Full text of Annual Report of the Secretary of Commerce : 46th Annual Report of the Secretary of Commerce, 1958

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ANNUAL

REPORT
of the Secretary
of Commerce

U . S. DEPARTM ENT
OF COMMERCE

1958

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7

46 th A N N UA L

REPORT
of the Secretary
of Commerce

UNITED STATES
GOVERNMENT PRINTING OFFICE
W ASHINGTON : 1959

U. S. DEPARTMENT OF COMMERCE
Creation and Significance
The Department of Commerce was designated as such by the
act of Mar. 4, 1913 (37 Stat. 736; 5 U. S. C. 611), which
reorganized the Department of Commerce and Labor, created by
the act of Feb. 14, 1903 (32 Stat. 826; 5 U. S. C. 591), by
transferring out of the former department all labor activities.
The Department seal of blue and gold is crested by the American
bald eagle denoting the national scope of the Department’s
activities; the ship symbolizes commerce; the lighthouse repre­
sents guidance from the darkness, translated as commercial
enlightenment; the blue denotes uprightness and constancy; and
the gold denotes purity.
The statutory functions of the Department are to foster, promote,
and develop the foreign and domestic commerce, manufacturing,
shipping, and transportation facilities of the United States. Re­
lated functions subsequently have been assigned to or removed
from the Department from time to time by legislation or Executive
order; however, the purposes have remained substantially the
same as those for which the Department was established.

For sale by the Superintendent of Documents, U. S. Government Printing
Office, Washington 25, D. C. Price 35 cents

/ 95 7*3'4
CONTENTS

Page

O rganization Chart .................................................................................
IV
O fficials of the Department.................................................................
v
T ransmittal and Statement by the Secretary of Commerce .
1
The National Economy in Fiscal 1958...........................................
5
United States Foreign Trade Developments......................................
7
I mmediate O ffice of the Secretary....................................................
9
Business Advisory Council.....................................................................
9
Office of the General Counsel............................................
10
Office of Public Information...........................................................
12
O ffice of the Assistant Secretary for Administration........... 12
Office of Administrative Operations..............................................
13
Appeals Board...................................................................................
15
Office of Budget and Management................................................
15
Emergency Planning Coordinator..................................................
18
Office of Personnel Management.................................................... 19
Office of Publications.......................................................................
21
O ffice of the U nder Secretary.....................................................
22
Coast and Geodetic Survey..............................................................
22
Patent Office...................................................................................... 27
National Bureau of Standards.........................................................
33
O ffice of the U nder Secretary for T ransportation.............
34
Civil Aeronautics Administration..........................................
35
Defense Air Transportation Administration.................................. 39
Maritime Administration.................................................................
40
Bureau of Public Roads...................................................................
45
Weather Bureau................................................................................
50
O ffice of the Assistant Secretary for D omestic Affairs. ...
58
Office of Area Development............................................................
58
Business and Defense Services Administration.............................. 60
Office of Field Services..............................................................
63
Office of Technical Services.....................................................
64
Office of Business Economics....................
67
Bureau of the Census........................................................................
71
O ffice of the Assistant Secretary for I nternational Affairs . 77
Bureau of Foreign Commerce.........................................................
78
Office of International Trade Fairs................................................ 83
I nland W aterways Corporation.....................................................
85
Appendix..................................................................................................
87
Organization and Program Chronology........................................
87
Secretaries of Commerce From 1903 to Present...........................
92
in

O RG ANIZATIO N OF THE U. S. DEPARTMENT OF COMMERCE

June 30,1958

OFFICIALS O F T H E D EPA R TM EN T

As of June 30, 1958
Secretary of Commerce....................................... Sinclair W eeks
Special Assistant............................................... G eorge H. Becker, J r .
Special Assistant............................................... P hilip M. Evans
Under Secretary of Commerce.......................... W alter W illiams
Under Secretary of Commerce for Transporta­
tion.................................................................. Louis S. R othschild
Deputy Under Secretary of Commerce for
Transportation.............................................. Bradley D. N ash
Assistant Secretary of Commerce for Adminis­
tration ............................................................. George T. M oore
Director, Office of Administrative Opera­
tions................................................................ W illiam M. M artin
Director, Agency Inspection Staff.................G riswold F orbes
Chairman, Appeals Board.............................. F rederic W. O lmstead
Director, Office of Budget and Manage­
ment............................................................... O scar H. N ielson
Emergency Planning Coordinator................. Ernest V. H olmes
Director, Office of Personnel Management.. Carlton H ayward
Director, Office of Publications........... ..........D onald R. Burgess
Security Control Officer..................................J ohn W. P hillips
Assistant Secretary of Commerce for Domestic
Affairs............................................................. F rederick H. M ueller
Deputy Assistant Secretary of Commerce for
Domestic Affairs........................................... Carl F. O echsle
Assistant Secretary of Commerce for Interna­
tional Affairs................................................. H enry K earns
Deputy Assistant Secretary of Commerce for
International Affairs..................................... M arshall M. Smith
General Counsel.................................................. F rederick C. N ash
Deputy General Counsel................................J. Allen O verton, J r .
Director of Public Information.......................... A lbert N. Leman
Heads of Bureaus and Offices Reporting to—
U nder Secretary of Commerce:
Director, Coast and Geodetic Survey........... H. Arnold K aro
Commissioner, Patent Office.......................... R obert C. W atson
Director, National Bureau of Standards.... A. V. Astin
v

U nder S ecretary of C ommerce for T rans­
portation :

Administrator, Civil Aeronautics Adminis­
tration............................................................. J ames T . P yle
Administrator, Defense Air Transportation
Administration.............................................. T heodore H ardeen , J r .
Chairman, Federal Maritime Board............. C larence G. M orse
Administrator, Maritime Administration. . . C larence G. M orse
Federal Highway Administrator.................... B. D. T allamy
Commissioner of Public Roads...................... Vacancy
Chief, Weather Bureau................................... F. W. R eichelderfer

A ssistant S ecretary of C ommerce for
D omestic A ffairs :

Director, Office of Area Development.......... V ictor R oterus
Administrator, Business and Defense Services
Administration........................................... H. B. M cCoy
Director, Office of Field Services............... B radley F isk
Director, Office of Technical Services. . . . J ohn C. G reen
Director, Office of Business Economics.........M . J oseph M eehan
Director, Bureau of the Census...................... R obert W . B urgess

A ssistant S ecretary of C ommerce for
I nternational A ffairs :

Director, Bureau of Foreign Commerce....... L oring K. M acy
Director, Office of International Trade

Fair s .......................................................................... W alter S. S hafer
vi

46th

ANNUAL REPORT OF THE SECRETARY
OF COMMERCE

Transmittal and Statement
D epartment of C ommerce ,
O ffice of the S ecretary ,

Washington, November 3, 1958.
S irs : I have the honor to report to you the services and information
provided to industry and business by the Department of Commerce
during the fiscal year ended June 30, 1958.
The Coast and Geodetic Survey continued its basic program of surveying
and charting in support of marine and air commerce. Major accomplish­
ments were the detailed survey of the eastern half of Georges Bank in
behalf of the fishing industry, cooperation with several States in the estab­
lishment of geodetic monuments along interstate highway routes, and the
large-scale photogrammetric mapping of the Chantilly Airport site pre­
liminary to the location of runways and other construction. Participation
in the International Geophysical Year was highlighted by observational
work in geomagnetism, seismology, geodesy, and oceanography.
This was the second year in the 8-year program of the Patent Office
for reducing the backlog of pending applications. Considerable progress
was made in achieving conditions essential to the success of this program
and improving the status of work in the Patent Office. Most noteworthy
was the fact that the examining staff was successfully increased to the full
number planned despite difficulty in recruiting personnel earlier in the
program and continued high turnover. With more than half the examiners
being new and inexperienced, it was not possible in the span of 1 year to
achieve the production level needed to dispose of the number of appli­
cations originally planned for 1958. Disposals, however, were the highest
in any year since 1933 and exceeded receipts of new applications by a
substantial margin.
Encouraging developments were made in the continuing effort of the
Patent Office to devise feasible systems for the mechanized searching of
1

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A N N U A L R E P O R T O F T H E SE C R ET A R Y O F CO M M ERC E

patents. One such system was put into operational use in the examination
of applications in the chemical field of steroid compounds.
The trademark examining operation of the Patent Office continued to
function at a high level of activity, receiving the second highest annual
volume of applications in its history and disposing of nearly as many
applications with fewer examiners than were available last year.
Progress in technology and scientific research are dependent upon the
continuous effort of the National Bureau of Standards to provide standards
and methods of measurement in new and unexplored areas. To meet
the increasing demand for its services by industry and science, the Bureau
has been concentrating more of its effort on its basic responsibilities for
measurement and has been transferring its personnel from “other-agency”
work to basic Bureau problems. Increasing emphasis has been placed on
such critical fields as high-temperature research, high-energy radiation,
electronic standards, and high-purity materials.
The Civil Aeronautics Administration has under way the biggest program
in history to strengthen air safety and flight reliability. Excellent progress
was made in the second year of the Federal Airway Plan toward providing
a modernized air traffic control system to handle adequately the everincreasing air traffic and the jet aircraft expected by 1959. A second and
third in a series of progress reports were published on the many operational
problems to be met with the introduction of commercial jets. Aid to
communities in providing and maintaining an adequate national system
of airports continued at a high level.
The planning for mobilization of civil aviation resources in wartime,
which is the primary function of the Defense Air Transportation Admin­
istration, has progressed materially. Among the significant accomplish­
ments are the advances in the planning for the Civil Reserve Air Fleet,
particularly regarding war risk insurance, Operations Boards agreements,
and standby contracts.
The Maritime Administration, working with industry and encouraging
and guaranteeing private investment, continued to promote the largest
shipbuilding program in our history and to move ahead in the field of
research and development. Highlight of the year was the keel-laying of
the world’s first nuclear-powered merchant ship, the NS. Savannah.
Responsive to nationwide needs for improved highway transport serving
automobile use, commerce and industry, and defense, the Bureau of
Public Roads engaged in a wide range of administrative, engineering,
and research activities concerned with the planning and development of
adequate, modern highway systems. Progress in the vast program of
Federal aid to the States for highway improvement, including construction
of the National System of Interstate and Defense Highways, continued to
accelerate. During the year $2.75 billion of Federal funds was obligated
for highway improvement.

A N N U A L R E P O R T O F T H E SE C R ET A R Y O F CO M M ERC E

3

The phenomenal growth of aeronautics, the introduction of high-flying
passenger-carrying jet aircraft, the development of missiles and satellites,
and the expanded collection of global weather data through the meteor­
ological program of the International Geophysical Year—along with a
host of recent technological developments—have placed on the Weather
Bureau much greater responsibilities and wider opportunities for providing
weather services deemed essential to the Nation’s economy and welfare.
In developing the broad plans needed to keep abreast of the changing
weather service needs of our economy, Weather Bureau scientists will be
supported by several recent outstanding accomplishments in the field of
meteorology that have been made possible through earlier research pro­
grams and the adaptation of radar, electronic computers, data-processing
equipment, and other modern products of business and industry.
The President, by Executive Order 10771 of June 21, 1958, assigned to
me the responsibility of directing and supervising the operating phase of
the Saint Lawrence Seaway Development Corporation. Adding a vital
link to our national transportation system, the seaway will prove a potent
factor in the development and promotion of our domestic commerce and
foreign trade.
We participated in the development of United States policies affecting
foreign trade and investment, in efforts to liberalize trade and travel
barriers throughout the world, and in international trade negotiations.
We strengthened and expanded our advisory and informational services
to business on foreign trade and investment matters, and reevaluated,
revised, and added to our foreign commerce publications. While easing
controls on nonstrategic goods, we tightened those on strategic exports.
The Office of International Trade Fairs organized and produced 11
official United States exhibits, with the wholehearted support of United
States industry, at major international trade fairs in Europe, North Africa,
the Near East, and the Far East. Here, close to 10 million people overseas
saw for themselves the tangible evidence of a peaceful, productive America.
Showing extensive displays of American-made consumer goods, we stressed
the wide range of style and price of these items—always underscoring the
fact that these products are available to the vast majority of Americans
because of our system of free enterprise and mass production.
We actively participated in the Administration’s successful effort for
extension and improvement of the Reciprocal Trade Agreements Program.
Main objectives of this program are to protect the more than 4% million
American workers whose jobs depend upon world trade and to strengthen
the free world economy and security.
Recent developments in our economy and in those of other nations
put new emphasis on the importance of our work in regard to the business
and industrial economy. We continued our basic services in this area,
including analysis of current and prospective trends in important industries,
487307— 59 ------------ 2

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A N N U A L R E P O R T O F T H E SE C R ET A R Y O F CO M M ER C E

and are laying and acting upon plans for increasing emphasis in this field.
Important progress was made in our industrial mobilization preparedness
program, particularly in the Executive Reserve and national survival
planning programs.
More and more cities, towns, and regional associations recognize that
sound local growth and development can be accomplished through wellplanned community action. An increasing number of these groups came
to the Office of Area Development for technical and program suggestions
on how they could develop new industries and create new jobs without
Federal subsidies and assistance. The Office strengthened its relations
with the growing number of State development agencies and assisted many
industrial firms with problems of plant location.
In a year characterized by a business downturn, the economic informa­
tion and analyses turned out by the Office of Business Economics were
highly useful as guides to Government agencies and business. The circu­
lation of the Department’s major economic periodical, its monthly Survey of
Current Business, increased by more than one-third, and the normal steady
stream of timely intelligence reports was augmented. In the fall of 1957
OBE published a 344-page Business Statistics supplement to the Survey, and
by mid-1958 had issued new data on the movements of national income
and gross national product since the beginning of the 1954-57 business
rise.
OBE’s anticipatory statistics on domestic investment, instituted a decade
ago in its quarterly survey of private business programs for new plant and
equipment expenditures, provided invaluable information on the extent
of change in investment. Recognizing the need for more complete knowl­
edge of the effects of fast-growing, direct, United States private foreign
investments, the Office also published the results of a special survey in this
hemisphere, under the title U. S. Investments in the Latin American Economy.
The Bureau of the Census began publishing the detailed results of the
1957 Census of Governments; completed the publication program of the
1954 Censuses of Agriculture, Business, Manufactures, and Mineral In­
dustries comprising over 30,000 printed pages; and accomplished prepara­
tory work for the 1958 and 1959 censuses covering the same fields as those
for 1954 and for the 1960 Censuses of Population and Housing. In addi­
tion, the Bureau’s current programs continued to provide up-to-date in­
formation on economic and social aspects of the Nation’s development.
One example of activity in the current program was the national housing
inventory, final results of which provide specific information on changes in
the housing situation since the 1950 housing census. A new service under­
taken was the National Health Survey, conducted as a continuing survey
of 45,000 households for the Department of Health, Education, and
Welfare.

A N N U A L R E P O R T OP T H E SE C R ET A R Y O P C O M M ERC E

5

Following a general description of the condition of our national economy
and developments in foreign trade, there is attached a full report of the
Department’s accomplishments and expenditures for fiscal 1958.
Secretary of Commerce.

T he P resident of the S enate .
T he S peaker of the H ouse of R epresentatives .

T H E N A T IO N A L EC O N O M Y IN FISCAL 1 9 5 8

Unlike the years preceding, fiscal 1958 opened with a higher rate of
economic activity than marked its end. Although the year will be charac­
terized as one of business downturn, it nevertheless contained also the
beginning of recovery. Thus, since the modest rise of the final quarter
gave promise of continuing, the year as a whole may be remembered for
its upturn as well as decline. The change in direction was accomplished
in the face of continued inventory liquidation and without the stimulus of
a rising trend in business outlays for new plant and equipment. A general
expectation of further strength in those elements encouraged confidence in
speedy resumption of the long-term growth rate.
In the initial quarter of fiscal 1958 the annual rate of gross national
product attained the highest level ever recorded, and subsequent develop­
ments established that rate as the peak of the rise that had been in process
for almost 3 years previous. The decline experienced in the middle quar­
ters of fiscal 1958 reduced the annual rate of GNP by $20 billion—to a
level of $426 billion. This was the low point of the fiscal 1958 economic
downturn, since a rise in output was again recorded in the final quarter.
Business inventory accumulation and increased capital outlays for new
plant and equipment, which had been important elements in the long
upward movement ending in fiscal 1958, ceased to provide stimulus to the
economy after the first quarter of that year. The change in inventory
policy resulted in a shift, within a 6-month period, from production in
excess of final purchases to a situation in which final purchases were absorb­
ing goods at an annual rate $9 billion in excess of production. Outlays
for new plant and equipment, which had risen steadily to an annual rate
approaching $38 billion in the first quarter of the fiscal year, were down to
about $30 billion in the closing quarter.
Perhaps most evident to the general public was the marked reduction in
automobile output, which proceeded at a relatively high rate after the
introduction of 1958-model passenger cars, only to be cut back severely as
dealers’ sales remained at a low level. As manufacturers’ orders fell off,
and their sales as well as inventories declined, the effect upon production
rates was progressively greater.

6

A N N U A L R E P O R T O F T H E SE C R ET A R Y O F CO M M ER C E

Total civilian employment, at an all-time high above 67 million in July
1957, fell below 62 million in February 1958, with unemployment rising
from about 3 million to almost 5.2 million. In the same period, seasonally
adjusted employment in durable goods manufacturing was reduced by
1 million.
The extent of the overall decline in national economic activity occasioned
extensive speculation as to its ultimate depth and duration. More im­
mediately, decisions had to be made on Government fiscal policy—on the
need for, and the character of, extraordinary antirecession measures. In
these assessments the economic intelligence furnished by the Commerce
Department proved invaluable. Presenting an economic analysis to the
House Banking and Currency Committee, Secretary Weeks showed “how
our detailed knowledge of business activity has been enlarged” and pointed
out that “we now have measures like those of national income and gross
national product which tell us not only how the economy is faring as a whole,
but also allow us to watch the movement of important parts of the
mechanism.”
Thus, the Department’s monthly estimates of personal income revealed
in February a decline of less than 2 percent from the peak rate of the previous
August. While the effect of the contraction in consumer spending was
apparent in reduced sales of consumer durable goods, especially auto­
mobiles, the economic data also showed that consumer purchases of non­
durable goods and services had been well maintained. Although a sharp
drop had occurred in corporate profits and in wage and salary disburse­
ments, the former was not fully reflected in the flow of dividend payments
and the latter was to a considerable extent offset in total by rising Govern­
ment payments for unemployment and other social security benefits.
Purchasing power in agricultural areas was bolstered by the rising trend
in farm proprietors’ income which began in December 1957. Further­
more, Government purchases of goods and services continued to increase
throughout the period of overall decline, mainly because of expanded State
and local outlays.
A full account of all public and private developments significantly
affecting the course of the economy during this period is contained in the
Department’s monthly magazine Survey of Current Business, published by the
Office of Business Economics.
Analysis of the increase in the annual rate of gross national product
which occurred in the fourth quarter of fiscal 1958—to $429 billion, from
the $426 billion low of previous quarters—reveals the interaction of the
various economic elements mentioned above. By the end of June 1958,
the annual rate of personal income had regained its former peak level.
Personal consumption expenditures in that quarter were in total equal to
their highest previous figure, increased expenditures for nondurable goods
and services having offset the reduction in spending for autos and house­

A N N U A L R E PO R T OF T H E SE C R ET A R Y O F C O M M ER C E

7

hold durables. A higher rate of Federal Government purchases, mainly
for defense procurement, reinforced the steady rise in State and local
outlays. With manufacturers’ sales and new orders showing some pickup
the rate of inventory liquidation had slackened. The steady decline in the
industrial production index which characterized most of fiscal 1958 was
ended in the closing months.
U N IT E D STATES FO R E IG N TR A D E DEV ELO PM ENTS

United States foreign trade in the fiscal year ended June 30, 1958, fell
short of the record level attained in the preceding period.
According to preliminary estimates, the value of nonmilitary exports
dropped by 8 percent from the peak of $19.2 billion recorded in fiscal 1957
but continued well above earlier rates. Much of the cutback stemmed from
the passing of temporary factors which had raised exports of petroleum,
coal, wheat, and cotton to unusually high levels in the year ended June 30,
1957. Reflecting the decline in exports, the ratio of nonmilitary exports to
gross national product decreased from 4.4 to 4.1 percent.
i he rate of increase in imports slowed considerably as compared with
that in either of the 2 preceding fiscal years. The value of imports (par­
tially estimated) advanced by only about 1 percent from the fiscal 1957
level of $12.7 billion, as increases in purchases of finished manufactures and
foodstuffs slightly exceeded decreases in raw materials. In proportion to
the gross national product, imports were barely maintained at 2.9 percent.
The gam in volume of purchases made abroad was somewhat larger than
the gam in their value in fiscal 1958, as average import prices fell slightly.
Export prices, on the other hand, were rising moderately, and exports de­
clined more steeply in volume than in value.

Exports

Agricultural exports decreased in value from $4.7 billion in fiscal 1957
to about $4 billion in the following year. A major part of this drop reflected
reductions in wheat and cotton shipments from exceptionally high levels
attained in fiscal 1957. A good harvest in Western Europe lowered that
area’s import requirements for wheat, while world demand for United
States cotton returned to relatively normal levels, after climbing in fiscal
1957 with the cut in cotton export prices to internationally competitive
levels.
The value of nonfarm shipments abroad fell by approximately 5 percent
from the total of $14.3 billion registered in fiscal 1957. Playing major roles
in the decline were reduced shipments of petroleum, of coal, and of metals
which had all been at peak values in that year.
Sales of crude petroleum and petroleum products subsided after having
expanded to about twice their usual volume in fiscal 1957, when Western

8

A N N U A L R E P O R T O F T H E SE C R ET A R Y O F C O M M ER C E

Europe had temporarily substituted United States supplies for Middle
Eastern oil. Coal shipments also receded, reflecting the abatement^ of
demand which had been generated by the Suez crisis and also the leveling
off of European industrial production. In addition, sales abroad of metals
diminished following their sharp expansion in the preceding period to meet
peak foreign demand.
Exports of machinery—by far the leading export category—showed an
increase in fiscal 1958. These rose by about 3 percent from the $3.8 billion
level recorded a year earlier. Latin America, our leading market for ma­
chinery, received most of the increase in these shipments.
Among major areas, Latin America was the only one to which sales ex­
panded in fiscal 1958. Total exports to the 20 American Republics in­
creased by nearly 10 percent from the value of $4.3 billion registered in the
preceding period. On the other hand, exports to Canada dropped by
more than 10 percent from the $3.9 billion level of fiscal 1957, reflecting in
large part the dip in the economy of that country. Declines also appeared
in the values of exports to Western Europe and to the Far East, as shipments
to those areas decreased by approximately 15 percent each from high fiscal
1957 levels of $6.1 and $3.2 billion, respectively.
Imports

United States imports of manufactured goods rose in fiscal 1958 by over
5 percent from the $2.8 billion level of the preceding period. The advance
largely reflected growing automobile imports, mainly from Western Ger­
many and the United Kingdom.
_
_
Also showing gains were imports of foodstuffs, as increases in purchases
of meat, edible cattle, sugar, and cacao more than outweighed declines in
coffee deliveries here.
The inflow of crude petroleum and fuel oil continued its strong upward
trend but the value of other raw materials fell sharply, reflecting, in the
main’ the slowing of United States manufacturing production. Particu­
larly pronounced were reductions in metal imports especially copper,
nickel, tin, and steel-mill products.
On an area basis, the advance in imports was largely limited to pur­
chases from Western Europe. These rose by nearly 5 percent from the
fiscal 1957 value of $3.0 billion. Deliveries from other areas remained
close to the levels reached in fiscal 1957, when goods from Latin America,
our leading foreign source, had been valued at $3.7 billion, those from
Canada at $2.9 billion, and those from the Far East at $1.9 billion.

Immediate Office of the Secretary
BUSINESS A D V ISO R Y C O U N C IL

The Business Advisory Council, which celebrated its 25th anniversary in
May 1958, held five scheduled meetings during the year with the Secretary
of Commerce and other senior United States Government officials. Views
were exchanged on the state of the economy, taxation, foreign commerce,
labor policy, and other topics of concern to the Department. As in the
past, many subcommittee meetings were also held.
Seven new members were added and seven members were lost by death.
As of June 30, 1958, the active membership was composed of:

*S. D. Bechtel, Chairman, San Francisco,
Calif.
♦ Ernest R. Breech, Vice Chairman, Dear­
born, Mich.
♦ Ralph J. Cordiner, Vice Chairman, New
York, N. Y.
♦ T. V. Houser, Vice Chairman, Chicago,
111.
♦ Devereux C. Josephs, Vice Chairman,
New York, N. Y.
George A. Wyeth, Jr., Executive Director
Walter White, Consultant
Robert B. Anderson, Washington, D. C.
♦ James B. Black, San Francisco, Calif.
♦ Roger M. Blough, New York, N. Y.
♦ Harold Boeschenstein, Toledo, Ohio
Fred Bohen, Des Moines, Iowa
Kenneth C. Brownell, New York, N. Y.
♦ Paul C. Cabot, Boston, Mass.
James V. Carmichael, Atlanta, Ga.
Walker L. Cisler, Detroit, Mich.
♦ Lucius D. Clay, New York, N. Y.
John L. Collyer, Akron, Ohio
Charles E. Daniel, Greenville, S. C.
Paul L. Davies, San Jose, Calif.
Marion B. Folsom, Washington, D. C.
G. Keith Funston, New York, N. Y.
Elisha Gray II, St. Joseph, Mich.
Crawford H. Greenewalt, Wilmington,
Del.
Alfred M. Gruenther, Washington, D. C.
Joseph B. Hall, Cincinnati, Ohio
Robert M. Hanes, Wmston-Salem, N. C.
♦ Eugene Holman, New York, N. Y.
Herbert Hoover, Jr., Los Angeles, Calif.
Gilbert W. Humphrey, Cleveland, Ohio
♦ Member of Executive Committee.

F. R. Kappel, New York, N. Y.
E. H. Lane, Altavista, Va.
Joseph L. Lanier, West Point, Ga.
Fred Lazarus, Jr., Cincinnati, Ohio
Barry T. Leithead, New York, N. Y.
Augustus C. Long, New York, N. Y.
J. Spencer Love, Greensboro, N. C.
Roswell Magill, New York, N. Y.
J. W. McAfee, St. Louis, Mo.
Neil McElroy, Washington, D. C.
Earl M. McGowin, Chapman, Ala.
Aksel Nielsen, Denver, Colo.
C. H. Percy, Chicago, 111.
A. Q . Petersen, New Orleans, La.
*T. S. Petersen, San Francisco, Calif.
Paul Pigott, Seattle, Wash.
Gwilym A. Price, Pittsburgh, Pa.
Reuben B. Robertson, Jr., Hamilton, Ohio
William E. Robinson, New York, N. Y.
Donald J. Russell, San Francisco, Calif.
Charles Sawyer, Cincinnati, Ohio
C. R. Smith, New York, N. Y.
♦ J. P. Spang, Jr., Boston, Mass.
A. E. Staley, Jr., Decatur, 111.
♦ Frank Stanton, New York, N. Y.
R. Douglas Stuart, Chicago, 111.
Gardiner Symonds, Houston, Tex.
A. Thomas Taylor, Chicago, 111.
♦ Charles Allen Thomas, St. Louis, Mo.
E. J. Thomas, Akron, Ohio
Juan T, Trippe, New York, N. Y.
John C. Virden, Cleveland, Ohio
Thomas J. Watson, Jr., New York, N. Y.
John Hay Whitney, London, England
Langbourne M. Williams, New York,
N. Y.
9

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ANNUAL REPORT OF THE SECRETARY OF COMMERCE

OFFICE OF THE GENERAL COUNSEL
The Office of the General Counsel serves as legal counsel to the Secre­
tary of Commerce, the Under Secretaries, and the Assistant Secretaries as
well as to the heads of primary organization units who provide policy
guidance to their respective units of the Department.
The General Counsel, as the chief legal officer of the Department, has
general overall responsibility for the supervision of the conduct of legal
affairs throughout the Department, including those constituent units
which support comprehensive legal staffs. This leadership is exercised
directly, and all key officials of such staffs are considered to be members of
the Office of the General Counsel of the Department.
As it is the mission of the Department of Commerce to foster, develop,
and promote foreign and domestic commerce, the Office of the General
Counsel concerns itself in detail with legal aspects of all Federal programs
relating to business and industry to be able to advise and give counsel to
the Secretary and to other policy officials with respect thereto.

Legislative Activities

The Office of the General Counsel has direct responsibility for depart­
mental legislative services including legislative liaison with the Congress
and within the executive branch and excluding only legislative service for
fiscal matters of budget significance, for which the Assistant Secretary of
Commerce for Administration is responsible.
In dischax'ging these responsibilities, the Office handled over 12,000
requests for congressional services during fiscal 1958. It also prepared or
reviewed 656 reports on pending or proposed legislation which were sub­
mitted to Congress or to agencies of the executive branch.

Domestic Affairs

The Domestic Affairs Division performed all legal work for the Business
and Defense Services Administration, Office of Business Economics, Bureau
of the Census, Office of Technical Services, Coast and Geodetic Survey,
and National Bureau of Standards. For the Patent Office it performed
legal work in matters other than the issuance or denial of patents and
registrations of trademarks.
In addition to this legal work the Division provided legal services for
other Government agencies in drafting and perfecting legislation for the
purpose of establishing the Airways Modernization Board, the National
Aeronautics and Space Administration, and the Federal Aviation Agency.

International Affairs

The International Affairs Division performed the legal work for the
Bureau of Foreign Commerce and Office of International Trade Fairs in
relation to export and import trade, international travel, private overseas

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

H

investment, and operations in the international field authorized by the
Export Control Act, the Trade Fair Participation Act, the Foreign-Trade
Zones Act, the China Trade Act, the Trade Agreements Act, and the
so-called British Token Import Plan.
Export control legal work chiefly comprised the handling of adminis­
trative proceedings on the denial of export privileges and assistance to the
Department of Justice in the preparation and prosecution of criminal
cases. Investigative reports on 65 violations cases were received and
reviewed; 15 warning letters, 18 charging letters, and 20 final orders were
issued. Two cases were brought to the attention of the Justice Depart­
ment for criminal prosecution.
The Division handled the negotiation and preparation of approximately
45 contracts for design, architectural and construction services, and also for
procurement of special services required in the mounting of joint Govern­
ment-industry exhibits at 16 international trade fairs around the world.
The Division was involved in the drafting of the British Token Import
Plan regulations and the processing of scrip applications for exports to
the United Kingdom covered by the plan. It also reviewed a number of
Foreign-Trade Zones Board actions and dividend actions of certain China
Trade Act corporations.

Transpo rtation

The Transportation Division performed all legal work falling within
the responsibilities of the Under Secretary of Commerce for Transportation
for the Bureau of Public Roads, Civil Aeronautics Administration, Defense
Air Transportation Administration, Maritime Administration, and
Weather Bureau.
The Division was especially occupied with legislation relating to the
Transportation Act of 1958, the Federal-Aid Highway Act of 1958, the
Federal Aviation Act of 1958, and revision of the Federal highway laws.
The Division was also occupied with preparation of standards for control
by the States of advertising along the National System of Interstate and
Defense Highways.

General Legal Services

The General Legal Services Division reviewed all contracts entered into
by the Department which must be approved by the Secretary or submitted
for legal approval pursuant to Department order. The Division prepared
or reviewed 230 contracts, leases, bonds, agreements, and similar con­
tractual matters and 71 requests from constituent units of the Department
for opinions of the Attorney General or Comptroller General and other
matters submitted to these officials, including reports on litigation. It
also rendered 319 legal opinions and other legal memoranda and handled
506 miscellaneous legal matters.
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ANNUAL REPORT OP THE SECRETARY OP COMMERCE

This Division reviewed for legal effect all Department orders; received
and processed applications for free use of Government-owned patents;
maintained legal liaison with the appropriate administrative divisions
concerned with personnel, budget, and appropriation problems; reviewed
matters arising under the Federal Tort Claims Act; and rendered day-today legal consultative services to the various administrative divisions.

OFFICE OF PUBLIC INFORMATION
The Office of Public Information, by issuing factual information to
the private media of communication, helped bring to public notice such
authorized departmental programs as scientific and technological research,
business growth, foreign trade expansion, aviation safety, highway develop­
ment, weather forecasting, and merchant marine shipbuilding.
Maintaining an “open door” policy on departmental news, OPI aided
correspondents, editors, radio and television broadcasters, and businesspaper writers in reporting Commerce activities through the medium of
news conferences, radio and television appearances, background briefings,
addresses, statements, and magazine articles.
OPI conducted editorial research to provide up-to-date material for
use in speeches and statements by top officials in their appearances before
business and community groups.
A science feature service, based on the Department’s scientific and
technological activities, was initiated in response to growing public interest
in this phase of the Department’s endeavors.
With the cooperation of constituent bureaus and offices, circulation and
distribution procedures were further improved to assure more efficient
coverage of outlets for the Department’s informational services.

Office of the Assistant Secretary
for Administration
The Assistant Secretary of Commerce for Administration serves as the
principal assistant to the Secretary on all matters of departmental adminis­
tration and management. The primary responsibility of this Office is to
assure the effective administration of the Department’s programs and
proper departmental representation before other Government agencies.

ANNUAL REPORT OP THE SECRETARY OP COMMERCE

13

The Assistant Secretary also provides policy direction to the activities of
the Agency Inspection Staff, Appeals Board, Emergency Planning Co­
ordinator, and the Offices of Budget and Management, Administrative
Operations, Personnel Management, Publications, and Security Control^

OFFICE OF ADMINISTRATIVE OPERATIONS
The Office of Administrative Operations is the central facility responsible
for staff management of administrative services throughout the Department.
It assists primary organization units in the review, appraisal and adminis­
tration of programs relating to property and space, records, general
services including procurement and communications, safety and motor
vehicles, and library services and facilities.
The cost of operating and maintaining the Department’s motor vehicle
fleet continued to hold below the average for all Government agencies. In
recognition that further economies can be made through preventive
maintenance, the Office developed a departmentwide plan for the uniform
maintenance of all vehicles. This includes inspection schedules, supporting
records, and training for bureau fleet managers. Reduction of maintenance
costs by at least 1 cent per mile has been established as the target. Co­
operative studies in 13 cities with the General Services Administration
(GSA) of proposed interagency motor pools comprised a large part of the
year’s motor vehicle activities. Implementation of the preventive main­
tenance program and a new training film for drivers were planned for
fiscal 1959.
The Office initiated a departmentwide, in-service training program for
improvement in correspondence. More than 980 employees attended
correspondence workshops, and 125 attended mail operations workshops.
Over 141,000 cubic feet of records were removed from operating space
in the Department. This released for reuse or reassignment personal
services, equipment, and space worth $430,000.
Top management in all units of the Department completed an evaluation
of safety progress in initiating positive steps to increase effectiveness of
accident-prevention efforts. As a result, full-time safety personnel was
appointed in several field areas where hazardous operations justify more
intensive safety supervision. The previous overall rate of accidents was
reduced by 5 percent. Primary emphasis was placed upon the develop­
ment of a complete training kit dealing with the supervisor’s responsibility
for safety and a complete eye-protection program for all employees.
Real property holdings of the Department now stand at 1,060 installa­
tions valued at $500 million. The Office participated in a primary organi­
zation unit review of all real property holdings to determine needs under
current programs. In cooperation with Bureau of the Budget repre­

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ANNUAL REPORT OF THE SECRETARY OF COMMERCE

sentatives, the Office inspected real property holdings of major field
installations. Arrangements were made to cross-service warehousing
facilities between the Maritime Administration and the Bureau of the
Census for specific requirements. Operations were improved by consoli­
dating four regional warehouses into one central warehouse.
The Department was assigned 237,000 square feet of additional space to
provide for expanding programs. As a result, it was possible to bring
together within the main Commerce Building all of the units of the Patent
Office, Office of Business Economics, and the Bureau of Foreign Commerce,
thereby saving both manpower and time. Assignment of this new space
to the Department was somewhat offset by the release of 76,600 square feet
of space to GSA for reassignment.
Personal property valued at $1,526,600 was declared excess to the needs
of the Department and turned over to GSA. Personal property with a
new value of $4,432,000 was disposed of by other means, and the Depart­
ment saved approximately $230,000 by using excess property to fill
requisitions which otherwise would have resulted in new purchases.
Approximately 35 percent of the transactions made in the Office of the
Secretary area were handled with imprest funds. This is 10 percent more
than were handled similarly in the previous year. Total transactions were
reduced 5 percent by incorporating individual orders in one purchase
order each month. Although paperwork savings derived from handling
small purchases in this manner cannot be measured, they are nevertheless
substantial.
Placing of telephone services in the Office of the Secretary area on an
actual-cost basis greatly simplified billing procedures. Inauguration of
interdepartmental through-dialing and other refinements reduced the
number of operators from 15 to 9.
Transfer of certain units from the main building combined with expansion
of certain functions increased mail and messenger service requirements,
but this was absorbed through simplification of mail-handling procedures.
The contribution of the library to the total effort of the Department can
be assessed in terms of the loan of 108,900 publications, use of reading
rooms by 44,900 readers, and the receipt of 21,500 requests for information,
indicating that the facility is serving its purpose well.
Sales and distribution of scientific and other publications increased 35
percent during the year. About two-thirds of the additional workload was
absorbed by work simplification. Removal from stock of nearly 200,000
obsolete publications was one of the highlights of the simplification process.
Relief in the stockrooms is probably temporary, however, as it is estimated
that new items received in the 1959 fiscal year will exceed the total inven­
tory of publications already on hand.

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

15

APPEALS BOARD
The Appeals Board for the Department of Commerce serves as an
impartial body to make final decision on certain appeals from the public
when adversely affected by orders, regulations, or administrative action of
the Department in connection with export control matters, importation of
foreign excess property, or other statutory authority of the Department.
It also hears appeals relating to contracts of the Bureau of Public Roads,
and other appeals specifically assigned to it by appropriate authority.
During the past fiscal year the Board disposed of 36 appeals involving
one formal hearing.

OFFICE OF BUDGET AND MANAGEMENT
The Office of Budget and Management is the central facility for the
direction of the Department’s financial affairs and organizational develop­
ment. It develops departmental policy within its area of responsibility,
reviews budget estimates, establishes procedures for the control of all
funds, reviews organizational structures, develops organizational plans,
and makes continuing studies of functional and organizational relationships.
The Office reviews departmental administrative and operating practices,
procedures, and methods; evaluates the Department’s programs in terms
of efficiency of management and economy of operations; promotes par­
ticipation in the Department’s management improvement program and
governmentwide joint program for improvement of accounting; furnishes
a central fiscal advisory service to all bureaus; and assists the Assistant
Secretary of Commerce for Administration in providing staff support to
top management.

Budget Activities

The Office of Budget and Management considered regular annual
budget estimates for the fiscal year ending June 30, 1959, and after review
and analysis by the Office, the Secretary of Commerce approved $1,159,148,000 for transmittal to the Bureau of the Budget. The President’s
budget, transmitted to the Congress in January 1958, included $890,791,000
for the Department of Commerce. Congress appropriated $851,754,000.
In addition to the regular annual budget estimates, supplemental appro­
priation requirements for fiscal 1959 of $231,943,300 were reviewed and
approved by the Secretary for transmittal to the Bureau of the Budget.

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ANNUAL REPORT OF THE SECRETARY OF COMMERCE

The President approved $86,308,000 for transmittal to the Congress,
which appropriated $81,932,500.
In addition to the regular appropriations for the Department, the
Congress appropriated $2,350,000,000 from the Highway Trust Fund to
finance the Federal-aid highway program for fiscal 1959.
Funds in the amount of $1,644,454 were withdrawn as of June 30, 1958,
under the provisions of Public Law 798, 84th Congress, which requires
the withdrawal of funds unobligated at the close of each fiscal year.
Summary of Balances, Appropriations, and Expenditures, Department of
Commerce, Fiscal Year Ended June 30, 1958
Unexpended Appropriation Total (columns Expenditures
1 and 2)
fiscal year
balance
fiscal year
1958
1958
June 30, 1957
General accounts:
38, 392,267
1 32, 717,698
32, 777, 700
General Administration.................................. I ? 5 ,614, 567
11,112,651
13,905,569
12, 521,250
1, 384, 319
Bureau of the C e n s u s .....................
275, 122, 234
489, 896,016
353, 794, 917
Civil Aeronautics Administration................. 136,101,099
12,611, 865
18,632,709
14,228,037
4,404,672
Coast and Gqpdetic Survey.................
Business and Defense Services Adminis­
5, 788, 122
6,449,631
5, 889, 506
560,125
tration ............................................................
376,977
396, 380
396, 380
Office of Area Development...........................
5, 347,293
5,919, 849
5,615, 250
304, 599
Bureau of Foreign Commerce.......................
1,013,162
1,145,519
1,071, 217
74, 302
Office of Business Economics........................
173, 719, 230
312,652, 194
56, 832,258
Maritime Administration............................... 255, 819,936
18, 531,749
20,918,462
19, 545,000
1, 373,462
Patent Office.. . ................................................
51, 120, 873
116,473,146
40,033,000
Bureau of Public Roads................................. 76,440, 146
5,423,069
16,
296,
774
10,183,561
6,113,213
National Bureau of Standards......................
39,276, 303
51,653, 189
39, 814, 896
11, 838, 293
Weather Bureau...............................................
602,161,226
562, 702,972 1,062, 731,705
Total, General Accounts.................... 500,028, 733
Highway Trust Fund...................................... 84,493, 266 1,690,000,000 1, 774,493, 266 1,511, 395,685
Total Department of Commerce.... 584, 521,999 " 2,252, 702,972 2,837,224,971 2, 113,556,911
1 Includes Inland Waterways Corporation in liquidation.

Management Activities

Further refinement of budget planning and programing techniques
resulted in development and publication of an improved Commerce Operating
Budget in Brief for information and reference by Department officials.
This publication provides a concise description of the services and activities
conducted through the 11 major bureaus and several staff offices within
the Department, together with personnel and funds programed therefor.
Previously, this information was developed only for services and activities
financed from funds appropriated directly to the Department and its
primary organization units. The Office now, however, has refined the
technique to cover all services and activities without regard to the source
of funds or methods of financing.
In accordance with the President’s program to stimulate business activity
and employment, the Office took coordinating action to accelerate within
all component units of the Department the procurement of equipment,
supplies, and materials required for fiscal 1958 operations as well as those

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

17

planned for fiscal 1959. As part of this endeavor, all programs were ex­
amined for opportunity to accelerate procurements; reserved funds were
released; financial programs were adjusted; and emphasis was placed on
expeditious payment of supply fund bills after deliveries were completed.
The Office developed a monthly reporting system to apprise the Secre­
tary, other secretarial officers, and other Commerce officials briefly but
comprehensively of the condition of public business in each primary or­
ganization unit of the Department. The report, consisting of two parts,
covers (1) availability and source of funds, rate of obligating, and current
employment as compared with budgeted employment, and (2) rate of
progress of program accomplishments. The latter part is designed to
indicate not only the general rate of progress on basic programs but also on
any part of a program that may be in arrears and steps being taken to
bring it up to date.
Under the Department’s long-range user-charge program, the Office
established the general policy, standards, and criteria for the recovery of
cost to the Department of rendering a special service that provides a special
benefit to recipients. User charges established in two areas in the Depart­
ment where special services are being furnished will result in a net increase
in Treasury receipts of $300,000 or more annually.
The Office undertook many studies concerning situations and problems
coming to the attention of the Department. These included:
An inventory of the time required by various bureaus of the Department for payment
of contractor accounts, looking to simplification of billing requirements, improvement of
billing and payment procedures, and speeding up payments of contractors’ invoices.
A review of Department and bureau regulations, instructions, and orders to check
on their necessity and conformity.
An analysis of observations of appropriations and other congressional committees
concerning departmental and bureau operations and planned programs, with review
and appropriate coordinating action taken thereon.
A survey of telephone costs in the Department to determine where economies could be
effected.
Development of tabulations and analytical materials concerning personnel engaged
in financial management functions. The data included organization charts, general
description of the financial management system, functions included therein, and a
comparative report on personnel engaged in these functions. A significant disclosure
of this review was that from fiscal 1950 to 1957, the number of employees engaged in
financial management decreased from 1,863 to 1,358, or 27 percent.
Development of comprehensive information on major research, scientific, technical,
and developmental programs conducted within Commerce bureaus, including descrip­
tions of organizations, their relationship to programs in other agencies, the methods
through which their activities were carried on, the funds and staff applied to these
programs, and description of projects undertaken. The information thus developed
was used in appraising Commerce programs as well as in meeting requests by other
agencies for similar and related information.

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ANNUAL REPORT OF THE SECRETARY OF COMMERCE

The Office also:

Participated in a study of the condition of the fleet operated by the Coast and Geo­
detic Survey, resulting in development of a long-range program for modernization and
improvement of the fleet.
Participated in a survey of electronic data-processing equipment installed in the
several bureaus of the Department, including detail analysis of several electronic proc­
essing programs.
Participated in an interdepartmental study to determine the feasibility and desira­
bility of establishing a central traffic and transportation agency to handle that portion
of the International Cooperation Administration-financed transportation now handled
by three Government agencies. Final recommendations have been made and a deter­
mination was to be made in the second quarter of fiscal 1959.

The Office continued to assume the liaison and leadership functions in
developing the Department’s financial management improvement program.
One more primary organization unit—bringing the total to four—
installed an accrual accounting system approved by the Comptroller
General, and three others developed and tested similar systems that will
be presented for Comptroller General approval shortly. The remaining
primary units have been studying all phases of their accounting functions
preparatory to revising the systems now in use.
Efforts were continued toward achieving the Department’s target date
of fiscal 1961 (1962 for the Bureau of Public Roads) for implementing costbased budgeting.
As a consequence of emphasis given by the Office to the advantages of
synchronized classifications, both budget activities and organizational
components now have accounting support in all but one of the primary
organization units.

EMERGENCY PLANNING COORDINATOR
The Emergency Planning Coordinator is responsible for development of
the Department’s plans for continuity of its essential functions in the
event of a national emergency, coordination of the development and exe­
cution of the Department’s plans for civil defense activities, and assistance
in natural disasters.
During fiscal 1958 the Emergency Planning Coordinator:
Coordinated the activities of all participating departmental organizations
in Operation Alert 1957, established an organization for the receipt and
dissemination of damage intelligence, and prepared a report for and
participated in the critique of Operation Alert 1957.
Continued the development and training of the Department’s Communi­
cations Corps and arranged for its participation in training exercises and
tests.
Expanded radiological defense training throughout the Department
and made available the Department’s instructors and course of instruction
to other Federal agencies.

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

19

Participated in the national phase of Operation Sentinel II, held at
FGDA headquarters.
Participated in the revision of national planning for assistance by Fed­
eral departments and agencies in natural disasters.
Arranged for a series of briefings for Secretarial Officers and key per­
sonnel of all primary organizations of the Department on the “threat” to
our Nation and the capabilities of our Government to meet that threat.
Developed plans for the administrative support of the emergency trans­
port and production organizations.
Planned for and coordinated the Department’s participation in the first
phase of OPAL 1958 and continued the coordination of planning for the
second and third phases.
Continued the development of relocation sites and emergency warehouse
stockpiling by utilization of surplus property and materials.

OFFICE OF PERSONNEL MANAGEMENT
The Office of Personnel Management is responsible for coordinating
personnel management throughout the Department of Commerce. This
includes management direction and control of the personnel program,
formulating and issuing policy, compensation, staffing, employee per­
formance evaluation, employee development, employee relations and
services, employee recognition and incentives, personnel records and
reporting, and evaluation of the personnel program.
Employment in the Department increased from 52,250 to 56,556 during
the 1958 fiscal year. This increase was due primarily to expansion of the
programs authorized by Congress for improved aviation service and facili­
ties and for the public highway system.
The Office furnished guidance on personnel policy and procedure to
bureau personnel through the issuance of 12 administrative orders and 68
information bulletins. In addition, it prepared analyses and recommenda­
tions on 41 items of proposed legislation involving personnel management.
In the area of compensation, the Office assisted in the development of
job evaluation standards for 14 different occupational fields of special
importance to the Department and reviewed and evaluated job standards
prepared outside the Department for 27 additional occupational fields.
The staff participated in an interagency study which led to issuance by
the Civil Service Commission of procedures to streamline operations under
the Classification Act of 1949 and reduce paperwork.
A survey was conducted of the need for top-level positions (above GS-15)
throughout the Department, and statements were prepared for the Civil
Service Commission and for the House Subcommittee on Manpower
Utilization, Committee on Post Office and Civil Service.
Virtually all regular positions in the Department were reviewed during
the year in order to insure correctness of classification and compensation.
487307— 59 ------------ 4

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ANNUAL REPORT OF THE SECRETARY OF COMMERCE

In the area of local prevailing rate compensation four major projects
are noteworthy. A new pay plan was developed for vessel employees of
the Coast and Geodetic Survey, in line with the rates paid in the maritime
industry. A revised supervisory pay plan for wage-schedule employees
was adopted for Departmentwide application. A salary standardization
survey conducted at several installations in Alaska resulted in the establish­
ment of three separate pay areas with separate schedules for each. The
Department’s representative served as chairman of the Interdepartmental
Lithographic Wage Board, an organization to achieve uniformity in job
standards and pay rates for printing and reproduction employees in the
Washington, D. C., metropolitan area.
In the area of staffing, the Office developed guidelines and schedules for
the establishment and operation of individual merit promotion plans for
the several bureaus and offices of the Department and set forth the stand­
ards and procedures to be followed in establishing areas of consideration,
qualification standards, evaluation methods, and selection methods. In
addition, it developed guidelines and procedures for the use of paid adver­
tising in the recruitment of scientists and engineers in critical shortage
occupations.
The Department continued active support of the National Defense
Executive Reserve Program. Reserve units have now been established in
the Office of the Secretary, Business and Defense Services Administration,
Bureau of Foreign Commerce, Maritime Administration, Defense Air Trans­
portation Administration, Bureau of the Census, and Weather Bureau, and
plans have been worked out for a unit in the Bureau of Public Roads. The
number of Reservists designated increased from 403 to 825 during the year.
Throughout the Department employee development was generally lim­
ited because of the lack of legislative authority for training and for payment
of the expenses of attendance at meetings and conferences. (This lack was
remedied by the Congress on July 7, 1958, just after the close of the fiscal
year.) Reading improvement, writing improvement, and report writingtraining courses were offered, however, in addition to the regular orienta­
tion and supervisory training courses in most of the bureaus.
Under the President’s Fund-Raising Program for charitable purposes, a
successful campaign was carried on. Contributions from Commerce em­
ployees for the National Health Agencies and for CARE and the Crusade
for Freedom in the Washington metropolitan area aggregated more than
$40,000, the largest amount contributed by any of the civilian agencies in
the area.
Cash awards aggregating $256,915 were granted to employees for their
contributions to efficiency, economy, and effectiveness in the public service.
The estimated value of contributions under the incentive awards program
was $853,176.
Eleven gold medals were awarded for Exceptional Service and 105 silver
medals for Meritorious Service. Ninety-five awards were made for special

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

21

acts or services, 1,468 for superior performance, and 1,096 for meritorious
suggestions.
The largest suggestion award of $1,000 was given to two Maritime Ad­
ministration employees who developed a device to remove dry scale from
the tanks of laid-up ships. First year savings were $75,000, and during the
next 3 years savings are estimated at $600,000. In addition, the device has
eliminated previously existing safety hazards, will permit conditioning of
the fleets in much shorter time, and will reduce repair costs in the future.
The Civil Service Commission completed an inspection of personnel
management activities in all bureau headquarters. The Office reviewed
the reports of the Commission and took appropriate follow-up action on all
recommendations and suggestions. Bureau self-evaluation reports, pre­
pared in accordance with Administrative Order 202-42, proved to be help­
ful both to the bureaus and to the Commission in identifying areas of per­
sonnel management where further attention is needed.

OFFICE OF PUBLICATIONS
The Office of Publications provides central review and control of publi­
cations, formulating editorial and distribution policy and promoting the
sale of the Department’s publications. It also supervises the printing done
in and procured for the Department and operates an offset plant and re­
lated facilities with volume of $962,000 in fiscal 1958.
Sales of Commerce publications through the Superintendent of Docu­
ments system rose by $121,000 to $1,700,000 in fiscal 1958, a new record and
again the greatest of any department, accounting for 26 percent of his sales.
Including maps and charts, patents and trademarks, and technical reports
sold by the Department itself, sales of Commerce printed materials rose by
$224,000 to $4,099,000, also a record.
The Publications Division handled 228 publications-project proposals
with estimated printing costs of $507,000. Of the project total, 195 were
approved, 29 approved with conditions, and 4 withdrawn.
Continued modernization of equipment and streamlining of operations in
the Printing Division helped make it possible for the Division to absorb a
$50,000 increase in wage payments and contributions to the Civil Service
retirement fund without increasing prices. The number of employees
was unchanged.
The Forms Design and Standardization Staff started work on forms for
the Censuses of Manufactures, Business, and Mineral Industries. It also
did advance work on developing forms for use with the Bureau of the Census
FOSDIC machines.
The Office completed issuance of its Handbook of Publications and Printing
with three issuances directed to management—on the Department’s
publications policy, economies, and legal considerations. All 17 separate
sections were reissued in a single volume for those concerned with all
phases of publishing and printing procurement.

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ANNUAL REPORT OF THE SECRETARY OF COMMERCE

Office of the Under Secretary
The Under Secretary of Commerce serves as the principal deputy of the
Secretary in all matters affecting the Department of Commerce and exercises
general policy direction over its bureaus and offices. In addition, he gives
particular attention and policy guidance to the Coast and Geodetic Survey,
the Patent Office, and the National Bureau of Standards, which are directly
responsible to him.

COAST AND GEODETIC SURVEY
The Coast and Geodetic Survey is responsible for surveying and charting
the coastal regions of the United States, its Territories, and possessions.
It provides a framework of geodetic control in the interior of the country
and in Alaska to be used as starting points for mapping and for engineering
construction; compiles and publishes observational data on tides and
currents; makes observations of the earth’s magnetism; investigates earth­
quakes and their destructive effects; and compiles and publishes aero­
nautical charts for civil and military aviation.
The basic program of the Bureau was carried forward during the year in
every department of its normal activities. In addition, it participated in
the International Geophysical Year program in several areas of its assigned
responsibilities.

Hydrography, Topography, and Tides

Surveys of coastal waters were continued by 15 vessels and 2 field parties
in widely scattered areas along the Atlantic, Gulf, Pacific, and Alaska
coasts, and in the Hawaiian Islands. More than 100,000 square miles of
hydrography were completed.
Major accomplishments of the year include detailed surveys of Georges
Shoal, Cultivator Shoal, and the eastern half of Georges Bank off the coast
of Massachusetts; and completion of the survey in Narragansett Bay, R. I.,
the offshore surveys around the Plawaiian Islands, and the first basic survey
of Port Heiden on the north coast of the Alaska Peninsula.
Special surveys were accomplished in the St. Johns River, Fla., for the
Department of the Navy; in Ashley River, S. C., for shipping interests;
and in Guemes Channel, Wash., for an oil company in advance of passage
by tankers of 46-foot draft. A survey of the approaches and the lower
reaches of the Columbia River is in progress for the Department of the
Army.
Other hydrographic surveys were in progress along the coast of Maine;
in the vicinity of Nantucket Island, Mass.; in Chesapeake Bay, in Tampa
Bay, Fla.; in Tillamook Bay, Oreg.; and around the San Juan Islands,
Wash. In Alaska, surveys were made in Clarence Strait, Sumner Strait,

ANNUAL REPORT OP THE SECRETARY OF COMMERCE

23

and Soda Bay, Southeast Alaska; Prince William Sound; along the north
coast of the Alaska Peninsula; and among the Aleutian Islands.
In support of the Bureau’s nautical and aeronautical charting programs,
topographic mapping by photogrammetric methods was conducted in the
United States and Alaska. The aerial photographs and map manuscripts
provide a permanent large-scale survey record of coastline changes which
find application in various engineering studies and in the settlement of
waterfront boundary problems.
Under the airport mapping program, field surveys and compilation were
completed for 50 airports. Eleven new obstruction plans were published
and 39 existing plans revised. A total of 421 modern airport obstruction
plans are now on issue.
A special project, which comprised mapping an approximate low-water
line and adjacent land areas of most of the Gulf coast of Louisiana, was
completed for the State of Louisiana and the Department of the Interior for
use in the administration of offshore oil leases.
Of special interest is the large-scale mapping of the Chantilly Airport
site for the Civil Aeronautics Administration. The maps constitute a base
for the location of runways and other construction. Twenty-three square
miles were photographed and 21 maps, at a scale of 1:2,400 and showing
2-foot contours, were surveyed, compiled, printed, and delivered in 5%
months.
The Bureau’s system of control tide stations at selected locations provides
basic observational data for tide predictions, surveying and engineering
activities associated with mapping and coastal industry, and for scientific
investigations. New stations were established at San Clemente Island,
Calif.; and at Padre Island (south end), Aransas Pass, Galveston (outer
coast), and Sabine Pass along the Texas coast. Five stations were also
established in Long Island Sound for hurricane protection studies. Tidal
records for 36 places in Latin America were received through cooperative
arrangements with the Army Map Service.
Tidal current observations were obtained at 51 locations distributed in
the waters of Georges Bank, New York Harbor, Chesapeake Bay, South
Carolina, Florida, Washington, and Alaska, and at two Atlantic coast
lightships. An intensive survey of currents, water temperatures, and
salinities in New York Harbor was begun in conjunction with the Maritime
Administration and the Atomic Energy Commission.
Four volumes of Tide Tables and two volumes of Tidal Current Tables
were published to provide advance information on the tidal movement
along the waterways of the world. Special tide tables for the Arctic were
prepared at the request of the Navy.

Geodesy, Magnetism, and Seismology

Geodetic surveys were extended in unsurveyed areas of the United States
where primary control for topographic mapping was urgently needed.

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ANNUAL REPORT OF THE SECRETARY OF COMMERCE

Additionally, several special-purpose projects were accomplished. Among
these were highly concentrated triangulation, leveling, and astronomic
surveys in support of the Air Force missile program; geodetic monuments
along interstate highway routes in cooperation with several States; and the
locations of Nike installations for the Army in three metropolitan areas.
In all, approximately 3,000 new geographic positions were determined and
elevations were established for 12,800 benchmarks, bringing the totals up
to about 153,000 and 358,800, respectively, for the United States and
Alaska.
The tellurometer—a precise, electronic, distance-measuring device—
was employed for the first time by the Bureau for geodetic surveys in
Alaska and in the United States. In the Aleutian Islands, on the south
side of Atka Island, horizontal control was successfully established. A
similar traverse is nearly completed around the perimeter of neighboring
Amlia Island. The instrument was also used for measuring traverse lengths
in Virginia and Maryland. There is every indication that the use of the
tellurometer will result in substantial savings in time and money when
compared with the conventional methods of making such surveys.
A trilateration proving ground, to provide highly accurate distances for
testing electronic surveying equipment, was established in northern
Virginia for the Fort Belvoir Engineer Research and Development Labora­
tory. It consists of a super-first-order triangulation in which the lengths
and orientation were strengthened by precise geodimeter measurements
and Laplace azimuths.
Astronomic operations were continued along the 35th parallel geoid
profile as far west as the Texas Panhandle. Gravity surveys were extended
over about 18,000 square miles in northern Minnesota and gravity base
measurements were made between Ottawa, Canada, and Miami, Fla.
The Bureau’s geomagnetic program furnishes information on the deflec­
tion of the compass needle and on other magnetic elements for use in navi­
gation, for surveyors and engineers using compasses, and for other scientific
purposes. Seven permanent magnetic observatories were in operation.
Field parties obtained new magnetic observations at 79 “repeat stations,”
made intensive magnetic surveys of 54 compass-rose stands at air bases, and
measured the magnetic declination at 22 other stations. Preliminary work
was done on compiling the 1960 series of United States and world mag­
netic charts. A declination chart of South America was completed for
the Army Map Service.
As part of its earthquake investigation work, the Bureau operated 8
seismographs for the detection of distant earthquakes, and collaborated in
the operation of 12 stations in private institutions. By using instrumental
reports from cooperating stations in this country and abroad, the Bureau
determined and announced approximately 1,330 earthquake locations
throughout the world. For engineering purposes, 65 strong-motion sta­
tions were operated in the western earthquake regions and 7 in Latin

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

25

America. The distant seismic effects of numerous atomic tests in the
United States and Pacific islands, and several believed to be of Russian
origin, were observed.
The seismic sea wave warning system for the Pacific area was continued
in cooperation with civil and military agencies. Arrangements were made
for incorporating the Chilean tide stations at Valparaiso and Easter Island
into the system.

Nautical and Aeronautical Charts

The program of charting the sealanes and the airlanes was carried for­
ward during the year with increased emphasis on present-day navigational
needs. Although military requirements were less than last year, civilian
requirements totaled 4 percent more for aeronautical charts and 12 percent
more for nautical charts. At the end of the year there were 812 nautical
and 1,492 aeronautical charts on issue, at various scales, to meet the differ­
ent needs of the navigator.
Under the program of reconstructing and modernizing the Bureau’s
charts, 13 new nautical charts were issued. The reconstruction of the
radio facility chart series, begun the previous year, was completed. There
are now 19 charts in this series covering the United States instead of the
former 10. This change was made necessary in order to show adequately
the greatly increased number of radio facilities in use on the Nation’s
airways. The 3 page-size sheets of radio facility charts for the Hawaiian
Islands were replaced with 1 standard-size folded chart. In the sectional
chart series, 11 were reconstructed during the year.
Sixty-one million press impressions of multicolored, close-register printing
were produced.

International Technical Cooperation

The Bureau continued its participation in the technical training programs
for foreign nationals. Under international cooperation acts and other
arrangements, 17 trainees from 8 countries were accepted; 12 trainees
authorized under previous grants completed their training; 7 participants
from other training agencies received instruction for periods of 1 to 4
months; and 98 visitors from 36 countries consulted with Bureau personnel
and observed operations for 1 to 60 days.
The technical mission to Ethiopia was maintained to establish geodetic
control in the Blue Nile River Basin. A Bureau seismologist carried out
an advisory mission for the Government of Australia on seismic problems
related to power and water supply works.

International Geophysical Year

The Bureau cooperated in the InternationarGeophysical Year, prepara­
tory work for which was done in fiscal 1957, through observational work in

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ANNUAL REPORT OF THE SECRETARY OF COMMERCE

geomagnetism, seismology, gravity, latitude and longitude, and oceanog­
raphy. It is believed that important new scientific information has been
collected.
The first 12 months of the national program included the operation of 7
temporary magnetic observatories, 14 semiautomatic magnetic recording
stations, and 6 seismological stations. The installations are in complex
arrays in the United States, Alaska, several islands of the western Pacific
Ocean, and in Antarctica.
At a temporary astonomic observatory near Honolulu, T . H., under the
latitude and longitude program, nightly measurements with a dual-rate
moon camera and a high-precision astrolabe were made. These observa­
tions are coordinated in a worldwide program involving about 20 similar
stations.
Arrangements were made to reactivate the tide station on Texas Tower
No. 2 on Georges Shoal and to establish a new station on Texas Tower No.
4 off New York Harbor. Because of their offshore locations these stations
will provide valuable data for the island observatory programs.
The Western Hemisphere World Data Archive Center for geomagnetism,
seismology, and gravity was established, and worldwide exchanges of IGY
data made.

Research and Development

The Bureau conducts research and development in the various fields of
its activities in order to improve its instrumentation, equipment, and
techniques, and to add to its general fund of knowledge. Wherever
possible it makes use of new developments in private industry and adapts
them to its specialized needs. Among the more significant studies and
improvements were the following:

Modifying the radio current meter to record a velocity as low as 0.1 knot; heretofore,
0.3 knot was the lowest limit. This is particularly useful in harbor circulation studies.
Installing a device on the Bureau’s tide predicting machine to semiautomatically type
the predictions in a form suitable for offset printing, thus eliminating considerable work
in preparing manuscripts.
Development of a semiautomatic tide curve scanner to speed up the processing of tide
records.
Research into the cause of the unusual warming of the water along the West Coast and
Alaska during 1957 and 1958.
Designing a telemetering apparatus for the remote recording of seismic disturbances.
Development and successful operation of a proton precession magnetometer and a
rubidium vapor magnetometer employing a novel principle of atomic physics.
Installing high and low temperature facilities for testing instruments between —16° F.
and +572° F.
Purchase of a new electronic position-fixing equipment for controlling large-scale off­
shore surveys.
Research is in progress on the development of sonic-sounding equipment to provide
better definition of the sea bottom, and of a superior method for measuring velocity of
sound through sea water in connection with echo sounding.

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

27

Development of an electronic computer technique for adjusting photogrammetric
instrument data to conform to ground control points, resulting in a 40 percent increase
in output and the use of a minimum of field control surveys.
Oceanographic research on submarine formations and processes along the continental
margins.
Installing a new 23-inch by 36-inch two-color press for the more efficient printing of
some of the smaller size charts and maps.
Improving engraving coatings on plastic sheets, halftone screens, and gradient tint
negatives.

Plans and Recommendations

The Bureau’s future plans include a continuation of the surveys of Georges
Bank, Tampa Bay, and the lower Columbia River; a hydrographic, tide,
and current survey of the Potomac River for pollution and water-quality
studies; establishment of geodetic positions under the Interstate Highway
program, special geodetic surveys in the Hawaiian Islands and Alaska,
and studies for the establishment of horizontal and vertical control in the
Glen Canyon area of the Colorado River in connection with large-scale
mapping by the Bureau of Reclamation; operation of all phases of the IGY
program for the remaining 6-month period, and a post-IGY Antarctic
program in geomagnetism and seismology; operation of the World Data
Archive Center; a program of monitoring atomic tests; measurements of
the bottom currents at the edge of the continental shelf; and a study to
increase the accuracy and economy of instrumental aerial triangulation
from aerial photographs.
Plans for the next 10 years of hydrographic survey operations have been
made. They are of sufficient flexibility to permit minor deviations such as
local surveys of an urgent nature. Naval architects are making a compre­
hensive study to determine the most efficient type or types of vessels for
the Bureau’s survey missions.
The rapid development of civil aviation and modernization of the Federal
airways system have shown a great need for expansion in the aeronautical
chart field. In addition, a special study to determine the nautical chart
requirements of the 7 million small-boat operators will be undertaken with
a view to promoting greater safety.
The increasing value of coastal property gives added emphasis to the
need for expanded tidal investigations to meet associated engineering and
scientific problems. Due to the indications that the land in southeast
Alaska is rising, plans for a tidal survey of the area to determine any changes
in sea level are under study.

PATENT OFFICE
The Patent Office was established to administer the patent laws enacted
by Congress in accordance with Article 1, Section 8, of the Constitution.
The first of these laws was enacted in 1790, but the Patent Office as a dis487307— 59 ------------ 5

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ANNUAL REPORT OF THE SECRETARY OF COMMERCE

tinct bureau in the Department of State dates from the year 1802. In i 849,
the Office was transferred from the Department of State to the Department
of the Interior.
General revisions of the patent laws were made in 1836 and 1870, and
since that date numerous acts of Congress relating to patents have been
passed. These were revised and codified in 1952. The Office was trans­
ferred to the Department of Commerce in 1925. In addition to the patent
laws, the Office administers the Federal trademark laws.

Patent Examining Operation

The Patent Office received 76,956 applications for patent and disposed of
85,457 during fiscal 1958. The disposals consisted of 52,868 applications
allowed for the issuance of patent, contingent upon payment of the final fee,
and 32,589 abandoned applications. There were 43,620 patents granted
during the year and 1,711 allowed applications forfeited due to nonpayment
of the required final fee. Allowed applications on hand June 30, 1958,
awaiting payment of final fees numbered 20,128, and an additional 6,636
applications were in the process of issuance as patents subsequent to such
payment.
There were 207,166 patent applications pending on June 30, 1958. This
was 8,369 fewer applications than were on hand a year ago. While this re­
duction in backlog was not as great as originally contemplated in the 8-year
improvement program of the Patent Office, it represents a significant degree
of accomplishment in view of the staff situation which faced the Office dur­
ing the year. As the result of turnover due to heavy losses of experienced
examiners and the complete success in recruiting additional examiners to
enlarge the examining corps to the full strength called for by the 8-year pro­
gram, more than half of the examiner assistants had less than 2 years of
experience in the Office. Between May 1, 1957, and November 1, 1957,
alone, 345 graduates of technical courses in colleges and universities were
employed as new examiners.
The consequence of rapid staff buildup was a drastic decrease in average
productivity of examiners. This was due not only to the low contribution
of new and inexperienced examiners, but also to the time spent by senior
examiners in training, supervising, and instructing new men.
The heavy dilution of experience resulting from unprecedented enlarge­
ment of the examining corps in itself presented the Patent Office with the
sizable problem of integrating and utilizing so many new examiners
within the examining operation. This problem became a major challenge
in the face of the commitments of the 8-year program which called for
disposing of 100,000 applications a year, an average of 95 per examiner
assistant. Although it was early recognized that this objective which had
originally been established in 1955 could not be attained under the prevail­
ing conditions of fiscal 1958, the Office aimed at making the best disposal

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

29

achievement possible while maintaining a high standard of excellence in
examining work. Every reasonable technique was applied to accomplish
this objective. An intensified training program was one of the major
reasons for success in absorbing a large number of new men with relatively
good results.
With an average disposal rate of 80 applications per examiner assistant
over 85 percent of the total application disposal objective was attained.
The 85,457 disposals during fiscal 1958 represent the greatest number for
any year since 1933.
Other noteworthy gains made in the conduct of the patent examining
operation during fiscal 1958 included not only substantial reduction in the
number of applications awaiting action by the examiners but also in the
average length of time they await action. On June 30, 1958, there were
88,714 applications awaiting action by the examiners. Representing a
decrease of 17,676 during the year, this was the lowest number of applica­
tions awaiting action since 1945. In addition to these applications, the
Office backlog includes applications in which the next action due must be
taken by the applicant. These increased during the year from 46 percent
to 52 percent of the total applications pending. The volume of applica­
tions in this condition is significant because it indicates that future disposals
will be at levels higher than those which obtained in recent years. The
proportion of pending applications in this condition at the end of the year
was greater than at any similar time in the last 15 years.
The condition of work was greatly improved in regard to the length of
time an applicant awaits action by an examiner upon his application.
The maximum waiting time for action on amended applications was
reduced during the year from 18 months to 12 months and, for new
applications, from 14 to 11% months. The average waiting time for the
first action on applications was about 5 months, the same as a year ago,
whereas for amended applications this time was reduced to less than 4
months.
The design division received 4,838 applications and disposed of 4,767.
Both receipts and diposals were slightly larger than last year, but as dis­
posals lagged behind receipts there was a small increase in backlog. There
were 6,918 design patent applications pending on June 30, 1958. Grants
of design patents for the year numbered 2,571.
Modernization of the patent classification system, which is also scheduled
over an 8-year period, was conducted at about 50 percent of the level of
operation contemplated in this plan for fiscal 1958. Experienced patent
examiners who would normally be reassigned to perform these duties were
not available in sufficient numbers to provide both for this need and the
patent examining program. Their use in the latter was considered more
urgent for reasons already considered. During fiscal 1958, an average of
69.5 examiner assistants were employed in the Classification Group. Of

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ANNUAL REPORT OP THE SECRETARY OP COMMERCE

this number, 24.1 were engaged in examining pending applications, 3.1
were assigned to current classification work, and 42.3 were assigned to
reclassification work. Although there was an increase in manpower of
6.1 examiner assistants over 1957, the distribution of effort between the
tasks was about the same as last year. Work was completed by classification
examiners during the year in reclassification projects which involved the
primary (original) classification of 79,904 United States patents and
10,999 foreign patents and the cross-reference classification of an estimated
178,715 patents. A number of these projects were commenced in earlier
years and represent cumulative effort which was finished during 1958.
As a result of this work, one new class comprising 531 subclasses, namely
Class 62, Refrigeration, was promulgated and three new classes, Class
172, Earth Working, Class 196, Mineral Oils: Processes and Products,
and Class 239, Fluid Sprinkling, Spraying, and Diffusing, will become
effective early in fiscal 1959.

Trademark Examining Operation

The Office received 21,770 applications for the registration of trade­
marks. As an indication of the new goods and services entering commerce,
it is noteworthy that this was a greater number of applications than was
received last year and constitutes the largest volume of applications in
any one year except fiscal 1948, the first year of operation under the
present trademark law. There were 3,237 applications received for the
renewal of registrations of trademarks and 556 applications for publication
under the provisions of section 12 (c) of the Trademark Act of 1946 to
obtain the benefits of that act for existing trademarks originally registered
under prior acts.
The marks of 15,142 applications were published for opposition and
869 oppositions were received. Oppositions were fewer both in number
and in proportion to published marks than last year. Thus, 5.2 percent of
the published marks were opposed, compared with 5.9 percent opposed
during 1957. The past 4 years have witnessed a continual decline in the
proportion of marks opposed, reflecting both the more thorough examina­
tion of applications in the Patent Office and stronger policy on its part
relative to the requirement for a showing of interest by potential opposers.
The Trademark Examining Operation disposed of 15,999 applications
by registration for which were issued 15,969 Certificates of Registration,
15 of them being consolidated certificates which included 45 applications.
Other disposals included 3,895 abandoned applications for registration,
3,122 renewals, 555 publications, and 499 miscellaneous applications.
On June 30, 1958, there were 12,678 applications awaiting action by the
examiners, 7,006 applications awaiting response by the applicant, and
1,408 applications involved in inter partes proceedings or on appeal.
Continued improvements in the conduct of this operation included a
thorough overhauling of forms, correspondence, and related paperwork

annual report of t h e

SECRETARY OF COMMERCE

31

tasks, adoption of a new system for recording and controlling the inventory
of pending applications, a more useful and meaningful reporting system,
and the release for disposal of a substantial volume of expired registration
files heretofore considered essential to retain. The format of the Official
Gazette was modified to make a clearer distinction between the classes of
marks published for opposition.
Public Law 85-609, approved August 8, 1958, created a new Trademark
Trial and Appeal Board in the Office to conduct all adversary proceedings
in trademark matters and to hear and decide appeals from the refusal of
the trademark examiners to register marks. Appeals to the Commissioner
are eliminated by this act, which provides for a single proceeding in the
Office and appeal therefrom to the courts.

Research and Development

The Office of Research and Development gave particular attention to
the practical and pressing problem of immediately developing usable
search files in selected areas of technology. One such file covering steroid
compounds was used through the year in a mechanized examining division
which was established to conduct full-scale operational searches employing
the experimental interrelated logic accumulating scanner (ILAS) designed
by the research and development staff.
Mechanization of the resin art, another segment of the organic chemical
field, was commenced and work had progressed to the stage of making
pilot searches for compounds, minerals, and processes in extending mecha­
nized systems to include polyethylenes. A dissimilar but compatible system
was developed and tested for thiazines, but productive searching is not yet
in operation because of the limited availability of machine time on equip­
ment capable of handling its highly complicated logic. Preparations are
being made for using the National Bureau of Standards SEAG computer
in this program.
The search projects in operation are helpful not only in speeding the search
of patent applications but also in developing information that is valuable
both in modifying and perfecting the machines systems in use and in con­
ceiving and developing more sophisticated systems.
Some of the other developments to which attention was given included
the formulation of a system for search file access which is faster and affords
other advantages over systems requiring a serial order search of an entire
file; the creation of a syntactic logic compatible with the interrelated logic
of the system employed in the ILAS; and the development of an unambigu­
ous metalanguage which is believed to be fundamental to the extension of
mechanized search systems to several broad fields of technology. A con­
tract was let to a consulting firm for research on interim search systems and
an evaluation of available commercial equipment usable with such systems.
Close cooperative effort was continued in furthering those projects in
which the Patent Office and the National Bureau of Standards are jointly

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ANNUAL REPORT OF THE SECRETARY OF COMMERCE

engaged, and consultative assistance was given NBS as needed in con­
ducting the related studies that bureau is independently pursuing.

Board of Appeals

The Board of Appeals received 8,139 appeals from the final decisions of
patent examiners adverse to the granting of patents. This was 2,225 more
appeals than was received last year. The increase approximately parallels
the greater number of actions taken by the examining corps during 1958
compared with the previous year.
There were 6,124 appeals terminated, and on June 30, 1958, 8,028 appeals
were pending. This number represents an increase of 2,015 appeals in
the backlog of the Board, making this recognized problem a matter of
even greater concern to the Patent Office. Various measures have been
tried in efforts to cope with the rising backlog but none has been sufficiently
satisfactory to warrant continuance. The ultimate limitation has been
that the regular members of the Board must participate in deciding each
appeal and this responsibility cannot be discharged with the competence
required when such officers must spend much of their time training, con­
ferring with, and reviewing the work of an unduly large number of tempo­
rary associates who are not fully conversant with these duties.
Legislation containing the needed remedial provisions was enacted after
the close of the fiscal year. Public Law 85-933, approved September 6,
1958, permits an increase in the maximum number of Board members
from 9 to 15 and authorizes temporarily designated Board members to be
paid the salary of a regular Board member while so serving. With en­
largement in the permanent membership of the Board of Appeals, it will
be possible also to increase the number of designated members.

Operating Cost and Income

The operating cost of the Office for fiscal 1958 was $19,525,854, approxi­
mately $3 million more than for the preceding year. About half of this
additional cost was due to new legislation of a general nature which affected
the Office operating cost for the first time in 1958. This included the re­
quirement for making contributions to the employee retirement fund and
the increased salary rates of about 10 percent, effective January 1, 1958.
During the year the Office received $6,973,885 in fees and deposits from all
sources. Net income was about IK percent higher than last year and was
equivalent to about 36 percent of total operating costs.

A Summary of Services

In the course of serving the public and agencies of government during
fiscal 1958, the Patent Office:

Produced and supplied 2,121,303 photographic copies of records, patents, drawings,
and other documents concerning patent matters, a substantial part of which was furnished
for fees which totaled $487,770.

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

33

Prepared 29,079 reports and abstracts based on searches of assignment records and
recorded 58,389 instruments conveying ownership of patents and trademarks or applica­
tions therefor.
Supplied 9,404,142 printed copies of patents and trademarks of which over 73 percent
were sold, producing revenue totaling $1,354,687.
Provided 48,646 certificates attesting the authenticity of records furnished on order.
Rendered drafting services required in preparing or correcting a total of 12,376 sheets
of patent drawings.

Plans for 1959

Future plans of the Office contemplate further substantial reduction in
the backlog of pending applications for patent. The 8-year program which
embodies these plans aims at reducing the number of applications on hand
to approximately 100,000 by June 30, 1964. It is estimated that by the
end of fiscal 1959 the backlog will be about 199,000 pending applications,
representing a reduction during the year of 8,000 as a result of disposing of
85,000 applications while receiving 77,000 new applications.
Continued effort will be devoted to modernization of the classification
system as an approach to increasing the effectiveness of the examining
operation. An increase of about 50 percent in technical manpower avail­
able for this program is planned for fiscal 1959. The research and develop­
ment staff will be about doubled in size over 1958. With the feasibility of
mechanized searching already established in the limited applications
previously described, this buildup is geared to the capability of this program
advantageously utilizing additional manpower resources to extend mechani­
zation and to intensify related studies.

NATIONAL BUREAU OF STANDARDS
The principal function of the National Bureau of Standards is the develop­
ment and improvement of standards and methods of physical measurement.
Other basic activities are the determination of physical constants and meas­
urement of the properties of materials. To strengthen Bureau work in
these primary areas, and to achieve a balanced research program, a con­
sistent effort is being made to increase the level of basic research and to
convert personnel from “other-agency” work to Bureau basic activities.
This policy was reflected during the year in increased activity in hightemperature measurements and radio-frequency standards.

Accomplishments

Accomplishments for fiscal 1958 may be summarized as follows:
S t a n d a r d s a n d M e a s u r e m e n t s . —Development of an absolute standard
of capacitance accurate to 3 parts per million; establishment of a new re­
sistance thermometry laboratory for calibrating temperature-measuring
instruments; development of techniques for evaluating telemetering trans­
ducers used in missile and aircraft testing; initiation of a procedure for de­

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ANNUAL REPORT OF THE SECRETARY OF COMMERCE

termining corrections to the Bureau’s standard frequency broadcasts in
terms of an atomic standard of frequency.
P r o p e r t i e s o f M a t t e r a n d M a t e r i a l s .—Development of a number of
techniques for preparing very high purity materials and for determining
very small amounts of impurities; completion of a long-range investigation
of the thermodynamic properties of rubber polymers; extension of “nuclear
parity” experiments into the problem of time reversal invariance in nuclear
physics; redetermination of the gyromagnetic ratio of the proton, which
should make possible more accurate knowledge of the fundamental con­
stants of physics.
D ata P r o c e s s i n g S y s t e m s — Completion of system design plans for the
new NBS Pilot Electronic Data Processor. This general-purpose machine
will process digital information at extremely high speed and will be used for
experimental investigations of a wide variety of large-scale problems for
the Government.
R adio P r o pa g a t io n .— Development of radio meteorology techniques
which provide data important to the application of radar, missile guidance
systems, and radio communication by “forward scatter.”
F a c i l i t i e s . —Completion of an Electronic Calibration Center to service
the master instruments and gages of the Department of Defense and other
organizations; initiation of studies toward obtaining a nuclear research
reactor.

The Future

Plans for the immediate future include: Completion of design and speci­
fications for laboratories to be erected at the new Bureau site near Gaithers­
burg, Md.; operation of a nuclear research reactor; construction of a highenergy nuclear accelerator; high-accuracy calibration of large force meas­
uring devices used in missile development; construction of the NBS Pilot
Electronic Data Processor; continued strengthening of programs related to
the Bureau’s primary basic mission; and continued conversion from “otheragency” work to basic Bureau programs. Increased emphasis will be
placed on high-pressure studies, high-temperature research, and the de­
termination of basic data in atomic and nuclear physics.

Office of the Under Secretary
Transportation
The Under Secretary of Commerce for Transportation serves as the
Secretary’s principal adviser on transportation matters and is responsible,
by delegation from the Secretary, for coordinating overall transportation
policy within the executive branch. In addition, he provides policy direc­

A N N U A L R E P O R T O F T H E SE C R ET A R Y O F CO M M ER C E

35

tion for the transportation agencies of the Department and coordinates
their programs and activities. These agencies are: Bureau of Public Roads,
Civil Aeronautics Administration, Defense Air Transportation Adminis­
tration, Maritime Administration, and Weather Bureau.

CIVIL AERONAUTICS ADMINISTRATION
Increased efficiency contributed to safe and fast handling of the everincreasing volume of air traffic by the Civil Aeronautics Administration
during fiscal 1958. The airways modernization and flight safety programs
meanwhile continued at an accelerated pace as CAA’s personnel increased
by 4,295 to 25,805.

Air Traffic Control

The demands on the air traffic control system again increased during
fiscal 1958. Aircraft operations reported by CAA traffic control towers
numbered 25,756,365, a gain of 8)( percent over fiscal 1957. The number
of fixed postings (aircraft position reports to CAA centers) increased 12
percent to 31,413,911.
To provide increased safety, certain existing transcontinental airways
between the altitudes of 17,000 and 22,000 feet were designated as positive
control airways. Within these positive control areas, all aircraft must
operate on an instrument flight rules (IFR) plan with appropriate air
traffic control clearance regardless of weather conditions.
Emphasis on training continued to provide for increased system capacity.
Regional office training staffs were expanded to supervise the training
programs more adequately. Facility training schools were established at
all centers and at many major towers. Approximately 59 air traffic control
instructor positions were authorized at these resident schools. More than
3,000 nonjourneymen airways operations specialists received facility area
ratings. Approximately 2,700 new AOS personnel, including 1,500 who
attended the Aeronautical Center, received training at field facilities.
Radar simulators were ordered in connection with the long-range radar
program at ARTC centers, and the radar training program was accelerated
throughout the system. Training activities in connection with the auto­
mation program and radiological program were established.
Radar en-route air traffic control was exercised at New York, Washing­
ton, and Chicago. A program for direct controller-to-pilot communica­
tions was implemented for all centers. There are approximately 546 direct
controller/pilot air route traffic control center communications channels
commissioned at 197 sites.
Radar arrival and departure services were expanded; 45 radar towers are
in operation. The use of approach control communications to furnish land­
ing information and traffic advisory service was expanded to include 37
locations.
487307— 59------------- 6

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A N N U A L R E P O R T O F T H E SE C R ET A R Y O F CO M M ERC E

Four “polar” routes were designated from Los Angeles and San Fran­
cisco to the Canadian border.
Plans were completed to install three electronic computers and associated
equipment to process flight data, calculate flight times, produce printed
flight progress strips for air traffic control displays, and automatically
exchange data between air route traffic control centers.
Action was initiated to procure bright radar displays to replace obso­
lescent World War II type indicators currently being used in radar traffic
control facilities.
A new contract with the Flight Safety Foundation was negotiated to
study human capacities in relation to performance on radar air traffic
control.

Air Navigation Facilities

The Federal Airway Plan to provide a modernized air traffic control
system was revised and extended through fiscal 1963. The revised plan
covers 5 years of work and with an estimated cost of more than $1 billion.
Empahsis is on improvements in radar for traffic control on communica­
tions, and on implementation of VORTAC (VOR combined with tactical
air navigation) as the common system azimuth/distance navigation system.
During fiscal 1958, the second year of the Federal Airway Plan, $162.9
million was available for the establishment of air navigation facilities,
about double the amount for fiscal 1957. New funds in the amount of
$175 million were made available for fiscal 1959. The 1959 program was
accelerated by advanced authorization of about $31.7 million which was
released to CAA procurement and regional offices during the last quarter
of fiscal 1958. The remainder of the fiscal 1959 program was assigned by
the end of fiscal 1958.
Major elements of the 1958 program included 10 long-range radars,
15 airport surveillance radars, 346 VORTAGS, 23 instrument landing
systems, 4 high power homers, 50 approach light systems, 12 air traffic
control towers, 54 VOR’s, 7 aircraft standardizations for use in flight
checking facilities at medium altitudes, and conversion of 3 teletypewriter
systems to 100 words per minute.
Engineering plans were developed in coordination with military repre­
sentatives for special circuitry and components to permit joint use of longrange radar facilities by CAA and the Air Defense Command at 20 locations.
The computer program, which will provide automation in air traffic
control, was well underway. One system was completing final program
and machine checkouts before being placed in operation in the Indianapolis
ARTC Center. File computers were being installed at the New York
and Washington ARTC Centers. Automatic strip printing machines were
installed at four ARTC centers and one has been used successfully at the
New York ARTC Center since the middle of fiscal 1958.

A N N U A L R E P O R T O F T H E SE C R ET A R Y O F CO M M ERC E

37

A contract for automatic flight inspection equipment utilizing computers
in aircraft was awarded for use in five Gonvair aircraft. This permits
flight evaluation of 1,200 ground navigational aids once every 30 days.
The flight inspection of air navigation and traffic control facilities is
being accomplished by a fleet of 79 specially equipped basic aircraft. Of
these, 5 Convair C-131E aircraft are used for flight checks at the inter­
mediate levels of 10,000 to 20,000 feet and 2 B-57 jet aircraft for the alti­
tudes above 20,000 feet.
Additionally, the flight inspection requirements of the Army and Navy
are now being accomplished by the CAA.
The United States Standard Flight Inspection Manual, which describes flight
checking procedures and outlines CAA navigation facility performance
tolerances, has become a worldwide standard.
A program was underway for providing larger Air Route Traffic Control
Centers for Cleveland, Atlanta, Jacksonville, Fort Worth, San Antonio,
Chicago, Indianapolis, Kansas City, Minneapolis, and Oakland. Except
at San Antonio where the existing building is being enlarged, the new
center buildings will cost approximately
million each, not including
equipment costs. July 1, 1959, has been set as the target date for occupancy
of the new buildings.
Successful maintenance of the existing Federal airways system of 4,585
facilities continued.

Flight Operations and Airworthiness

The first delivery of a United States-manufactured jet transport aircraft,
the F-27 Fairchild Friendship, was made to West Coast Airlines in June 1958,
and Pan American World Airways expects to receive their first Boeing 707
jet transport in August of 1958. Other manufacturers of jet transports,
such as Douglas (DC-8), Lockheed (Electra) and Convair (880) met or
exceeded production schedules. Two special boards and a turbine group
continued to pinpoint jet problem areas and to work with manufacturers
and air carriers on operating and maintenance problems for each specific
jet transport prior to its introduction into actual service. Programs of both
government and industry, representing in some cases 10 years of jet plan­
ning, were carried out on schedule or at an accelerated rate.
Type certificates were granted for 4 transports, 4 helicopters, including 1
transport type, and 16 small aircraft. In addition, 570 supplemental type
certificates covering major modifications or substantial changes to aircraft
were issued. Testing on the Boeing 707 jet transport and the Lockheed
Electra turbo-prop transport remained on schedule with certification pro­
gramed for August 1958. Sixty engines were certificated, including one
rocket engine and the first United States-manufactured propeller turbine
engine. Type approvals were also issued on 43 propeller models, among
which was 1 having a rating of 4,900 horsepower, the highest ever granted
for a United States civil propeller.

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There was an increase of approximately 36 percent in the number of
pilot and student pilot certificates issued in fiscal 1958. Sixteen selected
inspectors received training in accident investigation and analysis at the
University of Southern California.
The Medical Division was reorganized to cope more efficiently with
medical and related problems, and special attention was devoted to the
specific aspects of high speed, high altitude flight. The Civil Aeronautics
Medical Research Laboratory was relocated from Columbus, Ohio, to the
CAA Aeronautical Center at Oklahoma City, where facilities are available
for continuing studies on medical problems, particularly as they apply to
jet operations.

Airports

Development of design data for airports to serve turbine powered aircraft
was emphasized. New or revised criteria were published in interim form
pending completion of a revised Airport Design manual. The Small Airports
booklet was prepared for publication in revised form.
The 1958 National Airport Plan published during the year indicates the
need for the construction or improvement of 1,998 airports for general
aviation, 824 airports for air commerce, 147 heliports, and 92 seaplane
facilities—a total of 3,061 aircraft landing facilities.
Under the Federal Aid Airport Program, $63 million is available for each
of the fiscal years 1957, 1958, and 1959. The program for fiscal 1959, re­
leased on March 21, 1958, allocated, $63,566,135 in Federal funds for 358
projects, making it the largest annual allocation under the Federal Aid Air­
port Program since its inception in 1946.

International Activity

At year’s end international activities included administering the safety
certificates of 14 United States international carriers and 47 foreign air
carriers operating to or through the United States and supervising 33 repair
stations holding United States certificates, of which 29 are foreign.
Technical assistance to foreign countries continues to show a steady
growth. A total of 325 foreign participants from 41 countries received
aviation training in the United States. Civil Aviation Assistance Groups
are now established in 27 countries. The International Cooperation Ad­
ministration has made available to the CAA approximately $4,850,000 for
the procurement of aeronautical equipment for 18 countries.
International Civil Aviation Organization (ICAO) programs maintained
a high rate of activity and at one time during the year 23 international
meetings were being planned or coordinated. Worldwide adoption of the
United States common system of navigation aids was aggressively pursued.
At the ICAO European-Mediterranean Regional meeting, plans were
adopted for the use of the VOR as a basic airways aid and 315 VOR instal­
lations were recommended.

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39

Planning and Development

As the pace of planning for civil jet operations increased, the CAA Jet
Planning Group produced its Third Progress Report and consolidated all its
information for use when civil jets begin flying within a few months.
GAA’s Technical Development Center accelerated its activity during the
year, completing significant simulation studies of new jet transport planes,
introduced into the air traffic control system, increasing the capacity and
utilization of its dynamic air traffic control simulator to handle the in­
creasingly complex problems of the future, emphasizing developmental
work on electronic computers for quicker solving of air traffic control prob­
lems, and completing studies on fire resistance and fire detection for podmounted jet engines.

Other Activities

During fiscal 1958 an increased number of employees, primarily in the air
traffic control and safety functions, necessitated the expansion of technical
training programs at the Aeronautical Center and Facility training schools.
A supervisory-managerial skills training program is being implemented
throughout CAA.
A system of improved program administration known as the Program
Plan of Operation was installed. This system requires the realistic plan­
ning, direction, and evaluation of operations as well as the independent
internal audit of management.
The Public Information Staff concentrated on informing the public
of CAA’s preparations for the jet age, including the rapid expansion and
improvement of the air navigation and air traffic control system, and on
assisting in recruiting the thousands of new personnel required. During
the course of the year, reaching a climax in June, the Twentieth Anniversary
of the founding of CAA was observed. This was an extremely successful
vehicle for telling the CAA story.
Enforcement of the Civil Air Regulations resulted in the suspension or
revocation of 598 certificates and the collection of $50,225, in civil penalties.

DEFENSE AIR TRANSPORTATION ADMINISTRATION
The primary function of the Defense Air Transportation Administration
is to develop and keep current the plans and directions for the mobilization
of the United States civil aviation resources in wartime.
The Defense Production Act and related orders delegate to the Secretary
of Commerce authorities for allocations and priorities with regard to
civil air transportation facilities. These activities have been redelegated
to DATA. An allocation of airlift is made between the Civil Reserve
Air Fleet (CRAF) for the direct support of the military in time of war, and
the War Air Service Pattern (WASP), which is the continued commercial

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A N N U A L R E PO R T O F T H E SE C R ET A R Y O F CO M M ERC E

operation of the airlines to carry war-essential traffic under an air priorities
system. There is a periodic adjustment of the allocations to CRAF and
WASP, dependent upon changes in the war plans of the Nation, essential
industry needs, and changes in the inventory of aircraft. The DATA
staff spends a large part of its time improving the efficiency and effective­
ness of plans for mobilization of CRAF and WASP.
The CRAF includes about one-third of the long range, four-engine
aircraft of the civil airlines, to be operated under contract in direct support
of the Military Air Transport Service (MATS), and to be available to
MATS as soon as possible but not later than 48 hours following activation,
using civil aircraft, personnel, and maintenance facilities. DATA,
MATS, and the airlines have cooperated on drawing up detailed opera­
tional plans and essential stockpiles for effective operation of the CRAF
under current military emergency war plans.
...
. ...
The WASP is that part of the total airlift of the civil air carriers which
would be required for a war economy. Planning has been accomplished
by DATA and the Department of Defense for carrying only essential air
traffic under an air priorities system, with policies jointly determined by
the Departments of Commerce and Defense, and with administration
within the Office of the Secretary of Defense. The system would require
certification as to the essentiality and urgency of priority traffic.
The requirement for highly skilled aviation manpower in the event of
civil aviation mobilization continues to present a critical problem. DA i A
is continuing to work with representatives of industry and the military m an
effort to reduce the estimated shortage of skilled manpower. The Admin­
istrator of DATA serves as chairman of the Interdepartmental Aviation
Manpower Committee, established by the Office of Civilian and Defense
Mobilization (OCDM) to study the broad aspects of aviation manpower
P In addition to plans for the civil defense use of scheduled and nonscheduled airline aircraft for the CRAF and WASP, DATA participates in
the planning for use of noncarrier transport-type aircraft owned by private
individuals and corporations. These aircraft will be utilized though the
National Emergency Defense Airlift (NEDA) plan, developed by DATA
and coordinated with OCDM.
tt j c*.»*»«,
The Administrator of DATA serves as the Chairman of the United States
delegation on the Civil Aviation Planning Committee (CAPC) of the Nort
Atlantic Treaty Organization (NATO), and a DATA staff member is the
United States representative on the Planning and Logistics Working Group
of the CAPC.

MARITIME ADMINISTRATION

The Maritime Administration is responsible for fostering an American
merchant marine sufficient to carry a substantial part of the waterborne

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41

commerce of the Nation and capable of serving as a naval auxiliary in time
of emergency or war. Its functions include the construction, repair, and
operation of merchant ships, administration of operating- and constructiondifferential subsidy programs and other Government aids to shipping, the
designation of essential routes for waterborne commerce, the maintenance
of reserve fleets and shipyards, the training of merchant officers, and the
direction of maritime research and development programs.
During fiscal 1958 continued efforts and resources were devoted to the
development and promotion of programs which would achieve a wellbalanced, modern, and efficient merchant marine. Considerable progress
was made in (1) a planned long-range ship construction program providing
for a phased-out replacement of current ships with modern, more efficient
types in numbers adequate to meet the country’s immediate and future
requirements; (2) a progressive program to foster and promote the well­
being of the American merchant marine through the administration of the
operating- and construction-differential subsidy, insurance of loans and
mortgages, trade-in-and-build and other forms of Government aid pre­
scribed by the Congress; (3) a planned program for continual improvements
in the efficiency and economy of the operation of the American merchant
marine through the development of new ship designs and modifications to
existing design types, including those concerning the hull, propulsion
systems and auxiliaries, cargo-handling equipment, and other ship compo­
nents and systems; and (4) a program devised to achieve increased improve­
ments in the management of the agency.
In all areas the Maritime Administration continued to follow the basic
policy of utilizing private initiative and capital to the utmost, with Govern­
ment assistance and participation limited to the extent necessary to meet
the economic and national security requirements of the maritime laws.

Aid to Shipping

The Government-aid programs designed to assist and encourage American-flag operators in the operation and maintenance of an efficient and
modern American merchant marine were continued with significant results.
Among the most important were the accomplishments with respect to the
construction of new ships and the replacement of existing ships with modern
types. These programs also assure the retention of adequate ship construc­
tion facilities, management abilities, and shipbuilding workforce. New
operating-differential subsidy contracts were executed with 4 operators
providing for the replacement of 96 vessels. The replacement provisions of
these contracts plus the replacement provisions in the contracts of the other
11 subsidized operators will provide for the collective replacement of 278
ships by 1972, at a construction cost approximating $4 billion.
Separate construction-differential subsidy contracts were executed with
4 operators for aid in building 15 new ships at an estimated construction
cost of $167 million, and there was approved for trade-in 17 obsolete

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A N N U A L R E PO R T O F T H E SE C R ET A R Y OF CO M M ERC E

vessels for an allowance of credit on the new construction of $21.6 million;
construction aid was also approved in connection with the reconstruction
of the SS. Independence and the SS. Constitution and 2 cargo ships, involving
a total estimated cost of $13,267,619. In addition, there were executed
12 contracts providing Federal insurance of loans in the construction of
14 ships having a total estimated construction cost of $171 million.
Subsidy contracts were executed by the Federal Maritime Board with
American Export Lines, Inc., to cover the construction of four new cargo
vessels. A contract for the construction of two of these ships was awarded
to the New York Shipbuilding Corp. through normal competitive bid
process, and a contract was awarded to National Steel & Shipbuilding
Corp. for the construction of the other two as an allocation under section
502 (f), Merchant Marine Act of 1936.
The base domestic cost of the two vessels being constructed by the
New York Shipbuilding Corp. was $11,420,983 inclusive of n a tio n a l
defense costs for each vessel. The estimated foreign cost of each such
vessel was $5,878,075 exclusive of national defense costs, and the final
construction-differential allowance was $4,832,779.
The Government will pay the cost of national defense features amounting
to $151,475 and the increased cost of $558,654 representing the difference
in cost between the bid for four ships and the award of two ships. The
domestic cost of the other two vessels to be constructed by National
Steel & Shipbuilding Corp. was $11,754,501 for each vessel inclusive of
national defense costs. The estimated foreign cost of each of the two latter
vessels was $6,174,959 exclusive of national defense costs, and the final
construction-differential allowance was $5,110,470. The Government will
pay the cost of national defense features amounting to $62,435 and the
increased cost of $406,637 resulting from allocation of this contract under
section 502 (f). Four vessels were traded in against this construction for a
total allowance of $6,774,000.
Approval was given to an application of American President Lines, Ltd.,
for construction-differential subsidy to aid in the building of two new
Mariner-type cargo vessels for operation in its subsidized service, at a base
domestic contract price of $14,566,000 per vessel inclusive of national de­
fense features costing $160,000, with a tentative construction-differential
subsidy of 33% percent, subject to adjustment when a final subsidy rate is
developed, but not to exceed a construction-differential subsidy of 50 per­
cent. A construction contract was awarded to the Bethlehem Pacific Coast
Steel Corp., as an allocation under section 502 (f), Merchant Marine Act of
1936. Three vessels were traded in against the above construction for a
total allowance of $4,050,000.
A construction-differential subsidy contract was executed by the Board
with Lykes Bros. Steamship Co., Inc., in connection with the building of
five new cargo vessels for operation in its subsidized services. The base
domestic construction cost of each vessel amounted to approximately

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43

$9,636,000 inclusive of national defense features costing $25,950, the esti­
mated foreign cost per vessel being $5,330,000, and the final constructiondifferential allowance was $4,280,000 per vessel. Five vessels were traded
in against this construction for a total allowance of $ 4 .5 m illion
Construction-differential subsidy contracts were executed with MooreMcCormack Lines, Inc., to cover the construction of four new cargo vessels.
A contract for the construction of two of these ships was awarded to the
Sun Shipbuilding & Dry Dock Co., through normal competitive bid proc­
ess, and a contract was awarded to Todd Shipyards, Inc., for the construc­
tion of the other two as a result of allocation under section 502 (f) of the
1936 act.
The base domestic cost of the two vessels being constructed by Sun Ship­
building & Dry Dock Co. on an adjusted price basis is $10,621,943 for each
vessel inclusive of national defense costs. The estimated foreign cost for
each such vessel was $5,550,190 exclusive of national defense costs, and the
final construction-differential allowance was $4,573,733 per vessel. The
Government will pay the cost of the national defense features amounting to
$130,902, and the increased cost of $367,118 representing the difference in
cost between the bid for four ships and the award of two ships.
The base domestic cost of the two vessels being constructed by Todd Ship­
yards, Inc., on an adjusted price basis was $11,012,421 for each vessel in­
clusive of national defense costs. The estimated foreign cost of each of these
two latter vessels was $5,657,090 exclusive of national defense costs, and the
construction-differential allowance was $4,573,733. The Government will
pay the cost of national defense features amounting to $75,127 and the in­
creased cost of $706,471 resulting from allocation of this contract under
section 502 (f) of the 1936 act. Five vessels were traded in against the
above construction for a total allowance of $6,285,500.
The Federal Maritime Board, in connection with the application of
Grace Line, Inc., for aid under section 501 (c) of the 1936 act, authorized
the payment of a construction-differential subsidy for the reconstruction of
the SS. Santa Eliana and the SS. Santa Leonor from C2 cargo ships to con­
tainer ships, for operation on Trade Route No. 4.
The Federal Maritime Board also approved the application of American
Export Lines, Inc., for aid under section 501 (c) covering the reconstruction
of the S S . Independence and the S S . Constitution, to provide for additional
first-class passenger space, and authorized the payment of a constructiondifferential subsidy.
On June 30, 1958, there were pending from 8 American-fiag operators
applications for construction-differential subsidy contracts to aid in the
construction of 22 cargo ships, 1 transpacific liner, and 4 tankers.

Federal Ship Mortgage and Loan Insurance

The Maritime Administration during the fiscal year 1958 executed
contracts authorizing Government insurance of private construction loans
487307— 59------------ 7

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by banks and other lending agencies aggregating $58,449,500, and private
mortgage loans aggregating $133,328,465.
As of June 30, 1958, there were pending from 13 American-flag operators
applications under title XI of the act for Federal Ship Mortgage Insurance
aid covering the construction or conversion of 24 ships at a total estimated
cost to the applicant of approximately $197,500,000, on which insurance
has been requested covering estimated construction loans of $111,122,000
and estimated mortgage loans of $165,800,000. The proposed construc­
tion involves 4 tankers, 9 roll-on-roll-off cargo ships, 4 roll-on-roll-off
ferries, 3 dry cargo ships, 1 trailer ship, 2 combination cargo-passenger ships,
and 1 barge.
A default occurred in October 1957, involving the SS. Carib Queen,
owned by TMT Trailer Ferry, Inc., for which a mortgage loan of $4,112,500
had been insured in December 1956. This default required the payment
to the trustee of insurance in the amount of $4,087,292.58, consisting of
principal of $3,947,416 and interest of $139,876.58. Upon default and
foreclosure of the mortgage the vessel was acquired by the Maritime
Administration.

Operating-Differential Subsidy

Effective January 1, 1958, the States Steamship Co. was awarded a 20year operating-differential subsidy agreement to cover its operations
between ports on the United States Pacific coast and ports in the Far East.
This agreement includes the vessels of its subsidiary, Pacific Transport
Lines, Inc., a subsidized operator. The operating-differential subsidy
agreement with Pacific Transport Lines, Inc., was taken over by States
Steamship Co. effective August 22, 1957, and terminated on December 31,
1957.
New 20-year operating-differential subsidy agreements were executed
with Farrell Lines Inc., operating between U. S. Atlantic ports and the
southeast and west coasts of Africa; Lykes Bros. Steamship Co., Inc.,
operating between gulf ports and the Caribbean, United Kingdom,
Mediterranean, south and east coasts of Africa and Far East; and Missis­
sippi Shipping Co., Inc., between gulf ports and the east coast of South
America, south and east coasts of Africa, and Far East. These contracts,
effective January 1, 1958, replace old subsidy agreements which expired
or were terminated December 31,1957. These contracts provide for, among
other things, the replacement of each operator’s current fleet of vessels.
As of the close of the fiscal year continued progress had been made in the
negotiations with American Mail Line, Ltd., Gulf & South American
Steamship Co., Inc., and the Pacific Far East Line, Inc., for the execution
of new operating-differential subsidy agreements to become effective
January 1, 1959.

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45

Ship Operations

Throughout the fiscal year there existed a drastically reduced volume of
oceangoing traffic. This situation resulted in a surplus of dry cargo
tonnage and materially contributed to reduced charter hire rates and re­
duced sales values for both American-flag and foreign-flag ships. The
worldwide charter hire rates fell below the Maritime Administration’s
fair and reasonable rates and generally were not compensatory for United
States operators in the bulk trades.
The Federal Maritime Board and Maritime Administration took action
to alleviate the situation insofar as was possible by effecting a reduction of
Government-owned vessels under bareboat charter and adopting pro­
cedures, in connection with other Government agencies, whereby privately
owned American-flag vessels receive priority in the fixing of cargoes under
Government sponsored programs.

Ship Custody

At the close of fiscal 1958 there were 2,074 ships in the reserve fleets.
During the year 361 ships were taken into the fleets and 176 were withdrawn,
for a net increase of 185 ships.

Nuclear Ship

Considerable progress was made during the fiscal year in connection with
the design and construction of the nuclear-powered merchant ship, the
NS. Savannah, through the joint efforts of the Maritime Administration and
the Atomic Energy Commission, acting within their respective spheres of
responsibility.
The Maritime Administration and the Atomic Energy Commission
directed continued efforts to achieving the design and construction of
nuclear-powered merchant ships which would be economically competitive
with ships having conventional power. To this end the staffs of these
agencies were augmented by the abilities of some of the foremost research,
engineering, and technical firms in the country.
Considerable efforts are being directed to provide the maximum safety
to passengers, crew, and others on or near nuclear merchant ships. In­
volved are procedures for docking, loading and discharge of active and
spent fuel waste, accidental emission of radioactive materials, handling of
ship casualties, and related matters.
The total number of ships under construction, conversion, or on order
in all United States shipyards decreased as a result of cancellations of con­
tracts or postponement or suspension of construction due to the decline in
traffic volume and oversupply of worldwide tonnage. However, the
seriousness of the situation was considerably relieved by the progress made
in the long-range ship replacement program of subsidized operators. In
summary, the program showed that (1) at the end of fiscal 1958 there were

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A N N U A L R E P O R T O F T H E SE C R E T A R Y O F C O M M ER C E

100 ships under construction or conversion or on order, providing approx­
imately $1,109 million of work to the industry; and (2) of this number 19
ships, having a construction value of $287 million, were under construction
or on order under the subsidized operators replacement program.

Maritime Training

The United States Merchant Marine Academy had enrolled in training
during the fiscal year an average of 913 cadets, including 5 Latin-Americans,
with 156 successfully completing the 4-year course of instruction. All
graduates received United States merchant marine officer licenses, issued
by the United States Coast Guard, as third mates or third assistant engineers
of ocean ships. They also received bachelor of science degrees and, if
qualified, commissions as ensigns in the Naval Reserve.

Ship Sales

During the fiscal year there was initiated, with the approval of the De­
partment of the Navy, a program to scrap 200 of the least desirable of the
1,400 World War II Liberty-type ships in the National Defense Reserve
Fleet. Under this program 26 ships were sold for scrapping purposes in
accordance with authority contained in the Merchant Marine Act of 1936,
resulting in a total return of $2.7 million.
BUREAU OF PU B LIC ROADS

The Bureau of Public Roads has represented the Federal Government in
matters relating to highways since 1893. Reflecting the nationwide im­
portance of highway transportation for better living, and for production,
distribution, and defense, the Bureau’s functions cover a broad range of
engineering, administrative, and research activities. It administers Federal
aid to the States for highway improvement, a program which has been in
existence since 1916; supervises road construction in national forests, parks,
and parkways; furnishes highway engineering aid to other Federal agencies;
and advises foreign countries in highway planning and improvement.
A basic and continuing objective of the Bureau is to help the States plan
and develop modern highway systems adequate for the Nation’s growing
motor transport needs. The general character of this cooperative FederalState relations is well established by law and long experience, and the
Bureau focuses much of its engineering and research efforts on essential
aspects of highway planning, design, improvement, and operation.
During fiscal 1958 the Bureau and the States cooperated in planning and
carrying out a record volume of highway improvement under the huge
program launched by the Federal-Aid Highway Act of 1956. Attention
and effort were devoted both to the Federal-aid primary and secondary
systems and their urban extensions (the so-called ABC program) and to

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47

the National System of Interstate and Defense Highways. This 41,000-mile
nationwide network of superhighways will link nearly all cities of 50,000
population or more. Designed to handle 1975 traffic adequately when over
100 million vehicles are anticipated, the Interstate program proceeded on
schedule during its second year, as did the ABC program.
The first of a series of estimates of the cost of completing the Interstate
System was presented to the Congress on January 7, 1958, as required by
the 1956 act. This estimate, prepared cooperatively by the States and the
Bureau, showed a total Federal-State financing cost of $37.6 billion for the
38,548 miles then designated, as compared with the $27.6 billion provided
for by the 1956 act. The 37 percent increase resulted from three major
causes: (1) traffic forecasts were higher, necessitating more traffic lanes;
(2) the 1956 act specified that local needs should be given equal considera­
tion with interstate commerce needs, thus requiring many more inter­
changes; and (3) construction costs had risen 12 percent.
The cost estimate study, made on the 40,000 miles of the Interstate
System routes approved prior to the 1956 act, determined by more accurate
location that the route lengths totaled only 38,548 miles. The act had
also provided for an increase in total system length to 41,000 miles. After
consideration of additional routes proposed by the States and consultation
with the Department of Defense, the Bureau announced on October 18,
1957, a tentative selection of 2,102 miles of routes. Throughout the year
exact locations of these routes were discussed with the States concerned.
Another study reported to the Congress on January 7, 1958, was made
in connection with the declaration, in the 1956 act, of Congress’ intent to
determine whether reimbursement should be made to the States for toll
or free highways constructed on the Interstate System between August 2,
1947, and June 30, 1957. The act had authorized inclusion of toll roads
in the Interstate System and the Bureau announced on August 21, 1957,
that 2,102 miles of toll roads had been included as Interstate routes—most
of the Nation’s better-known turnpikes. Some of this mileage, however,
was not eligible for consideration in the reimbursement study. The study,
made in cooperation with the States, showed that 1,950 miles of toll roads
and 8,909 miles of free roads, costing $6.1 billion, were eligible for reim­
bursement consideration. Most of these highways were recently built or
are still under construction. The Bureau made no recommendations re­
garding the reimbursement problem.
Studies of highway safety and the equitable allocation of highway costs
and taxation called for by the act, moved along on schedule during the
fiscal year.

Federal-Aid Highway Act of 1958

The Federal-Aid Highway Act of 1958, signed by the President on April
16, 1958, continued the biennial authorization of Federal aid to the States
for the ABC program, providing $900 million for fiscal 1960 and $925

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million for fiscal 1961. These amounts are to be divided 45 percent for the
primary system, 30 percent for the secondary system, and 25 percent for
their urban extensions and to be matched 50-50 by the States.
This act authorized a special $400 million in Federal aid for primary,
secondary, and urban highway improvement, with the provision that work
with these funds must be under contract by December 1, 1958, and sched­
uled for completion by December 1, 1959. Instead of the regular 50-50
ratio of the ABC program, the $400 million is to be matched on a two-thirds
Federal, one-third State ratio. An additional $115 million was authorized
to aid the States in meeting up to two-thirds of their one-third matching
share; but this is an advance, to be deducted from the States’ fiscal 1961
and 1962 Federal-aid apportionments.
The 1958 act also increased the authorizations for the Interstate System
program from $2 billion to $2.2 billion for fiscal 1959, and from $2.2
billion to $2.5 billion for each of fiscal 1960 and 1961. Interstate funds are
matched on a 90-percent Federal, 10-percent State basis. Further, the
act provided additional Federal participation where States undertook the
control of advertising along the Interstate System under regulations to be
developed by the Secretary of Commerce. Such regulations were being
formulated at the year’s end.
The 1956 act created a highway trust fund, to receive certain Federal
highway-user excise revenues, and from which Federal aid to the States is
paid. Net receipts of the fund in the fiscal year were $2,044 billion, close
to the even $2 billion originally forecast. However, the long-term forecast
patterns of trust fund income and Federal-aid payments do not coincide,
and the “pay-as-you-go” clause in the 1956 act permits actual apportion­
ment to the States of only that proportion of an annual authorization
which can be met by the trust fund when money is needed for payments.
Consequently, of the $2.2 billion authorization made by the 1956 act for
fiscal 1960 Interstate Federal aid (and raised to $2.5 billion by the 1958
act), only about $1.6 billion could have been apportioned.
The 1958 act, however, set aside the “pay-as-you-go” clause for fiscal
1959 and 1960. It also authorized the Secretary, as provided in the 1956
act, to apportion the 1960 Interstate funds on the basis of the cost estimate
reported above, each State to receive a share of the total apportionment
equivalent to its proportion of the total cost estimate.
The 1958 act also authorized funds for construction of roads in national
parks, forests, and other public lands and called for a study of forest highway
needs. The study was being launched at the end of the year.
Federal-aid legislation has been a continuing series of some 40 acts
amendatory to the original Federal-Aid Road Act of 1916. At the request
of Congress, the Bureau prepared a codification, consolidating all pertinent
legislation into one act. Its passage by Congress seemed assured at the
end of the year.

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Progress of Federal-Aid Highway Program

Progress of the Federal-aid highway program reflected the impact of the
greatly increased authorizations provided in the 1956 act. To permit
continuing advance planning of work, the Federal-aid funds for fiscal 1959,
authorized by the 1956 act, were apportioned to the States on August 1,
1957. The amounts involved were $875 million for the ABC program and
$2 billion for the Interstate System. The additional $200 million for the
Interstate System for 1959 and the special $400 million authorization for
primary, secondary, and urban work, provided in the 1958 act, were
apportioned on April 16, 1958, the day the act became law.
A good indication of progress of the Federal-aid Interstate and ABC
programs lies in the obligation of Federal funds. In fiscal 1958 a total of
$2.75 billion was obligated for these programs. Interstate funds obligated
amounted to $1.86 billion and ABC funds to $889 million. Measured by
these accomplishments, the program is proceeding ahead of schedule.
Work completed during the year on the Interstate System cost $486 mil­
lion, of which $384 million was Federal aid. Construction contracts were
completed on 987 miles, but a considerable proportion of the funds spent
was for preliminary engineering and acquisition of rights-of-way.
Completions of all classes of Federal and Federal-aid projects during the
year accounted for the improvement of 24,204 miles of roads and streets
at a cost of $1.99 billion, including $1.19 billion of Federal funds. Federalaid primary improvements on 6,799 miles of highways cost $680 million, of
which $356 million was Federal; Federal-aid secondary improvements on
15,008 miles of farm-to-market and feeder roads cost $444 million, including
$229 million of Federal funds; Federal-aid urban improvements on 343
miles of city arterials cost $306 million, of which $154 million was the Fed­
eral share. Projects were also completed on 1,067 miles of roads in na­
tional forests, parks, and parkways, and on flood-relief projects, at a cost of
$80 million, including $65 million of Federal funds.
In light of today’s traffic volumes and tomorrow’s needs, the miles of
highway completed is not in itself a true measure of the facilities provided.
Some 10 percent of the work was multilane expressways which are helping
to relieve congestion in large cities and along major traffic corridors.

Research Activities

The Bureau carried forward its research studies of highway use, finance’
and administration, and the broad array of physical problems associated
with materials and methods of construction. The expanded highway pro­
gram gives added importance to research seeking improvement in the de­
sign, durability, economy, and use of highways and structures.
A striking example is the American Association of State Highway Offi­
cials (AASHO) Road Test in Illinois, a $22 million investigation of the
performance of both rigid and nonrigid pavements, and bridges, under con­

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trolled traffic by vehicles of varied weights. The Bureau is actively par­
ticipating in this project, which is sponsored by the AASHO, industry, and
the Department of Defense, and directed by the Highway Research Board.
W EA TH ER BUREAU

The Weather Bureau is responsible for the issuance of severe weather
and flood warnings, for the forecasting of daily weather changes affecting
all parts of the United States and adjacent waters, and for observing,
recording, and reporting weather conditions.
Each year brings additional demands for more weather services to meet
the special requirements of our growing economy. During fiscal 1958
much of the new work of the Bureau was devoted to meeting the more
pressing of these national weather service requirements. Recent develop­
ments in satellite and missile technology have also brought increased
demands for greater meteorological research programs in order to keep
abreast of national requirements in the coming space age.

Research Activities

Providing daily weather forecast and warning services to all the people
in every county of the United States is an enormous task which requires an
extensive network of observation and telecommunication stations and the
issuance of thousands of forecasts every 24 hours.
Much of the daily work of the Bureau naturally involves the issuance and
distribution of forecasts and warnings for the use of all citizens in planning
their daily activities and in protecting themselves from unexpected storms
and floods.
Recent improvement in general forecast services to the public in large
measure is a product of earlier research and development work, and current
research and development activities are expected to contribute greatly
toward further improved national weather services.
Research activities of the Bureau, although modified by changing tech­
nological developments and service requirements, are directed toward
reaching a better understanding of the atmosphere in order (1) to permit
improved warnings of storms and floods for the protection of the general
public; (2) to better our daily weather and river forecasting services; and
(3) to provide our citizens with required information and services concern­
ing the weather and climate of the United States.

Hurricane Research

For many years there was a great need for a systematic study of the
mechanics of hurricane inception, movement, intensification, and decay
to protect people in coastal areas by the issuance of more timely and
accurate forecasts of tropical disturbances.

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The National Hurricane Research Project, established at West Palm
Beach, Fla., in 1956, has continued its concentrated attack on the hurricane
problem with the help of leading specialists in tropical meteorology. A
major contribution to this work has been the use of specially equipped
Air Force aircraft for observing and recording great quantities of data at
all heights and in all sectors of these dangerous revolving storms.
Already the data and experiences acquired by the National Hurricane
Research Project have led to important discoveries on the makeup and
behavior of tropical storms. For example, hurricane Carrie of 1957, which
spent 16 days at sea, provided the Research Project with the first opportunity
for simultaneous reconnaissance flights into a mature hurricane by all three
of the Project’s aircraft. Flying at separate levels up to 40,000 feet, two
B—50’s and one B-47 simultaneously gathered data that permit more
accurate appraisals of previous hypotheses on storm structure, intensity,
and movement and also have led to important revisions of long-held con­
cepts of storm inception and behavior.
The large amount of new information on storms obtained by Research
Project aircraft has been supplemented by expanded surface weather
observing networks throughout the storm formation areas and by the
strengthened storm vigilance of coastal radar stations.
Intensified research into the storm surge problem (the high storm tides
accompanying tropical storms are the greatest danger to life and property)
has revealed relationships between central storm pressures and subsequent
tides that will lead to more precise forecasts of extreme tides for specific
segments of our coastline.
The storm data collected so far also have revealed many new aspects
of the physical structure within a hurricane. For example, it now appears
that the major release of energy taking place inside a hurricane occurs
within a small area close to the hurricane’s center. This newly discovered
major energy area is less than 1 percent of the wide area of such activity
often pictured in earlier hurricane models. This and other information
recently gathered relating to the energy distributions within hurricanes
will help to evaluate current and future proposals to modify or divert
hurricanes.

Other Severe Storm Research

Much effort was directed by the Weather Bureau during fiscal 1958
toward the development of plans for an effective research attack on the
tornado and severe local storm problem. The aim is to improve storm
warnings issued for particular points in specific time periods. These
development plans also will have a bearing on further investigations of
possibilities for the artificial modification and prevention of severe local
storms.
Bureau scientists engaged in severe local storms research in Washington,
D. C., and Kansas City, Mo., have made detailed studies of the small

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scale (mesoscale) features of atmospheric behavior which have revealed
some hitherto unsuspected aspects of intense local storms.
The Bureau tornado research airplane completed another season of
successful probing of severe storm areas to provide data at various flight
levels surrounding tornadoes and intense thunderstorms.
Experimental Doppler radar equipment, similar to types commonly used
for speed monitoring work by highway police, was designed for Bureau use
in detecting high-speed motions associated with tornadoes. This unique
Doppler equipment was placed in field operation early in the severe storm
season. On April 2, 1958, a tornado at Wichita Falls, Tex., passed within
5 miles of the Doppler set, providing the first concrete evidence that Doppler
radar can detect tornado motions and distinguish them from surrounding,
less destructive parts of storms or squall lines.
Weather research on hurricanes, tornadoes, solar radiation, and other
fields also has been conducted during the past year at a number of univer­
sities and private research organizations under Bureau sponsorship.

Related Research

Research recently undertaken by the Bureau regarding severe storms
extends from the microphysics of clouds and precipitation to broad scale
weather systems making up the atmospheric circulation around the entire
hemisphere.
The successful launching of American and Soviet earth satellites signaled
a new and revolutionary approach to many fields of meteorological research.
Satellites now make it possible, for example, to observe the weather from
the top side of the atmosphere to supplement the usual observations taken
from the ground or within the lower layers of the atmosphere. Plans for
the direct measurements of the sun’s energy absorbed and reflected by the
earth and the air above us are expected to develop into a better under­
standing of the earth’s heat budget and the driving forces that lead to
changing weather around the world.
An important user of satellite-secured atmospheric data will be the
General Circulation Research Unit of the Weather Bureau, which is now
studying advanced and complex mathematical models of the general
circulation of the entire atmosphere. A newly installed high-speed elec­
tronic computer permits the rapid computations necessary to simulate the
movements of primary atmospheric circulations as well as the movements
of changing weather regimes.
The Office of Physical Research is investigating the physics—or, more
appropriately, the microphysics—of cloud particles, and the development
of precipitation and electric charges within clouds. Such basic investiga­
tions are expected to result in further advancement of our understanding of
such meteorological problems as quantitative precipitation forecasting,
aircraft icing, air pollution, and drought. These studies also will provide

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CO M M ERC E

53

the more complete understanding needed about cloud processes to permit
more satisfactory evaluations of attempts at weather modification or control.

Global Weather and the IGY

Under the meteorological program of the International Geophysical Year
a great expansion in the worldwide collection of weather data has been pos­
sible in the past year. The frontiers of data coverage have been pushed
further back into the world’s vast barren and uninhabited areas (including
the Arctic and Antarctic) and much data of great meteorological signifi­
cance has been secured.
In cooperation with several other nations the United States established
seven weather stations on the Antarctic continent, including one at the
South Pole. The Bureau is operating the Antarctic weather central at
Little America and has been assigned other major roles in the broad scien­
tific program of the IGY.
Important weather observations from the top side of the world were taken
by Bureau personnel located on floating ice-island “T-3” and from Station
“A” on the Arctic Ocean icepack.
The Bureau has assisted in the operation of five upper-air sounding sta­
tions in South America under the IGY. These new stations, together with
new and existing stations in the Western Hemisphere, provided a pole-topole “sentry line” of observing points, across which the moving weather of
both hemispheres was measured.
Data from allied sciences such as glaciology and oceanography were ob­
tained on a much more extensive scale and are being used by meteorologists
in studies of climatic change and the important reactions and exchanges of
heat and moisture between the atmosphere and the oceans.

Forecast and Warning Services

Throughout the year the Bureau maintained and strengthened its efforts
to provide more accurate and more timely forecasts and warnings.
An improved and simplified system of coastal warning displays to warn
navigation of dangerous winds and seas was introduced on January 1, 1958,
at stations along the United States seacoasts, the Great Lakes, the Hawaiian
Islands, and Puerto Rico.
Early in 1958 the Federal Communications Commission and the Air
Force authorized the Bureau to make special use of existing national defense
CONELRAD alerting procedures to alert radio and television listeners of
emergency storm and flood warnings. During 1958 the CONELRAD
facilities were used effectively in several localities to warn of approaching
tornadoes. It is expected that many lives will be saved each year by the
general use of the CONELRAD emergency weather warning procedures.
Additional modified war surplus radar equipment installed at 10 new
locations led to improved short range forecasts and better warnings of
severe local storms and heavy rains to surrounding areas.

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Conferences held between representatives of the Bureau and State or local
officials in 10 States in the Northern Plains and Great Lakes regions led to
the establishment of additional cooperative storm-observing networks.
The Bureau has been making detailed studies of the meteorological needs
of the aviation services in the jet age. A working plan through fiscal 1963
entitled “Design for a Modern National Aviation Weather System” was
drawn up and coordinated with aviation groups in Government and
industry.
Plans for a pilot project in agricultural weather service in the Delta area
of Mississippi were developed after a comprehensive on-the-spot survey.
Bureau personnel in the United States Delegation to the Commission
for Synoptic Meteorology of the World Meteorological Organization
played a major role in developing plans for the establishment of a Northern
Hemisphere Telecommunications Network. The network will consist of
five centers, at New York, Frankfort, Moscow, New Delhi, and Tokyo.
Each center will be responsible for the collection, transmission, and dis­
semination of weather data from its zone of responsibility to other centers
and zones throughout the world.

Modern Meteorological Equipment and Observation Programs

Construction of 42 sets of new automatic tracking radiotheodolites for
obtaining high level atmospheric soundings was undertaken. Plans were
made for later evaluation tests under field conditions and associated facili­
ties are being constructed.
Almost half of the 95 continuous-visibility and cloud-height measuring
systems to be used at the Nation’s busiest airports were delivered and in­
stalled.
Additional automatic teletypewriter weather reporting stations, especially
equipped to flash weather reports from mountainous areas and part-time
stations, were installed at Havre, Mont.; Meacham, Oreg.; Guadalupe
Pass, Tex.; Raton, N. Mex.; Alpena, Mich.; and Rome, Ga.
The Bureau’s program of atmospheric chemistry was expanded and
observations of total ozone were started at Green Bay, Wis., and Caribou,
Maine.
The continuing program of solar radiation observations was broadened
through cooperative efforts with several scientific agencies and other
countries.
Comprehensive tests of upper-air wind-finding equipment were held to
compare and evaluate separate features of the latest equipment being used
by the Bureau, United States military forces, and Canada. The test pro­
gram permitted evaluations of various kinds of high level observing equip­
ment designed to meet the needs of jet aviation.
Facilities at the Bureau’s Observational Test and Development Center
at Silver Hill, Md., were modernized to permit a more complete equipment
test progiam. Field tests were made of several newly developed instru­

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55

ments including: An infrared absorption hygrometer designed to measure
precipitable water in the atmosphere; a continuous recording remote
hygrothermometer for jet airports; a radar rain gage beacon; radiosonde
recorder equipment; dial-type maximum-minimum thermometers; and
various kinds of radiometers.
Construction of 31 high-powered newly designed weather search radars
was well underway. Associated facilities such as towers and radomes
have been procured. A total of 65 low-powered weather search radars
was in operation at the end of the year.

National Meteorological Center

In February 1958 the Bureau reorganized existing analysis, forecasting,
and numerical prediction units at Suitland, Md., into the comprehensive
National Meteorological Center (NMC). This new center will coordinate
and extend the use of high-speed electronic computing systems and data
processing techniques to the entire field of synoptic meteorology, including
both short period and extended period forecasting.
The NMC is composed of three branches, the National Weather Analysis
Center, the Extended Forecast Section, and the Joint Numerical Weather
Prediction Unit—all of which now have the use of analyses prepared by
high-speed electronic computers.
A major improvement in the preparation of 5-day analyses and forecasts
has resulted from the use of high-speed electronic computers. Automatic
printing and analysis of 5-day data by machine techniques have permitted
better use of scientific manpower devoted to plotting and map analysis
work.
The broad weather analyses and facsimile map preparation operations
in the Bureau’s National Weather Analysis Center (NAWAC) have been
furthered by the application of numerical and electronic computer methods.
The past year has seen a gradual and progressive use of numerically com­
puted prognostic charts in the weather services, and the trend for a further
accelerated use of numerical methods now seems to be well established.
The entire professional staff of NAWAC at Suitland was given a thorough
familiarization coarse on automatic data processing procedures.

Hydrological Services

The Bureau’s modernized mainstream flood-forecasting program was
extended to cover important coastal areas sometimes affected by hurricaneinduced rains. The River Forecast Center at Augusta, Ga., took over
flood forecast responsibility for the Macon, Montgomery, and Atlanta
River districts. The River Forecast Center at Hartford, Conn., took over
forecast responsibility for the Burlington and Portland River districts.
Headwater and flash-flood warning systems were added in Oklahoma,
Iowa, Pennsylvania, Virginia, West Virginia, and Kentucky. These new

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facilities provided excellent warnings during the year and resulted in
noticeable savings of life and property during the floods of May 1958.
A working model of the newly developed mechanical analog—designed
to permit faster streamflow routing in the preparation of flood forecasts—is
being tested by several River Forecast Centers.
The Bureau continued to supply detailed estimates of hurricane poten­
tials to the Corps of Engineers for use in the design of storm-tide protective
works along the Atlantic and Gulf coasts. Plans were drafted for model
community warning and evacuation procedures.
Two hundred wedge-type plastic rain gages were installed at key observing
points to increase the density of available rainfall reports for use in flood
and hurricane forecasting. Sixty newly designed visual rain gages that
permit quick visual inspection by the observer while he remains indoors
during heavy rainfall were also installed at points where frequent reports of
rainfall amounts would be helpful in providing accurate flash flood warnings.
The 10 new completely automatic river gages installed brought the total
to 80 such installations in the United States. This equipment makes river
readings available by telephone and eliminates the need for human obser­
vation of river stages at frequent intervals during the day and night.

Climatological Services

The Weather Bureau’s National Weather Records Center at Asheville,
N. C., was designated as “World Data Center” for the collection of archives
for the IGY.
The remarkable FOSDIC (Film Optical Sensing Device for Input to
Computer) and the FOSDIC filmer, designed in cooperation with the
Bureau of Standards to convert regular punchcards to 16 mm. microfilm
at the rate of 420 cards a minute, has been placed in operation at the
National Weather Records Center. The FOSDIC reader recovers in­
formation from the film for input to computers at the rate of 32,000 char­
acters a minute.
At the request of the Department of Agriculture, the Office of Climatology
provided a continuing climatological assessment of drought severity.
Area and State climatologists of the Bureau have been cooperating with
groups of Agricultural Experiment Stations to develop and appraise the
relationships between weather and climate with crop distribution and
production.

Cooperation With Other Agencies

The increasing use of nuclear energy has required Bureau research and
meteorological support of current activities of the Atomic Energy Com­
mission. The research-operational units at the Nevada Test Site and at
the National Reactor Testing Station and the Shippingport Atomic Power
Station have been provided with Bureau observations and forecasts.

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57

Studies are being made as to the effects of meteorological conditions on
the travel and dispersion of radioactivity for both land-based and shipborne
reactors.
The Bureau provided forecasts for operational fallout during the Pacific
nuclear test series as well as during tests made in Nevada. Research work
regarding fallout predictions was continued.
The Bureau supported Public Health Service studies of community air
pollution and completed a pilot community survey in Louisville, Ky.
This involved intensive meteorological measurements and their correlation
with air quality measurements. Studies of meteorological situations con­
ducive to high pollution levels were completed, and an experimental
pollution forecast program was established.
The Bureau expanded its support program to Federal Civil Defense
Administration activities by broad participation in the Federal Fallout
Monitoring Network. Sufficient instruments had been received by June 30,
1958, to equip 70 Bureau stations to measure fallout radiation levels in the
event of nuclear attack on the United States.
Plans were made to deliver radiological survey meters and dosimeters
at approximately 230 additional Bureau observatories located throughout
the Nation.
The Weather Bureau continued its cooperative program with the De­
partment of Agriculture’s Forest Service in investigations of the basic
properties of thunderstorms and lightning-caused forest fires. Project
“Sky Fire” at Missoula, Mont., seeks to provide further information on
the electric field of thunderstorms and to obtain data concerning the
possible effects of cloud modification on the reduction of fire hazards by
lightning in forested areas of the Far West.

Future Plans

In recent years there have been several important advances in the
development of modern meteorological equipment. These advances
concern weather-search radar, storm-spotting satellites, cloud photography
rockets, globe-circling balloons, ocean weather buoys, television weather
briefing, high-speed telecommunication devices for the exchange of
weather data, automatic weather observers, electronic weather dataprocessing machines, electronic computers to forecast the weather, and
many other new weather observing, recording, or analyzing devices.
Further light on hurricane formation, structure, and movement has
resulted from data gathered in the past 3 years by the National Hurricane
Research Project through aircraft reconnaissance, expanded observational
networks, radar photography, and intensified storm surge research.
Bureau scientists expect that continued research will unlock many of the
remaining secrets of hurricane formation and behavior and that more pre­
cise forecasting of storm intensity and movement will be forthcoming.

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This additional knowledge of the detailed physical structure of hurricanes
also will permit more satisfactory evaluations of proposals for hurricane
modification.
The results obtained from the use of weather search radar—including
the experimental use of Doppler radar during the past tornado season—
have shown that radar will be one of the most important observing tools
ever made available to the storm forecaster.
Plans are being made to meet the new and specialized service demands
of jet aircraft operations. The Bureau’s comprehensive plan entitled
“Design for a Modern National Aviation Weather System” offers a
detailed programing guide for the establishment of meteorological services
and facilities designed to meet the growing and rapidly changing require­
ments of the aviation services.
New applications of modern high-speed electronic computers and
data-processing methods offer great promise for improved weather fore­
casts covering advanced periods as far ahead as 1 month.

Office of the Assistant Secretary
for Domestic Affairs
The Assistant Secretary of Commerce for Domestic Affairs is the Secre­
tary’s principal assistant in fostering, promoting, and developing the
domestic industry and commerce of the United States. Under the
Secretary, his function is to assure that the domestic program and activities
of the Department result in the fullest contribution to a sound economy.
The Assistant Secretary of Commerce for Domestic Affairs serves the
business community in gaining proper representation of business views,
opinions, and problems in governmental affairs. Stability and growth
of the Nation are promoted through the maintenance of a proper economic
environment in which free competitive enterprise may grow and prosper.
These views and opinions play an important part in the policymaking
and guidance of the Business and Defense Services Administration, Office
of Field Services, Office of Technical Services, Office of Area Development,
Office of Business Economics, and Bureau of the Census.

OFFICE OF AREA DEVELOPMENT
As a focal point in the Federal Government where communities can get
help on economic development problems, the Office of Area Development
counsels on problems of industrial development financing, techniques for
organizing community action programs, industrial parks, and location re­

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59

quirements of growth industries. It prepares and distributes technical
data and publications dealing with various aspects of industrial develop­
ment; supplies information on Federal programs that would strengthen
local economies, and makes available data and research results of the vari­
ous governmental departments.

State and Community Counseling

Counseling to community, State, and regional development organiza­
tions continued at a high rate in fiscal 1958. Technical assistance concerned
with industrial and area development problems was requested and supplied
to 701 communities throughout the 48 States, about 50 percent of the re­
quests coming from labor-surplus communities. The requests involved
counseling on how to develop new industries as a means of diversifying local
economies, guidance in creating new employment opportunities in lowincome and exhausted mining areas, and industrial and area development
assistance to labor-surplus communities.
The office acknowledged an increasing number of requests for staff advice
within individual communities. Staff members, usually accompanied by
officials of the State development agency, met with chambers of commerce,
industrial development committees, regional groups, and many others to ex­
plain development techniques which have been successfully used in various
parts of the country. Usually these conferences resulted in an informal re­
port which outlined actions the communities could take to develop their
industrial potentials.
Participation in the rural development program of the Department of
Agriculture was continued. The special technical assistance materials de­
veloped in the Office were used to help rural communities identify their un­
developed commercial, recreational, and industrial potentialities. The
Office continued to bring to the attention of industry the special advantages
available in many local industrial efforts.
The Ninth Annual Washington Conference was held by the Office to
bring together officers of the State development agencies with officials of
Federal programs that are linked to State development and growth. These
meetings provided an opportunity for frank discussion and exchange of
ideas between important public officials and for informing officers of Federal
actions within the States.

Industrial Location and Site Development Counseling

OAD serves also as a central point within the Federal establishment
where manufacturers, community development groups, and others can
obtain technical and advisory services on plant location and site develop­
ment problems. These services include: Advice on how to plan and conduct
industrial site surveys; an informational library of locational data on regions,
States, and labor surplus communities; a catalog of Federal data useful in

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plant location analyses; advice to manufacturers on the security and defense
aspects of plant locations; and advice on industrial zoning problems and on
the development of planned industrial parks.
The security and defense aspects of its industrial location counseling
were carried out under an assignment to OAD by the Office of Defense
Mobilization. In connection with this program, data compiled by an
interagency committee were used as basic reference criteria, thus making it
possible for manufacturers to get in one place the latest thinking on the
security factor of plant location.
On all phases of industrial location and plant site development, the Office
provided assistance and guidance to over 400 individual companies,
governmental agencies, and development organizations. Staff members
met frequently during the year with regional and national organizations
to discuss trends and techniques in plant location work. The Office also
prepared a number of releases, useful to both manufacturers and commu­
nities, on successful experiences in plant site selection.

Technical Publications

The industrial-location trend studies initiated the previous year were
completed and now give supporting data for the community counseling
program of the Office to meet direct inquiries from community and in­
dustrial leaders. The series features reports on growth rates between
1947 and 1954 for the chief expanding-industry categories and some in­
dividual product classes, classified according to regional, State, metropoli­
tan, and nonmetropolitan areas. A new series of publications on the loca­
tion of manufacturing plants arranged by kind, size, and location was
initiated and scheduled for publication in fiscal 1959.
The increasing interest in local area and industrial development was
reflected by the growing popularity of other publications of the Office.
Many communities found ideas in the new booklet Your Community Can
Profit From the Tourist Business. The Office, with the help of the State
planning and development agencies, also compiled for the use of the Con­
gress a list of local development corporations having available capital for
investment in new enterprises and industrial plants.
In line with its continuing services to State and local groups, the Office
helped in the local sponsorship of “New Products, New Methods, and New
Patents” exhibits.
BUSINESS A N D DEFENSE SERVICES A D M IN IS T R A T IO N

The Business and Defense Services Administration at the close of the 1958
fiscal year consisted of the Office of the Administrator, 24 industry divisions,
and the Offices of Technical Services, Field Services, Industrial Mobiliza­
tion, Distribution, and Construction Statistics.

A N N U A L R E PO R T

OF T H E

SE C R ET A R Y O F CO M M ER C E

61

The normal basic functions of the BDSA are fourfold:

To foster and promote domestic industrial production and distribution—generally, to
promote maximum production, employment, and purchasing power within the domestic
economy.
To serve as a focal point for commercial and industrial firms to seek information
and advice as well as a place where they may express their points of view on matters
of national concern, such as import impact, taxes, credit, inflation, costs, shortages,
surpluses, and many related subjects of an economic nature.
To support national defense programs.
To engage in nonmilitary defense mobilization planning and the development of
programs to meet all emergencies.

In a period of fluctuations in domestic production and distribution, of
international tensions with the Soviet bloc, and of economic competition
with the Soviets in neutral uncommitted countries, BDSA is in a position
to advise other Government agencies and the President on the strengths
and weaknesses of our industrial and commercial economy.

Operations and Accomplishments

In a wide range of business and industry areas, BDSA issued a series of
economic and technical publications and carried on domestic and world
trade and marketing studies and market impact studies of proposed sales
of Federal surplus property. It also provided advice and recommendations
to other Government agencies on their activities which affect business
stability and markets; cooperated with the Department of Defense in
endeavoring to lessen the impact of domestic surplus military property;
and responded to extensive and widely varied inquiries from business
firms for information, advice, and consultation.
In response to Congressional requests BDSA prepared two special reports:
Pulp, Paper, and Board Supply Demand, dated June 9, 1958 (supplemental
study to the June 7, 1957, basic report), presenting a complete reappraisal
of the world newsprint situation through 1960; and Supplemental Report on
Iron andSteel Scrap, dated February 21, 1958 (supplemental to the January 31,
1957, report on Iron and Steel Scrap), confirming the tentative conclusion
in the earlier report that under mobilization conditions the total future
scrap supply would be adequate, though there could be shortages of some
higher grades. This report completed the study requested by Congress
and presented additional information regarding the generation of copper
and aluminum scrap. The two scrap reports fill a need long felt by both
Government and industry for data on an important aspect of the overall
scrap situation.
The Office of Industrial Mobilization, with the assistance of the industry
divisions, continued its current activities in support of national defense
programs and in executing BDSA’s nonmilitary defense mobilization
responsibilities.
Noteworthy progress was made in the Executive Reserve phase of the
industrial defense programs. This activity is designed to recruit, train,

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and assign men who, in the event of an emergency, would constitute the
nucleus of any future defense production agency. During fiscal 1958 the
authorized complement of this body was increased to 1,500, of which 700
were formally designated and 185 more were being processed. The first
National Defense Executive Reserve Conference, held in November 1957,
was sponsored jointly by the Secretary of Commerce and the Director,
Office of Defense Mobilization, and participated in by the President, the
Vice President, the Secretaries of Defense, State, and Commerce, Director
of the Bureau of the Budget, the Chief of Staff of the U. S. Army, and the
Selective Service Director. Over 400 BDSA Executive Reservists attended.
As the year closed, plans were going forward to complete the roster and to
assign fully trained Reservists to the eight geographical regions of the Office
of Civil and Defense Mobilization to cover production and distribution
functions.
Marketing and distribution services are performed by the Office of Dis­
tribution, which serves as a central point within the Department for the
distributive industries. This Office works closely with trade associations
and professional groups serving those engaged in the distribution of goods
and services. It cooperates with other units of BDSA, and other agencies
of the Government in stimulating and promoting the development of a more
effective and efficient system of distribution and improving the quality and
availability of statistics and data of value to business and industry for scien­
tific marketing.
The Office maintains a specialized distribution library as a support for
research programs and other activities. In order to stimulate more wide­
spread and effective use of market information, the Office issues the monthly
Distribution Data Guide, which lists current basic Government and nonGovernment materials of interest in the field of distribution.
The Office discontinued publication of “Establishing and Operating”
manuals and Business Service Bulletins, both of which functions were trans­
ferred to the Small Business Administration. Concurrently, program
emphasis was shifted to an increase in basic distribution research and an
expansion of activities in the dissemination of marketing data developed
by Federal agencies. A major study on marketing in the United States,
based largely on Government data was under way with publication planned
for fiscal 1959. This study was designed to assist American manufacturers
and distributors in selling in the domestic market and to assist foreign
manufacturers in their trade with the United States.
Considerable time was directed to the development of methods of measur­
ing inventories of survival items at the retail and wholesale levels.
In August 1957 the Office established a cooperative program with the
European Productivity Agency for the planning and execution of training
programs in the United States for marketing consultants, trade association
executives, and others interested in improving distribution methods within
EPA member countries based on observations of effective marketing tech­

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63

niques used in the United States. During the fiscal year 3 missions in­
cluding 55 individuals from 11 EPA countries participated in this program.
In a subsequent evaluation conference held in Copenhagen, participants
affirmed their appraisal of the significant value of this type of training and
recommended that it be extended and expanded. At present it is antici­
pated that this program will extend into fiscal 1960.
The Office participated in the planning and execution of the President’s
Conference on Technical and Distribution Research held in September
1957 and later assisted regional and local groups in the development and
conduct of area conferences dealing with the same subject.
OFFICE OF FIELD SERVICES

In carrying out its responsibility to serve business, the Department main­
tains 33 field offices to provide local points of contact for the services and
facilities developed to promote commerce and industry. Representing the
BDSA, Office of Business Economics, Bureau of Foreign Commerce, and
Office of Area Development, the field offices executed the varied programs
of these units in the broad field of both domestic and foreign commerce.
In addition they made available the statistical output of the Bureau of the
Census and acted as the official sales agencies of the Superintendent of
Documents.
The added emphasis placed by American businessmen on an analysis of
their markets and distribution patterns resulted in a greatly increased de­
mand for basic material published by the Department as well as requests for
the counseling services of specialized field office personnel. Utilizing the
services afforded by the field offices were manufacturers, wholesalers, re­
tailers, trade associations and chambers of commerce, research and adver­
tising agencies, publishers, and foreign traders.
Another important development was the increased utilization of the re­
ports and services of the Office of Technical Services for technological, sci­
entific, and engineering research. A greater volume of requests for this type
information was handled than in any previous year, an indication of the im­
portance business places on research results already in existence.
More firms than ever before sought guidance and assistance on Govern­
ment contracts. Utilizing the information published daily by the Office of
Field Services in the Synopsis of U. S. Government Proposed Procurement, Sales
and Contract Awards, manufacturers, producers, the construction industry,
and technical research groups were aided in participating in the expanded
defense procurement program.
The field offices continued the practical assistance required by those en­
gaged in foreign trade to keep informed on changing economic conditions
and markets throughout the world. Great interest was shown in the de­
velopment of the European Common Market, trade and investment oppor­
tunities, foreign licensing arrangements, tariff and exchange problems, and
export control. The active participation of an increased number of For­

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ANNUAL REPORT OF THE SECRETARY OF COMMERCE

eign Service officers on home leave in trade conferences set up by the field
offices accomplished excellent results in providing American businessmen
firsthand information on current conditions in many of our important
foreign markets.
The continuation of the cooperative arrangements with nearly 700 cham­
bers of commerce and similar organizations provided additional outlets for
the services of the Department in practically every important commercial or
industrial community throughout the country. This joint cooperative en­
terprise has been of great value to the business public as well as to the
Department.
OFFICE OF TECHNICAL SERVICES

This Office collects technical reports of Government-sponsored research,
reproduces them, and sells them at the cost of printing and handling to
scientific and industrial laboratories and business enterprises. It also helps
industries develop and agree upon commercial standards for their products
as to quality, testing, and ratings; serves as the point of contact with trade
associations and other nonprofit trade groups to encourage their cooperation
with the Department and to obtain recommendations with respect to the
domestic programs and activities of the Department; and brings to the
attention of American inventors the technical problems of the national
defense agencies.

Technical Information

The volume of Government-sponsored research exceeds $3 billion a year,
representing a major share of all research conducted in the Nation. Most
of this research is done for national defense. However, many technical
reports growing out of research for the Army, Navy, Air Force, Atomic
Energy Commission, and other agencies are of direct interest to American
industry, for they describe new developments in such fields as metals,
chemicals, plastics, electronics, textiles, ceramics, aeronautics, and nuclear
energy. Many businesses—large, medium, and small—-have obtained
reports of Government-sponsored research from OTS which they have used
in the development of new products and processes and in making important
technological improvements.
Use of these reports by American science and industry has continued to
increase. In the 1958 fiscal year approximately 30,000 more copies of
reports were sold than during the previous year; approximately 270,000
reports were sold for $388,000, which covers the costs of reproducing and
handling the reports. Yearly increases in sales grow out of expanded
acquisition efforts and wider publicity regarding these reports in the business
and trade press and through other media. They represent a wider use of
these reports by all types of industries.
During the year 7,486 new reports were added to the OTS collection
and made available to the public. This includes 4,280 reports acquired

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

65

from the Atomic Energy Commission which can be used by those com­
panies engaged in development of the new nuclear industry. Over 48,900
inquiries were answered regarding technical reports in the OTS collection.
To make OTS reports more readily available for reference by the Nation’s
scientists and engineers, four more depositaries were established. These
are at the University of Cincinnati; Detroit Public Library; John Crerar
Library, Chicago; and Linda Hall, Kansas City, Mo. The three pre­
viously established are at the New York Public Library, Georgia Tech
Library, and Carnegie Library in Pittsburgh.
The OTS staff of technologists continued to answer technical inquiries
from American industry as well as to provide, under contract, technical
information to the international Cooperation Administration for use in
its program of assistance to underdeveloped countries.

Commercial Standards

The Commodity Standards Division printed 11 Commercial Standards
and 4 Simplified Practice Recommendations and reprinted 8 others. Work
is in various stages on the revision of 19 Commercial Standards and 9
Simplified Practice Recommendations and on development of 23 new
Commercial Standards and 6 Simplified Practice Recommendations. The
most active fields now are plastics, building products, and containers and
packaging.
The program on standards for women’s patterns and apparel has been
successfully completed after 5 years of work. This standard will have
far-reaching effect on all apparel buying in that the dress size is also used
for garments other than dresses. It provides the means for fitting the
maximum number of women with good-fitting clothes without the need
for repeated try-ons and expensive alterations and cuts down on the number
of returns of merchandise. Mail order houses have been using it successfully
for several years.
Another very widely used standard on power cranes and shovels is now
in printed form. This standard is used in other countries as well as in the
United States.

Trade Associations

Since 1913 the Trade Association Division has been the Government
center of information on all types of nonprofit organizations of business
firms. Its directory of National Trade Associations: 1956 has sold 25,000
copies. The Department has long assisted in the development of all types
of mutual-aid endeavors by businessmen. The 2,000 associations listed in
the 1956 directory is almost double the number of those in existence
20 years ago.
Continuing studies of associations, national and local, are being made in
cooperation with the American Society of Association Executives and other
federations.

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National Inventors Council

The Council, continuing in its advisory capacity to inventors and the
military establishment, expanded its program to enlist the Nation’s creative
ability on national defense problems. Through a more direct working
relationship with the Armed Services, the Council assembled and published
its largest compilation of problems to stimulate public interest in current
military needs. Industrial firms and creative individuals responded with an
increased flow of new and promising ideas, many of which are being inte­
grated into military research and development programs.

Plans for the Future

BDSA anticipates increased requirements in its various activities in fiscal
1959 and beyond.
OTS has added a new Foreign Information Center to its Technology and
Technical Information Divisions, and plans to issue 10,500 new technical
reports from United States sources, and 7,000 titles and 40,000 abstracts
and translations in fiscal 1959. Approximately 90 percent of the latter will
be translations of Russian scientific articles. The National Inventors
Council estimates that approximately 12,500 inventive ideas will be evalu­
ated and that about 3 percent of these will be submitted to the military for
consideration. The Commodity Standards Division, in connection with its
work on 51 commercial standards and 33 simplified practices recommenda­
tions, expects next year to receive some 7,800 inquiries. The Office of
Field Services—working in close cooperation in the field with OTS and
other offices of BDSA, the Office of Business Economics, and the Bureau of
Foreign Commerce—will reflect in its activities the work of those agencies
as well as business economic conditions in their various locations.
The Office of Industrial Mobilization will continue its accelerated activ­
ities. The formation of the new, consolidated Office of Civil and Defense
Mobilization, and the need for emergency planning on a more decentralized
basis reemphasized the importance of the programs of this Office, particu­
larly those relating to the development of emergency production controls,
extensive survival-items surveys, other statistical studies, and participation
in the training of the Executive Reserve for use during emergency periods
and in Operation Alert programs.
The President’s Conference on Technical and Distribution Research
of September 1957 indicated a need for increased emphasis and attention
to the development and utilization of marketing information of all kinds.
The business recession early in 1958 also highlighted the importance of
marketing and distribution in sustaining production and employment.
In the light of these developments, the Office of Distribution was reorganized
early in fiscal 1959 with a new Distribution Research Division to undertake
basic research projects designed to provide new market information, which
will assist the business community in the development of a more effective

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

67

and efficient distribution system. Greater emphasis will also be placed on
the dissemination of current market data available from Government
agencies in order that this national asset may be more widely used.
The 24 Industry Divisions of BDSA and related staff offices anticipated
stepped-up requirements in all three of their principal functions. Within
the limits of their ability they will be required to put full emphasis upon
the economic analysis work in all fields of the domestic economy; upon the
Government-business liaison functions; and upon their contributions to the
nonmilitary defense mobilization program. To meet this situation the
group has reprogramed and reorganized the activities consistent with the
new requirements.

OFFICE OF BUSINESS ECONOMICS
The Office of Business Economics is basically engaged in economic analy­
sis, utilizing for this purpose primarily the national income and product
data which it originates. These national income accounts provide the
framework for most of the major economic research projects that are directed
by Government, by business firms, and by economic institutions, and
aimed at furthering understanding of the workings of the Nation’s economy.
OBE carries the major share of responsibility for general economic analysis
within the United States Department of Commerce.
OBE’s national income accounts provide a comprehensive factual sum­
mary of today’s complex economy, in much the same way that business
accounts summarize the operations of a private company. They trace the
flow of production from basic resources to finished products, and the flow
of goods into consumption and capital equipment. They detail the types,
industrial sources and geographical distribution of income, as well as its
use for taxes, consumption, and savings. As an integrated body of data,
they are essential to studies relating to the flow of goods and services through­
out the national economy, since they form the basis for the appraisal of
present and potential markets.
The work of OBE in this field was reviewed last year by a committee
established at the request of the Bureau of the Budget by the National
Bureau of Economic Research, which prefaced its report with a statement
that such national accounts have become “one of the chief tools for the
formulation of Government economic policy and of business policy.” In
recommending extension of the work developed by OBE since its inception
by Senate resolution in 1932, the report commented that “market analysis
as we know it today is hardly possible without national accounting data.”
Included in the national income accounts, as part of the data underlying
calculation of the gross national product, is OBE’s compilation of data on
the balance of international payments of the United States, carried on
since 1922. This material on the Nation’s international transactions con­
stitutes a complete and systematic account of all types of economic dealings

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ANNUAL REPORT OF THE SECRETARY OF COMMERCE

between the United States and foreign countries, including merchandise
trade, purchases or sales of services such as transportation and tourism,
private foreign investments and their earnings, private remittances, the
United States Government’s foreign expenditures and aid programs, and
changes in the monetary reserves of foreign countries. The work of OBE
in this field of economic analysis provides a basic factual framework used
by Government and business in forming their foreign economic policies.
The publication and distribution of OBE’s economic intelligence is
effected through its monthly publication, the Survey of Cwrent Business,
which is the most widely circulated economic periodical published by the
Department of Commerce. Each issue contains an appraisal of recent
developments as part of the 24-page section analyzing particular phases of
economic behavior, together with 40 additional pages devoted to the con­
secutive presentation of approximately 2,600 key business indicators. The
latter are kept up to date between monthly issues by separate weekly
supplements.
From its wealth of data, OBE regularly derives measures of personal in­
come, consumer expenditures, inventory movements and investment
trends—to cite only a few of the analytical tools produced—for prompt
distribution, in the form of releases under the serial title of Business News
Reports, to newspapers and business publications. At least once each year
major supplements to the Survey are published, as for example National In­
come and Personal Income by States Since 1929, which represent the results of
several previous years’ work.

Accomplishments in Fiscal 1958

The period from July 1957 through June 1958 encompassed both the
peak of a 3-year rise in business and a subsequent sharp decline. As the
alltime high was reached in the third quarter of calendar 1957, with gross
national product at an annual rate of $446 billion, concern that a turning
point had been reached heightened dependence upon OBE’s facts and
figures. The downward trend which followed brought increased specula­
tion as to the dimensions and duration of the decline in progress. In some
degree as a reflection of this change in the economy’s direction of movement,
the number of paid subscriptions to the monthly Survey of Current Business
increased substantially.
As part of its policy of prompt publication of data so as to make informa­
tion widely available rather than the subject of special requests, OBE
distributed a 344-page Business Statistics supplement to the Survey in
September 1957. Here was presented a comprehensive array of facts
covering virtually every phase of the American economy since 1929, with
descriptive material explaining the nature and utility of most of the basic
business statistics in current use. Used in conjunction with the latest issue
of the magazine itself, this volume provides each month’s figure for the

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

69

past 5 years, together with monthly averages covering more than 20 prior
years, for each of several thousand business barometers.
The task of incorporating the results of the 1954 Censuses of Business
and Manufactures into the national accounts was completed last year with
the issuance of revised income and output data. The pace of income and
product expansion indicated by the previous estimates for 1955-57 was
substantially confirmed; the revisions serve to accentuate the picture of
strong economic recovery.
A full set of revised income and product data for the postwar period
will soon be made available in a comprehensive volume entitled U. S.
Income and Output, a forthcoming new major supplement to the Survey of
Current Business.
The results of a unique study of the effects of private United States in­
vestments in fostering economic development abroad, in facilitating the
flow of goods to the United States, and providing dollar-earning exports
for foreign countries were published in a volume entitled U. S. Investments in
the Latin American Economy. While the facts deal with Latin America—
where the book value of United States investments has grown from $3
billion in 1946 to over $7 billion—the findings as to the effects of United
States foreign investments have general application to other countries in
which our investments have been a stimulating factor. Issued as a handy
volume with over 100 charts in color, this study contains separate sections
on Argentina, Brazil, Chile, Colombia, Cuba, Mexico, Peru, Venezuela,
and Central America, as well as reviews of the development of such
industries as manufacturing, petroleum, mining and smelting, agriculture,
and public utilities. The first edition was exhausted shortly after
publication.
Another publication dealing with American transactions abroad was
completed by OBE last year and issued as the Balance of Payments statistical
supplement. Here in a single volume of nearly 200 pages is provided the
background for full understanding of the current data on the balance of
payments and the major types of international dealings that are regularly
reported in the Survey but for which historical data previously has been
available only from several separate publications. This publication
shows the total flow of funds and resources between the United States and
other parts of the world by years since 1919, and on a quarterly basis, by
geographical areas, since the end of World War II. United States Gov­
ernment grants and credits are presented for the whole of the postwar
period by programs and by recipient countries.
At the request of the Philadelphia District of the U. S. Army Corps of
Engineers, OBE prepared an intensive Economic Base Survey of the Dela­
ware River Basin, which was submitted in final form in June 1958. In
carrying out this project OBE undertook to analyze the economic charac­
teristics, developments and trends of the Delaware area and to present

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ANNUAL REPORT OP THE SECRETARY OF COMMERCE

projections of future growth both for the Nation and that section. As this
report presents OBE’s first comprehensive regional measures for areas
smaller than States, it is expected to be of wide utility to all engaged in the
construction of regional gauges of economic trends. The findings will be­
come a part of an extensive study of water resources of the Delaware River
Basin to be submitted by the Army Engineers to the Congress.
The foregoing contributions were made in addition to the preparation of
the contents of 12 monthly issues of the Survey of Current Business, with its
accompanying weekly Business Statistics supplements. A complete record
of the contents of the magazine during the past fiscal year will be found on
the back covers of the December 1957 and June 1958 issues.
Notable among the articles published was one entitled “Analysis of LongTerm Markets—Measuring Product Trends and Potential” which appeared
in November 1957. Its value as a demonstration of techniques used in
market projections was widely recognized; when the available supply of
copies of the magazine was exhausted, the article was reprinted by the
Business and Defense Services Administration for further distribution to
business and industry.
In a year of extensive discussion of long-term extension of the Reciprocal
Trade Agreements Act, a January 1958 Survey article, “Foreign Trade and
Domestic Business,” provided a succinct summary of the importance of
merchandise imports and exports to the economy. After publication of the
standard February Annual Review Number, the results of the OBE-SEC
survey of anticipated 1958 business expenditures for new plant and equip­
ment were published in March in an article which for the first time gave the
dimensions of the downturn in such investment spending—from $37 billion
in 1957 to not much above $30 billion in 1958.
In the final quarter of the fiscal year, special articles were devoted to such
subjects as the size distribution of personal income, the extent of public and
private debt in the United States, and the amount spent by United States
residents on their travels abroad.
Throughout the year OBE gave regular service to the Council of Economic
Advisers in furnishing material for their studies and reports and assisted
in similar fashion the staff of the Congressional Joint Economic Committee.
Because of the importance of policy decisions affecting business, the number
of Government requests for timely data and analyses was unusually large
in this year of economic uncertainty.

Work in Process

Having received congressional approval and the initial funds with which
to launch the project, OBE will undertake in fiscal 1959 a 2-year survey of
American business investments in foreign countries. The information to
be collected will provide a complete measure of the size and composition
of our private direct foreign investments, which since the time of the last
OBE survey in 1950 have doubled in value.

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71

Going beyond the coverage of the previous survey, the new census of
American holdings abroad will collect information on our payments in
foreign countries for wages, taxes and materials, gross investment expendi­
tures and sources of financing, total output broken down to show separately
local sales and exports to the United States or other countries, import^
earnings and income remittances, and employment provided to United
States and local personnel. It is expected that these statistics will greatly
enhance understanding, here and abroad, of the constructive role of
United States private investments in foreign economic development, and
may thereby foster the freer flow of sound capital investment among nations.
The survey having been approved by the Bureau of the Budget and the
National Advisory Council on International Monetary and Financial
Problems, replies are mandatory under the Bretton Woods Agreements
Act.
To the extent possible OBE intends to extend its work on the national
income accounts along lines urgently advocated in the recent report of the
National Accounts Review Committee which the National Bureau of
Economic Research set up last year at the request of the Bureau of the
Budget. That report, with additional pertinent material, has been pub­
lished by the Congressional Joint Economic Committee in a hearings
volume entitled The National Economic Accounts of the United States—85th
Congress, 1st session, October 29 and 30, 1957.

BUREAU OF THE CENSUS
The Bureau of the Census is a fact-finding and statistical service agency.
Basic legislation authorizes the Bureau to conduct periodically the compre­
hensive censuses of population, housing, agriculture, irrigation, drainage,
business, manufactures, mineral industries, and State and local government
activity. Current surveys in most of these fields provide interim and special
information on the Nation’s economic and human resources. In addition,
the Bureau compiles and publishes the official statistics on the foreign trade
of the United States. It also performs services for other Government
agencies, such as data collection, tabulation, and sample design for surveys.
Major activities during fiscal 1958 included the publication of statistics
from the first national housing inventory and from the 1957 Census of
Governments, as well as issuance of the final volumes of the 1954 Censuses
of Agriculture, Business, Manufactures, and Mineral Industries. These
volumes incorporate and amplify the statistics released earlier in pre­
liminary form. The Bureau issued a special report presenting for the first
time statistics for all companies in the scope of the 1954 censuses of industry
and trade, both in terms of establishments and in terms of companies of
which the establishments are components.
Preparatory work for the eight major censuses to be taken during 1958—
60—business, manufactures, and mineral industries for 1958; agriculture,

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ANNUAL REPORT OF THE SECRETARY OF COMMERCE

irrigation, and drainage for 1959; and population and housing for 1960—•
included resolving problems of schedule content, design of schedules, and
pretests of schedules for some of these comprehensive undertakings.
The Bureau’s current statistics programs continued to provide an up-todate picture of the Nation’s economy, including figures on retail and whole­
sale trade, manufacturing, foreign trade, employment and unemployment,
the number and characteristics of the country’s nearly 175 million people,
as well as an inventory of their housing, and the finances of State and local
governments. The Bureau accomplished significant work in its program
of furnishing, on a reimbursable basis, various types of special data and
services to defense and other Government agencies and to research and
business groups.

Major Census Programs

C e n s u s o f G o v e r n m e n t s . —Detailed reports of the 1957 Census of Govern­
ments, the first since 1942, provided information on governmental units in
the United States, by type, for States and counties, with State figures on
number of special districts by function; on local governmental units in
metropolitan areas; and on employment and payroll, by type of govern­
ment and by function, annual rates of pay, retirement coverage, and other
aspects of government employment.
The Census of Governments also provided advance releases on real estate
assessments, property tax assessments, and, for the first time, figures on the
ratio of assessed values of transferred real property to sales prices, classified
by type of property. Advance statistics were also furnished on State and
local government indebtedness. Additional data were in final stages of
preparation on a broad range of topics in the basic fields of property values,
public employment, and public finances.
C e n s u s o f B u s i n e s s . —The final area and subject volumes of the 1954
Census of Business were issued to incorporate in permanent form the
statistics previously published in separate bulletins as the data became
available. In addition, the subject volume for retail trade provides informa­
tion not previously published in separate bulletins, on central administra­
tive offices, leased departments, drugstores, lumber and building materials
dealers, and vending machine operators. The service trades subject volume
includes statistics not previously published on advertising agencies, arma­
ture rewinding shops, coin-operated amusement device establishments,
automobile and truck rental, and central administrative offices.
C e n s u s o f M a n u f a c t u r e s . —The final volumes of the 1954 Census of
Manufactures, incorporating in permanent form the statistics previously
published in separate subject, industry, and area bulletins, were issued
during the year. In addition to the general statistics by industry and by
area, statistics are included on manufacturing activity in government
establishments, manufacturers’ inventories, horsepower of power equip­
ment, fuel and electric energy consumed and expenditures for new plant

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

73

and equipment, and industrial water use. A special report of the manu­
factures census, prepared at the request of the Subcommittee on Antitrust
and Monopoly of the Senate Judiciary Committee, provided figures on the
proportion of industry and commodity group totals accounted for by the
larger companies.
C e n s u s o f M i n e r a l I n d u s t r i e s . —The Bureau issued during the fiscal
year the final volumes of the 1954 Census of Mineral Industries, the first
since 1939. These volumes incorporate in permanent form the industry
and area statistics previously published in separate bulletins. The volumes
include historical statistics from the earliest minerals census, and figures
on size of establishments, type of organization and operation, power
equipment, and energy, water, and supplies used.
S p e c i a l R e p o r t s o f t h e 1954 C e n s u s e s . —The Bureau issued results of
a special study made for the first time of returns from the 1954 Censuses of
Business, Manufactures, and Mineral Industries. This report assembles
into company totals statistics ordinarily gathered and presented only in
terms of individual establishments. Entitled Company Statistics, the report
presents general statistics both in terms of establishments and in terms of
companies of which the establishments are components, for each of 122
industry categories developed especially for this study. Figures include
number of companies, number of establishments, employees, payroll, and
sales or receipts or value added by manufacture or mining. Capital
expenditures are shown for the manufacturing and mining group. For
multi-industry companies, employment figures are classified by the industry
of the company and cross-classified by the industry of each establishment
in the company.
A series of monographs based on the 1954 censuses of industry and trade
was in preparation, under the sponsorship of the Social Science Research
Council. Four of the monographs will relate to differential growth in manuturing by geographical areas, 1929-54; an analysis of the company
statistics of the 1954 censuses; concentration and mergers in the manufac­
turing industries; and an analysis of price-cost behavior in the census of
manufactures establishment data. A fifth monograph, in the exploratory
stage, will analyze the structure of the distributive trades.
C e n s u s o f A g r i c u l t u r e .—The Bureau completed early in the fiscal year
the series of special reports comprising the remaining volume of the 1954
Census of Agriculture. These special reports, seven of which were cooper­
ative efforts of the Bureau of the Census and the Department of Agriculture,
present statistics on multiple-unit operations, ranking agricultural counties,
farm-mortgage debt, and other subjects, and include also a graphic sum­
mary of agriculture in 1954, a report bringing together the available agri­
culture statistics from various Government sources on outlying areas and
the District of Columbia, and a report on methods and procedures of the
1954 census.

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P la n n in g f o r F u tu r e C ensuses .—The Bureau accomplished much
preparatory work during the fiscal year for the censuses which will cover
business, manufactures, and mineral industries for 1958, the 1959 Censuses of
Agriculture, Irrigation, and Drainage, and the 1960 Censuses of Population
and Housing. Experimental enumerations were held to test schedules and
procedures. The Bureau plans more extensive use of large-scale electronic
equipment in tabulation, new processing procedures replacing punchcards,
and a greater use of sampling to pro vide some of the information from the
forthcoming major censuses.

The Current Program

A g r ic u l t u r e .—The official cotton ginning statistics of the United States
were compiled and released at dates specified by law. Also issued were the
scheduled reports on cotton crop acreage, yield, and condition, in coopera­
tion with the Department of Agriculture. The two annual bulletins on
cotton production and distribution were issued on schedule.
B usiness .—The annual retail trade reports for 1956 and 1957 were issued,
providing figures on estimated sales, merchandise inventories, and accounts
receivable. The monthly retail trade reports continued to appear on
schedule, including the advance reports of retail sales published 10 days
after the close of each month. The monthly wholesale trade report pro­
vided figures on sales and inventories. The reports on stocks of selected
canned food items appeared promptly as of five reporting dates during the
marketing season. Results of the survey of green coffee inventories and
roastings were issued semiannually. The quarterly survey of reconditioned
steel barrels and drums was discontinued after the fourth quarter 1957.
F o reig n T r a d e .—The monthly and annual detailed reports and advance
summaries of exports, imports, and shipping, comprising the official United
States foreign trade statistics, appeared regularly during the year. A new
monthly report presenting statistics on imports of cotton manufactures
began appearing effective with July 1957 statistics. In addition, 267
special recurrent monthly reports and 87 special reports for specified
periods were prepared for individual subscribers on a cost basis.
G o vern m en ts .—The regular series of current reports on State and local
governments presented statistics on public finance in terms of revenues,
expenditures, tax collections by source, debt, and financial assets. Employ­
ment data, including figures on number of employees and amount of payroll
which are usually issued in current annual series, were presented for 1957
in reports of the 1957 Census of Governments.
H ousing .—The National Housing Inventory, final results of which were
issued during the year, represents a significant advance in the area of
housing market analysis. It is the first systematic measurement of the
housing supply during an intercensal period and the only such inventory
other than the two censuses of housing, conducted for 1940 and 1950. It
provides, for the Nation as a whole and for each of nine large metropolitan

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75

areas, figures on the number and characteristics of dwelling units in exist­
ence, as well as on the magnitude of change since 1950 through new con­
struction, conversion, and withdrawals. It brings up to date information
on financing of owner-occupied residential properties.
Statistics on housing compiled currently provide quarterly data on
vacancy rates and condition and characteristics of available housing
vacancies. From the same survey the Bureau also obtains current figures
on the proportion of households with television sets. Data on rental and
vacancy characterisics of housing for local areas are obtained from special
surveys conducted at the request and expense of the areas involved.
I n d u str y .—Release of the results of the 1956 annual survey of manufac­
tures, taken in 1957, showed a substantial gain in timing over the publica­
tion schedule of the previous survey. About 80 series of current Facts for
Industry reports continued to provide appropriate measures of productive
activity for selected manufactured products. This program was expanded,
mainly by funds provided by other agencies and private industry, to include
certain additional commodities.
P o pu l a t io n .— The current population survey, which interviews monthly
a scientifically selected sample of 35,000 households, continued to provide
measures of employment, unemployment, and other facts about the labor
force. It also provided figures on family and individual income and such
population characteristics as school enrollment and educational attainment,
marital and family status, mobility, and household size. The regular
program of current estimates of the size of the population continued to
provide monthly figures for the United States and annual estimates for
States. Annual estimates of the farm population and of the total population
by age, color, and sex were also prepared. A special report presented the
results of a survey of the sources and types of current population estimates
prepared by agencies in State governments and by official agencies in the
largest cities.

Defense and Other Special Work

The Bureau continued to act as the principal collecting and compiling
agency for the Business and Defense Services Administration. It also
provided services for the Office of Civil and Defense Mobilization, the
National Science Foundation, the Industry Evaluation Board, the De­
partment of Defense, the Tennessee Valley Authority, the Federal Trade
Commission, the Bureau of Labor Statistics, the Department of Agriculture,
the Bureau of Mines, the Department of Justice, and other agencies.
The Bureau has developed procedures and techniques for the National
Health Survey, which it began conducting on a continuing basis for the
Public Health Service, Department of Health, Education, and Welfare.
This survey of a sample of 45,000 households provides data on immuniza­
tion status, prevalence of certain diseases and ailments, and related health
facts.

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ANNUAL REPORT OF THE SECRETARY OF COMMERCE

Numerous special tabulations and compilations of other data from
census records were supplied at cost to other Government agencies, business
firms, trade associations, and individuals. At the request and expense of
the communities involved, the Bureau conducted special censuses of 350
local areas, about the same number as the previous year.

International Statistics Programs

The Bureau increased its technical assistance to foreign governments
to improve their census and statistical services, under programs sponsored
by the Department of State, the International Cooperation Administration,
the United Nations, and the Population Council. A total of 320 foreign
census and statistical personnel representing 51 countries visited the Bureau
for brief periods and observed operations and methods. Fifty-eight foreign
technicians, representing 18 countries, spent 3 or more months receiving
intensive instruction in United States census methods.
Under the technical assistance program, 24 Bureau experts were assigned
as consultants to foreign governments. They supplied census and technical
guidance to Cuba, Honduras, Iran, Pakistan, Peru, the Philippines,
Uruguay, and Viet-Nam. The Bureau continued to collaborate with
other countries of the Western Hemisphere in planning for the 1960 Census
of the Americas.
The Foreign Manpower Research Office continued its studies and
analyses of international population and manpower.

Other Activities

S pe c ia l P u blica tio n s .—Six additional volumes in the 1950 Census
Monograph Series, prepared cooperatively with the Social Science Research
Council, were published during the year. These analytical studies were
Farm Housing; Residential Finance, 1950; Americans Children; The Changing
Population of the United States; The Fertility of American Women; and The
Older Population of the United States. Two additional monographs in prepara­
tion at the end of the year will bring the total of such 1950 Census studies
to 14.
Work was brought near completion on the new and expanded edition of
Historical Statistics of the United States, which will cover the period from
colonial days to the present. This work is also a cooperative effort with the
Social Science Research Council.
The 1957 edition of the Statistical Abstract of the United States was published
in August 1957, beating for the fourth consecutive year all past publication
records. The 1956 edition of County Business Patterns, presenting figures on
employment and payrolls for establishments covered by the old-age and
survivors insurance program, was being printed at year’s end.
Preliminary results of the 1957 travel survey, the first attempt to measure
systematically the extent of civilian travel, appeared early in the fiscal

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

77

year. This project was financed by the National Association of Travel
Organizations.
The Catalog of the United States Census Publications, with its annotated
listings and subject and geographical indexes to the contents of all Bureau
publications, continued to be a useful data-finding medium. Special
appendixes—for example, the consolidated list of publications of the 1954
Censuses of Agriculture, Business, Manufactures, and Mineral Industries
included in the 1957 annual issue—increased the usefulness of the catalog.
M ec h a n ic a l and T ec h n ic a l O p e r a t io n .—Negotiations were completed
for the installation of two advanced electronic computers at the Bureau in
the fall of 1958; and arrangements were made to acquire additional elec­
tronic computer capacity at two universities. Development of radically
new document reading equipment replacing punchcard techniques,
reached the point where firm plans can be made for substantial speed-up of
the processing of the 1960 censuses.
P erso na l C ensus R ec o r d s .—Applications received and processed for
personal information from census records to establish proof of age or
citizenship totaled 222,000, representing a 3 percent decrease from the
record of the previous year as demands for this service resulting from
changes in the Social Security Act leveled off.
P lans fo r D e c e n t r a l iz a t io n .—The eight major censuses to be launched
in the next 2 fiscal years will necessitate decentralization of activities to take
care of expanding operations and personnel. The Bureau has obtained
facilities in Parsons, Kans., to process returns of the 1959 Censuses of Agri­
culture, Irrigation, and Drainage. Similar arrangements have been made
in Jeffersonville, Ind., for the processing of the 1958 economic censuses
covering business, manufactures, and mineral industries. Some of the oper­
ations of the 1960 Censuses of Population and Housing will also be per­
formed in Jeffersonville. Plans were completed and space obtained in
Pittsburg, Kans., for the transfer, early in fiscal 1959, of the personal census
records activities.

Office of the Assistant Secretary
for International Affairs
The Assistant Secretary of Commerce for International Affairs acts as
principal adviser to the Secretary for the development and implementation
of international trade policies and in this connection participates in inter­
agency committees either as the Secretary’s alternate or as the Department
of Commerce representative. He also provides policy direction and guid­
ance to the Bureau of Foreign Commerce and the Office of International
Trade Fairs.

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BUREAU OF FOREIGN COMMERCE
The Bureau put new empahsis on its informational and advisory services
to business in carrying out its responsibilities to foster and promote the
foreign commerce of the United States. Standard publications were
analyzed and overhauled and new publications were tailored to fit current
needs of United States enterprise faced with stiffening competition in world
markets. A greater number of opportunities for United States business
abroad were more widely disseminated, consultative services were expanded,
and 3 years’ experience resulted in more effective operation of the Trade
Missions program.
Short-supply export controls were eased as output met foreign and
domestic demand, controls over exports to Poland were relaxed, and those
on strategic goods were tightened. The Bureau participated in interna­
tional negotiations for the reduction of barriers to trade, travel, and invest­
ment.

Direct Service to Business in Promoting Two-Way Trade

Publications issued by the Bureau are designed both to help United States
businessmen find, maintain, and expand markets and invest capital abroad
and to facilitate import trade. In fiscal 1958 the Bureau had two measures
by which to gage the success of its efforts in the publications field—one
was the extent of business demand for reports, as evidenced by sales volume
and inquiries received, and the other was a survey undertaken to assess the
value of information made available to the business community.
Paid subscriptions to Foreign Commerce Weekly rose by more than 18 percent
to 9,715. This magazine not only goes to firms and individuals interested
in international trade, travel, and investment but, along with reports in
the World Trade Information Service and other Bureau publications, is also
used extensively as source material by many private trade journals, trade
associations, and other media. During the year the Weekly published
about 2,800 economic and commercial news and feature stories on develop­
ments in foreign countries, and carried over 6,200 opportunities for export
and import business, licensing, and investment.
Both subscriptions and single-copy sales of economic, operational, and
statistical reports in the World Trade Information Service increased substantially
over the preceding year. A total of 245 WTIS reports was published giving
information on foreign markets, public utilities, business laws, taxation,
customs tariffs, and many other subjects.
Two new handbooks, Doing Business With Sweden and Doing Business With
France, were published and were well received.
A survey of business opinion was made to provide a sounder basis for
selection and preparation of commercial and economic information useful
to business. Evaluations of published material were obtained from approxi­

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79

mately 800 businessmen. In the coming year the Bureau expects to include
new material in, as well as reorganize and rearrange, several of its publica­
tions series for more direct use in market research.
To meet the growing demand for information to support market research
activities of American firms, the Bureau supplied more than 6,200 reports
on commodities and industries abroad, as compared with 4,000 similar
reports furnished last year.
The Bureau assisted United States firms in adjustment of foreign trade
transactions and in obtaining relief from import-export restrictions and
obstacles to the transmittal of remittances imposed by other countries.
It also protected United States industrial property rights abroad; and pro­
vided information on foreign patent and trademark regulations and develop­
ments of the European Common Market.
The type and quantity of trade inquiries received not only indicated a
growing number of businessmen looking to foreign markets to increase
sales but also demonstrated a new kind of export-mindedness. For ex­
ample, many inquiries covered geographic regions rather than individual
countries and touched on matters such as the opening of sales offices,
increasing the number of sales representatives, and participating in trade
fairs. Meeting the demand for more analytical information, the Bureau
prepared analyses covering short- and long-term market surveys, the effects
of new tariff schedules utilized by foreign countries, the significance of
changes in the volume and pattern of foreign trade, and the benefits or
obstacles involved in foreign licensing and exchange controls.
World Trade Directory Reports were furnished to American foreign
traders on nearly 20,000 individual businessmen and firms in foreign coun­
tries. More than 23,000 trade lists of foreign firms, classified by com­
modity, industry, or service organizations, were supplied to American
concerns seeking oversea trade connections.
A total of 829 trade lists of standard categories compiled by the United
States Foreign Service was supplemented by almost 3,000 special lists
prepared in the Bureau from foreign directories and other material at
hand to meet requests for information on oversea markets not covered by
standard trade lists.
Five United States cities were assisted in planning international trade
fairs for 1959. A pamphlet on U. S. Business Participation in Trade Fairs
Abroad was issued and 400 special articles were published in Foreign Com­
merce Weekly on foreign and United States trade fairs.
Meetings were held with foreign government officials on procedures for
establishing business contacts in developing import-export business for
American firms. Conferences were arranged for foreign groups and indi­
viduals covering specific phases of world trade or investment promotion.
Field Offices of the Department participated in these activities, which are
designed to promote trade and investment or to illustrate to some of the

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ANNUAL REPORT OF THE SECRETARY OP COMMERCE

newer countries, the trade and investment promotion techniques helpful
in expanding mutual trade relations.
About 400 United States business travelers were assisted in their itineraries
abroad through the cooperation of American embassies and consulates.

Promoting Private Investment Abroad

Factors affecting direct private investment abroad were discussed with an
increasing number of United States businessmen who sought assistance from
the Bureau. Guidance was given to potential and actual investors on
business organization, plant location, management contracts, licensing
agreements on patents, branch plant operations, engineering contracts,
technological assistance arrangements, ownership of land, and establishment
of subsidiaries.
A marked increase of interest in the investment program has been ob­
served. Inquiries from prospective American investors for information on
the investment climate in foreign countries and laws and procedures gov­
erning investments have shown a steady gain. Individual business firms
were counseled on the impact of the European Common Market on their
business with specific emphasis on investments in the area. A large volume
of investment inquiries was received regarding the newly independent
states and other territories of Africa.
Bureau officials held discussions with missions visiting the United States
and representatives of foreign governments stationed here interested in
bringing American capital and technical know-how to their countries.
These meetings have developed understanding of the basic conditions neces­
sary to attract potential American investors and have provided incentives
for action to stimulate private investment abroad.
Investment Opportunities Abroad, a special publication for United States
investors, reported 1,200 investment opportunities to more than 3,000 firms
and individuals requesting this service.
Investment handbooks were published on Peru and Nigeria, bringing to
17 the comprehensive country surveys providing basic information for po­
tential United States investors and traders.

Promotion of International Travel

From the standpoint of governmental policy in the field of international
travel, the highlight of the year was the President’s message to the Congress
transmitting a report on barriers to international travel and ways and
means of developing and facilitating such travel. Immediately thereafter,
a program was launched to carry out the recommendations set forth in the
report, including establishment of an Interdepartmental Travel Policy Com­
mittee at the Assistant Secretary’s level.
Close cooperation was maintained with private industry and govern­
mental agencies on matters affecting international travel.

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81

For the first time the Department was host to the International Union of
Official Travel Organizations, at its 12th International Conference and
Assembly in Washington, D. C., in November 1957. Representatives of
the official travel bureaus of 59 nations participated in the adoption of reso­
lutions bearing on development of travel throughout the world.
Contractual arrangements for a comprehensive tourism development sur­
vey to cover the Pacific Area and the free countries of East Asia were made
by the Bureau at the request of the International Cooperation Administra­
tion.
Two statistical reports on international travel were published, and a
third was prepared for publication.

Trade Missionsjor Promotion of Trade

The Bureau continued its program of organizing and training trade mis­
sions to go abroad as a part of the international trade fair program. Some
11 missions operated at different international trade fairs, bringing the
number of missions to a total of 50 since the inception of the program in
1954. The story of the American free enterprise system has now been
carried directly and personally to an estimated 170,000 foreign govern­
ment officials and businessmen in 37 countries. In addition to clarifying
misconceptions of United States foreign trade policy and private trade
practices, the missions reported a wide variety of trade and investment
opportunities which were transmitted to American businessmen through
the Bureau’s regular services.
More than 150 United States businessmen have participated in trade
missions up to this time.
Reports from the United States Foreign Service indicate increased effec­
tiveness of these missions as foreign businessmen and government officials
acquire a better understanding of the purposes of the program and the
advantages which accrue to them from consultations with successful Ameri­
can businessmen. Also, the findings of earlier missions pinpointed specific
problems inhibiting trade with the United States, permitting more exact
preparation of material to be used by mission members in their work over­
seas.
It is estimated that periodicals, reference books, and directories donated
by the private trade press for informational use at United States trade
information centers at international trade fairs now number some 50,000
copies. These commercial libraries continue to be an effective instrument
in promoting United States trade. They are given by the missions at the
conclusion of their visit to the United States Foreign Service, chambers of
commerce, and trade promotion centers in many countries.

Promoting Commerce Through Reduction of Barriers

The Bureau participated in United States efforts to reduce world trade
barriers. Although there was no general round of tariff negotiations during

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ANNUAL REPORT OF THE SECRETARY OF COMMERCE

the period, further progress was made in obtaining relaxation of quotas
and other quantitative restrictions on imports of United States goods.
At the 12th Session of the Contracting Parties to the General Agreement
on Tariffs and Trade (GATT) in Geneva, Switzerland, from October 17
to November 30, 1957, a series of consultations with 21 countries on quanti­
tative import restrictions imposed for balance of payments reasons was
concluded. This program was initiated in June 1957 as a result of a United
States proposal accepted by contracting parties at their previous session.
In addition to these efforts to remove trade restrictions, bilateral talks
were held with a number of other countries to achieve a less severe applica­
tion of certain restrictions which continue to be necessary for balance of
payments reasons. The results of these talks were generally good.
During the 12th Session of the GATT and at the Intersessional Com­
mittee meeting in April and May 1958, a thorough review of the European
Common Market Treaty was begun. Continued efforts through inter­
national forums such as the GATT will be necessary to assure that removal
of trade barriers among the six Common Market countries will not result
in new barriers against United States trade.
The business community was kept informed of changes in tariffs and other
trade restrictions, both here and abroad, and their views regarding the
effects of proposed revisions were given careful consideration.
The Bureau assisted in formulation of the foreign trade and private
investment position of the United States incident to negotiation of Friend­
ship, Commerce and Navigation treaties with Austria, Belgium, Muscat,
Pakistan, and Viet-Nam.

Special Operations for Trade Promotion

Plans are being carried out to bring to full complement the inter­
change of Bureau and Foreign Service officers in order that each category
may obtain the benefits of training in the other’s field.
Steps also have been taken and instructions issued to emphasize to Foreign
Service officers throughout the world the importance of commercial work.
Sections in the Foreign Service Manual dealing with trade promotion and
protection, the trade mission program, and methods of handling trade in­
quiries were revised to meet the changing needs of the business com­
munity.
Efforts are being made to expand the number of commercial-officer posi­
tions in the Foreign Service, and the Bureau is taking an active part in the
selection and transfer of officers performing economic and commercial work.
Training programs were conducted for over 300 Foreign Service officers,
and 41 programs were arranged for returning commercial officers to meet
with business groups in 17 field office cities.
In addition to carrying out its responsibilities, the Foreign-Trade Zones
Board authorized transfer of Foreign-Trade Zone No. 3 within the Port of

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

83

San Francisco and expansion of the New Orleans Zone. Regulations, zone
forms, and related material on foreign-trade zone operations were revised
and submitted for republication.
The British Token Import Plan administered by the Bureau brought a
heavy load of inquiries and applications from manufacturers and exporters
interested in the United Kingdom market. Exports under BTIP for the
first half of calendar 1958 continued at about the same rate as in the cor­
responding period of 1957. For the entire year of 1957, United States
goods exported under the plan totaled $3.8 million.

Control of Strategic and Short Supply Exports

As in the past the Bureau continued to administer the Export Control Act
of 1949, as amended. During the year this act was extended by the Con­
gress to June 30, 1960.
Quantitative export restrictions were removed from the few remaining
commodities subject to short supply controls—nickel, certain industrial
diamonds, rerolling rails, and poliomyelitis vaccine.
Denial of strategic goods to the European Soviet Bloc and the total em­
bargo against shipments to communist China, North Korea, and North
Viet-Nam continued unchanged. A rapid upsurge in the receipt of license
applications to export technical data to Eastern Europe was observed.
Applications considered contrary to the national interest were denied.
In August 1957 the Department announced relaxation and simplification
of export controls toward Poland to facilitate exports of commodities which
would benefit the Polish civilian economy. As a result of these changes and
other United States Government actions, our exports to Poland totaled
$109 million, as compared with exports of $5.5 million in the previous year.
Licenses totaling $22.4 million were issued for Eastern European destina­
tions other than Poland. Actual shipments to those destinations, however,
amounted to only $9.3 million in fiscal 1958.
Special controls were continued over exports of goods to the Middle East
which might contribute to a military buildup in that area.
New measures were adopted to extend export control regulations to
foreign excess property sold abroad by the Department of Defense. These
steps made it possible for the Bureau to take appropriate action against
individuals or firms attempting to sell to the Soviet bloc strategic goods
purchased under the Foreign Excess Property Disposal Program.

OFFICE OF INTERNATIONAL TRADE FAIRS
The Office of International Trade Fairs plans and produces trade fair
exhibits in an official program for international trade fair participation by
the United States. The program is authorized by the International Cul­
tural Exchange and Trade Fair Participation Act of 1956.

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ANNUAL REPORT OF THE SECRETARY OF COMMERCE

The Trade Fair Committee of the Operations Coordinating Board, con­
sisting of members from Departments of Commerce and State and the
United States Information Agency, supplies broad operating guidance.
The program has a twofold objective: To show the millions of people who
attend trade fairs all over the world how American ownership, management,
and labor work together under our free enterprise system; and to encourage
two-way trade between the United States and other countries.
In 3% years—December 1954 through June 1958—more than 40 million
people saw United States exhibits at 59 international trade fairs in 27
countries, on every continent except Australia. Begun as an emergency
measure by the President in August 1954 when Communist domination of
international trade fairs had become pronounced, the program has acquired
a positive position, with basic legislation to continue on a permanent basis.
It is now directed more and more toward participation at fairs in neutral,
uncommitted, and even Communist satellite countries, where the motives,
aspirations, and results of our free enterprise system are “showcased” in
well-planned, official United States exhibits. In many instances these
exhibits are in direct competition with those of Communist nations. De­
spite the fact that Communist participation is normally budgeted at 8 to 10
times United States expenditures, American exhibits have more than held
their own.

Salesmen of Free Enterprise

In fiscal 1958 OITF efforts to improve the quality of presentation and
pavilion space and to increase quantities of exhibit components and
items for display met with outstanding success. This was seen in the
exhibit at the 1957 Zagreb International Trade Fair in Yugoslavia, where a
fully stocked, typical American supermarket was the Fair’s stellar attraction.
More than a million persons streamed through its steel turnstiles. At the
Fair’s closing the supermarket equipment was bought by a Belgrade
concern.
At Salonika, Greece, in the 1957 Internationl Fair of Thessalonika, the
United States exhibit drew almost 700,000 visitors with possibly the most
popular Fair display—a live farm animal and poultry show which featured
advanced feeding and management techniques. At Bari, Italy, where
fruit preservation is a critical problem, the exhibit included production­
line equipment demonstrating frosted-food packaging of peaches. At Izmir,
Turkey, an exhibit of consumer goods chosen with a view to the interests of
predominantly rural population proved immensely popular. At Tunis,
Tunisia, an exhibit portraying “America at Home and at Work” drew
400,000 visitors in spite of bad weather. At Stockholm, an exhibit, with
“Automation at Work” its theme, was shown to almost 300,000 visitors.
At Casablanca, the United States exhibit, themed “Man Under the Sun,”

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

85

included an extensive display-demonstration of solar equipment for har­
nessing power of the sun to cook and heat, nuclear medical equipment,
and the actual conducting of reading and writing classes in a one-room
school equipped with the newest United States schoolroom equipment.
At Milan, Italy, Osaka, Japan, and Poznan, Poland, United States
exhibits again met with success and large attendance as they continued to
express the basic philosophy that “the products of free industry are the
best salesmen for free enterprise.”
The continued support of American business, with loans and gifts of
products, has helped stretch budget allocations by millions of dollars. To
date approximately 4,000 American business firms representing both large
and small members of our industrial economy and all types of manufac­
turing and products have contributed to United States exhibits. During
fiscal 1958 more than 600 firms and associations from 32 States were respon­
sible for more than SI K million in loans and gifts for the Government
exhibits.
In fiscal 1958, exhibits were shown in American pavilions of permanent
construction at Zagreb, Vienna, Poznan, Izmir, Stockholm, Milan, and
Bari and in demountable pavilions at Salonika, Tunis, Osaka, and Casa­
blanca.
Plans for 1959 include 11 central exhibits, 2 coordinated industry exhibits
with space rented by individual exhibitors, and 13 trade missions. Eleven
of the trade missions will be sent in conjunction with central United States
exhibits at trade fairs; two are scheduled in places where there will be no
central exhibit. In addition, two solo exhibits with trade missions present
are proposed for India.

Inland Waterways Corporation
The liquidation of the affairs of the Inland Waterways Corp., since the
sale of its physical facilities and operating rights as of June 30, 1953, has
proceeded essentially without incident.
Federal Barge Lines, Inc., the purchaser, which is a subsidiary of St.
Louis Shipbuilding and Steel Go., has met its payments on the principal
of $9 million through June 30, 1958, at which time the balance was
$6,956,000. The accrued interest paid in as of that date, at 3% percent,
was $1,530,900.

Appendix
ORGANIZATION AND PROGRAM CHRONOLOGY
1903— The Department of Commerce and Labor was created by the act of February
14 (32 Stat. 826; 5 U. S. C. 591). It consisted of the Office of the Secretary, eight
bureaus (Corporations, Labor, Census, Statistics, Fisheries, Navigation, Immi­
gration, and Standards), the Lighthouse Service, the Lighthouse Board, the
Coast and Geodetic Survey, and the Steamboat-Inspection Service. The Bureau
of Manufactures was authorized but not organized.
1904— I'iie Bureau of Manufactures was organized in February.
1906—The Bureau of Immigration was changed to the Bureau of Immigration and
Naturalization by the act of June 29 (34 Stat. 596).
1910—The Lighthouse Board was abolished and the Bureau of Lighthouses was estab­
lished within the Lighthouse Service by the act of June 17.
1912— The Children’s Bureau was created by the act of April 9 (37 Stat. 79). The
Bureau of Foreign and Domestic Commerce was created and the Bureaus of
Manufactures and Statistics were consolidated with the Bureau of Foreign
Commerce of the State Department, by the act of August 23 (37 Stat. 407).
1913— The Department of Labor was created by the act of March 4 (37 Stat. 737;
5 U. S. C. 616). To this Department were transferred the Bureau of Labor
(thereafter called the Children’s Bureau) and the Bureau of Immigration and
Naturalization. The remaining functions of the Department of Commerce
and Labor were assigned by this act to the Department of Commerce.
1915—The Bureau of Corporations was merged March 16 with the Federal Trade
Commission, an independent agency.
1925— The Patent Office was transferred from the Department of Interior to the De­
partment of Commerce by Executive order of April 1 in accordance with the
act of February 14, 1903 (32 Stat. 830).
The Bureau of Mines was transferred from the Department of Interior to the
Department of Commerce (Executive Order 4239 of June 4).
1926— A Federal policy on commercial aeronautics was established by the act of May
20 (44 Stat. 568), placing the administration of commercial aeronautics under
the Department of Commerce. The Aeronautics Branch was created within
the Department.
1927 Creation of the Federal Radio Commission (which after 1 year’s operation would
have some of its powers transferred to the Department of Commerce) was pro­
vided for by the act of February 23 (44 Stat. 1162).
The Radio Division of the Department of Commerce was created February 26
in the Office of the Secretary.
1931—The Federal Employment Stabilization Board was created February 10 to plan
and regulate construction of public works to assist in preventing unemployment
during business depressions (46 Stat. 1085).
1932 Consolidation of the Bureau of Navigation with the Steamboat Inspection Service
was provided for by the act of June 30 (47 Stat. 415), effective August 1, under
the name Bureau of Navigation and Steamboat Inspection.
87

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ANNUAL REPORT OF THE SECRETARY OF COMMERCE

The Radio Division was abolished and its functions and responsibilities were
transferred to the Federal Radio Commission (Executive Order 5892 ofJuly 20).
1933— Functions of the United States Shipping Board were transferred to the Depart­
ment of Commerce and the Board was abolished (Executive Order 6166 of
June 10).
The Business Advisory and Planning Council was organized June 26 under the
authority of the organic act by which the Department of Commerce was created
(37 Stat. 737; 5 U. S. C. 616).
The United States Shipping Board Bureau was established August 9 in the
Department.
1 9 3 4 — xhe Federal Employment Stabilization Board was abolished and the Federal
Employment Stabilization Office established in the Department of Commerce
(Executive Order 6623 of March 23).
Transfer of the Bureau of Mines to the Department of Interior was authorized
effective April 23 (Executive Order 6611 of February 22).
The Aeronautics Branch was renamed the Bureau of Air Commerce July 1.
1935— The name of the Business Advisory and Planning Council was changed to the
Business Advisory Council April 11.
1936— The Bureau of Navigation and Steamboat Inspection was renamed the Bureau
of Marine Inspection and Navigation May 27.
Transfer of the United States Shipping Board Bureau to the United States
Maritime Commission was authorized by the act of June 29 (49 Stat. 1985),
effective October 26.
The Bureau of Air Commerce assumed entire responsibility for airway traffic
control July 6.
1938— The Bureau of Air Commerce was transferred August 22 to the Civil Aeronautics
Authority, created under the Civil Aeronautics Act of 1938 (52 Stat. 973; 49
U. S. C. 401).
1 9 3 9 — The Federal Employment Stabilization Office was abolished and its functions
transferred July 1 to the National Resources Planning Board by section 4 of
Reorganization Plan No. I (53 Stat. 1423).
The Bureau of Lighthouses (Lighthouse Service) was transferred to the Depart­
ment of the Treasury by section 2 of Reorganization Plan No. II (53 Stat. 1431).
This Plan also transferred the Inland Waterways Corporation to the Department
of Commerce (sec. 6), the Bureau of Fisheries to the Department of the Interior
(sec. 4E), and the Foreign Commerce Service to the Department of State (sec. 1).
1940— -The Weather Bureau was transferred June 30 from the Department of Agriculture
to the Department of Commerce and the Civil Aeronautics Authority (including
the Office of the Administrator of Civil Aeronautics and the Air Safety Board)
from its independent status to the Department of Commerce. The Authority
was comprised of the Administrator of Civil Aeronautics and the Civil Aero­
nautics Board.1 The Board absorbed the function of the former Air Safety
Board. These actions were authorized by sections 7 and 8 of Reorganization
Plan IV (54 Stat. 1234).i
i The Administrator of Civil Aeronautics was placed under the direction and super­
vision of the Secretary of Commerce. The Board was directed to exercise its functions
of rulemaking, adjudication and investigation independently of the Secretary. Its
management functions, however, were to be performed through facilities designated by
the Secretary.

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

89

That part of the Civil Aeronautics Authority under the direction and super­
vision of the Administrator of Civil Aeronautics was designated as the Civil
Aeronautics Administration (Department of Commerce Order No. 52 of August
29).
1942—The Bureau of Marine Inspection and Navigation was transferred to the Depart­
ment of the Treasury (Executive Order 9083 of March 1).
1945— The Office of Surplus Property was transferred from the Department of the
Treasury to the Department of Commerce (Executive Order 9541 of April
19).
The Office of Surplus Property was established (Department of Commerce Order
No. 359 of May 1).
The Office of Civilian Defense was transferred to the Department of Commerce
(Executive Order No. 9562 ofJune 4).
The Office of Civilian Defense Property was established (Department of Com­
merce Order No. 372 of June 21).
The Office of Declassification and Technical Services was established in the
Office of the Secretary (Department of Commerce Order No. 386 of September
18).
Part of the Foreign Economic Administration was transferred September 27 to
the Department of Commerce and liquidated.
The Office of International Trade Operations was established (Department
of Commerce Order No. 389 of October 1).
The Office of Surplus Property was transferred to the Reconstruction Finance
Corporation (Executive Order 9643 of November 5).
Reorganization of the Bureau of Foreign and Domestic Commerce and the
Office of International Trade Operations resulted in the establishment of the
Office of International Trade, Office of Small Business, Office of Domestic Com­
merce, Office of Field Operations, and Office of Business Economics, all within
the Bureau of Foreign and Domestic Commerce (Department Order 10 of
December 18).
1946— The Office of Production Research and Development was transferred from
the Civilian Production Administration to the Department of Commerce (Execu­
tive Order 9673 of January 3). It became the Production Research and Devel­
opment Division of the Office of Declassification and Technical Services
(Department Order 22 of January 3).
Part of the Smaller War Plants Corporation was transferred to the Department
of Commerce for liquidation (Executive Order 9665 of January 28).
The Office of Civilian Defense Property was terminated (Department Order
33 of April 1).
The Office of Declassification and Technical Services was redesignated as the
Office of Technical Services (Department Order 5, Amendment 1 of July 1).
1947— Parts of the former Office of Price Administration, Office of War Mobilization,
and Civilian Production Administration were transferred to the Department of
Commerce (Executive Order 9841 of April 23).
The Office of Materials Distribution was established within the Bureau of
Foreign and Domestic Commerce to carry out the functions transferred by
Executive Order 9841 of April 23 (Department Order 69 of May 4).
The Division of Liquidation was established to liquidate the activities of the
wartime agencies transferred to the Department (Department Order 75 of
June 1).

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ANNUAL REPORT OF THE SECRETARY OF COMMERCE

1948— The Office of Industry Cooperation was established to administer the voluntary
agreements program pursuant to Public Law 395, 80th Congress (Department
Order 96 of January 22).
The Appeals Board for the Bureau of Foreign and Domestic Commerce was
established (Department Order 106 of January 28).
The Office of Materials Distribution was transferred to the Office of Domestic
Commerce (Department Order 18, Amendment 1 of May 7).
The Office of Small Business was transferred to the Office of Domestic Com­
merce (Department Order 18, Amendment 2 of June 30).
1949— The Hoover Commission reported March 1 to the Congress its recommenda­
tions concerning reorganization of the Department of Commerce.
The Public Roads Administration was transferred August 20 from the Federal
Works Agency to the Department of Commerce by Reorganization Plan No. 7
(5 U. S. C. 630b, Note). Its name was changed to the Bureau of Public Roads.
The Office of Industry Cooperation and the voluntary agreements program were
terminated (Department Order 110 of September 30).
1950— The Government Patents Board was created and attached to the Department of
Commerce for housekeeping purposes only (Executive Order 10096 of January
23).
The Federal Maritime Board 2 was established in the Department of Com­
merce, the Maritime Administration created as an agency in the Department, and
the United States Maritime Commission abolished by Reorganization Plan No.
21 (5 U. S. C. 170) (Department Order 117 of May 24).
The Office of Industry and Commerce was established; the Office of Domestic
Commerce was abolished and its functions transferred to the new office; the
industry-commodity units of the Bureau of Foreign and Domestic Commerce
were consolidated in the Office of Industry and Commerce; the responsibilities
of the Office of International Trade relating to commodities, export control,
transportation, and communications were transferred to the Office of Industry
and Commerce (Department Order 18, Amended, of October 5).
The National Production Authority was created pursuant to the act of Sep­
tember 8 (64 Stat. 798; 50 U. S. App. Sup. 2061) and Executive Order 10161
of September 9 (Department Order 123 of September 11).
The Advisory Committee on Export Policy was established (Department Order
125 of October 5).
The Office of Transportation and the Transportation Council were established
(Department Order 128 of November 20).
1951— The Industry Evaluation Board was established (Department Order 129 of
January 10).
The National Shipping Authority was created in the Maritime Administration
(Department Order 117, Amended, of March 13).
The loan guarantee program was established in the Department pursuant to
the Defense Production Act of 1950 and Executive Order 10161 of September 9,
1950 (Department Order 132 of June 29).
The Defense Air Transportation Administration was created pursuant to
Executive Order 10219 of February 28 (Department Order 137 of November
12 ).

2 The Board exercises its rulemaking, regulatory, investigative, and control functions
independently of the Secretary of Commerce.

ANNUAL REPORT OF THE SECRETARY OF COMMERCE

91

J952—The Office of Distribution was created to foster better distribution so that
production and employment could be maintained on the decline of defense
production (Department Order 145 of October 1).
1953— The Office of Transportation was abolished (Department Order 128, Amended,
Amendment 1 of March 30) and its work thereafter focused directly in the
Office of the Under Secretary for Transportation.
The Inland Waterways Corporation was sold July 1 to the Federal Barge Lines,
Inc.
The Appeals Board was transferred from the Bureau of Foreign and Domestic
Commerce to the Office of the Assistant Secretary of Commerce for Adminis­
tration (Department Order 106, Amended, of August 18).
Four weaponry divisions and the Corona Laboratories of the National Bureau of
Standards were transferred to the Department of Defense pursuant to a memo­
randum of understanding between the Secretary of Commerce and the Secretary
of Defense (18 F. R. 5713, September 27).
The Business and Defense Services Administration was established. Transferred
to BDSA were: Office of Field Service, Office of Technical Services, Office of
Distribution, Office of Industry and Commerce, and Industry Evaluation
Board. The National Production Authority was abolished. These actions
were taken under Department Order 152 of October 1.
The Bureau of Foreign Commerce was established and transferred to it were
the functions of the Office of International Trade, which was abolished (De­
partment Order 153 of October 12).
The Office of Business Economics was established as a primary organization
unit of the Department (Department Order 15, Amended, of December 1).
(N ote .—Through Department Orders 152, 153, and 15, Amended, functions
of the Bureau of Foreign and Domestic Commerce were absorbed by the Business
and Defense Services Administration, Bureau of Foreign Commerce, and the
Office of Business Economics.)
1954— The Office of Strategic Information was established (Department Order 157
of November 1).
1955— The Office of International Trade Fairs was established (Department Order
159 of January 27).
1956— A National Defense Executive Reserve unit was established in the Department
pursuant to Executive Order 10660 of February 15 (Department Order 163 of
May 16).
Appropriations for major expansion of the Federal-aid highway system, ad­
ministered by the Bureau of Public Roads, were authorized June 29 by the
Federal-Aid Highway Act of 1956 (70 Stat. 374).
The Office of Area Development was established (Department Order 164 of
August 10).
1957— The Office of Strategic Information was abolished (Department Order 157
(Amended) Revocation Notice of July 1, 1957).
Functions and personnel of the Alaska Road Commission were transferred from
the Department of the Interior to the Department of Commerce pursuant to
the Federal-Aid Highway Act of 1956 and memorandum of agreement, between
the two Departments, effective September 16.
1958— Saint Lawrence Seaway Development Corporation’s operations were placed
under the direction and supervision of the Secretary of Commerce by Execu­
tive Order 10771 of June 20.

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ANNUAL REPORT OF THE SECRETARY OF COMMERCE

SECRETARIES OF COMMERCE AND LABOR
AND OF COMMERCE
Commerce and Labor:
George B. Cortelyou................... ..............
Victor H. Metcalf....................... ..............
Oscar S. Straus............................ ..............
Charles Nagel..............................
Commerce:
William C. Redfield................... ..............
Joshua W. Alexander................. ..............
Herbert C. Hoover.................... ..............
William F. Whiting.................... ..............
Robert P. Lamont......................
Roy D. Chapin............................ ..............
Daniel C. Roper.......................... ..............
Harry L. Hopkins....................... ..............
Jesse H. Jones..............................
Henry A. Wallace....................... ..............
W. Averell H arrim an...............
Charles Sawyer............................
Sinclair Weeks............................. ..............

o

Tenure
Ended
Begun
Feb. 18,1903 June 30,1904
July 1, 1904 Dec. 16,1906
Dec. 17,1906 Mar. 5,1909
6, 1909 Mar. 4,1913
Mar.
Dec.
Mar.
Aug.
Aug.
Mar.
Dec.
Mar.
Jan.

5,1913
16,1919
5,1921
22,1928
5,1929
8, 1932
4,1933
24, 1938
19,1940
2,1945
7, 1946
6,1948
21,1953

Oct. 31,1919
Mar. 4,1921
Aug. 21,1928
Mar. 4,1929
Aug. 7,1932
Mar. 3,1933
Dec. 23,1938
Sept. 18,1940
Mar. 1,1945
Sept. 20, 1946
Apr. 22, 1948
Jan. 20, 1953