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Subject File
Council of National Defense
Box 142
Septiano. may, 1941
CONFIDENTIAL
PSF;
THE ADVISORY COMMISSION TO THE
COUNCIL OF NATIONAL DEFENSE
FEDERAL RESERVE BUILDING
WASHINGTON, D. C.
INDUSTRIAL MATERIALS DIVISION
WEEKLY OPERATIONS PROGRESS REPORT OF SEPTEMBER 5, 1940
STRATEGIC MATERIALS
CHROME ORE
Additional tonnage of chrome ore for stock pile obtained this
week.
MANGANESE
Large additional tonnage obtained this week. Lack of bottoms
and high ocean freight rates restraining movement to this country.
A contract for the purchase of domestic manganese ores was recommended
to the Reconstruction Finance Corporation. Arrangement will necessi-
tate building a new plant on the Cuyuna Range in Minnesota for treat-
ment of manganiferous iron ores. Negotiations are continuing regard-
ing development of off-grade manganeso ores in Nevada.
QUARTZ
Committee set up to assist in procurement standards has recom-
CRYSTALS
mended specifications, sizes, inspection, and purchase procedure.
This material is being incorporated into a recommended procurement
plan.
RUBBER
On the cotton barter agreement 41,731 tons of the 86,000 in the
arrangoment have arrived in this country. Afloct is an additional
16,578 tons. The Rubber Reserve Company has purchased 23,351 tons,
6,571 tons of which are afloat.
TIN
Additional tonnage purchased for the stock pile this week. Con-
ferences held with container users, can makers, and Government divi-
sions regarding substitutes for tin cans. Research laboratories work-
ing on some of the ideas brought out. At prosent no need for actual
substitution, but carefully laid out plans essential.
TUNGSTEN
Plan for construction of U. S. plant to clean off-grade ores
approved by Army and Navy Munitions Board, Procurement Division of
Treasury, Bureau of Mines, State Department, and is awaiting final
clearance by the Coordinator of Purchases.
CRITICAL MATERIALS
VIATION
Storage: Very constructive meetings were held between a group of
GASOLINE
engineers representing the industry and representatives of the Army
and Navy on the question of the best location of storage facilities
for the Army and Navy stocks of 100 octano gasoline. Various problems
of design connected with these storage facilities were also discussed.
THE
- 2 -
Buying Committee: The first meeting of the Aviation Gasoline
Buying Committee of the Defense Supply Corporation is being held
this week to discuss the various problems involved in securing bids.
Gasoline Pipe Lines: Consideration is being given to the
desirability of urging the industry to construct certain gasoline
pipe lines to fit in with the general defense program.
CHEMICALS
Cotton Linters: Meeting held with representatives of cotton
linters industry this week. Meeting arranged by the National Cotton-
seed Products Association. Assurance given that considerable quanti-
ties of surplus linters available which can be acquired without dis-
turbing normal price structure. Government owns 8,000,000 bales of
cotton, possible to use in place of linters in the event of emergency.
Alpha cellulose from wood pulp has also been approved for manu-
facture of smokeless powder, but due to minor disadvantages, research
has been inaugurated to try to overcome these deficiencies, but in
real emergency we are assured even this material could be used.
GRAPHITE
Stocks on hand in U. S. very low. Supplies urgently needed.
Steamers scheduled to pick up sizable shipmont at Madagascar canceled.
State Department investigating this cancellation. If future calls by
Dutch steamer prohibited will try to have Maritime Commission have
U. S. boats call to secure supplies of this critical material.
ESSENTIAL MATERIALS
INDUSTRIAL
Negotiations still under way with Diamond Syndicate for purchase
DIAMONDS
of needed supply. Recommendations made for personnel to assist
Procurement Division in inspection and purchasing of stock pilc.
POWER
Advice from twelvo airplane manufacturing plants as to power
requirements indicates no present difficulty in securing adequate
supply. Total requirements over and above present demands are for
42,190 kw by 1941, 47,550 by June, 1941, and 48,600 by September, 1941.
Requirements are widely distributed about the country. Neoprene
process of making synthetic rubber requires large supply of calcium
carbide; power requirements 50,000 kw. The source of this will be
determined as soon as exact location has been indicated.
PULP AND
Results of survey announced. This shows 1941 supply of pulp
PAPER
will be sufficient. The increased production of pulp by domestic
industry and expansion in imports from Canada will more than offset
decline in shipments from Sweden, Finland, and Norway. Principal
problems are special grades of unbleached sulphite and sulphate.
Rapid increase in use of waste paper, particularly for shipping con-
tainers, has helped maintain supply.
under sult of loss that
IMAINE 1100 - of FHR Deceme paliby's
SMITH Complete 180 LTHIP was
- 3 -
STEEL
Armor Plate:
A. Heavy Forged: Expansion program at Charlestown,
West Virginia, Navy owned plant operated by Carnegie-
Illinois, is progressing. All facilities at this plant
100% owned by the Government. Facilities needed for
expansion at Midvale plant ordered and committed for by
the Navy Department. Title to be assumed later by
Midvale.
B. Light Rolled: Report being prepared on entire
requirements and capacities for this material.
Stress Relieved Steel for Aircraft Projectiles: Specifications
being lowered to enable more general participation by steel companies.
Survey of industry being made in accordance with new specifications.
Heavy Forgings: Negotiating for additional forging capacity in
various steel plants.
Survey of Machine Steel Casting Capacity: Cast steel armor is
now being proposed for use in tank manufacture. British and U. S.
requirements indicate possible shortage in steel foundry machined
casting capacity. A meeting has been called of representatives of
the industry to determine available capacity and to advise as to
requirements.
E. R. Stettinius, Jr.
PS F: Council of National Defense
ADVISORY COMMISSION TO THE COUNCIL OF NATIONAL DEFENSE
OFFICE MEMORANDUM
state
2
To:
Mr. Sidney Hillman
Date: September 10, 1940
From:
C.R. Dooley
Subject:
Progress Report - Week Ending September 7, 1940
1. I am constantly conferring with Government agencies concerned with
national defense.
2. Correspondence with industrial relations men of some twenty cor-
porations resulted in 115 names being suggested of experienced personnel and
training men competent to help in the field administration of our work. These
letters also indicated a great personal interest and enthusiasm.
3. After reviewing the regional organizations of several Government
departments, which range from 5 to 13, we are agreed on 12 which coincide with
the Federal Employment Service.
4. The Federal Committee on Apprenticeship has agreed upon our request
to have their field men assist industry with short-term specialized training
and upgrading, along with their regular work of apprenticeship. I attended
hearings before the Budget Committee and the Congressional Appropriations
Committee in connection with the budget of the Federal Apprenticeship
Committee.
5. As a result of a conference with lens grinders and instrument makers
held in Washington on August 28th, a plan of training special operators through
upgrading was agreed upon. This conference was attended by representatives
from Bausch and Lomb, Eastman Kodak, Sperry Gyroscope, American Telephone and
Telegraph, General Electric, Leeds and Northrop, Frankford Arsenal and the Navy
Ordnance Department. Mr. M. J. Kane of AT&T was secured to follow up the results
of this discussion and to write the material in training manual form. He is now
visiting the Rochester companies above-named and will have his report ready
within two weeks. Mr. Fricke, Foreman of the Instrument Department of the
Frankford Arsenal, is with him.
6. On September 4th a meeting was held with industrial relations men
from Baltimore representing the Glenn Martin Company, Rustless Steel, Bartlett-
Heywaid, Westinghouse Radio Division, and Western Electric Company. A number
of Staff people and Department representatives also attended this conference.
The industrial relations men were unanimous in stating their inability to report
labor needs on the basis of Government contracts, but said they could report
them on the basis of their respective plants. They said a shortage of labor
would show up statistically but actually the supply will be obtained through
vocational school training and upgrading on the job. Vocational schools have
served them well but more such facilities are needed. They stated their
willingness to fill out the questionnaire of the Labor Department but felt that
it would be of little value. Approving the principle of the worksheet, they
thought the method of gathering data through trained interviewers, as practiced
by the Employment offices, was preferable. The importance of personal
NDC-5--7/40--50M.
-2-
contact was greatly emphasized.
7. Law students in New York City are taking Civil Service examinations
and obtaining positions as apprentices in the Brooklyn Navy Yard, using this
as a. meal ticket, and thus keeping bonafide apprentice material out. At a
luncheon with Mr. Flemming, he described how this matter would be taken care
of by making it possible for the selections to be made further down the list
from among those who had had vocational training and intended to follow skilled
trade work permanently.
8. At a meeting held in Detroit on September 7th and attended by a small
group of manufacturing executives and a small group of labor leaders, the question
of upgrading in the tool and die industry was thoroughly discussed and agreed to
by all parties, with the definite understanding that both the executives and
the labor men will have a difficult job selling the idea to others. Interest in
the defense program was 100% enthusiastic on the part of all present.
9. We have borrowed Mr. William Conover from the United States Steel
Corporation and Mr. J. P. Mitchell from the Western Electric Company. These
two men, together with Mr. Frank Cushman, Consultant for the Office of Education,
are beginning a discussion this morning of the whole problem of training for
supervision. Various members of the Staff will sit in and plans for promoting
educational work in the field of supervision will be developed.
10. A meeting is being called for Friday of this week in Washington, to
be attended by representatives from a number of tool and die manufacturers for
the purpose of laying the groundwork for developing an upgrading training program
in a. manner similar to that now being carried on in the field of instrument
makers and lens grinders. Some of the firms represented at this meeting will be
Pratt and Whitney, Brown and Sharpe, Warner and Swazey Company, Westinghouse,
Remington Arms, and several others.
11. A general summary of the reactions obtained from all industrial
contacts so far indicate: (a) That there is no serious concern over shortage of
labor; (b) That training through upgrading, plus the regular apprenticeship
training for certain carefully picked young employees, will meet the needs; (c)
That the need for managers and supervisors is urgent; (d) That actual orders are
not yet forthcoming and the companies do not know just how they stand with regard
to labor needs, but they are making plans and setting up relationships with
schools and establishing their own training programs in anticipation of what is
to come; (e) That the vocational schools are doing a good job for industry.
CONFIDENTIAL
PSF:
THE ADVISORY COMMISSION TO THE
COUNCIL OF NATIONAL DEFENSE
FEDERAL RESERVE BUILDING
WASHINGTON, D.C.
INDUSTRIAL MATERIALS DIVISION
WEEKLY OPERATIONS PROGRESS REPORT OF SEPTEMBER 12, 1940
STRATEGIC MATERIALS
CHROME ORE
Negotiations continuing for the development of certain domestic
deposits.
MANGANESE
Additional tonnage obtained this week. Negotiations regarding
the development of off-grade manganese ores in Nevada are continu-
ing. Recommendations of Technologic Committee on Manganese for
investigation of beneficiation processes have been endorsed by the
Defense Commission.
TIN
Additional tonnage purchased for stock pile this week. Rate
of purchasing is increasing. Interested and competent groups are
being requested to present definite plans for the erection of a tin
smelter. Special committee of the National Academy of Sciences has
started hearings on various detinning processes. Many suggestions
are being received by the different sections of the Defense Commis-
sion concerning substitutes for tin. The Tin Section of this divi-
sion invites all those having such ideas to submit them for clearance
by this section.
CRITICAL MATERIALS
AVIATION
The first meeting of the Aviation Gasoline Buying Committoe was
GASOLINE
held last week with the directors of the Defense Supplies Corporation.
There will be further meetings this week to expedite requests for
bids.
A survey on aviation gasoline capacity made by the Bureau of
Mines indicates substantial agreement with earlier approximate infor-
mation and shows that some production facilities for both 92 and 100
octane gasoline will have to be installed before the plane program
is completed.
Gasoline Storage: The Industry Committee of Terminal Engineers
held several discussions with Army and Navy representatives with
regard to designs for underground gasoline storage.
CHEMICALS
Cotton Linters: Further conversations have been held with
representatives of the cotton linters bleacheries with reference to
- 2 -
the price of raw materials and production costs of chemical pulp.
At this Division's request, studies are being made of storage
capacity and the results and recommendations will be discussed at
a meeting this week.
Chemical Stock Piles: The program for accumulating stock piles
of toluol and cotton linters is awaiting the decision of the Defense
Supply Corporation officials (a subsidiary of the Reconstruction
Finance Corporation) as to how purchases of the stock pile will be
handled.
Export Licensing:
Drugs: A study is being made by the Drug Resources
Advisory Committee as to the strategic or critical nature
of certain drug materials with a view to recommending them
for restriction on the export license list.
We have recommended that applications for export
licenses of ammonia, ammonium compounds and nitrates in
excess of $500 be roviewed bofore approval.
Sulfuric Acid: A resurvey is being made of the sulfuric acid
industry with reference to the projected location of munitions
plants.
Nitrates and Toluol: Our estimates of available supplies of
nitrates and toluol are being reviewed with special reference to
revised estimates of military and civilian requirements.
GRAPHITE
Stocks on hand in United States very low. State Department
negotiating for American South African Lines ship to pick up large
graphite cargo at Madagascar. Alternative plan arranged with
Maritime Commission for United States boat to stop if above plan
fails.
WOOL
Negotiations on storage of wool being continued.
ESSENTIAL MATERIALS
INDUSTRIAL
Negotiations with Diamond Syndicate and others still under way
DIAMONDS
for purchase of supply of industrial diamonds.
LUMBER
Working closely with Quartermaster staff in arranging for pur-
chases of lumber for contonments.
PULP AND
D. C. Everest, President of the Marathon Paper Mills Company,
PAPER
has been appointed Group Executive and Charles W. Boyce, Vice
- 3 -
President of the Northwest Paper Company, has been appointed
Assistant Group Executive.
STEEL
Light Rolled Armor: Provious estimates of requiroments will
probably be further reduced due to substitution of considerable
tonnage of cast steel armor.
Scrap Iron and Steel: The Defense Commission has recommended
to the President an enbargo on all grades of scrap iron and steel.
Within the next few days it is quite possible & Presidential Order
will be issued.
E. R. Stettinius, Jr.
PSF:
THE ADVISORY COMMISSION TO THE COUNCIL OF NATIONAL DEFENSE
FEDERAL RESERVE BUILDING
WASHINGTON, D.C.
September 26, 1940
Memorandum to the President
From W. L. Batt
Subject: SCRAP RUBBER AND SCRAP TIN
It is recommended that no action be taken on scrap rubber or
scrap tin at this time. There will not be a critical situation in
our supplies of rubber or tin until shipping from the Dutch East
Indies and the Malay Peninsula is cut off.
Rubber-There is an abundant supply of scrap rubber available for
reclamation; 800,000 tons of rubber goods become scrap annually, of
which only 200,000 tons are normally collected for reclaiming pur-
poses. When our rubber supply becomes critical, the first move should
be the expansion of our reclaiming capacity. This will be a simple
matter and can be easily accomplished before present industry and
Government stocks are exhausted. These stocks now represent 11
months normal supply, and the situation is improving every day. Any
official indication of a shortage might well bring a run on finished
goods and hamper our acquisition of a stockpile.
Tin--No action is recommended on stimulating recovery of tin scrap
from old containers because the amount which can be salvaged is in-
consequential. We need about 80,000 tons of fine tin per year, and
even at the war-time price of $1.10, 400 tons of fine tin was all the
tin salvage industry produced from old containers. The solution to
the tin problem when that problem becomes critical will not lie here,
but rather in the direction of the greatly expanded use of substi-
tutes. These substitutes are being continually studied by the
Industrial Materials Division. Meanwhile, the situation 1s improving
daily, with reassuring increases in our stockpile, and the furtherance
of our plans for a tin smelter.
M Bate
CONFIDENTIAL
THE ADVISORY COMMISSION TO THE COUNCIL OF NATIONAL DEFENSE
FEDERAL RESERVE BUILDING
WASHINGTON, D.C.
INDUSTRIAL MATERIALS DIVISION
WEEKLY OPERATIONS PROGRESS REPORT OF SEPTEMBER 26, 1940
STRATEGIC MATERIALS
ANTIMONY
Survey to verify figures on stocks and consumption is being made
through the Bureau of Mines.
CHROME ORE
Recommendations made for the Procurement Division to purchase
in Turkey British ore. Maritime Commission has been asked to supply
shipping facilities.
MANGANESE
Contracted for additional large tonnage for stock pile. Metals
Reserve Company has accepted proposed plan for manganese procurement,
also approved by the Army and Navy Munitions Board. Continuing con-
ferences with domestic producers.
MERCURY
Contract made by Procurement Division for 50% of stock pile,
deliveries extending over a period of one year.
MICA
Negotiations still proceeding with British Government for purchase
of mica.
QUARTZ
Army and Navy Munitions Board studying recommendations for
CRYSTALS
revised specifications and purchase procedure.
RUBBER
Stock pile condition as of September 14 is as follows: 42,453
tons in this country; 19,300 tons afloat; 55,000 tons additional pur-
chased.
TIN
Large tonnage for stock pile purchased this week. Three interests
have presented definite proposals for Unitod States Tin Smelter.
CRITICAL MATERIALS
ASBESTOS
Recently completed survey of Bureau of Mines being studied, par-
ticularly as applied to the amosite and blue grades to be included in
the stock pile.
AVIATION
Proposed purchase program for aviation gasoline still held up by
GASOLINE
legal technicalities. Study initiated through Burcau of Mines to
detormine crude oils adapted to aviation gasoline production. This
study will be basis for asking states to change crude oil allowables
if and when needed. Underground storage committee making definite
progress in design. Actual installations and results of recent bomb-
ings in England are to be discussed this week with Canadian expert.
CHEMICALS
Military and Civilian requirements for nitrogen compounds, toluol,
cotton linters, sulfuric acid and other raw materials used in powder
and explosives were reviewed at a meeting of the Subcommittee of the
Army and Navy Munitions Board. Requirements are being revised as a
result in line with projected powder production schedules. Canadian
and British requirements are being included.
Nitrates: Chilean nitrate situation is boing studied in con-
junction with the Division of Commercial and Cultural Relations between
American Republics.
INDUSTRIAL
Sample shipments enroute. Purchases expected shortly. Inspection
DIAMONDS
and purchase procedure of Procurement Division will be ready to function
in about ten days.
ESSENTIAL MATERIALS
LEATHER
Study under way of requirements and inventory of horsehides.
LUMBER
Working with the Quartermaster office and the Production Division
of the Commission regerding procurement of lumber required in camps
and cantonments.
POWER
Available Capacity: Summary made of additional capacity in
operation during 1940, 1941, 1942. Total new capacity for period
1939 to 1942 inclusive is 7,760,000 kilowatts.
TEXTILES
W. Ray Bell, President, Association of Cotton Textile Morchants
of New York, has taken over the Textiles Section as Group Executive.
Mr. Robert Stevens has returned to his company.
STEEL
Galvanized Roofing and Siding for Army Cantonments: Advised War
Department of large supplies of galvenized roofing and siding imme-
diately available for cantonment construction, this to relieve situa-
tion caused by sudden demand on lumber industry. Instructions sent
by Army to certain districts authorizing the use of galvanized roofing
and siding.
Wire: Survey being mado of diamond dies for wire drawing AS &
possible scarcity is indicated. Principal former source was France.
Expediting Deliveries: From time to time calls are received to
expedite deliveries of urgently needed steel products. Through the
outstanding cooperation of industries concerned, quick delivery is
arranged.
MBatt
E. R. Stettinius, for Jr.
THE ADVISORY COMMISSION TO THE COUNCIL OF NATIONAL DEFENSE
FEDERAL RESERVE BUILDING
WASHINGTON, D. C.
September 26, 1940
MEMORANDUM TO THE PRESIDENT
FROM:
E. R. Stettinius, Jr.
SUBJECT: TIN SUPPLIES MOVING TO THIS COUNTRY AT GREATER
RATE THAN EVER BEFORE
Purchases for the stock pile up to September 23 were 25,404
tons, of which
8,025 tons delivered
3,585 tons afloat
11,610 tons
During August
12,400 tons arrived
End of August
22,364 tons afloat for U.S.
29,495 tons were Consumer stocks end of July.
When we compare these figures with the usual monthly arrivals
of from six to eight thousand tons and the tonnages afloat around
eight thousand tons, we can see the manner in which the flow to
this country has been increased since the first of July.
The International Tin Commission is giving orders to the Dutch
East Indies to increase production to a maximum; the flow to this
country shows that the output of the mines has reached the stage
of full production. This assures a maximum supply coming to the
United States for the stock pile.
Proposals for a tin smelter in this country have been submitted
by four strong organizations; two more are definitely under way
and it is expected there will be a further one received. This
will give seven proposals which are to be studied carefully by
this Commission and recommendations made to the Metals Reserve
Company.
Mh Batt
E. R. frotts Stettinius, Jr.
THE ADVISORY COMMISSION TO THE COUNCIL OF NATIONAL DEFENSE
FEDERAL RESERVE BUILDING
WASHINGTON, D. C.
September 25, 1940
MEMORANDUM TO THE PRESIDENT
From: E. R. Stettinius, Jr.
Subject: UNDERGROUND STORAGE OF AVIATION GASOLINE.
A committee of representatives of the Army and Navy and engineers for the
petroleum industry have agreed upon general specifications for underground
storage tanks as follows:
1. Tanks to be preferably vertical cylinders for economy, minimum
target area and concussion resistance.
2. Capacities to range from 10,000 to 50,000 barrels.
3. A 100 ft. maximum diameter is recommended for tankage in rolling
country in order not to present too large a target. This can
be increased in mountainous country where planes have to fly at
higher altitudes.
4. Tanks to be spaced in irregular pattern with a minimum distance
from shell to shell of 200 feet.
5. Tanks to be 20 feet in depth unless especially favorable soil
conditions are encountered, which would make it economical to
increase this depth.
6. It is considered sufficient to protect such storage by conceal-
ment rather than. to attempt to construct storage of bomb proof
design. Minimum coverage recommended to consist of four feet
.
of earth over nine inches of reinforced concrete.
7. Provide each storage tank farm with dual power service, ethyl
blending plant, and facilities for truck, tank car, or barge
loading.
8. Possible arrangement of tank farm would be circular arrangement
and perhaps groups of circles.
9. All pipe lines would be dual buried lines - one within the ring
of tanks and one without, with suitable cross connections to
tanks; thus assuring a minimum of capacity loss through damage
to a tank or tanks.
10. Power system would also be dual. Designs of tanks of several
manufacturers are being studied to determine one most suited
for needs.
More information on foreign experience is needed as evidence points to tanks
above ground still operating in the vicinity of serious bombing.
With this very definite progress in tank type and design, and farm type and
design, activities will be directed to strategic locations for the tank farms.
MBate
E. R. Stettinius, for Jr.
THE ADVISORY COMMISSION TO THE COUNCIL OF NATIONAL DEFENSE
FEDERAL RESERVE BUILDING
WASHINGTON, D. C.
September 25, 1940
MEMORANDUM TO THE PRESIDENT
From:
E. R. Stettinius, Jr.
Subject:
MERCURY
Fifty percent of the stock pile of mercury was contracted
for by the Procurement Division this week. This was with
the New Idria Company for 5,000 flasks (76 pounds). The
price was well under the present market, deliveries to
extend over a period of one year. This purchase was
particularly favorable in view of the price which has
been prevailing for some time.
Recommendations for purchase have been held up because
domestic output exceeds requirements and there was no
urgency in securing a stock pile. By waiting for the
softening of the price, a very favorable purchase was
made.
THE ADVISORY COMMISSION TO THE COUNCIL OF NATIONAL DEFENSE
FEDERAL RESERVE BUILDING
WASHINGTON, D.C.
September 25, 1940
MEMORANDUM TO THE PRESIDENT
From:
E, R. Stettinius, Jr.
Subject: CHROME ORE
A conference was held by this Division of the
Commission with other interested governmental
agencies regarding purchase of British held chromite
in Turkey. As a result the State Department is mak-
ing representations to the Turkish Government to
release the British Government from certain obliga-
tions in this connection. Meanwhile we have recom-
mended that the Procurement Division take steps to
purchase the ore and we have asked the Maritime
Commission to supply the necessary shipping facili-
ties.
MBau
E. R. Stettinius, for Jr.
Respectfully forwarded to the President:
Emw
PSF: Conncil of Nat. Defense
ADVISORY COMMISSION TO THE COUNCIL OF NATIONAL DEFENSE
OFFICE MEMORANDUM
To:
General Edwin M. Watson
Date: September 30, 1940
From:
William L. Batt
Subject: CRUDE RUBBER
If Ed were here, I think he would send this over to you
for transmission to the President.
M Bau
NDC-5--7/40--50M.
PSF: THE ADVISORY COMMISSION TO THE COUNCIL OF NATIONAL DEFENSE
FEDERAL RESERVE BUILDING
WASHINGTON, D.C.
September 26, 1940
MEMORANDUM TO THE PRESIDENT
From:
E. R. Stettinius, Jr.
Subject: CRUDE RUBBER
Good progress is being made in building up the stock pile
of crude rubber. The status as of September 21 is as
follows:
Purchased - total
124,050 long tons
R.F.C.
57,702 long tons
Barter
66,348 long tons
Delivered - total
43,383 long tons
Afloat
34,581 long tons
E. R. Stettinius, Jr.
SORY COMMISSION TO THE
PENALTY FOR PRIVATE LIGE TO AVOID
OF NATIONAL DEFENSE
SCHINGTON: SEP 94 D.C.
PAYMENT OF POSTAGE 4300
RESERVE BUILDING
WASHINGTON, D.C.
1940
General Edwin M. Watson
The White House
Washington, D. C.
PSF: - Council of nat. Defense
9/30/40
General Watson
Will you please clear these
with the President? Many thanks.
W. L. Batt
PSF: Conncil of not, Defense $
THE ADVISORY COMMISSION TO THE COUNCIL OF NATIONAL DEFENSE
FEDERAL RESERVE BUILDING
WASHINGTON, D.C.
September 30, 1940
fullured
TO:
The Honorable Franklin D. Roosevelt
FROM:
Mr. William L. Batt
SUBJECT:
Payment for Bauxite on Imports
from Dutch Guiana
At the Commission meeting last week you
asked me a question with respect to the method
of payment for bauxite imported from Dutch
Guiana. The following information may be helpful:
The Aluminum Company of America owns the
bauxite deposits in Dutch Guiana, out of which
come virtually all United States' imports of
bauxite.
Payment for these imports involves, there-
fore, merely a transfer on the company's books.
me Bau
the CO
THE ADVISORY COMMISSION TO THE COUNCIL OF NATIONAL DEFENSE
FEDERAL RESERVE BUILDING
WASHINGTON, D.C.
September 30, 1940
MEMORANDUM
TO:
The Honorable Franklin D. Roosevelt
FROM:
Mr. William L. Batt
SUBJECT:
Some Aspects of the Wool Situation
At the Commission meeting last week you expressed an
interest in an over-all picture of wool. The following brief
summary may be helpful:
In recent years, approximately 76% of the apparel wool
consumed in this country has been produced domestically, the
remaining 24% being imported. The great bulk of the imports
has been in the coarser grades. Almost no carpet wool is pro-
duced in this country. Even in apparel wools, however, domestic
wool is generally of the finer grades. For example, only 1% of
domestic apparel wool falls in the lowest grades as contrasted
with 26% of the imported wool. The coarser grades, it may be
noted, can if necessary be substituted for the finer grades with,
of course, less satisfactory results.
In the accompanying table, imports of wool are broken down
by grades and by countries of origin for the years 1937 - 1939.
It will be noted that the largest part of our imports of the finer
grades of wool has come from Australia and New Zealand. It will
also be seen from the table that carpet wool has formed a large
part of the imports from South American countries, particularly
from Argentina.
In a major emergency, according to the calculations made by
the Army and Navy Munitions Board, there would be a deficit of
960,000,000 pounds of wool over a two-year period. This assumes
that civilian consumption continues at its normal rate and that
all imports of wool are curtailed.
The proposed storage of 250,000,000 pounds of Australian
wool as a strategic reserve in this country, the arrangements
for which appear to be on the verge of completion, would reduce
the amount of this potential deficit.
When the new wool clip becomes available in South America,
it should be possible to acquire some more wool from that source.
Total annual production of apparel wool in Argentina and Uruguay
is, however, probably not more than 300,000,000 pounds. Other
South American sources are of negligible importance.
M Baur
7 /// 9 //
de
U. S. WOOL IMPORTS BY PRINCIPAL COUNTRIES OF PRODUCTION
ANNUAL AVERAGE, 1937 - 1939
(Thousands of Pounds)
Carpet Wool
Argentina
38,256
Uruguay
471
British India
25,994
China
11,104
New Zealand
9,029
U. K. and Ireland
11,682
Others
33,089
Total
129,625
Apparel Wool, Not Finer Than 40's
Argentina
10,892
Uruguay
1,077
New Zealand
4,819
Others
3,049
Total
19,837
Apparel Wool, Finer Than 40's
Argentina
8,293
Uruguay
12,657
Chile
879
Australia
34,883
New Zealand
7,104
Others
9,401
Total
73,217
PSF: Council of national Defense
COPY
2 Wall Street
October 1, 1940.
Hon. Franklin D. Roosevelt,
The White House,
Washington, D. C.
My dear Mr. President:
When I last saw you I told you of the report
being made on economic controls in England at the direction
of the Prime Minister. I promised to see that you would
have a copy of that report. However, it occurred to me that
you would rather have that taken up with you by Ed Stettinius
who framed the questions and I have, therefore, sent copies
of the report direct to him.
You may be interested to know that, at the
direction of the Prime Minister, seven men were placed at
work on this report and they canvassed all the various depart-
ments in order to make it complete. It seemed to me that you
might find many items of interest in this study.
Sincerely yours,
(Signed)
Bill Donovan
PSF: Council of Not.
THE ADVISORY COMMISSION TO THE COUNCIL OF NATIONAL DEFENSE
FEDERAL RESERVE BUILDING
WASHINGTON, D.C.
1
pusmul
October 3, 1940
Memorandum to the President
From E. R. Stettinius
Subject: PACIFIC COAST STEEL INDUSTRY
STUDY
You will recall our recent conversa-
tion relative to steel production on the
Pacific Coast.
You will find herewith a chart
showing capacities, production, and con-
sumption of the various producers, which
I am sure you will find of interest.
YOUCOMA
PACIFIC COAST STEEL INDUSTRY
(TERRITORY INCLUDES WASHINGTON, OREGON, CALIFORNIA, IDAHO, UTAH, NEVADA & ARIZONA)
CAPACITY
PRODUCTION AND CONSUMPTION OF
THOUSANDS OF NET TONS
FINISHED STEEL IN % OF TOTAL U.S.
FINISHED
COMPANY
PIG IRON
INGOTS
STEEL
PRODUCTION
CONSUMPTION
Pocific Coast
Pacific Coast
U.S. STEEL
193
494
342
2%
6%
BETHLEHEM
-
426
363
JUDSON
-
86
54
PACIFIC STATES
-
55
41
NORTHWEST
-
17
13
WEST COAST
-
-
13
SIMMONS
-
-
11
SIERRA
-
-
-
Rest of
Rest of
U.S.
U.S.
TOTAL
193
1078
837
Organized March 1940 for electric reduction of iron ore
PROD'N & CONSUMP'N OF FINISHED PRODUCTS
SOURCE OF FINISHED STEEL CONSUMED
PRODUCTION
CONSUMPTION
THOUSANDS OF NET TONS
Thousands of Net Tons
1,000
o
100
200
300
400
TUBE PROD'S
800
TIN PLATE
BARS & L'T SHAPES
600
WIRE RODS & PROD'S
PLATES
400
HEAVY SHAPES
RAILS
200
SH'TS a STRIP
GALV. SH'TS
ALL OTHER
PACIFIC
o
BIRMING-
SPARROWS
ALL
COAST
HAM
POINT
OTHER
PRODUCTION
SOURCES
COMMENTS
(1) Available iron ore deposits are restricted in
(4) Scrap is avoilable in sufficient quantities to
size or not economically located.
support a reasonable expansion in the steel
(2) Coking coal is scorce. Only supply close to
industry.
iron ore deposits is in Utah.
(5) Possibilities of increasing production are
(3) Electric power supply is ample. In this connec-
complicated by the fact that steel which is now
tion it should be noted that:
brought into the Pacific Coast market consists
(a) Electrical production of pig iron from iron
of o wide range of products, grades and sizes.
ore is practicable only with extremely low
The consumption of individual items is not large
power cost.
enough to permit economic local production.
(b) Electrical production of steel from pig
Even in the cose of such on important classifi-
iron is not commercially feasible.
cation as sheets and strip the total demand
would keep one continuous sheet mill busy only
(c) Electrical production of steel from scrap
six months of the year.
is accepted practice.
National Defense Advisory Commission Industrial Materials Department- September 19, 1940
file
CONFIDENTIAL
PSF:
THE ADVISORY COMMISSION TO THE
COUNCIL OF NATIONAL DEFENSE
FEDERAL RESERVE BUILDING
WASHINGTON, D.C.
INDUSTRIAL MATERIALS DIVISION
WEEKLY OPERATIONS PROGRESS REPORT OF OCTOBER 3, 1940
STRATEGIC MATERIALS
ANTIMONY
Approximately 990 tons antimony arrived in New York from China
via Indo-China last week.
MANGANESE
Interdepartmental Committee approved proposed plan for manganese
procurement.
TIN
Additional stocks of tin obtained this weck. Efforts being made
to arrive at an early decision regarding a tin smelter. Committee
being formed to assist in selecting best smelting process submitted.
Metals Reserve Company not receiving offers as Japan-Axis Pact caused
price to advance over 1¢ per pound.
TUNGSTEN
Approximately 5,500 short tons tungsten arrived in New York last
week via Indo-China.
CRITICAL MATERIALS
AVIATION
Underground Storage Committee discussed designs and bombing
GASOLINE
results in England with Canadian Defense Ministry. Suggested storage
layouts submitted to Army and Navy. Discussions held with Bureau of
Mines regarding survey of crude oils suitable for making high grade
aviation gasoline. Progress made in eliminating legal difficulties
connected with purchase of aviation gasoline but no dofinite action
possible on purchases yet.
CHEMICALS
Military and civilian requirements for nitrogenous materials
reviewed at meeting of Subcommittee of Army and Navy Munitions Board.
Study revealed surplus of nitrogen over next two years, assuming pro-
duction in second year reflected output of new Ordnance owned and
operated ammonia plants.
Ammonia: Study has been mado of relative merits of various sites
for synthetic ammonia plants. Proximity to supply of good coking coal
and low freight rates outstanding requirement.
Chilean vitrates: Comparison disclosed use of Chilean nitrates
instead of synthetic ammonia for manufacture of nitric acid and
ammonium nitrate would cost approximately twice as much.
the
Cotton Linters: Arrangements made for stock piling of bleached
cotton linter pulp by operators of smokeless powder plants.
GRAPHITE
Steamer now at Madagascar loading mica and will proceed to
Tamatave to load some 2,000 tons crystalline graphite. Clearance
obtained by State Department with Vichy Government for this nego-
tiation.
INDUSTRIAL
Negotiations now active with Diamond Trading Company and
DIAMONDS
others. A representative of the Diamond Trading Company is here
from England. A meeting is to be held with him this week to set
up procedure for socuring a stock pile.
ESSENTIAL MATERIALS
LUMBER
Centralized buying of lumber instituted by Quartermaster Corps
at suggestion of Defense Coordinator of Procurement in connection
with four camps released September 28. It is expected this method
will continue on other camps to be released.
STEEL
Members of Steel Group of this Division will attend conference
October 6 called by Leon Henderson between representatives of scrap
and steel industries to discuss procedure for stabilization of scrap
prices.
British Steel Requirements: Application from British for
sources of supply for 20,000 tons of forgings and stampings for
tanks received and names of several companies suggested.
Expediting Deliveries: Urgent request of General Brett of Air
Corps of War Department to expedite delivery on certain steel for
aircraft manufacture is being investigated.
Nozzles, Sleeves and Runner Brick: These products are essential
in open-hearth operations. Information received indicates a possible
shortage in capacity to meet full requirements. Several steel com-
panies surveyed as to present and prospective needs. Arrangements made
with one of the leading producers to confine his activities to above
three products, eliminating all other lines. It is expected this plan
will provide ample capacity for all requirements.
Powdered Iron: Survey of industry to develop adequate capacity
to meet all defense program requirements is being made.
E. R. Stettinius, Jr.
PSF: Council of not. Defore
THE ADVISORY COMMISSION TO THE COUNCIL OF NATIONAL DEFENSE
FEDERAL RESERVE BUILDING
WASHINGTON, D.C.
October 15, 1940
MEMORANDUM TO: Mr. Marvin McIntyre
I think the President would like
to glance at the attached.
ES.
Attachment
LED
COWWISSI
PSF: Council of Nat. Defense
THE ADVISORY COMMISSION TO THE COUNCIL OF NATIONAL DEFENSE
FEDERAL RESERVE BUILDING
WASHINGTON, D.C.
October 11,' 1940
MEMORANDUM TO THE PRESIDENT
From:
E. R. Stettinius, Jr.
Subject: TIN SMELTER
Eight proposals have been submitted to us for a tin smelter in the United
States using Bolivian ores. Early this week these plans were turned over
to a committee of the National Academy of Sciences consisting of four indi-
viduals selected for their technical knowledge. The task of this committee
is to decide on the one best proposal for carrying out tin smelting in the
United States. The following companies have submitted proposals:
Patino Mines and Enterprises
Phelps Dodge Corporation
J. M. Irwin and Company
American Metal Company
Guggenheim Brothers
Hooker Electro Chemical Company
Van den Broek (Dutch Interests)
Port Wentworth Corporation
After two days' examination the committee determined that five of the plans
are about on the same level from the technical standpoint, and now additional
information is being secured to determine cost figures. It is expected that
within the next week a definite determination will be possible as to the one
best plan.
It is anticipated it will take about one year from the determination of the
best suited plan to get a smelter in operation. It is expected that this
plant will be financed by the R.F.C. although at least two of the proposals
were submitted on the basis of the companies' doing the entire financing
themselves.
The accomplishment of this smelter arrangement will in some measure relieve
us from dependency on the East Indies. As is expected the supply of tin will
be drawn practically entirely from Bolivia.
H. Stettinius, Jr
JUT
THE ADVISORY COMMISSION TO THE COUNCIL OF NATIONAL DEFENSE
FEDERAL RESERVE BUILDING
WASHINGTON, D.C.
October 11, 1940
MEMORANDUM TO THE PRESIDENT
From:
E. R. Stettinius, Jr.
Subject:
CRUDE RUBBER
Further progress is being made in building up
the stock pile of crude rubber. The status as
of October 5 is as follows:
Purchased - total
133,632 long tons
R.F.C.
60,641 long tons
Barter
72,991 long tons
Delivered - total
54,016 long tons
Afloat
34,364 long tons
Equal R. Stettinius, Jt.
Fele
PSF:
THE ADVISORY COMMISSION TO THE
COUNCIL OF NATIONAL DEFENSE
FEDERAL RESERVE BUILDING
WASHINGTON, D.C.
October 16, 1940
MEMORANDUM FOR THE PRESIDENT
FROM: E. R. Stettinius, Jr.
The Army-Navy Munitions Board, the chemical industry, and
the Chemicals Division of the Advisory Commission to the
Council of National Defense have worked out practical plans
to meet the first year's requirements of the munitions plants
that have been authorized on the following essential materials,
namely:
Cotton Linters: Toluol; Nitrogen; Sulfuric Acid.
Cotton Linters
Arrangements have been made for the accumulation of a
stockpile of purified cotton linters by utilizing the present
idle purification capacity which will permit the munitions
plants to operate for one year without facing c. shortage of
linters. This program is designed to keep the purification
plants in operation at their capacity throughout this period
thereby eliminating the necessity for a Government owned cotton
purification plant. These purified cotton linters are to be
purchased at a price not exceeding 72# per lb., exclusive of
any storage charges that may be necessary. This will give
the producers of linters a price of 3 to 3 $ per lb. which
is considered a good return to the farmer and likewise a fair
price for the Government. This received the approval of
Mr. Chester Davis' and Mr. Leon Henderson's Divisions before
receiving the approval of the Commission as a whole.
Toluol
Similar action will be taken with regard to toluol just
as soon as the operating contracts for the TNT plants are
signed. In the case of toluol, arrangements are set up to
purchase 10,000,000 gallons at a price not to exceed 30¢ per
gallon. This likewise received the approval of Mr. Henderson
0.8 well as that of the Commission as a whole.
- 2 -
This will stimulate full production from the by-product
coke oven industry. In addition a synthetic toluol plant
has been approved to produce toluol from petroleum at the
rate of 2200 bbls. per day. This plant, together with the
increased production from by-product coke industry will
meet the requirements of the munitions plants now contemplated.
Nitrogen
The industry has cooperated fully by increasing their
nitrogen capacity and in also arranging with the Ordnance
Division to construct two new nitrogen plants, one of 250
tons capacity per day, and the second of 150 tons capacity per
day. These plants have been approved by the Army-Navy
Munitions Board and are awaiting the approval of the Defense
Commission. In addition there is being considered the
construction of a smaller plant at Muscle Shoals.
We have been informed that the two new plants will be
financed in the first instance by industry. Industry has
anticipated the necessity for increased capacity and as a
result have all their engineering plans completed and orders
have been placed for necessary equipment. This in addition
to their present excess capacity will meet the requirements
of the presently contemplated munitions plants.
Sulfuric Acid
There is ample sulfuric acid capacity in the country to
meet all the requirements but in some localities it may be
necessary to increase the production of 40% oleum required in
TNT plants. However this capacity can be added within a
period of not to exceed three to four months and will be
available when the TNT plants are completed.
CONFIDENTIAL
Tile
PSF:
THE ADVISORY COMMISSION TO THE
COUNCIL OF NATIONAL DEFENSE
FEDERAL RESERVE BUILDING
WASHINGTON, D.C.
INDUSTRIAL MATERIALS DIVISION
WEEKLY OPERATIONS PROGRESS REPORT OF OCTOBER 16, 1940
STRATEGIC MATERIALS
CHROME ORE
Additional small tonnage chrome ore purchased. Procurement
plans and specifications approved by Advisory Commission and presented
to R.F.C. for execution. Procurement Division of Treasury to buy
high-grade metallurgical chrome ore from Turkey through British Govern-
ment. Shipping arrangements taking form.
MANGANESE
Procurement plan approved by Export-Import Committee. Purchase
of domestic ore continuing.
MANILA
Meeting held this week with cordage processors for further
FIBER
examination of manila fiber situation.
SYNTHETIC
R.F.C. has assumed responsibility for future development of plans
RUBBER
for producing synthetic rubber. Engineering data received by this
division turned over to R.F.C.
TIN
Meetings held with Bolivian tin producers in attempt to arrive at
terms for contract to purchase Bolivian ores. Definite conclusions
have not been reached. Market price still above Metals Reserve Com-
pany purchase price.
TUNGSTEN
Proposal made last week by domustic producer for over 2,000 tons
of concentrates favorably considered by Procurement but cannot be
accepted with funds available because of time element. We will
recommend to R.F.C. for action.
CRITICAL MATERIALS
AVIATION
Army decided G-4 should review requirements for 100 octane aviation
GASOLINE
gasoline. Accordingly, preliminary meetings held with members of this
group and Joint Aoronautical Board. It is expected conclusions will
be reached this woek.
ALUMINUM
Plans being made for further increases in production of aluminum
to meet military and civilian requirements. It is estimated annual
capacity by July 1942 will be well over double the capacity of 1939.
It is expected increases in aluminum fabricating capacity will keep
pace with production of ingot aluminum and meet demands of defense
program. Bauxite supply sufficient to carry us over period of 8 years.
CHEMICALS
Activated carbon plants approved to be built at Zanesville, Ohio
and Fostoria, Ohio. Several proposals from private industry to con-
struct synthetic ammonia plants under consideration.
Cotton Linters: Offers from private industry to construct
cotton linters bleacheries being considered.
INDUSTRIAL
Possibilities of industrial diamond production in Arkensas being
DIAMONDS
reviewed. Committee of specialists to formulate invitations for bids
and exomine samples. Sample of Diamond Trading Corporation in New
York awniting inspection.
LEATHER
Meeting held this week in Chicago with horsehide tanners. Meeting
to be held October 23 with Federal Specifications Committee to complete
recommendations for changes in specifications covering sole leather.
Survey made and sent to Quartermaster's office of supplies of upper
leather available over next few months.
WOOL
Arrangements consummated by R.F.C. for storage in U.S. of emergency
reserve of 250 Million pounds of British-owned Australian wool.
ESSENTIAL MATERIALS
LUMBER
Lumber awards completed for first four camps covered by policy of
centrolized buying. Instructions given for purchasing lumber for next
four camps to be constructed on same centrolized basis.
Airplane Spruce: Study of Sitka spruce for aircraft construction
being brought up to date.
POWER
Increased power supply for aluminum will require 512,500 kilowatts,
all of which has been arranged for or is in process of negotiation.
E. R. Stottinius, Jr.
PSF:Council of nat. Defance
THE ADVISORY COMMISSION TO THE COUNCIL OF NATIONAL DEFENSE
FEDERAL RESERVE BUILDING
WASHINGTON, D.C.
CONFIDENTIAL
October 24, 1940
MEMORANDUM FOR THE PRESIDENT
FROM: E. R. Stettinius, Jr.
Supplementing the message just given to
you through General Watson, the Aluminum
Corporation have today committed themselves
to a price reduction on aluminum from 18¢ to
17¢ a pound, making it an over-all reduction
of 3# a pound since last year. This announce-
ment will be made on November lst.
Ea
CONFIDENTIAL
PSF:
THE ADVISORY COMMISSION TO THE COUNCIL OF NATIONAL DEFENSE
FEDERAL RESERVE BUILDING
WASHINGTON, D. C.
INDUSTRIAL MATERIALS DIVISION
WEEKLY OPERATIONS PROGRESS REPORT OF OCTOBER 31, 1940
STRATEGIC MATERIALS
ANTIMONY
The recommended stock pile has been increased from 10,000 to
18,000 Short Tons. Over 33% of this has been purchased. Prospects
for continuance of imports from Mexico are encouraging, some 5,600
Tons coming from this source in 1939.
CHROME ORE
Revised specifications on metallurgical ore accepted by the Army
and Navy Munitions Board and ore contract has been let. Efforts
continue to move metallurgical ore from Turkey. Arranged for purchase
of metallurgical lump ore from Now Caledonia. Negotiations started
with domestic concern for development of deposits in Alaska.
MANGANESE
Additional tonnage manganese ore purchased. Consulted with
United States Geological Survey and Bureau of Minos regarding survey
of manganese and other strategic mineral resources of Cuba.
MERCURY
Domestic production for September was a new record. Additional
purchases mado from Arkansas field.
QUININE
Deliveries have been made of over 11% of the programmed stock
pile. Sufficient bark is in this country and being processed to take
care of an additional 40%. Another 40% has been purchased and is
awaiting shipment, and the other 10% is afloat. The situation is
being resurveyed to ascertain whether additional quantities will be
necessary.
RUBBER
This Division is following certain tests boing made of rubber
yielding bushes and trees grown in the Western Hemisphere. Tests will
be hold this week. It is expected that small quantities of rubber may
result which would make this source available in case of extreme short-
age.
TIN
The Technological Committee is still working on its investigation
concerning tin smelter.
TUNGSTEN
Contract arranged with an American company for the purchase of
tungston concentrates. Purchase is to be made by the Metals Reserve
Company which has accepted our recommendations.
THE
- 2 -
CRITICAL MATERIALS
CHEMICALS
Additional proposal received to build with private capital a
nitrogen plant in the Middle West of one hundred tons per day capa-
city. Proposal also received for an ammonia plant which appears to
have low cost possibilities since it will be located near the Gulf
Coast, where there are large quantities of hydrogen available.
GRAPHITE
Shipment of graphite from Madagascar has been considerably ex-
pedited and relatively large tonnage in shipment will considerably
relieve shortage now experienced by the trade.
INDUSTRIAL
Facilities for inspection, storage, etc. in the New York Procure-
DIAMONDS
ment Office are being perfected.
LEATHER
Discussions were had with the Quartermaster Corps regarding
modification and specifications to broaden possible sources for
leather supply and thus contribute toward better price stability in
the ontiro markot. Quartermaster Corps procurement officers have
been advised of the advantages to be gained by advance information
regarding requirements.
ESSENTIAL MATERIALS
LUMBER
Arrangements have been made with the Bureau of Research and
Statistics to determine supplies and requirements for lignum-vitae
and toak. Investigation shows that supply of lumber is adequate for
all purposes.
POWER
The Bonnevillo administration has brought to our attention the
need for special expediting of materials required for serving the
Aluminum Company of America in the Bonneville arca. This Division
was represented at & special meeting of the Federal Bureau of Inves-
tigation, the Federal Power Commission, and the Utilitios on the sub-
ject of time bombs in and around power stations.
STEEL
Machined Stool Casting Capacity: Meeting hold last week of
presidents of outstanding steel casting companies and tank manufactur-
ers to discuss requirements and capacities for cast armor for medium
tanks. Colonel Warner of the Ordnance Department presided.
British Steel Requirements: Progress made in conjunction with
homogeneous armor plate plant of the Republic Steel Corporation.
Plant designed to be adequate for British requirements and to be
available in event of need for U. S. tanks.
Diamond Dios: Information gathered on plants manufacturing dia-
mond dies. Committee being assembled to prepare report with recommen-
dations as to how to care for needs.
CODE byout blobourt to ST20 190 are 10180 LOCOTING STUCK 76
FIGHT 102 7 0 / 1 85 8
and
curraive
AMOUNT
- 3 -
Shut-down and Unused Open-hearth Capacity: Survey being made
to determine excess capacity available and connect it with plants
where requirements are boyond capacity.
E. R. Stettinius, Jr.
File
PSF:
THE ADVISORY COMMISSION TO THE COUNCIL OF NATIONAL DEFENSE
FEDERAL RESERVE BUILDING
WASHINGTON, D.C.
INDUSTRIAL MATERIALS DIVISION
WEEKLY OPERATIONS PROGRESS REPORT OF NOVEMBER 7, 1940
STRATEGIC MATERIALS
CHROME ORE
Additional small tonnage chrome ore purchased. Movement of ore
from Turkey hampered by invasion of Greece, but ships have now been
secured to take large proportion of this. Contracts under negotiation
for substantial tonnage metallurgical ore from Southern Rhodesia.
Licensing of chromium chemicals discussed.
MANGANESE
Additional tonnage manganese ore purchased. Amount contracted
for now exceeds recommended stockpile, but failure of delivery of
large proportions domestic ore expected. Continued discussions on
development of Brazilian manganese resources.
MERCURY
Production continues to exceed domestic requirements.
RUBBER
Laboratory analyses being made of rubber content of rabbit bush,
guayule and cestilla, and of percentage extracted by Stacom process.
Quantity available probably will not warrant expense involved.
TIN
Contract signed with Bolivizn tin producers. Report from Techno-
logical Committee on tin smelter expected this week.
Geological survey is going to send representative to investigate
available tin supplies after necessary clearances effected through
State Department.
CRITICAL MATERIALS
AVIATION
Discussions held this week with Army and Navy representatives on
GASOLINE
100 octane storage program. Final recommendations and estimates of
requirements for next few years expected from Army within a few days.
Report of Advisory Committee of Engineers on underground storage com-
pleted and has been submitted in part to Navy representatives.
CORK
Review of cork situation under way.
ESSENTIAL MATERIALS
PULP AND
Wood Pulp: Quantity available for purchasing mills not equal to
PAPER
requirements but consumption somewhat less than normal.
PULP AND
Waste Paper: Ample supply available; demand has increased.
PAPER(con)
STEEL
British Steel Requirements: Republic Steel Corporation armor
plate plant contract prepared and awaiting cable approval from England
for final execution.
Chrome-Molybdenum Seamless Tubing: Requirements heavy for air-
craft program; survey being made of plant capacity.
Diamond Dies: Progress made in providing adequate supply for
our own and British requirements.
Extra Wide Plates: Contract prepared by Navy to provide full
utilization of 206" wide plate mill of Lukens Steel Company.
Galvanized Roofing and Siding: Quartermaster using galvanized
roofing and siding in cantonments.
Homogeneous Armor: Plant facilities required to take care of
newly developed Navy need for homogeneous armor plate. Requirement
several thousand tons for splinter plates.
Specifications: Steel Specification Committee submitted rec-
ommendations for expediting steel production by simplifying existing
specifications. Follow-up procedure set up to take advantage of
recommendations.
E. R Stettinius, Jr.
Came to file nov 8-1940 8
PS Council of National Defense
ALUMINUM-ESTIMATED MONTHLY SUPPLIES VS TOTAL REQUIREMENTS
JANUARY, 1939- - JULY, 1942
80
80
70
70
TOTAL REQUIREMENTS ASSUMING
CIVILIAN REQ'TS STABILIZED AT 1940 LEVEL
60
60
SECONDARY
PRODUCTION
50
50
MILLIONS OF POUNDS
IMPORTS
TOTAL SUPPLY
40
40
MILLIONS OF POUNDS
30
30
PRIMARY PRODUCTION
20
20
10
10
o
Dec
Mar
Jun
Sep
Mor
Jun
Sep
o
Dec
Dec
Mar
Jun
Sep
Dec
Mar
Jun
Sep
Dec
1939
1940
1941
1942
National Defense Advisory Commission- Industrial Moterials Department October 18, 1940
CONFIDENTIAL
PSF:
THE ADVISORY COMMISSION TO THE COUNCIL OF NATIONAL DEFENSE
FEDERAL RESERVE BUILDING
WASHINGTON, D.C.
INDUSTRIAL MATERIALS DIVISION
WEEKLY OPERATIONS PROGRESS REPORT OF NOVEMBER 14, 1940
STRATEGIC MATERIALS
CHROME ORE
American and British efforts have been successful in chartering
neutral ships to move Turkish metallurgical ore. Negotiations con-
tinuing for purchase of 75,000 tons of Rhodesian metallurgical ore.
MANGANESE
Additional tonnage of South African ore purchased by Metals
Reserve Corporation. Ore ready for shipment.
MERCURY
On recommendation of this Commission, Army and Navy Munitions
Board has lowered stockpile to 10,000 flasks. Funds previously allo-
cated to purchase of excess are being transferred to purchase of chrome
ore.
QUARTZ
Negotiations under ray by Procurement Division for major part of
CRYSTALS
remaining stockpile requirements.
RUBBER
Accumulation of stockpile slowed by rise in price above maximum
agreed upon. International Rubber Regulation Committee meeting in few
days and may authorize additional releases of rubber which should cause
price to recede so that purchases may be resumed. Manufacturers
studying new processes of tire manufacture using metallic plies to con-
serve use of rubber.
SYNTHETIC
Du Pont has just started operation of now plant, doubling available
RUBBER
supply of neoprene from 500,000 pounds to 1,000,000 pounds a month.
Du Pont, on its own initiative, has instituted priorities for neoprene
to assure fulfillmont of defense requirements.
TIN
Additional small tonnage purchased by Motals Reservo Corporation
for stockpile.
TUNGSTEN
Stockpilo figures of Army and Navy Munitions Board lowered at sug-
gestion of this Commission. Funds previously allotted turned over for
purchase of chrome ore. Chinese ore now moving down Burma Road and
additional will be moving to this country as soon as shipping arrange-
ments offected.
CRITICAL MATERIALS
AVIATION
Agreement made with Army and Navy representatives for purchase and
GASOLINE
storage of 100 octane gasoline. Recommendation made to Secretaries of
War and Navy that purchases be made directly by appropriations.
Report of Advisory Committee of Engineers on avintion gasoline storage
distributed to those interested in the service departments. Report
will be used as basis for design of majority of tanks installed in 1941.
CHEMICALS
Strontium chemicals recommended to Ordnance Department for im-
mediate purchase. Production facilities comparatively small.
Cotton Linters: Purchase of bleached cotton linters by operators
of munitions plants under orders of Ordnance Department proceeding nor-
mally and comparatively large tonnage has been acquired.
Coke: Survey being made of coke supplies and requirements. Also
a regional survey and estimato of new construction of coke ovens is
being made.
ESSENTIAL MATERIALS
COPPER
Report propared on requirements, uses, and available supply of
copper. Meeting held with loading copper producers in which this re-
port was the basis of discussion. Data secured from this meeting being
used to complete study.
LUMBER
Housing requirements for 1,000,000 men in military service will be
90 per cent completed by January 1, 1941. No delays encountered be-
cause of lack of lumber.
POWER
Survey boing made by Federal Power Commission of present and possi-
ble future power requirements, this to give a factual basis for planning
any program of expansion.
STEEL
Iron Ore: A statistical study has been made of the status of iron
ore supplies through the winter poriod and indications are that there
will be an adoquate supply available right up to the first of May when
tho Lake shipmonts are resumed.
TEXTILES
Material benefits expected from relaxation of requirements that
100 per cent domestic wool be used by Army. War Department action will
tond to ease prices.
Uniform Cloth: To relieve situation in cotton khaki uniform twill,
alternate specifications have been worked out with Quartermaster Corps.
This will provide several million yards within the next fow months and
will allow additional mills to participato whose machinery was not
adaptable to regulation cloth.
ZINC
Report completed on requirements and capacity for civilian,
defonse, and British needs. Meeting this week with the industry to
discuss current position and possible expansion of smelting facilities.
E. R. Stottinius, Jr.
11/20/40
Dear Pa,
Will you please clear this with
the President? Many thanks.
Ea
CONFIDENTIAL
PSF:
Tile sonal
THE ADVISORY COMMISSION TO THE
COUNCIL OF NATIONAL DEFENSE
FEDERAL RESERVE BUILDING
WASHINGTON, D. C.
INDUSTRIAL MATERIALS DIVISION
PSF
WEEKLY OPERATIONS PROGRESS REPORT OF NOVEMBER 20, 1940
STRATEGIC MATERIALS
ANTIMONY
Substantial part of the recommended stockpile has been secured.
Further accumulation not being made as Munitions Board has not ap-
proved stockpile accumulation as recommended by Defense Commission.
MERCURY
Domestic production now exceeds consumption. Industry stocks
increasing; therefore no additional stockpile accumulation is being
made.
MICA
Negotiations with the British Government for mica purchase are
continuing. Prompt decision expected.
QUARTZ
Contracts for purchase of major portion of remaining requirements
CRYSTALS
arranged by Procurement Division. Sizable deliveries will be made
within next few months.
RUBBER
Stocks of crude rubber in the hands of tho industry and the
Government as of October 31 are as follows: In the United States,
259,140 tons; afloat for the United States, 166,837 tons, a record
high figure.
TIN
Final report of Technological Committee studying tin smelter ro-
ceived, and passed to Reconstruction Finance Corporation for final neg.
tiations on four proposals which have been made. Small. addition to
stockpile purchased during this week.
TUNGSTEN
Additional Chinese ore to be shipped from Rangoon during December
Heavy increase in demand for ferro-tungsten for defense orders has de-
veloped, necessitating releases from stockpile.
CRITICAL MATERIALS
AVIATION
Purchasing of stockpile still awniting agreement by War Departmen
GASOLINE
officials on quantities and arrangements for storage program.
CHEMICALS
Potash: A survey of potash supplies indicates temporary shortage.
Two largost producers building additional capacity. Elimination of ex-
ports will make possible meeting domestic demands.
Patents: As A result of meetings with Patent Commissioner Coe, a
Patent Advisory Board is to be set up to cooperato with the patent
office regarding withholding patents of military value.
THE
Paint Industry: Survey of paint industry indicates ample supply
of all raw materials. Some shortage of Chinese wood oil is apparent
but substitutes available. Shortage of shellac also but curtailment
use and substitution of synthetic finishes will meet needs of this ty]
of coating. White lead, zinc oxide, and other pigments for paint pur-
poses show ample production.
Year's supply of iodine on hand; additional stocks can be acquire
on short notice.
GRAPHITE
Shipment of graphite from Madagascar due here early in December.
This will relieve the situation in the industry considerably.
INDUSTRIAL
Meeting by Procurement Division planned with industrial consumers
DIAMONDS
to review specifications for purchase of diamonds and for stockpile.
ESSENTIAL MATERIALS
COPPER
Study under way of exports to determine flow of export copper;
method of importing foreign copper for stockpile purposes is under in-
vestigation.
LUMBER
Lumber procurement and deliveries proceeding in accordance with
requirements. More orderly Government buying evidently bringing lower
prices.
POWER
Arrangements are actively under way to meet the various power re-
quirements as the needs for the aluminum prdgram develop. These
involve both private and public supplies.
STEEL
British Requirements: New British requirements for gun forgings
will require immodiate survey of forging plants to determine available
capacity. Present plants capacity substantially taken up with United
States requirements. Survey being arranged.
Chrome Molybdenum Seamless Tubing for Airplanes: British and
United States airplane requirements for chromo molybdenum scamless
tubing have been summarized and demands so large that additional plan
will have to be established. Two definite possibilities for such add
tional plants have been provided.
Copies of emergency plant facilities contract forms, togother wi
application for certification being sent to all interested steel com-
panies.
ZINC
Meetings being held concerning zinc requirements and supplies.
E. R. Stettinius, Jr.
PSF: Council of National Defense
file
HSDF
MEMORANDUM
2-40
November 20, 1940
TO:
The President
FROM:
Leon Henderson
SUBJECT: In lieu of seeing the President
Here are a few observations about the Defense
Commission.
1. The great volume of contracts has been placed.
(About $9.6 billion) The level of business activity is the
highest (128 FRB) in the nation's history, and the wholesale
price level is about 80. (It was 96 in 1929 and reached 88 in
1937.) When the Commission started, there were no shortages
of raw materials, skilled labor or capacity to produce. Under
these circumstances, any mistakes in timing of contracts,--
and there were many -- were mostly concealed by the wealth of
unused resources. (Lumber and wool got out of hand.)
2. The Army is said to have a $6 billion request
in the making, and the Navy $2 or $3 billion. Knudsen's bomber
program would require $2 billion. The British want about $4
billion. Auxiliary defense requests (defense highways, etc.)
probably total another $1 billion. Regardless of the size of
your budget a substantial increase in defense orders 1s facing
en economy which is now encountering bottlenecks. It seems
clear to me that some programming is decidedly in order and
that precious, golden months will be lost unless certain ele-
mentary decisions are made, -- decisions which involve high
policy, but which are needed if Knudsen, Nelson, Hillman and
myself are to do our proper jobs.
3. I feel you should know in advance that the
Defense Commission will shortly make a suggestion to you that
you ask an informal group, consisting perhaps of State, War,
Navy, and some defense commissioners, to organize the acute
questions, with adequate material necessary for your determina-
tion. If this group contained Forrestal, Patterson, Wells,
Knudsen, Nelson and myself, it would represent most of the
necessary elements for planning defense policies. Those
responsible for defense need to know the best guesses as to
what we will be defending, when -- and particularly, what it
-2-
takes in the way of planes, guns, ships, tanks and supplies.
Also -- what can the British, and other foreign countries, get.
Also, how much the country can produce. Once determined,
Fiscal and Monetary Policy and Labor Supply would also need to
be brought into the picture.
4. The above would furnish a basis for Knudsen's
production scheduling, Nelson's procurement planning, and
Hillman's labor supply. (I just can't speak too emphatically
about the critical necessity of getting these under way. If
we did, a lot of priority and price headaches of later months
could be avoided. Nelson, particularly if you gave him the
go-ahead sign, could use idle capacity now for items we are
sure to need later.)
5. There is clear need, too, for outlines and some
action in our country for what the Briti sh call "economic war-
fare". You will receive soon a memorandum from the Commission,
prepared by Ed Stettinius and me, indicating the tremendous
stock-piling which Japan seems to be carrying out through pur-
chases here for her own and Germany's account. (The British
Ambassador will probably speak to you also.)
We will surely need many of these items and we could
help the British by "preclusive buying" of many goods -- besides
helping the South American program in the bargain.
Beyond this are several other economic matters which
might well be synchronized in the Commission, if you desired,
such as:
A. Canadian-American economic and industrial
collaboration.
B. Foreign ownerships in this country in-
cluding patents, stock ownerships, etc.
We might need this in a hurry. (I talked
with Lord Melchett at length about this.)
The Russians are buying copies of all our
patents since 1934.
C. Participation of American companies in
foreign cartels, patent pools, etc. (Bausch
and Lomb, and Sperry Gyroscope are examples.)
D. New plans for broader export and import
control.
E. Gold purchasing policy - Japan, Russia, etc.
-3-
Floyd Odlum is giving me some quiet help in reviewing these
matters and applying his ingenuity to suggestions. If you
disapprove, please lot me know.
6. The time has come, I believe, to tighten up on
centralization of purchasing. Nelson has gotten real control
over many quartermster items, and to my mind, has prevented
several scandals. I'm scared about other fields. I'll never
feel right until all procurement is centralized.
7. The Commission may soon suggest to you that all
contracts up to date be reviewed, preferably by a special board,
before the new Congress comes in. This board could suggest
lessons to be learned re contract policies, organization, and
might, if personnel is well selected, stave off incipient con-
gressional interferences.
8. The Commission still needs a Co-ordinator and
Don Nelson 18 still the best bet. he would be elected, almost
unemimously, if you wanted to handle it this way.
9. Knudsen ought to give up his "clearance of con-
tracts" function, turn it over to Nelson, and pay real attention
to expediting plane and other defense material production. (You
could get plane production figures from Morgenthau's men, George
Haas, and check up independently.)
10. The Defense Commission ought to review Army and
Navy buiget requests.
11. I understand many persons have charts or plans for
reorganizing the Commission,-- including Knuisen, Harold Smith
and Stettinius.
12. No one is pushing the new British program which
has been kicking around for five weeks. Your 50 - 50 policy
needs to be spelled out to Knudsen and the Army.
Leon
PSF: Council of Nat. Defense
a
am
THE ADVISORY COMMISSION TO THE COUNCIL OF NATIONAL DEFENSE
FEDERAL RESERVE BUILDING
WASHINGTON, D.C.
2-uu
November 26, 1940
Dear Missy,
In the enclosed letter to the President
I have noted my observations concerning the opera-
tion of the Defense Commission. I feel that it
is extremely important that the President receive
these at this particular moment and will appreciate
your handing him the letter.
With warm personal regards, I am
Sincerely,
PSF: Council of Nat. Defense
THE ADVISORY COMMISSION TO THE COUNCIL OF NATIONAL DEFENSE
FEDERAL RESERVE BUILDING
WASHINGTON, D. C.
November 26, 1940.
The Honorable,
The President of the United States,
Washington, D. C.
My dear Mr. President:
Permit me to volunteer some observations
from within the Defense Commission.
McReynolds has done a remarkable job. In
his highly original and wise manner, he has, during the
formative period of the organization, kept the Commission
in the line of progress while at the same time he has
recognized each Commissioner as being supreme in his own
function. This has kept morale and initiative at a high
pitch and has done much to overcome the business man's
innate dread of "red tape" in Government.
The formative period is over. The hard pull
lies ahead. The great vote of confidence in you has
eliminated suspense. All hands are on deck for full steam
ahead. They don't want a Chairman - they want you as the
"boss" and they want more definite clearance, more direction
of procedure. I feel this in my contacts with members of
the various staffs and with the Commissioners themselves.
First they feared they would be hampered. Then,
thanks to Mac's unsurpassed technique, they were delighted
that they were not. Now they have confidence and would
welcome, - in fact, they want him to tighten clearance,
procedure and administrative control. We are making every
effort to render more effective the coordination and central
administrative machinery of the Secretary's Office. We are
also working to make contract procedure tighter, to insure
orderliness and protection to the Government.
DC
50*
LEDENVI MEDERAL entroine
ARE CONWI2210N 10 THE СОЛИСТГ OE
To the President,
Page 2.
A word from you to McReynolds, to take a
stronger hand, would do the trick. I feel certain the
Commissioners would welcome a gathering within the
Office of the Secretary of all clearance functions, both
with the Commission and with other government agencies.
He has been asked by three Commissioners to do just this,
but he will not without a word from you.
Strengthening of Mac's position as head of the
Office of Emergency Management would in no wise dampen the
ardor of any Commissioner, whereas the superimposing of a
strong Chairman definitely would. They would always know,
with Mac, that they could contact you directly when necessary.
This I believe is the psychological time to
draw closer without a change of structure. In this way,
individual initiative and action would be rendered more
effective and intelligent by virtue of better understanding
of a centralized procedure for clearance of contracts,
locations, policies and ideas.
The presumption of this letter I consider my
duty. Mac would not. I must. I am confident the Commis-
sioners would sustain my observations.
Faithfully yours,
Sidny Showood
CONFIDENTIAL
PSF:
THE ADVISORY COMMISSION TO THE COUNCIL OF NATIONAL DEFENSE
FEDERAL RESERVE BUILDING
WASHINGTON, D. C.
INDUSTRIAL MATERIALS DIVISION
WEEKLY OPERATIONS PROGRESS REPORT OF NOVEMBER 28, 1940
STRATEGIC MATERIALS
CHROME ORE
Large additional tonnage contracted for in the Philippines to be
brought in for stockpile as rapidly as shipping facilities are avail-
able. Turkish ore now being loaded in Greek bottoms. Negotiations
under way for two additional boats, one to come directly by way of
the Suez and the other for trans-shipment outside of the war zone.
Negotiations under way looking toward development of extensive low
grade deposits in Montana.
MANGANESE
Arrangements made by the Metals Reserve Corporation for the pur-
chase of additional large tonnage South African ore. Deliveries from
previous purchases just starting.
MICA
Negotiations with the British Government for mica purchases con-
tinuing.
QUARTZ
Inspection is bottleneck. Steps recently completed by Procure-
CRYSTALS
ment in cooperation with Bureau of Standards to speed up inspection.
Shipments of large proportion of stockpile contracted for being held
off until material on hand has cleared inspection.
RUBBER
Further purchases of crude prevented since markot price remains
above maximum stockpile purchase price.
TIN
Additional tonnage purchased by Reconstruction Finance Corpora-
tion. Current price slightly above maximum stockpile price. Tin
smolter negotiations are expected to be completed shortly.
TUNGSTEN
Additional tonnage of California concentrates purchased by Metals
Roserve Corporation. Delivery to start middle of 1941 because of
needed increase in mine and plant capacity.
CRITICAL MATERIALS
AVIATION
Revised program of War Department on 100-octane gasoline has not
GASOLINE
yot been roceived. Figures shortly available showing war and peaco
demands for both Services over next fow years will serve to decide
whether proposed purchases of 100-octano gasoline for 1941 are adequate.
CHEMICALS
Chemical Division has recommended purchase of large tonnago of
OSIVOA 3HT
Chilean nitrate to further facilitate the friendly Western Hemi-
sphere interchange.
INDUSTRIAL
Further discussions being held on the seloction procedure and
DIAMONDS
the settling of certain policies regarding the source of supply and
the methods of selection.
ESSENTIAL MATERIALS
LUMBER
Cantonment Construction: Conference hold with Production De-
partment, contractors, representatives of the Quartermaster Corps to
discuss progress on Northorn cantonments and straighten out any sup-
ply difficulties encountered. Two additional conferences to be held,
one in the South and one in the West to cover cantonments in thoso
areas.
Toak and Lignum-vitau: Conference held with British lumber
representative and other United Statos Government agencies to discuss
supply of tock and lignum-vitae. No current conflict in the noods of
the two Governments. Agreed to hold conference regarding Sitka spruce
for aircraft in case of conflict with British needs.
POWER
Efforts continued to socure power requirements for aluminum
company at two locations; one involving 50,000 kilowatt hours has
been assured as available by the Federal Power Commission and the
other is being given further attention and study.
STEEL
Specifications: Committoe of the industry on specifications is
working on revision of specifications for steel shells. Changes ox-
pected to expedite greatly production of shells. Specifications for
wire and other products involving chemical and physical limits have
been amended DO ns to nake production more practical and thus facili-
tate supply.
TEXTILES
Conference with representatives of Agriculture and Tariff Com-
mission unanimously recommended all foreign cottons of staplo length,
1 and 11/16 inches and over, be exempted from import quotes. Tariff
Commission has recommended favorable action on this.
ZINC
Survey of requiroments and supply indicates that shortage in
zinc smelting capacity is being remodied by construction now in pro-
gress or planned. Method of cstimating zinc requirements for brass
fabricating capacity are boing reviewed to check accuracy of methods
as additional assurance that capacity is sufficient for all neuds.
CONSERVATION AND RECLAMATION
Moeting held with ropresentatives of Division of Transportation
and State and Local Cooperation and Westo Matorial Doalors. Further
conference to be held with representatives of scrap iron and steal
institute. Additional meeting arranged with scrap and ruclaimed
rubber industry.
Stottinius, Jr.
PSF-National Defends
COUNCIL OF NATIONAL DEFENSE
22 the
COORDINATOR OF COMMERCIAL AND CULTURAL RELATIONS
BETWEEN THE AMERICAN REPUBLICS
STATE DEPARTMENT BUILDING
WASHINGTON. D.C.
November 29,1940
Dear General Metson:
I neglected to leave this report
with the President after the meeting yesterday.
Would you be good enough to give it to him for
me? Many thanks.
Sincerely, Wism Q Rougella
Nelson A. Rockefeller
Coordinator
Brigadier General Edwin Watson
Secretary to the President
Washington, D. C.
COUNCIL OF NATIONAL DEFENSE
COORDINATOR OF COMMERCIAL AND CULTURAL RELATIONS
BETWEEN THE AMERICAN REPUBLICS
STATE DEPARTMENT BUILDING
WASHINGTON, D.C.
November 28, 1940
MEMORANDUM
FOR:
THE PRESIDENT
FROM:
NELSON A. ROCKEFELLER, COORDINATOR
SUBJECT: CURRENT DEVELOPMENTS
This memorandum summarizes a few of the current develop-
ments in the program of this office.
I
SPECIAL MISSION INVESTIGATING AGENCIES AND EMPLOYEES OF AMERICAN
FIRMS AND CORPORATIONS DOING BUSINESS IN LATIN AMERICA
PURPOSE: Immediately after the creation of the
office of Coordinator, a special mission was sent to
Central and South America to verify charges that cer-
tain United States concerns which operate branches or
use agencies in the other Republics are employing
aliens whose strong totalitarian interest, sympathy or
affiliations are prejudicial to the United States and
other democratic nations. In many cases it was charged
that advertising funds supplied by American firms, and
at the disposal for placement by their agents, were being
contributed to the maintenance of hostile newspapers in
the other Republics. The mission also was requested to
study and propose practical business alternatives for
firms which might be asked to change their agencies or
to discharge employees.
PERSONNEL: The mission is composed of two represent-
atives of this office, one representative of the State De-
partment and one from the Federal Bureau of Investigation.
REPORT: The mission has now studied the situation
in fourteen countries and has filed detailed reports which
contain (1) conclusive evidence to substantiate charges
against many agencies and (2) practical recommendations for
changes of agencies and employees. The reports of the
-2-
establish clearly that:
1. Large numbers of American firms are now
represented by German, Italian, national
and & few Japanese agents who are un-
questionably strongly pro-Nazi.
2. In all cases, except that of Bolivia,
national or American firms exist which are
fully qualified to handle virtually all
the accounts now held by undesirable agents,
at least as well as they are now being
handled.
3. A majority of the pro-Nazi agents are now
soliciting American accounts with the
expectation of dropping them as scon as
normal trade is restored.
4. Substantial amounts of advertising are
being placed in anti-American newspapers
by agents of American firms, frequently
without regard to the possible value of
the advertising from a business standpoint.
substantial amount of important information on
radio programs, and news services has also been in-
ports.
body of information has been made available to
tment, the Commercial Intelligence Division of the
mmerce, which is constantly answering inquiries of
to the Treasury Department for use in connection
control, and to the Federal Bureau of Investigation.
now prepared to move into the action stage through
approach to American firms. Three members of the
urning to this country on December fourth, and there
all the interested departments that prompt action
taken.
hereto is a map which spots the cities covered by
mission.
LATIN AMERICA
-
-
has
-
I
-
-
-
-
-
-
Limi
-
-
-
-
-
Sex
I
Parts
caps
Burnes -
CITIES REPORTED BY SPECIAL MISSION
SENT BY COORDINATOR'S OFFICE
DE
to
September to December, 1940
-
:
-3-
II INTER-AMERICAN DEVELOPMENT COMMISSION
The Inter-American Development Commission is sending
the Vice Chairman of the Commission, Mr. Oreamuno, and one
of the Commissioners, Mr. Magalhaes, to South America
next week for the purpose of establishing advisory sub-
committees of the Commission in the capitals of the ten
South American Republics.
This mission has been discussed with Under-Secretary
of State Sumner Welles, who has promised to enlist the
active cooperation and support of the United States Diplo-
matic Missions throughout South America and who, acting in
his capacity as Chairman of the Inter-American Financial and
Economic Advisory Committee, will also request assistance
and cooperation of the various Latin American Governments
concerned.
The mission of Mr. Oreamuno and Mr. Magalhaes will
cover South America and a second mission will be dispatched
to set up sub-committees in the Republics of Central America,
Mexico and the Caribbean areas.
By establishing representative committees of the Inter-
American Development Commission, composed of nationals of
their respective countries, it is believed that the work of
the Commission will be greatly expedited in stimulating in-
creased trade between the Americas and in stimulating growth
of industrialization in Latin America.
III REDUCTION OF POSTAL RATE ON BOOKS TO LATIN AMERICA
For a considerable period of time the high postage rate
on books to Latin America has handicapped efforts to promote
a more effective cultural interchange in the field of litera-
ture. The postal rate for books to Latin America is 12¢ a
pound, the domestic rate is 124 a pound.
It has been cheaper to send books from Europe to Latin
America than from this country. We have been able to send
books to the Philippine Islands and Hawaii more cheaply than
to Mexico and countries south.
-4-
During the past week this Office has discussed the
matter with the Post Office Department and it now appears
that the Postmaster General will agree to a reduction of
the rate to 4¢ a pound. The Cultural Relations Division of
the State Department, the representatives of the Library of
Congress, as well as publishers, are agreed that the decrease
in the rate will result in a very substantial increase in
the number of books sent to South America. It will enable us
to take real advantage of the fact that book shipments from
Europe have now been cut off completely.
/
12/5/40
-
Dear Pa,
filedintal
Will you please clear this with
the President? Many thanks.
Ea
stell. 2-40
CONFIDENTIAL
PSF:
THE ADVISORY COMMISSION TO THE COUNCIL OF NATIONAL DEFENSE
FEDERAL RESERVE BUILDING
WASHINGTON, D.C.
PSF
INDUSTRIAL MATERIALS DIVISION
WEEKLY OPERATIONS PROGRESS REPORT OF DECEMBER 5, 1940
Aviation Gasoline In connection with the 3,000,000 barrel stockpile, the Indus-
trial Materials Division believes that 2,000,000 barrels
should be accumulated before July 1, 1941 and 1,000,000
barrels between July 1 and December 31, 1941. By December
of next year a slight addition to production capacity will
be required.
Petroleum Advisory Committee. It has been suggested that
the Army and Navy Munitions Board set up a Petroleum Advisory
Committee so as to obtain reasonable estimates of require-
ments in respect to other petroleum products.
Chemicals
Potash. Meeting was held with the heads of the leading
companies producing potash, with a view to securing adequate
supplies for agriculture and the National Defense Program.
Ammonia. Because of large industry stocks the anticipated
supply of ammonia and ammonia compounds is believed adequate
to meet the estimated overall demand.
Patents. A committee has now been set up to pass on patent
applications where for military reasons granting of the
patents should be withheld.
Chrome Ore
Tight shipping situation growing worse. Private consumers
report inability to charter ships to bring ore to this
country. Anaconda Copper Mining Company has taken definite
steps to bring into production low grade chromite deposits
in Montana.
Copper
Procedure being worked out for acquiring stock pile.
Graphite
Purchased 468 tons this week for stock pile. This is part
of a shipment of 3,550 tons of Madagascar flake, the re-
mainder of which will go to industry.
Industrial
Stock pile purchase held up temporarily pending a Govern-
Diamonds
ment decision on general matter of policy.
THE VONE
- 2 -
Lumber
Activities of the War Department's Fixed Fee Division are
being geared in with those of its Procurement Division.
This will assure an orderly follow-up on deliveries of
lumber and mill work against orders that have been placed.
Manganese
Tight shipping conditions growing worse. Negotiations
initiated for the purchase of prospective output from
Three Kids deposits in Nevada, estimated at 50,000 tons
per year for three years.
Mercury
Production in October ran well ahead of consumption.
Power
Contract has been signed with West Penn-Monongahela Power
Company for requirements of DuPont's Morgantown nitrate
plant.
Rubber
The International Rubber Regulation Committee, meeting at
London November 28, increased the rubber quota from 90%
to 100%, effective January 1. It also applied the clause
permitting 5% excess exports, deductible in some subsequent
period.
Tin
Decline in tin prices has resulted in moderate offerings
being made to the Metals Reserve Corporation. Industry
stocks in October decreased 530 tons.
Zinc
Entire subject of zinc requirements and supply is still
being investigated.
Conservation and
Conferences have been held with persons engaged in handling
Reclamation
scrap iron and steel, rubber, tin, and aluminum. As a re-
sult of these meetings, substantial progress has been made
in determining the problems involved in the more intensive
collection of these scrap materials without dislocating the
waste material industry.
E. R. Stettinius, Jr.
PSF:
THE ADVISORY COMMISSION TO THE COUNCIL OF NATIONAL DEFENSE
FEDERAL RESERVE BUILDING
WASHINGTON, D.C.
December 7, 1940
steff-
2-40
Mr. Stephen Early
The White House
Washington, D. C.
Dear Steve,
The attached is self-explanatory.
The President raised it with me e. few
days before he left. I know you aren't
bothering him with anything other than
essentials. However, as this contains
important facts, it occurred to me he
might wish to have it while he is in the
Caribbean.
Hoping you can get a little sunshine
while there, and with best wishes,
Sincerely yours,
E.R. E Stettinius, Jr.
Attachment
the COWWIS
THE ADVISORY COMMISSION TO THE COUNCIL OF NATIONAL DEFENSE
FEDERAL RESERVE BUILDING
WASHINGTON, D.C.
December 7, 1940
MEMORANDUM TO: THE PRESIDENT
FROM:
E. R. Stettinius, Jr.
SUBJECT:
Manufacture of Gasoline on
Trinidad, Aruba and Curacao.
Last Thursday you incuired if gasoline could
be manufactured on Trinidad and Aruba Islands.
Crude oil to the extent of 60,000 barrels per
day is produced in Trinidad and there are refineries
owned by an English company with a present capacity
of 50,000 barrels. That capacity is now being con-
siderably increased.
Most petroleum products except lubricating oils
can be produced, including ordinary motor gasoline and
Navy fuel oil. The present capacity for 100 octane
gasoline is quite small but is being increased. We
understand all the present expension is for the purpose
of supplying the British Government.
There are large refineries on Aruba and Curacao
owned by the Standard Oil Company of New Jersey and
the Shell Oil Company which refine crude obtained from
Venezuela. They can manufacture large quantities of
motor gasoline and fuel oil and can also produce 100
octane aviation gasoline, depending for the latter, how-
ever, on importing some of the ingredients from this
country. The production of the latter material by the
Shell Oil Company is not now possible as the final
finishing operation was done in Holland.
E
PSF: Council of National Defense
THE ADVISORY COMMISSION TO THE COUNCIL OF NATIONAL DEFENSE
FEDERAL RESERVE BUILDING
2-40
fill
just mel
WASHINGTON, D.C.
DEC
I THE
At Chicago, December 7,
RECEIVED 1940.00 EIVED 59 AM ind
WHITE HOUSE
My dear Mr. President:
In your conference on November 28, you
requested data as to steam ships now operating on
the Great Lakes that by reason of their construction
are sea-worthy and are of a size that can be moved
through the lower canals.
The information is enclosed, having been
provided by Mr. A. T. Wood, my consultant on lake
transportation. You will note that there are 17
U. S. vessels and 116 Canadian vessels, all within
the 261 feet overall length and 45 feet in beam.
Respectfully yours,
Ralph Budd
Transportation Commissioner.
The President,
The White House,
Washington, D. C.
Liet # 4
Page # 1
CANADIAN LAKE VESSELS - ST. LAWRENCE CANALS
Size Not Exceeding 261 Feet Overall Length And 45 Feet In Beam
Year
Keel
Gross
Built
Length
Beam
Tons
Operated By
Remarks
PSF: Council of National Defense
ACADIAN
1913
250
42
1686
Canada Steamship Lines, Ltd.
(Built in Great Britain)
9 Victoria Square
Montreal, Canada
DUNDAS
1923
252
42
1901
"
If
"
(Built in Great Britain)
ELGIN
1923
252
42
1906
II
n
"
(Built in Great Britain)
FAIRMOUNT
1923
252
43
1851
"
"
#
(Built in Great Britain)
HASTINGS
1923
252
42
1906
"
.
"
(Built in Great Britain)
SIMCOE
1922
250
42%
1783
.
If
.
(Built in Great Britain)
DONALD STEWART
1923
250
42%
1781
"
"
#
(Built in Great Britain)
COALHAVEN (selfunloader)
1928
253
43
2363
"
.
#
(Built in Great Britain)
COLLIER (selfunloader)
1924
249
43
1858
"
If
"
(Built in Great Britain)
GLENELG (self-unloader)
1923
252
43
2099
If
If
e
BEAVERTON
1906
249
42
2012
n
"
n
(Built in Great Britain)
CALGARIN
1905
250
43
2272
#
#
(Built in Great Britain)
CANADIAN
1907
248
422
2214
-
If
=
(Built in Great Britain)
List # 4
Page # 2
Year
Keel
Gross
Built
Length
Beam
Tons
Operated By
Remarks
EDMONTON
1906
249
423
1983
Canada Steamship Lines, Ltd.
(Built in Great Britain)
9 Victoria Square
Montreal, Canada
FERNIE
1929
2501
422
2419
n
#
If
KENORA
1906
2492
42t
1979
.
"
"
(Built in Great Britain)
LETHBRIDGE
1924
250
422
2407
-
"
-
(Built in Great Britain)
SASKATOON
1927
250
423
2412
"
"
"
SELKIRK
1926
250
422
2384
"
.
"
WEYBURN
1927
250
42%
2407
"
"
et
WINNIPEG
1926
250
42%
2362
"
.
"
CARTIERDOC
1928
253
43
1919
Paterson Steamships, Ltd.
(Built in Great Britain)
Fort William, Ontario
COTEAUDOC
1929
253
43
1940
.
If
"
(Built in Great Britain)
FARRANDOC
1929
253
43
1925
.
II
"
(Built in Great Britain)
GANANDOC
1929
253
43
1924
.
If
"
(Built in Great Britain)
HAMILDOC
1927
253
43
1926
"
E
#
(Built in Great Britain)
KINGDOC
1927
2522
43
1927
#
#
.
(Built in Great Britain)
LACHINEDOC
1927
2522
43
1926
.
"
.
(Built in Great Britain)
List # 4
Page # 3
Year
Keel
Gross
Built
Length
Beam
Tons
Operated By
Remarks
LAVALDOC
1928
2521
43
1918
Paterson Steamships, Ltd.
(Built in Great Britain)
Fort William, Ontario
LAWRENDOC
1929
252
43
1924
"
.
"
(Built in Great Britain)
MONDOC
1928
253
43
1926
"
.
1
(Built in Great Britain)
NEWBRUNDOC
1928
253
43
1934
.
.
"
(Built in Great Britain)
PRESCODOC
1929
2522
43
1938
"
M
"
(Built in Great Britain)
SARNIADOC
1929
2522
42
1940
.
.
"
(Built in Great Britain)
SORELDOC
1928
253
43
1926
"
"
"
(Built in Great Britain)
TORONDOC
1927
253
43
1927
#
"
n
(Built in Great Britain)
TROISDOC
1928
253
43
1925
n
n
"
(Built in Great Britain)
WELLANDOC
1927
253
43
1926
"
n
.
(Built in Great Britain)
BROWN BEAVER
1929
253
432
1892
Upper Lakes & St. Lawrence Transp.Co.
(Built in Great Britain)
Queen's Quay, Toronto, Ontario
NORMAN P. CLEMENT
1924
253
43
1729
.
.
B
(Built in Great Britain)
GREY BEAVER
1929
253
434
1892
"
"
.
(Built in Great Britain)
JUDGE HART
1923
253
43
1729
.
If
If
(Built in Great Britain)
JOHN A. HOLLOWAY
1925
2462
43
1745
.
If
n
(Built in Great Britain)
CHARLES R. HUNTLEY
1926
253
43
1926
#
"
n
(Built in Great Britain)
NORMAN B. MC PHERSON
1925
246}
43
1743
If
II
"
(Built in Great Britain)
JOHN S. PILLSBURY
1926
253
43
1754
n
"
11
(Built in Great Britain)
JOHN J. RAMMACHER
1923
253
43
1723
If
#
"
(Built in Great Britain)
List # 4
Page # 4
Year
Keel
Gross
Built
Length
Beam
Tons
Operated
Remarks
JOHN B. RICHARDS
1925
2462
43
1743
Upper Lakes & St. Lawrence
(Built in Great Britain)
Transportation Co.
Queen's Quay, Toronto, Ont.
JAMES STEWART
1926
253
43
1760
II
If
11
(Built in Great Britain)
SHIRLEY G. TAYLOR
1925
2462
43
1745
II
#
"
(Built in Great Britain)
TORIAN, GEORGE L.
1926
253
43
1754
II
If
"
(Built in Great Britain)
WILLIAM C. WARREN
1925
246
43
1925
If
If
"
(Built in Great Britain)
SHELTON WEED
1925
2462
43
1745
"
"
"
(Built in Great Britain)
CHICAGO TRIBUNE (Motorship)
1930
253
432
2960
Quebec & Ontario Transp. Co., Ltd.
(Built in Great Britain)
680 Sherbrooke St.
Montreal, Canada
FRANQUELIN (Motorship)
1936
251
434
2097
If
"
"
(Built in Great Britain)
NEW YORK NEWS
1925
248
43
2309
"
If
If
(Built in Breat Britain)
OUTARDE
1924
248
43
2241
II
,
"
(Built in Great Britain)
SHELTER BAY
1922
250
43
1670
#
"
If
(Built in Great Britain)
THOROLD
1922
253
43
1689
If
"
"
(Built in Great Britain)
JOSEPH P. BURKE
1929
253
43
1926
Sarnia Steamships Ltd.
(Built in Great Britain)
84 West St., Pt. Colborne, Ontario
GILCHRIST, RALPH
1929
252c
43
1927
"
"
"
(Built in Great Britain)
DRUNAHOE
1924
252
42
1902
"
"
"
(Built in Great Britain)
FAIRLAKE
1929
253
43
1939
"
"
"
(Built in Great Britain)
FAIR RIVER
1929
253
43
1939
"
#
"
(Built in Great Britain)
C. H. HOUSON
1929
253
43
1927
"
"
"
(Built in Great Britain)
List # 4
Page # 5
Year
Keel
Grose
Built
Length
Beam
Tons
Operated By
Remarks
LIVINGSTON
1928
253
43%
2115
Sarnia Steamships, Ltd.
(Built in Great Britain)
84 West St., Port Colborne, Ont.
LOCKWELL
1929
253
43
1928
If
.
#
(Built in Great Britain)
JOHN. O.MC KELLER
1929
253
43
1926
#
.
n
(Built in Great Britain)
SCOTT MISENER
1928
253
432
1938
.
#
"
(Built in Great Britain)
NORTHTON
1924
248
43
2227
.
#
"
(Built in Great Britain)
PORTWELL
1929
2524
43
1928
.
n
"
(Built in Great Britain)
STARWELL
1929
253
43
1938
#
=
"
(Built in Great Britain)
WATERTON
1928
253
432
2114
#
"
"
(Built in Great Britain)
YORKTON
1911
250
422
1772
"
#
#
(Built in Great Britain)
CONISCLIFFE HALL
1928
253
431
1900
Hall Corporation of Canada
(Built in Great Britain)
360 Place Royale, Montreal, Can.
GEORGE L. EATON
1929
253
432
1895
"
"
.
(Built in Great Britain)
MEADCLIFFE HALL
1929
253
434
1895
If
II
E
(Built in Great Britain)
MONT LOUIS
1927
252
43
1905
"
If
.
(Built in Great Britain)
JOHN H. PRICE
1927
252
43
1905
"
"
.
(Built in Great Britain)
WALTER B. REYNOLDS
1927
252
43
1905
"
"
If
(Built in Great Britain)
LUCIUS W. ROBINSON
1912
250
43
1914
#
If
#
ROCKCLIFFE HALL
1928
253
431
1900
.
n
II
(Built in Great Britain)
WESTCLIFFE HALL
1928
253
431
1900
#
=
"
(Built in Great Britain)
List # 4
Page # 6
Year
Keel
Gross
Built
Length
Beam
Tons
Operated By
Remarks
KEYBAR
1923
250
42
1723
Keystone Transports, Ltd.
(Built in Great Britain)
107 Craig St.
W. Montreal, Canada
KEYBELLE
1912
258
421-2
1730
"
If
-
KEYDON
1927
252
42g
1739
"
If
If
(Built in Great Britain)
KEYHOLT
1928
253
43
1796
If
If
(Built in Great Britain)
KEYMONT
1928
253
43
1796
"
"
"
(Built in Great Britain)
KEYPORT
1909
250
42
1721
n
If
"
(Built in Great Britain)
KEY STATE
1923
250
42
1923
"
.
If
(Built in Great Britain)
KEYVIVE
1913
250
421
1913
If
If
ff
(Built in Great Britain)
KEY WEST
1909
250
42
1725
"
"
.
Built in Great Britain)
ALGONQUINS
1929
252
43
2000
St. Lawrence Steamships, Ltd.
(Built in Great Britain)
Marine Trust Bldg., Buffalo, N.Y.
CHEYENNE
1929
253
43
1938
E
n
If
(Built in Great Britain)
SIOUX
1929
2524
434
1940
If
.
"
(Built in Great Britain)
BIRCHTON
1924
250
43
1727
Gulf & Lake Navigation Co., Ltd.
(Built in Great Britain)
417 St. Peter St.
Montreal, Canada
CEDARTON
1924
250
43
1727
If
"
"
(Built in Great Britain)
OAKTON
1923
250
43
1727
#
"
"
(Built in Great Britain)
DAMIA
1929
253
43
1926
Inland Lines, Ltd.
(Built in Great Britain)
635 Common st., Montreal, Canada
SARACEN
1929
253
43
1926
E
n
"
(Built in Great Britain)
List # 4
Page # 7
Year
Keel
Gross
Built
Length
Beam
Tons
Operated By
Remarks
ELM BAY
1919
218
34
1217
Tree Line Navigation Co., Ltd.
(Built in France)
1010 Common St., Montreal, Canada
TEAKBAY
1929
253
432
1895
"
#
#
(Built in Great Britain)
SUREWATER
1927
252
421
1739
Canadian Lake Carriers' Ltd.
(Built in Great Britain)
107 Craig St., W.Montreal, Canada
TRENORA
1928
253
43
1796
"
"
"
(Built in Great Britain)
CANATACO
1919
251
43/-
2415
Canada Atlantic Transit Co.
384 St. James St., Montreal, Canada
Dalwarnic
1921
251
431
2394
"
II
"
F. V. MASSEY
1929
253
432
1895
Foote Transit Co. Ltd.
(Built in Great Britain)
68 King St., E. Toronto, Ontario
NORCO
1915
240
38
1512
Northern Paper Mille, Ltd.
Coppell, Ontario
WILLIAM SCHUPP
1928
253
43
1799
Union Transit Co., Ltd.
(Built in Great Britain)
36 Toronto St., Toronto, Ontario
VALLEY CAMP (self-unloader)
1927
246
43
2350
Valley Camp Coal Co. of Canada, Ltd.
(Built in Great Britain)
80 Richmond St. W. Toronto, Ontario
WAHCONDAH
1903
230
37
1575
Abitibi Navigation Co., Ltd.
(Built in Great Britain)
408 University Ave., Toronto, Ontario
CASCO
1927
253
43
1831
Lakes & St. Lawrence Navigation Co.Ltd.
(Built in Great Britain)
637 Craig St. W. Montreal, Canada
COALFAX (self-unloader)
1927
253
43
2482
Coal Carriers' Corporation, Ltd.
(Built in Great Britain)
12 King St. E. Brockville, Ontario
GEORGE HINDMAN
1902
252
43
2286
Diamond Steamship Co.
Owen Sound, Ontario
HENRY C. DARYAW
1920
216}
33
1265
Henry C. Daryaw
(Built in France)
30 Rideau St., Kingston, Ontario
COLONY TRADER
1922
1952
34
888
Old Colony Steamships, Ltd.
(Built in Great Britain)
Halifax, N. S.
List # 3
Page # 1
OIL TANKERS IN LAKE SERVICE - U. S. REGISTRY
Year
Keel
Gross
Built
Length
Beam
Tons
Operated By
Remarks
JUSTINE C. ALLEN
1930
1994
38
982
Lake Tankers Corp.
(Motor)
20 Exchange Place
New York, N. Y.
CRUDOIL
1919
246g
362
1370
Allied 011 Transport Co.
(Steamer)
2700 Standard Bldg.
Cleveland, Ohio
GENERAL MARKHAM
1913
250
43
2487
"
"
.
(Steamer)
7EPHYR
1920
250
37
1769
#
"
"
(Motor)
MERCURY
1937
258
43
1518
.
n
n
(Motor)
MEXOIL
1918
2461
362
1370
Great Lakes Transport Corp.
(Steamer)
3112 Book Building
Detroit, Michigan
PANOIL
1920
2462
36
1370
n
"
#
(Steamer)
PARATEX
1938
2502
43
1541
Gulf 011 Corp.
(Motor)
17 Battery Place
New York, N. Y.
REGENT
1934
248/-
40
1211
#
If
(Motor)
TRANSOIL
1936
251
43
1571
American Tankers Corp.
630 Fifth Ave.,
New York, N. Y.
List # 2
Page # 1
SUPPLEMENTARY LIST OF LAKE VESSELS OF U. S. REGISTRY
Year
Keel
Gross
Built
Length
Beam
Tons
Operated By
Remarks
CHESTER
1931
288
43
1819
Ford Motor Co.
(2 Steam Turbine,
Dearborn, Michigan
Machinery aft.)
EDGEWATER
1931
288
43
1819
If
II
(2 Steam Turbine,
Machinery Aft.)
GREEN ISLAND
1937
291
43
1946
#
.
(Motor Vessel,
Machinery Aft.)
NORFOLK
1937
291
43
1946
.
If
(Motor Vessel,
Machinery Aft.)
BRANDON
1910
244
43
2431
Gartland Steamship Co.
(Self-unloader,
208 So. LaSalle St.
Machinery Aft.)
Chicago, Illinois
FELLOWCRAFT
1903
247
41
1640
Nicholson Transit Co.
(Bulk Freighter,
foot of Great Lakes Ave.
Machinery Aft.)
Ecorse, Michigan
FLEETWOOD
1903
247
41
1593
.
If
"
(Bulk Freighter,
Machinery Aft.)
IRONWOOD
1902
211
40
1310
If
"
.
(Bulk Freighter,
Machinery Aft.)
ROCKWOOD
1899
2254
40
1290
"
.
If
(Bulk Freighter,
Machinery Aft.)
TAMPICO
1900
246
42
1894
#
"
"
(Bulk Freighter,
Machinery Aft.)
Note: These vessele are not considered suitable for ocean service.
List # 1
Page # 1
LAKE VESSELS OF UNITED STATES REGISTRY
Of Size Permitting Transit Thru St. Lawrence River Canals
Year
Keel
Gross
Built
Lenght
Beam
Tone
Operated By
Remarks
ADRIAN ISELIN
Nicholson Transit Co.
(Lake Bulk Freighter)
1914
250
43
2040
foot of Great Lakes Ave.
Ecorse, Michigan
COVALT
1919
2531
432
2450
Morton Salt Co.
(Shipping Board, Machinery
206 West Washington St.
Aft.)
Chicago, Illinois
JOHN GEHM
1918
251
432
1992
Boland & Cornelius
(Shipping Board)
Marine Trust Building
Buffalo, N. Y.
JOHN J. O'HAGAN
1918
251
433
1998
.
#
(Shipping Board)
LAKE CHELAN
1918
251
43/2
2010
John J. Boland
(Shipping Board)
Marine Truet Building
Buffalo, N. Y.
SAGINAW
1919
250.8
432
2153
Saginaw Dook & Terminal Co.
(Shipping Board)
Hanna Building
Cleveland, Ohio
J. FLOYD MASSEY, JR.
1918
251
431
2084
Steel Products Transp. Co.
(Shipping Board)
Box 669
Indiana, Pa.
*ACE
1919
251
432
2616
Minnesota-Atlantio Transit Co.
(Shipping Board)
275 Fuhrman Blvd.
Buffalo, N. Y.
*JACK
1919
251
432
2622
#
#
"
(Shipping Board)
*KING
1919
251
431
2624
.
-
#
(Shipping Board)
BACK BAY
1908
251
43
2382
Gartland Steamship Co.
(Bulk Freighter
208 So. LaSalle St.
Machinery Aft.)
Chicago, Illinois
List # 1
Page # 2
Year
Keel
Grose
Built
Length
Beam
Tons
Operated By
Remarks
BENNINGTON
1897
2442
42
2029
Gartland Steamship Co.
(Bulk Freighter,
208 So. LaSalle St.
Machinery Aft.)
Chicago, Illinois
BROCKTON
1908
251
43
2308
.
#
(Bulk Freighter
Machinery Aft.)
STEEL CHEMIST
1926
250
423
1695
U. S. Steel Export Co.
(Bulk Frei ghter, Motor Vessel,
802 Rockefeller Bldg.
Machinery Aft.)
Cleveland, Ohio
STEELVENDOR
1923
250
424
1695
.
.
(Bulk Freighter, Motor Vessel,
Machinery Aft.)
# ANDREE
1933
211
43
1423
Diamond Alkali Co.
(Motor Vessel,
(Perry S. S. Co.)
Machinery Aft.)
Koppers Building
Pittsburgh, Pa.
FRED W. GREEN
1918
253
431
2292
Northwestern Co.
(Self-unloader Reconstruction) 1927
J. J. Roen, Mgr.
Sturgeon Bay, Wie.
#
J. B. JOHN
1909
250
43
2172
Petoskey Transportation Co.
(Bulk Freighter,
Petoskey, Michigan
Machinery Aft.)
MARITA
1918
1694
30
632
Copper Steamship Co.
(Bulk Freighter)
Rockefeller Building
(Former mine sweeter)
Cleveland, Ohio
TRISTAN
1911
253
43
2294
Buckeye Steamship Co.
(Bulk Freighter,
Rockefeller Building
Machinery Aft.)
Cleveland, Ohio
.
Have Refrigeration Equipment.
#
Not considered suitable for offshore ocean service.
ADVISORY COMMISSION TO THE
PSF:
COUNCIL OF NATIONAL DEFENSE
FEDERAL RESERVE BUILDING
WASHINGTON, D.C.
7 Coul
December 19, 1940
Dear Mr. President:
I an handing you herewith a confiden-
tial report on the activities of my depart-
ment during the past six months.
The report has been prepared in such
a way as to enable you to see quickly what
progress has been made with respect to the
various industrial materials.
Because of the form and material con-
tained, it is believed that you will find
the report of continuing usefulness for
reference in considering questions regard-
ing industrial materials.
Sincerely yours,
R. Stettinius,
The President
The White House
Namery
PSF
THE ADVISORY COMMISSION TO THE COUNCIL OF NATIONAL DEFENSE
FEDERAL RESERVE BUILDING
WASHINGTON, D.C.
December 19, 1940
yeal
Dear Mr. President,
You will recall at 8. recent
meeting the question was raised
as to the feasibility of construct-
ing an overland shipmay to supple-
ment the Sault Sainte Marie, Michigan,
locks.
I have had D. confidential
engineering report prepared there-
on, which I am pleased to hand you
herewith, together with n. short
digest of the report.
Sincerely
yours,
The President
White House Stettinius, Jr.
The
CONFIDENTIAL
December 19, 19/0
Subject: Sault Sainte Marie, Michigan
Proposal
Construction of an overland ship railway to serve as an alter-
nate to route of water-borne traffic now passing through the Soo locks.
Conclusion
That project is not feasible as (1) Construction of lake vessels
such as to render them vulnerable to considerable damage in the process;
(2) Also, if built in same vicinity would be subject to same hazards
as the locks and due to nature of construction would be even more vulner-
able, and (3) Difficult to see how could hundle 15,000 boats in 210,
days (present load).
Alternates
(a) Additional locks in vicinity of the Soo or t. ship elevator.
1. Would only partially Improve situation from a
vulnerability standpoint.
(b) Extension of a railroad from vicinity of Duluth to Escanaba,
Michigan, which would have following advantages:
1. Most ore carried from mines in cars; this haul would
be 300 miles more.
2. As un alternate route should be, is several hundred
miles from the Soo.
3. Lould result in definite shortening of present all-
water haul.
(a) Estimated would increase carrying capacity
of present fleet by 25%.
4. Believed c. double tracked line including rolling stock would
cost 377 million with capacity for 60 million tons of ore
per season.
(a) If 3 tracks, 80 million tons ore capacity and
estimated cost $104,000,000.
(b) Or might be more feasible to rehabilitate und
increase capacity of two existing rail lines
between Duluth and Escanaba.
P5F; Council of National Defance
CONFIDENTIAL MEMORANDUM
SAULT SAINTE MARIE
MICHIGAN, U.S.A.
DECEMBER 12, 1940
Ford. Bacon & Davis
Incorporated
Engineers
PHILADELPHIA
NEW YORK
CHICAGO
1
New York, December 12, 1940
CONFIDENTIAL MEMORANDUM
SAULT SAINTE MARIE, MICHIGAN
Proposal
We have been asked to consider the practicability of
constructing an overland ship railway to connect some suitable
point at the lower end of Lake Superior with a similar point at
or near the head of Lake Huron, such a ship railway to serve as
an alternate to the route of water-borne traffic now passing
down the St. Marys River and through the Soo Locks.
Conclusion
After consideration of the proposal, we have concluded
that such a ship railway is not feasible. Most of the vessels
engaged in the transport of ore on the Great Lakes, particularly
those built during the last 20 years, are close to one standard
dimension - 600 ft. long by 60 ft. beam, and carrying around 12,000
gross tons of ore, on 20 feet of draft. These vessels are ex-
tremely nerrow and extremely shallow in proportion to their length.
Their lack of depth gives them relatively little longitudinal
strength compared with that of an ocean vessel of corresponding
size. In order to facilitate rapid handling of ore, these ves-
sels have only a fraction of the number of stanchions, decks and
transverse bulkheads that would be built into an ocean vessel of
corresponding size, which restricts their resistance to vertical,
transverse and torsional stresses.
2
It is our opinion that the construction of the standard
lake-type ore carrier is too frail and it does not have sufficient
structural strength to permit the vessels to be taken out of water
when fully loaded without risk of severely damaging them. Also,
the shipway if constructed in the general vicinity of the present
locks would be subject to the same hazards as the locks and by
the nature of its construction would be even more vulnerable.
Shipping Through the Soo
Most of the iron ore used in the production of steel
in this country is mined in Minnesota and transported by rail
to the head of Lake Superior where it is loaded into lake ore
carriers and transported therein direct to the unloading docks
of the steel companies on the lower lakes; except in certain im-
portant instances there is a final rail haul to the point of con-
sumption. In the passage from Lake Superior to Lake Huron all
vessels must pass through the locks at Sault Sainte Marie - a
single drop of approximately 20 feet. The open season for this ship-
ment is about 210 days per year and the tonnage of ore brought down
has reached approximately 65,000,000 gross tons in a season. When
the return trips of the ore boats empty or carrying coal are added
to the trips down loaded with ore, it will be found that approxi-
mately 15,000 such ship-passages per season probably are made
through the locks. Even 1f the suggested ship railway could be
12
designed to handle boats of the frail type of the lake boats, it
2060
is difficult to conceive of a successful operation of the magni-
tude that would be required to handle 15,000 boats in 210 days.
-3
3
Alternate
One alternative would be to increase the number of locks
in the vicinity of the Soo but this would still only partially 1m-
prove the Soo transportation from a vulnerability standpoint. The
same conditions would hold in respect of a ship elevator of the
type used on the Hohenzollern Canal in Germany as shown in Exhibit
No. 1, attached.
It would appear that a logical basis for an alternate
for the passage through the Soo Locks would be to keep the ore
moving in the cars in which it was originally loaded and extend
the rail haul to some lake port below the Soo if such can be found
within reasonable distance. Study of the map, Exhibit No. 2,
shows that such a discharge point is luckily to be found at
Escanaba, Michigan, on Lake Michigan where ore in comparatively
small tonnage is already handled in this way over the Chicago &
Northwestern Railroad. To handle ore from the Minnesota ranges
all-rail to Escanaba means in effect an extension of one of the
present ore roads from the vicinity of Duluth to Escanaba, a
distance of approximately 300 miles.
It is believed if an alternate to the present Soo route
is required that this suggested railroad from Duluth to Escanaba
is both feasible and practicable. Its location is happily several
hundred miles from the Soo 88 an alternate route should be and
with the connecting ore roads it would serve as an outlet for all
the Lake Superior iron ranges. Because the distances from Escanaba
to the principal destination ports at the foot of Lake Michigan
and on Lake Erie are much shorter than the present all-water hauls
4
from Duluth, definite shortening of the round-trip time of the
ore boats will result and this is an important consideration
when ships are badly needed. From Escanaba the steaming distance
to Chicago and return is 1,080 miles shorter than from Duluth and
to Cleveland 620 miles shorter. The commencement of ore deliveries
in the spring is often delayed several days before the ice at the
head of St. Mary's River is sufficiently open to permit a smooth
flow of traffic through the Soo.
The advantages of shipping out of Escanaba may be ex-
pressed another way by stating that the use of such a railroad
as suggested with sufficient rolling stock and terminal dock fa-
cilities at Escanaba would increase the carrying capacity of the
present fleet of lake ore boats by at least 25 per cent.
Cost of Railroad
The suggested railroad from Duluth to Escanaba would
be approximately 300 miles long. If constructed as a double-track
road it would have a capacity of approximately 60,000,000 tons of
ore per season and cost about $77,000,000 including necessary
rolling stock. If constructed of three tracks the capacity would
approximate 80,000,000 tons and cost would be about $104,000,000.
It might be more feasible to rehabilitate and increase
the capacity of the two existing rail lines that connect Duluth
and Escanaba although this could be determined only after study.
If an alternate to the Soo route is required we recom-
mend, not that a ship railway be undertaken or that additional
5
locks be provided, but that the above described railroad develop-
ment be considered.
Very truly yours,
FORD, BACON & DAVIS, INC.
Junes Vice President 7. 70mm.
60
3
Barge Elevator with 118-Foot Lift
EXHIBIT NO. 1
THE GOLIATH AND ENVIRONS
The large desator, and the bridge con-
neeting it with the Hobenzollern Canal To give
the elevator A sufficiently firm footing, it had to
be built somewhat rensoved from the uplift, and
this accounts for the bridge. which is sie feet
long and has a lead trough to prevent leakage.
Approximately soo exploratory burings were
made before the site for the structure was
selected. On the upper close to the elevator
is one of the storage-haltery locomotives that
are used to form barges in and out of the trough.
AT THE UPPER LEVEL
At the top is the Hobenzollern Canal end
of the elevator with the gates open and a
harge about to enter the trough under its
own power In the glassenchend section
at the top of the structure, right Tire the
pulleys over which pass the ese wire
cables from which the trough and counter-
weights are suspended. The latter are in
the form of heavily reinforced concrete
slabs IN in number each es feet long,
1.6 feet thick, and weighing NY lons.
READY FOR THE ASCENT
The trough all the lower level with il harge
and da Ing in position Immediately above
them, III the foreground. is une of the Date
engine that span the trough
EXHIBIT NO. 2
C
SUGGESTED ORE RAILROAD
A
SCALE OF MILES
50
9
50
100
150
N
Lake
Superior
4
Two Harbors
DULUTH
Ashland
DUL so. SH, 4 AT.
-
MINNESOTA
SUGGESTED RAILROAD C&N C.& N. Exp
M
ste.Maries
ESCANABA
C
B
Minneapolis
r
St.Paul
W I S C o N S N
L Lake Michig
1816 Huron
hog
Madison
Milwaukee
o
Grand Rapids
Detroit
N
I 0 W A
L k e Conneque Erie
Chicago
Toledo
Cleveland
Gary
ILLINOIS
INDIANA
0
H
I
o
LEGEND
Principal Routes of Ore Steamers
U-1639-12-10-40
ADVISORY file COMMISSION TO THE COUNCIL OF NATIONAL DEFENSE
CONFIDENTIAL
Stat:-
PSF:
FEDERAL RESERVE BUILDING
WASHINGTON, D.C.
INDUSTRIAL MATERIALS DIVISION
WEEKLY OPERATIONS PROGRESS REPORT OF DECEMBER 19, 1940
Motals Reserve Company is postponing action on purchase of asbes-
tos pending completion of a restudy of the situation by the Bu-
reau of Mines.
Plans have been completed for constructing additional capacity
for the manufacture of chlorates.
The shipping situation is increasingly acute. Industry stocks
last week recorded a small decline. New metallurgical facili-
ties for smelting are under consideration, and this will further
increase consumption. A contract for the purchase of a large
tonnage of South African chromite was completed during the week
by R.F.C.
Results of a questionnaire on copper refining capacity indicato
sufficient plant equipment for any requirement so far contempla-
ted, although there is some anticipated shortage in domestic
copper itself. The United States Copper Association is circula-
ting a monthly questionnaire on fabricators' stocks and
commitments.
A survey is being made of the requirements for small dies over
the next twolve months.
It has been suggestod that an advisory group be set up to work
with the Army and Navy on the quality aspects of fuels and lu-
bricants required for defense.
A study has been made of the practicability of substituting cor-
tain varieties of Ceylon lump and chip graphite for Madagascar
flake in cruciblo manufacture. The survey indicates that such
substitution will be feasible.
Conferences are being held toward formulating a new committee to
review the entire purchase program.
S
The Munitions Board has given informal approval to the Defonse
Commission's recommendation that fifty million jewel bearings be
purchased for Government stock pile.
THE
- 2 -
Leather
The last directive for 1,500,000 pairs of service shoes developed
an over offering of 50 per cent. It is understood that the Quar-
termaster Corps will purchase 1,700,000 pairs at a price accept-
able to them.
Lumber
Steps have been taken to relievo the local shortages in cortain
sizes of lumber needed for cantonments. Strike in the West Coast
lumber industry has boon settled.
Manganese Ore No further contracts for ore from India or South Africa are be-
ing negotiated pending a survey of the shipping situation.
Mercury
During the week, 550 flasks were delivered against Government
contracts. Heavy demand from Germany has increased the price
set by the Mercury Cartel (Spain and Germany) from $200 to $250
per flask. U. S. requirements are being mot by domestic produc-
tion, with domestic prices now at $165 to $168 per flask.
Power
Results of a recent survey by Edison Electric Institute show ad-
ditional generating capacity some 500,000 kw larger than was pre-
viously reported for instrumentalities contributing to the public
supply. Additional data have also been made available with re-
spect to capacity installed or to be installed by industrial
plants.
Rubber
Stocks of crude rubber held in this country by Government and
industry at the end of November were 277,000 tons, compared with
105,000 tons as of November 30, 1939.
Steel
During the past-week, recommendations have been made for Certifi-
cates of Necessity covering the installation of additional coke,
pig iron, and steel capacity..
Tin
Despite good consumer demand, the R.F.C. has acquired additional
tonnage for' the stock pile during the past week.
Zinc
A detailed review of Army-Navy requirements has been instituted.
E. R. Stettinius, Jr.
PSF;
THE ADVISORY COMMISSION TO THE
COUNCIL OF NATIONAL DEFENSE
filmal file
FEDERAL RESERVE BUILDING
WASHINGTON, D.C.
$
2-40
December 19, 1940
CONFIDENTIAL
MEMORANDUM TO: THE PRESIDENT
FROM: E. R. Stettinius, Jr.
SUBJECT: Interim Report on Raw Steel Requirements and Capacity
Our analysts have assembled most of the available information
on raw steel requirements and capacity short of an engineering in-
vestigation. Below are furnished the salient figures:
Millions of
Capacity
Net Tons
Present steel ingot output rate
79
Present rated capacity
83
American Iron and Steel Institute estimate of maximum
working capacity, assuming certain step-ups in scrap
and pig iron
85
Steel ingot capacity expansions in process, available
in 1942
1.5
During 1940, capacity has been increased from 81.8 to
83.0 million tons. Of the 1,200,000 tons increase, 900,000
tons was in electric furnace steel, an increase of 50% in
electric steel capacity.
Millions of
Requirements
Net Tons
Historical points of reference:
Previous peak (1929) output (approximating domestic
plus export demand)
63
Average output lest ten years
38
1939 output
53
4HE cow.
-2-
Millions of
Requirements (continued)
Net Tons
Possible requirements in fiscal year 1942:
Possible civilian demend, assuming $90 billion
annual income
71.5
Estimated direct defense and export (primerily
British) demands
20.2
TOTAL
91.7
Development of E. Program
It is clear from the figures above that foreseerble direct defense
and British requirements are less than one-fourth of present capacity.
At the same time, present capacity lergely exceeds any foresecable civ-
ilian requirements. However, our estimates indicate that if those demends
are combined there will be some shortage in the fiscal year 1942.
Ascertainment of the actual ability of the industry to produce,
ES indicated above, requires en engineering investigation. There are
various possibilities which might assist the industry to step up
production substentially. Any further expension of capacity that may
be necessary after allowance for such possibilities may raise the
juestion of help to the industry in connection with further over-cepacity
for the period after the emergency is over. This is obvious since even
present capacity greatly exceeds estim ted civilion requirements.
I have assigned to Kr. Gano Dunn the engineering investigation
of the present and cotential actual production capacity. He will
conduct this investigation with the utmost speed and thoroughness.
Based on his investigation, we will promptly recommend practical
ways in which the situation can best be dealt with from the national
viewpoint.
themes 4
PSF;
THE ADVISORY COMMISSION TO THE COUNCIL OF NATIONAL DEFENSE
FEDERAL RESERVE BUILDING
WASHINGTON, D.C.
7
December 19, 1940 Cmf
N
Dear Mr. President,
Recently we discussed the ques-
tion of building en overland shipway
across the Isthmus of Tehuantepec,
Mexico.
For your information, I enclose
an engineering report on the subject
which I had prepared on a confiden-
tiel basis. There is also enclosed
for your convenience a one-page digest
of its major points.
Sincerely yours,
Stettinius Jr.
The President
The White House
TOTAL сонитегой LEDESTE 10 Mrh NC
CONFIDENTIAL
Date
December 19, 1940
Subject: Confidential (emorandum on Isthmus of Tehunntepec, Mexico.
Proposal
To construct an overland shipway across Isthmus desimed to transport
ocean-going ships u) to 10,000 or 15,000 tons naximum loaded displacement.
Conclusion
Is possible from mechanical standpoint, could be constructed in reason-
able time, on! would transport ships of size suggested but believe should not
be built.
Engineers' Opinion on Certain Points
1. Cost from 8525 million (for 10,000 gross tons) to 570 million (for
15,000 tons).
2. Under favorable conditions, take three years to construct.
3. Operating costs per ship carried would probably range from Four to
five times Pename Canal toll.
he Believe 95% of our Noval vessels could be handled; probably three days
required to effect transfer; in order to hendle 2,000 vessels per year
micht be more than 20 vesuels on the ways at one time.
Objections
1. Vulnerability of the way and of the ships while out of water.
2. Slowness of transfer by the ship railway.
3. Linbility of structurel drunare and fire damage to vessels and consequent
excessive insurance cost on merchant vessels.
4. High construction and operation costs.
5. Unsoundness of such a large sua on project, success of which is problem-
atical when considered such funds would provide substantial addition to
Navy or TO far towards a second ocean Canal.
Alternatives
1. Rehabilitation and double tracking of reilway across Isthmus between
Puerto Mexico and Salina Cruz and an oil pipe line under right of way.
(Probable cost $25 million.)
(a) In peace times using sea-trains for inter-constal service
might be profitable but competitive with existing services.
(b) or course, would not accomolish full purpose of ship railway.
2. Construction of Niceraguan Canal (probable cost 700 million; 10 years
to construct.
3. Combination of these two might be seriously considered.
\
Respectfully forwarded Cmm to the President
E.M.W.
-
I
12/26/40
Dear Pa,
Herewith our Weekly
Progress Report. Will you
please see that it gets
in the "basket"?
Many -ES- thanks.
ERS
CONFIDENTIAL
PSF:
THE ADVISORY COMMISSION TO THE
COUNCIL OF NATIONAL DEFENSE
FEDERAL RESERVE BUILDING
WASHINGTON, D.C.
like
INDUSTRIAL MATERIALS DIVISION
WEEKLY OPERATIONS PROGRESS REPORT OF DECEMBER 26, 1940
Chemicals
Cotton linters: Bleacheries have increased their capacity about
20 per cent and are now able to bleach approximately all of the
linters that are available.
Alpha-cellulose: The possibility of increasing production of
alpha-cellulose is being investigated.
Copper
Purchase by the Metals Reserve Company of 100,000 tons of foreign
copper will probably allay any fears of a market shortage.
Diamond Dies
Manufacturers report progress in developing facilities for drill-
ing small dies. Steps are being taken to secure sufficient
amounts from the British to meet requirements of wire drawing
industry until domestic manufacturers are able to produce the
needed supplies.
Graphite
Negotiations are now under way for the purchase of Ceylon crys-
flake. talline lump and chip graphite as a substitute for Madagascar
Iron Ore
Study of the iron ore situation indicates that supplies of ore
in 1941 should be adequate to meet the needs of all blast
furnaces.
Leather
The supply of chrome retan upper leather suitable for Army shoes
appears adequate.
Manganese Ore
Contract has been signed for a large tonnage of ore to be produc-
ed from the Three Kids property in Nevada. Delivery will extend
over & period of 32 years.
Mercury
Further purchases for Government stock pile have been recommended,
because of the heavy buying by England of mercury now in this
country.
Nickel
It has been recommended to the Commission that nickel be added
to the materials requiring license for export.
THE
- 2 -
Oil
A meeting was held with the Transportation Division to discuss
railroad aid in the event that a. serious tanker shortage should
occur.
Textiles
Conference hold with members of Mr. Davis' division and the
Department of Agriculture to discuss securing of an adequato
supply of extra-long staple Sea Island cotton.
Tin
Mr. W. F. Foshag, Curator of Mineralogy for the National Museum
and temporarily assigned to the U. S. Geological Survey, will
shortly start for Mexico to make B. preliminary survey of placer
and lode tin prospects. Ho will be accompanied by Mr. Carl Fries.
E. R. Stettinius, Jr.
RESPECTFULLY FORWARDED TO THE PRESIDENT:
Ellew E.M.W.
s
1/2/41
Dear PE,
Will you please clear this
with the President? Many
thanks.
Ea
CONFIDENTIAL
THE ADVISORY COMMISSION TO THE COUNCIL PSF: OF NATIONAL DEFENSE
FEDERAL RESERVE BUILDING
WASHINGTON, D.C.
INDUSTRIAL MATERIALS DIVISION
WEEKLY OPERATIONS PROGRESS REPORT OF JANUARY 2, 1941
Asbestos
Replies so far received by the Bureau of Mines, in response
to a questionnaire, indicate no difficulty in securing increased
imports of African grades.
Aviation
The Air Corps has agreed to finance a survey by the Bureau of
Gasoline
Mines of crude oils suitable for the production of Aviation
Gasoline.
Coke
Questionnaire on beehive and by-product coke production and
capacity is now being sent out by the Bureau of Mines.
Copper
Data has been made available on Canadian brass orders placed
with domestic mills and on the corresponding diversions of
Canadian copper and zinc to fill these orders.
Diamond Dies
Recommondation made that Defense Supplies Corporation act as
intermediary in securing supplies of small diamond dies from
the British, and in selling them to industrial consumers in
the United States.
Iridium
Detailed requirements for defenso purposes are being reviewed.
Jewel Bearings
Specifications as to sizes and shapes for the stock pile are
being secured from watch manufacturers.
Lumber
Requirements of millwork for the defense housing program are
being surveyed. It is probable that millwork will be avail-
able as needed, but careful planning will be necessary to avoid
congestion of orders.
Survey is being made of plywood supplies available for the
tent camp at Abilene, Texas.
In connection with recent Quartermaster Corps purchases, lumber
prices have shown a further weakening tendency.
it STATE
*
THE COMMISSION LEDEBYT to THE BEZEBAE D'C СОИМОВИЛЕТ conucir snircine Ot
- 2 -
Petroleum
All petroleum patent applications pending in the patent
office have been reviewed. Survey has also been made of
applications for export licenses covering petroleum patents.
Steel
Armor: With the establishment of a definite tank delivery
program, it is now possible to determine homogeneous armor
requirements by months.
Emergency Plant Facilities: Studies are being made of
problems connected with applications for, and issuance of,
Non-Reimbursement Certificates.
Tin
W. R. Grace & Company have been appointed agents of the
R.F.C. to receive and sample ores in Bolivia.
Tungsten
Sizable tonnage of Chinese ore was shipped from Rangoon on
December 21.
Zinc
Survey of zinc concentrate supply from foreign sources has
been completed. Assistance of the Bureau of Mines has been
enlisted in reviewing this supply situation and extending the
inquiry to domestic concentrate production.
E. R. Stettinius, Jr.
RESPECTFULLY FORWARDED TO THE PRESIDENT:
Enew
E.M.W.
CONFIDENTIAL
TPSF:
THE ADVISORY COMMISSION TO THE
COUNCIL OF NATIONAL DEFENSE
FEDERAL RESERVE BUILDING
fell mal
WASHINGTON, D. C.
INDUSTRIAL MATERIALS DIVISION
WEEKLY OPERATIONS PROGRESS REPORT OF JANUARY 9, 1941
Chromite
Industry stocks declined slightly during November. Meeting of
all parties interested in development of low grade Montana ore
scheduled for this week.
Copper
New long-range estimates of Army-Navy ordnance requirements
call for greatly increased quantities of copper, together with
a large expansion of brass sheet-rolling capacity.
Diamond Dies
Some further progress has been made in developing facilities
for manufacturing small dies.
Electric Power
Recently reported additions will bring the total of additional
generating capacity to be installed in 1941 and 1942 to approxi-
mately 6,335,000 kw.
Ethyl Alcohol
Conferences with respect to ethyl alcohol and molasses have
been held with representatives from Cuba.
Iridium
Bureau of Mines survey shows refiners' stocks decreased in 1940.
Manganese Ore
Industry stocks increased about 33,000 tons in November.
Mercury
Domestic production declined slightly in November and consumption
increased, resulting in a reduction of about 500 flasks in
industry stocks.
Mica
Some additional Indian block and splittings have been purchased..
Petroleum
Meeting was held with Petroleum Division of Army-Navy Munitions
Board seeking estimate of quantity and quality of petroleum
requirements.
Steel
Conferences have been held with respect to problems arising in
connection with the amortization of emergency plant facilities.
Tungsten
The supply situation was canvassed at a conference with rep-
resentatives of industry, held January 3.
VDA
- 2 -
Wool
Several ships carrying wool for the United States' reserve
stock are expected to leave Australia shortly.
Zinc
llew long-range estimates of Army-Navy ordnance requirements
call for greatly increased quantities of zinc. Data have been
obtained on the production of zinc oxide and sulphate, zinc in
lithopone, and on the use of zinc die castings by the automotive
industry.
if Stettinius, Jr.
file
PSF:Council. of Nat.Definse
5.41
M
1
PERIOD AVERAGES ON WHICH CHART SHOWING
"POUNDS PER CAPITA" HAVE BEEN TABULATED.
Average Annual
Pounds
Production
Average
Per
Five Year Period
(Ingots & Castings)
Population
Capita
1881 to 1885, Incl.
1,746,473 N.T.
53,993,362
65.5
1886 # 1890, .
3,687,895 .
60,389,327
122
1891 . 1895, #
5,236,825 #
66,861,772
158
1896 # 1900, #
9,452,730
#
73,385,202
260
1901 If 1905, .
17,212,083
.
80,787,882
428
1906 If 1910, II
24,826,798 #
88,776,727
560
1911 # 1915, #
31,783,886
.
96,093,771
660
1916 . 1920, #
46,838,598
,
102,962,946
909
1921 . 1925, #
41,138,918
#
110,829,946
740
1926 If 1930, .
54,186,962 .
119,362,156
910
1931 . 1935, #
27,553,544
#
125,365,531
440
1936 # 1940, .
52,333,862 #
129,683,006
810
1940
66,981,662 .
131,410,000
1020
Capacity Figures
As of
By
Net Tone
Lbs. Per Capita
12/31/40
Institute
84,152,000
1275
12/31/40
Gano Dunn
87,576,099
1320
12/31/41
Gano Dunn
91,124,718
1370
5/14/41.