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FOR THE FISCAL YEAR ENDED JUNE 30
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1938

TW ENTY-SIXTH

ANNUAL REPORT
OP THE

SECRETARY OF COMMERCE
▼

1938

UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1938

For sale by the Superintendent of Documents» Washington, D. C

Price 20 cents (paper cover)

*

O R G A N IZ A T IO N O F T H E D E P A R T M E N T

Secretary of Commerce___________________________
Assistant Secretary of Commerce__________________
Assistant Secretary of Commerce_________
Solicitor_____________________________
Administrative Assistant to the Secretary!____
Chief Clerk and Superintendent______ _
~
Director, Bureau of Air Commerce____
Director of the Census_________________ ~
Director, Bureau of Foreign and Domestic Commerce
Director, National Bureau of Standards—
Commissioner of Fisheries_____________________
Commissioner of Lighthouses____ _T_
~~~ “
Director, Coast and Geodetic Survey__
Director, Bureau of Marine Inspection and Navigation
Commissioner of Patents___________________ ___

n

D a n iel C. R oper.
J. M onroe J ohnson .
R ichard C. P atterson , Jm.
S outh T rim ble , J r .
M alcolm K erlin .
E dward W. L ibbey .
D en is M ulligan .
W illia m L. A u s t in .
A lexander V. D ye .
L ym an J. B riggs.
F rank T. B ell .
H arold D. K in g .
L eo Otis C olbert.
R. S. F ield .
C onway P. Coe.

£

»

CONTENTS
Page

y
v

Functions of the Department of Commerce.............
Economic review----------------------------------------------Reciprocal trade agreements program-----------------Research data for business---------------------------------Finances---------------------------------------------------------Emergency funds._ . -----------------------------------------Foreign and domestic commerce-------------------------Air commerce__________________________________
Lighthouse Service--------------------------- - - - - — ----Enforcement of the inspection and navigation laws
Surveying and mapping-------------------------------------Fisheries_______________________________________
National standards-------------------------------------------Census---------------- -------------------------------------------Patents------------ -----------------------------------------------Foreign-trade zones------------------------------------------Business Advisory Council---------------------------------Fishery Advisory Committee------------------------------

XVI
X V II
_ X V III
_ X V III
XXI
_ X X III
_ X X IV
_
XXVI
_ X X V III
_ X X IX
.
XXXI
_ X X X III
_ XXXV
_ XXXVI
X X X V III
X X X IX

REPORTS BY BUREAUS

B ureau of the C ensus—Continued
Pag©
Page
34
Census
of religious bodies..................................
1 Mechanical
International conferences and expositions.......
laboratory........ ............ ........ ........
34
Publications_________
_____
_______
_
34
Miscellaneous receipts.......................... -........
"
done for other Federal offices and out­
4 Work
Division of Personnel.........................................
side organizations.------------------ -------------3$
----------------------------- —
3®
Personnel-----------Division of Purchases and Sales.......................
Appropriations...................................................
37
Departm ent library........................... ................
6
Chief Clerk

Office
B ureau

and

Superintendent

of the
of

Solicitor

Air C ommerce

The Federal airways system.............................

7

Appropriations and personnel..........................
Growth of aviation industry and safety in

10

B ureau

of the

Census

Preparation of maps.......................................
Census of agriculture---- -..............................

**

Tabulation and compilation of statistics—

ji

Current business statistics................................
Census of electrical industries......................... Census of business--------------- ------------------Agricultural information-------------------------Financial statistics of States and cities--------Vital statistics.......... -........... - ...........................
Population...........- .............................................
Statistics of crime. .............................................
Population indexes.......... —-............................
Searching of population records........................

B ureau of F oreign and D omestic
C ommerce
Introduction--------------------------------- -..........
Cooperation with other governmental agen-

39

M achinery.— ....... ........................................

■
“>

Motion pictures----------------------------------Specialties............ -..........................................
Textile..............................................................

®
43
49

Foreign commerce service.................................

*>0

Foreign tariffs.....................................................

^5

Foreign commercial law------- ------ -------------Commercial intelligence--------------------------"j Transportation
and communications-— ---« Administration of the Foreign-Trade Zones
Act......................................................... ..........
Conferences and expositions.......................... —
offices............ -.......................................
*9 District
Domestic
commerce activities......... - ...............
"t
33 Marketing research..... ......................................
33
33 Editorial and publication work........................

in

5»

¡>¿5
”5
»<

ÏV

REPORT OF T H E SECRETARY OF COMMERCE

N ational B ureau of Standards
Page
Genera] activities................................................
69
Electricity.................................................Ill” I
71
Weights and measures....... ............
73
Heat and power................
” I” I
75
O p tics........................................................................ 76
Chemistry......................
73
Mechanics and sound........ ...................... I” ” I
80
Organic and fibrous materials..........................
82
M etallurgy____________
I_~I 33
Clay and silicate products..............
84
Simplified practice...................................................87
Trade standards.................................
” ””
88
Codes and specifications______________” I” I
89
Building materials and structures. . .IIIIIIIII
90
General financial statement..........................
93

L ighthouse Service
Improvements in apparatus and equipment
Administration......................
Personnel________
Lighthouse tendersIIIHH.................................
Lightships.................................... ....................
Progress of vessels under construction.........
Progress of special works......
..........
Im portant works completed......... IIIIIIIIIHI
C oast

and

P age
127
129
130
131
131
132
132
136

Geodetic Survey

Review of the year.......................
Development of methods and instruments
Cooperative activities...
Chart production_____________ IIIIIIIII” !
Hydrographic and topographic work"
Geodetic work..______ ________
95 Tide and current work___
95 Magnetic work................ IIIIII ......
Seismologie work....... ...IIIII
97 Personnel and financesIIIIIIIIIIIIIIIIH’IIII

B ureau of F isheries
International relations................... .................
Halibut investigations..... ......................I.H I
Japanese activities in the Bristol Bay Fish­
eries........ ...................................................
International Pacific Salmon Fisheries Com­
mission________________ __________
97
B ureau of M arine I nspection and
Conservation of whales______ IIIIIIIIIIIII
97
N avigation
North American Council on Fishery inves­
tigations............... .......................................
98 Inspection division_____________
Great Lakes Fisheries Conference________
98
Principal traveling inspectors__ II"
Fishery Advisory Committee.......... ........ IH H
99
Local inspectors_______________
Domestic relations..............
HH
Law
enforcement and review division
Cooperation with other Federal" agencies""”
Marine investigation boards_____
Cooperation with States and other agencies.. 101
Fines,
penalties, and forfeitures___
Construction activities. ......... ...... ..........
102
Collection of fees and duties
Alaska fisheries service_____ ____-IIIIIIIIII
103
Patrol
fleet.............
Administration of fishery laws and"résilia­
Ship Mortgage Act.IIIIH.......
tions............................................________
103
Passenger
A c t...................... IIIIIIII
Products of the fisheries..............IIIII11
104
Prevention of overcrowding
Alaska fur-seal service....... ...................IIIIIIII 104
Numbering
of motorboats
General activities.............................. I I I I I I I
104
Motorboat Act...........
Seal h e rd .......................
IIIIIIIIIIIIII 105
Technical
d
i
vision____IIIIIIIIIIIIII
Take of sealskins_________ IIIIIIIIIIIIIIII
105
Naval architecture subdivision
Sale of sealskins_________ IIIIIIIII
105
Marine engineering subdivision___
Foxes_________ _____ _____IIIIIII
105
Electrical engineering subdivision..
Fur-seal skins taken by nativesIIIII............
106 Ship
personnel division_____
Fur-seal patrol..............................................
106 American shipping on June 30Il938.II'
Protection of sea otters, walruses, and sea
Laid-up
vessels...........
lio n s ...____ ______ _______ ______
106 Appropriations..........
IIIIIIIIIIIIII^
Propagation and distribution of food and game
fishes_______________ __________ _ _
106
Propagation of commercial speciesll
P atent Office
107
Rescue operations.......................
108
Fishery industries_______________H........ .
109 Condition of the work..................... .
. Economic and marketing investigations II11 109 Classification of patents________ IIIII
Statistical investigations............................... 110 Patent Office Advisory Comm'itteelll
Technological investigations_____ """"
111 Recent legislation...... .............. ........
Biological fishery investigations_____ IIIIIII
113 Special cases_______ I__ HUH
Investigations of commercial fishes........__H 113 Statistics________ II IIIIIIIIIII
Aquicul tur al investigations____ ___ I ll III
Other details of businessYor the"fiscal year"
118
Pollution investigations....................
120
Shellfish investigations..................... .............
120
Law Enforcement Division___
121
Vessels................ .............. ............ [*................. 122
Appropriations...................... I I I I I I I I .............
122

137
138
139
141
142
144
147
148
149
150

153
156
156
157
157
158
159
159
159
160
160
160
160
161
161
164
165
166
167
168
168

170
170
171
171
172
172
176

TWENTY-SIXTH ANNUAL REPORT
OF THE

S E C R E T A R Y OF C O M M E R C E
D epartment
O ffice

of C ommerce,
of t h e S ecretary,

Washington, August 15, 1938.
To the C ongress of th e U nited S tates
(Through the President) :
I am pleased to submit the Twenty-sixth Annual Report of the
Secretary of Commerce, covering the fiscal year ended June 30, 1938.
FUNCTIONS OF THE DEPARTMENT OF COMMERCE

The complications of modern times, as caused by competitive condi­
tions at home and abroad, have resulted in fundamental changes in
business procedure, and have indicated the need for alertness and
business statesmanship in the matter of approaching ever closer to a
comprehensive knowledge of all the economic forces.
The Department of Commerce, in its endeavor to meet this need
in a spirit of cooperativeness, is implementing its service facilities for
increased assistance to the entire business community in surmounting
those obstacles which business units, acting individually and without
the aid of the Government, cannot overcome.
Each Assistant Secretary of Commerce, knowing the potentialities
of the several Bureaus within his particular province, and equipped
with the findings and recommendations of the committees advisory
to the Secretary, is devoting much of his attention to this question of
effective service implementation. While concise statements by the
heads of the individual department units covering their activity during
the fiscal period just closed form the body of this report, I am pleased
to include in this letter of transmittal, for the immediate interest of
the Congress, the highlights in the Department’s activity.
ECONOMIC REVIEW

Following more than 4 years of gradually improving economic con­
ditions, the upward trend was reversed during the second quarter of
the fiscal year under review. In the early months of the year business

VI

BEPOET OF T H E SECBETAEY OF COMMEECE

moved forward to a recovery peak, but the trend of the major economic
indicators was downward throughout the remainder of the year. In
the final quarter there were evidences that the corrective process had
been completed and the basis laid for a resumption of the forward
movement. The sensitive indicators of cyclical fluctuations were
again pointing upward, although actual business volumes toward the
end of the year approximated the lowest levels reached in the 1937-38
recession.
In view of the relatively favorable position during the early part
of the year, when domestic business activity was at a rate considerably
above that prevailing 12 months earlier, and the fact that the recession
was very uneven, the year as a whole did not shoiv a marked decline
in comparison with the preceding year. The most inclusive indicator
of year-to-year change, national income payments, shows only a slight
decline—the total was less than 1 percent below the 1936-37 figure;
it was 12 percent higher than in the fiscal year 1935-36. The declines
in cash income from farm marketings and department store sales were
about 3 to 4 percent, while our export sales, which moved contrary to
the general trend, were up more than one-fifth in volume. The latter
increase was a reflection, in part, of the altered situation in agriculture
following a year of drought, and it was also an indication of the
improved business conditions prevailing in major foreign markets
during most of the year. The political trend abroad did have an
adverse effect on our sales in some areas, but it likewise caused
increased demands for materials needed for armament programs.
In primary production and distribution the decline in domestic
activity was sharp. This curtailment was accompanied by a marked
reduction in imports and in the volume of freight traffic. Working
forces in the industries primarily affected were curtailed materially,
while employment in other industries was reduced at a slower rate.
By the end of the year the decline in business volumes, as compared
with either June of 1937, or the peak month of the recovery, was
more pronounced than the average recession for the year as a whole.
The drop was fairly uniform for the series of value figures shown in
the left-hand side of table 1, although the volume figures given in
the table indicate that manufacturing output, imports, and freight
traffic were down much more than the average.
Although prices of raw materials had weakened as early as April
1937, prices of finished products continued to advance until September.
In that month, however, a pervasive decline set in that continued until
the fiscal year was drawing to a close. Prices of farm products and
industrial materials came down sharply. Finished goods yielded more
slowly, and in June 1938 such products had declined but 6 percent on
the average.
With consumer incomes—as evidenced by the index of the Bureau
of Foreign and Domestic Commerce of monthly income payments—
still rising as late as August 1937 and with unemployed resources
still generally available, the question of what caused the abrupt
change m the trend of business is a challenging one. Explanations

REPORT OF T H E SECRETARY OF COMMERCE

V II

have been set forth, both singly and in combination, but their variety
indicates the difficulty of appraising what was very evidently a com­
plex situation, and one in which a number of causes undoubtedly
contributed to the net result.
Evidence is available that inventories, for example, rose more
rapidly than business volumes during the 1936-37 and through the
first quarter of the past fiscal year. This rise was thus based only
partly upon additional needs for stocks resulting from increasing
trade volumes; they reflected as well the appraisal of future prospects
of prices and costs. When the price structure weakened toward the
close of the preceding fiscal year, orders fell off rather promptly as
forward purchasing was retarded and subsequently inventory liquida­
tion, rather than accumulation, became the rule. At the end of
August 1937, came the collapse in the stock market which signaled
the advent of renewed depression.
While it has been pointed out that profits were still increasing at
the time that the weakness developed in the commodity price struc­
ture—seasonally corrected index of the earnings^ of a sample group
of large corporations reached a recovery peak in the final quarter
of the fiscal year 1936-37—it has been argued that with prices turning
downward and costs affected by the sharp rise in wage rates which
culminated at the same time—the state of expectations with regard
to probable profit trends underwent a substantial modification down­
ward. The price trend also affected anticipations of profits arising
from inventory holdings. That these expectations played some part
in the shift which occurred in business operations after Labor Day
of 1937 is a reasonable deduction from the course of events.
Another factor to which a part is assigned by some analysts is
the abrupt decline in the contribution to prevailing activity through
deficit financing of the Federal Government. This curtailment
resulted in large part from the marked upturn in Government rev­
enues in the latter half of the fiscal year 1937 when the social security
taxes became effective, and the decline in Government expenditures
subsequent to the payment of the adjusted service compensation cer­
tificates held by World War veterans. Adjustments in the tax struc­
ture was a condition allied to this feature of the situation. The
extent to which the rise in activity had been geared to consumers’
expenditures, and the failure of the durable goods industry—notably
construction—to come forward at a rate sufficient to sustain the
advance, are offered as supplementary explanations of the decline.
The foregoing is designed to indicate some of the forces probably
at work, rather than to offer an explanation of the recession. What­
ever mav have been the cause or causes of the decline, the results are
evident from, table 1. In the following paragraphs the changes in
the major segments of our economy during the year are reviewed
briefly:

vin

EEPOBT OF T H E SECEETAEY OF COMMEECE
T able

1.— Indexes of m ajor economiß changes

[N ote.—Index numbers are computed upon the average tor the calendar year or years shown as the base
period in this table]

Total
income
pay­
ments 12
Year ended June 30
and month

Con­
Com­ Cash
Manupensa­ income
Depart- struc­
from
tion
Whole­ facturtion of farm
ment
con­
sale ing proemstore
mar- sales 1 tracts
prices
dueployketaward­
tion i
ees 1 mgs
12
ed i
1924-29

1929=100

=

1923-25=100

100

1926=

1920-24, average___
1925-29, average.__
1929..............
1930.....................
1931..................
1932.............
1933.............
1934............ .
1935................
1936................. .
1937................
1938__________
Percentage change:
1938 from 1929...
1938 from 1933...
1938 from 1936. _.
1938 from 1937.
Months, 1937-38:
July....................
August................
September____
October..............
November_____
December...........
January.............
February_____
M arch. .............
April______
M ay..................
J u n e . . ____ _
Comparison final
month of fiscal
years 1929-38:
June 1929______
June 1932______
June 1933...........
June 1934. .........
June 1935............
June 1936______
June 1937............
June 1938______
Percentage change:
June 1938 from
June 1929____
June 1938 from
June 1932____
June 1938 from
June 1936____
June 1938 from
June 1937____

99.2
87.5
71.3
57.9
62.9

91
105

101
102
100

1923-25=100

100

Index numbers of value

Index numbers of volume
114
99
96
93
79

88

74
124
127
107
76
40
23
34
28
49
59
55

63
72
78
80
85
82

82
80
96
114
87

110

87
108
118

75.9
85.6
85.0

98.5
85.4
69.7
56.2
63.2
67.9
75.5
85.6
84.5

-15.0
+46.8
+ 12.0
- .7

-15.7
+50.0
+11.7
- 1 .5

-25.5
+81.0
+ 11.8
- 2.6

- 20.0
+37.5
+7.3
-4 .3

-56.7
+139.1
+ 12.2
- 6.8

-14.6
+30.2
+2.5
- 3 .5

-26.3
+31.8
-9 .4
-23.7

89.3
90.2
88.7

89.8
90.8
89.4
88.5

95
85
81
78
74
73
70
63
67
71

94
92
94
93
91
89
90

67
62
56
52
56
61
52
51
46
52
51
54

88
88

87
85
83
82
81
80
80
79
78
78

114
117
110
101

126
27
18
26
30
52
61
54

95
64
65
75
80
79
87
78

127
58
93
83
85
105
114
74

68.6

88.0

86.5
85.8
83.5
82.6
82.7
81.4
80.4
80.7

68

78
76

86.6

85.1
82.4
81.4
81.0
80.1
79.5
79.4

99.6
62.3
57.8
65.6
69.7
91.2

83
78
82

72

94
39
70

60.6
56.2
65.7
69.5
79.8
89.8
79.4

88.8

88
86

68

100.2

80.7

108
99
80
64
72
76
82
92

72
50
42
53
60

113

68

67
73
79
87
93
82

66

62
80
85
72

Net ton Foreign trade
miles of
freight
carried
by class ExImI rail- ports 3* ports 4
roads

68

92
105
110

110
86

104

66

57
67
67
75
90
76

69

85
79
76
75
75
73
73
74

86
66

(«)
(5)
(s)

121

98
80
64
75
72
82
90

m
m
«

121
101

91
76
91
93

111

110

131
105

-30.9
+33.3 +71.9
+1.3 +34.1
-15.6 + 22.2

+38.2
-5 .4
-1 9 .8

91
90
93
99
78
74
71
62
70
61
64
64

109
50
64
68

70
77
85
64

97
102
111

128
124
127
114
103
108
110

134
127
121

117

111
111

90
87
97

88

105
95

84
87

«121
8 64
8 60

»136
8 81
8 84
83.
99
114
140
87

71
70
74
95
95

-1 9 .0

-

20.8

-23.4

-27.4

-57.1

-17.9

-41.7

-41.3

+29.5

+31.0

+84.6

+ 20.6

+ 100.0

+21.9

+27.6

+28.0

- 5 .7

+3.8

- 1 .3

-29.5

-16.9 +28.4

-23.7

-11.5

-10.3

-35.1

-24.7

-37.9*

-1 1 .5
- 9 .1

-

- .5

-

11.6

-15.3

10.0
-

11.8

0.0

1 M onthly figures are seasonally adjusted.
2 D ata do not include rental and benefit payments during the period such payments were made.
3 D ata are for exports of United States merchandise.

J Q? ^ are for general imports for all years through 1933 and imports for consumption beginning with the
year i .
J Index numbers were not computed on a comparable basis prior to 1930.
8 Index numbers are averages for the quarter ending June each year.
Sources: Total income payments, compensation of employees, and foreign trade, Bureau of Foreign and
Domestic Commerce, Department of Commerce: cash income from farm marketings, Bureau of Agricultural
iLconomics, Department of Agriculture; Department store sale, construction contracts awarded, and manufacturmg production, Board of Governors of the Federal Reserve System; wholesale prices, Bureau of Labor
Statistics, Departm ent of Labor; and net ton-miles of freight carried, Interstate Commerce Commission.

REPORT OF T H E SECRETARY OF COMMERCE

IX

Income payments almost as large as in 1936-37.
Total income payments, including salaries, wages, dividends, in­
terest, rents, entrepreneurial income, and relief payments, totaled ap­
proximately 66.8 billion dollars for the year as compared with pay­
ments of 67.3 billion dollars for the 1936-37 period. In contrast to
the rising trend that characterized the earlier period, income pay­
ments declined steadily throughout most of the fiscal year. From a
recovery high of 89.4 (1929—100) for the first quarter of the fiscal
year, the seasonally adjusted index of income payments declined to a
low of 80.8 for the final quarter. The index at that time was still 43
percent above the depression low of 56.5 reached during the second
quarter of the calendar year 1933.
Compensation of employees for the 12-month period ended June
1938 aggregated 43.4 billion dollars, a decline of 1.5 percent from the
44.1 billion dollars paid out during the preceding year. Compensation
of employees includes wages on work-relief projects, but excludes
direct relief and benefit payments under the social-security programs.
Direct relief and social-security benefit payments increased by nearly
$500,000,000 for the 12-month period.
For the year the commodity producing industries (mining, manu­
facturing, and construction) were the only major industrial group
to experience a contraction. Employees’ compensation in these indus­
tries was off 6 percent from the 1936-37 period. Salaries and wages
were up 2 percent in the trade and transportation group, and 3 per­
cent in the service industries (including Government).
As a result of the declining trend during most of the year, com­
parisons of June 1938 with June a year ago are less favorable. On
the June-to-June comparisons, salaries and wages were off 27 percent
for the commodity-producing industries and 8 percent for the trade
and transportation group. Owing largely to the relative stability of
governmental pay rolls, employees’ compensation in the service indus­
tries was within 2 percent of the June 1937 level.
The flow of income to property owners during the fiscal year was
approximately the same as in the preceding year. Interest payments
showed a slight advance in the final quarter over those for the cor­
responding 3-month period of 1937, but with dividends off 30 percent
aggregate property income payments were 14 percent lower.
While cash income from farm marketings was only about 3 percent
lower in the fiscal year 1938 than in the preceding 12-month period,
Government rental and benefit payments were reduced by more than
one-third. As a result, total cash farm income was about 5 percent
lower. Harvests of the major crops were much larger than in the
1936-37 fiscal year, but the increased supplies were accompanied by
decreased demand and steadily declining prices resulting from gen­
erally depressed industrial conditions. Hence, seasonally adjusted
cash farm income declined steadily during most of the year. As in
other types of income payments, this downward tendency was in
contrast with an upward trend during the fiscal year 1936-37.
Production and Distribution.
Although the production of nondurable goods turned downward
earlier in the recession, the drop in the production of durable goods
when it developed was much greater. Steel-mill operations, for ex­
ample, declined from 85 percent of capacity in August 1937, to 28 per­

X

REPORT OP T H E SECRETARY OP COMMERCE

cent in June 1938. Automobile production in June was only about
one-third as large as a year earlier, and many other durable-goods
lines, including machine tools, and other steel products, lumber and
building materials, and machinery, recorded marked declines.
The trend of operations in the leading extractive industries during
the fiscal year 1938 was about the same as that for manufacturing in­
dustries. Output of mines reached a recovery high early in the year,,
and then declined with only minor interruptions through May 1938.
On a seasonally adjusted basis, bituminous coal output dropped about
one-third, and production of copper, lead, zinc, and iron ore showed’
similar contractions. Crude petroleum production was also lower, but
the relatively steady demand for automobile fuels held the decline
to moderate proportions.
Retail sales of general merchandise were generally maintained
around the best levels of the recovery period during the first half of
the fiscal period, but declined in the final 6 months. Aggregate retail
sales, including sales of automotive dealers, for the year are estimated
to have been nearly 10 percent lower than in 1936-37. Purchases of
consumers’ durable goods—those which can be more readily post­
poned—experienced a marked contraction as consumer incomes de­
clined. Sales of new passenger cars, for example, were off more than
a fourth for the year, and in the latter half were down almost o0>
percent on a value basis.
Sales of general merchandise, as reflected by the results of depart­
ment stores and the mail-order companies, were only moderately lower
for the year as a whole, but the decline gradually widened. The con­
traction in retail trade was generally larger in the predominantly in­
dustrial areas as might be anticipated from the trend of the national
income figures previously discussed.
. For the fiscal year, freight-car loadings were 14 percent lower than
in the preceding year 5 in the latter half of the period loadings were
off by one-fourth from the corresponding period a year earlier—ap­
proximating the lows in 1932-33. The financial position of the rail­
roads deteriorated, aggravating an already serious situation. Net
operating income in the months January through June 1938 were the
smallest on record; moreover, in February 1938 there was an excess of
operating expenses over operating income. Freight rates were raised
somewhat in the final quarter of the fiscal year, and passenger rates
m the eastern territory were also advanced in an effort to bolster revenucs. In May the railroads instituted proceedings to reduce wages
of railway employees by 15 percent, but final determination on the
proposal will not be reached for some months.
Construction.
Building construction, which had been looked to as a source of im­
petus to the rise in 1937, experienced a renewed slump which extended
to both residential and commercial building. In July 1937, contract
awards reached the highest total since April 1931, but subsequently
declined through the third quarter of the fiscal year. In the final quar­
ter, however, renewed activity of private builders appeared and the
enlarged public-works program voted by the Seventy-fifth Congress
promised a substantial rise in Government-sponsored construction
During the early part of the fiscal year, relatively favorable busi­
ness conditions and an increasing need for new facilities led many cor­
porations to start work on industrial structures which had been under

REPORT OP T H E SECRETARY OP COMMERCE

XI

consideration. As a result, awards for such structures rose to a rela­
tively high total for a brief time. In July 1937, contracts let for in­
dustrial buildings were valued at $58,500,000, a total exceeded in only
2 months since 1925, which is the earliest date covered by these sta­
tistics for 37 States east of the Rocky Mountains. The contraction in
business subsequent to August 1937 led to reductions in industrial
building so that during the latter half of the fiscal year they averaged
jess than $10,000,000 per month.
Residential construction which had been tending upward early in
the fiscal year, subsided rapidly in the fall of 1937. In the latter part
of the fiscal year, residential awards resumed an upward trend, and by
June 1938 were only about one-fifth below the recent high recorded
in April 1937, on a daily average seasonally adjusted basis.
A factor in this recent rise was the liberalization of the Federal
Housing Administration loan requirements. Also, the improvement
in the rent-building cost relationship was a favorable influence which
exerted its effect with the renewed upturn in income payments.
Unemployment increased during the year.
Employment decreased from September 1937 to January 1938, and
subsequently showed little change through the balance of the fiscal
year. During the last 4 months of the fiscal year, the number at work
in nonagricultural pursuits held steady at slightly less than 32,000,000
workers, as compared with 35,000,000 in September 1937, and the
March 1933 depression low of 26,000,000. These estimates cover all
persons engaged in gainful work outside of agriculture, including selfemployed and casual workers, but exclude those employed on projects
of the Works Progress Administration and other emergency relief
projects, and those enrolled in the Civilian Conservation Corps. With
the decline in private employment in the fall of 1937, work on emer­
gency projects was rapidly expanded so that by June 1938 a total of
2.9 million workers were engaged on Works Progress Administration
and emergency relief projects.
Decreasing employment and the normal growth of the working force
resulted in an increase in the number of unemployed from about 5.7
million in September 1937 to about 11 million at the end of the fiscal
year, according to unofficial estimates which check closely with the
unemployment census conducted by the Government in November
1937. Counted as unemployed in these estimates are those at work on
Works Progress Administration and other emergency relief projects,
including the Civilian Conservation Corps.
Export trade relatively better than domestic trade.
Exports of United States products continued to rise during the
greater part of the fiscal year 1937-38. Business activity in most for­
eign countries averaged higher than in the preceding fiscal year,
though the general trend was downward in the latter half of the year.
In a number of countries the increased demands resulting from arma­
ment expenditures was an important factor in the trade situation. Our
above-average crops of 1937, while poor crops were harvested in some
other important producing countries, enabled importing nations, prin­
cipally those in Europe, to buy United States grain at competitive
prices for the first time in a number of years. Moreover, the reduc­
tions in tariffs and other concessions of the reciprocal trade agreements
in effect between the United States and 15 countries throughout the

X II

REPORT OP T H E SECRETARY OP COMMERCE

year, and with 2 additional countries for part of the year, were a
force operating in the direction of increasing the volume of United
States foreign trade, although the results of this program are not sus­
ceptible of precise measurement.
It is not possible to mention in this brief review all the factors that
influenced trade movements in 1937-38. Note should be taken, how­
ever, of certain retarding influences. Disturbed conditions in China
and Spain, the official control over import trade exercised by Japan,
and the changes in tariffs and applications of the expropriation law
of 1936 by Mexico—all operated to curtail our trade wTith those four
countries.
The gain of one-fifth, or more than a half a billion dollars, over
the preceding year brought the total of our exports to the largest
figure for any fiscal year since 1929-30. Compared with the value
in the depression low year, 1932-33, last year’s figures were more
than 135 percent higher.
Exports of agricultural products were one-fifth larger, reaching
the highest value in the past 7 fiscal years. The quantities of grain
exported from the United States, particularly of wheat and corn,
compared favorably with those past years when our position in
world grain markets had been more significant.
The increase in the value of grain and flour exports in 1937-38
over the preceding drought year figure was $182,000,000, whereas
the value of all agricultural exports taken together increased $158,000,000. Exports of a number of other agricultural products—
meats, fruits, leaf tobacco, and lard—increased, but the substantial
reduction in the value of unmanufactured cotton exports, as a result
of the decline in prices, acted to more than counterbalance the com­
bined increases for products other than grain.
_A substantially larger quantity of United States cotton—our prin­
cipal agricultural export commodity—was shipped to the countries
of Europe in 1937-38 than in the preceding fiscal year, but since
Japan’s purchases of cotton decreased by more than one-half, total
exports were only moderately larger than in the preceding fiscal
year. The value of exports of unmanufactured cotton in 1937-38
dropped to approximately $312,000,000, or $71,000,000 under the
value in 1936-37.
Exports of nonagricultural products, which had expanded in the
preceding fiscal year to almost three-fourths of the export total,
increased approximately one-fifth in value and, therefore, consti­
tuted approximately the same large proportion of the export trade
in 1937-38. Finished manufactures comprised 49 percent and semi­
manufactures 18 percent, practically the same percentages as in the
preceding year. Principal nonagricultural exports showing marked
advances included metal-working machinery and other industrial
machinery, agricultural implements, aircraft, automobiles and
trucks, heavy iron and steel products, and refined mineral oils.
United States trade with the world in 1937-38, compared with sev­
eral post-war years and a pre-war average period, is presented in
table 2. Practically the entire change in the value of our trade in
1937-38 from that of the preceding fiscal year was the result of
variations in the volume of goods exported and imported. This
was not the case, however, with reference to other recent years; the
changes in the prices of commodities over a period of years explain

REPORT OF T H E SECRETARY OF COMMERCE

X III

a significant portion of the fluctuations in values.^ In terms of vol­
ume, the export trade in 1937—
38 was half again as large as the
average for the period 1932-36.
£ . ......
The sustained high value of merchandise exports m 1937-38, ana
the contraction in import trade, resulted in an excess of exports over
imports of over $1,000,000,000, the largest merchandise export bal­
ance for any fiscal year since 1928-29. This excess was largely
counterbalanced in our international balance of payments by net
imports of gold and silver.
,
Imports from all great trade regions of all classes ox mercnandise were smaller in value in 1937-38 than in the preceding fiscal
year during which the monthly volume rose to an all-time high
record.- The incoming trade subsequently declined until the import
volume in the second quarter of 1938 touched the lowest level since
1934. Total imports for the year 1937-38 were down about one-nitn
in both quantity and value as compared with the preceding fiscal
Year
The lowered value of import trade in 1937-38 resulted from a
reverse domestic situation to that which had prevailed the year be­
fore. Reflecting the recession in manufacturing output, industrial
demand for imported crude materials slackened, greatly, while the
ample domestic supplies of grain and lower prices cut off imports
of grain and feed which had loomed large in the imports of 1936—37.
In comparison with the decline of one-fifth shown for the value
of total imports, the decline in imports of competitive agricultural
products such as wheat, corn, feeds, vegetable oils, and meat prod­
ucts, which were obtained from abroad in large amounts during the
years of domestic shortage, was almost two-fifths. Above average
decreases occurred also in competitive agricultural products which
are regularly imported into the United States in large quantities—
for example, hides and skins, and raw wool.
Financial developments.
During the early months of the fiscal year, attention in the finan­
cial markets was directed primarily to the series of official steps taken
with a view to easing general credit conditions. A combination of
factors had tended during the second half of the preceding fiscal
year to' produce some uncertainty in business prospects. Since the
volume of banking funds available for lending and investment was
satisfactory and liquidation by banks of Government securities had
practically ceased after the Federal Reserve System’s stabilizing
efforts of March and April 1937, the Federal Reserve banks adjusted
their rediscount rates during August and September to a uniform
rate of 1y2 percent, except the Federal Reserve Bank of New York,
which lowered its rate to 1 percent, the lowest central bank rate m
history.
.
.
The principal statistical factor on which credit-easing operations
were predicated was the relatively low volume of excess reserves of
the reporting member banks which had fallen to $773,000,000 by the
end of August 1937, as compared with $2,152,000,000 at the end of
January 1937. Among the New York banks the decline in excess
reserves was relatively greater than for the country as a whole, and
since the autumn demands for currency and credit were viewed as
requiring easing action the Board of Governors of the Federal Re­
serve System requested the Secretary of the Treasury to release

XIY

REPORT OP T H E SECRETARY OP COMMERCE

$300,000,000 from the inactive gold account. Simultaneously, the
System on September 12 announced that the Reserve Banks would
stand ready to buy additional Government securities in order to meet
the expected seasonal demands. Within 10 days of this action excess
reserves had increased to a total of more than $1,000,000,000.
In the-meantime, stock prices, which had risen during July, turned
downward toward the end of August. This decline, which extended
to coiporate bond prices, was accentuated by several sharp breaks,
notabiy by those of October 18 and 19. The Board of Governors
reduced the margin requirements on security loans, both by banks
and by brokers from 55 to 40 percent, effective November 1, but share
prices continued to fall, and during the first 5 months of the fiscal
year showed a net loss of about 30 percent.
Generally speaking, security markets remained weak until the final
month of the year Although sensitive to the movement of share
prices during the first half of the year, domestic bond issues were
relatively firm at times of further weakness of stocks during the sec­
ond half. E oreign issues broke sharply in March 1938, when Austria
was incorporated within the German State, and reacted delicately
uring subsequent months to foreign political developments.
Loans and investments of reporting member banks in 101 cities
fell from $22,290,000,000 at the end of June 1937 to $20,561,000 000
to
onhnno8' T1p ^ Tfrom
’S dccJinc,1
in drop
j otal from
loans—$9,760,000^000
to ¿'121
$8,321 000,000—resulted
a steady
the end of Au­
gust 1937 to the end of the fiscal year. Loans by reporting member
r g s for commercial, industrial, and agricultural purposes rose from
$4,ddi 000,000 at the beginning of the year to $4,807,000,000 at the
^Qa 0fíf^m^nenmbTr, and,the,n r.eceded steadily to a year-end figure of
906 000,000 Loans to brokers and security dealers fell sharply
after the break m stock prices during the second half of October mid
^ 9Snnnnnn do™ ai;d tendency during the rest of the year, stood
at
“ le enc* °* the year? as compared with $1,447,000,000
Security issues for the purpose of raising new capital durino- the
year were relatively small in volume. Although the supply of in­
vestment funds was ample, the sharp declines in security prices and
flotations1taint^ °f buSmeSS ProsPects acted as a deterrent to new
In line with the easy money policy and because of a changed situ­
ation as compared with that confronting the Treasury and Reserve
Bank authorities late m 1936, when the gold sterilization program
was inaugurated, it was announced by the Secretary of the Treasurv
on February 14, 1938, that gold acquired after January 1, 1938,
would be included m the inactive gold account only to the extent
tnat such acquisitions m any one quarter exceeded $100,000 000 In
accordance with the proposals made by President Roosevelt on April
14, m his message to Congress, the Treasury at once desterilized
o?PioaRmatei yi-i^14 00’0u0,0i )(^ the net accumulation since December
21, 1936, and the Board of Governors, on April 15, “as part of the
Governments program for encouragement to business recovery” re­
duced the reserve requirements on all classes of deposits of member
banks by approximately 13y4 percent. The net effect of these steps
was to increase excess reserves of member banks to $2,875,000,000 bv
the end of the fiscal year and to bring money rates to levels well

XV

REPORT OF T H E SECRETARY OF COMMERCE

below those of a year previously, as reflected, for example, m the
yield on Treasury notes of 3-5 years’ maturity which fell from 1.55,
on June 30, 1937, to 0.68 by the corresponding date of 1938.
Net gold imports during 1937-38—though aggregating $799,000,iQ00—were not so large as in the 3 preceding years. Although the
inflow continued on a relatively high level early in the year, its rate
was materially retarded after the sharp fall in security prices during
September and October 1937. During the next 2 months the move­
ment was actually reversed when heavy foreign withdrawals of dollar
balances reduced foreign-owned short-term doilar assets held m
American banks from $2,305,000,000 on September 30 to $1,730,000,000
on December 29, and gold was exported and placed under earmark
for foreign account as a consequence. This outward movement was
influenced by an improvement in the French situation, and by the
removal of other factors which had caused foreign capital during
earlier months to be expatriated to the United States.
.
The withdrawal of foreign-owned dollar balances continued during
the second half of the fiscal year, but was influenced more and more
by the foreign need for dollars to meet the substantial net payments
due this country from the large excess of merchandise exports. Ex­
cept for periodic weakening, as for example following the President s
message to Congress on April 14, the dollar remained firm during
the rest of the year. Gold continued to flow to the United States
in moderate amount, and during a great part of the second half qf
the year foreign currencies, influenced by new financial crises m
France, were under pressure.
Treasury receipts during the year aggregated $6,242,000,000 as com­
pared with $5,294,000,000 during the preceding year. _ On the other
hand, expenditures amounted to $7,766,000,000 as against $8,105,000,000 in 1936-37. The gross debt, less net balance in general fund, mcreased during the year from $33,871,000,000 to $34,949,000,000.
T able 2.— Foreign trade of the United Sta tes
Millions of dollars
Exports
Fiscal year ended June 30—

1910-14, average.....................
1922-26, average.....................
1927-31, average.....................
1932-36. average.....................
1936-37...................................
1937-38....................................
Percent change:
1938 from 1910-14............
1938 from 1922-26............
1938 from 1927-31............
1938 from 1932-36............
1938 from 1936-37............

Gen­
eral
im­
ports

Total

United
States
mer­
chan­
dise

2,166
4,332
4,599
1,993
2,838
3,403

2,130
4,248
4,515
1,958
2, 791
3,361

1,689
3,646
3,795
1,725
2,942
2,361

+57.1
-21.4
-26.0
+70.8
+19.9

+57.8
-20.9
-25.5
+71.7
+20.4

+39.8
-35.2
-37.8
+36.9
-19.7

Im ­
ports
for
con­
sum p­
tion

Excess of exports (+)
or imports (—)

M er­
chan­
dise

Gold

+477
+17
1,678
+213
+685
3,504
+65
+805
3,787
-534
+268
1,716
-104 - 1 , 635
2,892
-799
2,331 +1,043
+39.0
-33.5
-38.4
+35.9
-19.4

Silver

+20

+14
+16
-117
-84
-165

Quantitative
indexes
(1923-25=100)

Im­
Ex­
ports 1 ports a

3 70
3 96
3 122
75
90
no
+57.7
+14.4
-9 .3
+47.2
+ 22.1

63
98
116
92
132
105

3
3
3

+66.7
+7.3
- 9 .1
+14.3
- 20.2

Î Unport indexes arebaseV on^G eneraH m ports” through the calendar year 1933 and “Imports for con“ ^ t f m a ’te d b r f l s c h year; for calendar indexes see Trade Information Bulletin No. 839, Summary of
U nited States Trade with the World, 1937, issued by the Bureau of Foreign and Domestic Commerce.

XVI
T able 3.

REPORT OF T H E SECRETARY OF COMMERCE

Foreign trade by trade regions and economic classes, years ended
June 30
Millions of dollars

Percent of total

1910- 1922- 1927- 193214
26
31
36 1936- 1937- 1910- 1922- 1927- 1932- 1936- 1937(aver (aver (aver (aver 37
38
14
26
31
36
37
38
age) age) age) age)
TOTAL EXPORTS, INCLUDING REEXPORTS OF FOR­
EIGN MERCHANDISE
To—
Europe_______ _
1,350 2,253 2,162
930 l, 140 1,446
All other continents____
816 2,079 2,438 1,063 1,698 1,957
Canada and Newfoundland__________
320
639 806 290
453
516
302 722 806 303
642
Asia_______ ____
502 558 350
553
Oceania....................
146
161
103
25
69
106
143
EXPORTS OF UNITED
STATES MERCHANDISE

62.3
37.7

52.0
48.0

47.0
53.0

46.7
•’S. 3

40.2
59.8

42. 5.
57.5

14.8
14.0
5.6
2.2
1.1

14.8
16.7
11.6
3.4
1. 6

17.5
17.5
12.1
3. 5
2.3

14.6
15.2
17.6
2.7
3.4

16.0
18.4
18.0
2.8
4.6

15.2
18. 9
16. 3.
3.0
4. 2

234
417
603 703
687
291
519
831 1, 357 1,638

19.8
33.5
16.0
30.7

22.3
28.1
13.1
36.6

16.0
24.3
45.6

11.9
30.8
14.8
42.4

7.6
25.2
18.6
48.6

12.4
20.4
18.4
48. 7

49.5
50.5

30.0
70.0

30.2
69.8

29.9
70.1

28.3
71.7

28. 271.8-

Africa____ _____

836 1, 093 1,145
665
852 2,554 2,650 1,208 2,110 1, 696
119 406
314
435 965
950
419
541
259 1, 045 1,107
756
17
57
47
25
23
80
82
61

7.0
25.8
15.3
1.0
1.3

11.1
26. 5
28.7
1. 6
2. 2

12.2
25.0
29. 2
1.2
2.2

13.9
24.3
28.9
1.0
2.0

14.8
22.4
29.4
2.3
2.8

13.3
22. 9
32.0
1.1
2.6

IMPORTS FOR CONSUMPTION
Foodstuffs_______
Crude materials__
Semimanufactures___
Finished manufactures__

398 849
595 l, 400
307
655
389
743

23.5
35.2
18.2
23.1

23.3
38.4
18.0
20.4

22.9
35. 7
18.9
22.5

30.0
28.7
19.0
22.2

30.1
31.7
20.1
18. 1

27.7
30.5
21.0'
20.8

Foodstuffs...............
Crude materials ____
Semimanufactures__
Finished manufactures__

946
724
713 1,194 1,098
342
555 636
654 1, 554 2,057

GENERAL IMPORTS
From—
Europe.............. .
All other continents__
Canada and Newfoundland...................
Asia_______

867
,355
719
853

645
326
382

581
523

490
484

RECIPROCAL TRADE AGREEMENTS PROGRAM

Ih e Department, through, the Bureau of Foreign and Domestic
Commerce, has maintained a close association with the reciprocal
trade agreements program since the inception of the program in
In the interdepartmental organization for the work, functionmg under the leadership of the Department of State, the Department
of Commerce provides detailed analyses of the problems of American
exporters in foreign markets; develops similar facts concerning; foreign countries tariffs, and other trade barriers to the admission of
American products; and prepares basic data for the requests to be
made of the other governments, in the course of negotiations.
During the past fiscal year, the Department has assisted in the
preparation and negotiations of new trade agreements with Czecho­
slovakia, Ecuador, United Kingdom (including Newfoundland and
the. British Colonial Empire), Turkey, and Venezuela, and of the
revision of the existing agreement with Canada, The agreements
w^h the first two countries named have been concluded; the others
are still under negotiation. The Department has also contributed
during the year to the exploratory studies of American trade rela­

REPORT OF T H E SECRETARY OF COMMERCE

XVII

tions with a number of additional countries with which negotiations
are being contemplated.
General analyses of the progress and results of the trade agree­
ments program were prepared by the Department after the middle
and end of the past year, these studies receiving wide circulation.
The Department also contributed toward the analyses, issued jointly
with the other cooperating Government agencies, of the first 2 years’
trade experience under the agreements with the Netherlands and
with Switzerland.
As of June 30, 1938, all but 1 of the 18 reciprocal trade agreements
concluded were in operation. However, the substantial progress of
the program is indicated by the fact that, within a period of 4 years,
agreements have been negotiated and made effective with countries
which together normally account for nearly 40 percent of the total
foreign trade of the United States. If the negotiations with the
countries announced are successfully completed, the scope of the pro­
gram will be extended to the countries accounting for nearly 60
percent of the total of American foreign trade.
From the facts at hand, it appears that the trade agreements pro­
gram is operating as a definite stimulus to the increase of our foreign
trade, particularly on the export side.
KESEAKCH DATA EOF BUSINESS

The increasing relative importance of trade and industry in the
United States during recent decades has not been accompanied by an
adequate understanding of the operation of many important aspects
of our economic life. The experiences of the recent depression have
particularly demonstrated the inadequacy of this understanding and
the urgent need for improved knowledge in these fields.
Sixty years ago nearly one-half of our working population was
engaged upon farms in supplying necessary foodstuffs and other
products from the land. Today this proportion has decreased to
approximately one-fourth. This trend has been accompanied by a
marked increase in the number of our people dependent upon industry
and commerce for their livelihood. The proportion dependent upon
trade, transportation, and clerical occupations, for example, has in­
creased from less than 10 percent to more than 25 percent over the
period from 1870 to 1930. The increasing importance of these various
fields of business places heavy responsibilities upon both Government
and private agencies engaged in business research.
Many business problems of a broad economic character, such as
fluctuations in industrial activity and the irregular movement of
merchandise from manufacturer to consumer, varying demand for
the different types of credit, trends in the prices of industrial and
consumer goods, changes in consumer demand, influence not only
single business enterprises but the entire structure of our economic
life. These problems vitally concern every citizen alike, whether he
be an employer, employee, or unemployed. They concern his income
and expenses; in other words, the standard of living of himself and
family. In their broader aspects these problems are clearly beyond
the reach of most individual business enterprises. Adequate investi­
gations of such problems can be carried on only by Government
108928— 38----- 2

XVIII

REPORT OF T H E SECRETARY OF COMMERCE

agencies and by universities or privately endowed institutes for eco­
nomic research.
The Department of Commerce is attempting to study many of
these problems with the purpose of clarifying the general under­
standing of business operation and aiding businessmen in better
administration of their own enterprises. Facilities for this work,
however, are still woefully lacking. The fields in which more re­
search should be undertaken promptly are construction and related
durable goods industries ; the compilation and analysis of statistics
for the purpose of appraising broad trends in our national economy
of such fundamental areas as national income, wealth and debt ; the
collection, analysis, and dissemination of current statistics for each
of the important trades for production, sales, inventories, and related
items; the compilation of statistics upon both long-term and short­
term credit; studies of the cost of distribution; investigations of
trade practices ; investigations of the changes in price structures and
their effects upon industry, trade, and the ultimate consumer; and a
more exact interpretation of the consumer and his needs to business­
men. The urgent need for business research in these broad fields is
clear both to those who are required to determine farsighted busi­
ness and governmental policies and to those who have the immediate
responsibility for the detailed conduct of individual business enter­
prises.
FINANCES

In order to conduct the regular functions and activities of the
Department of Commerce during the fiscal year 1938, $44,191,750
was made available from the sources indicated as follows :
Unobligated balances of prior year appropriations available during
1938----------------- 1.-------------------------------------------------------------------- $1, 037, 880
Department of Commerce Appropriation Act, 1938__________ _____ 43, 032, 242
Amount appropriated in the 1938 annual act, available
for 1937------------------------------------------------------------------- $102,000
1939 appropriations available during 1938_______________
500, 000
Deficiency and supplemental appropriations available for
the fiscal year 1938__----------------------------------------------372, 600
Funds transferred from other Departments and agencies—
402,828
Funds transferred to other Departments and agencies__
8, 000
Unobligated balances of 1938 funds carried forward and
available for 1939__________________________________ 1, 043, 800
Total------------------------ :-------------------------------------- 1,153, 800 45, 345, 550
Net amount available during 1938_______________________ 44,191, 750

The disbursements during the fiscal year 1938 from funds made
available for the regular functions and activities of the Department
(i. e. exclusive of funds allotted or transferred from Emergency
Appropriations) including unliquidated balances from prior years,
amounted to $41,323,994. The Treasury receipts resulting directly
from activities of the Department of Commerce were $7,140,384,
leaving a net outlay for the fiscal year 1938 of $34,183,610.
EMERGENCY FUNDS

In addition to its regular functions, the Department has for the
past several years participated in various emergency projects de­
signed for the relief of unemployment, and improvement of economic
conditions generally. The following table shows the allocations or
allotments made from emergency appropriations to the Department
108928— 38-------2

REPORT OF T H E SECRETARY OF COMMERCE

XIX

during the fiscal years 1934 to 1938, inclusive, and the obligations in­
curred against these funds. The accomplishments through the use
of these funds will be found discussed under the respective sections
of the report pertaining to the bureaus receiving the funds.
T able 3.— Allotm ents to the Department of Commerce for w ork incident to
emergency relief and obligations incurred thereunder during the fiscal years
1934 to 1938, inclusive
1934

1935

Office of the Secretary:
N . I. R. A.:

90, 620
90, 259

987,000
964,879

30,000
50,917

20,620
20, 268

1,037,620
1,036,064

$2,058,803
425,062

$20,000
1,336,976

4,500
258,891

54,819

2,083,303
2,075,748

973,075
614,454

14,700
273,929

90, 581

987,775
978, 964

280,603
197,935

199,603
198,285

-81,000
350

W. P. A.:
Obligations...............

Bureau of Foreign and Do­
mestic Commerce:
C. W. A.:

2,339,406
622,997

912,075
1,951, 780

372, 275
194,785

154.854

W. P. A.:

225,000
200, 637

362,380
349,336

260, 600
259,927

847,980
809,900

244,200
733, 457

362,380
494,736

260,600
259,927

4,118, 661
4, 062,897

8,247

372,275
357,886

100,000

36, 793

Obligations..................
Total:
Obligations.......
Bureau of the Census:
C. W. A.:
F . E . R. A.:

$947,000
945,805
$20, 620
20, 268

Obligations.......

P . W. A.:

100,000

372,275
194, 785

154,854

2, 261,346
1,360' 618

263,390
941,978
245,000
134,057

W. P. A.:

36,793

100,000

99, 968

63,175

63,175

8,247

760,000
472,695

238, 209

48,427

1,005,000
893,388

8, 231,948

2,785,500
3, 698,294

83,000
77,000

11,100,448
10,823,381
1, 000,000

1, 000,000

999, 570

999,570

Census of partial employ­
ment, unemployment
and occupations:
Obligations..................
Total:
Allotments____
Obligations.......
Bureau of Marine Inspection
and Navigation:
N . I. R. A.:
Obligations................ -

472,275
457,854
2,524, 736
2,302, 596

7,048,087

Drought relief in agricul­
tural areas:

Total

$30,000
50,917

Total:

Total:
Allotments____
Obligations.......

1938

40,000
19,074

Obligations..................

C. W. A.':

1937

$947,000
945,805

W. P. A.:

Bureau of Air Commerce:
N . I. R. A.:

1936

2, 261, 346
1, 360,618

1,508,390
2,075,605

8,991,948
7, 520,782

33,043
28, 393

60,000
62, 581

1,065

2, 785, 500
3,936, 503

850,000
815,692

850,000
815, 692

933,000
941,119

16,480,184
15,834,627

93, 043
92,039

XX

REPORT OP T H E SECRETARY OP COMMERCE

3.—A llotm ents to the Department of Commerce for work incident toemergency relief and obligations incurred thereunder during the fiscal years’
1934 to 1938, inclusive—Continued

T a b le

1934
National Bureau of Standards:
N .I .K . A.:
Allotments..................
Obligations..................
P . W. A.:
Allotm ents..................
Obligations..................
W. P. A.:
Allotments..................
Obligations..................
Total:
Allotments........
Obligations___
Bureau of Lighthouses:
N; I. R. A.:
Allotments__
Obligations____ ____
W. P. A.:
Allotm ents.............. .
Obligations_________
P. W. A.:
Allotments____ _____
Obligations_________
Total:
Allotments____
Obligations___
Coast & Geodetic Survey:
N. I. R. A.:
Allotments............. .
Obligations.............. .
Bureau of Fisheries:
N. I. R. A.:
Allotments..................
Obligations___ _____
C. W. A.:
Allotm ents..
Obligations .................
W. P . A.:
Allotments_________
Obligations_________
Total:
Allotments__
Obligations___

$100,000
87,690

1935

1936

1937

1938

Total

$100,000
99,601

$11,911
$70,000
69,997

100,000

70.000
69,997

75,000
30,257

$44,741

$2

75.000
75.000

2

245,000
244, 598

87,690

11,911

145,000
100,254

44.741

5,620,334
2,706, 548

2, 884,952

197,934

18,061

. 5, 620,3345,607,495

20,000

20,000

19,029

19,029

5,620,334
2,706,548

2, 684,952

216,963

18,061

6,503,120
4,571, 625

1,429,800
3,164,855

360,300
532,560

17,169

638,955
352,200

1,500
254,566

20,000

10,000

20,000

47,789

2,098,750

2,098, 750

2,098,750

7,739,084
5,626,524
8,293,220
8,286,209

670, 455
670,075

15,520

38,391
38,056

677, 346
390,256

Total—Department of Com­
merce:
N. I. R. A.:
Allotm ents.............. . 14,954,255
Obligations..............
8,171,518
P. W. A.:
Allotments__
Obligations..................
W. P. A.:
Allotments..................
Obligations.............. .
C. W. A.:
Allotments........
2,952,615
Obligations. ................ 1,791,394
F . E. R. A.:
Allotments.................
Obligations. ___
Drought Relief in Agri­
cultural Areas:
Allotm ents..................
Obligations. .............. .
Census of Partial Employ­
ment, Unemployment,
and Occupations:
Allotments................
Obligations................
Grand total:
Allotments____ 17,906,870
Obligations___
9,962,912

38,391
38,056
151,372
123, 760

27, 612

1,500
254,566

171,372
171,549

43,132

1,511,300
7,515,841

1,331/800
1,984,044

105,569

973,075
614,454

84,700
343,926

90,581

8,843, 320
7,477,637

3,177,880
4,234,075

10,000

760,000
472, 695

860,218
859,503

10,000

182,390
1,097,182
245,000
134,057

151, 372
151,372

238,209

17,807, 355
17,776,972 '
2,098,750
358,220
357,197

12,379,420 12,068,909

8,247

3,135,005
2,896,823

48,427

1,005,000
893,388

1, 000,000

1, 000,000

999,570

3,911,765
10,361,104

3,156,525
1,048,961

999,570

11,019,820
10,278,302

3,187,880
4, 668,434

850,000
815,692

850,000
815,692

3,306,970
1,229,563

39.333, 305
36,500,315

REPORT OF T H E SECRETARY OF COMMERCE

XXI

FOREIGN AND DOMESTIC COMMERCE

In view of the fact that the past year has been characterized by
-numerous and rapid modifications of the economic picture, there has
naturally been a marked increase in the demands upon the Bureau
■of Foreign and Domestic Commerce for information and guidance
that would help American businessmen to cope effectively with new
•situations and to overcome unexpected obstacles.
,
In many cases timeliness was of the very essence of the Bureau s
service. For example, the conflict in the Far East, particularly m
its earlier stages, produced many dislocations of regular American
•commercial intercourse, with resultant uncertainty, confusion, or
perplexity on the part of numerous businessmen. The Bureau main­
tained continuous contact with its offices in China and Japan, utilizing
the swiftest methods of communication as a means of keeping our
business communities hourly advised concerning happenings m le
Orient. In Central Europe the annexation of Austria by the Berman
Reich gave rise to a variety of complex problems. I t was essential
that the, significance of the resultant changes and new regulations be
analyzed for the guidance of our traders. T h e approaching change
in the status of the Philippines, and the repercussions already observed
in the commercial structure of the islands, likewise formed the subjec
•of painstaking study.
■
The economic recession and subsequent movement of recoveiy m
the United States led to many readjustments in business. 1 hose were
studied objectively, with the primary purpose of suitably supple­
menting the recuperative forces.
. , ., A
, ■
The following actual examples of practical aids to the business
■community indicate the striking increase in the Bureau s activity.
The district offices increased tlieir distribution of _Trade Opportu­
nities from 99,000 to 168,000. One industrial division registered an
80 percent increase in the number of visitors supplied with specific
information. Another division noted an increase of 2,000 in the
number of written requests for information. _ There was noted a
•25 percent rise in the number of paid subscriptions to one of the
Bureau’s principal periodicals, a 13 percent rise m demands for bales
Information Reports in foreign firms, and an increase of 38 percent
in the number of private business houses that defrayed the cost of
installing the Bureau’s “Business information file.”
_
Illustrative of the practical value of the trade-promotion work may
be mentioned the orders obtained by American manufacturers from
Brazil for about $?,000,000 worth of locomotives and freight cars, as
made possible by the joint effort of the Transportation Division and
the Foreign Commerce officers; and a similar transaction with the
•Chilean State Railways, which brought to our country orders for
railway equipment valued at more than one-half a million dollars.
Other examples of benefits enjoyed by American firms, as direct
results of the Bureau’s activity in their behalf, are briefly as follows:
The consummation of a $450,000 contract for 25,000 tons of sulphur;
the sale of $200,000 worth of wood pulp in Turkey; the obtaining
■of an order from a foreign government for motortrucks with an
aggregate value of nearly one-half a million dollars; the reopening
•of an aircraft factory, made possible by the receipt of orders from

XXII

REPORT OF T H E SECRETARY OF COMMERCE

abroad; an appreciation of $50,000 in profits to members of the motionpicture industry by virtue of a change in the attitude of foreign
censors toward specific feature pictures; arrival from a South American republic of an order for $120,000 worth of rosin and turpentine
as a quick consequence of a “trade lead” ; the free entry into Mexico
of 30,000 tons of American wheat; similar entry into Greece in the
case of American machinery valued at $140,000; the clearance of our
apples into Lgypt in shipments ranging up to 10,000 boxes; the settlement o± a heavy claim for marine loss for an American insurance
company; and the prevention of incalculable loss and inconvenience
lor hundreds of American industrialists through the issuance of advice
that there existed a possibility of their trade-marks being pirated
abroad.
1
Activity and vigilance have characterized the work of the Bu­
reau’s Foreign Commerce Service at its 32 posts abroad, where the
officers have responded to the needs arising from the changing
economic circumstances of the world. A great many requests from
American traders, for guidance and practical help, reached these
offices. The difficult nature of these requests often called for efforts
of peculiar vigor and discretion. Under the stimulus of a restored
intimacy of contact with American business, this Service has achieved
many outstanding results.
The Bureau has been one of the major instrumentalities con­
tributing to the success of the Government’s program of reciprocal
trade agreements, as described elsewhere.
The work of intensively studying the subject of domestic trade,
and the economic conditions incident thereto, has been continued.
The findings should prove valuable in pointing the way to solvinonumerous existing problems. The trade-reporting service is provid­
ing a continuously accurate picture of what is happening; the serv­
ice has been extended geographically, as well as with respect to the
numbei of sources of data, and new series of pertinent figures have
been instituted recently. Beporting work, formerly done by the
Federal Reserve System, is now a part of this service. The most
comprehensive manual of consumer marketing statistics ever assem­
bled is virtually completed. Vital aspects of our industrial markets
have been studied intensively. Installment credit has been the
subject of impartial study. Several illustrated publications, de­
signed to be especially helpful to persons who are operating rela­
tively small stores, have been issued.
Numerous studies of broad national significance in the domain of
economic research have been made. Statistics regarding current
business trends have been widened in scope, and are proving in­
creasingly useful. Long-term debt, national income, construction
activities, and similar topics of great importance to the Nation’s
economic welfare continue to be subjects of close scrutiny.
The organizational set-up of the Bureau itself has been thoroughly
considered, with a view to making the Bureau structure more logical
and consequently more intimately responsive to the needs of’ the
business community With this objective in view, several minor
impend haV6 been 6ffected alreadL wllile others, broader in scope,.

REPORT OF T H E SECRETARY OF COMMERCE

XXIII

AIK COMMERCE

The continued rapid growth of air transportation in the United
States within the past few years made it necessary for the Bureau
of Air Commerce to inaugurate a general modernization and im­
provement program of its aids to air navigation upon which air
operations have become increasingly dependent. In addition, it was
necessary to bring up-to-date the rules and regulations pertaining,
to aeronautics, and this was done by the promulgation of the Civil
Air Regulations.
The modernization and improvement program of the I ederal Air­
ways System was carried on during the year. The most salient fea­
ture of this program involved the conversion of all existing airway
broadcast and radio range stations to the simultaneous system of
transmission, by means of which a pilot may be furnished at the
same time radiotelephone information and radio range signals. De­
tailed engineering specifications were prepared covering all com­
ponents of a standard facility of this type, which incorporated all
the latest improvements, including a single transmitter, a new design
of tower radiator, and a lighter and more efficient means of sepa­
rating voice and range signals in simultaneous reception.
Considerable progress was made toward a solution of the problem
of blind approach to airports and the actual landing of aircraft by
instruments. A contract was awarded for the construction and instal­
lation of a complete instrument landing system, which will be installed
and tested at the Bureau’s radio test station at Indianapolis.
Development work was brought to a conclusion on a system of
teletype operation by radio. _
_
.
Further research was carried on into the utilization of the ultrahigh frequency bands for radio ranges, radio markers, and radio­
telephone broadcasts.
A new type of radio beacon, the omni-directional beacon, was de­
veloped, and specifications prepared and a contract awarded for its
further development and construction. . . .
.
Research was carried on regarding precipitation static phenomena
and the resultant interference to radio reception.
The Bureau operated eight airway traffic control stations, located
at Newark, Chicago, Cleveland, Pittsburgh, Detroit, Washington,.
Burbank, and Oakland. Each station is now in operation 24 hours;
per day. Arrangements were being completed for additional airway
traffic control stations at Atlanta, Fort Worth, Kansas City, St. Louis,,
and Salt Lake City.
.
An airport traffic control section was established for the purpose
of coordinating and standardizing airport control tower equipment,
operation technique, and personnel.
A number of new air-line operations and extensions to lines al­
ready in operation were inaugurated during the year, and these wereinspected by the air-line inspection staff of the Bureau.
Regular scheduled service was continued both across the Pacificto the Orient, and from the United States to Bermuda.
Survey flights were continued by American, British, and German
interests across the North Atlantic between the United States and
Europe. In connection with the establishment of this service the-

XXIV

REPORT OP T H E SECRETARY OF COMMERCE

Department of Commerce was represented on the Inter-Departmental
Committee on Civil International Aviation. This committee has
endeavored to make all agreements on the basis of reciprocity so that
American air lines can compete on an equal footing with foreign
air lines.
&
The Bureau continued its development work and research into
special problems ^affecting flight. A safety and planning program
was initiated which included 159 projects constituting the continu­
ing program of the Bureau. A number of these projects have been
completed and reports issued thereon.
A medical research laboratory was being installed at Kansas City
to handle special research into various problems of aviation medicine
affecting safety. Other special medical research projects were being
undertaken by various universities under contracts with the Bureau!
A section on private flying was established to consider the needs
of private flyers and all nonscheduled air-line interests.
The Bureau continued its participation in the "Works Progress
Administration airport development and construction program. On
June 30, 1938, a total of 1,315 airway and airport construction proj­
ects had been submitted for consideration, of which 560 had been
completed.
As a result of the air-marking program sponsored by the Bureau,
approximately 10,215 air markers have been constructed or repainted.
Transfer of the responsibilities of the Bureau of Air Commerce to
the new Civil Aeronautics Authority will be effected late in August
under the provisions of an act of Congress signed by the President
on June 23, 1938, thus bringing to a close a 12-year period during
which the development and regulation of civil aeronautics in the
United States was under the jurisdiction of the Department of
Commerce.
LIGHTHOUSE SERVICE

Outstanding achievements of the Lighthouse Service during the
past fiseal_year have fallen into two broad classifications; namely,
the administrative field, where considerable progress has been made
in bringing additional groups within the civil service and providing
for the selection of personnel of higher qualifications; and the engi­
neering field, where expansion in the total number of navigational
aids has been accompanied by important improvements in equipment,
tending to increase the effectiveness of the aids in promoting safety
at sea. The notable trends have been toward the use of more auto­
matic apparatus, making possible the establishment of a large numD6r of aids at points which, could not otherwise be so effectively
marked, the increased use of radio, both for the sending of signals
for use in navigation, and as a more effective communication means
within the Service; and the marking of an increased mileage of sec­
ondary channels for night as well as day navigation.
Of importance is the Executive order of March 29, 1938. placing
petty officers in both the deck and engine departments of all vessels
of the Service under the civil service. The measure affects upward
n f 325 vessel positions and also light-attendant positions resulting
m an increased number of employees under the civil service.
Another important measure affecting personnel administration is
th at presently to become effective, involving assembled educational

REPORT OF T H E SECRETARY OF COMMERCE

XXV

examinations for the lighthousekeepers and vessel officersr which will
result in higher standards, made necessary by the increasing amount
of technical skill which is required in a service becoming highly
mechanized. The probationary period for entrance into positions as
lighthousekeeper has been extended from 6 months to 1 year, thereby
making possible a more thorough demonstration of ability before
permanent appointment.
.
There was allotted to the Lighthouse Service, under the 1 ubiic
Works Administration Appropriation Act of 1938, the sum of $2,098,750, for which a special program had previously been submitted,,
covering construction undertakings in 28 States. With a total of
104 individual projects, a wide distribution of funds will result, as
many of the projects call for operations at two or more points, as
well as the purchase of considerable equipment. Upon the definite
announcement of the allotment, immediate steps were taken to com­
mence the entire program, in accordance with the intent of the act.
However, as the act received the President’s signature only 10 days
before the end of the fiscal year, preliminary planning only is reported
herein.
.
A further allotment of $1,680,000 for the construction and recon­
ditioning of lighthouse tenders and lightships was made by the Public
Works Administration at the end of the year.
.
Considerable progress has been made in the modernization of Light­
house Service facilities upon the Mississippi and tributary rivers.
The increasing draft of vessels, and the demand for more consistent
operating schedules, have resulted in a need for large numbers of
additional buoys at certain seasons. This alters the duties of light­
house tenders. This area also provides an important field for eco­
nomical and efficient use of modern lighting equipment. Changes,,
both in administrative methods and equipment, are necessary to meet
present conditions, and bring a large and important district more
closely into line with the organization of other lighthouse districts.
More effective service and certain economies are expected from a series
of servicing bases being established at centrally located points. The
tender equipment in this area has been considerably strengthened
by the commissioning of the new lighthouse tender Goldenrod, a vessel
specially constructed for the wrnrk now required in the maintenance
of aids to navigation on interior rivers.
The Missouri River, which is now under extensive improvement,
for navigation purposes, will soon have its navigational aids extended'
from Kansas City to Rulo, Nebr. Early availability of water from
the Fort Peck Reservoir will expedite the achievement of this desir­
able objective. Work on the remainder of the river as far as Sioux
City, Iowa, a total distance of 790 miles, is proceding rapidly, with
expectation of completion within 3 years._
This expansion, when considered in conjunction wuth the increasing
use of buoyage on navigable rivers and the near completion of pooling
operations in the upper Mississippi, clearly emphasizes the desirability:
of supplementing the tenders in the fifteenth lighthouse district. It
is proposed, therefore, to construct at once two additional tenders of
this special type. At the close of the fiscal year the total number of
aids to navigation maintained by the Lighthouse Service^ was 28,758,
a net increase of 650 over the previous year. Included in the addi­

XXVI

REPORT OF T H E SECRETARY OF COMMERCE

tional aids established, 405 were lighted aids and 54 were sound
signals.
The Department of the Interior cooperated in providing new aids
to navigation for three of our remotely situated islands in the Pacific
Ocean, namely, Howland, Baker, and Jarvis Islands.
During the fiscal year 10 new radiobeacon stations were established
and 2 were discontinued, thus resulting in a net increase of 8 radio­
beacon stations. Approximately 30 percent of the marine radiobea­
cons of the entire world belong to the United States of America.
1 his type of navigational aid has increased numerically with a greater
rapidity during the last 10 years than any other type maintained by
the Service. The increase exceeds 100 percent.
A new departure in the field of radio is the establishment of a
fully automatic, unattended, low-power radiobeacon at St. Ignace
.tv Coh -T118 *s Particularly useful to_ the ferries which operate across
the Straits of Mackinac. This radio aid, termed a “marker radiobeacon,” operates continuously.
Synchronized radiobeacon and sound-in-air signals, for distance
finding, have increased in number, there now being 91 such stations
m operation. Communication facilities have been extended also to
include important isolated ships and stations.
Particularly valuable to mariners are the increased facilities which
have been provided for broadcasting, by radiophone, of important and
emergency information regarding aids to navigation, weather condi­
tions, and other hydrographic matters. In the collection and dis­
semination of this information the Service has received the valued
^operation °f the Kayy Department, the Coast Guard, and the
Weather Bureau.
ENFORCEMENT OF THE INSPECTION AND NAVIGATION LAWS

■D?ninL ltS-seventy-f ourth. an(l seventy-fifth sessions, the Congress
enacted 96 pieces of legislation which directly or indirectly affected
the work of the Bureau of Marine Inspection and Navigation. This
egislation added materially to the Bureau’s activities and broadened
its jurisdiction by extending the inspectional laws to include certain
classes of vessels not heretofore subject to inspection; for example
seagoing vessels of 300 gross tons and overpropelled by internalcombustion engines and tank vessels engaged in carrying inflam­
mable and combustible cargo in bulk. In order to permit a mnre
umiorin and effective administration of these new provisions of law
the Bureau has prepared, for submission at the next regular session
of Congress necessary amendments to facilitate their application to
the broad fields of vessel construction, equipment, operation, and
manning to which they apply.
’
Substantial progress has been made by the Bureau in the planning,
drafting, and promulgation of approved rules and regulations for
the adequate protection of life and property at sea through the estab­
lishment of additional safeguards against fire, improved machinery,
and equipment, and better trained and more efficient officers and
•crews The effectiveness of this action is manifest in statistics which
show that only one passenger life was lost during a period of more
than 3 years, due to casualty on inspected vessels of our merchant

REPORT OP T H E SECRETARY OF COMMERCE

XXVXI

¿marine. The Bureau’s corps of inspectors and the personnel of
the merchant marine share this fine record of safety.
During the year compliance with the regulations was enforced
■concerning automatic-sprinkler systems and other fire-protection
•equipment on board passenger vessels. The mandatory provisions of
the law obliged the Bureau to revoke the certificates of inspection of
several passenger vessels, necessitating the placement of these vessels
in a restricted service. During the year vessels were inspected for
compliance with subdivision and stability requirements, and tank
vessels were inspected for compliance with amended rules and regu­
lations. Also, the work has been continued incident to the prepara­
tion of rules and regulations for the carriage of dangerous cargoes,
and the revision of ocean and coastwise regulations. An intensive
•campaign has also been conducted for drilling and instructing crews
of passenger and excursion vessels in the performance of their duties.
Thorough fire drills and lifeboat drills held at frequent intervals by
local and assistant inspectors on the occasion of regular inspections
and reinspections of passenger vessels, together with frequent de­
tailed drills and inspections by traveling inspectors, have resulted
in a more efficient working organization of masters, officers, and
•crews.
Another major accomplishment is the establishment of modified
rules of procedure for the investigation of marine casualties and acci­
dents. The reports submitted by the three classes of boards investi­
gating casualties involving loss of life, major accidents not involving
loss of life, and accidents of a less serious nature, and the decisions
rendered thereon by the Director, have reduced greatly the number of
disputes heretofore occurring on shipboard and have resulted in a
higher degree of efficiency in the manning and operation of our
merchant marine. Through the medium of this procedure ship­
owners, masters, and vessel personnel have learned that the Bureau
•expects and requires strict observance of the laws.
Through bulletins, daily newspapers, and radio the Bureau has
endeavored to make the public aware of the dangers that attend the
handling of small pleasure craft, whether driven by sail, motor,
oars, or paddles, and has specified proper methods for avoiding the
■hazards common to this form of transportation and recreation.
I t has been felt for some time that the present motorboat law,
which was enacted on June 9, 1910, is unsatisfactory under present
conditions. A bill to repeal this law was introduced in the last
session of the Seventy-fifth Congress, and it is thought that the bill
should also be considered by the next Congress.
The act of June 25, 1936, later amended by the act of March 24,
1937, provided for the issuance of certificates of service and efficiency,
and Continuous discharge books, or certificates of identification to
seamen. After nearly 2 years’ experience in the administration of
those laws, it is believed that further amendment is necessary to
simplify procedure and provide for better administration.
The Bureau approves all plans and specifications for the construc­
tion of new vessels, and major alterations to existing vessels subject
to inspection, to insure that all the safety features recognized as
being essential to safety of life at sea will be adopted. It also super­
vises the marking of both subdivision and strength load lines on all

XXVIII

REPORT OP T H E SECRETARY OP COMMERCE

ocean, coastwise, and Great Lakes merchant vessels of 150 gross tons
and over, and maintains a check on the sailing drafts of these vessels
to insure that the applicable load lines are not submerged. The
building program of the Maritime Commission has made much
progress during the year, and this Bureau has reviewed plans and
specifications of the vessels building under this program. This alone
has involved examination and approval of many hundreds of plans.
SURVEYING- AND MAPPING

The Government and the engineering profession lost one of its.
outstanding leaders with the death, on November 25, 1931, of Bear
Admiral Baymond Stanton Patton, while Director of the United
States Coast and Geodetic Survey. He made many contributions to
this service throughout his career. Rear Admiral Lee Otis Colbert
was appointed April 8, 1938, as Director of this Bureau.
Constantly confronted with increases in calls for accurate, livecharts and related products, this Bureau is making every effort, with
its limited staff and vessels, to meet the exacting demands of today.
The data made available, which are being utilized to an ever-increas­
ing extent, have a tangible dollars-and-cents value for every citizen.
Sales of nautical and aeronautical charts, two of this Bureau’s
best-known products, showed an increase of 7 and 5 percent, respec­
tively, over the previous record year 1937. These gains indicate the
steady growth in number of yachts, motorboats, and aircraft in use.
_Because of the great change in navigation requirements, much addi­
tional work was continued during the year in replacing with new
hydrographic surveys the patch-upon-patch charting of United States
waters.
Today, in contrast with the leisurely light-draft sailing vessels
of early days, there are scores of important harbors where large, deepdraft vessels must proceed by the shortest possible route, regardless
of weather and visibility. This development has meant a steadily
growing demand for surveys in greater detail, and for their extension
seaward.
The complete series of 87 sectional aeronautical charts, embracing
the entire country, is now available. Two of the series of 6 direction­
finding charts and 4 of the series of 17 regional charts both for long­
distance flying, have also been issued. As in the case of nautical
charts, revised editions are frequent in the interests of human safety.
Progress has been made in completing the country’s geodetic control
surveys. Ultimately, the entire United States will be divided into
small areas, each outlined by a number of selected points or stations
whose exact geographical locations are matters of record, so that it
will be possible to control the accuracy and reduce the cost of subse­
quent detailed surveys in these areas.
In air photography, the remarkable nine-lens camera recently developed by the Coast and Geodetic Survey has proven its worth. In
areas of flat terrain, an increase in efficiency of 20 percent has been
attained, and extension of the same efficiency to areas of considerable
relief by procurement of supplemental instruments is anticipated.

REPORT OF T H E SECRETARY OF COMMERCE

XXIX

FISHERIES

During the calendar year 1937, the fishing industry maintained
approximately the same economic level as in the preceding year.
Available data show that the unit values of many processed fishery
products increased during the year, and that the total value of canned
fishery products and byproducts was the largest of any year on
record. However, prices for frozen fishery products and some species
•of market fish decreased.
The total commercial catch for the United States, including Alaska,
amounted to 4,840,200,000 pounds, valued at $92,823,000. There were
129,000 commercial fishermen actively engaged in fishing operations
while an estimated 500,000 persons found employment in related
activities.
In the collection and dissemination of statistical information, plans
are being developed to make statistical canvasses with sufficient fre­
quency to include all of the major geographical sections annually with
the exception of the Mississippi River area.
Special attention was given during the past year to Japanese fishing
operations in Bristol Bay, Alaska. The problem was made the subject
of diplomatic negotiations between the Department of State and the
Japanese Government. As a _result,_assurances were obtained from
Japan that it would suspend its official survey of the salmon fishery
in Bristol Bay and would issue no licenses to vessels to take salmon
in those waters.
Studies of salmon in Alaska were continued for the purpose of
regulating fishery operations to assure an ample escapement of brood
fish for maintaining the runs without impairment. _Although _the
runs of salmon as a whole were lighter in 1937 than in the previous
year, they were better than average, and the catch was the third
highest on record.
The fur-seal herd, which has its breeding grounds on the Pribilof
Islands in Bering Sea, now numbers 1,839,000 animals, and 55,180
pelts were taken last year. The herd, once threatened by extinction,
■contains three-fourths of all the fur seals in the world._
Technological investigations to increase the economic value of the
products of fisheries were continued. Previous investigations have
played an important part in the development of quick-freezing
methods and in the use of halibut liver oil as a source of vitamins
A and D.
Through a newly established Market News Service operating in
New York City and Boston, producers and buyers are kept in­
formed of conditions at terminal and producing points and can
govern sales or purchases accordingly.
The catch of shad on the Atlantic coast having declined 80 percent
in half a century, an investigation was begun in the fall of 1937 to
discover why the numbers of this choice food fish have been so
seriously reduced, and to outline a system of management for the
restoration of the fishery. Because the catch of shad in the Hudson
River, which had declined to low levels, recently made a spectacular
recovery under careful regulations promulgated by the State of

XXX

REPORT OP T H E SECRETARY OP COMMERCE

New York, particular study is being made of this area to determine'
the conditions necessary for maintaining the runs at a given level
of abundance. Investigations of the effectiveness of natural and
artificial propagation are an important part of the shad studies;
along the South Atlantic coast.
Fish-cultural operations resulted in the distribution of 7,822,000,000"
fish and eggs, a reduction of 1.2 percent from last year. Among thecontributing factors to the reduction in output were the flooding
of the Louisville, Ky., hatchery in the spring of 1937 which affected
the 1938 production, and the handling of a smaller number of rescued
fish resulting from development of the 9-foot channel in the upper
Mississippi River.
Although 90 hatcheries were in operation, the demand for gamefishes for stocking waters on Federal lands increased to such extent
that many applications for fish could not be filled. Five new hatch­
eries, in process of construction, will be utilized for the propagation
of game species. At the same time, efforts are being made to de­
velop rearing facilities to grow game fish to a larger size before
thev are released.
Studies during the current year in the field of pollution haveyielded a better understanding of the action of certain industrial,
pollutants, particularly dye wastes, pulp and rayon effluents, petroleum waters, and mine wastes. Many manufacturers have volun­
tarily cooperated with the Bureau in the practical application of
its findings to definite pollution problems and have followed recom­
mendations for their correction.
On the basis of some 3 months of actual operation it is generally
conceded that the fishways installed at Bonneville Dam by the War
Department, with the cooperation of this Bureau, have proved
successful.
During the period from May 1 to July 1, a total of 33,194 chinook
salmon, 10,020 steelhead trout, and 18,761 blueback salmon passed
oeAnir 'n116 ^ ways>according to official counts. In addition, some
* rr v
\ Were1counted- Frequent inspections below the dam
established the fact that there was no congestion or delay the fish
finding the entrances and making the ascent readily. The number
of fish which reached Bonneville, while smaller than expected was
not surprising m view of the fact that the spring run in the ’river
was light.
While observations on the downstream passage of young salmon
are more difficult because of the fact that the migration of fingerlings takes place chiefly at night, a sufficient number of young have
been observed in the fishways and fingerling bypasses during the
fnt 0 rWa-r ? nt the belief that the young fish have been making usethe facilities provided for their safe passage.
Although New England oystermen have attempted for many years
inriQ Rohein gr0],nds of starfish by dredging or other means, these ef­
forts have been largely futile, as may be seen from the fact that in 1937'
virtually the entire early set of oysters was destroyed by starfish. The
method for r w T r '1, t y’01ifl! lab?r.atory and field studies, a chemical
method for controlling starfish and has provided oyster growers with
hp K T fd? °fy
?Samst. «»is fiwMy destructive enemy. Careful
tests indicate that calcium oxide is an effective agent for the destruc­
tion of starfish on the oyster beds without injury to the oysters. In-

REPORT OF T H E SECRETARY OF COMMERCE

XXXI

vestigations are being continued to insure the use of the chemical
under such conditions that injury to other bottom organisms may be
avoided.
Exploratory trawling has disclosed the presence of large schools of
mature shrimp in the offshore waters of the Gulf of Mexico. Com­
mercial exploitation of these shrimp has relieved the drain on reserves
of immature shrimp inshore.
The fundamental purpose of marine commercial fishery research is
to provide information on the condition of the various stocks of fish,,
and to aid in foretelling periods of abundance or scarcity. With such
knowledge, it is possible to maintain the supply at productive levels
through wise utilization. Commercial statistics alone are inadequate.
Studies are urgently needed to serve as a basis for predicting the fu­
ture abundance of mackerel and for safeguarding stocks of haddock
from depletion. Progress is seriously impeded by lack of a suitable
fishery research vessel bn the Atlantic coast. The Pacific coast
investigations also require a deep-sea research vessel.
NATIONAL STANDARDS

An important development of the past year at the National Bureau
of Standards was the inauguration of the research program on build­
ing materials and structures with special reference to low-cost housing,,
for which Congress made an appropriation of $198,000. In this work
practically every division of the Bureau has taken part. The method
of approach selected is to treat the house as a unit, so that in a test
of one element the relation between that element and all other por­
tions of the structure must be taken into account. The progress of
this work is reported in a new series of publications entitled “Building
Materials and Structures.”
Satisfactory progress has been made on the redetermination of the
international electrical units in terms of the absolute units. In con­
nection with the new system of photometric units, the luminous in­
tensity of a black body at the iridium point has been determined in
“new candles,” and certain electric lamps have been measured in the
same terms to serve as working standards.
The broadcasting of standard frequency radio signals has been ex­
panded so that the service now includes radio frequencies, seconds in­
tervals, and the American standard of musical pitch.
The Twenty-eighth National Conference on Weights and Measures,,
held at the Bureau on May 31 to June 3, was attended by 250 people,
including 140 State and local officials. Tire Bureau presented a special
report on the tests of vehicle scales which it is making in cooperation
with the States. The annual conference of State Public Utility Com­
mission Engineers was also well attended, 21 States and the District
of Columbia being represented. Through these conferences the Bu­
reau’s findings are made available to State and municipal regulatory
bodies.
As a contribution toward more precise knowledge of the values of'
the physical constants, the Bureau has redetermined the heat of com­
bustion of carbon, using natural and artificial graphite and diamond.
The value thus secured is an improvement over that heretofore avail­
able and in line with present-day scientific requirements.

XXXII

REPORT OP THE SECRETARY OP COMMERCE

The effect of different kinds of lubricating oils on the performance
of aviation engines is being studied for the Navy Department. In ­
spection forms have been prepared for use at the Bureau and in indus­
try, so that comparable data from many sources will be available on
the condition of aviation engines as determined at periodica]
inspections.
Progress has been made in the standardization of color names for
drugs and other pharmaceuticals. This work is in charge of a re­
search associate representing the American Pharmaceutical Associa­
tion, the United States Pharmacopoeial Revision Committee, and the
Inter-Society Color Council.
New equipment recently constructed has made possible the precise
measurement of X-ray potentials up to 400,000 volts. Plans are
now being prepared for a new high voltage laboratory, where im­
proved facilities will probably permit measurements up to 1,000,000
volts.
Eight new standard samples of metals, alloys, and other substances
were added to the Bureau’s stock, making 112 now available for use
in the control of analyses in commercial laboratories.
A research was completed on cross connections in plumbing sys­
tems. The printed report on this subject should furnish the techni­
cal data needed by city officials for formulating regulations to pre­
vent accidental connection between pipes in buildings carrying im­
pure water and water for human consumption.
Considerable attention has been paid to methods for evaluating
the wearing quality of materials, and particularly carpets. Before
any wear-testing machine can be used as a basis for the purchase
of materials, the variables of the machine test must be standardized.
Therefore, the wear of carpets on the machine designed some years
ago by the Bureau is being compared with their wear in service.
In order to furnish such a comparison, 25 different kinds of carpets
have been laid in one strip in the hall of a Government building,
and the number of people walking over them is recorded by a
photoelectric counter. _The carpets are cleaned frequently and their
rate of wear is determined by measurements of their thickness every
few days. _ So far the results indicate good agreement between service
and machine.
The Silver Producers of America have continued their research
on new industrial uses for silver, the project having its headquarters
at the Bureau. The preliminary program, under which a great num­
ber of leads were followed up, has been completed and the most
promising lines of work have now formed the basis for a smaller
number of more elaborate research projects. The use of silver for
electrical contacts, in bearings of high-grade machinery, and for
lining chemical apparatus and certain food containers seems likely
to become accepted practice.
Several years’ work has culminated in the production of pure
iron. Spectrographic examination of the finished ingots has shown
minute traces of copper as the only metallic impurity. Other work
on the ferrous metals has resulted in the extension of the fusion-invacuo method to the determination of oxygen in alloy steels.
A great deal of attention has been paid to aircraft materials,
particularly the effect of corrosive atmospheres and low temperatures.

REPORT OF THE SECRETARY OF COMMERCE

XXXIII

The importance of heat treatment in the case of high strength
.aluminum alloys has been brought out.
Apparatus for measuring vibration in concrete has been con­
structed, and appears to give reliable indications of the particle
velocity’and amplitude when concrete is poured by the vibration
method.
Nearly 6,000,000 barrels of cement was tested for the Government
by the Bureau’s branch laboratories at Allentown, Pa.; Denver,
•Colo.; San Francisco, and Riverside, Calif.; and Seattle, Wash.
Since the Bureau’s work has indicated that the dense types of stone
are not appreciably affected by frost, studies have been started to
determine the effects of other w’eathering agents on marble and
granite. A procedure using sulphur dioxide gas appears to deteri­
orate marble in such a way that the final appearance of the stone is
much like that found in old buildings and monuments.
During the past year an increased percentage of Simplified Practice
Recommendations have been reaffirmed without change, showing ap­
parently that in several industries a fair degree of stability has been
reached. Twenty-nine recommendations were surveyed and reaf­
firmed, several of them without change. A total of 14 new and re­
wised Simplified Practice Recommendations were made available dur­
ing the year.
.
Commercial standards are improving consumer confidence m the
products and are providing a uniform basis of competition. They
fit in well with the Bureau’s certification plan in which the quality
•of a product is guaranteed to comply with some nationally recognized
specification or commercial standard.
A new edition of the Code for Protection Against Lightning, as
well as a revised Handbook for Weights and Measures Officials have
been issued. The revision of the National Electrical Safety Code
and the Code for the Protection of the Head, Eyes, and Respiratory
Organs is being pushed, and printed copies of these should be avail­
able early in the coming year. The total number of sources of sup­
ply of commodities covered by Federal Specifications and Commer■cial Standards was increased to 614. These lists are issued in mimeo­
graphed form in separate parts, each of which covers closely related
products. They are supplied to agencies making purchases out of
tax monies, on request.
CENSUS

As the impartial, scientific fact-gathering agency of the Federal
■Government, the Bureau of the Census occupies a unique position.
For nearly 150 years “the census” has provided a nonpartisan, factual
■account of the Nation’s social and economic life.
During the past 5 years there has been a particularly rapid growth
•of o-overnmental activities involving a direct and detailed knowledge
•of population, agriculture, manufactures, business, etc. Witness the
immediate need for census data arising from the social security and
unemployment relief programs, the agricultural adjustment and.
social conservation programs, minimum wage legislation, etc. Each
■of these major advances in social and economic welfare have been
implemented by census statistics, for only these compilations were
1.08928— 38------3

XXXIV

REPORT OF THE SECRETARY OF COMMERCE

complete in their coverage of the Nation, regular in occurrence, and
comparable from decade to decade.
AH types of census data have been demanded for the direct admin­
istration of these programs. For example, population data alone
provides a basis for the allotment of funds to States, cities, and coun­
ties ; for estimating the number of persons eligible for benefits ; for
measuring the effective coverage of a particular program ; for funda­
mental research bearing on the effect of changes in present legisla­
tion, or administration. Similar administrative and legislative needs
are met by census facts concerning agriculture (number of farms,
tenure, value, mortgage status, farm labor, acreage in each crop),
manufactures (production of individual commodities, number of em­
ployees, wages, purchase of raw materials, inventories), retail and
wholesale distribution, etc.
The importance of adequate preparation and planning for the
1940 decennial census is emphasized by these new needs for and uses
of census data. This planning and preparation has been a major
activity of the Bureau during the past year. A preliminary farm
schedule for 1940 was tried out in several counties during the past
year in cooperation with the Department of Agriculture. The re­
sults of this trial census are now being analyzed to determine the
relative accuracy of replies obtained on questions, the reaction of
farmers to certain questions, the time required for enumeration, the
most rapid method of checking and compiling the answers, etc.
These analyses will result in the adoption of such questionnaires and
methods as will rapidly and economically produce complete and accu­
rate farm figures.
New techniques for the rapid compilation of the 1940 population,
employment, and unemployment statistics have been developed, and
were used on a large scale in connection with the 1937 unemployment
registration. The speed and accuracy with which the more than
13,000,000 schedules of this registration were compiled by the Bureau
for the Administrator of the Unemployment Census is an evidence
of the success of these improved methods.
The preparation of the thousands of detailed maps which will be
used in 1940 to insure a complete coverage of all persons, farms, fac­
tories, and business establishments, but without any chance of dupli­
cation of enumeration, has been under way for more than a year.
Each of the 140,000 enumeration districts must have its own map
showing the exact boundaries of the area to be canvassed. The enu­
meration district maps for each State must show the latest bound­
aries of all counties, cities, and even wards. Indeed, in large cities
each block is distinctly marked and identified with a number.
The reorganization of the Division of Manufactures has been com­
pleted. The collection, tabulation, and publication of the Bureau’s
monthly, quarterly, and annual industrial and business reports are
now coordinated with the biennial census of manufactures. Studies
are now under way for the improvement and extension of the current
data, and the increasing of the timeliness of these reports.
To meet the demand for more current data on business activity, a
sample survey of retail and wholesale trade during 1937 and the first
two quarters of 1938 is now under way. Reports from a large sam­
ple of independent and chain retail and wdiolesale establishments

REPORT OE THE SECRETARY OP COMMERCE

XXXV

are being collected. These reports will be tabulated by type of estab­
lishment with the 1935 census reports for identical establishments.
This will give percentage change by quarters for January 1937 to
June 1938, with a 1935 base.
Reports showing the receipts and expenditures of State govern­
ments during 1937 are now being compiled. The last previous re­
ports of this type were for 1931. This inquiry is now on an annual
basis and, together with the reports on financial statistics of cities,
provides the only consolidated statement of governmental finance,
for these units of Government. Because of differences of classifica­
tion of accounts between States (and cities) it is necessary to makean entirely separate compilation of receipts and expenditures in
order to attain comparability.
PATENTS

Interest in the American patent system has been more widespread
in the last 12 months than at any time in two generations. I t was
one of the subjects of the President’s message to Congress on Janu­
ary 3, 1938. A score of bills contemplating vital changes in the
statutes were before the Seventy-fifth Congress. Among these leg­
islative proposals was a bill providing for the compulsory licensing
of patents; a measure prohibiting the patenting of “labor-saving”
machines, and another looking to the establishment of a single court
of appeals having national jurisdiction and final authority in the
determination of questions arising out of patent grants. The passage
of the latter bill was unanimously recommended by the Patent Com­
mittee of the Senate, but an objection to its consideration in the latter
days of the session prevented its enactment by the Seventy-fifth
Congress.
A temporary national economic committee, constituted by the same
Congress, was empowered and directed to investigate, among other
matters, “the effect of existing * * * patent and other Govern­
ment policies upon competition, price levels, unemployment, profits,
and competition.” The Commissioner of Patents and' his associates
have put themselves at the disposal of this committee and are pre­
pared to furnish facts and recommendations with regard to improve­
ments in the present statutes. The special Patent Office Advisory
Committee, in collaboration with the Commissioner and other officials,
is continuing its studies of some of the problems with which the
economic committee is concerned, and at the same time is pursuing
its work for the betterment of the system as a whole, including purely
intramural procedure. The advisory committee, appointed by the
Secretary of Commerce in July 1933, has already devoted its atten­
tion to the so-called suppression and pooling of patents and one of
the cures advocated for the abuses imputed to these practices—com­
pulsory licensing. I t is expected that the advisory committee’s
information and viewpoints will be welcomed by the temporary na­
tional economic committee.
The number of applications for patents (including designs) and
for the registration of trade-marks, prints, and labels filed in the year
ended June 30, 1938, was 92,018, exceeding by 2,038 the total received
in the same relative period of 1937. Applications for patents other

XXXVI

REPORT OF THE SECRETARY OF COMMERCE

. than those covering designs were 66,050, an excess of 2,278 over the
aggregate for 1937, and the largest total since 1932. A substantial
increase was recorded also in the number of applications for design
patents. These were 8,014, or 1,397 more than in 1937, and the
greatest annual aggregate in the history of the Office.
^Receipts for the fiscal year 1937-38 were $4,551,298.87, an excess of
$74,385.62 over expenditures. For the last 5 years the annual sur­
pluses have averaged $122,566.
. Notwithstanding the large increase in the number of new applica­
tions, and without enlargement of the technical personnel, final dis­
position was made of 60,168 cases in 1937-38, against 58,091 in
1936-3/. At the same time, however, the cases awaiting action by
examiners were 45,723, compared with 38,121 at the close of the pre­
ceding year. The total of applications pending on June 30, 1937,
was 109,735. On June 30,1938, there were 116,041.
Classification of patents has progressed as satisfactorily as the
funds and personnel available for the task would permit.' In the
interval since the last previous report four new classes (8, 68, 124,
and 260) comprising 35,806 original patents and 15,011 cross refer­
ences have been revised. In addition, 26 subclasses of class 152 were
abolished and 251 new subclasses were established. The new sub­
classes in class 152 embrace 11,182 original patents and 9,666 cross
references. There were established 282 subclasses in existing classes.
These new subclasses contain 12,263 patents and 6,168 cross references.
Notable among the statutes affecting the Patent Office enacted by
the Seventy-fifth Congress was one making it unlawful for any per­
son not duly recognized to practice before it to hold himself out as
a patent solicitor, patent agent, or patent attorney. Violation of
this statute is punishable by a fine of from $50 to $500.
Public Act No. 586, also passed by the Seventy-fifth Congress,
permits any natural or juristic person, including nations, States,
municipalities, and the like, exercising legislative control over the
use of a collective trade-mark to register it by procedure similar to
that governing the registration of other marks. Until the enactment
of this provision organizations controlling the use of a trade-mark by
a number of manufacturers or dealers could not in general register
a trade-mark.
Of 226 petitions to give pending applications special status with
the purpose of expediting their prosecution 104 were granted. Sixtynine of these, in turn, were granted in the interest of prospective
manufacture necessitating the investment of capital and the employ­
ment of labor. The number of “petitions to make special” were
fewer by 110 in 1937-38 than in the preceding year.
FOREIGN-TRADE ZONES

As of June 30, 1938, the Foreign-Trade Zones Board, composed of
the Secretary of Commerce, chairman, the Secretary of the Treasury,
and the Secreta,ry of War, has issued two grants‘for the establish­
ment of foreign-trade zones, in accordance with the provisions of
the act of Congress approved June 18, 1934 (48 Stat. 998, 1003).
Under the terms of the first of these grants the city of New York
inaugurated its zone on February 1, 1937, at Stapleton. Staten Island.

REPORT OF THE SECRETARY OF COMMERCE

XXXVII

The other grant, issued to the State of Alabama on September 1,1937,
will result in the opening of a zone at Mobile, Ala., by the Alabama
State Docks Commission, in July 1938.
Pending receipt of further necessary information, there are held
in abeyance applications for grants from the board of State harbor
commissioners at San Francisco, from the American Foreign-Trade
Zone, Inc., at Jersey City, N. J . ; and from the Puerto Kican insular
government for a zone at San Juan.
The Board has formulated instructions for the preparation, post­
ing, and filing of schedules covering the rules, regulations, service
rates and charges, and privileges within each specific zone. Such a
schedule has been issued by the operators of the zone at Mobile, and
one for the New York zone is nearing completion.
Also in the process of formulation by the Board are detailed in­
structions to the zone operators for the installation of a uniform
system of records and accounts, and the institution of a uniform
method of annual reports of operation and fiscal condition, for the
immediate use of the Board in keeping the Congress fully informed
concerning the activity of each and every active zone. These instruc­
tions will be placed in effect before the end of the calendar year 1938.
The Board reprinted the regulations governing the establishment,
operation, maintenance, and administration of foreign-trade zones
in the United States. I t was possible to include in this reprint not
only the orders which have been issued since the date of the original
regulations but also orders which are effective from January 19•■58.^
The operators of the New York zone have repaired existing facili­
ties and have developed plans for new construction which place at
the disposal of users every benefit of a modern terminal. The avail­
ability of suitable facilities and the organization of a competent staff
have led the operators to undertake an aggressive campaign to indi­
cate to prospective users the advantages of the zone. The response
to this activity has been very encouraging, and the facilities thus
provided have been extensively employed for the handling and stor­
ing of merchandise. It is especially notable that during a period of
decreased imports, business coming to the New York zone continued
to increase.
Through the medium of the zone, hitherto unknown business has
been brought to the United States, and American labor has benefited
thereby. For instance, there has come from South America canned
beef to be prepared for distribution in the United States. American
labor has repacked it in lighter containers of American manufac­
ture and has prepared it for sale by attaching labels and opening
keys. American labor has also cured and prepared for American
and foreign markets large shipments of Brazil nuts received from
South America. These are but two examples of business, both old
and new, to the port, that the New York Foreign-Trade Zone is
attracting to itself and to the United States.
W ith the inauguration of a zone at Mobile, both the Atlantic and
Gulf coasts, together with their hinterlands, will have available the
facilities of customs-guarded areas wherein foreign merchandise may
be stored, manipulated, and mixed with domestic products for im­
portation after payment of duty, or reexportation without duty
payment.

XXXVIII

REPORT OE THE SECRETARY OE COMMERCE

BUSINESS ADVISORY COUNCIL

Since its organization in June 1933, under the provisions of the
enabling act of the Congress authorizing the Department of Com­
merce “to foster, promote, and develop foreign and domestic com­
merce,” the Business Advisory Council, composed of representative
leaders of industry and commerce, continues to devote itself to ques­
tions referred to it by the President, or by the Secretary of Com­
merce, in addition to its regular activity as a clearing house and
centralizing agency for industrial views on governmental matters
which affect business.
This work has been of real value in the conduct of the Depart­
ment s affairs, because of the effect it has had in furthering coop­
eration between Government and business. Business and the
Department alike are gratefully aware of the good that has
emanated from the deliberations of this body of advisors.
Initially the Council’s functions were limited primarily to an ad­
visory relationship to the Department of Commerce, but to an in­
creasing degree committees of the Council have reported directly to
the heads of other Federal agencies.
Fifteen formal reports in documentary form emanated from the
Council during th.6 year. I t is known definitely that these reports
are proving eminently beneficial in the fields tliey cover. The De­
partment is confident that this vigorous group of practical men will
continue to produce constructive suggestions in these and other
important fields.
In acknowledgment of the hearty cooperation of these business­
men, their generosity in devoting valuable time to these important
conferences at the Department despite the exacting, demands of their
own affairs and in defraying their own expenses without Govern­
ment reimbursement in any respect, I believe that the names of the
members of the Council should be recorded in this report. W. A.
Harriman is at present chairman of the Council.
General C ouncil m em bers
*F. B. Adam s, New York, N. Y.
W illiam L. B a tt, P h ilad elp h ia, P a.
Jo h n D. B ie te rs , Toledo, Ohio.
Ja m es F . B row nlee, L ouisville, Ky.
* C harles A. Cannon, K annapolis, N. C.
W. Dale Clark. Om aha, Nebr.
♦W illiam L. C layton, H ouston, Tex.
D avid R. Coker, H artsv ille, S. C.
W. H o w ard Cox, C in cinnati, Ohio.
W illiam H . D an fo rth , St. Louis, Mo.
*R. R. D eupree, C in cin nati, Ohio.
♦W illiam C. D^ckerm an, New York, N. Y.
♦Gano D unn, New York, N. Y.
R. G. E lb e rt, New York, N. Y.
W. Y. E llio tt, Cam bridge, M ass.
Jo h n H . F ah ey , W ashington, D. C.
T. A u stin Finch, Thom asville, N. C.
R obert V. F lem ing, W ashington, D. C.
♦Jam es F . F o g arty , New York, N. Y.
♦M. B. Folsom , R ochester, N. Y.
♦C larence F ra n cis, New York, N. Y.
H . B. F riele, S eattle, W ash.
A. P. Greengfelder, St. Louis, Mo.
♦R olland J . H am ilto n , New York, N. Y.
H en ry I. H arrim an , B oston, M ass.
*W. A. H a rrim a n , New York, N. Y.
H e n ry H . H eim ann, New York, N. Y.

♦Member of the executive committee.

C harles R. Hook, M iddletow n, Ohio.
W illiam A. J u lia n , W ashington, D. C.
H. P . K endall, B oston, M ass.
F re d I. K ent, New York, N. Y.
♦Delancey K ountze, New York, N. Y.
M orris E. Leeds, P h ilad elp h ia, P a.
C. K. L eith, M adison, Wis.
P au l W. L itchfield, A kron, Ohio.
E a rl M. McGowin, C hapm an, Ala.
♦George II. Mead, D ayton, Ohio.
D. M. N elson, Chicago, 111.
J . C. Nichols, K an sas City, Mo.
♦George A. Sloan. New York, N. Y.
E. T. S ta n n a rd , New York, N. Y.
E. R. S te ttin iu s , J r ., New York, N. Y.
R. D ouglas S tu a rt, Chicago, 111.
G erard Swope, New York, N. Y.
W a lte r C. Teagle, New York, N. Y.
J . T. T rippe, New York, N. Y.
T hom as J. W atson, New York, N. Y
♦Sidney J . W einberg, New York, N. Ÿ.
Sam uel P . W eth erill, P h ilad elp h ia, P a.
W. H. W heeler, J r ., S tam ford, Conn.
A. D. W hiteside, New York, N. Y.
H . H y er W hiting, S an F rancisco, Calif.
S. Clay W illiam s, W inston-Salem , N. C.
R. W. W oodruff, W ilm ington., Del.

REPORT OF THE SECRETARY OP COMMERCE

XXXIX

FISHERY ADVISORY COMMITTEE

The Fishery Advisory Committee continued in service throughout
the year. Representatives of the fishery industry, who serve without
pay and act in an advisory capacity to the Secretary of Commerce
and the Commissioner of Fisheries, comprise its membership, lire
practical experience of representatives of the industry has been par­
ticularly helpful in developing and revising programs m order to
more definitely meet the needs of the industry, the public today, and
the Nation’s future requirements.
. .
Many problems of the fishery industry are continuing ones, and
when solutions are available the remedies cannot be readily applied.
The fishery resources, both marine and fresh water, are subject to
depletion by overfishing and wasteful practices. Production varies
also from economic and natural or biologic causes. Some of these
factors can be controlled or otherwise utilized to advantage. The
fisheries are, therefore, subject to management, and a long-time pro­
gram of investigation is being developed to guide management
practices.
.
During the year the committee gave a great deal of time to con­
sideration of means for improving fishery-management practices;
for promoting the more extensive use of fishery products, including
the popularizing of abundant but little-known species; and for other­
wise maintaining fisheries activities in the United States upon a
permanent and active basis. The Department acknowledges the
splendid assistance of the Fishery Advisory Committee^ in making
possible many of the recent developments in the activities of the
Bureau of Fisheries.
The names of the members of the Fishery Advisory Committee
follow. Gardner Poole is chairman.
G reat Lalces and In la n d W a terw a ys R egion
O. L. Cake, K an sas C ity, Mo,
J ohn R. S c h a c h t , P h ilad elp h ia, P a.
♦C h a s . W. T rig g s , Chicago, 111.
P . A. W esterm a n , L ansing, M ich.
E . L. W ic k l if f , Colum bus, Ohio.
G ulf R egion
A. M. A dams , K ey W est, F la.
C W. G ib so n , Corpus C hristi. Tex.
J o h n L aN asa , New O rleans, L a.
♦F rancis W m . T aylor . Pensacola, F la.
J ohn V ersaggi, St. A ugustine, Fla.
M iddle A tla n tic R egion
O G. D ale , .Tr., New York, N. Y.
W. A. E lliso n , J r., New York, N. Y.
G eo . T. H arrison , T ilghm an, Md.
T h o s . H. H a y es , Lewes. Del.
*J. H. M a t t h e w s , New York, N. Y.
H. A. M cG in n is , P h ilad elp h ia, P a.
S ven M a r t h in , W ildwood, N. J.

M iddle A tla n tic Region— continued.
L e w is R a d c l iffe , W ashington, D. C.
R. V. T r u itt , College P a rk , Md.
N ew E ngland R egion
T hom as J . Carroll , G loucester, M ass.
*E. H . Cooley , B oston, M ass.
M. G. M agnusson , W inchester, M ass.
G ardner P oole , B oston, M ass.
R u fu s H . S tone , P o rtla n d , M aine.
Pacific R egion
.
H. J. A nderson , S an F rancisco, Calif.
L aw rence Calvert , S eattle, W ash.
A r ch E . E kdale , San P edro, C alif.
*H. B. F r ie l e , S e a ttle , W ash.
E. B. M c Govern , S eattle, W ash.
S o u th A tla n tic R egion
F rank D. F ant , Jacksonville, F la.
»S ol F a ss , P o rtsm o u th , Va.
W il l ia m W eston , Colum bia, S. C.

♦R egional ch airm an an d m em ber of th e executive com m ittee.

Reports of the various bureaus of the Department, setting forth
their accomplishments during the year, are attached.
Sincerely yonrs,
D a n i e l C. Roper,
Secretary of Commerce.

REPORT BY BUREAUS
CHIEF CLERK AND SUPERINTENDENT
The need for additional personnel throughout the office of the
Secretary continued acute during the year. Through the perloimance of 1,112 days’ 'overtime, the borrowing of help from other
branches of the Department, and the cooperation of the employees,
it was possible to keep the work fairly current, but under conditions
most undesirable. The dispatch of business of the divisions of the
office of the Secretary retards or facilitates the activities of all bureaus
of the Department, and satisfactory performance cannot be had with­
out adequate personnel.
INTERNATIONAL CONFERENCES AND EXPOSITIONS

Paris International Exposition.—The exhibits of the Department
of Commerce at the International Exposition at Paris were dismantled
and returned to the United States immediately after the close of the
fair in November 1937; and a report, embracing financial details, was
submitted soon thereafter for inclusion in the required report to be
made to Congress by the Commissioner.
.
Great Lakes Exposition.—The Congress having authorized con­
tinued participation, the Department maintained its exhibit at the
Great Lakes Exposition, Cleveland, Ohio, until its close on October
29, 1937, thereafter making full report with financial statement tor
inclusion in the Commissioner’s report to Congress.
Greater Texas and Pan American Exposition.—Representation at
the Greater Texas and Pan American Exposition, Dallas, lex., having
been authorized by the Congress, the Department continued partici­
pation until the closing date, October 31, 1937, and submitted a state­
ment of financial and other details to the Commissioner for embodying
in his report to Congress.
. , „ , .
, . . .,
In addition to 20 exhibitions in the United States m which the
Department participated, it presented an exhibit at the meeting of the
International Association for the Protection of Industrial Property
at Prague, Czechoslovakia, and at the Exposition of Aeronautical
Products, Lima, Peru.
.
, .
Future international expositions.—The Department is engaged m
preliminary work for the following international expositions to be
held in the United States in 1939: Pan American Exposition, Tampa,
Fla.; Golden Gate International Exposition, San Francisco, GaiiL;
New York World’s Fair, New York City; and the Seventh Worlds
Poultry Congress and Exposition, Cleveland, Ohio.
In accordance with legislation passed by Congress, the Department
of Commerce is charged with responsibility for all Federal activities

2

REPORT OP THE SECRETARY OP COMMERCE

in connection with the Pan American Exposition. The President
designated as Federal Commissioner Dr. Alexander V. Dye, Director
of the Bureau of Foreign and Domestic Commerce, with many years5'
experience at Latin-American posts in the Foreign Service of the
United States. The departments and independent agencies are co­
operating to the end that this exhibit shall depict the functions of the
Federal Government.
Exhibits at the fairs in New York City and San Francisco are to
be arranged by themes, and this Department will be represented by
one or more of its bureaus in a majority of the subjects at each
exposition.
The Bureaus of the Census, Fisheries, and Foreign and Domestic
Commerce are actively engaged in preparations for the Seventh
World’s Poultry Congress and Exposition. They are cooperating"
with the Department of Agriculture with a view to presenting dis­
plays graphically depicting all functions of these Bureaus in con­
nection with the poultry industry.
During the year ended June 30 the Department of Commerce was
interested in, and submitted nominations of delegates to, more than
20 international congresses covering the fields of commerce, education,
industry, and science.
Work in connection with a number of international gatherings
scheduled toy 1939 and 1940 has been initiated. Of these the Depart­
ment is especially interested in the Eighth International Conferenceof American States, to be held at Lima, Peru, in December 1938, and
m the First Inter-American Travel Congress to be held at San
Francisco in April 1939. It is assisting in drawing up plans and
agenda and working in close cooperation with the Pan American
Union and the Department of State in preparation for these meetings.
DIVISION OF ACCOUNTS

The following table shows the amounts appropriated by Congress
for the bureaus and offices of the Department for the fiscal year ended
June 30,1938, the amounts transferred to this Department from other
Government departments and agencies, and the amounts transferred
from this Department to other Government departments and agencies
exclusive of funds appropriated under the several emergency appropnation acts:
Bureau or office

Annual
appropri­
ation acts

Deficien­
cies and
supple­
ments

Office of the Secretary_______
$1,937,842 $377, 500
Bureau of Air Commerce. __
11,156, 500 -360,000
Bureau of Foreign and Domestic Com­
merce..... ........ ........
3,021,600
Bureau of the Census__
2,065,000
Bureau of Marine Inspection and Navi­
gation___________
2,412,000
National Bureau of Standards..........
2, 618,000
11,020,900
Coast and Geodetic Survey___
2, 649,400
Bureau of Fisheries....... ........
1, 967,000
P atent Office__________
4, 582,000
Total____________

43,430,242

Special
exposi­
tions

From
other
depart­
ments

To other
depart­
ments

$8, 000
100,000

$2, 323, 342
$118,500
209,878

108,000

Total

74,450

—$8,000

2,827, 878
11, 376,000
2,715, 850
1,967,000
4, 582, 000

402,828

- 8,000

44, 305, 670

3

CHIEF CLERK AND SUPERINTENDENT

Disbursements during the year ended June 30,1938, from appropria­
tions and from funds transferred from other departments were as
follows:
Appropriation for—
Bureau or office
1937

1938

Total

$51.80
Office of the Secretary..............-.............................Bureau of Air Commerce----- ---------------- --------- 19,437.41
576.53
Bureau of Foreign and Domestic Commerce........
Bureau of the Census----------- ---------.................... 8,245.07
130.56
Bureau of Marine Inspection and Navigation----National Bureau of Standards---------- ------ ------- 1,297.15
20, 652.13
832.35
Coast and Geodetic S u rv e y ..................................
469.96
Bureau of Fisheries.-........................................... .
2.27
P atent Office------------------- --------------- -----------

$221,206. 59
536,372.92
53,318.59
50,919.49
137,215.80
134,495.99
1, 078, 578.15
314,792. 33
123,962.12
144,706.96

$1, 757,454. 25
8,837,872.33
2,932,527. 75
1, 974,106. 62
2,231,419.65
2, 588,946.79
10,197, 083.79
2,359,359.85
1,411,502.96
4,186,455.88

$1,978,712. 64
9,393, 682.66
2,986,422.87
2,033,271.18
2,368,766. 01
2,724,739.93
11,296,314.07
2,674,984.53
1,535,935. 04
4,331,165.11

51,695.23

2,795,568.94

38,476, 729.87

41,323,994. 04

1936

M ISCELLA N EO U S RECEIPTS

Office of the Secretary :
Sale of Government property-------- --------------------------Other------------------------------------------------------------------Bureau of Air Commerce :
Violation, air-traffic regulations-----------------------------Sale of Government property-----------------------------------Other____________________________________________
Bureau of Foreign and Domestic Commerce :
Fees under China Trade Act-----------------------------------Sale of publications-----------------------------------------------Sale of Government property-----------------------------------Other------------------------------------------------------------------Bureau of the Census :
Statistical services------------------------------------------------Other____________________________________________
Bureau of Marine Inspection and Navigation :
Tonnage tax, United States------------------------------------Navigation lines-----------------------------------------------------Navigation fees-----------------------------------------------------Overtime service-------------------------------- -------------------Reimbursement for loss on continuous discharge books.
Sale of Government property-------------------------- ------- —
Other------------------------------------------------------------------National Bureau of Standards :
Testing fees----------------------------------------------------------Sale of Government property---------------------------------Other------------------------------------------------------------------Bureau of Lighthouses :
Reimbursement, Government property lost or damaged.
Sale of land and buildings--------------------------------------Sale of Government property-----------------------------------Other-----------------------------------------------------------------Coast and Geodetic Survey :
Sale of charts-------------------------------------------------------Sale of maps---------------------------------------------------------Sale of publications----------------------------------------------Sale of Government property-----------------------------------Other____________________________________________

$1,472. 83
496. 47
2, 770. 00
29, 034. 58
1,171. 03
1,075. 00
36,158. 37
876.06
732. 01
4, 236.94
617. 00
1, 781, 252.46
79,905. 65
186,172. 08
42,822.27
1, 897.15
2, 607.62
1, 848.05
107, 882. 68
543. 48
69.85
10, 076.12
40,000. 00
12, 999.13
6,039.37
81, 593. 08
13, 959.18
9,140. 89
4, 560. 46

866.10

4

REPORT OF THE SECRETARY OF COMMERCE
m is c e l l a n e o u s b e c e ip t s — c o n tin u e d

Bureau of F isheries:
$1,101.01
Sale of furs--------------------------------------------------------------------293, 512.66
Sale of sealskins__________________________________________
Sale of foxskins___________________________________________
21,’ 243.90
Sale of Government property_______________________________
s! 057! 47
Other------------------------------------------------------------------------------^ 083! 14
Patent Office: Fees_____________________________________ ._____ 4 , 346 ; 859. 74
Bureau of Mines : Excess cost over contract price_______________
’ 481.19
Miscellaneous: Refund, State and local taxes___________________
169. 23
Total, Department of Commerce__________________________ 7 , 14 0 , 384. 25
DIVISION OF PERSONNEL

At the close of the fiscal year 1938, exclusive of 139 persons paid
from emergency funds, the personnel of the Department numbered
16,833. Of that number, 4,947 were employed in the District of Colum­
bia and 11,886 in the field. The total personnel as of June 30, 1937,
exclusive of 473 persons paid from emergency funds, was 14,698. Of
that number, 4,584 were employed in the District of Columbia and
10,114 in the field.
The number of employees retired on annuity during the year under
the Civil Service Retirement Act was 73—38 by reason of age, 25 on
account of disability, and 10 by optional retirement. Under the Light­
house Retirement System, 25 were retired for age and 36 on account
of disability. A total of 2,156 civilian employees have been retired
under applicable statutes to the close of June 30,1938.
DIVISION OF PUBLICATIONS

The following statement shows, by appropriation title, the amounts
expended or obligated from appropriations available for printing
and binding during the fiscal year 1938:
Title of appropriation

Available

Printing and binding, Departm ent of Commerce
1 $501,150.00
Same, deficiency, 1937-1938........ .
1 102, 029. 49
Printing and binding, Patent Office___
965. 000. 00
General Committee of the Accident Prevention Conference. __
(s)
Fisheries market news service, Bureau of Fisheries
(s)
Customs statistics, Bureau of Foreign and Domestic Com­
merce____ _______________
«
Investigation of building materials, National Bureau of
S tan d ard s..______ ______ _______
(5)

-______________________

Expended »

Balance 1

$481, 638. 09
99,454. 94
882,660. 26
13,481. 93
1,022. 34

3 $19, 511.91

2, 574. 55
82, 339. 74

15, 392. 40
1, 510.09

J Estimated; exact figures cannot be given until all work ordered is completed and billed

2 Includes a credit of $1,150 for copies of Coast Pilots furnished U. S. Naval Academv
3 Includes a reserve of $14,600.
y*

\ Amount available for expenditure in 1938 from a deficiency appropriation of $205,000 for 1937 and 1938
5Amount available for printing not stated in appropriation item.

Receipts from sales of the Department’s publications for the fiscal
year 1937 (the latest period for which complete data are available)
were $639,398.03, compared with $589,331.44 for 1936. The following
table presents a comparison for the 2 years by selling agencies:

5

CHIEF CLERK AND SUPERINTENDENT
Receipts
Sales
1936

1937

By the Superintendent of Documents: Miscellaneous sales and subscriptions---- $142,826. 24
By Coast and Geodetic Survey: Coast pilots, inside route pilots, tide tables, cur92,332.35
By Patent Office: Specifications of patents, reissues, etc., trade-mark section ana
decision leaflet of Official Gazette, and classification bulletins and definitions,-- 354,162.85

$151,129. 97

589,331.44

639,398.03

106,488. 71
381,779.35

DIVISION OF PURCHASES AND SALES

During the fiscal year 1938 there were placed 14,053 purchase
orders, which, including freight, travel, rent, and miscellaneous ac­
counts, involved the expenditure of $5,297,219.06. These amountsshow an increase in orders of 1,882 over the fiscal year 1937 and an
increase in expenditures over the same period by the amount o r
$4,178,916.20. This increase was due principally to the increased,
activities of the Bureau of Air Commerce.
There were 830 contracts approximating $2,398,487.70 submitted to
this office for examination and forwarding for departmental approval
by the various field offices of the Department. _In addition to the
above, there were 102 formal contracts amounting to $4,318,414.98
prepared by this Division, making a total of 932 contracts examined
and prepared, involving a total expenditure of $6,716,902.68.
Through the cooperation of the Procurement Division, Treasury
Department, there was obtained by transfer, without exchange of
funds, a large quantity of surplus and forfeited property. Also,
there was transferred, without exchange of funds, from this Depart­
ment to other branches of the Government, including the Procurement
Division, surplus material valued at approximately $200,000.
Approximately 3,000 reports of surplus and seized property have
been received from the Procurement Division and appropriately han­
dled. Many of these reports require the canvassing of the bureaus
and offices of the Department, the tabulation of their replies, and
reporting to the Procurement Division. This office is now also re­
quired to report to the Procurement Division all unserviceable prop­
erty which has a sale value.
DEPARTMENT LIBRARY

At the close of the fiscal year 1938 the number of books and
pamphlets in the Department library was 238,898, and periodicals
and newspapers currently received, 1.724. The number of books and
pamphlets cataloged was 9,412; cards added to the catalog, 25,521;
books prepared for the shelf, 7,039; books bound, 1,128; number of
books circulated, 40,098; books borrowed from the Library of Con­
gress and other libraries, 1,679; books loaned to other libraries, 412;
N. B. A. hearings circulated, 579.

OFFICE OF THE SOLICITOR
During the fiscal year ended June 30, 1938, there were 620 opinions
rendered; and 442 contracts, 900 leases, 3 insurance policies, 52 re­
vocable licenses, and 388 bonds were examined. Legislative matters
handled numbered 274.
During the. year all regulations of the Department and each of the
bureaus were codified, after review and the making of the necessary
revision to bring them up to date. The office also reviewed the
Federal Register work for the Department. Many other questions
not requiring written opinions involving statutes, contracts, treaties,
regulations, and administrative law and procedure were disposed of
in conferences with officials of the bureaus and representatives of
other departments.
6

BUREAU OF AIK, COMMERCE
The organization of the Bureau of Air Commerce remained sub­
stantially unchanged during the year, except that the office of an
additional Assistant Director was created. All activities of the
Bureau were under a Director, aided by two Assistant Directors and
a technical assistant, having supervision over seven principal divi­
sions as follows: Airways Engineering^ Airways Operation, safety
and Planning, Administrative, Information and Statistics, Certihcate
and Inspection, and Regulation and Enforcement.
A policy board, composed of the Director, the Assistant Directois,
:and the heads of the seven divisions, with the technical assistant to
the Director as the secretary of the board, dealt with all matters
regarding policy within the Bureau. In addition, there was an ad­
visory board to the Bureau, consisting of some 21 civilian and other
.representatives of all national aviation interests.
..
During the year there was organized a group known as the Air­
ways Operation Advisory Committee for the purpose of formulating
programs, policies, and regulations for the operation of the civil
airways The membership of this Committee was composed of repre­
sentatives of the War Department, the Navy Department, the Na­
tional Aeronautic Association, National Association of btate Avia
tion Officials, Aeronautical Radio, Inc., Air Line Pilots Association
'United States Coast Guard, Interstate Commerce Commission, United
States Weather Bureau, American Municipal Association, Air I lansport Association of America, Private Flyers Association, the Sports­
man Pilot Association, National Safety Council, and a representa­
tive of airport officials. This committee held a series of meetings
W1A shnihir advisory committee was established to consider the
private flying problems incident to the writing of the Civil Air
^ A reorganization was effected of all the field activities of the Bu­
reau into seven regions, each under the supervision of a regmnal
supervisor. These new regions were made up of the nine toene a
inspection and the six airways districts under which the Bureau s
held work had been previously carried on. Tim regionalization made
possible a closer coordination of the Bureau s functions and a m
expeditious handling of Bureau matters which had been formerly
referred to the Washington office.
THE FEDERAL A IR W A Y S SYSTEM

At the outset of the past fiscal year, the Bureau of Air Commerce
undertook a comprehensive airways modernization and extension pro­
gram This program was made possible by appropriations and auS t a t i o n s totaling approximately $1,000.000, ol which approx,7

8

REPORT OP THE SECRETARY OP COMMERCE

niatel,y $3,000,000 was appropriated and made available for expendi­
ture during the fiscal year 1938; $2,000,000 was authorized to be
contractually obligated during the fiscal year for expenditure subse­
quent thereto ; and $2,000,000 was authorized to be contractually
obligated during the fiscal year 1939 for expenditures during that
fiscal year and subsequent thereto.
. Many new developments and mechanical improvements in connec­
tion with airways aids had been successfully worked out during the
preceding years, but not generally applied to the airways system,
owing to lack of funds. It was therefore determined first to "bring
the existing airways up to thoroughly modern standards by improve­
ments to existing aids and by installing such additional aids as were
needed to render a complete service. Consequently, the first 5 mil­
lions were allocated to the modernization of existing airways, and
the remaining 2 millions to the extension of the Federal airways
system to include new routes.
A great deal was accomplished in the carrying out of both phases
of the airways program. On account of the large number of new
radio stations to be constructed within a short time and the fact that
equipment for the simultaneous stations was of a new design, an inno­
vation w’as undertaken in the method of procuring and installing the
radio equipment. Four radio range equipment contracts were let;
one contract included all equipment and installation at 44 simul­
taneous stations, another included all equipment and installation at
35 stations,_a third included furnishing of equipment and installation
at 36 nonsimultaneous stations, while the fourth covered all equip­
ment required to convert 50 existing nonsimultaneous stations to the
simultaneous type. All four of these contracts were let during the
first half of the fiscal year.
The first units of this equipment were assembled and tested in
the early spring of 1938, and by the end of the fiscal year six installa­
tions had been completed, with the remainder scheduled to be made
at the rate of 12 to 15 stations per month until the entire program
had been completed.
. Equipment required for the teletype communications system exten­
sions was obtained in the early part of the fiscal year, and by the
end of the year some 7,000 miles of teletypewriter circuits had' been
added to the system.
The program called for the installation of 100 cone of silence
markers at various range stations and by the end of the fiscal year
all of the equipment had been manufactured and installation had
been completed at two stations. Of the proposed 21 fan type marker
installations, 1 such marker had been installed and placed in opera­
tion and the balance were scheduled for installation during the
months of August, September, and October.
In addition to the surveys and site selections required for the new
radio aids, the Bureau was able to complete a large part of the
survey and site selection work required for the realignment of sev­
eral portions of existing airways, and for new airways. Contracts
were let for the supplying of a considerable portion of the equipment
necessary for the new airways, including 180 new beacon light units.
Radio. The Radio Technical Committee for Aeronautics, spon­
sored by the Bureau of Air Commerce and directed by the chief of

BUREAU OF AIR COMMERCE

9

its radio development section, continued its active coordination of
the work of various Government and civil research organizations.
Bureau radio engineers participated in the work of the Interde­
partment Radio Advisory Committee, in the Inter-American Radio
Conference at Habana, Cuba, the United States-Canadian Confer­
ence in Washington, and the International Telecommuncations Con­
ference at Cairo, Egypt. These activities were responsible for im­
portant contributions to aeronautics through their provision tor
essential radio-communication needs both for the present and tor
the future, especially in connection with international aviation.
Numerous improvements in existing types of radio aids were de­
veloped during the year, notably in connection with the now stand­
ard system of simultaneous radio range and radiotelephone trans­
mission. The stability of radio range courses way still further im­
proved by new methods of transmission-line design and antenna
t0 Considerable progress was made toward a complete and satisfac­
tory solution of the increasingly important problem of blind ap­
proach to airports under conditions of no visibility, and the actual
landing of aircraft by ■instrument guidance alone. Detailed per­
formance specifications for a complete system were prepared based
upon the recommendations of the Radio Technical Committee for
Aeronautics and the best features of the several different experi­
mental systems thus far developed. A contract under these specifi­
cations was advertised and awarded for the development and manu­
facture of such a system to be installed at Indianapolis .Inch, where
further experimentation and field tests will be conducted. The sy tem provides for operation on one of the standard ultra-high tiequency channels recently allocated for this purpose.
Development work which has been in progress for several years
on a system of teletype operation by radio was brought to a con­
clusion and a comprehensive report thereon prepared for use as the
basis for planning a network of ultra-high frequency radio teletype­
writer circuits. The proposed system of automatic relay stations
would at the same time lend itself to ground-to-aircraft transmission
by teletype when receiving printers suitable to aircraft installation
^e<The general course pursued by the Bureau during the past year
in the development of aeronautical devices based upon the use ot
radio, beyond those immediate problems involved m the
improvement of existing facilities, was chiefly m the field of new
applications of the ultra-high frequencies. Not only has thisi re­
cently opened part of the radio spectrum offered a means of reliev­
ing serious congestion, but it has rendered possible the development
0
1
“experi ment al work was.conducted orr the devektpment of airway radio ranges for operation on ultra-high fre­
quencies This work was productive of much new information on
directive antennas, particularly in connection with the respective
merits of vertically versus horizontally polarized waves.
Two s o m e w h a t similar types of ultra-high frequency radio
markers were developed as a means for providing airmen with posi­
tive position identification. One of these markers, a Z type or zone
108928— 38-

4

10

KEPOKT OP THE SECRETARY OF COMMERCE

marker, is being located at radio range stations while the other, a
type
or Ian marker, is being installed at specified points alonothe range courses. The latter serves both as an aid to navigation
and as an important link in the Federal system of airway traffic
Concurrent with the development of ultra-high frequency ranges
and markers, work was carried forward on the design of ultra-hio-h
frequency transmitters and antennas for radiotelephone transmission
As a means of encouraging and assisting aircraft operators to
adopt ultra-high frequency equipment for the types of service to
which it is best suited, the Bureau awarded development contracts
to laciio manufacturers for transmitters and receivers designed to
meet the rigid and peculiar requirements for aircraft installation.
Specifications were prepared and a contract awarded for the de­
velopment and construction of a new type of radio beacon for possi­
ble application to the Federal airways system. This is the omni­
directional beacon, differing from the conventional equisignal (1ST-A)
range m that, instead of producing the usual four fixed courses it
will provide essentially the same navigational information to a pilot
fiymg toward the beacon regardless of his direction therefrom.
At the request of various air lines and in compliance with the
recommendations of the Radio Technical Committee for Aeronautics
the Buieau undertook an investigation of precipitation static phe­
nomena encountered in aircraft and associated in flight throimh rain
snow, dust, or similar conditions which result in severe interference’
to radio reception. Work was started under contract with the
Bureau at both Reed College, Portland, Oreg., and Purdue University, L/aiayette, Ind., on exhaustive research programs on these
problems.
&
Commwiications.—iThe Bureau cooperated with the Alaska Aero­
nautical and Communications Conference in preparing plans for the
operation of the necessary aviation communications and aids to air
navigation m the Territory of Alaska, and participated in several
conferences which considered the provision of meteorological and
radio communication service for proposed trans-Atlantic, trans-racinc, and united otates—
Australia aircraft service
Arrangements were made for the establishment of continuous radio
receiving watches on the frequency 6,210 kilocycles wherever receiv­
ing equipment could be made available. This receiving watch on
<5:2 W kilocycles was m addition to that maintained on 3,105 kilocycles.
Ihe operating speed of the entire teletype system was increased 50
percent, or from 40 to 60 words per minute.
Arrangements were made for the purchase and installation of auto­
matic devices for timing all communications transmitted by teletvpe
and broadcast at the 85 scheduled radio broadcasting stations
Atrway traffic control.—The 8 airway traffic control stations ex­
tended their hours of traffic control coverage from 16 to 24 dailv
During the year the stations handled a total of 294,528 flight plans.'
Teletype circuits totaling 4,000 miles with 52 drops were established
lor handling communication information only. Preliminary ar­
rangements were made relative to equipment and personnel required
for the establishment of airway traffic control stations at Atlanta,
b ort Worth, Kansas City, St. Louis, and Salt Lake City

11

BUREAU OF AIR COMMERCE

Airport traffic control—An airport traffic control section was estab­
lished to administer portions of Part 26 of the Civil Air Eegulatio s
and particularly that of preparing and issuing examinations for the
certification of airport control tower operators. A total of 40 such
certificates had been issued at the close of the fiscal year.
Liqhting.—The development of a reflector-type runway marker
was initiated, and experimental installations were made at tbe Wash­
ington Airport, Washington, D. C., and at the Municipal Airport,
N p i thefpast, beacon lights have occasionally failed to operate prop­
erly owing to the formulation of a coating of ice resulting from freez­
in g rain or snow. To obviate this difficulty, the Bureau contracted
ior the purchase of 80 dome-type 24-inch rotating beacons This new
beacon is a radical departure from the standard rotating type m that
the projectors and lamp-changers rotate inside an enclosed one-piece
heat-resisting glass dome. The dome-type beacon, through the he<
generator inside the dome, allows the ice and snow to melt off and at
the same time prevents the mechanism from becoming frozen. The
beacons will be used in those portions of the United States that are
visited annually by severe ice and snow conditions. _
Airway e x t L i l n .-T h e scope of the Federal airways s y s t e m at
the beginning and end of the fiscal year is shown m the followi g
table:
July 1,1937

Item
Airway mileage:
miies
Lighted ....................................................— ...........
; ; ; _____ do~
Ltehted routes on'day k if w a fs ta te (lights' n'o't operating)--------- d o..
New routes under construction----------------------------------------- "number”
Intermediate landing fields------------------------------------ ,j0
Beacon lights in operation------ -------------------------------------------------Radio stations:
do
Scheduled weather broadcast stations-------------------------Radio ranges..........................................................
Radio m ark ers............ ........................................
Teletypewriter circuits................ - ........... ........ .........................

June 30, 1938

22,399
176
441
437
280
1,916
do

82
164
do"
miles
13,885

22,834
i 849

0
0

267
1,943

85
179
54
2 21,790

i Alhanv-Rouses Point (NY-M ), 164 miles; Augusta-Columbia-Charleston (A C Airway), 160 miles,

t r a n s o c e a n ic

routes

The trans-Pacific air route continued operation from San Fran­
cisco to Hon«- Kong, giving through service for m a i l , passengers,
and express from the United States to the Orient, Exploratory
flights were made looking toward the provision of service to Austvralia and. N"g w Zpaland.
.
t il
¿v _
Regular passenger and mail service was continued between the
United States and Bermuda, with an American air line and a Butish
^Exploratory flights were made over the North Atlantic in prepa­
ration for regular service. American, British, and German interests
engaged in these flights. The first of six huge flying boats being
constructed for use in this service by an American an line was test
flown, and further tests are now under way.

12

REPORT OF THE SECRETARY OF COMMERCE

. Protracted negotiations regarding reciprocal agreement were car­
ried on relative to establishment of service between the United
States and Europe.
REGULATION OF A IR COMMERCE

During the year all the rules and regulations of the Bureau per­
taining to aeronautics were revised and rewritten and issued as the
Civil Air Regulations. _ The regulations dealing with various spe­
cific matters, such as aircraft registration certificates, airplane air­
worthiness, pilot rating, and the air-traffic rules, are carried under
separate headings known as parts. Thus part 00 deals with aircraft
registration certificates, part 20 with pilot rating, and part 60
with the air-traffic rules. In promulgating the Civil Air Regulations
the Bureau cooperated with the aviation industry itself, and care
was taken that the regulations be made sufficiently flexible to provide
for such future revisions and amendments as become necessary.
The general scheme of preparing and issuing these regulations
was adopted by the committee in charge of the United States Code
of Administrative Regulations as a model for all Federal regulations.
Air-line inspection.—The Civil Air Regulations concerning sched­
uled air-line operations were put into effect. Certificates and letters
of competency were issued replacing the former letters of authority
for scheduled air-line operations. These certificates and letters of
competency clarified and simplified the method of setting forth the
specifications and conditions under which operations were to be
conducted.
There was considerably more inspection activity during the year,
occasioned by a number of extensions to existing air-line operations’
the formation of new services, and additional schedules over existing
routes.
“
fe
Inspection of scheduled air-line radio operation, maintenance, and
installation was conducted by the air-line radio inspectors, who also
inspected and issued type certificates to 83 items of radio equipment
General inspection.—The advent of the Civil Air Regulations
greatly increased the scope^ and volume of business of the o-eneral
inspection section. Activities^ increased approximately 20 percent
during the fiscal year, and it is believed that there will be an addi­
tional increase of 25 percent during the coming year.
Airworthiness of aircraft and equip?nsnt.—T\\Q new presentation
of all requirements for airplanes, engines, propellers, and equipment
™ %lvl1 Alr Regulation form was completed and made effective.
I he Bureau continued, through participation in several meetings and
the preparation and issuance of additional technical publications as
an active member of the Army-Navy-Commerce Committee on Air­
craft Requirements.
Additions to the engineering staff were trained and a branch office
was opened at Kansas City, Mo. The volume of work received expiessed m new designs continued to increase. Several projects in
the giant category of flying boats and landplane aircraft were in
process of being examined for approval.

bureau

o f a ir

co m m erce

13

Airway coordination.—The activities of the airway coordination
section included the clearance of proposed changes and additions in
air-navigation aids on the Federal airways system, computation of
air-mail contract mileage for the Post Office Department, pieparation of air-line maps showing regular and alternate routes, designa­
tion of civil airways, clearance of proposed radio tower locations for
the Federal Communications Commission, and recommendations tor
painting and lighting specifications for all obstructions to air navi^fnstrum ent-flight training.—Approximately 50 inspectors of the
field force took the instrument trainer and refresher courses. Mucn
was accomplished toward encouraging uniformity m blind tiyiiij,
procedure and instruction.
.
. .
j
urn
Leaal—During the fiscal year a comprehensive revision and codifi­
cation of the Civil Air Regulations was undertaken, and forms were
drafted for use in connection therewith. The Bureau continued
active participation in the establishment and maintenance of aero­
nautical agreements with foreign countries, which included a new
arrangement with Canada concerning airmen aircraft, and air navi­
gation, and also continued negotiations with_ France, Poland, and
New Zealand, and opening of negotiations with Portugal. Active
participation, concerned with the establishment of air routes, services,
and navigational facilities in overseas and foreign air commerce, was
continued. The Bureau also participated m matters pertaining to
international law, principally in the work of the International tech­
nical Committee for Aerial Legal Experts.
Accident analysis.—A total of 2,527 reports of accidents was ana­
lyzed and classified for statistical purposes. Statements were issued
covering the probable cause of 8 air-line accidents and 61 accidents
in non-airline operation. Public hearings were held m connection
with the eight accidents in scheduled air-line operation and one
accident in nonscheduled flying.
. , ,
Registration.—A total of 63,361 applications was received for air­
men and aircraft certificates, and 47,898 certificates were issued. A
total of 32,754 airmen certificate renewals was recorded, and 8,32b
transfers of title to aircraft were completed. At the end of the
fiscal year 85,496 current aircraft and airmen certificates were out­
standing. The issuance of new type identification certificates to all
airmen was undertaken.
.
„
■
Enforcement.— During the year 666 violations of the Bureau of
Lir Commerce regulations were reported. Varying degrees of pen­
alty were imposed in 574 cases, and the others were dismissed.
DEVELOPMENT

A four-cylinder barrel-type aircraft engine was constructed under
contract to the Bureau, and successfully passed its acceptance test.
An airport orientator was developed, purchased, and flight tested,
and found to meet satisfactorily the requirements for an instrument
which will provide a pilot with airport and approach information
pictorially represented, and in proper orientation with the ground.

14

REPORT OF THE SECRETARY OF COMMERCE

The development and manufacture of an automatic instrument log
for recording photographically the instrument readings and control
settings in an aircraft cockpit, continuously and automatically, were
conducted under contract. The device was ready for flight testing
at the close of the fiscal year.
During the fiscal year a total of 13 reports and 3 confidential notes
were published dealing with various aeronautical matters. Other
reports and notes were in various stages of preparation at the close
of the fiscal year.
Arrangements were completed for the establishment of an aero­
nautical testing station by the city of Indianapolis, Inch, for the
exclusive use of the Bureau in service testing aids to air navigation
and safety equipment for aircraft. Under the terms of the agreement,
Indianapolis agreed to build an airport and hangar with space for
shops on a 266-acre tract of land adjacent to its municipal airport.
AVIATION-MEDICINE STUDIES

A medical station was established at Kansas City, Mo., for the
primary purpose of conducting a study looking toward the solution
of pressing safety problems in relation to pilot fatigue and other
factors connected with the human element in aviation. A lease was
negotiated and all alteration work contracted for, to insure housing
that would include scientific lighting, complete control of the atmos­
phere, complete acoustical treatment, and shielding for X-ray and
other specialized apparatus. Procurement arrangments were com­
pleted for all equipment, including the most advanced opthalmological
examining equipment, audiometer, X-ray and fiuoroscope, electrocar­
diograph, amplifying stethoscope and basal metabolism and vital ca­
pacity spirometer, and a Link trainer.
The Columbia and Harvard medical research contract on the effects
of oxygen deprivation (high altitude) on the human organism was
completed.
Three medical research contracts were awarded to universities as
follows:
1. Dartmouth College to conduct an investigation on the subject of
aniseikonia.
2. Harvard Fatigue Laboratory to conduct studies and develop
methods of measurement for (a) the dilineation of personality types,
yJ) susceptibility to anoxia, (c) emotional stability, and (d) the proxlmity to major and minor psychotic break-down.'
3. The Johnson Foundation (University of Pennsylvania) to conj ct research studies for the purpose of developing biophysical meth­
ods for measurement of vascular signs of physical strain and emotional states and also to determine electrical methods for study of
variations in properties of the nervous system in relation to fiuctuations in the blood chemistry.
A. contract was let for the purchase of a bone conduction hearing
device and a report on its operating characteristics under service
conditions.

BUREAU OF AIR COMMERCE

15

AIRPORTS

The national airport survey, commenced in June 1937, was con­
tinued for the purpose of obtaining information regarding all civil
airports in the United States. The survey was divided into three
general parts, as follows:
.
1. A financial study to ascertain the capital investment m airports
since the 1930 survey, including the cost of operation and mainte­
nance, amount and sources of revenues, and the methods of obtaining
funds for capital improvements.
2. An analysis of the dimensions and the equipment of the airports,
to provide more dependable information than had been obtained
previously.
.
3. Securing of aerial photographs to give information regarding
the facilities and dimensions of airports.
Part of the studies toward a national airport plan were completed
and exhibits were made for the airport conferences held in December
1937 and March 1938. The national airport plans for the South­
eastern States and the New England States were completed m their
preliminary form.
....
At the close of the fiscal year, 87 percent of the civil airports had
been analyzed with respect to their facilities, 64 percent with respect
to their financial set-up, and 32 percent of the vertical aerial photo­
graphs had been completed.
The Bureau continued its participation in the Works Progress
Administration airport development and construction program.
Airport projects undertaken by the Works Progress Administration
require the approval of the Bureau of Air Commerce as to the tech­
nical aeronautical features of the work on completion, the aim being
to secure satisfactory and safe aeronautical facilities. During _the
fiscal year the Bureau approved 305 airport and air-marking projects
involving an estimated expenditure of $39,709,780.’ As of dune 30,
1938, a total of 1,315 airway and airport construction projects had
been submitted for consideration since the inception of the airport
program. Of these, 560 projects had been completed, 293 were ac­
tive, 34 had been consolidated, 47 had not been started, 194 had been
suspended, 4 had been transferred, and 193 had been discontinued.
Works Progress Administration funds in the amount of $136,427,947
were provided for use in connection with the projects, and of this
amount $92,381,262 had been expended.
Air marking.—As a result of the Bureau-sponsored air-marking
program, approximately 10,125 air markers had been constructed or
repainted as of June 30, 1938. A bulletin covering the subject of air
marking was prepared during the fiscal year.
Airport rating regulations.—A draft of tentative airport rating
regulations was prepared and submitted to the National Airport
Conference, to the aeronautical industry, and to other interested
organizations. As a part of these tentative regulations, standard and
performance specifications, covering all airport lighting equipment,
were prepared for the guidance of municipal and Federal agencies
engaged in airport construction work.

16

REPORT OF THE SECRETARY OF COMMERCE

Seaplane facilities.—Studies were made of various problems in
seaplane operations, such as water maneuvering characteristics of
large seaplanes to establish minimum operating areas, a study of
beaching facilities, a preliminary survey of two transcontinental
routes for seaplanes, and an investigation of seadrome lighting.
ADM INISTRATION

The Administrative Division, in addition to carrying on its regu­
lar routine duties, installed a machine system for keeping the cost
accounts in the Washington office and for keeping allotment ledger
general ledger, and cost accounts in the regional offices of the Bureau.’
I t also developed and installed a machine system for control of
authorized and proposed positions and of funds required therefor.
DISSEMINATION OF INFORMATION

The Information and Statistics Division continued its duties of
tabulating and disseminating aeronautical information through
printed bulletins, special articles and correspondence, photographs
motion pictures, maps, compilation of statistics, and supplying of
information on airports and air-navigation aids. The bulletin Tab­
ulation of Air Navigation Radio Aids was changed from a quarterly
to a monthly publication.
APPROPRIATIONS AND PERSONNEL

A tabulation showing amounts that have been appropriated for
the work of the Bureau of Air Commerce since it began to function
follows :

Fiscal year

1927..
1928..
1929..
1930..
1931..
1932..
1933..
1934..
1935._
1936..
1937..
1938 i.
1939..

De­
part­ Aircraft in
mental commerce
salaries

P ur­
Estab­
chase
Safety
M ainte­ lishment
Travel­ and
and nance of air- of airplan­ navigation naviga­ ing ex­ mainte­
ning
facilities
tion fa­ penses nance
of air­
cilities
craft

Total

$250, 000. 00
700, 000. 00
885, 850. 00
1,143, 000.00
1, 263, 430. 00
1, 369, 660.00

.

$300. 000.00
$550, 000. 00
3,091, 500.00
3, 791, 500. 00
4, 689, 550.00
5, 575, 400.00
5, 533, 320.00
6, 676, 320.00
7.944, 600.00
9, 208, 030.00
8, 992, 640.00
10,362, 300. 00
1,000, 000.00
7, 553, 500.00
8
, 553, 500.00
1, 070, 570. 00
6, 590, 210.00
7, 660, 780. 00
676, 249. 54
5, 004, 782.45
5,681,
031.99
734, 800. 00
5,189, 600.00
5, 924, 400. 00
$390,000 733, 000. 00
4, 844, 080. 00 $882, 920
6,850,
000.00
628,000 1, 537, 000.00 $263, 000 5, 538, 700. 00 22,911,800 ‘$697,470
650,000 1, 249, 800.00 258,000 6,758, 600.00 34, 575,000 4 650, 000 $335, 000 11, 575. 970.00
14,476, 480. 00

1 The discrepancy between these figures and those shown for 1938 in the Annual Report of the Seeretarv

obligate, prior to July 1,1939, a further $2,000,000 for such purposes.
1.2,000,000, and to
act tortf l M r w i ^ r a ’^ h i S , Vî iI?hle, f0r paynient of obligations incurred under authority of appropriation
act for fiscal year 1938 to obligate that amount prior to July 1, 1938. The Secretary of Commerce was also
authorized to enter into, prior to July 1, 1939, contracts for the purchase, construction, and installation
*!hni lvigation aids which authorization is in lieu of, and not in addition to, the authorization contained
Proviso °f the appropriation act for 1938, as shown in footnote 2.
The amounts for the fiscal years 1938 and 1939 under “ Traveling expenses” were not aDDronriated
specifically for the Bureau of Air Commerce, as this item of expense was covered by a separate appropriation
to the Bureaaument °f Commerce>and the fi2ures shown represent the allotments made by the Department

17

BUREAU OE AIR COMMERCE

Statistics on personnel employed by the Bureau of Air Commerce
on June 30, 1938, and on the corresponding date of the preceding
year follow:
June 30, 1938

June 30, 1937
Item

District of
Columbia

Salaries, Bureau of Air Commerce............
Aircraft in commerce------------ ------ ------Establishment of air navigation facilities...
Maintenance of air navigation facilities----

204

Total.................................................. -

204

Field

Total

District of
Columbia

Field

Total

287
215

18

2,002
20

264
287
215
2,002
38

282

2, 524

22,806

204
180
81
1,457

264

180
81
1,457
1,718

11,922

1 In addition, on June SO, 1937, there were 81 employees engaged on projects sponsored by the Works
P r° to ,a d d itto ? o n J u n e ’so, 1938, there were 73 employees engaged on projects sponsored by the Works
Progress Administration.

GROWTH OF A VIATION INDUSTRY AND SAFETY IN FLYING

In conclusion, it. seems proper to make note of the phenomenal
growth of the aviation industry since the passage of the Air Com­
merce Act of 1926, and of the increased safety m flying accomplished
under the aegis of the Bureau of Air Commerce. . . .
,
During the 12 years that the Bureau has functioned, the number
of firms in the industry has almost tripled, the number of licensed
airplanes increased approximately five times, and the number ot
licensed pilots increased elevenfold. The 545 student licenses issued
in 1927 had increased to more than 38,000 by the end of the liscai
year 1938. Particularly in scheduled air transportation are com­
parative figures noteworthy. For example, the daily average of miles
flown (domestic and foreign extensions) soared from 11,830 at tfle
end of 1926 to 234,922 at the end of the past fiscal year. The amount
of income to contractors for carrying the air mail increased from
three-quarters of a million dollars to more than 21 millions annually.
In the last 5 years alone, the total value of aircraft m service has
increased from 9y2 to 19y2 million dollars, while m the same period,
the scheduled miles flown annually has gone from 54,642,545 to nearly
77 million. Passengers carried by the air lines m 1927 totaled 8,o<y;
last year the lines carried 1,267,580, and during June 1938, the final
month of the fiscal year just past, the lines carried 115,255 passengers.
Increases have been noted in practically every phase of the industry,
y0in carrying out the mandates of the Air Commerce Act, the Bu­
reau of Air Commerce, in all its actions, made safety its primary ob­
jective, and as a result, air travel has become safer year by year. I fie
improvement in safety in both scheduled air-lme and miscellaneous
flyino- operations is evident in the statistics on fatalities. Ihe numbei
of miles flown per fatal accident in scheduled air-line operations in­
creased from 1,467,622 in 1927 to almost 13,000,000 m 1937. During
this same period, the miles flown per fatal accident in miscellaneous
operations, which includes the sometimes hazardous experimental and
exhibition flying as well as training and private flying, increased

18

REPORT OF T H E SECRETARY OF COMMERCE

from 279,070 to 556,737, while at the same time the miles flown per
to Tool 768ata ity m thiS 1>liaSe oi
activities rose from 285,174
An important factor in this increase in safety has been the assist­
ance rendered by the Bureau of Air Commerce through its Federal
airways^ system, and its rules and regulations governing flyin o' opera­
tions, airworthiness requirements for aircraft and accessories, and
competency qualifications for airmen.

BUREAU OE THE CENSUS
INTRODUCTION

The major task now facing the Bureau of the Census is the gigan­
tic one of preparing for the decennial census of 1940.
This census will be the most complete and most important statis­
tical inventory of the human and economic resources of the Nation
ever taken. Millions of fundamental facts about people, farms,
stores, factories, and resources must be gathered, compiled, and pub­
lished.
.
These facts will not be buried in musty vaults but must be put to
work to help solve the problems of those very persons and organi­
zations furnishing the original information to the Census Buieau.
The Bureau is faced with demands for more direct and detailed
knowledge of population, agriculture, manufactures, business, and
other subjects included in the decennial census as the result of changes
and shifts in our social and economic life which have occurred m the
eventful years since the census of 1930.
A new factor is the great increase in the need for census tacts as
an administrative tool in the carrying out of social and economic
programs. Never before have census facts been in such demand tor
direct administrative use in solving the problems arising in our pres­
ent social and economic reconstruction period.
,
In order to secure sufficient, complete, and accurate base data for
the existing economic welfare and control programs it will be neces­
sary for the Bureau of the Census to expand considerably the tabula­
tions of census data, and to appreciably increase the social and eco­
nomic inquiries on the schedules which will be used m the next
decennial census.
, , ,, t, „„„
Some evidence of the magnitude of the task faced by the Bureau
in its preparatory work can be gleaned from the fact that the serv­
ices of approximately 150,000 people will be required to take the
census. Of this number, about 8,000 will be employed in Washington
compiling the data gathered in the field by about 140,000 enumera­
tors. To recruit, equip, and train this great working force presents
a formidable problem in organization and supervision, but that is
only one part of the job.
t . , ,
, nnn
.
Long before the first enumerator is hired, about 140,000 separate
large-scale detailed maps—one for each enumerator’s district—must
be drawn and verified.
, . .
„
The preparation and testing of the many schedule forms involve
months of conferences, committee meetings, and hearings, in order
that the needs of all interested groups and individuals may be given
the consideration they deserve. Every schedule must be planned to
secure the maximum of useful data with the minimum of expense
and trouble to the respondents who must report.
19

20

REPORT OF T H E SECRETARY OF COMMERCE

Astonishingly large quantities of printed forms, equipment, and
supplies must be prepared and distributed throughout the Nation
and its Territories before the first family or factory is enumerated.
Each supervisor and enumerator must receive instruction and train­
ing for his task. All this is exacting and time-consuming work.
Legislation.- These epochal changes in the functions of govern­
ment and the organization of American life since 1930 have been
recognized as far as possible in the activities and services of the
Bureau of the Census under its present legal authorization. The
further extension of the Bureau’s services requires a revision of the
census law. As a result of the Bureau’s careful study of the needs
of other Federal agencies, of State and local governmental agencies,
and of business and industry, it is apparent that the following im­
portant needs be recognized soon by proper census legislation: (1)
Housing data in addition to that usually secured in the decennial
census should be obtained to serve the Federal, State, and local
housing agencies; (2) employment data as well as unemployment
and occupations^ should be gathered at the time of a population
census; (3) certain basic facts about farms must be secured more often
than every 5 years; (4) population details by small areas should
be secured at 5-year rather than 10-year intervals; and (5) some
fundamental data on the activities of business and industry should
be obtained at least on an annual basis, leaving the more complete
picture to be obtained quinquennial ly through complete national
censuses, such as those now published, the latest of which is for 1935.
Advisory committees.-—The maintenance of a high standard of
statistical work by the Bureau of the Census requires the knowledge
and advice of experts in all fields of social and economic life. On
many problems advice and constructive criticism can be secured by
correspondence and special conferences. However, the increasing
demands made upon the Bureau in various fields have become so
great as to require the attention of special advisory committees In
the sections of this report dealing with statistics of manufactures,
financial statistics of States and cities, and vital statistics, are listed
the special advisory „committees for these subjects
The reports and recommendations of these special committees are
1
*1° 116 £ellera 1 C-ensus Advisory Committee which, since
1937, has been appointed by the American Statistical Association to
advise the Director of the Census on all phases of census work. This
committee will have the major responsibility for making recommen­
dations as to changes and improvements proposed for the decennial
census of 1940.
. The Census Advisory Committee is now composed of the follow­
ing statisticians:
E. C h a d d o c k , chairman, Columbia University, New York City
a ili* / R' Benedict’ CoIleSe of Agriculture, University of California, Berke-

R obert
le y

P atjl T . C h e r in g t o n , N e w Y o r k C ity .
F r e d e r i c J . D e w h t j r s t , Twentieth
W i l l i a m F . O g b u h n , University of

W il l a r d

Century Fund, New York City
Chicago, Chicago, 111.
L. T h o r p , Dun & Bradstreet, Inc., New York City.

BUItEAU OF T H E CENSUS

21

PREPARATIONS FOR THE 1940 CENSUS

Preparations for the Sixteenth Decennial Census to be taken in 1940
have occupied much of the time of the staff of the Bureau during the
past fiscal year. The following sections are illustrative of the work
necessary to prepare for a large decennial census rather than being
exhaustive in their treatment of the Bureau’s many activities in this
work.
PREPARATION OF M A PS

In order that the enumeration of population, agriculture, business,
and the other subjects to be covered in the 1940 census may be com- •
plete and yet not involve any duplication of reporting it is neces­
sary that each enumerator should be supplied with an accurate, up-todate map showing the exact boundaries and characteristics of the
area which has been assigned to him for enumeration. The Bureau s
maps, therefore, must be revised each decade to provide for changes
in county, township, and city boundaries. In preparation for the
census of 1940, base maps are being prepared for the 3,071 counties
and for more than 3,000 cities. The county boundaries and the boun­
daries of approximately 52,000 minor civil divisions which subdivide
these counties are receiving official verification by local correspond­
ence. The city boundaries and approximately 15,000 ward boundaries
within cities likewise are being verified through correspondence with
local officials and city base maps are being prepared showing these
boundaries. It is necessary to verify all changes in political boundaries
before beginning work on the final preparation of the 140,000 enum­
erator district maps for the next decennial census.
During the past year approximately 1,850 letters have been sent to
city engineers concerning annexations and detachments. Nearly 1,000
county and city maps have been secured from local officials.
Census tracts.—The need for detailed analyses of population in the
larger cities has made desirable the reporting of census data by special,
quasi-permanent statistical areas known as census tracts. These
areas are determined by local officials and agencies in cooperation
with the Bureau of the Census. During the past fiscal year, 9 cities
having 100,000 population or more have been newly tracted, the tracts
of 5 cities have been revised, making a total of 53 cities tracted as of
June 30, 1938. Of cities having less than 100,000 population and not
in metropolitan areas, 5 have been tracted during the past year, making
a total of 8 cities in this group tracted to date. In addition, tracts have
been established in 18 areas surrounding cities of 100,000 population
or more, which completes the tract work for cities, or areas surround­
ing cities, preparatory to the census of 1940.^
Metropolitan business areas.—In connection with the 1930 Census
of Population the Bureau delineated the principal metropolitan dis­
tricts of the United States, each of which was required to have an
aggregate population of 100,000 or more, one or more central cities of
50,000 or more, and contiguous civil divisions with a density
of’not less than 150 inhabitants per square mile. While these areas
proved very useful for population analyses, they were subject to some

22

REPORT OP T H E SECRETARY OF COMMERCE

critieism from the point of view of broad economic analyses such as
those of marketing research, regional planning, public health, etc.
Businessmen have urged that the utility and scope of these districts
be broadened by increasing the number of districts and by using the
metropolitan districts as a unit for the publication of a wide ran°'e of
census statistics. A study of the redefinition of metropolitan areas
and of the possible extensions of usefulness for these districts as sta­
tistical reporting areas is now being made by a committee composed
Pi *'
^• Cherington, of New York City, chairman, representing
the American Marketing Association; T. W. Howard, United States
Chamber of Commerce, Washington, D. C., representing manufac­
turers and chambers of commerce; and Dr. Ralph J. Watkins Uni­
versity of Pittsburgh, representing the American Statistical Association. Upon the completion of its survey this committee will transmit its recommendations concerning metropolitan business areas to the
Bureau of the Census.
Township areas. In order to make possible the presentation of
accurate density statistics for minor civil divisions and to. provide
a detailed check on the acreage returns on the Census of Agriculture
a project for measuring the township and other minor civil division
areas of the United States, financed in part by Works Prom-ess
Administration funds, was started in January 1938. Funds were
provided to continue this work during the fiscal year of 1939. It
is anticipated that all minor civil divisions in the United States'will
be measured in time to publish their areas in the reports of the Six­
teenth Decennial Census. Upon the completion of this project it
is anticipated that a population density map for the entire United
States will be prepared from data secured in the 1940 census. The
township area data will make possible more detailed figures on agri­
cultural acreages, production per acre, land in farms, and other items
as well as population density.
CEN SU S OF AGRICULTURE

Trial census of agriculture,—In cooperation with the Department
of Agriculture a trial was made of questions proposed for the 1940
Census of Agriculture. The State statisticians of the United States
Department of Agriculture made the actual enumeration and for­
warded the schedules to the Census Bureau for tabulation and
analysis. They then made written reports on all items of interest
connected with the enumeration. These reports included comments
on the schedule questions themselves, the time required reaction of
the farmer to certain questions, the relative accuracy of replies ob­
tained, the difficulty of obtaining certain information, and other per­
tinent facts. These reports were summarized by the Census staff
so that all feasible improvements and suggestions may be adopted.
At a meeting of agricultural economists and State agricultural
statisticians it was moved that the Bureau of t(ie Census undertake
a second trial census of agriculture in selected areas during the
next fiscal year, after the revision of tentative schedule forms for the
1940 census but before the adoption of the final forms. This project
was recommended as of particular significance because of its probable
contribution to a better enumeration of farms and to the securing of
more accurate farm statistics in the decennial census of 1940.
&

BUREAU OF T H E CENSUS

23

Research, and sampling.—A considerable amount of research work
has been done in connection with the determination of adequate sam­
pling procedures and measuring of the quality of statistical data. A
mapping study and analysis of farm location at the last census
has been made to determine the possibilities offered not only for im­
provement of statistics but for the greatly extended use of area iden­
tification of farm properties. This has been discussed with some of
the leading soil and farm management authorities in the country,
with the general belief that a new method of approach to many farm
problems has been discovered.
d e c e n n ia l

c e n s u s o f p o p u l a t io n

Location of institutions.-—-An exhaustive list of institutions, such
as hospitals, reformatories, asylums, residence schools, etc., is being
prepared, giving the most detailed location possible for each. In
the preparation of this list a complete canvass has been made of the
records of Federal, State, and county agencies, and medical associa­
tions as well as by a canvass of directories. Federal organizations
such as Army posts, Navy stations, lighthouses, and Coast Guard
stations and ships have also been listed. I t is very essential for the
proper enumeration of the decennial census that each institution be
identified and located in advance and be enumerated as a separate
unit from the normal population.
Delimitation of unincorporated urban places.—The Bureau has de­
veloped a procedure for delimiting unincorporated urban places for
the enumeration in 1940. This work is being undertaken by the
Bureau of Public Boads in 19 States, covering more than half of
the unincorporated urban places of 1,000 or more inhabitants in
accordance with plans developed cooperatively with the Bureau of
the Census. This work (1) will serve to make possible a more ade­
quate classification of the several million inhabitants of these unin­
corporated urban places, who, heretofore, have been classified as
rural nonfarm; (2) it will provide a valuable supplement to existing
census data for the citizens of the United States, with particular ref­
erence to the needs of businessmen meeting problems of marketing;
and (3) it should give improved census coverage by facilitating the
allocation of enumerator work loads and the establishment of proper
pay rates.
Urban and rural classification.-—The classification of the popula­
tion as urban and rural on the 1930 basis has been carried back to
the first census, that of 1790, whereas the earliest census for which
such figures were heretofore available was 1880. The complete pres­
entation of these data will be made in connection with the 1940
census.
TA BU LA TIO N A ND CO M PILA TIO N OF STATISTICS

In connection with the Bureau’s work on the Trial Census of Agri­
culture, the Census of Manufactures, and the Unemployment Census
it has been possible to develop and test census operations covering
the most important and time-consuming parts of census work—the
tabulation, compilation, and publication of statistics. It is of the
utmost importance that the 1940 census be compiled rapidly, yet accu­
rately. In connection with this phase of the preparatory work for

24

REPORT OF T H E SECRETARY OF COMMERCE

the 1940 census the above projects have made possible the testing of
(a) methods of personnel training; (b) the efficiency of office ma­
chines; (c) the arrangement, handling, and tabulation of. punch
cards; and (d) the rapid summation, tabular presentation, and pub­
lication of census data.
CENSUS OF MANUFACTURES

Preliminary work on the 1937 Census of Manufactures was begun
in July 1937. This involved the preparation of a card index of the
establishments to be canvassed, the mailing of special questionnaires
requesting information pertaining to changes in the status of plants
or factories since 1935, and the revision of the schedules.
The manufacturers, through their associations, actively cooperated
in the formulation of the schedules. _ At the request of the Director
of the Census, the National Association of Manufacturers appointed
the following members to cooperate with the Bureau, in formulating
and conducting the 1937 Census of Manufactures: Fuller F. Barnes,
president of the Associated Spring Corporation, chairman; F. B.
Davis, Jr., president of the United States Rubber Co.; and O. E.
Braitmayer, vice president of the International Business Machines
Corporation. Noel Sargent, secretary of the National Association
of Manufacturers, and Eugene F. Hartley, former chief statistician
for manufactures in the Bureau, also served on this committee at the
request of the Director of the Census. This committee held a num­
ber of meetings with representatives of the Bureau and greatly
assisted in the formulation of the schedules.
The Bureau also consulted most of the leading trade associations
as to the form of the special questionnaires for their respective indus­
tries. Copies of all schedules were sent to the Central Statistical
Board for criticisms and suggestions. By the first week of Decem­
ber 1937 the general schedule and all of the 143 special schedules had
been approved and sent to the printer.
In January 1938, 231,964 questionnaires were mailed to the manu­
facturers listed to receive, schedule forms for this inquiry. By June
30, 1938, 201,978 of these schedules had been filled out by the respond­
ents and returned to the Bureau’s Washington office. In addition,
a number of returns were in the hands of Bureau representatives
throughout the country. It is believed that practically all schedules
will be received in the Washington office by August 1, 1938. The
Division of Manufactures had received 181,334 schedules from the
Field Division by the close of business June 30, 1938. Of these
39,303, or 21.7 percent, were omitted from the census because the
concerns were not manufacturers, their products were valued at less
than $5,000, or they had gone out of business prior to 1937 Of the
remaining 142,031 “acceptable schedules,” 77,317, or 54.4 percent, were
edited, and 60,677 had been verified. I t is hoped that the remaining
reports will be edited and verified and statistics released before the
end of the calendar year 1938, thus establishing a new record for
the timely compilation and reporting of these statistics.
For the first time the Census of Manufactures is securing inven­
tory data in the 1937 schedules. Inventory data have been one of
the most important omissions in our economic statistics up to the
present time, and although attempts have been made to collect such
data in the past, both by governmental and private agencies, these

BUREAU OF T H E CENSUS

25

attempts have been far from satisfactory. Two questions, one on
finished products and the other on materials, supplies, fuel, work in
process, etc., are asked for inventories, securing data for both the
beginning and the end of 1937. A second new inquiry, which appeared for the first time in the 1937 schedules, calls for the total
number of employees in this plant not reported as salaried or wage­
earning employees. This question was added to take care of per­
sonnel engaged in selling and other nonmanufacturing endeavors.
In other respects, the data called for in 1937 are the same as for
prior biennial censuses, namely, name and address of establishments;
number of wage earners and their wages; number of salaried em­
ployees and their salaries; cost of materials, supplies, containers,
fuel, and purchased electric energy; cost of contract work; value of
products; and quantities of fuel and electric energy used.
Consolidation and reorganization.—By order of the Secretary of
Commerce, effective October 25, 1937, the functions and personnel of
the Division of Current Business Statistics were transferred to the
Division of Manufactures. The collection, tabulation, and publica­
tion of the monthly, quarterly, and annual reports are now coordi­
nated with the biennial census work in the first five of the following
six office groups which were set up in the reorganization:
Group 1. Food and kindred products.
Group 2. Textiles and their products.
Leather and its manufactures.
Group 3. Iron and steel and their products, not including machinery.
Nonferrous metals and their products.
Machinery, not including transportation equipment.
Transportation equipment, air, land, and water.
Group 4. Forest products.
Paper and allied products.
Group 5. Chemicals and allied products.
t Products of petroleum and coal.
Rubber products.
Stone, clay, and glass products.
Group 6. Printing, publishing, and allied industries.
Miscellaneous industries.

Each of these groups is under the supervision of an associate eco­
nomic analyst, who reports to the chief statistician or to the assistant
-chief statistician through an economic analyst. Each analyst is in
charge of two industry groups. Where there were but two profes­
sional technical positions in the two Divisions before the consolida­
tion, there are now 12 in the consolidated Division of Manufactures.
This addition of professional personnel not only makes available
much-needed technical supervision and coordination but assures
closer relationship with, and increased service to, industrial and
business organizations.
CURRENT BUSINESS STATISTICS

The Bureau issued statistical reports for 63 industries (or com­
modities) during the past fiscal year, 51 being published monthly, 7
quarterly, and 5 annually. With the monthly and quarterly reports
being handled by the same personnel who tabulate the data and
compile the statistics for the Biennial Census of Manufactures, the
¡two types of reports will be more closely coordinated than heretofore.
108928— 38------ 5

26

REPORT OE T H E SECRETARY OF COMMERCE

Such coordination will be mutually beneficial to the current reports
and the biennial census, and will make possible the development of
better monthly indices of the various industries; indices which can:
be checked and revised every 2 years in line with the more complete
biennial census reports.
Through correspondence and interviews with executives of trade
associations and manufacturing establishments, the current reports
have been changed to meet recent developments in business practice
and to provide for future requirements. Every effort is being made
to expedite the release of the current statistics. Arrangements were
made early in 1938 for the mechanical tabulation of three important
industries which were formerly hand tabulated.
At the request of the Department of Agriculture, all wheat-flour
mills in States that would have new wheat stocks for the quarterending J une 30, 1938, were requested to report new and old wheat
stocks held in mills and mill elevators as of that date. It is planned
to make this additional inquiry once each year. Seventy-five wheatflour mills that formerly reported milling production quarterly wererequested to report monthly on flour production and quarterly on
stocks of wheat and flour.
The report on the Manufacture and Sale of F arm Equipment and
Related Products for 1937 covered 1,015 manufacturers with 1,116establishments. The principal changes in the data published for
1937 are: (1) The reporting of data on tractors, by horsepower
groups, and by steel and rubber tires; (2) the reporting of data on
combines (harvester-threshers) into three groups, by width of cut(3) the separating of stock tanks into steel and wooden; and (4)’
the reporting of steel stock pens in terms of linear feet instead of
number of pens. A considerable gain was made in the release date
of the preliminary reports for farm equipment. The first release
on tractors, combines, and grain threshers for 1937, was issued on
J ^ u a r y 27, 1938—the similar report for 1936 was issued on April
o, 1937.
r
CENSUS OF ELECTRICAL INDUSTRIES

. E;l0,h fifth year the Bureau of the Census conducts a census cover­
ing telephone and telegraph communications; electric light and power
stations; and street railway, motor-bus, and trolley-bus operations.
Ine 1937 Census of Electrical Industries is now in process.
In January 1938 approximately 47,500 schedules were mailed to
telephone companies (most of which are connecting lines without
switchboard facilities), 600 schedules to telegraph and radio-telegraph companies 5,000 to electric light and power companies, and
3,000 to street railway, motor-bus, and trolley-bus concerns.
By the end of June approximately 42,300 telephone schedules, 500'
telegraph schedules, 3,200 electric light and power schedules, and
il? , street railway and bus schedules had been received in the
Washington office.
CENSUS OE BUSINESS

In February 1938 the Bureau began work on a sample survey off
retail and wholesale trade, the purpose of which is to provide^ in­
dexes of change m these lines of business activity since the 1935Census of Business. As m the case of the Census of Business, the-

BUREAU OF T H E CENSUS

27

1937-38 Census Survey of Business is being undertaken with funds
made available by the Works Progress Administration.
Arrangements were made to collect, by means of a niail canvass,
reports from a large sample of independent and chain retail and
wholesale stores using, as a basis for the mailing list, reports received
from establishments which reported at the time of the 1935 census,
but eliminating retail establishments which reported sales of less than
$5.000 for that year, wholesale establishments which reported sales
o f”less than $25,000 for that year, and also certain classifications
which were either covered by other statistical series or could not be
canvassed satisfactorily by mail. The return of approximately
250,000 acceptable schedules is expected.
The Census Survey of Business will secure data for the four quar­
ters of 1937 and the first two quarters of 1938. All of the informa­
tion will be collected and compiled for identical establishments. The
retail schedules called for the reporting of net sales showing cash,
open account, and installment sales separately, pay-roll data, pro­
prietors’ and firm members’ withdrawals, and stocks on hand for the
specified periods.
The inquires on the wholesale questionnaire call for sales data by
quarters and pay-roll information for the entire year 1937 and the
first half of 1938. Sales data relative to spot cash, credit less than 10'
days and credit of 10 days or more, for the entire year 1937 and for
the first 6 months of 1938, and stocks on hand for specified periods
will also be reported. Additional trend information for both retail
and wholesale trade will be made available by the presentation of
sales and pay-roll information for the year 1935.
During the past fiscal year, the Bureau prepared 13 special tabula­
tions of data pertaining to the 1935 Census of Business. These tabu­
lations were requested by various individuals and corporations at a
total cost to such individuals and corporations of $6,610.22. The
most important of these tabulations consisted of an analysis by small
areas of the retail trade in Los Angeles, Calif., for 1935, 1933, and.
1929, which was prepared for a special committee of interested busi­
ness groups in that city.
AGRICULTURAL INFORMATION

The regular informational work relating to agriculture has ex­
panded far beyond the routine answering of correspondence. In
addition to writing approximately 3,000 letters furnishing informa­
tion and census agricultural material, many thousands of requests for
State, county, and United States figures were answered. This has
developed further informational and consultation work by this
Division.
The staff is called upon to answer technical problems of business,
agriculture, and education where statistics are based largely upon:
the census. The members of the Bureau’s staff have become the con­
sultants upon many subjects requiring specialized knowledge of the
interpretation and use of census data. A few of such problems are
as follows: (a) Crop insurance; (b) changes in real estate values ;
(c) crop changes affecting mortgages; (d) irrigation problems; (e)
tenancy; (/) shift in population ; (g) farm income.

28

REPORT OF T H E SECRETARY OF COMMERCE

The service work performed by this Bureau has become a major
part of the interim work. A total of 181 photostats of minor civil
division figures and special tabulations were paid for by outside
agencies, and 67 tabulations made without charge for governmental
agencies and private parties.
COTTON AND COTTONSEED

During the past season the Bureau received regular reports from
approximately 14,300 cotton ginneries, 500 cottonseed oil mills, 300
refiners and consumers of cottonseed oil, 2,500 storage places such as
warehouses and compresses, and from 2,000 cotton-consuming estab­
lishments. Because of these reports there are more complete, current
statistics on cotton than on any other major agricultural commodity.
Semimonthly reports are issued for cotton ginned, and monthly for
cotton consumed and held, cotton spindle activity, and cottonseed and
its major products. A special report on the bales and pounds of the
several kinds of linters and other cotton fiber produced by the oil
mills was issued.
Closely related to the cottonseed oil reports, because of their com­
petitive market, are other vegetable and animal fats and oils. Quar­
terly reports are received from 4,000 factories producing and con­
suming these oils and from 100 storage establishments.
All of these reports are compiled and released rapidly: The cotton
ginning report is released on the 8th day following the report date;
the report on cotton consumption, imports and exports, and stocks,
on the 14th day; the cottonseed and products report, on the 12th day;
and the animal and vegetable fats and oils report, within the fol­
lowing month.
FINANCIAL STATISTICS OF STATES AND CITIES

Advisory committee.—Especially difficult problems of statistics and
accounting are involved in the compilation of uniform financial sta­
tistics for States, cities, and other governmental units in the United
States. The Secretary of Commerce and the Director of the Census
have appointed the following special advisory committee on financial
statistics to make recommendations concerning the Bureau’s reports
in this field. This committee held three meetings in Washington dur­
ing the past year to study the work of the Bureau and make recom­
mendations thereon:
A. M. H tllhotjse, National Committee on Municipal Accounting, Chicago, 111.
F rederick L. B ird, director of Municipal Research, Dun & Bradstreet, Inc., New

York City.
C harles J. Fox, city auditor, Boston, Mass.
D an O. H oye, city controller, Los A ngeles, C alif.
W eilles A. Gray , finance department, Chamber of Commerce of the United States,

Washington, D. C.

C arl H. C hatters , executive director, Municipal Finance Officers’ Association,

Chicago, 111.
L. M cCarthy D ow ns , auditor of Public Accounts, Commonwealth of Virginia,
Richmond, Va.

Financial statistics of cities.—The final annual reports for 1935 and
1936 were published during the past fiscal year. These reports present
the data for each of the 94 cities in the United States having a popu-

BUREAU OF T H E CENSUS

29

lation of 100,000 or more. The 1936 inquiry was expanded to provide
new (or more detailed) data on number of employees by departments,
interest rates on bonded debt, tax collections and delinquency, grants
in aid and relief expenditures. A reclassification of accounts was
made and will be used in the 1937 report which is now being compiled.
Value of exempt real property.—A special compilation of the value
of real property exempt from general taxation for State and local pur*
poses was made and released. The data embodied in this release were
available in only 52 of the 94 cities having a population of over 100,000.
An attempt is being made to secure a complete coverage on this subject
for 1937.
.
.
Financial statistics of States.—The annual compilation and publica­
tion of financial statistics for States has been resumed, the first report
to cover the year 1937. These reports were discontinued m 1933, fol­
lowing the publication of the report for 1931. In order to reflect the
changes and increased complexities of State finances it has been neces­
sary to revise the classification of accounts. A preliminary revised
classification has been adopted and will be used in the 1937 inquiry.
Debt of State and local governments, 1937—In cooperation with
the United States Treasury, an intercensal inquiry of State and local
debt was made. The inquiry included 48 States, 607_ counties, 983
cities, and 264 special tax districts. The results of this inquiry are
being analyzed by the Treasury Department, and it is anticipated that
a report of these data will be published by that Department.
Chain store tax collections, 1937.—In cooperation with the Bureau
of Foreign and Domestic Commerce, an inquiry was made of chain
store tax collections in the 17 States having such tax. An analysis
of these data is being made by the Bureau of Foreign and Domestic
Commerce
Digest of State taxation and revenue laws.—The digest of State
taxation and revenue laws which is compiled by the Bureau has been
brought up to date for the following States: Arkansas, Colorado,
Georgia, Indiana, Louisiana, Minnesota, Mississippi, New Hampshire,
North Dakota, Bhode Island, South Dakota, and West Virginia. A
series of digests has been started on the income and inheritance tax
laws of all States having such laws.
VITAL STATISTICS

Advisory convmittee on vital statistics.—The special committee, ap­
pointed by the Secretary of Commerce, to advise the Bureau con­
cerning its work in the field of vital statistics held one official
meeting in Washington during the past year. Many of its recom­
mendations have already been adopted in the Bureau’s procedures
and reports. The membership of this committee is as follows:
H aven E merson , College of Physicians and Surgeons, Columbia University, New

York City.
Lotus I. D ublin , Metropolitan Life Insurance Co., New York City.
E gbert E. C haddock, Columbia University, New York City.
L owell J. R eed, Johns Hopkins University, School of Hygiene and Public Health,
Baltimore, Md.
R obert Oi .esen , Assistant Surgeon General, United States Public Health Service,
Washington, D. C.
W. A. D avis , State registrar of vital statistics, Austin, Tex.

30

REPORT OF T H E SECRETARY OF COMMERCE

J. Y. D e P orte, director, division of vital statistics, State department of health,
Albany, N. Y.
A. J. C hesley . secretary and executive officer, State department of health, St.
Paul, Minn.
I sadore F al k , chief, health studies, Bureau of Research and Statistics, Social
Security Board, Washington, D. C.

Revision of annual vital statistics volumes.—A survey of the form
und use of the vital statistics volumes, Mortality Statistics, and Birth,
Stillbirth, and Infant Mortality Statistics, was made during the past
year. On the basis of this survey these two volumes will be discon­
tinued and two other volumes will take their place. This revision
will modernize the published tables and present the data most needed
for current problems without destroying the essential comparability
of the summary statistics. One new volume, Vital Statistics of the
United States—Part 1, will consist of revised tabulations based on
place of birth or death. The second volume, Vital Statistics of the
United States—Part 2, will consist of new tabulations based on place
of residence. The first data to be published in this new form will
be for the year 1937.
In order to give an indication of widespread epidemics and current
trends in natality a new publication called the Monthly Vital Sta­
tistics Bulletin is now compiled. This bulletin gives'each month
the number of birth and death certificates received in each State
health department.
Revision of the international lists of causes of deaths.—In order
to secure comparability between the different nations compiling mor­
tality statistics an Internationally accepted list of causes of death
based upon a standard and uniform system of classification was
adopted in 1900. This list has since been revised at the end of each
decennial period. The next international conference for such revi­
sion will convene in Paris in October 1938, and will be attended by
the chief statistician for vital statistics, Bureau of the Census.
In preparation for this conference the Bureau has conducted studies
and has prepared tabulations relating to the general problem of cause
of death classification, and the equally important question of primary
cause selection when multiple causes are reported. The following
are the most important of these studies and tabulations:
1. The 7,000 or more terms comprising the international list have
been placed on printed punch cards and have been listed according
to their acceptability and the degree of fatality which they represent.
2. A study is now in progress which will disclose the frequency of
actual medical terms used by doctors in reporting some 20,000 deaths
during 1935. _ These data are essential for the inclusion of proper
terminology in the revision of the international list.
3. A table has been prepared showing the reporting of multiple
causes of death for all States and the United States by all 200 causes
included in the list. Similar tables are being received from various
foreign countries for comparative purposes, according to a plan sug­
gested by this Division.
Ar' extensive tabulation has been prepared on contributory causes
of death. This is in the nature of an association table. For the
United States only two such tables have ever been published before
viz, those for 1917 and 1925.
’

BUREAU OF T H E CENSUS

31

5. A detailed tabulation has been prepared on contributory causes
involved in maternal mortality.
.
6. An assemblage of 1,032 death certificates showing more than one
cause, submitted to 42 foreign countries in 1935, is being analyzed
for comparison of coding procedures followed by the countries
concerned.
,
.
Revision of birth? deaths and stillbirth cert'iftcdtes. rsew iornis tor
the United States standard certificates of birth and death are prepared
by the Division of Vital Statistics every decade. Basic work on the
1939 revision was started in 1937. After surveying the State certifi­
cates now in use, a set of three questionnaires was sent to physicians,
health officers, nurses, midwives, and others in the field of vital statis­
tics. An analysis of the replies, together with recommendations based
thereon, was presented to the Vital Statistics Special Advisory Com­
mittee. The approval of other technical groups and organizations
will be secured in the next 6 months.
Nonresidence study on cancer, tuberculosis, and maternal mortal­
ity.—Accurate residence death figures for cancer, tuberculosis, and
maternal mortality have been in great demand by health agencies and
research organizations. In November 1937, with funds provided by
the Works Progress Administration, the Bureau initiated a project to
make a special tabulation of these data.
. .
Institutional code.—In cooperation with the American Medical
Association, the Bureau is now compiling a classified list of all institu­
tions within the United States from which deaths may be reported.
This list at present contains over 12,000 entries, and within another
year it will contain nearly 20,000. I t will be made available to other
governmental departments, to State health departments, private in­
stitutions, and universities, and all others engaged m work involving
medical institutions and their classification. If this list is accepted
and adopted by State and local agencies, it will make possible direct
comparability among various reports on institutional morbidity, mor­
tality, and population.
POPULATION

Estimates of population.—.D uring the past year the Bureau has
prepared and issued estimates of the population of the United btates,
by States, as of January 1 and July 1, 1937, with comparative esti­
mates for each year from 1933 to 1936. An estimate of the population
of the outlying territories and possessions of the United States as of
January 1,1937, and July 1,1937, was issued.
On account of the difficulty in obtaining satisfactory data on inter­
nal migration and the near approach of the Sixteenth Decennial
Census, estimates of population will be made only for the United
States as a whole until after 1940.
,
,
Special population censuses.—Several special censuses, under tne
supervision of representatives of this Bureau, were taken during the
^Censuses of Sterling and Kock Falls, 111., and certain adjacent town­
ship areas, taken as of June 30, 1937, showed a total population of
19 178
A census of Poplar Bluff, Mo., taken as of April 14, 1938, revealed
a population of 10,809.

32

REPORT OF T H E SECRETARY OP COMMERCE

Puerto Rico census.—The results of the special Census of Puerto
Rico, taken under the auspices of the Puerto Rico Reconstruction
Administration and the immediate direction of an official of the Census
Bureau in December 1935?were published, in one volume. This volume
comprised the three bulletins (bilingual in form) giving number and
distribution of inhabitants, characteristics of the population, includ­
ing occupations, and data on agriculture.
Institutional population.—The annual reports on Patients in Hos­
pitals for Mental Disease and on Mental Defectives and Epileptics
m Institutions have been completed and will be issued early in Sep­
tember. These reports cover private and “other public,” as well as
State and Federal, institutions. The change in the form of the sched­
ules for 1936, at the request of the National Committee on Mental
Hygiene, delayed the printing and mailing of the schedules and
somewhat retarded the compilation and publication of the results.
Requests have been received from a number of organizations for
the earlier publication of statistics for Patients in Hospitals for Mental
Disease and Mental Defectives and Epileptics in Institutions. This
has not been possible because of the failure of some institutions to
return the schedules promptly to this Bureau. Although institutional
stalls have cooperated splendidly m furnishing the statistics requested,
» fToohA Ve> en 1unable to meet tlie desired time schedule. Reports
for 1937 had not been received at the close of the fiscal year for about
14 percent of the institutions canvassed.
« Social-economic classification of workers.—A. special report giving
A Social-Economic Grouping of Gainful Workers in the United
tK Se®’ I 'f 0! ,was
m February. This is the first report of the
¡^ rb h sh e d b y
Census Bureau and represents a marked depar* j
f 1 tlie
of presentation of occupation statistics during the
past century. The publication of this additional grouping of the 1930
XhAiSlWaS I” resP°nse.t'? a growing demand for the classification of
gainful workers by social-economic groups. The first edition of the
available.aS 6Xhausted 111 a short time and a second edition is now
STATISTICS OF CRIME

The report on Prisoners in State and Federal Prisons and Refor­
matories for 1936 was issued during the year, and also the report
on Judicial Criminal Statistics for 1935. The report on Tudhual
Criminal Statistics for 1936 will be issued in July, h h is report like
the report for 1935, covered 30 States.
P ’
^.n ,exPeriment 1J> a new method of reporting judicial criminal
£ i ° L Wf undertaknen during the past year in cooperation with
the clerks of court m 50 Ohio counties. Individual reports were sent
m by these clerks on each criminal case filed and disposed of during
the year. mstead of the usual annual tally sheet summary. This
method of reporting greatly increases the reliability of the statistics
and. permits uniform classification and treatment of the returns from
of
mAkeS P ? flble a much more intensive analysis
of the data collected. A special report was prepared, analyzing the
statistics received from the 43 counties that furnished complete reearly date1937 ^ ^ method< This rePort will be published at an

BUREAU OF T H E CENSUS

33

POPULATION INDEXES

With the passage of Federal and State legislation providing for
old age pensions, and with the increasingly frequent requirements
of age certification by schools, insurance companies, employment
agencies, and other organizations, it became impossible for the
Bureau to keep abreast of its work of conducting age searches under
the existing system. The Bureau’s population list from which the
desired personal information was obtained was in the form of bound
volumes of original census schedules made out by enumerators in
their house-to-house canvass. To locate a given individual in these
volumes it was first necessary to ascertain his exact place of residence
in terms of the political boundaries existing at the time of the census.
While this could be done in some cases in a few minutes, in others it
took days or even weeks of careful searching.
In order to reduce the time and cost of each search, to meet the
increased demand and to prevent the utter destruction of the price­
less census records it became necessary to construct alphabetical in­
dexes of the population. The first such index, containing more than
31,000,000 family (or individual) cards, and relating to the decennial
census of 1900, was undertaken in 1935 and completed in 1937 with
funds provided by the Works Progress Administration. This index
is now in use in the Bureau and has greatly reduced the cost of record
searcliGS.
Although the index for the census of 1900 was very useful, it did
not, of course, give data for persons who áre now less than 37 years
of age. Therefore, a similar index of persons enumerated in the
census of 1920 was undertaken in New York City with funds pro­
vided by the Works Progress Administration. The compilation of
this index is now in progress. On June 30, 3,029 persons were at
work transcribing, verifying, and indexing the nearly 58,000,000
•cards which will be required by this index. When completed this
will be the largest name file in the world and will make readily avail­
able age records and other information for the 105,000,000 persons
enumerated in January 1920.
.
In order to increase its availability and reduce the space required
for its retention in the Bureau, the index of 1900 has been completely
recorded on 16 mm michrofilm in the Bureau’s laboratory. This val­
uable device has also been used to prevent the wearing out of original
documents. The original schedules for the population censuses of
1840, 1850, 1860, and 1870 have been photographed, and the filming
of the 1880 census is now in process.
SEARCHING OE POPULATION RECORDS

The need for legally acceptable evidence concerning age and other
personal facts by applicants for old-age pensions, annuities, retire­
ment benefits, working papers, passports, etc., have been evidenced
by the 104,564 requests for such information received by the Bureau
during the past year. In addition, 8,160 visitors called either to
make personal requests for age information or to examine those rec­
ords which are open for public inspection. On June 30 there were
on hand 48,211 unanswered applications requiring record searches.
Because of the efficiency of the 1900 card index, the Bureau is urging

34

REPORT OF T H E SECRETARY OF COMMERCE

each State, county, and welfare organization to advise all applicants
to furnish their place of residence in 1900, if possible.
CENSUS OF RELIGIOUS BODIES

In conformity with the provisions of the permanent Census Act
passed in 1902, the Bureau is now taking the Fourth Decennial Cen­
sus of Beligious Bodies. This census will give data as to the mem­
bership, denominational affiliation, property and other fiscal matters,
and an authentic summary of the history of each sect. By June 30,
1938, a total of 167,654 schedules had been received from churches
and other religious organizations throughout the United States. I t
is expected that reports will be received from 266 separate denomina­
tions, all but a few of which were included in the 1926 census.
MECHANICAL LABORATORY

The Bureau’s mechanical laboratory was engaged during the year
in the maintenance of the Bureau’s mechanical equipment, the re­
building of unit tabulators, sorters, counting units, key punches, and
verifiers, and the building of new sorters, gang punches, and counting
units for the 1940 census.
PUBLICATIONS

Statistical Abstract of the United States.—The compilation of this
standard reference work on governmental statistics was transferred
from the Bureau of Foreign and Domestic Commerce to the Bureau
of the Census in October 1937. The more than 800 pages of statis­
tics in this publication are derived from publications and special
reports of various departments and contain practically all of the
important series relating to social, economic, and industrial life of
the United States. The scope of this volume is being studied with
a view to making this compilation the equivalent of a national sta­
tistical yearbook.
National censuses and special reports.—
Biennial Census of Manufactures, 1935—Fifty-three industry reports.
A social-economic grouping of the gainful workers of the United States, 1930.
Part-time farming in the United States, 1935.
Wage earners in manufacturing establishments, by size of establishment and
industry, 1933 and 1935.
Wage earners, by months, for all manufacturing industries, 1929 to 1935.
Nonwage earner personnel in manufacturing establishments, 1935.
Cost of materials and containers, fuel, and purchased electric energy for all
industries, 1929 and 1935.

Other publications.—
ANNUAL REPORTS

Vital statistics :
Birth, stillbirth, and infant mortality statistics, 1935.
Mortality statistics, 1935.
Vital statistics—Special reports—Volumes III and IV.
Financial statistics of cities of over 100,000, 1935.
Financial statistics of cities of over 100,000, 1936.
Judicial criminal statistics, 1935.
Prisoners in State and Federal prisons and reformatories, 1936.
Cotton production and distribution—Season of 1936-37.
Cotton production—Crop year 1937.
Animal and vegetable fats and oils, 1933 to 1937.

BUREAU OF T H E CENSUS

35

Manufacture and sale of farm equipment and related products, 1937.
Clay products, nonclay refractories, and sand-lime brick, 193b.
Production of lumber, lath, and shingles, 1936.
Lumber cut by 1,018 identical mills, 1937 (preliminary report).
Paper production, 1936.
Pulpwood and wood pulp, 1936.
M O N T H L Y B U S IN E S S AND IN D U S T R IA L REPORTS

Air-conditioning systems and equip­
ment.
Automobiles.
Automobile financing.
Bathroom accessories.
Boots, shoes, and slippers (other than
rubber).
Cellulose plastic products.
Commercial steel castings.
Convection-type radiators.
Cotton, leather, and allied garments.
Distillate oil burners.
Domestic pumps and water systems,
and windmills.
Domestic water-softening apparatus.
Electric industrial trucks and tractors.
Fabricated steel plate.
Fire-extinguishing equipment.
Floor and wall tile.
Galvanized range boilers and tanks for
hot-water heaters.
Hosiery.
Imported dates.
Knit fabric gloves.
Knit wool gloves and mittens.
Leather gloves and mittens.
Malleable iron castings.
Measuring and dispensing pumps
(gasoline, oil, etc.).
Mechanical stokers.

Men’s, youths’, and boys’ clothing cut..
Methanol.
Oil burners.
Paint, varnish, lacquer, and fillers.
Paperboard.
Plastic paints, cold-water paints, and
calcimines.
Plumbing brass.
Porcelain enameled products.
Prepared roofing.
Public merchandise warehousing.
Pulverizers.
Pyroxylin-coated textiles.
Railroad locomotives.
Red-cedar shingles.
Steel barrels and drums.
Steel boilers.
Steel office furniture, shelving and
lockets, and fire-resistive safe in­
dustry products.
Structural-clay products.
Sulphuric acid.
Superphosphates.
Terra cotta.
Underwear and allied products.
White-base antifriction bearing metals;.
Wheat ground and wheat-milling prod­
ucts, by States and capacity groups.
Wool consumption.
Wool-machinery activity.

QUARTERLY B U S IN E S S A ND IN D U S T R IA L REPORTS

Wheat and wheat-flour stocks.
Edible gelatin.
Electric locomotives (mining and in - Wheat ground and wheat-milling prod­
ucts (merchant and other m ills).
dustrial).
Wool stocks.
Electrical goods.
Lacquers.
WORK DONE FOR OTHER FEDERAL OFFICES AND OUTSIDE
ORGANIZATIONS

Unemployment census, 1937.—This national, voluntary registration
of unemployed and partly unemployed persons in the United States
was taken by a special organization under the direction of Adminis­
trator John D. Biggers. The field work for this registration was con­
ducted by employees of the Post Office Department, and the editing
and tabulating of data and the preparing of final tables for publica­
tion were done in the Bureau of the Census. This was the largest
editing and tabulating job done for another agency during the past
decade. I t involved the examination, coding, and preparing of punch
cards of nearly 13,000,000 registration schedules, the tabulation of
165 000,000 machine card units, and the preparation of more than 2,500
typewritten tables for offset reproduction. In addition to the registra­
tion phase of the unemployment census of 1937, the Bureau also edited

36

REPORT OF T H E SECRETARY OF COMMERCE

and tabulated the data for the enumerative check census in which a
complete house-to-house canvass was made of over 2,000,000 persons
residing on a sample of 1,640 postal routes throughout the United
'States. Several members of the technical and administrative staff of
the Bureau devoted full time to this work and contributed materially
to the prompt completion and excellent presentation of the unemploy­
ment reports.
Civilian Conservation Corps.—Monthly tabulations of the personnel
and of the work done in all Civilian Conservation camps in the United
States and outlying possessions, which began in July 1933, were con­
tinued during the year. The camps are under the direction of the
Director of the Civilian Conservation Corps and the immediate tech­
nical supervision of 16 cooperating agencies. These tabulations, which
are prepared from approximately 2,500 monthly camp reports, present
detailed statistics on personnel, the amount of work completed, and
man-days, by services and by type of job, for new construction and
maintenance. Similar tabulations are made quarterly, by types of
land for each service, and an annual tabulation by States and out­
lying possessions.
Tabulation data for other agencies.—The Bureau’s position as cus­
todian of confidential census reports, together with its staff of trained
statisticians and its unique tabulating equipment, enables it to make
many extremely valuable special tabulations for particular areas and
for particular subjects. In addition to its services in making special
tabulations of census data for other Federal agencies and for private
agencies and individuals the Bureau serves as a “tabulating service”
agency for other organizations. During the past year the Bureau
did special tabulating jobs for the following governmental agencies:
Bureau of Foreign and Domestic Commerce, Federal Power Com­
mission, Emegency Conservation Work, Federal Reserve Board De­
partment of Agriculture, Department of Justice, and Bureau of Air
Commerce. In addition, special tabulations of census data were made
for the following State and private organizations: Colorado State
College; Connecticut State College; Virginia Agricultural College;
City I lanmng Commission of Memphis, Tenn.; Baltimore, Md., City
Health Department; Massachusetts State Planning Board; National
Association of Leather Glove Manufacturers; International Associa­
tion of Garment Manufacturers; Food Research Institute of Stanford
University; Tanners’ Council of America; United Shoe Machinery
Corporation; Du Pont de Nemours & Co.; United States Steel Corporatmn; General Electric Co.; Association of American Producers
Si •IV?leStlCJ. Inedlble Fats; Industrial Council of Cloak, Suit, and
Skirt Manufacturers, Inc.; Devoe & Raynolds, Inc.; National Asso­
ciation of Wool Manufacturers; Scripps-Howard Newspapers; A. C.
Nielson Co.; Western Electric Co.; several telephone companies in
Wisconsin, Council for Social Agencies, Hartford, Conn.; and Mar­
ket Data Bureau, New York City.
PERSONNEL

Training courses for employees.—During the past year the in-service
training program for Bureau employees, inaugurated early in 1935
had a total enrollment of more than 100 students. Courses were given
an the following subjects: Elementary statistical methods, principles

37

BUREAU OF T H E CENSUS

of statistical research, accounting, economic geography, and Bureau
correspondence and business English. These courses are taught by
members of the technical staff. Through the affiliation of these
courses with the in-service program of a local university it was pos­
sible to give academic credit to students enrolled in the Bureau’s
classes.
Appointments and separations.—In addition to the number of Bu­
reau employees shown in the following table, there were on the rolls
on June 30, 1938, 4,498 temporary special agents (493 in the Wash­
ington office and 4,005 outside of Washington) appointed for limited
periods at $1 per annum, or without compensation (employees of
other Government services). Of this number, 368 special agents
without compensation were employed on the four Works Progress
Administration projects in the Washington office, 418 on the project
in Philadelphia, and 3,034 on the project in New York City. There
were 594 appointments of special agents at $1 per annum, or without
compensation, made during the fiscal year in the Washington office
and 5,035 outside of Washington, with 243 and 1,258 separations,
respectively.
Bureau
total

Washington
office

FieM

Total employees on roll, June 30,1938.

2,196

1,075

1,12V.

Perm anent-.....................................................
Tem porary.......................................................

1,496
700

700
375

i 796
325

Total appointments, fiscal year...........

2,706

2,172

534

Perm anent— ..................................................
T em porary,—..................................................

156
2,550

43
2,129

113
421

Total separations, fiscal year................

3,042

2,381

661

Terminations.......................... .........................
Expirations of appointments------------------Transferals-.....................................................
Resignations----------------------------------- —
Retirements----------------------------------------D e a th s ............................................................

1,380
1,181

1,309

71
495
7
84

202
250
16
13

686
195
166
16
9

4

1 Includes special agents for cotton and for vital statistics, and the Bureau’s advisory committee.

APPROPRIATIONS
Appropriations and other funds made available to the Bureau of the Census, by
source, fiscal year ended June 30, 1938
Source of funds
Purpose

Work relief projects:
Work for other Federal agencies:

Total

Allotted or
Bureau ap­ transferred
other
propriations from
Federal
agencies

$3,110,752

$2,065,000

2,065,000

2,065,000

$1, 035,397

33.000
50.000

33.000
50.000

850,000
102,397
10,355

850,000
102,397

Nongovern»
mental'

$10,355

10,355

BUREAU OF FOREIGN AND DOMESTIC COMMERCE
INTRODUCTION

The past fiscal year has been marked by an unusual number of
broad-scale changes in world affairs—involving alterations in commer­
cial and economic conditions—and since these have bad an immediate
effect upon the conduct of American business, the Ihireau of l ore g
and Domestic Commerce has been called upon to respond to many
demands for reliable data and for interpretations of the new d e y lw ments. In the Bureau’s offices at home and abroad the result oi this
has been apparent in a variety of ways. The work has, of necessity,
been speeded up. The volume of factual studies and of correspond­
ence and personal interviews has increased to a notable decree. Inti
macy of touch with the flow of events, and timeliness in the dissemi­
nation of the data ascertained, have become ever more vital. lo tall7
unexpected circumstances have arisen m various quarters of the bus ness world, both abroad and in this country, and in certain cases this
has made it necessary for the Bureau to mitiate new surreys of a
novel nature, or to establish new units m its staff to handle matters
that have been the subject of keen and immediate interest.
Naturally, one of the major factors influencing the Bureau s work
during the fiscal year 1937-38 has been the domestic recession m busi­
ness, together with the recuperative forces that have made themselves
felt in recent months. One notable characteristic of American busi­
ness during the recession has been the excellent manner m which our
export trade has been sustained; relatively, it has enjoyed a really
remarkable prosperity. Realizing this encouraging fact, and search­
ing zealously for orders to compensate for the diminution in the
volume of domestic sales, many producers have turned to the foreign
field with new eagerness and vigor. Inevitably their efforts to attain
success in that promising field have meant a great increase in demands
upon this Bureau for service—since manufacturers have long been
aware of the effective trade-promotion facilities afforded by the
Bureau and its foreign offices. Not in many years has there been such
a lively demand for foreign-trade facts and for help m the establish­
ment of actual business-building contacts. There is ample testimony
to the effect that the Bureau’s response during the past year has been
a source of gratification to the business community at large.
In the domestic field the Bureau has, as always, striven diligently
to strengthen all the forces working toward the stimulation of current
business activity and the reinforcing of the broad bases of the economic
structure. Thus, in 1937-38, its several divisions have been exception­
ally active in keeping most intimately in touch with day-to-day devel­
opments, and in broadening the scope of their fact-finding m the ways
most directly calculated to bring salutary results quickly. At the
39

40

REPORT OF T H E SECRETARY OF COMMERCE

same time the Bureau has deemed it wise to direct its attention increas­
ingly to various studies of long-range usefulness.
COOPERATION W IT H OTHER GOVERNMENTAL AGENCIES

. -4-s *n oOieT recent years, the Bureau has cooperated frequently and!
intimately with other units and agencies of the Federal Government
and, to a certain degree, with branches of the State governments.
S u c h collaboration has embraced practically every one of the impor­
tant governmental units in Washington. It has been concerned
(among other subjects) with such topics as the national defense ; theobtaining of essential raw materials from abroad ; technical advice on
specifications and purchases; customs problems; loans by the Recon­
struction I inance Corporation ; resources of the United States ; the
organization and financial structure of American firms ; fair-tradepractices ; commercial standards ; aviation subsidies abroad ; foreign
tax laws and social legislation; reciprocal trade agreements; and
countless other diverse matters.
TRADE-AGREEMENT ACTIVITIES

This Bureau has from the beginning played a vital role in the
development of the trade-agreements program. The Bureau’s repre­
sentatives on the interdepartmental committees which comprise the
trade-agreements organization, as well as its special Trade-Agreements
Unit, were particularly active during the past year and, through their
expert knowledge, were able to make an extremely valuable contribu­
tion. To this work a number of the Bureau’s most competent and
experienced officers, with long terms of practical service in the foreignheld, have been assigned.
6
Ili a^dition to sharing the general responsibility for carrying on:
the trade-agreements program, the Bureau continued to prepare the
detailed studies which serve as the basis for determining the conces­
sions that should be requested from the foreign government when a
decision to undertake the negotiation of a trade agreement with a
particular country is reached.. Although these studies are prepared
by the Trade-Agreements Unit all of the divisions of the Bureau,
both industrial and technical, which might be able to supply material
v?H10n re^arding exis.ting obstacles to the development of
trade rvith the country m question, are called upon to contribute their
specialized knowledge. When all pertinent information, including
by W
fir.ms or didividuals through the Conv
mittee for Reciprocity Information, has been assembled, it is carefully
nV ' hf i T 6T y “ Sle and P^Pared for submission to the appropi late interdepartmental committees
P
Studies covering hundreds of individual commodities were cornsigned on
o AUrch
S ^ 7,f 1938,
r candh also
V m a«,r?e.men.t
Czechoslovakia,,
signed
anticipationwith
of agreements
with
the United Kingdom, Canada, Turkey, Ecuador, and Venezuela for
hich countries official announcement of intention to negotiate has
been made. The negotiations with the United Kingdom and C anadanow under w ay-are of exceptional importance and required unisuallv
thorough preparation. In addition, similar studies w e r e n S e o f l
large number of other countries throughout the world where there-

BUBEAU OP FOREIGN AND DOMESTIC COMMERCE

41

appear to be opportunities for obtaining the removal of existing bar­
riers to the sale of American products and where the conditions essen­
tial to the conclusion of a reciprocal trade agreement seem to exist.
Thus, for these countries the ground work has been completed and
the necessary data are already available, if and when it should be
found feasible to undertake trade-agreement negotiations.
INDUSTRIAL DIVISIONS
automotive-aeronautics trade

The Automotive-Aeronautics Trade Division has devoted a sub­
stantial amount of time and effort to consultation with manufacturers
and exporters as to the most profitable means of utilizing the Bureau’s
services. Three phases of this program which have been stressed
during the year are: The purpose and “mechanics” of the trade-agree­
ments program and the manner in which it would benefit the automo­
tive and aeronautical industries; familiarizing the aeronautical in­
dustry with the advisability of detailed information covering export
possibilities and actual shipments and the consequent necessity for
the organization within that industry of an export department; and
the importance to exporters and shipping brokers of furnishing accu­
rate export declarations.
Art investigation of the classification of automotive parts for as­
sembly was made, and certain changes were effected in the export
classification for engines. A study on the manufacture of refrigerator
bodies was completed. A survey was begun as to the type of safety
glass required for use in motor vehicles abroad. A great number of
plans covering the scrapping of obsolete automobiles were reviewed.
An American company secured an order for trucks valued at $500,000
through the Bureau’s intercession with a foreign government in ar­
ranging for an extension of the time allotted for certain trials. Re­
cently an important firm of aircraft manufacturers credited this
Division with rendering services which assisted them in obtaining
export orders and thus enabled them to reopen their plant after a shut­
down of several months.
During the first 6 months of 1938, the oversea demand accounted
for 21 percent of the total American output of automotive vehicles,
whereas the customary ratio of exports to production is approximately
11 percent. Aeronautic shipments advanced by 128 percent over the
January-June totals of 1937.
The Division participated in the Convention and Road Show of the
American Road Builders Association, the International Aircraft
Show, the Automotive Service Industries Show, and the National
Automobile Show. Exhibits were prepared and maintained at the
first two mentioned.
chemical

The Chemical Division made a significant contribution on the print­
ing-ink situation as a part of the World Graphic Arts Survey, a joint
study by four industrial divisions. Work was continued over the
year on a world survey covering the synthetic organic chemical situa­
tion, with a view to amassing confidential and other facts on national
preparedness, public health, and other vital factors related to synthetic
108928— 38------ 6

42

REPORT OF T H E SECRETARY OE COMMERCE

organic chemicals. The results of this study will be published so far as
is practicable. A world survey was made of industrial explosives,
results of this study being made available to interested business firms
and to several Government departments. On behalf of the American
medicinal industry, a world-wide study has been under way of phar­
maceutical, medicinal, and proprietary preparations, availability of
essential raw materials, markets for finished goods, and other eco­
nomic, commercial, and quasi-scientific facts. Because of the growing
interest throughout the world and particularly in the United States
in the chemical use of agricultural products, a study of the world situa­
tion has been under way, particular emphasis being placed on synthetic
fuels.
The Division has furnished information on the establishment of
tung-oil production in the United States, notably in certain parts of
Alabama, Florida, Georgia, Louisiana, Mississippi, and Texas. This
enterprise may become an important source of new wealth for the
South—the United States having imported from China during the
past year more than $20,000,000 worth of this essential raw material.
The annual survey of World Chemical Developments, a 200-page
printed publication, was issued, receiving the same enthusiastic
“reader acceptance” which exhausted previous editions.
The Division has carried on its work in the field of essential raw
materials, especially those for supplies of which this country is de­
pendent upon a foreign source. I t has followed scientific and tech­
nical developments abroad, and such developments have been brought
to the attention of interested parties, with complete information and
samples whenever possible.
During the year the Division received 6,000 letters of inquiry and
700 visitors presenting problems of production, distribution, and con­
sumption, both foreign and domestic.
The following comments are only two from many that might be
quoted:
(1) We believe it will interest you to know that the Brazilian Trade Oppor­
tunity you furnished on rosin and turpentine resulted in orders in a short time
amounting to $118,927.67, and we have $10,000 more awaiting shipment.
(2) Upon receipt of your trade opportunity we immediately contacted your
Paris office and consummated a contract for 25,000 tons of sulphur, valued at
$450,000. (Since then the Division has been advised that this firm is probably
going to negotiate an agency connection in Prance with a firm suggested by
the Bureau.)
ELECTRICAL

The Electrical Division’s significant work on short-wave broad­
casting began with a survey made through the cooperation of the
Bureau’s Latin American offices. A report on this was issued in Oc­
tober. This survey, as well as a world-wide survey of a similar char­
acter bringing out further specific details, was undertaken in cooper­
ation with a subcommittee of the Business Advisory Council.
Another feature of this short-wave-broadcast activity was the get­
ting together in New York in December of executives from seven of
the nine American short-wave broadcasting stations. Twenty such
executives met for the first time on the invitation of the Chief of the
Electrical Division and discussed their problems of mutual interest,
particularly the question of how to make American short-wave broad­
casting more useful and effective.

BUREAU OF FOREIGN AND DOMESTIC COMMERCE

43

Still another service having to do primarily with international

*

beneficial to the short-wave broadcasting industry, as well as nnproving6^ e technique of international procedure on world radio, toJe-

year World Power Manual and
Electrical Exporters’ Handbook was given the new name of Woild
Electrical Markets. During the year■1B; se^inns haveJ ^ e n Pubhdied
covering the latest electrical market statistics for that numoer o
countries. Supplemental sections have been issued m connection
WiThe1' W oH dR adirM arkets series was completely revised during
the year through the issuance of 101 sections covering that number of
countries All countries of the world in which there is an apprew S V d e News, published thrf .times a
m onuf coveriS news items of general interest to the electacal and
radio industries has proved particularly popular ^M heipbi to ^
industry. Considerable new demand has been shown foi all of these
PlAdvince’Features of the United States Short-Wave Programs has.
T

«

S

T

K

i

K - o Terms

industry^in connection with export problems involving sate and
foreign agencies, has been carried on aggressively. In many in
stances this activity is carried on in
(nations New assignments were arranged f o r analysis or exp
commodities, to include new classifications, such as electric razo ,
portable air conditioners, wind-driven generators, etc.
1 Hundreds of trade opportunities have been brought to the atten
tion of American manufacturers, including such items as traffic lights
for Cairo Egypt; portable tools required m the Netherlands; airport
liahtinsr fo r Norway; convention language-phone system for Pe .
b n Annual Statistical Number was issued m May covering woi d
statistics for the year 1937. Its value was attested by the keen appre­
ciation expressed by the electrical industry.
FOODSTUFFS

Tide Foodstuffs Division continued to devote attention to improvi„ J t t e “
.“ d rtmeliueas with which foreign-market mformation
is brought to the attention of food industries and trades.
The outstanding accomplishment m this direction was the combi-

Round the World, has been made, m many ways, a more interesting,

44

REPORT OE T H E SECRETARY OE COMMERCE

more easily readable, and more comprehensive summary of foreign
market conditions for United States food products.
&
Ihe number of export and import commodities included in the
Divisions monthly analyses of the United States foreign trade in
food products was expanded, so that this service constitutes a com­
prehensive picture of current trade statistics.
l
reviews” analyzing United States foreign
trade m foodstuffs by commodity groups was published, giving food­
stuffs trades detailed trade analyses and figures on exports and im
ports by countries approximately 1 year in advance ¡of their final
S tiir ^ T R
Foreigi 1 Commerce and Navigation of the United
States. The groups of commodities were: Fats and oils - meats and
meat products; fresh fruits; fresh vegetables; sugar and molassesedibie nuts; grains and gram products; bananas; coffee, cocoa beans
and products, and tea; spices and flavorings; beverages; canned
fruits and vegetables, and dried fruits.
B ’ canned
S P f f l- studies included a publication on Quick-Frozen Foods
timed to coincide with the rapid developments in this industry and
ihV ? T f v ! ng interest in the subject; nearly 6,000 copies were disthroiJghout ,the trade, to cold-storage warehouses, transp rtation companies, investment houses, various branches of the Fed­
eral and State Governments, and others.
t r i S T ^ /StU? eS “ ?luded Confectionery Production and Dis­
tribution, 1937 (a domestic questionnaire survey of manufacturers’
sales and methods of distribution), Retail and Wholesale Prices of
Refilled Sugar m 27 Selected Countries of the World and a Survey
of Current Business article entitled “Fats and Oils: Their Adapt: abdity and Uses, which has been the object of commendation from
outstanding authorities m this field.
Other special studies included one on the United Kingdom market
for pecans one on yerba mate, another on starch, the continuation of
ofe,1TT l y ®onfec^ neiT dollar-sales reports, and the inauguration
of a senes of monthly reports on poundage sales of confectionery
manufacturers This latter report, inaugurated at the specific request of the industry made possible the furnishing for thePfirst time
of data on monthly trends in average values per pound received by
L T d tkP 7 ll f i- col] fectlone7 - The Foodstuffs Division also coZ
tinueci the collection from packers and wholesalers and the publica­
tion of its quarterly reports on stocks of principal canned foods.
Foreign-market surveys included a world-wide survey on distilled
spirits anticipating the growing needs of this industry for export
markets, and limited foreign-market surveys for seed potatoes, wheat
giuten, canned citrus products, dried peas and beans, and others
Material was developed for presentation of radio broadcasts in
the Department of Commerce series for a number of food industries
they were the canning industry, coffee and tea, grain milling, and
the dairy-products industry.

°f 2J ‘ypar'end

FOREST PRODUCTS

FM;Cl Pr0lluds Division represents two major industries in
the United States (lumber and timber products; pulp and paper
products) the products of which are valued at almost 3y4 bilJionsZf
dollars and are exceeded by only 5 other major industries.. Normally

BUREAU OF FOREIGN AND DOMESTIC COMMERCE

45

:more than $100,000,000 worth of forest products are exported yearly
to 80 countries of the world.
This Division has redoubled its efforts in trade-promotion work,
both domestic and foreign. One outstanding project in this con­
nection is the development of trade-promotion use bulletins. During
the past year, the Division has prepared and is publishing the
following:
American Douglas Fir Plywood and Its Uses.
California Redwood and Its Uses.
American Pulp and Paper Industry.
American Hardwoods and Their Uses.
American Western Pines and Their Uses.
American Hardwood Flooring and Its Uses.
American Wooden Boxes and Crates and Their Uses.

The Government Printing Office has sold more than 60,000 copies
of the first two bulletins, which were released for distribution last
year.
The Division has also concentrated on the preparation of special
.market surveys at the request of industry, as follows: World markets
for small-dimension hardwood stock; wallboards, insulating boards,
and wall tile; used whisky barrels and containers; egg-case fillers and
egg-case fiats; leatherboard; and clay-coated boxboards.
There was published for the first time an Annual Review of World
Exports and Imports of Pulp and Paper Products, 1,000 copies of
which have been requested thus far.
The Division has cooperated with the Special Lumber Survey
Committee in the preparation of its quarterly reports; the Chief of
the Division serves as secretary to this committee. These quarterly
reports were favorably cited by the President at a press conference
as an example of cooperative steps and findings by industry in work­
ing out production and inventory problems.
Numerous foreign statistical analyses were made, many of which
were printed in trade journals and papers, covering such features as
exports of specialty wood products—wooden handles, ties, boxes,
crates, and containers, etc.
Special monthly reports were made on imports of Canadian redcedar shingles; also Douglas fir and west-coast hemlock under the
quota. Monthly statistics were compiled and issued to the trade on
plywood and specialty pulp and paper products. _
As a result of a survey for the box and shook industry, there wag
recently established a Webb-Pomerene corporation for the exportation
of wooden boxes and shooks.
..
As a direct result of the_Division’s work in trade opportunities, it
was instrumental in assisting a large paper company in San Fran­
cisco to secure $16,000 worth of new foreign business. I t assisted
in the direct sale of 66,000 modern connectors for wood construc­
tion in the United Kingdom—having a value of over $7,000. I t also
assisted in the actual sale of $200,000 worth of wood pulp m Turkey
by a New York concern. Many other individual companies, by per­
sonal letter', have indicated the value of the Division’s work in trade
opportunities, which has definitely resulted in business to these firms.
The pulp and paper section of the Division designed, prepared,
and displayed at the celebration of Florida Industries Day m Jack­
sonville, Fla., charts, maps, graphs, etc.,_ depicting the expansion and
continued growth of the kraft industry in the South.

46

REPORT OF T H E SECRETARY OF COMMERCE

During the fiscal year 10,721 inquiries were replied to by the Forest
Products Division ; 1,333 personal visitors were received and furnished
information; 255 Trade Opportunities were issued; 42 special circu­
lars were issued.
L EA T H ER AND RUBBER

Export trade was better maintained than domestic business during
the past year, and the business contacts of the Leather and RubberDivision have been made to realize the sustaining influence of export
markets. This Division has definitely aided shoe manufacturers to
maintain the value of shoe exports above that of the increased im­
ports during the first 5 months of 1938; has initiated a monthly
periodical, Rubber Products Foreign Trade Notes, to report foreigntrade developments in this field ; has brought up to date the Rubber
Tariff Manual, providing rates of import duty for all rubber prod­
ucts in foreign countries ; and has materially aided exporters of shoe
polishes by foreign-market research and trade promotion, in response
to and in cooperation with trade contacts.
Declining domestic business in rubber and tires led to the carrying
out of quarterly (instead of semiannual) surveys to enable the tire
industry to follow retail sales with greater accuracy, and a special
survey on capacity of the rubber-reclaiming industry was conducted
to enable that industry to judge the advisability of plant extensions.
The Division has published data indicating the growing importance
of new applications of rubber, and various tire companies desirous
of entering new fields have used the Division’s research facilities in
gathering data on the prospective market for projected new lines of
production, particularly tires for agricultural machinery and im­
plements, and certain fields of application of rubber latex.
The Division initiated and promoted monthly meetings in this De­
partment with Federal employees engaged on rubber work in various
departments, for exchange of information and assistance—industry
speakers on important industry subjects having been obtained for
this.group on two occasions. Assistance was given the Procurement
Division, of the Treasury Department, in its procurement studies
on sole leather, synthetic rubber, and leather (other than sole)
Besides the Rubber News Letter and Tariff Manual, the Division
now publishes the Leather Fortnightly, the Leather Raw Materials
Bulletin monthly (including during the past year a series of studies
on International Trade in Sheep and Lamb Skins, which has won
trade commendation ), and Rubber Products Foreign Trade Notes
monthly. The Division’s foreign-trade statistical statements now
cover imports and exports of all commodities that come within its
purview, whereas in 1933 only incomplete data were published.
M A C H IN E R Y

Confronted with increasing competition in the world’s export
mai kets, the Machinery Division maintained a vigorous program
for the promotion of American equipment sales abroad.
Representations to foreign governments (through the proper inter­
mediai îes) m situations unfavorable to United States commerce were
m a number of cases successful. Data were obtained on hundreds

BUREAU OP FOREIGN AND DOMESTIC COMMERCE

47

of opportunities to sell American machinery in export markets, and
this information was widely disseminated throughout the machinery
i n d u s t r y ^ ^ Machinery Division cooperated with the representa­
tives of other governments in working out highly technical plans for
E m o d e rim J o n of Iheir industri« Mid for the bllddmg of^m plete
plants, and gave notice of these developments to the 130 blanches of
the domestic machinery industries.
M oA ium
The Division printed its monthly publication, World Machine y
News, on an expanded scale, which had the effect of making available
to machinery builders advance market information and sales tiends
abroad. Supplementary distribution of data on these developments
was attained through papers and magazines of
th^ subiects
thorough studies, world-wide m scope, were published on^ e subjects
of road machinery, Diesel engines, printing machinery, and all types
Members^of the Division made known to the machinery industries
facts on competitive situations in world markets through the medium
of radio addresses, platform discussions, and conferences. Many o
these resulted in concrete accomplishment for the expansion of United
^Individual equipment manufacturers were aided in instances involv­
ing discrimination against them by foreign governments or other
entities, and several developments abroad detrimental to American
interests were effectively opposed.
.
,, •
Trade associations and machinery firms were given aid m then
problems of supplying material to the Federal Government on export
markets and procedures, and in long-range foreign sales programs.
The Division rendered significant services m connection with ex­
changes of students and young machinists from other American
republics. With the Bureau of Standards, it aided materially m a
program to combat restrictive commercial standards m certain coun­
tries and in the promotion of American standards abroad.
M ETALS AND M IN E R A L S

Last year the export commodities for which the Metals and Minerals
Division is responsible comprised, in value, nearly 30 percent of the
total American exports. Its constructive efforts have resulted m a
steadily increasing reliance and confidence in the Divisions work bj
both Government and industry, and consequently a steadily increasing
volume and broadening scope of the Division’s activities.
The four major divisional publications, the Iron and Steel hortnightly Foreign Metals and Minerals, Construction Abroad, and the
Hardware Trade Bulletin, have met an increasing demand during the
year. While, in order to avoid duplication of work being done by
the Bureau of Mines, the fuels section has not published any regular
bulletins, its work with the trade associations, the trade press, and
with individual coal and petroleum companies has produced substantl3AConsiderable amount of work has been carried out in cooperation
with the War-Navy Munitions Board in its study of plans for indus­
trial mobilization and with the State Department m its effort to
keep thoroughly informed on problems concerned with strategic*
materials.”

48

REPORT OF T H E SECRETARY OF COMMERCE
M O TIO N PIC TU R ES

During the past fiscal year the Motion Picture Division has assisted
in organizing export departments for two large equipment companies,
rind information received from these companies indicates that their
foreign business since these departments were established has amounted
to nearly $100,000.
In cooperation with foreign offices of the Bureau and at the direct
request of the industry, the Division has assisted in having foreign
censorship boards approve a number of pictures which had previously
been denied the sanction of these authorities. I t is reasonable to esti­
mate that this assistance during the past year returned $50,000 to the
-American motion-picture industry which ordinarily would have been
lost without the Bureau’s intervention.
, Rehuests on the part of the motion-picture industry for data from
his Division with respect to foreign markets have increased greatly
in consequence of the increasing trade barriers and legislation aimed
at the importation of American motion pictures abroad. Because of
these rapidly changing trade conditions, the Division has made a
special effort to insure that the reports from the foreign offices of the
.Bureau contain the particular type of information which will be of
maximum service to the motion-picture industry.
. In recent years foreign production has been given considerable
impetus by governmental assistance through direct subsidy, drastic
censorship regulations, quotas and contingent restrictions, high duties
and taxes. These restrictive barriers have resulted in the loss of play
dates for American films. The American motion-picture industry,
therefore, now more than ever, must be kept currently informed of
competitive data such as prices of admissions, theater receipts, taxes,
distribution methods, censorship regulations, legislative impositions,
number of theaters, number of studios, number of films produced, and
types of films best liked m the different foreign countries. Without
this type of data American companies are at a loss to determine the
most effectuve sales methods to be employed in meeting foreign com­
petition effectively. The Division has kept the industry constantly
informed of these changes through its bulletins, press releases, and
correspondence. Thus the activities of the Division have been greatly

n iv i eased.

r^ 1<e inTisio.n’
^ ,e Past year, completed a comprehensive sur­
vey of 90 foreign motion-picture markets; this was released in bulletin
form, comprising 296 pages of material describing market conditions
for the sale of American motion pictures and equipment.
SPEC IA LTIES

In serving thirty-odd related and unrelated industries, the Special­
ties Division was required to supply an unusual amount of tradepromotional assistance to meet the widely varied demands from this
group. The Division compiled and published 180 separate bulletins,
covering special foreign-market surveys for and international trade
m specialties commodities; six printed Trade Promotion bulletins
on printing, publishing, etc., glass, pottery, children’s wheeled goods,
toys (m process), meteorological instruments, and coin-operated musical instruments; four Trade Information Bulletins on advertising in

BUREAU OE FOREIGN AND DOMESTIC COMMERCE

49

’

Sweden, advertising in Brazil, production and trade in cork and cork
products, and sources of supply for fresh-water shell; and a number
of other special trade analyses and trade studies. The Division wrote
a total of 5,907 letters, answering 3,500 inquiries on every phase ot
foreign and domestic trade promotion.
.
,.
,
Of particular importance were the following trade-promotional
studies and surveys: A comprehensive world-wide survey of the printing, publishing, and allied industries, analyzing foreign markets for
books, lithographic, and other printed matter; a complete study ot
the Latin American glass industry and trade, designed to develop
new outlets and increase the participation of domestic glass manu­
facturers in the markets of that area; a survey of potential foreign
markets for American pottery; a series of bulletins on foreign pro­
duction and international trade in office machines and equipment;
and a special study of possible export markets for meteorological in­
struments. In addition, export trade information and assistance was
furnished to many other industries through the publication of special
market surveys for various products covering more than 100 foreign
areas. Projects begun but not yet completed include a survey ot inter­
national trade in and foreign markets for American toys; interna­
tional trade in and export markets for brushes; and a comprehensive
survey of the protection and promotion of health, and dental, medical,
and hospital facilities in foreign countries, in which will be incor­
porated an analysis of potential foreign markets for American dental,
surgical, and hospital instruments, equipment, and supplies. _
Special endeavors were made to encourage and assist several indus­
trial groups to enter foreign markets where opportunities tor their
particular products appeared to exist but apparently have been neg­
lected by domestic manufacturers. The initial results have been so
encouraging that further efforts along this line will be continued.
An important service of the Division was the compilation and
publication of foreign advertising media lists and the publication ot
studies of advertising and sales promotion in Brazil and bwedem
The foreign media lists are particularly valuable to exporters m con­
nection with their foreign advertising.
T E X T IL E

By reason of a more favorable competitive position and the re­
emphasis on foreign-trade promotion as a result of the reciprocaltrade-agreements program, export markets for many manufactured,
textile products have improved. Sales abroad of manufactured,
goods increased by about $12,000,000 in the fiscal year just ended.
An increase of more than 57,000,000 square yards m the export or
cotton goods alone is noted for the first 6 months of 1938.
With this development of added business and renewed interest in
export markets, it became necessary for the Textile Division to give
greater attention to detailed reporting and recommendations involved
in requests for individual foreign-market surveys. At the same time
the o-eneral information service of the Division was improved. More
detailed data on foreign production, stocks, sales, and competition
in a wide range of textile raw materials and manufactured products
were released. This information was disseminated through press­

•50

REPORT OF T H E SECRETARY OF COMMERCE

releases and the two weekly news bulletins: Textiles and Allied
Products, and Textile Raw Materials.
The volume of Foreign Trade Opportunities increased materially,
necessitating considerable follow-up with domestic suppliers in order
that this important phase of trade promotion might be most effective.
Shifts in world trade centers and the development of new areas
of production or consumption for essential raw materials, particu­
larly cotton and wool, required much closer attention to, and detailed
reporting on, the elements affecting the growth and marketing of
these commodities. World conditions in respect to cotton were sum­
marized by the regular annual study: World Survey on the Supply
and Distribution of Raw Cotton.
I t was necessary to give an increased amount of time to requests
from the general public for information dealing with the many
phases of this group of industries. To meet the demand for general
data the following informational bulletins were prepared: Raw Silk
and the Silk Industry of the United States; Textile Reading List;
Lanital—Artificial Wool from Casein (revised).
The Textile Committee of the Federal Specifications Executive
Committee, of which members of the Textile Division are chairman
and secretary, revised and promulgated many Federal specifications
covering textile fabrics and products purchased by the several Fed­
eral departments and agencies.
TOBACCO

During the fiscal year 1937-38 the tobacco industry was beset with
exceptional problems, many of which were major problems confront­
ing individual firms.
The Tobacco Division carried on its customary cooperation with
the tobacco industry during the year in a successful manner, as evi­
denced by the opinion of the Tobacco Association of the United
states to the effect that the Division was "a tremendous aid” to all
tobacconists desiring information on foreign trade.
In addition to a number of routine matters, the Division success­
fully worked out six major problems, four of which involved Chinese
and Japanese questions.
The promotional services of this Division are for the most part
individual services.
1
FOREIGN COMMERCE SERVICE

Despite difficulties arising from economic and political develop­
ments abroad, as well as limitations imposed by budgetary consid­
erations, the fiscal year ended June 30, 1938, was a particularly suc­
cessful one for the Foreign Commerce Service. Outstanding in its
direct and practical aid to American commerce, its accomplishments
during the year serve to reemphasize the Bureau’s position as a vital
instrumentality in the administration’s program of enlaroin«- and
revivifying international trade.
The expanding interest in foreign trade, so noticeable during the
preceding year, continued during the period under review and was
relatively unaffected by the business recession in the United States.
Direct requests from American businessmen for market surveys, as­

BUREAU OE FOREIGN AND DOMESTIC COMMERCE

51

sistance in securing sales outlets, economic information of a specific
nature, and general trade data poured into the foreign offices m a
steadily increasing volume that taxed their facilities to the limi .
This expanding interest was further demonstrated by the number
and type of the American visitors calling at the foreign offices for
information and assistance, and by the steadily ¡increasing number
of letters of appreciation received by the Bureau from American
businessmen
•
*
The efforts of a considerable proportion of the commercially im­
portant nations of the world to regulate and direct the flow of their
foreign commerce through the imposition of many restrictive devices,
together with the continuation of civil strife m Spain, the outbreak
of hostilities in the Far East, and such international political de­
velopments as the absorption of Austria by the German Reich, have
served to render the work of Foreign Commerce officers progressively
involved and intricate. These same circumstances, however, have m
corresponding measure indicated the merit of maintaining abroad a
corps of trained specialists who combine with a quickened conscious­
ness of the needs of American industry a sure and intimate knowledge
of conditions in their respective areas.
.
Foreign Commerce offices were maintained m 33 of the world s most
important trading areas. By reason of the continued unsettled con­
ditions in Spain, the Madrid office was not operative m 1937r 38, but
its immediate resumption upon the termination of the Spanish civil
strife is planned. Because of Austria’s annexation by Germany m
March 1938, it was felt that a separate office covering that territory
was no longer necessary, and accordingly the Vienna office was closed
on June 30, 1938, ending an existence of over 17 years. An office m
Bucharest, Rumania, where the Bureau formerly maintained an olhce,
will be opened early in the fiscal year 1938-39
a ,
Twenty-nine field officers were brought back to-the United States
during the year. Most of these officers were sent to many of the more
important commercial and manufacturing centers throughout t îe
United States for consultation with chambers of commerce, foreigntrade clubs, credit associations, export managers, and other business­
men. This advisory function is recognizedly among the most valu­
able the Bureau can perform.
Continuing the practical policy of giving the greatest possible serv­
ice to individual American firms engaging m foreign trade, the held
organization of the Foreign Commerce Service prepared well over
14 000 trade letters in response to inquiries from American turns.
As stated in this chapter last year, direct communication between
our exporting firms and the Bureau’s foreign offices was reestablished,
by agreement with the Department of State in February 1937. Responses to inquiries from American firms are always of direct ana
practical interest, since each involves a specific problem ; m addition,
many of these letters represent very complete and înfornmtive sur­
veys of market possibilities for particular commodities, I he nitormâtion contained in them is made available not only to the inquiring
firm but also, when of general interest, to American industry as a
whole, through Bureau publications and releases.
Nearly 19 000 written reports on commercial developments abroad
were prepared and transmitted by Foreign Commerce officers during

52

REPORT OE T H E SECRETARY OF COMMERCE

the year under review, as well as more than 3,000 cables of an eco­
nomic nature, 1,500 specific opportunities for the sale of American
products abroad (one of which alone involved products valued in
excess of $500,000), and innumerable confidential dispatches designed
to provide the Bureau with background information.
Practically all foreign offices report a considerably heightened
number of American business visitors as compared with the previous
year, this increased activity being1undoubtedly both a cause and a
result of the 36 percent increase of 1937 export trade over 1936. With
this welcome increase in commercial callers has come an increase in
correspondence as well as in consultative services, since most travelers
P ^ a c e their visit with letters and there are invariably last details
which must be consummated through correspondence.
Among the most effective services performed by Foreign Commerce
officers abroad is the assistance rendered in obtaining suitable agents
for American exporters. The Bureau’s files are replete with instances
in which satisfactory agents for American firms have been secured
by commercial attaches and trade commissioners abroad. The Bu­
reau s accomplishments in this respect have been especially satisfac­
tory since _the resumption of direct trade-letter work—this latter
acluiutybeing m every way an essential factor in producing results.
th e foreign Commerce Service has been especially active during
the year m reporting on, and in some cases being instrumental in
securing modification^ of, foreign laws and regulations prejudicial to
United States trade, m securing import permits and enlargement of
import quotas, in obtaining the release of blocked foreign exchange,
and m other ways facilitating American commerce with countries
employing mechanisms restrictive to normal trade. The Service has
been equally alert m giving impartial assistance in the friendly solu­
tion of the misunderstandings which sometimes arise between American suppliers and foreign buyers, its efforts in this direction having
added materially to the prestige of the American business community
Deserving of specific mention is the part played by Foreign Com­
merce Service personnel in the successful prosecution of the tradeagreements program. Not only have these officers supplied essential
basic data and technical information from their vantage points in
the field, but several have been detailed to duty on a full-time basis
in Washington m connection with trade-agreement work; others
abroad6VOted *** ma]°r portion of their time to the negotiationsSome change in the administrative organization of the Foreign
Commerce Service m Washington also occurred during the year.
The former Foreign Service Division became, on August 3, 1937,
the office of the Chief of the Foreign Commerce Service, with the
man m charge to be designated from the senior officers in the field
service. In addition to the administration of this service, the Chief
of the Foreign Commerce Service also acts in a liaison capacity be­
tween the Bureau of Foreign and Domestic Commerce and the De­
partment of State.
Results achieved by the inspector service inaugurated during the
year under review have proved very satisfactory. The incumbent
inspector is the former commercial attache at Prague, Czechoslovakia.
The first year of operations m this field amply justifies the project:

BUREAU OF FOREIGN AND DOMESTIC COMMERCE

53

and demonstrates the advisability of extending the service to other
geographical areas.
During the past year the established system of evaluating and
grading reports prepared by Foreign Commerce officers was further
refined and simplified. These officers now have the benefit, of con­
structive criticism of all their major reports. Further progress also
was made in revising the schedules; of reports required from the for­
eign offices, with a view to the elimination of any unnecessary
reporting.
.
More effective utilization of the services of the foreign officers,
both in the field and in the United States while on itinerary, was
secured by the development of a more efficient analysis and control
of allotments and expenditures.
FOREIGN TRADE STATISTICS

The outstanding achievement of the Division of Foreign Trade
Statistics, in the fiscal year ended June 1938, has been the complete
elimination of the delays in the compilation and publication of the
monthly statistics. Compared with the closing months of the fiscal
year 1937, the foreign-trade services of the Division are now avail­
able to the business public from 3 to 4 weeks earlier.
In order to serve the demands for current statistical data, 19 sep­
arate statements were issued on the United States trade with indi­
vidual foreign countries in 1937. Principal agreement countries, as
well as nonagreement, were included in the series.
A monthly report on imports for consumption by commodity and
by country, as well as by customs district of entry, was supplied
regularly to the Tariff Commission.
With the assistance of other divisions of the Bureau of Foreign
and Domestic Commerce, the export schedule B (list of commodities
which are distinguished separately in the statistics of foreign trade)
was revised. In connection with this revision an extensive campaign
was conducted urging exporters to submit the data on the exporter’s
declaration in accordance with the export schedule. A special bul­
letin was issued during the year revising import schedule A, in accord­
ance with the changes made necessary in connection with the Czecho­
slovakian trade agreement.
The annual, Foreign Commerce and Navigation of the United
States, 1936, issued in two volumes, contained the country-by-com­
modity detail (for 1935 and 1936) which is published in the even
years. The Monthly Summary, formerly printed, was issued in a
new process method which represents a saving to the Department
in printing costs. The annual bulletins on foreign trade were issued:
Trade Promotion Series No. 174, Foreign Trade of the United States,
Calendar Year 1936, and Trade Information Bulletin No. 839, Sum­
mary of United States Trade with World, 1937. Statistical material
was prepared for inclusion in the annual issue of the Statistical
Abstract.
The compilation and issuance of the weekly and monthly gold and
silver exports and imports were continued, as were the analyses of
foreign trade for Commerce Reports and for the Survey of Cur­
rent Business.

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REPORT OP T H E SECRETARY OF COMMERCE

_The first release on foreign trade to be made available each month
(in the form of a press statement), which had previously been com­
piled on a commodity group basis, was changed to show the com­
modity break-down by economic classes. This new form of presenta­
tion indicates more readily the economic character of export and im­
port trade movements. The other regular analyses of foreign trade
were released in the usual form.
A special table was prepared each month, for the use of the
Bureau’s trade-agreements section, as well as that section of the
Department of State, showing trade with “trade-agreement” and
“non-trade-agreement” countries.
REGIONAL INFORMATION

The work of the Division of Regional Information can be divided
into two classes—first, its service to American business, largely in
the form of statistical and economic information on foreign coun­
tries, and, second, cooperation with other Government departments,
especially participation in the reciprocal-trade-agreements program
and other interdepartmental committee work.
The trade-agreements work consisted of the continued compilation
of statistical data and market analyses for use in the negotiation of
reciprocal trade agreements, and representation by the Division on
all of the individual country committees. The Chief of the Division
represented the Department of Commerce on the Joint Preparatory
Committee on Philippine Affairs, which held public hearings in
Washington, San Francisco, and in Manila during a 5-months’ survey
in the Philippine Islands. A report was prepared upon the return
of the joint committee to Washington and was submitted to the
President. Other active interdepartmental committees were the In ­
terdepartmental Philippine Committee and the Committee on Japa­
nese Trade Relations.
The continued intensive and long-range study of international
economic movements included problems of international trade, na­
tional and international cartels, American branch factories in foreign
countries, and exchange and trade controls. Current economic con­
ditions throughout the world were analyzed with a view to assisting
American exporters in their interpretation of markets in foreign
countries.
The 1937 Foreign Commerce Yearbook was released and work
started on the 1938 volume. The World Economic Review, Foreign
Countries, covering the year 1937 was completed. An increasing
demand was noted during the fiscal year for the subscription serv­
ices of the Division: Economic and trade reports on China, Japan,
southeastern Asia, the Philippines, Canada, and France, and the
Russian Economic Notes, consisting of material from the Soviet press
of interest to American exporters and importers and students of
Soviet economy. The Commercial Travelers’ Guide to Latin Amer­
ica, which is to be published in four sections, was initiated, and
parts I and II, covering the east and west coasts of South America,
were completed and sent to the Government Printing Office. Fifteen
processed circulars were issued on a sales basis, dealing with a variety
of economic subjects and individual foreign countries, on which fre­
quent inquires are received.

BUREAU OF FOREIGN AND DOMESTIC COMMERCE

55

In connection with the Inquiry on Cooperative Enterprises in
Europe, 1937, the Division released considerable information on the
development of cooperatives abroad, with special emphasis on the
Scandinavian countries, this service being rendered through the press
and to such organizations as the Consumer Distribution Corporation
and the Cooperative League of New York City. The economic sig­
nificance of the absorption of Austria by Germany was analyzed with
particular relation to its effect upon American trade.
The public interest manifested in Latin America resulted in numer­
ous studies of national income and trade trends in that area.
During the early critical period of the conflict in the Far East, the
Division maintained daily contact with our offices in China and Japan,,
and kept the American business public fully informed by radio and
air mail, through special releases to the district offices for use as
background information in advising businessmen in their communi­
ties of current conditions in China and Japan.
Numerous inquiries were received from leading American firms on
orders from the Soviet Union, covering every field of export activity,
and Soviet monthly trade statistics were furnished to a number of
interested firms ancl commercial bodies.
FOREIGN TARIFFS

During the year, in addition to its regular and continuing function
as the official source of information on foreign-tariff and trade-restric­
tion problems and developments of concern to American trade, the
Division of Foreign Tariffs has contributed toward the Bureau work
in the preparations for potential trade-agreement negotiations or revi­
sions, broad studies of the import tariff systems, and other forms of
trade control of 19 foreign countries, not counting separately the
British colonial areas. In addition to heavy demands from the
Department of State, the Tariff Commission, and the Department of
Agriculture, the various experts of the Division have carried out
extensive tariff researches for individual companies and trade organi­
zations, the results of which have been included in their briefs. In
September 1937 a new unit, the trade-agreement result section, was
set up in the Division to study the operation and effects on American
trade of the reciprocal-trade-agreements program.
The Division has received a constant stream of inquiries from
American manufacturers and exporters dealing with current changes
in foreign tariffs, trade regulations, import quotas, and license require­
ments. The demand for the Division’s published material, circulars,
and monographs has continued at a high peak, especially the annual
review of trends in foreign tariffs and commercial policies and a
summary of the 1937 developments under the trade-agreements pro­
gram, both, of which were published as special articles in Commerce
Reports and widely distributed as reprints.
Among the outstanding services rendered in the foreign-tariff field
during the year, often involving the assistance of American Govern­
ment officers abroad and cooperation with other branches of the
Government, as well as other divisions of the Bureau, the following
may be mentioned: The free entry into Mexico of approximately
30,000 tons of American wheat; reclassification of American oatmeal
at lower duty rates into Cuba; obtaining permit for the importation

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REPORT OE T H E SECRETARY OE COMMERCE

into Italy of 3,000 tons of phosphate rock from Florida; assistance
in allaying a boycott of American products in the Union of South
Africa; reclassification of American plywood at lower rates of duty
for entry into Colombia; assistance in making possible the entry of
large shipments of American flour into Brazil; entry of $140,000 of
American machinery into Greece; clearance of apples into Egypt in
shipments ranging up to 10,000 boxes ; the retention of transshipment
trade in mahogany logs from British colonies ; and advice and infor­
mation on dutiable-value problems in a number of British areas.
FINANCE

The principal achievements of the Finance Division were : (1) The
publication of two important studies, namely, Foreign Investments
in the United States and American Direct Investments in Foreign
Countries, 1936; (2) a fuller and wider distribution of information on
foreign-exchange restrictions abroad; and (3) the limitation of efforts
of a fraudulent European investment enterprise to exploit unsuspect­
ing Americans.
Representing as it does the completion of the first comprehensive
investigation of the subject ever made and one on which a number of
the Division’s staff had been engaged for several years, the publication
of the study on Foreign Investments in the United States attracted
widespread attention. The publication was particularly timely in
view of the general discussion as to the significance of the heavy
inflow of foreign capital in recent years.
The study on American Direct Investments in Foreign Countries,
1936, was likewise timely, since there was much conjecture as to the
changes that had occurred in the 7 years since the Division’s first study
on the subject was prepared.
These two reports provide improved bases for estimating important
items in the annual study of the Balance of International Payments
of the United States.
Since there were frequent and significant changes in foreign regu­
lations governing the release of exchange to cover imports, special
efforts were made to disseminate as rapidly' and fully as possible to
interested persons all incoming information on the subject. For this
purpose a wider use was made of telegraph, teletype, and radio, par­
ticularly for the benefit of the Bureau’s district offices on the Pacific
coast. An increasing tendency to consult the Division by long-dis­
tance telephone was noted. By these means a considerable number
of American exporters were able to avoid losses. In addition, com­
mercial attachés in several countries were successful in securing the
release of large amounts of American funds blocked by exchange
restrictions and in inducing the exchange-control authorities to grant
increased allotments of exchange for American goods.
FOREIGN COMMERCIAL LAW

Approximately 6,000 inquiries relating to foreign legal problems
were answered by direct correspondence during the past fiscal year.
Innumerable legal inquiries are anticipated by information published
weekly m Commerce Reports and monthly in the Comparative Law
Series.

BUREAU OF FOREIGN AND DOMESTIC COMMERCE

57

The Comparative Law Series, a monthly world-wide legislative
review, has been “revamped” and revitalized. This publication has
now taken its place as an outstanding official publication in the field
of comparative law.
Detailed studies of the commercial laws of Brazil and Canada have
been completed and will be published in the near future.
The intimate relation between the maintenance of American insur­
ance services, covering all classes of risks throughout the world, and
the smooth flow of American foreign commerce is the basis for service
rendered by the Bureau to the insurance industry. During the past
year the activities of the Division have resulted in the modification
or softening of restrictive legislation proposed against American
insurance companies in Greece, Puerto Rico, and Cuba. World-wide
statistics on insurance have been collected and tabulated, and the
results utilized by the Association of Life Insurance Presidents and
other organizations and publications. Trade opportunities in excess
of $1,000,000 were disseminated to American aviation insurers. The
Division actively cooperated and participated in the Annual Message
of Life Insurance Week.
The well-established service operated by the Division for the ad­
justment of international trade disputes through the cooperation of
the district offices of the Bureau and the American Foreign Com­
merce and Consular Services increased more than 15 percent during
the past year. Lists of attorneys in foreign countries qualified to
represent American interests in the collection of accounts and other
legal matters were furnished to a greatly increased number of
inquirers.
Approximately 500 specific services have been rendered personally
or through correspondence in the field of industrial property, which
includes trade-marks, patents, copyrights, unfair competition, price
maintenance, and industrial combinations. In more than 1,000 in­
stances the Division notified American manufacturers of possible
attempts to pirate their trade-marks in foreign jurisdictions.
The importance of apprising American businessmen of domestic
legislation has led to the preparation of articles three times each
month on current Federal legislation affecting business, published
in the Bureau publication, Domestic Commerce. A digest of legis­
lation of the Seventy-fifth Congress was published in the Compara­
tive Law Series. Several thousand reprints of this digest were re­
quested by interested inquirers. Numerous requests of businessmen
for information regarding the text and operation of current Federal
legislation were either' answered directly or forwarded to the appro­
priate Federal or State agency for reply. The Division also assists
in the preparation of opinions of the Bureau respecting proposed
legislation in response to requests from congressional committees and
the Bureau of the Budget. A recent assignment has been the codifi­
cation of rules and regulations of the Bureau as required by the act
of June 19, 1937.
COMMERCIAL INTELLIGENCE

Sharply increased interest in foreign trade was indicated by the
continued increasing demand for the Commercial Intelligence Divi­
sion’s publications and services. Export and Import Practice (Trade
108928— 38------ 7

58

REPORT OP T H E SECRETARY OP COMMERCE

Promotion Series No. 175), a step-by-step description of the best
foreign selling and buying practice in use in the United States today,,
exhausted a first edition of 6,000 copies in a little over 1 month.
More Sales Information Reports were sold during the 1937-38 fiscal
year than ever before. As each of the 32,911 of these reports sold
represented either an inquiry or an order from abroad received by
some exporter, the increased demand for them by 13 percent over
the 1936-37 fiscal year was a definite indication of the foreign-trade
trend. Likewise, the demand for trade lists showed a 10 percent
increase over last year, reaching 48,114- sold during the 1937-38 fiscal
year. The most significant increase, however, was in the number of
Trade Opportunities from abroad, where the 5,671 received repre­
sented a 34 percent increase over the previous fiscal year.
American exporters and importers found in the services rendered
by the Division practical help in solving their problems. The in­
formation readily available on 650,000 foreign firms indicates how
they do business, their distributive capacity, and size. Each report
also contains a list of American and foreign agencies held and Ameri­
can and local banking and trade references. Opinions from local
credit sources are often quoted. This information is kept current
by constant revisions so that, in two out of every three requests, a
current report, less than a year old, was found in our files on the
foreign firm. Where the information is not current, a revision is
obtained without additional charge.
American foreign traders who are seeking new outlets for their
products abroad have now available 7,926 lists of foreign buyers and
agents representing the names of approximately 400,000 different
foreign firms. These lists are made up by commodity and country
and are 86 percent current—that is, less than 2 years old. They
are being revised at the rate of 3,000 lists per year. After each name
and address the method of doing business, special types of com­
modities handled, location of selling outlets, and nationality are
shown. These lists are used extensively to carry on direct-by-mail
sales campaigns, as calling lists for foreign travelers, and to check
existing sales outlets abroad. Most of the names on these lists indi­
cate by asterisk the existence in the Division’s files of a more detailed
Sales Information Report.
Foreign buyers and agents who wish to contact American firms
send in _their_requests through field officers or direct, and, after
careful investigation of their standing and sales ability, these are
published as Trade Opportunities under a key number in Commerce
Reports or are given direct distribution. That these trade leads
bring increased business to foreign firms utilizing this service is
evidenced by the 34 percent greater use made of it during the past
fiscal year.
A finger was kept on the credit pulse of the world during the
year by the weekly publication in Commerce Reports of monthly
advices received by cable, radio, and air mail from 85 reporting
offices abroad on the facility with which mercantile credit is obtain^
able and the celerity with which mercantile collections are bein<r
made. _ The Credit Situation Abroad was depicted graphically on
maps included as a Commerce Reports supplement every 2 months.

BUREAU OF FOREIGN AND DOMESTIC COMMERCE

59

Being perhaps the largest pool of foreign-credit source informa­
tion in the country, the Division’s World Trade Directory files were
constantly used by other governmental agencies during the year. The
Export-Import Bank, the Department of Agriculture, and the State
Department all made use of the Division’s reports and lists for the
checking of foreign firms.
TRANSPORTATION AND COMMUNICATIONS

The Transportation and Communications Division functioned in
accordance with a five-point program developed during the previous
year. In connection with its domestic transportation activity, it
inaugurated a new service to traffic men and shippers in the form of a
monthly news bulletin entitled “Traffic Items.” It is primarily con­
cerned with the work of the various Federal departments, State
governmental bureaus, and agencies which release at intervals reports
giving detailed information that can be made a valuable part of a
freight traffic manager’s files. A brief analysis of rail and highway
transportation in the United States was released in processed form,
setting forth the major factors and developments. This bulletin
will be revised during the current year.
The Division published a statistical analysis of the various United
States inland and intercoastal waterways with their connecting chan­
nels. This bulletin is being revised and will be reissued during the
coming year in such a form as to incorporate recommendations made
by interested individuals in the waterways industry. The Division
also assisted the Maritime Commission in an investigation of traffic
conditions on the Great Lakes—which conditions were diverting
American grain from American ships and channels. This investiga­
tion is still in progress and will be continued during the coming year.
Preliminary work was undertaken in connection with the proposed
revision of Packing for Foreign Markets (issued in 1924), and in
the meantime many shippers were provided with technical informa­
tion on current packing and packaging procedure.
In furtherance of the standards work being carried on in the Divi­
sion, the Chief is now serving as a member of the American Standards
Association sectional committee on loading platforms, created to con­
sider all factors preliminary to the adoption of uniform loadingplatform standards.
The large increase during the year in the subscriptions to the
Division’s three news letters—Foreign Shipping News, Foreign Rail­
way News, and Foreign Communications News—clearly indicates the
value of this information to the transportation and communications
industries. Special issues of Foreign Railway News were released
during the year, containing detailed analyses of the Nationalization
of French Railways, Argentine Coordination of Transport Law, and
Expropriation of National Railways of Mexico by the Mexican
Government.
In the foreign shipping field, a handbook was completed on the
Control of Ocean Freight Rates in Foreign Trade, which constitutes
a world survey of existing policies and practices and which will be
of value alike to American exporters, importers, ship operators, and
Government agencies, particularly in view of the fundamental

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REPORT OF T H E SECRETARY OF COMMERCE

changes which have evolved out of the unprecedented circumstances
of recent years. The Division provided throughout the year a con­
tinuous service of shipping research and intelligence whereby the
shipping, shipbuilding, and allied industries as well as Government
agencies were kept informed of important developments in the va­
rious countries of the world. In carrying on this work, liaison was
maintained especially with the American Merchant Marine Institute,
the National Council of American Shipbuilders, and the Maritime
Commission, which agencies were furnished with various reports
from American Foreign Service officers and other sources. Among
some of its special activities in this field, the Division aided an
American insurance company in the settlement of a heavy claim for
marine loss; assisted the Far East Conference in analyzing the ocean
freight-rate situation with respect to the exports of condensed evapo­
rated milk to the Far East; guided the Pacific Forest Industries in
a study of the transportation problem confronting American ex­
porters of plywood; furnished the Foreign Policy Association with
information as to the carriage of American foreign trade by Ameri­
can and foreign vessels; cooperated with the Maritime Commission
in maintaining the prestige of American-flag ships in the east-coast
South American trade, while temporarily suspended services were
being reestablished, etc.
In the foreign railway and highway transportation field, work
progressed on the revision of the Division’s study on Railway and
Highway Transportation Abroad. It is expected’ that this publica­
tion, which will include a brief review of all forms of transportation
taxation, will be released during the coming year.
Among some of the special work undertaken in this field might be
mentioned the_ cooperation with the Association of American Rail­
roads on foreign railway problems; assistance to the Automobile
Manufacturers Association in matters pertaining to foreign highway
legislation; the supplying of financial analyses on foreign railways
for interested manufacturers and Government agencies, particularly
the Export-Import Bank, etc.
In the industrial field the Division continued its cooperation with
the railway-supply manufacturers in promoting the sale of their
equipment^ abroad—following foreign market conditions to prevent
the exclusion of American equipment through the introduction of
unnatural barriers and the submission of tenders on equipment in
instances where the manufacturer has no opportunity of obtaining
the order and is being solicited only for price-comparison purposes.
As illustrations: The Division cooperated with interested American
suppliers of railway materials and the American Standards Associa­
tion in the matter of establishment of standards by the Argentine
State Railways, and an agreement was arrived at whereby a repre­
sentative is now being sent to Buenos Aires as a member of the
United States Chamber of Commerce in that city to further Ameri­
can interests in any standardization program to be established.
American manufacturers of railway equipment were saved many
thousands of dollars, in the form of expenses—blueprints and draw­
ings, etc.—which they would have been required to furnish had they
acceded to the request from foreign supply houses for quotations on
locomotives, rolling stock, etc., for the Turkish State Railways;

BUREAU OF FOREIGN AND DOMESTIC COMMERCE

61

information from the Bureau’s Istanbul office already on file in this
Division indicated that the orders had been placed elsewhere. As a
result of efforts by this Division and the Bureau’s commercial attache
in Santiago, an order for seven locomotives valued at $500,000 and
subsequent materials at approximately $80,000 was placed in this
country by the Chilean State Railways.
For the benefit of railway suppliers, the Division analyzed exports
of railway equipment, by individual commodities and countries_ of
destination, as well as shipments to noncontiguous territories during
the 9-year period 1929 through 1987. This information, supple­
mented by charts indicating in graphic form our trade in these com­
modities, was released as a processed bulletin.
ADMINISTRATION OF THE FOREIGN TRADE-ZONES ACT

During the year the Director of the Bureau continued to serve as
alternate for the Secretary of Commerce on the Foreign-Trade Zones
Board. This Board, which consists of the Secretary of Commerce
as chairman, the Secretary of the Treasury, and the Secretary of
War, is authorized under the law to grant to public and private cor­
porations the privilege of operating and maintaining foreign-trade
zones. The executive secretary of the Board is also the Chief of the
Transportation Division.
During the year the Board issued a grant to the Alabama State
Docks Commission to establish, operate, and maintain a foreigntrade zone in Mobile, the second grant to he made by the Board. The
first grant was made to the city of New York, which during the
past year employed, under an agency contract, the New York For­
eign-Trade Zone Operators, Inc., a private corporation, to operate
the zone at Stapleton, Staten Island. Substantial gains have been
made under the private operator.
The staff under the executive secretary of the Board has formulated
and had published in the Federal Register instructions concerning
the publication, posting, and filing of schedules containing all the
rules, regulations, rates, and charges for all services and privileges
within foreign-trade zones. There has also been formulated a uniform
system of accounts and records and directions for the preparation
of annual reports to be adopted by the foreign-trade-zone operators.
Pursuant to the Regulations for the Codification of Executive and
Administrative Documents, promulgated by the administrative com­
mittee of the Federal Register, the Regulations of the Foreign-Trade
Zones Board, with subsequent documents promulgated by the Board,
were codified and submitted to the Codification Board.
CONFERENCES AND EXPOSITIONS

The number of projects handled by the conferences and exposi­
tions section, the functions of which include coordination of activities
of all bureaus in the Department of Commerce in the furtherance of
conferences, expositions, fairs, and related undertakings, showed defi­
nite growth during the past fiscal year. Cooperative relations between
the section and other units of the Department, as well as with Federal
and nongovernmental agencies, have increased steadily. Membership
on interdepartmental committees has required more than double the

62

REPORT OF T H E SECRETARY OE COMMERCE

usual time because of international events scheduled to be held in this
country.
A large number of international conferences in which the Bureau
was interested took place abroad during the past fiscal year, but for
various reasons it was expedient in most instances to nominate Foreign
Commerce officers of the Bureau as delegates. Preparations for more
than 20 conferences to be held in 1939-40 in other countries on sub­
jects coming within the scope of the Bureau’s activities are already
under way.
The Bureau has been represented at approximately 120 national
and regional conferences and meetings in the United States, many
of which are mentioned specifically elsewhere in this report.
In addition to displays at certain of these meetings, the Bureau con­
tributed exhibits to several conventions in specific industries, else­
where reported. Exhibits at such general expositions as the DetroitMichigan Exposition and the Muskegon Centennial Exposition also
required its attention. The Bureau’s exhibits at the two international
expositions at Cleveland and Dallas (reopened for the summer of
1937) and at the International Exposition of Paris (which ran for
one season only) required supervision and preparation of final reports.
This section has cooperated with other Federal agencies and with
bureaus of this Department on a number of small expositions projected
in foreign countries.
For the past fiscal year the section has cooperated with the New
York World’s Fair and the Golden Gate International Exposition
(San Francisco) organizations and with Foreign Commerce offices
of the Bureau in collecting and disseminating information on these
projects. I t has likewise answered a vast number of inquiries from
potential exhibitors, both in the United States and foreign countries.
Preparation for Bureau participation has been in hand for several
months. Activities in connection with the Pan American Exposition,
Tampa, Fla., 1939, of which the Director of this Bureau is Federal
Commissioner, and preliminary work on the Seventh World’s Poultry
Congress, Cleveland, Ohio, 1939, in which the Bureau is vitally inter­
ested, have required much attention over the past several months.
DISTRICT OFFICES

Despite the depressed business conditions prevailing during the
past year, the Bureau’s district offices showed a very marked increase
in the volume of service rendered the business community. Much of
this was due to the desire of businessmen to enlarge the market pos­
sibilities of their respective products.
. There was a marked increase in the number of Trade Opportuni­
ties distributed by the district offices. These increased from 99,000
to 168,000, an increase of 69 percent. About 12 percent more trade
lists were sold by those offices and about 10 percent more Sales In ­
formation Beports. The sale of Bureau publications declined 9 per­
cent, but the increase in the Superintendent of Documents’ cash ac­
count amounted to 24 percent.
During the past year the domestic phase of the Bureau’s work be­
came an increasingly important factor in the activities of the dis­
trict offices. One of its features was the continued development of
the retail sales reporting program, which has been extended to cover

reTT-R.T7.ATT OF FOREIGN AND DOMESTIC COMMERCE

63

the 11 far Western States. Excellent cooperation has been secured
from trade associations and local merchants, and the material pub­
lished is in demand, not only by these people but by manufacturers
and distributors who have come to rely more and more on these
reports.
, , .
. . -,
In the foreign field the district offices continued to he the principal
outlets for the vast amount of commercial information collected by
the Bureau’s offices abroad and by the American Consular Service.
As a result of a number of important exchange developments m
foreign countries, the district offices were called upon to convey to
manufacturers certain advance information, which undoubtedly re­
sulted in saving businessmen many thousands of dollars.
One feature of the work in the district-office service was the com­
pilation of an economic report on each district, which it hopes to
publish as soon as funds are available.
DOMESTIC-COMMERCE ACTIVITIES

The domestic-commerce activities of the Bureau have taken on new
and added significance during the past fiscal year as a result of the
set-back which business experienced during the latter part of 1937.
Increased demands for information about business conditions taxed
to the utmost the limited facilities of the Bureau in this field. Prog­
ress was made, however, in such directions as the initiating of new
current series on inventories in the hands of manufacturers, whole­
salers, and retailers, and in the expansion of the sales-reporting pro­
gram in the Marketing Research Division. Similarly the work in
the field of construction economics was expanded to meet better the
demands from the construction industry.
Closer cooperation with other research agencies in the domestic
field was initiated at the request of the State university bureaus of
business research. The deans of the schools of commerce and busi­
ness of these State universities met with officials of the Bureau m
the interest of working out a broader program on a sounder basis
for cooperation in the collection and analysis of business information.
The domestic commerce work in the Bureau was carried out in
the two divisions, Economic Research and Marketing Research.
Plans were formulated for the regrouping of this work early in the
fiscal year 1938-39 to provide a third division, that of Business
Review. This reorganization of the work was planned in the interest
of increased efficiency and specialization in meeting the demands of
the business community.
ECONOMIC RESEARCH

The services of the Division of Economic Research have been of
two broad types—(1) the compilation, analysis, and publication of
statistics on current business trends, and (2) investigations for the
development of new statistics and other information upon a wide
range of economic subjects, such as national income, long-term debt,
and specific studies of construction and similar industries. The
results of these activities have been made available in the form of
current periodicals, special publications, and answers to a large num­
ber of current inquiries from private businessmen and from members
of the Congress and other Government officials.

64

REPORT OF T H E SECRETARY OF COMMERCE

The principal publications and statistical services prepared and
issued by the Division during the past fiscal year were as follows:
(1) The Survey of Current Business: Monthly issues of this pub­
lication contain more than 2,000 individual statistical series covering
nearly all fields of economic activity. Each monthly issue also has
included an analysis of the general business situation and studies of
various aspects of business. The paid circulation of this publication
has increased more than 25 percent during the year. The March issue
this year contained a review of economic conditions in the United
States during the calendar year 1937, replacing part 1 of the World
Economic Review published in previous years.
(2) 1938 Supplement to the Survey of Current Business: This pub­
lication was prepared and sent to the Government Printing Office
during the fiscal year. It continues the series carried in the 1936
Supplement to the Survey of Current Business, adds many new
series,_and embodies the complete revision and modernization of de­
scriptive material relating to the individual series.
(3) The Statistical Abstract of the United States, 1937: This pub­
lication brings together under one cover each year a very large
number of statistics that are of great importance to businessmen,
Government officials, economists, and students.
(4) National Income, 1929 to 1936: This bulletin incorporates the
estimates of national income paid out and produced by major indus­
trial divisions for this period.
(5) Monthly Income Payments: In connection with the activities
of the national-income section of the Division, a monthly index of
income payments for the Nation as a whole has been compiled and
is carried forward each month as a regular feature of the Survey of
Current Business. This index is the most comprehensive and inclu­
sive measure of economic conditions that is available at the present
time.
(6) Construction Activity in the United States, 1915-37: This bul­
letin presents estimates of construction activity in great detail by
type of use of structures, by ownership, and, in the case of public
construction, separate tabulations showing the source of financing.
This bulletin also contains an analysis of the major characteristics
of construction activity in the United States and compares employ­
ment in this industry with that in other industries.
During the year the Division of Economic Research has improved
its facilities in several fields. The construction and real-property
section has expanded its activities in connection with the analysis of
residential building and has made substantial progress in the study
of the various interrelated factors that affect the volume of building.
The work in the national-debt section has been revived in response
to numerous requests from governmental agencies and businessmen.
At the present time estimates of total long-term debt are being pre­
pared, bringing the data, published in Long-Term Debts in the
United States, 1912-34, forward through the years 1935, 1936, and
1937. The national-income section is preparing estimates of in­
come payments by States. Official data on this important subject
have long been needed.
One of the regular services performed during the year has been
the preparation of a Weekly Review of Business Conditions for the
use of Federal Government officials.

BUREAU OF FOREIGN AND DOMESTIC COMMERCE

65

MARKETING RESEARCH

During the past year the Marketing Research Division continued
to serve manufacturers, wholesalers, retailers, trade-association exec­
utives, and others interested in the complex problems of distribution.
Help has been received from and given to many other governmental
agencies. The outstanding achievement was the further expansion
of the current reporting service of the market-data section, and the
increasing demand for the resulting information. During the past
fiscal year the number of independent retailers who voluntarily con­
tributed requested data increased from slightly less than 13,000 to
26,000. This part of the service now covers 26 States, as against 15
a year ago. Some 27 reports on independent retail sales are issued
monthly and mailed to more than 68,000 businessmen who have re­
quested this service—an increase of more than 40,000 for the year.
Coverage in the chain-store field has been extended to include a 50
percent sample, based on sales.
The number of wholesalers reporting dollar sales, accounts receiv­
able, collections, and dollar inventories has increased from 1,100 to
more than 2,000 during the year, and the number of manufacturers
from 500 to 1,100. Three new releases containing current statistical
analyses in the electrical, hardware, and food trades are now pub­
lished monthly. Others will follow. For the first time within re­
cent years wholesale inventory figures have been available on a
monthly basis since last January. They have attracted more favor­
able general attention than any other current domestic data issued
by the Division.
On January 1 the market-data section took over all of the cur­
rent wholesale reporting work of the Board of Governors of the
Federal Reserve System. Preparations are being made to assume
complete responsibility for the remaining portion of their trade­
reporting work in order to consolidate this work in one agency.
During the past year a new edition of Wholesale Grocery Trading
Areas was issued. In order to reduce duplication and give wider
use to regional statistics now collected throughout the country, such
data have been collected and classified for the purpose of publishing
a source book in the near future.
The last in the series of reports on Consumer Use of Selected
Goods and Services by Income Classes, covering 50 cities throughout
the United States, was published during the past fiscal year. These
data, covering more than 228,000 families, were widely and inten­
sively used by advertisers, manufacturers, distributors, and publishers.
The 1938 edition of the Consumer Market Data Handbook was
practically completed by the end of the fiscal year by members of
the consumer-market section. This edition, planned with the aid
of many sales managers and marketing executives, contains what is
believed to be the most comprehensive manual of consumer market­
ing statistics ever assembled, broken down by counties and cities. It
contains 82 items, or nearly three times as many as were m the last
A new edition of Suggestions for Use in Making a City Survey
has been completed for publication. The major part of this report
is an outline for the survey of the industrial and commercial status

66

REPORT OP T H E SECRETARY OF COMMERCE

of individual cities, which will be used in making local studies lead­
ing to a more exact understanding of local needs and to the eventual
improvement of employment, purchasing power, and consumption.
The industrial-marketing unit issued three reports during the
past year. Of them, the Effect of City Water and Sewerage Facili­
ties on Industrial Markets attracted much attention among city offi­
cials, manufacturers^ and distributors of equipment and supplies used
in this large industrial market. Another Basic Industrial Series re­
port was completed, The Pulp and Paper Industry. An increasing
number of manufacturers are turning to the unit for information
concerning industrial markets, location of new plants, selling policies
and methods, and related questions.
The installment-credit unit, which was established during the past
year, has already assembled much information on this subject. In
cooperation with the Associated Credit Bureaus of America, it con­
ducted and issued a detailed study of installment terms in more than
100 cities throughout the United States. Estimates of installment
sales volume and of outstanding credit on that account covering 1937
were also released shortly after the close of the calendar year. The
Annual Retail Credit Survey has been continued and elaborated to
give more data on installment selling, collections, and bad-debts losses
m 14 retail trades in 86 cities.
Lists of State and local trade associations have been published dur­
ing the past year for all 48 States, the District of Columbia, and the
cities of New York and Chicago. There are 5,800 State and local
associations m 2,200 cities. Of this total, 1,100 are organizations of
manufacturers; 400 are of wholesalers; 2,600 of retailers; and 1 700
are associations of business organizations in the service fields.
The interests of small businessmen have been served during the
past year by the publication of Small-Scale Retailing, a statistical
study of two-thirds of the retailers who account, for less than 15 per­
cent of dollar sales; Store-Arrangement Principles, which was com­
pleted for publication; and Patterns of Stores, Sales, and Population
m the United States. Other short, clearly written, well-illustrated
reports, prepared for small retailers, their trade associations and trade
papers, wall follow.
A new edition (the seventh) of Market Research Sources was pub­
lished, presenting another periodical inventory of the activities of
research agencies m marketing; it constitutes a handbook which not
only shows the sources of available material and the sponsors of cur­
rent projects but also prevents much waste that might result from
duplication of efforts because of ignorance of the wmrk of other oro-anizations.
In addition to the reports, many other services have been rendered
businessmen and others interested in distribution. More than 20 000
inquiries necessitating search and research were received and answered.
Iota! installations of the Business Information File, an abstracting
service available free to trade associations, chambers of commerce and
business libraries, and at a charge to private business houses, increased
from 476 to 562. Paid installations increased 38 percent.
As a result of the high editorial standards of Domestic Commerce
the number of paid subscribers to this 22-page publication, appear­
ing every 10 days, increased from 2,495 to 3,153 during the year. It
carried an increasing amount of original data not found elsewhere

BUREAU OF FOREIGN AND DOMESTIC COMMERCE

67

EDITORIAL AND PUBLICATION WORK

Supervision over the publication work of the Bureau has Been exer­
cised by the Editorial Division. Printing funds having been available
in slightly larger amount, an increase was again recorded in the quan­
tity of work performed. The Division has, as usual, appraised the
merits of any suggested publication and given an opinion as to the
desirability of issuing it; has evaluated, and often recast, the method
of presentation, so as to insure a maximum of accuracy and effective­
ness ; and has made the material conform to high typographical stand­
ards. Members of other divisions who have been concerned in the
preparation of manuscript designed for publication have found it
necessary to confer with the staff of the Editorial Division. Detailed
printing problems—often of a highly technical nature—call for the
constant attention and counsel of the Division. During the past year
the Division has given special attention to an effort to improve the
general appearance of Bureau publications and thereby heighten their
“reader-appeal” ; the use of rather striking art work on the covers of
the monographs has been one of the principal means employed. Upon
the Editorial Division falls the duty of scrutinizing, and revising if
necessary, all of the Bureau’s processed publications before they are
reproduced. On various occasions, original writing (of statements,
articles, and other informational material) has been done in the
Division.
Steady effort has been devoted by the publications-distnbution sec­
tion to the task of augmenting the circulation of all the publications
of the Bureau, by making the business community more acutely con­
scious of the practical help that can be obtained from them. Noteworthy increases in subscriptions and sales have resulted; for ex­
ample, there has been an increase of 30 percent in the paid subscrip­
tions to the Survey of Current Business and of 20 percent in the sub­
scriptions to Commerce Reports, with satisfactory increases also in
the renewal rate. The section cooperated with the special committee
for Foreign Trade Week, and in like manner has cooperated in the
devising of exhibit material designed to show the work of the Bureau
graphically. Successful efforts have been made to develop the use
of Bureau material in schools of business administration throughout
the country.

NATIONAL BUREAU OF STANDARDS
GENERAL ACTIVITIES

Finances and 'personnel■■—-The Bureau’s appropriation for 1938 was
$2,118,000. This included $198,000 for a special investigation of build­
ing materials and structures, with particular reference to low-cost
housing. The sum of $22,825 for travel was allotted from the consoli­
dated funds of the Department of Commerce. If this amount is added
to the regular appropriation, the total represents an increase of
$196,925 over the funds available for expenditure in 1937, the increase
being confined wholly to the special appropriation for studying build­
ing materials. The regular staff at the close of the year (including
temporary employees) numbered 929. In addition, 59 research asso­
ciates, supported by national engineering societies and trade associa­
tions, were engaged on technical problems of mutual interest to the
Government and industry.
Testing.—The testing of supplies purchased by the Federal Gov­
ernment—a primary function of the Bureau—again has required the
entire time of about one-half of the Bureau staff. This service is
rendered for practically every governmental agency, and is worth
many times its cost, since it insures that the quality of supplies
purchased is in strict accordance with the Federal specifications.
Publications.—The results of the year’s work have been made avail­
able through 254 publications and articles. In addition, oyer 100
letter circulars and mimeographed notes on subjects of general interesthave been prepared and distributed on request.
Visiting committee.—The members of this committee are: Morris
E. Leeds, president of the Leeds & Northrup Co.; Dr. William D. Coolidge, director of the research laboratories of the General Electric Co.;
Dr. Frank B. Jewett, president of the Bell Telephone Laboratories Dr. Karl T. Compton, president of the Massachusetts Institute of
Technology; and Gano Dunn, chairman of the J. G. White Engineer­
ing Corporation. The committee’s advice on many important subjects
has proved of great value.
New photometric units.—Several divisions of the Bureau have
cooperated in experimental work directed toward the establishment
of practical photometric standards embodying the new system of units
adopted in 1937 by the International Committee on Weights and
Measures. In this system the primary standard is a black body at
the temperature of freezing platinum, and the magnitude of the basic
unit of luminous intensity, called the “new candle,” is fixed by taking
the brightness of the primary standard as 60 candles per square centi­
meter. Filament lamps are used as working standards to maintain
the units. The luminous intensity (candlepower) of 8 carbon-filament
standards, operated so as to give light of the same color as the primary
69

70

REPORT OF T H E SECRETARY OF COMMERCE

standard, has been determined by comparing them directly with the
black body.
For practical purposes standards operating at higher temperatures
and at different colors are essential. Such standards are to be estab­
lished on the basis of spectral factors of luminosity adopted by the
international committee. As one method of applying these factors,
blue filters have been used to pass from carbon-filament to vacuum
tungsten lamps and then to gas-filled lamps. A more direct method
of establishing gas-filled standards has been developed by using the
radiation from a black body at the temperature of freezing iridium
and calculating its intensity by means of the standard luminosity
factors. Six gas-filled tungsten-filament lamps have thus been cali­
brated by direct comparison with the black body at the iridium point
(2727° K, 4449° F ). The acceptance of the luminosity factors as
the basis for measuring lights of all colors gives new importance to
physical photometers. A combination of filters with a nonselective
radiometer has been developed which promises to be a practical means
of measuring lamps of all types.
. I t is also necessary to have standards of light flux, as well as of
intensity. Special standard lamps have been obtained and measured
in various ways in order to determine accurately the relation between
the directional candlepower and the total light output.
In order to assure international uniformity among the new stand­
ards, lamps embodying the several parts of the new system as set up
experimentally in different countries are to be compared at the British
National Physical Laboratory. The Bureau has submitted three
groups of standards for this purpose. Reports from other countries
have not been received, but it is expected that the new units will be
generally used beginning January 1, 1940.
Twenty-eighth National Conference on Weights and Measures.'_
This conference, attended by weights and measures officers of States,
cities, and counties, by representatives of the Federal Government
and by manufacturers of weighing and measuring devices, met at the
Bureau on May 31 to June 3. More than 140 State and local officials
were m attendance from 27 States and the District of Columbia out
of a total registration of approximately 250. Special attention was
given to the Bureau s report on more than 100 vehicle-scale tests, made
m cooperation with the States during the past 2 years. In this repoit definite recommendations were made for improvement of con­
ditions m this field Special testing equipments for large-capacity
scales operated by States and cities were studied, and a city-owned
equipment for the testing of fuel-oil meters was demonstrated. Nu­
merous subjects relating to the administrative and technical aspects
of weights and measures administration were discussed, and some
amendments to codes of specifications, tolerances, and regulations
previously approved were adopted by the conference
Conference of public utility engineers.—Thirty-nine commission
engineers from 25 States and the District of Columbia, together with
representatives of the Federal Government concerned with the tech­
nical aspects of public utilities’ regulations, attended their sixteenth
annual conference at the Bureau on May 17 to 19, inclusive Thir­
teen formal papers were presented and discussed.
American Standards Association.—The Bureau takes an active part
m the work of this association. In addition to representation on

NATIONAL BUREAU OF STANDARDS

71

over 100 sectional committees dealing with technical projects, and
the primary responsibility for 17 of them, it is represented on the
following coordinating agencies of the association: The Board of
Directors, the Standards Council, the Safety Code Correlating Com­
mittee, the Electrical Standards Committee, the Mechanical Stand­
ards Committee, the Advisory Committee on Ultimate Consumer
Goods, and the Building Code Correlating Committee. The Bureau’s
safety-code work is conducted under the procedure of the associa­
tion, and all of its safety codes have been issued as standards of the
association. All of the building-code and plumbing-code require­
ments thus far formulated under the auspices of the Bureau have
been accepted as a basis for the development of building and plumb­
ing codes under American Standards Association procedure. Two
members of the staff of the association are located at the Bureau
to facilitate the cooperative work of the two organizations.
Federal specifications.—The Bureau makes many investigations
and tests in connection with the development and use of purchase
specifications by the Federal Government. The Director serves as
chairman of the Federal Specifications Executive Committee, under
the auspices of which 1,162 specifications have been prepared for the
use of executive departments and establishments of the Government.
ELECTRICITY

Fundamental units and standards.—In accordance with decisions
of the International Committee on Weights and Measures, new values
of the electrical units based upon “absolute” measurements are to be
used beginning January 1, 1940, and determinations of the relation
which the absolute ampere and ohm have to the present “interna­
tional” units are to be reported by national laboratories by the end
of 1938. The Bureau published results of such determinations in
1934 and 1936, but has now constructed improved apparatus for
both units. The new equipment includes a very accurately con­
structed inductance coil from which the henry (and ohm) will be
derived, and new coils wound with anodized aluminum ribbon, in­
stead of wire, for the ampere balance. A precise mutual inductor
intended for use in establishing the value of the ohm by another
method has also been constructed.
Resistance coils of the new type developed at the Bureau have
continued to show remarkable constancy. Two 10-ohm resistors
loaned to the International Bureau of Weights and Measures were
compared by that Bureau with the 1-ohm standard furnished last
year, and tlie values were found to be consistent within less than a
part in a million.
Saturated standard cells have been made in which a portion of the
normal water is replaced by deuterium oxide (commonly called
“heavy water”). These cells are fully as reproducible and constant
as cells made in the ordinary manner, and in some respects they may
be superior. The electromotive force is decreased slightly as the
proportion of heavy water is increased. (RP1094) }
1P are n th e se s id e n tify th e se ria l num ber of th e paper an d th e B u reau pu b licatio n in
w hich i t appeared. R P re fe rs to a paper in th e J o u rn a l of R esearch of th e N atio n al
B u reau of S ta n d a rd s ; TNB, T echnical News B u lletin ; BMS, B uilding M a terials an d S tru c­
tu re s ; R, Sim plified P ra c tic e R ecom m endation ; CS, C om m ercial S ta n d a rd ; M, M iscellaneous
Series.

72

REPORT OE T H E SECRETARY OF COMMERCE

High-voltage laboratory.—The appropriation for the fiscal year
1939 provides for a new laboratory for high-voltage work, including
X-ray investigations, as well as measurement of voltages and studies
of materials under high electrical stresses (RP1078 and RP1079).
Plans for the equipment of this building are already well under way.
Radio.—^throughout the year the Bureau broadcast regularly from
its own station, on an expanded schedule, standards of radio fre­
quency, seconds intervals, and the American standard of musical
pitch. The last, a tone of 440 cycles per second, was broadcast
for 10 hours daily. In addition, various highly accurate standard
frequencies between 1 and 100,000 cycles per second were made con­
tinuously available, principally within the Bureau, by wire line.
As a result of the Bureau’s research on radio wave transmission,,
means were developed for determining long-distance transmission
conditions from ionosphere data, and vice versa (RP1096). The
radio effects of three types of irregularities in the ionosphere were
segregated, permitting better control of long-distance operations
during periods of bad transmission. The Bureau furnished iono­
sphere data to the public regularly by weekly radio broadcasts and
monthly publication. Extensive use was made of these data in pre­
paring proposals for the Inter-American Radio Conference held in
Habana in 1937 and the International Conference in Cairo in 1938.
The radio meteorograph developed by the Bureau for the Navy
was brought to a practical operating stage, and was adopted for use
by that Department and by the Weather Bureau (RP1082 and
RP1102). I t gives continuous radio transmission of data on tem­
perature, pressure, humidity, and other elements as desired, from
instruments carried by small unmanned balloons.
Storage-battery research.—Measurements of the solubility of lead
sulphate in sulphuric-acid solutions have been made by a new method
of titration, using a color indicator (diphenylthiocarbazone) in con­
junction with a photronic cell. By this method amounts of lead as.
small as one millionth of a gram produce measurable effects. The
newly determined values differ somewhat from those previously re­
ported, and a maximum in the solubility curve is shown to occur
at 0.1 normal acid concentration.
Experiments on various lead alloys as substitutes for the custo­
mary lead-antimony alloys have been continued. Cells containing
no antimony are comparatively free from local action and show
greatly reduced evolution of hydrogen, but have the disadvantages
of corrosion of the positive grids and higher charging potentials..
The lead-alloy problem remains one of the most important subjects
in battery research.
Aviation lighting.—The program of tests and development of
aeronautic lighting equipment, for the Bureau of Air Commerce,
Department of Commerce, and the Bureau of Aeronautics, Navy De­
partment, has included studies of position and landing lights and
instrument lighting on airplanes; and beacon, approach, contact,
flood, and boundary lights for airways and airports.
A special study has been made of silver-plated reflectors as used
in position and landing lights. Lights using experimental reflectors
plated with 0.0001 inch of silver applied over nickel plate 0.0001 inch
thick were exposed to sea air and operated intermittently by a.

NATIONAL, BUREAU OB STANDARDS

73

flasher to simulate operating and corrosion conditions in service.
After 8 months of such exposure the experimental reflectors axe in
good condition, whereas commercial silver-plated reflectors similarly
exposed have begun to fail. The suitability of newly developed
transparent lacquers for protecting silver-plated reflectors against
corrosion by sea air is also being tested.
Corrosion of f i f e lines.—As an outgrowth of earlier work on
damage to pipe lines by stray electric currents, the Bureau has
studied the corrosive effects of soils on metals buried underground.
The results have shown that no material which it is practicable to
use for pipe lines will resist corrosion in all soils, and that protective
coatings are therefore essential in some cases (RP1058). An elec­
trolytic test has been developed to determine in advance whether soils
are sufficiently corrosive to justify the use of coatings on pipes laid
in them. Indications given by this test agree reasonably well with
actual experience on certain lines for which records of leaks and
repairs have been kept.
.
A 3-day conference on underground corrosion was held at the
Bureau in November, at which 82 papers were presented. These were
received from seven countries besides the United States, and repre­
sentatives of five of these countries attended the conference.
WEIGHTS AND MEASURES

Proposed legislation relating to weights and measures.—The bill
introduced in Congress (H. K. 7869) to define certain units and to
fix the standards of weights and measures of the United States has
been superseded by IT It. 8974, which, in addition to the original
provisions, contains an explicit definition of the inch m teims ox
cadmium light waves. The revised bill has the approval of stand­
ardizing bodies, engineering societies, weights and measures officials,
and manufacturers concerned with precision length measurements m
industry, especially those employed in interchangeable manufacture.
It has since developed that very large numbers are sometimes in­
volved in conversions from meters to feet in the Federal system of
plane coordinates, and that a change as small as 1 part m 500,000
would lead to discrepancies. A further amendment has been pro­
posed authorizing the continued use of the present constants m com­
puting Federal and State systems of plane coordinates, elevations,
and other map data.
, J
Testing railway track scales.—Sixteen master track scale calibra­
tions were made, one scale being calibrated twice. _ On 14 of these
calibrations the scales were found not only to be within the mainte­
nance tolerances, but to be within the adjustment tolerances as well.
All scales were left weighing well within the adjustment tolerances,
weighing errors in all cases, being less than 0.01 percent.
The Bureau’s three railway track scale testing equipments tested
1160 commercial track scales, operating on the tracks of 104 rail­
roads in 29 States. Of these scales, 592 were owned by railroads and
the remaining 568 fell in the classification of industry-owned scales.
The tolerance according to which railway track scales are classified
as accurate or inaccurate isi ±0.20 percent of the applied load. Of
all scales tested, 940, or 81 percent, were found to be weighing withm
108928— 38—

8

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REPORT OP T H E SECRETARY OF COMMERCE

this tolerance. The corresponding percentage for the preceding
fiscal year was 75.3 percent.
Testing vehicle scales.—In continuation of the project, inaugurated
in 1936, of testing vehicle scales in cooperation with State and local
weights and measures officials, the Bureau tested 652 motor-truck and
wagon scales. _ The large majority of these scales were owned by
companies or individuals engaged in retail business; the remainder
were owned by Federal, State, or local governmental agencies.
This testing project contemplates the examination, in each State
where a testing program is undertaken, of a representative number
of scales, so that the results of the tests may be indicative of the con­
ditions prevailing generally throughout the State. Such programs
were completed during the year in Delaware, Rhode Island, Maine,
New_ Hampshire, Vermont, New York, Alabama, Louisiana, Missis­
sippi, Tennessee, and West Virginia.
Vehicle scales are classified as accurate or inaccurate upon the basis
of a tolerance which, in general, may be stated as ±0.2 percent of
the standard-weight loads applied. One hundred and forty-six
scales, or ^only 22.4 percent of those tested, gave accurate weights
within this tolerance; the remaining 77.6 percent of the scales tested
were inaccurate, in extreme cases being in error by as much as 100
pounds in a ton.
le st and certification of apparatus.—In addition to the extensive
field work in the testing of railway track scales and vehicle scales
already mentioned, this Division devotes a large part of its time to
the testing and certification of many types of weighing and measuring apparatus, such as line standards of length, geodetic tapes,
haemacytometer chambers, sieves, graduated circles, analytical
weights and balances, watches, clocks, glass volumetric apparatus,
hydrometers, metal capacity measures, gas meters, screw threads, pre­
cision gage blocks, and limit gages. This work has, in most cases,
increased materially during the past year. The number of pieces
of glass volumetric apparatus tested, 16,452, was 31.2 percent greater
than for the preceding year, and 10.5 percent greater than for any
other year in the history of the Bureau.
Parking meters.—.At the request of the Department of Vehicles
and 1 raffic, District of Columbia, the Bureau tested a representative
group of parking meters and ■assisted in drawing up specifications
to be used in purchasing 310 meters for experimental use in Wash­
ington.
Research on flow nozzles.—As part of the cooperative research on
flow nozzles, sponsored by the American Society of Mechanical EnMneers’ Special Committee on F luid Meters, data have been secured on
108 nozzles, with pipe sizes ranging from 2 to 24 inches, and with
water, oil, ^steam, and air as test fluids. A preliminary paper was
published in the Transactions of the ASME for April 1938.
Dental_ research.—-Researches in cooperation with the Research
Commission and the American Dental Association on the composi­
tion and physical properties of dental materials have covered tooth
pastes, impression materials, silicate cements, synthetic dental resins,
model plastics, and the testing of dental materials for compliance
with ADA and Federal specifications.

NATIONAL, BUREAU OF STANDARDS

75

Identification.—The identification of signatures and other work on
documents have been heavier than in any previous year About 75
cases have been handled, most of them at the request of the Interior,
Treasury, or Post Office Departments. Testimony presented by the
Bureau’s expert has saved the Government large sums of money, and
has served the ends of justice in other ways.
HEAT AND POWER

Heats of combustion.—An exact knowledge of the heats of com­
bustion of the various forms of carbon is important m tliermochemical problems. As published data in this field were not sufficiently ac­
curate to meet modern requirements, new determinations have been
made of the heats of combustion of carbon in the form of graphite
and diamond. One sample of artificial graphite, two samples of
natural graphite, and two samples of diamond, all carefully purified
for the purpose, were used. The data obtained are believed to repre­
sent a substantial contribution to our knowledge of the thermochemis­
try of carbon. A paper on the heat of combustion of isoprene
(RPf093) and another on apparatus and methods of determining
thermal properties of petroleum products have been published.
Low temperature measurement.—The establishment of a scale ox
temperatures between -190 and -262° C. to serve as a basis for the
calibration of thermometers in this range of temperatures is nearly
completed. Already requests have been received for such calibrations,
and thermocouples are being accepted for test.
Standardization of base metal thermocouples.—The most important
and widely used device for the industrial measurement of temperatures
beyond the range of mercurial thermometers is the thermocouple.
During the past year standard curves were determined for base metal
thermocouples (iron-constantari and copper-constantan) (RP1080).
Standard curves have now been published for all principal types of
thermocouples, those . previously determined for chromelalumel
(RP767) and for platinum-rhodium (RP530) being now in general
UhFire-resistance tests.—Materials and devices in considerable variety
were tested for other Government services. These include flammabil­
ity tests of deck and floor coverings, roofing materials, materials Xor
ship bulkheads, insulated electrical conductors, treated canvas, insu­
lating and acoustical materials, fire retardant surface coatings for
wood (RP1076), and various materials subject to ignition from im­
pacts or spontaneous heating. Tests and examinations were made of
fire detecting and automatic extinguishing equipments, some of them
representative of existing installations on ships. Fire-resistance tests
were conducted of floor and column constructions.
Pnmamj standards for knock testing.—Specifications for normal
heptane and iso-octane have been developed by the Bureau, approved
bv the Cooperative Fuel Research Committee, and adopted by the
American Society for Testing Materials. A report was published
on paraffin hydrocarbons isolated from crude synthetic iso-octane
(RPf027), and further work is to be done on the impurities m syn­
thetic heptane.

76

REPORT OE T H E SECRETARY OF COMMERCE

Ignition investigations.—A »report was published on the electrical
character of the spark discharge in automotive ignition systems
(RP1032). Development work in progress for the Navy Department
embraces spark plugs, magnetos, cable, and other components of the
aircraft engine ignition system. Routine temperature surveys have
been made in flight on all types of aircraft to guard against overheat­
ing of engines and their accessories.
Lubrication of aviation engines.-—Supplementing current work on
improved lubricating oils for high output aviation engines, inspection
forms have been compiled to be used by the Bureau and the industry
in recording qualitatively, at the time of overhaul, the condition of all
parts of aviation engines affected by lubricating oil characteristics.
Thus, comparable records of engine condition will be maintained, and
it will be possible for the first time to make a systematic comparison
of the performance characteristics of aviation lubricating oils in serv­
ice. An inspection committee of the Society of Automotive Engineers
is making a series of cooperative aviation engine inspections as a basis
for standardizing the forms and to further their use by the industry
and by airplane operators.
OPTICS

Optical rotations of the sugars.—In aqueous solution the various
sugars rotate the “plane of polarization” of light by characteristic
amounts, and this rotation is employed for the chemical analysis of
sugar products. The purity of a sugar can be tested with high ac­
curacy by measuring its “optical rotation” ; consequently, the Bureau
obtains optical rotatory data on the sugars, the information being also
valuable for research on the creation of new substances.
The reducing sugars exist in several modifications, or molecular
forms, which, being mutually interconvertible in water solution, tend
to establish there an equilibrium concentration. Since each modifi­
cation has its own characteristic optical rotation independent of the
others present, the measured rotation is the sum of that of each com­
ponent acting alone. This change in optical rotation, called muta­
rotation, furnishes a simple and potent means for following quantita­
tively the interconversion as it progresses. By studying the muta­
rotations of the various sugars the Bureau has found that two funda­
mentally different reactions take place : One, known for a long time,
is the interconversion of the alpha and beta normal sugars; and the
other a change from one ring modification of the molecule to another.
The mutarotations of certain sugars, for example, galactose, reveal
the presence of both reactions ; the mutarotation of glucose is caused
by the interconversion of the alpha and beta six-membered rinoforms, while the mutarotation of levulose is caused by a shift from
the six-membered ring form of molecule to a five-membered form.
The presence of a large proportion of the five-membered modifica­
tion accounts for many of the distinctive properties of levulose, the
sweetest of all sugars. During the past year, two new crystalline
sugars, alpha-delta-beta mannoheptose and beta-delta-alpha guloheptose were prepared (RP1052 and RP1069) ; and copper reduction and
bromine oxidation measurements were made on 10 rare sugars.
Railroad signal glasses.—Continuing its cooperation w ithf he Asso­
ciation of American Railroads, signal section, and with Corning Glass

NATIONAL BUREAU OB STANDARDS

77

Works, the Bureau has assisted in formulating the colorimetric parts
of Association of American Railroads signal section specification
59-38 for hand-lantern globes, and in the revision ox specification
69-35 (now 69-38) for other signal glasses. A majority of tire
glasses examined for conformity to the colorimetric requirements
of 59-38, were acceptable as limits and can be issued to manufacturers,
with certificates to serve as standards in the manufacture of bandStandardization of color names.—In cooperation with the Ameri­
can Pharmaceutical Association, the United States Pharmacopoeia!
Revision Committee, and the Inter-Society Color Council, a system
of deriving color names has been worked out on a logical scientinc
basis The 320 names are made up of common color terms and are
easily understood. The definition of the group of colora to be known
by each name is on a fundamental basis which makes it possible tor
color designation by this system to have a legal meaning.
Airplane mapping.—Equations have been derived giving the rela­
tion between errors of calibration of an airplane mapping camera
and the consequent errors in the resulting map produced by photogrammetric methods. This will serve as a basis for the preparation
of specifications to govern the certification of precision mapping
cameras and will undoubtedly stimulate the production ot better
instruments.
.
«
Index of refraction of distilled water.—For accurate testing of
refractometric instruments, refractive-index measurements ot dis­
tilled water have been made and analyzed by representing them as
a function of temperature and wave length; and comprehensive
tables, with no indication of accidental or systematic error in excess
of one or two parts per million, were published (RP1085) tor tem­
peratures from 0° to 60° C. and for wave lengths from 4,000 to
7,250 angstroms.
, n
,
,, , .
Standard wave lengths.—Precise standards of wave length being
«neatly needed in the ultraviolet, all of the ultraviolet lines ot neon,
argon, and krypton, intense enough to observe with interferometers
were measured relative to the adopted standards. Tested by means
of the combination principle, the average error in the relative value
of these results appears to be 1 part in 20 millions.
Atomic emission spectra.—New descriptions of arc and spark spec­
tra characteristic of two rare earths, ytterbium and lutecium, were
published (RP1053 and RP1071), and the completion of a new de­
scription of the silicon arc spectrum (RP1124) permitted correction
and extension of its structural analysis, as well as explanation or
many heretofore unidentified lines in the solar spectrum. _ _
Ultraviolet measurements in the stratosphere.—Signals giving ul­
traviolet intensities in the stratosphere were transmitted to a fixed
ground station by radio from apparatus carried by unmanned bal­
loons. This apparatus consisted of a cadmium photoelectric cell and
filter radiometer, a barograph, and a radio transmitting apparatus,
all operated on dry cells. Data were obtained to a height of 19
kilometers (12 miles), at which height the results indicated that¡an
appreciable portion of the ozone layer had been penetrated (RR1075).
Radioactive materials.—A new set of microgram radium standards
has been prepared, ranging from 1 to 50 micrograms of radium.

78

REPORT OF T H E SECRETARY OF COMMERCE

These have been checked at the Massachusetts Institute of Technology
and found to agree with their preparations to within 1.5 percent;
1,630 radioactive preparations, having a radium content of approxi­
mately 10,000 milligrams, were certified; and 15 samples of luminous
material were tested for brightness. Cosmic ray intensities were
measured by radio equipment carried by balloons to a new high alti­
tude of approximately 110,000 feet.
X-rays.—High voltage equipment has been built and an X-ray
standard developed for measuring X-ray dosage for excitation volt­
ages up to and above 400,000; The X-ray protective properties of
concrete have also been investigated.
Micro-hardness instrument.-—-An instrument based on the inden­
tation produced by a diamond ground in the form of an elongated
pyramid has been developed primarily for making quantitative meas­
urements of the relative hardness of brittle materials, such as glasses
and enamels, crystals, thin platings, and the crystalline structure of
metals. It has been used to study the effect of varying the form of the
indentor, the plastic and elastic movement of the material, the load,,
and time of application of the load. The results were also correlated
with those obtained with the ball, cone, and square pvramid indentors
which are in general use.
CHEMISTRY

Physical constants of pure substances.—In a recent report the
Bureau recommends the use of water as a primary reference standard
for comparative determinations of boiling points, vapor pressures,
rates of change of vapor pressure with temperature, and densities of
liquid substances (RP1088). The boiling points and vapor pressures
of specially purified benzene, ethylene chloride, w-heptane, and 2, 2,
4-trimethylpentane have been measured precisely over the pressure
range 660 to 860 mm of mercury, and the results expressed in the form
of equations suitable for use in calculations (KP1097).
An investigation of the composition of the troposphere with respect
to meteorological conditions was initiated. This study should contrib­
ute to theories of diffusion in the stratosphere, and to the mass move­
ment of upper air currents upon which weather predictions are based.
It should also define the degree of constancy of air as a standard refer­
ence gas in physical measurements.
Information on the behavior of iridium when subjected to various
treatments has been secured. I t is hoped that this work will lead to
a satisfactory procedure for the preparation of this metal in a state
sufficiently pure to permit a determination of its physical constants.
So far indium has proved to be the most difficult to'refine of all the
metals of the platinum group.
The study of the structure of rubber was continued. The polariz­
ing microscope showed that four other species behave like Hevea
rubber on freezing and melting. X-ray patterns, made at the Univer­
sity of Illinois, of stretched sol and gel Manihot rubber, resemble those
of Hevea rubber.
The development of a suitable technic for the precise determination
of the freezing range of nearly pure substances has been nearly com­
pleted. In this connection benzoic acid of extraordinarily high purity

NATIONAL BUREAU OE STANDARDS

79

has been prepared by several methods, including fractional sublima­
tion fractional freezing, and crystallization from benzene and from
water. The comparative purity of the products was determined from
their freezing ranges.
. „ _,
. . ,.
The general details of a new accurate method for determining the
optical properties of crystalline particles were worked out.
Thermochemistry.—The heat of combustion of tetramethylmethane,
the most symmetrical isomer of pentane, was measured, and its energy
of isomerization into normal pentane was calculated.
The existing data on the heats of formation of the simple organic
compounds were reviewed to ascertain which of these compounds is in
most urgent need of investigation.
.
. . .
Constitution of 'petroleum.—Work on the chemical constitution of
petroleum, in cooperation with the American Petroleum Institute, led
to the following results : The fractionation, by distillation and extrac­
tion, of the “extract” portion of the “lubricant” fraction from a
midcontinent petroleum and the hydrogenation of certain of these
fractions; the assembly of a continuous high-vacuum still and of a
boiling-point apparatus for low pressures; the separation, by distilla­
tion with acetic acid, of the aromatic hydrocarbons, as a group, from
the paraffin and naphthene hydrocarbons in the petroleum distillate
of the boiling range, 154° to 162° C.
.
Methods of analysis—New and improved methods of chemical
analyses were published on : The use of arsenious oxide for standard­
izing permanganate solutions (RP1057) ; analysis of phosphate rock
(RP1095) ; determination of arsenic, antimony, and tin in lead-, tin-,
and copper-base alloys (RP1116) ; improved method for the determi­
nation of aluminum in nonferrous alloys (RP1117) ; and preparation
of ammonium aurintricarboxylate (RP1118).
Work on the analytical chemistry of the platinum metals led to the
completion of a new procedure for the analysis of dental gold alloys
(RP1103), which is also adaptable to the refining of gold and to
reclaiming gold and platinum metals from alloys of these metals.
Progress has been made in devising methods of separation from the
platinum metals of base metals other than those encountered in dental
gold alloys.
Four methods of gas analysis were developed or investigated: (1)
A new method for the analysis of the mixture ethylene oxide. + carbon
dioxide has been developed. The mixture is widely used as a fumi­
gant, and no satisfactory method of analysis has previously existed
(RP in preparation) ; (2) the determination of oxygen by chromous
solutions was reported (RP1112) ; (3) the solubility relationships
existing between nitrogen and various aqueous reagents were re­
ported (RP1113) ; and (4) the limiting accuracy of the determina­
tion of carbon monoxide by iodine pentoxide was measured.
Electroplating.—The magnetic method and instrument for measur­
ing the thickness of nickel coatings on nonmagnetic base metals have
been adapted (RP1081) to measurement of the thickness of coatings
on steel and cast iron. The coatings may consist of nonmagnetic
metals such as copper, zinc, or chromium ; magnetic metals such as
nickel; or nonmetallic materials such as paint and enamel. As the
method is nondestructive, it may be applied to all, or to a large

80

REPORT OP T H E SECRETARY OF COMMERCE

proportion, of manufactured products, and thereby assure conformity with appropriate specifications.
. Special investigations.—The most dependable type of pilot for use
m lighthouse and airway beacons was determined, and specifications
for a satisfactory aircraft welding torch were developed.
Work on airship fabrics included a critical study of' the proper­
ties of synthetic rubberlike materials, physical tests of fabrics for a
nonngid ship, and assistance in the revision of specifications for
coated fabrics.
The durabilities of filled and unfilled coating asphalts were deter­
mined in both outdoor and accelerated exposures. The data demon­
strate the similarity of effects obtained in the two types of exposure
and show that, in general, the resistance of coated asphalt to weathermg is improved by the addition of mineral filler, and that there is
a difference in the effectiveness of various sizes and types of fillers.
Standard samples.—During the year the Bureau prepared renewal
samples of Tennessee phosphate rock and acid potassium phthalate
and added eight new standard samples to its stock. These comprised
three samples of spelter, two of chromium-nickel stainless steels, one
high-silicon steel, one car-wheel cast iron, and one Florida pebble
phosphate rock. ^ Stocks are now on hand representing standard
samples of 112 different kinds. Approximately 8,500 individual sam­
ples were sold during the year.
MECHANICS AND SOUND

Cross connections in plumbing systems.—For several decades cross
connections in plumbing systems (connections between piping carry­
ing polluted water and the piping carrying water for human con­
sumption) and their menace to health, have been subjects of active
interest to engineering, public health, and trade organizations. The
most publicized epidemic attributed to cross connections was the out­
break of amoebic dysentery in a hotel during the World’s Fair in
Chicago in 1933. In spite of much study of the problem by numerous
agencies, no generally satisfactory conclusions as to the extent to
which cross connections may be a menace to health, or as to practical
regulatory measures for controlling this condition have vet been
reached.
No complete and satisfactory solution of the problem can be
expected from the work of a single agency or individual. Since
any legal regulations will affect many different groups—property
owners, public officials, architects, sanitary engineers, manufacturers,
contractors, workmen, and the general public—these groups should
have a voice in the formulation of the regulations. There is how­
ever, an underlying basis of technical fact, on which general agree­
ment should be possible. The Bureau has been engaged in a study
of the technical aspects of the subject and has published an extensive
progress report (BP1086).
Monocoque structures for aircraft.-—In cooperation with the Na­
tional Advisory Committee for Aeronautics and the Bureau of Aero­
nautics of the Navy Department, experimental studies have been
made of the strength and deformation of important elements of
monocoque or stiffened skin structures used in all modern aircraft

NATIONAL BUREAU OE STANDARDS

81

Reports have been completed on the column strength of a stiffener of
symmetrical section, giving sufficient information for the analysis
of panels stiffened with stringers of this type, and on the strength
and deformation of sheet-stringer panels of typical design loaded
in end compression. The results on the sheet-stringer panels were
compared in detail with a number of current theories. An extended
study of a typical monocoque box beam is scheduled during the
coming year.
Numerous other projects relating to monocoque structures are
under way, including tests of riveted joints in thin sheet material,
and tests on sheet stringer panels to determine the effect of spacing
of rivets and spot welds on the compressive strength.
Engineering mechanics.—Numerous tests were made for other rederal bureaus, including those made for the Bureau of Marine Inspec­
tion and Navigation in connection with the qualification of welding
operators, and tests of 10 full-sized riveted joints for naval vessels
made in cooperation with the Navy^ Department.
.
Engineering instruments and appliances.—The number of engineer­
ing instruments calibrated during the fiscal year was about 1,500.
Investigations and tests were made of a large number of appliances,
including : Fire-extinguishing equipment presented for the approval
of the Bureau of Marine Inspection and Navigation for use on vessels;
automatic mail-metering devices and stamp-vending machines for the
Post Office Department; elevator safety devices for the Federal and
State Governments; numbering machines, door closers, and certain
heating appliances for various Federal bureaus. _
Aerodynamic investigations.—Fundamental studies of air now have
been continued with the cooperation of the National Advisory Committee for Aeronautics.
..
Aircraft instruments.—Development of new instruments was continued for the Bureau of Aeronautics, Navy Department, including
superheat meters, a stick force indicator, and a distant indicating fuel
flow meter. Assistance was given in preparing specifications, m
developing test methods, and in making acceptance tests.
In cooperation with the National Advisory Committee for Aero­
nautics, investigations of the effect of vibration on aircraft instiuments
and of the performance of corrugated diaphragms have been con­
tinued. A report on gyroscopic instruments for instrument flying
was submitted for publication.
A coustics.—Measurements of sound absorption have been made on
57 laro-e and 80 small samples, and measurements of sound transmis­
sion have been made for 29 panels, indicating the continued interest
in noise reduction. Equipment for absolute sound measurements was
completed and several calibrations have been made of microphones
and sound meters.
„ .
Hydraulics.—Ten main investigations have been continued for the
United States Geological Survey, the Corps of Engineers of the
United States Army, the Office of Indian Affairs, the United states
Forest Service, the Procurement Division of the Treasury, and the
United States Weather Bureau. These include two model tests of
flood spillways for dams, pressure losses in pipe bends, aging of pipes,
density currents, flow in open channels, and theory of flood waves.

82

REPORT OP T H E SECRETARY OF COMMERCE

ORGANIC AND FIBROUS MATERIALS

Physical constants of rubber.-—Reports on the physical constants
oi rubber prepared for publication in a technical encyclopedia and
for presentation at the World Conference on Rubber Technolooy
included values for mechanical, thermal, optical, and electrical constants. These show many gaps in our present knowledge, and many
places where constants should be redetermined to bring them into line
with today’s requirements as to precision.
. An, investigation, by photoelastic methods, of the stresses around a
circular inclusion in rubber (RP1083) was designed as the fundamen­
tal basis for a study of the behavior of filler particles in rubber com­
pounds. Incidentally, it demonstrated the usefulness of the photoelastic method for studying the behavior of rubber under strain, and
also the value of rubber as a material for making models of engineermg structures.
&
Measurements were completed during the year on the heat capacity
and heat of combustion of isoprene (RP1093). From these the free
energy was computed, _which can now be used for further study
ox the reversible relationship between isoprene and rubber This
reaction is thought to be the basis for the formation of rubber in
nature.
Wear of carpets.—The machine for testing the resistance to wear of
carpets and rugs, developed by the Bureau, has been generally accepted
by manufacturers for mill control and research. Before it can be
made a basis for the purchase of carpets, the variables of the machine
test must be standardized and the wear of carpets on the machine must
be compared with their wear m service. This work has been started.
Iwenty-five different kinds of carpets have been laid in one strip in
a hall m the Federal Warehouse where, according to a photoelectric
counter, more than 2,000 persons walk over them daily. The carpets
are cleaned at 24-hour intervals, and the rate of wear determined from
thickness measurements made every few days. The results to date
indicate good agreement between the service and machine wear tests
A systematic study of machine variables has revealed that the
amount or suction applied by the vacuum cleaner which is used to
keep the carpets clean during the machine test, and the height of its
suction nozzle above the carpet, have an important bearing on the
results. Phis investigation has led to the adoption of optimum values
and tolerances for strength of suction and nozzle height. The data
also have a bearing on the effective vacuum cleaning of carpets.
Nine chenille carpets of different pile heights and densities have
been tested on the machine and the effects of these factors on rate of
wear have been measured. Similar tests are in progress on hardtwisted velvets, regular velvet, printed velvet, Axminster, and Wilton
carpets. In these carpets, which were specially woven for the tests
each construction factor has been varied systematically.
Examples^ of the year's work in other lines.—Oi the 48 items covered
by reports issued during the year, the following have been selected
as typical: Accelerated aging tests for organic materials; electrical
properties of rubber; methods for testing color fastness of dyed tex­
tiles ; evaluation of motion-picture film for permanent records (M158) •
method for determining the abrasive resistance of sole leather; hys­
teresis of calomel half cells (RP1018); permeability of synthetic resin
aircraft finishes to moisture.

NATIONAL, BUREAU OF STANDARDS

83

METALLURGY

Industrial uses for silver.-—In cooperation with the American Silver
Producers, new industrial uses for silver are being studied. Promis­
ing results obtained in preliminary surveys resulted in the establish­
ment of fellowships at a number of universities, the Bureau acting
as the supervisor and clearing house. On completing this initial study,
a research program embodying specific items was mapped out, and
a large part of the work is being conducted at the Bureau. Promising
items which are being studied are: Silver electrical contacts, as for
telephony; silver bearings; silver coatings for containers used in
chemical processes and for the preservation of food: and the improve­
ment of various industrial alloys by silver additions. The use of silver
in fungicides and bactericides also presents interesting possibilities
(TNB244, TNB249, and TNB254).
Non ferrous metals.—In cooperation with the Non-Ferrous Ingot
Metal Institute, the study of nonferrous alloys of the red brass type
has been continued, giving special attention to the effect of impurities
normally occurring. The object is to establish reasonable maximum
values in specifications. The incidental information obtained on the
foundry characteristics of the alloy is also of importance.
The Copper and Brass Research Association and the American
Standards Association have continued the study of soldered plumbing
fittings at the Bureau. The relation between service temperature and
maximum permissible shear stress on the soldered area for stability
under long-time tensile loading has been established up to 325 F.,
and the advantages and limitations of various kinds of solders deter­
mined. As part of a series of long-time weather-exposure tests of
wire and agricultural wire products sponsored by the American So­
ciety for Testing Materials, the initial characteristics of the wire and
the coatings were determined. Tests will be repeated periodically as
weathering of exposed samples proceeds. .
.
Ferrous metals.—Of outstanding interest is the culmination of sev­
eral years’ work on the production of pure iron. Spectrographic
examination of three of the finished ingots has shown traces of copper
of the order of 0.0005 percent. This is the only metallic impurity.
The fusion-in-vacuo method for determining oxygen in steel has been
extended to the field of alloy steels, where it has been found to yield
accurate results. Widespread interest in hydrogen in steel, and its
possible association with serious internal defects, known as flakes,
has prompted a critical study of methods for its determination. Cast
iron is ordinarily thought of as possessing no elasticity, but m some of
the new irons this is far from true. This subject, and the effects of
superheating and pouring temperature, are covered in a report which
will soon be published. In the physical metallurgy of steel, the deter­
mination of the effect of grain size is of great importance industrially.
The current study of the quality of tool steels covers one aspect of
the subject. A new investigation is under way to show whether
“critical point” reactions, the basis of heat treatment, are influenced
by inherent grain size.
.
Aircraft materials.—The needs of various Federal agencies inter­
ested in aircraft are reflected in the study of these materials. Nu­
merous examinations of suspected materials have been made,
considerable investigation often being entailed. Weathering tests of

84

REPORT OF T H E SECRETARY OF COMMERCE

aluminum and magnesium sheet alloys, exposed in marine and inland
locations, have now been in progress for 5 years, and have furnished
a dependable basis for the selection of these alloys. They have alsoshown that protective methods for the magnesium alloys are now
available which ensure permanence for several years even under
severe marine atmospheric exposure. Additional investigations, in
which stainless steel sheet has been included, involve repeated wet­
ting by sea water. The properties of welded steels at low tempera­
tures are being studied, as well as grain-refining treatments to im­
prove the normally low impact-resistance of steels under such condi­
tions. Attempts to reveal any deleterious effect on propeller mate­
rials, of continued fatigue-stressing (short of failure), have failed
to develop evidence of lowered mechanical properties. Aluminum
alloys owe their superior mechanical properties to heat treatment,
and if not properly carried out, the material may be susceptible to
intercrystalline corrosion, with accompanying reduced ductility. A
rapid method for detecting this condition shows considerable
promise.
Special properties of metals— Typical of the study of the ultimate
structure of metals is the investigation of the íífiber,, structure of
copper, swaged cold from single crystals. Data secured support the
little-known fact that orientation of the crystal fragments is directly
related to the initial crystalline orientation of the specimen. Study
of the fundamental factors in the creep of metals, a subject of vital
interest in boilers, turbines, etc., has been revived; tests are about to
begin with the newly constructed equipment. A monograph on
spring materials, the subject of extensive library research, will be
published in book form with the cooperation of the American Society
of Mechanical Engineers.
CLAY AND SILICATE PRODUCTS

Optical and other glasses.—The new type of pot developed last
year for the experimental melting of optical glass resulted in a 30percent increase in the amount of first-quality optical glass obtained.
Sixty-two melts of four different kinds of glass gave a total yield of
8,400 pounds, whereas last year 73 melts of the same kinds of Mass
yielded 7,530 pounds.
Studies of the relative solubility of glass indicate that this may
be determined by noting the amount of certain dyes absorbed on the
surface of the glass after it has been exposed to hot, dilute acid solu­
tions. 1his test is of practical interest because many solutions of
pharmaceuticals, chemicals, etc., deteriorate rapidly or are spoiled
by storing them in glass which is too soluble.
Out of 19 types of automobile safety glass tested, 11 were found
to comply with the requirements of a large number of States. Re­
ports were made to the interested regulatory authorities. Tests to
determine the characteristics of a satisfactory type of safety Mass
for aircraft are under way.
a
Electrically he.ated tunnel Jciln.—An electrically heated tunnel kiln
4? .ieet in length .and 6 feet high has been constructed, and its suit­
ability for experimental heating of whiteware bisque and glost at
various rates and temperatures has been demonstrated.

NATIONAL BUREAU OF STANDARDS

85

Ceramics.—An apparatus and test method for determining the
resistance of vitreous enameled articles to abrasion have been devel­
oped, and the abrasion resistance of typical enamels has been deter­
mined. Equipment has been designed and built for measuring- the
impact resistance of various sizes and shapes of vitreous enameled
articles in different controlled locations on their surfaces. A study
of the thermal expansion and refractoriness of typical enamels was
completed.
An investigation of low-cost glazes was undertaken to demonstrate
how these can be produced for brick, tile, and other clay products.
The principal ingredient of the glaze is the same clay as that of the
product to which it is applied. Eight clays from three different
States are being investigated. Glazes of good mat texture have been
produced from three of the clays containing approximately 25 per­
cent lime carbonate as the flux. Replacing about half the lime with
silica gives a gloss glaze.
The expansion, contraction, endothermic, and exothermic changes
were determined over the range 20° to 1,000° C. of eight flint clays,
representing deposits all over the United States, one plastic fire clay,
one each of Georgia hard and soft kaolins, one bauxitic kaolin, and
a diaspore. Significant differences in the magnitude of these prop­
erties were found, not only between the same type of material but
also between coarse particles and the same material finely pulverized
and repressed.
Among other ceramic studies in progress are special low-tempera­
ture maturing glazes; the system PbO-B2G3-SiOo; a cooperative
study of fire-clay ladle sleeves (RP1084); a study of pore structure
of building brick (TNB250) ; relation between water content and
yield point pressure of plastic clay; glassy phase in clay materials;
substitution of American for English china clays in whiteware
bodies; causes of failure of boiler furnace refractories.
Cement, lime, and gypsum.—An electrical differentiating unit was
developed for use with a vibrograph to measure vibration in fresh
concrete in terms of acceleration as well as of particle velocity and
amplitude (RP1101). Observed acceleration wave forms were found
in most cases to be very complex. Preliminary work has been directed
toward developing tests and equipment for evaluating the various
factors contributing to the disintegration of concrete by freezing and
thawing. Wear tests have been made of concrete floor mixes in which
the water content, richness in cement, methods of troweling, and
curing were varied. In some of the mixes metallic hardeners and
other dust coats were used. Studies were made of test mortars com­
pacted by vibration, using a specially designed machine in which
the vibration characteristics could be varied. Thirty-five commercial
Portland cements were subjected to a recently proposed autoclave
test. Concrete specimens made from these cements have been stored
out of doors. Length changes and weathering characteristics are
being compared with the autoclave results.
I t has been found that the glass content of cement clinker depends
on the composition of the clinker and on cooling conditions, rapidly
cooled clinker having the highest glass content. The glass content
of the clinker affects the properties of the cement; cements of high
glass content give somewhat higher heats of hydration at 7 and 28

86

REPORT OP THE SECRETARY OF COMMERCE

days and lower expansion when subjected to a high-pressure steam
test (RP1066). _ The_ solid solution of ferric oxide and other mineral
oxides in dicalcium silicate, one of the principal constituents of portland cement, is being investigated.
A study of the suitability of fiber insulating lath as a base for
plaster was completed. As a result' of experiments in which the
sand content, strength, thickness, and time of set of plasters were
varied independently, recommendations for plastering over insulating
lath were formulated (BMS3).
Heats of hydration and transition of the various forms of calcium
sulphite were determined from the heats of solution of gypsum, hemiliydrate, natural anhydrite, and anhydrous calcium sulphate pre­
pared at various temperatures (RP1107). From heats of solution in
hydrochloric acid of lime and magnesia prepared at various tempera­
tures and the heats of solution, of calcium and magnesium hydroxides,
the heats of hydration of lime and magnesia were determined. The
plasticity of hydrated limes was found not to depend solely on either
the particle size distribution or specific surface.
Branch laboratories.—Approximately the same amount of cement
as last year—nearly 6,000,000 barrels—was tested for the Federal
Government by the Bureau’s branch laboratories at Seattle, Wash.;
San Francisco and Riverside, Calif.; Denver, Colo.; and Allentown,
Pa. The volume of cement testing at the Seattle laboratory for the
Grand Coulee Dam is temporarily small, pending the starting of the
high dam. The demands on the San Francisco laboratory for testing
miscellaneous material purchased by Government agencies on the
Pacific coast have been very heavy.
Cement Reference Laboratory.—The Cement Reference Laboratory,
a cooperative project of the Bureau and the American Society for
Testing Materials, completed the fifth inspection tour of cementtesting laboratories. As compared with previous tours, more labora­
tories were visited, and a larger number of the inspection reports
were used by Government offices. A sample of cement for compara­
tive test purposes was sent to 173 widely distributed cement labora­
tories. The tests of special cements, undertaken in the preceding year
for the American Society for Testing Materials Committee C -l on
Cement, were completed.
Stone and masonry.—Further investigation of factors affecting rain
penetration in masonry walls has confirmed the indications of previ­
ous tests. Resistance to rain penetration in walls of brick masonry
depends largely upon the quality of workmanship and the absorptivity
of the bricks when laid. If the absorptivity is reduced by wetting
bricks before laying, the permeability of the walls is decreased
Permeability of walls retested after being exposed outdoors for 1
year has not increased; it decreased for those which had been repomted prior to exposure.
Measurements of the coefficient of thermal expansion of commercial
grades of clay bricks between -10° and +40° C. (14° and 104° F.)
yielded values between 3.0 and 8.5 millionths per degree centigrade •
about 80 percent were between 5.0 and 7.0 millionths per degree’centi­
grade. The coefficients were not closely related to other physical
properties.
J

NATIONAL BUREAU OE STANDARDS

87

Some disintegration lias taken place in the exposure panels of brick
masonry erected in 1936, though the amount of disintegration is less
than that for similar bricks partially embedded in the soil. A fair
correlation exists between the indications of laboratory freezing and
thawing tests and the effects of outdoor weathering. The severity
of freezing and thawing tests is increased if the bricks are completely
saturated at the time of freezing. . The results of the 5-day wick test
on individual bricks gave a good indication of their tendency to
become sources of efflorescence on the exposed masonry panels.^
The resistance of sand-lime bricks to freezing and thawing was
found to be closely related to their strength.
Durability of stone.—Information has been obtained which indi­
cates that the dense types of stone are not appreciably affected by
frost; hence, studies have been made of the effects of other weather­
ing agents on marble and granite. A test procedure with sulphur
dioxide gas has been developed which causes deterioration of marble.
Its characteristics are then very similar to those of marble found
on old buildings and monuments. I t has also been found that
granite undergoes some change when tested by soaking in water
followed by drying. Forty-four samples have been subjected to a
large number of cycles, in which a few developed visible cracks,
Avhile determinations of absorption and water transmission rates
have shown that nearly all samples suffered some deterioration.
SIM PLIFIED PRACTICE

Two things particularly characterize the Division’s work this
year: First, an increased percentage of established Simplified Prac­
tice Recommendations were reaffirmed rather than changed, denot­
ing the thoroughness which attended their original development,
and indicating a continuing satisfactory adherence to them by manu­
facturers, distributors, and consumers alike; and second, the pro­
nounced interest in the general subject of containers, especially from
the viewpoint of consumers.
Twenty-nine recommendations were surveyed and officially re­
affirmed. Two of these, R37, Invoice, Purchase Order, and Inquiry
Forms, and R50, Bank Checks, Notes, Drafts, etc., have enjoyed such
long periods of use and general acceptance that they have become
traditional.
Two new recommendations in the field of containers, were pro­
mulgated : R170, Spice Containers, and R171, Wooden Boxes for
Canned Fruits and Vegetables, and work on a number of others
was commenced. Also, a second revision of an existing recom­
mendation, R155, Cans for Fruits and Vegetables, was undertaken,
in cooperation with the industry, as a direct consequence of a hear­
ing before the Committee on Coinage, Weights, and Measures of
the House of Representatives, on H. R. 6964, a bill to fix certain
standards of dimension and capacity for metal containers for canned
fruits, vegetables, and milk. The Division is collecting data which
will facilitate further consideration of this proposal, to provide a
sound basis for specific conclusions in respect to the practical mini­
mum number of can sizes needed by the industry in packing food
products. Simplification of these containers should not only reduce

88

REPORT OF THE SECRETARY OF COMMERCE

their cost but should result in substantial savings in handling, stor­
ing, loading, and unloading.
Among the 14 new and revised Simplified Practice Recommenda­
tions made available during the year was the new R169-37, which
establishes a simplified schedule of stock-production sizes for ma­
chine, carriage, and lag bolts. According to an estimate by the
sponsor organization, the adoption of ¡this recommendation will
make possible a reduction in the variety of sizes, from 896 to 584,
or 35 percent. So widespread has been the approval of this project,
on the part of the industry, that more than 12,000 copies were sold
in a few weeks. Incidentally, this recommendation illustrates the
usefulness of simplified practice in a field where technical standard­
ization of a high order has been in effect for a long time.
TRADE STANDARDS

This Division serves consumer, industry, and business groups that
request aid in the establishment of quality standards (consumer
criteria) as a guide to commercial production, testing, grading,
labeling, marketing, certification, and acceptance of manufactured
commodities, other than foods and drugs. Many industries are un­
able, within themselves, to combat effectively the influence of in­
creasing competition and economic pressure toward lower quality
without regard for the needs of the consumer or the reputation of
the industry as a wdiole. As a result of such tendencies, consumers
are demanding assurance of quality in commodities and reliable
information relating to performance in actual use.
Seventy-three commercial standards have been issued to date.
Fifteen of these were promulgated during the year, covering wool
and part-wool fabrics, walnut veneers, wood-slat Venetian blinds,
old-growth Douglas-fir-stock doors, colors for kitchen and bath­
room accessories, marking of platinum, marking of karat gold, liquid
hypochlorite disinfectant, pine-oil disinfectant, coal-tar disinfectant,
cresylic disinfectants, and household insecticides (liquid spray type)
Revisions were issued for Stoddard solvent (CS3-38) and for
fuel oils (CS12-38). An amendment to book cloths (CS57-36) was
promulgated.
These standards increase the confidence of the consumer in the
products, result in better understanding between buyer and seller
and provide uniform basis for competition. They are made effective
by means of voluntary guaranties on invoices, labels, or marks on
the goods themselves, which are enforcible through the courts and
the Federal Trade Commission with the aid of better business
bureaus, testing laboratories, and central inspection agencies.
. During the year, 46 conferences were held with groups interested
in til© establishment of voluntary standards for a wide range of commodifies. Written acceptances of these commercial standards as the
standard practice in buying and selling the products covered were
received from responsible officers of 5,530 organizations.
The Commercial Standard entitled, “Marking Articles Made of
Karat Gold”_ (CS67-38), supplements the requirements of the Na­
tional Stamping Act. The objectives of the standard are as follows:
(1) To establish a minimum of 10 karat for gold articles bearino- a
quality mark; (2) to require that the quality mark shall be accom­

NATIONAL BUREAU OF STANDARDS

89

panied by a trade-mark registered under United States laws to fix
responsibility; (3) to prohibit loading or weighting of gold articles
bearing quality marks; (4) to prevent the misrepresentation of other
precious metals as gold; and (5) to eliminate the term solid gold
except as applied to fine gold.
,
The standard records definitions for the terms, gold,
karat
gold,” “fine gold,” and “solid gold” ; and includes a recommended
wording of a certificate or label to indicate that the article is marked
in strict conformity to the Commercial Standard.
CODES AND SPECIFICATIONS

Buildinq and safety codes.— In cooperation with the American
Standards Association, drafts of codes were prepared covering re­
quirements for code administration, lighting and ventilation ot
buildings, and construction requirements for structural steel, liie
building code program of the American Standards Association has
also been expanded through assumption of responsibility ±or sec:
tional committees dealing with the subjects of grandstands and of
exits for buildings, on each of which the Bureau holds membership.
The Bureau has also accepted direct sponsorship of a new sectional
committee dealing with permissible loads on floors.
A new edition of the Code for Protection Against Lightning was
issued as Handbook H21. A revision of the American Standard
Safety Code for the Protection of the Head, Eyes, and Respiratory
Organs was completed, and the text for a new handbook prepare .
The Bureau cooperated in the preparation of a new edition o± tiie
American Standard Safety Code for Elevators, Dumbwaiters, and
Escalators, and the companion volume, Inspectors Manual for the
Inspection of Elevators, both of which are published by the Ameri­
can Society of Mechanical Engineers. Work was started on emer­
gency rules for elevator operators, and was continued on a batety
Code for Cranes, Derricks, and Hoists, and a revised list of defini­
tions was circulated.
, ’ . .
. - j.,- „
Hankbook H22 was released in March. This is a revised edition
of the specifications, tolerances, and regulations for commercial
weighing and measuring devices, as adopted by the National Con­
ference on Weights and Measures, and recommended by the Bureau

i0Revision of the National Electrical Safety Code progressed satis­
factorily and one part has been completed and prepared for print­
ing Cooperation with the International Electrotechnical Commis­
sion was continued with respect to regulations for overhead lines.
Assistance has been given to State officials m connection with regu­
lations for electric line construction, electric fences, elevator codes,
and other subjects. Elevators in Government buildings m Washing­
ton have been inspected and tested from the point of view of safety
and to determine compliance with specifications. Committee work
has been carried on for the Federal Interdepartmental Safety
C°F™tlitating the use of specifications.—The total number of lists
of sources of supply of commodities covered by Federal specifications
and commercial standards was increased to 614, with requests for
108928— 38------ 9

90

REPORT OP THE SECRETARY OP COMMERCE

listings from 13,381 firms. Information relating to the certification
plan and willing-to-certify lists, and copies of Federal specifications
were sent in compliance with 1,851 requests from interested pur­
chasing agents, consumers, and manufacturers.
Services to tax-supported agencies and consumers.—The Division
has cooperated with members of the governmental purchasing group,
educational and institutional buyers group, and the educational com­
mittee of the National Association of Purchasing Agents in the prepa­
ration of commodity data sheets, material relating to standards and
specifications, and purchasing problems. Information dealing with
commodity standardization was sent to State purchasing officials, to
approximately 400 county and municipal purchasing agents, and to
about 200 educational institutions. More than 9,000 copies of the
pamphlet Services of the National Bureau of Standards to the Con­
sumer were sent, upon specific request, to colleges, universities, schools,
and individuals throughout the country.
In aiding consumers throughout the country, particularly over-thecounter buyers, impetus was given to the labeling plan for encouraging
manufacturers to identify commodities complying with the require­
ments of nationally recognized standards and specifications.
BUILDING MATERIALS AND STRUCTURES

Structural properties of constructions.—The structural properties of
about 40 constructions intended for low-cost housing have been deter­
mined in cooperation with organizations working in this field. Using
special equipment designed to expedite the work, the constructions
are subjected to loads simulating those occurring in a house, and the
deflection under load, the permanent set, and the maximum load are
being determined. The Forest Products Laboratory has cooperated
in the testing of various types of wood construction.
Rain penetration in masonry and waterproofing.—The effects of the
following factors on the resistance of masonry walls to rain pene­
tration were studied: Qualities of masonry units and mortars, methods
of filling joints, pargeting of facing or backing, and arrangement of
units. Of the 135 walls constructed, 40 have been tested. In order
to determine the effectiveness of waterproofings, some of the walls,
which have been found to be highly permeable, will be treated with
bituminous or mineral materials on the interior surfaces or will be
given exterior coatings, the behavior of which will then be studied.
As the permeability of masonry depends largely upon the quality of
the joints, the tests of walls were supplemented by a study of factors
affecting the strength of these.
Structural properties of masonry walls.—Six different masonry wall
constructions, three of brick, two of structural clay tile, and one of
concrete masonry units, were tested for resistance to compressive,
transverse, impact, racking (shearing), and concentrated (indenting)’
loads. The results not only provide information on the relations be­
tween properties of the materials and the load resistance of the walls,
but also, because of their known service record, they should afford a
basis for judging the stability of new constructions.
Caulking compounds.—Chemical and physical studies have been
made on 98 samples of proprietary compounds selected as representa­
tive of the types on the market. Results indicate that one of the

NATIONAL BUREAU OF STANDARDS

91

undesirable variations in these products is the subordination of per­
formance factors to workability. Although the present performance
tests are sufficiently reliable to eliminate materials of poor quality
they do not give enough information on the specific properties which
are necessary for good performance. Tests for shrinkage, bond, and
hardening rate are being developed. Efforts are being made to de­
vise a test for the hardening rate which will also afford information
on certain performance qualities such as filming and freedom from
staining or slumping. Another phase of this work is the study of
experimental mixtures in order to determine the desirable or undesir­
able effects of specific ingredients. About 100 trial mixtures have
been made, some of which have given excellent results.
Floor coverings.—An accelerated service test has been completed on
12 floor coverings, ranging from random length hardwood to printed
felt-base coverings, using 11 commercial varieties of adhesives. The
properties of the floor coverings have been determined by laboratory
tests which show the amount of expansion and contraction when sub­
jected to changes of humidity, and the amount of indentation and
recovery under load. The force necessary to separate the adhesive
from the floor covering and from the concrete subfloor has been meas­
ured. Other materials are now being tested. When completed, this
work should indicate the relative suitability and durability of different
types of floor covering for low-cost housing.
Building boards and papers.—The important physical properties of
18 kinds of boards and 14 kinds of building papers have been deter­
mined. The same materials are now being subjected to various kinds
of accelerated aging tests, at the completion of which their physical
properties will again be measured to show how much they may have
deteriorated. Thus it is hoped to learn not only the properties of
these boards and papers when new, but also how well they may be
expected to retain their properties under normal service conditions.
Roofing materials.—A report of studies covering the durability of
roofing materials in service, as carried out in Washington and its
environments, and in a survey throughout the Southeastern States,
is nearly ready for publication. Data on the uses, durability, and
trends in construction of roofing materials have been secured through
cooperation with Federal agencies interested in housing problems. Kesults of inspections of 3,500 Government buildings throughout the
country will form the basis of a report which should show the favored
materials for different climatic conditions.
Protection of steel against corrosion.—The increasing use of sheet
steel or of structural units constructed therefrom emphasizes the need
for adequate surface protection. In many cases, as in built-in parts,
the initial treatment must ensure permanence over a long period.
Three types of short-time tests, the weatherometer, the controlled con­
densation chamber, and the salt spray, are being used to study the
relative merits of different preliminary surface treatments arid of
various paint coatings. A method to improve the adherence of coat­
ings on galvanized metals is receiving special attention.
Fire-resistance tests.—A comprehensive series of fire tests of light
building partitions, comprising 143 wood or metal framed construc­
tions, was nearly completed. Fire resistance, as determined by the
time of failure under load or occurrence of flame or unduly high tem­
peratures on the side not exposed to fire, was found to be in the range

92

REPORT OP T H E SECRETARY OE COMMERCE

10 minutes to 2% hours, and to be more dependent on the kind of
materials in the body or facings and the mode of application than on
the thickness or weight of the construction.
The initial tests in a series of about 30 fire tests of clay hollow tile
partitions have been made.
A program of fire tests of roofings, covering the full range from
combustible to incombustible materials, was completed. The tests
indicated the_ susceptibility of these materials to ignition from flying
brands, the time taken for flame to spread over the surface, the lia­
bility of producing burning brands, and the protection afforded a
supporting avoocI construction.
Study of humidity in occupied dwelling houses.—With the co­
operation of about 30 colleges, temperature and humidity measure­
ments were made in 235 dAvelling houses during a portion of the winter
season. Analysis of these data is nearly completed. I t was found in
general that inside water vapor pressures were about twice as great
within the houses as outside, even in houses where no means for
artificial humidification was provided.
Heat transfer.—Modern houses, even of low cost, must be safe, dur­
able, and comfortable if people are to be induced to live in them.
Insulation against both heat and cold has much to do with comfort.
A great variety of insulating materials has come on the market in the
last few years, the cheapness of which permits their use in loAv-cost
houses. The insulating value, costs, and relative merits of these ma­
terials are being determined, and certain engineering questions con­
cerning their use under different conditions are being answered.
Studies are in progress on heating devices and temperature control
with a view to establishing acceptable standards of performance so
that the purchaser may judge what he is getting for his money. This
applies not only to furnaces and boilers but to radiators, convectors,
and other means of distributing the heat.
Summer comfort is coming to be more and more in demand. Aside
from the use of refrigerating systems, which can not as yet be rated
as an element in low-cost housing, there are important means of im­
proving present conditions. Better insulation of Avails and ceilings
is useful, but in addition to this, systems of practical ventilation, either
natural or forced, properly timed to cool the house with the colder
night air, may make many degrees difference in the indoors tempera­
ture in the heat of the day.
Direct radiation from the sun is another source of heat in the house.
Means of reducing this effect in summer are being given careful study.
Commercial standards.—A commercial standard for Douglas fir
stock doors (CS73-38) has been developed in cooperation with the
industry. Proposed commercial standards have been drafted, after
careful investigation, for double hung wood windows and hardAvood
wall panels. Tentative drafts of standards for flush doors, hardwood
interior trim, the water resistance of plywood, and fiber sheathing
board Avere prepared, folloAving the usual conferences.
New series of publications.—The first of a new series of publications,
entitled “Building Materials and Structures,” describing the general
objectives, procedure, and scope of the program relating to loAv-cost
housing was distributed to a mailing list of interested agencies, firms
and individuals (BMS1.)
’

93

NATIONAL BUREAU OE STANDARDS

GENERAL FINANCIAL STATEMENT

The amounts and objects of each appropriation for the past fiscal
year, together with disbursements, liabilities, and balance for each
appropriation, are shown in the following table:
Disbursements, liabilities, etc., 1938, 1937, and 1936 appropriations
Appropriations

Total appro­
priations 12

Disburse­
ments

$263,949.35
Operation and administration 2.................................... $272,016.50
Testing, inspection, and information service 3---------- 1,143,483.00 1,071, 762.86
683,128.45
712,206.04
Research and development 4........ ------- ---------- ------106,128. 24
111,750.97
Standards for commerce 3...............................................
150,810. 98
198,015.44
Investigation of building materials 8---------------------Appropriations transferred from other departments:
123,051.07
124,282.65
Aviation, Navy 7....... - ..................
------------Construction and repair, Bureau of Construction
6,047.46
6,052.00
and Repair.................................T—--- -- ...............
19,799.99
23,770.10
Engineering, Bureau of Engineering 3--------------1,786.60
2,000.00
Naval Supply Account F und---------------------- -Salaries and expenses, Bureau of Engraving and
10
, 754.93
11,300.00
Printing....................... ............ ---------------------1,947. 50
2,000.00
Distinctive paper for U. S. securities---------------65,465.34
66,871.00
Advisory Committee for Aeronautics— ....... ......
2,989. 96
5, 500.00
Aircraft in commerce-----------------------------------4,427.91
8,055.00
Safety and planning------------------ ------------------7,561.27
8, 500.00
Establishment of air navigation facilities----------9,931.01
10,000.00
Incidental expenses of Arm y--------------------------2,275.48
3,000.00
Salaries and expenses, Weather Bureau—....... ......
17,
669.33
18,833.00
Air Corps, Army....................... - ...............r--------875.00
1,000.00
Naval Research Laboratory---------------------870. 46
1,000.00
Salaries and expenses, Soil Conservation Service897.38
1,000.00
Conservation and use of agricultural land reserves.
Appropriations transferred from other departments
under the provision of the Legislative Act approved
June 30,1932:
Navy, Armor, Armament, and
22,395.08
27,000.00
Ammunition------------------------20,821.53
21,000.00
5,947.88
6,000.00
1,828.80
2,000.00
Navy—Oidnance--------------------Total, 1938. Treasury—Internal Revenue------- 2,786, 635.70 2, 603,123.86
Total, 1937. Aviation—N avy................—-........ 2,589,122.27 2, 555,947.20
2,497,387. 57 2,455,436.22
Total, 1936.

I

Liabilities

Balance

$6,042.15
45,756.00
18,078. 59
2, 508.32
4, 634.46

«$2,025.00
*25,964.14
<=10, 999.00
¿3,114.41
«42,570.00

805.69

425.89

3,653. 73

4. 54
316.38
213.40

148.30
11.80
1,323.61
1, 754. 95
3,411.92
691.37
25. 76
692.84
1,050.31
51.44
118.66
90. 60

396.77
40.70
82.05
755.09
•215.17
247. 36
43. 23
31. 68
113.36
73. 56
10.88
12.02

179.85
125.82
135.35

4,425. 07
52. 65
52.12
35.85

91,291. 52
4, 719. 39
155.00

92, 220.32
28,455. 68
41, 796.36

1 Includes transfers from other departments and also reimbursements received and pending as shown under
the following footnotes:
2 $16.50.
3 $306,483.
« Administrative reserve included--------------- ----------- - ------ ------------------------ f i ’ fnn
<$11,206.04.
* Administrative reserve included— ...................................... - ........... -.................. ™
3 $1,750.97.
« Administrative reserve included-............ ................................................................
8 $15.44.
d Administrative reserve included— ....... ...........................-............-............. ........ .yiS x
7 $339.65.
• Administrative reserve included---------- --------------....................................... ...... aAuuu
8 $ 20 . 10.

73,640

BUREAU OF FISHERIES
Based on available statistics for 1936, there was a large increase
in the catch of fishery products in the United States and Alaska as
compared with the preceding year. Statistics of the catch were col­
lected for both 1935 and 1936 in the Chesapeake, Pacific, and Lake
States and in Alaska, and when considering the combined catch of
these sections alone, an increase of 22 percent in the volume and
19 percent in the value of the catch is indicated. While these in­
creases are reflected in each of the four geographical sections and in
many species, they are especially important in increased catches of
pilchard in California and salmon in Alaska.
Based on the most recent surveys, our commercial fisheries gave
employment to about 129,000 fishermen, whose catch amounted to
4,840,299,000 pounds, valued at $92,823,000. The output of canned
fishery products in 1936 amounted to 794,707,000 pounds, valued at
$94,564,000, representing an increase of 18 percent in volume and
26 percent in value as compared with 1935; the output of fishery
byproducts was valued at $34,976,000, representing an increase of
17 percent; and the production of frozen fishery byproducts, exclud­
ing packaged fishery products, amounted to 106,680,000 pounds, esti­
mated to be valued at $8,700,000.
The production of fresh and frozen packaged fish, as based on the
most recent surveys, amounted to 202,396,000 pounds, valued at $26,895,000; and cured fish 116,311,000 pounds, valued at $15,616,000. I t
is estimated that about 680,000,000 pounds of fresh fishery products
(excluding fresh-packaged fish and shellfish), valued at about $55,000,000, were marketed during 1936. The total marketed value to
domestic primary handlers of all fishery products in 1936 is estimated
at about $236,000,000.
Imports of fishery products for consumption during the calendar
year 1936 were valued at $41,873,000, which is 16 percent more than
in 1935, while exports were valued at $13,214,000, or 8 percent less
than in the previous year.
INTERNATIONAL RELATIONS
H A L IB U T IN V ESTIG A TIO N S

The International Fisheries Commission continued the investiga­
tion of the life history of the Pacific halibut, and the investigation
and regulation of the Pacific halibut fishery, under authority of the
treaty of May 9, 1930, and the supplanting treaty of January 29,
1937. The new treaty, which invested the Commission with new
powers and responsibilities, did not become effective until August.
Under authority of the 1937 treaty, new regulations were issued
August 11, 1937. These differed from the previous ones in several
95

96

REPORT OE T H E SECRETARY OF COMMERCE

respects. They provided for the prohibition of clearance for area 3,
when the boats already cleared for fishing were sufficient to catch
the limit allowed, and for the setting of a subsequent date of last
fishing. They also provided for the retention and sale of A limited
proportion of halibut caught incidentally to fishing for other species
with set lines in areas closed to halibut fishing. Other changes af­
fected the dates of beginning and termination of the winter closed
season.
The Commission recorded the catch from each area, forecast and
announced the date of attainment of each area limit and closed the
areas accordingly. I t issued new regulations on February 26, 1938,
changing the regulations of August 1937 by increasing the catch
limits in areas 2 and 3 one million pounds each and prohibiting the
use of set nets for the capture of halibut.
The investigations necessary for the fulfillment of the purposes
of the treaty included the collection and analysis of the current sta­
tistical and biological data, which are necessary for the evaluation
of the success of regulation and for continued intelligent control of
the fishery.
Further improvement in the condition of the stocks of halibut
was revealed by the investigations. In area 3, which includes the
grounds north and west of Cape Spencer, Alaska, the catch per unit
of effort was 19 percent greater than in the previous year and 73
percent greater than in 1930, the year when the abundance of halibut
reached its lowest ebb. The catch per unit in area 2, which includes
the grounds between Cape Spencer and Willapa Harbor, Wash., was
slightly greater than in 1936, and 74 percent greater than in 1930.
Extensive market measurements showed that the reduction in the
rate of capture of the fish resulting from regulation had produced
a further small increase in the size of the fish landed, which, in con­
junction with the general increase in abundance, indicated an in­
crease in the spawning stock on the grounds from the previous year.
Analysis of the catches of spawn taken in area 2, by means of quan­
titative net hauls made from a chartered vessel in the winter of
1936-37, showed an increase over the previous three winters. The
net hauls were repeated in the winter of 1937-38 and the results are
in process of analysis.
Four publications were issued during the year, one report and
three circulars. The report, “Theory of the effect of fishing on the
stock of halibut,” dealt with the theory that explains the past decline
of the fishery and its gradual recovery as a result of present regulation.
The circulars “Why are there separate areas?”, “Halibut tagging
experiments,” and “The early life history of the halibut,” explain in
simple form the results of the investigations of the Commission and
their bearing on the regulation of the fishery.
The investigations of the Commission continued to explain the
changes taking place in the stocks of halibut on the banks. They
prove that the condition of the stocks is still improving, as a result of
regulation, and offer new assurance of the ultimate success of the
Commission in rebuilding the stocks of halibut to a higher level of
productiveness.

BUREAU OE FISH E R IES

97

JA P A N E S E ACTIV ITIES I N T H E BRISTOL BAY F IS H E R IE S

Special attention was given during the past year to Japanese fishing
operations in Bristol Bay. A number of floating crab canneries and
reduction plants have been operated annually m this area by the
Japanese since 1930. Their recent activities in the salmon fishery,
however, aroused widespread alarm among the Bristol Bay packers
and American fishermen. Grave concern was felt lest the interception
of the salmon runs bound for Alaskan streams should jeopardize and
eventually destroy the long-established Bristol Bay salmon industry.
Following an extensive investigation, this problem was made the
subject of diplomatic negotiations between the State Department and
the Japanese Government. As a result, assurances were obtained from
Japan that it would suspend its official survey of the salmon fishery m
Bristol Bay and would issue no licenses to vessels to take salmon in
those waters. Continued attention and careful consideration will be
given this development to assure the perpetuation of this important
American fishery. Funds have been appropriated by Congress for an
extensive survey of the Bristol Bay salmon resources, and plans have
been made to start the work in the 1938 season.
IN T E R N A T IO N A L P A C IF IC SALM ON F IS H E R IE S COM M ISSIO N

The American members of the International Pacific Salmon
Fisheries Commission were appointed by President Koosevelt on
August 24, 1937, pursuant to ratification on July 28, 1937, of a con­
vention between the United States and Canada for the protection,
preservation, and extension of the sockeye salmon fishery of the I raser
River system, tributary of the Puget Sound area of Washington and
British Columbia. The American members of the Commission are:
Charles E. Jackson, United States Deputy Commissioner of Fisheries ;
B. M. Brennan, Director of Fisheries of the State of Washington; and
e " W. Allen, of Seattle, who is also a member of the International
Halibut Commission. The Canadian members who have been ap­
pointed are: W. A. Found, Deputy Minister of Fisheries; Tom Reid,
Member of Parliament from British Columbia; and A. L. Hager, of
Vancouver, B. C.
.
_^
„
,
.
A. L. Hager was elected chairman and B. M. Brennan secretary at
the first meeting of the Commission, held in Vancouver, B. C., on
October 28 and 29,1937. I t was agreed that the positions of chairman
and secretary of the Commission would alternate between the united
States and Canada every 2 years. Dr. W. F. Thompson, Director of
Investigations for the International Fisheries Commission, was loaned
to the Internationa] Pacific Salmon Fisheries Commission on a parttime basis to initiate the biological investigations. _
Studies by the United States Bureau of Fisheries on the condition
and trend of the fisheries were discontinued in February 1938, since
the work will hereafter be carried on under the International Pacific
Salmon Fisheries Commission.
CONSERVATION OF W H A L E S

An international conference held in London on June 8,1937, resulted
in the signing of an agreement with respect to whaling. Phis agree­

98

REPORT OE T H E SECRETARY OE COMMERCE

ment supplements the International Whaling Convention of Septem­
ber 24,1931, and provides greater protection for whales. On June 14,
1938, a further conference was called for the purpose of studying the
results of the 1937—38 whaling season, and to consider modification or
extension of the 1937 agreement. The conference concluded its busi­
ness on June 24 by signing an agreement affording still further pro­
tection to whales. The Senate has not consented as yet to the ratifica­
tion of the agreement.
A report on whaling statistics, made by the Bureau of Fisheries in
accordance with the requirement of the Convention, was published in
the consolidated whaling report of the world, International Whaling
Statistics X I, issued at Oslo, Norway, June 2,1938.
N O R T H A M ER IC A N CO U N C IL O N F IS H E R Y IN V ESTIG A TIO N S

The twenty-fourth meeting of this Council was held at Montreal,
Canada, on September 23, 24, and 25, 1937, with representatives from
Canada, Newfoundland, and the United States present. Reports
were presented by investigators of the various countries setting forth
progress made in the long-time investigations of cod, mackerel, and
haddock. New research projects sponsored by the Council and re­
ported on for the first time included a study of the migrations of
Atlantic salmon, conducted on a cooperative basis by Newfoundland
and Canada, and an extensive program of lobster studies in Canadian
waters.
. The question of an international treaty for the control of mesh
size in nets used by Canadian and United States vessels engaged in
the haddock fishery has been under discussion by the Council for
several years. Although the voluntary adoption of larger meshed
gear by the majority of the New England operators during 1937 has
relieved the situation to some extent, the Council continues to recom­
mend coordinated international action.
A discussion of hydrology in relation to fisheries investigations
emphasized the fact that this subject may prove to be quite separate
from the general problem of oceanic circulation with which the phys­
ical oceanographer is principally concerned. The Council directed
attention to the fact that routine temperature observations have seldum been available from the fishing banks and recommended that
the United States, Canada, and Newfoundland devise means of col­
lecting temperature data on the fishing grounds and also consider
the advisability of reporting to the fishing fleet from time to time
concerning general temperature trends in important areas.
GREAT L A K E S F IS H E R IE S CON FERENCE

Progress has been made toward the negotiation of a treaty for the
control of the seriously depleted fisheries of the Great Lakes. After
nearly 50 years of conferences among the various States attempting
to secure uniform regulation by independent State action, a confer^
ence was held during February 1938 by members of commissions on
interstate cooperation under the auspices of the Council of State Gov­
ernments. This conference resulted in a definite request directed to
the Congress and to the State Department for negotiation of such
a treaty. The initial step would provide for the appointment of a

BUREAU OF FISH E R IES

99

fact-finding commission which doubtless will be instrumental in the
drafting of final regulations for the fisheries. At the same meeting
progress was made toward the adoption of uniform regulations among
the four States bordering on Lake Michigan. Congress subsequently
passed legislation which authorized an interstate compact among the
Great Lakes States for the preservation of their fisheries.
FISH ER Y ADVISORY COMMITTEE

The Fishery Advisory Committee, composed of leaders in the fish­
ing industry, organized for the purpose of advising the Secretary of
Commerce and the Commissioner of Fisheries concerning the devel­
opment, promotion, and regulation of the fisheries, continued the
study of fishery problems throughout the year.
The lack of current information on market conditions has long been
apparent, and the actual establishment of a Market News Service by
the Bureau of Fisheries owes much to the recommendations and
interest of the committee which foresaw the advantages of this service
in the development of a more orderly marketing program for sea
foods.
One of the major objectives of the Bureau of Fisheries’ investiga­
tions is to discover the earliest signs of depletion of a commercial
species, since thousands of people are dependent, either directly or
indirectly, upon the fishing industry for a livelihood. The problems
confronting this group are national and international in scope; many
are not easily solved. An outstanding study concerns the difficult
problem of the wise exploitation of the pilchard or sardine fishery of
til© Pacific coast
The committee has been formulating a long-range program with a
view to increasing the year-round consumption of fishery products.
A national fish week has been inaugurated and the committee has
planned to hold one meeting in a city outside of Washington, D. C.,
each year. These conferences are resulting in the establishment of
closer relations between the industry and Federal agencies concerned,
and are affording a better understanding of the problems which the
industry is attempting to meet.
DOMESTIC RELATIONS
COOPERATION W IT H O TH ER FEDERAL A G EN CIES

Some half-dozen Federal agencies are concerned with the manage­
ment of land and water areas where fisheries conservation may be a
problem. Outstanding among these are the National Park Service,
Forest Service, Tennessee Valley Authority, Farm Security Adminis­
tration, Bureau of Reclamation, and the Indian Service. The Bureau
li&s worked with e&cli of these in the solution of their problems.
The Forest Service has constructed during the year more than onehalf dozen rearing units which the Bureau operates for the protection
of fish to stock park waters. More are under construction and being
planned. The existing T. V. A. hatchery at Norris, Tenn., is of insuffi­
cient capacity and work has just been started on a large new unit on
the Elk River in Alabama. This will be operated by the Bureau and
the affiliations with this agency have been most beneficial. The Farm

100

REPORT OF T H E SECRETARY OF COMMERCE

Security Administration has made preliminary arrangements for
transfer to the Bureau of the large hatchery unit at Welaka, Fla.
The Bureau has in return supplied fish from its various hatcheries for
stocking the waters of recreational projects. Close contact has been
maintained in the development of a bass hatchery at Arcadia, R. I.,
and a program of joint development has been worked out. A hatchery
at Hoffman, N. &, was taken over by the Bureau under a similar
arrangement.
_The Bureau has been the recipient of aid from other Federal agen­
cies. Civilian Conservation Corps enrollees have contributed work at
various hatcheries. The Works Progress Administration can, in a
number, of instances, be credited with improving the physical condi­
tion of the Bureau’s properties and providing additional facilities
for fish production.
During the past year, the Bureau’s technologists gave courses in
canning fishery products to State extension service workers at the re­
quest of the United States Department of Agriculture. They also
rendered considerable assistance to the Bureau of Home Economics
of the United States Department of Agriculture in assembling data
on the chemical composition and food value of the leading commercial
species of fish and shellfish. These data are to be incorporated by the
Bureau of Home Economics in a revised publication on the composi­
tion of principal American food materials. Chemists of the Food and
Drug Administration, United States Department of Agriculture, con­
ferred at length with the Bureau’s technologists for the purpose of
obtaining information on methods of determining fatty acid in fish
meal and the effect of the presence of relatively large amounts of fatty
acid in fish meal on its feeding value. The Bureau also cooperated
with the Federal Surplus Commodities Corporation in connection with
its purchase of surplus fish for relief agencies and with the distribu­
tion of this fish to relief clients. The International Fisheries Com­
mission at Seattle, Wash., cooperated in the conduct of several phases
•of the Bureau’s economic and technological work. This included cer­
tain technical studies on halibut and halibut liver oil and the collec­
tion of economic and statistical data on the North Pacific halibut
fishery.
The Division of Fishery Industries assisted the Rural Electrification
Administration in studies of the commercial fisheries in certain areas
of Virginia and North Carolina, and assisted the Bureau of Chemistry
and Soils of the United States Department of Agriculture in as­
sembling historical data relating to the domestic manufacture of fish
scrap and meal.
The Bureau also has worked with various Federal agencies in ob­
taining statistical data on our fisheries. In a cooperative arrange­
ment, the Bureau of'Agricultural Economics, Department of Agricul­
ture, furnished statistics on the volume of cold-storage holdings of
fish and quantities frozen, and the health authorities in "Washington
D. C., assisted in obtaining data on the volume of fish handled at the’
municipal fish wharf and market in this city. Cooperation was ac­
corded the Bureau of the Census in obtaining for that Bureau figures
on the volume of the quarterly production and holdings of fish oils
in the United States.

BUREAU OF FISH E R IES

101

COOPERATION W IT H STATES AND O TH ER AGENCIES

An important part of the duties of the field employees of the Divi­
sion of Fish Culture has been to maintain close cooperation with btate
fish and game departments for the purpose of coordinating the fish
propagation and distribution activities. Similar contacts were ma
tained with semipublic sportsmen’s organizations.
,
Many State fish and game departments continued to check and
review Federal fish applications for their waters. Others exchange
eggs and fish with the Bureau or operate hatcheries on a jo m t basi«^.
In a number of instances the distribution of fish produced at I ederal
hatcheries is handled by the State organizations. t
New developments along the foregoing lines included the assign­
ment of a skilled Bureau employee to take charge of a new bass hatch­
ery constructed by the West Virginia Conservation Department at,
Palestine, W. Va. Part of the fish produced will be used for filling
Federal applications in that State. When the Missouri Conservation
Department was unable to continue operation of the Forest Park
Hatchery in St. Louis, the Bureau assumed the obligation and placed
an employee in charge.
,
, , ,
A tripartite agreement for operations at the brook trout hatchery
at York Pond, N. H., was continued in effect with New Hampshire and
Vermont. Shad propagation was undertaken in Georgia, the State
cooperating financially.
, ,
Sportsmen’s organizations have looked to the Bureau lor guidance
in their stocking problems in an increasing degree. The opening qf
a trout-rearing and bass-propagating unit at Carpenters Brook, m
Onondaga County, N. Y., was the culmination of protracted efforts
on the part of the county authorities, the organized sportsmen, and
the Bureau. With a Federal employee stationed there, the stocking
requirements of this community will be adequately cared for. W. P. A.
labor and funds were utilized for construction.
The National Planning Council of Commercial and Game hish
Commissioners, organized at St. Louis, Mo., in 1933, continued its
cooperative work with the States. _
.
_ „
The annual council meeting which was held during the week ox
June 20 at Asheville, N. C., was combined with the International
Association of Game Fish and Conservation Commissioners and the
American Fishery Society, with representatives from 46 States
P1 Among the activities of the National Planning Council of special
interest and importance, from the standpoint of State cooperation,
has been, the benefits to the Bureau resulting from the elimination and
overlapping in fish distribution work.
Subjects of national importance before the organization at the
present time are * Fish management, fish culture, shad conservation,
pollution problems, Great Lakes fisheries, and the technical problems
' of fishery research.
In its technological work, the Bureau has carried on cooperative
investigations with several colleges and universities and other State
institutions. In these cooperative projects the scientific staffs and
other facilities of these agencies were available to the Bureau’s staff.
Among the institutions cooperating in these investigations are: Wash­

102

REPORT OE T H E SECRETARY OE COMMERCE

ington State College, Pullman, Wash.; University of Washington,
Seattle, Wash.; University of Maryland and Maryland State Agri­
cultural Experiment Station, College Park, Md.; and the Minnesota
and Virginia State Departments of Markets.
CON STRUCTION A C TIV ITIES

The major construction activities during the year were concen­
trated upon five new hatcheries. In the Columbia National Forest,
near Carson, Wash., a salmon and trout hatchery started during the
fiscal year 1931 was completed as far as available appropriations
would permit. A hatchery service building, two dwellings, the water
system, and several rearing ponds were completed. This new project
was necessitated by the partial overflow of the older Little White
Salmon hatchery from the waters of the Bonneville Dam pool.
Work was also started on four new pondfish hatcheries located
at Lyman, Miss., Marianna, Fla., Cohutta, Ga., and Las Yegas, Nev.
These were established in conformity with the act of May 21, 1930,
Congress having provided for a resumption of new hatchery devel­
opment. The Mississippi hatchery was placed on an operating basis
during the year, although the proposed pond system was not entirely
completed. In Florida about 50 percent of the ponds were com­
pleted, and dwellings, service buildings, water supply facilities, etc.,
were well along toward completion at the end of the year. This
hatchery is located in a State park, the site having been donated.
Due to delay in acquiring the site, the Georgia hatchery was less
completely developed both as to ponds and buildings at the close
of the year. The appropriation of additional funds permitted the
construction to continue into the fiscal year 1939.
A t Las Vegas, Nev., the Bureau took over a hatchery which had
been started by the city of Las Vegas. The principal work required
was the construction of a dwelling, shop, and garage, and extension
of the pond system. The greater part of this had been accomplished
by the close of the year. Output of this hatchery will be laro-ely
used in restocking Lake Mead.
A site suitable for a bass hatchery in Rhode Island was finally
acquired from the Farm Security Administration. A little work
was performed in clearing pond sites, but this was suspended for the
purpose of developing a project of major construction by utilization
of relief labor. W. P. A. aid was enlisted in providing for major
improvements at three existing hatcheries. At Eden tom N. C., the
work comprised a 100-percent increase in the bass-pond acreage and
construction of two experimental rearing ponds for shad. At Hartsville, Mass., and White Sulphur Springs, W. Va., a complete reha­
bilitation of ponds, buildings, and grounds was undertaken. In addi­
tion, W. P. A. projects were set up to provide for minor specific
repairs and improvements at a number of other hatcheries, notably
at San Angelo, Tex., Rochester, Ind., Dexter, N. Mex., and Crawford,
Nebr. By the same means, pond construction was continued in the
Upper Mississippi Wild Life and Fish Refuge at Genoa, Wis.
A fine stone hatchery building was practically completed at Lamar
Pa., financed by Bureau funds and C. C. C. labor. A series of bass
ponds was also started at this point. At York Pond, N. H. a com­

BUREAU OF FISH ERIES

103

bination of C. C. C. and W. P. A. labor made possible the continua­
tion of the long-range developmental program.
With the installation of hatching troughs and completion of the
dwellings by the United States Forest Service, the Walhalla, S. U,
hatchery reached its final stage of development.
ALASKA FISH ER IES SERVICE
A D M IN ISTR A TIO N OF F IS H E R Y LAW S AND REGULATIONS

The excellent condition of the fisheries of Alaska in 1937 reflects
the wisdom of conservation policies which have been m effect since
1924. The salmon industry, which is the backbone of Alaska s eco­
nomic structure, produced the third largest pack on record, and ot ler
minor fisheries also continued on a high level of development. Com­
mercial fishing operations in 1937 were closely checked m all areas,
and regulations were amended where necessary to assure an adequate
escapement of brood fish. The Deputy Commissioner of Fisheries
and other officials spent several weeks in Alaska inspecting the fish
eries and the Pribilof Islands fur-seal industry.
Revised fishery regulations for 1938, issued on February . ^ con­
tained only minor changes from the regulations in force m
.
The restrictions on herring fishing in southeast Alaska were relaxe
to some extent, while additional restrictions were placed on herring
fishing6 in the ’Kodiak and Prince William Sound areas. In a few
instances areas open to trap fishing were redefined m order tc»rehev
the drain on certain runs and more nearly, equalize the intensity of
fishing operations. Clam-fishery regulations were modified to per­
mit a slight increase in the take of razor clams m the Prince Wil­
liam Sound, Copper River, and Bering River areas.
A patrol of the fishing grounds was maintained by 14 Bureau ves­
sels, 1 chartered vessel, and numerous small craft Twelve statutory
employees and 165 temporary stream guards and special workmen,
in addition to the crews of the patrol vessels were engaged in en­
forcing the fisheries laws and regulations m Alaska. As in previous
years, some use was made of airplanes to supplement the vesse
patrol and to transport Bureau employees to isolated districts.
No collection of salmon eggs for artificial propagation has been
made in Alaska during the past 2 years. The conditions for natural
propagation of salmon, however, have been improved by the removal
of loo-lams and other obstructions that hindered the passage of salmon
upstream, and by the destruction of predatory enemies of salmon
Funds were made available by the Territorial legislature and by local
packers for the payment of a bounty on predatory trout taken m the
Bristol Bay and Cook Inlet areas m 1937. In this connection a so
the Bureau began a scientific study of the migratory habits of Dolly
Varden trout in order to provide a rational control program.
Biological studies of salmon and herring were continued and weirs
were operated in 12 representative salmon streams to count the escape­
ment of brood fish. The information obtained by weir counts is neces­
sary in determining conservation measures and is also of great value
in connection with the life-history studies of salmon.

104

REPORT OF TRIE SECRETARY OF COMMERCE
PRODUCTS OF T H E F IS H E R IE S

The total output of Alaska fishery products in 1937 wasi 452,544,700
pounds, as compared with 523,652,500 pounds in 1936. Notwithstand­
ing this decrease in volume, the value of fisheries products in 1937 was.
$51,743,200, an increase of $1,287,950 over the preceding year. Pro­
duction of canned salmon in 1937 was the third largest ever recorded
having been exceeded only in 1934 and 1936, and the output of herring
products set a new high record for the Territory. There were 30,331
persons engaged in the fishing industry of Alaska in 1937.
Salmon products accounted for 75 percent of the total weight and
90 percent of the total value of Alaska fisheries products in 1937.
Ninety-four percent of the salmon production consisted of canned
salmon, the pack amounting to 6,669,665 cases, valued at $44,547,769.
Ihis compares favorably in point of value with the record pack of
the previous year, which amounted to 8,437,603 cases, valued at $44,751,633. Red salmon comprised 32 percent and pinks 54 percent of
the total pack in 1937, as compared with 30 and 54 percent respec­
tively, in 1936. One hundred and thirteen canneries were operated
or tour less than m the preceding year, and the number of persons
employed declined from 25,221 to 24,865 in the same period.
Twenty herring plants were operated in 1937, a decrease of 7 from
the preceding year, but the total production of herring meal and oil
was the largest m the industry’s history. Saltery operations, how­
ever were sharply curtailed, chiefly as a result of unfavorable market
conditions. There was a slight decrease in the volume of halibut
landings, and the output of cod and shrimp products also declined
but production m other minor fisheries of the Territory, including
crabs, clams, and sablefish, showed substantial increases. The two
whaling plants which operated in 1937 also reported a slight increase
in production over 1936.
ALASKA FUR-SEAL SERVICE
GENERAL A CTIVITIES

. Sealing and foxing operations were carried on as usual bv the native
inhabitants of the Pribilof Islands under the direction of the Bureau’s
staff Twenty-six skilled employees of the Fouke Fur Co. were depaclring0of the^kins. ^ ^
t0
in the
*nd
w S 1Si T i tl0n f ctlYltles,on the island were rather limited in 1937
Work on the extension of roads was continued, and minor improvements were made on buildings and equipment. A substation was
established on Amchitka Island, one of the western Aleutian group
serve as a base for sea otter investigations and patrols
^ P’
The byproducts plant on St. Paul Island was operated for the
utilization of fur-seal carcasses and produced 29 8‘tO o-nllrma -e u
and 165 tons of meal. Small q u a n tiE of these’prod?cts
°U
tamed at the islands to be used during the winter *for fox feed but
most of the oil was sold in Seattle for the account of the Government

to

S S S 'i „ Wf e S

f S

^ he

Fis"

BUREAU OE FISH E R IES

105

The annual supplies for the Pribilof Islands were shipped from
Seattle on the U. S. S. Sinus, through the cooperation of the Navy
Department. On the return trip to Seattle this vessel carried the
season’s take of sealskins and 162 tons of seal meal from the by­
products plant.
.
...
,
i
...
As the Navy Department’s radio facilities at Dutch Harbor, Alaska,
have recently-been expanded, the maintenance of the St. Paul Island
station as a link in the Coast Signal Service is no longer necessary.
The St. Paul station was therefore transferred on August 10, 1937, to
the Department of Commerce, under a revocable permit, and is being
operated on a reduced scale by the Bureau of Fisheries.
In accordance with the terms of the fur-seal treaty of 1911, delivery
of 8,277 fur-seal skins, or 15 percent of the season’s take, was made
to the Canadian Government. Japan continued to receive its 15 per­
cent share in the take from the proceeds of sale of the remaining skins.
The United States received a shipment of 210 Robben Island fur-seal
skins, taken by Japan in 1937. This represented the annual 10 percent
share due this country under the terms of the fur-seal treaty.
SEAL HERD

The total number of animals in the Pribilof Islands fur-seal herd
on August 10, 1937, was computed as 1,839,119. This is an increase
of 149,376 over the computed number in the preceding year.
T A K E OF SEA L SK IN S

In the calendar year 1937 there were taken on the Pribilof Islands
55,180 fur-seal skins, of which 44,068 were taken from St. Paul Island
and 11,112 from St. George Island. This is an increase of 2,734 over
the total taken in 1936. . Insofar as possible, killings were from the
3-year-old males, a suitable number of this age class having been
reserved for breeding stock.
SALE OF SEA L SK IN S

Two public auction sales of fur-seal skins were held at St. Louis,
Mo., in the fiscal year 1938. At the sale on September 27, 1937, there
were sold 7,000 skins dyed black, 12,580 skins dyed Safari brown, and
147 miscellaneous skins, for a gross total of $420,640. On May 2,1938,
7,100 skins dyed black and 12,849 dyed Safari brown brought a gross
sum of $432,622.25.
Sealskins sold at private sales under special authorization by the
Secretary of Commerce consisted of 474 dyed black, 398 dyed Safari
brown, and 2 raw salted skins, which brought a gross sum of $21,102.81. In all, 40,550 fur-seal skins were sold for the account of the
Government in the fiscal year 1938, for a total gross sum of
$874,365.06.
FOXES

The blue fox herds maintained on St. Paul and St. George Islands
continued to thrive, and the taking of fox pelts provided the natives
with employment during the relatively inactive winter months. The
herds require very little attention and are a profitable adjunct to the
■108928— 38------ 10

106

REPORT OF T H E SECRETARY OF COMMERCE

fur-seal industry. During the 1937-38 season 231 blue and 15 white
foxskins were taken on St. Paul Island, and 616 blue and 1 white fox
pelt were taken on St. George Island. Sufficient stocks were reserved
on each island for breeding purposes.
One thousand blue and 12 white foxskins, taken on the Pribilof
Islands in the 1936-37 season, were sold at public auction in the fiscal
year 1938. The blue foxskins brought $25,934 and the white skins
brought $146, a total gross sum of $26,080.
F U R -SEA L S K IN S T A K E N BY NATIVES

Exercising the privilege granted them under the provisions of the
North Pacific Sealing Convention of July 7, 1911, the aborigines
dwelling on the coast of the North Pacific took a total of 2,832 furseal pelts in 1937. Indians under the jurisdiction of the United
States took 161 skins and Canadian Indians took 2,671. All these
fur-seal skins were duly authenticated by Government officials of the
two countries.
F U R -S E A L PATROL

Vessels of the Coast Guard were again assigned by the Secretary
of the Treasury to patrol the waters of the North Pacific and Bering
Sea for the protection of the fur seals and sea otters in those areas.
One vessel of the Bureau of Fisheries also participated in the fur-seal
patrol during the northward migration of the herd.
PROTECTION OF SEA OTTERS, W A LRU SES, A ND SEA L IO N S

A new edition of the regulations for the protection of walruses and
sea lions was issued on July 1, 1937, extending the closed season on
these animals for 2 years, although permitting their capture, as here­
tofore, under certain specified conditions. The killing of sea otters
is prohibited at all times.
PROPAGATION AND DISTRIBUTION OP POOD AND GAME PISHES

The hatcheries operated by the Division of Fish Culture released
for the stocking of public waters during the fiscal year 1938 a total
of 7,822,151,800 fish and eggs. This represents a slight regression,
approximately 1.2 percent, from the comparable output of the previ­
ous year. The 1938 production has, however, been exceeded only
twice during the period in which the Federal Government has oper­
ated fish hatcheries. In view of the effects of weather, and other fac­
tors beyond control, there is each year an inevitable fluctuation in
the output of the hatcheries. Among the factors which may be cited as
contributing to the reduction and output was the flooding of the Louis­
ville, Ky., hatchery during the spring of 1937, thereby affecting the
1938 production. In the Madison River, Mont., a large supply of trout
eggs was virtually eliminated because of drainage of a hydroelectric
reservoir. The cyclical nature of the runs of Pacific salmon also con­
tributed to a reduced egg take for those species. Altogether some 45
different species of fish were handled at the Bureau’s hatcheries. The
canalization of the upper Mississippi River has curtailed the rescue

107

BUREAU OF FISH E R IES

work in the Upper Mississippi Wildlife Refuge. This was reflected
in a reduction of distribution of warm-water pondfish and also in the
distribution of a larger-size fish listed as fingerlings. The fingerlmg
output of 118,105,000 was approximately 18,000,000 less than the pre­
vious year. The output of game fish as a whole held up most success­
fully. The demand for game fishes for stocking waters on Federal
lands has increased to the extent that many applications from private
applicants had to be carried over for subsequent attention.
PROPAGATION

OF

COM M ERCIAL

SPECIES

Marine species, Atlantic coast.—The output of haddock and pol­
lock, and important species of the New England shore waters, was
increased. This increase was balanced by a reduction in the propaga­
tion of cod and flatfish. Lobster propagation was prosecuted more
vigorously at Boothbay Harbor, Maine, and Gloucester, Mass., with
a resultant production of 6,800,000 fry. No mackerel were propa­
gated by the marine stations during 1938. As usual, much of the
propagation of marine species was concerned with the fertilization
of eggs and their immediate planting on the natural spawning
«•rounds. Over U/2 billion eggs were salvaged by this procedure
Pacific salmon.—I t is especially regretful that there was a notable
drop in the propagation of chinook and sockeye, the most valuable
species of the Pacific salmons. However, the annual fluctuation m
the runs of these fish determines the egg take, which m turn controls
the hatchery distribution. In connection with the salmon hatchery
operation, steelhead trout were propagated in large numbers.
Anadromous species. Atlantic coast. In line with an intensive
study of the biology of the shad, and a definite program of rehabili­
tation of the species, the output of shad fry was materially increased
to a total of 26,000,000. Increases were registered at the I ort Belvoir, Va., station and at Edenton, N. C., and scattering numbers were
propagated in South Carolina and Georgia, the latter being a new
activity conducted in cooperation with these States. Work with
the Atlantic salmon was negligible, due to inability .to obtain any
worth-while quantity of eggs. Yellow perch and white perch were
hatched in large numbers in the shad hatcheries, since these species
can be handled at little additional cost in connection with the propa­
gation of the more important shad. Effort was again made to propa­
gate striped bass on the Roanoke River in cooperation witn the State
of North Carolina. Moderately successful results were obtained.
Commercial species, interior waters.—Several hundred million eggs
and fry of the catfish, buffalo fish, and carp varieties were distrib­
uted, purely as a byproduct of the Bureau’s other work m the upper
Mississippi area. I t would have been possible to increase the output
of these had such action been deemed desirable. Owing to uncer­
tainty as to the role of the hatcheries in maintaining the more valua­
ble species of the Great Lakes, there was no increase m intensity of
effort to hatch whitefish and lake herring. Seventy-four and onehalf million whitefish fry represented a yield somewlnvt below the
previous year. The propagation of pike-perch at the Put in Bay,
Ohio, station, in cooperation with the State of Ohio, was resultant of

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REPORT OE T H E SECRETARY OP COMMERCE

a reduced output. The feature seriously affecting the work on Lake
Ontario is the fact that the most suitable spawning area for whitefish and lake trout is in Canadian waters and no satisfactory ar­
rangements can be made whereby the Bureau can obtain eggs from
that source. Similar limitations kept the production of lake trout at
a low level.
Game species.—A large increase in the production of black-spotted
trout was made possible through increased egg collections at Yellow­
stone Park. The greater portion of these fish were distributed in
National Park waters. Fewer brook, rainbow, and loch-leven trout
were distributed, but many of these were planted at large size,
increasing their value for stocking purposes. Efforts to develop a
satisfactory and economical trout food under actual operating prac­
tices have continued. An important feature of the Bureau’s work
with game fish is the assignment of trout eggs, particularly of the
rainbow trout, to various other fish-cultural agencies. Shipments
of rainbow trout eggs and panfish were made to Puerto Rico, while
eggs of various species were supplied to Venezuela and Argentina. It
is again gratifying to report that the production of bass, a species
which merits its great popularity among the sportsmen, exceeded all
previous records.
It should be pointed out that practically all new hatchery develop­
ments within recent years, exclusive of some minor developments in
the Pacific salmon area, have been for the propagation of game
species. This is due to the fact that the fishes sought for sport are
largely denizens of the lesser fresh waters. They are consequently
more vulnerable to the increased fishing pressure of recent years,
and, further, suffer from environmental changes, such as pollution,
which mark our national development.
Since hatchery efforts are wasted unless the fish are stocked prop­
erly, more intensive consideration was given to the distribution
problem. Eight large trucks were acquired, as the nucleus of a fleet,
and these were being equipped with special tanks and apparatus
at the close of the year. Attempts to economize by inducing private
applicants to transport their allotments of fish have been unsatis­
factory, due chiefly to the applicants inexperience in handling live
fish.
RESCUE OPERATIONS

_Due to the development of the 9-foot channel in the Upper Mis­
sissippi River, the number of fish rescued in that area was below
that of 1937. However, there were salvaged a total of 42,202,000
fish, comprising 10 species. Of this number over 41% million were
returned directly to the main river channels.
The canalization of the Mississippi to the Twin Cities will make
the salvage work virtually unnecessary and impossible in (he future.
In lieu of this the Bureau is constructing large artificial ponds for
the propagation of fish in the areas adjacent to the pools created by
the new dams. The ponds already constructed and operated have
proved very successful. The two in operation at Genoa, Wis., last
year produced over 864,000 fingerling black bass alone.

BUREAU OF FISH E R IES

109

FISH ER Y INDUSTRIES
ECONOM IC A ND M A R K E T IN G IN V ESTIG A TIO N S

Surplus fish situation.—A study of the surplus fish situation showed
that on March 15, 1938, holdings of frozen, cured, a n d canned fishery
products in the United States amounted to approximately 260,000,01X1
pounds, which was about 80 to 100 million pounds greater than
normal holdings.
,
, . •
Improved cold-storage statistics.—The Bureau of Fisheries, m co­
operation with the Bureau of Agricultural Economics of the Depart­
ment of Agriculture, has made several revisions m the species classi­
fications of commodities frozen or held in cold storage m this country.
These changes, which are reflected in the monthly and annual coldstorage bulletins published by the Bureau, increase the usefulness of
these data to interested parties. Recently, separate classifications
were adopted for fillets of various species, and new classifications
were added for rosefish and swordfish. On July 15, 1938, additional
classifications will be included for scallops, shrimp, and sea crawhsii
or spiny lobsters.
. , ,
„
United States fisheries off foreign coasts.—.A study made during
the year shows that about 14 percent of the value of the catch ol
the domestic fisheries is represented by products taken oft foreign
coasts. Outstanding among such commodities are cod, haddock, and
other groundfish taken off the coasts of Newfoundland and Nova
Scotia, which were valued at $4,600,000, and tuna and tunalike fishes
taken off the west coasts of Latin America, valued at $o,900,000.
Other domestic fisheries off foreign coasts include those for salmon
and halibut off British Columbia; the fishery for red snapper and
groupers on Campeche Bank off Mexico; and the whale fishery off
Australia. The total value of domestic fisheries off foreign coasts
to domestic fisherman amounted to about $13,000,000.
Commercial fisheries of the world.—On the basis of the most re­
cent available data, the world’s annual commercial catch of fishery
commodities amounts to about 30,000,000,000 pounds, valued at ap­
proximately $730,000,000. The United States, including Alaska, ranks
first in value of the annual yield and is exceeded only by Japan m
Fishery market news service.—Offices for the daily collection and
dissemination of fishery market news were established at New_ fork,
N Y., and Boston, Mass., during the past year. Plans for opening the
third office, at Seattle, Wash., were nearing completion at the end
of the fiscal year, and other offices, within the facilities of the Bu­
reau, will be opened during next fiscal year. Essentially, this new
service, which has proved most popular, constitutes an exchange^ of
market information between the fishermen or producers in nshing
areas and the middlemen in terminal markets, with the Bureau of
Fisheries acting as the service agency; that is, the agency tor col­
lecting and disseminating the news. _
,
0 ooperative mo/rheting.—In connection with the administration o
Public No. 464, “An Act authorizing associations of producers oi
aquatic products,” investigations have been continued to determine

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REPORT OF T H E SECRETARY OF COMMERCE

the cooperative status of fishery organizations in the United States,,
and the extent and nature of their activities. Studies pertaining to
fishery associations and the financing of fishermen, which were begun
in 1936 on the Pacific and Middle and North Atlantic coasts, have
been extended to include the South Atlantic and Gulf coasts. I t has
been found among fishermen and associations visited that there is
widespread interest in the possibilities of advancing cooperative mar­
keting activities. This interest has been evidenced further by many
requests for the Bureau to give aid of an advisory character con­
cerning operations and management and financing problems. Wher­
ever possible, such assistance has been supplied through correspond­
ence, informative literature, or personal contact.
STATISTICAL IN V ESTIG A TIO N S
F IS H E R IE S OF T H E U N IT E D STA TES, CALENDAR Y EAR 1 9 3 6

New England States.—No complete statistical survey of the com­
mercial fisheries of this area was made for 1936. ■ However, the total
landings by United States fishing vessels at Boston and Gloucester,.
Mass., and Portland, Maine, amounted to 414,167,000 pounds, valued
at $11,144,000, an increase of 11 percent in volume and 24 percent in
value as compared with the preceding year.
Middle Atlantic States.-—No complete survey for the catch of fishery
products in these States was made for 1936. A survey made of (lie
shad fishery of the Hudson River for 1936 showed that 476 fishermen:
took 2,468,000 pounds of shad, valued at $170,000, an increase of 191
percent in volume and 139 percent in value as compared with 1935.
Chesapeake Bay States.—The commercial fisheries of Maryland and
Virginia in 1936 gave employment to 18,283 fishermen. Their catch
amounted to 314,095,000 pounds, valued at $6,488,000, an increase of
IS percent in volume and 17 percent in value as compared with the
catch in the previous year.
South Atlantic and Gulf States.-—The commercial fisheries of North
Carolina, South Carolina., Georgia, Florida, Alabama, Mississippi,
Louisiana, and Texas, during 1936, gave employment to 29,006 fisher­
men. Their catch amounted to 556,993,000 pounds, valued at $13,542,000, an increase of 24 percent in volume and 36 percent in value as;
compared with the catch in 1934, when the last previous survey of
catch was made.
Pacific Coast States.—During 1936 the commercial fisheries of
Washington, Oregon, and California gave employment to 20,620 fish­
ermen, whose catch amounted to 1,925,342,000 pounds, valued at $24 882,000, an increase of 15 percent in volume and 8 percent in value
as compared with 1935. The total catch of halibut by United States,
and Canadian vessels amounted to 48,054,000 pounds, valued at $3 603 000, an increase of 5 percent in volume and 11 percent in value as
compared with the catch in the preceding year.
Lake States.—In 1936 the commercial fisheries of the United States
and Canada, in the Great Lakes and international lake of northern
Minnesota (Lakes Ontario, Erie, Huron, Michigan, and Superior, and:
Namakan and Rainy Lakes, and Lake of the Woods), yielded 124408,000 pounds of fishery products. Of the total, United States fisher­
men took 94,277,000 pounds, valued at $6,389,000, an increase of 4

BUREAU OE FISH E R IES

111

percent in volume and 7 percent in value as compared with the catch
in the previous year. The Lakes fisheries of the United States gave
employment to 5,623 fishermen in 1936.
,
Mississippi River and tributaries.—No complete survey of the com­
mercial fisheries of the Mississippi River and tributaries was made for
1936. The catch of Lake Pepin and Lake Keokuk, and the Mississippi
River between the two lakes, in 1936, amounted to 8,181,000 pounds,
valued at $378,000, an increase of 22 percent m volume and 34 percent
in value as compared with the catch in these waters during lJ3o.
M AN U FA CTU RED PRODUCTS OF THEI U N IT E D STATES AND A LA SK A , CALENDAR YEAR 1 9 3 S

Fresh and. frozen packaged fishery products.—Based on data for
1936, except in the case of packaged shellfish m the New England and
Middle Atlantic States, which data are for 1935, the domestic produc­
tion of fresh and frozen packaged fishery products amounted to 202,396.000 pounds, valued at $26,895,000. Important commodities m this
group were fresh-shucked oysters, 6,758,000 gallons, Ta¿ ie¿ ra¡,^n9.’2^ h
000; packaged haddock, 41,187,000 pounds, valued at $4 266 000, and
fresh-cooked crab meat, 7,095,000 pounds, valued at $2 535,000.
Frozen products.- I n 1936 the production of frozen fishery products
amounted to 179.274,000 pounds, estimated to be valued at $15,000,000.
The volume of the production was 20 percent greater than m 1935.
The most important products frozen were groundfish, whiting, halibut,
salmon, and mackerel.
.
„
, „,
, , ,
i
Cured products.-The production of cured fishery products based
on data for 1936 in all sections except the New England and Middle
Atlantic States, which are for 1935, and the Mississippi River and its
tributaries, which are for 1931, amounted to 116,311,000 pounds, valued
at $15,616,000. Important products in this group were smoked
salmon, 8,753,000 pounds, valued at $2,656,000; mild-cured salmon,
1 1 .5 5 0 .0 0 0 pounds, valued at $2,245,000; and salted boneless cod, 7,951,000 pounds, valued at $1,492,000.
, . , Q„A
Canned fishery products.—Canned fishery products produced m 1936
amounted to 794,707,000 pounds, valued at $94,o64,000, an increase of
18 percent in volume and 26 percent in value, as compared with 193m
Canned salmon was the most important item, accounting tor 430,328.000 pounds, valued at $50,061,000. Other leading canned fishery
products were tuna and tunalike fishes, sardines, shrimp, mac ere ,.
clam products, and oysters.
.
, .
Byproducts.—Fishery byproducts produced m 1936 were valued at
$34,976,000, an increase of 17 percent as compared with the previous
year. Important products in this group were marine-animal oils an
meals and aquatic-shell products.
TECH NOLOGICA L INVESTIG A TIO N S

Preservation of fishery products for food.'—During 1937, studies in
this field included a further development of electrometric tests for the
freshness of fish and their practical or commercial application, studies
of rancidity in fish, of lactic acid as a possible index of decomposition
in frozen fish, of identification of canned salmon, of changes m the
composition of pink salmon, and of the canning of aquatic products.
Much interest was shown by the industry during the past year m the

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REPORT OE T H E SECRETARY OP COMMERCE

commercial application of the electrometric method for determining
the relative freshness of such nonoily fish as haddock developed sev­
eral years ago by members of the Bureau’s technological staff. Conse­
quently, one of the Bureau’s technologists was assigned to the labora­
tories of a large fishery producer, and, as a result, equipment has been
designed which is as nearly automatic in operation as is possible and
which enables the operator to make determinations upon 10 samples
of fish at one time. In this way rapid tests for the freshness of fish
purchased can be made without delaying packing activities or other
commercial operations. At the present time this test is being used by
this firm for the selection of fish which are to be used in fancy packs
of quick-frozen products. These products are expected to remain in
good condition over a longer period of time than is ordinarily expected
where the fish are not selected for their prime condition. One of the
changes occurring in fish immediately after death is an increase in
the formation of lactic acid, which progresses for some time after
death. Bureau technologists have begun a study of this formation of
acid as a possible reliable index of the rate of decomposition in frozen
fish.
Certain species of salmon undergo considerable apparent physical
change during the course of the canning season and the quality and
value of the canned product is at present judged somewhat on this
basis. The Bureau has undertaken a chemical study of these changes
in the hope of determining their true significance. In studying the
characteristics of the oil in canned salmon, it was found tliat those
for each species fell between quite definite and more or less separated
limits. Regulatory bodies have shown interest in these data as a
possible help in identifying the species of salmon after it is canned.
During the year the Bureau published a report covering an investi­
gation on the preservation of Pacific oysters. The information ob­
tained during the conduct of this work has been helpful in the begin­
ning of a new oyster-freezing industry in the Pacific Northwest.
During the past year experiments have been continued in developing
methods for canning fishery products, both in the home and for appli­
cation on a commercial scale.
Bacteriological studies.—Since the preservation of fish is based on
the prevention of spoilage through bacterial action, any device or
method which can be found to serve this purpose is vitally important
to both the fishing industry and ultimate consumer. Studies on other
food products indicate that the use of ultraviolet light rays have been
beneficial in lowering the number of spoilage bacteria in milk, meats,
bread, etc., thus improving the quality of these foods. Late in 1937
the Bureau’s bacteriologists began a study of these ultraviolet light
rays in reducing the bacterial count of various fishery products.
While this investigation is not yet completed, it has been found that
the rays will kill marine bacteria, and we hope to work out a practical
and commercially feasible application of this method in the treatment
of fishery products.
Pharmacological studies.—In recent years scientific investigators
have recognized the increasing importance of the role of minerals in
foods and in feedstuffs for farm animals. Certain minerals have
been found to be essential in nutrition, and it has been clearly dem­
onstrated that there is need for a better understanding of other

BUREAU OF FISH E R IES

113

physiological effects which these minerals may have on the animal
organism. For this reason an investigator, trained in pharmacology,
was assigned to the Bureau’s technological staff several years ago.
Studies of the arsenic and copper content of shrimp and oysters, and
their physiological or pharmacological effect, have revealed that no
deleterious effects are observed as a result of eating these products
when these minerals occur in natural organic combination. 1Similar
irm ar
studies are now being conducted on the natural fluorine content ox
Preservation of fishery byproducts.—During the year additional
data were obtained on the properties and composition or salmon oils.
A simple method was developed for the commercial extraction ot oil
from lean fish livers which do not give up oil by normal treatment.
Since the livers yielding the most potent vitamin oils come under
this classification, the value of such information can. be appreciated.
The studies on liver oil extraction also led to practical suggestions on
methods for fortifying low-vitamin fish oils. Fish oils and oilbearing fishery products are subject to oxidative deterioration during
storage, and the matter of preventing such changes is an important
problem of the fishing industry. Further studies have been made
on the effectiveness of various materials for inhibiting oxidative
change. The oxidation of fat in fish meal causes it to become
insoluble in normal fat solvents. This leads to errors m analysis
and confusion when sales are based on analytical specifications.
Studies are being made to devise an analytical procedure which will
eliminate this difficulty. During the year the Bureau published
a report on the distribution of vitamins in salmon cannery waste and
contributed papers to scientific and trade magazines covering such
subjects as the utilization of salmon cannery waste, cereal flours
as antioxidants for fishery products, and the determination ot tat
in fish meal.
Fish cookery.—During the past- year, the Bureau continued the
development and testing of recipes for the preparation and cookery
of fish and shellfish, and carried on practical demonstrations in fish
cookery in cooperation with home economics workers and others in.
various parts of the country. In cooperation with the Federal burplus Commodities Corporation, some practical demonstrations in
fish cookery were conducted for relief workers and others interested
in connection with the distribution of fish to persons on relief roils.
BIOLOGICAL FISH ER Y INVESTIGATIONS
IN V ESTIG A TIO N S OF COM M ERCIAL F IS H E S

North Atlantic fishery investigations.—Biological studies in the
North Atlantic area are concerned chiefly with changes in abundance
of the stocks of fish which support New England's extensive and
varied fisheries. Specific problems investigated during the year
dealt with the causes of the extreme fluctuations m abundance of
mackerel and means of predicting such fluctuations; the relation be­
tween the existing stocks of haddock and the strain imposed by the
present intensive fishery; the economic and biological significance^ ot
the extension of otter trawling to include several species m addition
to cod and haddock; and the condition of the flounder fisheries m
coastal waters from Massachusetts to New York.

114

REPORT OF T H E SECRETARY OF COMMERCE

In contrast to the record yield for the calendar year 1936, the
catch of the New England vessel fisheries during 1937 declined by
6 percent and brought the fishermen a monetary return 12 percent
below the value of the previous year’s catch. W ith the exception of
cod and flounders, the yield of all important species suffered a de­
cline, and all species except halibut, mackerel, and redfish decreased
sharply in value.
The outstanding event of the year in this area was the decline of
the mackerel catch to an unforeseen low which was about one-third of
the previous year’s level. _ I t is believed this small yield was the result
of unusual oceanographic conditions which affected the movements
of the mackerel and made them less available to the fishermen, rather
than of an actual decline in abundance of corresponding magnitude.
This view is supported by the peculiar distribution of the 1937 catch
and by the good early season yield in 1938. Nevertheless, these devel­
opments emphasize the need for a more accurate mackerel catch fore­
cast. Facilities are lacking for off-shore observations on conditions in
the sea which affect migrations, survival of young, and availability of
the mackerel to the fishermen.
Not only did the total catch of the haddock fleet decline in 1937 by
5 percent from 1936 level, but also the daily catches of trawlers
diowed a drop of about 20 percent in both major producing areas.
The scrod haddock (the smallest commercial size) continued to be
scarce on the Nova Scotian banks, being only about three-fourths as
abundant on Georges as in 1936, and it is believed that the decline
will continue. Without further information on the numbers and
distribution of haddock of precommercial size, however, no definite
prediction can be ventured for the 1938 season. Although facilities
for such a survey were completely lacking in 1937, one experimental
trawling trip was made in the spring of 1938 through the courtesy
of the Woods Hole Oceanographic Institution in permitting the use of
the vessel Atlantis for this purpose.
Because of recent sharp changes in the stock of flounders, a survey
of the flounder fisheries from New York to Boston was carried to
completion during the year, catch data from both sports and recrea­
tional fisheries being collected. Highly significant figures on the
relative intensity of these two types of fisheries were obtained from
the returns of tagging experiments carried out in cooperation with
the States of Rhode Island, Connecticut, and New York. An average
of about 70 percent of the returns have been made by sportsmen.
I he same experiments have supplied information on the extent and
character of flounder migrations which will aid in devising effective
conservation measures.
Middle and South Atlantic 'fishery investigations.—Headquarters
for the investigation of the coastal fisheries from New York to Florida
were transferred during the year from Cambridge, Mass., to College
Bark, Md., permitting a more centralized attack on the urgent
problems of fishery management. In this area total production has
not only failed to increase, but has actually declined durino- the
present century, despite economic and technological developments
which might have been expected to increase the yield of the fisheries.
Studies of the scup,. squeteague, sea bass, and flounders have been
designed to discover the size and age at which the greatest yield in

BUREAU OF FISH E R IES

115

pounds can be taken at the lowest cost. These studies indicate thab
elimination of the present widespread practices of destroying fash
below market size and of marketing fish that would be more valuable
if allowed to grow to a larger size, offers the greatest promise of
improving the condition of these fisheries. Sorting of the catches by
pound nets, seines, and otter trawls, whenever possible, is urged.
Causes of the decline in abundance of the Atlantic coast shad, and
measures for restoring the fishery, are being sought in an investigation
which was initiated during the year. Because the Hudson River shad
catch has staged a spectacular recovery under careful regulation from
less than 100,000 pounds in 1917 to nearly 3,000,000 pounds m 1936,
this area is being carefully studied to determine what conditions are
responsible for the recovery. The fundamental question of the num­
ber of spawners necessary to maintain the fishery at a given level of
abundance is being attacked by tagging spawning migrants and
spent fish, studying scales, and deriving indices of abundance from
catch data. The effectiveness of present methods of artificial propa­
gation and the possibility of rearing fry to a greater size before liber­
ation are also being investigated.
,
Widespread concern over the decline of the striped bass fishery m
certain sections of the Atlantic coast during the years immediately
preceding 1936 led the Division to undertake an investigation con­
tinuing and complementing work done by several of the States.
Tagging experiments indicate that the fishery takes a heavy toll of
the small sizes before they mature, and it is believed that restriction
of the catch of these younger and smaller fish would increase the
total yield and augment the number of spawners. Extensive seasonal
migrations were also demonstrated by the tagging.
Shrimp investigations on the South Atlantic and Gulf coasts. ■
The problem of maintaining the present yield of the shrimp fishery
without endangering future supplies was attacked by tagging experi­
ments and the collection of catch records on both coasts and by explora­
tory trawling in the Gulf of Mexico to locate new supplies.
The discovery of large schools of shrimp in the deeper offshore
areas of the Gulf, which was made by the vessel Pelican during the
year furnished proof of the theory long held by Bureau investigators
that/the shrimp congregate in deep water after they disappear from
inshore fishing grounds in the fall and winter. Since it has been shown
that some, at least, of these offshore aggregations are large enough
to warrant commercial operations, it is believed that the strain on the
immature shrimp inshore may be relieved by offshore fishing with
beneficial results to the fishery. By taking more of the large shrimp
and fewer of the small, immature stages, fishermen may take the same
poundage, but fewer shrimp will be removed from the total available.
Commercial fishermen began offshore operations in the early spring
months as a result of the surveys by the Pelican
The year’s tagging operations resulted m the discovery that at
least a portion of the shrimp from as far northward on the Atlantic
coast as North Carolina migrate to Florida during the winter. From
this fact it is clear that the South Atlantic shrimp fishery should be
considered as a unit. The need of better protection of the young
shrimp is strongly indicated by the fact that the total catch in this
area remains at about the same level despite considerable increases m
the number of boats and amount of gear.

116

REPORT OF T H E SECRETARY OF COMMERCE

North Pacific and Alaska fishery investigations.—Commercial fish­
ery investigations in northern Pacific waters are concerned with rec­
ommending measures for the management and conservation of the
salmon runs in the rivers of the Northwestern Coastal States and with
maintaining at a productive level the salmon and herring fisheries of
Alaska, over which the Federal Government has jurisdiction.
. Rehabilitation of the Columbia River’s $10,000,000 salmon industry
is believed to depend in large measure upon the restoration of formerly
productive spawning areas which are now unavailable or unsuitable.
Approximately 2,500 miles of stream have been surveyed for the pur­
pose of discovering additional spawning grounds that may be restored
to use and of locating obstructions to upstream migrants and hazards
to seaward migrating fingerlings, such as unscreened irrigation
ditches. Data for 2,300 miles of stream which were tabulated during
the winter showed a total of 418 dams, of which 288 are temporary
and 104 are permanent. Five hundred ninety-five diversions were
discovered, 563 of which are used for irrigation. On the basis of
surveys covering north central, south central, and southeastern Washington, it is estimated that about 55 percent of the streams surveyed
provide suitable spawning areas, but about half of this total is un­
available to fish at low water.
. In Alaska, Government regulation of the commercial salmon catch
is designed to allow a sufficient number of spawners to escape the fish­
ery to maintain the runs of future years. The effectiveness of such
regulations depends upon knowledge of the returns that may be
expected from a given spawning escapement. Since past observations
have established the fact that the ratio of spawning adults to returns
several years later varies considerably, studies of the conditions which
govern such fluctuations are of paramount importance. Continuin°*
programs of research are therefore conducted on red salmon at Karluk
River and on pink salmon at Little Port Walter in southeastern
Alaska.
Additional evidence was secured during the year indicating that
better returns are obtained from red salmon fingerlings that remain
m fresh water until their third or fourth year than from those that
migrate at an earlier age. I t is therefore clear that the discovery of
means to improve growth and survival of the young in fresh water
will have a definite effect on the size of the runs. Major attention
was given during the summers of 1937 and 1938 to an investigation
oi the effect of predatory Dolly Varden trout in reducing the numbers
of young salmon. Little information being available about the migrations, growth rates, and age of this species, a series of marking experiments was carried out to supply such knowledge. Field observations
throughout the spawning area showed that the heaviest toll is taken
during the spring, at the time the young salmon are entering the lake
from the spawning streams.
The long-term study of the pink salmon populations of southeastern
Alaska deals chiefly with measuring the success of spawning in the
streams each year, and with discovering the effect of various natural
conditions on the survival of the young. Because the pink salmon
unlike the red, has a 2-year life cycle, the failure of 1 year’s brood has
serious effects on the fishery 2 years later. Continuous observations
are therefore necessary m order to foresee such poor years and re<m-

BUREAU OF FISH ER IES

117

late the fisheries accordingly. These observations consist in counts of
the spawning migrants so that the total egg production may be esti­
mated, followed later in the season by counts of the migrating young.
From these figures the fresh water mortality is computed. The total
ocean mortality is determined by comparing the number of seaward
migrants with the numbers returning 2 years later. Because the sur­
vival of eggs has been shown to be affected by the extreme seasonal
variations in rainfall and temperature, a meteorological record has
been kept during the year at the experimental stream at Little Port
Walter to secure accurate data on weather conditions.
Studies of the coho salmon in Puget Sound are concerned with
methods of rebuilding the runs which were formerly so important in
this area. Studies have been carried on over a period of several years
to determine the age at which hatchery reared fry may be released
most advantageously. Results show conclusively that long periods of
rearing bring much larger returns of adult fish. These studies are
being continued and exact costs of rearing and handling are being
computed.
.
The extensive tagging work of previous years of the Alaska herring
was continued, with the result that the migratory habits of practically
every commercially important population has been established. The
electronic tag detector was again operated successfully for the re­
covery of tagged fish.
Herring in the Cape Ommaney area, from which the bulk of the
catch in southeastern Alaska is made, have shown a marked decline in
abundance during recent years. This decline is the result of a combi­
nation of factors—intensive fishing, migrations, and failure of spawn­
ing in 1932, 1933, and 1934. Continued observations on each of these
conditions being essential to proper management of the fisherytag­
ging studies were supplemented by the collection of catch statistics
and data on the size and age composition of the catch.
Pacific pilchard investigations.—The phenomenal increase in the
landings of the Pacific pilchard fishery to a level three times as great
as the total landings of all other kinds of fish in the Pacific Coast
States has given rise to public concern over the ability of the resource
to provide catches of this size without undergoing depletion. In
response to this demand, the Bureau of Fisheries was provided with
funds by Congress at the beginning of the fiscal year to investigate
the condition of the resource.
Major attention is being given to the question of determining the
intensity of fishing which will provide the maximum yield of fish of
greatest commercial value, and, at the same time, leave an adequate
spawning stock. Since accurate methods of determining age and
estimating abundance are fundamental to the solution of these prob­
lems, the early months of the investigation have been devoted chiefly
to developing a satisfactory technique of age determination and a
method of estimating abundance from catch statistics or by aerial
observation of schools. Preservation of an adequate spawning re­
serve, however, depends on an annual census of egg production which
cannot be undertaken without a seagoing vessel.
Great Lahes fisheries investigations.—Because of the severe deple­
tion of the Great Lakes fisheries, now generally recognized, problems
of fishery research in this area are concerned chiefly with obtaining

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REPOET OF T H E SECRETARY OF COMMERCE

an accurate measure of the abundance of certain species, studying the
effect of various types of gear in commercial use, and supplying tech­
nical advice to aid State officials in the framing of commercial
fisheries regulations.
An investigation was conducted on Lake Erie to determine the
relation between the mesh size of gill nets and both the volume of
the catch and the size of individual fish taken. On the basis of these
and earlier gill-net studies, the Bureau will recommend a definite
mesh size for gill nets used for all species commonly taken in smallmeshed nets, and will recommend also an upward revision of present
legal size limits for blue pike-perch and saugers in order to provide
better protection for spawning females.
Because of the legal provision that net mesh must measure full size
at all times, an investigation was carried out to determine the allow­
ance that should be made for shrinkage. The differences among
various methods of measuring gill-net meshes are also being deter­
mined experimentally. These two investigations will provide for
more effective operation of the fundamental conservation measure of
net regulation.
During the year a survey was made to determine the effect of com­
mercial fishing on the game fishes of the Potasannissing Bay area..
The findings will be made the basis of recommendations for the
regulation of the fisheries.
Progress was made in compiling and analyzing the extensive col­
lections of data from earlier years. These included a complete analy­
sis of statistics of commercial fisheries of Great Lakes waters under
jurisdiction of the State of Michigan, providing records of fluctu­
ations in fishing intensity, yield, and abundance of important com­
mercial species over an 8-year period; a study of the whitefish
fisheries of Lake Michigan and Lake H uron; and a comprehensive
report on the investigation of Lake Champlain fisheries conducted by
the international fact-finding commission in 1930 and 1931.
Life history studies of the yellow perch and Lake Erie whitefish
were resumed and studies of the competitive food habits of lake trout
and lawyers were completed, the conclusion being reached that both
species are predators of the commercially important whitefish family
and that the lawyer through its consumption of invertebrates is also
a food competitor of the whitefish.
Important advances made during the year in State administration
of the fisheries were the adoption of the flexible rule method of measur­
ing gill-net meshes by four Great Lakes States and the Province of
Ontario, and the passage of a discretionary power act by the Wisconsin
Legislature, empowering State conservation officials to enact commer­
cial fisheries regulations by decree.
A Q U ICU LTU RA L IN V ESTIG A TIO N S

Although the yearly output of fresh-water game fishes by State
and Federal hatcheries amounts to several billion young fish, it is
generally recognized that a commensurate return is not being realized
by the several million anglers who seek sport in the Nation’s streams.
The conclusion is inescapable that some, at least, of the hatchery output
is being wasted by being planted under conditions which do not favor
survival. Scientific investigations being conducted in the field of

BUREAU OF FISH E R IES

119

aquiculture are directly concerned with the reduction of this waste by
determining at what age and under what conditions fish should be
planted to insure maximum returns. Improvement of hatchery prac­
tices in feeding and selective breeding and the reduction of loss
through disease are also under investigation.
Fish management practices which have been developed by many
years’ experimentation are being tested in various national forest areas
throughout the country, which serve as excellent natural laboratories
for this purpose. In the Pisgah National Forest project, operated
in cooperation with the Forest Service, studies were carried out during
the year to determine what size of fish and what intensity of stocking
produce most satisfactory results. The effects of various stream im­
provements on the production of fish and food organisms are also the
subject of studies which will find widespread application.
In California, experiments of an essentially similar nature were
carried out during the summers of 1937 and 1938 in the Convict Creek
Experimental Stream. The survival rates of various species, sizes,
and numbers of trout were compared as a guide for stocking programs.
Among the results obtained was the finding that hatchery fish of 2
inches or more show a surprisingly high survival in wild waters, and
that there is a distinct species difference in ability to make adjustments
to new conditions after planting.
Th*e continued operation of test waters in Vermont shows conclu­
sively that stocking alone is not enough to maintain the supply in the
waters under observation, for, while the species stocked (brook trout)
has shown a consistent decline, the rainbow trout, which is dependent
on natural propagation, has held its own.
Fundamental studies in the science of fish nutrition have been con­
tinued at Cortland, N. Y. Two lines of attack were made on the
problems presented. The first was concerned with improving current
hatchery practices by introducing new foodstuffs that are readily
available, and by improving the quality of the mixtures in current use.
In this connection a process has been developed for freeing linseed
meal of its toxic properties by steaming and pressure cooking, while
retaining its important property of binding water or meat juices.
Progress has been made toward keeping meats for long periods without
loss of nutritive value or physical properties, a development which
would decrease the labor and investment in refrigeration equipment
and make it possible to purchase meat in quantity at periods of low
prices.
Field studies in bass streams are concerned with much the same
problems as trout studies in colder waters. Studies in selected waters
of natural spawning, survival of the young, their food habits and
growth, lead to the tentative conclusion that, in the case of bass,
natural propagation is more efficient than artificial, and suggest that
management practices should be directed chiefly to the improvement
of natural conditions.
Experimental studies of fish diseases were continued. I he value
of routine preventive treatments is being tested, and records are being
carefully kept of possible mortality from such treatments. No in­
crease in mortalitv was found among fingerling trout. Controlled
infection studies were also conducted with the object of learning more
about the method of transmission of certain diseases in hatcheries.

120

REPORT OE T H E SECRETARY OF COMMERCE

The Disease Service continued to assist in the diagnosis of hatchery
disease by examining preserved specimens sent to the Seattle and
Washington laboratories. This service is extended to Federal, State,
and private fish culturists.
PO L L U T IO N IN V ESTIG A TIO N S

Every State and every major river system have now been included
in the stream-pollution studies conducted from headquarters at Co­
lumbia, Mo. Over 150 new localities were investigated during the
year and observations were continued at approximately YO old sta­
tions. Data collected from these field and laboratory studies are being
applied to the solution of practical fisheries problems. Forty-three
major cases of stream pollution were investigated by the staff during
the year and reports were prepared for the guidance of officials con­
cerned. In addition, the staff has aided in the solution of some
200 lesser problems. Many manufacturers have cooperated to a grati­
fying degree in applying the findings of the staff.
Detailed surveys were made of several artificial impoundments of
water, and practical applications of these studies have been made in
connection with the stocking programs of various Western streams
on which impoundments have been built or are contemplated.
S H E L L F IS H IN V ESTIG A TIO N S

Oysters continue to hold second place in value among all fishery
products. The industry is troubled, however, by the increasing deple­
tion of the natural beds, the destruction of valuable bottoms by pollu­
tion, and the losses caused by natural enemies.
In the New England area the principal problems are those of obtain­
ing an adequate set of larval oysters and of protecting the beds from
starfish. Information on the expected time of spawning and setting
was distributed at weekly intervals during both the 1931 and 1938
seasons through the cooperation of the Connecticut Shellfisheries Com­
mission. This information was based on systematic observations of
water temperatures and the condition of oysters at selected points in
Long Island Sound. I t is hoped to extend this service to other areas
in the near future.
The destruction of most of the early season set of oysters in 193Y by
starfish demonstrates the importance of studies for their control which
were carried on intensively from the Milford, Conn., laboratory dur­
ing the winter and spring. A chemical method of control was applied
under both field and laboratory conditions and its effectiveness in
destroying starfish was established. Careful tests have revealed no
injury to oysters.
Ecological observations were made by the staff during the year at
other points on Long Island Sound and in the inshore waters of
Virginia, North Carolina, Alabama, and Florida. These observations
have guided State authorities and private oyster growers in trans­
planting seed and planting material for the collection of set. Plans
were also prepared for the rehabilitation of several depleted areas.
Studies under way from the new marine laboratory at Pensacola,
Fla., include surveys of the condition of local oyster beds and the
collection of hydrographic data and plankton samples at selected
points.

BUREAU OF FISH E R IES

121

A preliminary report was published during the year setting forth
the causes of the decline in oyster production which has been strikingly
■evident in the York River, Ya. Field and laboratory studies have
demonstrated that the effluent from a local pulp mill is toxic to oysters
and that its discharge into the York River is primarily responsible
for unfavorable conditions in this area. Further chemical studies of
the effluent are being continued to determine which of its constituents
arc most toxic.
LAW ENFORCEMENT DIVISION

This Division is concerned with the enforcement of the act of 1931,
regulating interstate commerce in black bass, and work incident to
the Whaling Treaty Act of May 1, 1936, to give effect to whaling
treaties. This Division also conducts an anglers’ service, and issues
permits for the taking of bait fish in the District of Columbia.
The Hack lass tow.—There has been no change in the manner of
administering the Federal black bass law since last year. In coop«ration with the States, approximately 100 investigations have been
made of alleged illegal shipments of black bass, many of which have
resulted in obtaining evidence on which prosecutions can be based m
either Federal or State courts. In many cases seizures of black bass
were made, and objectives obtained without recourse to court
procedure.
In connection with the administration of the black bass law, the
Division assists the States in the improvement of their angling laws,
and in bettering black bass conditions in other ways. The Bureau has
received excellent cooperation from the States in this work. The
usual publications on fish laws, angling, etc., have been renewed and
distributed, to supply an increasing demand.
Whaling.—A total of 25 licenses to take and process whales were
issued by the Secretary of Commerce to 2 floating factory ships, 1 shore
station, and 22 catcher boats which are operated from the factory
ships and shore stations. The total revenue received from these licenses
was $7,000, which was turned over to the United States Treasury. One
scientific permit was issued to import a Right Whale for scientific
purposes.
.
The enforcement of the whaling laws is primarily the duty ot the
•Coast Guard and the Bureau of Customs, with which the Bureau of
Fisheries cooperates.
The Department is charged in the Whaling Treaty Act with the
collection of statistical and biological whaling data m addition to the
issuance of licenses. The Division has prepared two statistical reports
covering the number of whales taken, species, sex, size, etc., which
have been forwarded to the Association of Whaling Companies, Sandefjord, Norway, as required by treaty, and has completed biological examinations of a large number of samples of whale stomach contents
from whales captured by United States whalers._
Angling—A large part of the time of the Division is taken up m
answering questions relative to how, when, and where to fish. Com­
plete information on fishing tackle, fishing laws, etc., has been assem­
bled in the Division for the use of anglers.
108928— 38-

-11

122

REPORT OF T H E SECRETARY OF COMMERCE

VESSELS

Fifteen vessels of the Alaska service cruised about 115,000 nautical'
miles in the fiscal year 1938, as compared with 131,000 miles in thepreceding year. The Penguin covered approximately 30,000 miles, the
Brant about 12,000 miles, and the Crane. Scoter, and Teal each about
10,000 miles.
The Penguin made five round trips between Seattle and the Pribilof
Islands, transporting personnel and emergency supplies. Interisland
service was performed, and native workmen from the Alaska Penin­
sula were transported to the Pribilof Islands to assist with the sealing
activities. Two trips were made to the western Aleutians, one in July
and one in September, in connection with the sea-otter patrol.
The Auklet, Kittiwake, Merganser, Murre, and Widgeon were en­
gaged in fishery protective work in southeast Alaska during the 1937
season. The Blue Wing operated on Prince William Sound, the Eider
in the Kodiak area, the Ibis at Chignik, the Red Wing in the Alaska
Peninsula area, and the Coot on the Yukon River. The Crane trans­
ported personnel and supplies between Seattle and Bristol Bay in May
and August and patrolled the Alaska Peninsula area during the inter­
vening period.
The Scoter was used on Bristol Bay during the fishing season there
and then participated in the patrol of the Alaska Peninsula area for a
short time. From about the middle of August to the middle of Sep­
tember it was engaged in the patrol and stream-survey work in the
Kodiak area; similar duty was performed later in the vicinity of
Craig in southeast Alaska. The Teal was engaged in herring tagging
operations in southeast Alaska in the spring, after which it carried
on the patrol in Cook Inlet from May to August and on Prince William
Sound for a few weeks in September.
. Tlie Brant was used primarily for general supervisory work, chiefly
m southeast Alaska, although one cruise was made as far westward as
Dutch Harbor in July.
In the spring of 1938 the Scoter assisted with the fur-seal patrol in
the vicinity of Neali Bay, Wash.
The Pelican, which was reconditioned during the previous year for
use m shrimp investigations in the South Atlantic and Gulf areas
was engaged m exploratory trawling in offshore waters in the Gulf of
Mexico during the greater part of the winter and spring.
APPROPRIATIONS

» i f e t s M l o w J the B™ " f”

thB “

Salaries, Commissioner’s office_____________________
Propagation of food fishes (including $260,000 for construction)
Maintenance of vessels__ ______________________
Inquiry respecting food fishes_______ _________
Fishery industries___________ _______________
Fishery market news service_________________________ 1111111
Alaska fisheries service__ ________________
Enforcement of black bass law_______
Mississippi Wild Life and Fish Refuge___________
Whaling Treaty Act_______________________

$150, 400
929, 000
168, 000
262, 000
73, 600
75, 000
274, 0C0
13, 500
17, 900
3, 600
1, 967, 000

LIGHTHOUSE SERVICE
The special attention and study which has been given, during the
last 2 or 3 years, to some of the broader aspects of personnel adminis­
tration in the Service with a view to the revision of some Service
policies in this regard, in order to adapt them more closely to con­
temporary economic and social conditions, has resulted in an impor­
tant change during the year. The civil service principle has been
extended to the petty officers in both the deck and engineer depart­
ments of the vessels of the Lighthouse Service. This important
change was brought about by Executive Order of March 29, 1938,
bringing these positions within the scope of the Civil Service Act.
The signing of this order by the President represented the consum­
mation of more than a year’s study and planning by the Lighthouse
Service, the Department of Commerce, and the Civil Service Commis­
sion. This measure affects upwards of 325 positions, principally those
of quartermaster and oiler, and encumbents of such positions will
henceforward be selected competitively in the same manner as other
personnel whose positions are subject to the Civil Service Act, In
addition to the petty officer positions, this measure also embraces light
attendant positions, so that there is a substantial enlargement of the
majority of personnel in the Lighthouse Service who are subject to the
principle of the civil service. Present incumbents of these positions
who acquire a civil service status incident to the promulgation of the
Executive Order mentioned will become eligible for advancement in
the Service according to individual merit as vacancies hereafter occur,
and the measure is regarded as an important step in the further ex­
tension of the career service ideal.
Another measure arranged for and presently to become effective is
that involving assembled educational examinations for keepers and
vessel officers, the aim of which is to further and improve personnel
administration through higher standards of original entry, consistent
with increasing amount of technical skill required in view of the
growing mechanization of the Service, and the desirability of keeping
open avenues of advancement.
On account of the special conditions affecting the employment of
lighthouse keepers, their probationary period has recently been ex­
tended from 6 months to 1 year, and all keepers hereafter appointed
will have an opportunity to more thoroughly demonstrate their quali­
fications before their appointment is made absolute. A full appre­
ciation of this provision adds greatly to the possibilities for better
civil service personnel administration.
Two useful items of legislation to strengthen the general personnel
policy of the Service were also enacted by Congress during the year,
one of which provides a small sum each fiscal year for the travel of
new appointees to their first post of duty at isolated stations ; and
123

124

repo rt

op

the

sec r eta r y

of

com m erce

another that makes possible financial assistance in the transportation
to and from school of the children of keepers at isolated stations.
A further improvement in the functioning of lighthouse tenders,
and one calculated to remove some of the difficulties attending at
present the continuous maintenance of an officer watch, particularly
in port involves the appointment of higher grade petty officers in both
the deck and engine room departments. The present plan calls for the
appointment of such petty officers on the tenders as funds become avail­
able. A license will be required of these officers and they will there­
fore be competent to temporarily replace those in higher grades as
occasion requires.
Under the Public Works Administration Appropriation Act of 1938
there was allotted to the Lighthouse Service the sum of $2,098,750, for
-which a special program had previously been submitted, covering con­
struction of undertakings in 28 States along the coasts and interior
waterways of the continental Un.ited States, selected from among the
more urgent needs of the Service. A total of 104 individual projects
were on the list, and a wide distribution of funds will result, as many
o f the projects are of a diversified nature and also call for operations
at two or more points. Upon the definite announcement of the allot­
ment, steps were at once taken to get the entire program under way,
in order to fully meet the intention of the act in providing imme­
diate employment throughout the country. However, as the act
became effective only 10 days before the end of the fiscal year, pre­
liminary planning only is reported herein.
A further allotment of $1,680,000 for the construction and recon­
ditioning of lighthouse tenders and lightships was under consideration
by the Public Works Administration at the end of the year and was
later definitely made.
Considerable progress has been made with the recently initiated
program calling for the gradual modernization of Lighthouse Service
facilities upon the Mississippi and tributary rivers. The progressive
changes with respect to draft of vessels and demand for more consist­
ent operating schedules with resultant need of large number of buoys
at certain seasons has greatly altered the character of service re­
quired of lighthouse tenders. An important field for economical and
efficient use of more modern lighting equipment is also provided
in this area. Changes, both in equipment and administrative methods
are necessary to best meet present conditions as a result of which
the large and important river district will be brought more closely
into line with the organization of other lighthouse districts. I t
seems evident that an increase in efficiency, and more prompt and
effective service in emergency as well as certain economies, will result
from maintaining various groups of lights and other aids from
servicing bases located centrally to the considerable section they will
serve. With this in view, steps have been taken to establish such
bases at Pittsburgh, Pa., Point Pleasant, W. Va., and at Gasconade,
Mo. The tender equipment of the Service in this area has been
considerably strengthened by the commissioning of the new light­
house tender Goldenrod on June 2, 1938. This small but effective
and economical vessel was specially constructed for the character of
work now required in the maintenance of aids to navigation on in­
terior rivers, and will be utilized on the Missouri River to assist

LIG H TH O U SE SERVICE

125

in the care of aids in the 377-mile section from the mouth of Kansas
City within which as many as a thousand buoys are maintained at
06rt9iin seasons.
The Missouri River, under improvement for navigation purposes
at an expenditure of many millions of dollars, is at present provided
with navigational aids only as far as Kansas City. _ Above Kansas
City the river is practically ready for opening to navigation as tar as
Rulo, Neb., and with the early availability of water from the Fort
Peck Reservoir will be open, according to best information available,
as far as Omaha by the time construction of additional tender equip­
ment can be completed. Work on the remainder of the river, which
it is proposed to make available as far as Sioux City, Iowa, a total
distance of 790 miles, is proceeding rapidly, with expectation of com­
pletion within 3 years. With the increasing use of buoyage through­
out the navigable rivers, the improvements in navigable channels m
this river, in the Tennessee River, and the near completion of pooling
operations in the upper Mississippi River, the supplementing of the
tenders in the fifteenth lighthouse district is immediately desirable.
I t is accordingly proposed to construct at once two additional tenders
of this special type.
.
. J
, . ,. T • i *
The total number of aids to navigation maintained by the Tighthouse Service at the close of the fiscal year was 28,758, a net increase
of 652 over the previous year. Of the additional aids established,
405 were lighted aids, 54 were sound signals, and 232 were unlighted
buoys and daymarks.
. ,
New aids to navigation for three of the remotely situated United
States islands in tlie Pacific Ocean have been provided by the Light­
house Service in cooperation with the Department of the Interior..
The new lights are located on Howland, Baker, and Jarvis Islands,,
situated approximately 1,650 miles south and southwest of Honolulu..
Since these lights are off the usual track of vessels, they will bet
operated only on request.
.
During the fiscal year, racliobeacon equipment was installed at 11
additional light stations, this resulting in a net increase of 8 radio­
beacon stations, as during the same period 2 radiobeacons were discontinued, and 1 of the new stations was not actually placed in operation until the day following the close of the fiscal year. Of the new
stations, three were on the Atlantic coast, six were on the Great
Lakes and two were on the Pacific coast. The grand total of all
United States radiobeacons is now 133, which is approximately 30
percent of the marine radiobeacons of the entire world. _
The first low power, unattended “secondary” radio aid to naviga­
tion was established at St. Ignace, Mich., June 18, 1938. This radio
aid, termed a “marker radiobeacon” operates continuously, without
attendance, having automatic duplicate equipment.
Radiobeacon signals were synchronized with _sound-m-_air tog sig­
nals, for distance-finding purposes, at 7 additional stations during
the year, there now being 91 stations having such synchronized signaThere is indication that the present-day needs of shipping for
major radio navigational facilities are now well served, particularly
as respects those radiobeacons which have a purpose similar to the
great landfall lights, in the recently decreased rate of expansion m

126

REPORT OP T H E SECRETARY OP COMMERCE

this field. Present trends are toward the provision of radiobeacon
facilities for additional definite traffic routes and for the marking of
the approaches to more and more harbors, the new installations be­
ing somewhat affected by the rapidity with which additional commercial vessels are equipped with the necessary receiving apparatus
u* .1 j: ÿ ility to operate such additional beacons within the limited
band of frequencies available and without detriment to the function­
ing of the major system of radiobeacons.
Communication facilities have been extended to additional im­
portant isolated ships and stations by the installation of radio­
phones, bringing the total to 82, thus expediting tender operations
patrol, and restoration of aids.
The broadcasting of marine information by means of radiophones
has been considerably extended during the year, following the experiïïw Îa ^îr0adcaKtf ,made at Sault Ste- Marie>on the Great Lakes, in
tiW . file initial broadcasts included urgent notices to mariners re­
garding navigational aids, weather forecasts, and important hydro­
graphie information and were so favorably received by mariners that
an extension of the service was immediately planned. There are now
five additional radiophone broadcasting stations on the Great Lakes,
and such broadcasts are also made from Key West, Fla., and New
Orleans, La. In addition to matter concerning navigational aids
maintained by the Service, these broadcasts include information fur­
nished through the cooperation of the United States Weather Bu­
reau and the Hydrographic Office of the Navy Department. A fur­
ther dissemination of information has been secured throu«-h the
cooperation of the United States Coast Guard, several of the stations
of which rebroadcast the material prepared by the Lighthouse Serv­
ice. This marine information service was. intended chiefly to serve
the many small marine craft not equipped with radiotelegraph appa­
ratus or operators and vessels which depend upon radiophone rather
than radiotelegraph communication, but reports from users have
indicated considerable use by other vessels as well.
Comparison of the figures indicating the various types and classes
of navigational aids maintained at the close of the present fiscal year
with those for the past 10 years develops in a graphic manner the
basic trends m the work of the Lighthouse Service. These trends
are particularly significant in view of the many technological changes
both with respect to its own equipment and also that of the shipping
which it is its function to serve. These various changes have affected
t'le. Service in an almost constantly accelerating pace durum this
period of time.
&
The highest percentage of increase in any of the forms of naviga­
tional aids is that of the radiobeacons, there now being 100 percent
more such signals than there were in 1929. While this fi<uire indi
cates the remarkable development of radio aids to navigation it
must of course, be borne in mind that the total number of luch aids
is still relatively small, some 133 now established meeting fairly well
the present needs of the major radiobeacon system but subject to' grad­
ual expansion. Lest the progress in the field of radio, not used for
navigational purposes until as recently as 1921, seem to overshadow
the other activities of the Service, it should be noted that the lighted
and unlighted buoys have increased in this 10-year period bv 6 f per­
cent, and as the total number of such aids is now nearly 16,000 it can

LIG H TH O U SE SERVICE

127

readily be seen that they serve practically every mariner, no matter
how large or how small his craft. The lighted buoys, many of them
fitted with fog signals as well, are justly considered as one of the most
effective aids to navigation made available to shipping. These aids
have increased during the past 10 years until the number is now 62
percent more than at the beginning of that period. Lighted aids to
navigation, on fixed structures, have increased by 31 percent m the
10-year period under consideration; fog signals on buoys have in­
creased by 49 percent; and unlighted beacons or day marks have
increased by 48 percent. In the case of the latter the increase is due
very largely to the development in the marking of the Intracoastal
Waterway. Fog signals at light stations and on lightships have de­
creased by 3 percent, due almost entirely to the discontinuance of
secondary, and often hand-operated, fog signals at stations, and their
replacement by more effective fog signals on buoys placed closer to
the tracks of vessels. Important changes have also taken place m
the illuminants used for lighthouse purposes during the past 10 years.
Electricity is now used for 43 percent of the lights on fixed struc­
tures, where formerly only 16 percent were so lighted. The great
increase in this form of illuminant has accounted for the substantial
reductions in almost all other forms. The percentage of acetylene
lights has decreased from 45 to 21 percent; incandescent oil vapor
lights have decreased from 10 to 2j/2 percent; and oil wick lights, in
all areas except the Mississippi River system, have shown a substan­
tial decrease. Among the lighted buoys, about the same percentage
are now, as formerly, lighted by acetylene gas; other kinds of gas
lights have shown a substantial decrease; and electric lights have
shown a very substantial increase.
IMPROVEMENTS IN APPARATUS AND EQUIPMENT

Extension of the electrification of important light stations continues
to be carried out, with increase in the candlepower and effectiveness
of the lighted aids to navigation.
Additional research on fog signals was carried out at the Cape
Henry Fog Signal Testing Laboratory during the year. The most
significant result of this work was the discovery of the remarkable
increase in loudness resulting from the simultaneous sounding of two
or more electric oscillators of different frequencies. By selecting and
combining signals of definite frequencies, it was found that a fre­
quency harmonic structure was built up, which produced a blast of
great loudness. These tests may point the way to means of increasing
the efficiency of fog signals without an increase in power consumption
above that of the present first-class signals, and at lower first costs
.and considerably lower maintenance costs. Plans of a new type of
fog signal, based on these tests, are being prepared, and the purchase
of such a composite unit for a service test will be made shortly.
Service tests of electric battery-operated fog horns have continued
in six districts on the Atlantic and Pacific coasts, satisfactory results
being obtained with this apparatus both at shore points and on buoys,
and the unit is now considered to be a satisfactory and economical
low-power signal.
Battery powered electric-solenoid-operated fog-bell strikers ot the
■clapper type are in field service at two locations and have proved

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REPORT OF T H E SECRETARY OF COMMERCE

efficient during service periods of 1 and 2 years. Power requirement
is very small and varies in proportion to the number of strokes per
minute. An initial order has been placed for a number of plunger
type electric solenoid-operated bell-strikers suitable for use at shorepoints or on buoys. These will shortly be placed in service in several
districts. Plans for installations have been worked out so that when
the signals are connected with the shore, monitoring features will be
provided to permit of remote control over telephone circuit lines for
starting and stopping. This method of control, over telephone lines,,
is also available for other shore-connected fog signals.
Developmental service installations of apparatus for the remote
control of fog signals by means of a modulated light beam, have con­
tinued to function at one Pacific coast station and at one Atlantic
coast station, with satisfactory results. Equipment of this kind pre­
viously installed at Old Point Comfort Light Station, Ya., has been
temporarily removed, for simplification and improvement, and will
later be reinstalled for further service tests. The installation of mod­
ern compressed air fog signal equipment in replacement of bell signals
has continued as funds became available and is resulting in the fur­
ther improvement of secondary fog signals. Public Works Admin­
istration allotments will permit of continuation of these improvements
during the coming fiscal year.
The use of battery-operated electric lights with nonventilated
lanterns on buoys has been extended to a number of districts, in­
cluding the Alaska district, increasing the candlepower of the lights
and decreasing the weight and size of. the lanterns, an especially
desirable feature on the larger buoys. Outages due to submergence
in this type of aid have been eliminated.
The Lighthouse Service Radio Laboratory during the year com­
pleted the developmental work on a high-power radiobeacon ampli­
fier, on ultrahigh frequency radiophone equipment, and on a calling
unit to increase the efficiency and reliability of radiophone circuits.
Further improvements were made in a frequency-control exciter,
an intermediate-power radiobeacon transmitter, an alarm device, and
a timer, and samples completed for use in procurement. Develop­
ment of a sample low-power radiobeacon transmitter is under way.
Development of a buoy radiobeacon transmitter was largely com­
pleted, and preliminary field trials started.
Improvements were made in the equipment of two radio con­
trolled major light stations and one radio controlled lightship, in­
cluding the installation of alternating-current operated radio control
receivers at one station.
The effective area of 10 existing radiobeacons has been increased
through the improvement and modernization of the antenna systems
and the radio transmitters. Of these 10 new radiobeacons, 6 are
provided with vertical insulated tower antennas.
During the year, 21 radiobeacons were equipped with crystal fre­
quency control equipment, and 20 additional installations of such
equipment are in progress. _ These improvements are being made
necessary through the extension of radiobeacon service requiring im­
proved signal quality to further minimize interference between sta­
tions and to permit use by mariners of more selective radio direction
finders.

LIG H TH O U SE SERVICE

129

A t stations where radiobeacons and sound signals are synchronized
for distance finding, further improvement of centralized timing and
control equipment has been accomplished.
The required operating standards for monitoring stations were
materially increased. Seventeen radiobeacon monitoring stations are
now in daily operation and 62 observation stations are m interim tent use. One additional monitoring station is under construction.
Existing radiotelegraph stations on four lightships were improved.
Direction-finder installations on five tenders and lightships were mod­
ernized and improved.
ADM INISTRATION

Appropriations for the maintenance of the Lighthouse Service
totaled $11,376,000 for the fiscal year 1938. There were also allotted
from the 1938 Department appropriations, $6,000 for contingent ex­
penses, approximately $39,000 for printing and binding, and $8 ,
for traveling expenses.
.
n
There were received and deposited m the Treasury the following.
From sale of Government property, $51,065.45; rent of buildings,
$1,615.52; forfeitures by contractors, $188; reimbursement lor prop­
erty destroyed or damaged, $10,068.12 ; work done for private
interests $2,987.76; commissions received on telephones,
miscellaneous, $1,763.61; total, $67,709.63.
.
There were allotted on June 29, 1938, by the P u b lic Works Admin­
istration, $2,098,750, and subsequently an additional $1,680,000 lor
special project works.
„ , _ ,
, 0
n
With the increasing importance of the Calumet-sag _Lanai, as a
connection between Lake Michigan and the Mississippi River, and
therefore a link in the important Lakes to the Gulf waterway, and
the need for additional navigational aids, it became necessary to more
definitely define the exact boundary on this waterway between the
twelfth lighthouse district embracing Lake Michigan and the fif­
teenth lighthouse district embracing the Mississippi River system.
This boundary has been set at a point 13 9 miles from Lake Michigan
and 15.6 miles from the junction of the Calumet-Sag Canal with
the Sanitarv and Ship Canal.
.
. T • ere
Amon«- the items of special legislation affecting the Lighthouse
Service passed by the Seventy-fifth Congress were several involving
the transfer of land and other property (see last two_ paragraphs at
the close of this chapter), an act regarding the marking of wrecks
in navigable waters and defining the jurisdiction of the Lighthouse
Service, and the acts providing for the transportation of keepers
children of school age, and the transportation of keepers to isolated
stations, which are mentioned elsewhere. The act also continues in
force the general procedure, with regard to the handling of mess
funds of Lighthouse Service vessels and working parties, which has
prevailed in the past.
„
.
,
,
New legislation clarifies the responsibilities of the owners of sunken
vessels, and also the duties of the Lighthouse Service, with regard
to the marking of wrecks which may obstruct navigable waters of
the United States. This act also outlines improved procedure tor
the handling of funds paid to the Lighthouse Service by private persons for the repair or replacement of navigational aids destroyed or

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REPORT OF T H E SECRETARY OF COMMERCE

damaged, Avhich facilitates the accomplishment of such work in a
way economical to the Service. Another section of this act desig­
nates the Lighthouse Service as having jurisdiction, for the purpose
of establishing navigational aids, over all waters improved for navi­
gation by the United States, thus dispensing with the need for
specific legislation to confer jurisdiction over each newly improved
waterway.
An act also provided for cooperation with the Sea Scout Depart­
ment of the Boy Scouts of America, by authorizing the disposal, to
this organization, without cost, of obsolete or condemned materials,
or for the sale of materials that may be spared by the Lighthouse
Service.
An act provided for the sale, to the Otto Oas Post, Veterans of
Foreign Wars of the United States, of the old lighthouse keeper’s
residence m Manitowoc, Wis.
Several transfers of land were provided for by acts of Conoress
during the year, including the following: A strip of land forming
part °i the Mahon River Light Station, Del., was transferred to the
btate of Delaware for highway purposes. Seventy acres, forming a
part of the Twin River Light Station, Wis., were transferred to the
State of Wisconsin for park purposes. Two parcels of land in the
Hawaiian Islands were exchanged with private parties for two sim­
ilar pieces, to provide for the better location of the Kahului Harbor
range lights. A portion of the Catano Range Rear Light Station,
m Puerto Rico, was authorized to be conveyed to the Territorial
Government for roadway purposes. At Guanica, P. R., an exchange
of lands was authorized, with the Territorial Government to obtain
sites tor the better location of range lights.
Other special acts of Congress authorized the Secretary of the
treasury to make certain transfers of former Lighthouse Service
property, such property having been reported by the Lighthouse
cervice to the Director of Procurement for disposal.
PERSONNEL

During the fiscal year there was a net increase of 138 in the author­
ized personnel for the operation and maintenance of the Service
more than 100 of this increase having been in vessel complements,
principally necessary in order to provide in a regular way for the
increased leave allowances on vessels, and to provide for the observ­
ance of the regulations regarding the hours of labor. The total
personnel as of June 30, 1938, was 5,189, including 1,177 light keepers
and assistants; l,895_cfficers and crews of lightships and tenders; 113;
Bureau officers, engineers, and draftsmen, district superintendents
and technical assistants; 186 clerks, messengers, janitors, and office
¡ „ “ “ i 144 depot keepers and assistants, including laborers;
1,243 laborers, etc., mostly employed on part-time basis ; and 431 field
force employees engaged in construction and repair work.
During the year, in addition to their regular duties, a number of
el? w?*^eeS ^en(^ere(i aid to those in distress ; 98 instances of the savin«ot life and property, or the rendering of other valuable aid were
reported, many of which acts were performed at great personal risk
Changes m the superintendents of three lighthouse districts have
been made during the year. In the first district H. M Iimalls was

LIG H TH O U SE SERVICE

131

appointed superintendent, on the detail to Washington of C. C.
Brush to the position of Chief of the Marine Engineering and Con­
struction Division, on September 4,1937. In the eighth district E. C.
Merrill was made superintendent on the retirement of E. S. Lanphier,
on May 31, 1938. The position of superintendent of the seventeenth
district, vacated by the transfer of Mr. Merrill, had not been filled
at the end of the year.
LIGHTHOUSE TENDERS

At the end of the year the total number of lighthouse tenders
was 62, of which 58 were in commission, 2 were laid up, 1 was being
prepared for service, and 1 was out of commission and advertised
for sale. Of the vessels in commission, 41 were steam-propelled,
13 had Diesel engines, and 4 had Diesel electric drive. The average
age of the fleet of tenders, is 19.73 years. There are eight tenders,
aggregating 6,680 tons, 35 years of age and over.
Thirty-one lighthouse tenders are equipped with radiotelegraph,
35 with radio direction finder, and 18 with radiotelephone.
One new tender, the Goldenrod, was completed and commissioned
during the year. Contracts for the construction of three additional
tenders, the Maple, Narcissus, and Zinnia, were awarded on April
15,1938, and the vessels are now under construction. _
A stern-wheel, coal-burning towboat, the LeClaire, was acquired
from the United States engineers, at a cost of $7,500, and an addi­
tional sum of $2,500 was expended for the repair thereof, with a,
view to placing it in service upon the Mississippi River. This ves­
sel was originally built in 1915 at a cost of $44,238.
The following lighthouse tenders were extensively overhauled,
during the year: Greenbrier, Ivy, Shrub, and Speedwell.
It is expected that the following lighthouse tenders will be over­
hauled or reconditioned during the coming year: Beech, Cypress,
Hyacinth. Manzanita, Palmetto, Sequoia, Spruce, Tulip, and Wakerobin.
LIGHTSHIPS

Lightships were maintained on 30 stations during the year, and at
the close of this period the fleet consisted of 42 ships. In addition
to the regular station ships, nine were held as relief ships and three
were held in reserve.
Lightship No. 69, which was condemned during the previous fiscal
year, was sold on July 15, 1937, for the sum of $3,030. Lightship
No. 72, was condemned and sold on January 5, 1938, for the sum
of $827.
.
A lighted whistle buoy was permanently assigned to the Heald
Bank Station, Tex., on June 30, 1938.
One new lightship, No. 118, for the Cornfield Point Station, was
under construction during the year, as described elsewhere.
During the year lightships No. 76, No. 81, No. 85, No. 91, and
No. 91 were extensively overhauled or reconditioned, and it is ex­
pected that similar reconditioning will be accomplished during the
cominp- year on lightships No. 79, No. 81, No. 90, No. 93, No. 100,
and No. 107.

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REPORT OP T H E SECRETARY OF COMMERCE

PROGRESS OF VESSELS UNDER CONSTRUCTION
Lightship ‘No. 118.’’—This vessel, being constructed under contract with Rice
Bros. Corporation, East Boothbay, Maine, and which was briefly described in
last year’s annual report, was launched on June 4, 1938, and was 91.88 per­
cent completed at the end of the fiscal year. It is expected that the vessel
will be completed, turned over to the Government, and placed on station before
the end of the calendar year. The ship has been built specially to mark the
Cornfield Point Lightship Station, in Long Island Sound, just to the westward
of New London, Conn. Here it will replace Lightship No. Jt4, the last
lightship without propelling engines to regularly occupy a station, with the
exception of the radio-controlled Lake St. Clair Lightship, on the Great Lakes
Tender “Elm .”— This small tender was designed for use in the inlets and
bays of the New Jersey coast, and was more completely described in last year’s
report. Official trials were held on November 17, 1937, the vessel was accepted
and was placed in commission on April 1, 1938.
_Tender “Goldenrod.” This tender is a shallow draft, twin-screw vessel, de­
signed primarily for buoy work on interior rivers, and was more completely
described in last year’s report. Official trials were held on May 28 1938 and
the vessel was placed in commission on June 2, 1938.
Tenders “Maple,” “Narcissus,” and “Zinnia.”—These three small tenders, of
the same design, have been placed under construction during the year, and
when completed, will be assigned to the tenth, fourth, and seventh districts,
respectively. A contract for the construction of the Narcissus and the Zinnia
jvas awarded to the John H. Mathis Co., of Camden, N. J., on April 15
1938, at a total cost of $440,048, the vessels to be delivered in 350 and 320
days, respectiveiy. A contract for the construction of the Maple was awarded
to the Marine Iron & Shipbuilding Co., of Duluth, Minn., on April 15 1938 the
cost to be $190,000, and delivery to be made in 300 calendar days. These tenders
are 122 feet 3 inches in length overall, 27 feet in breadth^ and will displace
approximately 342 tons» at a draft of 6 feet 6 inches. They will be propelled by
two direct reversible Diesel engines, each connected to its propeller shaft by
reduction gears. These vessels are to be of approximately 40 percent welded
construction, welding being used principally on the longitudinal and transverse
framing members, and on the deck and bulkhead plating. This is a departure
but a progressive one, from the all-riveted construction formerly used for Light­
house Service vessels. Another new design feature is a tripod type of mast
eliminating the usual shrouds and backstays, and facilitating the use of the
derrick with which it is fitted. A modified flat-plate keel, having a heavy flat
bar welded outside the plating, is being used for the first time in this Service.
This construction will result in the vessel being of less draft than if fitted with a
standing bar-keel, and will eliminate objectionable docking features of the
orthodox flat plate keel construction, and as applied in these tenders, will add
considerably to the strength of the keel. The buoy lifting gear will have a
safe working capacity of 10 tons, quite large for so small a craft.
‘LeOlaire.’’—This stern-wheel tpwboat was secured from the War Department
on May 17, 1938. The principal dimensions of the vessel are : Overall length 151
fe e t; beam,_ 31 fe e t; depth of hull, 4 feet 5 inches; draft fully loaded, 4 feet.
The vessel is fitted with horizontal, tandem, compound, engines direct connected
to a stern paddle wheel. It has one coal-burning, water-tube boiler The hull
is of steel construction throughout. The vessel is being given a general over­
hauling, and will be placed in commission sometime during the fiscal year 1939.
PROGRESS OF SPECIAL WORKS
Boston Harbor, Mass.—For the preservation of the Deer Island Light Station
the cast iron portions of which were badly cracked by ice, a steel, interlocking!
sheet-pile caisson was built around the base of the cast iron pier. The caisson
was filled with stone and capped with a concrete deck. Other repairs were
also made to the cast iron plating and the boat hoisting gear. Total cost, $10 180.
Gape Cod Canal,^ Mass.—Further work on the improvement of the marking of
the channels leading to the Cape Cod Canal' was done during the year six
additional lights on fixed structures being erected in the Hog Island Channel
approach in Buzzards Bay. One of these lights is also fitted with a fog bell
Previous work under this project was described in last year’s annual reDort
Total cost of the project, $40,619.74.
1

LIG HTHO USE SERVICE

133

Cleveland Ledge, M ass— An allotment of $175,000 has been made for the
erection of a new first-order light, fog signal, and radiobeacon station in Buz­
zards Bay in the southern approach to the Cape Cod Canal. This structure will
stand in approximately 16 feet of water, on a submarine site, 2 miles from land.
It will mark the channel between two dangerous ledges. A survey of the site has been made, consisting of both soundings and borings, and plans for the
structure are being prepared.
Long Island, N. Y — An allotment of $40,000 has been made for the purchase
and establishment of lighted and unlighted buoys in the inlets and inland water­
ways along the south side of Long Island, to provide for night navigation as well
as increase the safety of day navigation. The project also provides for a buoy
boat for the servicing of these new aids. Total cost to June 30, $21,058.
Hudson River, N. Y.—This project provides for the improvement and exten­
sion of the system of buoyage, and for the erection of additional automaticlights in the Hudson River between Tarrytown and Kingston. Three lighted'
buoys are being replaced by lights on fixed structures, range lights are being:
established for the Tarrytown Channel and for the Silver Point Channel, and
three other automatic lights are being established, two in Haverstraw Bay and
one at Kingston Flats. Foundations for the new lights have been built, the
skeleton towers erected, and equipment has been purchased. Of the $46,000
allotted, $16,408 had been expended by June 30.
W atervliet, N. Y.—A 6-inch concrete paved roadway was constructed, and
an elevated storage space was provided for buoys and other equipment above
the reach of flood waters. The sea wall was repaired, and a concrete retaining
wall was constructed. Total cost, $8,687.29.
K ill van Knll, N: Y. and N. J.—Two automatic lights were established in
the Kill van Kull north channel, both being 18-foot skeleton steel towers on
concrete bases protected by riprap. The work was completed, the total cost
being $9,321.67.
Roosevelt Inlet, Del.—Four automatic acetylene lights, on skeleton steel
towers, two forming a range, and two marking the ends of the north and south
jetties, were established at Roosevelt Inlet. This inlet, which has been deep­
ened and improved, gives access to Rehoboth Bay from Delaware Bay, via the
old Lewes and Rehoboth Canal. Cost $4,754.94.
Chesapeake and Delaware Canal, Del. and Md.—This project for the estab­
lishment of approximately 9 sets of range lights, 29 minor lights, 17 lighted
buoys, 14 unlighted buoys, and 3 fog signals was necessitated by the War De­
partment project for deepening and widening the canal proper. At the end
of the fiscal year practically all the work had been completed except the erec­
tion of five sets of range lights and the placing of the unlighted buoys. The
work of constructing the foundations for four sets of range lights on subma­
rine foundations, and the establishment of a servicing base at Chesapeake City
is underway. It is estimated that the project is 75 percent complete. Cost
of the project to June 30, $99,075.
Pocomolce River, Md. and Va.—The dredging and improvement of the channel
in this river, which is not yet completed, is to be followed by the establishment
of new aids to navigation. All material has been purchased and is on hand.
Beaufort, N. C.—A general arrangement and improvement of aids in Beau­
fort Harbor was made, including the establishment of eight additional lighted
buoys and four additional unlighted buoys. Total cost, $19,740.
Charleston, 8. C.—The Charleston Light Station on Morris Island is being
converted from an attended to a fully automatic station, and the foundation
of the tower, threatened by the continued encroachment of the sea, is being
protected by the construction of an interlocking steel sheet piling cylinder sur­
rounding the base. The former first-order electric light has been replaced by
an automatic acetylene light of the mantle type, showing the same characteris­
tic as formerly. This work has been completed. The placing of the sheet
piling protection wall is being performed by contract, from an allotment of
$17,500, and $4,010 had been expended to June 30.
Intracoastal W aterway, 8. C., Oa., and Fla.—Further progress in the mark­
ing of the sections of this waterway lying in the above States was made dur­
ing the year, this being a continuation of the work reported last year. There
were newly installed, 155 electric lights on standard 3-pile dolphins, 159 daymarks on single-pile dolphins, and 28 special third-class buoys. In addition,
60 lights were fitted with larger lanterns and equipped with electric lamp

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REPORT OF T H E SECRETARY OF COMMERCE

changers. Reflectors were also installed on 630 unlighted aids. To facilitate
the work in the Intracoastal Waterway, the channel leading to the recently
established Fort Pierce buoy depot was dredged to a depth of 6 feet, and the
storage space was improved by the erection of a substantial enclosing fence
Cost to June 30, $70,988.86.
Port Everglades, Fid.—Improvement of the navigational aids marking the
harbor of Port Everglades is being made, consisting of the erection of four
three-pile iron light structures, two single-pile iron light structures, and the
moving of two range lights to new sites. A contract for the fabrication of four
rCost
L f oto, 1!011
oUC$11,641,13.
®ilir eS1i:h,an been let’ and other equipment is being assembled.
JuneSQ
30,
Florida Reefs, Fla.—The replacement of temporary beacons on the Florida
Reefs with permanent structures, the initiation of which has been provided
for by an allotment of $40,000, is progressing. A contract for the construction
of five wrought iron structures, to be erected at Elbow Reef, Dixie Shoal,
Coffin Patches, Big Pme Shoal, and Pelican Shoal was let before the end of the
year. Cost to June 30, $26,033.
Intracoastal W aterway, Ala., Miss., and La.— See annual report, 1937, page
, , df! to navigation have been established in Dog River, Cat Island West
End Channel, Bayou Perot, Bayou St. Denis, Bayou Petit Anse, Lake Arthur,
and Bayou Villers. Five lights yet remain to be erected in Mud Lake Field
work on the project is SO percent completed, and practically all expenditures
have been made. Cost to June 30, $9,866.55.
, FaMne-Nechos W aterway, T e x — See annual report, 1937, page 117. An addi­
tional light and lighted buoy were established in the Neches River south of
Beaumont. Additional materials and equipment have been purchased for
lights on the Sabine-Neches Canal, Sabine Pass, and Port Arthur sections of
this waterway. Project 48 percent completed. Cost to June 30 $28,759 87
Mona Island, P. R. Progress has been made with the electrification of this
station, the improvement of the illuminating apparatus, and the installation of
a radiobeacon. During the year engine generators have been installed and
placed in operation for lighting purposes, much of the radiobeacon equipment
has been set up, and installation of the wind-electric plant will begin shortly.
It is anticipated that the amount of wind normally experienced at this station
will be adequate to generate a very large percentage of the required electric
current. The sum of $9,904 has been expended or obligated to date.
Presque Isle Harbor (M arquette), Mich.—This project covers the establish­
m e n t ^ an unattended light to mark the end of the breakwater extension, the
erection of a keeper’s dwelling, and construction of a boathouse at Marquette
At the end of the year the work of the War Department had not as yet reached
a point where the erection of a light tower could be commenced. The erection
of the keeper’s dwelling is progressing, under contract, and the construction
ot the boathouse is also under way. The project, as a whole, is 10 percent
completed.
W hitefish Point Light Station, Mich,—The construction of five wooden pile
groins to check shore erosion and prevent further damage to station property
begun in the previous fiscal year, has been completed, by contract the cost
being $15,190.
'
Portage Lake Ship Canals, Mich.—The complete rebuilding of the Portage
Lake Ship Canal Light Station, made necessary by extensive channel improve­
ments undertaken by the War Department, and which was underway during
the previous fiscal year, has progressed satisfactorily. The steel work and
lantern for the new tower have been fabricated and will be erected on the outer
end of the south breakwater as soon as the foundation pier is completed. Rear
light and fog signal are now on a temporary structure. The service building
and the three-family dwelling for the keepers have been completed. Cost to
Jiiii6 30, $78,609.67.
Calumet Harbor, I I I — See annual report, 1937, page 117. The construction
or the light and fog signal station on the south end of the new breakwater
has been completed. A tower was moved from Holland, Mich reconditioned
and prepared for the reception of the new apparatus. All signals at the new
light station are remotely controlled, through submarine cable connections from
the previously existing Calumet Harbor Breakwater Light Station. Electricity
for the operation of the light, obtained from commercial power lines, is conveyed
to the new station through a submarine cable, and electric storage batteries of
suitable capacity, are provided as a stand-by. The fog signal is an air-operated
diaphragm horn, the air normally being supplied from an electric motor-oper-

LIG H TH O U SE SERVICE

135

:ated compressor, a gasoline engine-operated compressor also being available
as a stand-by. Total cost, $24,932.66.
Illinois River, III.—The project for the improvement of aids to navigation in
this waterway was intended principally to provide for the purchase and estab­
lishment of, a number of third-class special buoys, and the establishment of pile
clusters in Peoria Lake in order to mark the channel for night navigation. Cost
to June 30, $9,779.39.
Point Pleasant, W. Va.—A portion of the property formerly used a slo c k 11
on the Kanawha River, located near Point Pleasant, W. Va., was obtained for
use as a servicing base for navigational aids in the general vicinity. This prop­
erty, in addition to adequate water frontage, includes a storehouse, a workshop,
and four dwellings. Improvements being made include modernization of two of
the dwellings and the provision of storage tanks for gasoline. A Diesel powered
motorboat, a truck, and a speedboat are also being procured for use in servicing
the aids in this area. Cost to June 30, $23,560.88.
Tennessee River.—This project covers the marking of the navigable channel
of the Tennessee River from Pickwick Dam to Guntersville Dam, a section of
the river lying almost wholly within the State of Alabama. Lights and buoys
were installed to mark the channel through the Wheeler pool. In the Pickwick
pool the buoys were moved to suit the new channel conditions, older light
structures were moved, and a number of new light structures were erected.
All materials are on hand and the installation of the lighting equipment is in
progress. Cost to June 30, $12,019.19.
M ississippi River.—Improvement in the marking of the tipper reaches con­
sisted of the establishment of 95 automatic flashing lights, and 32 of the thirdclass special buoys, between St. Louis, Mo., and St. Paul, Minn. An additional
quantity of lighting equipment and buoys is on hand, and the work of installa­
tion will soon be taken in hand. Cost to June 30, $18,329.01.
Missouri River.—That portion of the river between its mouth and Kansas
City is to be better marked by the installation of improved; lighting equipment,
including 100 oil lanterns and 150 automatic flashing lights. New equipment
has been purchased and installation is to begin within a short time. Cost to
June 30, $21,784.05.
New Dungeness, Wash.—This project is a continuation of a previous one to
provide shore protection, and to reconstruct the wharf and tramway at the New
Dungeness Light Station. Because of progressively building up of the sand
spit, as the result of work done under a previous project, additional work was
postponed until further observations could be made. At the close of the year
bids had been received for the placing of 'additional riprap and for the recon­
struction of the wharf. Cost to June 30, $455.63.
Columbia River, Oreg. and Wash.—This project provided for the establish­
ment of aids to navigation on the Columbia River between Bonneville and The
Dalles, Oreg., and from Celilo, Oreg., to Walulu, Wash. The aids will include
the necessary lights, buoys, and beacons to mark the ship channel from the
Bonneville Dam to The Dalles, and necessary lights to provide for night navi­
gation between Celilo and Umatilla. A channel has r.ot yet. been provided
above Umatilla. At the close of the year the project was practically completed,
46 semiautomatic electric lights, 5 electric lighted buoys, and 3 day beacons
having been established. Cost to June 30, $22,746.88.
Los Angeles, Calif.—A gasoline-engine powered launch is being provided for
the servicing of aids in: Los Angeles Harbor, and a boat hoist and boathouse
will be erected for its protection at the Los Angeles Harbor Lighthouse Depot.
The launch has been received from the Mare Island Navy Yard where it was
built; hoisting apparatus, also secured from the Navy Yard, has been recondi­
tioned; and bids for the construction of the boathouse have been invited.
Cost to June 30, $5,714.
.
.
Radiobeacons, general— A. special project covering the extension and im­
provement of the radiobeacon and communication system, which was under
way in the previous fiscal year, has been continued in the present year. Ten
new radiobeacons were placed in commission during the year, as follows:
Nobska Point, Mass., St. Paul Island, Alaska, Green Bay Harbor, Wis., Manana
Island Maine St. Ignace, Mich., Bonita Point, Calif., South Buffalo South
Side, N. Y., Superior Entry, Wis., Old Mackinac Point, Mich., and Georgetown,

s c

A radiobeacon was also installed at Portage Lake Ship Canals, Mich., being
placed in operation after the close of the fiscal year.

136

REPORT OF T H E SECRETARY OF COMMERCE

Interlocked operation of radiobeacon and sound signals for distance finding
purposes was completed at 7 additional stations, making a total of 91 such
aids. One additional radiobeacon monitoring station is under construction, and
communication facilities have been extended to 16 additional important isolated
ships and stations, by the installation of radiotelephones, bringing the total
to 82, and expediting tender operations, patrol work, and the restoration of
aids.
Fog signals, general.—See annual report, 1937, page 118. This project, a
general service item, providing for the improvement and extension of fog signal
facilities, is about 90 percent completed. Cost to June 30, $40,497.78. Under
this project, fog signals were improved at the following stations: Two Bush
Island, Maine, Beavertail, R. I., New London Ledge, Conn., Penfield Reef, Conn.,
Christiana Jetty, Del., Sharps Island, Md., Hooper Island, Md., Love Point, Md.,
Smith Point, Va., Wolf Trap, Va., Lightship No. 9If.
IM PORTANT WORKS COMPLETED
Kewaunee Shoal and Green B ay Angle Lights, W is.—See annual report, 1937,
page 117. Structures for unattended lights on submarine sites were built from
the same plans at both the above sites. The structural work consists of an
outer casing of interlocking steel piling, 30 feet in diameter and filled with
small stone. Piling 50 feet long was used which provided for a penetration of
approximately 12 feet, a depth of water of 20 feet, and a deck height above
water of 18 feet. The foundation material at Kewaunee Shoal was hard gravel
and at Green Bay Angle stiff clay.
The main deck consists of a reinforced concrete slab over the entire area. A
30 foot structural steel tower and tank house formed the superstructure, sur­
mounted by a 375 millimeter acetylene light.
The foundation cylinder was reinforced by riprap stone to a point 7 feet
below the water line. The cost of Kewaunee Shoal Light was $27,594.71 and
of Green Bay Angle Light $25,069.73.
M ary Island, Alaska.—A new, reinforced concrete, light, fog signal, and radio­
beacon building has been completed. This new structure replaces an old frame
building originally built in 1903. The new building consists of one story and a
basement, above which rises the tower for the light. The first floor houses the
power plant, consisting of engines, air compressors for the fog signal, and
electric generators for the radiobeacon and for lighting purposes. On the same
floor are the radiobeacon transmitters and the control, equipment for the light
and fog signal, including the timing devices for sending synchronized signals
for distance-finding purposes. Provision has been made in the basement for
the heating plant, fuel storage, and other station supplies. The structure is
of modern design, the tower being square in plan and relieved only by such
decorative treatment as is readily applicable to concrete construction. Total
cost, $54,792.

COAST AND GEODETIC SURVEY
REV IEW OE THE YEAR

The work of the United States Coast and Geodetic Survey for
the year past carries many accomplishments of interest and im­
portance. The Bureau has progressively improved methods and ap­
pliances, without reducing its high standard of precision but .with,
an appreciable reduction in operating costs. Among other things,
its records cover nautical and aeronautical charts, compass variations,
tide and current predictions, control surveys, which include the ex­
act geographical locations and elevations of thousands of P01™s
throughout the United States, earthquake data, and related sub­
jects such as gravity, variation in sea levels, current diagrams, in­
formation on ocean depths, the size and shape of the earth, manuals
on its various kinds of surveying, and many other matters. These
records also include basic data of great educational value, reaching
from ready commercial use to_ vital contributions to the ultimate so­
lutions of fundamental scientific problems.
__
.
The Bureau has responded to the rapidly rising demand tor its
products and it is appropriate to cite that the many collateral uses
to which these data are put increase their value For example, each
year more and more gaps are filled in the basic geodetic con­
trol survey of the country, furnishing accurately determined lati­
tudes, longitudes, distances, and true bearings, and these data are
not only used to insure the accuracy of positions on charts, but the
taxpayer is learning they are available as a money saver m engineer­
ing and industrial operations, such as hydroelectric power develop­
ment, drainage and irrigation projects, flood control, highway loca­
tion, boundary lines, etc.
.
.
Operations on land, sea, and m the air and the compilation and
issuance of the finished products by the Washington office must be
a continuing process with such increases from year to year as are
necessary to anticipate the most urgent needs of the public. A
stoppage of any of the projects, many requiring more than one season
for accomplishment, is expensive.
Because of the many changes which occur and the need tor publi­
cizing new conditions, the Bureau’s work for the area covered is
not finished with the issuance of a chart. Ever keeping m stride
with the greater requirements of the users of nautical and aeronauti­
cal charts, those of today show a wealth of detail which m other
days were as impracticable as they were unnecessary.
There was an increase in orders this fiscal year oyer last of 7 per­
cent for aeronautical charts and 5 percent for nautical charts, while
for all navigational publications the increase was approximately
6.5 percent, and 141 percent as compared with the number issued a
137
108928— 38------ 12

138

REPORT OF T H E SECRETARY OF COMMERCE

decade ago. These increases are the more remarkable when it is
realized that 1937 was in itself a record year in each of the-instances
mentioned. Over 351,000 nautical charts were issued, exceeding that
tor 1937 and for all previous years in the history of the Bureau.
Bureau work continues to be augmented by the increased activi­
ties of other agencies. This should be met by a small increment in
appropriation to permit the proper publication of the changes in ex­
isting conditions. Construction of new and better navigation aids
by the Lighthouse Service, the dredging and other improvement of
waterways by the United States Engineers, and the markino- of
new air routes by the Bureau of Air Commerce, are improvements
which, while beneficial to the_ marine and aviation industries add
materially to the work of revising charts and necessitate the issuance
of frequent new editions.
The unprecedented use of the Bureau’s products and the work
accomplished by other Bureaus which must be shown on its charts
ar!iC?iatlng a S!tuatl.?n. 'vith which it is increasingly difficult to cope
with the present available appropriations and personnel
Some relief came toward the end of the year in the form of ™
allotment of $2,051 000, under the terms of the Public Works Adminmtration Act of 1938: covering $490,000 for geodetic surveys in 34
S t a t e s $136,000 for replacement of fathometer equipment on 5 survey ships, repairs to observatory buildings and equipment for 44
tide stations; and $1,425,000 for the construction of 2 vessels One
of the latter will be a survey ship of about 1,500-ton displacement,
for offshore surveys m the Aleutian Islands, with an 8,000-mile
cruising radius and a complement of 90 officers and men, and the
other, an 88-foot tender to replace the Helianthus. The regular anPm 1uriutl0n 0W 65,w ° ,fo r4tlie liscal year 1939 will be materially
aided by the Public Works Administration Act allotment, particu­
larly with respect to the geodetic work.
’1
DEVELOPMENT OF METHODS AND INSTRUMENTS

The Dorsey Fathometer No. 3, a precision echo-sounding instru­
ment has been developed for use both in shoal and deep water
Placed on one of the Alaska ships, the WestdaM, it has already
measured depths from 5 to 450 fathoms. I t is expected that this
type will come into general use on Survey ships, because of its
increased precision and adaptability.
in Th>n nfiillar USen°f automatic buoys, known as sono-radio buoys,
m lieu of the small survey vessels formerly used as station ships in
radio acoustic position finding, has accomplished a considerable re­
duction in operating cost and relieved station ships for reo-ular sur­
vey duties.
te
A delicate apparatus built in the Bureau’s shops has eliminated
piactically all traces of magnetic material in the construction of
instruments for measuring and recording the earth’s magnetic propA new sea water sampler has been designed which makes use of
pneumatic pressure set up within the instrument itself as it is low­
ered into the sea, to trap a true sample of the surrounding water at
any desired depth.
^
b

COAST AND GEODETIC SURVEY

139

Experiments conducted over a period of several months have pro­
vided a method whereby two or more gradient tints on aeronautical
charts can be printed from one color plate. I t is estimated that
former nine press-runs can now be made with four press-runs, lh is
method is also contemplated for use on the shoal-water tint of
naiitical c'er ■ ()j, j- sk engraved in the office and fitted to the
sounding machine permits the cutting of certain lettering on the
nautical charts in the same manner that soundings are now cut.
A thermostatic device for maintaining a uniform temperature of
the Brown gravity apparatus permits the use of the more stable
bronze instead of invar pendulums, and eliminates magnetic effects
Other improvements include easier identification markings tor level
rods: stronger and more lasting rod cases; rapid introduction of
positive-type planetable sheet clamps; better methods of holding the­
odolites and collimators in their cases to prevent jarring out of
adjustment; and an improved magazine roll element for the standard
tide gage.
COOPERATIVE ACTIVITIES

The following projects were accomplished on a cooperative basis
with the organizations named:
.
: » ,,
Special map work: Cooperation with various bureaus ot the fe d ­
eral Government in many minor tasks which in the aggregate reouired much time. An example is the enlargement preparation and
printing of a special map of North America for the United States
Weather Bureau. This will be used m the main office of that Bu­
reau as a master map for the preparation of many others showing
different data and information for the public
__ .
United States. Maritime Commission: Cadet officers of the Commis­
sion are being given instruction, in the Washington office and aboard
survey vessels, to learn the many activities of the Bureau benefiting
the merchant-marine officer. Six cadet officers were recently as­
signed for a period of training for 6 months on the survey vessel
Oceanographer.
.
.
'„
,
Soil Conservation Service: Continuation of the extension of hi st­
and second-order triangulation over certain areas in Colorado, Utah,
and Wyoming, totaling 40,000 square miles, for use in controlling
mosaics from air photographs made in connection with the mapping
of those areas.
"
, „ _ , _ „ , ,,. ,
,
The Comision Mixta of Guatemala and El Salvador: Establishment
of an astronomical station near the Pacific end of the common bound­
ary. Additional cooperation was extended the two countries by fur­
nishing each with two astronomical stations to be used in coordinat­
ing proposed nets of triangulation in preparation for air photographic
mapping. Cooperation of this nature has now been extended three
countries of Central America, namely, Honduras, Guatemala, and El
Salvador, and the results of the work have been of such usefulness
that other countries may ask similar cooperation. _
Corps of Engineers, United States Army: Extension of first-order
leveling from Biloxi, Miss., through New Orleans, La., to the Head
■of Passes, and from New Orleans to Baton Rouge, La.

140

REPORT OF T H E SECRETARY OF COMMERCE

Committee in Seismology, Carnegie Institution of Washington:
Extension of 200 miles of triangulation and traverse across eight zones
along the San Andreas and three other faults in California, for study­
ing earth movements.
Ardmore, P a .: Detail of an officer to assist in obtaining geographic
positions in lower Merion Township as a basis for local surveys and
to provide a connection with the Pennsylvania State coordinate
system.
Baltimore County, Md.: Detail of an officer to extend a system of
triangulation over the metropolitan area, to provide a basis for the
- reference of property boundary lines, and for the preparation of taxassessment maps. Forty-six triangulation stations were established
and adjusted to the national control survey net.
California Works _Progress Administration: Continuation of the
releveling of level lines in the vicinity of San Jose, Calif., for the
study of earth settlement.
Works Progress Administration project of King County, Wash.:
Continued detail of an officer as technical adviser to parties extending
necessary triangulation for control surveys for mapping the county
and to an office force reducing the records.
Florida mapping project, Works Progress Administration: Com­
pletion of arcs of first- and second-order triangulation totaling 432
miles in length and covering more than 4,000 square miles, under the
technical direction of one of the Bureau officers, and the technical
supervision by another officer of the computing office.
Technical advice to other States: For limited periods during the
year, officers have acted as technical advisers to the Engineering De­
partment of Minneapolis, Minn., and to the Cleveland, Ohio, Regional
Geodetic and Topographic Survey, in the extension, through Work»
Progress Administration projects, of triangulation, traverse, and lev­
eling over their areas and to provide proper connections with the national control surveys. An officer was assigned each of the computing
offices of the State geodetic survey projects in Arkansas, Connecticut,
Ueorgia, and Oklahoma, to supervise the personnel, paid by the Works
Progress Administration, engaged on geodetic computations. The
Bureau continued serving in an advisory capacity with 15 States in
carrying on horizontal and vertical control surveys as part of the
Works Progress Administration program initiated'by the Bureau in
November 1933 under the Civil Works Administration.
Seismological observatories: Operated on a cooperative basis with
the institutions named, at Columbia, S. C., University of South Caro­
lina; Chicago 111 University of Chicago and United States Weather
Bureau; Butte, Mont., Montana School of Mines; Bozeman, Mont.,
Montana State College; Honolulu, Territory of Hawaii, College of
Hawaii; and College, Alaska, near Fairbanks, University of Alaska
J * 1“ “he Servi,ceAa Washington institution for the popularization of
science, financed the transmission of earthquake code messages for the
purpose of having Survey seismologists locate earthquakes within a
day or so of their occurrence.
T reu ^ a jfaC^l,iSe^ S ^ns^ tute °f Technology cooperated in studying
methods of analyzing seismograpliic records with special analyzing

COAST AND GEODETIC SURVEY

141

machines available only at that institution. Methods of improving
E o £ r o 5 T o f seismological instruments have been studied and
specifications to accomplish this have been prepared m the Bureau.
The University of California cooperated in maintenance of tilt
meters in connection with the Bureau’s seismological program.
The United States Weather Bureau, a number of universities inter­
ested in seismological research, and a large number of commercial
agencies and individuals, cooperate actively m collecting earthquake
inThe'cioperation of the Department of Terrestrial Magnetism, Carneo-ie institution of Washington included: Better determination and
maintenance of national and international magnetic standards as a
result of joint observational programs at the Cheltenham Mngpetic
Observatory ; operation of a cosmic ray meter at Cheltenham Mag­
netic Observatory; continuation of atmospheric electric and earth cu rent observations at Tucson Magnetic Observatory (with added coop­
eration of the Bell Telephone laboratories and the Mountain states
Telephone ¿Telegraph Co. in the work at Tuceon) ; and the extension
of weekly broadcasts of magnetic conditions for the benefit of the
investigators in the field of radio transmission. The îsavy Depart
ment, Science Service, and others also have cooperated m the latter
This Bureau continued cooperation with foreign governments m
the maintenance of international magnetic standards.
CHART PRODUCTION

Good progress was made during the year with the issue of 123
revised editions of existing nautical charts. To meet further the
requirements of marine commerce m those places where detailed sur­
veys had recently been made, the 15 charts listed below were compiled
and issued, making a total of 792 nautical charts of United States
waters now available. These include the completion of the intracoastal Waterway series from Norfolk to Miami.
M aryland-D elaware : Chesapeake and Delaware Canal.
V irginia -N orth Carolina (Intracoastal Waterway) :

Dismal Swamp Canal.
Norfolk to North River.
N orth Carolina (Intracoastal Waterway) :
North River to Alligator River—Pungo River Canal.
Alligator River—Pungo River Canal to Neuse River.
Neuse River to New River Inlet.
S outh C arolina :

Stone and North Edisto Rivers.
St. Helena Sound.

F lo r id a :

Fort Pierce Harbor.
,
„
.
Intracoastal Waterway—Cape Florida to Blackwater Sound.
X ouisiana : Isles Dernieres to Point au Fer.
•California :

Pyramid Cove and Approaches.
Estero Bay.

A laska :

Portland Inlet to Nakat Bay.
Kodiak Island.

142

REPORT OE T H E SECRETARY OE COMMERCE

Orders for aeronautical charts to meet the needs of civil and mili­
tary aviation have continued to increase parallel with the growth of
the aviation industry. To maintain the accuracy of these charts in
sections of the country where the establishment of new airways, air­
ports, and other new construction has made important changes, there
were printed 48 revised editions of 45 individual charts.
At the close of the year there were available the entire series of 87
sectional aeronautical charts covering the entire United States, 4 of
the regional series, and 2 of the direction finding series. This latter
series was first issued this year to provide charts for air navigation
by radio control.
The demands on the Division of Charts can be best illustrated by
the fact that the number of press impressions during the fiscal year
was more than 7,000,000. This is in comparison with only slightly
more than 5,000,000 in the preceding year and approximately 2,000,000'
4 years ago. The steady and substantial growth in the need for nau­
tical and aeronautical charts and related publications is shown by the
following tabulation of these publications for the past 4 years:
Item
Nautical charts U. .
Aeronautical charts i . . .
Strip maps................
Air planimetrie maps _ .
Miscellaneous.........
United States coast pilots..
Intracoastal Waterway pilots. _
Distances between United States ports
Tide tables____
_____
Current tables.
Tidal current charts__
Practical air navigation
Total_______

1938

1937

1936/-

1935
309,765-

299,094
2,857
6,167

10,842
1,008
529

559

¿798

9,114
1,628
1,837

5,167

712,066

666,184

521, 630

429

2,907
2,192
6,077
21, 984
7, 588
1, 705.
424, 227‘

1 Annual reports prior to 1936 did not include charts withdrawn because of the issue of revised editions..

A second and revised edition of the manual “Practical Air Naviga. on was issued toward the close, of the fiscal year. First published
m 1936, this book was entirely rewritten and enlarged to include
much new material of benefit to the aviation industry. It has already
received many favorable comments from officers of commercial air
fines and the military air forces.
HYDROGRAPHIC AND TOPOGRAPHIC WORK

During the year topographic and hydrographic surveys, including
the necessary control triangulation, were made on the Atlantic, Gulf
and Pacific coasts of the United States, in Alaska, Hawaii, and the
Philippines. The fieid stations of the Bureau in the United States,
Honolulu, and Manila, continued invaluable service in supplying; data
for the correction of charts in their vicinities, and in disseminating
information of the Bureau’s activities.

143

COAST AND GEODETIC SUJRVEY

A brief outline of and statistics for the various projects follows:
Hydrography, topography, and coastal triangulation
Hydrography
Locality

Sound­
ing
lines

Area

Square
miles
Miles
2
46
N an tucket Sound.......... ...................
1,184
Atlantic coast of Long Island--------- 2,865
6,660
New Jersey coast----------------------- - 12,304
56
New Jersey Inland Waterway.........- 1,628
24
516
Chesapeake Bay----------- ------------24
295
Inland Waters, Va., and N. C ------28
797
St. Johns River, Fla—........................
173
Florida K e y s..............-........ - ........... 2,091
ITayQCAAQcf
15,829 11,683
Vicinity of Santa Barbara Islands,
3,642
4,618
Calif___________________ _____
Coast of Northern California and
Oregon-------------- -------- ----------- 3, 214 i 2,732
43
Columbia River, Oreg., and Wash— 1,231
2 174
Southeastern Alaska----- ------ --------- 2,028
1
16
Goodnews Bay, Alaska— ................
4,983
5,
460
6
,
701
--------------------Alaskan Peninsula
1,919
Aleutian Islands, Alaska.................... 4,031
618
Philippine Islands---------------------- - 3, 995
Total______ _____— ..........-

67,188

Topography

Sound­ Shore­
line
ings

Number Miles
16.0
2,419
29, 594
124, 749
58, 648
367.0
22, 290
142.0
13, 745
387.0
38,823
900.5
71, 540
86.0
145, 536

Coastal triangulation

Area

Length
of
scheme

Square
miles
4.0

Miles
5

140.0
390.0
257.0
123.7
48.0

Area

Geo­
graphic
posi­
tions

Square
miles Number
9
6

30
29

76
92

46
53

8

13

2

8

14
49
173

221

22,972
29, 538
47,010
45, 494
432
5,417
84,876
58,000
61,117

102.4
189.0
184.7

4.0

50
60
2

2

184.5
305.0

22

68

636

22.0

98
83

63
905
521

34, 423 862,200 2, 612.8 1,887.9

395

1,914

92.7
138.0
7.5

16

10.0

399.7

144
13
15
49

i Includes 153 square miles of wire drag.
* Includes 18 square miles of wire drag.

On the Atlantic coast the survey vessels Oceanographer and
Lydonia continued hydrographic surveys off New Jersey and Long
Island. The successful functioning of the new sono-radio buoys,
described in previous reports, made it possible to relieve the Gilbert
from station-ship duty with these vessels and to assign her to surveys
on the south coast of Cape Cod. A special wire-drag survey of
reported shoal areas and wrecks along the Atlantic coast, from Cape
Henry to Sandy Hook, has been under way since May. The launches
Marindin and Rodgers are being used on the project, under the super­
vision of the commanding officer of the ship Oceaw>g rapher.
The Mikawe in the summer of 1937 completed the survey of the
New Jersey Intracoastal Waterway and during the winter continued
surveys of the St. Johns River above Lake George, Fla. The vessel
is now engaged on hydrographic surveys in upper Chesapeake Bay.
Small air photographic compilation units continued at Baltimore,
Md., Palatka, Fla., and at Norfolk, Va., during the winter months,
when personnel were available from ships in port for the annual
repair period. Air photographic surveys were made with the Bu­
reau’s newly developed nine-lens camera in upper Chesapeake Bay,
and in cooperation with the Army, for the Soil Conservation Service,
in the High Rock Reservoir area in North Carolina. Use of this
nine-lens camera makes possible an increase in efficiency of about 20
oercent over former methods in areas of flat terrain. In areas of
considerable relief, a specially constructed rectifying camera and a
contour plotting machine are used.

144

REPORT OF T H E SECRETARY OF COMMERCE

Basic surveys were continued by the shore party operating in the
vicinity of Key West, Fla.
In the Gulf of Mexico the vessel Hydrographer, with the tender
F aris operating as a subparty, continued hydrographic surveys along
the Texas coast.
On the Pacific coast the Guide was engaged on inshore and offshore
hydrography in the vicinity of Cape Mendocino and wire-drag sur­
veys off Cape Mendocino, Cape Blanco, Point Reyes, and Del Mar.
A shore party continued combined operations along the Columbia
River. The Pioneer completed her assignment on offshore surveys
in the vicinity of Santa Barbara Islands in the fall of 1937, and 'in
1938 transferred to southwestern Alaskan waters for control and other
surveys westward from Umnak Island. The Surveyor, with the
tender Wildcat, continued combined operations in the vicinity of
Umnak Pass, Alaska, while the Discoverer, with the tender Helianthus, extended combined operations eastward from Unimak Pass.
To and from the working grounds the vessels operating in south­
western Alaska ran sounding lines across the Gulf of Alaska.
A resurvey of part of the approaches to Goodnews Bay was made
in cooperation with the Alaska Steamship Co.
In southeastern Alaska the 1Explorer, in 1937, engaged on new
surveys in Sumner Strait and tributary arms and revision surveys
in Wrangell Harbor, in 1938 taking up combined operations and
wire-drag surveys in Sitka Harbor and approaches. In 1937 the
Westdahl, made new surveys in Steohens Passage and Taku Inlet
and in 1938 engaged on surveys in Elfin Cove and Glacier Bay.
The 13 United States Coast Pilot volumes showing the results of
field inspections made by this Bureau contain a wide variety of im­
portant information supplemental to that shown on the chart, such
as a detailed description of the coast and information concerning
waterways, as well as maritime data for all the ports of the United
States and possessions. These volumes are kept up-to-date by annual
supplements and revisions based on supplemental field examinations
and new surveys. Ten supplements were published, one new edition
was issued, and three volumes were in process of revision during the
year. Two field examinations were made in the Intracoastal Water­
way, and others were in progress in the Philippine Islands, the Virgin
Islands,_ and Puerto Rico, on which to base other supplements and
new editions. The publication Distances Between United States
Ports was also completely revised and a number of new tables added.
In the Philippine Islands the Fathomer engaged on surveys on the
northern coasts of Euzon and the west coast of Palawan. In cooper­
ation with the survey ship Herald of the British Navy, a triangulation
connection was made between the Sibutu Islands and Borneo. In
the spring the Fathomer was decommissioned and the Pathfinder
recommissioned and assigned to work on the southeast coast of Luzon.
GEODETIC WORK

One gravity party was in the field the entire year, except for two
short intervals required for standardizing apparatus at the Wash­
ington base station. A total of 148 new stations located in 13 States,
m places best suited for geodetic purposes and geological studies,
was determined and 7 old stations reoccupied.

145

COAST AND GEODETIC SURVEY

The two observatories for the determination of variation of lati­
tude, at Ukiah, Calif., and Gaithersburg, Md., have been kept m con­
tinuous operation under a cooperative international agreement, in e
records were sent to the central office of the International Latitude
Service, now located in Italy, that the results may be computed with
relation to those obtained at other international stations. The follow­
ing table gives a brief statistical summary of geodetic work
accomplished :
Geodetic triangulation, base lines, reconnaissance, and leveling, and astronomical
and gravity observations
Length
of
scheme

Locality

T R A V E R S E , FIRST OR D ER

TR IA N G U LA TIO N , FIRST OR D ER

Miles
4

Amsterdam Avenue base net,
New York--------------------------Vicinitv of New York, N. Y-----Soil-conservation area, Utah, Col­
orado, and Wyoming..... ...........
Connecticut-Rhode Island bound­
ary, Connecticut and Rhode Is-

10

2
12,180

45

360
60
1,450

145
150
22

Total___________________

Square
miles

495

12

Reed base net, Nevada------------Colquitt, Ga., to Laurel Hill, Fla.
Hudson River, N. Y., to Hudson,
N. Y -------- ------------------------Baltimore County, M d— ...........
Earthquake investigation:
Maricopa, Calif------- -----Palmdale, Calif-----------------Gorman, Calif-------------------Hartford to Torrington, Conn---Virgin River area, Utah and Ari-

1,550
180
80
75
120
200

180

6,000

1,142

22,259

17

170

70

TR IA N G U LA TIO N , SECOND O R D E R

60

490
50
600

950
80
60

22,550
720
600

Total_________ _________

1,247

25,180

BASE L IN ES, FIR ST OR D ER

Amsterdam Avenue, New York..
Lonoke, Ark. (remeasurement)--

4.0
9.3

Total........................... ..........

13.3

L EV EL IN G

Amsterdam Avenue base net,
New York..... ..........------- ------Vicinity of New York, N. Y------Colquitt, Ga., to Mobile, Ala----Baltimore County, M d------------Soil-conservation area, Utah, Col­
orado, and Wyoming------------Earthquake investigation:
Cajon Pass, Calif—. ............
Whitewater, Calif.............. .
Moreno, Calif-------------------W hittier, C alif.......................
Inglewood, Calif----- ----------Palmdale, Calif.......................
Gorman, Calif................. .......
Maricopa, Calif----------------Greenville, Ala., to Cuthbert, Ga.
Rockford to Roanoke, Ala--------Fredericktown to Success, M o....
Virgin River area, Utah and Ari­
zona....... ...............- ....................

Second
order

Miles
325

Miles

75
261
53
50

101

7
404

22

495

12,180

9
7

12
10

11

9

10

15
24
16
95
55
95

Total..

Kingman, Kans., to Ninaview,
Colo______________________
Highland to Francis, F la .......... Arcadia to Fort Ogden, Fla........
Lower Merion Township, Pa— Soil-conservation area, Utah, Col­
orado, and Wyoming----- -----Grantsville-Tooele area, U ta h ...
Weber River area, U tah----------

State

287

2
2

2, 695
180

44
36
50
75
120

80
950
550
950

180

6,000

1,317

23,936

290
60
17

R ECO N N A ISSA N C E, SECOND O R D ER
TRIAN GULATION

leveling —continued

100

Square
miles

4
10

260

Total....... -.................. ........-.

First
order

Area

RECONNAISSANCE, FIR ST O R D ER
TRIAN GULATION

16
15
24
24

10

Miles
14.4

Earthquake investigation, M ari­
copa, Calif........ -.......................

Arcadia to Fort Ogden, Fla........
Lake Okeechobee to Fort Myers,
Fla
_______________
Lower Merion Township, Pa----Highland to Francis, F la----------Soil-conservation area, Utah, Col­
orado, and Wyoming— . -------Carrabelle, Fla., to Colquitt, Ga.
Early to Campbellton, F la--------

State

Length
of
scheme

Locality

Area

N evada.........
New Mexico..
Virginia,.......
U tah_______
W yoming-. . .
T otal-

10

2,900
600
170
50

950
45
115

22,550
900
2,925

1,487
M87

30,095
Second
order

First
order

Miles

4
7

919

Miles

39
11

215
209
115
1,388

146

REPORT OF T H E SECRETARY OF COMMERCE

Geodetic triangulation, base lines, reconnaissance, and leveling, and astronomical
and gravity observations—‘Continuée!
Detern linations

Determinations

State

State
New

Repeat

GRAVITY

Alabama..................
Connecticut .
Florida....... .
•Georgia.......................
Massachusetts__
New HamDshire__
New Jersey...
New York__

New

Repeat

gravity—continued

18
1
9

1

North C arolina...............
Pennsylvania............... .
Rhode Island.................
South Carolina_______
Virginia____ ____ ____
Total........................

148

The office computation and adjustment of 41 arcs of first-order and
52 arcs of second-order triangulation were completed, and progress
made on the computation of an additional 15 arcs of first-order and 19
arcs oi secorKl-order triangulation. Office computation was also made
of the first-order base along Amsterdam Avenue, in New York City
]?st?ient.of the triallgulation of the United States on the
1927 North American datum continued rapidly, so that the olo­
graphic positions of approximately 60,000 stations have now been
computed on that datum. Plane coordinates of approximately 24,000
stations have also been computed.
Personnel detailed to the Washington office by the Chief of Engi­
neers, United States Army, continued on the adjustment of the Mis­
sissippi River triangulation from Vicksburg, Miss., to New Orleans,
.La. By the close of the year adjustments were completed and the
preparation of the manuscript was in progress.
J J e computation of the elevations of bench marks based on the
1929 adjustment of the first-order level net continued. Adjustments
were made of numerous small sections in Arkansas, Connecticut,
Georgia, Idaho, Oklahoma, Oregon, and Texas. An intensive treat­
ment of the subordinate leveling in Georgia was completed and the
descriptions and adjusted elevations of bench marks issued in litho­
graphed form.
Office computations were made of 153 new gravity stations and
8 reoccupied stations. The isostatic reductions were completed for
153 gravity stations determined by this Bureau; 83 stations deter­
mined by the Gulf Research & Development Co., data for which
were furnished by that organization to this Bureau; and 5 gravityat-sea stations of the 1936-37 expedition of the United States Navy
and the American Geophysical Union. In addition, the isostatic re­
ductions were revised for 214 gravity stations in the United States,
because of an improved reduction method giving somewhat better
accuracy and because of the availability of better maps.
. Three geodetic publications^ were printed cluring the year, two givmg results of triangulation in Utah and Wyoming and the other
containing leveling data for North Carolina.

COAST AND GEODETIC SURVEY

147

TIDE AND CURRENT WORK

Tide and current data are required not only for use in this Bureau’s
surveying and charting activities but for varied navigation and en­
gineering purposes. The tide is the vertical rise and fall of the
water. The current is the horizontal movement or flow of the water
which accompanies the tide. Each of these movements is of direct
practical importance in the divers commercial activities of our
waterways.
Automatic tide gages were in operation at 40 primary and 27 sec­
ondary stations—35 on the Atlantic coast, 5 on the Gulf coast, 22 on
the Pacific coast, 4 in Alaska, and 1 in the Hawaiian Islands. Thirtyone of these were maintained in cooperation with other agencies, in­
cluding the United States Engineers, the Navy Department, the States
of Texas and Delaware, the cities of Santa Monica and Los Angeles,
town of Stratford, port of Willapa Harbor, Woods Hole Oceanog­
raphic Institution, Chesapeake Biological Laboratory, and Univer­
sity of Washington. Supplementary data for shorter periods were
obtained at 115 other stations in connection with hydrographic sur­
veys and other activities.
The tide survey of San Francisco Bay, begun last year, tor the
precise determination of tidal datum planes and possible changes m
the tidal regime in consequence of hydrographic changes, was com­
pleted and the survey extended to the Sacramento-San Joaquin
delta. Two other tide surveys were carried on in cooperation with
the United States Engineers, one of Galveston Bay to furnish data
for model studies of channel improvements, and the other of the
Connecticut River, for information in connection with studies of
flood control.
The ebb and flow of the current must be taken into consideration
in problems of harbor improvements, sewage disposal, and navi­
gation. Data for use in the solution of such problems are derived
from current observations. During the past year, practically all of
the current observations obtained were in connection with hydrographic surveys, data being obtained for only 37 stations, coveiing
a total period of but 148 days. As the current varies from place
to place to a much greater extent than the tide, a measurement at
one place supplies information for that place only.
Forecasts of the rise and fall of the tide appear m annual tide
tables. Tide Tables, Atlantic Ocean, 1939, prepared during the year,
o-ives daily predictions for 55 reference stations including the 6 new
stations: Tampa Bay, Fla.; Surinam River Entrance, Surinam; Per­
nambuco, Brazil; Takoradi, Gold Coast; and Flushing and Hook of
Holland, Netherlands. A table of differences is available for obtain­
ing predictions for about 2,400 other places. Tide Tables, Pacific
Ocean and Indian Ocean, 1939, contains daily predictions for some
1 800 other places. Predictions for Port Phillip, Australia, were
substituted for those for Melbourne and exchanges of tide predictions
were continued with England, Germany, France, Canada, India, and
the Netherlands.

148

REPORT OF T H E SECRETARY OF COMMERCE

Advance information regarding the velocity and direction of thecurrent is made available in two annuals: Current Tables, Atlantic
Coast, 1939, and Current Tables, Pacific Coast, 1939, both prepared!
this year. The tables of daily predictions for these publications were
typed in the Bureau on a special machine for photographic repro­
duction, at a saving in printing costs of over $1,500. The logical
program to reproduce all of the material in the tide and current
tables by the photo offset process is being accomplished as rapidly:
as available personnel permits.
A special publication on currents was issued, giving detailed results
of current surveys in St. Johns River, Savannah River, and Inter­
vening Waterways.
A Manual of Current Observations, prepared for Bureau work, is
also of value to engineers engaged on problems involving measure­
ments and analyses of tidal currents.
Compilations of tidal bench marks for Florida and New Jersey,,
and information concerning those connected during the recent tide
and current survey in Los Angeles and Long Beach Harbors, were
published. Considerable progress was also made on a revised edition
of Tidal Bench Marks, State of Washington, omitting the Columbia
River area in Oregon and Washington, to be covered by a separatepublication.
_Tide notes were prepared and verified for 208 charts and descrip­
tions and elevations of 967 bench marks were furnished for use im
hydrographic, geodetic, and other engineering work.
MAGNETIC WORK

With the increasing use of the airplane as a means of trans­
portation over land and sea, magnetic data assume new importance,,
since the magnetic compass is the controlling directional guide in
all aircraft. Each airport should have a magnetic station with;
necessary auxiliaries for testing the airplane’s compass. At present:
the Bureau has made observations at only five or six airports.
There are many large areas in mountainous regions where the decli­
nation has not been observed, where pilots have reported areas of
local attraction, which should be investigated by making additional!
magnetic observations.
The needs at sea continue equally important. Owing to the lack
of proper equipment, such as _nonmagnetic ships, this Bureau is
now without sufficient data to give reliable magnetic information for
some of the charts. In fact, there have been no observations along
our coast lines in this country and Alaska since 1928.
The never-ending demand for magnetic information has been met
through correspondence, by publications, by furnishing original or
photostatic copies of records, and by broadcasts of magnetic infor­
mation originating within the Bureau. During the year, the follow­
ing publications have been issued: Uses of Magnetic Stations, Mag­
netic Decimation in Arkansas in 1935, and United States Magnetic
I ables and Magnetic Charts for 1935. The facilities of the comput­
ing office in New York City, employing Works Progress Adminis­
tration personnel, supervised by regular Bureau personnel from the

149

COAST AND GEODETIC SURVEY

Washington office, have made it possible to make some headway with
the preparation of observatory reshlts for publication.
The distribution of magnetic observations during the year is shown
by the following table :
Stations
Repeat

Place

Declina­
tion only

New

Old

Other
declina­
tion
stations
37

37

7

7

1

I

1

1

1

42

1
2
10
4
17
7

6

Total.......................................................... - ...............

4

2

5

Total

134

1
1
42
1
1
3
3

2
10
1
1
4
1
17
7

6

145

SEISMOLOGIC WORK

The seismological work of the Bureau properly deals with fur­
nishing data needed for the solution of practical problems. Earth­
quakes are located and described by collecting and analyzing non­
instrumental and instrumental reports received from many sources.
Instruments are maintained in readiness to obtain records of de­
structive earthquake motions so essential in connection with the
design of earthquake resistant structures. For the same reason the
natural vibration periods of buildings and other structures and o
the ground have been determined, and ground-tilt measured, Meas
urement of crustal changes by geodetic methods is described elseWlThe ^lstormental data for locating earthquakes are obtained from
a number of seismological observatories, of which the Bureau op;
erates 4 directly: San Juan, P R.; ^ lcsorr, Anz ; S tk a A l^ka
and Ukiah, Calif, (at the International Latitude Station). bix otne
observatories are operated on a cooperative baasj and a number of
independent stations make their records avadable Many o± these
records are furnished various organizations for special studies.
Immediate interpretations of the instrumental lecoids are fur
nished by many stations, so that epicenters are located immediately
for all important earthquakes, m cooperation with the Jesuit Sois
mological ^Association and Science Service This Preliminary form ation'is of interest to the public and useful to individual
; stations.

150

REPORT OF T H E SECRETARY OF COMMERCE

Information regarding earthquakes and related matters appears
- °a kuOetins and in the annual series of publications entitled
United States Earthquakes.” Intensive questionnaire coverage was
obtained in the case of 27 earthquakes. More than 2,200 noninstrumental reports on earthquakes were received, covering approximately
450 earthquakes.
y
Recording of strong motions continued in California, Nevada,
Montana, and Panama, and new stations were established at Boulder
Dam. Fifty-one instruments were operated in California, 4 in Ne­
vada, 4 in Montana, 1 in Panama, and 3 at Boulder Dam, and 2
instruments were held in reserve at Washington, D. C., and 1 at
Chicago.
Tests of accelerographs on a shaking platform at the Massachu­
setts Institute of Technology, to appraise instrumental performance
and methods of analysis, are still under way. Important conclu­
sions have already been reached.
Twenty-one vibration tests were made in 3 buildings, and 61
ground tests at 51 locations. Shaking table tests were made on 12
instruments, supplying 730 test records. At the close of the year
plans were under way to make ground vibration observations for
the Navy in the San Francisco Bay area.
Three tilt meters were kept in operation with the cooperation of
the University of California, and 1 used for experimental work.
« tt

PERSONNEL AND FINANCES

With a personnel of 1,135 on June 30, 1938, 345 were on duty in the
Washington office (18 commissioned and 327 civilian), and 790 in the
field service (158 commissioned and 632 civilian). The civilian em­
ployees in the field included 435 seamen and 127 hands, of which
number 51 civilians on duty at the Manila office and 50 members of
the crew of the ship Fathomer are paid by the Philippine insular
government but under the jurisdiction of this Bureau.
The library and archives acquired during the year 114 hydrographic and 102 topographic sheets, representing new Bureau sur­
veys. Other additions were 1,089 blueprints (mostly surveys by
Army Engineers); 2,719 maps; 1,345 charts; 7,096 field, office, and ob­
servatory records; 250 negatives; 609 prints; 251 lantern slides: 898
books; and 3,819 periodicals.
Collections on account of the sale of nautical charts and other
publications, deposited in the Treasury Department to the account of
miscellaneous receipts, totaled $109,871.32, as compared with $109,659.29 during the preceding year.
The regular appropriations for the year totaled $2,649,400. These
were supplemented by the following additional appropriations:
Transfer from Salaries and Expenses, Soil Conservation Service
(transfer to Commerce), 1938, $74,450; Working Fund (War, Flood
Mississippi River and Tributaries), $8,500; Working F u n d ’(Navy’
Maintenance, Yards and Docks), 1938, $1,2000; and an allotment from
the Department of Commerce for travel of $22,830.

COAST AND GEODETIC SURVEY

151

Disbursements during the year ended June 30, 1938, totaled
$2,677,085.83, distributed among the various appropriations as
follows:
Party expenses, 1936-------------------------------------------------------------------$180.20
Repairs of vessels, 1936----------------------------------------------------------90.00
Pay, etc., officers and men, vessels, 1936------------------------------------158.92
Pay and allowances, commissioned officers, 1936------------------------403. 23
Party expenses, 1937__________________________________________
86,193.20
Repairs of vessels, 1937----------------------------------------------------------12, 982. 77
Pay, etc., officers and men, vessels, 1937----------- r.-----------------------102,950. 02
Pay and allowances, commissioned officers, 1937------------------------74,171.11
General expenses, 1937------------------------------------------------------------27,904.42
Maintenance of air navigation facilities, 1937---------------------------6,412.32
Salaries, 1938------------------------------------------------------------------------586, 447. 06
Field expenses, 1938----------------------------------------------------------------372, 582.49
Repairs of vessels, 1938----------------------------------------------------------55,483.24
Pay, etc;, officers and men, vessels, 1938------------------------------------- 453, 792. 73
Pay and allowances, commissioned officers, 1938-------------------------708, 544.14
General expenses, 1938-------------------------------------------- ----------------48,464. 27
Aeronautical charts, 1938-------------------------------------------------------97,474.55
National Industrial Recovery, 1933-39-------------------------------------3, 579.19
Working Fund, Commerce, O. and G. Survey (Hospital and Domi­
ciliary Facilities and Services, V. A .) ------------------------------------516. 77
Salaries and Expenses, Soil Conservation Service (transfer to Com­
merce, C. and G. Survey, Act of Apr. 27, 1935), 1937_-------------1,005.37
Salaries and Expenses, Soil Conservation Service (transfer to
Commerce, C. and G. Survey, Act of Apr. 27, 1935), 1938---------43,943.72
Traveling expenses, Department of Commerce, 1938-------------------11, 031.33
Working Fund, Commerce, C. and G. Survey (War, Flood Control,
Mississippi River and Tributaries)----------------------------------------2,774.78
Total___________________________________________________ 2,677,085. 83

BUREAU OF M ARINE INSPECTION AND NAVIGATION
INSPECTION DIVISION

I t is the responsibility of this Division to administer the inspec­
tion laws and to pass on the safety and seaworthiness of all vessels
subject to inspection. I t is comprised of an administrative staff in
Washington headed by an Assistant Director, and 48 boards of local
inspectors located in the continental United States and the Terri­
tories of Puerto Rico, Hawaii, and Alaska. Under the inspection
laws, the United States is geographically divided into 7 supervising
inspection districts, each presided over by a supervising inspector.
These supervising inspectors are authorized by statute to meet as a
board once a year and with the approval of the Secretary of Com­
merce to promulgate necessary regulations governing the construc­
tion, equipment, operation, and manning of vessels subject to inspec­
tion. The rules and regulations thus promulgated are administered
and enforced by this Division.
During the fiscal year ended June 30, 1938, the field inspection
force consisted of 94 local inspectors and 301 assistant inspectors.
The Washington staff consisted of 10 principal traveling inspectors,
1 traveling inspector, 2 nautical experts, and a varying number of
clerks. The personnel of the Division, both at Washington and in
the field, is still insufficient to enable it properly to carry out its
varied and complex responsibilities. Additional inspectors are
needed, together with administrative and clerical assistants, in order
that proper attention can be given to the multitudinous details which
arise in connection with the inspection activities and to meet the de­
mands of the industry for certificated ship personnel. _
During this fiscal year the Civil Service Commission in conjunc­
tion with the Bureau, conducted a study of the duties and responsi­
bilities performed by local and assistant inspectors. The reports
submitted as a result of this personnel survey, recommended a clas­
sification of the offices of local inspectors based on the volume and
complexities of the duties performed in the respective ports and a
reallocation of all positions to higher classification grades. Addi­
tional funds were appropriated by Congress for the fiscal year 1939
with which to put the reclassification scheme into effect as of July 1,
1938. Congress, by this action? has made it possible to raise the
standards of pay throughout this service to a level where they will
be comparable with those received by employees in other branches of
the Government engaged upon work of a similar nature. I t is be­
lieved that the effectiveness of this raise in grade and pay will stimu­
late the morale of a very efficient corps of inspectors and will make
the service more attractive to highly qualified men who are desirous
of entering the Government service.
153
108928— 38—— 13

154

REPORT OP T H E SECRETARY OP COMMERCE

.

During the fiscal year 1938, the problems of the Inspection Divi­
sion have been primarily those dealing with the enforcement of reg­
ulations promulgated during the past 2 years which became effective
«during that time. During the fall of 1937, it became necessary to
take drastic action to enforce compliance with the provisions of the
regulations requiring automatic sprinkler systems and other addi­
tional fire-protection equipment aboard passenger vessels. This reg­
ulation issued under the provisions of Public 712, enacted by the
Seventy-fifth Congress, restricted the sailing of those vessels which
had not complied by October 1, 1937. To this end it was found
necessary to revoke the certificates of several large passenger ves­
sels in order to prevent them from operating as passenger vessels.
The Division was also actively engaged in checking the compliance
of all American passenger vessels affected by certain provisions of
the International Convention for Safety of Life at Sea which provi­
sions had been included in the General Rules and Regulations of
the Board of Supervising Inspectors and approved by the
Department.
The checking of vessels for compliance with subdivision and
stability requirements, particularly vessels navigating lakes, bays,
and sounds, and the Great Lakes has progressed satisfactorily. These
new safety requirements were promulgated as regulations by the
Board of Supervising Inspectors at their January meeting.
Inspection of tank vessels under the new rules promulgated Novem­
ber 10, 1936, was actively continued and it was found necessary to
.-amend these rules in the light of a year’s experience. These amend­
ments were promulgated and appeared in the form of Supplement
Ï of the Rules for Tank Vessels under date of November 18, 1937.
The Division has, during the year, laid great stress on more inten­
sive drilling and instruction of the crews of passenger and excursion
■vessels. This intensive drilling by local and assistant inspectors at
:regular inspections and reinspections of passenger vessels together
with the frequent detailed drills and inspections conducted by the
traveling inspectors has resulted in a more efficient working organi­
zation of the masters, officers, and crews. The Division has endeav­
ored also to coordinate the activities of the personnel aboard inspected
vessels with the whole program of maritime safety by thoroughly
training the officers and crews in the handling of all types of equip­
ment. This training has raised the morale of all ships’ personnel
and has resulted in the crews becoming “safety conscious.” The
safety record which has been maintained throughout the past 3 years
is due largely to the fact that masters, officers, and crews of Ameri­
can vessels have learned that eternal vigilance on their part is the
price of safety. One example of this was brought out when the ex­
cursion boat Mandalay collided with the passenger steamer Acadia
in lower New York Harbor, under conditions having all the poten­
tialities of a major disaster. The seamanship and judgment dis­
played by the officers and crews of these two vessels Avas such as to
meet with Nation-wide acclaim.
The Division has continued its work on revision of the ocean and
coastwise regulations. This work has been delayed owing to the
necessity of carefully examining Senate Report No. 184, and considtering the regulations prepared by the Senate Technical Committee

BUREAU OF M ARINE IN SPECTIO N AND NAVIGATION

155

for Safety at Sea. At the close of the year these regulations were in
fairly smooth form but were being reviewed by officers of the Bureau
to determine policy in regard to their application to existing vessels.
Losses experienced by maritime nations throughout the world indi­
cate that fires in cargo predominate. The increasing diversity of
cargoes and the shipment of thousands of types of packaged chemi­
cals, plastics, complicated mechanisms of various types which con­
tain dangerous elements or properties, make the problem of reason­
able and suitable regulations exceedingly difficult. Notwithstanding
the difficulties of the problem, the need for concise regulations has be­
come increasingly evident to all maritime nations of the world, and
thus the Division has continued its work in the preparation of rules
and regulations in the elimination of the hazards caused by the
carriage of so-called dangerous cargoes.
These regulations are now receiving the scrutiny and criticism of
other Government agencies, including the Interstate Commerce Com­
mission. The Bureau of Explosives also has the subject under con­
sideration. The National Bureau of Standards, as the official testing
laboratory of the Bureau of Marine Inspection and Navigation, has
been called upon to conduct a large number of investigations and
tests to clarify questionable rulings and furnish a sound basis of
fact. In drafting these regulations the Division has endeavored to
provide clear, simple, and adequate rules properly coordinated with
existing rules of other regulatory agencies ashore. Placed in the
hands of stevedores, masters, and mates, these regulations will pro­
vide a ready means for determining the proper stowage and handling
of such cargo.
In order to assure a more thorough training of the officers and
•crews in the use of various types of respiratory apparatus, such as
oxygen breathing apparatus, gas masks, and the accessory safety
lamp, a principal traveling inspector was sent to the Pittsburgh
•School of Mines to pursue the thorough course of instruction pro­
vided there. Upon completion of this course, the inspector made a
tour of the field inspection offices, instructing local and assistant
inspectors, officers, and crews of vessels, and other interested persons,
in the use of this most important equipment.
At the close of the year nearly all inspection personnel have
received this instruction, and are now better prepared to drill crews
in the use of the breathing apparatus. I t has been found that in
order to secure the efficient use of respiratory apparatus of this char­
acter, a full knowledge of its functions and operations is necessary
to give the wearer the proper confidence and the consequent ability
to take prompt action in time of emergency.
In the case of all regulations, it is rapidly becoming the policy
of the Division to advise the industry in advance of the proposed
regulations and if necessary invite them to participate in a prelimi­
nary conference. This procedure has been followed several times
during the year in matters concerning large groups of vessel opera­
tors and it has been found to work well as it aids in clarifying mis­
understandings and speeds enforcement.
During the year the Division worked on a compilation of all rules
:and regulations contained in supplements, circular letters, and Bureau
bulletins published since March 1931. It was published under date

156

REPORT OP T H E SECRETARY OP COMMERCE

of May 28, 1938, as supplement I to 1931 edition of the General Rules
and Regulations, including rules I and I I as appearing in the Fiftyfirst supplement. Supplement I is a compilation of material con­
tained in monthly bulletins, circular letters, and the material con­
tained in five different supplements issued since 1931. The avail­
ability in one volume of all amendments to the rules and regulations
has materially aided the inspectors in the administration and enforce­
ment of the- regulations and has assisted the industry to determine
just what is required according to law.
The Board of Supervising Inspectors at its annual meeting in Jan­
uary 1938 passed regulations amending the boiler rules in regard to
grades of steel for various marine uses. The most important and
far-reaching regulation promulgated was in regard to the subdivi­
sion and stability of new and existing passenger vessels navigat­
ing the Great Lakes and lakes, bays, and sounds. This regulation
will place passenger vessels on such waters on a par with those navi­
gating ocean and coastwise waters in the matters of watertight
subdivision and minimum stability.
During the year there were three executive committee meetings
of the Board of Supervising Inspectors. The first held on October 11,
12, and 13, 1937, was called for the purpose of promulgating supple­
ment I to the Rules For Tank Vessels. This meeting was pre­
ceded by a public hearing to which all interested tank vessel opera­
tors were invited. The second executive committee meeting was held
on March 15, 1938, primarily for the purpose of approving various
life-saving and fire-fighting equipments. The third executive com­
mittee meeting was held on May 24, 1938. At this meeting many
regulations were passed which had been prepared and recommended
by the Department working in conjunction with the Bureau in the
recodification of laws and regulations.
P R IN C IP A L TRAVELING INSPECTORS

During the fiscal year, the principal traveling inspectors of the
Bureau traveled a total of 162,896 miles of which 14,848 were at sea.
They inspected, during this period, 514 passenger vessels of 1,974,950
gross tons; 35 of these vessels with a gross tonnage of 152,650 were
inspected at sea. They also inspected 93 tank ships of 151,556 gross
tons; 185 tank barges of 67,683 gross tons; 9 freight ships carrying
oil as part cargo with a gross tonnage of 42,329; 24 freight vessels
with a total of 117,441 gross tons; and 183 special and miscellaneous
inspections aggregating 1,385,065 gross tons.
LOCAL IN SPECTORS

The Bureau’s staff of inspectors examined 1,267 cargo vessels which
desired to carry persons in addition to the crew; and reinspections
were made numbering 2,962. For other Government services, they
inspected 180 vessels and 1,958 stationary boilers. They also made
special examinations on 14,677 vessels and 3,185 dry docks. I t was
found necessary to withdraw or refuse certificates of inspection in
186 cases.
Marine boilers in the number of 9,491 were inspected, of which 34
were condemned for further use. They tested 3,291 boiler plates
and found it necessary to reject 105 of these.

BUREAU OF M ARINE IN SPECTIO N AND NAVIGATION

157

In accordance with the practice of testing certain equipment at the
factories, the Bureau’s staff inspected 16,467 life preservers, rejecting
356; 482 life boats; 14 life rafts; 172 sets of boat davits; 11,605 ring
buoys, rejecting 51; 111 wood floats; and 26,209 flare signal
cartridges.
LAW ENFORCEMENT AND R EV IEW DIVISION

During the year this Division has considered applications and
petitions for relief from statutory penalties incurred by owners, op­
erators, masters of vessels, and other persons for violations of the
navigation and inspection laws. I t has also continued its usual task
of interpreting these laws, drafting new legislation, and reporting
on bills introduced in Congress which relate to or affect navigation
problems; has issued instructions to collectors and other officers of
customs charged with enforcement of law and performance of duties
under the supervision of this Bureau; and generally instructed the
field service in connection with their duties. _Also has prepared va­
rious regulations for the enforcement of navigation laws, as author­
ized by statute.
. ,
.
All regulations issued prior to June 30,1938, were codified for pub­
lication in the Federal Register, as was required by statute and
Executive order. No other regulations promulgated prior to that
date will hereafter have any force or effect.
The review of all investigations of marine casualties and accidents,
as well as cases of alleged negligence, incompetence, and misconduct
on the part of officers and seamen was accomplished m this Division.
The patrol fleet has been engaged in enforcement of navigation and
inspection laws, and in the patrolling of marine regattas.
M A R IN E IN V EST IG A TIO N BOARDS

As was reported in the annual report for the fiscal year 1937, the
Seventy-fourth Congress established a new procedure for the investio-ation of all marine casualties and accidents or any violation of any
provisions of Title L II or any rules promulgated thereunder, and pro­
vided for the subsequent trial of all licensed and certificated person­
nel, if there is sufficient evidence of misconduct, inefficiency, or negligence. This legislation also provided for the establishment of three
classes of boards whose duty it is to take jurisdiction of and investigate all marine casualties depending upon the gravity of each case.
These boards have functioned since August 27, 1936’.
From June 30, 1937, to June 30, 1938, 2,794 marine casualties, cases
of negligence and incompetence, and misconduct on the part of
licensed and unlicensed personnel on vessels of the United States
were investigated.
.
,
,
Casualties involving loss of life are investigated by a board con­
sisting of a member of the Department of Justice, learned m mari­
time law, a member of the United States Coast Guard, usually^ of
the rank of captain or commander, and a United States supervising
inspector of the Bureau of Marine Inspection and Navigation. Dur­
um the fiscal year 1938, there was but one passenger life lost due to
casualty on inspected vessels of the United States merchant marine.
This occurred on July 29, 1937, when the S. S. City of Baltimore
was burned just east of Seven Foot Knoll below Baltimore m Chesa­

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REPORT OP T H E SECRETARY OP COMMERCE

peake Bay. This vessel was a bay steamer which made voyages from
Baltimore, Md., to Norfolk, Ya. There were 140 other investigations
involving loss of life, which disclosed that there were 74 natural
deaths, passengers and crew; 58 accidental drownings not involving
culpable negligence on the part of the ship or personnel; and 44
disappearances, the surrounding circumstances of which indicated
that the parties had committed suicide.
During the year there were 209 marine casualties of a serious na­
ture investigated by the “B” Marine Investigation Boards. These
boards consist of a supervising inspector of this Bureau, who acts as
chairman, and two principal traveling inspectors attached to the field
service of the Bureau of Marine Inspection and Navigation. The
greatest loss sustained by the United States merchant marine, and
which was investigated by one of these boards, was the loss of the
S. S. President Hoover off the Island of Hoisho To on the night of
December 10, 1937. The S. S. President Hoover was proceedingdown the east coast of the Island of Formosa when she stranded.
The cause of her loss, as ascertained by investigation, was primarily
the navigation of the vessel at virtually full speed in circumstances
where the visibility was low and the position of the ship uncertain.
The major portion of marine casualties and accidents investigated
are of a minor nature, and these are investigated by personnel at­
tached to the field service of the Bureau of Marine Inspection and
Navigation. The boards which investigate these casualties and ac­
cidents are known as “C” Marine Investigation Boards. There were
also 2,440 minor marine casualties, acts of negligence, incompetence,
and misconduct investigated during the year.
Among cases investigated by “C” boards were many involving
disputes arising between masters and personnel of ships, and alleged
violation of law on their part. A number of officers and seamen had
licenses and certificates of service suspended or revoked as a result of
these investigations. Shipowners, masters, and vessel personnel have
learned that the Bureau will at all times expect and require ob­
servance of the laws applicable to the subject of the dispute. I t is
believed that this procedure has done much toward securing efficiency
in the manning and operation of our merchant marine. This attitude
of the Bureau has apparently tended to reduce greatly the number
of disputes heretofore occurring between operators and owners and
the crews of American vessels. Throughout the year great interest
has been shown in the functioning of the “C” boards in investigation
of alleged misconduct on the part of the ships’ personnel in staeino“sit-down” strikes.
b
In the last year 100 certificates were suspended and 6 revoked. In
this same period 144 licenses of officers were suspended and 6
revoked.
F IN E S , P E N A L T IE S , A ND FO RFEITU RES

Hie Law Enforcement and Review Division reviews and considers
reports and petitions for relief submitted to the Secretary of Com­
merce in all cases of violations of navigation laws occurring on the
navigable waters of the United States or within admiralty or mari­
time jurisdiction of this country. The activities of the Bureau’s
patrol fleet and other agencies result in the report to this Division of

BUREAU OE MARINE IN SPECTIO N AND N A V IG A TIO N

159

a large number of violations, necessitating consideration of petitions
filed for mitigation and remission. While the fines reported run into
large figures, the attitude of the Department has been directed to a
continuing and progressive education of the operators to equip arid
operate their boats with due regard to safety, and m considering miti­
gation and remission of penalties, a liberal attitude m this respect
licis been t^tken»
•
The historic policy of Congress has always protected our domestic
shipping from inroads of foreign competition. In the enforcement
of laws relating to coastwise transportation of cargo and passengers,
the Bureau has been exacting in seeing that these statutes are
eilB treason of the comparatively recent enactments relating to the
manning and inspection of vessels, an increasing number of viola­
tions are being reported. Of necessity, the Division has felt the im­
pact of this increase. The aggregate of all violations reported during
the year numbered 16,719.
COLLECTION OF FEE S A ND DU TIES

During the year the Law Enforcement and Review Division has
supervised the collection, through collectors of customs, of
360.20 in tonnage duties imposed upon vessels entering ports ol the
United States from foreign countries; also $186,318.48 m navigation
fees. The Bureau has considered petitions of shipowners and oper­
ators for refunds of tonnage taxes allegedly illegally or erroneouslycollected by collectors of customs.
PATROL F L E E T

The patrol fleet maintained by the Bureau consists of three ves­
sels: the Siwash, Navigation, and Tyrer, and two 18-foot launches.
The three patrol vessels are operated continuously throughout the
year on the Atlantic and Gulf coasts. One of the two launches,
is assigned the district comprising the entire Mississippi River basin.
The other is working in Pacific coast ports. The personnel ot the
vessels is engaged in the enforcement of the navigation laws; par­
ticularly, the Motorboat Act, the Numbering Act, and the Tanker
Act. These boats have been of material assistance to the local in­
spectors in enabling them and their assistants to reach larger num­
bers of vessels under their jurisdiction. Examination of tank vessels having on board inflammable or combustible liquids in bulk hasoccupied much of the time of the fleet.
.
Out of a total of 9,629 inspections made by the patrol fleet, 6,021
violations were reported, and in addition, other enforcement officers
reported 10,698 violations.
S H IP MORTGAGE ACT

The Bureau is charged with the administration of the Ship Morto-ao-e Act which provides for the recording of all mortgages on ves­
sels of the United States and the endorsement on the vessels docu­
ments of all preferred mortgages. I t is necessary that the owner of
every vessel prior to its documentation under the laws of the

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REPORT OF T H E SECRETARY OF COMMERCE

United States, and upon every change in ownership or change in
home port, designate a home port for the vessel which must be ap­
proved by this Bureau before such designation may become effec­
tive. After such approval by the Bureau, the records of that vessel
are maintained at the home port so designated ; permanent docu­
ments are issued from that port; bills of sale, mortgages, and all
other documents affecting the title of the vessel are recorded in the
office of the collector of customs at that port. During the fiscal
year 1938, there were approved 7,956 such home port designations
as compared with 7,156 approvals during the preceding year.
PASSENGER ACT

The Law Enforcement and Review Division also is responsible for
the administration of the Passenger Act of 1882 which contains cer­
tain provisions for the accommodations for steerage passengers. Ves­
sels entering ports of the United States from foreign countries, hav­
ing on board steerage passengers, are supervised by customs inspec­
tors who see that these provisions are complied with. The purpose
of the act is to look after the welfare, health conditions, food, separation of the sexes, and care in case of illness of future citizens of
our country. During the fiscal year 1938, there were 794 voyages
naade involving 154,787 steerage passengers. Although the number
of voyages on which steerage passengers were carried diminished
somewhat this year over last, nevertheless the number of passengers
so carried increased more than 14 percent.
PR E V E N T IO N OP OVERCROWDING

Under the provisions of Revised Statutes 4464, the local inspectors
shall state m every certificate of inspection granted to vessels carrying passengers, other than ferryboats, the number of such passengers
which may be carried with safety. To prevent these vessels taking
on passengers in excess of the number so fixed this Bureau employs
temporary navigation inspectors and designates certain other em­
ployees to count the passengers so carried. During the year these
inspectors made counts of passengers embarking on such vessels and
in a number of instances prevented additional persons from board­
ing the vessels, the limit of safety having been reached.
N U M B E R IN G OF MOTORBOATS

. ° n June 30, 1938, there were numbered 221,546 motorboats. This
is an increase of 38,920 during the year. It must be borne in mind
however, that this increase does not represent in its entirety new
building, for the reason that for the past 2 years the motorboats of
the United States were being renumbered, and in many outlying
districts the renumbering process proceeds very slowly.
MOTORBOAT ACT

I t has been the opinion of the Bureau for some time that the
present Motorboat Act, which was approved June 9, 1910, and which
has not since been amended, is in many respects unsatisfactory. I t
apparently imposes an undue burden on the owners of small boats

BUREAU OF MARINE IN SPECTIO N AND NAVIGATION

161

and does not set forth the requirements which are necessary and
proper for the safety of life and property on the larger boats, lo
correct this situation the Bureau made a very comprehensive study
which resulted in the preparation of new legislation repealing the
old act. Before submitting the bill, the Bureau obtained the views
of representatives of motorboat organizations, boat and engine manufacturers, owners and operators of commercial craft, and others
concerned, and it is believed that the bill fairly expresses the con­
sensus of opinion as to necessary legislation. The proposed bill sub­
mitted by the Bureau was transmitted to Congress on December 18,
1937, and was thereafter introduced in both Houses. This bill, with
minor amendments, was passed by the Senate, and was the subject
of hearings before the House Committee on Merchant Marine and
Fisheries, which were not completed prior to adjournment of
Congress.
t e c h n ic a l d iv is io n

The organization of this Division was authorized by the act
approved May 27, 1936, and has been functioning a little more than
2 years. The Director* of the Bureau is required to approve all plans
and specifications for the construction of new or major alterations
to existing passenger vessels of the United States of 100 gross tons
and over propelled by machinery. No such vessel may have a cer­
tificate of inspection issued to it by a board of local inspectors until
the plans have been submitted and approved by the Director before
construction or alteration is commenced. The Division is comprised
of the naval architecture subdivision, load line, hull, and admeasure­
ment section; the marine engineering subdivision; and the electrical
engineering subdivision. Each subdivision is in charge of and T im e tions under the supervision of a naval architect, a marine and an­
electrical engineer, respectively.
NAVAL A R C H ITE C T U R E SUBDIVISION

Hull section.— It is the function of this section to examine plans
and specifications for the building or alterations of all types of ves­
sels subject to inspection by the Bureau, their life-saving equipment
and appliances, fire-detecting and extinguishing equipment, and other
equipment and appliances for ships. The work also includes stability
tests, investigations into floodability and stability, answering ques­
tions submitted of a technical nature, and preparing all correspond­
ence relative to the foregoing.
During the fiscal year ended June 30, 1938, plans and specifications
for 114 new designs, representing 136 new vessels, were examined. In
each instance plans for the arrangement of the passenger and crew
accommodations, the adequacy of means of escape, the number, size,
and type of lifeboats and other life-saving equipment, and arrangexnent of means for launching them, the strength of structural memhers, the extent of fireproofing, the type and size of fire-detecting and
extinguishing apparatus, the watertight integrity of the vessel, and
stability characteristics were checked to determine compliance with
existing laws and regulations.
In addition to the new designs enumerated above, plans tor ldb
distinct types of vessels, covering approximately 230 barges, were

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REPORT OF T H E SECRETARY OF COMMERCE

examined to determine their strength and compliance with the
Bureau’s rules.
Plans for conversion or alteration of 270 existing vessels were sub­
mitted and appropriate action taken and investigations of subdivi­
sion and damaged stability of existing passenger vessels were con­
tinued. Subdivision load lines were assigned to 103 vessels.
All mechanically propelled ferry vessels on the Great Lakes, bays,
sounds, and lakes other than the Great Lakes, and on the rivers will
be required to meet a one-compartment standard of subdivision by
January 1, 1939. _ Preliminary investigations dealing with the sub­
division and stability of the numerous vessels of this class have been
made pursuant to the placing of this additional .requirement into
effect. The large number of vessels subjected to compliance with this
regulation, together with the increased work incident to the approval
of plans and specifications submitted for the construction of new ves­
sels, has increased the work of this section to such an extent that the
present personnel is inadequate to keep it current. Funds for the
appointment of additional naval architects should be provided to
facilitate this work.
Inclining tests were conducted on 95 vessels and calculations made
to determine the stability available. Where plans were not available,,
the vessels were measured while in drydoclt and plans were drawn
from which the calculations could be made. Whenever stability was
found to be inadequate, ballast was ordered installed, or other steps
taken, to insure satisfactory operating conditions. In a number of
cases calculations were made to determine the effect of alterations on
the stability of existing vessels, and appropriate action was taken to
see that the proper margin of safety was present.
This section also cooperated with the Inspection Division by assign­
ing representatives to work with principal traveling inspectors in the
collection of actual data from 23 representative passenger vessels for
use in drafting new regulations regarding sanitary conditions, venti­
lation, light, heat, arrangement, etc., of crews’ quarters. In addition,
its personnel assisted the National Bureau of Standards conduct stand­
ard laboratory tests of various fire-resisting materials proposed for
use in vessel construction. These tests are being conducted in accord­
ance with proposed regulations as drafted by the Senate Technical
Committee for Safety of Life at Sea in Senate Report 184.
Approximately 300 pieces of equipment such as life preservers
buoyant apparatus, fire extinguishers, etc., were tested by, or under
the supervision of, this section to insure compliance with Bureau
regulations. Plans covering the arrangement of mechanical means
for lowering lifeboats, on practically all passenger boats required to
be so fitted, have been examined. In connection with this work de­
tailed plans covering the construction of a number of boat winches
have been examined and 21 types approved for installation as com­
plying with Bureau requirements.
Work has been completed on fire-detecting and extinguishing sys­
tems on all existing vessels. Those not having the necessary equip­
ment on board have been taken out of service altogether or placed in
restricted service.
r
Admeasurement section.-—The tonnage of a vessel is shown on her
document, On the basis of her computed tonnage, canal tolls, wharf­

BUREAU OF MARINE IN SPECTIO N AND NAVIGATION

163

age, dockage, pilotage, tonnage taxes, and other navigation fees are
^D u rin g the fiscal year, 1,883 vessels, aggregating 463,064 gross
tons, were admeasured for documentation. Applications for 452
readmeasurements, totaling 525,665 gross tons, were reviewed and
approved if found correct; otherwise corrections were made and ap­
propriate instructions issued.
.
,
•
In determining the tonnage of a vessel it is necessary to examine
and check the blueprints and admeasurement figures submitted for
each admeasured vessel and to make such calculations and adjust­
ments of these figures as may be necessary to determine allowable
space. In the case of new construction the complete plans of a vessel
are required to be checked, whereas m the case of structural altera­
tions and rearrangements of space in existing vessels only t
plans affected by the change are checked. _
.
Special appendix to Certificates of Registry, showing the tonnage
of spaces exempt under our laws, but not so treated in foreign coun­
tries, were issued to 19 vessels. This procedure is followed in cases
where domestic ships are engaged m foreign trade. Under the ad­
measurement laws certain spaces are excluded from tonnage, where­
as under foreign admeasurement laws these spaces are not so ex­
cluded ; and therefore, to place vessels of American registry on a par
with foreign vessels, for tonnage tax purposes, adjustments m legis
tered tonnage, both gross and net, are made.
Panama Canal Tonnage Certificates were issued to 95 vessels hav­
ing an aggregate of 760,134 gross tons and Suez Canal Special
Tonnage Certificates were furnished 21 vessels, the total ot which
amounted to 17L723 gross tons.
.
.
, AT •
While the Director of the Bureau of Marine Inspection and JNavio-ation is charged with the supervision of the admeasurement laws,
riie field work is performed by some 120 employees of the treasury
^LoaiT line section.—Amendments to the Foreign Trade and the
Great Lakes Load Line Regulations and established Special Service
regulations for determining the position of load lines on steam col­
liers, tugs, barges, and self-propelled barges when engaged on limited
coastwise voyages were approved by the Department under date ot
September 28, 1937. Regulations determining the position ot subdi­
vision load lines applicable to passenger vessels, required by the In ­
ternational Convention for Safety of Life at Sea and by the Coast­
wise Load Line Act, 1935, were also approved during this fiscal
year. These regulations affect all vessels of 150 gross tons anil over
engaged in coastwise voyages by sea and on the Great Lakes, t hese
regulations and those formerly in effect have been combined and reprinted in a single volume for ready reference.
.
Canadian regulations for Great Lakes vessels were determined
to be equally as effective as the United States Great Lakes regula­
tions, with the exception of the omission from the Canadian regula­
tions of subdivision load lines for passenger vessels.
All the load line regulations, as revised, were prepared tor inclu­
sion in the Code, according to the rules outlined by the Codification
Board.

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REPORT OE T H E SECRETARY OF COMMERCE

Suggested amendments for bringing the Load Line Act of March 2,
1929, into conformance with the International Convention and the
Coastwise Act, 1935, were approved by the Department and presented
for congressional action.
The waters of Apalachee Bay, Fla., lying north of a line drawn
58 _ true from Lighthouse Point on St. James Island to Gamble
Point on the east side of the entrance to the Aucilla River, were
designated as inland waters and publication thereof was included
m the Federal Register of June 23, 1938.
A survey has been made of the Great Lakes, Eastern, and Gulf
Coast ports for the purpose of ascertaining the necessary steps that
should be taken to improve the enforcement of the various load line
acts. During this survey, oral advice as to load line enforcement
was presented to the Customs and Coast Guard officials and also to
the local inspectors of the Bureau.
The Board of Trade, London, requested the Department’s inter­
pretation or Rule LNV of the International Load Line Convention
of 1929. A meeting of the surviving available members of that
convention was held to determine, if possible, the intention of the
convention. As a result, the opinions of the meeting were presented
to the Department and, after approval, incorporated in a reply to
the Board of Trade and later promulgated in Bureau Circular Letter
No. 210.
fiscal year 587 vessels were marked and certificated
with load lines authorized by the various load line a’cts, 159 violations
of the load line acts were handled, 17,259 reports of sailings of vessels
were received, and 1,771 annual load line inspections were accom­
plished.
marine engineering subdivision

As mentioned in last year’s report, the Bureau has in course of
preparation, a code covering the welding of high pressure pipinoW i t h d e s p e r a t i o n 0f the Navy Department and the American
Welding {society, this work has continued and the code is now ready
for promulgation. In the meantime, special permits have been
granted lor the use of this form of welding on six new vessels all
of which are now in service.
Other work in connection with welding has included the develop­
ment _of new methods of repairing fire-tube boilers and repairing
deteriorated furnaces.
Resolutions were passed by an executive committee of the Board
of {supervising Inspectors approving the welding of sea chests and
seal and tack welding.
, Tfie regular work of approving welding rods and electrodes and
the examination and qualification of welding operators has continued
to expand and demands a steadily increasing proportion of the time
and attention of the marine engineering subdivision. With the
expansion of shipbuilding now in progress the present staff will
soon become quite inadequate to handle the enormous amount of
detail work involved.
In cooperation with the Navy Department, a new procedure has
been developed for the qualification of welding operators for both
plate and pipe work.

BUREAU OF MARINE IN SPECTIO N AND NAVIGATION

165

111 the last annual report mention was made of several failures of
boiler plate submitted for approval. In certain instances plate has
proved defective in a completed new boiler. This very serious sit­
uation has been the subject of an extended and far-reaching inves­
tigation by the Marine engineering subdivision with the coopera­
tion of boiler manufacturers and steel companies, with the result that
new specifications governing the manufacture and testing of boiler
steel have been developed and will shortly be put into effect. The
importance of preventing the manufacture of defective boiler steel,
however slight the defects may be, cannot be overestimated.
This subdivision has investigated steam pipe failures on the Brazos
and Galoria and issued instructions to inspectors relative to piping
installations which should prevent a repetition of such accidents.
An investigation of the boiler explosion on the tug Invincible pro­
duced added testimony as to the necessity for more stringent re­
quirements for boiler steel, as before-mentioned, and also for an effort
to educate operating engineers relative to the hazards of dirty boilers.
Other important work includes the development of an adjusted
service pressure table governing pressure and temperature ratings for
valves and fittings; tentative rules for rating and testing the capac­
ity of safety valves and the passing of a resolution by the Board of
Supervising Inspectors relative to the inspection of steam vessels
subject to the motorboat act.
The Boiler Code adopted by this Bureau has now been in opera­
tion for 3 years, and it is gratifying to know that in addition to the
universal approval of the industry in this country it has been highly
commended by certain eminent foreign engineers.
ELECTRICAL E N G IN E E R IN G SUBDIVISION

The duties of this subdivision include the examination of plans
and specifications for the electrical installation on all new passenger,
cargo, tank, towing, and miscellaneous vessels, as well as plans and
specifications for the major alterations to the electrical installations
on existing vessels. These plans include lighting and power dis­
tribution circuits, emergency lighting and power distribution circuits,
interior communication circuits, and apparatus. Plans showing the
type and construction of generators and motors, control equipment
for generators and motors, switchboards and: distribution panels,
circuit protective devices, communication apparatus and types and
capacities of electric cable are also included. The testing and ap­
proval of electrical equipment, such as fire detecting and alarm
systems, emergency loudspeakers systems, lighting fixtures, and wir­
ing appliances, etc., are additional types of equipment this subdi­
vision is required to approve before it can be installed for use on
board vessels.
The most important single project completed during the year, was
the inspection and test of emergency loudspeaker systems on 103
passenger vessels, the test including sound level determination at each
speaker, power consumption, operation under short-circuit conditions
and electrical ground conditions, and operation of emergency power
supply. Plans for each vessel showing the location of loudspeakers
were first approved and then plans for' each vessel showing the elec­

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REPORT OF T H E SECRETARY OF COMMERCE

trical wiring circuit for the particular installation, together with the
location of amplifiers, control equipment, and power supply equip­
ment, were approved.
The electrical plans covering the construction of the following
new vessels have) been checked and approved by this subdivision: 5
passenger vessels, 3 cargo vessels, 35 tank ships and barges, and 18
miscellaneous tugboats and cargo vessels. Electrical plans of major
alterations to 15 vessels have also been checked and approved.
During the year the Bureau has examined and approved samples
representing a great variety of electrical equipment suitable for
marine use. This equipment includes watertight and vapor-proof
lighting fixtures, connection boxes and wiring appliances, berth
lights, bells and other signaling devices, switches and control units,
as well as explosion-proof electrical equipment suitable for use in
hazardous locations.
In addition to the above duties, the electrical engineering subdivi­
sion has been engaged in the preparation of specifications and mini­
mum standards for many items of marine electrical equipment. This
work is being done in cooperation with the National Bureau of
Standards, the American Institute of Electrical Engineers, and
manufacturers of such equipment.
A continual effort is being made by this subdivision, in coopera­
tion with the boards of local inspectors and the Federal Communica­
tions Commission, to increase the safety of life at sea, by eliminating
all fire hazards in connection with electrical equipment aboard ship.
SH IP PERSONNEL DIVISION

Administration of the Seamen’s Act as amended by recent acts of
Congress has been somewhat difficult due to the lack of sufficient per­
sonnel. However, it is expected that some relief will be afforded
during the coming fiscal year when funds become available for the
appointment of a number of additional clerks for this work. The
records show that under the provisions of the above act, the follow­
ing have been issued to merchant seamen during the year : 36,070 con­
tinuous discharge books; 100,861 certificates of identification; 9,842
able seamen’s certificates; 12,668 lifeboat certificates; 11,310 qualified
member of the engine department certificates; 63,376 certificates of
service; 1,110 tankerman certificates, making a total issue of 235,227
certificates of all classes, including continuous discharge books.
There were 9,011 duplicate discharge books and certificates of vari­
ous kind prepared by this Division for issuance to seamen who lost
their original papers. Under the law, the cost of furnishing dup­
licate records is borne by the seamen requesting same.
The rules and regulations originally prepared for the issuance of
seamen’s certificates and other papers were revised as of May 5 1938,
to meet the requirements of new legislation.
Under the supervision of this Division it is the duty of the United
States shipping commissioners located at the various ports throughout
the United States to witness the shipment and discharge of crews
on shipping articles of agreement for all vessels in the foreign and
intercoastal trade. He acts as arbitrator for the master and seamen
it settling disputes as to wages, working conditions, overtime, etc.
Factional disputes among seamen continue to cause confusion in the

BUREAU OF MARINE IN SPECTIO N AND NAVIGATION

167

offices of shipping commissioners and increases greatly the number
of questions they are called upon to decide. There has been a ma­
terial increase in the number of services rendered ships’ officers, owners,
and agents with particular respect to the maintenance of registers tor
the convenience of, and assistance to, seamen who may be seeking
employment on ships of American registry.
During the fiscal year much progress has been made with respect to
the establishment and formulation of a procedure which has for its
purpose the standardization and centralization of the Bureau s method
of conducting examinations for licensed officers. The appointment
of a qualified engineer examiner is absolutely essential to the early
completion of the preliminary work incident to this change in pro­
cedure as well as in the rating of the papers after the system is
established. However, much progress has been made during the year.
A complete revision of the rules and regulations relating to the
licensing of officers has been completed wherein many important and
far-reaching changes have been recommended and specimen examina­
tions prepared. Specimen examinations for unlicensed personnel have
also been prepared.
_
.
A system of sea observations was inaugurated and 75 ship masters
are now official observers, sending in regularly their celestial observations in accordance with instructions recently issued by the 13ureau.
This instruction booklet, “See Observations,” is also serving to intro­
duce the general use of the line of position and of the various modern
methods of navigation throughout the merchant marine.
The collaboration of the United States Weather Bureau has been
obtained in regard to the securing of meteorological observations and
data from vessels at sea in the path of storms, for use m the prepara­
tion of problems and weather charts.
A reference library of 200 books has been assembled. Specifications
have been drawn up for modern and efficient equipment for the field
examination centers to be established.
n . i
.
.
The revision and standardization of the physical requirements lor
licensed officers and certificated men was successfully accomplished
in collaboration with the Public Health Service.
.
,
During the fiscal year there were 7,316 deck officers’ licenses, includ­
ing pilots, 8,933 engineer officers’ licenses, and 12,230 licenses to
motorboat operators issued.
AMERICAN SH IPPIN G ON JU N E 30, 1938

Oil June 30,1938, the merchant marine of the United States, includino- all kinds of documented craft, comprised 27,309 vessels of 14,676,382 gross tons as compared with 26,588 vessels of 14,616,128 gross tons
on June 30, 1937. There were of this total 1,825 vessels of 3,591,521
gross tons engaged in the foreign trade, as compared with 1,884
vessels of 3,853,487 gross tons on June 30, 1937, while 2o,484 vessels
of 11 084 861 gross tons were engaged in the coasting trade, loliowin<>- is an analysis of the ownership of documented tonnage: 1 nvate
ownership (5 net tons and over), steel vessels, 5,249 of 11,320,493 gross
tons: wooden vessels, 21,922 of 2,508,843 gross tons; Maritime Com­
mission, steel vessels, 134 of 846,666 gross tons; wooden vessels, 4 of
380 gross tons.

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REPORT OF T H E SECRETARY OF COMMERCE

Since June 1, 1921, when tonnage in the foreign trade reached its
greatest volume, 11,077,398 gross tons, there has been a gradual decline,
until June 30, 1938, when it amounted to only 3,591,521 gross tons.
The decrease in the foreign trade tonnage is due partly to the scrap­
ping of large obsolete vessels which belonged to the Shipping Board
and to changes from foreign to coasting trade. Since June 1, 1921
the tonnage employed in the coasting trade, exclusive of the Great
Lakes, has increased 4,971,865 gross tons.
On July 1, -1938, there were building or under contract to build in
American shipyards for private shipowners, 157 vessels of 462,308
gross tons. The corresponding figures for 1937 were 302 vessels of
365,862 gross tons.
LAID-UP VESSELS

On June 30, 1938, the laid-up tonnage of the United States aggre­
gated 1,890 vessels of 2,967,672 gross tons, as against 1,612 vessels of
1,308,679 gross tons on June 30, 1937.
Details of the world’s laid-up tonnage, classification of American
vessels by size, service, and power, and of vessels launched and under
construction may be found in “Merchant Marine Statistics, 1938.”
APPROPRIATIONS

The following appropriations were made available to this Bureau
for the fiscal year 1938:
Departmental salaries________
Salaries and general expenses.

$297, 540
2,114,460

xotai-------------------------------------------------------------------------------- 2 , 412, 000

However, the amount appropriated for the Bureau’s activities isi
largely offset by the fees, fines, and penalties collected during the
same period. These amounted to $2,066,122.30.

PATENT OFEICE
In the course of the last 12 months the American patent system
has been the subject of more widespread interest and inquiry than
it has evoked in two generations. The President, in his message to
Congress on January 3, 1938, made reference to it and recommended
congressional action with respect to certain weaknesses and abuses
charged to it.
A score of bills contemplating various vital changes in the statutes
affecting patents were before the Seventy-fifth Congress. Notable
among these legislative proposals were a bill (H. R. 9259) for the
compulsory licensing of patents; a measure (H. R. 8508) prohibiting
the patenting of “labor-saving” machines, and another (S.475) look­
ing to the establishment of a single court of appeals of national juris­
diction and final authority in the determination of questions arising
out of patent grants. After conducting a series of hearings on the
bill (S. 475) contemplating the creation of such a court the Patents
Committee of the Senate unanimously recommended its enactment.
An objection to its consideration by the Senate prevented further
action by the Seventy-fifth Congress. In the latter days of its third
session that Congress constituted a Temporally National Economic
Committee empowered and directed to investigate, among other mat­
ters, “the effect of existing * * * patent and other Government
policies upon competition, price levels, unemployment, profits, and
consumption.”
At this writing the Committee is prosecuting its inquiry into the
relation of patents to the economic problems it was authorized to
study.
The Commissioner of Patents and his associates have put them­
selves at the disposal of the Committee and are prepared to furnish
facts and recommendations with regard to improvements in the
present statutes. The special Patent Office Advisory Committee, ap­
pointed by the Secretary of Commerce in July 1933, in collaboration
with the Commissioner and his associates, is continuing its studies
of some of the problems with which the Economic Committee is con­
cerned, and at the same time is pursuing its work for the betterment
of the system as a whole, including the intramural procedure gov­
erning the prosecution and issue of applications. A further refer­
ence to the Advisory Committee’s work will be found later in this
report.
The number of applications for patents (including designs) and
for the registration of trade-marks, prints, and labels filed in the
fiscal year was 92,018, exceeding by 2,038 the total received in 1937.
169
108928— 38------ 14

170

REPORT OF T H E SECRETARY OF COMMERCE

Applications for patents other than those covering designs were
66,050, an excess of 2,278 over the aggregate for 1937 and the largest
total since 1932. A large increase was recorded also in the number
of applications for design patents. These were 8,014, or 1,397 more
than in 1937, and the greatest annual aggregate in the history of the
Office. As was noted in a previous annual report, manufacturers and
merchandisers are making increasingly larger use of design patents
for the protection and exploitation of the ornamental features of their
goods.
Receipts for the 12 months ended June 30 were $4,551,298.87, an
excess of $74,385.62 over expenditures. For the last 5 years the an­
nual surpluses have averaged $122,566.
CONDITION OF THE WORK

Notwithstanding a large increase in the number of new applica­
tions, and without an enlargement of the technical personnel, the total
of cases disposed of in 1938 was 60,168, against 58,091 in 1937. At the
same time, however, the cases awaiting action by examiners were
45,723, compared with 38,121 at the end of the preceding year. The
total of applications pending on June 30, 1937, was 109,735, and on
June 30, 1938, there were 116,041. At the close of the year covered
by this report the work of 11 examining divisions of the Office was
within 90 days of current. Of the remaining 54 divisions 27 were
not more than 4 months in arrears, and 17 were less than 5 months
behind. Four divisions were within 8 months of current. The De­
sign Division was keeping pace with incoming business. The work
of the clerical divisions was current.
CLASSIFICATION OF PATENTS

Classification of patents has progressed as satisfactorily as the
funds and personnel available for the task would permit. Difficulties
were occasioned by the retirement and death of examiners having
experience and skill. In the interval since the last previous report
4 new classes (8, 68,124, and 260) comprising 35,806 original patents
and 15,011 cross references have been revised. In addition, 26 sub­
classes of class 152 were abolished and 251 new subclasses were estab­
lished. The subclasses discontinued involved resilient tires and
wheels. The new subclasses in class 152 embrace 11,182 original pat­
ents and 9,666 cross references. There were established 282 subclasses
m existing classes. These new subclasses contain 12,263 patents and
6,168 cross references. Forty-four subclasses were abolished and the
patents embraced in them, numbering 2,549 originals and 649 cross
references, were transferred to existing or new classes. Miscellaneous
patents to the number of 1,690 were transferred from different classes
and 2,668 cross references were made to facilitate searching in existing
classes. In all, 37,400 cross references were made in connection with
the weekly issue of patents. The Division was proceeding with the
revision or rerevision of many other classes. For lack of sufficient
personnel it was necessary to defer the formation of certain new
classes,

PATENT OEEICE

171

PATENT OEEICE ADVISORY COMMITTEE

With the cooperation of the Commissioner and other officials, the
Patent Office Advisory Committee, of which mention has been made
in one of the foregoing paragraphs of this report, has closely inves­
tigated the alleged evils and weaknesses of the patent system and
canvassed the various correctives suggested. Among the many sub­
jects to which the Committee has given attention are so-called sup­
pression and pooling of patents and one of the cures advocated for
the abuses imputed to these practices—compulsory licensing. I t is
expected that the Committee’s information and viewpoints will be
welcomed by the Temporary National Economic Committee.
The Advisory Committee’s present members, all of whom serve
without compensation and bear the expenses incident to their at­
tendance at frequent meetings in Washington, are: George Ramsey,
of New York, N. Y., chairman; John J. Darby, Washington, D. C.;
John A. Dienner, Chicago, 111.; Thomas Griswold, Jr., Midland,
Mich.; Franklin D. Hardy, Pittsburgh, _Pa.; Delos G. Haynes, St.
Louis, Mo.; Herman Lind, Cleveland, Ohio; Robert Lund, St. Louis,
Mo.; Dean S. Edmonds, New York, N. Y .; John D. Myers, Philadel­
phia, P a .; Milton Tibbetts, Detroit, Mich.; and Charles E. Townsend,
San Francisco, Calif.
RECENT LEGISLATION

At the last session of Congress several statutes directly concerning
the work of this Office were enacted.
Public Act No. 498 (75th Cong., 3d sess.), approved May 9, 1938,
makes it unlawful for any person, not duly recognized to practice
before the Patent Office in accordance with the statutes and the rules
of the Patent Office, to hold himself out or permit himself to be held
out as a patent solicitor, patent agent, or patent attorney, or as
authorized to represent applicants for patents before the Patent Office.
It also prohibits any person disbarred from practice before the Patent
Office and not subsequently reinstated from holding himself out as
entitled to represent or assist persons in business before the Patent
Office. The act makes a violation thereof a misdemeanor punishable
by a fine of from $50 to $500.
The purpose of the act is to prevent unauthorized practice before
the Patent Office, and to control the fraud and deception by persons
who have either been disbarred from practicing before the Patent
Office or who have never been enrolled to practice, and advertise them­
selves as patent agents, or attorneys, solicit business, and otherwise
engage in unauthorized practice before the Patent Office. The act
is considered of great importance and will be of material benefit to
the Patent Office and the patent system.
Public Act No. 586 (75th Cong., 3d sess.), approved June 10, 1938,
authorizes the Patent Office to register certain collective trade-marks.
The Trade-Mark Act of February 20, 1905, is amended _by this act
to permit any natural or juristic person, including nations, States,
municipalities, and the like, which exercise legitimate control over the
use of a collective mark, to apply for and obtain registration of

172

REPORT OE T H È SECRETARY OF COMMERCE

such mark, by procedure similar to that for the registration of other
trade-marks. Prior to this act organizations which controlled the
use of a trade-mark by a number of manufacturers or dealers could
not in general have a trade-mark registration. In 1936 the TradeMark Act was amended to permit the registration of collective marks
by an association located in a foreign country, in order to comply
with our treaty obligations. The present act removes the injustice
of a discrimination against our own citizens and gives to domestic
users of collective marks the same protection that we give to
foreigners.
Public Resolution No. 100 was also passed by the same Congress.
This act protects the copyrights and patents of foreign exhibitors at
the Pacific Mercado International Exposition to be held at Los An­
geles, Calif., in 1940. In a preceding session of Congress two bills
were passed (Pub. Res. 35, May 28, 1937, and Pub. Res. 41, June 11,
1937), to protect the copyrights and patents of foreign exhibitors at
the Golden Gate International Exposition to be held at San Fran­
cisco, Calif., in 1939, and at the New York World’s Fair, also to be
held in 1939.
SPECIAL CASES

A total of 226 petitions to give pending applications special status
in order to expedite their prosecution and issuance and thus hasten
the manufacture and use of the particular inventions sought to 'be
patented was filed in the year ended June 30. This compared with
336 in the 12 months from June 30, 1936, to July 1, 1937.
The number of such “petitions to make special” granted was 104.
Of these, in turn, 69 were granted in the interest of prospective man­
ufacture necessitating the investment of capital and the employment
of labor.
STATISTICS

Following is presented the usual statistical information regarding
the activities of the Patent Office.
Applications received during the fiscal year ended June SO, 19381
With fees:
Applications for patents for inventions___________________
Applications for patents for designs_'____________________
Applications for reissue of patents_______________________

66 , 050

8,014
421
----------- - 74,485
Applications for registration of trade-marks_____________ 214, 601
Applications for registration of labels and prints__________
2, 932
----------- - 17, 533

Total, with fees_______________________________________________92,018
Without fe e s:
Applications for inventions (act Mar. 3, 1883)____________
486
Applications for reissue (act Mar. 3, 1883)_______________
2
Total, without fees____________________________________________

488

Grand to ta l--------------------------------------------------------------------------- 92, 506
1 In clu d in g ap p licatio n s in w hich fees w ere refunded an d tra n sfe rre d .

2Includes 1,229 applications for renewal of trade-mark registrations.

173

PATENT OFFICE

Applications for patents for inventions w ith fees
Year ended
1929
1930
1931
1932
1933

June 30—
_________________
________________
_________________
________________
________________

87,039
91,430
84,097
73,465
59,408

Year ended
1934
1935
1936
1937
1938

June 30—
_________________
________________
_________________
________________
________________

56,095
56,832
59,809
63,772
66,050

Applications for patents, including reissues, designs, trade-marks, labels, and
prints, w ith fees
Year ended June 30—
1929
.
1930 .
1931
.
1932_ .
1933
.

114,496
117, 569
108, 717
_ 93,859
79,469

Year ended June 30—
1934
1935
1936
1937
1938

79,367
81, 000
85,102
89, 980
92,018

Patent applications awaiting action
June 30—
1929
1930 .
1931 .
1932
1933
.

103,236
119, 597
92,203
76, 723
49, 050

June 30—
1934
1935
1936
1937
1938

39, 226
31. 920
33, 540
38,121
45, 723

Patents w ithheld and patents expired
1937

Applications allowed awaiting payment of final fees------------------------------------Applications in which issue of patent has been deferred under see. 4885 H. S .......

4, 773
15,113
37,937
446
2,701

1938
4, 846
15,949
38,082
490
2,865

Patents granted and trade-marks, labels, and prints registered

P rints...............................................................................

1938

1934

1935

1936

1937

48, 523
30
2,419
343
10,139
1,635
535

41,621
28
3,437
400
11,109
1,908
500

39,978
61
4,174
400
10,777
1,787
519

39,412
65
4,939
405
11,329
1,955
551

36,672

63,624

59,003

5?,696

58,656

55,129

28

5,142
343
10, 529
1, 806
609

Statem ent of receipts and earnings for the fiscal year ended June 30,1938
Unearned balance at close of business June 30,
1 9 3 7 __________________________ ___________
Collections during fiscal year ended June 30,
1938 ______ - ___________- ______________

4, 364, 322, 97

Total_________________________________
Refundments________________________________

4,573,493.47
22, 194. 60

N et collections

$209,170.50

$4, 551, 298. 87

174

EEPOKT OP THE SECKETARY OP COMMERCE
EARNINGS

Inventions, first fees
Extra claims__
Reissues__________
Designs___________
Design extensions__
Trade-marks______
Labels and prints__

$1, 978, 020.
34, 029.
1 2 , 600.
83, 305.
29, 225.
219, 875.
14, 448.

00
00
00

00
00
00
00

T o t a l- .------------------ ---------------------------- $2,371,502.00
Final fees-------------------------------- $ 1 , 097, 659. 00
Extra claims--------------------18, 063. 00
Total-------------------------------------------------Appeals---------------------------------$60, 225. 00
Oppositions----- -------10, 130. 00
Disclaimers___________________
1 , 860. 00
Revivals-------------------------3 , 620. 00
Total----------------------------------------------Printed copies, etc------------------$403,502.60
Photoprints----------------------------1 1 , 208. 49
Photostats------------------------------6 6 , 133. 50
Manuscript----------------------------122, 600. 95
Certified printed copies, etc____
8 , 997. 33
Recording articles of incorpora­
tion-----------------------------------1 , 0 2 0 .0 0
Recording international trade­
marks---------------------------------40. 00
Registration of attorneys_______
640. 00
Total_______i ____
Drawings_______________
Assignments____________

1,

H 5 ) 7 2 2 . 00

75,735.00

614, 142. 87
19, 862. 46
149, 895. 41

Total earnings____
Unearned balance June 30

$4, 346, 859. 74
204, 439. 13

Net receipts

4, 551, 298. 87

Expenditures, fiscal year ended June 30, 1938
Salaries_____________________________________
$3, 377, 620.
Photolithographing :
Çurrent issue, black and white________________ $35, 953. 92
Current issue, color_________________________
5 , 9 3 5 . 50
Reproduction, black and white_____________ I_ 68 ,’ 463! 81
Reproduction, color_________________________
’ 5 3 5 ' 00
Photographie printing_______________________
1 5 , 0 7 3 ! 14
Photostat supplies__________________________
4 4 ’ 267. 68
Total______________________________________________
Miscellaneous expenses_____________________
Printing and binding:
Specifications---------------------------------- ------------ $ 7 0 3 , 9 5 4 . 56
Omcial Gazette________________________
95 155 08
Indexes--------------------------------------68 L 14

08

170, 229. 05
46, 403. 86

IIZIIIIIII lo!

Total_____
Miscellaneous.
Total

809, 796. 78
72, 863. 48
4, 476, 913. 25

175

PATENT OEFICE

Receipts and expenditures
$4, 551, 298. 87
4, 476, 913. 25

Receipts from all sources--------------------------------------Expenditures--------------------------------------------------------

74, 385. 62

Surplus--------------------------------------------------------- 7 — - - - Receipts from sale of Official Gazette and other publications (Su­
perintendent of D ocum ents)_______________________________

73, 734. 42

Comparative statem ent
Receipts

June 30—

1938

............................-........ -.....................

$3,783, 481.65
4,096,825.43
4,565,377.08
1 4, 487, 508.78
1 4.423, 563.18
1 4,383,468.11
1 4, 264,874. 67
1 4, 368,099.17
1 4, 565, 501.69
1 4,551,298.87

Surplus

Deficit

Expenditures
$4,391,860.16
4,552,685.41
4,832, 277.96
5, 314,851. 59
4,588, 585.02
3,876,785.01
4,153, 591. 21
4,446, 463. 69
4, 492, 273. 47
4,476,913.25

$608, 378. 51
455,859.98
266,900.88
827,342.81
165,021.84
78,364. 52

$506,683.1Ö
111, 283.46
73, 228. 22
74, 385.62

1 This does not include the amount received by the Superintendents of Documents for the Official Gazette
and other publications.

Comparative statem ent of expenditures under separate appropriations
Appropriation

Photolithographing..........................................................................................

Litigated cases
P atent:
Interferences declared--------------------------------Interferences disposed of before final hearing.
Interferences disposed of after final h e a r in g interferences heard------------------------------------Interferences awaiting decision--------------------Trade-mark:
Interferences declared---------------------------------Oppositions instituted--------------------------------Cancellations instituted------------------------------Interferences disposed of before final hearinginterferences disposed of after final hearing—
Interferences heard------------------------------------Interferences awaiting decision-------------------Before the Board of Appeals:
Appeals in ex parte cases-------------- -------------Appeals in interference cases:
Priorities______________________________
Motions----------------------------------- ,------------

1938

1937
$3,377,554.85
165,345.41
850,844. 58
54, 325. 76
44, 202.87

$3,377,620.08
170, 229.05
809. 796. 78
72,863.48
46,403.86

4,492, 273.47

4,476,913.25

1,494
1,464
280
281
30
118
1,008
178
990
358
360
16
3,237
207
205

-----

412
-------- 3,649

Ex parte appeals decided

3, 230

176

REPORT OP THE SECRETARY OF COMMERCE

Before the Board of Appeals—Continued
Appeals in interference cases decided:
Priorities----------------------------- ,______ _____ ________ 259
Motions______________________ ____ ______________ ~__230
-----489
^
,
------ — 3,719
Ex parte cases awaiting action_________________________
x , 947
Interference cases awaiting action:
Priorities_______ _________________________________ 439
Motions'__________________________________________ 142
—
281
■
-------- 2,228
Oldest ex parte case awaiting action__________________________ May 25, 1938
Oldest interference case awaiting action______ ________________ Mav 2o’ 1938
To the Commissioner:
’
Appeals in trade-mark interferences__________________ _
7
Appeals in trade-mark oppositions____________________
95
Appeals in trade-mark cancellations__________________
21
Appeals in ex-parte trade-mark cases________________
31
Interlocutory appeals________________________________
22
Petitions to Commissioner:
Ex parte 1------------------------------------------------------------ 6,703
Inter partes_____________________________________
18 9
To make special_________________________________
266
~---------7,158
______ 7 334
Cases disposed of by Commissioner:
Appeals in trade-mark interferences________________ __
5
Appeals in trade-mark oppositions____________________
65
Appeals in trade-mark cancellations_____________ ~~ZI
15
Appeals in ex parte trade-marks______________________
25
Interlocutory appeals____________________________________22
_____ _ 1 3 2
Petitions disposed of:
Ex parte 1----------------------------------------------- ----------- 6 , 599
Inter partes_________________________________
Ig l
To make special___________________________ _II_I
266
---------7,046
_____ J U g
Notice of appeals to United States Court of Customs and Patent
Appeals:
In ex parte cases (including 4 trade-marks)_______ __
__ 105
In inter partes cases (patents)______________________
In design applications_______________________________ ”____
1
In trade-mark interferences______________ ______________ __~
1
In trade-mark oppositions_______________________” ”
20
In trade-mark cancellations____________________ ~q
To the-District Court of the United States for the District of Co­
lumbia (su its)________________ ______________________

1Includes revivals and amendments under Rule 78.
OTHER DETAILS OF B U SIN E SS FOR T H E FISC A L YEAR

^ As to the volume of business, the Office received during the year
74,485 applications for patents, reissues, and designs; 13,372 trade­
mark applications and 1,229 applications for renewal of trade-mark
registrations; 2,932 label and print applications; 177,238 amend­
ments to patent applications; 11,246 amendments to design applica­
tions, and 17,814 amendments to trade-mark, label, and print
applications.

PATENT OEEICE

177

The number of letters constituting the miscellaneous correspond­
ence received and indexed was 466,786. In addition, 44,871 letters
were returned with information.
The number of printed copies ¡of (patents sold was 3,966,147;
1,078,539 copies of patents were shipped to foreign governments; and
772,204 copies furnished public libraries. The total number of copies
of patents furnished was 6,419,578, including those for Office use
and other Departments.
The Office received for record 44,495 deeds of assignment.
The Drafting Division made 805 drawings for inventors, and
corrected 11,749 drawings on request of inventors; in addition,
7,500 drawings were corrected for which no charge was made; 131,578
sheets of drawings were inspected, and 14,999 letters answered.
Typewritten copies of 3,508,400 words were furnished at 10 cents
per hundred words. The Office certified to 16,864 manuscript copies,
and furnished 7,255 miscellaneous certified copies. The Office also
furnished 531,346 photostat copies of manuscript pages, 40,110 photo­
graphic copies, and 332,954 photostat copies of publications and
foreign patents, for sale; 14,753 photostat-manuscript pages, ,254
certified manuscript copies, and 11,346 photostat copies for Govern­
ment departments, without charge; 34,600 photostat and 19,279
photographic copies for use of the Patent Office; 14,871 photostat
copies for sale through photo-print section, and 191 photostats for
Office use; also 78,965 photostats for assignments, grants, and dis­
claimers for official use; in all, 1,019,026 photostat and 59,389
photographic copies.