Full text of Annual Report of the Secretary of Commerce : 38th Annual Report of the Secretary of Commerce, 1950

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ANNUAL

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UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1950

Letter of Transmittal
D

epa rtm en t of

O

C om m erce,
Secretary,

f f ic e o f t h e

Washington, December 29, 1950.
S i r s : Submitted herewith to the Congress is the Annual
Report of the Secretary of Commerce for the fiscal year ended
June 30, 1950. The opening section presents a general de­
scription and interpretation of the economic and business
developments of the period. This is followed by a summary
report of the principal activities of the Department’s several
bureaus and agencies during the year.
Respectfully,

Secretary of Commerce.
T
T

u

he
he

V ic e P r e s id e n t .
Spea ker of t h e H

ou se of

R

e p r e s e n t a t iv e s .

CONTENTS
The Condition of the National E co n o m y .........................................

PAGE

1

Summary of the Year’s Operations

Office of the Secretary:
Business Advisory C ouncil.............................................................
Office of the Solicitor.....................................................................
Office of Program P la n n in g .........................................................
Office of Publications.....................................................................
Office of Budget and M anagem ent.............................................
Office of Personnel A dm inistration.............................................
Office of Administrative Services.................................................
Bureau of the Census.............................................................................
Civil Aeronautics Administration.........................................................
Coast and Geodetic S u rv e y .................................................................
Bureau of Foreign and Domestic Com m erce.....................................
Office of Business Economics.........................................................
Office of Industry and Commerce.................................................
Office of International T rade.........................................................
Office of Field Service.....................................................................
Inland Waterways C o rp o ratio n .........................................................
Patent O ffic e .........................................................................................
Bureau of Public R oads.........................................................................
National Bureau of S tandards.............................................................
Office of Technical Services.................................................................
Weather B ureau......................................................................................
Officials of the Department

7
8
9
10
12
16
21
27
32
35
38
38
42
46
51
52
53
57
60
69
71

Appendix
Hi

76

38 TH

A N N U A L REPORT OF THE SECRETARY
OF COMMERCE

The Condition of the
National Economy
AnaledRESURGENCE
in industrial production early in fiscal year 1950 sig­
the end of the 1949 business recession. Thereafter, a period of

relative stability served as the foundation for a broad and sustained recovery
movement which advanced the Nation’s economy to a peacetime peak at
year’s end.
As seen in retrospect, fiscal 1950 was a year in which the national economy j
overcame the threat of deflation—aided by the still large carry-over of
wartime demands for investment goods—and after a brief adjustment
resumed its upward trend. The dynamic shift in economic forces which
occurred during this period was the subject of careful attention and joint
action by business and Government. The economic indicators maintained
by the Department of Commerce proved valuable in diagnosing the situa­
tion as it developed, and made it possible for the Department to mobilize
its resources for prompt application to trouble spots.
The economic events of the period covered in this report are worthy of
fuller exposition than is given below, since they constitute the concluding
chapter of a sequence that began with VE-day in 1945 and ended with
the invasion of South Korea 5 years later. The following account attempts
to maintain that postwar perspective while recounting business progress
during fiscal year 1950.

Completion of the Postwar Reconversion

In the period from the initiation of postwar reconversion until the onset
of the 1949 recession there was a rapid and continuous advance in pro­
duction, prices, income, and employment. The annual rate of production
of goods and services—the gross national product—had at the end of 1948
increased to 270 billion dollars, a rate which in current dollars was about
one-sixth above the wartime high.
,

1

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ANNUAL REPORT OF THE SECRETARY OF COMMERCE

The strong upward pressure upon prices and production was in part, of
course, the consequence of the large carry-over of liquid assets from the war
and the initial shortages of many types of goods unobtainable during the
war. Relatively early in the postwar period, however, the stimulus of
deferred demand was seen to be disappearing in successive sectors of the
economy. Consumer stocks of most nondurable goods were restored
promptly. Deferred demand for many of the lighter electric appliances
was satisfied in 1947, and by the end of 1948 most heavy consumer durables
were also dependent upon current consumer requirements. Meanwhile,
the crest in foreign purchasing—activated by huge grants and loans by the
United States—had been passed in early 1947, and the stimulus provided
to investment by restoration of the business population to normal size was
largely spent by the end of the same year.
Until the end of 1948 the economy took such adjustments in stride, as
the expansionary forces—including a variety of Government programs—
continued to prevail. Basic to the expansionary movement throughout this
period were the continuing large demands for homes and for automobiles, to­
gether with the need of business enterprises to expand and replace plant
and equipment, and to bring their war-depleted stocks of civilian goods
into line with the greatly expanded volume of postwar business. As 1948
passed into 1949, the inventory situation changed drastically, and business
spending for plant and equipment receded as many immediate postwar
programs for expansion were completed.

The Trend Toward Recession

The completion of inventory development had a marked and immediate
impact upon the economy. In the fourth quarter of 1948 inventory accu­
mulation had reached an annual rate of 9 billion dollars, which means that
the Nation’s production exceeded its consolidated sales by this amount.
Early in the first half of fiscal 1950 inventories were being liquidated at the
annual rate of 5 billion dollars, which means that sales were in excess of
production. Thus, with a shift from a 9-billion-dollar rate of inventory
accumulation to a 5-billion-dollar rate of liquidation, it is evident that at
annual rates a 14-billion-dollar drop in total production can be ascribed to
this factor alone.
The fundamental reason for the cessation of inventory accumulation was
simply that by the end of 1948 stocks had reached a level which businessmen
regarded as adequate to support the volume of business transacted. In
addition, whereas it had been advantageous for business to adopt an easy
inventory policy while prices were rising, price weaknesses developing at the
end of 1948 dictated a more conservative policy—to minimize the risk of
loss on a-falling market.

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

3

Concurrently, farm income was also falling sharply from its extraordinary
1948 level, as a result of supplies accumulated in years of maximum farm
production and the ebbing of abnormal foreign demand for farm products.

Underlying Strength of the Economy

In spite of these adverse developments a chain of deflation was not set
off elsewhere in the economy.
A major deterrent to further decline was the fact that the drop in income
earned from current production—the national income-—had little counter­
part in personal income after taxes, and consequently consumers were able
to maintain their purchases.
The automatically counter-cyclical features of governmental finances in
such fields as farm price support, social insurance, and taxation were instru­
mental in supporting private buying. Government lending operations, par­
ticularly in the field of residential mortgage credit, exerted an additional
sustaining influence upon private activity.
One principal factor accounting for the difference in movement between
national income and the flow of income to individuals was the stable dis­
bursement of dividends—low throughout the postwar period in relation to
earnings—and other property incomes in spite of reduced business earnings.
Also serving to support personal incomes available for spending were an
increase in unemployment insurance benefits and other Government trans­
fer payments, and lower individual income tax payments. To the small
extent that consumer income did decline, it was offset in its effect on spend­
ing by a reduction in the rate of saving out of current income.
Thus, in the first quarter of 1949 consumer expenditures in dollars were
off about 1 percent, less than the decline in prices, and thereafter did not
change until the first quarter of 1950.
Since consumer purchases absorb about seven-tenths of the gross national
product, the firmness of the consumer sector was of enormous importance
in sustaining the economy as a whole. This stability in consumer outlays
embraced rising expenditures for automobiles, television sets, rent, and many
types of services, and lowered dollar outlays for food, clothing, and many
other nondurable commodities.
The decline in business purchases of plant and equipment in the first half
of 1949 was a factor in the course of developments at that time. A tem­
porary slump in residential construction, which had started in the last half
of 1948 as potential buyers held off purchasing in the expectation of sub­
stantial price declines, was also in progress. The drop in total fixed invest­
ment, including residential construction, from the fourth quarter of 1948
to its low point in the last quarter of fiscal 1949 was limited, however, to
about 3 billion dollars at annual rates.
In this critical period, strong support was lent to the economy by a rise
of 4 billion dollars at annual rates in purchases of goods and services by Fed­

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ANNUAL REPORT OF THE SECRETARY OF COMMERCE

eral, State, and local governments. This rise in Government buying, in­
clusive of grants to foreign countries, almost fully offset the moderate drop
in private buying for final use.

Business Regains Its Balance

While general pessimism over the business outlook did not seem warranted
as fiscal 1950 began, substantial unemployment had arisen in scattered in­
dustrial areas, with local production curtailed. The President, recognizing
the need for bolstering business confidence in these trouble spots, directed
the Secretary of Commerce to appraise the Nation’s business situation and
to draft recommendations for Federal assistance to the areas most seriously
affected by the recession.
In carrying out this assignment, the Secretary personally made a Nation­
wide survey, meeting with business, labor, and civic leaders. The mutual
interchange of ideas which flowed from these discussions not only was help­
ful in determining the nature of the problems in the communities concerned,
but in many cases was an aid to their solution. As the study progressed the
Secretary was able to note not only the great underlying strength in the
economy but that business was actually improving in previously distressed
areas.
In August the index of industrial production shot upward from its reces­
sion low and business loans reversed their downward trend. By midsum­
mer, the decline in aggregate investment had been checked. The rate of
inventory liquidation began to diminish as the underlying core of demand
made necessary a revival of business orders, and substantial recovery oc­
curred in residential construction, where the backlog of demand continued
large. During the first half of the fiscal year 1950 these two favorable
factors approximately offset further declines in business expenditures for
producers’ durable equipment and nonresidential construction, and a reduc­
tion in foreign investment.
Concurrent with the stabilization of aggregate investment, however, the
expansion of Government buying ceased. With these formerly dynamic
factors at comparative rest during the first half of the fiscal year, sales, pro­
duction, employment, and prices were nearly stable in most industries.
However, some increases were appearing, and such declines as continued,
e. g., in agricultural prices, were taking place at a diminished rate. The
first half was thus one of over-all stability within which were embraced
moderate advances in some of the earlier declining segments, but with the
beginnings of a renewed upturn of business clearly apparent.

Factors Encouraging Economic Expansion

The impetus to renewed progress was inherent in three major expan­
sionary situations.

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

5

(1) Housing starts had begun to rise again as early as May 1949, and this
was reflected in an increase in residential construction activity during the
first half of the 1950 fiscal year. Housing activity had declined much less
than is customary in the winter months, and in the third fiscal quarter starts
ran far above comparable months of any past year. This upsurge in home
building was accompanied by a firming of commercial construction, which
was required to service new developments. It also brought a marked ad­
vance in sales of furniture, housefurnishings, and appliances, which were
required to outfit the new homes that were completed.
(2) An unusual element in the expansionary outlook was the payment
of 2.6 billion dollars in National Service Life Insurance refunds to veterans
during the second half of fiscal 1950. These payments boosted personal
income extraordinarily in this period, and stimulated consumer purchasing
of both durable and nondurable goods. The immediate rise in consumer
expenditures was not, of course, equivalent to the gain in personal income,
since the spending induced by these payments was spread over a consider­
able period of time. But sales prospects were enhanced.
(3) Just as the cessation of inventory accumulation brought a down­
swing in production at the beginning of 1949, so the ending of the period
of inventory liquidation was a major force impelling expansion during 1950.
By the third fiscal quarter there was no substantial change in over-all
inventory holdings. In fact, there was a small amount of accumulation.
This meant that the rate of production was brought up to the rate of
purchasing. Following, as it did, a period in which liquidation had reached
a maximum annual rate of 5 billion dollars, this was obviously a major
force in the general upswing in production. By the end of the fiscal year
business inventories were accumulating at a rate of 3 or 4 billion dollars
annually.
In addition, foreign countries, as a whole, were enabled to effect a further
material improvement of their financial position in relationship to this
country during the fiscal year. Their need to replenish gold and dollar
reserves continued, but its intensity was somewhat mitigated during the
last three quarters.
United States merchandise exports increased during the final quarter
about as much as the rise in Government grants under the European Re­
covery Program, while merchandise imports, after recovering from the low
at the beginning of the year leveled off in the last fiscal quarter at a dollar
volume not far below that prevailing prior to the 1949 downturn.

Economy Reaches Peacetime Peak

The position of the economy at the end of the fiscal year may be sum­
marized by noting that the value of total output—the gross national
product—was at an annual rate of 270 billion dollars. Since prices were,

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ANNUAL REPORT OF THE SECRETARY OF COMMERCE

on the whole, lower than in late 1948, the physical volume of production
was actually above the previous high.
Final purchases of the output of the economy—measured by gross national
product excluding inventory change—were higher than in any previous
period in dollars, and significantly higher in physical volume. This was
also true of consumers’ expenditures for goods and services, which rose in
the fourth fiscal quarter to 184 billion dollars, at seasonally adjusted annual
rates.
Unlike the other quarters of the fiscal year, when consumer prices were
drifting downward, the rise in the fourth quarter was accompanied by
price increases. Dollar retail sales at the end of June, in the aggregate,
were above their highest previous point and 10 percent above their June
1949 level.
Growth in the fixed business investment category was primarily concen­
trated in the equipment field. Purchases of producers’ durable equipment
rose from 19/2 billion dollars, at annual rates, in the third quarter to
21/2 billion dollars in the fourth. This advance followed the recovery
from the low mark reached in the first half and brought the rate of business
equipment purchases above that prevailing at the crest of the 1948 boom.
Concurrently, outlays for railroad and transit equipment also increased.
The upward surge of production had its counterpart in a moderate
advance in income. Aside from the temporary distortion of personal in­
come by work stoppages and the nonrecurring Government insurance
refunds, the underlying trend of personal income was upward. Aggregate
corporate profits began to recover in the first half and this advance was
continued in the second half.
Industrial and consumer prices were relatively stable during fiscal 1950,
but such changes as did occur were predominantly in an upward direction.
For example, food prices rose sharply in the last half of the year.
The course of production brought a marked rise in employment. At
year’s end, civilian employment of 61.5 million was nearly equal to the
high reached in 1948.
Thus, the economy was at a peacetime peak when on June 25, 1950,
the Communist forces from North Korea invaded South Korea. As the
United States entered the conflict on behalf of the United Nations, and
embarked on a greatly enlarged preparedness program, it was evident
that a first phase of the return to normal business after World War II
had been completed. What followed would be an unprecedented adjust­
ment to a greatly enhanced armed strength in peacetime, an adjustment
putting added strains upon the productive strength of the economy and a
test of our ability to control the resultant inflationary development.

Summary of the Year’s
Operations*1
OFFICE OF THE SECRETARY
Business Advisory Council
T h e Business Advisory Council was formed in 1933 for the purpose
of giving the Secretary of Commerce a group of confidential advisors, drawn
mainly from the business community, who might reflect the point of view of
progressive management on the administrative problems within the De­
partment’s jurisdiction as well as on general problems of public policy.
In carrying out this purpose the Council met with the Secretary on six
different occasions during the year and individual members were also called
in for consultation.
The active membership of the Council on June 30, 1950, stood at 59
and was composed of the following :
*James S. Knowlson, Chairman, Chicago, Howard Bruce, Baltimore, Md.
Paul C. Cabot, Boston, Mass.
111.
*John M. Hancock, Vice Chairman, New J. T. Cecil, Bristol, Tenn.-Va.
*Charles S. Cheston, Philadelphia, Pa.
York, N. Y.
*William E. Levis, Vice Chairman, Lucius D. Clay, New York, N. Y.
*John L. Collyer, Akron, Ohio.
Toledo, Ohio.
* Robert T. Stevens, Vice Chairman, Paul L. Davies, San Jose, Calif.
New York, N. Y.
Fred Rogers Fairchild, New Haven,
*John C. Virden, Vice Chairman, Cleve­
Conn.
land, Ohio.
Benjamin F. Fairless, New York, N. Y.
T. H. Banfield, Portland, Oreg.
Henry Ford II, Dearborn, Mich.
W. L. Batt, Philadelphia, Pa.
Jacob France, Baltimore, Md.
S. D. Bechtel, San Francisco, Calif.
Fred H. Haggerson, New York, N. Y.
John D. Biggers, Toledo, Ohio.
Joseph B. Hall, Cincinnati, Ohio.
*Member of Executive Committee.
1 Excluding the Federal Maritime Board and the Maritime Administration, whose
activities during the closing weeks of the year following May 24, 1950, when they
were created to replace the United States Maritime Commission, an independent
agency, will be covered in the annual report for the fiscal year ending June 30, 1951.
7

8

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

W. H. Harrison, New York, N. Y.
Paul G. Hoffman, Washington, D. C.
•John Holmes, Chicago, 111.
Preston Hotchkis, Los Angeles, Calif.
*G. M. Humphrey, Cleveland, Ohio.
•Austin S. Igleheart, New York, N. Y.
Emory Scott Land, Washington, D. C.
E. H. Lane, Altavista, Va.
Fred Lazarus, Jr., Cincinnati, Ohio.
•George H. Love, Pittsburgh, Pa.
J. Spencer Love, Washington, D. C.
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.
James H. McGraw, Jr., New York, N. Y.
John P. McWilliams, Cleveland, Ohio.
George H. Mead, Dayton, Ohio.

Thomas A. Morgan, New York, N. Y.
Ernest E. Norris, Washington, D. C.
A. Q. Petersen, New Orleans, La.
T. S. Petersen, San Francisco, Calif.
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.
E. A. Roberts, Mobile, Ala.
C. R. Smith, New York, N. Y.
John W. Snyder, Washington, D. C.
•A. E. Staley, Jr., Decatur, 111.
J. Carlton Ward, Jr., Farmington, Conn.
Sidney J. Weinberg, New York, N. Y.
•Langbourne M. Williams, Jr., New York,
N. Y.
•Charles E. Wilson, Detroit, Mich.
James W. Young, Santa Fe, 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 legal problems for those units which do not have
legal staffs.
One of the major responsibilities of the Office of the Solicitor is the
direction and coordination of the Department’s legislative program, in­
cluding 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 1950, requests for comments on 308 bills were
received from the committees of the Congress, 228 reports setting forth
the views of the Department were prepared and submitted to the Congress,
during the same period the Bureau of the Budget requested the views of
the Department on 201 items of legislation, and 163 reports were submitted
to the Bureau. Sixty-four legislative proposals drafted in the Department
were submitted to the Eighty-first Congress, and 18 such proposals were
enacted by June 30, 1950. Twenty-four other legislative proposals drafted
in the Department were enacted later in the second session of the Eighty-first
Congress. In all, 509 legislative proposals affecting the Department were
referred to the Office during the year.
•Member of Executive Committee.

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

9

All contracts approved by the Secretary were reviewed by the Office.
The number of contracts, leases, licenses, bonds, agreements, and similar
contractual matters reviewed during fiscal 1950 was 316.
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 litigations. During the fiscal year
189 matters being referred to these officials were handled. The number
of legal opinions and other legal memoranda and correspondence during
the year amounted to 426.
Important matters of a nonroutine nature on which the Office worked
during the year included the introduction and enactment of Reorganization
Plan No. 7 of 1949 and Reorganization Plans No. 5 and No. 21 of 1950,
involving, among other things, the transfer of the Bureau of Public Roads
and the Maritime Administration to the Department; the establishment
of the Government Patents Board; the Seventeenth Decennial Census; and
mobilization planning, leading up jto the subsequent introduction and
enactment of the Defense ProductiohAct of 1950.
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 bu­
reaus or operating offices. Often they involve coordination of several
Department activities or policies with those of other Government agencies.
Another important area of activity is comprised of new and emerging prob­
lems which do not clearly fall within any of the existing assignments of the
line organizations.
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 question­
naires and economic and statistical reports requiring clearance by the Bu­
reau of the Budget. By direction of the Secretary, the Office is responsible,
further, for program liaison work with other Federal departments and estab­
lishments, including the constituent parts of the Executive Office of the
President. This involves membership representing the Secretary or the
Department on interdepartmental boards and committees as well as less
formal contacts.
Major problems on which the Office was called upon to work during fiscal
year 1950 included:

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ANNUAL REPORT OF THE SECRETARY OF COMMERCE

(a) Participation in the preparation of a report by the Secretary to the
President on the “Issues Involved in a Unified and Coordinated Federal
Program for Transportation”.
(b) Assistance in developing departmental views and recommendations
on reorganization plans affecting the Department of Commerce.
(c) Assistance in planning and effectuating the transfer of the Mari­
time Commission to the Department of Commerce under Reorganization
Plan 21 of 1950.
(d) Participation in Air Coordinating Committee activities, especially as
regards mobilization planning for and economic problems of air transporta­
tion, including membership in the Resources Division and the Economic
Division of ACC.
(e) Coordination for the Secretary of testimony presented by Federal
agencies in support of the Joint Resolution approving the St. Lawrence
Seaway and Power Project.
(/) Participation in the drafting of the proposed Small Business Act of
1950 to effectuate the President’s recommendations concerning small busi­
ness and in the preparation of supporting testimony offered by the Secretary.
(g) Advice on the program aspects of the reorganization of the Bureau
uf Foreign and Domestic Commerce.
(h) Coordination for the Secretary of the industrial mobilization plan­
ning activities of the Department; responsibility for departmental liaison
with the National Security Resources Board, and membership on the Inter­
departmental Staff Group of the Board.
(i) Organization for the Assistant Secretary for International Affairs of
a cooperative study by the Offices of International Trade, Business Eco­
nomics, and Industry and Commerce to determine the probable volume of
United States imports at the end of the European Recovery Program
(1952).
Office of Publications
The Office of Publications coordinates the informational activities of the
Department. It acquaints business and the general public with the Depart­
ment’s findings, publications, and services and acts as a central programming
office for the publications activities of the bureaus and offices.
During the first half of the fiscal year 1950, the Office concentrated on
publishing the economic facts developed within the Department in order
to help business and the public appraise the outlook at a time of uncertainty.
The Office participated in the business fact-finding trips made by the
Secretary at the request of the President and in publicizing the findings.
It also arranged for a series of broadcasts entitled “How’s Business?” with
the Secretary and other officials as speakers, in cooperation with the Uni­
versity of Chicago Round Table of the Air.
Increased attention was given to bringing the Department’s facilities and
services together with small business. Window displays and posters calling

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

11

attention to business services were designed and distributed to the field
offices. A series of broadcasts in which officials of the Department addressed
small businessmen was scheduled in the fall of 1949.
Through the Office of Publications the Department received much help
from business in disseminating economic facts and information concerning
its services to business. Among these were notices in trade journals, radio
time, and billboard posters inviting businessmen to consult the field offices.
Numerous radio stations participated in the Office’s public-service program
of announcements and scripts calling attention to the Department’s publica­
tions and its services in the field.
An important step to improve the Department’s business services and
their availability to business was the organization of the Advertising Ad­
visory Committee to the Secretary. Staff services to establish the com­
mittee and conduct its affairs were provided by the Office of Publications.
Recommendations of the Committee are proving valuable in the develop­
ment and dissemination of information important to commerce and
industry.
With full cooperation of the Office, a subcommittee of the Advertising
Advisory Committee undertook an extensive study of the Department’s
facilities, services, and publications. This group provided material help
in a project to develop a Department-wide mailing-list system designed to
assure widest coverage at minimum cost for the release of departmental
information through interested business associations and trade publications.
The Publications Project Clearance Procedure was extended to include
virtually all projected and continuing periodicals, books, pamphlets, and
other published materials in advance of preparation. During the 1950
fiscal year, 142 projects were examined. Of the total, 102 were cleared as
submitted, 20 received provisional approval and 20 were disapproved.
Numerous manuscripts were examined for conformance with departmental
policy.
Additional periodic releases and reports were converted from a free to a
paid basis. Application of the sales policy has demonstrated that more
copies of a valuable publication can be sold than can be given away under
any prudent system of free distribution. Again in the 1950 fiscal year, sales
of Department of Commerce publications by the Superintendent of Docu­
ments exceeded those of any other department or agency. Sales rose by
more than $100,000 to $1,035,000, and constituted 27 percent of all sales
by the Superintendent of Documents. Including charts and certain proc­
essed materials sold directly by the Department (but not including copies
of patents), sales of the Department’s published materials reached
$1,404,000.
The Office of Publications provided help during the 1950 fiscal year in
the preparation of 60 speeches and other statements of policy and fact by
the highest officials of the Department. It participated in arrangements for

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ANNUAL REPORT OF THE SECRETARY OF COMMERCE

major addresses before important business groups and by radio and tele­
vision. It also assisted in the arrangements for displays and conferences in
a number of cities. A member of the Office of Publications staff again
served as Chairman of the Publications and Manuals Subcommittee of the
Air Coordinating Committee.
The Departmental News Room provided news coverage for the Office of
the Secretary and assisted the bureaus and offices in preparing business
releases. Through the News Room, the Office of Publications maintained
close contact with representatives of the general and business press and dis­
tributed to correspondents and business representatives reports and studies
bearing on virtually every aspect of business and industry and of the foreign
and domestic commerce of the United States.
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 con­
tinuing 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 Office of the Secretary, the Bureau of Foreign and Domestic Com­
merce, and the Office of Technical Services, and rendering a central fiscal
advisory service to all bureaus and offices of the Department.
BUDGET ACTIVITIES

During fiscal year 1950, the Office of Budget and Management was
requested by the constituent bureaus and offices of the Department to
consider budget estimates totaling $529,463,032. After review by this
Office, the Secretary of Commerce approved a total sum of $456,710,392
for transmittal to the Bureau of the Budget. In addition to the annual
budget estimates, 26 separate supplemental budgets were reviewed, con­
solidated, and transmitted to the Budget Bureau. The Office participated
in justification of these estimates before the Bureau of the Budget and the
Congress and, once appropriations were made therefrom, prepared and
controlled apportionments and in some cases allotments, and prepared and
transmitted the budgetary and fiscal reports required by the Bureau of the
Budget, the Treasury, and the General Accounting Office.
One of the basic budget activities carried on through the fiscal year was
continued effort toward refinement and improvement of the performance
budget. The patterns of activity categories were reviewed with repre­

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

13

sentatives of the Bureau of the Budget and staff members of the Appro­
priations Committees. Several of the old activity lists were substantially
revised, resulting in new patterns which are considered to be much more
representative of the work of the bureaus concerned. This work was
carried on through the Department’s Budget Officers Conference, which was
quite active throughout the year on this and other budgetary and fiscal
matters.
The Office of Budget and Management continued its cooperation with
the Joint Accounting Committee of the Bureau of the Budget, the Treasury
Department, and the General Accounting Office. The Accounting Systems
Division of the General Accounting Office assigned several full-time repre­
sentatives to the Department and began to review the Department’s fiscal
activities on a specific project basis. This represented a change in method
from the general approach on which the intradepartmental committee on
fiscal management was established and resulted in the dissolution of that
committee and an adjustment of staff assignments in the Office of Budget
and Management to provide a small staff to work with the representatives
of the Accounting Systems Division. The initial work of this group was a
comprehensive study of the financial structure of the National Bureau of
Standards which resulted in the installation of a new fiscal system based
on performance categories and designed to provide full financial support
for all activities of the Bureau.. This group will continue to study the
individual bureaus of the Department until the entire fiscal structure of
the Department has been surveyed.
ORGANIZATION STUDIES

The Bureau of Public Roads was transferred to the Department of
Commerce by Reorganization Plan No. 7 of 1949 as the first step toward
implementation of the Hoover Commission’s recommendation that the
major nonregulatory transportation activities of the Federal Government
be grouped together in the Department of Commerce. Subsequently, addi­
tional steps toward this objective were accomplished by Reorganization Plan
No. 21 of 1950, which created the Federal Maritime Board and Maritime
Administration within the Department and established the new position of
Under Secretary for Transportation.
The Office of Budget and Management took an important role in the
developments leading up to these transfers, including the preparation of
justification materials, the preparation of pertinent testimony and corre­
spondence, and frequent consultations with outside agencies, all of which
activities involved extensive study of the organization, programs, and
legislation of these agencies. The Office was also quite active in the inte­
gration of these units into the Department of Commerce and in planning
and developing recommendations concerning the Department’s activities in
the over-all transportation field.
915669— 51-------2

14

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

The Office also played a strong part in connection with Reorganization
Plan No. 5 of 1950, conducting negotiations with outside agencies and
preparing supporting information and testimony as in the case of Reorgan­
ization Plan No. 21. Reorganization Plan No. 5 transfers to the Secretary
of Commerce all authority formerly vested in other offices and organizational
units of the Department, and makes possible complete objective review of
the activities of the Department, with appropriate remedial action, from
the Office of the Secretary level. Some actions have already been under­
taken under this authority, including the transfer of the Commodity Stand­
ards Division from the National Bureau of Standards to the Office of Indus­
try and Commerce, and the transfer of certain Maritime administrative
activities to the central services of the Department.
Other important organizational activities in which this Office participated
included the complete reorganization of the Bureau of Foreign and Domes­
tic Commerce. This Bureau was strengthened in line with the recom­
mendations of the Hoover Commission by consolidating the commodity
units, and other organizational adjustments were made to prepare the bu­
reau to meet its responsibilities in connection with the defense effort. In
addition, there was a major organizational adjustment in the field service
of the Weather Bureau, with a reduction from eight to five regional offices,
and minor organizational changes were made in the Civil Aeronautics Ad­
ministration, the Office of Technical Services, and the National Bureau of
Standards.
MANAGEMENT IMPROVEMENT PROGRAM

The President’s Management Improvement Program came into full
stature during fiscal year 1950. The Secretary delegated chief staff re­
sponsibility for this program to the Director, Office of Budget and Manage­
ment, and this office took the leading role in the development and promotion
of the Department’s program.
Primary responsibility for full implementation of the President’s program
was delegated to the heads of the primary organization units of the Depart­
ment with stipulation that full use be made of the supervisory staff. The
Department’s responsibility was fixed to encompass the establishment of
standards and guides for the primary unit programs, promotion and stimula­
tion activities, review of primary unit plans and annual reports, follow-up
of progress on schedules, providing assistance on specific management proj­
ects as requested, and making such independent audits as are required.
The management progress of the Department under this plan during the
first year of its formal operation has been encouraging. The primary
organization units of the Department have taken an active interest in the
program and, in most cases, have pushed toward the fulfillment of its
objectives. While it cannot be said that all units have performed capably

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

15

on the basis of optimum standards, it is believed that all units have made
some progress and more is expected as the program develops.
The Council for Administrative Coordination, established by the Office
of Budget and Management in 1947 to provide the bureaus and offices with
a voice in the formulation of top management policy and practices, pro­
vided the framework through which the management improvement pro­
gram was developed and promoted, and otherwise continued to serve a
valuable purpose during the fiscal year.
SURVEYS AND PROJECTS

In addition to its work on the President’s program, the Office of Budget
and Management continued its usual management activities during fiscal
year 1950. The following listing illustrates a few of the numerous manage­
ment studies and investigations begun or completed during the year:
1. Completed study of staffing standards for payrolling, voucher auditing,
property management and personnel activities to assist the primary units
to achieve an effective operation and adhere to standards established by the
Bureau of the Budget for these activities;
2. Began comprehensive analysis of the operations of the Office of the
Comptroller of the Maritime Administration, which is responsible for the
handling and expenditure of huge sums in connection with the Govern­
ment’s maritime program;
3. Conducted study of the dissemination of the technical publications
of the Atomic Energy Commission and arranged for the Office of Technical
Services to take over this service to the business public;
4. Participated with representatives of the Civil Aeronautics Adminis­
tration in the development of a comprehensive reporting system for the
Establishment of Air Navigation Facilities program, which is designed to
show the progress of the program in terms of comparable physical and
financial data;
5. Assisted in a study of inquiries for departmental services and decentral­
ized to the departmental field offices all inquiries which could be answered
in the field, resulting in better balance of workload and improved service
to the public;
6. Initiated a survey of the activities and relationships of the primary
organization units of the Department engaged in collecting, compiling, and
disseminating flight information material for the purpose of determining
the unit to have primary responsibility in this area ;
7. Worked with representatives of the Division of Printing Services to
eliminate the separate printing plants at the Bureau of Census and the
National Bureau of Standards, installing a branch plant at Census and con­
solidating the plant at Standards with the central printing plant;
8. Conducted a study of the time and attendance practices of the Census

16

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

Bureau and installed an improved system which resulted in considerable
savings; and
9. Participated in the formulation of plans, and in the preparation of
legislation, for the proposed incorporation of the Washington National
Airport.
ACCOUNTING DIVISION

The Accounting Division performs a complete fiscal accounting and audit­
ing service for the Office of the Secretary and the Bureau of Foreign and
Domestic Commerce. Workload statistics for the fiscal year are indicative
of the work of the Division. These statistics show the Division issued 54,167
salary checks, processed 7,177 change slips, requisitioned and issued 11,189
bonds, processed 10,040 vouchers, prepared 8,645 schedules and other docu­
ments, and maintained 529 active general ledger accounts and 679 allot­
ment ledger accounts. All work of the Office was maintained on a current
basis, and required audits and reconciliations were made of tax, bond, and
retirement accounts. The Division also took over the work in connection
with the liquidation of the accounts of the war agencies, which continues
quite active.
Table 1 represents the consolidated statement of moneys available and
disbursed by the Department during the fiscal year.
Table 1.— Consolidated Statement of Moneys Available and Disbursed by the
Department
Bureau or office
Office of the Secretary________________________________
Bureau of the Census________________________________
Civil Aeronautics Board 1________________________
Coast and Geodetic Survey__________________
Bureau of Public Roads_________________________
National Bureau of Standards_______________________
Weather Bureau______________________________

Total available
appropriations
and contract au­
thorizations
36,444,785
70,005,742
312,900,438
3,857,925
14,959,911
11,645,598
356,594,202
12,769,480
1,842,702,071
36,902,236
29,020,308
522,000
3 2,698,324,696

Expenditures
during current
fiscal year
35,070,324
57,581,629
165,439,170
12.994,397
10,500,427
93,387,297

>910,557,397

1 The budget for this independent agency is included in that of the Department for purposes of administrative
convenience.
3 The difference between these 2 figures represents unliquidated obligations and unobligated balances For
Crc'?-Pilerw!1^
S UrCaU ° f Public Roads had unliquidated obligation* of 3611,000,000 and an unobligated balance
of 3731,000,000.

Office of Personnel Administration
During the fiscal year 1950, the staff facilities of the Office of Personnel
Administration were devoted to the continuing development of the program
to decentralize personnel administration in the Department on a controlled
basis, with a view toward fuller realization of the objectives of optimum

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

17

utilization of personnel staff and improvement in efficiency and economy of
operations. In addition, problems attendant upon large-scale reductions
in force, integration of the personnel activities of two new bureaus, estab­
lishment and expansion of substantive programs, and the implementation
of new comprehensive personnel legislation required constant attention.
Under the established policy of decentralized personnel management, the
Office of Personnel Administration has performed the following staff func­
tions for the Secretary :
1. Staff planning, including the formulation, issuance, and interpretation
of policies, regulations, and standards to govern the administration of per­
sonnel 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
Personnel Administration continued to consist of ( 1) performance of certain
general personnel work for the Department at large, (2) provision of a
central point of contact for Members of Congress, other Government agen­
cies, 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 overhead.
MANAGEMENT IMPROVEMENTS

Continued systematic review of personnel operations in the various pri­
mary organization units during the year resulted in many improvements in
the methods of processing the voluminous paper work of personnel admin­
istration and, through increase in scope of the reviews to include consider­
ation of substantive program activities, brought about greater consistency
and increased effectiveness in the various personnel functions. The review
program is designed to improve the general efficiency and economy of per­
sonnel 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, to ascertain and obtain
compliance with Civil Service Commission and Department personnel policy
and procedures, to assist personnel officers in arranging organization, staff,
and procedures to operate effectively within staffing standards, and, in gen­
eral, to facilitate the development and maintenance of technically sound,
efficient, and progressive personnel programs in the primary organization
units.
In addition to conducting the program for review of personnel operations
of the primary organization units, the Personnel Methods Division advised

18

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

and assisted the staffs of the primary units in the installation of a new
standard personnel-action processing and record system promulgated by
the Civil Service Commission and the Bureau of the Budget. The system,
now in operation in six bureaus and offices of the Department, has enabled
elimination of many costly records and reports, more efficient processing of
personnel actions, and savings in operating staff time.
Administrative review of personnel activities in the primary organization
units was greatly improved by the initiation of a system of periodic site audits
of personnel actions taken by the Department’s bureaus and offices. The
new audit system, involving detailed examination of personnel actions and
related records at the site of actual processing operations, has made possible
a more thorough review process, has facilitated the taking of corrective
action by the primary units, and has eliminated the costly and time-con­
suming post audit of actions within the Office of Personnel Administration.
In accordance with the planned program of decentralization, and on the
basis of successful performance of the functions of personnel administration
previously assigned to the primary organization units of the Department,
additional authority for the processing of personnel actions was delegated to
various operating levels during the past year. To provide current and com­
prehensive 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 Department’s Manual of Orders on an up-to-date basis, to prepare
and distribute supplementary materials as required, and to provide interpre­
tations of laws, Executive orders, decisions of the Comptroller General,
civil-service rules and regulations, and Department personnel policy and pro­
cedure. Current maintenance of the personnel regulations of the Depart­
ment required the revision of 15 Department and Administrative orders
and the issuance of a new order establishing an Efficiency Awards Program.
To supplement these regulations, the periodic issuance of informational
bulletins to bureau personnel officers and their staffs was continued, sum­
marizing current regulatory changes, personnel policy decisions, new statu­
tory requirements, etc., to keep them abreast of current developments. In
addition, the Personnel Action Processing Guide, a manual presenting com­
prehensive information and instructions concerning the preparation and
processing of all types of personnel actions and the maintenance of related
records, which has proved to be effective in facilitating the accurate and
expeditious processing of personnel actions on a uniform basis, was revised
to incorporate new instructional materials and changes in statutory and
regulatory requirements.
SPECIAL ACTIVITIES

Under the provisions of Reorganization Plan No. 7 of 1949, and Reorgan­
ization Plan No. 21 of 1950, the Public Roads Administration and the

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

19

United States Maritime Commission were transferred to the Department
of Commerce as the Bureau of Public Roads and the Maritime Administra­
tion, respectively, The Federal Maritime Board being simultaneously estab­
lished as an independent agency. Integration of the personnel activities of
these two new bureaus with the Department’s program of personnel man­
agement involved initial liaison activity, fact-finding surveys, and a planned
program of advice and assistance to the new units in making necessary ad­
justments. A detailed survey of the operations of the Personnel Office of
the Bureau of Public Roads resulted in the identification of numerous possi­
bilities for improvement in the processing procedures, records, forms, and
reports used by that office, with resultant savings in printing, maintenance,
and processing costs. A similar study was made of the personnel activities
of the Maritime Administration, which likewise revealed opportunities for
improvement. In addition, as a special project, a comprehensive man­
agement survey was made of the complete operating organization and pro­
gram of the Training Division of the Maritime Administration, in which
about one-sixth of the Administration’s entire staff is employed, and recom­
mendations of major operating significance were presented.
In anticipation of the enactment of the Foreign Economic Assistance Act
of 1950, which in part provides for technical assistance and capital invest­
ment in economically underdeveloped areas of the world, an interdepart­
mental committee was formed during the past year, to formulate uniform
policies and procedures to govern the employment, by participating agencies,
of personnel appointed for the international development program. The
Chief of the Personnel Methods Division served as the Department of Com­
merce member of the interdepartmental personnel committee, and several
staff members of the Office of Personnel Administration participated with
various working groups thereof in the development of standard policies and
procedures concerning position classification and wage administration, ap­
pointments, medical and health benefits, leave benefits, etc., looking toward
the preparation of a manual of standard policies and procedures to guide
the sundry agencies in administering personnel matters relating to their
participation in the technical development program. The Chief of the
Employee Utilization Division served as the Department of Commerce mem­
ber of a permanent interdepartmental training committee established to
consider the unique training needs of the technical development program.
This committee, under the leadership of the Foreign Service Institute, is
developing comprehensive plans for immediate and long-range general
orientation training for program personnel.
At the request of the Secretary of Defense, the Deputy Director of Per­
sonnel was loaned to the Department of Defense to make a survey of labor
problems in the Panama Canal Zone. This assignment covered 2 months
and dealt with matters of considerable concern to the Department of
Defense, State Department, the Panama Canal, and the Republic of Panama.

20

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

A comprehensive report on the subject, including numerous recommenda­
tions, was furnished to the Office of the Secretary of Defense.
On the basis of the results of a comprehensive survey of employee and
supervisor opinion of current administration and uses of efficiency ratings,
and the anticipated provisions of pertinent pending legislation, the Employee
Utilization Division developed detailed plans for a new employee perform­
ance rating system for the Department. These plans, including policy and
procedures, newly defined rating elements and means for evaluation, new
adjective ratings, and revised rating forms, will be implemented upon
approval of basic Federal employee performance rating legislation, and the
issuance of related regulations by the Civil Service Commission.
Enactment of the Classification Act of 1949 required reappraisal of the
Department’s program of position classification and wage administration to
facilitate identification, planning, and execution of necessary adjustments
therein. New instructional materials were prepared for the guidance of the
several primary organization units, and significant changes in coverage under
the Act were discussed on an individual basis with the bureaus concerned.
In a communication addressed to the heads of Department bureaus and
offices, the Secretary of Commerce called particular attention to the need
for judicious exercise of the broad powers delegated to the Department, and
the increased administrative responsibility of bureau and office chiefs under
the Act. To avoid duplication and administrative confusion, the Classifica­
tion and Wage Division arranged for coordination and integration of its
staff review activities with the Civil Service Commission’s program, based
on the new act, for post-auditing position classifications. Civil Service
Commission post audits were scheduled in four bureaus of the Department,
and arrangements were made to have a staff member of the Classification
and Wage Division accompany and work with the Commission represent­
ative in each of these reviews.
EMPLOYEE PROGRAMS

Extensive practical training programs to increase the efficiency and effec­
tiveness of employee work performance were conducted throughout the
Department during the year. The various bureaus and offices conducted
continuous programs of indoctrination training for new employees, refresher
courses in typing and stenography, efficiency rating training, and supervisor
and administrative management training in both the departmental and field
services. Technical training courses were conducted in operation and
maintenance of aircraft, flight training, aviation safety, traffic control, com­
munications, meteorology, weather observation and forecasting, machine
tabulation, docket-clerk training, and trade-mark examining. All these
programs have contributed to improved employee work performance and
increased efficiency of operations. The Department also continued its coop­
eration with the Civil Service Commission in connection with the admin­

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

21

istrative 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.
The fiscal year 1950 saw the successful continuance of the Employee
Suggestion and Honor Awards programs, and the establishment of an
Efficiency Awards program in accordance with the provisions of Title X
of the Classification Act of 1949. Operation of the suggestion program
during the past year resulted in (1) the submission of 2,413 suggestions,
(2) adoption of 142 suggestions, and (3) payment of $3,177 for suggestions
which made possible an estimated annual dollar savings of $38,486 for the
Department. A new issuance, the Meritorious Suggestions Digest, which
describes briefly those employee suggestions adopted by primary units which
may have further application within the Department or in other Govern­
ment activities, was published and distributed to all bureaus of the Depart­
ment and to 23 other Federal departments and agencies. The digest is
designed to bring about wider consideration and use of worthwhile sug­
gestions, and thus to increase the effectiveness of the program in achieving
greater efficiency and economy. Exceptional and Meritorious Award cer­
tificates and gold and silver medals, and appropriate length-of-service
awards were presented to recipients at the Second Annual Honor Awards
ceremony attended by Government notables, Department officials, and
families of award recipients. This year, 18 employees were selected to
receive the Exceptional Service Award for outstanding contributions to the
public service, the Nation, or humanity; and 92 employees were selected
to receive the Meritorious Service Award for service of unusual value to
the Department.
STATISTICS

The official tabulation of organization and employee strength of the
Department from its establishment in 1903 through fiscal year 1950 is
shown on table 2. On July 1, 1950, there were 49,877 paid employees in
the Department including 5,876 part-time workers (9,789 employees who
work without compensation are not included in this figure). In table 3
are shown the geographic distribution of employees by State within the
continental United States and in the Territories and possessions, and the
number and percentage of veterans included in each geographic total.
Office of Administrative Services
The Office of Administrative Services directs the application of admin­
istrative service policies and procedures throughout the Department, fur­
nishes all administrative services required by the Office of the Secretary,
the Bureau of Foreign and Domestic Commerce, and the Office of Technical
Services and provides the other primary units of the Department with all

Nl\3O

Table 2.— Employment and Organization Changes in the Department of Commerce1 From February 1903 to July 1, 19502
Bureau of Corporations 3___
Bureau of Manufactures *__
Bureau of Labor 5__________
Bureau of Lighthouses 8____
Bureau of Statistics 8_______
Bureau of Marine Inspection
and Navigation 8_________
S te a m b o a t In sp e c tio n
Service 8________________
Bureau of Fisheries 9_______
Bureau of Navigation 8_____
Bureau of Immigration 4____
Bureau of Foreign and DoChildren’s Bureau 4________
Bureau of Mines 10........ ..........
Civil Aeronautics AdminisRadio Division 11___________
Federal Employment Stabilization Board 12__________
U. S. Shipping Board
Bureau 18________________
Inland Waterways CorpoOffice of Surplus Property 14__
Bureau of Public Roads____
Maritime Administration
and Federal Maritime

1903 1904 1912 1917 1922 1925 1932 1935 1938 1939

1940

125 158 172 183 125 201 141 159 179
216
62 129
12
100 93
5,282 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 1,728 M2,687
314 344 790 978 992 1,280 3,439 985 1,347 1,329
63
1,011 958
924
212 262 321 366 358 420 643
290 397 452 462 617 1,193 936 1,200
75 82 167 230 240 192
1,211 1 658
71 280 S18 968 768 1,035 709 926 946
988
95 233 595 1,145 1,538 1,052 856 897
863
15
1,228 1,425 Î ,302 1,372 1,383 1,341
971 882
272 2,685
189
28
9
63
3,447 2,950 3,212

1941 1942 1943 1944 1945
286

366

355

365

390

1946
703

1947
958

1948 1949
728

698

1950
662

8,671 6,936 4,925 4,600 76,489 5,861 4,411 4,315 72,733 •2,849
1,521 2,097 2,781 2,415 1,924 2,160 2,285 2,628 2,645 2,455
1,013

1,190 1,720 2,267 2,326 2,311 2,262 2,522 2,809 3,288 3,112
853 946 853 824 809 2,185 2,137 1,905 1,948 1,634
1,326 1,399 1,228 1,273 1,267 1,460 1,826 2,005 2,010 1,960
6,019 8,056 10,120 11,492 10,847 12,953 14,884 17,056 18,452 18,045

3,137 2,544 2,602 2,667 2,021 1,852 1,573 1,551 783
840
5,653 6,142 6,612 6,876 6,754 7,499 7,907 7,938 7,911 7,893
4,435
4,018

6,409
'«10,125 9,210 9,964 9,613 11,355 14,889 20,608 19,964 16,284 10,388 21,560 29,669 30,206 31,743 32,838 37,247 •«36,935 >738,503 40,935 40,468 •*49,877

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

Bureau

1 1n addition to the number of regular employees listed, the Bureau of the Census also
employed the following numbers of temporary census employees to take special censuses:
1940 _ __ ___________________________ ___________ 100,000 (approximation).
19451".............................................................................................. 31,226.
1949 .................................................................- .......................... 6,424.
i95oi::__:........... .................................... — ................................ 12,450.
8 Consolidated with and name changed to Bureau of Navigation and Steamship Inspec­
tion, June 30, 1932, and on May 27, 1936. Transferred to Treasury Department Mar. 1,
1942, by Executive Order 9083.
9 Transferred to Interior Department July 1, 1939, by Reorganization Plan II.
19 Transferred to Interior Department Apr. 23, 1934, by Executive Order 6511 of Feb.
22, 1934.
11 Transferred to Federal Radio Commission July 20, 1932, by Executive Order 5892.
12 Transferred to National Resources Planning Board by Reorganization Plan I, July 1,
1939.
18 Transferred to U. S. Maritime Commission Oct. 26, 1936, by act of June 29, 1936 (49
Stat. 1985).
m Transferred to Reconstruction Finance Corporation Nov. 5, 1945, by Executive Order
9643.
18 Only total figure available.
16 During the 1946 fiscal year there were transferred to the Department of Commerce
a large portion of the Foreign Economic Administration, part of the Smaller War Plants
Corporation, the Office of Civilian Defense, and the Office of Production, Research and
Development of Civilian Production Administration. All have been liquidated and the
few continuing functions absorbed in the Department’s regular organization.
17 During 1947, segments of the Office of Price Administration, Office of War Mobiliza­
tion and Civilian Production Administration were transferred to the Department and have
been gradually liquidated.
18 This figure does not include 9,789 employees who worked without compensation for the
Department, nor are such persons included in other figures on the table. It does include
5,876 part-time workers who actually worked a total of only 1,359 man-months during June
1950,

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

l Created by act of Feb. 14, 1903 (32 Stat. 826), as Department of Commerce and Labor.
Current bureaus and offices:
Office of the Secretary------------------ 1903 to present.
Bureau of the Census____________ 1903 to present.
Coast and Geodetic Survey_______ 1903 to present.
Bureau of Standards_____________ 1903 to present.
Bureau of Foreign and Domestic 1912 to present—Act of Aug. 23, 1912.
Commerce.
Patent Office____________________ 1925 to present—transferred from Interior De­
partment by Executive order of Apr. 1, 1925.
Inland Waterways Corporation___ 1939 to present—transferred from War Depart­
ment, July 1, 1939.
Weather B ureau .._______________ 1940 to present—transferred by Reorganization
Plan IV, June 30, 1940.
Civil Aeronautics Administration...
Do.
(Aeronautics Branch, 1927 to 1934—name changed to Bureau of Air Commerce,
July 1, 1934 to 1938—transferred to Civil Aeronautics Administration Aug. 22,
1938.)
Bureau of Public Roads__________ 1949 to present—transferred to Commerce De­
partment under President’s Reorganization
Plan No. 7, Aug. 20, 1949.
Maritime Administration and Fed- 1950 to present—transferred to Commerce Deeral Maritime Board.
partment under President’s Reorganization
Plan No. 21, May 24, 1950.
2 On or about July 1 of each year. Prior to 1938, selected years only.
8 Transferred to Federal Trade Commission, Mar. 16, 1915, by act of Sept. 26, 1914
(38 Stat. 718).
.
* Consolidated with Bureau of Foreign and Domestic Commerce upon its establishment
by act of Aug. 23, 1912 (37 Stat. 407).
5 Labor functions removed and placed in new Department of Labor by act of Mar. 4,
1913 (37 Stat. 736).
.
8 Transferred to Treasury Department by Reorganization Plan II, July 1, 1939 (origi­
nally established as Lighthouse Service).

to

24

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

Table 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, 1949)
United States
Continental

Alabama_______
Arizona_________
Arkansas______
California___________
Colorado________
Connecticut_______
Delaware________
District of Columbia_____
Florida___________
Georgia_____________
Idaho_________
Illinois________ .
Indiana____________
Iowa_______
Kansas____________
Kentucky__________
Louisiana_________
M aine____________
Maryland__________
Massachusetts_______
Michigan___________
Minnesota________
Mississippi____________
Missouri____________
M ontana___________
Nebraska__________
Nevada___________
New Hampshire___
New Tersey_____________
New Mexico___________
New York______
North Carolina_____
North Dakota_____
Ohio____________
Oklahoma_________
Oregon____ ________
Pennsylvania__________
Rhode Island_______
South Carolina______
South Dakota_____
Tennessee____________
Texas_______________
U tah................................
Vermont___________
Virginia_____________
Washington__________
West Virginia______________
Wisconsin_____________
Wyoming_______________
Territories and Possessions
o f the United States

Alaska____________
Balboa, C. Z________
Canton Island___________
Guam______________
Hawaii________________
Midway_______________
Palmyra_____________
Puerto Rico_______
Swan Island, W. I ________
Virgin Islands___________
Wake Island_____________
Total^ (Territories and possessions of

Total number
of employees

Veterans
Total number 10-pt. disabled

veterans

586
259
245
2,405
602
137
33
11,600
852
1,080
278
497
306
553
247
740
144
3,494
369
498
363
334
1,847
459
354
173
68
190
382
1,920
499
172
737
611
690
676
64
229
152
534
2,217
366
72
1,109
1,289
163
244
238
42,194

117
1,204
82
4,275
549
501
514
218
133
193
116
377
79
1,117
208
285
178
130
691
222
144
93
30
106
180
1,053
222
79
436
290
325
267
33
120
83
298
1,100
199
33
515
595
71
105
128
18,511

1,907
136
71
45
674
18
24
168
7
15
73

892
105
41
24
346
8
10
103
5
12
44

26

1

44.4
41.7
61.3
71.4
80.0
60.3

3,138

1,590

62

50.7

50.1
1
477

36.9

51.0

24
144
15

55.8
54.8
44.5

12

39.5
52.4
54.6
55.8

54

45.8
46.2
43.0

17
1,868

i
23

43.9
46.7
77.2
57.7

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

25

administrative services which such units have not been authorized to furnish
themselves.
Principal organizational components of the Office of Administrative
Services are the Division of Printing Services, the Division of Operating
Facilities, the Special Services Staff, and the Office Services Staff. Major
accomplishments of each are detailed below.
DIVISION OF PRINTING SERVICES

The Division of Printing Services is charged with reviewing and co­
ordinating the printing, visual services, duplicating, and forms standardi­
zation for the Department. During the year it also performed similar
services, in one form or another, for other agencies not a part of the
Department. Principal among these were the Air Coordinating Commit­
tee, the Atomic Energy Commission, the Council of Economic Advisors,
the Federal Trade Commission, and the National Security Resources Board.
Several special printing programs were continued and several new pro­
grams inaugurated during the fiscal year. Of those continued, the most
outstanding was the Seventeenth Decennial Census. This program in­
volved the expenditure of $1,500,000 covering the cost of approximately
1,500 orders and involving nearly 1 billion separate items. This program
will continue during the fiscal year 1951. New printing programs in­
augurated were those of the Bureau of Public Roads and the Maritime
Administration.
The Division is composed of the following sections: The Printing Section
which handles all relations with the Government Printing Office; the
Duplicating Section; the Distribution Section which distributes, either
internally or by mail or mail-messenger service, copies of all material issued
by the Department; and the Forms Standardization Section which is charged
with the review, standardization, and design of all forms.
The Division works very closely with the Office of Publications in order
to carry out general policy as laid down by that office with regard to format
of its publications, posters, exhibits, photographs, and all other visual media.
DIVISION OF OPERATING FACILITIES

During the fiscal year 1950 the Purchase and Supply Section placed
7,037 orders involving the expenditure of approximately $ 1,087,000. There
were 227 contracts approximating $7,308,385 submitted for examination, by
the several bureaus of the Department.
Also, during this fiscal year, 4,863 typewriters were repaired, overhauled,
or cleaned by the Typewriter Repair Shop; the Stock Unit issued approxi­
mately $210,710 worth of stock to the various bureaus and offices of the
Department; and 6,450 shipments, weighing a total of 425,964 pounds,
were made by the Receiving and Shipping Unit.
A total of 586 “reports of excess property” and “reports of survey” were
acted upon by the Property Unit containing an estimated acquisition value

26

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

of $2,668,672. Total fair or scrap value of property declarations by the
Department to the General Services Administration was $363,546 and
otherwise disposed of $350,685. Affirmations for property lost, destroyed,
or stolen were acted upon in the amount of $222,645. An estimated
$235,415 in direct savings was affected for the Department by filling 556
requisitions through the Property Utilization Program. Forfeited and
seized property amounting to $10,000 was acquired for use by the Depart­
ment, without cost.
During the fiscal year the Department Library provided 125,046 refer­
ence and loan services to patrons, prepared 228,796 records and processed
and handled 450,612 publications. The cataloged collection numbered
342,194 books and bound publications. There were 3,071 periodicals cur­
rently received, including both foreign and domestic, official and nonoffi­
cial publications. Patrons who came in person for service numbered 26,441,
of these 2,868 were from other Government agencies, 240 from nongov­
ernment and international agencies, including businessmen and the general
public, and 538 from universities and colleges. The number of reference
requests answered, including those received by telephone and those which
came by mail from many States and several foreign countries totaled 25,340.
The reorganization of the book and periodicals stacks was continued and
unnecessary duplicate publications from both the cataloged and uncataloged
collections were discarded.
The Business Service Check List, listing publications of the Department,
was issued each week and the Library Reference List of selected acquisitions
was published each month. Approximately 94,000 catalog and index cards
were prepared for use in the Department of Commerce List of Publications.
As a whole, the Department is larger in this annual report than it was
in the last report. The Department now occupies 3,439,572 square feet
of space located in 30 buildings against last year’s figure of 2,856,710 square
feet located in 21 buildings. This increase was brought about by the trans­
fer of the Bureau of Public Roads and the Maritime Administration to the
Department and the expansion of the Census Bureau for the 1950 Decennial
Census.
SPECIAL SERVICES STAFF

The Special Services Staff maintains an Information Center for the public
and the bureaus and offices of the Department, whether housed in the main
Commerce Building or another of 18 locations in Washington. In addition
to the organizations comprising the Department, it performs like services for
all other Federal contingents housed in the Commerce Building. These
embrace the Air Coordinating Committee, Air Navigation Development
Board, Inland Waterways Corporation, the new Government Patents Board,
and other interdepartmental and quasi-official groups in which the Depart­
ment is actively interested.

ANNUAL REPORT OP THE SECRETARY OF COMMERCE

27

Organizational charts and directories for all component parts of the
Department, necessary for the efficient operation of the Information Center,
and 11,000 or more current personnel records essential to the locator system,
were maintained.
The volume of work in the Information Center was increased during the
past fiscal year by the addition of records covering the Bureau of Public
Roads, transferred from Interior to Commerce on August 20, 1949. The
Maritime Commission and the Federal Maritime Board, likewise, were
made parts of the Department under date of May 23, 1950, their charts and
personnel records, however, still are only partially in hand, and conse­
quently service to them has been limited.
During the past fiscal year the Information Center handled more than
200 visitors a day, and furnished answers to, or referred to other sources,
over 700 telephone inquiries each day. These questions covered a broad
field, not necessarily confined to the functions of this Department, and
frequently required research, especially in cases of requests from Members
of Congress and of resident foreign missions. The number of visitors from
other countries was noticeably larger than in previous years.
OFFICE SERVICES STAFF

The Office Services Staff provides a complete mail, file, and routing
service for the Office of the Secretary, the Bureau of Foreign and Domestic
Commerce, and the Office of Technical Services. It also furnishes internal
pickup and distribution and special messenger service for the Office of the
Secretary and to points outside the Commerce Building. The staff handles
an average of 225,000 pieces of mail per week altogether. This staff also
controls the motor pool, consisting of passenger cars, station wagons, and
trucks. The teletype station servicing the Department is also under its
jurisdiction.

BUREAU OF THE CENSUS

For the seventeenth time since the founding of our Government, a census
of the entire population has been successfully completed. This under­
taking involved the visiting of almost 46 million homes by a force of about
132,000 enumerators to obtain information on 150.5 million persons, 5.6
million farms, and 45.7 million dwelling units. Information on irrigation
and drainage enterprises was also obtained. Similar information was also
obtained for the Territories and possessions of the United States. The
compilation of the results of these censuses was just beginning at the end
of the year.
In addition, the field canvass of more than 2/2 million retail, wholesale,
and selected service establishments for the 1948 Census of Business was
completed and preliminary reports for each State and county were issued
during the year. Final reports of the 1947 Census of Manufactures were

28

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

made available except for two volumes which were at the Government
Printing Office. Censuses of Business and Manufactures covering the
year 1949 were taken in Puerto Rico at the request and expense of the
Puerto Rican Government. Planning for the 1952 Census of Govern­
ments was started.
The various current statistical series were continued with minor modi­
fications. An annual survey of manufactures, covering 1949, was taken for
the first time. Other current statistical reports covered foreign trade,
population totals and characteristics, State and local government finances
and employment, retail and wholesale trade, industrial data, and other
subjects.
SEVENTEENTH DECENNIAL CENSUS

F ield O pera tio n s . A total of 491 field offices were used for the
decennial census field operations. The 457 district offices (including 67
permanent offices and 239 that had been used for the Census of Business)
reported to 14 area offices. Two census area offices and 18 district offices
were established in the Territories and possessions to conduct the enumera­
tion in these outlying areas. Large-scale training of the field organization
began in January with the selection of experts in population, housing, and
agriculture who trained a group of 300 expert trainers, who in turn were
responsible for instructing the 8,700 crew leaders. The crew leaders were
used to recruit, train, and supervise the 132,000 enumerators who covered
the 230,000 enumeration districts. A staff of approximately 7,000 clerks
was engaged in the field to edit and check schedules, to prepare preliminary
population announcements, and to handle necessary administrative matters.
The questionnaires and procedural materials needed for this census were
determined in final form and were printed and distributed before the end
of February. By the first week of February, all field offices were open and
the staff was participating in the preliminary activities for the Seventeenth
Decennial Census. Virtually the entire enumeration in continental United
States had been completed by the close of the fiscal year. The enumeration
in the Territories and possessions was also completed by that time.
Furnishing supplies and work materials to 491 field offices which were
active for such a short period of time, was a major problem. Appropriate
quantities of initial office supplies were determined in advance, were pre­
packaged by the Federal Supply Service at various centers, and forwarded
to each office when the office was opened. Other package units of standard
forms and other materials were prepared and sent to each office by the
Bureau. Approximately 230,000 enumerator portfolios were assembled
with the specific forms, schedules, identification items, maps (400,000 in
all), and administrative records as required for each enumeration district.
The agriculture self-enumeration schedules, which were used in 41 States,
were prepared in bundles in Washington and Chicago, addressed to in­

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

29

dividual postmasters, and turned over to the Post Office Department for
delivery to farmers through 29,800 post offices. The farmers to whom
these schedules were delivered were requested to fill in the information and
hold the forms until the enumerator came to their homes, thereby expediting
the gathering of agriculture information.
P ublic R e la tio n s . The successful conduct of the census was expedited
by the fine cooperation of the public, who were informed of the purposes
and methods of the census through a public relation program which extended
over 2 years. Until January 1, 1950, informational materials were dis­
tributed to press wire services, correspondents, newspapers, radio and tele­
vision stations, magazines, business and trade papers, agricultural periodicals,
and other media of mass communication. Later the 491 field offices were
supplied with kits of materials for newspapers, radio stations, and public
speakers for local use. The Advertising Council, Inc., cooperated in many
ways. For example, the Council prepared and distributed to newspapers
a kit of advertising materials pointing up features of the census and urging
public cooperation. The Department of Agriculture cooperated in the
distribution of a kit of 50 releases designed for local use by more than 2,000
county councils and county agents of that Department. With the coopera­
tion of the National Education Association and the United States Office of
Education, more than 60,000 copies of a booklet on the census were sent to
school teachers for use in classroom projects.
S pecial P rograms . A s an integral part of the decennial census, certain
areas were set aside for special treatment to obtain experimental data on
the relative efficiency of alternative enumeration procedures under actual
field conditions and on the quality of the census results. For example, in
part of one district the enumeration was carried out by school teachers
in an effort to determine the advantages and disadvantages of using this
type of field organization; in 3 districts comparative tests were conducted
using 2 alternative methods of enumeration involving the use of a separate
schedule for each household as against the use of the regular line schedule,
on which provision is made for enumerating 30 individuals. In other
districts, the assignments of approximately 1,500 enumerators were made
in such a way as to permit comparison between the results obtained by
different types of enumerators, so that the effect of such enumerator char­
acteristics as age, sex, education, employment background, and attitude
toward job, could be measured. Data were also obtained so that the
effect of the enumerator on the responses obtained could be evaluated.
Finally, a post enumeration survey was planned and field work was started
involving the careful recanvassing of about 4,000 small areas throughout
the United States by specially trained enumerators to determine the pro­
portion of persons, dwelling units, and farms either missed or improperly
included in the regular census enumeration. The post enumeration survey
also involves reinterviewing about 25,000 households and 10,000 farms to
915669— 51 -------3

30

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

get information which will enable the Bureau to evaluate the quality of the
answers appearing on the regular census schedules for selected questions
and to find reasons for discrepancies.
A Survey of Residential Financing was undertaken to obtain information
needed for the Census of Housing; the sample design and enumeration pro­
cedures were completed early in 1950 and the field work was under way
before the end of the fiscal year. Contracts were made with 217 local hous­
ing authorities to make advance tabulations from the Census of Housing for
selected units defined as substandard by Public Housing Administration.
Contracts were also made with urban redevelopment agencies of three
cities which needed advance block tabulations from the Census of Housing.
In order to present statistics for areas larger than counties, but smaller
than States, State economic areas were developed for use in presenting
results from the Censuses of Population, Housing, and Agriculture as well as
from other sources. The Bureau of Agricultural Economics of the Depart­
ment of Agriculture and other agencies cooperated in the establishment of
these areas.
OTHER MAJOR CENSUS OPERATIONS

1948 C e n s u s of B u s in e s s . The field canvass and the editing and
coding of 1948 Census of Business reports were completed. Preliminary
data were issued for all counties in the United States and for Alaska and
Hawaii. A series of preliminary State reports and a number of special
reports summarizing the preliminary data presented in county releases were
also issued. Final State bulletins, a series including reports on a number
of specific subjects, and a series of trade bulletins were being prepared.
The post enumeration survey for the 1948 Census of Business was carried
out in November 1949. This survey was designed primarily to measure
the accuracy of coverage and to test the effect of the procedures used in the
census; in addition, this survey collected information on expenditures for
new construction and new equipment in 1948.
1947 C e n s u s of M a n u fa c t u r e s . Most of the final reports of this
census were completed and issued, including 70 pamphlets covering about
400 industries; 49 State reports; Statistics by Industry (vol. I I ) ; and Sta­
tistics by States (vol. III). The General Summary (vol. I) and the Prod­
uct Supplement were at the printer’s.
A check on the coverage of the 1947 census by means of an area sample
survey was completed. Indexes of the physical volume of manufacturing
output for 1947 relative to 1939 were being prepared for future publication.
1952 C e n s u s of G o v e r n m e n t s . By the end of the year, tentative plans
had been prepared as to subject coverage, basic procedure, timing, and
form of publication of most of the basic data to be collected by the 1952
Census of Governments.

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

31

A bill “to provide for a periodic census of governments” was prepared
and by the end of fiscal 1950 the measure (H. R. 7265) had been passed
by the House and reported favorably by the Senate Committee on Post
Office and Civil Service. It subsequently became law (Public Law 767,
81st Cong., approved September 7, 1950).
CURRENT STATISTICS

1949 A n n u a l S urvey of M a n u fa c tu r e s . A survey covering the activ­
ity of manufacturing establishments during 1949 was taken on a mandatory
basis with funds provided by the National Security Resources Board. All
large plants and a sample of small plants were covered. By the end of the
fiscal year, reports had been received from virtually all establishments
included in the survey.
I n d u st r y S tatistic s . Fifty-four commodity surveys were conducted,
of which 31 were on a monthly basis, 7 on a quarterly basis, and 16 on an
annual basis. In addition, one monthly and two annual surveys were con­
ducted on a service basis with funds provided by sources outside the Bureau.
F oreign T rade S tatistics . The release of current information on the
foreign trade of the United States was continued. Plans were being for­
mulated for the withholding from publication of foreign trade information
which would affect the security of the country.
P o pulatio n S tatistics . Estimates and projections of population for
the United States, States, Territories, and Possessions- and certain other
areas were issued throughout the year. The Bureau’s Current Population
Survey produced monthly estimates of the labor force,- employment, unem­
ployment, and various related data. For example, information was pub­
lished on school enrollment, marital status and characteristics of households,
internal migration, and income of families and persons. At the request of
other Government agencies, data were obtained on orphans, farm wage
workers, sugar supplies in private households, and other items.
I n ternatio nal S tatistic s . The Bureau intensified and expanded its
program of international cooperation with foreign governmental and non­
governmental agencies. Almost 200 foreign census and statistical officials
from 50 countries observed and studied our census methods. Included in
this group were 27 chiefs or directors of foreign statistical offices as well as
36 representatives of foreign private industry.
P erso n al C e n s u s R ecords . The demand for personal information
from census records continued at a high rate. Information was supplied in
108,484 cases in response to requests for purposes of establishing claims for
Social Security benefits, retirement, derivative citizenship, and other
purposes.
PERSONNEL

At the close of the fiscal year, the Bureau had 12,702 employees. Of
these, personnel in the departmental service consisted of 2,311 permanent

32

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

employees and 2,717 holding indefinite or temporary appointments. The
field staff consisted of 7,676 employees, almost all of whom held strictly
temporary appointments, with compensation on a per diem or per hour,
when actually employed, basis. Peak employment during the year was
reached in April 1950 when the Bureau had 150,319 employees, of whom
147,264 were employed in the field offices and on the Seventeenth
Decennial Census program.

CIVIL AERONAUTICS ADMINISTRATION
During the fiscal year 1950, excellent progress was made in all programs
of the Civil Aeronautics Administration, in both domestic and international
fields.
A IR NAVIG ATIO N AIDS

Important advances were made in implementing the “common system”
of air traffic control and navigation to benefit all users of air space—civilian
and military. At the end of the fiscal year, of the approximately 400 very
high frequency omnidirectional radio ranges (VOR) required to cover
the.United States, 270 had been fully commissioned, 30 others were operat­
ing- on a test basis, and construction or relocation of an additional 39 was
begun. A total of 94 instrument landing systems (ILS) had been fully
commissioned and 4 were operating on a test basis at the close of the year.
Radar was coming into wider use in civil aviation. Airport surveillance
radar, which gives the traffic controller a continuous “picture” of air
traffic in his area, was purchased for use at 49 airports with high traffic
density. Precision approach radar, which “sees” the airplane as it comes
down toward the airport for a landing and enables the ground controller
to advise the pilot of any necessary changes in heading or altitude, was
contracted for to supplement the surveillance equipment at 22 airports.
The. two types of radar, used together, constitute a “ground controlled
approach” system, or “GCA.” Four such installations were operating at
New York La Guardia, Chicago Municipal, Washington National, and
Los Angeles International Airports, and one at Atlanta was operating on a
test basis.
Procurement contracts were awarded for a total of 460 complete units
of distance measuring equipment (DME) designed to give accurate infor­
mation as to an aircraft’s distance from the airport runway or the
omnirange.
O

'

FEDERAL AID AIRPORT PROGRAM

By June 30, 1950, the end of the fourth fiscal year of the 12-year, $520,000,000 Federal aid airport program, the Administrator of Civil Aeronautics
had approved tentative allocations for 1,770 projects at 1,132 airport
locations, amounting to $142,122,302, to be matched by sponsors’ contribu­

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

33

tions in the amount of $152,189,916, making a total program of $294,312,218.
As of the same date, the Administrator had entered'into actual grant agree­
ments for 1,378 projects at 898 locations, involving $122,451,025 in
Federal funds.
SAFETY PROGRAM

In the field of safety, increased emphasis was placed on closer industry
relations to increase self-regulation, and training to keep personnel abreast
of the rapid technological advances in the aviation industry.
Indicative of the increased complexity in aircraft production problems
were the advances made in engine certification. Of the 24 new engine
models approved, 2 were turbine, with 5,000 pounds thrust, and 1 was a
rocket engine having 1,000 pounds thrust per second for 12 seconds. _In
addition, 3 turbo-jet engines were being readied for civil use during .the
coming year.
An intensive program was completed to prepare CA/^personnel and the
aviation industry for the problems faced in the civil certification of'jet
transports.
Undoubtedly, one of the contributing factors to the excellent safety
record of the scheduled air carriers during 1949 was the emphasis placed by
the industry and CAA on preventive maintenance. Effort was also ex­
pended on improving the maintenance standards of the irregular air
carriers and in establishing standards for their operation as nearly identical
to those of scheduled operations as practicable.
Toward greater safety in private flying, the use of modem radio naviga­
tional aids and approved safety devices such as stall warning indicators
and crosswind landing gear was encouraged.
RESEARCH AND DEVELOPMENT PROGRAMS

Firms engaged in industrial flying operations numbered approximately
2,000, performing such activities as dusting, spraying, seeding, patrolling,
and some seventy-odd other jobs. The CAA and the United States Depart­
ment of Agriculture, in cooperation with the National Flying Farmers Asso­
ciation and other organizations, sponsored the development of an agricul­
tural airplane prototype. Texas Agricultural and Mechanical College con­
tracted for the development work and the aircraft was due for flight testing
by the end of 1950.
At the Technical Development Center at Indianapolis, investigations
of baggage compartment and power plant fire hazards were conducted.
The first experimental self-sealing, breakaway fuel line coupling, which will
prevent fuel spillage in the event of a crash, was developed and tested. A
flammability reference scale was developed to aid industry in developing
safer and less flammable lubricating oils and hydraulic fluids. A method
for testing flexible and ruptureproof fuel tanks was developed and sub­
mitted to the industry.

34

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

The Aeronautical Center at Oklahoma City made extensive studies in
connection with the high incidence of head injuries in personal-type aircraft
and, to eliminate as much of this hazard as possible, designed a practical
shoulder harness which is now being tested by one of the large manufacturers
of personal-type aircraft. A major contribution to airline safety should
result from the center’s studies of explosive decompression, designed to pro­
tect passengers in pressurized cabin accidents and to improve facilities for
supplying emergency oxygen to the passengers.
In the field of aviation education, assistance was given to all 48 States,
the District of Columbia, and the Territories of Alaska and Hawaii, at the
request of State and local school authorities. Instructional material and
information for aviation education programs were also sent, on request, to
England, Sweden, Mexico, Japan, New Zealand, Greece, Switzerland, India,
South Africa, and Australia.
WASHINGTON iM TIO N AL AIRPORT

The number of scheduled airline passengers enplaning and deplaning
at the Washington National Airport, operated by CAA, during the fiscal
year reached a new all'time high of 1,412,254. This is an increase of
101,332 over the previous high and shows an increase of approximately
105 percent during the past 5 years.
INFORMATION SERVICES

Model airport exhibits were sent to the International Bicentennial Expo­
sition at Port-au-Prince, Haiti, apd the International Trade Fair at Izmir,
Turkey.
In cooperation with the Department of Defense, an educational campaign
was undertaken to encourage the filing of flight plans by pilots entering
defense areas.
INTERNATIONAL

Today, 7 United States scheduled air carriers, using 523 aircraft, serve
239 foreign points on all the continents of the world and are certificated to
operate 203,678 miles of international routes. In addition, there are 83
irregular United States flag carriers operating 175 aircraft. Good progress
was achieved in providing essential ground services and facilities on the air
routes served by these carriers.
United States technical assistance to foreign governments proved of great
importance in promoting the development of underdeveloped, friendly
countries, in broadening markets for United States manufacturers, and in
increasing flexibility and: economy of operatons of United States flag carriers
through international standardization of procedures and equipment.
: Several hundred demonstrations for foreign governments and industry
representatives were conducted in the European area with a CAA airplane
using the latest in United States electronic navigation, equipment adopted by

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

35

the International Civil Aviation Organization as an international standard.
More than 20 instrument landing systems have been installed in the Euro­
pean area and periodic checks are performed by the CAA crew at the invita­
tion of the governments concerned. The first instrument landing system
in Central and South America was installed at Buenos Aires. Five VOR
facilities have been loaned to European countries for evaluation on their
airways.
Facilities necessary for extension of Pan American World Airways routes
across Yugoslavia to Greece were installed by the Greek Government and
a CAA mission.
The CAA assisted in every way possible in establishing the civilian airlift
operations across the Pacific to the Korean theater, which began during the
last week of the fiscal year, and in other military requirements when requested
to do so. CAA’s air traffic control and communications system collaborated
with the military on provisions for identification of flights into strategic
areas.

COAST AND GEODETIC SURVEY

The Coast and Geodetic Survey performs a wide variety of essential
services for the promotion of commerce, for the development of our national
resources, and for the compilation of certain basic engineering and scientific
data. Normal functions of the Bureau, which include marine, aeronautical,
geodetic, geomagnetic, and seismologic functions, play an important part in
the protection of life and property at sea and in the air. During the year
major emphasis was given to the extension of surveys in Alaska in view of
the strategic importance of the area.
HYDROGRAPHY AND TOPOGRAPHY

Seven of the nineteen survey vessels of the Bureau operated in the western
Aleutian Islands, along the Alaska Peninsula, in Bristol Bay, in Prince Wil­
liam Sound, and in southeast Alaska, making surveys and collecting basic
data for the compilation of new nautical charts and for modernizing existing
charts. A field party along the Arctic coast continued with surveys re­
quested by the armed services. Much of the work in Alaska is in isolated
regions and each survey party must operate as an expedition.
Other surveys were carried on at various places along the Atlantic, Gulf,
and Pacific coasts as part of a program of modernizing inshore surveys.
Wire-drag investigations of sunken wrecks along the Maryland and Dela­
ware coasts were continued.
Aerial photographs, as a preliminary to the compilation of topographic
maps, were taken of coastal areas along the Atlantic and Gulf coasts and in
Alaska and of 44 airports in the United States, using the Bureau’s 9-lens
camera. Six airport survey parties made original or revision surveys at 120
airports for use in compiling instrument approach and landing charts and

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ANNUAL REPORT OF THE SECRETARY OF COMMERCE

airport obstruction plans. Plans for 62 additional airports were published
during the year, bringing the number available to 363.
GEODESY, TIDES, AND MAGNETISM

The basic network of horizontal and vertical control was extended in
various parts of the United States and in Alaska. Major field activities
consisted of a continuation of .surveys in the Missouri River Basin, for flood
control and reclamation studies, and in western Alaska. Several special
geodetic field projects were in progress to provide data for studies of hori­
zontal earth movement in earthquake regions ; settlement in the Long Beach,
Calif., area; and deflection of the vertical from gravimetric observations.
Tidal observations were made at 137 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. The comprehensive current survey of Tampa
Bay, Fla., was completed and the compilation of tidal current charts for the
area begun. A current survey at the entrance to Grays Harbor, Wash.,
was completed and a current survey in Rosario Strait, Wash., was under­
taken. The program of collecting temperature and density of sea water
data at tide stations was extended to include 25 additional stations, bringing
the total to 123.
Study of the earth’s magnetism is a continuing function of the Coast and
Geodetic Survey. The magnetic survey of the United States furnishes data
for determining the geographic distribution of the magnetic elements for
use in charting and for retracting old property lines. Continuous changes
in the principal magnetic elements were recorded at seven magnetic observa­
tories. Compilation of the 1950 world isogonic chart was completed, and
the Bureau continued its assigned function as the repository for world
magnetic information.
SEISMOLOGY

The seismologic program of the Bureau is on a broad cooperative basis.
A network of 53 strong-motion seismographs is operated in the seismically
active western areas. In addition, sensitive seismographs are operated at
key stations directly or in cooperation with universities and private institu­
tions, and liaison is maintained with foreign stations and international
seismological associations for the exchange of seismologic data. Through
these and other communications facilities provided by the Department of
State and other agencies, earthquake-location activity resulted in the receipt
of 8,500 earthquake messages and the announcement of the locations of
570 earthquakes. The most notable United States earthquake during the
year was a disturbance that sheared off about 100 oil wells in the Terminal
Island region of Long Beach, Calif.
The system for warning the Hawaiian Islands and other areas of ap­
proaching seismic sea waves was maintained. The system is centered at
Honolulu and employs the reports of three of the Bureau’s seismograph

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

37

stations, two private stations, several tide stations of the Bureau, and military
and civil communications networks. Several successful operations of the
system were carried out following submarine earthquakes, but no damaging
sea waves developed.
NAUTICAL AND AERONAUTICAL CHARTS

Production and distribution of nautical and aeronautical charts and
related publications continue to be major activities of the Bureau. Im­
provements in both classes of charts are constantly being made. New navi­
gation techniques which employ electronic methods have necessitated the
design of new types of charts and the modernization of existing charts.
A total of 911 different nautical charts, ranging from large-scale harbor
charts to small-scale sailing charts, was printed during the year. Nearly
900,000 copies of nautical charts were distributed, requiring over 8,000,000
hand corrections for essential information to bring the charts to date of
issue. Loran lines of position have been added to many of the offshore
charts along the Atlantic and Pacific coasts, and this program is being
extended to the larger-scale charts for use in inshore and coastwise naviga­
tion. The program of charting the Gulf Intracoastal Waterway was
continued. Of the 33 charts to be published of the waterway, 18 have
been completed and 7 were nearing completion at the end of the year.
To meet the needs of civil and military aviation, the Bureau has provided
several series of aeronautical charts, totaling 914 charts in all. Important
improvements made in the sectional aeronautical charts include the addi­
tion of omnirange data on the face of the chart and a tabulation of airport
and other navigational information on the reverse side. Four of a new
series of seven aeronautical route charts to cover the United States were
completed. These charts, at a scale of 1: 2,000,000, are specially designed
for long-range navigation to meet the requirements of high-speed air
carriers operating at high altitudes.
TECHNICAL IMPROVEMENTS AND COOPERATION

A number of improvements were made in instruments and techniques
that will result in higher accuracy and greater efficiency in the work of the
Bureau. Notable among these was the design of a new master controller
for the electronic position indicator for use in offshore hydrographic sur­
veying. Performance tests have indicated that, because of the greater
circuit stability of this model, fewer checks are required. In the field of
photogrammetry a number of refinements in techniques have been made
that will result in an acceleration of topographic mapping of difficult
terrain. Another notable improvement was the development, in coopera­
tion with the Naval Ordnance Laboratory, of a new induction-type mag­
netometer adapted to aircraft use, which opens up the possibilities of airborne
magnetic surveying of ocean areas and other regions inaccessible by ordinary
methods. Wider application has been made of automatic computing ma­

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ANNUAL REPORT OF THE SECRETARY OF COMMERCE

chines to the activities of the Bureau, which require large volumes of
computations and tabulations.
The Bureau continued its cooperation with national agencies and with
foreign governments and international organizations through new and
continuing interagency projects, cooperative agreements, liaison, exchanges
of information, and training of personnel, as provided by existing law. It
participated for the tenth consecutive year in the program of cooperation
with the American Republics, sponsored by the Department of State.
During the year 11 new training grants in Coast and Geodetic Survey
methods were awarded to representatives from 9 countries.
Under the Philippine Rehabilitation Program, the Bureau maintained
a staff of experts in the Philippines to assist in field survey operations, to
aid and advise in the organization of a Philippine Coast and Geodetic
Survey, and to train selected groups of Filipinos. At the end of the year,
this program was terminated and all operations transferred to the
Philippine Government.
PERSONNEL CHANGES

The Department notes with regret the retirement from active service
on April 7, 1950, of Rear Adm. Leo Otis Colbert, director of the Coast
and Geodetic Survey. Admiral Colbert’s service with the Bureau dated
back to 1907 and as director to 1938. On May 16, 1950, Admiral Colbert
was succeeded as director by Rear Adm. Robert F. A. Studds.

BUREAU OF FOREIGN AND DOMESTIC COMMERCE
The Bureau of Foreign and Domestic Commerce was created to foster,
promote, and develop the foreign and domestic commerce of the United
States. It is currently composed of the Office of Business Economics, Office
of Industry and Commerce, Office of International Trade, and Office of
Field Service.
The Bureau discharges its functions both through direct service to the
business community and through its specialized contribution to Government
policies and programs affecting the economy and American business. These
functions are carried out on the basis of (1) a fund of statistical and other
information, relating to business and to the economy generally, which is
evaluated, interpreted, and analyzed for widest possible use; (2) continuing
surveys of trends through which the changing needs of business are antici­
pated and on the basis of which the Bureau’s programs are modified; and
(3) an intimate knowledge of industry and trade both at home and abroad.
Office of Business Economics
The national economy continued to operate at a high level throughout
fiscal year 1950. By use of its business indicators—national income, na^
tional product and the balance of international payments—the Office of

ANNUAL REPORT OF THE SECRETARY OF: COMMERCE

39

Business Economics was able to determine the nature and measure the extent
of the recession which had influenced business programming and economic
activity after the inflation of 1948.
A period of relative stability followed the end of the general business de­
cline early in the first half of fiscal 1950. Thereafter, business optimism
was gradually regained as favorable reports on the business outlook indicated
that high production, income, and employment would continue for the
foreseeable future. By early 1950 a strong upward trend had set in and
the national economy was again advancing toward new peaks as the Korean
incident broke upon the world at the end of the year.
CURRENT BUSINESS ANALYSIS

Business interest in OBE’s monthly journal—Survey of Current Business—
continued to increase, with paid circulation mounting to the highest point
in the last decade. This reflected 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 OBE. While providing a succinct report on the current business situa­
tion plus interpretative economic articles of lasting significance, the Survey
of Current Business also furnishes private enterprise and Government with
40 pages of business statistics covering more than 2,600 series on a recurring
basis. Included in this magazine each quarter are the national income and
national product figures; the balance of international payments—with a
breakdown of transactions by major areas; surveys of business intentions
to invest in new plant and equipment; and data on the size of the business
population, incorporating the rate of establishment and discontinuance.
On a more frequent basis of reporting are such other vital business facts
as retail sales, personal income and its source, business inventories, dividend
payments, and new orders.
This year’s presentation of the OBE annual economic review, entitled
“The Economy in Adjustment,” included an over-all appraisal of business
and economic developments in calendar 1949 supported by incisive analyses,
statistics, and graphic material on income, prices, production, agriculture,
construction, investment, employment, and foreign and domestic trade. '
Detailed coverage of the national income statistics, inaugurated with the
July 1947 National Income Supplement, was continued with the publication
of comprehensive data through 1949. The July 1950 National Income
number of the Survey of Current Business, when used with the previously
published Supplement, provides a complete and annotated record of na­
tional income and product statistics back to 1929.
Sales of the 1949 Statistical Supplement to the Survey of Current Busi­
ness have broken all previous records. That publication provides an his­
torical record of the more than 2,600 statistical series appearing monthly
in the magazine itself. In the March 1950 issue of the Survey, monthly

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ANNUAL REPORT OF THE SECRETARY OF COMMERCE

averages for the year 1949 were included for use in conjunction with data
appearing in the Supplement. Quicker and more efficient research is
expected to result from this innovation, which will be continued.
BALANCE OF INTERNATIONAL PAYMENTS

Foreign economic developments were reflected 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 this series of
quarterly reports OBE presents the facts as to the amounts the United
States is contributing to and receiving from other nations. Current account
transactions included are merchandise trade, transportation, travel, income
ondnvestments, private and governmental services and the various foreignaid programs. Capital movements and the exchange of gold are also
recorded.
The balance of international payments provides essential information for
use in determining the impact of international transactions on the domestic
economy. Together with other measures, such as national income and
product, these accounts also present basic data necessary for evaluating
the extent and character of the existing international disequilibrium and
of cumulative progress toward stabilization.
An authoritative record of United States participation in world trade
dating from World War I has now been provided in OBE publications
which are still currently available—the wartime bulletin entitled “The
United States in the World Economy” and two recent reports on “Inter­
national Transactions of the United States during the War, 1940-45” and
“The Balance of International Payments of the United States, 1946-48.”
Interest in foreign investments increased during the year as Congress held
hearings on Point Four legislation to furnish United States technical assist­
ance in the economic improvement of underdeveloped regions. To meet
the. demand of business and government for official information in this
field, OBE published a report on the size and scope of private United States
direct investments abroad.
At the same time that developments abroad made the regular OBE data
on ..United States Government international programs increasingly timely,
OBE’s quarterly and supplementary reports were providing these facts on a
regular schedule. As the central collecting and compiling unit for reports
om all operations of the United States Government abroad, the Office of
Business Economics compiles and makes available data on Government cash
transactions, procurement activities, and rehabilitation commitments.
MARKETING AIDS

Market analysts and business economists continued to utilize the OBE
series measuring the flow of goods from producers to consumers. Current
business reports series covering manufacturers, wholesalers, and retailers

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

41

include monthly data on orders, sales, and inventories. Pertinent articles
appearing in the Survey of Current Business assayed, the demand for pro­
ducers’ and consumers’ durable goods, providing additional source material
for analysts in determining commodity trends. Another marketing study
on the relation of consumption expenditures to income sensitivity emphasized
the selectivity consumers exercise in their purchases of typical products when
income is increased or cut.
Coverage of regional economic trends was increased with the publication
of an analytical report on State income payments to individuals, which
highlighted the major changes in the geographic distribution of income
that have occurred in the postwar period and over the longer span since
1929. OBE estimates of the business population of each State were pub­
lished for the first time in December 1949.
The Nation’s housing situation was the subject of a special economic
appraisal entitled “Family Formation and the Demand for Residential
Construction.” This study pointed to the great improvements which have
been made in housing the American people during recent years and to the
continuing sources of construction demand.
OTHER ACTIVITIES

While furnishing all business with valid economic data, OBE has con­
tinued to contribute to the special needs of small business for essential
information. In the past year it has published reports on the capital
requirements, sales, and investment trends of new manufacturing firms.
Professional income studies, for use in connection with OBE’s personal
income series, have been pushed ahead with the publication of reports on
incomes of dentists and lawyers. A survey of the medical profession was
inaugurated during the fiscal year. Additional information on these and
other independent professional groups will be published as rapidly as
possible.
OBE has continued to cooperate with other agencies and the Congress
by providing background information useful in the formulation of national
economic policy. At the request of the Joint Committee on the Economic
Report it presented a monograph on “Investment and its Financing” which
was later published by the committee in connection with its hearings in
that field.
The success of the Office of Business Economics in providing a unified
statistical picture of the national economy has attracted wide attention
abroad. Economic research officials from many countries have come as
in-service trainees, under an interdepartmental program for international
sharing of technical knowledge, to study the methods developed in this
Office. More than 25 trainees from many nations were accepted for training in balance-of-payments and national income techniques during the year.

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ANNUAL REPORT OF THE SECRETARY OF COMMERCE

Office of Industry and Commerce
Early in the fiscal year, in accordance with recommendations based upon
a study which had extended over a considerable period of time, the com­
modity research of the Bureau in three industry fields was consolidated in
the Office of Domestic Commerce. On the basis of satisfactory experience
in these three areas, the process of consolidation was extended late in the
fiscal year to all industry analysis. This function was accordingly wholly
removed from the Office of International Trade and consolidated in the
other office, which at the same time was reorganized as the Office of Indus­
try and Commerce. . Because of the close relationship of export control
and commodity analysis functions, export control was also transferred to
the Office of Industry and Commerce. Activities in export control declined
substantially during the fiscal year and have been reported upon in detail
in a separate series of quarterly reports.
INDUSTRY DIVISIONS

The scope of work performed in this segment of the Office was consider­
ably broadened as the consolidation already mentioned proceeded and as
the work of the Construction and Transportation Divisions was administra­
tively associated with that of the other industry divisions. Apart from the
program changes naturally flowing from consolidation of the foreign with
domestic research coverage, the Office’s program continued along
previously well-established lines.
Under the publications program 10 of the industry divisions continued
the publication of periodic industry reports available on a subscription
basis. In the World Trade In Commodities series, in connection with the
consolidation of commodity work was transferred from the Office of Inter­
national Trade, more than 500 reports were issued. The same staff also
prepared 22 feature articles and 500 news items for the Foreign Commerce
Weekly, responsibility for which was not affected by the consolidation.
During the year, more than 200 special reports and listings of informa­
tional sources on individual commodities were released. Approximately
4,000 mail inquiries were answered monthly, in addition to a large number
of personal visits and telephone calls from businessmen. Numerous replies,
tabulations, and analyses were prepared in response to inquiries from
Members and committees of Congress.
There were also prepared in the industry divisions a large number of
statistical reports and special studies for other Government agencies,
including the Department of State, Economic Cooperation Administration,
Munitions Board, and the National Security Resources Board. These
dealt with European recovery, mobilization planning, stockpiling, and
other key programs.
Early in the year, when rising unemployment was a matter of concern,
special studies and field trips were undertaken by the divisional staffs, in

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

43

connection with the President’s program for the relief of areas of significant
unemployment. These studies and trips laid the foundation for the greatly
expanded program of Government procurement information, reported on
below in connection with activities of the Small Business Division.
Assistance was extended to the Economic Cooperation Administration
in keeping foreign producers and distributors interested in appraising po­
tentials of United States markets. Among the many additional activities
of the industry divisions note should be made of the preparation of more
than 3,000 studies for guidance of commodity specialists who were to at­
tend the International Conference on Tariffs and Trade to be held at
Torquay, England, later in the calendar year and substantial contributions
to the Secretary’s report to the President on Issues Involved in a Unified
and Coordinated Federal Program for Transportation.
MARKETING DIVISION

The continuing basic program in marketing included the collection and
analysis of data on distribution costs, price spreads, and margin, expense,
and profit ratios; the analysis and presentation of statistical data for use
in market selection and measurement and in sales promotion; and the study
of effective methods of retail and wholesale operation.
In cooperation with the Economic Cooperation Administration a series
of tours of the United States was arranged and directed for members of dis­
tribution missions from countries participating in the European Recovery
program.
Research by the staff of the Division was reflected in a series of published
reports including the following titles : “Selling in the United States Market,”
“County Business Patterns,” “Market Research Sources, 1950,” “Dry Goods
Wholesalers’ Operations,” “Government Information on Retailing,” and
“New Product Opportunities.”
The Division maintained its cooperative relationship with the distribution
industry through the National Distribution Council, the Retail Trade Ad­
visory Committee, and the Wholesale Trade Advisory Committee.
SMALL BUSINESS DIVISION

G o vern m ent P rocurem ent . The Bureau’s program for small business
was strengthened during the year under congressional recognition of the
need for such improvement and appropriation of additional funds. A
major area of expansion was that of the procurement information program.
This program received new impetus in the summer of 1949 in connection
with the President’s concern to make sure that businessmen in areas affected
by significant unemployment were kept fully aware of the possibility of using
their productive capacity in meeting Government procurement needs.
Although concern was felt for businesses of every size, it was, of course, the
smaller ones which stood in greatest need of specialized procurement in­
formation. As a result of experience in the field and negotiations among

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ANNUAL REPORT OF THE SECRETARY OF COMMERCE

the agencies concerned, formal arrangements were made on March 15, 1950,
between the Secretary of Commerce and both the Secretary of Defense and
the Administrator of General Services, under which information on bidding
for procurement contracts was to be disseminated to the business community
through outlets established by the Department of Commerce.
An earlier element in the program of procurement information, the looseleaf Government Proceurement Manual, was maintained during the year
and regularly serviced through the mailing of revised pages to the field
offices and the cooperating offices with which copies had been deposited.
The manual, which contains fully detailed information on the organiza­
tion and procedure peculiar to each of the Federal procurement agencies,
proved to be a valuable adjunct to the synopsis information on bids, enabling
businessmen to proceed in full knowledge of what was required of them and
how they could most advantageously seek procurement contracts.
F in a n c e and T axation . The field of small business finance and tax
problems was given increased attention during the year, particularly in
connection with the proposed Small Business Act of 1950, in which were
incorporated numerous proposals that had been advanced by Members of
Congress, as well as basic recommendations in this field by the President.
In the preparation of the bill that was introduced under this title, the Divi­
sion provided departmental representation on interagency working com­
mittees.
Several publications in the field of finance and taxation were revised to
reflect current conditions and additional publications in this field of value
to small business were prepared.
I n d u st r y S ize C haracteristics . An important phase of the small busi­
ness program was a research project designed to establish a description of
the business population in terms of the size characteristics of the various
recognized industries. Tentative standards for classifying firms by size
were developed for each of 452 manufacturing industries. The principal
application of such standards is in the implementation of Government poli­
cies for the aid of small business, in which a concrete and well-grounded
definition of what constitutes small business in any given industry is
essential.
M anagem ent A id s . In the field of management, the program continued
of issuing business aids and related publications on the latest and most effec­
tive techniques of management suitable for adoption by smaller firms. At
the close of the fiscal year the Government Printing Office reported the
sale of over 1,150,000 copies of 44 titles of the “Establishing and Operating”
series of booklets on as many different types of business. A considerable
number of 1-page Small Business Aids, each covering a single specific
subject, were published and found very wide use. Interested trade associa­
tions, business editors, and large manufacturers and distributors cooperated
extensively with the Department by furnishing to their respective members,

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

45

dealers, customers, and readers reproductions of these Business Aids and
related materials at no expense to the Government.
U n iversity E x t e n s io n . During the year the University Extension Serv­
ice of the Division completed a new edition of Suggested Research Problems
in Business and Economics for the use of universities in developing research
projects of value to business. Reports were received on more than 1,500 uni­
versity research studies, which will be issued for the use of businessmen as
the Compilation of University Business-Economic Research. A survey was
made during the year which disclosed that 248 schools of college and uni­
versity grade were offering special small business courses. Some 40 such
institutions were assisted during the year in establishing such courses and
the Division has in draft form a course outline and bibliography on small
business, which is intended to aid in improving the small business curriculum
in colleges and universities.
AREA DEVELOPMENT DIVISION

During fiscal 1950 the Area Development Division enlarged its service
program in area economic development, providing technical assistance
within the Department and to agencies of Federal, State, and local govern­
ments, manufacturers, industrial departments of utilities and railroads, cham­
bers of commerce, and other development organizations.
The Division provided representation on the joint committee of the
Departments of Commerce and Labor, established at the request of the
White House, to coordinate Federal activities directed toward improvement
of economic conditions in areas of acute unemployment.
Members of the staff represented the Department in the work of several
committees and subcommittees of the President’s Water Resources Policy
Commission and continued to serve as a liaison center for the Department’s
representatives on the interagency river basin committees in the Missouri
and Columbia Valleys to coordinate programs for the development of water
resources for power, navigation, flood control, and other purposes.
In May, the Division released its first major publication in the field of
regional economic development, Economic Development Atlas—Recent
Changes in Regions and States. Through schematic maps, tables, and brief
narratives, the atlas depicted major shifts in population, manufacturing, and
income and in the interrelationships among these economic items.
Technical inquiries from business firms, agencies, and individuals on
economic development and matters of plant location were serviced in
Washington and in the field and specialized consultation was provided, upon
request, to a number of State and local development organizations,
chambers of commerce, and research organizations.
The third annual seminar for planning and development agencies was
sponsored by the Division and held in Washington. Over 50 representa­
tives from development agencies, banks, utilities, and chambers of commerce
915669— 51 -------4

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ANNUAL REPORT OF THE SECRETARY OF COMMERCE

in some 30 States participated in discussions concerning industrial research,
foreign trade, public works, river basin development, housing, and related
statistics.
TRADE ASSOCIATION DIVISION

The Trade Association Division continued its 35-year history of serving
as the central source in the Federal Government for information about
national and local trade associations and other public interest groups.
National Associations of the United States, a 700-page directory, was pub­
lished in February 1950, of which, by the end of June, 7,000 copies were
sold by the Superintendent of Documents.
Studies of trade association operations were completed and a number of
reports issued during the year outlining typical association functions and
services useful to their members and to the Government.
The Division provided departmental representation on several commit­
tees to coordinate business and Government activities sponsored by the
American Trade Association executives, Chamber of Commerce of the
United States, National Industrial Council, etc., including one set up by the
Department of Defense to arrange closer ties with organized business during
the defense expansion program.
Office of International Trade
The activities of the Office of International Trade in the fiscal year 1950
were necessarily responsive to the changing foreign economic situation and
to shifting requirements of foreign economic policy. Over the course of
the year the excess of United States merchandise exports over imports nar­
rowed significantly. By the last quarter the “dollar gap” was running at a
rate about one-third that in the last quarter of fiscal 1949. This decline
resulted from further restriction in foreign buying in the United States,
which was due in large measure to the widespread devaluation of cur­
rencies in September 1949. Dollar deficits declined almost universally; an
increasing number of countries, notably in South America, the Far East,
and Africa, became net dollar earners on their trade account with the
United States. The general improvement in the foreign gold and dollar
reserve position gave some promise of the gradual relaxation of import license
and exchange controls, of the ultimate restoration of multilateral trade and
currency convertibility, and of western Europe’s capacity by the end of 1952
to sustain production and living standards without extraordinary foreign
assistance. The year seemed thus to mark a turning point for international
trade. However, with the outbreak of hostilities in Korea at the end of
the year, the world trade picture was expected to alter greatly.
ANALYTICAL AND INFORMATIONAL SERVICES

OIT, through its analytical and informational services, kept the public
apprised of changes in the international economic and trade situation.

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

47

These services were made available through publications, correspondence,
individual contacts, and group meetings, as well as information dissemi­
nated through the Department’s Field Service. Among the publications
issued were: Foreign Commerce Weekly; approximately 150 reports in the
International Reference Service, including, for individual countries, eco­
nomic reviews, summaries of basic economic information, and issues dealing
with establishing businesses abroad, living and office operating costs, and
preparing shipments; several hundred reports in the World Trade in Com­
modities series; special publications such as Shipment of Samples and
Advertising Matter Abroad, part II (Eastern Hemisphere); and circulars
relating to such matters as trading with Germany and with Japan, the credit
outlook in certain countries, the procedure in sending gift packages abroad,
and employment possibilities in foreign countries. The first postwar edition
of the Foreign Gommerce Yearbook was issued and a second edition was
under way; this publication gives detailed trade statistics and related eco­
nomic data on about 75 countries. And as usual, a number of articles were
prepared for publication in newspapers and journals, both domestic and
foreign.
Much of the information furnished through the regular services related
specifically to such matters as the market situation abroad with respect to
the demand for goods; to foreign import duties, taxes, and import and
exchange controls, as well as to foreign export duties and controls affecting
imports needed by the United States; to transportation and insurance prob­
lems in foreign countries; and to foreign industrial developments and
United States investment abroad. Information on actual trade opportuni­
ties of interest to American exporters and importers was published and
listings of individual traders abroad were supplied, together with related
credit and other pertinent information.
Illustrative of the many developments especially attracting American
business interest, and the subject of many inquiries, were: The new trade
agreement between the United Kingdom and Argentina; the growing
tendency in certain countries toward the use of barter agreements with
other countries; Brazil’s new regulations strictly curbing imports, and a
variety of other changes affecting United States foreign trade and the inter­
national balance of payments; sterling-area import licensing and quota
restrictions subsequent to currency devaluation; the status in various coun­
tries of payments against the backlog of unpaid commercial commitments;
the pronounced trend toward protectionism in many countries; and the
commercial situation in China resulting from the civil war. In response
to the latter interest a special weekly news letter was issued pertaining to
China to give timely news necessary for the protection of American
commercial interests there.
The year was characterized by an increasing number of requests from
United States importers seeking new sources of supply abroad, particularly

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ANNUAL REPORT OF THE SECRETARY OF COMMERCE

from Austria, Germany, and southeast Asia, and greater interest on the part
of United States manufacturers in arranging for the manufacture of prod­
ucts abroad under license. Requiring clarification on behalf of individual
traders were problems arising incident to ECA procedures and to develop­
ments in ECA policy and regulations. In addition, the “dollar export
drive,” which gained momentum during the year in most of the western
European countries, called for various types of assistance from OIT, both
to explain its nature and objectives to the United States trade and to give
advice and assistance to several of the foreign governments concerning the
problems they encountered in their efforts to increase their exports to this
country. Announcement of the functioning of the Joint United StatesArgentine Committee for Commercial Studies occasioned many inquiries
concerning its purpose and progress and the prospects of improving trade
relations between the two countries.
FOREIGN SERVICE LIAISON

OIT is dependent in large part, as the bases for its analytical and in­
formational services, on reports received from Foreign Service officers sta­
tioned throughout the world. Together with the Foreign Service and Gov­
ernment agencies in Washington, OIT effected a general improvement in
operating relationships, despite the complexity and increased number of
liaison problems resulting from major governmental reorganizations. The
respective functions of the State and Commerce Departments were clarified,
with increased recognition of OIT’s responsibilities. Improvements were
made in the exchange of data needed for economic policy planning and in
the operation of a smooth-functioning system to obtain commercial and
economic reports from abroad. The effectiveness of the system has been
enhanced by OIT’s increased participation in the evaluation and appraisal
of the work of the Foreign Service officers and employees and through the
expansion of the Commerce training program for Foreign Service personnel.
TRAVEL PROMOTION AND TRADE FAIRS

OIT continued to promote travel to Europe and other areas as a means
of reducing the dollar gap. A delegation was sent for that purpose to South
America to meet with government officials there. Concrete results achieved
by the ECA-Commerce travel program include progressive relaxation of
restrictions and controls in respect to travel funds by European nations and
the elimination of visa requirements in ERP countries (except Trieste, Ice­
land, and Turkey) and in Bolivia, Colombia, and Uruguay.
OIT assisted the management of the First United States International
Trade Fair (held in Chicago in August 1950 and participated in by 47
nations, including the United States) through advice and guidance with
respect to techniques involved in planning, organizing, and operating the
fair. OIT also counseled and assisted other cities that are planning inter­
national trade fairs during the coming year.

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

SPECIAL PROGRAMS AND CONFERENCES

49

OIT sought to insure that the views and needs of business were considered
in the formulation of our economic and financial policies and programs.
The Office gave particular consideration to the Point Four program, in
recognition of the importance of, and this Government’s interest in, the
economic improvement of underdeveloped countries. It cooperated with
interdepartmental efforts in developing recommendations for legislation of
this program. Advice was also rendered to a number of foreign govern­
ments regarding their general economic development plans, and specific
suggestions were made for the improvement of individual projects. Similar
assistance was given to United States business firms that required informa­
tion in connection with foreign investment proposals.
OIT continued active participation in the work of the Interdepartmental
Trade Agreements Committee and the Committee for Reciprocity Informa­
tion. Staff members went to Annecy, France, in connection with reciprocal
trade agreement negotiations. The preparatory work for the third round
of tariff negotiations, to open in September 1950 at Torquay, England,
involved a large segment of the staff for nearly 6 months. OIT represent­
atives assisted at the fourth session held in Geneva, of the Contracting
Parties to the General Agreement on Tariffs and Trade; another group
assisted in reviewing the draft of the proposed new German tariff schedule.
OIT areas and commercial policy specialists were consulted in connection
with negotiation of several Treaties of Friendship, Commerce and Naviga­
tion, and meetings were held with representative United States businessmen
to obtain advice on crucial commercial sections of these treaties.
Much work centered on preparing data for the tripartite financial and
trade discussions between the United Kingdom, Canada, and the United
States. Study continued on the problem of United Kingdom and other
sterling-area trade, as part of an over-all analysis of the current dollar drain
on the area, and the controls imposed to prevent that drain. OIT, in
cooperation with interested agencies, studied the movement, through third
countries, of United States imports from the sterling area. OIT continued
to operate the British Token Import Program, which provides for imports
into the United Kingdom of American patented products up to 20 percent
of prewar.
In view of the importance of taking into account the business point of
view in the making of United States economic policy in the United Nations,
O IT gave special attention to UN conferences and cooperated with the
Department of State in the work of those conferences. OIT worked
closely with the Department of State in formulating and promoting the
United States position on issues of international economic policy in the
Economic and Social Council of the United Nations and in its various com­
missions. Members of the staff served as advisers to the United States
-delegations, to the tenth and eleventh sessions of the Economic Council, to

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ANNUAL REPORT OF THE SECRETARY OF COMMERCE

the Economic and Employment Commission, to the third session of the
Economic Commission for Latin America, and to the meeting of the Trans­
port and Communications Commission. Among the issues which were
discussed at UN meetings during the year, and on which important decisions
were taken, were international measures for maintaining full employment;
methods of financing the economic development of underdeveloped coun­
tries, the organization and administration of an expanded program of tech­
nical assistance, industrialization and trade promotion in Latin America;
and various problems of maritime shipping and inland transport bearing
on trade relations.
OIT cooperated with the Treasury Department in the preparation of a
proposed customs simplification bill, particularly in getting advice from the
business community and pointing up corollary problems in the customs
procedure of other countries.
In accordance with SCAP regulations concerning entry of foreign na­
tionals into Japan, OIT continued to act as sponsor for American commer­
cial entrants. More than 1,000 applications for business travel to Japan
were processed and the required permission to enter obtained. Members
of OIT participated in an interdepartmental Advisory Mission which went
to Japan at the request of SCAP to review Japanese trade practices; recom­
mendations of the Commerce group for transferring Japanese foreign trade
to private channels became effective during the year.
Duties connected with the administration of the China Trade Act con­
tinued to be heavy. The relevant legal and financial work pertaining to
nearly 100 annual reports and other documents affecting China Trade Act
corporations was completed.
An OIT staff member attended the conference of United States Economic
Counselors, held in Tokyo, to discuss the integration of Far East economies
in relation to the production of food and the development of intraregional
trade and to interpret to our Far Eastern representatives the economic
policies of the United States Government. OIT was represented at the
Regional Economic and Consular Conferences held by the State Depart­
ment in Paris, Cairo, and Lourenco Marques for the purpose of consider­
ing the economic problems peculiar to the respective regions. The ECAliaison function of OIT demands increasing attention; staff members at­
tended meetings of various ECA Missions in Europe, held to promote
Europe’s trade with the United States, to examine the difficulties in trans­
acting that trade, and to assist the countries to overcome the difficulties.
OIT was responsible for the administration of export control until the
transfer of responsibility, late in the fiscal year, to the Office of Industry
and Commerce; the Office continued to furnish statistics on the flow of
goods under control and, through its geographical divisions, assisted in
determining the need for civilian consumption of controlled items in foreign
countries.

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

51

The Office of International Trade continued to carry out its responsi­
bilities in the administration of the Foreign-Trade Zones Act. The out­
standing new development was the enactment by the Eighty-first Congress
of an amendment to the original law to allow manufacturing and exhibiting
activities to be conducted in the zones. This is expected to make these
zones (located at the Ports of New York, New Orleans, San Francisco, Los
Angeles, and Seattle and, after September 1950, at the San Antonio (Tex.)
Municipal Airport) more effective in the promotion of foreign trade.
Office of Field Service
The Field Service, operating through 42 field offices in important business
centers throughout the United States, acts as the representative of the other
offices of the Bureau of Foreign and Domestic Commerce and the Bureau of
the Census in making the services and facilities of these bureaus available
locally to the commercial, financial, and industrial commuity.
In the field of foreign commerce the offices were called upon during this
fiscal year to handle the greatest volume of inquiries since the service was
inaugurated in 1912. Several factors contributed to his heavy demand—namely, the sustained interest in participating in export business made
possible by European Cooperation Administration allotments under the
Marshall Plan, the impetus given our import trade by the search for new
overseas sources on items in short supply in the United States, and changes
in our export control regulations which resulted in further decontrol, with
the principal emphasis on the screening and limitation of export shipments
for reasons of foreign policy and national security.
In the domestic field, the business public made greater use than ever be­
fore of the statistical data compiled by the Office of Business Economics, the
Office of Industry and Commerce, and the Bureau of the Census. Im­
portant gains were made in supplying up-to-date statistical data of par­
ticular value in the field of marketing and distribution.
One of the outstanding developments of the year was the release through
the field offices of information on Government procurement under the inter­
departmental agreement described above under Small Business activities.
Under this arrangement each major purchasing office of the Department
of Defense and the General Services Administration supplied a brief synopsis
of requirements for which bids were requested, describing the item, indicat­
ing quantities, and announcing the date of opening of bids. This informa­
tion was provided to the Department of Commerce on a daily basis for some
80 purchase offices and was consolidated and distributed daily by the Field
Service to an increasing number of outlets cooperating with the Department.
Using the Department’s own field offices, chambers of commerce, trade
associations, State agencies and other cooperating public service bodies,
the Field Service published and distributed consolidated synopses of ap­
proved invitations to bid issued by these agencies. Initially numbering

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ANNUAL REPORT OF THE SECRETARY OF COMMERCE

only 150, by the close of the fiscal year these cooperative outlets totaled more
than 2,200, with indications that the number would reach 3,500 by early
fall.

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 detailed annual reports are prepared on that basis.
The accounts of the Corporation show a net loss for the fiscal year ending
June 30, 1950 of 26 percent less than the loss for the previous year. The
loss for fiscal 1949, however, was inflated by the inclusion in that year of
liability for annual leave applicable to prior years. The result of actual
■ operations for fiscal 1950 was therefore less favorable than in the previous
year. Expenses of operation for fiscal 1950 decreased approximately 1.5
percent, but revenue decreased approximately 3.5 percent.
The seriously deteriorated condition of the Corporation’s barges resulted
in withdrawal by underwriters of any cargo insurance protection on 10 per­
cent of the barges and partial withdrawal on an additional 40 percent.
Thus the available cargo capacity was seriously decreased. In spite of this
handicap, because of greater operating efficiency, total tonnage, including
that towed for others, decreased only approximately 7 percent. This de­
crease was due primarily to strikes and short work weeks in the coal industry
and the virtual disappearance of petroleum tonnage. Operating efficiency
was somewhat reduced by high water and very heavy fog during parts of
the first 4 months of calendar 1950.
The experimental integrated tow delivered in the late spring of 1948
continued to turn in an outstanding performance in speed, ton-miles, and
revenue production. Its full potential efficiency has not been realized be­
cause of an insufficient number of integrated barges to permit operation
at all times with a full tow of these barges. Twelve additional barges were
■ ordered, of which two were delivered in fiscal 1950. The delivery of the
remaining 10 during the early autumn of 1950 will considerably improve
the revenue production of this unit.
In January 1950 a group of private barge line operators made a proposal
to lease and operate the facilities of the Corporation. This proposal was
rejected because it provided no assurance of the rehabilitation so vital to the
financial success of the operation and because it proposed to leave in the
hands of the Government the many terminals formerly operated by the

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

53

Corporation. Other groups have also indicated an interest in acquiring
the property.
On October 31, 1949, a subcommittee of the Senate Interstate and For­
eign Commerce Committee reported out Senate Bill 211 recommending an
increase of 7 million dollars in the capital of the Corporation and certain
revisions in the statutes pertaining to the ultimate disposition of the Corpo­
ration. Final action was not taken by the Senate or House of Represent­
atives before adjournment in September.
The physical condition of the Corporation’s barges becomes a more critical
emergency with each passing month and unless very substantial replace­
ments of barge tonnage are made during the coming fiscal year, it is expected
that traffic will have to be curtailed. Unless vessel efficiency is greatly im­
proved through construction of modem and efficient towboats, freight will
continue to be handled, as in recent years, at a loss. Maintenance of the
Corporation’s existing towboat fleet is being carried out for the continua­
tion of such an operation.

PATENT OFFICE
PATENT EXAM INING OPERATION

C ondition of W o rk . The Patent examining corps, in support of Office
policy to accelerate the disposal of pending applications, continued to make
substantial gains in its productive rate. Without change in the number
of examiners, the corps accomplished increases of 18 percent in the total
number of application disposals, 23 percent in patent issuances, and 24percent in the net excess of disposals over new applications received. Fac­
tors contributing to this response of the examining corps include, in part,
improvement in the physical factors of the working environment—particu­
larly the alleviation of acute crowding of examiners, made possible by the
availability of 15,000 square feet of additional space to the Patent Office;
incentive offered by operation of the promotion program which, in addition,
preserved the tenure of experienced examiners; continued benefit of the inservice training program; more effective supervision; improved esprit de­
corps ; and, changes in practice which facilitated work.
Patent applications received during the year numbered 76,602, including
design and reissue applications, while operations of the examining corps
for this period resulted in the grant of 43,509 patents and the disposal of
88,852 pending applications. At the end of the year 227,141 patent appli­
cations were on hand in the Office of which 124,823 were awaiting action
by the examiners. Reductions in backlog for these categories were 13,138
and 15,888 respectively.
Particular emphasis was given to reducing pendency of applications await­
ing action by the examiner, with special effort applied in those examining;

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ANNUAL REPORT OF THE SECRETARY OF COMMERCE

divisions over a year behind in their work. In giving effect to this policy,
the dates of oldest pending actions were brought steadily and firmly down
from a maximum of 33 months in fiscal year 1949 to 18 months at the end
of this year. On June 30, 1950, almost half of the divisions were within
12 months of date in their oldest work, whereas a year ago only 16 percent
of them were in that condition. Measures taken in furtherance of this
program, which embraced the tribunals of the Patent Office as well as
the examining operations, included the appointment of six temporary
examiners-in-chief to serve with the Board of Appeals under authority of
Public Law 452, Eighty-first Congress, which enabled the Board to operate
in three panels instead of two and to conduct a fuller daily schedule of
hearings; the provision of additional personnel to serve as trade-mark inter­
ference examiners to expedite the disposal of applications involved in inter­
ference, opposition, and cancellation proceedings; and the establishment of a
Commissioner’s Examiners Division, an organization of selected examiners
constituting a special working force which operated throughout the exam­
ining organization, at the direction of the Commissioner, to assist in dis­
posing of dockets of older pending cases.
P a tent C lassific atio n . Original plans to intensify and broaden re­
classification activity were not initiated, due to personnel limitations result­
ing from budget reductions. Progress continued to be made along this line,
however, with existing staff, which formed 313 new subclasses, involving the
original classification of 7,339 patents and 7,733 patent cross-references, in
32 existing classes; transferred the original classification of 5,095 patents and
494 cross-reference classifications; made and placed 7,234 new cross-refer­
ence classifications and canceled 450 cross-references; and, in connection
with the foregoing, abolished 74 subclasses in 20 classes comprising 54,590
original and 2,864 cross-reference classifications. Reclassification projects
in process with the examiners at the end of the year involved 24 classes and
included, as notable examples of this work, the establishment of a new
classification for expressing presses, for valve structure and valve actuation,
for paper making and fiber liberation, and for coating apparatus. Em­
phasis in this work continued to be placed on breaking up the more active
of the over-sized subclasses and collecting art at present scattered through
a number of subclasses to expedite search. Projects underway in the stage
of clerical processing involve establishing 731 new subclasses in 20 classes and
abolishing 236 subclasses in 16 classes, including abolition of the entire
class 176.
The classification of patents issued during the year was reviewed, with
4,334 changes made in the original classification and a total of 52,037
cross-reference classifications made and placed. Similar review with refer­
ence to design patents established 4,826 original classifications and 1,735
cross-references.

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

55

TRADE-MARK OPERATION

Continued progress was made during the year toward establishing examin­
ing operations on a current basis. A decrease of 17 percent in the backlog
of pending applications was realized along with a reduction in the pendency
of applications. By the end of the year new applications for registration
were under examination within 10 months from date of receipt, 5 months
sooner than on June 30, 1949, while applications Tor renewal and republi­
cation were being considered within 2 months. Along with these favorable
developments, activity by the examiners accomplished the registration of a
record high number of trade-marks and a volume of publications only
slightly under the record established in the preceding year. There were
16,378 marks registered during the fiscal year of which 15,320 were regis­
tered under the act of 1946, 13,593 of them on the Principal Register.
Despite the large volume of registrations and publications, there was a
sharp decline in the number of oppositions and petitions for cancellation
filed in the Office. Fewer new applications, also, were received than in
the previous year.
Several changes of administrative significance were made through
amendments to the rules, effective November 1, 1949. The single class,
“Services,” was enlarged to comprise eight classes of services and refinements
were made in several classes of goods. An index of pending applications,
giving the identity of the applicant, a description of the mark and the goods
or services to which applied, and the serial number, was established for
public use in the search room.
Increasing guidance concerning many problems of administration under
the Trade-Mark Act of 1946 was afforded by the growing number of
Commissioner’s decisions dealing with questions of registrability and other
provisions of the law. Final determination of policy as to registrability
under the new act must, however, await adjudication of these questions by
the courts.
ACCOMPLISHMENTS AND GENERAL PROGRESS

Publication of the Manual of Patent Examining Procedure in November
1949 provided personnel of the Patent Office as well as the public, with an
official reference work on practice and procedure in the Office as it relates
to the duties and operations of patent examiners. Among other Patent
Office publications made available during the year were a second edition of
Rules of Practice in Trade-Mark Cases with Forms and Statutes, which
incorporated amendments to the Trade-Mark Rules affected since July 5,
1947; a pamphlet entitled “General Information Concerning TradeMark,” designed for use in answering frequent inquiries concerning trade­
marks; a second annual edition of the Roster of Attorneys and Agents
Registered to Practice Before the United States Patent Office; a reprint of
the Rules of Practice of the U. S. Patent Office in Patent Cases, including

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ANNUAL REPORT OF THE SECRETARY OF COMMERCE

amendments to the rules of November 1, 1949, and February 24, 1950; a
brochure concerning plastic products and manufacturing processes; two
booklets containing extracts from the Register of Patents Available for
Licensing or Sale; and a variety of materials relating to patent classification
including 258 replacement pages for the Manual of Classification and 146
classification bulletins.
The project undertaken in June 1948 to systematically perfect the arrange­
ment and condition of patent copies comprising the collection maintained
for public use in the search room was completed. This job entailed a
complete inventory of patent copies filed in over 44,000 subclasses of the
306 classes comprising the original and cross-reference classification of about
2/2 million patents. As this was the first complete check of the search
room collection in nearly 25 years, voluminous changes were necessary.
Abstracts of applications published in the Official Gazette during the year,
in accordance with the practice established by Commissioner’s Notice of
January 25, 1949, numbered 490, with the first of such items appearing in
the issue of July 5, 1949. Requests for the disposal of applications by this
process failed to materialize to the extent expected.
The Committee on Enrollment conducted two examinations which re­
sulted in the registration of 171 additional attorneys and agents to practice
before the United States Patent Office.
A special-handling and air-mail delivery service was inaugurated in
December 1949 to meet the needs of individuals who on occasion have to
obtain printed copies of patents much faster than they can be obtained on
the normal service basis. This speedier service operates through special
handling of orders in the Patent Office and the use of air mail, for which
the client pays an additional fee of 10 cents. While improving service on
orders for copies of patents and trade-marks, the volume of sales and dis­
tribution handled by the Patent Copy Sales Branch of the Office rose to a
record high of 7,204,672 copies.
Over 10,000 additional patents were made available by industry and indi­
viduals for placement on the Register of Patents Available for Licensing or
Sale, bringing listings on the Register to over 50,000 patents by the end
of the year. An increasingly large number of public referrals to the Reg­
ister indicated the greater fulfilment of its function as a medium for
bringing together people with mutual and reciprocal business interests.
Procedures were instituted to provide the systematic incorporation of non­
patent literature in the official classification and to realize greater benefits
from classification studies made in examining divisions. Research con­
tinued, with good progress made in developing a machine method of search­
ing patents.
LEGISLATION

Legislation of special importance to the Patent Office enacted during the
second session of the Eighty-first Congress included the following:

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

57

Public Law 452 relating to the Board of Appeals; Public Law 507, the
Science Foundation bill; Public Law 549, authorizing the Office to supply
back copies of patents to libraries at the subscription price; Public Law 694,
concerning cancellation of certain royalty-free licenses granted to the Gov­
ernment; Public Law 710, eliminating the requirement to print declarations
in certificates of trade-mark registrations; and other laws, both public and
private, extending the terms of patents.
The Patent Office was called on for assistance and cooperated closely
with the Committee on the Judiciary of the House of Representatives in
connection with the committee’s proposed general revision and codification
of the patent laws.
PERSONNEL

On June 30, 1950, the personnel strength of the Patent Office numbered
1,960 employees, 50 less than the peak force of the year, while average em­
ployment for the year was 22 man-years under the level anticipated in the
budget for 1950. Inability to realize the full employment plan resulted
from uncertainties with regard to the supplemental appropriation, which
provided funds to pay salary increases under the Classification Act of 1949,
as well as to defray increased printing costs, and the appropriation for fiscal
year 1951.

BUREAU OF PUBLIC ROADS
The Bureau of Public Roads became a part of the Department of Com­
merce on August 20, 1949, when the President’s Reorganization Plan No. 7
became effective. It was created as the Office of Road Inquiry in 1893 in
the Department of Agriculture. On July 1, 1939, as the Public Roads
Administration, it became a part of the Federal Works Agency. That
agency was abolished on July 1,1949, and the road organization was included
in the newly created General Services Administration until its transfer, as a
bureau, to the Department of Commerce.
The bureau has administered Federal funds to aid the States in highway
improvement since initiation of the policy in 1916. It also supervises con­
struction of highways in national forests and national parks, and its services
are available to all Federal agencies in highway matters. As a guide in its
work, which includes the making of recommendations as to national high­
way policy, it conducts extensive research in methods of road construction
and economics of highway transportation. The economic studies have many
phases, such as growth of highway traffic, condition of improvement of high­
way systems, sources of highway funds and objects of expenditure, and price
trends in highway construction. In furtherance of the foreign policy of
the United States, the Bureau has responded frequently to calls from other
countries for assistance in organizing highway departments and carrying
on work according to modem methods.

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ANNUAL REPORT OF THE SECRETARY OF COMMERCE

A new record high was reached during the fiscal year 1950 in the volume
of all classes of Federal-aid highway projects brought to completion. Im­
provements completed had a total length of 21,030 miles. This was almost
identical with the mileage completed during the prior year and was exceeded
slightly by mileages completed during the fiscal years 1934 and 1937, but the
greater emphasis on relief of traffic congestion in urban areas, coupled with
increasing attention to development of the interstate system, has resulted
in the construction of a higher percentage of multiple-lane highways and
bridges than in previous years. Thus the total traffic service provided by
the more recently completed improvements is unquestionably of a higher
order than ever before achieved.
Federal-aid funds authorized to assist the States in highway improvement
during the fiscal year amounted to 450 million dollars with 202j4 million
dollars assigned to the Federal-aid highway system, 135 million dollars to the
Federal-aid secondary system, and 112^2 million dollars for the Federal-aid
highway system in urban areas. The program is a continuing one and funds
remain available for 2 years after the year for which authorized. Expendi­
tures in any fiscal year need not necessarily be identical with the authoriza­
tion. However, cost of work put in place amounted to 97 percent of funds
authorized for the year.
The systems upon which funds were expended were the Federal-aid high­
way system, which includes 219,776 miles outside of cities and 14,710 miles
in urban areas, and the Federal-aid secondary system of 406,267 miles of
farm-to-market roads. Improvements were completed on these highways
as follows: 5,914 miles of rural primary highways and 1,163 bridges;
13,515 miles of secondary or farm-to-market roads and 1,631 bridges; and
779 miles of highways and 353 bridges in urban areas. Accomplishments
in the elimination of hazards at railroad-highway grade crossings included
the elimination of 154 crossings, reconstruction of 48 inadequate grade
separation structures, and the protection of 414 crossings by flashing light
signals or other appropriate safety devices.
All projects undertaken were proposed by the respective State highway
departments, as required by law, and the States paid somewhat more than
half of the cost, except in Western States with large areas of public lands.
In such States Federal participation in excess of 50 percent of the cost is
authorized. The amount of increase above 50 percent is based on the
percentage of the area in public lands.
The work done ranged from low-cost improvement of farm-to-market
roads with local materials to city expressways incorporating the most modem
features and designed for safe and uninterrupted movement of great
volumes of traffic. Significant features of the year’s work were the large
mileage of secondary roads placed in service, the marked increase in the
number of cities making an actual beginning on solution of congestion
problems by constmction of expressways, and the extent to which the States

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

59

undertook modernization of main intercity routes by widening and
straightening and frequently by construction of four-lane divided highways.
The most important routes of the Federal-aid highway system have been
included in the National System of Interstate Highways. This system is
limited by law to 40,000 miles and it is to be improved to the highest modem
standards. Of the mileage previously indicated as completed during the
year, 979 miles were on this system. Many of the projects were of rela­
tively short length but involved very costly work such as carrying main
routes over several railroad tracks.
Work under construction or approved for construction at the end of the
year involved improvement of nearly 23,000 miles of highways and streets.
In addition to administering Federal aid to the States the bureau directly
supervised highway construction in Federal areas. Work of this class
brought to completion included 516 miles of national forest highways, 255
miles of national park highways and national parkways, and 2 miles in
public lands.
In addition to these principal activities the bureau supervised highway
construction for the Atomic Energy Commission and various branches of
the Department of the Interior. Work on the portion of the InterAmerican Highway from the Mexico-Guatemala border to Panama with
funds provided partly by the United States progressed at a reduced rate
because of the near exhaustion of funds. Some construction was done in
Guatemala, Nicaragua, and Costa Rica.
Staffs of bureau engineers in the Philippine Islands and in Turkey gave
active assistance to the governments of those countries in reorganizing their
highway departments and in planning and constructing modem highway
systems. The program in the Philippines involved the rehabilitation of 360
miles of war-damaged highways and 223 major bridges. The work in
Turkey began in 1947. Supported partly by loans from the Economic
Cooperation Administration, it has resulted in marked progress in the
construction and maintenance of a 4,500-mile national highway system with
modern machinery and methods. New routes are being opened to motor
transport that will be of great benefit to the economy of Turkey.
Research in the fields of highway transport, finance, administration, and
methods of road construction was continued. The results were widely
applied by the States in carrying on their highway programs. Many States
made extensive use of bureau material and methods in highway needs
studies. These studies were conducted to establish desirable programs of
highway improvement, determine the cost and method of financing, and
provide for a fair distribution of the cost.
At the request of the Senate Committee on Public Works a report entitled
“The Local Rural Road Problem” was presented to the committee in Jan­
uary. This report, based on extensive data collected from every State,
showed the extent and usage of local roads, required improvement, and its

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ANNUAL REPORT OF THE SECRETARY OF COMMERCE

cost, and discussed local road finance and administration. The factual
data were considered by Congress in formulating Federal highway
legislation.

NATIONAL BUREAU OF STANDARDS
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
measurement, in terms of which all working standards in research labora­
tories 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 Gov­
ernment 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 two general headings: (1) research and development and (2) service
activities, which include the work on codes and specifications; commodity
standards; testing, calibration, and standard samples; and cooperative and
consulting services.
RESEARCH AND DEVELOPMENT

The research and development activities of the Bureau are primarily of
two kinds. There are, first, the investigations that result from the Bureau’s
responsibility for fundamental measurements in the physical sciences, the
development and maintenance of primary standards in science and engi­
neering, and the testing and calibration of standard measuring apparatus and
reference standards. A second phase of research and development at the
Bureau consists of large-scale specific projects undertaken either under
direct congressional authorization (e. g., the work in artificial radioactivity,
building technology, and high polymers) or for other Government agencies
(e. g., guided missiles, ordnance electronics, jet engines and fuels, electronic
computing machines, and many of the projects relating to aeronautics).
Selected examples of typical projects, representative of the over-all program,
are described in the paragraphs which follow:
E lectricity a n d O pt ic s . Work in electricity and optics was largely
concerned with improvement of standards and methods of physical measure­
ment in these fields, the development of standards for issuance to industry,
the design of new apparatus, and studies of the properties of materials. For
example, the Bureau’s development of standard equipment for testing a-c
ammeters and voltmeters at frequencies ranging up to 20,000 cycles per sec­

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

61

ond was extended to cover currents up to 50 amperes and voltages to 400
volts with an accuracy approaching 0.01 percent. The use of large elec­
trical powers at these frequencies is rapidly increasing in the fields of aero­
nautics and metallurgy.
Studies were carried out in connection with the formulation of specifica­
tions for flooring in Government hospitals which will eliminate the hazard
involved in the ignition of explosive mixtures by static charges. A new
system of equations for tracing skew rays through an optical system was
developed, making possible the application of SEAC (National Bureau of
Standards Eastern Automatic Computer) to the problem. An extremely
sensitive method was worked out for testing the planeness of optical surfaces
up to 10 or 12 inches in diameter. New permanent gloss standards were
prepared and made available to the automotive, paper, plastics, ceramics,
and other industries. The Union Colorimeter Scale, used to classify petro­
leum products by color, was revised to permit more accurate color measure­
ment and thus to facilitate the purchase and sale of these products. The
Bureau developed a method for the preservation of the Constitution and
the Declaration of Independence by sealing in enclosures containing helium
and investigated the lighting and viewing conditions at the Shrine in the
Library of Congress.
M etrology . Measurement, instrumentation, and standardization prob­
lems, involving the basic concepts of length, mass, time, capacity, and
density, constituted the greater part of the work in metrology. In addition,
a broad program of research on the physical and chemical properties of
dental materials was continued. The Bureau extended its mass standardiza­
tion service to include weights for microbalances, which are becoming in­
creasingly important for research in atomic energy, vitamin therapy, and
microchemical techniques. An instrument was developed for indicating
and recording the instantaneous frequency error in commercial power lines.
H eat and P o w er . T o learn more about the knocking characteristics of
the individual components of automotive gasoline, an apparatus for investi­
gating the burning mechanism of fuels was constructed. Work was also
done on the effect of altitude on octane number measurement. The effect
of gasoline additives on valve deposits was investigated, and studies of the
service life of automobile tires were begun. The development of improved
equipment and methods for testing aircraft accessories was continued, with
particular emphasis on the components of the fuel and electrical systems.
In low-temperature physics, a new and wholly unexpected relationship
was discovered between superconductivity—the loss of electrical resistance
at very low temperatures—and the constitution of the atomic nucleus. A
striking demonstration of the validity of the two-fluid theory of liquid helium
II, a form of helium existing near absolute zero, was provided by the de­
velopment of the Thermal Rayleigh Disk Method for investigating the
wavelike propagation of heat in this substance. As a result of the increasing
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need for reliable temperature measurements at both very high and very
low temperatures, considerable research was done to develop suitable
instruments and methods of calibration.
A tomic and R adiation P h y s ic s . The results of basic research in atomic
and nuclear physics are now being applied to an increasing extent in medi­
cine, industry, and national defense. To meet the need for new techniques,
instruments, standards of measurement, safety provisions for workers and
consumers, standard samples for calibration purposes, and methods of
testing and evalution in this rapidly expanding field, the Bureau is now
engaged in a broad program of fundamental research and standardization
in atomic and radiation physics.
During the year, the omegatron, a new instrument which is basically a
miniature cyclotron, was developed for the measurement of atomic masses.
A nonmagnetic radiofrequency mass spectrometer was developed in which a
radiofrequency field replaces the usual magnetic field; this new type of
mass spectrometer has been found ideally suited for use in rockets to de­
termine the composition of the upper atmosphere. The program for the
calibration and distribution of standard samples of artificially produced
radioactive isotopes continued to grow as the demand for such standards
increased in medicine, science, and industry. With the installation of a
new 50-million-volt betatron, work in radiation physics was extended into
the realm of extremely high energies. The initial phase of the program
for the development of field X-ray equipment for the Army was completed,
resulting in advances in design which promise to be of significance in the
improvement of civilian X-ray apparatus.
C h e m ist r y . A wide range of fundamental and applied research was
carried on in physical, analytical, organic, and inorganic chemistry. A new
type of instrument was developed for detecting gasoline vapors or other
combustible gases in such spaces as airplane cabins or cargo holds. As the
result of an extensive investigation in cooperation with other laboratories,
standard methods for gas analysis were recommended to industry. A novel
method was developed for measuring the adhesion of electroplated coatings.
A rapid semimicro method of determining nitrogen in steel and a procedure
for determining small amounts of magnesium in cast iron were developed.
In the continuing program on the fundamental chemistry of sugars, further
progress was made toward an understanding of their structure and the
mechanisms of the reactions through which they take part in life processes.
New color phase-contrast equipment was developed for microscopy, reveal­
ing ordinarily invisible detail of specimen structure as bright differences in
color.
M e c h a n ic s . The mechanics of solids, liquids, and gases were the broad
topics of research in this field. In scope, the work varied from long-range
investigations of basic mechanical phenomena to short-range studies of the
mechanical action of practical apparatus. To aid the Department of the

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

63

Navy in the flight-testing of aircraft, an instrument was designed and con­
structed which automatically indicates the force applied by the pilot to the
control stick of an airplane. Studies were made of the changes caused by
wind in water levels of shallow lakes and reservoirs. A fundamental in­
vestigation of drainage systems in buildings, sponsored by the Housing and
Home Finance Agency, was continued. Work was begun on the extension
of the Bureau’s standards for the absolute calibration of microphones to
frequencies of 100 kilocycles. Apparatus for determining the absorption
coefficients of acoustic materials after installation was developed and applied
to studies of the acoustic treatment in the Pentagon Building.
O rganic and F ibrous M aterials . New mathematical methods and
experimental techniques were employed in an integrated approach to the
study of materials of complex chemical structure such as rubber, plastics,
textiles, leather, and paper. This program seeks to improve present knowl­
edge of these materials, to develop new materials of this type, and to provide
for their practical utilization. Thus, in an investigation sponsored jointly
by the Office of Naval Research and the United States Army Quartermaster
Corps, it was shown that the silicone rubbers, developed originally for hightemperature applications, have better potentialities for use at extremely low
temperatures than any synthetic or natural rubber studied thus far. Further
advances in the making of resin-bonded papers at the Bureau indicated that
vast quantities of hardwoods may now for the first time be effectively utilized
in the manufacture of offset papers. The Schiefer Abrasion Machine, de­
veloped for studying the abrasion resistance of textiles, was found well suited
to determination of the abrasion resistance of yarns without the expense of
weaving or knitting them into fabrics and without the introduction of effects
due to changes caused by weaving and knitting. A new and more rapid
method was developed for measuring the permeability of leather to water
vapor, an important factor in determining the comfort of shoes. As part
of a continuing program on the properties of laminated plastics for aircraft
use, projects were completed dealing with the effect of simulated service
conditions, fuel immersion, and extreme temperatures on these materials.
M etallurgy . The work in physical metallurgy involved the melting,
working, and heat treatment of metals and alloys; determinations of their
structure and properties; and studies of the effect of various factors on struc­
ture and properties; and studies of the effect of various factors on structure
and behavior under normal and abnormal conditions of service. A new
instrument was developed for measurement of X-ray diffraction patterns.
In an effort to determine why metals fail in fatigue, it was shown that pre­
stressing by static or dynamic procedures may improve materially the fatigue
characteristics of aluminum alloys. The fatigue characteristics of steels
used in aircraft were found to be appreciably affected when the steels are
plated with chromium. In an investigation of printing plates used by the
Bureau of Engraving and Printing, it was found that fatigue failures origi­

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ANNUAL REPORT OF THE SECRETARY OF COMMERCE

nated in the spot welds and metallic solder used to bond the electroformed
printing sheet to the supporting metal plate.
M ineral P roducts . Research in the general field of nonmetallic min­
eral products was concerned with pottery and porcelain, the high-temperature oxides, glass, refractories, enameled metals, building stone, concreting
materials, lime, and gypsum. The efficient application of these products in
commerce, industry, and national defense requires an understanding of their
chemical and physical properties. During the year, the Bureau investigated
the chemical constitution and phase equilibrium relationships of the refrac­
tory oxides and the viscosity, density, and other physical properties of the
molten optical glasses. Study of the corrosion and weathering of glass and
of building stone was continued. The properties of graphite at elevated
temperatures were studied as background information for the proper utili­
zation of materials in atomic energy installations. Work on the growing
of thallium bromide-iodide crystals for transmission of infrared light was
practically completed. A better understanding was obtained of the chem­
ical reactions that take place in the manufacture, setting, and hardening
of portland cement. Important technical improvements were made in
ceramic dielectrics for capacitors, high-temperature ceramics for jet and
rocket propulsion, large glass elements of high optical quality for special
lenses, and protective ceramic coatings for metals and alloys used at high
temperatures.
B uilding T ech no lo g y . The Bureau continued to conduct laboratory
research on technical problems relating to building construction and main­
tenance, codes, design, and standardization. Projects were active in
structural engineering, fire protection, heating and air conditioning, and the
chemical and physical properties of bituminous materials.
Study of the factors affecting the strength of reinforced concrete beams
was continued, with special emphasis on resistance to diagonal tensile and
bond stresses. A concrete was developed which is believed to be superior
in durability, moisture resistance, and heat insulation value. Fire resistance
classifications were determined for 12 floor, wall, and column constructions ;
and 136 panels were tested to evaluate the fire hazard properties of such
finishing materials as acoustical tile and paints. Other activities in the field
of fire protection included research and development on improved methods
for determining self-heating, flash, and ignition temperatures; studies of the
spontaneous heating of liquids, films, and plastics; and determination of the
fire hazards of such emergency equipment as signal flares and smoke bombs.
In the field of heating and air conditioning, numerous measurements were
made of the thermal conductance of materials and of heat transfer through
wall, roof, and floor constructions. Heat exchangers for aircraft and base­
board heating elements for buildings were investigated. Improved appa­
ratus was developed for measuring the water-vapor permeability of coatings
for buildings, and studies were made of the durability of such materials.

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

65

Further progress was made toward the formulation of a code for safe walk«
way surfaces.
A pplied M a th em atic s . Established in recognition of the need for a
centralized national computational facility, the National Applied Mathe­
matics Laboratories of the Bureau engage in basic mathematical research
and in addition provide a service organization, particularly in the fields of
engineering statistics and quality control, for the Armed Forces, other gov­
ernmental agencies, and industry. Activities were concentrated largely in
two programs: (1) numerical analysis and (2) mathematical statistics.
In both programs, mathematical services involving applications of known
theory and use of existing mathematical tools were furnished to Government
and industry. In each case this was supplemented by theoretical research
aimed at providing new methods and by the development of mathematical
tools for use in the Bureau’s own laboratories and in other agencies.
In numerical analysis, progress was made on the general problem of
finding the eigenvalues, or characteristic values, of matrices and systems of
differential equations. Considerable effort was also expended in seeking
methods of solution for the partial differential equations of physics, which
describe the phenomena of motion and change in the physical world.
Twenty mathematical tables were completed or in progress during the year.
The program in statistical engineering was concerned with the applica­
tion of modern statistical inference to complex engineering experiments and
sampling problems and with the analysis of data arising in physical experi­
ments. As in previous years, attention was given to the theory of samples
consisting of small numbers of specimens such as are used in experimenta­
tion in the physical sciences and in engineering testing.
E lectronics . New and highly specialized types of electronic circuits
and components were developed to meet the particular requirements of
industry and national defense. Much of the work was classified and in­
volved the development of new ordnance devices for the National Military
Establishment; a large part of the remainder consisted of projects in basic
and applied electronics conducted primarily for other Government agencies.
Seeking a means for very rapid starting and stopping of rotary motion, the
Bureau developed a novel kind of friction clutch which utilizes the principles
of the dynamic loud speaker. An improved rapid selector, in which the
unexposed film can be advanced or stopped in approximately one-thou­
sandth of a second, was developed for microfilm copying. A high-speed
device which punches holes in any combination of 60 spaces on a standard
IBM card at the rate of 600 cards per minute was developed for the Bureau
of the Census. To meet the need for high-speed reversal of magnetic
tapes in the memories of electronic digital computing machines, a method
was developed for reversing a small electric motor in three- to four-thou­
sandths of a second; this technique is expected to prove useful in other
applications.

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ANNUAL REPORT OF THE SECRETARY OF COMMERCE

A utomatic C o m puting M a c h in e s . The completion and successful
operation of SEAC—the National Bureau of Standards Eastern Automatic
Computer—was achieved. SEAC is the fastest general-purpose, auto­
matically sequenced electronic computer now in operation. It was de­
veloped and constructed, in a period of 20 months, by the staff of the
National Bureau of Standards under the sponsorship of the Department of
the Air Force to provide a high-speed computing service for Air Force
Project SCOOP (Scientific Computation of Optimum Programs), a pio­
neering effort in the application of scientific principles to the large-scale
problems of military management and administration. SEAC will also be
available for solving other important problems of general scientific and
engineering interest.
SEAC automatically performs all of the logical and arithmetical opera­
tions required to solve a particular problem when it is supplied with coded
instructions and numerical data. Its high speed permits the use of many
simple steps that can be combined into a complex and powerful sequence
for the solution of difficult problems. This makes it possible to solve im­
portant mathematical, computational, and statistical problems which would
otherwise be impossible of solution in any reasonable period of time, or
which would be prohibitive in cost if attempted by conventional methods.
At the close of the fiscal year, a second high-speed, general-purpose elec­
tronic computer was nearing completion at the Bureau’s Institute for
Numerical Analysis in Los Angeles. This machine will be known as
SWAC—The National Bureau of Standards Western Automatic Computer.
Sponsored by the Office of Air Research of the Air Force, it will be operated
by the National Bureau of Standards to provide a fast and powerful com­
putational tool for three large types of problems: (1) Problems of the Office
of Air Research of the Air Force and aircraft problems originating with
contractors of the Air Force (in particular, the aircraft industry of the
west coast); (2) problems in engineering, physics, and mathematics origi­
nating in the laboratories of the Bureau and other Government agencies;
and (3) problems in research in numerical analysis and those arising in
connection with the development of the art of machine computation.
R adio P ropagation . Comprehensive programs of basic and applied
research were carried forward in an effort to learn more about the earth’s
upper atmosphere and its effects on the propagation of radio waves. Four­
teen radio propagation field stations, extending over North and South
America and the Pacific area, were operated by the Bureau either directly
or in close association with other agencies. Data thus obtained provided
basic material for scientific research and for the application of propagation
data to radio-communication problems. Radio waves emitted by the sun
and stars were studied because of their relation to radio propagation and also
because they provide a new means for exploration of the universe. Publi­
cation of Basic Radio Propagation Predictions, a monthly series of charts

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

67

predicting 3 months in advance the best frequencies for long-distance radio
communication throughout the world, was continued. Information on
radio-propagation conditions was also disseminated by mail, telephone, and
telegraph to the armed services, commercial organizations, research labora­
tories, and the general public. A program was begun during the year for
the study of the propagation factors affecting the use of radio for aircraft
navigational and traffic control, and an experimental field station was set
up for this purpose at Cheyenne Mountain, Colo. Continuous broadcasts
of standard frequency and time were continued over the Bureau’s radio
station WWV at Beltsville, Md., and over an experimental station, WWVH,
at Maui, T. H. A new type of atomic clock or frequency standard utilizing
atomic-beam techniques was in process of development; it is expected that
this clock will have unprecedented accuracy, with a variation of not more
than 1 second in 300 years.
SERVICE ACTIVITIES

C odes , S pecifications , and C ommodity S tandards . The results of a
large part of the research and testing have a direct bearing on the develop­
ment of technical requirements designed to assure safe working and living
conditions. The Bureau thus provides a central source of information 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. During the year, representatives of the
Bureau took an active part in work on revision of the National Electrical
Code, the National Electrical Safety Code, the Code for Protection Against
Lightning, the American Standard Elevator Safety Code, and other codes in
the safety field. Other work in process was concerned with codes for
mechanical refrigeration, electrical equipment in coal mines, electrical race­
ways, wood poles and crossarms, and plumbing systems.
Assistance was rendered to industry in the development of voluntary pro­
grams for the elimination of waste, and the Bureau also cooperated with
organizations of manufacturers, distributors, and consumers in the develop­
ment of voluntary commercial standards. Twenty-five such standards 11
Simplified Practice Recommendations and 14 Commercial Standards—were
issued during the year.
T e sting , C alibration , and S tandard S a m p l e s . Over 250,000 tests and
calibrations, having a total fee value of more than $1,300,000, were per­
formed for other Government agencies and the public. In addition, about
19,000 standard samples were sold by the Bureau. The total fee value of
all the tests, calibrations, and standard samples was approximately
$1,400,000.
Typical services of this kind included the sample-testing of about 9,000,000
barrels of cement, the testing and certification of over 2,000 radium prepa­
rations sold in this country, distribution of about 1,100 standards of radio­
active materials, about 900 measurements of radon in breath samples from

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ANNUAL REPORT OF THE SECRETARY OF COMMERCE

radium dial painters or in the workroom air, the life-testing of more than
5,000 light bulbs (a sampling of over 4,000,000 purchased by the Govern­
ment this year), the testing of 2,500 samples of microfilm for hypo content,
and the sample-testing of about 74,000 clinical thermometers.
C ooperative and C o n su l t in g S ervices . The Bureau is called upon to
provide technical and advisory services to every agency of the Federal Gov­
ernment and many State and municipal governments. An example of this
service is the development and establishment of Federal Specifications.
These specifications result in purchase economies by establishing criteria
which govern quality and by providing opportunity for all businesses to com­
pete for Federal trade through the bid system. The Bureau also cooperates
extensively with technical and trade associations both in this country and
abroad, on problems of concern to the Government and the Nation, partic­
ularly those relating to the determination and establishment of scientific
quantities and standards. In addition, requests for technical information
or advice are received daily from other Federal agencies, State and local
governments, universities, industrial plants and laboratories, and private
individuals. Such requests accounted for a large proportion of the nearly
one-half million pieces of mail received during the year.
Services of an advisory or consulting nature were rendered to almost
every agency of the Federal Government. Typical services included con­
sultative assistance to the Veterans’ Administration in the preparation of
specifications for medical X-ray equipment; aid to the State Department in
the design of language record reproducing systems; determination of the
causes of aircraft failures for the Civil Aeronautics Board; assistance to the
Los Alamos Scientific Laboratory in planning improvement of its timing
equipment; development of methods for the modification of diathermy
equipment for the Office of the Surgeon General, United States Army; tech­
nical advice and testing in connection with the relighting of the Senate and
House Chambers; work on the preservation of the Constitution and the
Declaration of Independence for the Library of Congress; and study of
static electricity hazards in Government hospitals.
The Bureau also participated in the work of 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. Bureau staff members
now hold approximately 1,600 positions on such national and international
groups. An example is the Bureau’s participation in the American Society
for Testing Materials, in which the Bureau is represented by 434 committee
memberships. The Bureau also holds about 250 memberships on com­
mittees of the American Standards Association and is the managing agency
for several ASA projects.

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69

OFFICE OF TECHNICAL SERVICES
The program of the Office of Technical Services continued to consist of
three principal elements: (1) The maintenance of a clearing house of
technical reports from United States and foreign sources; (2) a technical
inquiry service for the individual handling of technical questions from
business firms; and (3) staff work for the National Inventors Council, a
group of distinguished scientists and inventors, serving on a voluntary basis,
which seeks the aid of independent inventors in the solution of technical
problems for Federal agencies.
During fiscal year 1950 special emphasis was placed on technical aids to
small business firms, in accordance with the President’s budget recommenda­
tion, concurred in by the Congress on the basis of specific committee
recommendations. Special small business services included a revitalized
technical inquiry program; the inauguration of a monthly Technical
Reports Newsletter; the application of trust-fund activities to the reproduc­
tion of relatively inexpensive documents, of wide interest to small business
firms; and the creation of the post of Research Stimulator, for the purpose
of encouraging small manufacturers to pool their resources in seeking
research of mutual benefit.
Public Law 776, “to make the results of technological research and de­
velopment more readily available to industry and business” was under con­
sideration by Congress, but did not become law until September 1950.
TECHNICAL CLEARING HOUSE

To encourage smaller firms to use the Bibliography of Technical Reports,
guide to the OTS clearing house of 150,000 technical documents, the maga­
zine was redesigned to permit the annual subscription price to be lowered
from $10 to $5. The reduction in the number of pages per issue was
partially compensated for by more careful selection of the materials
included. As a result, the year’s sales of Publication Board reports totaled
well over $100,000, about 30 percent of them through the trust fund, and
the balance handled in photostat and microfilm form directly by the
Library of Congress. Compared to the 3,214 entries in the 12 monthly
Bibliography issues released during the year, this represents the greatest
number of reports sold per Bibliography listing in OTS history, evidence
that the goal of more intensive use of these technical reports is gradually
being achieved.
The Newsletter, a monthly bulletin highlighting technical opportunities
for small business, achieved a substantial paid circulation and in addition
was incorporated in the Bibliography of Technical Reports and separately
circulated to a wide audience.
Among the technical documents of special benefit to small business dis­
tributed under the trust fund during the fiscal year was a series of more

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than 60 volumes under the general title of “Industrial Notes.” These
reports, originally prepared for Department of Defense installations, were
first made available to the general technical public small factories, machine
shops, and metal working plants—through reprints prepared by the Office.
The majority of the titles sold for 10 and 25 cents, and public response was
unprecedented.
To guarantee continuing valuable accessions to the Publication Board
collection, new and improved arrangements were concluded with a number
of Federal agencies and outside organizations originating research material,
including the Office of Naval Research and the Naval Research Laboratory,
the Air Matériel Command, and universities and research foundations do­
ing work under contract for the Government.
During the year the technical data resources of the Office were brought
to bear upon the problem of foreign rehabilitation through the auspices
of the Economic Cooperation Administration. ECA technical-assistance
programs utilizing OTS facilities took two forms :
1. A special fund was allocated to make possible the employment of an
additional technical-inquiry staff, specifically for the handling of inquiries
from countries participating in the European Recovery Program.
2. Funds were provided to set up a unit for the screening and selection of
industrial visual-aid materials—technical motion pictures and slidefilms,
etc.—to be forwarded to Europe, where experts would translate text and
narration for foreign training programs.
While both these programs came into operation fairly late in the fiscal
year, foreign reception of these technical aids has been most enthusiastic,
and promises much greater usefulness of the Office of Technical Services
clearing house facilities.
INQUIRY SERVICE

Considerable interest was attracted by the renewed offering of technical
inquiry service, and the perfection of effective methods for handling such
inquiries resulted in the servicing of three times the number of problems
handled the preceding fiscal year. This does not include an additional
workload of over 41,000 reference inquiries, relating to the catalog and
document collection of the Publication Board, which is also administered
by the Office of Technical Services.
NATIONAL INVENTORS COUNCIL

Operations of the National Inventors Council, which were on a standby
basis prior to the Korean conflict, continued during the 1949-50 period.
The council, for which OTS furnishes the staff, released 31 new inventive
problems, and received an average of over 100 suggestions each month from
independent inventors, which were of possible value to the military and
other Federal agencies.

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

71

WEATHER BUREAU
The United States Weather Bureau is responsible for providing the
meteorological observations and reports, the weather forecasts and the storm,
cold wave, and flood warnings required for aeronautics, agriculture, com­
merce, navigation, and the general public. In order to meet national and
local needs for daily weather information used in planning activities in
the air, on the ground, and at sea, and for protection of life and property
in a country with weather conditions and business activities as diversified as
they are in the United States, it is necessary for the Bureau to collect some
10 to 15 million weather reports and publish more than a million separate
weather forecasts and warnings each year. During fiscal 1950 the needs for
these services in our expanding air commerce and in agriculture and industry
and the demands for research and development in meteorology for civil and
military requirements of the country were greater than ever before.
Through reductions in staff and facilities to a critically low level in some
localities, the Bureau managed to satisfy the most urgent new requirements
in other localities, but this was accomplished only through overtime work
and, in many instances, employees’ sacrifice of annual leave. The Bureau’s
offices in comparison with its Nation-wide responsibilities are considerably
below the usual standards in staff and equipment. Its administrative costs
are among the lowest.
ADM INISTRATIVE ECONOMIES

Despite traditionally low costs of administration the Bureau during 1950
made further reductions through consolidation of several administrative
centers in the field. The seven regional offices in continental United
States were consolidated into four, and seven weather records processing
centers established a few years ago to supersede the processing of climatologi­
cal data by hand were reduced to three. Again, in order to facilitate study
of field problems and developments through exchange of views between
field officials and central office project leaders in technical and scientific
matters, the work of field inspection and field correspondence was brought
into direct relationship with the central office. These changes not only
have made possible the elimination of some of the workload of regional
offices, but also have aided program planning and management.
WEATHER SERVICES

The accuracy of weather forecasts, which for common purposes averages
about 85 or 90 percent, is always open to improvement and the Bureau has
continually sought new techniques to give more exact results and permit
extension of the forecasts for longer periods in advance. For several years
the Bureau has experimented with a very general 30-day outlook for
temperature and precipitation. After information of this longer range
forecast reached the public there were repeated demands from business and

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industry for its publication. Accordingly, during the year the 30-day
outlook was made available through press and radio summaries. Although
the outlook is experimental and far from complete in its development,
reports from agricultural and commercial users testify to its economic value
in planning their longer term operations. Another improvement in
weather information services was introduced through a wire-photo weather
map by which press associations give wide distribution to the map. Through
cooperation of the telephone company the system of forecast distribution by
automatic telephone was installed at Cleveland, Ohio, bringing to eight the
number of cities which now have this service. Individual telephone calls
for this service number about 50,000 per day and on stormy days exceed
200,000, a further evidence of the public interest in and value of this weather
forecasting service.
In the South, weather forecasting for cotton growers was amplified to
contribute to effectiveness of insecticide dusting and spraying for bollweevil control and other phases of cotton cultivation, processing and
marketing. This is one of several special services rendered to agriculture
by the Weather Bureau, services which are instrumental in increasing
production and preventing damage to crops in amounts worth many millions
of dollars each year.
The growth of nonscheduled flying disclosed deficiencies in weather in­
formation for operation of private aircraft. Through conferences with
representatives of nonscheduled flyers, the collection and dissemination of
in-flight weather reports and other services for the private pilot have been
improved. Facsimile weather maps have been installed in several Weather
Bureau offices for use in pilot briefing and augmenting forecast services to
the public. A definite program for future development through coopera­
tion with State aviation officials has been organized. As a further aid in
developing the best use of meteorological facilities for service to all branches
of aviation, a CAA-WB planning group has been established. The group
gives special attention to coordination of the field activities of these two
agencies.
OVERSEAS WEATHER SERVICES

Through the regional conferences of the International Civil Aviation
Organization and through the coordinating facilities of the International
Meteorological Organization, weather reports and forecasts for international
air commerce have been extended and improved. Among the several activ­
ities carried on by the Bureau under its responsibilities for international
cooperation was its pilot briefing in Korea. Under the ECA program there
the Bureau provided meteorologists who furnished flight weather forecasts
to pilots and assisted in the training of Korean nationals who will take over
the service eventually. Two Weather Bureau employees at Kimpo Airport
near Seoul were among the last to be evacuated in 1950 when hostilities arose.

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

73

The work of the Bureau under the Philippine Rehabilitation Act of 1946
was brought to a conclusion on June 30 and members of the staff who had
assisted in this project for several years returned to the United States. The
Philippine Weather Bureau is now maintaining its national meteorological
service with modem, well-equipped field stations and a competent forecast­
ing center in Manila. Many Philippine meteorologists in key positions
received special training during a year or more of study in the United
States. The Manila forecast center serves not only aviation but also the
extensive marine interests in that area and the general public. Its typhoon
warning system for the islands and adjacent seas is the counterpart of the
hurricane warning service in the United States. The library of the Philip­
pine Weather Bureau, completely destroyed during Japanese occupation,
has been partially restocked with books provided by the Weather Bureau
from surplus in this country.
The network of Arctic weather stations established and operated through
cooperation of Canada, Denmark (Greenland), and the United States,
was augmented by establishment of a new station at Alert on the northern
tip of Ellesmere Island about 450 miles from the North Pole. The station
was opened on April 9, 1950, by personnel and matériel transported entirely
by airlift through collaboration of the Royal Canadian Air Force, the
United States Air Force, the Meteorological Office of Canada, and the
United States Weather Bureau. Other stations in the Arctic were resup­
plied during the summer through transportation services furnished by the
United States Navy. The Air Force provided airlift for less extensive fall
and spring resupply. The daily weather reports and upper air soundings
from these stations are vital to preparation of complete weather maps for
the Northern Hemisphere from which forecasts of cold waves and other
weather conditions affecting the United States are made.
Through special authorization by Congress two new weather stations
were established in the Hawaiian Islands to meet growing meteorological
needs in the Pacific. These stations at Hilo and Lihue furnish complete
synoptic weather observations and upper air reports. The Bureau, recog­
nizing the meteorological importance of Midway Island in the Pacific, pro­
vided a skeleton staff to continue weather observations there after the Navy
closed its long-established weather station. When hostilities broke out in
Korea the weather reports from this station proved their worth in the
emergency airlift for support of military operations in the Korean area.
In June, preparations were under way to strengthen meteorological services
at Wake Island in mid-Pacific in further aid to increased air operations in
this region.
RESEARCH AND DEVELOPMENT

In comparison with the importance of its meteorological problems the
Bureau’s research offices are small, but through cooperative projects with

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ANNUAL REPORT OF THE SECRETARY OF COMMERCE

other research institutions several important projects beyond those of its own
staff were carried on during the year. One of the most promising, although
still uncertain in its possibilities, is the forecasting of weather by numerical
process based on the speedy calculations of the electronic computer. Be­
cause of the complexities of these problems and the inadequacy of present
mathematical theory, the project is still in its preliminary stages.
Through funds transferred by the Atomic Energy Commission a weather
station was established at Idaho Falls, Idaho. The meteorological work
of the Bureau in connection with work of the Commission was continued
from previous years at other laboratory sites.
In fundamental physical research the Bureau’s research staff worked
primarily toward design and installation of apparatus for simulating in the
laboratory the processes of the free atmosphere. These studies look toward
solving some of the mysteries of cloud and rain formation and providing
knowledge essential to greater accuracy in weather forecasting. A pressure
chamber for careful observations of the behavior of falling water droplets
through distances of about 800 feet has been completed and research in the
temperature, humidity and other characteristics of droplets is under way.
The results are indicative of processes that enter into the formation and
dissipation of clouds and storms under natural conditions.
Among other developments were the installation of radar equipment in
Weather Bureau offices at Burrwood, La., Miami, and New York for ex­
perimental use in local shower and thunderstorm forecasting; an end-ofthe-runway weather observation project in cooperation with the Air Navi­
gation Development Board for improvements in ILS (instrument landing
system) landings; a new ceilometer system to improve measurements of
cloud heights; a study of line-squalls and associated barometric records
looking to relationships which would permit more definite forecasting of
tornadoes; and further development of machine card tabulation and anal­
ysis in study of atmospheric pollution, airport planning, high-level flight
and agricultural correlations. The treatise on recent research in formation
and mechanics of thunderstorms was published in a volume entitled “The
Thunderstorm” and distributed in May 1950. In the machine processing
of weather data, the huge collection of records in the punched-card library
of the Weather Bureau, Air Force, and Navy at New Orleans gave the
principal working material. The recently developed electronic flood rout­
ing machine has speeded up the accurate analysis of data for flood forecast­
ing. Additional units of this equipment have been procured for installa­
tion in the Bureau’s river forecasting centers on the principal river systems.
On June 30, 1950, the Bureau had 4,521 full-time employees, 3,372 parttime employees, and 8,440 cooperative observers who serve entirely without
pay. The number of full-time employees was 127 less than in 1949. Co­
operative and part-time observers were not greatly increased in number dur­
ing the year. As has been the case throughout the history of its 80 years of

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

75

operation, the Weather Bureau is deeply indebted to its many cooperative
observers and cooperating agencies, notably the CAA, the Coast Guard,
and the military departments, who provide many of the weather observa­
tions and reports in the vast system of synoptic reports for the hemisphere
weather maps without which the extended forecasts and warnings of
destructive weather conditions could not be successfully made.

APPENDIX

Officials of the Department

AS OF JU N E 30, 1950, EXCEPT AS O TH ER W ISE IN D IC A TE D

Secretary of Commerce.....................................
Under Secretary.................................................
Under Secretary for Transportation . . . .
Assistant Secretary 123 ..........................................
Assistant Secretary.............................................
Administrative Assistant Secretary (Adminis­
tration) ..........................................................
STAFF OFFICES

Charles Sawyer.
Vacancy}
Philip B. Fleming.2
Thomas C. Blaisdell, Jr.
Thomas W. S. Davis.
Clarence H. Osthagen.4

Solicitor [A c tin g ].............................................Matthew Hale.
Executive Assistant to the Secretary . . . . Bernard L. Gladieux.
Director, Office of Program Planning . . . . Ralph D. Hetzel, Jr.
Director, Office of Publications.................... Donald R. Burgess.
Director, Office of Budget and Management . Francis R. Cawley.
Director, Office of Personnel Administration . Oliver C. Short.
Director, Office of Administrative Services . . Gerald Ryan.
BUREAUS AND AGENCIES OF THE DEPARTM ENT

Director, Bureau of the C e n s u s .................... Roy V. Peel.5
Administrator of Civil Aeronautics................ D. W. Rentzel.6
Director, Coast and Geodetic Survey . . . . R. F. A. Studds.7
Bureau of Foreign and Domestic Commerce:
Director, Office of Business Economics . . . M. Joseph Meehan.
Director, Office of Industry and Commerce8 . H. B. McCoy.
Director, Office of International Trade . . . Raymond C. Miller.
Director, Office of Field S e rv ic e ................ Carlton Hayward.
Inland Waterways Corporation:
President.........................................................A. C. Ingersoll, Jr.
Chairman of the B o a rd ................................ South Trimble, Jr.
Chairman, Federal Maritime Board, and Edward L. Cochrane.10
Maritime Administrator.9
Commissioner of P a te n ts ................................ John A. Marzall.
Commissioner of Public Roads 11.................... Thomas H. MacDonald.
Director, National Bureau of Standards . . . Edward U. Condon.
Director, Office of Technical Services . . . . John C. Green.
Chief, Weather B ureau.....................................F. W. Reichelderfer.
1 Incumbent until Apr. 30, 1950, C. V. Whitney, resigned.
2 Took office July 24, 1950.
2 Prior to June 15, 1950, designated as Assistant Secretary for Foreign and Domestic
Commerce. Since June 15,1950, designated as Assistant Secretary for International Affairs.
4Took office Nov. 20, 1950. Position established by Reorganization» Plan No. 5 of
1950, effective May 24, 1950.
5Took office Mar. 9, 1950, succeeding Philip M. Hauser, Acting Director from Aug.
9, 1949.
6 Succeeded Oct. 4, 1950, by D. W. Nyrop.
7 Succeeded Leo Otis Colbert upon latter’s retirement, Apr. 8, 1950.
8 Known as the Office of Domestic Commerce prior to reorganization, June 1, 1950.
8 By Reorganization Plan No. 21 of 1950, effective May 24,1950, the Federal Maritime
Board and the Maritime Administration were created in the Department of Commerce,
replacing the United States Maritime Commission, an independent agency. The Chair­
man of the Federal Maritime Board is, ex officio, Maritime Administrator.
10Took office Aug. 7, 1950, succeeding John T. Koehler, Acting Administrator from
May 24, 1950.
11 Public Roads Administration was transferred, as Bureau of Public Roads, from
General Services Administration by Reorganization Plan No. 7 of 1949, effective Aug.
20, 1949.

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