin covers
current-account transactions—merchandise trade, transportation, travel, in­
come on investments, private and governmental services, the various foreignaid programs—as well as capital movements and the exchange of gold, and
furnishes an appraisal and analysis of international operations in those
Developments abroad made the regular OBE data on the size and scope of
United States Government international programs of continuing value. In
this field the quarterly and supplementary reports provided these facts on a
timely schedule. As the central collecting and compiling unit for reports
on all operations of the United States Government abroad, the OBE compiles
and makes regularly available data on United States Government cash trans­
actions, procurement activities, rehabilitation commitments, foreign instal­
lations, and surplus property disposal.



Current Business Statistics

In the 1949 statistical supplement to the Survey of Current Business, pub­
lished this past year, the OBE provided business more than 2,600 series of
commercial and governmental statistics, incorporating the most recent addi­
tions and revisions available up to the date of publication. The organization
of this supplement lends itself to quick and efficient research, with explana­
tory notes providing complete descriptions and explanations of the data
covered in the monthly issues of the Survey of Current Business (many of
which are available on an even more timely basis through their appearance
in the weekly supplements to that magazine). With this arrangement the
statistical supplement is a basic tool for the businessman, economist, and
statistician engaging in current analysis or research in business and related
economic problems.
Detailed coverage of the national income statistics, inaugurated with the
July 1947 National Income Supplement, was continued with the preparation
of data through 1948, published in the July 1949 Survey of Current Business.
This issue when used with the previously published supplement, provides a
complete and detailed record of the national income and product statistics
back to 1929.
While furnishing all businesses with valid economic data, OBE has also
contributed to meeting special requirements of small business for essential
information. In the past year it has published a detailed report on the
capital requirements of small business and an analysis of sales and inven­
tory trends of new trade firms.
During the year OBE published the first article on professional incomes
since 1943—Income of Lawyers, 1929-48. It brings up to date the informa­
tion on lawyers’ incomes published heretofore. New information on the
incomes of lawyers, physicians, and dentists, as well as of other independent
professional groups, will be published as rapidly as possible.
O ther Activities

The OBE has continued to serve other Government agencies and the Con­
gress through provision of special economic materials and analyses flowing
from its basic functions. New agencies, such as the National Security Re­
sources Board and the Economic Cooperation Administration, have continued
to draw upon OBE for guidance in their developing stages and have effected
working arrangements for the utilization of OBE material necessary to their
The success of OBE in providing a unified statistical picture of the
national economy, through the national income and product accounts and
such related series as those on the balance of payments, has attracted wide
attention abroad. Economic research officials from many countries have
come as in-service trainees, under an interdepartmental program for interna­
tional sharing of technical knowledge, to study the methods developed in
this Office. More than a dozen visitors from as many foreign capitals were
receiving such training in OBE in the latter half of 1949.

With the return of reasonably normal competitive conditions, the Office
of Domestic Commerce during the fiscal year oriented its program further
toward the promotion of commerce and industry.
Amplified services to business included special studies, reports, articles
and periodic releases. Special attention was devoted to the development of



new products and the broadening of small business participation in Govern­
ment procurement. Mail inquiries averaged over 6,500 each month in addi­
tion to thousands of telephone calls and personal visits.
The Office also continued its activities on interdepartmental and inter­
agency committees and expanded its services to business groups. Represent­
atives of the Office made many contacts with trade associations and trade
groups to discuss general economic questions and find practical solutions
to specific business problems.
Services to the Congress of the United States continued with the prepara­
tion of studies, reports and testimony for the use of congressional commit­
tees. These included publication of a report entitled “Potential Traffic on
the St. Lawrence Seaway.” Activities of the several divisions of the Office
are outlined here in more detail.
Area D evelopm ent Division

During fiscal 1949 the Area Development Division of the Office of Do­
mestic Commerce extended its technical service program to Federal, State,
local, and nongovernmental agencies and organizations.
Major activities included the provision of technical staff assistance for the
Department’s responsibilities on the Federal Inter-Agency River Basin
The Division performed staff work for the committee in coordinating inter­
agency programs for the development of water resources for navigation,
flood control, reclamation, power, water supply, and other purposes. Liai­
son responsibilities were continued in connection with the Department’s
membership on the Missouri Basin Inter-Agency Committee, with representa­
tives of administrative agencies and the Governors of Missouri, Montana,
Nebraska, North Dakota, and South Dakota, and on the Columbia Basin
Inter-Agency Committee, with representatives of Federal agencies and the
Governors of Idaho, Montana, Oregon, and Washington.
The Division serviced many inquiries from business firms, agencies, and
individuals requesting data and research pertinent to economic and indus­
trial development of communities and larger areas and provided technical
consultation assistance for many State and local economic councils, cham­
bers of commerce, and development boards.
For the third successive year the Division sponsored a week-long seminar
for State planning and development agencies. Fifty-odd representatives of
some 30 State agencies discussed with Federal officials problems of economic
and industrial research, housing, public works, foreign trade, and Govern­
ment procurement.
An amplified publication program included releases of periodic bulletins
on Federal area development projects and programs; Regional and State
Income Analysis; Missouri Basin Example, and State Data Sheets on
Economic Trends.
Construction Division

During the fiscal year 1949, the Construction Division handled many spe­
cial assignments and carried on its regular compilation of statistics on con­
struction and construction materials which were published with economic
interpretations in the monthly Industry Report.
Special estimates of construction under assumed mobilization conditions
were prepared for the National Security Resources Board.



The work of promoting the development and acceptance of a national build­
ing code in cooperation with the National Bureau of Standards took a long
step forward through the formation of a Joint Committee on Unification of
Building Codes, which included representatives of public and private agencies.
At the request of industry, the Division assumed responsibility for revising
and expanding Technical Bulletin No. 6 (The Uniform Plumbing Code for
Housing) of the Housing and Home Finance Agency. This work which was
nearing completion at the close of the year, contains regulations for all types
of plumbing installations—industrial, commercial, as well as housing, and
was to be printed as the Report of the Uniform Plumbing Code Committee.
M arketing Division

During the fiscal year the Marketing Division placed greater emphasis on
the promotion of the more efficient and effective distribution of goods and
services, and the development and adoption of distribution cost reduction
programs and techniques.
As a part of this effort a new program was undertaken to provide informa­
tion on new product opportunities and stimulate product development and
improvement. A major publication, Developing and Selling New Products,
Was released, and the first of a new series of bulletins on A Source of New
Product Possibilities for Manufacturers, was issued. A special feature of the
latter was a list of patents available for licensing or sale.
The Division continued to collect and analyze wholesale and retail trade
data on distribution costs, the selection and measurement of markets, the use
of market data in effective selling programs, the promotion of better selling
practices, operating methods and management policies, the estimation of
initial capital requirements, and the summarization of standard operating
The publication of State and county data on the number of establishments,
employment, and pay rolls was continued. Other publications released dur­
ing the year included a field study of How Manufacturers Reduce Their Dis­
tribution Costs, and Record Keeping for Retail Stores.
Industry Divisions

The industry divisions continued and expanded their activities in serving
business through the collection and dissemination of data on production,
sales, economic conditions, potential markets, and other salient statistics.
Over 3,500 mail inquiries were handled a month, in addition to a large number
of personal visits and telephone calls. In addition, replies, tabulations, and
analyses were prepared in response to numerous inquiries from Members of
Congress and congressional committees.
Two special studies and tabulations requested and financed by industry:
the twenty-first annual survey of the confectionery industry, and the twentieth
annual report on salad dressing, mayonnaise, and related products; were
Publication of nine periodic industry reports, available on a subscription
basis, was continued. One new periodic report: Containers and Packaging,
was added. In addition the divisions published a large number of special
reports for use by business, and numerous reading lists of important sources
of information on special commodities.
The industry divisions also took an important part in the development of
statistical material and reports for: the Office of Industry Cooperation, the



Munitions Board, National Security Resources Board, Economic Coopera­
tion Administration, Council of Economic Advisors, State Department, and
other Government agencies, for use in the development of mobilization plans,
stock-piling policy, voluntary domestic distribution, and mandatory export
controls. Active participation was continued on numerous standing and
interdepartmental committees.
Industry division activities in connection with domestic and export distribu­
tion controls decreased substantially. Work on the voluntary agreements
program was practically completed by June 30, 1949. The industry divi­
sions continued to be active in connection with export controls and particularly
in helping to determine when supply-demand conditions warranted relaxation
of such controls. Controls over antimony were revoked on March 30, 1949,
and nitrogenous fertilizer material controls were discontinued after June 30.
The general export priority authority was not used during the year and lapsed
on June 30, 1949. After the end of the fiscal year domestic controls existed
only on tin and rubber. However, all allocation, use, inventory, and import
controls on tin were removed on December 1, leaving only reporting require­
ments in effect. Rubber policy continued to be governed by the delegated
responsibility to provide for the maintenance of an adequate syntheticrubber-producing industry.
Sm all Business Division

At the beginning of the fiscal year a Small Business Division was organ­
ized as a part of the Office of Domestic Commerce to carry out on a modified
scale the essential parts of the assistance program of the former Office of
Small Business.
A major activity of the Division was the Government procurement pro­
gram, designed to secure for smaller business enterprises the greatest pos­
sible opportunities to compete for Federal Government purchases. As a part
of this program a revised and enlarged Government Procurement Manual
was published and issued to the Department of Commerce field offices, coop­
erating offices and public interest groups. Extensive publicity was given to
the fact that these agencies had the manual available.
The program of redistribution of published materials through the coop­
eration of trade and professional associations, veterans’ organizations, bu­
reaus of business research, large manufacturers, wholesalers, and public
interest groups was continued.
Twenty additional small business aids were issued. One new booklet
entitled, “Establishing and Operating a Letter Shop,” was prepared. In
addition, the booklet entitled “Establishing and Operating a Dry Cleaning
Business” was revised and brought up to date.
A second edition of The Small Business Index with a cross reference to all
Department of Commerce publications was prepared. A series of pamphlets
on finance and taxation was also published. This series included: Financial
Considerations in the Establishment of a New Small Business, Hazards of
Competition in Credit Terms, How to Apply for a Business Loan, Business
Life Insurance, Sole Proprietorship Life Insurance, Partnership Life Insur­
ance, and Corporation Life Insurance,-the titles of which are descriptive of
the subject matter. A policy statement on A Sound Depreciation Policy for
Small Business was submitted to the Secretary of the Treasury.
The Extension Service program continued at Indiana University and the
Universities of Michigan and Texas and assistance was given a number of



other universities in connection with individual small business educational
and research projects. Three reports were published covering small business
conferences held at Bard College, the University of Chicago, and the Uni­
versity of Michigan.
Trade Association Division

During the fiscal year, the Trade Association Division continued its activi­
ties in stimulating the greater use of associations in achieving closer govern­
ment-business relations and its program of developing the following major
objectives: Find which organizations are active—they now exist in 4,000
cities and towns—ascertain their program of activities, so that Department
of Commerce facilities can be more and more used by their members; en­
deavor to increase their efficiency, in their research and expansion programs,
by issuing periodic directories and booklets describing the work of repre­
sentative associations whose services are most public-spirited in character.
During the year the Division completed the most extensive survey ever
made of cooperative organizations in this country: the 700-page National
Associations of the United States—now in press. This handbook and direc­
tory was supplemented by several booklets on current association activities,
one of which outlined 75 types of services of businessmen’s groups. Quar­
terly reports continued to be issued on coming conventions and industrial
Preliminary steps were taken for a survey of local organizations of busi­
nessmen in 4,000 cities, to carry on through the coming year.
Close contact was also maintained with such semifederated organizations
as the American Trade Association Executives, Chamber of Commerce of
the United States, National Association of Manufacturers, National Indus­
trial Council, American Chamber of Commerce Executives, and the National
Industrial Conference Board.
Transportation Division

The Transportation Division continued its program of appraising and
evaluating all types of transportation from the standpoint of their adequacy
in meeting the needs of commerce. Various recommendations were made
concerning improvements in facilities, practices, rates, services, and policies.
Information was furnished to a wide variety of users, including shippers,
carriers, trade associations, security brokers, universities, State planning
groups, and other Government agencies. The Division also assisted in for­
mulating the Department’s position to be advanced in the Air Coordinating
Committee and in various National Security Resources Board task groups
studying mobilization planning.
Testimony was prepared for use before congressional committees and
many Members of Congress were furnished information on a large number
of transportation questions during the year, including material on the St.
Lawrence Seaway, and at the request of the Senate Committee on Foreign
Relations, publication of a report entitled “Potential Traffic on the St.
Lawrence Seaway.” The Division also furnished considerable material and
advice to various subcommittees of the Senate Interstate and Foreign Com­
merce Committee investigating domestic transportaion.
Various reports were prepared for or in cooperation with other Govern­
ment agencies. These included papers for the Air Coordinating Commit­
tee and for the Port Utilization Group of the National Security Resources



Board. Division members assisted in the preparation of reports by NSRB
mobilization planning task groups on rail transport, pipe lines, and street
and highway transport, and served on the NSRB sea transport task groups
dealing with organization, tankers, and dry cargo vessels and on a number oi
Air Coordinating Committee working groups on mobilization planning.
The Division released during the year two transportation reports of
special significance—An Evaluation of Motortruck Transportation and
Petroleum Transportation. A considerable number of universities have
adopted the motortruck report as a basic textbook.

During the fiscal year 1949, United States foreign trade was characterized
by the continued surplus of exports over imports which has dominated the
postwar international trade picture. While the volume of world exports,
excluding shipments from the United States, has been rising slowly, it is not
in itself a cure for the world trade imbalance because much of the world is
still dependent upon the United States for many supplies not attainable else­
where. The essence of the problem, therefore, is in the gap between our
own export and import trade. This problem of the “dollar gap^ was a major
concern in 1949 in carrying out the responsibility of the Oil to provide
information and other services which facilitate the expansion and balanced
growth of international trade. Efforts were made to meet this problem in all
practicable ways, particularly by emphasizing the promotion of imports so
that other countries could earn more dollars through increased exports^ to
the United States, promoting greater foreign travel of United States tourists
as well as businessmen, and encouraging investment of private capital in
sound foreign enterprises.
OIT’s basic and well-established functions and services continued to prove
useful, being readily adapted to meet current needs. Briefly summarized,
the following activities were carried on in 1949:

Through publications, correspondence, individual contacts, and group
meetings, as well as through the offices of the Field Service, an informational
service was provided to the business community and other interested citizens
and to other governmental agencies. This service covered analyses of
economic situations and trade trends as well as a wide variety of factual infor­
mation pertaining to foreign trade. Such information related to sources of
supply for United States imports and market possibilities for United States
exports; to transportation and insurance problems; to specific trade oppor­
tunities ; to actions of foreign governments affecting trade, such as changes in
export and import duties, exchange controls, export and import controls, taxes,
etc., and to foreign industrial developments and investment opportunities.
More specific services were also provided, such as supplying information
about individual concerns engaged in foreign trade here and abroad; facili­
tating the settlement of international trade complaints and disputes between
buyers and sellers; and initiating action to protect United States businessmen
against discriminatory or otherwise inequitable application of foreign laws
and regulations.



In cooperation with other agencies, particularly ECA and the State Depart­
ment, OIT assisted in eliminating or reducing travel barriers, increasing and
improving travel facilities, and encouraging private and governmental travel
promotional work. OIT also cooperated with a number of private firms and
state and municipal organizations in their undertaking of individual industry
and general international trade fairs.

OIT represented the interest of United States commerce and industry to
the end that the views and needs of business were properly considered in the
formulation of our foreign trade and general foreign economic policies and
in the Government’s participation in international agencies. OIT initiated
or reviewed foreign economic policy recommendations and presented the
departmental point of view under the general guidance of the Assistant Secre­
tary for Foreign and Domestic Commerce. Policy items on which recom­
mendations were formulated and presented included International Bank for
Reconstruction and Development, Export-Import Bank and International
Monetary Fund matters, Food and Agriculture Organization proposals, mat­
ters before the Economic and Social Council of the United Nations, trade
relation problems with Germany and Japan, economic problems of the Middle
East, European economic integration, and Latin American and Canadian trade
problems. OIT personnel participated in the work of the United Nations
economic agencies and served as members or advisors of United States dele­
gations to other international agencies or conferences.

OIT serves as the connecting link between the United States Foreign Service
and the United States business community. OIT is consulted on matters of
personnel management and general administration of the Foreign Service; it
also issues reporting instructions and assists in the training of Foreign Service
personnel. During the year, OIT provided leaders or participants for a
number of missions abroad. Two OIT staff members surveyed the operations
of 16 missions and consulates throughout the Middle East, emphasizing possi­
bilities and techniques of promoting United States imports from the countries
involved. A number of OIT personnel participated in special missions to
Germany and Japan on trade and related problems. The Office also furnished
one of the principal members of the Abbink Mission to study economic
development opportunities in Brazil.

OIT personnel played a large and important part in the preparation for and
negotiation of reciprocal trade agreements with 10 countries not previously
signatories to the General Agreement on Tariffs and Trade. Thirty-two
countries, whose total trade represents more than four-fifths of total world
trade, now adhere to the liberal trade policies and practices embodied in the
agreement. With the assistance of trade advisory groups and the cooperation
of the Bureau of Customs of the Treasury Department, appreciable progress
was made along administrative lines in reducing delays, uncertainties, and
unnecessarily irksome formalities which hamper the carrying through of
import transactions. Considerable work was also done with the Treasury



Department and other interested agencies in the preparation of a legislative
program of customs administrative improvement for consideration at the
second session of the Eighty-first Congress. In cooperation with ECA, a com­
prehensive and detailed survey was undertaken of the potentialities and prob­
lems involved in increasing imports from ECA-participating countries.
OIT participated extensively in the discharge of the Department’s respon­
sibility for carrying out the President’s “Point Four” program to further world
economic development. Considerable work was done in the preparation of
background material and proposed legislation to authorize a broad-scale
technical-assistance program and to authorize Governmental guarantee of
private foreign investment against noncommercial risks. A proposed service-to-business program to insure maximum participation of private business
in foreign economic development was also designed to be undertaken as a
part of the “Point Four” program.
The long-established program for extending the use of foreign trade zones in
the development of our import and reexport trade received considerable
impetus by the establishment of two new zones, in Los Angeles and in Seattle,
making five altogether in the United States. A sixth zone, to be established
in San Antonio, Tex., primarily for air and rail imports, was also under
active study and consideration.

The administration of export controls continued as a major OIT respon­
sibility. However, the nature of the program and the work involved therein
changed markedly from the preceding year. Previously, the major emphasis
had been on protecting the domestic economy from the effects of an undue
drain on important commodities. By the end of the fiscal year, export control
activity was primarily concerned with screening and limiting shipments of a
relatively small number of commodities for reasons of foreign policy and
national security. After thorough consideration by the Congress, authority
for export controls was extended until June 30, 1951, with specific authority
being provided in the new law—Export Control Act of 1949—to meet these
latter objectives as well as to regulate, to the extent necessary, goods still
in short supply.

Im provem ent o f Supply

Economic developments during the fiscal year 1949 brought most materials
and products into ample domestic supply. The improvement stemmed mainly
from the record levels of domestic production and the reduction of effective
foreign demand caused by dollar shortages. During this period, therefore,
it was possible to remove or at least relax export controls for many materials.
This was done by substantial reductions in the so-called Positive List—com­
modities controlled to all destinations—or by the establishment of increased
export quotas or of open-end quotas allowing relatively free licensing of
exports, but enabling an advance check on quantity and destination.

Security Considerations

The decline of the importance of supply reasons for export controls was
accompanied by developments during the year in our foreign relations which
required that increasing attention be given to export controls for security
reasons. Three areas of the world were mainly involved in this respect—



Eastern Europe, the Far East, and Germany. Administration of these con­
trols was a complex and difficult task and considerable assistance and advice
were furnished by an interdepartmental committee comprised of representa­
tives from the State, Defense, Interior, and Agriculture Departments, the ECA,
and the Atomic Energy Commission. Policies and procedures had to be made
sufficiently flexible to balance four major objectives: (1) To maintain strict
controls over shipments of materials having potential military significance;
(2) to promote an adequate flow of essential commodities to the United States;
(3) to minimize interference with East-West trade, essential to European re­
covery; and (4) to support United States foreign policy.
Adm inistrative D evelopm ents

Special effort was made to expedite the issuance of licenses in order to
minimize interference with trade and to permit exporters to retain their
markets insofar as consistent with national security. The burden upon the
exporter was further eased by the addition of large numbers of commodities
to the list of those which are neither strategic nor in short supply and are
therefore permitted to move freely to ail areas without license. By the end
of fiscal year 1949, this list had been expanded to include over half of all the
Census Bureau’s Schedule B classifications of all commodities in foreign trade.
Substantial changes were also made in export control enforcement.
Earlier, regulations for enforcement purposes and other compliance measures
had been minimized as a part of the general decontrol policy instituted at the
end of the war. However, with the increased concern for foreign policy and
national security considerations in export licensing, it became necessary again
to promulgate and enforce more stringent controls.
Since June 1948, when the strengthened enforcement program was author­
ized and appropriated for by the Congress, a substantially complete regulatory
system has been put into effect. During the year an enforcement staff was
recruited and trained. A number of new regulations on license trafficking,
advertising, diversion of licensed shipments, and other improper practices
was promulgated and put into effect. In addition, new regulations were
issued to establish the authority and responsibility of all exporters’ agents,
including freight forwarders, in their handling and clearing through customs
of licensed goods. The security of the customs vessel clearance procedure
was further improved by revising the shipper’s export declaration by adopt­
ing it as an export-control document, and by requiring an extra copy for use
in checking goods just before loading. A separate license, printed on safety
paper, is now used in lieu of the old system of validating the exporter s appli­
cation. This document is prepared by export-control personnel, typed in a
distinctive type face, and validated by means of forgeryproof authentication
equipment. The use by the customs collectors of a similar machine-type
validation of the shipper’s export declaration has also been instituted.
In the field of foreign compliance, detailed instructions were dispatched
to the Foreign Service with respect to the handling of export-control enforce­
ment problems and arrangements were made to use ECA staffs in Europe and
United States embassy personnel at all posts in spot checking violations and
in reporting and investigating specific irregularities.

As in previous years the Field Service was the principal medium through
which the output of the several units of the Bureau of Foreign and Domestic



Commerce and the Bureau of the Census was made available to business
interests on a local basis.
The promotion of trade at home and abroad continued to be the primaryresponsibility of the 42 field offices located in important commercial and
industrial centers throughout the United States. In the field of foreign trade
the administration of the Export Control Act and the dissemination of infor­
mation on the many changes made in import and exchange controls abroad
occupied a prominent place in the field program. Likewise, there was con­
siderable interest in doing business under the Marshall Plan and as the result
of close cooperation between the Department of Commerce and the Economic
Cooperation Administration, the field offices played an important part in
assisting American firms to participate in business made possible by ECA
grants and loans. Special attention was given to imports and foreign travel
in an effort to relieve dollar shortages which were having a depressing effect
on our export trade.
An important development in the domestic field was the release of data
compiled by the Bureau of the Census on the census of manufactures. After
a lapse of about 10 years, these basic data were again made available thus
placing the field offices in a position to provide a greatly improved service to
businessmen faced with the problem of finding new markets and improving
their areas of distribution.
The publication by the Office of Business Economics and the Office of
Domestic Commerce of new and expanded economic indicators and indus­
trial reports was of real value in the service rendered to business by the field
offices. Seventeen additional chambers of commerce were brought within
our Cooperative Office program, thus providing improved service in these
Patent Office
Condition o f W ork


The management consultant firm engaged to survey the Patent Examining
Operation transmitted its findings and recommendations to the Commis­
sioner in a series of reports ending on December 22, 1948, at the conclusion
of the 6 months’ project. The recommendations offered a program of action
to effect increased productivity of the examining operation as the primary
means to solve the problem of backlog. Some measures essential to attain­
ing this objective were put into operation, as follows: 5 new patent examining
groups were established to strengthen the organizational structure for super­
vision; a Selection Board for Professional Personnel was created with respon­
sibility for evaluating the technical and administrative competence of em­
ployee candidates for selection to fill executive positions in the professional
service; a manual was prepared to provide examiners with an official refer­
ence work on practice and procedure within the Patent Office relating to their
duties and operations; the use of office type recording equipment was extended
to facilitate the preparation of actions by examiners; new record keeping
forms and methods v/ere introduced in examining divisions as an antecedent
to large-scale realignment of art; a “model” examining division was set up
to ascertain the influence of space, light, lay-out, and other physical factors
in the working environment upon examiner productivity; and certain
changes in practice were adopted to accelerate the disposal of applications.
Operations during the year accomplished the disposal of 76,298 applica­



tions, the largest number in over a decade, and yielded a net reduction of
8,909 in the number of applications awaiting action by the examiner and
2,402 in the total number of pending cases. This was the first year to close
since 1943 with the case load balance in favor of the Office.
The patent issue for the year numbered 34,815, including design patents,
an increase of 41.4 percent over fiscal year 1948, and was the largest issue
in 6 years. On June 30, 1949, 241,963 applications for patents, including
11,925 design patent applications, were on hand, of which 61 percent were
awaiting actions by examiners.
P atent Classification

Continued revision of classes 171, Electricity, Generation, and 172, Elec­
tricity, Motive Power, and revision of the relay modulation art of class 179,
Telephony, resulted in the establishment of two new classes, together involv­
ing 2,997 original and 4,922 cross-referenced patents. The new classes are
321, Electricity, Conversion Systems, comprising 70 subclasses, and 322,
Modulators, comprising 68 subclasses. In addition 207 subclasses contain­
ing 21,824 original patents and 44,830 cross-references were abolished and
707 new' subclasses, comprising 21,445 original and 27,872 cross-references,
were established in existing classes. Miscellaneous original patents num­
bering 4,380 and 1,045 cross-references w'ere transferred betw'een various
existing classes and 4,122 new cross-references w'ere made and placed in
appropriate classes to facilitate searching.
Written decisions relative to requirements for division were made in
respect to 2,024 cases. Disposition was made of 1,187 cases w'ithout written
decisions. Decisions relative to assignments of applications for examination
when the propriety of original assignments was contested by 2 or more pri­
mary examiners were written in 809 cases; and 8,458 oral decisions, satisfac­
tory to the examiners involved, were given. In addition to the foregoing
9,645 oral decisions, 3,478 interviews were accorded examiners and attorneys
regarding matters of classification and fields of search. Responses to letters
of inquiry as to proper fields of search and other matters of classification
numbered 2,274 and 1,072 orders from industry for patent lists, involving
38,116 sheets, w'ere filled.
The classification of patents issued during the year w'as checked and 39,465
cross-references of such patents w'ere made.
Twenty classification orders, authorizing changes in classification and
transfers of classes among existing divisions, and 73 classification bulletins,
71 of which contained rewritten definitions of patent classes, were prepared
and published.

Trade-mark applications on hand June 30, 1949, including 1,424 applica­
tions for republication under section 12 (c) of the 1946 act and 417 applica­
tions for renewal, totaled 29,725, of which 3,400 w'ere pending under the
acts of 1905 and 1920. There were 10,386 fewer cases in the Office than a
year previously, operations during the interim having accomplished a 25.8percent reduction in backlog.
Applications filed during the year numbered 30,746 of which 20,141 were
new applications for registration. While these receipts w'ere greater than
in any year preceding the enactment of the trade-mark law of 1946, they
amounted to only 41 percent of the preceding year’s volume. Most of this
drop was attributed to a decline from 29,212 to 4,225, in the number of
applications for republication under section 12 (c).



There were 15,185 marks published during the year, while 14,453 registra­
tions were issued, the largest number in any year since 1927. Of the total
issue, 3,310 were issued under the act of 1905, 197 under the act of 1920,
and 10,946 under the act of 1946. Marks registered under the 1946 act
comprised 9,512 on the principal register and 1,434 on the supplemental
register. Included in these figures are 142 service marks, 16 certification
marks, and 16 collective marks.
Revision of the classification of registered marks continued and proposals
were formulated to establish additional classes of service marks and to divide
class 6, chemicals, medicines, and pharmaceutical preparations, into three
separate classes.
Many of the administrative problems resulting from the large number of
applications filed under the act of 1946 were disposed of and applications
for renewal and republication under section 12 (c) are now being acted upon
within approximately 2 months after filing. Lack of authoritative guides,
however, continued to impose an additional burden in the examination of
applications for registration and adversely affected the time required for their
disposal. There were, for example, no decisions by the Court of Customs
and Patent Appeals concerning the registerability of marks under the act of
1946. However, there was an increasing number of decisions of the Com­
missioner which were of material aid in formulating policy with respect to

The revision of the rules of practice, initiated April 3, 1946, with the
appointment of a Committee on Revision of the Rules and Procedure, was
completed and the new rules became operative March 1, 1949. Within the
fiscal year, the committee conducted public hearings (September 27-30,
1948) and invited the submission of written briefs or statements to afford
interested persons the occasion to put their views, comments, and suggestions
formally before it for consideration in rewriting the proposed draft of the
rules, which had been widely distributed among the patent law profession
and others in June 1948. The revised Rules of Practice in Patent Cases, as
adopted, were printed in the Federal Register and upon publication in pam­
phlet form a copy was sent to each registered patent attorney and agent. A
revised edition of Patent Laws, in which text and arrangement of content
conforms generally with title 35 of the United States Code, was also published
and distributed.
Several new Patent Office publications were prepared and issued. The
Guide for Patent Draftsmen was prepared to offer information and illustra­
tive material helpful to draftsmen in meeting the various requirements of
the Patent Office relating to the preparation of drawings for submission in
patent applications. An extract of the Official Roster of Attorneys and Agents
Registered to Practice Before the United States Patent Office as of January
1, 1949, was published in pamphlet form under the same title.
Three issues of replacement sheets for the Manual of Classification were
published and distributed to subscribers in order to keep that publication
current and to incorporate graphic changes improving its readability.
The project undertaken June 1, 1948, to perfect the collection of classified
patent copies maintained in the public search room continued throughout the
year. Approximately 200 patent classes, comprising over 56,000 bundles of
copies, including both originals and cross-references, were checked for mu­
tilated, misplaced, and missing copies and necessary corrections made. This
8 6 6 1 7 4 — SO-------4



work will continue until the entire collection of nearly 100,000 bundles has
been examined.
Under a new practice, an applicant is enabled to conduct proceedings with
a single examining division in instances where his application contains claims
per se classifiable in several divisions which are not divisible inter se or from
the claims that govern classification. The division assigned each such case
is responsible for taking all actions therein but may, however, refer the
application for a report as to patentability of designated claims to other divi­
sions which may be concerned.
Procedures were instituted to insure that an applicant is promptly notified
of the receipt of any of his drawings in damaged or mutilated condition.
Such notice formerly was not given until the first action by the examiner,
the resultant delay often working a hardship on the applicant.
A new function was undertaken to enable applicants to obtain the publi­
cation of abstracts of disclosures in their pending applications. Express
abandonment of such applications and public availability of their contents are
conditions thereto. The publications may be used as references against
applications in which they are applicable and are incorporated in the classi­
fication and reference files for search purposes.
All persons who regularly order copies of patents by mail were enabled to
obtain speedier service. The improvement in service is predicated upon the
combined use of regular Patent Office coupons and of a customer number, in
lieu of name and address, which is assigned to the purchaser on request.
The Committee on Enrollment conducted registration proceedings, in­
cluding examinations, which resulted in the admission of attorneys and agents
to practice before the Patent Office.
The volume of public sales of patent and trade-mark printed copies in­
creased 15 percent over the previous year, yielding a gain in net receipts for
this activity of §126,970.95. The demand for photostatic work, on the other
hand, showed a marked decline.
The Register of Patents Available for Licensing or Sale on June 30, 1949,
comprised over 40,000 patents, it having more than doubled within the fiscal
year. Most of this increase was contributed by 3 major United States in­
dustries, which made over 15,000 of their patents available. In addition, a
large group of foreign-owned United States patents was listed on the register.
Several brochures were prepared from the register each containing a listing
of patents in specific fields.
L E G IS L A T IO N , E IG H T Y -F IR S T C O N G R E S S , 1 S T S E S S IO N

A number of bills relating to patent matters were introduced in both
Houses of Congress but none of them directly affecting the administration of
the patent and trade-mark laws by the Patent Office was enacted in the first
session of the Eighty-first Congress. Public Law 72, approved May 24, 1949,
amended title 28 of the United States Code, and contains several corrections
to sections relating to patent matters in the courts.

The staff of the Patent Office was increased during the year from 2,005 to
2,010 employees. Notwithstanding this slight net growth, it was necessary
to employ over 350 persons to maintain the authorized force which, as estab­
lished in the budget plan in accordance with the appropriation for 1949,
was set at 2,020 positions and 2,000 man-years of employment. Actual
employment for the year totaled 1,998 man-years.



As in the preceding fiscal year, a shift in personnel was made to the Pat­
ent Examining Operation with a corresponding reduction in the number of
personnel employed in the administrative and other nonexamining services.
On June 30, 1949, there were 858 examining assistants, including classifica­
tion examiners, an increase of 60 in this category during the year.
N a tio n a l Bureau of S ta n d a rd s
The National Bureau of Standards is the principal agency of the Federal
Government for fundamental research in physics, mathematics, chemistry,
and engineering, it has custody of the national standards of physical meas­
urement, in terms of which all working standards in research laboratories
and industry are calibrated, and carries on necessary research leading to
improvement in such standards and measurement methods. In addition to
its general responsibility for basic research, the Bureau undertakes specific
research and development programs, develops improved methods for testing
materials and equipment, determines physical constants and properties of
materials, tests and calibrates standard measuring apparatus and reference
standards, develops specifications for Federal purchasing, and serves the
Government and the scientific institutions of the Nation in an advisory
capacity on matters relating to the physical sciences.
The broad scope of the work carried on during the year may be classified
under 5 headings: (1) Testing, calibration, and standard samples; (2) codes
and specifications; (3) commodity standards; (4) cooperative and consult­
ing services; and (5) research and development. In almost every case, each
of the divisions and sections of the Bureau was engaged to some extent in all
of these types of work during the past year. The work in physics, mathe­
matics, chemistry, and engineering was performed in 13 divisions: Electricity
and optics, metrology, heat and power, atomic and molecular physics, chem­
istry, mechanics, organic and fibrous materials, metallurgy, mineral products,
building technology, applied mathematics, electronics, and radio propaga­
tion. One division was responsible for the work in commodity standards.
In addition, 4 divisions (budget and management, personnel, plant, and
shops) were concerned with internal administrative, maintenance, and service
Testing, Calibration, and Standard Sam ples

Over 380,000 tests and calibrations, having a total fee value of more than
$1,300,000, were performed for other Government agencies and the public.
In addition, about 20,500 standard samples were sold by the Bureau. The
total fee value of all the tests, calibrations, and standard samples was approxi­
mately $1,395,500, an increase of more than 45 percent over the preceding
year. Of this total, $229,700 was collected and deposited in the Treasury
for services to the public. The value of these services to Government agen­
cies, for which no fees were collected, was approximately $1,165,700, repre­
senting an increase of almost 52 percent over the preceding year.
The range of activities included the testing of about 5,500 light bulbs
(a sampling of over 4,000,000 purchased by the Government this year), the
testing and certification of over 2,000 radium preparations sold in this coun­
try, measurement of the radon content of about 700 breath samples from
persons working with radium and radium-luminous paint, and the sample­
testing of about 7,000,000 barrels of cement.



Codes, Specifications, and C om m odity Standards

The results of a large part of the research and testing have a direct bearing
on the development of technical requirements designed to assure safe work­
ing and living conditions. The Bureau provides a central source of informa­
tion to which Federal, State, and municipal authorities, as well as industrial
and trade associations, can turn when dealing with problems of safety or with
building and plumbing codes. In addition to direct assistance extended to
these groups on technical problems, significant results were obtained in the
development of new building, plumbing, and safety codes.
Through formulation of Simplified Practice Recommendations for sizes
and varieties of manufactured products, the Bureau aids industry in the
development of voluntary programs for the elimination of waste. It also
cooperates with organizations of manufacturers, distributors, and consumers
in the development of voluntary Commercial Standards, which encourage
fair competition through the standardization of methods for testing, rating,
certification, and labeling of commodities. A total of 28 such standards—12 Simplified Practice Recommendations and 16 Commodity Standards—
were issued during the fiscal year.
Cooperative and Consulting Services

The Bureau is called upon to provide technical and advisory services to
every agency of the Federal Government and many State and municipal
governments. An example of this service is the development and establish­
ment of Federal Specifications, which are necessary for economy in Fed­
eral purchasing. The Bureau also cooperates extensively with technical
groups, in both this country and abroad, on problems of concern to the Gov­
ernment and the Nation, particularly those relating to the determination and
establishment of scientific quantities and standards.
During the fiscal year 1949, services of an advisory or consulting nature
were rendered to almost every agency of the Federal Government as well as
representatives of State and local governments, to industrial groups, and to
universities. Typical problems included the solution of shock wave equations
for the Navy’s Bureau of Ordnance, tests and inspections in connection with
the proposed remodeling of the White House, problems of heating and air
conditioning in Government buildings, inspection of warehouse roofs for the
Army, study of the Texas City ammonium nitrate explosion, re-treating and
reconditioning of shoes for the Office of the Quartermaster General, a study
of materials for water vapor barriers in buildings, preservation of battle
monuments, and failure of aircraft parts.
The Bureau was also active in hundreds of technical committees, societies,
associations, and commissions organized to bring new advances of science
into the technology of industry, to standardize materials and products for
greater economy and improved quality, and to establish uniform scientific
standards throughout the world. An example is the Bureau’s participation
in the American Society for Testing Materials. Of the 64 technical com­
mittees of this society, the Bureau is represented on 58, with a total member­
ship of over 100. The Bureau also has membership on more than 120 com­
mittees of the American Standards Association and is the managing agency
for several ASA projects.

Research and D evelopm ent

A tomic Clock.—A large part of the research and development work of
the Bureau was directly concerned with basic scientific standards and meas­



urements. Thus, in an effort to place the primary standards of frequency
and time on an absolute basis related in some way to the fundamental, un­
changing properties of matter, the Bureau developed an atomic clock con­
trolled by the constant frequency of the vibration of atoms in the ammonia
molecule. Invariant with age and independent of astronomical observations,
the new clock promises to surpass by one or two orders of magnitude the
accuracy of the present primary standard, the rotating earth. Besides pro­
viding an important tool for research and development in every branch of
science and technology where precise measurements of time and frequency
are needed, the principle of the atomic clock should be of great utility in
radio-frequency allocation work, in the Bureau’s around-the-clock broad­
casts of time and frequency signals for the armed services and industrial
users, in astronomical observations, in long-range navigation and communi­
cation systems, in precise surveying, in military mapmaking, and in such
electronic systems as radio filters, microwave relay networks, and radar.
P roton M oment.—Also concerned with basic measurement was the
determination of the magnetic moment of the proton. This was the first
precise determination of the proton moment in absolute units; all previous
measurements approaching this precision had been made in terms of the
relative values of other physical constants. When combined with other data,
the Bureau’s work also gave a precise absolute value for the electron’s chargeto-mass ratio, e/m. Another result is to provide a simple, convenient sec­
ondary standard for measuring the absolute value of magnetic fields. In
the past, laboratory measurements involving both magnetic and electric fields
have been limited by the low accuracy of the magnetic measurements. Now
the magnetic fields can be measured with even greater accuracy than electric
fields. This will be especially useful in the development of scientific and
industrial apparatus employing magnetic fields.
Radioactive S tandards.—-For safe and effective utilization of radioactive
isotopes in medical treatment, scientific research, and industry, standards of
commonly used isotopes and reliable methods for measuring their radiations
must be available. As a part of this program, a method of calibrating
standard samples of radioactive iodine and radioactive phosphorus was de­
vised. Calibrated samples of radioactive carbon 14—important in biochemi­
cal investigations—soon will be available for distribution, while prelimi­
nary work on the establishment of other radioactive standards is in progress.
S crew-Thread S tandards.—On November 18, 1948, delegates and repre­
sentatives from Government and industry of Canada, the United Kingdom,
and the United States met at the National Bureau of Standards to sign an
accord on unification of the American and British standard system of screw
threads. The Bureau had been active in this field for some 40 years, both in
the development of standards and test methods and in basic research. This
accord formally established the unification represented in revised publica­
tions of the interdepartmental Screw Thread Committee of the United States
of America and of the British Standards institution, the Canadian Standards
Association, and the American Standards Association. These documents
fulfill all requirements for general interchangeability of threaded products
made in the three Nations. Not only is the accord of major significance in
expanding and facilitating commerce between the cooperating countries, but
it also is an important step toward the further development of unifying stand­
ards in other fields of engineering practice.
S tandards and M easurement W ork.—Standards and measurement work
included development of a method for the frequent recalibration of the na­



tional standard of resistance in terms of the dimensions of a mutual inductor,
completion of new equipment for measurement of audio-frequency voltage
with an accuracy approaching one part in 10,000, development of an im­
proved magnetic permeameter for absolute measurement of magnetizing
forces up to 300 oersteds, determination of the index of refraction of natural
rubber, development of a new calibration system for the speed markings of
camera lenses, development of an instrument for testing photographic lenses
used in aerial mapping, improvement of techniques for measuring impedance
with slotted coaxial lines, development of field-intensity standards for veryhigh-frequency radio waves, improvement of quartz-crystal frequency stand­
ards and associated monitoring equipment, design of an electro-dynamic
radio-frequency ammeter to serve as a primary standard, and development
of a very sensitive microwave instrument to measure and record the dielectric
constant of matter.
A eronautics.—As in previous years, much work was done in the general
field of aeronautics. For example, a vacuum-tube accelerometer for use in
aircraft and biochemical research was developed. This instrument has been
used extensively by the Bureau in tests of model aircraft structures and by the
Air Force to determine human tolerances in ejection seat research. Another
instrument of importance to aviation is the Bureau’s sky compass, based
on investigations made by the late Dr. A. H. Pfund of Johns Hopkins Uni­
versity. In the past, aerial navigation in the polar regions has been handi­
capped because of the long twilight periods when neither the sun nor the stars
can be used as direction references. As the earth’s magnetic field is mainly
vertical at these latitudes, the magnetic compass also loses its value. The sky
compass, however, operates on a different principle, determining the direction
of the sun by analysis of the polarized light it sends out.
The highly flammable dopes used on airplane fabrics have caused much
loss of life and property by fire. During the year, coatings were developed
for fabric-covered aircraft which approximately double the time interval
between ignition of the fabric and its destruction by fire. These results pro­
vide a basis for more effective extinguishment of fires in flight, particularly
those arising from power plants in small craft. Among other activities of
interest to aviation were the development of very large optical elements for
use in supersonic wind tunnels; determination and compilation of the thermal
properties of wind-tunnel and jet-engine gases; development of a telemetering
unit for studies of parachute design; and studies of the strength of structural
elements used in aircraft, the vibration on model airplanes due to landing im­
pact, the nature of airflow at the surface of an airfoil, damping screens for
smoother airflow in wind tunnels, air turbulence at supersonic speeds, methods
for supplying oxygen to the pilot during high-altitude flight, high-temperature ceramic coatings to protect metals and alloys used in jet engines, jet
engines and jet fuels, corrosion of aluminum and magnesium alloys, failure
of aircraft metal parts in service, and the effect of chromium plating in re­
ducing the fatigue limit of aircraft steels.
H igh P olymers.—In recent years, rapid progress has been made in the
theoretical science of high polymers, and new techniques have been developed
for measuring their properties and studying their reactions. Many of the
new techniques are being employed at the Bureau to obtain a better under­
standing of the fundamental properties of high polymers and are leading to
more adequate methods and equipment for developing and evaluating com­
mercial products made of plastics, rubbers, textiles, leather, and paper.



During the past year, for example, information obtained in studies of the
shape and size of the large polymeric molecules was utilized in the develop­
ment of a method for impregnating sole leather with rubber. The new proc­
ess improves wear by as much as 50 percent, greatly increases water resist­
ance, and conserves leather and tanning materials, making it possible to
use portions of the hide not normally suitable for soles.
M ethod for Microsectioning.—Closely related to the fundamental study
of high polymers was the development of a rapid, practical method of pre­
paring extremely thin sections of organic materials for study either with the
optical or the electron microscope. This technique is now being applied at
the Bureau to the microsectioning of rayon and other fibrous materials. Be­
cause of the very slight penetrating power of the electron beam in commer­
cial electron microscopes, specimen structure is difficult to interpret when
sections are over a fraction of a micron in thickness. Yet the techniques that
were previously available for preparing thin sections are quite elaborate and
difficult, requiring expensive equipment and producing few usable sections.
The Bureau’s simple and efficient sectioning procedure should be of decided
advantage in such fields as cancer and virus research as well as the physical
P roperties of S oaps.—Also dealing with the microstructure of materials
was an investigation of the characteristics of various types of soaps. Soaps
and other cleansing agents have been in use for centuries, but there have been
no widely accepted methods for determining their cleansing power. The
Bureau applied some of the newer scientific techniques to the problem, mak­
ing electron-microscope and X-ray diffraction studies of soap crystals. For
each type of soap molecule, characteristic features were revealed that can
be used for its identification and analysis. The information obtained in this
way offers an explanation of the mechanical process of cleansing and suggests
a basis for evaluating the cleansing power of the different kinds of soaps.
Jet E ngines and F uels .—Several major programs, each encompassing a
large number of specific projects, are continued from year to year. The
continuing programs in radioactivity standards, aeronautical research, and
high polymers have already been discussed. Another field receiving justi­
fied emphasis throughout the year is that of jet engines and fuels. The
advent of gas turbines and jet engines as practical power plants has given
rise to urgent needs for research in new fields of chemistry and physics, and
the extension of the methods of older fields to higher temperatures, pressures,
and velocities. In addition to production of new synthetic hydrocarbons for
use in jet fuels, important contributions were made to the solution of prob­
lems concerned with combustion, control of fuel supply, and the measure­
ment of temperature, composition, and thermal properties of exhaust gases.
While this work was carried on at the request of the military services, the
results possess great utility for civilian applications of gas turbines.
Electronics.—Also important both to the Nation’s peacetime economy
and the armed forces is the Bureau’s program in electronics. New and
highly specialized types of electronic circuits and devices are being developed
to meet the particular requirements of industry and national defense. One
of the projects in this field is concerned with printed electronic circuits, in
which printed wiring, resistors, and coils replace the conventional wires and
independent elements common in electronic devices. Work on the develop­
ment and application of printed circuit techniques was continued during the
year as a part of a general program of electronic miniaturization.



Another project is concerned with rugged electron tubes—indispensable
wherever electronic equipment is used under severe conditions of vibration,
shock, or acceleration. Because of the importance of reliable tubes of this
type in civilian as well as military use, a comprehensive tube-ruggedization
program was initiated. A laboratory was installed containing a variety of
vibration and impact equipment, and suitable test procedures were evolved
for testing tubes under vibration conditions and for examining mechanical
resonance effects.
In addition to working out adequate test methods, the Bureau is developing
new kinds of rugged tubes. The design of these tubes is based on an analysis
of the ways in which ordinary tubes fail under test or in service. A detailed
knowledge of operating conditions and tube failures is thus a useful guide
to the design of tubes that will be strong enough to operate properly under
severe mechanical abuse. Other important phases of the electronics pro­
gram include investigations of the fundamental behavior of cathodes and
gases in electron tubes; development of electron tubes for special purposes;
electronic instrumentation for remote indication of steam turbine clearances
and temperatures; development of devices for the automatic counting of
unfit currency; and the design and construction of equipment for telemeter­
ing functional data from a descending parachute to a remote ground station.
S emiconductors.—At present, one of the most active fields of research
in physics is the study of the semiconductors. This field was greatly stim­
ulated by the wartime development of crystal diodes, which wrere extensively
used in radar and have numerous applications in electronic components. A
laboratory has been set up at the Bureau for the investigation of three specific
topics relating to semiconductors. One is the determination of the properties
of a semiconductor in the region -where electrical conduction changes from
electron-type to hole-type. Another study is concerned with the measure­
ment of the Hall effect, in which equipotential lines within a conductor are
skewed by the presence of a magnetic field. Apparatus is being assembled to
study the properties of titanium dioxide, which has considerable promise for
use in circuit elements involving semiconductors. The third investigation
deals -with lattice defects in ionic crystals and semiconductors. These defects
have a great influence on conduction properties, and a knowledge of the num­
ber of such defects is essential to a complete understanding of the conduction
E lectronic Computers.-—An extensive program on electronic computers
has been undertaken in cooperation with the Office of Naval Research, the
Bureau of the Census, the Department of the Army, and the Department of
the Air Force. This program involves the research, design, and development
W'ork necessary to produce electronic machines that will perform upon instruc­
tion, predetermined sequences of calculation running into the thousands of
operations without the intervention of human operators. The result will be
the solution in a few hours of complex problems in atomic physics, ballistics,
and aerodynamics which cannot now be solved except by simplifying assump­
tions and thousands of man-days of work. The rapidity with which numeri­
cal data can be handled, classified, and analyzed will also be correspondingly
Because of the complexity of the projected computing machines, their con­
struction must necessarily be a long-range project. The Bureau therefore
undertook the building of a smaller-scale computer that will be capable of
solving many of the less-complicated problems that continually arise in



scientific work. At the close of the year this project had progressed through
the preliminary design and layout stages. The new high-speed machine will
perform a substantial part of the computation work of the Bureau’s labora­
tories, solving many problems until recently considered impossible of solu­
tion. It will also aid in computing machine development at the Bureau and
will provide important training and operational experience for personnel of
those Federal agencies that plan to operate the more complex electronic com­
puters as soon as they are completed. Progress has also been made in the
design of a modest-scale electronic computer to be located at the Bureau’s
Institute of Numerical Analysis in Los Angeles. This project, supported
by the Air Matériel Command, was undertaken to meet the urgent computa­
tional needs of the aircraft industry and Government missile research and test­
ing centers on the west coast.
R adio P ropagation.-—All uses of radio, particularly over long distances,
require a radio prediction service analogous to the weather service. This
service is provided by the Bureau on the basis of its own ionospheric obser­
vations and research. To further the work in radio propagation, compre­
hensive programs are being carried on in radio physics and related geo­
physical phenomena of the upper atmosphere and troposphere. In addition,
primary standards and measurement methods are under development for
electrical quantities at all radio frequencies. Important problems in this
field still remain unsolved; and, as a result of the tremendous postwar exten­
sion of the available frequency range, new problems are constantly arising
in measurement, instrumentation, standards, and calibration services. Mi­
crowave standards of frequency, power, attenuation, dielectric, and other
electric quantities for frequencies up to 100,000 cycles or more have been
intensely developed since the war. Studies are also under way on microwave
propagation, and measurements of cosmic and solar radio noise at very high
frequencies have begun.
B uilding T echnology.—Another major continuing program at the Bu­
reau involves a unified approach to the problems of the construction industry.
The work is so organized that groups are simultaneously engaged in investi­
gations of properties of materials; structural strength; fire resistance; acous­
tics and sound insulation; heating, ventilating, and air conditioning; dura­
bility; exclusion of moisture; building and electrical equipment; and other
related projects. Attention is focused on methods of saving materials, on
the use of less expensive and more readily available materials wherever
feasible, and on the development of more economical designs based on infor­
mation concerning the properties of materials which was not known a decade
ago. Engineering principles are being applied to the design of houses, pro­
viding a complete and logical method for determining allowable loads for
walls, floors, and roofs. This, in turn, makes it practicable to develop struc­
tural designs and to make use of nonconventional building materials that pro­
vide sufficient strength but require a minimum amount of material and labor.
Among projects completed during the year in the general field of building
technology were those on properties of concretes containing commercial and
experimental types of lightweight aggregates; fire resistance of -walls of
lightweight-aggregate masonry units; fire hazards and draft characteristics
of masonry chimneys; temperatures in a test bungalow heated by baseboard
convectors; and the design, construction, and calibration of apparatus for
measuring the thermal conductivities of composite constructions and of re­
fractory materials. Subjects of other investigations initiated or continued



include weathering of masonry; application of nondestructive dynamic tests
to studies of materials; elastic and strength properties of concretes under
dynamic loads; factors affecting the resistance of reinforced concrete beams
to failure by diagonal tension; ignition temperatures of solids; effectiveness
of flame-retardant chemicals and coatings; susceptibility of materials to
spontaneous heating; intensity and duration of fires in ship staterooms;
equipment for detecting and extinguishing fires; bituminous vapor barrier
materials; weathering of asphalt coatings containing powdered mineral
fillers; air filters; heating and cooling equipment for aircraft; and thermal
conductance of solids, liquids, and building constructions.
Corrosion S tudies.—Corrosion of metals is responsible for a large annual
financial loss to the Nation, estimated at over $200,000,000 annually. Studies
of the mechanism of corrosion and means for its prevention have continued
at the Bureau for over 20 years with emphasis on two corrosion-producing
environments: marine atmosphere and the soil. During the past year, the
Bureau’s field tests of pipe corrosion in varied locations throughout the
United States were continued, and reports are now in preparation giving the
results of 14 years’ exposure of pipe sections made of iron, steel, copper and
copper alloys, lead and zinc. Because of the time required to obtain data
on corrosion and corrosion protection in field tests, efforts are being made
to develop laboratory test procedures and equipment which will provide
reliable information on the progress of corrosion in a relatively short time.
The work on the corrosion of aluminum alloys in marine atmosphere,
sponsored by the Navy Bureau of Aeronautics, the Air Force, and the Na­
tional Advisory Committee for Aeronautics, has been instrumental in the
development of modern high-strength, corrosion-resistant, lightweight alloys
for aircraft use. More recently, the knowledge thus gained of corrosion
problems of lightweight metals has been of value in their housing applica­
tions. During the year, exposure of 303 panels was completed and exposure
of 157 new panels begun, including samples of a new construction material
composed of a honeymomb core of aluminum foil, impregnated paper, and
cotton fabric, all coated with aluminum. Other corrosion studies in prog­
ress include determination of the relative merits of aluminum alloys, alumi­
nized steel, Monel metal, galvanized steel, and zinc alloy sheets for use on
housing exteriors; development and standardization of salt-spray testing
equipment; and continuation of tests to determine the life expectancy of
pipe materials in service lines of the Bureau.
L ow-Temperature R esearch .—A program of research on the properties
of matter at extremely low temperatures was begun and brought well under
way. At the temperature of liquid helium, metals such as lead and tin,
ordinarily poor conductors of electricity, become superconductors with a
complete loss of electrical resistance. The Bureau is now making studies
seeking a more complete explanation of this and other low-temperature
phenomena. Included in the program is an investigation of the extraordi­
nary properties of helium II near absolute zero, which seem to constitute a
fourth state of matter. In helium II, the form of helium existing at very
low temperatures, heat is transmitted as a kind of wave motion analogous
to sound and known as “second sound.” Second sound has recently been
obtained at the Bureau through use of liquid helium produced in a new
helium liquefier, and studies are being made of various aspects of secondsound propagation in helium II. Several quantities, including the velocity
and attenuation of second sound, result directly from the data obtained.
Various types of coupling with ordinary sound are also under investigation.



Studies of superconductivity now under way comprise several different
lines of investigation. For example, the effect of current density on the
transition of a conductor from the superconducting to the normal state has
been determined. Other investigations during the year dealt with the be­
havior of superconductors at microwave frequencies. A third problem in­
vestigated was the interaction between a magnetic field and the surface cur­
rents it sets up in a superconductor. This work gives information on the
forces acting between the superconducting electrons and the atomic structure
of the metal. The results of the experiments on superconductivity and sec­
ond sound, when interpreted theoretically, should lead to a clearer picture
of the liquid and solid states of matter.
The projects described above represent only a small part of the Bureau’s
work during the year, suggestive of its nature and scope. Thus, to note but
one phase untouched in this report, a considerable portion of the Bureau’s
effort was devoted to projects sponsored by the National Defense Establish­
ment, the Atomic Energy Commission, and the National Advisory Commit­
tee for Aeronautics. Ordnance electronics and guided missiles are typical
projects, but details on these and other similar programs are necessarily
Weather Bureau
Tornadoes in the Middle West and Southwest during the spring months,
hurricanes in Florida and the Gulf States in September, and blizzards in the
northern Plains States in January are rather normal meteorological occur­
rences, but during 1948-49 the frequency and severity of these storms broke
records in many districts. In Oklahoma and northern Texas there were
three times as many tornadoes as normal, the maximum number for one
locality being six in the vicinity of Amarillo, Tex. In Nebraska, Kansas,
and parts of adjoining States snowfall was so heavy and blizzard winds so
severe that rail transportation was tied up at some points for weeks, and the
Air Force and Corps of Engineers were called upon to carry emergency
supplies to isolated communities. In Florida, although no records were
broken, two severe hurricanes crossed the State during September-October
1948. That loss of life and damage to property were kept to a minimum is
a testimonial to the improvement of the hurricane warning services of the
Weather Bureau in recent years and evidence of its present effectiveness.
During the past year the Bureau gave special attention to research and de­
velopment designed to increase the accuracy and scope of weather reports
and forecasts in other phases of its meteorological services to the public.
Many of these development projects were carried on in close cooperation with
the research departments of universities and with the meteorological facilities
of the Air Force, Navy, and Signal Corps. Of special interest but still un­
known value is the research project financed largely by the armed services
and carried on at the Institute for Advanced Study at Princeton where com­
bined efforts are being made to develop mathematical techniques for predic­
tion of weather. The project is based upon plans that would eventually
utilize the electronics computor for work that is much too extensive and timeconsuming to be solved in any other known manner. The results of this
research are being watched with much interest. It has long been the opinion
of many meteorologists that the future progress of meteorology depends upon
development of mathematical methods for analysis of the causes and life
cycles of weather phenomena.



The first phase of the thunderstorm research project, begun in 1945, was
nearing termination as the fiscal year closed. Detailed analysis of the re­
sults was scheduled for early completion and the final report was to be pub­
lished promptly. It is evident that new devices for measuring significant ele­
ments in the formation of thunderstorms must be developed before much fur­
ther progress can be made in identifying the factors which lead to severe
turbulence and other storm conditions hazardous to aircraft. At the close of
the fiscal year, plans for the next phase of severe storm research were being
completed. This project is closely related to basic research in other weather
conditions of importance to aviation and the general public. The research
in cloud physics, for example, deals with phenomena in the atmosphere which
are not well understood at present and which have to do not only with de­
velopment of severe thunderstorms but also with plans for artificial production
of rain and other forms of “weather control,” about which much has appeared
in the press during the past year. The best meteorological evidence is that
the practical usefulness of these artificial methods is limited to certain in­
frequent situations. These research subjects all come within the provisions
of Public Law 657, Eightieth Congress, which emphasizes the importance of
research and development in the meteorology of severe storms.
Other special activities of the Bureau during the past year included a
further improvement in the system of weather reports from the Far North
in cooperation with the meteorological service of the Canadian Government.
These reports are essential for the weather map of the Northern Hemisphere
and furnish the first information of development of cold air masses in the
Arctic which lead to blizzards and cold waves in the United States. The
Bureau’s cooperation in the rehabilitation of the Philippine Meteorological
Service continued through the year and it is expected that by spring 1950,
as scheduled, the Philippine service will again be prepared to continue with­
out assistance of Weather Bureau personnel.
In the field of international cooperation, it is noteworthy also that the
Bureau’s work in training meteorologists in Latin-American Republics and its
collaboration in world-wide development of meteorological services through
the International Meteorological Organization are important factors in the
improvement of meteorological services in the United States because the
services are so greatly dependent upon exchange of weather information with
other countries. The International Meteorological Organization continued
its plans for adoption of the Convention which will establish the World
Meteorological Organization. At the close of the year, 18 of the 30 ratifica­
tions required for adoption had been attained. Further plans were made
for affiliation of the organization with the United Nations under UNESCO.
The regular services of the Weather Bureau operated essentially as de­
scribed in the annual report for the previous fiscal year except that it was
necessary to close 12 field stations of the Bureau because the increase in
operating expenses incident to rising costs could not be met under current
appropriations. A survey of regional administration led to the conclusion
that regions 3 (Kansas City) and 5 (Chicago) could be consolidated at Kansas
City without serious loss in administrative coverage and efficiency and with
some reduction in administrative costs. This consolidation had been almost
completed at the close of the fiscal year.
During the year the Bureau operated 387 regular service field offices.
Nineteen of these were general forecasting centers, 22 of them served as
domestic aviation forecasting centers, 12 as international aviation forecast­



ing centers, and 26 as flight advisory centers. The number of field offices
designated for special hurricane services, fire-weather services, horticultural
and climatological centers continued the same as in the previous year. Two
hundred and fifty-one of the field stations were equipped to give local avia­
tion weather services. The network of climatological stations manned by
unpaid observers remained at approximately 6,600 during the fiscal year.
In addition, there were more than 2,500 river stage observing stations. These
cooperative stations continued to render outstanding public service as the
basis for the climatological and river and flood forecasting functions of the
Weather Bureau.
Inland Waterways Corporation
The Inland Waterways Corporation was created for the purpose of carry­
ing on the operations of the Government-owned inland waterways system
until such time as the system can be transferred to private operation to the
best advantage of the Government.
The Corporation operates as a common carrier in the same manner and to
the same extent as if its facilities were privately owned and operated. In
accordance with the bylaws of the Corporation, its fiscal year ends on June
30 and its annual reports are prepared on that basis.
During the fiscal year ending June 30, 1949, a reorganization of the Cor­
poration carried on in the previous year had begun to show results and the
operation was conducted on a more efficient basis. Although as an economy
measure carload service was greatly curtailed during the first half of the year,
traffic for the whole year increased approximately 32 percent over fiscal 1948,
but was handled with 8 percent less boat-days. Freight rates were again
advanced on most commodities; this advance, together with the increase in
traffic, resulted in an increase in operating revenues of 24 percent over the
previous year, while operating expenses increased only slightly more than
1 percent.
These very favorable results in spite of accelerating deterioration in the
Corporation’s obsolete equipment were very largely due to favorable operat­
ing circumstances. During fiscal 1949 no serious strikes interrupted the
steady flow of traffic. No floods of any consequence occurred, nor were oper­
ations hampered by extreme low water. The winter of 1948^19 was an
unusually mild one and resulted in a minimum of ice difficulties in the upper
reaches of the Mississippi Valley.
Small increases in wages and in some other operating expenses occurred,
but these were partially offset in the latter part of the fiscal year by a de­
cline in the price of fuel.
The principal organizational development during the year was the transfer
of practically all of the Corporation’s terminal activities to private hands.
After a pattern had been established during the previous year by the opera­
tion of the terminals as separate enterprises within the Corporation, arrange­
ments were made with local warehousing and terminal operators at various
points to undertake the task of operating the various terminals as public facili­
ties. With the possible exception of St. Louis, where a very bad physical
situation seriously distorts the operating results, the operation of the various
terminals by local private enterprise was very successful.
The experimental integrated tow, delivered in the late spring of 1948, was
operated through half of fiscal 1949 in trial runs of various kinds to determine



the adaptability of this kind of equipment to the needs of the common carrier
service offered by the Corporation, and its general suitability and greatly
improved efficiency over conventional equipment was conclusively demon­
Although the financial results during fiscal 1949 showed great improvement
over the previous year, the general financial position did not permit continuing
the construction program indicated by the results of the experimental oper­
ation of the Harry Truman, and although $2,000,000 was appropriated for
this purpose for the Corporation by the Eightieth Congress, few capital im­
provements were made. During the first session of the Eighty-first Congress
an additional $1,000,000, all that remained unappropriated of the amounts
authorized to the Corporation in 1924 and 1928, was appropriated. Further
legislation was introduced in both the House and the Senate to authorize an
additional $18,000,000 of capital for the Corporation to permit the rehabilita­
tion, modernization, and expansion of the Corporation’s operation. The
Bureau of the Budget approved an authorization of $10,000,000. No action
was taken on this proposed legislation during the first session.
The prospects for the coming year were not promising, as the deterioration
of the Corporation’s old equipment had progressed to the point where a por­
tion of its barge capacity was shortly to be condemned by the underwriters
for the transportation of insured cargo. Finances were, and continue to be,
unavailable in sufficient amount to effect a significant rehabilitation of the
Corporation’s fleet, and prolonged strikes in steel, coal, grain handling, and
connecting railroads had already depressed the Corporation’s traffic. If the
floods, low water, and ice normally to be expected should occur during the
new fiscal year, the Corporation’s performance is expected to slump badly.

Charles S awyer,

Secretary of Commerce.